The Importance of Assurance, Empathy, Reliability and Responsiveness of the Customers - Assignment Example

Building the Research The research study was conducted with the aim of determining the importance of service quality dimensions that include assurance, reliability, empathy and responsiveness. It has been identified companies based on their service quality are able to segment markets effectively. In this regard, survey and hypothesis testing revealed that reliability and assurance are the two important elements of service quality for effective business performance. Introduction In this particular study, the survey conducted by Parasuraman et al. (1998) was taken into consideration in order to attain a better understanding about the method of SERVQUAL as an effective means of measuring the quality of services offered by companies to the customers. The study mainly linked the aspect of service quality with certain specific factors relating to the behavior of customers such as assurance, empathy, reliability and responsiveness. The factors are discussed in detail hereunder. Part 1: Research the Survey The research study conducted by Parasuraman et al. (1998) has presented an elaborative understanding about the importance of assurance, empathy, reliability and responsiveness of the customers with regard to service quality. Empathy The aspect of empathy mainly comprises carting and individualized attitude of the company towards their customers. Analysis of the results of the survey suggested that empathy as a service quality dimension showed utmost reliability within the research study, which can also be confirmed from the value of Cronbach’s alpha for empathy with an average value of 0.75. However, in comparison to the other variables within the service dimension, empathy holds the least significance in this particular case. Assurance Assurance mainly depicts the ability of the customers to reveal trust and confidence on the company. For this particular aspect, the Cronbach’s alpha value was around 8.5 on an average, which shows higher reliability. Notably, among the mentioned dimension, assurance was among the most vital. Reliability This particular dimension mainly defines the ability to execute a particular service with utmost dependability and accuracy to an extent. Within the dimension, this particular component holds a reliability value of around 8.0, which is quite high. Based on the survey, the element of reliability is among the most important dimension on the basis of consistency. Responsiveness This particular element mainly refers to the willingness of the companies to ensure quality services for the customers. However, on the basis of reliability, this particular element holds the least number. Transforming Survey Questions into Scales The questions that were used in the survey were transformed into several scales entirely on the basis of their relevance. Questions relevant to the viewpoint of the customers regarding the employees were scaled under assurance. The questions relevant to comprehending the negative behavior of the employees were scaled under the dimension of empathy. Again, the questions that hold resemblance with the behavior and perception of the customers were scaled and segregated under reliability. The questions relevant to the efficacy of the employees were segregated under responsiveness. Part 2: Connecting Service Quality and Segmentation Service quality has been one of the most vital parts of any particular business. Service quality assists in attaining the desired level of satisfaction of the customers and ensures long term sustainability of the business. In this regard, it has also been identified that service quality can be an important element towards segmenting the market. In this regard, as per Tolpa (2012), services quality is directly dependent on the expectation level of the customers with special reference to the airline sector. It has been noted that along with service quality, segmenting the customers is also quite important and major part in any particular industry. With the level of competition increasing on a day to day basis, it is important to decide the target market with more specificity and accuracy. Again, since the cost of serving the wrong set of customers is quite high, proper segmentation is vital. In this regard, Tolpa (2012) stated that companies should understand the level of service deliverance required and accordingly, emerges with plans of targeting an appropriate market (Tolpa, 2012). In similar regard, the article published by CIVIC Technologies (2009) will also be crucial to be taken into consideration. In the present day context, customizing services based on the demands and needs of the customers is quite crucial and evident to an extent. In order to meet the needs of the customers, appropriate service design is very important. In addition to this, it has also been understood that market segmentation will also be an important element for developing an appropriate service quality. As per the article of CIVIC Technologies (2009), along with appropriate market segmentation, companies should be able to better identify the needs, demands and trends amid the customers and likewise, determine better set of services that can be designed for the same (CIVIC Technologies, 2009). In this context, Furrer et al. (2000) presented certain specific and reliable information about service quality and customer satisfaction. The study affirmed that there is a strong relation amid service quality and customer segmentation especially on cultural grounds. There lies a significant cross cultural links between service quality and customer segmentation. It has also been understood from the study that customers should focus on providing services based on trend and purchasing behavior of customers for a specific market since, there exist cultural difference from market to market. In this context, companies need to understand the specific features of each of the targeted market with the aim of segmenting their service quality in a more efficient manner (Furrer et al., 2000). Part 3: Analyzing the Data Assurance Null Hypothesis: Assurance of customers is important in determining proper service quality Alternate Hypothesis: Assurance of customers is less important in determining proper service quality Empathy Null Hypothesis: Empathy is vital for attracting the attention of the customers Alternate Hypothesis: Empathy is less vital for attracting the attention of the customers Reliability Null Hypothesis: Reliability is vital to meet the service demands of the customers Alternate Hypothesis: Reliability is less vital to meet the service demands of the customers Responsiveness Null Hypothesis: Responsiveness enhance the level of services provided to the customers Alternate Hypothesis: Responsiveness does not enhance the level of services provided to the customers ANOVA The result of the ANOVA test for both the stores is provided hereunder. Notably, the test depicts that both the stores differ in terms of the value of the dimensions mentioned. The difference is quite marginal between the two stores, it importance could not be ignored. Notably, for store 1, the aspect of reliability shows a result of 0.80 while for store 2 the value is 0.78. Both the values are deemed to be quite positive and clearly depict the importance of reliability in designing proper service quality. Hence, for reliability, null hypothesis can be accepted. For the dimension of responsiveness, the value between the two stores is 0.72 and 0.69 respectively. The value is deemed to be less for both the companies but the values clearly show that responsiveness is an important part to design effective service quality. This depicts that null hypothesis can be accepted for the dimension of responsiveness (Miller, 1997). Again, the values for empathy for both the companies also shows similar sort of results, which are quite positive. This can further lead to the acceptance of null hypothesis for the dimension of empathy. Similarly, both the stores depict somewhat positive results for the service dimension of assurance, which will ensure that null hypothesis for assurance can be accepted. Conclusion From the analysis of the paper, it can be concluded that service quality is one of the most vital part of a particular company in order to assure long term profitability and sustainability. The SERVQUAL model, which has been discussed elaborately in this particular study, is an important tool for determining service quality. The paper has also ensured an extensive discussion about two stores and their approach towards adopting proper service quality. In this respect, the ANOVA test aids in understating the importance of the service quality dimensions. References CIVIC Technologies. (2009). Using market segmentation for better customer service and more effective strategic planning. Retrieved from http://www.businessdecision.info/whitepaper/pdf/BusinessDecisionWhitepaper110909.pdf Furrer, O., Liu, B S-C., & Sudharshan, D. (2000). The relationship between culture and service quality perceptions: Basis for cross-cultural market, segmentation and resource allocation. Retrieved from http://gatton.uky.edu/faculty/sudharshan/publications/TheRelationshipsBetweenCultureandServiceQualityPerceptions.pdf Miller, R. G. (1997). Beyond ANOVA: basics of applied statistics. US: CRC Press. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1998). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64 (1), 12-40. Tolpa, E. (2012). Measuring customer expectations of service quality: case airline industry. Retrieved from http://epub.lib.aalto.fi/en/ethesis/pdf/12898/hse_ethesis_12898.pdf Read More