The relationship between web based service quality and customer loyalty

the relationship between web based service quality and customer loyalty

with the threat of cheap Internet companies and the growing power of buyers due There is a positive relationship between service quality and customer loyalty Based on several articles and theory, a questionnaire is developed by which . examine the link between web site quality and customer loyalty. We found a . ( )). Based on concepts from both the service quality and retailing literature. The research was carried out using a web-based survey method involving 3 store customer loyalty and to assess the relationship between them. Six determinants of performance based service quality for an e-store were tested for validity.

The level of satisfaction the customers express about the services provided by an organization. A theory of service quality that assumes that service quality is inversely related to the gap between the customer s perception of service received and the expectation of service level to be given. The marketing aspect of the service encounter. Those people not in customer service should be seen as service providers to other members of the organization.

Integrates service as a philosophy throughout the organization not just at the customer level. The design articulation of a service concept for providing value to a user and the construction of a system and process by which the service is rendered or value is transmitted. The marketing of services that are different than general 7 17 marketing because of the intangibility of the product and the inseparability of the consumption and production of a service.

"THE RELATIONSHIP BETWEEN WEB-BASED SERVICE QUALITY AND CUSTOMER LOYALT" by Wan-Jin Leu

What the customer sees as the quality of service they receive from an organization in the service sector. Instrument designed to measure the four gaps of the gaps model of service quality.

The level and criteria set by an organization as it relates to service. This independent variable refers to how well a service or activity is done online. Service quality is a multi-dimensional concept.

How sophisticated an Internet structure need companies to build to make truly good web-based service quality? There are different levels of web-based services. Significance of the Problem Many companies have been tempted to split their web businesses from the rest of their operations in hopes of cashing in on investors enthusiasm of making it easier to attract the kind of talent required to manage web activities.

In the short run, such a strategy may create benefits; over the long run, however, it is likely to erode customer loyalty. While new web capability may not directly generate more revenues, it does increase the value delivered to a group of highly profitable customers and thus increases the likelihood that they will continue to buy from the company. The following chapter reviews the literature published in the areas of service quality and customer satisfaction.

The academic literature reported here was derived from established consumer behavior, mainstream marketing, and psychology journals. Many service companies need to mobilize all the internal energies of the firm in order to face increasing competition and a changing environment. When a company provides tangible goods, the customer does not generally use them immediately.

As a consequence, the customer has time for inspecting the quality of the product.

the relationship between web based service quality and customer loyalty

Services cannot be developed or packaged for future consumption. As a result, service companies must always maintain operations at optimum capacity and performance levels. Developing and maintaining sufficient demand to match capacity is a constant challenge but necessary if the company is to maximize revenue and profits. This component of providing service has been called to "perishability" Lovelock, Research in defining and measuring quality has been mainly developed in manufacturing.

Japan's philosophy is based on the zero defects concept, whose definition is 'doing it right the first time'. Crosby defines quality as 'conformity to needs'. All customers expect to be treated fairly and in an equitable way, yet because services are intangible rather than tangible, the result is an increase in customer sensitivity Berry, Thus, every organization has to be able to look at their service quality from the perspective of the customer if they are to succeed in being seen to give good service to their customers.

Successful service strategies are the key to the success of all service providers. All service firms provide a core service, which is their primary mission, but may also offer other peripheral services to complement their core service.

the relationship between web based service quality and customer loyalty

According to Gronroos et al. Unfortunately, meeting customer s expectations is not enough to generate customer recognition and loyalty. On the other hand, failing to meet customer expectations is a prescription for failure and loss of customer loyalty Berry, 11 21 Thus, good service quality is the primary key to company success Vandermerwe, However, while good service quality is essential, it may not be sufficient for all companies to succeed since customers can easily compare brands, features, and prices using the internet and other strategies.

As a result, it has become increasingly important that a company stand out as having positive unique features that will also attract consumers Ruyter et al.

Technology may not be sufficient to shift the benefits of a competitive edge to things other than service Porter, Because services are time sensitive, ways to facilitate the effective management of demand and capacity supply of them are necessary Kandampully, Various strategies have been developed to enhance service delivery.

Recently, more and more companies have begun to seriously consider the use of the Internet as a possible additional channel for providing services, since the Internet can provide fast and accurate communication and allow service providers to lower prices and attract. Furthermore, satisfied consumers have 12 22 been shown to be predisposed to exercise repeat purchase behaviors George, This loyal behavior is subsequently presented as positively influencing how actively consumers engage within advocacy, by introducing the service to other consumers with whom they have some influence.

By pursuing a service quality strategy, it is argued that marketers are able to leverage customer support for their service offering s to both retain and build a loyal customer base. In this respect, advancing service quality research is critical in enabling service companies to identify and implement strategies to meet consumer expectations.

Research within service quality and the related domain of satisfaction was initially pioneered through the conceptual development of European researchers Gronroos, ; Oliver, The foundation for much of the more recent conceptual development can however be attributed to the work of North American academics Parasuraman, Berry and Zeithaml.

Notably, Parasuraman et al. These evaluative criteria, or dimensions, were then applied within a gap model where consumers compared their prior expectations of what service should be provided with their post-experience perceptual reality. The SERVQUAL instrument was initially developed to assess customer 13 23 perception of service quality in service and then later in retail organizations Parasuraman et al.

This scale has good reliability and validity and can be used in a variety of service and retail situations effectively. It facilitates the service companies identifying areas where there is a need to improve service quality.

The first step in this process is to define the construct to be measured, in this case service quality. Then Parasuraman et al. They are assurance, empathy, reliability, responsiveness, and tangibles. The SERVQUAL model is based on the belief that service quality is a function of the gaps that exist between customers prior expectations and eventual perception of the level of service provided rather than the service level alone.

However, Kettinger and Lee proposed three alternative service quality measures to those originally proposed by Parasuraman et al. They believe that these alternative measures better assess information service.

This instrument is easy to use, works well when high predictive power is desired, and obtaining a total service quality score is of value. Secondly, the SERVQUAL two-column format instrument is best when more detailed information about service quality is needed because the sub scales have value here.

Service Quality, Relationship Quality and Customer Loyalty (Case Study: Banking Industry in Iran)

The major disagreement revolves around about the operationalization of the concept. Indeed, each element of the formula Perceptions - Expectations P-E can be debated.

Further, how a person feels after purchasing a product is directly related to their expectations about the kind and level of service they were expecting. The customers perception of quality is effected by the degree to which expectations of quality are either confirmed or disconfirmed by the service experience.

According to this model, the quality of a service, as perceived by a customer, is based on the comparison between customers' expectations and his or her real life experiences.

The quality will be perceived as positive if the experience exceeds expectations. On the other hand, if the expectations are not met through the customer s experience, the perceived quality will be seen as low or inadequate. PQM implies that quality is not an objective phenomenon. This means that quality is much more difficult to control.

Since customers perceive quality in a subjective way, the same objective standard of quality may be perceived in many different ways by different people depending on their expectations and how they have been met in the service encounter. As a result, what is viewed as good quality by one customer may be seen as poor service by others. PQM also makes a distinction between the process and the outcome. The process in service delivery is how the process and service encounter re perceived.

The outcome refers to what the customer gets. The outcome dimension has been called the technical quality and the process has been called the functional quality because it depends on how the process itself functions, Gronroos, If the technical 16 26 quality, which to some extent can be controlled, is acceptable then this means that the functional quality, which is harder to control, is the more important of the two components of quality. The measurement of quality is therefore a difficult one for researchers to study Lovelock, They propose a hierarchical factor structure that they believe is better suited to including the important component of perception of service quality.

Quality is a critical issue for organizations and research has demonstrated the strategic benefits of quality in a number of areas. Research on service quality has identified numerous barriers to effective service delivery. One such barrier is the physical environment of the service facility. For example, Pranter and Martin,found that the perception of service is affected by the environment in which the service is provided.

In addition, service staff plays a role in either enhancing or hurting customer satisfaction depending on how the staff-to-customer interactions are handled. The physical environment has a major impact on customer-to-customer interactions and these interactions are often overlooked when customer service is considered.

In another study, physical environment was the specific focus in a project designed to assess the effects of physical surroundings and employees responses on attributions and satisfaction on customer service, Bitner, The study used a simulation of a customer satisfaction scenario and the subjects were travelers at an 17 27 American international airport. The results indicated that it is important to control as many aspects of an individual s service encounters as possible in order to increase the overall perception of service quality.

If the attributions the customer makes when problems occur are understood then there is an opportunity to minimize or reverse customer dissatisfaction. Further, if the reasons for a service failure are fully explained to the customer and some compensation provided satisfaction can be minimized or reversed. A proactive approach to customer service is therefore needed. Another barrier to good customer service involves the import role of service staff.

Both in the United States and Taiwan, service workers tend to be among the lowest paid and least experienced of all workers. Barbee and Bott, suggested that this is a potential problem that requires significant attention and suggested several steps that could be undertaken to improve attitude and performance of staff. These include training, opening lines of communication with staff, developing effective reward systems and delegating responsibility and authority to the greatest extent possible.

Further, Schlesinger and Zornitsky, found that employee perceptions of service quality are directly and positively related to job satisfaction and self-perceived service capability. In addition, they found that increasing job satisfaction led to a direct increase in service quality.

the relationship between web based service quality and customer loyalty

Customer assessment of each of these dimensions is measured by comparing scales of customers expectations and actual experience on a battery of 22 items, or approximately four items per dimension. Some research reported that reliability appears to be the most important service dimension for customers across many industries in which they have used the SERVQUAL methodology Parasuraman et al.

Theoretically, it is based on the disconfirmation paradigm. While this approach has been widely adopted by customer satisfaction researchers e.

They have suggested that just measuring perceptions might be a better indicator of service quality. Finally, still others have argued that the service quality measures are specific to specific contexts or situations and should not be considered to be universal constructs e. They are the psychometric properties of the measurement, the linkage between satisfaction and quality and the use of gaps difference scores to assess perceived quality.

In an attempt to look at alternative approaches, Gounaris attempted to develop and validate an instrument for measuring perceived service quality but in a business-to-business b2b transaction. Operationally, it is difficult to conceptualize expectations and this has led to some people criticizing the validity of the underlying construct used to measure service quality.

At the same time, the instrument only averages four questions for each dimension, which leads some to question how well so few items can measure such broad concepts. Related to this concern about the number of items is the fact that statistically a limited proportion of variance is extracted by the evaluation of the five factors. Finally, others suggest that 19 29 having to give the same questions to customers twice, once for expectations and then again for perceptions may lead to customer confusion and inattention Buttle, Along similar lines, several authors Buttle, ; Llosa et al.

This criticism is rooted in the belief by some that service quality is culturally defined. In fact, some studies conducted in different cultures cross-national and with different socio-economic groups have led to questions about the validity of the underlying constructs for the SERVQUAL scale e.

There are ample research findings that indicate that not all concepts and constructs are equivalent in different cross-cultural contexts Cavusgil et al. So that, the number of and specific types of dimensions of service quality probably varies depending on the culture. This concern may be particularly valid in developing countries, where service quality is less evolved or of concern.

For example, Imrie et al. Other studies such as Angur et al. All of the research discussed thus far has emphasized situations involving face to face interactions. The role of direct personal contact is clearly important but not 20 30 necessarily isolated as a factor because all the research assumes it is a variable present in all interactions.

For this and other reasons, customer service interactions not involving face to face contact may involve different factors, weight various factors differently, exclude some factors completely or include new factors unique to a computer based interaction. Thus, there is a need to specifically evaluate service quality in an Internet context.

Further, the development and expansion of e-commerce is creating situations where customer service problems may impact the provider-customer relationship in different or even more profound ways than customer service based on direct person-to-person contact.

The impact of service and quality of service issues is growing and needs to be understood if companies are going to gain the greatest possible benefits from providing on-line services.

Smith and Ruppa, b and Smith also suggested that a valid and significant theory concerning e-commerce should be based on more than its ability to affect communication data and information flow. It also needs the ability to transform the relationship between businesses and customers.

the relationship between web based service quality and customer loyalty

In other words, creating a customer advantage and information transfer are the key realizations of the information revolution. An expansion of the importance of e-commerce should concern IT researchers with the socio-economic ramifications of these change agents. It is also one of the often studied antecedents of relationship quality.

Service quality represents basic customer expectations, thus, a hygiene factor. In a study of service quality in banking, hospitals, and photo development, service quality was found to have a positive effect on relationship quality, which includes satisfaction and trust [30].

Service quality is an important factor affecting customer satisfaction [31]. In studying the 3C computer, communication, and consumer electronic retail industry in Taiwan, service quality has been shown to have a significant impact on trust [33]. The Conceptual Model of the Research In this research, a model that investigates the effects of relationship quality and mental image and commitment on customer loyalty.

Both relational qualities, including satisfaction and trust and mental image and commitment have significant effects on customer loyalty Figure 1. Mental image has positive effect on customer Loyalty. According to the table above, the mean and T of satisfaction, trust, commitment, mental image: Now we can come to the conclusion research: Satisfaction has most amount of positive effect on customer loyalty.

The variable of mental image is of most positive effect after satisfaction and following these variables, trust, and commitment are most effective on customer loyalty. According to Table 2the mean and standard deviation of service quality are Since the calculated t 8. According to Table 3the mean and standard deviation of service quality are Since the calculated t 6.

Discussion The statistical populations of the research are the customers of private banks and the data was collected using the questionnaire and also the data has been analyzed using SPSS software. Validity of the study has been taken based on the forms and criteria of the literature and experts. Reliability of the questionnaire has been calculated through cronbach alpha. In this research, a model that investigates the effects of relationship quality and mental image and commitment on customer loyalty.

Both relational qualities, including satisfaction and trust and mental image and commitment have significant effects on customer loyalty. In our study satisfaction is more critical to customer loyalty in private banks.

This approach provides a complete and detailed way to study factors relevant and of interest to marketing scholars. Service quality is found to be an important factor to both satisfaction and trust in this study, which is in consistent with prior research. It is still true in banks that improving service quality brings the benefits of increased customer satisfaction and trust.

Service providers should really consider ways to improve their services in order to maintain the basic strength to compete.

Conclusions In this research, the hypotheses based on the literature review were formulated. Now we can come to the conclusion based on the conducted research: Satisfaction with the bank has the most amount of positive effect on customer loyalty in service business organization the variable of mental image is of most positive effect after satisfaction and following this variable, trust and commitment are most effective on customer loyalty respectively.

We also concluded that the effect of the quality of services on satisfaction is greater than its effect on trust. Also according to many experimental researches, there is a direct relationship between the satisfaction of organization personnel and that of customers.

Satisfied personnel and solve the problems by having positive contact with customers. And it can be claimed that the personnel who are satisfied with their job have enough energy to empathize with customer. In this respect, we could recommend that the following be done: To make use of the standards of quality known to everyone and to constantly assess the frequency of their usage: Nowadays, the role of the quality of the services in gaining the customer satisfaction is known to everyone.

The higher quality the services enjoy, the more will be the customer satisfaction and thus their loyalty to the organization. To achieve this important factor, it is essential to constantly assess the quality of the services.

THE RELATIONSHIP BETWEEN WEB-BASED SERVICE QUALITY AND CUSTOMER LOYALTY. Wan-Jin Leu A DISSERTATION

Teaching the different ways through which the staff could properly communicate with customers by holding related seminars: The staff needs to be trained to be able to communicate properly and efficiently with the customers. The use of modern communication technology to achieve the customer satisfaction: Among the factors concerning the customer satisfaction and trust we can refer to giving useful and proper information to them through banks as well as informing them about the new technologies of the organization.

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