Moneychangers: an appraisal of their service

Abstract

Purpose

This study aims to develop a set of dimensions for measuring the service of moneychangers.

Design/methodology/approach

Attributes for measuring the moneychanger service were created from exit interviews and a review of the literature, and then administered a survey to consumers who had just completed a currency exchange. Respondent feedback was factor analysed, creating six service dimensions: “appearances of the tangibles”, “cost of service”, “interpersonal skills”, “service delivery”, “administrative matters” and “display board”.

Findings

The “service delivery” and the “cost of service” dimensions exceeded customer expectations; the “appearances of tangibles” and the “interpersonal skills” dimensions fell short of expectations; “administrative matters” and the “display board” dimensions merely met expectations. A general finding of this study is that moneychangers, even though they are small businesses, are able to effectively compete with corporate giants (i.e. banks) in exchanging currencies; they achieve this through more than meeting customer expectations in respect of their service delivery and costs.

Research limitations/implications

Based on this research, it is recommended that researchers who conduct studies in service areas might first take steps to identify measures which are specific to the type of business being investigated.

Practical implications

From a practical viewpoint, if the proprietors of moneychanger businesses want to improve their service, they should take steps to upgrade the interpersonal skills of the staff who serve customers and the appearances of those tangibles which are visible during service encounters.

Originality/value

Develops a set of dimensions for a specific type of business.

Citation

Gerrard, P. and Barton Cunningham, J. (2005), "Moneychangers: an appraisal of their service", International Journal of Retail & Distribution Management, Vol. 33 No. 10, pp. 749-765. https://doi.org/10.1108/09590550510622290