US firms have long since recognized the economic necessity of expanding their market overseas; however instead of adopting cross‐cultural management strategies used by their…
Abstract
US firms have long since recognized the economic necessity of expanding their market overseas; however instead of adopting cross‐cultural management strategies used by their European and Asian counterparts, US firms proceed with an ethnocentric or geocentric viewpoint. Provides an outline of EuroDisney as an ethnocentric example and lists cultural mistakes; supplies McDonald's Moscow experience as a famous geocentric example and outlines cultural challenges. Illustrates several connected realities which managers should acknowledge and expresses the view that cross‐cultural management affairs cannot be explained by economic methods.
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Samuel M. Natale and Joseph W. Ford
Written in response to many enquiries about how the social audit islinked to quality control issues, reviews the developmental history ofthe social audit and its links to…
Abstract
Written in response to many enquiries about how the social audit is linked to quality control issues, reviews the developmental history of the social audit and its links to government regulations. Discusses and analyses ethical dilemmas.
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Since its launch in 1985, SERVQUAL has become a widely adopted technology for measuring and managing service quality. Recently, a number of theoretical and operational concerns…
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Since its launch in 1985, SERVQUAL has become a widely adopted technology for measuring and managing service quality. Recently, a number of theoretical and operational concerns have been raised concerning SERVQUAL. Reviews these concerns and proposes a research agenda.
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Spiros P. Gounaris, Vlassis Stathakopoulos and Antreas D. Athanassopoulos
Using empirical data derived from the Greek banking sector, the authors attempt to model the influence of bank‐specific (market orientation) and customer‐specific (comparison…
Abstract
Using empirical data derived from the Greek banking sector, the authors attempt to model the influence of bank‐specific (market orientation) and customer‐specific (comparison shopping, influence by word‐of‐mouth‐communication and personal relations with banks’ employees) parameters on the customer’s perception of service quality. The latter is conceptualised and examined as a multidimensional concept comprising employee competence, the bank’s reliability, the innovativeness of the bank’s products, its pricing (value for money), the bank’s physical evidence and the convenience of the bank’s branch network. As the findings suggest, the various dimensions of the quality of service offered by a bank are not influenced by all the antecedents examined in this study. Moreover, the gravity of the influence that each of the examined parameters exercises on the customer’s perception of the various dimensions of quality was also found to vary considerably, with certain dimensions being more influenced by the same parameter than others. Based on these findings, the authors suggest specific implications for both the academia and practitioners in the banking industry.
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Mukesh Kumar, Fong Tat Kee and Vincent Charles
This study aims to find the differences in the service quality (if any) between two types of banks, namely conventional and Islamic, in terms of common critical factors after…
Abstract
Purpose
This study aims to find the differences in the service quality (if any) between two types of banks, namely conventional and Islamic, in terms of common critical factors after re‐examining the SERVQUAL model, originally pioneered by Parasuraman. Further, the technique of dominance analysis is used to examine the relative importance of the critical factors in closing up the overall service quality gap in these two types of banks.
Design/methodology/approach
The sample is made up of 308 bank customers, consisting of the customers from both Islamic and conventional banks from different parts of Malaysia. The data have been collected by using the structured questionnaire, which consists of three parts. Part 1 deals with consumers' usage of banking channels and their banking behaviour. Part 2 contains 26 statements related to service quality dimensions based on past literature. Finally, Part 3 contains the questions related to the socio‐demographic profiles of respondents.
Findings
The modified SERVQUAL model consists of four critical factors (dimensions) as detected by factor analysis: tangibility, reliability, competence, and convenience. The results reveal that the expectations on competence and convenience are significantly different between conventional banks and Islamic banks, whereas the perceptions on tangibility and convenience are found to be significantly different between these two types of banks. The application of dominance analysis in the SERVQUAL model indicates that the difference between the two types of banks is in terms of degree and not pattern. Competence and convenience are found to be the relatively more dominating factors in both the types of banks. These two dimensions together can help to reduce the overall service quality gap to an extent of 72 per cent in the case of conventional banks and 85 per cent in the case of Islamic banks.
Originality/value
The application of dominance analysis in the SERVQUAL model could be more meaningful in determining the relative importance of the factors when dimensions are interdependent. It permits direct comparison of measures and allows one to predict the level of influence of one factor in comparison with other factors. The study could be quite useful from the policy perspective in providing the guidelines to develop proper strategies and acknowledge the changes in customers' banking behaviour more quickly.
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G.S. Sureshchandar, Chandrasekharan Rajendran and R.N. Anantharaman
The research literature on service quality has indeed swelled enormously over the past few years with numerous researchers administering various models across the world…
Abstract
The research literature on service quality has indeed swelled enormously over the past few years with numerous researchers administering various models across the world. Nevertheless, the SERVQUAL instrument forms the basis on which all other works have been actualized. Interestingly, the conceptualization, measurement and applications of SERVQUAL across different industrial and commercial settings are not bereft of controversies either. A careful examination of the instrument divulges that the factors and the corresponding items are not comprehensive as it appears that the instrument has left out certain important constituents of service quality. In this background, the current research work strives to bring to light some of the critical determinants of service quality that have been overlooked in the literature and proposes a comprehensive model and an instrument framework for measuring customer perceived service quality. The instrument has been designed with specific reference to the banking sector. Data have been collected from customers of banks in a huge developing economy. The proposed instrument has been empirically tested for unidimensionality, reliability and construct validity using a confirmatory factor analysis approach. The present study offers a systematic procedure that could form the cornerstone for providing further insights on the conceptual and empirical comprehension of customer perceived service quality and its constituents.
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Evangelos Tsoukatos and Evmorfia Mastrojianni
The purpose of this study is to build a retail‐banking specific quality scale and, through its examination and comparison with the SERVQUAL and BSQ metrics that are currently used…
Abstract
Purpose
The purpose of this study is to build a retail‐banking specific quality scale and, through its examination and comparison with the SERVQUAL and BSQ metrics that are currently used in banking, to deepen understanding of quality determinants in the industry. Furthermore, the study is set to provide additional input to the debate over generic against setting/industry/time‐specific quality metrics.
Design/methodology/approach
The study is implemented through a two‐stage process of literature review and empirical survey. Evidence drawn from Greek retail banking, through a specially designed research tool, is analyzed through reliability, factorial and regression analysis to determine the scale's item and factorial structure and assess its reliability and validity.
Findings
The BANQUAL‐R metric is introduced, with key elements assurance/empathy, effectiveness, reliability and confidence, a combination of SERVQUAL and BSQ dimensions. Findings back the setting‐specific approach of service quality and the notion that SERVQUAL provides the skeleton on which setting‐specific scales should be built.
Practical implications
Bank managers are provided with a reliable and valid metric of service quality in retail banking. Its dimensionality implies that under credit‐crunch conditions service delivery should be directed towards reinstating customers' trust and confidence that are put in danger. Banks should redirect resources from tangibles to the human contact‐related service elements.
Originality/value
Although the subject of “service quality measurement” is extensively researched, the continuously changing marketing environment calls for an ongoing assessment of quality factors. With respect to its academic value, the study accumulates knowledge that will eventually outgrow the boundaries of academia and pervade management.
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Audrey Gilmore and Rosalind McMullan
The purpose of this paper is to discuss the use of measurement scales and to illustrate some of the drawbacks of using scales for measuring service quality without due recognition…
Abstract
Purpose
The purpose of this paper is to discuss the use of measurement scales and to illustrate some of the drawbacks of using scales for measuring service quality without due recognition of the limitations and rigidity of such scales, especially when they are applied to the complexity of service marketing situations and contexts.
Design/methodology/approach
A review of the most widely used scales in services measurement, including SERVQUAL and SERVPERF is provided, along with some of the conceptual issues surrounding scale design and use in service contexts. Then some qualitative research techniques are considered in terms of their adaptability and flexibility for carrying out research regarding the complex nature of services.
Findings
Measurement scales are evaluated and discussed. The key criticisms of best‐known scales used for services situations are presented. Then consideration is given to what might be a “best practice” scenario for measuring and assessing service‐related issues in a service context.
Originality/value
The discussion draws attention to the importance of recognising the most suitable research method for a service‐specific research problem/question rather than imposing a well known measurement scale or technique that may not suit the purpose.
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Mukesh Kumar, K.S. Sujit and Vincent Charles
The purpose of this paper is to propose the microeconomics concept of elasticity to estimate the SERVQUAL gap elasticity to derive important insights for service providers to…
Abstract
Purpose
The purpose of this paper is to propose the microeconomics concept of elasticity to estimate the SERVQUAL gap elasticity to derive important insights for service providers to develop the right strategies to bridge the overall gap in service.
Design/methodology/approach
The dimensions of SERVQUAL adopted from Parasuraman et al. (1988) and Kumar et al. (2009) are first verified for their unidimensionality using structural equation modeling and reliability in the context of United Arab Emirates banking industry. Furthermore, the technique of dominance analysis is used to derive the relative importance of dimensions for different groups of banks. Finally, the stepwise log-linear regression models are used to estimate the gap elasticity to measure the responsiveness of the overall SERVQUAL gap to a change in customers’ perception on different dimension.
Findings
The results reveal that the dimension which is prioritized as the most important dimension need not to be the one to be targeted under the resource constraint to react faster to the changes of customers’ banking behavior.
Originality/value
This is probably the first attempt to examine the service quality through gap elasticity. This method is especially useful when the traditional approach to measure relative importance of critical factors fails to clearly discriminate between two or more dimensions, which, in turn, may lead to failure in decision making to choose the right strategies to bridge the overall gap in the service.