Service Quality Dimensions That Affect Customer Satisfaction Commerce Essay

assist look Dimensions That Affect customer gratification Commerce EssayThe objective of this chapter is to formulate the search head word and prepare the conceptual framework for the national. A detailed overview of how the seek was conducted, the operationalisation of the variables, speculation construction and the search methodology utilise which covers entropy collection methods utilize, sample picking and method used for info epitome are discussed.3.2 Research skepticismBased on the review of literature and the research problem, the following question has been formulated in order to determine the blood that exists betwixt the motley dimensions of guest aspect and the renovation smell by the damages companies for push back restitution policy holders. It is important to understand this carnal knowledge backship as it would change the companies in the redress sector to improve their do attribute and to geminate and to exceed client come forwardl ooks and create a knowledge base in order to stay ahead in the market.The following research questions were derived from the research problem and the review of the literature.What are the divine assist of process feature Dimensions that affect node satisfaction in the Motor amends pains in Sri Lanka?What is the ut intimately to which customers are satisfied with the ope mark received from the Motor damages pains?What are the ranchs mingled with customer wait on character and Customer propitiation of Motor damages policy policy holders?3.3 Conceptual Framework redevelopment fictitious character DimensionsDependant VariableIn aquiline VariablesSource Developed by the Researcher3.3.1 Rationalization of the conceptual frameworkConceptual framework was replicated establish on Zeithaml, Parasuraman Berry (1991), to scrutiny this study in the Motor indemnification Industry in Sri Lanka.On the detailed literature review, the research identified v movers that impact p rise delivery to customer of Motor insurance helps. These louver benefit smell dimensions of SERVQUAL Model by Parasuraman and Berry et el (1985), take in been derived as free-living variables. These variables f each under supporter providers Perspective in the conceptual framework. The dependent variable was identified as Customer satisfaction.The gaps in select of profit bequeath be identified by using these five dimensions. This is the gap amid the Customers expectation and fix of the Motor Insurance process delivery, which leave behind subsequently consent an impact on customer satisfaction.Rust Oliver (1994) and the Nordic Model (Gronoos, 1992) too emphasizes the importance of meaning of the gap between expectations and the experience in attend to industry. Hence completely these support been included in the conceptual framework.3.3.2 Definitions for VariablesTangibles Modern Equipment and Technology, Visu ally appealing physical facilities neat visual asp ect employees and agents, visually appealing heartys associated with goods. Appearance of physical facilities, equipment personnel office and communication material (Parasurman et.al,1998 and 1990). reli talent Keeping promises when promises to do something by a certain condemnation , offering products and operates of utmost look, issuing contracts with clear, transparent and non ambiguous terms, cave in customers claims with no unessential delays, ,showing sincere interest when solving customers problems, offering services right the jump clip without unnecessarily discomforting customers, providing services inside the stipulate contract metre limits, issuing error free bills, statements, receipts, contracts, claims and other documents. capacity to perform the promised service dependably and accurately (Parasurman et.al,1998 and 1990).responsiveness telling customers scarce when the services will be performed, doing their best to agree prompt service to customers, e ndlessly willing to help customers, never creation too lodge in to respond to customers requests . Willing to help customer and provide prompt service (Parasurman et.al,1998 and 1990). pledge Customers feeling safe in their transactions, behavior instilling sanction in customers, cosmos consistently courteous with customers, having employees and agents with the necessary knowledge to give professional services to customers. Knowledge and courtesy of employees and their ability to convey put and confidence (Competence, courtesy, creditability and credential of the service), (Parasurman et.al,1998 and 1990).Empathy Giving customers individual services, operating hours convenient to all customers, giving customers personal attention, having the customers best interest at heart, understanding the particular needs of customers. Caring, individualized attention the firm provides its customers (Access to organizations re hand overatives, communication and understanding the custom er), (Parasurman et.al,1998 and 1990).As presented in the above conceptual model, the independent variable of dimensions of service fictitious character will be studied. Price is withal a relevant variable. However, the contract of this study is on service tonicity attributes and thitherfore is non within the scope of this study.Theoretical research has presented several different service character reference definitions. However, Parasuraman et al. (1985) definition of service quality, which has been used in m whatever industry studies before, was adopted. value quality is defined as the degree of discrepancy between customers prescriptive expectations for the service and their perceptions of the service performance. The SERVQUAL model developed by Parasuraman et al.(1998), is therefore used for this study.Hypotheses FormulationHypothesis is a testable speculative statement delineating the sexual congresss between all the elements of a theory (Page Meyer, 2000).The developm ent of hypothesis was categorized into ii sections establish on indemnity policy companies customers. Accordingly five hypotheses were developed. The source for all hypothesis development was based on the conceptual framework. Furthermore, the hypotheses based on policy companies were primarily related to the importance of each expectation. The hypotheses developed for customers were based on the service quality of obtaining Motor redress policies. When developing hypothesis, literary productions review under section 2.18, according to the study carried out in Greece and Kenya by Rand, (2006), it was proved that there is a descent between service quality dimensions and expected and experienced service quality by the customers in the indemnity industry.3.5 Hypothesis Rationalization estimate Experienced assistance flavor in proportion to Reliability dimension in aim insuranceAccording to Parasuraman et al (1985) Reliability dimension measures the ability to perform the promised service dependably and accurately. As per the research carried out by Rand (2006) , it says that the Reliability has a huge impact on the service quality in service industry. E peculiarly in a industry like Motor insurance it has a huge effect. Consumers satisfaction choice of service provider and service quality evaluation are influenced by the expectations of the consumer, (Trinh et al.2000).As menti angiotensin-converting enzymed above in the research carried out in Kenyan Insurance industry by Rand (2006), it is noted that most of the researchers (Rand, 2006 Trinh, 2000) have identified that Reliable service always has a positive impact on the service quality provided by the company. in that respectfore it is meet to investigate the kind among judge Experienced Service Quality in congenator to Reliability dimension in take insurance. It could be hypothesized that,H 1 0 thither is no notificationship between Expected Experienced Service Quality in relation to R eliability dimension in force back insuranceH 1 There is a relationship between Expected Experienced Service Quality in relation to Reliability dimension in push back insuranceExpected Experienced Service Quality in relation to responsiveness dimension in motor insuranceThe Dimension responsiveness explains about willingness to help customers and provide prompt service. Responsiveness fixings importantly has a positive effect on Customer satisfaction.Quality service provision, customer satisfaction and customer loyalty has recently been emerging as important parameters for both researchers and practitioners in turkey. This has been proved with a research carried by Yale University in Turkey (2009) on Service Quality in healthcare. This research was also based on the service quality. To provide greatest service quality responsiveness is a very important part since service providers should always willing to help customers. Especially in an industry such as insurance it is a ve ry decisive factor since the customer is expecting a prompt action for their problems. So responsiveness factor effectively contributes to reduce the gaps between the Expected Experienced Service quality by the motor insurance policy holders. Therefore it is worthy to locate the relationship between the Expected Experienced Service Quality in relation to Responsiveness dimension in motor insurance. So it could be hypothesized that,H 2 0 There is no relationship between Expected Experienced Service Quality in relation to Responsiveness dimension in motor insuranceH 2 There is a relationship between Expected Experienced Service Quality in relation to Responsiveness dimension in motor insuranceExpected Experienced Service Quality in relation to Assurance dimension in motor insuranceAssurance dimension is all about, the knowledge, competence, and courtesy of service employees and their ability to convey trust and confidence. Ducker (1991) defines service quality as What the cust omer gets out and is willing to pay for rather than what the supplier (of the service) puts in? Hence, service quality is a lot conceptualized as the comparison of service expectations with actual performance perception (Bloemer, Ruyter et al. 1999 Kara, Lonial et al. 2007). Service science literature often relies on SERVUQAL as an instrument to measure quality of service provided. SERVQUAL plateful was developed based on a marketing perspective with the stick out of the Marketing Science Institute (Parasuraman, Zeithaml et al. 1986). It is very important to keep the arrogance on the agreement made the company to their customers. modifiedly in the insurance industry, it is crucial factor to offer the assurance of the services provided. Therefore it is worthy to site the relationship between the Expected Experienced Service Quality in relation to Assurance dimension in motor insurance. So it could be hypothesized that,H 3 0 There is no relationship between Expected Experien ced Service Quality in relation to Assurance dimension in motor insuranceH 3 There is a relationship between Expected Experienced Service Quality in relation to Assurance dimension in motor insuranceExpected Experienced Service Quality in relation to Empathy dimension in motor insuranceEmpathy dimension is about feel for individualized attention provided to customers. According to the expectancy disconfirmation model, customers satisfaction is a persist between his/her service performance perception and expectation (Pizam and Ellis, 1999), and illustrated as enjoyment=f (Perception-Expectation). It is very important to offer individual attention to the customers specially in the service industry. Trustworthiness is one of the critical factors in any industry for the customers. Empathy factor defines that. Keeping the customer complaints and criticisms is very important in the motor insurance industry as the competition is very high. If the organization looses one policyholder that may affect the organization immensely. Therefore it is worthy to order the relationship between the Expected Experienced Service Quality in relation to Empathy dimension in motor insurance. So it could be hypothesized that,H 4 0 There is no relationship between Expected Experienced Service Quality in relation to Empathy dimension in motor insuranceH 4 There is a relationship between Expected Experienced Service Quality in relation to Empathy dimension in motor insuranceExpected Experienced Service Quality in relation to tangibility dimension in motor insuranceTangibility is all about appearance of physical facilities, equipment, ambience, personnel and communication materials. The rewards to firms that establish a loyal customer base have been salubrious documented (Armstrong and Symonds, 1991 Heskett et al. 1994 Reichheld amd Sesser, 1990). In general, increased loyalty leads to lower greet of servicing the firms customers, reduced marketing expenditure, increased bu siness from the existing customer base and greater profits. The internal appearance and the facilities is also affecting the service quality. It in turn helps the company to retain their customer and reduce the unnecessary costs such as saving costs. Therefore it is worthy to identify the relationship between the Expected Experienced Service Quality in relation to Tangibility dimension in motor insurance. So it could be hypothesized that,H 5 0 There is no relationship between Expected Experienced Service Quality in relation to Tangibility dimension in motor insuranceH 5 There is a relationship between Expected Experienced Service Quality in relation to Tangibility dimension in motor insurance3.6 OperationalizationBased on the SERVQUAL dental plate and using five service quality dimensions.ConceptsVariableIndicatorMeasureReliabilityPrice/Premium likely Premium ratesIn order to evaluate customer expectation and experience , a 5 point photographic plate was used.To measure custo mer perception the rating scale , for 1 Not important and 5 Very Important .And to measure customer experience the rating scale, for 1 Not Experienced at all , to 5 Experienced at a high takeProduct RangeRange of products offered, to slip individual requirementsPhysical Access availability and convenience of facilities and branch entanglementElectronic accessAvailability of Telephone and online facilitiesService delivery aim of service as expected/promisedResponsivenessWaiting time mediocre time taken to process a claim after an adventureIn order to obtain data on average time spent with the Insurance providing company to get an service rating scale from 1 to 5 was used . for 1 Not Experienced at all , to 5 Experienced at a high level .In order to evaluate customer expectation and experience , a 5 point likert scale was used.Level of responsiveness of the Insurance facultyTime taken to respond to an issueAssuranceStabilityThe batten of safety when making a claimIn order to ev aluate customer expectation and experience, a 5 point likert scale was used. preventive of the investmentMaking the actual costConvenience to the holderConfidentiality guardianship of confidentialityProduct KnowledgeThe knowledge of the product/features by the staff membersEmpathyBenefitsSpecial benefits and features for the customerIn order to evaluate customer expectation and experience, a 5 point likert scale was used.AttentionPersonal attention to customers and recognizing unbendable customersCaringHelping customers in a pleasant and caring stylusApproachabilityEasy to approach staff membersTangiblesEnvironmentPleasant air inside the companyIn order to evaluate customer expectation and experience, a 5 point likert scale was used.FacilitiesFacilities provided to the policy holdersParkingAvailability of adequate parking at the Insurance companyNumber of pickle centers in Sri LankaDirectional signs and informationAvailability of adequate instructions and directions of counters and procedures and piano directions when filling forma and other documentsAppearance of Staff membersStaff members are dresses appropriatelyLayoutConvenient layout of the company interiorCustomer gratificationLevel SatisfactionLevel of satisfaction of the insurance company in relation to each service quality dimensionA 5 point likert scale was used to measure the likelihood of these indicators ranging from Very Likely to Highly Unlikely.In Order to measure the time length of the relationship the respondent has with the Insurance provider , 5 time slots were presented where by the respondent could select his/her most relevant time slot.Study was carried out to ascertain the validity and Reliability of the Questionnaire. This was done as the instrument to use collected data was not tested previously.3.7 Research MethodologyThe Research methodology is the way research is conducted. Research methodology refers to the theory of how research should be undertaken (Saunders, et al 2005).T he first step of the study is to assess the service quality gaps in relation to the customer expectations and experience among five leading Insurance Companies which deals with Motor insurance in Sri Lanka and with each of the five SERVQUAL dimensions. This study helps to determine the average service quality gap score (between customers expectations and experience) for each service quality dimensions and how it affects the general customer satisfaction. The second step each Insurance companys gap advance for each service quality dimensions.This is to examine the differences within each insurance company when providing services to the customers and to compare the differences of the overall satisfaction of customers in each insurance company. Stage three measured the level of satisfaction of the customers and the twenty-five percent stage examines the relationship between the expected and experienced service quality gaps by the customers for each dimensions. The final Stage integr ates the data obtained from the five insurance companies and conclusions were prepared in accord to the findings. Based on research problem, front data was the main source of data used in this research. logical with the deductive research method, data collection through questionnaires has been a yen proven method to collect valid and reliable data (Page Meyer, 2000). The deductive method refers to the use of a theory to generate prepositions or hypothesis that can be tested. Thus, the research method has been chosen for this study is based on deductive method.3.7.1 Method of Data CollectionIn this study the primary data was collected through a self culmination questionnaire from customers of the selected five Insurance companies. The study followed the Quantitative method to gather and take apart the data. The secondary data was collected from secondary source such disposal publications (IBSL Annual Report 2010 Central Bank Annual Report 2010), ships company Annual reports and from other publications.3.7.2 Selection of SampleFor the purpose of gathering data on customer expectation and customer experience, a total count of 250 questionnaires were distributed, from which a total of 224 valid Reponses were received and selected for data analysis.Individuals within a sample are chosen by chance rather than by the researcher or by being self-selected (Page and Meyer, 2000). A simple ergodic sampling technique was used for this study, so that each unit of the macrocosm will have a cognize and equal chance of being selected.The sample was spread across Motor insurance policy holders of five dollar bill different Motor insurance providing companies in Sri Lanka. A brief comment of selected five companies are given below,Aviva NDB Insurance PLCPLCAviva NDB Insurance PLCtook wing as a leading player within Sri Lankas insurance landscape in the late 1980s. Over the years, the societys good governance practices, ethics and innovation have helped it to soa r to new heights.The dynamism and creativity of the Aviva NDB Family has been the engine of its evolution into a superior entity in the insurance and financial services sector.The Company has enter a Consolidated Revenue of Rs. 7, 265 gazillion with an impressive harvest-festival rate of 23.7% over the previous year. The Revenue reported for the current year includes Rs. 171.2 million being the gross-up of tax withheld at source on Government Securities. Excluding this, the growth for 2010 stands at 20.8%.Union Assurance PLCUnion Assurance is a building complex insurer transacting both Life and General business including personal insurance, in operation since 1987. A Public Quoted Company, UA entered the insurance arena at the time the backstage sector was permitted to set up in insurance, following the canon of the Control of Insurance (Amendment) Act No. 42 of 1986. Committed to move the highest standards of service and security, UA is backed by the corporate might of blue fighting companies John Keells and Carson Cumberbatch.UAs reinsurers are world leaders, chosen for their dependability and total security. In short, they are the best in the business. The companys paid up capital as at 31 December 2009 is Rs 250 million and net asset base, Rs 1.6 one million million, also indicates the companys financial stability and strength, and places it firmly at the apex off private insurance service providers in Sri Lanka.Asian bail Insurance PLC indoors a very short time layover, Asian Alliance Insurance PLC has achieved what every company yearns for it has touched the hearts of its customers with outstanding levels of professionalism and service.Asian Alliance commenced operations in December 1999 with 50 employees. Today the company has boastful from strength to strength to fabricate one of Sri Lankas leading players in the insurance industry. The company caters to an ever-growing client base that consists of corporate and individual clients. The secr et seat the Asian Alliance Insurance success story lies in its ability to offer tailor-made insurance solutions to its customers.Sri Lanka Insurance CooperationSri Lanka Insurance Corporation which was realized in 1962 as a State Owned Corporation was converted to a Limited Liability Company for a brief period of 6 years and was re-instilled in the state sector on the quaternate June 2011, further strengthening the Corporation as the strongest and the largest Insurer in the Country. Sri Lanka Insurance is now backed by government protection and service rightness on par with the best in the private sector. At present Sri Lanka Insurance has over 120 Branches Island with an unparalleled assets base under counsel of over Rs.64.8 billion with a Life fund of over Rs.39 billion and over one million policies in force.The Motor Insurance segment has branched off into unrelated areas such as Theft exclusively, kick upstairs Only, Fire and Theft, 3rd Party Fire and Theft and Act only once again, offering covers aimed at satisfying their clientele to a maximum.Ceylinco Insurance PLCFrom a solid and innovative start in 1939, Ceylinco Insurance Company Limited has faced numerous changes and challenges and has successfully weathered them all. Registered as Ceylinco Insurance Company Limited in 1987 and commenced business on the 14th of January 1988, in the spheres of Life and General Insurance, we have grown from strength to strength.Today, they have become the leading insurance company in Sri Lanka, with the largest network of branches and agents in the insurance industry. Their goals include becoming the leading provider of protection and financial security in Sri Lanka and in select international markets.3.7.3 Structure of the QuestionnairePart one of the questionnaire focuses on demographic features of the respondents. Part two focuses on the dimensions.Questions from 1.14 entail in Reliability dimension and thereafter, based on Operationalisation, 10 questions focus on Responsiveness dimension 16 questions represents the Assurance dimension and 9 questions on Empathy dimension. Final dimension which is Tangibility has 10 questions. Each dimension has 2 columns to rate expected and experienced using a likert scale of 1.5, not important at all being No.1 and Very important being No.05.For the study, questionnaire was intentional in accordance with the research objectives.The Questionnaire is based on the five SERVQUAL dimensions presented by Parasuraman et al (1985) and the Gap 5 which is also known as the Customer gap (the gap between customer expectation and experience) of the SERVQUAL mo del presented by Parasuraman et al (1985) , modified and tailored to specific service quality requirements of the Motor Insurance industry.Table 2 Structure of the QuestionnaireQuestionnaire VariablesMeasurement Items scratch 1Personal detailsSection 2Measure Service quality perceptions of five insurance companies in general from individualsSection 3Me asure Service Quality dimensions separately to find out Expected Experienced service quality by each customer.3.1 Reliability3.2 Responsiveness3.3- Assurance3.4 Empathy3.5 -Tangibility3.7.4 Method of Data AnalysisThe Data was collected through a Questionnaire. The study was carried out using Descriptive statistics as well as illative Statistics. Under Inferential statistics an ANOVA analysis and diametric sample two test were carried out.Descriptive Statistics Descriptive statisticsare used to describe the main features of a collection ofdataquantitatively.Inferential Statistics Inferential statistics are used to draw inferences about apopulationfrom asample.T-Test This test is used to compare the means of two samples (or treatments), even if they have different numbers of replicates.ANOVA test The Analysis Of Variance, popularly known as the ANOVA test, can be used in cases where there are more than two groups.The following methods have been used to break the data obtai ned from the study.Gap technique The gap technique will be used to analyze and identify the service quality gaps between expectation and experience of customers.Comparative Analysis A comparative analysis will be conducted in relation to the gap technique between the five Insurance companies using graphs and tables.Relationship Analysis Under Inferential Statistic analysis paired sample two test will be conducted to analyze the relationship between Expected service Quality and Experienced Service Quality by the customers.3.7.5 Pilot StudyPilot study was carried out to ascertain the reliability and validity of the questionnaire. The instrument used to gather data in a research should be valid and reliable (Page Meyer, 2000).3.8 abbreviationThe purpose of this chapter was to explain and formulate the research questions and to provide a conceptual framework.The research question was formulated and thereafter the conceptual framework was designed using Service Quality as the indepe ndent variable and Customer Satisfaction being the dependent variable. Thereafter, the operationalization for the study was designed in accordance with the features/qualities of motor insurance industry. Given this, the methodology for the researcher was presented which included methods of data collection, selection of the sample, the questionnaire design and the methods of data analysis. Finally the limitations of the study were mentioned.