Innovation of SME service industry in Indonesia in improving customer satisfaction

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lim Sanny ◽  
Verencia Angelina ◽  
Bernando Budi Christian

Purpose Small-medium enterprise (SME) service industry is an industry that continues to experience growth in developed and developing countries, including Indonesia. SME service industry that engaged in the service industry, namely, rental for generator set, air conditioner and sound system. In recent years, this SME has been experienced in declining in sales and getting some complaints from their customers. Many studies suggest that service quality and customer satisfaction are the key factors in the service industry. The purpose of this paper is to analyze the quality of service based on the customer’s perspective. Design/methodology/approach Data was collected using a combination of literature review, interview, brainstorming and questionnaires and analyzed by using importance-performance analysis (IPA) and quality function deployment (QFD) model. Findings This research resulted in nine technical requirements that allow the company to focus on these attributes to help the company enhance its customer satisfaction. Practical implications Based on the theory, applying service quality, IPA and also QFD will result in customer satisfaction. Practically the enhancement in customer satisfaction is not as easy as expected. Nowadays, customers always expect more and more and it is impossible to fully captured customers’ needs and always satisfy customers. Nevertheless, for this research company can understand their customers better, companies can evaluate their performances based on the customers’ perspective and know their customers’ needs. The company also know their strengths and weaknesses to allocate the resources and maximize their potential. Last but not least, the company is able to know their strategic priority that needs to be done for their better performance in the future to fulfill their customers’ needs and hope to enhance their customer satisfaction Originality/value A lot of research about customer satisfaction but still limited especially in the service industry in Indonesia using a combination of IPA and QFD model. So this research will give benefit for SMEs in Indonesia to allocate their resources more effectively by looking at the results of the four quadrants of IPA and house of quality (HOQ) framework can be used for a company as the references for their priority strategic option. Yet, to keep improving, the company recommended reviewing HOQ periodically.

2020 ◽  
Vol 1 (2) ◽  
pp. 89-100
Author(s):  
Chusnul Chotimah ◽  
Alloysius Vendhi Prasmoro ◽  
Denny Siregar

ABSTRACT Culinary business in Bekasi is growing more and more, both cafes or other fast food restaurants. This encourages entrepreneurs, investors to do culinary business. One of the fast food culinary businesses is the XYZ cafe. This study discusses the analysis of service quality in XYZ cafe about voice of customers to increase customer satisfaction at XYZ cafe. The purpose of this study is to determine the priority scale to increase the customers satisfaction based on the voice of customer and know what technical requirements should be given by cafe XYZ to does what customers need . The method used is the QFD, using the matrix house of quality. The results of this study are 15 Voice OF customer attributes that have also been sorted by priority scale of improvement, with the first priority being the taste of delicious and fresh and there are 8 attributes of technical requirements. Keywords: Service Quality, Voice of Customer, customer satisfaction, Quality Function Deployment (QFD), House of Quality


2016 ◽  
Vol 22 (5) ◽  
pp. 957-968 ◽  
Author(s):  
Hatice Camgöz-Akdağ ◽  
H. Pınar İmer ◽  
K. Nazlı Ergin

Purpose – The purpose of this paper is to employ quality function deployment (QFD) method for translating internal customer needs and expectations into appropriate service specifications to perform existing process assessments in relation to quality characteristics for increasing internal customer satisfaction. Design/methodology/approach – The integration of SERVQUAL into QFD has been used to set the success factors to improve quality in the textile industry. One of the largest textile companies in Turkey provided the sample. A SERVQUAL-type of questionnaire was used and a total of 32,938 questionnaires were distributed both manually and online, 24,551 usable were received, comprising a response rate of 77.31 percent. Findings – Findings of the QFD application suggest internal customer focus as having the highest weight score of almost 12 percent improvement. In addition, improvements in technical requirements of politeness and process communication have a 9 percent impact each on internal customer satisfaction criteria. Research limitations/implications – QFD technique is able to provide companies with a better understanding of internal customer expectations and translate these into appropriate service specifications and perform existing process assessment. Originality/value – This paper is a first attempt that applies this integrative approach to a different type of industry, thus offering practical and applied information for professionals engaged in academia and as practitioners.


2019 ◽  
Vol 26 (3) ◽  
pp. 854-870 ◽  
Author(s):  
Marvin E. Gonzalez

PurposeCustomer satisfaction refers to the extent to which customers are happy and satisfied with the products and services provided by a business. The purpose of this paper is twofold: first, to integrate lean tools in the analysis of customer satisfaction and, second, to examine its implications for research and practice.Design/methodology/approachThe author proposes the combination of three lean tools in order to design a service quality system that has customer expectations (CEs) as the first input. These tools are quality function deployment (QFD), Hoshin Kanri planning process (HKPP) and benchmarking. The author uses a case study to show the functionality of these tools and the final design of a service quality system for a medical center.FindingsInteraction between the service provider and the customer is the primary core activity for service-oriented businesses of different natures. A key relationship between trust in service quality and customer satisfaction cannot be ignored in interpersonal-based service encounters. However, there is a gap in the literature in terms of standardized lean-based procedures or methodologies that lead to improved customer satisfaction that are based directly on CEs.Research limitations/implicationsGiven the variety of the population, the authors developed several methodologies to standardize the customer responses. Using several total quality management tools, the standardization allows the authors to separate the different CEs. The gathering of customers’ expectations (voice of the customers) allows the companies to focus on the real problems expressed by the users of the service, increasing their loyalty and, most importantly in the field under study, the customer’s satisfaction with the service received.Practical implicationsFor practitioners, this study helps with the use of lean tools such as QFD, benchmarking and HKPP and attempts to bridge such a gap with an evidence-based real case.Social implicationsWith the incorporation of all the customer needs, additional elements must be considered in the design of new services. Availability for all and sustainability play an important part of the CEs.Originality/valueThis paper presents a real application of QFD and Hoshin Kanri and how they may help the service organizations with future development.


2019 ◽  
Vol 31 (4) ◽  
pp. 532-554 ◽  
Author(s):  
Tommy Lau ◽  
Man Lai Cheung ◽  
Guilherme D. Pires ◽  
Carol Chan

Purpose The abolishment of the wine tax in Hong Kong has led to increased wine consumption and increased demand for wine-related professionals, such as sommeliers. Yet the importance of sommeliers’ value-adding performance in the context of upscale Chinese restaurants has not been examined. To address this gap, the SERVQUAL framework is adopted to examine the influence of sommeliers’ service quality (SQ) on customer satisfaction (CS) and loyalty in the context of upscale Chinese restaurants in Hong Kong. Design/methodology/approach The survey method is used to collect data from 302 units of the population of interest, partial least square-structural equation modelling (PLS-SEM) is used to test the links between constructs. Findings Four of the seven dimensions of sommeliers’ service quality, namely, empathy, tangibles, credibility and assurance, have a significant positive impact on customer satisfaction and customer loyalty, whereas the impact of perceived value and responsiveness on customer satisfaction and customer loyalty is positive but only marginally significant. Reliability has a weak and non-significant impact on customer satisfaction and customer loyalty. Research limitations/implications Examining a small number of upscale Chinese restaurants in Hong Kong limits generalisation of the findings to other contexts. Replication of the research in different contexts will enhance generalizability. In terms of implications, the discussion highlights the importance of sommeliers’ service performance on customers’ SQ perceptions SQ, CS and loyalty, all of which are important variables for restaurateurs. Originality/value To the best of the authors’ knowledge, this is the first study of the influence of the quality of sommelier’s SQ on CS and loyalty in upscale Chinese restaurants in Hong Kong. Given the lack of attention to this service role in the literature, the study contributes theory from which further understanding can develop.


2014 ◽  
Vol 26 (1) ◽  
pp. 114-146 ◽  
Author(s):  
Michael Daniel Clemes ◽  
Xin Shu ◽  
Christopher Gan

Purpose – Global mobile communication is one of the most dynamic and important service markets. Several researchers suggest using a theoretical approach to develop a much deeper insight into key marketing constructs such as service quality, customer perceived value, customer satisfaction, perceived switching costs, corporate image, and customer loyalty is of vital importance to the mobile communications market. This study aims to develop and test a comprehensive hierarchical model of these six important constructs. The model also incorporates the retailing function of a major mobile communication provider. Design/methodology/approach – The research sample of 516 was drawn from customers of one of the largest mobile communications service providers in China. The data were analysed using exploratory factor analysis, confirmatory factor analysis and structural equation modelling. Findings – The results of the study support using a hierarchical and multidimensional approach for conceptualising and measuring customers' perceptions of service quality in the mobile communications market. In addition, the findings illustrate that service quality is an important determinant of customer perceived value, customer satisfaction, corporate image, and perceived switching costs. Customer perceived value is also an antecedent of customer satisfaction. Corporate image, customer satisfaction, and perceived switching costs are three key drivers of customer loyalty. However, the findings also indicate that corporate image is not an important determinant of customer satisfaction and that customer perceived value is not a key driver of customer loyalty. Originality/value – This is the first paper that has developed and tested a comprehensive hierarchical model of the mobile communications market.


2015 ◽  
Vol 7 (2/3) ◽  
pp. 152-169 ◽  
Author(s):  
Gerson Tontini ◽  
Júlio Cesar da Silva ◽  
Eliane Fátima Strapazzon Beduschi ◽  
Elis Regina Mulinari Zanin ◽  
Margarete de Fátima Marcon

Purpose – The purpose of this paper is to consider the nonlinear impact of online retail stores’ quality dimensions on general customer satisfaction and loyalty. Design/methodology/approach – Using a quantitative approach, 429 online users answered a closed questionnaire regarding their present satisfaction with 26 service attributes, their general satisfaction and loyalty. Using factorial analysis with Varimax rotation, five service-quality dimensions are studied: service accessibility/speed, fault recovery, buying reliability, service and site flexibility and site interaction/feedback. Penalty and reward contrast analysis identifies the Kano model classification of the service-quality dimensions, and the nonlinear impact of these dimensions, and customer satisfaction, on customer loyalty. Findings – The results show that there is a nonlinearity between quality dimensions, customer satisfaction and loyalty. The dimension “service accessibility/speed” has a one-dimensional impact on customer satisfaction, but with higher reward impact than penalty impact. “Fault recovery” is a “must-be”, “buying reliability” and “service flexibility” are “attractive” and “site interaction/feedback” is one-dimensional. Besides, the dimension “service accessibility/speed” has also a direct impact on loyalty if achieving above-average performance, thus reinforcing general customer satisfaction. Originality/value – Few previous papers explore this nonlinearity in online retail services. So, future studies should lead to a theoretical and practical understanding of managing these services. Understanding this nonlinearity may help companies to better identify what improve or offer to customers.


2017 ◽  
Vol 35 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Rishi Kant ◽  
Deepak Jaiswal

Purpose In the present competitive scenario in the Indian banking industry, service quality has become one of the most important facets of interest to academic researchers. The purpose of this paper is to determine the dimensions of perceived service quality and investigate their impact on customer satisfaction in the Indian banking context, with special reference to selected public sector banks in India. Design/methodology/approach On the basis of the empirical study, the authors validate a measurement model using structural equation modeling for investigating the impact of perceived service quality dimensions on customer satisfaction. The study sample consists of 480 respondents in the National Capital Region (NCR) of India; the data were collected through a structured questionnaire utilizing a seven-point Likert scale while implementing a purposive sampling technique. Findings The perceived service quality dimensions identified were tangibility, reliability, assurance, responsiveness, empathy, and image. The empirical findings revealed that “responsiveness” was found to be the most significant predictor of customer satisfaction. On the other hand, “image” (corporate image) has a positive but the least significant relationship with customer satisfaction followed by all other constructs. The exception is “reliability,” which is insignificantly related to customer satisfaction in Indian public sector banks. Research limitations/implications The study cannot be generalized in the context of Indian banking sectors, as it only focused on the public sector. The findings of this study suggest that the six dimensions of perceived service quality model are a suitable instrument for evaluating bank service quality for public banks in India. Therefore, bank managers can use this model to assess the bank service quality in the context of Indian public sector banks. Originality/value There is dearth of research focusing on corporate image as a dimension of perceived service quality and its effect on customer satisfaction in the Indian banking context. Furthermore, similar studies were rarely found in the Indian context, especially within the public banking sector. Hence, this paper attempts to accomplish the research gap by empirically testing the satisfaction level of a large sample of the population in NCR toward six dimensions of perceived service quality rendered by selected public sector banks in India.


2014 ◽  
Vol 26 (4) ◽  
pp. 540-565 ◽  
Author(s):  
Hung-Che Wu

Purpose – The purpose of this paper is to identify the dimensions of service quality and examining the interrelationships among behavioral intentions, customer satisfaction, perceived value, corporate image and service quality in the gaming industry. A multi-level and hierarchical model is used as a framework to synthesize the effects of customer satisfaction, perceived value, corporate image and service quality on behavioral intentions of customers in the gaming industry. Design/methodology/approach – The data used in this study were based on a sample of 470 at a newly built casino in Macau. Data were analyzed using exploratory factor analysis and regression analysis. Findings – The findings support using a multi-level model consisting of three primary dimensions and ten sub-dimensions to conceptualize and measure perceived service quality. Perceived service quality significantly influences perceived value and corporate image, respectively. In addition, perceived value and corporate image are main determinants of customer satisfaction. Also, customer satisfaction and corporate image significantly affect behavioral intentions. Originality/value – This is the first study synthesizing behavioral intentions, customer satisfaction, perceived value, corporate image and perceived service quality in a Macau casino setting.


2020 ◽  
Vol 11 (1) ◽  
pp. 33-41
Author(s):  
Fitriah Fauzi ◽  
Purnama Putra

Service quality is the level of excellence expected and control over that excellence is to fulfillcustomer desires. In the service industry such as Islamic banking, service has an important role ingenerating a sense of satisfaction for customers. Customer satisfaction is related to what is expressedby customers about their perceptions and expectations of the services obtained. Customer satisfactioncan also create long-term customer trust that makes customers loyal to the company. This study aimsto analyze the effect of service quality and corporate image on loyalty through customer satisfactionas an intervening variable at Bank BNI Syariah Bekasi Branch. The population used in this studyis Bank BNI Syariah Bekasi Branch. The sample in this study was taken based on the population ofcustomers who save at BNI Syariah at the Bekasi Branch Office as many as 100 respondents. Theanalysis technique in this study is path analysis, which aims to calculate the influence of one or moreindependent variables on other dependent variables. The results showed that the value of servicequality has a positive effect on customer satisfaction. Furthermore, company image has a positiveeffect on customer satisfaction. Furthermore, service quality and company image have a positive effecton customer satisfaction simultaneously. Then customer satisfaction affects customer loyalty.


Author(s):  
Gyan Prakash ◽  
Shefali Srivastava

Purpose The purpose of this paper is to identify the antecedents and outcomes of internal service quality (ISQ) in a health-care environment. The relationships among the heterogeneous health-care environment, coordinated care, perceived organisational support (POS), ISQ, internal customer satisfaction and patient-centred care were explored. Design/methodology/approach Based on a review of the literature, a structural model was developed. A 37-item questionnaire was circulated among service providers in the health-care system, including doctors, nurses and system staff, all over India. The random sampling method was adopted to collect data. A total of 238 valid responses were received. The data were analysed using structural equation modelling. Findings The results show that the heterogeneous environment, coordinated care and POS act as antecedents of ISQ, which drives internal customer satisfaction and patient centricity in health care. Research limitations/implications The paper contributes to the health-care literature by identifying the antecedents and consequences of ISQ and developing a structural relationship among ISQ, the heterogeneous health-care environment, coordinated care, POS, internal customer satisfaction and patient-centred care. Practical implications Hospital administrators may use various constructs of POS, ISQ and coordinated care to measure process and employee performance, which may aid the design of appropriate processes and improve employee selection. The constructs of patient centricity and internal customer satisfaction may be used as benchmarking tools to facilitate the formulation of immediate corrective actions and policies for future courses of action. Social implications This paper highlights how patient centricity may be achieved by focussing on ISQ, coordinated care processes and a facilitative internal environment. This understanding may aid the design of processes that in turn deliver health as a social good in an effective manner. Originality/value This paper extends past research on ISQ by showing that ISQ affects internal customer satisfaction and, in turn, the quality of service delivery in the system. In the health-care context, heterogeneity in patient needs, coordinated care and organisational support play crucial roles in determining ISQ, which in turn influences the level of patient-centred care.


Sign in / Sign up

Export Citation Format

Share Document