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CHAPTER 1
INTRODUCTION
Background of the Study
Customer satisfaction has been a subject of great interest to organizations. The
principal objective of organizations is to maximize profits and to minimize cost. Profit
maximization can be achieved through increase in sales with lesser costs. One of the
factors that can help to increase sales is customer satisfaction, because satisfaction
leads to customer loyalty, recommendation and repeat purchase. s mentioned by
!iew"Phai# $o#e, %&'' that customer satisfaction is a personal feeling of either pleasure
or disappointment resulting from the evaluation of services provided by an organization
to an individual in relation to expectation.
(n the competitive mar#ets, differentiation between organizations in terms of
price, product and service characteristics and the value of the delivery system. !ervice
)uality is a comparison of expectations with performance *+anisah at !alim, %&''-.
business with high service uality will meet customer needs whilst remainingeconomically competitive. (mprove service uality may increase economic
competitiveness. (n every organization and same goes to T/T, one of the main focused
is customer. 0ithout customer, an organization would not have a purpose to exist.
Customer to an organization can be categorized into two categories that are account
customer and new customer. +owever the problem arises shows that there is a poor
service uality to the customer at the organization *1. 2owne, %&''-.
The discussion about the issues revealed what as mentioned by *Caruana, %&&&-
*Taiwo,%&''- and *!ureshchandar, %&&%-. +owever there is a lac# of discussion about
the influence of service uality toward customer satisfaction. Therefore the main
purpose of this study is to identify the influence of service uality towards customer
satisfaction as nature business of T/T is logistic and it depends on customer.
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Customers became very vital in business during the mar#eting era of the '34&s when
companies could produce what they can sell and not just selling what they can produce
as it was during the production era. !ince the beginning of the consumption era in
mar#eting, *business.business"#ey.com- the focus on customers5consumers has
increased more as the consumption era also shifts to post"consumption6 where
organizations are obliged to render more services in addition to what they provide as
offers to their customers. *rmano, %&&3-.
Statement of the Pro!em
!ervice uality is being a vital component for both initial and ongoing
development of customer satisfaction. s a logistic company T/T strives to satisfy its
customers. The priority of T/T services is national or international delivery and to ma#e
sure it arrive same day or next day delivery, 0arehousing or fulfillment. ll document,
parcel and freight are delivered safely through our door"to"door integrated air and road
networ#s. Customer Complaint in T/T are about delivery, non"delivery, loss, damage
and delay of delivery.( www.tnt.com.my – customer feedback )
T/T advises their entire customer to beware of such reuests for advance onmost of the complaint is fraudsters use T/T7s identity on websites and email messages
to mislead (nternet shoppers. The fraudulent communication typically concern a
reuest for advance wire transfer of money to pay for the goods ordered on the internet,
before the goods will be allegedly shipped by T/T.
On"line payments, and that the existence of a consignment number *or trac#ing
number- is not necessarily proof that a consignment is in the custody or control of T/T.
8esearch Objectives
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http://www.tnt.com.my/http://www.tnt.com.my/http://www.tnt.com.my/
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The o"ect#$e% of th#% %tudy !! e to 9"
'. To determine the factors that influence uality service towards customer
satisfaction among customer at T/T :xpress 0orldwide *- ;hd
%. To identify level of customer satisfaction among customer in T/T :xpress
0orldwide *- ;hd
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(#m#tat#on% of the Study
The limitation of the study will be only in house and !hah lam customer only.
s the areas of study are very broad nature, not all can be access the literature
concerning customer satisfaction and service uality as it been very voluminous. Thus
its a limited aspect within literature, thereby around the relationship between customer
satisfaction and service uality dimension of the !:8?)@$ model. The !:8?)@$
model is a common diagnostic tool used to measure customer service and perceived
satisfaction. :ven though the research concerns about the employees and customers,
the focus are more on customer as it is very interesting to find out customer perspective
and customers who consume services from T/T :xpress 0orldwide *- ;hd.
Def#n#t#on of Term%
Cu%tomer Ser$#ce%
Customer service can be defined as providing information or it can be as complex as
trac#ing customer habits and anticipating their needs *Aeithaml, Parasuraman B ;erry,
'33&-.
Ser$#ce 'ua!#ty
!ervice uality can be described as a rationale of differences between expectation and
competence along the important uality dimensions *Aeithaml, Parasuraman B ;erry,
'33&-.
Cu%tomer Sat#%fact#on
Customer satisfaction is a personal feeling of either pleasure or disappointment
resulting from the evaluation of services provided by an organization to an individual in
relation to expectations *$ehtinen B 1ronroos , '33-.
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CHAPTER )
(#terature Re$#e&
The aim of this section is to present literatures relevant to this research and to
provide a theoretical framewor#. (t begins with a review of definitions and some
measurements of customer satisfaction and service uality, and then follows by the
relationship between customer satisfaction and service uality, which leads to the
conceptual frame wor# of the study and identification of (ndependent ?ariable *(?- and
2ependant ?ariable *2?-.
Def#n#t#on of Ser$#ce 'ua!#ty *I+,
0inder and >udd *'33D-, defines uality as the ongoing process of building and
sustaining relationship by assessing, anticipating and fulfilling stated and implied needs.
)uality is the totality of features and characteristics of a product5 services that bears on
its ability to satisfy stated or implied needs O#ella, *%&&E-. ;alunywa *'334-, stated
uality as an attribute of a product 5 service, that is a grade of a particular product or
service thus tal# of poor and good uality. These two definitions emphasize uality
being inherent in a product 5 service. !ervice is any activity that one party can offer to
another that is essentially intangible and does not result into ownership Folter, *'333-.
Gour main features characterized service namely6 intangibility, perish ability,
heterogeneity and inseparability unli#e products Payne *'33&-. ccording to +eizer and
8ender *'333-, services are those economic activities that typically produce an
intangible product as education, government, insurance, entertainment, transportation,
real estate and medical repair.
Previous studies about service uality, in year %&'
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service firm and its personnel. s conclude by the author on that this articles reviews
and merges the latest insights from diverse attachment theories and concept in diverse
disciplines. lso presents attachment styles as a new consumer segmenting criteria.
(n year %&'%, Fernbach and !.schutte find that the impact of service provider
emotional intelligence on customer satisfaction. The researchers finds that higher
emotional intelligence displayed by the service provider lead to greater reported
satisfaction with the service transaction. ;y author point of view and conclusion as the
result reveals that customer are more satisfied when they deal with service providers
with high emotional intelligence.
(n year %&'', :.!wan and ;owers, found out that a research on dissatisfaction or
uality typically involves starting with a theoretical model. Grom the finding it stated the
current service theory and methods do not focus sharply on user provider interaction
and process. 8esearch and theory focuses on the individual not on people doing things
together. s a conclusion the study concludes that resolving the paradox of service
problem and satisfaction when the tour participants were satisfied even in the face of
service failure is explained.
(n year %&'&, Fang and Cho, uthor stated that unsatisfied customer complained
about product or experience and show their unfavorable attitudes that negatively will
influence on business performance.
)uality service is defined as a level of service, compared to that of competitors
that is high enough in the eyes of a customer, that enables one to gain an unnaturally
large mar#et share and enjoy a higher profit margin than competitors, *Farl, %&&E-.
ccording to +awcroft *'33'-, anticipating and satisfying the needs and expectations of
a customer.
:very company owner wants to get loyal customers that add to repeating
purchases and of cause increasing their maximum revenue. ;ut to get there they need
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to #now about the 4 !ervice )uality 2imensions. any actually thin# that service is just
a little part of the mar#eting mix, but it is actually a very important part of both the E and
H PIs.
Tang##!#ty
The tangible !ervice )uality 2imension refers to the appearance of the physical
surroundings and facilities, euipment, personnel and the way of communication. (n
other words, the tangible dimension is about creating first hand impressions. company
should want all their customers to get a uniue positive and never forgetting first hand
impression, this would ma#e them more li#ely to return in the future.
Em-athy
The empathy !ervice )uality 2imension refers to how the company cares and
gives individualized attention to their customers, to ma#e the customers feeling extra
valued and special. The fifth dimension are actually combining the second, third and
fourth dimension to a higher level, even though the really cannot be compared as
individuals. (f the customers feel they get individualized and uality attention there is a
very big chance that they will return to the company and do business there again.
A%%urance
The assurance !ervice )uality 2imension refers to the companyIs employees.
re the employees s#illed wor#ers, which are able to gain the trust and confidence of
the customers= (f the customers are not comfortable with the employees, there are a
rather large chance that the customers will not return to do further business with the
company.
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Re!#a#!#ty
The reliability !ervice )uality 2imension refers to how the company are
performing and completing their promised service, uality and accuracy within the given
set reuirements between the company and the customer. 8eliability is just as important
as a goof first hand impression, because every customer want to #now if their supplier is
reliable and fulfill the set reuirements with satisfaction.
Re%-on%#$ene%%
The responsiveness !ervice )uality 2imension refers to the willingness of the
company to help its customers in providing them with a good, uality and fast service.
This is also a very important dimension, because every customer feels more valued if
they get the best possible uality in the service.
Def#n#t#on of Cu%tomer Sat#%fact#on *D+,
+ere is general agreement that the aforementioned constructs are important
aspects of service uality, but many scholars have been s#eptical about whether these
dimensions are applicable when evaluating service uality in other service industries*Ginn B $amb, '33'6 Cronin B Taylor, '33%-. Gor example, Cronin B Taylor *'33%-
argued that the evaluation of service uality based on the expectation"performance gap
derived from Parasuraman et al *'34, '3- is insufficient because much of the
empirical research supported performance"based measures of service uality. This has
more explanatory power than measures that are based on the gap between expectation
and performance *e.g. ;aba#us B ;oller, '33%6 ;aba#us B an gold, '33%6 Churchill B
!urprenant '3%-. (n addition, Fang B >ames *%&&E- argued that !:8?)@$ focuses
more on the service delivery process than on other attributes of service, such as
service"encounter outcomes *i.e. technical dimensions-.
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Re!at#on%h#- et&een Ser$#ce 'ua!#ty and Cu%tomer Sat#%fact#on
!ince customer satisfaction has been considered to be based on the customer7s
experience on a particular service encounter, *Cronin B Taylor, '33%- it is in line with the
fact that service uality is a determinant of customer satisfaction, because service
uality comes from outcome of the services from service providers in organizations.
nother author stated in his theory that Jdefinitions of consumer satisfaction relate to a
specific transaction *the difference between predicted service and perceived service- in
contrast with Kattitudes7, which are more enduring and less situational"oriented. (n
relating customer satisfaction and service uality, researchers have been more precise
about the meaning and measurements of satisfaction and service uality. !atisfaction
and service uality have certain things in common, but satisfaction generally is abroader concept, whereas service uality focuses specifically on dimensions of service.
lthough it is stated that other factors such as price and product uality can affect
customer satisfaction, perceived service uality is a component of customer
satisfaction. This theory complies with the idea of 0ilson et al. *%&&- and has been
confirmed by the definition of customer satisfaction presented by other researchers.
Conce-tua! .rame&ork
I+
D+
Customer !atisfaction
.#gure )/1 Conceptual Gramewor# on the Customer !ervices relationship
between Customer !atisfaction among employees at 0arehouse 2epartment, T/T
:xpress 0orld 0ide *-, ;u#it >elutong and customer that using logistic services.
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Ser$#ce 0ua!#ty
• Tangibility
• :mpathy
• ssurance
• 8eliability
• 8esponsiveness.
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CHAPTER
2ETHODO(O34
This chapter covers the method that was used in the study. (t includes research
design, sampling frame, population, sampling techniue, sampling size, unit of analysis,
data collection, instruments and validity instruments.
Re%earch De%#gn
The study used both descriptive and uantitative research designs. 2escriptive
method was used to describe the characteristics of the research variables. )uantitative
method was used to collect data from a given number of respondents. To a lesser
extent ualitative method was also used in order to get opinions from different
respondents. The study was also cross"sectional in nature because the researcher
gathered data once over a period of days in order to answer the research uestions.
Sam-!#ng .rame
Data collected will be related to certain concepts and it will search patterns in data
relating customer satisfaction and serice proided! "n this research# the customers who are
directl$ using a shipping serices at %arehouse Department# &'& ()press %orld%ide *+, -dn
.hd# .u/it elutong! or e)ample &he list of customer who collected itself their shipping at
%arehouse Department# .u/it elutong ma$be the sampling frame for a sure$ of whole
customer that using shipping serices form other state!
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Po-u!at#on
The population is set of customers at 0arehouse 2epartment, T/T :xpress
0orld0ide *- !dn ;hd to which findings are to be generalized. This method is chosen
because we want to ensure that the particular categories in the population are
represented as the same proportion as in the population and the sample population was
include6 elutong.
Sam-!e S#5e
sample of '4 employees and HE customers was considered out '&& studies.
Un#t of Ana!y%#%
@nit of analysis in this study is the customer and employees in T/T :xpress
0orld0ide *- !dn ;hd, ;u#it >elutong. The employee will be responsible to assist
customer for their delivery or collected document, parcel or freight. This will be
identifying the relationship between service uality and customer satisfaction.
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Data Co!!ect#on Procedure%
2ata was collected from both primary and secondary. The main source of
primary data was through uestionnaire. !econdary data was obtained from existing
literature that is from textboo#s, journals, brochures, and (nternet and T/T website.
In%trument
)uestionnaires are based on !:8?)@$ model created by Parasuraman *'34-
*and his fellow researcher, which cover reliability, tangibles, responsiveness, courtesy
and accessibility with modification to their wording to suit this research. Give li#e type
response categories will be used9 !trongly 2isagree, 2isagree, /eutral, gree, and
!trongly gree. These categories will be assigned values from ' to 4, where ' will be
the least satisfied towards the service provided and 4 is the most satisfied toward the
service provided.
+a!#d#ty In%trument
The validity instrument for this uestionnaire will be chec# by the expertise of the
research, which will be the researcher supervisor. 2espite that, the uestionnaire
should be validity and reliability before it been distributed. $ast but not least, the
researcher will have to discuss and meeting for the approval and guidelines.
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P!an for Data Ana!y%#%
Re%earchO"ect#$e%
Conce-t%6Con%truct
2ea%urementSca!e Stat#%t#c%
To determine thefactors thatinfluence ualityservices towardscustomer satisfaction amongcustomer in T/T:xpress 0orldwide*- ;hd
2epartment servicerepresentative withthe #nowledgeableand professional.
)'.0hat are the factor influence ualityservices towardscustomer satisfaction amongcustomer in T/T:xpress 0orldwide*- ;hd.
/ominal ean,!tandard2eviation
To identify level of customer satisfaction amongcustomer in T/T:xpress 0orldwide*- ;hd
The level of satisfaction tocustomer with theservice provide tothem are providingto them.
)'. 0hat is the levelof customer satisfactionamong customer in T/T :xpress0orldwide *-;hd.
/ominal ean,!tandard2eviation
To examine therelationship
between ualityservices andcustomer satisfaction in T/T:xpress 0orldwide*- ;hd
!uggestion andrecommendation
based on our service for anyimprovements infuture.
)'. 0hat is therelationship
between ualityservices andcustomer satisfaction inT/T :xpress0orldwide *-;hd.
/ominal ean,!tandard
2eviation
Re%earchO"ect#$e%
Conce-t%6Con%truct
2ea%urement Sca!e Stat#%t#c%
$evel of satisfaction
$evel ' !trongly 2isagree
$evel % 2isagree
$evel < /eutral
$evel E gree
$evel 4 !trongly gree
14Ta!e /1 Data Analysis
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CHAPTER 7
.INDIN3S O. STUD4
Sur$ey Return Date
2ata was collected from both primary and secondary. The main source of
primary data was through uestionnaire. !urvey return day we provided to the
respondent is between a wee# and started from 'st 2ecember until Hth 2ecember %&'E.
Demogra-h#c Prof#!e Of Re%-ondent%
Participants of this study were 4& female and 4& male consumers. ean age was
%3.D. '4 of them is an employees and 4 of them is customer of T/T itself. nd the
percent is divided by 4
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The aims of this study also we see as twofold which is first using !:8?)@$
model, we examined significant differences in the five service uality dimensions which
is * responsiveness , assurance, empathy, tangibility5physical aspects and reliability - by
evaluating customer expectation and their actual perceptions of the courier service firm.
!econdly, we examined the impact of the five service uality dimension on customer
perceptions of service delivered by the firm * see Gig. '-.
.#g 1 8 Re%earch .rame&ork
The five hypotheses are as follows :
+' 9 8esponsiveness will have a significant impact on customer satisfaction
+% 9 ssurance will have a significant impact on customer satisfaction
+< 9 :mpathy will have a significant impact on customer satisfaction
+E 9 Tangibility will have a significant impact on customer satisfaction
+4 9 8eliability will have a significant impact on customer satisfaction
16
S e r v i c e
u a l i t y
!esponsiveness
Assurance
"mpathy
Tan#ibility
!eliability
!
Cu%tomer
Sat#%fact#on
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$0 There is a si#nificant relationship between element tan#ibility (&') towards customer
satisfaction (D') elements as customer satisfaction as value *.*+ (*.*0*1) and
there is a correlation between &' and D' .
$% There is a si#nificant relationship between element reliability (&') towards customer
satisfaction (D') elements as customer satisfaction as value *.*+ (*.*01%) and
there is a correlation between &' and D' .
Validity 9 ;ecause the study was a descriptive study6 ( made used of the significant level
during the testing of the hypotheses. The research significant level for the tests made
was &.&4, i.e. 34L confidence interval that ( used to decide on rejecting or acceptingthe null hypothesis, although more li#ely to ma#e type ' error *a ris# of ' out of %&-, and
low chances to ma#e type two error *when ris# is ' out of '&- *;ryman B ;ell, %&&
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CHAPTER 9
CONC(USION AND RECO22ENDATION
CONC(USION
The objective of this study was to examine the relationship between customer
satisfaction and service uality with respect to service uality to customer. The research
uestions were J0hat are the factors that influence uality services towards customer
satisfaction among customers in T/T :xpress 0orldwide *- ;hd=6 J0hat is the level
of customer satisfaction among customers in T/T :xpress 0orldwide *- ;hd= J0hat
is the relationship between services uality and customer satisfaction in T/T :xpress
0orldwide *- ;hd= The uniue design of this research gave strange but interestingresults because of the grouped and ungrouped presentation of the data. The results
appeared to be different in the two ways of analysis. Thus, whether the research
uestions were answered or the objective was met depend on the out comes of the
study. Grom the summary of the results it could be seen that the research uestions
where answered either distinctively by the individual service sectors or jointly in a group
analysis of the common variables.
Grom the result section6 the individual results showed that the research uestions
were answered by each of the organizations distinctively. T/T :xpress 0orldwide *-
;hd used four of the service uality dimensions *reliability, empathy, responsiveness,
and assurance- in order to answer the research uestions in order to meet the
objective.
0ith regards to T/T :xpress6 reliability, responsiveness and assurance had
significant relationships with both customer satisfaction and service uality while
empathy was significantly related to service uality and not customer satisfaction. ;ut
customer satisfaction and service uality had no significant relationship. This could
mean that service uality dimensions are independent factors to the relationship
between customer satisfaction and service uality for T/T :xpress, empathy and
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tangible had significant relationship with customer satisfaction and service uality while
responsiveness was significantly related to customer satisfaction and not to service
uality. 8eliability had no significant relationship with both customer satisfaction and
service uality6 but there was a significant relationship between customer satisfaction
and service uality. This could mean that the relationship between customer satisfaction
and service uality could be depending on the service provided.
The research was able to expose the relationship between service uality and
customer satisfaction because there was a significant relationship between service
uality and customer satisfaction, this could mean that, relationship between customer
satisfaction and service uality might be depending on service uality dimensions.
Thus, there could be relationships among service uality dimensions, customer
satisfaction and service uality, but customers of service sector7s might be satisfied
because of reasons other than service uality
Recommendat#on
Our recommendation toward the relationship between service )uality and
Customer !atisfaction is to provide the highest level of Customer service and uality
goods are imperative to compete for business against companies promoting similar products or services.
Cu%tomer Ser$#ce
/othing is as welcoming as being treated with dignity and the utmost respect by
a friendly and attentive customer service representative.
Ser$#ce 'ua!#ty
)uality includes ensuring that services are excellent and wor#ing exactly as
expected and claimed to do.
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Im-ro$ement
Companies can use several methods to promote uality customer service and
goods. These include ensuring that employees are thoroughly #nowledgeable of the
product or service and aware of the correct body language to use to convey the
company message.
Sugge%t#on
The topic was a good one but because of its limitations and5or outcome, there is
a need for further research. ;ecause the study did not consider employees who provide
the services to customers6 further research could be to study relationship among
customer satisfaction, service uality and job satisfaction with the use of all the five
!:8?)@$ dimensions at once, to see if satisfaction level of employees is related to
their services and5or customer satisfaction. nother further study could be to test among
the dimensions with the use of another statistical method to see which of hem will be
more important to service uality and5or customer satisfaction. lso future study could
be to test these same variables in a manufacturing sector.
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RE.ERENCES
Parasuraman, , Aeithamal, ?. and ;erry $. $. *'34-, A conceptual model of service
2uality and implications for future research.
Parasuraman. , Aeithamal, ?. and ;erry $.$ *'333 )3 erceived service 2uality as acustomer based performance measure.
+owcroft *'33'-, customer satisfaction in !etail 4ankin# Service industries 5ournal.+utchins,, 2 *'33&- in pursuit of 2uality print and publishers in 6ondon.
!ureshchandar 1.!., 8ajendran C, B nantharaman 8./. *%&&%- the relationshipbetween service 2uality and customer satisfaction.
+allowell. *'33D ). The relationship of customer satisfaction3 customer loyalty and profitability .
$ehtinen, @. and $ehtinen, >.8. 7Service uality: A Study of uality Dimensions.7$elsinki: Service anagement (nstitute, '33%.
1ilbert, Churchill, >r. and $acobucci, 2. *%&&4- 8arketin# research3 !esearch:etholo#ical 9oundations.
Fuo. MG *%&&
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APPENDI:
A--end#; 18 !ervice )uality rating and !ample characteristics for T/T
:xpress 0orldwide *- ;hd
Sam-!e Character#%t#cSam-!e S#5e of 1
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A--end#; )8 !urvey (nstruments
ppendix