samzodhana “journal of management research” customer satisfaction... · samzodhana –...

SAMZODHANA – “Journal of Management Research”

ISSN 2347 - 4270

Vol 6 Issue 1, April 2016

An International, Double-Blind Peer-Reviewed, Open-Access Journal

www.eecmbajournal.in

59

A STUDY ON CUSTOMER SATISFACTION USING SERVQUAL MODEL AT

APOLLO HOSPITALS, CHENNAI

Dr. K. Rajalakshmi,

Associate Professor, PRIST School of Business, PRIST University,

Thanjavur, Tamilnadu.

Email: [email protected]

Dr. S. Chandra Mohan,

Professor, Alagappa Institute of Management Studies,

Karaikudi, Tamilnadu.

Dr. S. Dhinesh Babu

Assistant Professor, MBA Department, Government College,

Paramakudi, Tamilnadu.

Abstract

Services are transfiguring the whole world. Service is an activity or benefit that one party offers

to another that is essentially intangible and does not result in the ownership of anything. Quality of

service is important both to the customer and to the service firm. Service organizations strive to

maintain a high quality of service in order to gain competitive advantage. Nowadays, the health care

industry is fast growing because of individuals rising incomes and hygiene. People are willing to pay

huge amount of their income to avail health care facilities. The health care sector is gaining more

popularity for its excellent features like sophisticated equipment’s accurate diagnostic, new treatment

methodology and providing security to patients. The medical care services focuses on distributing the

service to its customers in a proper manner. This article deals with analyzing the physical facilities

which are meeting the expectation of customers at Apollo Hospital Chennai. This study aims at

ascertaining the dimensions of SERVQUAL model given by Parasuraman, Zeithamal & Berry (1985)

which are the significant elements of service quality. This model aims at indentifying customers driven

standards and the reason for service quality gap and giving new techniques to improve the existing

service quality standards.

Keywords: Service quality, service standards, service gap, SERVQUAL model, Customer satisfaction

mailto:[email protected]


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Introduction

Service quality has been defined by various experts in various ways as, ‘Service quality is the

difference between customers’ expectations for service performance prior to the service encounter and

their perceptions of the service received.

From the view point of the service providers, quality includes specification in the

manufacturer’s process as well as the output. From the view point of the customers, quality of service is

high only when the service rendered meet their expectations. Service quality is a critical element of

customer’s perception. In the case of pure service based organization, service quality will be the

dominant element in customer’s evaluation of the service providers.

Quality is the term which is must need for the success of every organization which has to be

assured by the company to its customers. The main reason for choosing service quality at Apollo

hospital, Chennai is to indentify service quality level and to find customer satisfaction regarding the

service provided by Apollo Hospital.

It has become essential for the service firms in general and in particular to identify what the

customer’s requirement are and how those customer requirements can be met effectively. Superior

service quality enables a firm to differentiate itself from its competition, gain a sustainable competitive

advantage, and enhance efficiency. The benefits of service quality include increased customer

satisfaction, improved customer retention, Positive word of mouth, reduced staff turnover, decreased

operating costs, enlarged market share, increased profitability, and improved financial performance.

The construct of service quality has therefore been a subject of great interest to service marketing

researchers.

The medical industry is an aggregation of sectors, within the economic system that provides

goods and service to treat patients with curative, preventive, rehabilitative, and palliative care. The

modern health care industry is divided into many sectors and depends on individual and population.

The medical industry is one of the world’s largest and fastest- growing industries. Consuming over 10

percentage of gross domestic product (GDP) of most developed nations, health care can form an

enormous part of a country’s economy.


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Review of Literature

Parasuraman et al (1985) have suggested that face-to face interactions, developing customers

trust through long- term strategy, understanding customer habits to consume, pre- testing new

procedures and equipments, teaching consumers regarding use of service innovation would help in

closing the standards gap between customer expectation and customer perception.

Gronross (1987) has reported that functional quality is a more important dimension of perceived

service than technical quality. Essence of service quality lies in improving the functional quality of the

firm’s service by managing the buyer-seller interactions as compared to traditional marketing activities.

He emphasized the need for more research on consumer’s view of service quality.

Lewis (1987) has examined hotel service quality in relation to the service quality model

suggested by parasuraman. These findings could have considerable impact for hotel service marketers.

Parasuraman et al (1988) in their SERVQUAL model, identified five dimensions Viz.

responsiveness ,reliability, assurance, tangibles and empathy on the basis of which customers ‘

expectation and perception are measured.

Denton (1990) has found that the improvement of service quality – managerial, innovation,

setting of standards and performance measuring is important.

Shankar (1990) Emphasized that sales promotion in hotel marketing does not consist merely of

a series of schemes defined in terms of time but also certain schemes that are ongoing in nature.

Rohini and Mahadevappa, (2006) SERVQUAL is a standardized and reliable instrument that

identifies five different dimensions of service quality and validates those dimensions in different

service situation.

Research Methodology

The study was conducted in Chennai City. The survey covered both inpatient and outpatient.

The respondents were asked to give their opinion and their satisfaction about the augmented services

rendered by the hospitals. A specifically designed questionnaire was used as a tool. The analysis was

conducted through the statistical package SPSS version 16.0 towards various valued added services

rendered by the hospitals like responsiveness, assurance, tangibility, empathy& reliability. Simple

random sampling method is used. The researchers have taken 120 samples. Descriptive research was


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used in this study. Secondary sources of data were collected through magazines, journals and website,

published statistical resources, libraries etc. To ensure validity, a content validity index was computed

and items on the questionnaire were purified; a CVI of 0.75 was got, and the pilot test was undertaken

with 30 respondents. For reliability, internal consistency was computed by using Cronbach’s alpha,

with the score of 0.832 and thus the item was considered appropriate.

Objectives

1. To access the expectations of the customer regarding service quality.

2. To identify the service quality gap at Apollo med hospital.

3. To find the satisfaction level of the customer about the quality of service provided in the

hospital.

4. To determine the service quality standards.

Tools Used For Analysis

1. Percentage Method

2. Chi-square

3. Service gap analysis and

4 Karl Pearson’s correlation method

Purpose of the study

To study the customer satisfaction and SERVQUAL model about augmented service

Analysis using Chi-Square

Null Hypothesis:

Ho: There is no significant association between physical facility and customer satisfaction.

Ha: There is significant association between physical facility and customer satisfaction.


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Table 1: Showing Chi- square for Physical Facility and Customer Satisfaction

Attributes Customer Satisfaction

Physical

facilities

Excellent Very

Good

Good Average Poor chi-square

value

Degree of

freedom

Table Value

Reception &

Registration

counter

31 21 25 38 5

189.056

24

36.415

Medical

equipments

46 35 39 0 0

Waiting room 28 34 22 33 3

Radiography

rooms

74 18 28 0 0

Observation

room facility

63 33 17 7 0

Stores 27 31 33 25 4

Blood bank 70 23 19 8 0

Source: Primary source

From the Chi-square it is found that the table value of chi- square for 24 degree of freedom at

5% level of significant is 36.415. The calculated value of chi-square is 189.056 which are much higher

than the value and hence the result of the finding does not support the hypothesis.


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Table 2: Service Gap Analysis between Customer Expectation and Perception

Service Quality

Dimension

Questions

Perceptions

Expectations

Quality gap

Tangibility

Neat and clean building

Easy to find where to go

Updated medical

equipment’s

Meeting needs in waiting hall

TOTAL

3.40

2.97

3.98

3.40

13.75

3.68

3.12

3.90

3.55

14.25

-0.28

-0.15

0.08

-0.15

-0.5

Reliability

Proper schedule with patients

Doctors keeping up their

appointments

Giving goods advice &

treatments

Listens to you

TOTAL

3.62

3.68

3.99

3.36

14.65

3.80

3.74

3.66

3.20

14.4

-0.18

-0.06

0.33

0.16

0.25

Assurance

Live up to your expectation

Doctors skilled in their

specialization

Assurance to solve your

problem

Rely on medicines prescribed

TOTAL

3.82

3.98

3.76

3.98

15.54

3.80

3.95

3.64

3.86

15.25

0.02

0.03

0.12

0.12

0.29


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From the gap analysis it is found that the gaps exist between the basis of difference between

customer expectation and perception of hospitals and satisfaction level of the customers. Gap exist for

tangibility (gap=-0.5) empathy (gap=-0.22) communication (gap=-0.2)

Analysis Using Karl Person’s Correlation Method between Service Quality and Customer

Satisfaction

Null Hypothesis (H0): There is no relationship between service quality and customer satisfaction.

Alternate Hypothesis (Ha): There is significant relationship between service quality and customer

satisfaction.

Empathy

Empathy while dealing with

problems

Goes through the previous

records

Remembers you & your

problem

Treating you in friendly

manner

TOTAL

3.67

3.92

3.84

3.51

14.94

3.74

3.89

3.86

3.67

15.16

-0.07

0.03

-0.02

-0.16

-0.22

Communication

Giving instructions &

understanding your problems

Capable of answering your

queries

Apologizing for

inconvenience Prompt return

on calls

TOTAL

3.70

3.63

3.74

3.76

14.93

3.80

3.65

3.80

3.78

15.03

-0.1

-0.02

-0.06

-0.02

-0.2


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Table 3: Showing Correlation Analysis between Service Quality and Customer Satisfaction

S.NO X X-Mx Y Y-My (X-Mx)2 (Y-My)

2 (X-Mx)(Y-My)

1 60 -2.275 4 0.275 5.176 0.076 -0.626

2 59 -3.275 2 -1.725 10.726 2.976 5.649

3 62 -0.275 4 0.275 0.076 0.076 -0.076

4 62 -0.275 4 0.275 0.076 0.076 -0.076

5 69 6.725 3 -0.725 45.226 0.526 -4.876

6 63 0.725 4 0.275 0.526 0.076 0.199

7 61 -1.275 3 -0.725 1.626 0.526 0.924

8 57 -5.275 3 -1.725 27.826 2.976 9.099

9 63 0.725 5 1.275 0.526 1.626 0.924

10 62 -0.275 4 0.275 0.076 0.076 -0.076

11 60 -2.275 1 -2.725 5.176 7.426 6.199

12 57 -5.275 4 0.275 27.826 0.076 -1.451

13 62 -0.275 3 -0.725 0.076 0.526 0.199

14 57 -5.275 4 0.275 27.826 0.076 -1.451

15 57 -5.275 4 0.275 27.826 0.076 -1.451

16 61 -1.275 2 -1.725 1.626 2.976 2.199

17 63 0.725 1 -2.725 0.526 7.426 -1.967

18 62 0.275 4 0.275 0.076 0.076 -0.076

19 56 -6.275 4 0.275 39.376 0.076 -1.726

20 63 0.725 4 0.275 0.526 0.076 0.199

21 65 2.725 5 1.275 7.426 1.626 3.474

22 66 3.725 4 0.275 13.876 0.076 1.024

23 68 5.725 3 -0.725 32.776 0.526 -4.151

24 58 -4.275 4 0.275 18.276 0.076 -1.176

25 61 -1.275 4 0.275 1.626 0.076 -0.351


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26 68 5.725 3 -0.725 32.776 0.526 -4.151

27 59 -3.275 4 0.275 10.726 0.076 -0.091

28 59 -3.275 3 -0.725 10.726 0.526 2.374

29 63 0.725 5 1.275 0.526 0.076 0.924

30 65 2.725 4 0.275 7.426 0.076 0.749

31 55 -7.275 5 1.275 52.926 1.626 -9.276

32 68 5.725 5 1.275 32.776 1.626 7.299

33 59 -3.275 3 -0.725 10.726 0.526 2.374

34 69 6.725 4 0.275 45.226 0.076 1.849

35 67 4..725 4 0.275 22.326 0.076 1.299

36 60 -2.275 5 1.275 5.176 1.626 -2.901

37 63 0.725 4 0.275 0.526 0.076 0.199

38 57 -5.275 3 -0.725 27.826 0.526 3.824

39 58 -4.275 4 0.275 18.276 0.076 -1.176

40 68 5.725 4 0.275 32.776 0.076 1.574

41 53 -9.275 5 1.275 86.026 1.626 -11.826

42 63 0.725 3 -0.725 0.526 0.526 -0.526

43 65 2.725 4 0.275 7.426 0.076 0.749

44 61 -1.275 4 0.275 1.626 0.076 -0.351

45 61 -1.275 2 -1.725 1.626 2.976 2.199

46 66 3.725 4 0.275 13.876 0.076 1.024

47 63 0.725 3 -0.725 0.526 0.526 -0.526

48 68 5.725 4 0.275 32.776 0.076 1.574

49 61 -1.725 4 0.275 1.626 0.076 -0.351

50 68 5.725 5 1.275 32.776 1.626 7.299

51 67 4.725 4 0.275 22.326 0.076 1.299

52 68 5.725 4 0.275 32.776 0.076 1.574

53 62 -0.275 4 0.275 0.076 0.076 -0.076


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54 66 3.725 5 1.275 13.876 1.626 4.749

55 66 3.725 4 0.275 13.876 0.076 1.024

56 56 -6.275 4 0.275 39.376 0.076 -1.726

57 60 -2.275 3 -0.725 5.176 0.526 1.649

58 68 5.725 4 0.275 32.776 0.076 1.574

59 68 5.725 5 1.275 32.776 1.626 7.299

60 63 0.725 5 1.275 0.526 1.626 0.924

61 68 5.725 4 0.275 32.776 0.076 1.574

62 61 -1.275 4 0.275 1.626 0.076 -0.351

63 58 -4.275 4 0.275 18.276 0.076 -1.176

64 60 -2.275 4 0.275 5.176 0.076 -0.626

65 68 5.725 4 0.275 32.776 0.076 1.574

66 69 6.725 4 0.275 45.226 0.076 1.849

67 65 2.725 5 1.275 7.426 1.626 3.474

68 67 4.725 4 0.275 22.326 0.076 1.299

69 59 -3.275 5 1.275 10.726 1.626 -4.176

70 70 7.725 4 0.275 59.676 0.076 2.124

71 61 -1.275 5 1.275 1.626 1.626 -1.626

72 58 -4.275 5 1.275 18.276 1.626 -5.451

73 60 -2.275 3 -0.725 5.176 0.526 1.649

74 68 5.725 4 0.275 32.776 0.076 1.574

75 69 6.725 4 0.275 45.226 0.076 1.849

76 65 2.725 5 1.275 7.426 1.626 3.474

77 67 4.725 4 0.275 22.326 0.076 1.299

78 59 -3.275 3 -0.725 10.726 0.526 2.374

79 70 7.725 4 0.275 59.676 0.076 2.124

80 58 -4.275 4 0.275 18.276 0.076 -1.176

81 65 2.725 5 1.275 7.426 1.626 3.474


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82 55 -7.725 2 -1.725 52.926 2.976 12.549

83 68 5.725 4 0.275 32.776 0.076 1.574

84 59 -3.725 3 -0.725 10.726 0.526 2.374

85 69 6.725 2 -1.725 45.226 2.976 -11.601

86 67 4.725 5 1.275 22.326 1.626 6.024

87 60 -2.725 5 1.275 5.176 1.626 -2.901

88 63 0.725 4 0.275 0.526 0.076 0.199

89 57 -5.725 3 -0.725 27.826 0.526 3.824

90 58 -4.275 2 -1.725 18.276 2.976 7.374

91 57 -5.275 2 -1.725 27.826 2.976 9.099

92 63 0.725 1 -2.725 0.526 7.426 -1.976

93 62 -0.275 3 -0.725 0.076 0.526 0.199

94 60 -2.275 3 -0.725 5.176 0.526 1.649

95 57 -5.275 3 -0.725 27.826 0.526 3.824

96 58 -4.275 5 1.275 18.276 1.626 -5.451

97 68 5.725 2 -1.725 32.776 2.976 -9.876

98 53 -9.275 1 -2.725 86.026 7.426 25.274

99 63 0.725 4 0.275 0.526 0.076 0.199

100 65 2.725 4 0.275 7.426 0.076 0.749

101 61 -1.275 3 -0.725 1.626 0.526 0.924

102 61 -1.275 2 -1.725 1.626 2.976 2.199

103 66 3.725 5 1.275 13.876 1.626 4.749

104 63 0.725 5 1.275 0.526 1.626 0.924

105 68 5.725 5 1.275 32.776 1.626 7.299

106 61 -1.275 4 0.275 1.626 0.076 -0.351

107 63 0.725 2 -1.725 0.526 2.976 -1.251

108 61 -1.275 3 -0.725 1.626 0.526 0.924

109 57 -5.275 3 -0.725 27.826 0.526 3.824


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110 63 0.725 5 1.275 0.526 1.626 0.924

111 62 -0.275 3 -0.725 0.076 0.526 0.199

112 60 -2.275 4 0.275 5.176 0.076 -0.626

113 57 -5.275 3 -0.725 27.826 0.526 3.824

114 62 -0.275 5 1.275 0.076 1.626 -0.351

115 57 -5.275 5 1.275 27.826 1.626 -6.726

116 57 -5.275 5 1.275 27.826 1.626 -6.726

117 61 -1.275 4 0.275 1.626 0.076 -0.351

118 63 0.725 2 -1.725 0.526 2.976 -1.251

119 62 -0.275 3 -0.725 0.076 0.526 0.199

120 56 -6.275 4 0.275 39.376 0.076 -1.726

3.725 2079.295 125.925 97.075


Findings and Recommendations

Service quality is an assessment of how well a delivered service conforms to the customer’s

expectations. Service often assesses the service quality provided to their customers in order to improve

their service, to quickly identify problems, and to better assess customer satisfaction.

From the above study it is concluded that there is significant association between the physical facility

and customer satisfaction. The gap analysis also indicates that the customers consider these factors

prominent for the quality of service delivered by hospitals service providers. The negative gap shows

that the customers are not satisfied with these factors, but they consider them very important. The

positive gap shows that the customers are satisfied with the service rendered by hospitals. Positive gap

is a kind of appreciation for hospitals service providers. The suggestion given by the customer can be

practiced for further improvement.


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References

1. Dr. B. Balaji, “Services Marketing and Management”, S. Chand & Company Ltd., pp.8-31

2. Philip Kotler and Kevin Lane, “Marketing Management”, PHI Learning / Pearson Education

13th Edition, 2008, pp. Paul Baisen, “Marketing”, Oxford University Press, 2008, pp.230

3. Christopher H. Lovelock and Jochen Wirtz, “Services Marketing”, Pearson Education, New

Delhi, 2004, pp.250

4. Hoffman, “Marketing of Services”, Cengage Learning, 1st Edition, 2008, pp.320

5. K. Douglas Hoffman “Essentials of Service Marketing: Concepts, Strategies and Cases”,

Thomson Learning, 2nd Edition, pp21-35

6. Kenneth E Clow, “Services Marketing Operation Management and Strategy”, Biztantra, 2nd

Edition, New Delhi, 2004, pp.290

7. Halen Woodroffe, “Services Marketing”, McMillan, 2003., pp.67-78

8. Christian Gronroos, “Services Management and Marketing a CRM Approach”, John Wiley,

2001, pp.259-289

9. Valarie A Zeithaml, Dwayne D Gremler, Mary Jo Bitner, Ajay Pandit “Service Marketing”,

TATA McGraw HILL Publication, pp.355

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