servqual model spar hyper 01

7/27/2019 Servqual Model Spar Hyper 01

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To measure service quality at leading retail chains inBangalore city using SERVQUAL model

To identify the Service Quality Gaps at Reliance Store andSpar Hyper Market

Identify the improvement areas at these retail stores

Objective


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Retail industry in India is at the crossroads.

The future seems to be promising:

1. Market is growing.

2. Government policies are becoming more favorable.

3.Emerging technologies are facilitating operations. The whole concept of shopping has altered in terms of format and

consumer buying behavior.

The sector is the largest source of employment after agriculture.

Introduction to Industry


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COMPERATIVE PENERATION OF ORGANIZED RETAIL

Source: Ernst &Young, The Great Indian Retail Story, 2006


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Conceptual model developed by Parusuraman in 1985.

Five dimensions of service quality:

Reliability: This refers to the ability of the company to perform thepromised service dependably and accurately. Customers expect thatcompanies will do what they say and they will be when they say.

Tangibles: This refers to the appearance of the physical facilitates,

equipment and personnel, and communication material. Responsiveness: This refers to willingness of the employees to help

customers and provide prompt service.

Assurance: This factor is linked to several minor factors such ascompetence, courtesy, credibility and security.

Empathy: Empathy refers to the caring, individualized attention thefirm provides to customers. It includes access, communication andunderstanding.

SERVEQUAL Model


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Gap 1: Customers expectation versus management perceptions: As result oflack of a marketing research orientation, inadequate upward communication and

too many layers of management.

Gap 2:Management perceptions versus service specifications: As a result ofinadequate commitment to service quality, a perception of unfeasibility,inadequate task standardization and absence of goal setting.

Gap 3: Service specifications versus service delivery: As a result of role

ambiguity and conflict, poor employee- job fit and poor technology-job fit,inappropriate supervisory control systems, lack of perceived control and lack ofteam work.

Gap 4: Service delivery versus external communication: As a result ofinadequate horizontal communications and propensity to over-promise.

Gap 5: The discrepancy between customer expectations and their perceptionsof the service delivered: As a result of the influences exerted from the customerside and the shortfalls (gaps) on the part of the service provider. In this casecustomer expectations are influenced by the extent of personal needs, word ofmouth recommendations and past service experience.

Service Quality Gaps


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SERVQUAL MODEL


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Scale Likert Scale used

SA (5) Strongly Agree.

A (4) Agree

N (3)

Not Agree.

D (2) Disagree.

SDA (1) Strongly Disagree.

Data Consistency: Cronbach alpha is more than

0.6


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SPAR RELIANCE

Frequency Percentage Frequency Percentage

Professsion

Student 12 20.00 8 13.33

Businessman 10 16.67 15 25.00

Govt.Service 11 18.33 10 16.67

Private Service 22 36.67 27 45.00

Retired 5 8.33 0 0.00

Total 60 100.00 60 100.00

SPAR RELIANCE

Frequenc

y Percentage Frequency Percentage

Age

20-30 17 28.33 14 23.33

30-40 21 35.00 26 43.33

40-50 12 20.00 14 23.33

50-60 6 10.00 6 10.00

>60 4 6.67 0 0.00

Total 60 100.00 60 100.00

SPAR RELIANCE


Marital Status

Married 46 76.67 47 78.33

Not Married 14 23.33 13 21.67

Total 60 100.00 60 100.00

SPAR RELIANCE


Gender

Male 37 61.67 34 56.67

Female 23 38.33 26 43.33

Total 60 100.00 60 100.00


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SPAR RELIANCE

S.No Dimensions E P

Gap (E-

P) Rank E P

Gap (E-

P) Rank

TANGABLE 3.80 4.18 -0.38 1 3.65 3.89 -0.24 1

1

The store appearance is good?

3.63 4.28 -0.65 1 3.90 4.00 -0.10 8

2

The bill paying process in the

store is good? 4.07 4.05 0.02 7 3.62 3.88 -0.27 3

3

The layout makes easier to find

things?4.02 4.37 -0.35 4 3.68 3.88 -0.20 5

4

SPAR follows hygiene

conditions? 3.47 4.00 -0.53 3 3.40 3.80 -0.40 1

EMPATHY4.12 4.14 -0.03 3 3.70 3.83 -0.13 3

1Are the staffs polite?

4.62 4.18 0.43 13 3.93 3.87 0.07 12

2

Are you getting personal

attention and proper response?

3.77 4.10 -0.33 5 3.73 3.87 -0.13 7

3

Do staffs have proper product

knowledge? 3.92 4.45 -0.53 3 3.60 3.88 -0.28 2

4

Are staffs have Guiding and

Persuading Nature? 4.17 3.83 0.33 11 3.55 3.72 -0.17 6


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RESPONSIVENESS 4.04 4.25 -0.21 2 3.68 3.85 -0.18 2

Are the employees able to

respond to your request? 3.88 4.38 -0.50 4 3.75 3.88 -0.13 7A hand of help provided during

the time of inconvenience4.20 4.12 0.08 9 3.60 3.82 -0.22 4

ASSURANCE 4.32 3.86 0.46 5 3.78 3.74 0.04 4

Does the store assure you the

good and fresh quality? 4.27 3.78 0.48 14 3.87 3.92 -0.05 10

Do employees provide you the

service you looking for? 4.27 4.20 0.07 8 3.77 3.72 0.05 11

Do you get motivated by the

service that is being provided?4.42 3.58 0.83 15 3.72 3.60 0.12 13

RELIABILITY 4.13 4.08 0.04 4 3.79 3.67 0.12 5

Whatever promises organization

makes, delivers it also?4.20 3.73 0.47 12 4.02 3.65 0.37 15

Do organization deliversservices as per promises made?

3.72 3.40 0.32 10 3.78 3.52 0.27 14

Is merchandising done

properly? 4.10 4.72 -0.62 2 3.60 3.67 -0.07 9

Is the accounting procedure i.e.

billing & records, kept

properly? 4.48 4.48 0.00 6 3.75 3.85 -0.10 8


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Factor Analysis

Customer Preferences - No. of responses on preferences

Variables 1st 2nd 3rd 4th 5th 6th 7th 8th 9th

1. Price of the product 28 25 25 18 15 11 8 2 0

2. Discounts and Promotional offers 8 21 16 14 1 21 10 20 12

3. Quality of the product 21 13 14 11 26 17 23 8 0

4. Ambiance of the store 1 7 11 9 11 5 21 13 23

5. Service provided by the Staff 9 12 8 21 7 16 3 10 16

6.More Choices 16 11 5 10 3 9 9 7 33

7.Guarantee on products/services 13 6 6 7 8 8 8 18 11

8.Hassel Free shopping 3 2 10 6 22 0 1 13 2

9.Parking facility 1 3 5 4 7 13 17 9 3


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Factor Analysis

Var0

1

Var0

2

Var0

3

Var0

4

Var0

5

Var0

6

Var0

7

Var0

8

Var0

9 Factor Name

Factor 1 Premium Class

Factor 2 Middle Class

Factor 3 Economy Class

Factor 4 Low risk taking class


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Recommendations & Improvements

1. Empathy related - Are the staff polite?

This area requires immediate attention andReliance & SPAR needs to train its staff on customer service

and soft skills.

2. Assurance related- Both the stores need to improve quality dimensions

such as prompt response and Quality of the product and

effective communication with the customer.

3. Reliability relatedBoth the stores need to improvement on reliability-

repeatability of performance and promises made.


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Thank You

servqual model spar hyper 01

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