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TRANSCRIPT
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The Role of Karaoke Box Servicescapes
Play in Customer Satisfaction
BY
Tam Pui Lam April 02007428
Marketing Option
An Honours Degree Project Proposal Submitted to the School of Business on Partial Fulfilment
of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honours)
Hong Kong Baptist University Hong Kong
April 2005
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Acknowledgement
I would like to take this opportunity to express my greatest appreciation to my supervisor,
Ms. Greenie Ha, for her valuable advices and guidance given. Her promptly reply, even when
she is in maternity leave, really contributes to the progress of my project a lot. Her kindness and
patience support me to strive for the best of my report.
A great credit should also go to Dr. Noel Siu for her advices during my supervisor maternity
leave. Her expertise in Services Marketing provides me a lot of insights for deciding my research
topic.
In addition, I appreciate whole-heartedly for the help of focus group participants and for the
support and care of my friends, especially for those who accompany with me to do observation
and teach me how to make my project better.
Lastly, I sincerely thanks for my parents love and care.
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Abstract
Karaoke is one of the most important and popular entertainment in Hong Kong. Since it is a
kind of high customer involvement service, its facilities play an essential role in customer service
encounter and satisfaction. However, no pervious research studies on servicescapes and even
service quality of karaoke box. This research is first to investigate if karaoke box servicescapes
affect customer satisfaction.
The purpose of this paper is to determine the relationship among karaoke box servicescapes
and customer satisfaction. Besides, which kind of servicescapes influence satisfaction most is
also examined. In this study, Neway Karaoke Box is used as an example because of its
popularity and dominant role in the industry. Furthermore, a framework of servicescapes is also
developed which divides servicescapes into four dimensions. They are namely Ambient
Environment, Spatial Layout and Functionality, Signs, Symbol and Artifacts and Cleanliness.
The results discover that all dimensions of servicescapes have a positive effect on customer
satisfaction where Cleanliness has the greatest impact. Finally, implications and
recommendations are discussed base on the findings in order to improve Neway Karaoke Box
services. Most importantly, this study is a starting point for further research on karaoke box
servicescapes.
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Table of Content Acknowledgement I Abstract II 1 Introduction 1 1.1 Industry 1 1.1.1 Services Industry 1 1.1.2 Karaoke Industry 1
1.2 Background of Neway Karaoke Box 2
2 Statement of the Problems 2 3 Literature Review 3 3.1 Service Quality 3 3.2 Servicescapes 4 3.3 Customer Satisfaction 7 4 Objectives of the Study 7 5 Statement of Hypotheses 8 6 Methodology 10
6.1 Research Method 10 6.2 Instrument and Sample size 10 6.2.1 Instrument and Questionnaire Design 10 6.2.2 Sampling 11 6.3 Data Analysis Method 12 7 Findings and Analysis 13 7.1 Demographic and Consumption Characteristics 13 7.2 Factor Analysis 14 7.2.1 Factor Analysis on Servicescapes 14 7.2.2 Factor Analysis on Customer Satisfaction, Desire to 19
Stay for Longer Time and Repatronage Intention 7.3 Reliability Test 21 7.4 Multiple Regressions 21 7.4.1 Relationship among Eight Servicescapes Dimensions 21 and Overall Customer Satisfaction
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7.4.2 Relationship among Eight Servicescapes Dimensions 22 and Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention
7.5 Correlations 24 8 Discussions of the Findings and Analysis 24 9 Implications and Recommendations 27 9.1 Dimensions of Servicescapes 27 9.2 The Role of Servicescapes Play in Customer Satisfaction 30 9.3 Importance of Customer Satisfaction 31 9.4 Implications for Research 32 10 Limitations 32 11 Conclusion 33 References 35 Appendix 39 Figures 40 Questionnaire 43 SPSS Output 50 Observation 62 Focus Group Script 66
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1 Introduction
1.1 Industry
1.1.1 Services Industry
Services industry is increasingly important and essential rather than product industry in these
few decades. Companies not only provide products, but also excellent services. Therefore, service
is acknowledged to be critical for all organizations and quality in the service sector has been of
interest to marketing academics and managers. Most of the firms put much effort aiming at
enhancing their service quality in order to differentiate themselves form rivals. For instance,
department stores or fast food restaurants also provide delivery service and many retail stores
focus on training their staff to be more polite and cordial so that customers will have a good
experience of their patronages.
1.1.2 Karaoke Industry
Karaoke, which is originated in Japan, is a typical form of entertainment for Japanese
business people; they drop into a bar with colleagues after work, have a drink, and enjoy singing
popular songs to the accompaniment of karaoke. Karaoke has been entertaining people ever since
its invention 20 years ago, and has become firmly established in Japanese society, going far
beyond just a temporary boom (Karaoke Scene Magazine, n.d.a.). The first karaoke box,
providing a place for entertainment, appeared in 1984 in Japan. Karaoke box industry became
very popular since the early 1990s in Hong Kong (Neway Karaoke Box, n.d.a.). Many citizens in
Hong Kong spend a considerable amount of time in karaoke (Chow and Lui, 2002). Singing in the
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Karaoke box is regarded as a leisure activity among them. The main target segment of karaoke
box is teenager. However, other segments like middle age and upper scale people also like to stay
in karaoke box.
1.2 Background of Neway Karaoke Box
Neway Karaoke Box, which is founded in 1993, will be applied in this study as it is the
market leader of the industry. It generates 60 percents of market share and operates more than 20
branches in busiest traffic (e.g. Mongkok and Causeway Bay), New Territories and other suburban
residential areas. Its mission is to expand its karaoke empire and bring healthy, salubrious
entertainment to the community. Therefore, Neway not only makes karaoke the most desired
entertainment activity in Hong Kong, but also organized many activities for community benefits
such as awards for advocating educational studies for young people. (Neway Karaoke Box, n.d.a.)
2 Statement of the Problems
Nowadays, people who study and work under great pressure. Leisure activities act an
important role in people life. Spending time in the karaoke box seems becoming the first choice of
relaxation among teenagers in the recent years. Karaoke box contains many individual rooms for
customers to enjoy singing without affected by the others. Part of the services is regarded as
self-service because customers need to participate in such as selecting the songs by themselves.
Therefore, please and easy to use facilities should be offered in this high customer involvement
services. This study will identify customers satisfaction level towards karaoke box servicescapes.
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Little consumer research has been conducted in the area of leisure services (Taylor et al.,
1993). Researchers have spent considerable effort on exchanges which primarily provide
utilitarian satisfaction, but have expended much less effort on products or services which are
consumed for more hedonistic purposes (Babin et al., 1994) for extended periods of time (e.g.
Arnould and Price, 1993; Price et al., 1995). Also, Bitner (1992) thought that managers
continually plan, build, change, and control and organizations physical surroundings, but
frequently the impact of a specific design or design change on ultimate users of the facility is not
fully understood.
Since most studies continue to focus on human interactions such as those between customers
and providers, and customers with other customers (Gremler and Gwinner, 2000), the impact of
servicescapes in services is less focused. Furthermore, servicescapes of karaoke box has not been
used as an example of the relationship between servicescapes and customer satisfaction in the
previous research. A study on karaoke box servicescapes is needed for the firm to pay more
attention on its facilities provided so as to retain and attract the customers. Moreover, it can show
how servicescapes influence customer satisfaction of enjoying karaoke service as well.
3 Literature Review
3.1 Service Quality
Service can be described as intangible, heterogeneous, inseparable and perishable. Service
quality is first conceptualized and operationalized by Parasuraman, Berry and Zeithaml (1985,
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1988 and 1994) in 1985. Customer service, and service quality, is now a focus for many corporate
or marketing strategy and high levels of service are typically seen as a means for an organization
to achieve a competitive advantage (Lewis, 1993). Booms and Bitner (1981) propose an expanded
marketing mix for services consisting of the four traditional elements (product, price, place,
promotion) and three new elements which are physical evidence (the physical surroundings and
all tangible cues), participants (all human actors in the service encounter including firm personnel)
and other customers. One of the elements which is physical evidence is focused in this study.
Literature suggested that customer satisfaction depends directly and most immediately on the
management and monitoring of individual service encounters (Parasuraman, Zeithaml, and Berry,
1985; Shostack, 1984, 1987; Solomon et al., 1985; Surprenant and Solomon, 1987). According to
Shostacks (1985), service encounter was defined as an a period of time during which a
consumer directly interacts with a service. His definition encompasses all aspects of a service
firm including its personnel, physical facilities and other tangible elements, with which the
consumer may interact during a given period of time.
3.2 Servicescapes
As services are produced and consumed simultaneously (Gronroos, 1984; Langeard et al.,
1981; Zeithaml, Paresuraman, and Berry, 1985), customers are in the factory, often experiencing
the total service within the firms physical facility. The factory, or the place where the service is
produced, cannot be hidden and may in fact have a strong impact on customers perceptions of the
service experience (Bitner, 1992). Since services are intangible and usually cannot be tried prior to
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purchase, consumers commonly look for cues about the firms capabilities and quality (Berry and
Clark, 1986; Langeard et al., 1981; Shostack, 1977). The physical environment is rich in such
cues (Rapoort, 1982) and may be very influential in communicating the firms image and purpose
to its customers.
Servicescapes refer to the environments in which services are delivered and where the firm
and customer interact (Bitner, 1992; Zeithaml and Bitner, 1996). Physical evidence such as
environmental design, dcor, signage, and business cards/stationery send messages that help to
establish the firms image and influence the customers expectations (Baker, 1987; Booms and
Bitner, 1982; Shostack, 1977). Servicescapes are more or less consciously designed places,
calculated to produce commercially significant actions and sites for commercial exchanges.
Research suggested that the variations in physical environment can affect perceptions of an
experience independently of the actual outcome (Biggers and Pryor, 1982; Maslow and Mintz,
1956). It can aid or hinder the accomplishment of both internal organizational goals and external
marketing goals (Bitner, 1992). Servicescapes also plays a multifaceted role within the service
encounter as package, facilitator, socializer, and differentiator (Zeithaml and Bitner, 1996). As
differentiator, the servicescapes may distinguish the firm from its competitors via architectural
styling to convey the type of service it provides, or it may alter the servicescapes to reposition
itself to attract more desirable market segments (Hoffman and Bateson, 2002; Zeitharml and
Birtner, 1996). So, Bitner (1992) suggested that perceptions of the servicescapes may simply help
people to distinguish a firm by affecting how it is categorized. Base on Bitner (1992) research,
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servicescapes consist of three components which are facility exterior, facility interior and other
tangibles.
Referring to the typology of service suggested by Bitner (1992) (refer to appendix Figure 1),
karaoke box belongs to interpersonal services with lean servicescapes. Selected aspects of Bitners
(1992) servicescape framework (refer to appendix Figure 2), which illustrates the relationship and
effect of servicescape on customers behavioral response, will be used in this research. A more
specific dimension of servicescapes is divided into three parts which are shown below:
(1) Ambient Conditions (i.e. weather, temperature, air quality, noise, music, odors);
(2) Spatial Layout and Functionality (i.e. the way in which equipment and furnishings are
arranged, and the ability of those items to facilitate consumers' enjoyment);
(3) Signs, Symbols and Artifacts (i.e. signage and decor used to communicate and enhance a
certain image or mood, or to direct customers to desired destinations).
In self-service settings, which own a great part of self-service, the creative use of physical
design could support particular positioning and segmentation strategies and enhance specific
marketing objectives, such as customer satisfaction and attraction (Bitner, 1992). For
interpersonal services, Bitner (1992) also suggested that both organizational and marketing
objectives could potentially be targeted through careful design of the servicescapes. Hence,
servicescapes of karaoke box play a critical role in customers mind and it is worthwhile to study
its importunacy.
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3.3 Customer Satisfaction
Bitner (1990) suggested that consumers reach satisfaction decisions by comparing product or
service performance with prior expectations about how the product or service would or should
perform. These expectations are compared with actual perceptions of performance as the product
or service is consumed. If expectations exceed performance, dissatisfaction results. When
expectations are met, or when performance actually exceeds expectations, satisfaction results.
Shu, John and Victor (2002) explained that confirmation results when the actual performance
matches initial expectations. When performance exceeds or falls short of expectations, positive or
negative disconfirmation results. Positive disconfirmation leads to satisfaction or perceptions of
high service quality, while negative disconfirmation leads to dissatisfaction or perceptions of low
service quality. Research also suggested that the physical setting may also influence the
customers ultimate satisfaction with the service (Bitner, 1990; Harrell, Hutt, and Anderson,
1980).
4 Objectives of the Study
The research objective is to investigate the customer satisfaction level of different kinds of
servicescapes, which are Ambient Conditions, Spatial Layout and Functionality, Signs, Symbols
and Artifacts and Cleanliness, in karaoke box. Their subsequent repatronage intentions and
intentions to stay will also be examined. Curial servicescapes, which are used, seen or felt directly
by the consumers, influencing customer satisfaction most in the karaoke industry will be
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determined so that karaoke box can focus on and do even more better in developing such
servicescapes. Recommendations are provided to improve the dissatisfy servicescapes and for
further research in the future.
5 Statement of Hypotheses
Suggested dimensions of servicescapes from Bitner (1992) are used as the factors affecting
customer perceived quality of the servicescapes. The hypothesized model is shown in the
appendix Figure 4. In this study, only curial servicescapes are examined in order to be more focus.
The details of different dimensions are defined here. Firstly, Ambient Conditions of karaoke box
including temperature, air quality, noise and lighting in the room and corridor. Secondly, Spatial
Layout includes the layout of the room, equipment, furnishings and seating comfort while
Functionality refers to the decorating system and songs. Lastly, Signs and Symbols refer to signs
and Artifacts represent the theme karaoke rooms.
H1: Ambient Conditions will have a positive effect on Overall Customer Satisfaction.
H2a: Spatial Layout will have a positive effect on Overall Customer Satisfaction. H2b: Functionality will have a positive effect on Overall Customer Satisfaction. H3a: Signs and Symbols will have a positive effect on Overall Customer Satisfaction. H3b: Artifacts will have a positive effect on Overall Customer Satisfaction.
After the spread of SARS, most of the consumers concern the cleanliness much more then
before, especially in those situations in which customers must spend several hours in the leisure
service setting (Wakefield and Blodgett, 1996). Interviewees of the focus group suggested that
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many consumers implicitly associate cleanliness with the quality of the servicescapes and it will
strongly influence consumers perceptions of the service quality.
H4: Cleanliness of Servicescapes will have a positive effect on the Overall Customer Satisfaction.
Leisure services (such as theaters, recreation or health clubs, karaoke box, and sporting
events, etc.) generally require customers to spend extended periods of time in the physical
surroundings of the service provider (Turley and Fugate, 1992). In such cases, Bitner (1992)
suggest that the facilities itself, or the perceived quality of the servicescapes, may have a
substantial effect on customer satisfaction with the service experience, which in turn influences
how long they desire to stay in the leisure service setting as well as how much money they will
spend and whether they intend to repatronize the service provider (Cronin and Taylor, 1992;
Wakefield et al. 1996) (refer to appendix Figure 3). Moreover, the perceived quality of
servicescapes would be formed by the three dimensions plus Cleanliness of Servicescapes and
their effect on overall customer satisfaction is being tested.
H5: The perceived quality of the servicescapes will have a positive effect on customer satisfaction.
H6: The perceived quality of the servicescapes will have a positive effect on the length of time they desire to stay in the servicescapes.
H7: The perceived quality of the servicescapes will have a positive effect on their repatronage intentions.
H8: Customer satisfaction will have a positive relationship with desire to stay in karaoke box for longer time.
H9: Customer satisfaction will have a positive relationship with repatronage intention.
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6 Methodology
6.1 Research Method
This research has two stages. Firstly, a focus group of six people, who were customers of
Neway Karaoke Box, was launched for generating initial insights in order to design the
questionnaire. It was used to understand if those dimensions of servicescapes are useful and
effective for collecting proper data which matching with the objectives. Observational research
was also conducted before designing the questionnaire. Two branches of Neway Karaoke box
(Mongkok and Aberdeen) were visited and observed for their external and internal servicescapes.
The reason for choosing these two branches because they represented two different areas which
were in busiest traffic and residential area in order to lessen the discrepancy and enhance the
reliability of the research. Base on the focus group, Prat Avenue Branch was regarded as the most
impressing branch. So, it also been observed. The main servicescapes dimensions of karaoke box
were drawn out afterward for the questionnaire. Secondly, quantitative research as well as
self-administrated questionnaire with Likert Scale questions was applied in this study as it could
be easily control and collect data more properly.
6.2 Instrument and Sample Size
6.2.1 Instrument and Questionnaire Design
The questionnaire consisted of 49 statements for Servicescapes, Customer Satisfaction,
Repatronage Intention and Intention to Stay for Longer Time. For those 7 closed-end questions,
they were used for finding consumers characteristics and consumption background. All of the
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statement questions were 7-point Likert Scale questions which represent respondents agree or
disagree level towards karaoke box servicescapes.
The questions of servicescapes were developed base on the extracted dimensions of Bitners
(1992) servicescapes framework (refer to appendix Figure 3). Ambient Conditions were examined
by questions form 5 to 12; Spatial Layout and Functionality were tested by questions form 13 to
30; Signs, Symbols and Artifacts were presented by questions form 31 to 37; and questions form
38 to 40 represented Cleanliness of Servicescapes. All of these questions were designed according
to the observation (refer to appendix Observation) and insights form focus group (refer to
appendix Focus Group Script). They had not been used in the past since there was no pervious
research conducted about the servicescapes of karaoke box.
In terms of the questions testing respondents satisfaction level, pervious scales (Westbrook
and Oliver, 1981) had been used as part of the questions. As pervious scales were not suitable for
this research structure very well, some more new questions were added eventually. Questions
form 41 to 45 illustrated Customer Satisfaction; questions form 46 to 49 examined Intention to
Stay for Longer Time; and Repatronage Intention was tested by questions form 50 to 53.
6.2.2 Sampling
Judgment sampling of nonprobability sampling was carried out. Interviewees were selected.
Since elderly and children would not visit karaoke box frequently, they were not the target
respondents of this research. Teenagers and middle aged consumers which aged between 15 to 40
were target respondents. Structured questionnaires were distributed to 207 customers by
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face-to-face person administrated survey format outside four Neway karaoke box branches. They
were located in Causeway Bay Plaza and Mongkok Argyle Centre which were in the busiest
traffic; Shatin Belair Garden and Aberdeen Centre which were in the New Territories and
suburban residential areas so as to obtain data form people of different demographic backgrounds
(e.g. gender, ages and income level). The respondents were interviewed right after patronized the
karaoke box so that they had a fresh memories about the servicescapes they had just experienced.
6.3 Data Analysis Method
The program of SPSS was employed for analyzing the collected data. Demographic data
used to show the characteristics of the respondents. The rating of servicescapes dimensions and
customer satisfaction level were also computerized. Factor analysis and reliability test were
applied for evaluating the validity as well as reliability of the statements. Besides, multiple
regressions were used as well for determining the relationship of the servicescapes dimensions
(independent variable) with customer satisfaction (dependent variable). Further investigation
about which dimensions of servicescapes influenced customers satisfaction most as well as the
intention to stay and repatronage were also determined. Lastly, correlation test was run for
determining the relationship between customer satisfaction, repatronage intention and desire to
stay for longer time.
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7 Findings and Analysis
7.1 Demographic and Consumption Characteristics
According to Table 1, demographic characteristics and consumption background of the
respondents were shown clearly. Totally 207 respondents, including 68.6% female and 31.4%
male, provided their opinions. People from age group 15 to 20 and 21 to 25, which were 42.5%
and 48.3% respectively, dominated a large percentage of the sample. A majority (65.2%) of their
income level per month was $2,000 or below and other 20.3% was ranged from $2,001 to $6,000.
Only a total of 14.5% of the sample earned more than $6,000 per month.
Respondents who patronized Neway Karaoke Box less than one time averagely in a month
were 40.1% while 39.6 % of them at least visit one to two times a month. Total of 20.3 %
respondents patronized Neway Karaoke box more than twice a month. About half of the
respondents, 54.6%, visited Neway during lunch time which was around 10:00 to 14:00. Both
happy hour and dinner time slot dominated 19.8% of the sample equally. Few respondents (5.8%)
went to karaoke box during mid-night. For how long they stayed in the karaoke box, most people
(42.5%) normally stayed around two to three hours. Another 38.2% of respondents stayed about
three to four hours every time and 10.1% of them even stayed longer for more than four hours.
The data indicated that the respondents at least stayed in the karaoke box for an hour and 9.2%
stayed from one hour up to two hours.
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Demographic Consumption Characteristics
Item Data % Item Data %
Male 31.4 Less than 1 time 40.1 Gender Female 68.6 1-2 times 39.6
15-20 42.5 3-4 times 11.1 21-25 48.3
Patronage
Frequency
per month More than 4 times 9.2
26-30 5.8 Lunch (10:00-14:00) 54.6 31-35 1.9 Happy Hour (14:00-18:00) 19.8
Age
36-40 1.4 Dinner (18:00-00:00) 19.8
$2,000 or below 65.2
Time slot
mostly
patronize Mid-night (00:00-06:00) 5.8
$2,001-$6,000 20.3 Less than 1 hour 0 $6,001-$10,000 6.3 1-2 hours 9.2
$10,01-$14,000 2.4 2-3 hours 42.5
$14,001-$18,000 0 3-4 hours 38.2
$18,001-$22,000 1.0 More than 4 hours 10.1
Income
Level
More than $22,000 4.8
Staying
time in
every
patronize
[Table 1] Demographic and Consumption Characteristics of the respondents
7.2 Factor Analysis
7.2.1 Factor Analysis on Servicescapes
The principle component factor analysis with varimax was conducted on 36 statements. After
deleting 9 cross loading items, 27 items left and split into eight factors instead of four original
dimensions. Songs in Functionality; Layout of Rooms, Equipment, Furnishings and Sitting
Comfort in Spatial Layout; Lighting and Temperature in Ambient Conditions; Cleanliness of
Servicescapes; Air Quality and Noise in Ambient Conditions; Signs and Symbols; Theme Karaoke
Room in Artifacts; and Decorating System in Functionality were the eight factors. The results of
Kaiser-Meyer-Olkin Measure of Sampling Adequacy (0.735), Bartletts Test of Spericity
(2550.798) and Significance (0.000) revealed that the factor analysis method was appropriate. The
total variance of the items was 68.788% and the overall reliability of the factors was 0.849. All
factors had eigenvalue greater than 1.0 so that the subsequent analysis which was multiple
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regressions and correlation could be conducted.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy = 0.735
Test of Spericity = 2550.798
Significance = 0.000
Overall Reliability Coefficient Alpha = 0.849
Factor 1 Functionality (Songs) Loading Mean Factor Mean
29. Many new songs 0.896 3.19
28. New songs are available quickly 0.875 3.18
30. New songs are trendy 0.870 3.04
27. Varity of songs for me to choose 0.727 3.20
3.15
(2nd)
Reliability Coefficient Alpha = 0.887
Eigenvalue = 5.976 , Variance explained = 22.135%
Factor 2 Spatial Layout (Layout of Rooms, Equipment, Furnishings
and Sitting Comfort) Loading Mean Factor Mean
19. Sufficient seats inside the rooms 0.764 3.70
14. Layout of rooms is convenient to customers 0.688 4.21
13. Size of room assigned is large enough for the numbers of customers 0.672 4.12
20. Size of television screen inside the rooms is appropriate 0.607 3.81
15. Table size and height inside the rooms is appropriate 0.601 4.20
18. Seats in rooms are very comfortable 0.599 3.89
3.99
(5th)
Reliability Coefficient Alpha = 0.790
Eigenvalue = 2.757 , Variance explained = 10.211%
Factor 3 Ambient Conditions (Lighting and Temperature) Loading Mean Factor Mean
07. Sufficient lighting in lobby 0.776 2.94
08. Sufficient lighting in rooms 0.725 3.09
09. Button for adjusting lighting in rooms helps to enhance the
atmosphere 0.648 2.52
05. Temperature of lobby is appropriate 0.642 3.40
06. Temperature inside the rooms is appropriate 0.597 3.70
3.13
(1st)
Reliability Coefficient Alpha = 0.728
Eigenvalue = 2.218 , Variance explained = 8.215%
Factor 4 Cleanliness of Servicescapes Loading Mean Factor Mean
39. Corridor is clean and hygiene 0.802 4.00
40. Facilities inside the rooms are clean and hygiene 0.734 4.03
38. Nuts and snacks pack individually provides me a hygiene impression 0.643 3.40
3.81
(4th)
Reliability Coefficient Alpha = 0.754
Eigenvalue = 1.974 , Variance explained = 7.311%
Factor 5 Ambient Conditions (Air Quality and Noise) Loading Mean Factor Mean
11. Rooms are always full of tobacco smell or odor 0.799 5.42
10. Air quality is bad in rooms 0.756 5.19
5.27
(6th)
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12. Insufficient sound arrester among rooms 0.688 5.20
Reliability Coefficient Alpha = 0.688
Eigenvalue = 1.823 , Variance explained = 6.752%
Factor 6 Signs and Symbols Loading Mean Factor Mean
33. Sufficient signs / route signs (e.g. Toilet signs) 0.882 3.64
34. Signs / route signs can be easily understand 0.871 3.61
3.63
(3rd) Reliability Coefficient Alpha = 0.863
Eigenvalue = 1.568 , Variance explained = 5.809%
Factor 7 Artifacts (Theme Karaoke Room) Loading Mean Factor Mean
37. Layout of theme karaoke rooms make me sing happier 0.920 3.92
36. Layout of theme karaoke rooms rise my intention to sing 0.892 4.06
3.99
(5th) Reliability Coefficient Alpha = 0.905
Eigenvalue = 1.136 , Variance explained = 4.207%
Factor 8 Functionality (Decorating System) Loading Mean Factor Mean
25. Remote control is user-friendly 0.871 3.26
24. Decorating system is user-friendly 0.831 3.01
3.13
(1st) Reliability Coefficient Alpha = 0.868
Eigenvalue = 1.120 , Variance explained = 4.147%
[Table 2] Factors Extracted of Servicescapes
Factor mean represented the preferences of the respondents about the servicescapes. The
eight items in ascending order of the mean score are Ambient Conditions (Lighting and
Temperature) (3.13), Functionality (Decorating System) (3.13), Functionality (Songs) (3.15),
Signs and Symbols (3.63), Cleanliness of Servicescapes (3.81), Spatial Layout (Layout of Rooms,
Equipment, Furnishings and Seating Comfort) (3.99), Artifacts (Theme Karaoke Room) (3.99)
and Ambient Environment (Air Quality and Noise) (5.27).
Factor 1, known as Songs of Functionality, contained of four items. The items were Many
new songs (0.896), New songs are available quickly (0.875), New songs are trendy (0.870) and
Varity of songs for me to choose (0.727). Their reliability alpha was 0.887 and explained variance
was 22.135%. The factor mean of 3.15 meaning that Songs in Functionality was the second
dimension of servicescapes which respondents perceived was good.
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Factor 2 namely Spatial Layout (Layout of Rooms, Equipment, Furnishings and Seating
Comfort) consisted of six items. The items about the Layout of Rooms were Sufficient seats
inside the rooms (0.764), Layout of rooms is convenient to customers (0.688), Size of room
assigned is large enough for the numbers of customers (0.672) and Table size and height inside the
rooms is appropriate (0.601). For the items about Equipment was Size of television screen inside
the rooms is appropriate (0.607). Seats in rooms are very comfortable (0.599) related to sitting
comfort. The reliability alpha was 0.790 while variance explained is equal to 10.211%. This factor
mean was scored the fifth high score (3.99) meaning that the respondents were almost neutral
towards the quality of Spatial Layout.
Factor 3 consisted of five items and regarded as Ambient Conditions (Lighting and
Temperature). Sufficient lighting in lobby (0.776), Sufficient lighting in rooms (0.725) and Button
for adjusting lighting in rooms helps to enhance the atmosphere (0.648) referred to the Lighting
whereas Temperature of lobby is appropriate (0.642) and Temperature inside the rooms is
appropriate (0.597) portrayed Temperature of Ambient Conditions. The reliability alpha was 0.728
and explained variance was 8.215%. This factor owned the lowest factor mean (3.13) so that
respondents this factor was the best that Neway perform.
Factor 4 was about Cleanliness of Servicescapes with three items. Corridor is clean and
hygiene (0.802), Facilities inside the rooms are clean and hygiene (0.734) and Nuts and snacks
pack individually provides me a hygiene impression (0.643) gained the fourth low score of factor
mean (3.81). The factor reliability alpha was 0.754 and explained variance was 7.311%.
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Factor 5 corresponded to Ambient Conditions and consisted of three items. Rooms are
always full of tobacco smell or odor (0.799) and Air quality is bad in rooms (0.756) were used to
indicate the Air Quality while Insufficient sound arrester among rooms (0.688) illustrated the
Noise. Reliability alpha and explained variance were 0.688 and 6.752% respectively. This factor
has the highest factor mean (5.27) so that most of the respondents were slightly disagree that
Neway did well in this dimension.
Factor 6 referred to Signs and Symbols containing two items. Both of Sufficient signs / route
signs (0.882) and Signs / route signs can be easily understand (0.871) were used to interpret this
factor. Reliability Alpha is 0.863 and explained variance is 5.809%. The factor mean was 3.63
which was the third low score.
Factor 7 was indicating Artifacts with two items about Theme Karaoke Room. Layout of
theme karaoke rooms make me sing happier (0.920) and Layout of theme karaoke rooms raise my
intention to sing (0.892) represented this factor. They contributed to a high factor mean (3.99)
which was the second high among the other factors. It revealed that respondents were almost
neutral towards the theme karaoke room. Its reliability is high (alpha = 0.905) and the explained
variance is 4.207%.
Factor 8 showed the Functionality about Decoration System by two items. One was Remote
control is user-friendly (0.871) and another was Decorating system is user-friendly (0.831). Its
reliability alpha was equal to 0.868 and explained variance was 4.147%. It factor mean was as low
as Factor 3 did, only had 3.13. So, the respondents agreed that Neway did well in its decorating
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System.
7.2.2 Factor Analysis on Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention
The principle component factor analysis with varimax was applied on 13 items as
servicescapes did. Five cross loading items were deleted while eight items remained and divided
into three factors. Three factors of Overall Customer Satisfaction, which were Customer
Satisfaction, Repatronage Intention and Desire to stay for longer time, were shown in Table 3. The
result of Kaiser-Meyer-Olkin Measure of Sampling Adequacy was 0.854, Bartletts Test of
Sphericity was 851.275 and Significance was 0.000. These results implied that the data was
adequate for conducting factor analysis and the results were significance. Hence, factor analysis
method was appropriate. The total variance of the items was 78.627% and the overall reliability of
the factors was 0.860. Two factors had eigenvalue greater than 1.0, but one was nearly score 1.0
(Desire to Stay for Longer Time). This factor was kept since it was important to the research
construct and its eigenvalue was not far below the standard of 1.0. So, the subsequent analyses
which were multiple regression and correlation could be conducted.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy = 0.854
Bartletts Test of Spericity = 851.275
Significance = 0.000
Overall Reliability Coefficient Alpha = 0.860
Factor 1 Customer Satisfaction Loading Mean Factor Mean
42. I am satisfied with the facilities of Neway 0.835 3.74
43. My confident towards Neway is enhanced by its facilities 0.825 3.53
41. I think Neway facilities are excellent 0.774 3.66
3.64
(2nd)
Reliability Coefficient Alpha = 0.911
Eigenvalue = 4.241 , Variance explained = 53.015%
Factor 2 Repatronage Intention Loading Mean Factor Mean
53. It is a wrong choice of patronage Neway Karaoke Box 0.835 2.91 3.00
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50. I will repatronage Neway Karaoke Box 0.792 2.93
52. I will think of Neway when I want to go to karaoke box 0.772 3.16
Reliability Coefficient Alpha = 0.814
Eigenvalue =1.094 , Variance explained = 13.672%
Factor 3 Desire to stay for longer time Loading Mean Factor Mean
49. Neway Karaoke Box is the best choice for consuming time 0.864 4.37
48. I intent to stay for longer time in Neway Karaoke Box 0.767 4.24
4.31
(3st) Reliability Coefficient Alpha = 0.648
Eigenvalue = 0.955 , Variance explained = 11.940%
[Table 3] Factors Extracted of Customer Satisfaction, Desire to Stay for Longer Time and
Repatronage Intention
Factor 1 was Customer Satisfaction consisting of three statements which were I am satisfied
with the facilities of Neway (0.835), My confident towards Neway is enhanced by its facilities
(0.825) and I think Neway facilities are excellent (0.774). The overall reliability alpha was 0.911
and explained 53.015% of the variance. The factor mean was 3.64 denoted that Customer
Satisfaction was ranked the second in respondents intention of being satisfy to the karaoke box.
Factor 2 was named Repatronage Intention. It involved three items including it is a wrong
choice of patronage Neway Karaoke Box (0.835), I will repatronage Neway Karaoke Box (0.792)
and I will think of Neway when I want to go to karaoke box (0.772). It revealed that the overall
reliability alpha is 0.814 and the variance explained is 13.672%. The factor was ranked the first on
its factor mean (3.00) compare with other factors suggested that respondents agreed with this
factor. It implied that they agreed that they would repatronage in order to show their satisfaction.
Factor 3 was called Desire to stay for longer time and it comprised of two statements which
were Neway Karaoke Box is the best choice for consuming time (0.864) and I intent to stay for
longer time in Neway Karaoke Box (0.767). It expressed that the reliability alpha of this factor
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was 0.648 and the explained variance was 11.940%. The factor mean (4.31) presumed that
respondents considered this factor as the last important one representing customer satisfaction. No
matter they satisfied or not, they were not intended to stay for longer in the karaoke box.
7.3 Reliability Test
Reliability test was conducted in both servicescapes dimensions and overall customer
satisfaction in order to prove their reliability for further analysis. Apart from Factor 5 in
servicescapes and Factor 3 in overall customer satisfaction, all of the factors were reliable
(Cronbach alpha Reliability > 0.70). So, the reliable factors were internally consistent. For the
dimension which was lower than 0.70 in servicescapes, it would still be kept. Base on the Table 2,
Factor 5 was a sub-dimensions of Ambient Conditions and the average reliability of both Ambient
Conditions Factor 3 and Factor 5 was larger than 0.70 (alpha = 0.708). For the other factor which
had low reliability in overall customer satisfaction was also decided to keep in the research since
the deletion of this factor would lead to significant decline in the variance and affect the construct.
7.4 Multiple Regressions
The multiple regressions were used to find out the relationship among eight servicescapes
dimensions (independent variable) and Overall Customer Satisfaction (dependent variable). Their
relationship with Customer Satisfaction, Desire to Stay for Longer Time and Repatronage
Intention would further investigate.
7.4.1 Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction
Since each dimension of servicescapes had divided into few categories to investigate which
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servicescapes influenced customers most, multiple regressions were conducted by using eight
servicescapes dimensions as independent variables. The results showed in Table 5 implied that all
dimensions are significant (Sig. T < 0.05) excepting Functionality (Decorating System) (Sig. T =
0.05) and 46% of the variance in Overall Customer Satisfaction was explained by the five
dimensions (Adjusted R Square = 0.460). Cleanliness of Servicescapes scored highest (Beta =
0.386) among other dimensions as pervious did. The second high score was Functionality (Songs)
(Beta = 0.234) and then Artifacts (Theme Karaoke Rooms) (Beta = 0.212). Therefore, Cleanliness
of Servicescapes owned the strongest relation with Overall Customer Satisfaction.
Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction
Dimensions B Beta Sig.T
Ambient Conditions (Lighting and Temperature) 0.212 0.188 0.001*
Ambient Conditions (Air Quality and Noise) / 0.111 0.036*
Spatial Layout (Layout of Rooms, Equipment, Furnishings and
Sitting Comfort) / 0.125 0.029*
Functionality (Songs) 0.213 0.234 0.000*
Functionality (Decorating System) / 0.109 0.050
Signs and Symbols (Signs) / 0.118 0.030*
Artifacts (Theme Karaoke Rooms) 0.154 0.212 0.000*
Cleanliness of Servicescapes 0.307 0.386 0.000*
Adjusted R Square = 0.460 *p < 0.05
[Table 5] Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction
7.4.2 Relationship among Eight Servicescapes Dimensions and Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention
The dimensions of Overall Customer satisfaction were also tested and the results were
displayed in Table 6. The eight dimensions explained 46.5% of variance in Customer Satisfaction,
38.6% of variance in Repatronage Intention and 17.9% of variance in Desire to Stay for Longer
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Time. Cleanliness of Servicescapes was largely affected both Customer Satisfaction (Beta = 0.500)
and Repatronage Intention (Beta = 0.406) as it had a strong association with them. Yet, Theme
Karaoke Rooms of Artifacts had the strongest association (Beta = 0.325) with Desire to Stay for
Longer Time. It implied that Theme Karaoke Rooms attracted customers to stay longer in the
karaoke box.
Relationship among Eight Servicescapes Dimensions and Customer Satisfaction
Dimensions B Beta Sig.T
Ambient Conditions (Lighting and Temperature) / 0.110 0.043*
Ambient Conditions (Air Quality and Noise) / 0.110 0.038*
Spatial Layout (Layout of Rooms, Equipment, Furnishings and
Sitting Comfort) 0.210 0.188 0.001*
Functionality (Songs) 0.214 0.214 0.000*
Functionality (Decorating System) / 0.032 0.579
Signs and Symbols (Signs) / 0.056 0.303
Artifacts (Theme Karaoke Rooms) / 0.066 0.236
Cleanliness of Servicescapes 0.435 0.500 0.000*
Adjusted R Square = 0.465 *p < 0.05
Relationship among Eight Servicescapes Dimensions and Repatronage Intention
Dimensions B Beta Sig.T
Ambient Conditions (Lighting and Temperature) 0.327 0.228 0.000*
Ambient Conditions (Air Quality and Noise) / 0.044 0.436
Spatial Layout (Layout of Rooms, Equipment, Furnishings and
Sitting Comfort) / 0.091 0.132
Functionality(Songs) 0.272 0.234 0.000*
Functionality (Decorating System) / 0.108 0.069
Signs and Symbols (Signs) / 0.042 0.475
Artifacts (Theme Karaoke Rooms) / 0.101 0.088
Cleanliness of Servicescapes 0.413 0.406 0.000*
Adjusted R Square = 0.386 *p < 0.05
Relationship among Eight Servicescapes Sub-dimensions and Desire to Stay for Longer Time
Dimensions B Beta Sig.T
Ambient Conditions (Lighting and Temperature) / 0.137 0.032*
Ambient Conditions (Air Quality and Noise) / 0.152 0.017*
Spatial Layout (Layout of Rooms, Equipment, Furnishings and
Sitting Comfort) / 0.097 0.150
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Functionality(Songs) / 0.118 0.069
Functionality (Decorating System) / 0.115 0.081
Signs and Symbols (Signs) 0.258 0.229 0.000*
Artifacts (Theme Karaoke Rooms) 0.314 0.325 0.000*
Cleanliness of Servicescapes / 0.115 0.101
Adjusted R Square = 0.179 *p < 0.05
[Table 6] Relationship among Eight Servicescapes Dimensions and Dimensions of Overall
Customer Satisfaction
7.5 Correlations
According to Table 7, Customer Satisfaction had a positive relationship with Repatronage
Intention (Pearson Correlation = 0.555) and Desire to Stay for Longer Time (Pearson Correlation
= 0.439). Both of them were significant (Sig. < 0.01).
Correlation Items Pearson Correlation Sig.
Customer Satisfaction and Repatronage Intention 0.555 0.000*
Customer Satisfaction and Desire to Stay for Longer Time 0.439 0.000*
*Correlation is significant at the 0.01 level
[Table 7] Correlation between Customer Satisfaction, Repatronage Intention and Desire to
Stay for Longer Time
8 Discussions of the Findings and Analysis
On the eleven hypotheses, seven were upheld ( H1, H2a, H3a, H3b, H4, H8 and H9), and
four were not statistically significant (H2b, H5, H6 and H7). Referring to Table 5, the significant
level of all dimensions was within the range (p < 0.05) except the Decorating System in
Functionality, that was the reason why H2b was not supported. H2b, which was Functionality,
included Songs and Decorating System. The dimension of Songs played a secondly important role
in Overall Customer Satisfaction (Beta = 0.234) and had satisfy significant level (sig. = 0.000).
The significant level of Decorating System was nearly satisfied (sig. = 0.05). When combining
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both dimensions, H2a and H2b were also upheld as the significant level was satisfied.
Undoubtedly, Cleanliness influenced Overall Customer Satisfaction most and Ambient Conditions
also had a positive effect on it so that H4 and H1 were also upheld. Although the relationship of
Spatial Layout, Signs, Symbols and Artifacts were not had the strongest association with Overall
Customer Satisfaction, it still had a positive relationship effect on it and therefore, H3a and H3b
were supported.
From Table 6, H5, H6 and H7 were only partially supported since some of the dimensions
were not statistically significant. For the relationship among Perceived Quality of Servicescapes
and Customer Satisfaction, Ambient Conditions, Spatial Layout, Songs in Functionality and
Cleanliness were statistically significant. In the results of relationship among Perceived Quality of
Servicescapes and Repatronage Intention, the Lighting and Temperature in Ambient Conditions,
Songs of Functionality and Cleanliness were statistically significant. The results showed that
Cleanliness of Servicescapes (Beta = 0.500 and 0.406) influenced both Customer Satisfaction and
Repatronage Intention most and following was Songs of Functionality (Beta = 0.214 and 0.234).
A greatly different result was indicated by the relationship among the Perceived Quality of
Servicescapes and Desire to Stay for Longer Time. Ambient Conditions, Signs and Symbols and
Artifacts were statistically significant where the theme karaoke room of Artifacts influenced
customer length of staying in the karaoke box most.
H5, H6 and H7 were just partially supported because the Perceived Quality of Servicescapes
influenced entire Overall Customer Satisfaction at the same time but not only one of the
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dimensions. When combined three dimensions of Overall Customer Satisfaction, H1, H2a, H2b,
H3a, H3b and H4 were all upheld. So, further investigation about which dimension of
servicescapes affect most had been done in this research. Consistency also existed in the results
for proving H5, H6 and H7. The significant level of the most influential dimension was also
satisfied. Cleanliness of Servicescapes was the most influential dimension towards both Customer
Satisfaction and Repatronage Intention and it got a proper significant level (Sig. = 0.000). Theme
Karaoke Room of Artifacts also was a dimension which influenced customer desire to stay
intention most and with a good significant level (Sig. = 0.000). Moreover, after the dimensions of
servicescapes were further divided, there were no similar pervious research proved that the
Perceived Quality of Servicescapes must have a positive effect on the three dimensions of Overall
Customer Satisfaction. So, partially rejection of hypotheses was reasonable. Yet, it would not
affect the implications of this study even though the hypotheses were not supported.
Since H8 and H9 were supported, there was a positive relationship between Customer
Satisfaction with Repatronage Intention and Desire to Stay for Longer Time. The results showed
that the correlation between Customer Satisfaction with Repatronage Intention (0.555) was
stronger than with Desire to Stay for Longer Time (0.439).
It matched with the pervious research which suggested that customer satisfaction in turn
influenced how long customer desire to stay in the leisure service setting as well as if they
intended to repatronize the same service (Bitner, 1992; Cronin and Taylor, 1992; Wakefield et al.
1996). So, pervious research supported these hypotheses.
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9 Implications and Recommendations
9.1 Dimensions of Servicescapes
The original four dimensions of servicescapes were too general. After running the factor
analysis, four dimensions were further divided into eight dimensions and each dimension
represented one or few important servicescapes in karaoke box. Air quality and noise in Ambient
Conditions scored the highest among other dimensions. It implied that customers dissatisfy with
the air quality in Neway Karaoke Box and they also thought that it was very noisy in the room as
the sound arrester installed between the rooms were not good enough. By referring to the
demographic data, most of the customers at least stayed in the rooms for around two to three
hours, bad air quality might lessen their happiness for enjoying the services and also the noise
might cause them frustrated. Neway should put some efforts to improve this situation by the
following suggested methods:
(1) Installing air purifier in rooms for purification in stead of just installing air freshener;
(2) Staff should also clean up the rooms immediately right after customers left;
(3) Some rooms should be separated as non-smoking rooms and these rooms will never full
of tobacco smell;
(4) Rooms with different aromatherapy can be provided for customers to choose.
Aromatherapy can help people relax and enjoy their singing in rooms. However, staff
should make sure that customers like this kind of smell before assigning this kind of
rooms to them.
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Although Spatial Layout and Artifacts were ranked the fifth by the customers, it factor mean
score was 3.99. So, customers tended to neutral for the layout of rooms like number of seat was
sufficient, the table size was appropriate and the television equipment was appropriate. To see in
details, they were slightly dissatisfied with the Layout and size of rooms as well as the table size.
It pointed out that there was a room for Neway to do improvement so as to provide a convenient
condition for the customers to enjoy the service. Artifacts corresponded to theme karaoke room
also scored the fifth lowest factor mean. It illustrated that respondents were tended to have no idea
towards the Theme Karaoke Room. Most of the customers were neutral towards whether the
layout and decoration of theme karaoke room would bust their intention to sing and made them
felt happier. However, theme karaoke room greatly influenced the customer intention of staying
longer in karaoke box by referring to the results of multiple regressions. It proved that theme
karaoke room was quite successful in pleasing the customers. In this way, Neway should extend
the number of theme karaoke rooms in different branches. Variety of theme karaoke room should
be adopted as an interviewee suggested in focus group (refer to appendix Focus Group Script).
Once they have a memorable impression, they will think of Neway as they want to go to karaoke
box.
Cleanliness of servicescapes was regarded as the fourth lowest mean dimensions (3.81) in
customers mind. It illustrated that they were slight agreed that the facilities of Neway were clean.
Although they had not idea on its cleanliness of facilities but they did not think its facilities were
dirty. They believed that snacks with individual packing provided them a hygiene impression. It
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manifested that the efforts Neway did after SARS outbreak were quite good. A clean and hygiene
perception started to build up in customers mind. The individually packing nuts and snacks also
provided a hygiene impression to customers. The factor was played an essential effect on
Customer Satisfaction and Repatronage Intention. Thus, Neway should keep on doing this and
maintain the hygiene environment in every branch.
In terms of Signs and Symbols, it was the third item that customers satisfied with. They
slightly agreed that the signs shown in Neway were sufficient, clear and easily understand. Neway
should have to make some improvement so that customers would state that they were strongly
satisfied afterward.
Songs in Functionality was ranked the second satisfy dimension meaning that customers
were satisfied with the songs which Neway offered. They perceived that many songs were
provided by Neway quickly and they were quite trendy. Even though customers were satisfied
with this factor, it was not ranked high among the others. Most importantly, songs influenced both
Customer Satisfaction and their Repatronage Intention very much. Neway should alter this factor
and try to acquire the new songs more quickly. It revealed that song was a crucial element for
maintaining Neways dominant role among its competitors in the industry.
The most satisfy factors were Decorating System in Functionality and Lighting and
Temperature in Ambient Conditions. Their factor mean was 3.13 represented that customers
satisfied with these two factors. They agreed that lighting and temperature were appropriate and
the decorating system was user-friendly. Consequently, Neway should keep all the satisfy factors
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for maintaining its service quality. These dimensions contributed to a good perceived quality of
servicescapes among customers mind.
Actually, all eight dimensions affected customer satisfaction as the same time. Neway should
consider all servicescapes dimensions simultaneously for being the best Karaoke Box in Hong
Kong. Neway can follow the importance of dimensions form the research findings and
concentrate on its servicescapes step by step base on the priority. The air quality and noise
problems ought to be improved promptly. Obviously, cleanliness was regarded as the most crucial
elements associated with customer satisfaction. So, Neway should put cleanliness as a first
priority. In order to retain customers to stay longer in the karaoke box, Neway should set a plan to
redecorate its rooms as theme karaoke room. If Neway aim at increasing the repatronage rate,
cleanliness as well as the songs should be concerned. It should try to purchase more new and
trendy songs so as to attract the customers come and patronize again. It was not meaning that
other dimensions could be ignored. It rather demonstrated that if a company wanted to success, it
should utilize the limited resources and tried to gain the maximum profit as well as customer
satisfaction.
9.2 The Role of Servicescapes Play in Customer
Satisfaction
The case of Neway Kaoraoke Box provided a concrete model to see how servicescapes
affected customer satisfaction. According to the statistics, a strong correlation was formed
between the servicescapes and customer satisfaction. Most of the firms just focused on performing
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better in their intangible services. However, they forgot that servicescapes (tangible element) were
included in the services encounter and even the entire experience of the customers. At the time the
firms improving their staff quality, they neglected an important factors which were actually easy
to achieve and satisfy the customers. Servicescapes were treated as controllable factors than the
services quality perform by staff. Servicescapes, as physical evidences, always evaluate by
customers when they saw and felt it right after they entered the service setting. Bitner (1992) also
suggested that perceptions of the servicescapes might simply helped people to distinguish a firm
by affecting how it was categorized. If firm do better in servicescapes, it helps to give a good
impression to customers and their overall perception towards the services will be enhanced. In
karaoke industry, better quality of servicescapes means better customer satisfaction as customers
have to involve in the services by themselves and most of the parts are self service.
9.3 Importance of Customer Satisfaction
Customer satisfaction was very important for many businesses. This relationship had been
proved in this study. So, once customers are satisfy with the servicescapes, they will satisfy with
the overall services. Then, their repatronage intention will be enlarged and yet they will stay
longer. If a firms can remain customers to stay longer, it will have more changes to do further
business. In addition, the cost of keeping a loyal customer is cheaper than attracting a new
customer. Repatronize seems like helping the firm to reduce its cost. That is why maintaining
customer satisfaction is so important.
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9.4 Implications for Research
This study was successfully determined which servicescapes were essential for the customer
satisfaction. Details of servicescapes in each dimension were defined in various servicescapes. It
also proved that pervious construct about the relationship between servicescapes and customer
satisfaction was established and part of the hypotheses was satisfied. Hence, the conceptual
framework will be helpful for further in-depth research. As there are still some servicescapes have
not been evaluated, future research can further investigate. Likewise, the association between
servicescapes and other factors can also be studied such as customer loyalty.
10 Limitations
Even though the research seems very successful, there were still many uncontrollable factors
causing error or bias and therefore impacting the research results. These limitations were being
lessened as possible.
Firstly, in terms of the sample, a small sample size was hard to represent the opinions of the
large customer traffic (10 millions in Year 2002) of Neway Karaoke Box (Neway Karaoke Box,
n.d.a.). Besides, only 15 to 40 year old people were accepted as a respondent not only neglected
part of the karaoke box consumers opinions, but might also cause bias in the results. The
distribution of the questionnaire should be outside every branch in order to lessen the discrepancy,
but the questionnaires were just only conducted outside four branches. Moreover, judgment
sampling was carried out, the research might not representative.
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Regarding to the instrument used in this research, 7-point Likert Scale questions were used.
Central tendency problem was caused and the results might not be so representative and accurate
for indicating the problems rose. Furthermore, the questions in the questionnaires were not
followed the previous research questionnaires. The validity and reliability of the statements would
be doubt and that why factor analysis and reliability test were conducted.
Considering to the literature review, there was no pervious research done on karaoke box
servicescapes and customer satisfaction. The model creation just followed the relevant research by
extracting parts of their structure as this research model. Therefore, the three dimensions of
servicescapes including Ambient Environment, Spatial Layout and Functionality and Signs,
Symbols and Artifacts might not be so appropriate for measuring karaoke box servicescapes. Even
if some adjustment had been made in order to build up a tailor-made model for this research, not
all the servicescapes could include in the model. So, some less important servicescapes had been
excluded. Notwithstanding, the excluding servicescapes might also play an influential role in
customer satisfaction. Therefore, further study about this topic was needed in order to compensate
the defects of this study.
11 Conclusion
The dimensions of servicescapes were very useful for indicating customer satisfaction and it
also had a strong relationship with repatronage intention. Among the four major dimensions and
the sub-dimensions of servicescapes, cleanliness of servicescapes was also prominent. It used to
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remind that people perceived karaoke box as an unclean service setting. By changing the bad
perception, cleanliness environment should be maintained in karaoke box. It is worthwhile to
channel more resources for keeping the environment clean as it had a great effect on customer
satisfaction. Although there were some limitation in this research, the servicescapes model could
be further investigate and examine in the future.
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Babin, B.J., Darden, W.R. and Griffin, M. (1994), Work and/or fun: measuring hedonic and utilitarian shopping value, in Journal of Consumer Research, Vol. 20, March, pp. 644-56.
Baker, Julie (1987), The Role of Environment in Marketing Services: The Consumer Perspevtive, in The Services Challenge: Integration for Competitive Advantage, John A. Czepiel, Carole A. Congram, and James Shanahan, eds. Chicago: American Marketing Association, 79-84.
Berry, L.L. and Clark, T. (1986), Four ways to make services more tangible, in Business, October-December, pp.53-4.
Biggers, Thompson and Bert Pryor (1982), Attitude Change: A Function od the Emotion-Eliciting Qualities of Environment, in Personality and Social Psychology Bulletin, 8 (March), 94-9.
Bitner, Mary Jo (1992), Servicescape:the impact of physical surroundings on customers and employees, in Journal of Marketing, Vol.56, April, pp. 57-71.
Bitner, Mary Jo (Apr 1990), Evaluating Service Encounters: The Effects Of Physical Surroundings and Emplouee Responses, in Journal of Marketing, 54, 2; ABI/INFORM Global, pg. 69.
Booms, Bernard H. and Mary J. Bitner (1981), Marketing Strategies and Organization Structures for Service Firms, in Marketing of Services, James H. Donnelly and William R. George, eds. Chicago: American Marketing Association, 47-52. Booms, Bernard H. and Mary J. Bitner (1982), Marketing Services by Managing the Enviornment, in Cornell Hotel and Restaurant Administration Quarterly, 23 (May), 35-9. Cronin, J.J. and Yaylor, S.A. (1992), Measuring Service Quality: A Reexamination and Extension, in Journal of Marketing, Vol. 56, July, pp. 55-68. Gremler, D. and Gwinner, K.P. (2000), Customer service rapport in service relationships, in Journal of Services Research, Vol 3, August, pp. 82-104. Gronroos, Christian (1984), A Service Quality Model and Its Marketing Implications, in European Journal of Marketing, 18 (4), 36-44.
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Harrell, Gilbert D. and Jamecs C. Anderson (1980), Path Analysis of Buyer Behavior Under Conditions of Crowding, in Journal of Marketing Research, 17 (February), 45-51. Hoffman, K.D. and Bateson, J.E.G. (2002), Essentials of Services Marketing, in 2nd ed., Harcourt College Publishers, Fort Worth, TX. Langeard, Eric, John E. G. Bateson, Christopher Lovelock, and Pierre Eigler (1981), Services Marketing: New Insights from Consumers and Managers, in Marketing Science Institute, Report No. 81-104. Lewis, Barbara R (1993), Service quality measurement, in Marketing Intelligence & Planning, 11, 4; ABI/INFORM Global, pg. 4. Lewis, Barbara R, Service quality measurement, in Marketing Intelligence & Planning; 1993; 11, 4; ABI/INFORM Global, pg. 4. Lovelock. C.H. and Wright, L.K. (1999), Principles of Services Marketing and Management, in Prentice Hall, Upper Saddle River, NJ. Maslow, A. L. and N. L. Mintz (1956), Effects of Esthetic Surroundings, in Journal of Psychology, 41 (April), 247-54. Parasuraman, A, Zeithaml, V. A., & Berry, L. L. (1985), A conceptual model of service quality and its implications for future research, in Journal of Marketing, 49 (Fall), 41-50. Parasuraman, A, Zeithaml, V. A., & Berry, L. L. (1988), SERVQUAL: A. multiple-item scale of measuring consumer perceptions of service quality, in Journal of Retailing, 64 (1), 12-37. Parasuraman, A, Zeithaml, V. A., & Berry, L. L. (1994), Alternative scales for measuring service quality: A comparative assessment based on psychometric and diagnostic criteria, in Journal of Retailing, 70 (3), 193-199. Price, L.L., Arnould, E.J. and Tierney, P. (1995), Going to extremes: managing service encounters and assessing provider performance, in Journal of Marketing, Vol. 59, April, pp. 83-97. Rapoport, Amos (1982), The Meaning of Built Environment, in Sage Publications, Beverly Hills, CA.
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Shostack, G. Lynn (1977), Breaking Free Form Product Marketing, in Journal of Marketing, 41 (April), 73-80. Shostack, G. Lynn (1984), Designing Services That Deliver, in Harvard Business Review, 62 (January-February), 133-9. Shostack, G. Lynn (1985), Planning the Service Encounter, in The Service Encounter, John A. Czepiel, Michael R. Solomon, and Carol F. Surprenant, eds. New York: Lexington Books, 243-54. Shostack, G. Lynn (1987), Service Positioning Through Structural Change, in Journal of Marketing, 51 (January), 34-43. Shostack, G.L. (1977), Breaking free form product marketing, in Journal of Marketing, Vol. 41, April, pp. 73-80. Shu Tian-Cole; John L Crompton; Victor L Willson, An empirical investigation of the relationships between service quality, satisfaction and behavioral intentions among visitors to a wildlife reguge, in Journal of Leisure Research, First Quarter 2002, 34, 1, ABI/INFORM Global, pg. 1. Solomon, M.R. (1985), Packaging the service provider, in Service Industries Journal, Vol. 5, July, pp.64-71. Solomon, Michael R., Carol Suprenant, John A. Czepiel, and Evelyn G. Gutman (1985), A Role Theory Perspective on Dyadic Interactions: The Service Encounter, in Journal of Marketing, 49 (Winter), 99-111. Suprenant, C. and M.Solomon, 1987, Predictability and Personalization in the Service Encounter, in Journal of Marketing, Vol.51 (April), pp.86-96. Taylor, S.A., Sharland, A., Cronin, J.J. Jr. and Bullard, W. (1993), Recreational service quality in the international setting, in International Journal of Service Industry Management, Vol. 4 No. 4, pp. 68-86.
Turley, L.W. and Fugate, D.L. (1992, The multidimensional nature of services facilities: viewpoints and recommendations, in Journal of Services Marketing, Vol. 6, Summer, pp. 37-45.
W K Chow; Gigi C H Lui (2002), Fire safety facilities assessment for karaokes, in Facilities, 20, 13/14; ABI/INFORM Global, pg. 441.
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Wakefield, Kirk L., Blodgett, Jeffrey G. (1996), The effect of the servicescape on customers' behavioral intentions in leisure service settings, in The Journal of Services Marketing, Santa Barbara, Vol.10, Iss. 6; pg. 45. Westbrook and Richard L. Oliver (1981), Developing Better Measures of Consumer Satisfaction: Some Preliminary Results, Advances in Consumer Research, 9, 94-9. Woodhouse Emma (2004), A Measure of Service Quality of Leisure Club, in Honours Degree Project of Hong Kong Baptist University. Zeithaml, V.A. and Bitner, M.J. (1996), Services Marketing, in McGraw-Hill, New York, NY. Neway Karaoke Box, Company Overview, (n.d.a.), Retrieved at 19-12-2004, from http://www.newaykb.com/. Karaoke Scene Magazine, History of Karaoke, (n.d.a.), Retrieved at 26-12-2004, from http://www.karaokescene.com/history/.
http://0-proquest.umi.com.hkbulib.hkbu.edu.hk/pqdweb?index=10&did=117541849&CSP=1676&SrchMode=1&sid=2&Fmt=3&VInst=PROD&VType=PQD&RQT=590&VName=PQD&TS=1103789838&clientId=18405http://0-proquest.umi.com.hkbulib.hkbu.edu.hk/pqdweb?index=10&did=117541849&CSP=19697&SrchMode=1&sid=2&Fmt=3&VInst=PROD&VType=PQD&RQT=590&VName=PQD&TS=1103789838&clientId=18405http://0-proquest.umi.com.hkbulib.hkbu.edu.hk/pqdweb?RQT=318&pmid=14339&TS=1103789838&clientId=18405&VType=PQD&VName=PQD&VInst=PRODhttp://www.newaykb.com/http://www.karaokescene.com/history/
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APPENDIX
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Figure 1 Typology of Service Organizations Based on Variations in Form and Usage of the Servicescape by Bitner 1992
Figure 2 Framework for Understanding Environment-User Relationships in Service Organizations by Bitner 1992
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Figure 3 Servicescape Typology by Wakefield and Blodgett 1994
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uality of Servicescapes = Ambient Conditions + Spatial Layout and Functionality +
verall Customer Satisfaction = Customer Satisfaction + Desire to Stay for Longer Time +
igure 4
ized Model
Perceived Quality of
Servicescapes
Remarks: Perceived Q
Signs, Symbols and Artifacts + Cleanliness of Servicescapes
ORepatronage Intention
FHypothes
Ambient Conditions Lighting
e
Temperatur
Air quality
Noise
Signs, Symbols and Artifacts
Signs
Theme karaoke
rooms
Spatial Layout and Functionality
yout of rooms La
t
Equipment
Furnishings
Sitting comfor
Songs
Decorating System
Overall Customer
Satisfaction
Desire to Stay for Longer Time
Repatronage Intention
Customer Satisfaction
Cleanliness of Servicescapes
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Questionnaire
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Survey of Neway Karaoke Box Facilities Hello! I am Year Three student from the BBA Marketing option of Hong Kong Baptist
niversity. I would like to conduct a survey on the customer satisfaction in terms of karaoke box cilities and hope that your valuable opinions are involved. All of your valuable opinions will
nly be used for academic analysis. Thank you!
. Have you been to Neway Karaoke Box? Yes
2. How many tim
Less than an 4 times 3. Which time slot does you mostly patronage Neway Karaoke Box?
Lunch (10:00-14:00) Happy Hour (14:00-18:00) Dinner (18:00-00:00) Mid-night (00:00-06:00)
4. How long did you stay in karaoke box averagely in every patronage?
Less than 1 hour 1-2 hours 2-3 hours 3-4 hours More than 4 hours
Please state your opinion towards Neway Karaoke Box facilities according to your experience. (1 represents strongly agree and 7 represents strongly disagree)
Strongly agree Strongly disagree 05. Temperature of lobby is appropriate 1 2 3 4 5 6 7
Ufao 1
No (End of questionnaire)
es did you patronage averagely in a month of the nearly year? 1 time 1-2 times 3-4 times More th
06. Temperature inside the rooms is appropriate 1 2 3 4 5 6 7 07. Sufficient lighting in lobby 1 2 3 4 5 6 7 08. Sufficient lighting in rooms 1 2 3 4 5 6 7 09. Button for adjusting lighting in rooms helps to enhance the atmosphere
1 2 3 4 5 6 7
10. Air quality is bad in rooms 1 2 3 4 5 6 7 11. Rooms are always full of tobacco smell or odor 1 2 3 4 5 6 7 12. Insufficient sound arrester among rooms 1 2 3 4 5 6 7 13. Size of room assigned is large enough for the numbers of customers
1 2 3 4 5 6 7
14. Layout of rooms is convenient to customers 1 2 3 4 5 6 7 15. Table size and height inside the rooms is appropriate 1 2 3 4 5 6 7 16. Leaflet standees occupy large part of the table 1 2 3 4 5 6 7 17. Household utensil for containing food occupy large part of 1 2 3 4 5 6 7
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the table 18. Seats in rooms are very comfortable 1 2 3 4 5 6 7 19. Sufficient seats inside the rooms 1 2 3 4 5 6 7 20. Size of television screen inside the rooms is appropriate 1 2 3 4 5 6 7 21. Tone quality of microphones is good 1 2 3 4 5 6 7 22. I can control the level of microphones volume or echo easily 1 2 3 4 5 6 7 23. Microphone cables always intertwist and block the way 1 2 3 4 5 6 7 24. Decorating system is user-friendly 1 2 3 4 5 6 7 25. 1 2 3 4 5 6 7 Remote control is user-friendly 26. Computer games in decorating system entertain me 1 2 3 4 5 6 7
. 5 6 7 27 Varity of songs for me to choose 1 2 3 428. le k New songs are availab quic ly 1 2 3 4 5 6 7 29. Many new songs 1 2 3 4 5 6 7 30. New songs are trendy 1 2 3 4 5 6 7 31.info
Posters post in lobby and corridor offer me the most updated rmation about new songs
1 2 3 4 5 6 7
32. Price list shows in lobby let me knows the fees clearly 1 2 3 4 5 6 7 3 4 5 6 7 33. Sufficient signs / route signs (e.g. Toilet signs) 1 2
34. Signs / route signs can be easily understand 1 2 3 4 5 6 7 35. 1 2 3 4 5 6 7 Sufficient washrooms 36. Layout of theme karaoke rooms rise my intention to sing 1 2 3 4 5 6 7
37. Layout of theme karaoke rooms make me sing happier 1 2 3 4 5 6 738. Nuts and snacks pack individually provides me a hygiene impression
1 2 3 4 5 6 7
39. Corridor is clean and hygiene 1 2 3 4 5 6 7 40. Facilities inside the rooms are clean and hygiene 1 2 3 4 5 6 7
Please state your satisfaction level towards Neway Karaoke Box. (
Strongly disagree xcellent
1 represents strongly agree and 7 represents strongly disagree) agree Strongly
41. I think Neway facilities are e 1 2 3 4 5 6 7 42. I am satisfied with the facilities of Neway 1 2 3 4 5 6 7 43. My confident towards Neway is enhanced by its facilities 1 2 3 4 5 6 7 44. My satisfaction level towards Neway is largely affected by its facilities
1 2 3 4 5 6 7
45. Neway facilities disappoint me 1 2 3 4 5 6 7 46. The experience of patronage Neway is exactly what I need 1 2 3 4 5 6 7 47. I truly enjoy singing karaoke in Neway 1 2 3 4 5 6 7 48. I intent to stay for longer time in Neway Karaoke Box 1 2 3 4 5 6 7
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y Karaoke Box is the best choice for consuming time 1 2 3 4 5 6 7 49. Newa50. I will repatronage Neway Karaoke Box 1 2 3 4 5 6 7 51. I will patronage Neway Karaoke Box more frequently 1 2 3 4 5 6 7 52. I will think of Neway when I want to go to karaoke box 1 2 3 4 5 6 7 53. It is a wrong choice of patronage Neway Karaoke Box
5
le 5
5 years old 26-30 ye o years old
5 ncome?
-$ ,0 $18,001-$22,000
aluable opinions End of Questionnaire
1 2 3 4 5 6 7
4. What is your gender? Male Fema
5. What is your age? 15-20 years old 21-2 ars ld 31-35 years old 36-40
6. What is your monthly i $2,000 or below $2,001-$6,000 $6,001 $10,001-$14,000 $14,001-$18,000
10 00
More than $22,000
Thanks for your v
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O
OK ()
. 1-2 3-4 4
3.
(10:00-14:00) (14:00-18:00) (00:00-06:00)
4.
-2 2-3 3-4 4
Neway OK ( 1 7 )
05. 1 2 3 4 5 6 7
Neway OK
K
1. Neway
2 1
Neway OK (18:00-00:00)
OK 1 1
06. 1 2 3 4 5 6 7 07. 1 2 3 4 5 6 7 08. 1 2 3 4 5 6 7 09. 1 2 3 4 5 6 7 10. 1 2 3 4 5 6 7 11. 1 2 3 4 5 6 7 12. 1 2 3 4 5 6 7 13. 1 2 3 4 5 6 7 14. 1 2 3 4 5 6 7 15. 1 2 3 4 5 6 7 16. 1 2 3 4 5 6 7 17. 1 2 3 4 5 6 7 18. 1 2 3 4 5 6 7 19. 1 2 3 4 5 6 7 20. 1 2 3 4 5 6 7 21. 1 2 3 4 5 6 7
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22. (ec ho) 1 2 3 4 5 6 7 23. 1 2 3 4 5 6 7 24. 1 2 3 4 5 6 7 25. 1 2 3 4 5 6 7 26. 1 2 3 4 5 6 7 27. 1 2 3 4 5 6 7 28 . 1 2 3 4 5 6 7 29. 1 2 3 4 5 6 7 30 . 1 2 3 4 5 6 7 31. 5 6 7 1 2 3 4 32. 1 2 3 4 5 6 7
. 1 2 3 4 5 6 7 33 / (e.g.) 34. / 1 2 3 4 5 6 7 35. 4 5 6 7 1 2 3 36. OK 1 2 3 4 5 6 7
. 1 2 3 4 5 6 7 37 OK 38. 1 2 3 4 5 6 7 39. 1 2 3 4 5 6 7 40. 1 2 3 4 5 6 7
( 1 7 )
Neway OK
41. Neway 1 2 3 4 5 6 7 42. Neway 1 2 3 4 5 6 7 43. Neway 1 2 3 4 5 6 7 44. Neway 1 2 3 4 5 6 7 45. Neway 1 2 3 4 5 6 7 46. Neway 1 2 3 4 5 6 7 47. Neway OK 1 2 3 4 5 6 7 48. Neway OK 1 2 3 4 5 6 7 49. Neway OK 1 2 3 4 5 6 7 50. Neway OK 1 2 3 4 5 6 7 51. Neway OK 1 2 3 4 5 6 7 52. OK Neway 1 2 3 4 5 6 7 53. Neway OK
5
1 2 3 4 5 6 7
4.
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5 26-30
36-40 5
$2,001-$6,000 $6,001-$10,000 $14,001-$18,000 $18, - ,0 22 0
5. 15-20 21-25 31-35
6. $2,000 $10,001-$14,000 001 $22 00 $ ,00
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SPSS Output
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1. Factor Analysis on Servicescapes
KMO and Bartlett's Test
.735
2500.798351
Kaiser-Meyer-Olkin Measure of SamplingAdequacy.
Approx. Chi-Squaredf
Bartlett's Test of
Sig. .000
Sphericity
Total Variance Explained
5.976 22.135 22.135 5.976 22.135 22.135 3.124 11.569 11.5692.757 10.211 32.346 2.757 10.211 32.346 2.995 11.094 22.66