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Service quality evaluation in a service and trading company with the use of servqual method

Introduction

Dynamic growth of service companies determines continually increasing competition between entities in this sector and mobilizes company owners to analyze the quality of services they render. It is by no means an occasional nor one-off action, but it aims to systematically evaluate client's satisfaction. Service provider is aware that a customer who found satisfaction once will return again and is not only a walking advertisement of the company, but more importantly a credible advertisement for their friends. Such a customer is a foundation on which one may build and develop one's business activity, becoming not just a competitor to others, but also a leader in one's sector.

Service characteristics

Since both the literature of the subject and service providers themselves understand the notion of service ambiguously, it is worth quoting several terms for the idea. All the more so that ISO 9000:2000 standard describes it as one of the categories of a product or a result of a process. PN-EN ISO 9000: 2001 Systemy zarz№dzania jakoњci№. Podstawy i terminologia. The definition that seems to be more accessible, although not entirely precise specifies a service as: “appropriately directed, useful activity of a person (or a team of people) satisfying a specific social need, not producing any material object.” Kolman R., B. Pytko, K. Siedlikowski, Wpіyw jakoњci usіug na jakoњж firmy,Problemy Jakoњci 2004, nr 2, s.22. And yet, small and large catering facilities also provide services preparing and serving, often with great craftsmanship, splendid food.

One of the first definitions of a service was formulated by O. Lange, who claimed that services are: “all actions related directly or indirectly to satisfying human needs, but not aimed directly at manufacturing of objects

In Management and Finances Dictionary we find service as: “business activity involving delivering to the market something valuable that is of immaterial nature or that changes a product.” Koch R., Sіownik Zarzadzania i Finansow. Narzedzia, terminy, techniki od A do Z, Wydawnictwo Profesjonalnej Szkoly Biznesu, Krakуw 1997, s. 270.

Despite difficulties in providing an unequivocal definition of a service, customers expect business entities to provide adequate level of service, i.e. one that would meet their expectations Servqual, CIT and CSI are methods which are very

Method

Servqual is the most developed method of service quality measurement. Created in 1983-1985 by A. Parasurman, V.A. Zeithalm and L. Berry, it is increasingly used by entrepreneurs for the assessment of services they render. Basically, the method measures a difference between the service that a customer expects and receives. The relation is reflected in an equation:

Where:

Q - actual service quality evaluation made by a customer,

P - result of perception of service quality,

E - customer's expectations in relation to a service.

In a process of manufacturing a product, in this case a service, three situations may occur when the process of service performance:

- satisfies customer's expectations P=E,

- is incompatible with customer's expectation P>E,

- exceeds customer's expectations P<E.

In order to measure buyers' expectations and their evaluation, the method creators prepared a special survey brochure. They differentiated five criteria of greatest importance to clients:

- material elements of service include external appearance and decoration of a room, appearance of personnel and communication materials,

- reliability or ability to fulfill promises, thus performance or providing of a service in time specified in an agreement in a reliable and precise manner,

- ability to react involves employees' willingness to help in every situation,

- confidence entails demonstration of knowledge, qualifications and politeness by personnel as well as building trust among customers,

- empathy is care offered to each customer individually. K. Rogoziсski, Nowy marketing usіug, SGH, Warszawa 2002, s. 207.

These criteria were then described with 22 sentences and respondents were asked to evaluate these criteria twice according to a seven-grade Likert's scale.

The first part of the survey was to evaluate an expected service, while the second part - a service received. The third part of the survey concerned the degree of importance assigned to each of the elements and it involved dividing 100 among the

five enumerated criteria. Applying Servqual method enables to assess differences between a service expected by customers and the actual quality of the service they receive. Research of this type conducted continually allows to spot changes in customers' expectations and their perception of services. It is a method that measures service quality chiefly from the perspective of a customer. A. Czubaіa, J.W. Wiktor, Marketing usіug-teoria i praktyka , WSPiM w Chrzanowie 2002, s.80.

Service quality analysis with Servqual method

Evaluation and analysis of service quality in “Spoіem”, a service and trading company, was conducted for two facilities located in Szczecin in the period from October to December 2006. Servqual method was used for that purpose, and for a better, graphic representation of results, they were shown as histograms. R. Wolniak, E. Kostorz, Wykorzystanie metody Servqual do badania jakoњci usіug њwiadczonych przez stacje benzynowe, Problemy Jakoњci 2004, nr 12, s. 41.

The method allows to evaluate five dimensions to a service which can be analyzed and assessed by a customer. The dimensions determining service quality at stores are specified in Table 1.

Table 1. Measurements determining service quality

Source: own preparation on the basis of A. Bednarska, research on quality of service in a selected service trade company, an engineer's thesis, FETE MU in Szczecin 2007, unpublished material.

A survey questionnaire was created for service quality evaluation. The survey was carried out in three segments of services on a sample of 50 people. The first survey, comprising 19 questions, aimed at analyzing customers' expectations. The people surveyed were asked to describe perfect services in a “Spoіem” store according to a scale from 1 to 7. The second survey, also comprising 19 questions, analyzed the perception of available services. Additionally, a list of five dimensions specifying service quality was attached to the survey and the respondents were asked to award them points on the scale from 1 to 100.

The first survey includes a datum from each pair and it is essential for measuring the level of service performance expected by a customer. It is an attempt to measure the expected level of service quality. The second survey of measurement includes the remaining data and it is necessary for measuring the level of service performance. It is used for evaluating a service perceived at the time of its performance. From the differences of points, which were determined between corresponding pairs, service quality measures were specified as a result.

After adding up all the values and dividing them by the number of survey participants, we arrived at a result of general SQ value. Partial SQ results were obtained by adding up all the values, taking into account the characteristics, and then the dividing them by their average grade.

Table 2 shows the hierarchy of the importance of characteristics in services rendered by a store. It demonstrates a contribution of each of the five characteristics expressed in percentages in the general service quality evaluation. Thanks to this, it is

possible to learn how quality is perceived by buyers, and to learn what criteria customers apply in evaluating a service.

Table 2. Criteria for the importance of characteristics of the quality of services rendered in “Spoіem”

Source: own preparation on the basis of A. Bednarska, research on quality of service in a selected service trade company, an engineer's thesis, FETE MU in Szczecin 2007, unpublished material.

The research was conducted on people of various ages, 10 persons from each age band:

1. 1-18 years old,

2. 18-30 years old,

3. 30-45 years old,

4. 45-60 years old,

5. 60-99 years old.

The respondents' group was comprised of buyers, who had used „Spoіem” services at least once. The analysis of respondents' age groups demonstrated which of the groups analyzed used the company services most frequently, fig. 1. This information will enable to better direct promotional and pro-quality activities of the company, because each age group applies different criteria in evaluating the operation of the entire organization.

Fig. 1. Frequency of using “Spoіem” services by given age groups

Source: own preparation on the basis of A. Bednarska, research on quality of service in a selected service trade company, an engineer's thesis, FETE MU in Szczecin 2007, unpublished material.

Partial indicators merited the best results, fig. 2, which concerned empathy (0.412) and confidence in service performance (0.231). It is a satisfactory result, since people surveyed ranked the confidence of service as the

most important element and empathy as the fourth-ranking element. Promptness of reaction and service performance obtained a slightly lower result, only 0.02, while the worst results were demonstrated for reliability (-0.287) and material service performance (-0.07).

Fig. 2. Partial results of quality dimensions

Source: own preparation on the basis of A. Bednarska, research on quality of service in a selected service trade company, an engineer's thesis, FETE MU in Szczecin 2007, unpublished material.

Fig. 3 presents divergence of evaluation expressed in points for service quality in a store and the level of customers' expectations. People coming to the store valued reliability as the most important element. An average expected grade is 7, while an average grade of perception of quality service in a store is exactly 6.7, where 1 - means lack of conformity, and 7 - means complete conformity.

Fig. 3. Divergence of the level of expectations and the degree of their fulfillment

Source: own preparation on the basis of A. Bednarska, research on quality of service in a selected service trade company, an engineer's thesis, FETE MU in Szczecin 2007, unpublished material.

People surveyed were convinced that only approaching customers with respect satisfies their expectations (E=P), which means that quality is at a suitable level.

Other criteria, such as rendering services in time or their correct performance at the first attempt, differ substantially from buyers' expectations. The worst indicator occurred to be handling of issues within promised time, since 48% of buyers awarded a grade lower than 7.

Also the dimension of performing a service correctly at the first attempt, similarly to the preceding case, did not entirely meet customers' expectations. However, the statistics here are more optimistic, because 625 of respondents awarded a grade of 7.

The merit high grades either was material service performance. In this category the devices which were to facilitate the work of personnel were evaluated the lowest (-0.42), and then personnel's neat appearance (0.19). Yet, it must be emphasized that customers paid the least attention to this criterion (10%). Dimensions relative to advertising newsletter quality constitute an exception here. Customers found them to be attractive, functional and useful. They awarded them the value of 0.2, which means that advertising newsletters exceed buyer's expectations. According to the people surveyed promotional brochures provide them with necessary information on promotions available in a store, addresses and products, etc.

Another dimension which merited a negative assessment is promptness of reaction ( 0.008). Criterion of confidence received a positive value (0.078), which may prove that buyers have significant trust in “Spoіem” company and that the company offers them individual treatment.

The dimension regarding employees' politeness towards customers obtained the highest value (0.43). Such a high opinion results from relatively low expectations of customers regarding this quality dimension. Only 70% of the persons surveyed awarded a grade of 7 to this criterion.

Empathy was valued the highest (0.321), which signifies that employees care for individual needs of customers. We speak here of dimensions related to employees' care for a customer and understanding of customer's individual needs. The dimensions concerning store's opening hours obtained a value of 1.24.

This high mark is earned thanks to convenient locations of stores in the largest streets in Szczecin.

Having carried out detailed analyses, one may conclude that the quality of service offered by “Spoіem” company is satisfactory. The Servqual method applied here demonstrates that services meet customers' expectations. Despite the fact that the general SQ indicator gave a negative result, still the dimensions of greatest importance to customers - empathy and confidence (partial results) obtained positive results. This constitutes proof of trust that customers have in “Spoіem” stores. Only a certain number of negative results may be a cause for concern as to service quality. However, these are such minor faults that the company will have no problems eliminating them, e.g. it may start cooperation with new, more reliable suppliers, who are able to react more promptly. The research has shown that the company enjoys a positive image in the eyes of its customers, and that is surely the most important criterion that guides the company's operations.

Conclusion

Servqual is a very popular method for measuring quality of services, still there are numerous disputes and charges laid against the method. The survey itself is found to be controversial, since a concern arises whether customers will be able to tell the difference between expected and received quality. Moreover, critics also prove that claims included in the survey questionnaire may carry various meanings to different people. A rather substantial number of questions may discourage respondents from participation in the test of service quality and simultaneously it may limit the right expression.

Nevertheless, it is a method that can be applied both in the case of a service and production company. It ought to be used as a measurement tool in every major organization which cares for and pays attention to the satisfaction of its clients.

Even though 59 Spoіem stores currently operate in Szczecin, the obtained results may serve as representative results for all the stores in all of Szczecin.

References

1. PN-EN ISO 9000 :2001 Systemy zarz№dzania jakoњci№. Podstawy i terminologia.

2. Kolman R., B. Pytko, K. Siedlikowski, Wpіyw jakoњci usіug na jakoњж firmy, Problemy Jakoњci 2004, nr 2.

3. Lange O., Ekonomia polityczna, Warszawa 1967, t.1.

4. Koch R., Sіownik Zarz№dzania i Finansуw. Narzкdzia, terminy, techniki od A do Z, Wydawnictwo Profesjonalnej Szkoіy Biznesu, Krakуw 1997.

5. Payne A., Marketing usіug, Warszawa 1997.

6. Karaszewski R.: TQM teoria i praktyka. TNOiK Dom Organizatora, Toruс 2001.

7. Rogoziсski K., Nowy marketing usіug, SGH, Warszawa 2002.

8. Czubaіa A., J.W. Wiktor, Marketing usіug-teoria i praktyka, WSPiM w Chrzanowie 2002.

9. Wolniak R., Kostorz E., Wykorzystanie metody Servqual do badania jakoњci usіug њwiadczonych przez stacje benzynowe, Problemy Jakoњci 2004, nr 12.

10. Kostorz E., Wykorzystanie metody Servqual do badania jakoњci usіug њwiadczonych przez stacje benzynowe , Problemy Jakoњci 2002, nr 9.

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