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An Empirical Study on Chinese Express Industry with SERVQUAL

An Empirical Study on Chinese Express Industry with SERVQUAL. Zhuo, Jun Shin, Geon-Cheol Xue, Ricky Miao, Sheng Tao Lee, Min-Jung Hu, Xiaoling . Introduction. Literature review. Abstract. Limitation and future research. Research methodology. Research result and analysis.

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An Empirical Study on Chinese Express Industry with SERVQUAL

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  1. An Empirical Study on Chinese Express Industry with SERVQUAL Zhuo, Jun Shin, Geon-Cheol Xue, Ricky Miao, Sheng Tao Lee, Min-Jung Hu, Xiaoling

  2. Introduction Literature review Abstract Limitation and future research Research methodology Research result and analysis Managerial implications Contents

  3. Abstract • What about SERVQUAL? • An instrument to measure service quality Introduce by Parasuraman, Zeithaml and Berry (PZB) • The Gap Theory (compare consumer’s perception of service with their expectation of service) • Five principal quality dimensions (Tangibility, Reliability, Responsiveness, Assurance, Empathy) Key words: Express industry, Service quality, PZB, SERVQUAL

  4. 1. Introduction • The China’s logistics industry • The Chinese logistics market grew by 24% in 2005 to reach a value of $81.4 billion. • The compound annual growth rate of the market in the period 2001-2005 was remarkable 22.6%. • Express logistics (grow even quicker) • Objectives • In hope to provide knowledge about how to measure customer perceived quality in the international express service in China. • It’s also hoped that the study in the target organization could provide a reference to China local express providers- they can therefore compare and benchmark.

  5. Two Models Development of service quality concept PZB’s Gap model The PZB model provided a framework for service quality study. Christian Cronroos’ service quality model First time introduced the model of “customer perceived service quality” in a systematic way which signaled a very important milestone in service quality definition and service management science. 2. Literature review of service quality

  6. 2.2 Dimensions and measurement of perceived service quality (SERVQUAL) Perceived quality vs. expectation of service 2.5 2.4 Perceived quality and customer retention 2.3 Conclusion of literature review 2. Literature review of service quality It’s supported that the gap model to assess the discrepancy of customers’ expectation and actual perception of service has been well established. PZB’s SERVQUAL instrument is still a reliable and valid tool to assess a firm’s service quality and to identify quality dimensions.

  7. 3.1 3.2 3.3 The steps to the research Research design and the survey instrument Sampling and data collection method 3. Research methodology

  8. 3.1 The steps to the research • The research starts from a review of previous writings and publishes on service quality, the dimensions of service quality and its measurement. • Then, the questionnaire was dispatched to subjects of research. • Data analysis will follow to check its reliability, validity and factor structure. • At the end of the paper limitation and constraints were identified.

  9. 3.2 Research design and the survey instrument • The research was conducted base on the disconfirmation model of perceived quality. • The skeleton of PZB’s SERVQUAL was adopted as backbone of the questionnaire. • Besides, PZB’s refinements in 1991 were also considered for better reliability and validity.

  10. 3.3 Sampling and data collection method • Sampling method • The survey population was defined as shipper firms which have used FedEx service at least once during the recent month prior to survey date in Hang Zhou and surrounding sub-districts where are served by FedEx (China) Co. Hang Zhou branch. • We pulled out totally 4320 customers who have sent at least one shipment via FedEx in recent month, and a Systematic Sampling method was applied, every 7th was selected as survey sample in every 10 customers, namely 7th, 17th, 27th, 37th and so on, so totally we made 432 samples.

  11. 3.3 Sampling and data collection method • Data collection • Finally, we got 81 valid feedbacks from respondents. • Mean of value of expectation and perception of service were computed.

  12. 4 Research result and analysis • 4.1 Factor analysis • The factor analysis was performed to examine the dimensionality of the SERVQUAL instrument that we adapted for international express service in China. Tab.4.1KMO and Bartlett’s test

  13. Tab.4.2 Eigenvalue

  14. 4.2 Reliability analysis Reliability is the consistency of a measure. This includes 2 elements, external reliability and internal reliability. The scale has good to excellent reliability. Therefore, the instrument could be regarded as high internal consistent.

  15. 4.3 Validity analysis 4.3.1 Content validity • The traditional five dimensions of SERVQUAL instrument were well established and were discussed with senior managers and experts to check the suitability of application in express industry and were pilot-tested in this study. • Therefore, we are confident that the instrument adequately measured how customers perceived service quality in China international express industry. • The content of the instrument content should be regarded to be valid.

  16. Q1 7.16 8.10 Q2 0.69 8.22 Q3 0.72 8.12 Q4 0.68 8.25 Reliability (Overall Cronbach alpha=.856) Q5 0.82 0.79 Q6 0.57 0.85 Q7 0.62 0.84 Q8 0.62 0.84 Q9 0.74 0.81 Responsiveness (Overall Cronbach alpha=.829) Q10 0.57 0.84 Q11 0.75 0.75 Q12 0.75 0.75 Q13 0.62 0.80 Assurance (Overall Cronbach alpha=.904) Q14 0.90 0.84 Q15 0.82 0.86 Q16 0.62 Q17 0.87 0.85 Empathy (Overall Cronbach alpha=.902) Q18 0.78 0.88 Q19 0.81 0.87 Q20 0.56 Q21 0.89 0.85 Q22 0.77 0.88 4.3.2 Construct validity • The construct validity could be measured through Convergent validity and Discriminant Validity. All in all, it could suggest the construct validity of the adapted SERQUAL was adequate.

  17. 4.3.3 Predictive validity Tab. 4.6 Correlations between overall score and OSQ Correlations

  18. 5 Managerial implications • 5.1 Quality dimension and service attributes in express industry • The SERVQUAL instrument to evaluate the customer perceived quality was conducted in present study. • And the suggested five service quality dimensions were verified and confirmed as present to the international express industry. • The five quality dimensions have provided a more focus and more manageable framework or yardstick on service quality for the marketers.

  19. 5.2 Importance of quality dimensions Tab.5.1Mean of importance First invest to improve their reliability , then assurance and responsiveness, lastly empathy and tangibility.

  20. 5.3 Assess the service quality level • All items’ average score were negative, which means there was gap between customers perceived quality and customers expected service when assess the target service firm. • It seems that the customers assess the perceived reliability as most favorable while empathy as the most unfavorable. • The SERQUAL was suggested by PZB should be conduct periodically to track how customers perceived the company’s service quality.

  21. 5.4 Correlation of service quality and customer retention Tab.5.2 Correlation between overall score, OSQ and retention

  22. Geographically confined 1 8 Customer satisfaction The sample population 2 Service quality varies from time to time The customer future intention 7 3 6 4 Segmentation by various demographic criteria Chinese version instrument 5 According to different level of SERVQUAL scores 6. Limitation and future research LAFR

  23. [1]… [2]… [3]… [4]… [5]… References And so on……

  24. Thank You ! E-mail:zju-zhuojun@163.com mstbj@163.com

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