Service Quality
Service Quality
Service Quality
Abstract
This thesis is discussing and analysing expectations and perceptions about service quality in
Destination Gotland. The aim is to analyze and research about the role of service quality for
creating customer satisfaction and we want to find out the gap between expectations and
perceptions through the customers point of view. The difference between expectations and
perceptions can be described as satisfaction or lack of satisfaction. The specific questions that
are researched in this thesis are:
1. What expectations does customer have on Destination Gotlands service quality to
become satisfied?
2. What perceptions does customer have about the service quality at Destination
Gotland?
3. What are the differences between expectations and perceptions (gap 5 in the
SERVQUAL-model)?
The survey is constructed as a case-study and is based on the quantitative method. The results
from the different dimensions show that there is a gap between expectations and perceptions
which means that the customers are not fully satisfied about the service quality at Destination
Gotland. On the other hand, the main respondents said yes on the question if they think the
service meet their expectations. From the overall result in the statements we can see that there
are several gaps between expectations and perceptions which means that the service quality
do not fully meet the expectations. The result shows a total gap at -0,39.
Acknowledgements
First of all we would like to say thank you to our classmates, friends and participants in the
seminar groups that gave us support and good comments about how we could improve our
thesis. Your help has been very important for completing the thesis and motivating us when
we felt hopeless and bored. We are also thankful to Ingrid Hallberg and Loes Portier-Lenglet
that gave attention to our questionnaire and pointed out some mistakes.
Another thank you goes to our parents and other family members who gave us inspiration and
support to work hard.
Finally we would also like to direct a special thank you to our supervisor, Bo Lennstrand. We
are very grateful for his guidelines and help for identifying problems. Sometimes we were late
in our understanding of his directions and feedback but in the end we finally understood
perfectly. We realized exactly what he meant and followed what he told us. In the end
everything turned out well.
Visby 10-05-31
Therese Carlsson
List of content
2
1. Introduction .......................................................................................................................... 4
1.1 Background ...................................................................................................................... 5
1.2 Problematization............................................................................................................... 6
1.3 Research questions and aim ............................................................................................. 7
1.4 Disposition ....................................................................................................................... 8
2. Research design .................................................................................................................... 8
2.1 Case-study ........................................................................................................................ 9
2.1.1 Limitations ................................................................................................................ 9
2.2 Sample of population ....................................................................................................... 9
2.3 Research method ............................................................................................................ 10
2.3.1 Process ..................................................................................................................... 10
2.3.2 Questioner structure ................................................................................................ 10
2.4 Research approach .......................................................................................................... 11
2.5 Method of analysis ......................................................................................................... 12
2.6 Chapter summary ........................................................................................................... 12
3. Theoretical background ..................................................................................................... 13
3.1 The concept of service quality ....................................................................................... 13
3.1.1 Different perspective of service quality .................................................................. 15
3.1.2 Service-based Component of Quality...................................................................... 16
3.2 Customer expectations ................................................................................................... 17
3.3 Perceived service quality ................................................................................................ 19
3.4 The relationship between customer expectations, perceptions and satisfaction ............ 21
3.5 Capturing the Customers Perspective of Service Quality- SERVQUAL MODEL ...... 22
3.6 Chapter Summary ........................................................................................................... 24
4. Analysis of customer service quality in reality ................................................................ 26
4.1 General information ....................................................................................................... 26
4.1.1 Respondent demographics ....................................................................................... 26
4.2 Service quality- all respondents ..................................................................................... 27
4.2.1 Service Quality - total ............................................................................................. 27
4.2.2 Each SERVQUAL feature ...................................................................................... 29
4.2.3 Ranking of Expectations and Perceptions ............................................................... 31
4.3 The difference between male and female expectations and perceptions........................ 33
4.4 Customer expectation (results from feedback, question number 1.3 and 1.4). .............. 35
4.5 Summary of the result .................................................................................................... 36
5. Conclusions ......................................................................................................................... 37
5.1 Recommendations for further research .......................................................................... 38
6. References ........................................................................................................................... 39
Table 1...47
Table 2...48
Table 3...49
Table 4...50
Table 5...51
Appendix 3: General information about Destination Gotland .......................................... 51
List of figures
Table 1: Dimensions and statement numbers in the SERVQUAL-model11
Table 2: Interpretation of the Likert Scale11
Figure 1: A dynamic model of expectation...18
Figure 2: Continuum of perceived quality20
Figure 3: The SERVQUAL scale..23
Table 3: Sex and age of the respondents...26
Diagram 1: Bar chart about sex and age...27
Diagram 2: The difference between male and female expectations.28
Table 4: Average score of expectations and perceptions of all respondents28
Diagram 3: The difference between male and female perceptions...29
Table 5: The result of prioritizing all the features.31
Diagram 4: Result in expectations and perceptions from all respondents32
Diagram
5:
The
result
from
all
respondents
divided
into
each
feature32
Diagram 6: Priority of each feature of customer expectations..33
Diagram 7: Priority of each feature of customer perceptions...34
Table 6: The result of customer feedback question number 1.3 and 1.4..35
1. Introduction
Service quality is needed for creating customer satisfaction and service quality is connected to
customer perceptions and customer expectations. Oliver (1997) argues that service quality can
be described as the result from customer comparisons between their expectations about the
service they will use and their perceptions about the service company. That means that if the
perceptions would be higher than the expectations the service will be considered excellent, if
the expectations equal the perceptions the service is considered good and if the expectations
are not met the service will be considered bad.
Oliver (1997) argues that customer satisfaction can be described as a judgement that a product
or service feature, or the product or service it self, provides pleasurable consumption.
Satisfaction can also be described as a fulfilment response of service and an attitude change as
a result of the consumption. Gibson (2005) put forward that satisfied customers are likely to
become loyal customers and that means that they are also likely to spread positive word of
mouth. Understanding which factors that influence customer satisfaction makes it easier to
design and deliver service offers that corresponds to the market demands.
1.1 Background
Oliver (1993) stated that during the past decades, in the marketing literature and marketing
practices, the importance in the concept of service quality and service satisfaction has
increased. Quality and satisfaction are indicators for corporate competitiveness and explores
the benefit of marketing academics and practitioners. The relationship and nature of these
customer evaluations remains unclear though satisfaction and service quality comes from two
big research paradigms; expectations and perceptions which are considered as key
instruments. Zeithaml et al, (1993) mention that in empirical studies quality and satisfaction
are introduced as synonyms within the service business.
Schneider and Bowen (1985) and Tornow and Wiley (1991) found a positive correlation
between the attitude of employees, the attitude of customers and employee and customer
perceptions of service quality. They also found that customer satisfaction is directly related to
the attitude and perceptions of employees, in turn, the attitude and perceptions of employees
relate to the organization and its management practices. They also said that customer
satisfaction is not just relating to the values and attitudes of employees, which means that the
overall effectiveness of the organization has direct impact on values and attitudes.
According to Eskildsson (1994) over the past decades, many attempts have been made in both
private and public sectors in the hope of making improvements in processes and services from
the perspective of the customer. Many initiatives have been aiming for targeting the
satisfaction of external customers. Often research has shown that these programs have failed
to satisfy the first expectations. Consequently, consultants and experts have aimed for a
broader focus within organizations in order to include the perspective of employees and their
interrelationships with both managers and customers (Tornow and Wiley, 1991).
According to Oliver (1980) the customer satisfaction research literature concerns how well
the service delivery occurs in comparison with expectations. Today customer satisfaction is an
important subject and is also often discussed in marketing literature. Satisfaction can be
described as a number of post experience decisions. One reason for the big interest in this area
is that researches believe that customer satisfaction is crucial for all business organization.
Researches also argue that satisfaction has positive impact on intention to repurchase.
Andreassen T W (2001) mentions that customer satisfaction can be viewed as an evaluation
where expectations and actual experience is compared. A service failure is when the service
delivery does not manage to meet customer expectations. Often service recovery begins with
a customer complaint. The aim with service delivery is to move customers from a state of
dissatisfaction to a state of satisfaction.
Butcher and Heffernan (2006) discuss the relationship between customer and employees and
that social regard plays an important role in service delivery, for example in a situation where
a customer has to wait. A number of studies have shown the importance of friendly behaviour
from the staff in order to improve service delivery and create long term relationships.
1.2 Problematization
We are looking into the case of Destination Gotland. They provide service for many
customers every day and many customers depend on them to deliver service in a good way
because they live on an island and the ferry is one of only two ways to come and go from this
island. The general concept of customers that are dissatisfied is that they can create a bad
image and reduce customer loyalty and therefore it has negative effects on long term profit
margin. In order to make customers satisfied the company has to invest more money in good
employees and better equipment. On the other hand the organization should follow the price
level of the competitors.
Price and profit margin is one aspect of service firms. According to Gonzalez and Garzia
(2008) many service delivery errors and problems can occur and that is not beneficial for the
reputation of the organization. Ha and Jang (2009) argues that service failure occurs when
customer perceptions do not meet customer expectations. The problem with service failure is
that it may lead to a destroyed relationship between the customer and the organization.
Grnroos (1983) argues that when the service producer and the service consumer are in direct
contact there are many factors that affect the level of satisfaction. In service production there
is an extensive involvement of people which creates some level of non-standardization that do
not exist in production of service. For example, it is difficult for a security brokerage to keep
the service quality at the same level when they have thousands of entrepreneurs working out
there. There are also a number of communication gaps that can occur between a service
company and its customers:
The communication is not understood. The service provider sometimes have more
knowledge than the customer and fails to communicate in a way that the customer can
understand.
The company does not listen. It happens that customers feel that their instructions to
the company are not followed. (Grnroos, 1983).
To avoid communication gaps and other service failures Gonzalez & Garzia (2008) argues
that it is important for the organization to know what the customers are thinking about their
service so that failures can be avoided and improvements can be made. They need to know
which attributes to measure and which factors that can be taken from different tools to
identify customer satisfaction. Time and costs also effects customer satisfaction, a quick
response can be crucial for satisfying the customer. Maxham (2001) discusses that if problems
in the service delivery occur the result can be that customers have to wait. Boshoff and Leong
(1998) have found that an apology is connected to how the customer think about the service
recovery and an apology also has influence on customers intention to purchase and word of
mouth. Cottle (1990) argues that in service encounters there are differences in tangibility and
human interactions which make them complicated and it also makes them difficult to control.
There are several reasons for difficulties connected to service control, service is about
performance so there is no production process where you can put in quality (it is only possible
through training), there are also big variations in services and therefore they are difficult to
standardize. The reason for this is that the human factor always will make it impossible to
create a totally customized product.
Gonzales and Garzia (2008) discusses that organizations have many problems to solve: How
should the organization find out which expectations the customers have? How should the
organization find out which expectations the customers have? How should the company
implement a service recovery system? Is it good to combine different techniques to get best
result in identifying customer satisfaction? Is it correct to combine different tools to improve
service quality?
Contribution: From the result of this case-study the organization will be able to identify their
quality of service and they can also find out their week service points. By using our result
they can improve their further service delivery. This case-study is also important for writing
further thesis.
1.4 Disposition
Chapter 2: This chapter describes the methods that were used for making the survey. The
questionnaire structure as well as the method for choosing the sample of population is also
described.
Chapter 3: In this chapter the theoretical framework is presented. We present different
definitions about service quality, customer expectations, perceived service quality and the
relationship between customer expectations, perceptions and satisfaction. Finally we describe
the SERVQUAL model that is used for analyzing the result and capturing the customer
perspective of the service quality.
Chapter 4: The empirical material is presented. Expectations and perceived service quality is
viewed separately and than the difference between those factors are viewed. This chapter also
contains an analysis of the result. The analysis is based on the SERVQUAL-model.
Chapter 5: In this chapter we present different conclusions and recommendations for further
research that we found when analysing the empirical material.
2. Research design
The reason for studying service quality and customer satisfaction is that it is of grate
importance for survival and long term profit margin that a service company manages to create
satisfied customers. If a manger knows about the important areas for customer satisfaction, he
can easily handle and improve the specific factors in further service delivery. In this chapter
we will announce how the study was done, how we selected our respondents, limitations and
method for analyzing the result of the case-study.
2.1 Case-study
To answer the problem formulation, we chose to do a case-study on Destination Gotland
where we know that there are different kinds of customers with different expectations and
perceptions and that could give different views to the investigation. According to Bryman and
Bell (2005) a case-study means that you make a deep and close study of a specific case. A
specific case means a place or a facility, for example a workplace or an organization. In our
case we are investigating a specific company.
2.1.1 Limitations
This case-study is based on gap 5 in the SERVQUAL-model that is about the difference
between expected and perceived service quality. The SERVQUAL-model consists of totally 5
different gaps that can occur within the service business.
The sample of population is not focused on any specific target group and therefore it is not
possible to make any kind of generalizations about different groups. The questionnaire is long
which sometimes was reason for reactions from the respondents, they thought that the
questionnaire was too long and boring to read. In that way we lost a few respondents and
some questionnaires where answered quickly without deep thinking. Most respondents
answered without big persuasion though. We also asked them at the same time about
expectations and perceptions, which can create confusion. If you use different customers for
expectations and perceptions there will be less confusion and the answers will be more
reliable.
Assurance
Responsiveness
Empathy
Table 1: Dimension and statement numbers in
Parasuraman, 1990)
Feature 10-13
Feature 14-17
Feature 18-22
the SERVQUAL-model, (Zeithaml, Berry and
We use a rating scale that is commonly used and consist of 5 steps from 1 (strongly disagree)
to 5 (strongly agree). This rating scale is called Likert scale. It is also possible to use seven
steps but we decided that it could be boring for the respondent to think about that many
alternatives. This rating system is claimed by Fisher (2007, P. 195). The second part will
consist of five suggestions that the respondents are asked to rank. The statistic data (mean,
mode and median) is interpreted in the same way Koobgrabe et al (2008).
Interpretation
opinion
of
respondents
4,21-5,00
The most
3.41-4.20
At much
2.61-3.40
Moderate
1.81-2.60
Less
1.00-1.80
At the least
Table 2: An interpretation of the Likert Scale (Koobgrabe et al, 2008).
Questionnaire 1- expectations
Part three and four in this questionnaire consist of open ended questions and the respondents
will be asked to give there view on how the service could be done better and also what other
expectations they have about service quality.
Questionnaire 2- perceptions
In this questionnaire part three and four consist of general information about the respondent
(age, sex) and their previous travel experience with Destination Gotland.
Alvesson and Skldberg (1994) are describing a third kind of research approaches. This
approach is called abduction. This approach is described as the method that has the highest
correspondence with the reality. This approach means that the process is not working only in
one direction, the process is changing between work with theory and work with the empirical
material. The process can be described as a combination of induction and deduction where the
theory and the empirical material affect each other.
11
The research process in this thesis can best be described as deductive. We read theory and
after that the theory was tested in the reality. It is not possible to avoid though that the theory
to some extent might have to be adapted to the empirical material that is collected.
12
3. Theoretical background
This chapter contains a presentation of different factors that we consider important for this
thesis. First we describe different definitions of service quality and we describe different gaps
that are connected to service quality. After that we present different definitions about
expectations and different kinds of expectations, different definitions about perceptions and
the relationship between expectations, perceptions and satisfaction. Finally we present the
SERVQUAL model.
13
According to Parasuraman et al. (1991), companies can get their competitive advantage by
using the technology for the purpose of enhancing service quality and gathering market
demand.
For decades, many researchers have developed a service perspective (Zeithaml, 2009,
Ramsaran and Fowdar, 2007). Chang (2008) describes that the concept of service quality
should be generally approached from the customers point of view because they may have
different values, different ground of assessment, and different circumstances. Parasuraman,
Zeithaml and Berry (1990) mention that service quality is an extrinsically perceived
attribution based on the customers experience about the service that the customer perceived
through the service encounter. According to the work of Kumra (2008), service quality is not
only involved in the final product and service, but also involved in the production and
delivery process, thus employee involvement in process redesign and commitment is
important to produce final tourism products or services.
Another research study on service quality is presented by Grnroos (2007) who focuses on a
model that is a comparison between customer expectations of the service and their experience
of the service they have received before. This model is named total perceived service
quality. As he emphasizes on what customer is really looking for and what they evaluate, the
service quality is based on two dimensions. The first dimension is the technical quality and
this dimension refers to the outcome, what is delivered or what the customer gets from the
service. The next dimension is the functional quality which refers to the manner in which the
service is delivered or how it is delivered. Both dimensions affect the corporate image and the
perception of quality in various ways. According to total perceived service quality model,
perceived quality of a service is not only affected by the experiences of the quality dimensions
that the consumer used for evaluating whether quality is perceived as good, neutral, or bad. It
is al also affected by the perceived quality of given service as well as the outcome of the
evaluation process.
Chang (2008) support the earlier line of thinking by Grnroos but Parasuraman, Zeithaml, and
Berry developed The Gap Analysis Model, which is a well known model of service quality.
This model shows an integrated view of the consumer-company relationship. The main idea
of the model is focused on the premise that service quality is dependent on the size and
direction of the five gaps that can exist in the service delivery process.
a. Gap 1: the gap between customer expectations and those perceived by
management to be the customers expectations.
b. Gap 2: the gap between managements perception of consumer expectations and
the firms service quality specifications.
c. Gap 3: the gap between service quality specifications and service delivery.
d. Gap 4: the service delivery, external communication gap.
e. Gap 5: the perceived service quality gap, the difference between expected and
perceived service (Parasuraman et al, 1990).
14
The first four gaps are identified as functions of the way in which service is delivered from
the service provider to the customer, while gap number five is connected to the customer and
as such is considered to be the truth of service quality. Gap five is also the gap that the
SERVQUAL instrument influences. Edvardsson (1996) mentioned that it is important for a
service organization to define the level of quality at which to operate; he argued that it is more
relevant to speak of the right quality than of merely high quality.
3.1.1 Different perspective of service quality
The word quality means different things to people according to the context. Lovelock and
wirtz (2007, P. 418) mention that David Garvin identifies five perspectives on quality.
1. The transaction view of quality is synonymous with innate excellence: a mark of
uncompromising standards and high achievement. This viewpoint is often applied to
the performing and performing of visual arts. It is argued that people learn to
recognize quality only through the experience gained from repeated exposure and
managers or customers will also know quality when they see it is not very helpful.
2. The product- based approach sees quality as a precise and measurable variable.
Differences in quality, it is argued, reflect differences in the amount of an ingredient
or attribute possessed by the product or service. Because this view is totally
objective, it fails to account for differences in the tests, needs, and preferences of
individual customers or even entire market segments.
3. User based definitions starts with the premise that quality lies in the eyes of the
beholder. These definitions equate quality with maximum satisfaction. This
subjective, demand oriented perspective recognizes that different customers have
different wants and needs.
4. The manufacturing based approach is supply based and is concerned primarily
with engineering and manufacturing practices, quality is also operation driven.
5. Value based definitions define quality in terms of value and price. By considering
the tradeoff between perception and price, quality comes to be defined as
affordable.
Grnroos (1983) also describes different definitions and one of them comes from Philip
Crosby (1979) who defines service quality as conformance to specifications. Services are
performances and often they are performed in the presence of the customer. Services have a
nature of varying from one firm to on other and from one situation to on other. It is also
possible to make a distinction between technical and functional service quality, technical
quality is connected to what is delivered and functional quality is connected to how it is
delivered. On other example is Jarmo Lehtinen who describes customer quality in terms of
process quality and output quality. The process quality is evaluated during the service
delivery and output quality is evaluated after the service delivery.
In the study described by Grnroos (1983) 10 determinants of service quality was identified:
Reliability that is connected to the consistency of performance and dependability.
Here it is determined if the company give the service in the right way the first time
and keeps to its promises.
15
Responsiveness. This factor concerns to what extent the employees are prepared to
provide service. This involves factors such as mailing a transaction slip immediately,
calling a customer back in short time and giving prompt service.
Competence. Competence is connected the knowledge and skills of contact personnel,
operational support personnel (and also research capability) that are needed for
delivering the service.
Access. This factor is connected to the approachability which means for example if
the operating hours are convenient, the location of the facilities are convenient, the
waiting times are short and also easy access by telephone.
Courtesy. This factor involves politeness, respect, consideration, friendliness of
contact personnel (including receptionists, telephone operators and so on).
Communication. This is about keeping the customer informed in a language they can
understand and also listen to the customer. The company may have to make some
adjustments in order to include foreign customers.
Credibility. Factors such as trustworthiness, believability and honesty are included. It
means to the level the company has the customers best interest at heart. Factors that
affect the credibility are the company name, reputation, personal characteristics and
the degree to which the hard sell is connected to interactions with customers.
Security. Security means freedom from danger, risk or doubt. Factors included are:
physical safety, financial security and confidentiality.
Understanding the customer. This is about making an effort to understand the
customer which involves learning about specific requirements, providing
individualized attention and recognizing also the regular customer.
Tangibles, they include physical aspects of the service such as physical facilities,
appearance of personnel, tools or equipment that is used to provide the service,
physical representations or other customers in the service facility.
Grnroos (1983) describes that the analyses of the study resulted in four conclusions.
Conclusion number one is that service quality is determined by the customers perceptions
which result from comparing expectations that the customer have before receiving the service
and the actual experience that the customer get from the service delivery. If the expectations
are met the service quality is described as satisfactory. They can also be exceeded and than
they are considered as more than satisfactory. Conclusion number two is that the evaluation
depends on the service process and also the service outcome. As the third conclusion it is
described that it exists two types of service quality: quality at the level where the regular
service is delivered and the quality level where expectations or problems are handled.
3.1.2 Service-based Component of Quality
Lovelock and Wirtz (2007, P.420) describe that researchers argue that the nature of service
quality requires a distinctive approach to indentify and measure service quality. The
intangible, multifaceted nature of many services makes it harder to evaluate the quality of a
service compared to products. Because customers are often involved in service production, a
distinction needs to be drawn between the process of service delivery and the actual output of
the service which is called technical quality. Other researchers suggest that the perceived
quality of service is the result of an evaluation process in which customers compare their
perceptions of service delivery with the expected outcome.
16
17
Explicit Expectations
Fuzzy
expectations
Unrealisti
Unrealistic
c
Implicit
expectations
Realistic
Realistic
18
(Grnroos, 2007, p.101) also mentions that both fuzzy and implicit provider expectations
should be detected, because they can form explicit expectation as seen in the thick narrows
(Fig. 2); called intonation dynamics. It shows how the service provider can and should
actively manage expectations. At last, the service provider should design the service offering
to customers in order to meet all their expectations, and the dynamic approach to manage
service contexts are therefore concerned.
According to Lovelock and Wirtz (2007) understanding the expectations of customers mean
understanding that when customers evaluate service they compare their expectations with
what they think they received from the supplier and if the expectations are met or even
exceeded customers believe that the service have high quality. Customer expectations vary
depending on what kind of business the service is connected to. Expectations also vary
depending on different positioning strategies of different service providers. Thirdly the
expectations are influenced by previous experiences of the service provider, competing
services in the same industry or related services in different industries. If the customer dont
have any previous experience they are more likely to base their expectations on word of
mouth, news stories or the marketing efforts of the company. One more thing to consider is
that customer expectations vary over time because they are influenced by advertising, new
technologies, service innovation, social trends and so on. A successful company is able to
meet expectations in every step
19
Bitner (1992); Baker et al., (2002) is describing the third component that is about how
customers are influenced from the appearance, perceptions and behaviour of other customers.
Baker and Cameron (1996), discusses that it is shown that the behaviour of other customers
affect perceptions and that makes it important for service providers to be careful about the
interaction between customers.
According to Lovelock and Wirtz (2007) a service encounter is a period of time during which
the customer interact directly with the service provider. Some of these encounters are very
brief and consist of just a few steps. If you use a service that requires the customer to make a
reservation this first step might have been taken days or even weeks before the customer
arrives at the service facility.
Lovelock and Wirtz also (2007 also discusses The Servuction Model. It is static and describes
a single service encounter or moment of truth. Service processes usually consist of a series of
encounters, such as your experience with a flight that consist of steps from making reservation
to checking in, taking the flight, and retrieving customers bags on arrival. Knowledge of role
and script theories can help us to understand, design, and manage both customer behavior and
employee behavior during those encounters.
From the discussion above we understand that this part is connected to the Continuum of
Perceived Service Quality. The following model is shown below;
Prepurchase
Expectations
Perceived
Process
Quality
Perceived Output
Quality
Expectations Not
Met
Expectations
Unacceptable
quality
Met
Satisfactory
quality
Expectations
Exceeded
Ideal Quality
20
21
22
Past experience
Word of mouth
Personal needs
Expected service
Gap5
Customer
Perceived service
Provider
Service delivery
Gap 4
External communications to
customers
Gap 3
Service quality
specifications
Gap 1
Gap 2
Management
Perceptions of
Customer Expectations
23
24
We also describe that there are several gaps that occur when it comes to service delivery. The
gap that is researched in this thesis is the gap between expectations and perceptions.
25
Total
Male
Female
Total
< 20 years
(amount & Old
(
%)
amount &
%)
58(100%)
1(1, 72%)
23(39,
66%)
35(60,
1(1, 72%)
34%)
20-30 years
Old
(amount &
%)
30(51,72%)
10(17,24%)
31-40
Years Old
( amount
&%)
6(10,34%)
3(5,17%)
20(34,48%) 3(5,17%)
41-50
years Old (
amount &
%)
8(13,79%)
2(3,45%)
>50 years
Old
(amount &
%)
13(22,41%)
8(13,79%)
6(10,34%)
5(8,62%)
26
0,4
0,35
0,3
0,25
Male
0,2
Female
0,15
0,1
0,05
0
<20 yeas
old
20-30
years old
31-40
years old
41-50
years old
>50 years
old
27
Dimension
Tangibles ( 1-4 )
Reliability (5-9 )
Assurances (10-13 )
Responsiveness (14-17)
Empathy (18-22)
Total
28
seen is that tangibles do not have big importance when it comes to expectations but tangibles
is the dimension that received the highest perceived service quality.
4.2.2 Each SERVQUAL feature
In this part the score of each feature is shown. The horizontal axis represents each feature and
the vertical axis shows the average score from the total number of respondents.
Diagram 3: The result from all respondents divided into each feature (see questionnaire
appendix 1)
A: Tangibles (Feature number 1-4)
In diagram 5 we can see the expectations and perceptions about the specific features and also
the difference between the expectations and perceptions.
According to Parasurman et al (1990) tangibles are about physical facilities, equipment,
personnel and communication material. This dimension includes physical facilities,
equipment, personnel and communication material and if the personnel appear neat. Grnroos
(2007) mention that service quality can be divided into two parts, functional quality and
technical quality. Tangibles can be connected to the functional quality (Grnroos, 2007).
Customers of Destination Gotland showed overall expectations in this dimension at mean 3,
94(0, 23) (see table 4). At the same time their perception about this dimension is at mean 3,
76 (0, 05). That means that the customers do not think that Destination Gotland fulfill their
expectations about physical appearance, modern looking equipment, the appearance of the
employees. The difference between expectations and perceptions in this dimension is
calculated to -0, 18. If we look at each feature we can see a difference as follows -0, 57, 0,10,
-0, 19 and -0, 27. As we can see, statement number 2 shows a positive result which means that
the perceptions about the visually appealing materials is exceeding the expectations.
B: Reliability (Feature number 5-9)
Reliability is connected to the consistency of performance and dependability, Grnroos
(1983). This dimension includes keeping promises, showing a sincere interest in solving
29
problem, give right service the first time, providing the service at the time the company
promise to do so and trying to keep an error free record. That means that this dimension can
be connected to both technical quality and functional quality. Showing a sincere interest in
solving problem is about the manner in which the service is delivered and therefore it is
connected to the functional quality. The other features in this dimension can be connected to
the technical quality. The customers show overall expectations in this dimension at mean 4,
11 (0, 15) (see table 4). Their perceptions show mean at 3, 57 (0, 32) (see table 4). The
customers do not think that their overall expectations are fulfilled within this dimension. The
difference is calculated to -0, 54 (see table 4). When we look at each feature the differences
are calculated to -0, 43, -0, 87, -0, 5 and -0, 8 (see appendix number 2, table 5). This result
show that the customers are not at all satisfied with the quality described in this dimension.
C: Assurance (feature number 10-13)
According to Zeithaml, Berry and Parasuraman (1990) assurance is about competence,
courtesy, credibility, and security. Grnroos (1983) describes those factors separately;
courtesy is about politeness, respect, consideration, friendliness of contact personnel
(including receptionists, telephone operators and so on). Competence is connected to the
knowledge and skills of contact personnel, operational support personnel (and also research
capability) that are needed for delivering the service. Credibility involves factors such as
trustworthiness, believability and honesty. It means to the level the company has the
customers best interest at heart. Factors that affect the credibility are the company name,
reputation, personal characteristics and the degree to which the hard sell is connected to
interactions with customers. Security means freedom from danger, risk or doubt. Factors
included are: physical safety, financial security and confidentiality. This dimension can also
be connected to the functional quality (Grnroos, 2007).
This dimension is about the behaviour and ability of the employees to instil confidence,
secure transactions, courtesy of the employees and the knowledge of the employees to answer
questions from customers.
(See table 4). The customers show overall expectations in this dimension at mean 4, 16
(0,07). Their perceptions show mean at 3, 69 (0, 05). The customers do not think that their
overall expectations are fulfilled within this dimension. The difference is calculated to -0, 47.
When we look at each statement the differences are calculated to -0, 38, -0, 43, -0, 48 and -0,
67. This result show that the customers are not at all satisfied with the quality described in this
dimension.
D: Responsiveness (feature number 14-17)
According to Grnroos (1983) this factor concerns to what extent the employees are prepared
to provide service. This involves factors such as mailing a transaction slip immediately,
calling a customer back in short time and giving prompt service.
This dimension touch subjects as information about the service, giving prompt service,
employees willingness to help the customers and that the employees never are to busy to
respond to requests from customers. This dimension can be connected to the technical quality
because the features are about how the service is delivered. (See table 4) the customers show
overall expectations in this dimension at mean 3, 95 (0, 31) while their perceptions show
mean at 3, 68 (0, 13). The customers do not think that their overall expectations are fulfilled
30
within this dimension. The difference is calculated to -0, 27. When we look at each statement
the differences are calculated to -0, 6, -0, 22, -0,55 and -0,02. This result show that the
customers are not at all satisfied with the quality described in this dimension.
E: Empathy (feature number 18-22)
According to Zeithaml, Berry and Parasuraman (1990) empathy is about easy access, good
communication and understanding the customer. Grnroos (1983) describes those factors
separately. Easy access is connected to the approachability which means for example if the
operating hours are convenient, the location of the facilities are convenient, the waiting times
are short and also easy access by telephone. Good communication is about keeping the
customer informed in a language they can understand and also listen to the customer. The
company may have to make some adjustments in order to include foreign customers.
Understanding the customer is about making an effort to understand the customer which
involves learning about specific requirements, providing individualized attention and
recognizing also the regular customer.
This dimension include factors such as individual attention, if the company has the best of the
customer at their heart, if the employees understand the specific needs of the customers and
convenient operating hours. This dimension is clearly connected to the functional quality
(Grnroos. 2007).
(See table 4). The customers show overall expectations in this dimension at mean 3, 44 (0,
29) while their perceptions show mean at 3, 33 (0, 10). The customers do not think that their
overall expectations are fulfilled within this dimension. The difference is calculated to -0, 12.
When we look at each statement the differences are calculated to 0, 03, -0, 72, -0, 36 and -0,
45 and -0, 5. This result show that the customers are not at all satisfied with the quality
described in this dimension except feature 18 which is about individual attention.
4.2.3 Ranking of Expectations and Perceptions
In table 5 (see also appendix 2, table 2 and 4) the result of the ranking of the different items is
shown. Table 5 shows the difference between expectations and perceptions. This table is
linked to part two in the questionnaire and it is showing the rank of each feature from 1-5
(rank 1 means the highest priority and rank 5 means the lowest priority).
Prioritizing
Rank 1 ( 1st priority )
Rank 2
Rank 3
Rank 4
Rank 5
Feature
no:
Expectations
2
3
3
4
5
Customer Feature
no:
perceptions
2
4
3
1
5
Customer
Table 5: Result of prioritizing the feature pertaining customer expectations and perceptions
described in ranking place.
31
Expectations: On the basis of our empirical data in table 5 (the raw data can be found in
appendix 2, table 2) we can see that the customers are mostly concerned about the ability of
Destination Gotland to perform the service accurately and dependably. The willingness to
help customers and provide prompt service is also highly expected from the customers. They
care less about the courtesy and the ability to convey trust and confidence and they also care
less about individualized attention.
32
appearance of the Destination Gotland Ferry's physical facilities, equipment, personnel and
communication materials and caring, individualized attention.
When comparing the result from expectations and perceptions we can see that the ability to
perform the promised service dependably and accurately is ranked as number 1 in both cases
with only a very small difference in %, 56,90% compared with 55,17%. We can see that there
is a bigger difference between the other features in ranking and percentage which means that
there is a difference between what the customers expect and the perceived quality. In the
second place when it comes to expectations we have the willingness to help and giving
prompt service with 43, 10%. On the contrary the perceived quality about these factors is only
ranked as number 3 of 50% of the respondents. This means that the expectations about
Destination Gotland willingness help customers and give prompt service is higher than the
perceived quality. This feature is also ranked as number 3 when it comes to perceptions but
from less percentage (32, 76%). The customers have less expectations about the knowledge
and courtesy of Destination Gotland personnel and their ability to convey trust and
confidence, it is ranked as number 4 (32,76%) but this feature is ranked as number 2 when the
respondents are giving their opinion about the perceived quality (31,3%). That means that the
perceived quality is higher than the expectations when comparing the total number of
respondents and their ranking. The appearance of the Destination Gotland ferries physical
facilities, equipment, personnel and communication material is ranked as number 4 about
perceived quality but people have less expectations and that shows that the perceived quality
is higher than the expectations. The lowest priority is the caring, individualized attention
Destination Gotland personnel provide to its customers and this feature has the lowest priority
when it comes to both expectations and perceptions.
4.3 The difference between male and female expectations and perceptions
In the following two diagrams we present the difference between males and females when it
comes to expectations and perceptions. Since we dont have the same amount of female and
male respondents we randomly choose a specific amount (23 respondents of males and
females) so that we could compare between the same amounts. We had 23 male respondents
but more females so we had to reduce some females from the calculation in this part.
33
This diagram is showing the difference between male and female expectations. Both male and
females have high expectations about receiving the service at the time that is promised. The
biggest difference we can see about if the employees are never to busy to answer the wishes
of the customers, female expectations are higher than the male expectations. The males have
the lowest expectations about if the employees are never to busy to answer questions from
customers. Females have their lowest expectations about if Destination Gotland gives
personal attention. Over all we can see that the male expectations are higher than the female
expectations.
34
4.4 Customer expectation (results from feedback, question number 1.3 and
1.4).
Table 6 shows the amount and percentage of respondents that either feel or not feel that the
service meets their expectations. The result in this part shows that 82, 76 % of the respondents
think that the service quality meet their overall expectations. On the contrary the rest 17, 26%
of the respondents do not think that the service quality meet their expectations. 12.09%
specified what service they want to be fulfilled in order to be specified but 5.17% do not make
any specifications about their opinions.
When it comes to give the opinion about what other expectations they have about the service
quality 79.31% were not able to or chose not to answer but 20.69% of respondents specified
their expectations.
1.3
Yes
1.4
Do you think
the
services
provided
by
Destination
Gotland meet
your
overall
expectations?
What are the
other
expectations
you expect to
receive from
Destination
Gotland
Amount
respondent
48
No,
with 7
specification
of
how and what
No,
without 3
specification
of
how and what
of % of respondent
82,76%
12.09%
5.17%
Respond
12
20.69%
No respond
46
79.31%
35
Explicit expectations can be fond in this case-study in question 1.3 and 1.4. Examples of
explicit expectations that we can find in this case-study are as follows:
1. One respondent said that the seats could be more comfortable, the restaurant should
have the menu also in English and they should also be more polite and give answers to
questions of customers.
2. On other respondent said that the ability to follow the time schedule is really important
for both departure and arrival.
3. More convenient schedule is expected from on other respondent.
4. One customer expect insurance if language is lost and also that the employees as well
as other customers behave well.
5. On other respondent said that they should have strong priority about the security.
6. One respondent strongly expect that the restaurant should supply different kinds of
food and they should provide more trips in one day.
7. One respondent expect better service when booking trips by the telephone. The
respondent expects that if something is wrong they should help in the best way.
8. One more respondent expect that materials and signs should be in English also.
Those comments can be seen as guidelines about which expectations and perceptions the
customers have and which areas where the service quality can be increased.
Likewise, 5.17% of the respondents said that they do not think that service quality meet their
expectations but they are not able to specify in what way they want the service to be done.
This can be called fuzzy expectations according to the definition by Ojasalo (in Grnroos,
1990). According to Ojasalo (in Grnroos, 1990) it is important that the service providing
company help the customer with the fuzzy expectations in order to make them explicit. It is
important for the company to understand the expectations of the customers and it is good if
the company can provide guidelines to employees that meet the customers in order to train
them to find out what needs and expectations the customer have. Implicit expectations are
difficult to define because the customer is maybe not expressing those kinds of expectations
(Grnroos, 1990). Johnston and Clark (2005) argue that they are also important to fulfill
because they may be become explicit when they are not met or exceeded.
36
5. Conclusions
This part includes our own thinking about different patterns in the result. We connect the
result to the research questions, aim and theory.
This case-study explores the service quality at Destination Gotland. 58 people that have been
customers of the company were selected randomly in order to measure their expectations and
perceptions. They were provided with a questionnaire which followed the SERVQUAL
model that is developed by (Parasurman, 1990) and this model consist of 22 different service
features which are grouped into 5 different dimensions: tangibles, reliability, assurance,
responsiveness and empathy.
The respondents in this study were 39, 66 % males and 60, 34% females. The main
respondents were in the age-group 20-30 years old, the smallest age group (1,72%) where
<20 years old. 48,28% of respondents have been travelling with Destination Gotland 5-7
times per year. 5,17% of the respondents have been travelling only 1 time per year. 20, 69%
of the respondents have been travelling more than 10 times per year. In our case-study, the
dimension that has the highest expectations is assurance that is related to the behaviour and
knowledge of the employees and shows a top average score at 4,1 (0,07) while we can find
the highest perception average score at 3, 76 (0, 05) in the tangible dimension that is related
to physical aspects and appearance of the personnel. The result shows a total gap (number 5)
at -0, 39.
As we could see from the analyzes of the separation between expectations and perceptions of
males and females they differ within many features, both when you look at the lowest and
highest expectations and perceptions. It is a natural cause that if the expectations are different
the perceptions will also be different. But why are the expectations different between males
and females? We think that there are some differences between the personality of males and
females and that creates differences in expectations.
We ask the question about what expectations the customers have about service quality at
Destination Gotland. The result shows that the customers have the highest expectations about
knowledge, security and the ability to show the customers that it is secure to travel with this
company. The answer was predictable, this is a ferry company and the most important service
is therefore a safe and secure trip. When we compare with perceptions we can see that the
customers perceive the highest quality among the tangible aspects. The tangible dimension
has the second lowest expectations and we think that the reason behind this situation is that if
the expectations are low it is easier to be surprised in a good way. From the overall result
from the statements we can see that there are many gaps between expectations and
perceptions which means that the service quality do not fully meet the expectations. The
overall difference is not big which is positive for Destination Gotland.
Likewise we can see that there is a fall down from the expectations to the perceptions in
several service features. The first dimension (tangibles) show a difference that is -0, 18,
reliability shows a difference that is -0, 54, similarly assurance shows a difference that is
-0, 47, responsiveness shows a difference that is -0, 26 and empathy shows a difference that is
-0, 12. The highest difference we can find in the reliability dimension (reliability means
dependable, accurate performance) and the assurance dimension (assurance means
competence, courtesy, credibility, and security). This means that the customers do not think
37
that the company is reliable enough and the company should concentrate on improving
service performance in those areas.
When it comes to the ranking we can see that the customers have the highest expectations and
also the highest perceptions about the same feature. This feature is about the ability to
perform the promised service dependably and accurately (feature number 2). The customers
also have the lowest expectations and perceptions about the same feature. This feature is
about if the company provides the customers with caring and individualized attention (feature
number 5). That the customers have high expectations about that service will be performed
dependably and accurately is also a predictable result because the most important aspect of
the service is to get to the other side in a safe way, it is natural to have high expectations about
this. We think that the reason for the customers to also have high perceptions about this
feature is that the company has a good accident free background and because of the monopoly
business the customers have no opportunity to compare with on other company.
We also think that the reason for the low expectations and perceptions about the personal and
individualized attention is that there is no need for this if no special problem occurs. Those
customers who have low perceptions about this feature maybe had some special problem and
felt that they did not get the help they needed. It is difficult though to give personal attention
to 1500 passengers and therefore the customers have low expectations.
Finally, results from the general question concerning if the service meet their expectations
about the quality shows that 82, 76 % of the respondents says yes. This result is different from
the result of the different features that shows that the perceived quality is lower in many
perspectives than the expectations. One reason for this different result can be that if you ask
the customers generally they dont think deeply but if you ask about details they are forced to
think more.
38
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42
Appendix 1: Questionnaire
Part 1: Customer's Expectation
1.1 The following tables contain the feature that relate to your feelings about the service
quality you expect from Destination Gotland. Please tick mark in each feature that is close to
your view of service quality's expectation.
7
8
9
10
11
12
13
14
15
16
No
opinion
Strongly
agree
Agree
Moderat
e
Disagree
Features
Strongly
disagree
SL
no
43
17
18
19
20
21
22
1.2 Could you prioritize the five features below pertaining to Destination Gotland that is
closest to your view of your expectations of the service quality? Rank from 1-5 where 1 is the
most important feature.
Rank
1.3 Do you think the service provided by Destination Gotland meet your overall expectation?
Yes
No
If your answer is "no", please specify "what and "how the service should be done? Your
opinion!
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1.4 What are the other expectations you expect to receive from Destination Gotland?
44
8
9
10
11
12
13
14
15
16
17
18
19
No
opinion
Strongly
agree
Agree
Moderat
e
Disagree
2
3
4
Strongly
disagree
SL no
1
Features
45
20
21
22
2.2 Could you prioritize the below five features pertaining to Destination Gotland that is
closest to your view of your perception of the service quality.
Rank
2.3 Please give your opinions about the overall service quality you receive and suggestions in
terms of how Destination Gotland can provide you with a better service.
Female
46
Min
Max
Mean
Std
4,28
0,74
3,68
1,01
2
1
5
5
4,02
3,98
0,61
0,93
4,207
0,942
4,24
1,08
4,1
4,38
0,75
3,89
1,02
4,07
0,96
4,2
0,9
4,121
0,948
4,339
0,786
4,3
0,8
4,052
0,839
4,22
0,76
3,5
1,09
3,4
3,7
47
3,6
0,9
3,9
1,1
Table 2: Amount of respondents and percentage from prioritizing 1-5 were shown in
Priority of Customer
Expectations
1. I expect that the
appearance
of
Destination
Gotland
ferries,
physical
facilities,
equipment,
personnel
and
communication is good.
2. I expect that the
appearance
of
the
Destination
Gotland
ability to perform the
promised
service
dependably
and
accuracy
3. I expect that the
Destination
Gotland
willingness
to
help
customers and provide a
prompt service
4. I expect that the
knowledge and courtesy
of
the
Destination
Gotland Ferry company
personnel and their
ability to convey trust
and confidence
5. I expect that the
caring,
individualized
attention
Destination
Gotland ferry company
provides its customers.
No
op
8(13.80)
2(3.45%)
6(10.35%)
4(6.90%)
1(1.72%)
7(12.07)
3(5.17%)
13(22.41%) 33(56.90%)
4(6.90%)
2(3.45%)
48
Table 3: The average Perception (on the scale from 0 to 5) of the proposed 22 feature of
service quality as rated by 58 respondents were shown in Table 2
Descriptive Statistics of customers Perception of all respondents
Statement
Min
Max
Mean
Std
3,71
0,89
3,778
0,786
2
2
5
5
3,833
3,714
0,601
0,857
3,78
0,94
3,37
0,87
3,6
0,65
0,8
1
3
5
5
3,09
3,69
0,95
0,58
3,77
0,82
3,64
0,82
3,67
0,73
3,7
0,8
3,83
0,7
3,67
0,54
3,52
0,75
1
1
5
5
3,43
3,28
1,01
0,95
1
2
5
5
3,34
3,15
1,02
0,88
3,4
0,9
49
No
op
10(17.24%) 5(8.62%)
6(10.35%)
4(6.90%)
5(8.62%)
11(18.97%) 32(55.17%)
1(1.72%)
6(10.35%)
29(50%)
17(29.31%) 5(8.62%)
2(3.45%)
3(5.17%)
8(13.80%)
4(6.90%)
50
Perceived
(Mean Expectation
&Std)
(Mean&Std)
3,71 0,89
4,28
0,74
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
3,77
3,83
3,71
3,78
3,37
3,6
4
3,09
3,69
3,77
3,64
3,67
3,7
3,83
3,67
3,52
3,43
3,28
3,34
3,15
3,4
0,78
0,60
0,85
0,94
0,87
0,65
0,8
0,95
0,58
0,82
0,82
0,73
0,8
0,7
0,54
0,75
1,01
0,95
1,02
0,88
0,9
3,68
4,02
3,98
4,207
4,24
4,1
4,38
3,89
4,07
4,2
4,121
4,339
4,3
4,052
4,22
3,5
3,4
4
3,7
3,6
3,9
1,01
0,61
0,93
0,94
1,08
1
0,75
1,02
0,96
0,9
0,94
0,78
0,8
0,83
0,76
1,09
1
1
1
0,9
1,1
Gap(Mean&Std)
-0,57
0,09
-0,18
-0,26
-0,42
-0,87
-0,5
-0,38
-0,8
-0,38
-0,43
-0,48
-0,66
-0,6
-0,22
-0,55
0,02
0,03
-0,72
-0,36
-0,45
-0,5
0,15
0,22
0,009
0,07
0,002
0,21
0,35
0,05
0,07
0,38
0,08
0,13
0,06
0
0,14
0,22
0,34
0,01
0,05
0,02
0,02
0,2
51