Service Quality Dimension

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IBEJ Vol.2 Issue No.1 (2009)01-18 ISSN 1985 - 7918

SERVICE QUALITY DIMENSIONS, PERCEIVE VALUE AND CUSTOMER SATISFACTION: ABC RELATIONSHIP MODEL TESTING 1

Nek Kamal Yeop Yunus, 2Azman Ismail, 3Zubrina Ranee Juga, 4 Salomawati Ishak 1 Faculty of Business and Economics Universiti Pendidikan Sultan Idris, Tanjong Malim, Perak,Malaysia 2 Faculty of Defence Management Universiti Pertahanan Nasional Malaysia 3 Faculty of Cognitive Sciences & Human Development Universiti Malaysia Sarawak, Kuching, Malaysia 4 Commerce Department, Sultan Azlan Shah Polytechnics, Behrang,Perak

Abstract
The study was conducted to examine the effect of service quality and perceived value on customer satisfaction using a sample of 150 usable questionnaires gathered from undergraduate students in one public university in Sarawak, Malaysia. The outcomes of hierarchical regression analysis showed four important findings: firstly, relationship between perceive value and reliability significantly correlated with customer satisfaction. Secondly, relationship between perceive value and responsiveness significantly correlated with customer satisfaction. Thirdly, relationship between perceive value and assurance significantly correlated with customer satisfaction. Fourthly, relationship between perceive value and empathy significantly correlated with customer satisfaction. This result confirms that perceive value does act as a partial mediating variable in the service quality models of the organizational sample. In addition, implications and limitations, as well as directions for future research are elaborated.

Keywords: service quality characteristics, perceive value and customer satisfaction

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IBEJ Vol.2 Issue No.1 (2009)01-18 ISSN 1985-2126

Introduction
Service quality and customer satisfaction are inarguably the two core concepts that are at the crux of the marketing theory and practice (Spreng & Mackoy, 1996). In today’s world of intense competition, the key to sustainable competitive advantage lies in delivering high quality services that will in turn result in satisfied customers (Shemwell et al., 1998). Therefore, there is not even an iota of doubt concerning the importance of service quality as the ultimate goal of service providers throughout the world (Sureshchandar et al., 2002). In an era of global competition; many organizations have now shifted the paradigm of service quality to customer’s perspective (Parasuraman et al., 1985). Rely on this paradigm; a customer will judge the quality of service if its service meets his/her expectations (Grönroos, 1984; Parasuraman et al., 1985, 1988). Many scholars think that employee satisfaction with the service features may increase retention and loyalty (Alexandris et al., 2002), thus lead to increased organizational competitiveness (Shemwell et al., 1998). Service quality has been defined as a form of attitude – a long-run overall evaluation (Zeithaml, 1988; Parasuraman et al., 1988). Perceived service quality portrays a general; overall appraisal of service, i.e. a global value judgement on the superiority of the overall services and it could occur at multiple levels in an organization (Sureshchandar et al., 2002). Many scholars such as Parasuraman et al., (1988), Juwaheer and Ross (2003) and Walker et al., (2006) highlight that reliability, responsiveness; assurance and empathy are the most important service quality characteristics. Reliability is frequently seen as the ability of service provider to implement promised service dependably and accurately (Wong & Sohal, 2003). Responsiveness is often defined as the willingness of service provider to provide service quickly and accurately (Johnston, 2006). Assurance refers to credibility, competence and security in delivering services (Juwaheer & Ross, 2003). Empathy is related to caring, attention and understanding the customer needs when providing service. Extant research in this area shows that properly implemented such service...
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