Customer internal positive feeling of a customer towards

Customer satisfaction is what the customer feels towards
the quality of product, experience of using the service provided and how they
have been served. Customer satisfaction refers to the internal positive feeling
of a customer towards a brand which meets his expectations (Carl and McDaniel 2005).

 

 

Service
quality can be defined as a comparison between the perceived
service and the expected service. It means the difference between customer’s
expectation of service and their perceived service. Kotler (1996) stated that
service quality as the totality of features and characteristics of a products
or service that bear on its ability to satisfy stated or implied needs.

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Reliability is ability to perform the promised
service dependably and accurately to the customer. Parasuraman, et al (1988)
indicated that reliability normally is the most important attribute consumers
seek in the area of quality service.

 

 

Tangible
is appearance of physical facilities, showroom, personnel, printed and
communication materials. Bitner (1990) it was noted that physical appearance
might influence the consumer’s level of satisfaction.

 

 

Assurance possessed of required skills and
knowledge on how to perform service. Parasuraman, et al (1991) included actions
by employees such as always courteous behavior instills confidence and
knowledge as prime elements of assurance.

 

 

Empathy is an approach of making the effort
to know customers and their needs. It is the degree to which the customer feels
the empathy will cause the customer satisfaction and make the happy to deal. Empathy
replaces access, communication, and understanding the customer in the original
ten dimensions for evaluating service quality (Zeithaml, et al, 1988).

 

 

Responsiveness is willingness to help and assist
customers to provide prompt service. Parasuraman, et al (1991) include such
elements in responsiveness as telling the customer the exact time frame within
which services will be performed, promptness of service, willingness to be of
assistance, and never too busy to respond to customer requests.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER
2

LITERATURE
REVIEW

 

 

 

2.1      INTRODUCTION

 

 

This chapter
contains about the review of literature or previous research there will be
explanation on seven independent variables and with relationship included one
dependent variables. This chapter also include about theoretical framework and
hypotheses of these research.

 

 

2.2       CUSTOMER
SATISFACTION

 

Customer satisfaction is what the
customer feels towards the quality of product, experience of using the service
provided and how they have been served. Customer satisfaction refers to the
internal positive feeling of a customer towards a brand which meets his
expectations (Carl and McDaniel 2005). Many studies have focused on variety
perception. According to Berry and Parasuraman (1991), customer satisfaction is
influenced by the availability of customer services and the provision of
quality customer service has become major concern of all businesses. It also
closely related to the long relationship between the organization and its
customer. Churchill and Surprenant (1982) stated that customer satisfaction is
as expectation before purchase and perception about the performance after
purchase.

 

 

2.3       SERVICE QUALITY

 

 

In the literature, there has been
extensive progress as to how service quality perceptions should be measures but
little advance as to what should be measured (Brady and Cronin, 2001). Researchers in general have adopted one of two
conceptualizations (Brady and Cronin, 2001). The first one is the “Nordic”
perspective (Gronroos 1982, 1984), which defines the dimensions of service
quality in general terms as consisting of functional and technical quality. The
second one is the “American” perspective (Parasuraman, et al., 1985) that uses terms
to describe service encounter characteristics as reliability, responsiveness,
empathy, assurance and tangibles. The original service quality model “Nordic Model”
was generated by Gronroos (1982) Expanding on the work of Gronroos (1982,
1984), Parasuraman, et al. models (1985, 1988, 1991, 1991a, 1994) have made a
significant contribution to several service quality research studies.

 

 

Parasuraman and his
colleagues developed a five dimensions service quality model which focused on
the gap between expectations and perception, both of which are measurable by
using the SERVQUAL instrument. The
SERVQUAL model encompasses five perceived
service quality attributes: tangibles, reliability, responsiveness,
assurance and empathy (Parasuraman
et al., 1988). It focuses on the delivery process but does not take into account the behavioural aspects (Baker
and Lamb, 1993; Richard and Allaway, 1993).
Research suggests multiple dimensions for understanding service quality. It
encompasses physical, interactive and corporate quality (Lehtinen and Lehtinen,
1982), service delivery processes (Berry et al., 1985), customer-employee
interactions (Rust and Oliver, 1994) and ‘how’ the service was performed
(Swartz and Brown, 1989). Customers’ evaluate service as poor if it does not
meet their expectations (Oliver, 1980).

 

 

2.4       RELIABILITY

 

 

Reliability is one of the dimensions
or attributes measure in service quality. Arasli et al. (2005) pointed out that
reliability dimensions have the highest impact on customer satisfaction. Berndt,
A. (2009) explained reliability with respect of automobile service and it is
the most important dimension in service quality. It stated that dealership is
known to contact the customer promising that vehicle will be ready for delivery
at specific time. The customers usually expect service providers keep their
promises as for this aspects.

 

2.5       TANGIBLE

 

 

            Tangible is another
dimensions of service quality. In this dimension, customers expect that they
will be offered honest communication material, clean, and comfortable
facilities. Parasuraman, Zeithalm, & Berry (1991) said that tangible refers
to the appearance of the equipment, physical facilities, personnel and also
communication materials within service provided. Tangible cues that form part
of the dimension include signage, parking and layout of the dealership itself,
Berndt, A. (2009).

 

 

2.6       ASSURANCE

           

 

Next dimension in service
quality is assurance. Parasuraman, Zeithalm, & Berry (1991) explained that
assurance is the trust in the knowledge and proficiency in the service
provider. This aspect includes how competence that the service performed,
politeness and general attitude of the service provider to safe guard the
interest of the customers. While Berndt, A. (2009) explained the assurance aspect
with respect to automobile service as the knowledge and manner of interaction
between sales advisors with the customer inspires trust in the organization.

 

 

2.7       EMPATHY

 

 

Then, the other dimensions
or attributes in service quality is empathy. According to Parasuraman,
Zeithalm, & Berry (1991) empathy is the provision of caring and
individualized attention given to the customers. Berndt, A. (2009) explained
that this dimension can be seen in the interactions between the organizations
and the customers, and the nature of this interaction.

 

 

 

 

2.8       RESPONSIVENESS

 

 

Responsiveness is ability
to provide prompt service and readiness to provide service at any time. Berndt,
A. (2009) stated that responsiveness in service quality as changes that have
been observed in service provided from just being workdays to include weekend,
due to the changes in the needs of customers.

 

 

2.9       COMMUNICATION

 

 

One of the aspects that
contribute to the customer satisfaction is communication. It can be obtained by
meeting the customer’s expectations by the communication between sales advisor
and the customers.

 

           

2.10     IMAGE

 

Image or brands are
intangible assets for companies that are difficult to duplicate as it
differentiate the values of the service or products. Davies, Chun, Da Silva and
Roper (2003) indicated that anything could be a brand, such as corporate,
company or name. It also one of the main factor in service quality that enhance
the customer remembrance. Keller (1993) stated that image is a perception about
a brand held in consumer memory. Johnson, Andreessen, Lervik, & Cha (2001)
stated that customers more favorable the image has higher perceived in quality,
value, satisfaction and loyalty.

 

 

 

2.11     RELATIONSHIP BETWEEN
RELIABILITY AND CUSTOMER SATISFACTION

 

 

            Reliability involves the
consistency and reliability of the service performance which concern the
promised service accurately. Anantha Raj A. Arokiasamy and Huam Hon Tat (2014) examined
that there are positive relationship between reliability and customer satisfaction.

 

            Therefore, hypothesis is
positive relationship:

 

            H1: There is positive relationship between
reliability and customer satisfaction.

 

           

2.12     RELATIONSHIP BETWEEN
TANGIBLE AND CUSTOMER SATISFACTION

 

 

            Tangible is anything that customers can hear, see, touch
or smell will affect the customer satisfaction. Anantha Raj A. Arokiasamy and
Huam Hon Tat (2014) examined that there are significant and positive
relationship between reliability and customer satisfaction.

 

            Therefore, hypothesis is
positive relationship:

 

            H2: There is positive relationship between tangible
and customer satisfaction.

 

 

2.13     RELATIONSHIP BETWEEN
ASSURANCE AND CUSTOMER SATISFACTION

           

                   

            Anantha Raj A. Arokiasamy
and Huam Hon Tat (2014) identified that there is moderate and positive
relationship between assurance and customer satisfaction. The finding of that
research also indicates that customers are satisfied with the assurance of
service provided.

           

            Therefore, hypothesis is positive relationship:

 

            H3: There is positive relationship between assurance
and customer satisfaction.

 

 

 

2.14     RELATIONSHIP BETWEEN
EMPATHY AND CUSTOMER SATISFACTION

           

 

            Anantha Raj A. Arokiasamy and Huam Hon Tat (2014)
identified that there is significant relationship between assurance and
customer satisfaction. The finding of that research also indicates that
customers are satisfied with the empathy of service provided to them.

 

            Therefore, hypothesis is
positive relationship:

 

            H4: There is positive relationship between empathy
and customer satisfaction.

 

 

2.15     RELATIONSHIP BETWEEN
RESPONSIVENESS AND CUSTOMER SATISFACTION

           

 

            Responsiveness refers to competency of staff or
willingness to help and assist customers and giving prompt service. Anantha Raj
A. Arokiasamy and Huam Hon Tat (2014) examined that there are significant
relationship between responsiveness and customer satisfaction

 

            Therefore, hypothesis is
positive relationship:

 

            H5: There is positive relationship between responsiveness
and customer satisfaction.

 

 

2.16     RELATIONSHIP BETWEEN
COMMUNICATION AND CUSTOMER SATISFACTION

 

 

            Khaterah AzimiKohan,
Dawood Hosseyninasab and Salar GhanbariErdi (2012) stated that there is a
relationship between communication components and customer satisfaction.
Communication helps in connecting the customers and the service providers.

 

            Therefore, hypothesis is
positive relationship:

 

            H6: There is positive relationship between
communication and customer satisfaction.

 

 

2.17     RELATIONSHIP BETWEEN
IMAGE AND CUSTOMER SATISFACTION

 

 

Davies et al. (2003) had
shown a positive relationship between image and satisfaction. It is support by
the consistent result which stated that customers favor image of store, they
will develop a certain degree of loyalty. Oliver (1997) stated that customer
satisfaction is an important to customer loyalty and success if businesses. In
addition, several empirical study findings confirmed that favorable image will
lead to loyalty, brand equity (e.g. Co, 2003; Kandampully &Suhartanto,
2000; Nguyen & LeBlanc, 1998), purchase behavior and brand performance
(Faircloth, Capella, &Alford, 2001; Biel, 1992; Aaker, 1991; Keller, 1993,
Hsiehet al., 2004, Roth, 1995)

 

            Therefore, hypothesis is positive relationship:

 

            H7: There is positive relationship between
image and customer satisfaction.