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TERM PAPER
OF
SERVICE MARKETING
TO MAKE SERVICE ENCYCLOPEDIA OF
SARB MULTIPLEX
SUBMITTED TO: SUBMITTED BY:Mrs. GAGANJIT SRAW CHETAN SHARMAHOD & LEC. SERVICES MARKETING REGD NO. 10802057 ROLL NO. R1803A10 (G1)
EXECUTIVE SUMMARY
The report contains all the aspects of service encyclopaedia for Sarb Multiplex, Jalandhar which is a movie theatre with additional facilities like shopping mall, fast food courts, Kids zone. It is first of its kind in Jalandhar region. In this report an attempt has been made by me to cover all aspects of service encyclopaedia expressly service marketing environment, service segmentation, customer requirements and customer expectations, quality concerns for service, Integrated gaps model of service which covers where gap exist between what customer expect and what customer actually receive and also cover employees expectations and what they actually receive, service recovery strategies need to be used by Sarb multiplex, design blueprint of their services, positioning map where they are placed along with competitors, design servicescape which is atmosphere which multiplex offers along with employees, role played by employees and their customer in delivering and consuming services, what channels of integrated service marketing communication they use and new channels they should use, how they price their services, different intermediary delivery channels used by them for their services, management of waiting lines.
SERVICE CHARACTERISTICS
A service is the action of doing something for someone or something. It is largely
intangible (i.e. not material). A product is tangible (i.e. material) since you can touch
it and own it. A service tends to be an experience that is consumed at the point
where it is purchased, and cannot be owned since is quickly perishes. A person
could go to a café one day and have excellent service, and then return the next day
and have a poor experience.
Inseparable - From the point where it is consumed and from the provider of the
service Sarb Multiplex provides entertainment services from its on-site theatre.
Perishable - in that once service has occurred it cannot be repeated in exactly the
same way. Sarb Multiplex does maintain its services in such a way that no theatre in
the region/locality can copy them up.
Variability- since the human involvement of service provision means that no two
services will be completely identical. Sarb Multiplex provides such services which
are not identical to other theatres in locality/region. It does provide services which
are unique.
Right of ownership - is not taken to the service, since you merely experience it. For
example, an engineer may service your air-conditioning, but you do not own the
service, the engineer or his equipment. You cannot sell it on once it has been
consumed, and do not take ownership of it.
SERVICE MARKETING ENVIRONMENT
Political:
· Government type and stability: government of Punjab is stable once it is elected and governs for full five years so government instability doesn’t have any effect on policies of Sarb Multiplex.
· Freedom of press, rule of law and levels of bureaucracy and corruption: press is free to right about what it finds best and criticize what it doesn’t find good so Sarb Multiplex have to be at toes in providing same standard of service what everyone expect moreover they are free to advertise anything.
· Regulation and de-regulation trends: government policies of standardizing level of entertainment and deregulating trend of showing movie after 12 in the night affected Sarb Multiplex.
· Social and employment legislation: employment regulations are always in favour of employees with each and every employee is a member of one employee union or the other so Multiplex will always have to keep its employees interest at the top.
· Tax policy, and trade and tariff controls: at this time Sarb multiplex is giving 30% of their profits in the form of taxes moreover tariff on showing new movies is also high so as to protect piracy is also high.
· Environmental and consumer-protection legislation: regulations passed for securing noise pollution, air pollution, land pollution are all affecting Sarb multiplex.
· Likely changes in the political environment: change in political party and new policies of new government will affect working of multiplex.
Economic:
· Stage of business cycle: Sarb Multiplex is in growth stage of business cycle as people of Punjab are getting used to enjoying social high end service when it comes to entertainment so multiplex has large market share to gather and huge profits to be made.
· Current and project economic growth, inflation and interest rates: high rate of inflation and interest rates will effect liquidity position of people and in turn effect business of multiplex as it comes secondary to fulfill necessities. Moreover interest rate hike will affect multiplex to expand further.
· Unemployment and labour supply: Low level of unemployment as compared to other states and high rate of efficient labour supply compact for the work in Multiplex will always be in favour of Multiplex.
· Labour costs: the quality of work will always demand high compensation to employees moreover low level of unemployment and work efficiency would require high payment so labour cost will always be high.
· Levels of disposable income and income distribution: level of income and income distribution is high in Punjab as compared to other states so this will also act in favour of Multiplex.
· Impact of globalization: this will work in favour of Multiplex as consumer will averse with the standard of entertainment service provided at global level.
· Likely impact of technological or other change on the economy: changing technology is affecting each and every business from small to large so this would affect Multiplex also.
· Likely changes in the economic environment: with the development of India as superpower in the world Multiplex have huge opportunity in front of it.
Socio-Cultural:
· Population growth rate and age profile: growth rate of population in Punjab is high average age people here is 15-40 which target group of Sarb Multiplex is so this will also work in favour.
· Population health, education and social mobility, and attitudes to these: education level, nutrition level, social level of people of Punjab (especially Jalandhar region) is high which indicates its prosperity which is targeted by Sarb multiplex.
· Population employment patterns, job market freedom and attitudes to work: employment pattern of people here is generally self in the form of farmers as region is famous as agricultural belt of Punjab; job market is also open as multi-national as well as famous domestic brands are exposing themselves here from metro cities to utilize raw talent here with positive attitude.
· Press attitudes, public opinion, social attitudes and social taboos: this also work in favour of Sarb Multiplex as high level of Press involvement in every work.
· Lifestyle choices and attitudes to these: lifestyle of people has always been high compared to other states by looking at standard of living of people, 90% of people have their own sheds/houses rather than on roads.
· Socio-Cultural changes: people of Punjab are very social and respect their culture and are strict for their religion so Sarb multiplex has to operate accordingly.
Technological Environment:
· Impact of emerging technologies: with emerging technologies the cost to acquire these is becoming less and less so people have started owing these technologies which is acting against interest of Sarb Multiplex. · Impact of Internet, reduction in communications costs and increased remote working: with the exposure of internet in every nook and corner of country and easy access to every information and entertainment source is playing a huge negative effect.
· Research and Development activity: if some parts of profits is contributed towards conducting surveys among the region and gather information about interest of people then it can act in favour of multiplex.
· Impact of technology transfer: with increasing cost of research and development at global level and easy transference of technology it can act in favour.
SERVICE SEGMENTATION
A popular way to segment customers is by revenue, or profit generated with "A-list"
customers receiving more perks and personal service than "lower" categories. There
are right and wrong ways to do this. Doing it right means cultivating customers so
they all feel appreciated, by developing or improving services to meet each customer
segments' needs. Result: pleased customers and higher profit. Doing it wrong creates
risk of sub-standard service for "unimportant" customers, making them feel
unappreciated and resentful. Result: missed profit opportunities and disgruntled
customers. Sarb Multiplex generally segment people with age as it targets people of
more than 13 yrs of age where students have finished their schooling as mentioned in
privacy policy of multiplex.
.
SERVICE MARKETING MIX
The services marketing mix is an extension of the 4-Ps framework. The essential
elements of product, promotion, price and place remain but three additional variables
– people, physical evidence and process – are included to 7–Ps mix. The need for the
extension is due to the high degree of direct contact between the CE providers and the
customers, the highly visible nature of the service process, and the simultaneity of the
production and consumption. While it is possible to discuss people, physical evidence
and process within the original-Ps framework (for example people can be considered
part of the product offering) the extension allows a more thorough analysis of the
marketing ingredients necessary for successful services marketing.
Product :- A product with many different features provides customers with complete
entertainment of movie watching, opportunities to chat, play games, shop in mall
having world class brands, kids-zone.
Price:- Sarb Multiplex wants to make its services accessible to as many people as
possible: from the young, through apprentices and high powered business executives,
to the more mature users. It offers various pricing structures to suit different customer
groups.
Monthly price plans are available as well as prepay options. Phone users can top
up their phone on line.
Promotion:- Sarb Multiplex works with icons such as Harbhajan Singh to
communicate its brand values.
Above the line
Advertising on TV, on billboards, in magazines and in other media outlets reaches
large audiences and spreads the brand image and the message very effectively.
This is known as above the line promotion.
Below the line
Stores have special offers, promotions and point of sale posters to attract those
inside the stores to buy.
Sarb Multiplex's stores, its products and its staff all project the brand image. Sarb
Multiplex Essar’s advertising campaign
Promotional mix
Advertisements – TVC, Print, Radio, hoardings
Value added services ads – Visual ads supported by Print ads
Events/programs – show watching as price for giving correct answer to a
question asked by TV/radio shows.
Sales Promotions – Special prepaid bundle for Diwali, and other festivals.
Value Added Services of Sarb Multiplex needed more promotion
IPL had lot of scope to be taken advantage
People – because of the simultaneity of production and consumption in services the
CE staff occupy the key position in influencing customer’s perceptions of product
quality. In fact the service quality is inseparable from the quality of service
provider. An important marketing task is to set standards to improve quality of
services provided by employees and monitor their performance. Without training
and control employees tend to be variable in their performance leading to variable
service quality. Training is crucial so that employees understand the appropriate
forms of behaviour and trainees adopt the best practises of the andragogy. Sarb
Multiplex actively develops good public relations by sending press releases to
national newspapers and magazines to explain new products and ideas.
Physical evidence – this is the environment in which the service is delivered and
any tangible goods that facilitate the performance and communication of the
service. Customers look for clues to the likely quality of a service also by
inspecting the tangible evidence.
Internet/web pages.
Paperwork (such as invoices, tickets and dispatch notes).
Brochures.
Furnishings.
Signage (such as those on vehicles).
Uniforms.
Business cards.
The building itself
Process –
This means procedures, mechanism and flow of activities by which a service is
acquired. Process decisions radically affect how a service is delivered to customers.
Sarb Multiplex recruits high quality staff treat them well and communicate clearly
to them: their attitudes and behaviour are the key to service quality and
differentiations
They attempt to market to existing customers to increase their use of the service,
or to take up new service products
There is set up of a quick response facility to customer problems and complaints
They employ new technology to provide better services
They use branding to clearly differentiate service offering from the competition in
the minds of target customers
CUSTOMER REQUIREMENTS & CUSTOMEREXPECTATIONS
When it comes to quality of service, customers have higher expectations than ever.
They want nothing less than a superb customer experience from their providers. With
narrowing choice from competing theatres in Jalandhar and no compelling reason to
remain loyal, consumers can, and will, vote with their feet. Whether a company is
new to the market, or well established, it’s clear that providing superb customer
experiences has to become part of an organization’s DNA in order for it to bolster
customer advocacy and reduce unwanted churn.
Traditionally, there has been a high cost associated with providing a superb customer
experience. The tightrope is the balancing act providers perform when trying to
balance delivering great customer experiences with controlling and even reducing
costs.
However, Sarb Multiplex has mastered the tightrope and are delivering exceptional
customer service with very lean operations.
The ability to differentiate brand through the delivery of exceptional customer
experiences, while tightly managing costs, is something that Sarb Multiplex adopted
from the beginning—recognizing it to be the new battleground of customer loyalty
and a critical driver in recruiting new customers. Sarb Multiplex is known for its
heavy brand investment and a complex product portfolio, and the service are
differentiated by offering tailored products at competitive price levels.
From the outset, Sarb Multiplex’s criteria for successful market entry determined that
delivering satisfactory customer experiences was essential.
STRATEGIES USED BY SARB MULTIPLEX TO MEET CUSTOMER
EXPECTATIONS
Differentiated product
Simple price structure focused on essentials
High price point(compared with competitors)
Long term commitment
Alternative channels
Low acquisition costs
Focus on online sales
Leverage community effect
Lean operations
High online self-service
Simple product features
Strong brand
Build up brand and/or leverage channel asset
“Trust” in company key for final purchasing decision
An online only sales channel, and the need to keep acquisition costs to a
minimum, was dependent on building a community of satisfied customers happy
to recommend Sarb Multiplex to others.
QUALITY CONCERNS
Sarb Multiplex’s concern and priority is to satisfy customers, by understanding and
foreseeing their needs, as well as covering their demands and expectations and by
providing products and services of exceptional quality.
Sarb Multiplex defines quality as the possibility to exceed the demands and
expectations of its customers and people through the continuous improvement of the
operation of the processes and systems.
Sarb Multiplex’s quality concern is committed to…
1. Ensuring compliance with all the requirements of the Quality Management
System.
2. Realizing vision through every day work and performance.
3. Continuously improving business in order to achieve their strategic goals.
Quality of Services
Ιn the scope of developing services that correspond to customers' needs, Sarb
Multiplex, has adopted a specific framework of systematically assessing quality of
services end-to-end, from their concept and planning phase until their delivery to the
market. This framework includes the following methods:
Service Evaluation
Service evaluation is conducted aiming to ensure that new products and services are
designed, developed and implemented according to quality requirements, company
policies and processes aiming to meet customer needs. Quality standards of new
services and products are verified through specific benchmarking trials, prior and post
launch, against initial technical and quality specifications.
Quality of Service (QoS) Monitoring
One of the most important methods for target setting and network development
prioritisation is to simulate and understand customers' perception on the use of movie
entertainment. The fundamental indicators demonstrating QOS achieved by Sarb
Multiplex – Daily customer turnover is the “Service Success Rate (SSR)" (the
percentage of successfully set-up, maintained and released calls, as perceived by the
customer), the "Customer waiting time"(assessing the speedy services) and the
“support service failure percentage” (evaluating the strength of support services).
Suppliers & Partners Performance Evaluation
Sarb Multiplex in order to develop mutual trust and cooperation with its main
Partners, systematically assesses the quality of this cooperation. The assessment aims
to identify areas for improvement and to implement appropriate actions in order to
achieve mutual beneficial synergies
Participation in Sarb Multiplex Group Network & Service Quality Team
Sarb Multiplex- Daily customer Turnover, aiming to measure quality of all services
and especially those conveyed on new technologies, participates in the Sarb Multiplex
Group Network & Service Quality Team. The purpose is to:
o Plan and introduce Quality of Service (QoS) indicators for services that are
implemented within the framework of large corporate projects
o Ensure the use of quality plans and measure their implementation
o Identify required changes in the company, in order to incorporate new services
and technologies
THE INTEGRATED GAP MODEL
For Sarb Multiplex the knowledge gap is high as information collected through survey is restricted to people who have already consumed their services, their information is based upon what other theatres who are offering same standard of service as they are offering in other geographical location. They have not been able to collect information about what customer outside their target market expect from them in order to gain additional market share. Though the information collected by them from their target customer is adequate and they have been able to reach their expectation level. But one thing that works well for multiplex is low level of bureaucracy and organizational layers so consumer expectations are directly derived to functional level.
The information collected through surveys is classified and interpreted well but for their target customers but information collected to increase market share is not adequate so planning done for their target group is what is expected from managerial level, goals of organization for their target group of customers are clearly defined and customers are satisfied but planning is not up to the mark for other group who can be their future customers. So standard gap which is GAP 2 is less.
The third level of GAP is low in Sarb Multiplex with clear cut defined role for each employee in the organization. Every employee is clear about the standard of quality needed for his work. For eg. A security guard know that he should keep proper vigil on every individual entering the premises, usher knows that he should lead every customer to his seat and take proper care of his comfort and convenience, a restaurant knows that standard of food should reflect multiplex’s image. There is no role ambiguity as every employee is clear about his place and duty. The support staffs know the importance of substitute services for customer and they are always ready to help. The technology used from presenting movie to toilets is really up to date. Proper co-ordination from parking keeper in the beginning to parking keeper in the end is up to the mark. Every employee has been appointed and given duty according to his ability which means proper job fit.
Sarb Multiplex always follows a policy of under-promising and over delivering. There is direct communication from managerial level to functional level and vice versa so the 4th GAP is very low.
SERVICE RECOVERY STRATEGIES
Service is involved with the need to satisfy the customer. Professional business firms
attempts to sell their competence and build reputation. Service organizations
occasionally make a mistake and might mistreat their customers. A good service
recovery can turn a disgruntled customer into loyal one and turn a frustrating
experience into a fond memory. One way to enhance service recovery us to motivate
the front line employees to identify problems and empower them to correct service
mistakes.
Sarb Multiplex's reputation depends on earning the trust of its customers. Their
loyalty is vital to the long-term success of their business. Important consumer issues
include the clarity of pricing, the responsibility of marketing material, the way they
handle customer privacy and measures to protect customers from inappropriate
content, contact and commercialism. They also address other consumer issues such as
enjoying social status along with standardized movie entertainment, safety and
cleanliness.
Customers can now access information and book ticket by registering on the site
which will save your personal information and it will not demand for information
when new booking is to be done not even login id and password as the site have
special features of saving login and password through cookies in Laptops/PC and
directly access when ever new access is made to site which make ticket booking all
the more easy. These technologies bring significant benefits to our business and
personal lives, but can also raise concerns about misuse.
Developing a Service Recovery Program
• Measure the costs
• Actively encourage complaints
• Anticipate needs for recovery
• Respond quickly
• Train employees
• Empower the front-line
• Close the loop
Dimensions of service recovery strategy
• Availability Product or service is easily available• Guarantee The personals are polite, kind and educated• Communication Clients receive information on all products and
services and their changes in the language they can understand• Expertise The personnel has the necessary knowledge and skills to produce
and sell products or provide services• Standard Products and services are up to the standard• Behaviour Kindness, good manners and care of the personnel towards
clients• Flaw Each quality that is not defined and affects the satisfaction of the
client• Duration Performance, service result or product last longer• Engagement The personnel shows understanding and gives individual attention
to each client• Humanity Product or service are provided so as to preserve dignity and
self-respect of the client• Effects Product or service produces the expected effect• Reliability Capability to sell products or provide services in a discreet and
Reliable manner• Responsibility Definite duration of providing of services• Safety Product or service are provided in the safest possible way,
without any kind of risk or danger
Recovery Strategies Replacement
Free ticket
Nothing
Apology
Correction
Discount
Manager Intervention
Coupon
Drafting Positioning maps:
Friends cinema
Laxmi CinemaLal Rattan
Krishna Cinema
The Sarb Multiplex has the best service in customer service and also the prices are
high as compared to other competitor in the market. They are the leader in the market
in the sector. (This comparison is for the Value Added Service provided by both
them). The other service providers are differently rated in the positioning map.
PRICING STRATEGY:
The Sarb Multiplex is following Value based pricing strategy as they base their
service as providing high end value to customers as compared to their competitors and
alternative services. Sometimes they use Optional pricing to increase the amount
customer spend once they start to buy. Optional 'extras' increase the overall price of
the service such as guaranteeing a window seat or reserving a row of seats next to
each.
High (customer service)
High Price (price)
Low (customer service)
Low Price (price)
Narendra Cinema
Sarb Multiplex
Sant Theatre
Jyoti Cinema Naaz Cinema
Sanam Cinema
EMPLOYEE AND CUSTOMER ROLE IN SERVICE DELIVERY
The servicescape of Sarb Multiplex is designed around a customer helping self with
the service .The role of service employees is limited. Customer performs most of the
activities, either on their own or with a little help from the provider. Examples are
ATMs, cinema hall, parking, entertainment and self service restaurants etc. The
service provider has planned the facility exclusively with the customer in mind. The
facility design attempt to position it for the desired market segment, by making the
facility pleasing and appropriate to use for them.
SERVICES CAPE
The importance of the servicescape (the physical facilities of a service company), the
effect of the servicescape on quality perception has been inadequately captured by
previous empirical research. The purpose of this paper is to examine the impact of the
servicescape on perceived quality in a more comprehensive way.
A REMOTE SERVICESCAPE
In Sarb Multiplex there are service settings where there is little or no customer
involvement in the servicescape. The servicescape here is an example of remote
encounters. These use remote servicescape. They are back office .The place has been
designed to keep employees’ motivated and morale high. The servicescape
premeditate ergonomically to facilitate teamwork, supervision and operational
efficiency.
Servicescape has been Designed Specifically by Using these Four Components:
Package
Total Servicescape ‘package’ and the services offered by Sarb multiplex communicate
an image to the customers of what they are going to get. It is the human
demonstration of the service idea for interest groups to form a shared appreciation and
observable image for an intangible service. They are predetermined to render an
intended image to the service concept and bring to mind a particular sensory and
emotional reaction that sets the stage for a useful experience that augments the
effectiveness of the offer. Appropriate servicescaping is a sure shot way to create an
image that the multiplex is seeking to put up. It also helps moderate customer
expectation and reinforces his experience and memories. Servicescape is an outward
appearance of organization and thus can be critical in forming initial impressions or
setting up customer expectation.
Facilitator
Another important servicescape of SARB MULTIPLEX is to act as and a facilitator in
assisting both the customers and service employees to make most of the opportunity it
should make the service consumption comfortable convenient for the customer. For
employees it makes pleasant to conduct activities. This setting is designed so as to
enhance or inhibit the efficient flow of activities in the service setting making it easier
or harder for customer and employee to accomplish their goals.
Socialiser
Design of servicescape in Sarb Multiplex aids in socialization of both the customers
and employees, conveying expected roles, behaviour and relationship. Compare the
servicescape of Sarb Multiplex provided with that of any other theatre of Jalandhar. In
other theatres a large part of the floor is marked as restricted, leaving little space in
the form of an arrow passageway along the outer walls of the hall for customers. The
message is clear –customer must not enter the restricted area, that is where the most
important job of the service, internal operations, is conducted and by entering that
area, customers will be interfering with that task. Whereas Sarb Multiplex approach
customers with convivability. The air conditioned lounge with comfortable seats and a
cold water dispenser as you pass through a spotlessly clean glass door, makes
customers feel welcome. They are allowed more space to move and occupying a seat
across from executive’s desks suggests that customer is indeed central to all activity.
The service with public operator also suggests that customers have a formal –official
relationship with public service users, whereas servicescape in Sarb multiplex
encourage relaxed- friendly interactions.
Differentiator
With the layouts a customer can make out what kind of operator it is. A dominance of
dark glowing colourful lights, cool environment high esteemed services differentiates
it from other theatres. Clothes and pre-laid cutlery differentiates a restaurant from
other with flour cent colours and pattern on the walls, blasting music, crowded with
young boys and girls and motorcycles and cars arranged in proper setting at parking in
front. Clearly the design of the servicescape differentiates one provider from its
competitors, and hints at the segment the services are targeted at. Companies adapt
servicescape to reposition the services or identify new customer segments.
Conclusion
Although it is useful from a strategic point of view to think about the multiple roles of
the servicescape and how they interact making actual decision about servicescape
design requires an understanding of why the effects occur and how to manage them.
The roles played by servicescape in a particular situation will aid in identifying
opportunities and deciding just who needs to be consulted in making facility design
decisions..
Practical implications – Service providers should give careful consideration to their
servicescape. In accordance with findings from environmental psychology, the
servicescape may not remain limited to tangible elements, but must also consider
ambient components such as odours and background music.
INTEGRATED MARKETING COMMUNICATION
Five components of IMC are:
Advertising: Multiplex is using this component through hoardings at places like PAP chowk, Domoria Flyover and it should focus on providing flex boards and signage at locations outside hotels and university/colleges campus.
Personal Selling: it is a main component of IMC. Sarb Multiplex can use it by employing sales force who can target people staying in hotel for 4-5 days in the city, college and university students who can provide on the spot booking
Public Relations: through offering high end full packaged services to their customers they are setting good public relation which in turn acts as self advertisement in form of positive word of mouth.
Sales Promotion: offering discounts on tickets for regular customer, booking of tickets for first day first show to customers’ often using service, giving special seats to customer in halls to frequent purchaser, making new customers their regular through their services.
Direct Marketing: this component can be used by taking feedback from customers coming out after watching show by random choosing them, this would develop a good customer relation as customer would feel that he has been given importance
DELIVERING SERVICES THROUGH INTERMEDIARIES
Intermediaries here can be the people who are selling ticket in black at rate higher than normal rate of show. These are not the permanent employees of theatre but are kept to provide intermediary service.
Intermediary can also be the websites which doesn’t have any connection with multiplex’s site but can book ticket and register.
Intermediaries are FM RADIO Jalandhar or any other TV channel which are providing tickets in the form of prize to listeners/viewers who have given correct answer to their questions.
Intermediary can be any showroom/company using sales promotion technique of providing tickets to watch movie in theatre when certain extent of purchase of their product has been made by customer.
MANAGING WAITING LINES Multiplex is open from all four sides and parking consist of aisles having multiple
lanes with rows of parking spaces between each one. Except for rather small lots, the location of the parking spaces for each vehicle is usually indicated with pavement markings or lines, similar to centre lines on streets.
Multiplex have multiple windows for taking tickets which consumes less time of customer.
Multiplex have got shopping mall, fast food court, kids zone where customer can utilize their time when the show is already going on.
Hall has got multiple entry and exit doors so as to manage waiting lines.REFERENCES
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