Service Marketing (Servaqual Model)

Customers’ Perception towards the Service

Quality of LABAID SPECIALIZED

HOSPITAL

Course Title: Service MarketingCourse code: MKT-424

Term Paper“Customers’ Perception towards the Service

Quality of Labaid Specialized Hospital”

Submitted to:Mohammed Masum Iqbal

Assistant ProfessorFaculty of Business and Economics and

Economics

Submitted by:Alauddin Ahmed Jahan 072-11-1822Md. Tanvir Hasnat 071-11-1697Happi Akter 071-11-1527Jennat Ara Rahman 051-18-614

Ismot Zerin 072-11-1862Noyon Mazumder 072-11-1922Shamima Akhter 072-11-1803

Section: (A)

Submission date: April26th, 2010

Letter of TransmittalLetter of Transmittal

2626thth April, 2010 April, 2010

Mohammed Masum IqbalAssistant Professor, Assistant Professor, Faculty of Business & Economics,Faculty of Business & Economics,Daffodil International University,Daffodil International University,Dhanmondi, Dhaka- 207Dhanmondi, Dhaka- 207

Subject: Subject: Application for accepting the assignment onApplication for accepting the assignment on “Customers’ Perception towards the Service Quality of“Customers’ Perception towards the Service Quality of Labaid Specialized Hospital”.Labaid Specialized Hospital”.

Dear Sir,Dear Sir,

We have honor to state that we are going to submit our researchWe have honor to state that we are going to submit our research paper on “paper on “Customers’Customers’ Perception towards the Service Quality Perception towards the Service Quality of of Labaid Specialized Hospital" Labaid Specialized Hospital" which you have assigned as awhich you have assigned as a requirement of the course. To complete this research paper werequirement of the course. To complete this research paper we collect information from different textbook & service institutions andcollect information from different textbook & service institutions and also from the Internet.also from the Internet.

We have presented our finding and recommendation as consciouslyWe have presented our finding and recommendation as consciously as we could within the time and resources constraints. This researchas we could within the time and resources constraints. This research paper has enlightened our idea about the Consumer attitudepaper has enlightened our idea about the Consumer attitude towards Bakery Item.towards Bakery Item.

We have tried our best to complete this report. We hope that youWe have tried our best to complete this report. We hope that you would accept our research paper and inform our about mistake. Wewould accept our research paper and inform our about mistake. We are very happy that we have done this research paper with you. Weare very happy that we have done this research paper with you. We shall gladly provide any further information you may wish to know. shall gladly provide any further information you may wish to know.

Sincerely yours,Sincerely yours,

Alauddin Ahmed JahanAlauddin Ahmed JahanIDID- - 072072--1111--1822, Sec- (A) 1822, Sec- (A) BBA, BBA, Daffodil International UniversityDaffodil International University

AbstractAbstractThis study focus on customer perception on the basis of five dimensions of service

quality scale that is developed by Carman (2000) and Kara et al. (2005) to better

understand the factors underlying healthcare customers’ perceptions of service quality.

These dimensions investigated are namely tangibility, reliability, responsiveness,

assurance, and empathy. To make research paper on the basis of this perception we

choose Labaid Specialized Hospital. We conducted sampling at the Labaid

Specialized Hospital from 1st April to 10th April 2010. We convince sampling 50

patients. We want to see the services of Labaid specialized hospital how much follow

5 point Likert-type scale. We survey the quality of the Labaid Specialized Hospital’s

healthcare services. And we analyzed both its effects on customer satisfaction and

loyalty through a regression analysis.

Table of Contents Table of Contents Serial NoSerial No DetailsDetails PagePage

NoNo0101 IntroductionIntroduction0202 Literature ReviewLiterature Review0303 Background of the studyBackground of the study0404 ObjectiveObjective0505 Methodology and data SourcingMethodology and data Sourcing0606 Limitations of the studyLimitations of the study0707 Company ProfileCompany Profile08080909

01. Introduction01. IntroductionIn service industry environment, service quality is the main success key to the

company. For this reason, many company actively doing improvement in service

quality in which they offered to customer. This term paper applies what are the

methods for improving service quality to consumer. First step starts from determining

service attribute based on SERVQUAL dimensions. Colleting consumer preference by

using questionnaire will measure the level of consumer satisfaction and observe

whether any gap happened between expectation and reality. This gap score calculation

shows service attribute performance. Labaid Specialized Hospital is the first

specialized hospital in our country so we choose this for measuring consumer

satisfaction towards service industries in Bangladesh. Last few years Labaid

specialized hospital has been proudly witnessing the astounding pace of progress in

health care delivery system in the private sector in our country. Their doctors have

made remarkable achievements in almost all specialties of medical science. An

especial mention may be made of the situation of cardiac patient care where Labaid

Cardiac Hospital has played a pioneering role in providing definitive, restorative and

rehabilitative services in an environment of privacy, kindness and understanding

based on LABAID spirit of “Care First”.

Labaid Specialized Hospital has been established with the spirit and dedication with a

view to focusing on comprehensive medical care and management services in almost

all the areas of human sufferings. Multidisciplinary medical professionals have

assembled with their expertise and experience on the common platform of Labaid

Specialized Hospital to make it a complete and world-class healthcare service

provider so that their patients will no more have to worry about where to go for best

possible treatment. So, we are trying to evaluate their customers’ perception towards

the Service Quality. We used Service Quality dimension for evaluating its customers’

perception.

02. Literature02. Literature ReviewReview

The depiction service quality as outcome quality, interaction quality and physical environment quality is recently written by Michael Brady and Joseph Cronin in their empirical research published in the “Journal of Marketing”. The dimensions of service quality have been identified through the pioneering research of Parsu Parasuraman, Valarie Zeithaml and Leonard Berry. Their research identified five specific dimensions of service quality that apply in a variety of service contexts. The five dimensions defined are shown in a figure.

Quality is the cornerstone for success in any business and is perceived as a key factor in acquiring and sustaining competitive advantage (Hampton, 1993; Shearden, 1988).

Providing service quality improves satisfaction of customers and this is believed to lead to favorable behavioral intentions and to ultimately affect business success (Iacobucci, Grayson and Ostrom, 1994).

Establishing service quality may be the only way of differentiating oneself. That is why many existing businesses are using enhanced service quality to position them more competitively both domestically and globally (Parasuraman et al., 1988; Brown and Swartz, 1989).

The most widely accepted measurement scale for service quality is the SERVQUAL instrument developed by Parasuraman, Zeithaml and Berry (PZB) (1988). They define service quality as the “difference between what a

service companies should offer and what it actually offers” or the discrepancy between expectations and perceptions of the service performance. To measure customer satisfaction with different aspects of service quality, Parasuraman, Zeithaml and Berry (1988) developed a survey research instrument called SERVQUAL. It is based on the premise that customers can evaluate a firm’s service quality by comparing their perceptions of its service with their expectations. Since its inception, the SERVQUAL has been seen as a generic measurement tool by both academics and practitioners, which can be applied across a broad spectrum of service industries. The SERVQUAL instrument is based on five service quality dimensions that include reliability, responsiveness, assurance, empathy and tangibles (Zeithaml and Bitner, 2000) and they provide the basic “skeleton” underlying service quality, which is represented as a multidimensional construct.

Despite its widespread use in many service industries, SERVQUAL has been subject to several criticisms on conceptual and methodological grounds (Babakus and Mangold, 1989; Brown, Churchill and Peter, 1993; Carman, 1990; Cronin and Taylor, 1992; Spreng and Singh, 1993; Teas, 1993 a, b).

To evaluate the stability of the five underlying dimensions when applied to a variety of different service industries, Mels, Boshoff and Nel (1997) analysed data sets from banks, insurance brokers, vehicle repair shops, electrical repair shops and life insurance firms. Their findings suggest that in reality, SERVQUAL difference scores measure only two factors: intrinsic service quality (resembling what Gröonroos (1982) termed functional quality) and extrinsic service quality (which refers to the tangible aspects of service delivery and “resembles to some extent what Gröonroos (1982) refers to as technical quality”).

In another study, Lam and Woo (1997) found that the SERVQUAL scale was not stable over time, as revealed by insignificant correlations between test scores and retest scores. Although scores on items in the expectation battery remained fairly stable over time, the performance items were subject to instability even in a one-week test-retest interval.

However, existing research on the multi-expectations standards of consumers, zone of tolerance, MSS and MSA is relatively in the exploratory stage in empirical investigations and a number of consumers, situational and other firm specific factors have yet to be empirically tested.

03. Background of the03. Background of the StudyStudy

Labaid Specialized Hospital is the first specialized hospital in our country. Last few years

they have been proudly witnessing the astounding pace of progress in health care delivery

system in the private sector in our country. Their doctors have made remarkable

achievements in almost all specialties of medical science. An especial mention may be made

of the situation of cardiac patient care where Labaid Cardiac Hospital has played a pioneering

role in providing definitive, restorative and rehabilitative services in an environment of

privacy, kindness and understanding based on LABAID spirit of “Care First”.

Labaid Specialized Hospital has been established with the spirit and dedication with a view to

focusing on comprehensive medical care and management services in almost all the areas of

human sufferings. Multidisciplinary medical professionals have assembled with their

expertise and experience on the common platform of Labaid Specialized Hospital to make it a

complete and world-class healthcare service provider so that their patients will no more have

to worry about where to go abroad for best possible treatment.

04. Objective04. Objective

The objective of the study is to

The purpose of this project is to utilize the SERVQUAL scale to assess customers'

perceptions of the service quality offered by Labaid Specialized Hospital.

The various dimensions of service quality of the health care services, the overall level

of service of Labaid Specialized Hospital and the relative importance of each of the

dimensions in influencing consumers' perception of service quality will be examined.

Identify a number of factors shaping the customers satisfaction in hospital service in

Bangladesh taking "Labaid Specialized Hospital" as a case.

Comparing Perceptions of service quality result from a of consumer expectations with

actual service performance.

The acceptability and the perspective of Labaid consumers’ were measured through

statistical analysis of the consumers’ perception and to identify whether demographic

variables like age, occupation, gender, length, reason, expenses, locations, problems

are interrelated.

From the satisfaction and dissatisfaction factors it aims to identify the crucial factors that are

responsible in choosing the service providers. More over it aims to find out the reasons of the

consumers’ perception towards service quality regarding the Labaid service providers.

05. Methodology and Data05. Methodology and Data SourcesSources

We give considerable effort for developing the appropriate sample plan. The target

population of the study involves present Labaid Specialized Hospital customer who are

coming this hospital suddenly. Regularly and sometimes coming with a reason was excluded

from the target population. Therefore the present consumers both male and female were

considering as customer and each customer had some limits that were defined as the sample

unit. The extent of the study on the people who live in metropolitan area of Dhaka city

considers taking the service to out side Dhaka city. The survey was conducted in April 2010

& 50 respondents living in Dhaka.

Since the list of the target population was difficult to apply “Probability Sampling”

technique. In this study “Stratified Sampling” procedure was used to collect the data on

perception of the customer.

In order to measure the constructs in the study, multi-item scales are employed and existing

measures present in the literature are used. All items are measured on a five-point Likert type

scale,

where 1 = strongly disagree and

5= strongly agree.

Getting primary data, interview is conducted with a structured questionnaire during 1st April

to 10th April. The questionnaire comprises one part. This part comprises of 22 where all

question is open ended. Before using the questionnaire, the questionnaire is pre-tested.

After collecting the data (primary data), we processed and tabulated using MS-Excel. Then

we summarized the data in the table by calculating the percentage point for each response in

terms of total number of responding. Final analysis is made based on these responses and

relevant statistics.

Two separate surveys have been distributed to impatient for measuring the quality of

services. First survey explores what are the expectations regarding the perfect hospital, while

the second seeks the actual service delivery of Labaid hospital’s evaluation.

06. Limitations of the research06. Limitations of the researchOur study has certain limitations. First, cross sectional data could be helpful in improving the

representativeness and generelizability of the results. Majority of the respondents in our

sample have only lower levels of education. This shows a bias in their answers in addition to

limiting the interpretation of our measurement tool by the respondents. Our survey has been

conducted in polyclinics such as eye care and internal medicine. A sample with a balanced

distribution among all polyclinics of the hospital would improve the representative ness

significantly. Lastly, replication of this study at other hospitals would strengthen the

implications and improve external validity.

07. Company Profile07. Company Profile

Name of the Company LABAID SPECIALIZED HOSPITALType Limited.

Stand On Mirpur RoadKey People Health care delivery services.

Nature of Business Health checkup packages, corporate check-up services,Products Pharmacy Services and etc.Slogan: Care First

Company Logo

07.01. OverviewIn the last few years Labaid Specialized Hospital have been proudly witnessing the astounding pace of progress in health care delivery system in the private sector in our country. Their doctors have made remarkable achievements in almost all specialties of medical science. An especial mention may be made of the situation of cardiac patient care where Labaid Cardiac Hospital has played a pioneering role in providing definitive, restorative and rehabilitative services in an environment of privacy, kindness and understanding based on LABAID spirit of “Care First”. Labaid Specialized Hospital has been established with the same spirit and same dedication with a view to focusing on comprehensive medical care and management services in almost all the areas of human sufferings. Multidisciplinary medical professionals have assembled with their expertise and experience on the common platform of Labaid Specialized Hospital to make it a complete and world-class healthcare service provider so that our patients will no more have to worry about where to go for best possible treatment.

07.02. Infrastructure and ServicesCentrally air-conditioned, and sprawling over 125,000 square feet of space at each of seven floors, the 250-bed ultramodern facility is one of the most advanced of its kind in the country with wide a range of specialized services, sophisticated equipments & technology, soothing ambience and world-class service quality. Specialized laboratories equipped with state-of-the-art infrastructure use frontline technologies for accurate diagnosis. Patients can choose either twin-sharing or single occupancy rooms, deluxe rooms or super deluxe suites that come with a wide range of patient friendly facilities. There is a 250-seater auditorium with state-of-

the-art acoustics for meetings, seminars, Continuous Medical Education (CME), symposia, educational and training sessions. An in-house cafeteria offers nutritious multicuisine fare for patients and their attendants.

07.03. Mission Statement To participate in the creation of healthier lives within the community. To provide healthcare services in a fiscally responsible manner which contribute to

the physical, psychological, social and spiritual well being of the patients and community which it serves.

To carry on educational and research activities related to the provision of care to the sick and injured or related to the promotion of health.

07.04. Vision StatementLabaid Specialized Hospital will

Create healthier communities by creatively challenging individuals to be more responsible for their personal health status.

Relentlessly pursue unparalleled quality, value, patient, customer and staff satisfaction.

Create the national model for integrated health care service deliver. Be cherished as the best place to come for care and the best place to work.

07.05. Inpatient facilities 07.06. Outpatient facilities250 Inpatient Beds 24-hour Emergency careAdult Intensive Care Units Ambulance & Mobile Critical Care FleetNeonatal Intensive Care Unit Outpatient Surgery CenterPediatric Intensive Care Unit Dedicated patient care provider for each patientRespiratory Intensive Care UnitTransplant Intensive Care UnitDeluxe rooms, VIP Suites and High Care suitesTelephone/fax/e-mail serviceTaxi call/currency exchange/hotel bookingAmbulance serviceCafeteria

07.07. Management Centers Allergy Center Ashtma Center Cancer Center Children's Center Dental Care Center Diabetes Center Dialysis Center Digestive Disease Center Emergency Center Endoscopic Suite ENT Center Eye Clinic Fertility Center

Gastroenterology Clinic General & Laparoscopic Surgery

Clinic Health Screening Center Hepatobiliary Surgical Clinic High Risk Pregnancy Clinic Intensive Care Unit Joint Replacement Center Male Infertility Clinic Neurosciences Center Orthopaedic Center Physiotherapy Center Pulmonary Center Skin Center

Sleep Disorders Center Stroke Center Urology Center

Vaccination Center Well-Women's Clinic

07.08. Special Facilities

1. 10 Operation Theaters

2. MRI, CT and Lithotripsy

3. Digital Radiology

4. 64-slice CT Scanner

5. Critical Care Transport

6. Molecular Biology Lab

7. Video Endoscopy

8. 3D/4D sonography

9. Laser surgery

10. Minimally Invasive Surgery

07.09. Social Responsibility

Labaid Specialized Hospital is committed to help the underprivileged in Bangladesh have

low-cost access to its excellent healthcare services. The Friday Clinics for the poor offer

treatment and clinical lab services at 25% of original fees.

08. Analysis and finding08. Analysis and finding

In our study the patient give their opinion, suggestions and experience that they have had during the service quality in Labaid Specialized Hospital.

08.01. Impact of Reliability Dimension

Does Labaid maintain “Serve with smile” facilities?

Strongly Agree 28Some what agree 13

Neither agree nor Disagree 06Somewhat Disagree 0Strongly Disagree 03

The table dimension that 56% of the patient strongly agreed and 26% agreed that Labaid Specialized maintain this. On other hand 12% are neutral and 6 % are thinking this service they cannot maintain. It is on the basis of employees reacting, behavior to the patient & their relatives. It is based on mind expression.

When you have a problem, Labaid company shows a sincere interest in solving it?



It is mentionable that 22% of the patient strongly agreed and 46% agreed that the company show a sincere interest to solving the problem. Table also shows 14% neutral that they cannot know this. Only 10% strongly disagreed this service. It is based on the advising, taking importance.

Does appointments kept on schedule?



Here 22% patient agreed that they company keep their appointment on schedule. Yet, 46% patient somewhat agreed with this. But 10% opined

that they cannot maintain their schedule. It is based on the time of appointment.

Labaid performs the service right time the first time?



Most of the patient marked positively on this issue because they discovered right time. As a result we found that 78% patient strongly agreed and 6% some what agreed. It is based on the time to time delivery.

Does Labaid maintain diagnoses prove accurate?



Majority 68% patient agree and 18% some what agreed. Only 14% patient are not know is the diagonoses accurate. It is based on the diagonosis report quality, the accuracy of the report,

Overall impact of reliability dimension

PercentageStrongly Agree 49

Some what agree 28Neither agree nor Disagree 14

Somewhat Disagree 4Strongly Disagree 5

We find that Labaid specialized Hospital are most care their customer. Labaid Specialized Hospital promise about their delivery, service provision, problem resolution and pricing. So most of the patient are agree that they maintain “Serve with smile facilities”.

08.02. Impact of Responsiveness Dimension

Can customer easily access the services?



Easily access the service is an important weapon at service quality. These activities helps to retain the customer. The table shows that 22% customer easily access the service where 42% somewhat agree. And 10% strongly disgree.It is based on the procedures time to admit to the hospital.

How much their employees are willing to help you?



It is mentionable that 44% of the patient strongly agreed and 20% agreed that the company willing to help the customer. Table also shows 14% neutral that they cannot know this. Only 10% strongly disagreed this service.It is based on the services provided by employee.

Are customer wait for a long time to take the service?



Here 18% patient agreed that they cannot wait for a long time to take the services. Yet, 42% patient somewhat agreed with this. But 16% opined that they cannot maintain their schedule.Criteria: timing

Employees in Labaid are never too busy to respond to your request?



The table dimension that 18% of the patient strongly agreed and 46% agreed that Labaid Specialized easily respond customer request. On other hand 12% are neutral and 6 % are thinking this service they cannot maintain.

Overall impact of responsiveness dimension




We find that Labaid specialized Hospital are willimg to help the customer. Labaid Specialized Hospital answear the questaion instantely or attention to the problem. But most of the customer feel that they cannot maintain it fully.

08.03. Assurance Dimension

o The behavior of employees in Labaid instills confidence in you?



Employees behavior is an important weapon at service quality. These activities helps to understand customer mind easily. The table shows that 50% customer confidence employees behaviors where 42% somewhat agree. And 10% strongly disgree.

o Are you safe in your transaction with Labaid Hospital?



Majority 72% patient agree and 18% some what agreed. Only 14% patient are not know is the diagonoses safe.

o Are they knowledgeable, good communicated and skilled?



Most of the patient marked positively on this issue because they discovered employed behavior. As a result we found that 56% patient strongly agreed and 26% some what agreed.

o Are they know that thing which are you want to know?



The table dimension that 18% of the patient strongly agreed and 26% agreed that Labaid Specialized Hospital know customer mind. On other hand 32% are neutral and 6 % are thinking they cannot know the customer minds.

Overall impact of assurance dimension




We find that Labaid specialized Hospital employees’ knowledge and courtesyand the ability of the firm and its employees to inspire trust and confidence is high . Labaid Specialized Hospital service is high so that customer percive as high risk or for service of which they feel uncertain about their ability to evluate outcome. But most of the customer strongly feel that this company trust and confidence.

08.04. Empathy Dimension

Labaid gives you individual attention?



Individual attention is necessary to find out the problem of the patient. If patient can easily discuss with the doctor, the doctors can find the problem easily. Most of the patient disagreed but they don't tell any specific reason.12% patient strongly agreed and 10% somewhat agreed that faced more difficulties if the company fall to individual attention.

Can Labaid remember/record customer previous problem?



Most of the patient marked positively on this issue because they found their previous report that Labaid hospital records it. As a result we found that 56% patient strongly agreed and 26% some what agreed. And 16% patients are disagreeing.

Employee of Labaid understands your specific needs?



Majority 76% patient agree and 18% some what agreed. Only 2% patient are know thar the company understand specific needs.

Labaid has operating hours that are convenient to its entire consumer?



Most of the patient marked positively on this issue because they discovered service in operation hours. As a result we found that 22% patient strongly agreed and 32% some what agreed.

Overall impact of empathy dimension




Labaid specialized Hospital caring, individualized attention to its customer. Their empathy is conveying, through personalized or customized service, that customer is unique and special and that needs are understood. So most of the patient who are coming in these hospital they agree this.

08.05. Tangibles Dimension

Are they uses modern medical equipment for the services?



Modern equipment is an important weapon at service quality. These activities helps to create brand image in customer mind easily. The table shows that 94% are strongly agree where 4% somewhat agree. And 0% strongly disgree.

Can Labaid serve written materials?



Written materials means doctor's prescription96% patient strongly agreed and 2% somewhat agreed that company serve written materials to customer.

How much visually appealing material associated with the service?



The table dimension that 18% of the patient strongly agreed and 26% agreed that Labaid Specialized hospital visual appealing materials associated with the service. On other hand 10% are Some what agree.

Overall impact of empathy dimension




Labaid specialized Hospital Represent the Service Physically. They provided physical representations or image of the service that customer, particularly new customer, will use to evaluate quality. So 90% patient strongly agrees that this company tangible service is high.

To overall service quality of Labaid Specialized Hospital is

Figure: Overall Service Quality of Labaid Specialized Hospital

08. Findings of the study (Through the process of Service Quality):

This section finds the following factors:

08.01. Fulfill Customer Requirements: Labaid Specialized Hospital tries to fulfill their customers’ requirements.

They can easily understand the patient's problem. They give the right Pathology and Hospitality towards customers’. They accept VISA Credit Card.

08.02. Fulfill technical descriptors: Labaid Specialized Hospital tries to fulfill their technical descriptors towards customers’ requirements.

Lab Aid use modern equipment.

08.03. Cost Descriptions:

Their Pathological cost is high rather than other standards. Their Operation cost is too high in perspective of general people. Doctors’ fees are in a standard area.

08.04. Obligations by the Service Quality Model:

They are trying to commit their Promise towards “Serve with Smile” Sincere about their customers’ or Patients’. Most of the time their help desk is excess able. Their employees are smart and knowledgeable. Their Nursing and IT department is best of all departments. Their doctors’ and employees are too much committed to serve and give you

information which is best. They use individual ID system towards the customers’.

09. Recommendation:

This section is important for the service to decide about “What to Do” and “What not

to do” for satisfying their customers. Service quality dimensions is a prioritized way

to show which requirements should be fulfilled at the very beginning to have

customers’ satisfactions.

Talk to patients individually.

Increase operating hours.

Must improve the patient record.

Employees must give time to their customers’.

Reducing the cost of Pathological exam.

Have good collection of Doctors’.

Don’t give any neglect throw poor customers.

Focus all the equipments towards the customers’.

Keep the promise.

10. Conclusion:

Documents

Service Marketing (Servaqual Model)