The relative importance of dimensions of service encounter quality and service quality in customer satisfaction of Bank Mellat in Meshginshahr city

Dissertation for Master's Degree in Executive Management

Marketing Orientation

Abstract

The purpose of this research is to investigate the relative importance of service encounter quality and service quality dimensions in the satisfaction of Mellat Bank customers in Meshginshahr city using descriptive-correlational research method. For this purpose, according to the objectives of the research, 150 customers of Bank Mellat branches were selected as a statistical sample and by simple random sampling from among the available members, and by using questionnaires on the quality of service encounter, service quality and customer satisfaction, information was collected. The validity of the used questionnaires was confirmed according to the opinions of management experts and the reliability of this tool was calculated using Cronbach's alpha coefficient of 0.769, 0.880 and 0.784 respectively. The data were analyzed using Spss software version 15 after collection, and research hypotheses were analyzed using Pearson's correlation coefficient tests and Johnson's relative importance technique. The results of the hypothesis test showed that there is a significant relationship between the dimensions of service quality and service encounter quality with customer satisfaction. Also, the results showed that among the dimensions of service encounter quality, employee friendliness has the highest relative importance, and among the dimensions of service quality, tangible service has the highest relative importance in customer satisfaction.

Key words: service quality, service encounter, customer satisfaction, Bank Mellat.  

Chapter One:

Research Overview

1-1- Statement of the Problem

In the past, due to several reasons such as increased demand on supply and limited competition in various fields, the demands and needs of customers were not paid much attention and people had to receive the goods or services they needed with any quality. But in the current situation that we are facing, new approaches in public administration are increasingly seeking to improve the quality of public services provided to citizens, and governments in different countries of the world are paying more attention to this issue day by day. Government organizations use quality-related strategies to improve the state of responding to citizens and planning for clients, making service delivery more timely and reducing their costs, and in this way, they strive to increase the efficiency and effectiveness of government services (Berman et al. [1], 2001). In addition, paying attention to quality in the public sector is very important because creating distinction in the provision of government services leads to an increase in the quality of people's lives (Donnelly [2], 1999; translation: Elwani and Dede Beigi, 2016)

Marketing[3] is at a stage in its evolution where marketers are not only thinking about finding new customers, and nowadays the purpose of marketing is to manage demand by pushing the customer to the point of maturity in the loyalty ladder. It is organizations. Today, customer satisfaction is no longer enough, and companies and banks should not be satisfied with the satisfaction of their customers. They need to make sure that their satisfied customers are also loyal. In this paradigm, the goal is to establish long-term and mutual relations with interested groups and, most importantly, with customers in such a way that they retain more customers and lose fewer customers. In this way, in the long run, benefits are obtained, which increases the market share and profitability of companies (Salari, 2012). They consider customers as valuable assets and ask all their employees to take appropriate measures to keep customers satisfied and thus become loyal or remain loyal (Venus, 2008). Service quality[4] has received serious attention as one of the most important factors determining the success of service organizations in the competitive environment today. Any decrease in customer satisfaction due to low quality of service causes concerns for service organizations. Customers have become more sensitive to service standards, and along with competitive trends, their expectations and demands for service quality have also increased (Fullerton [5], 2003).

In the field of service quality, a model is more acceptable, whose dimensions include: tangibility, reliability, responsiveness, assurance, and empathy (Parasarman et al. [6], 1985). Services include various activities in order to respond to the wishes and desires of the customer.. From the customer's point of view, one of the direct signs of service quality is when they encounter the service or the decisive moment. Due to the interpersonal nature of services, customers make their evaluations based on their perception of the service encounter. Commercial service companies, like their customers and personnel, need serious attention to service exposure and its quality, because good service exposure gives them a competitive advantage and leads to repeated customer purchases and positive word-of-mouth advertising [7]. The quality of the service encounter also includes the professionalism of the employees, the politeness of the employees, the intimacy of the employees with the customers and the competence of the employees (Haj Karimi et al., 2018). The basic research question is what is the role of each of the dimensions of service quality and the dimensions of service encounter quality in customer satisfaction? 1-2- Necessity of conducting research The service sector has enjoyed significant growth in recent years, such that its share in the global gross product is more than other sectors. It is known that the basic trends of the second half of the 20th century have led to the transition of the economy from industrialism to service-orientation (Hut et al.[8], 2007). Accordingly, service plays an important role in the marketing plans of many commercial companies, and service excellence is part of the value package demanded by customers. Therefore, in competitive and free markets, strategies such as providing quality services have attracted the most attention (Frederik et al. [9], 2000). In the concepts of service marketing [10], communication between people is considered as the main element in providing services, and service industry researchers have come to the conclusion that establishing this relationship can have a positive effect on organization-customer relations [11] (Miravisi, 2018).

Recently, in the field of service marketing and service quality, special attention has been paid to the importance of customer perceptions of the service encounter, which also includes the basic topic of this research. Today's society expects from the banking system that, while trying to attract deposits and their appropriate allocation in useful economic activities that ultimately lead to the profitability of banks and credit institutions, it moves in parallel with all-round economic and social developments so that it takes effective steps in fulfilling the expectations and needs of customers and aligns itself with the needs of the society.

A case that is evident in most researches as a gap and the present research seeks to solve it. The point is, what is the role of each of the dimensions of service encounter quality and service quality in customer attraction and satisfaction, and is the priority of influencing these factors on customer attraction and satisfaction the same?

The present study is important. From a theoretical point of view, it can improve policymakers' understanding of the variables found in the literature on customer attraction and satisfaction. From a practical and practical aspect, it can prepare a series of guiding and key principles that will reduce the individual policies of policymakers and help the application of organization-oriented policies. 1-3- Research objectives 1-3-1- Ideal goal 1-3-1- Ideal goal to improve the satisfaction of Bank Mellat Meshkinshahr branch customers 1-3-2- General goal 1-3-2- General goal To know the effect of service quality dimensions and service encounter quality dimensions on customer satisfaction.

1-3-2- Special objectives

1- Knowing the relationship between the quality of service encounter and customer satisfaction

Knowing the relationship between the professionalism of employees and customer satisfaction

Knowing the relationship between the politeness of employees and customer satisfaction

Knowing the relationship between the intimacy of employees with customers and customer satisfaction

Knowing the relationship between the competence of employees and customer satisfaction

2- Knowing the relationship between service quality and customer satisfaction

Knowledge of the relationship between service tangibility and customer satisfaction

Knowledge of the relationship between trustworthiness and customer satisfaction

Knowledge of the relationship between responsiveness and customer satisfaction

Knowledge of the relationship between assurance and customer satisfaction

Knowledge of the relationship between empathy and customer satisfaction

3-Knowledge of the relative weight of encounter quality dimensions in influencing customer satisfaction

4-Knowledge of the relative weight of encounter quality dimensions in influence of customer satisfaction

1-4- Research hypotheses

Hypothesis 1: There is a significant relationship between the quality of service encounter and customer satisfaction.

There is a significant relationship between the professionalism of employees and customer satisfaction.

There is a significant relationship between the politeness of employees and customer satisfaction.

There is a significant relationship between the intimacy of employees with customers and customer satisfaction.