Prioritizing Service Quality Dimensions:A Neural Network Approach

Authors: A. Golmohammadi, B. Jahandideh

Abstract:

One of the determinants of a firm-s prosperity is the customers- perceived service quality and satisfaction. While service quality is wide in scope, and consists of various dimensions, there may be differences in the relative importance of these dimensions in affecting customers- overall satisfaction of service quality. Identifying the relative rank of different dimensions of service quality is very important in that it can help managers to find out which service dimensions have a greater effect on customers- overall satisfaction. Such an insight will consequently lead to more effective resource allocation which will finally end in higher levels of customer satisfaction. This issue –despite its criticality- has not received enough attention so far. Therefore, using a sample of 240 bank customers in Iran, an artificial neural network is developed to address this gap in the literature. As customers- evaluation of service quality is a subjective process, artificial neural networks –as a brain metaphor- may appear to have a potentiality to model such a complicated process. Proposing a neural network which is able to predict the customers- overall satisfaction of service quality with a promising level of accuracy is the first contribution of this study. In addition, prioritizing the service quality dimensions in affecting customers- overall satisfaction –by using sensitivity analysis of neural network- is the second important finding of this paper.

Keywords: service quality, customer satisfaction, relativeimportance, artificial neural network.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1327704

References:

[1] W. M. Lassar, C. Manolis, and R. D. Winsor, "Service quality perspectives and satisfaction in private banking", Journal of Services Marketing, vol. 14, no. 2, pp. 244-72, 2000.
[2] R. Bowen, and B. Hedges, "Increasing service quality in retail banking", Journal of Retail Banking, Vol. 15, no. 3, pp. 21-8, 1993.
[3] R. A. Spreng, and R. W. Olshavsky, "A desires congruency model of consumer satisfaction", Journal of the Academy of Marketing Science, vol. 21, pp.169-77, 1993.
[4] A. Parasuraman, V. Zeithaml, and L. Berry, "A conceptual model of service quality and its implications for future research", Journal of Marketing, Vol. 49, pp. 41-50, 1985.
[5] A. Parasuraman, V. Zeithaml, and L. Berry, "SERVQUAL: a multipleitem scale for measuring customer perceptions of service quality", Journal of Retailing, Spring, pp.12-40. 1988.
[6] J. M. Carman, "Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions", Journal of Retailing, vol. 66, no. 1, pp. 33-55, 1990.
[7] J. L. Crompton, and K. J. Mackay, "Users- perceptions of the relative importance of service quality dimensions in selected public recreation programs", Leisure Sciences, vol. 11, pp. 367-75, 1989.
[8] J. J. Cronin, and S. A. Taylor, "Measuring service quality: a reexamination and extension", Journal of Marketing, vol. 56, No. 3, pp. 55-68, 1992.
[9] C. Webster, "Can consumers be segmented on their service quality expectations?", Journal of Services Marketing, vol. 3, Spring, pp. 35-53, 1989.
[10] A. G. Woodside, L. I. Fery, and R. T. Daly, "Linking service quality, customer satisfaction, and behavioral intention", Journal of Health Care Marketing, vol. 9, no.4, pp.5-17, 1989.
[11] J. R. Lehtinen, and O. Lehtinen, "Service quality: a study of quality dimensions". working paper, Service Management Institute, Helsinki, 1982.
[12] V. S. Desai, and R. Bharati, "A comparison of linear regression and neural network methods for predicting excess returns on large stocks", Annals of Operations Research, vol. 78, pp. 127-163, 1998.
[13] R. S. Behara, W. W. Fisher, and J.G.A.M. Lemmink, "Modeling and evaluating service quality measurement using neural networks". International journal of operations & production management, vol. 22, no. 10, pp. 1162-1185, 2002.
[14] B. R. Lewis, and V. W. Mitchell, "Defining and measuring the quality of customer service". Marketing Intelligence & Planning, vol. 8, no. 6, pp. 11-17, 1990.
[15] R. N. Bolton, and J. H. Drew, "A longitudinal analysis of the impact of service changes on customer attitudes", Journal of Marketing, vol. 55, January, pp. 1-9, 1991.
[16] S. A. Taylor, and T. L. Baker, "An assessment of the relationship between service quality and customer satisfaction in the formation of consumers' purchase intentions". Journal of Retailing. vol.70, no. 2, pp. 163-78, 1994.
[17] S. W. Brown, and E. U. Bond, "The internal/external framework and service quality: toward theory in services marketing", Journal of Marketing Management, vol. 19, no. 4, pp. 49-67, 1995.
[18] K. Bahia, and J. Nantel, "A reliable and valid measurement scale for the perceived service quality of banks". International Journal of Bank Marketing, vol. 18, no. 2, pp. 84-91, 2000.
[19] C. Gronroos, Service management and marketing: managing the moments of truth in service competition, Lexington: Massachusetts, 1990.
[20] L. S. Cook, and R. Verma, "Exploring the linkages between quality system, service quality and performance excellence: service providers- perspectives", Quality Management Journal, vol. 9, no. 2, pp. 44-56, 2002.
[21] R. K. Ramazani, "The Constitution of Islamic Republic of Iran", The Middle East Journal, vol. 34, no. 2, 1980.
[22] A. Parasuraman, , V. A. Zeithaml, and L. L. Berry, "Refinement and reassessment of the SERVQUAL scale". Journal of Retailing, vol. 67, no. 4, pp. 42-50, 1991.
[23] C. P. Rao, and J. Ali, "Neural network model for database marketing in the new global economy". Marketing Intelligence and Planning, vol. 20, pp. 35-43, 2002.
[24] A. Vellido, P.J.G. Lisboa and J. Vaughan, "Neural networks in business: a survey of applications (1992-1998), Expert Systems with Applications. 17, pp.51-70, 1999.
[25] W. E. Sasser, R. P. Olson, and D. D. Wyckoff, Understanding service operations, Management of service operations, Boston, MA: allyn & bacon, 1978.
[26] M. Kumar, , F. T. Kee, and A. T. Manshor, Determining the relative importance of critical factors in delivering service quality of banks, Managing Service Quality, vol. 19, no. 2, pp. 211-228, 2009.
[27] D. V. Budescu, "Dominance analysis: a new approach to the problem of relative importance of predictors in multiple regression", Psychological Bulletin, vol. 114, no. 3, pp. 542-51, 1993.
[28] D. V. Budescu, and R. Azen, "Beyond global measures of relative importance: some insights from dominance analysis", Organizational Research Methods, vol. 7, pp. 341-50, 2004.
[29] Y. Ganzach, "Nonlinear Models of Clinical Judgment: Meehl's Data Revisited", Psychological Bulletin, vol. 118, no. 3, pp. 422-429, 1995.
[30] N. Chowdhary, and M. Prakash, "Prioritizing service quality Dimensions", Managing Service Quality, vol. 17, no. 5, 493-509, 2007.
[31] C. Gronroos, "Service quality model and its marketing implications-, European Journal of Marketing, vol. 18, no. 4, pp.36-44, 1984.
[32] R. Johnston, "The determinants of service quality: satisfiers and dissatisfies", International Journal of Service Industry Management, vol. 6, no. 5, pp. 53-71, 1995.