ProblemIdentification
PowderCoatings
Powdercoatingwhichisadryfinishingprocessthathasbecomeextremelypopularsinceitsintro ductioninNorthAmericaover40yearsago.Representingover15%ofthetotalindustrialfinis hingmarket,powderisusedonawidearrayofproducts.
Increasingly, companies are turning to powder coatings for their high-quality and durable finishes, which enhance production efficiency and simplify environmental compliance Available in a vast array of colors and textures, powder coatings serve both functional and decorative purposes These coatings are created from polymer resin systems mixed with various additives, resulting in a uniform powder similar to baking flour The application process typically involves electrostatic spray deposition, where a spray gun applies an electrostatic charge to the powder particles, attracting them to a grounded metal substrate Once applied, the powder is cured in an oven, where heat initiates a chemical reaction that forms long molecular chains with high cross-link density, making them highly resistant to breakdown Additionally, powder coatings can be used on non-metallic substrates such as plastics and medium-density fiberboard.
AkzoNobelPowderCoatingVietNam
AkzoNobelPowderCoatingsistrulyglobalbusiness,witharound4,000dedicatedempl oyeesspreadthroughoutfivecontinents,headofficeinSassenheim,TheN e t h e r l a n d s Theyhavearound30manufacturingplantsin20countriesandhavesalesofficesandrepres entativesinmorethan40countriesaroundtheworld.Theyservethemarketwithtwoglobalb randsareInterponandResistcoattosupplyto9keymarketsectors–
ACE,Appliance,Architectural,Automotive,Functional,Furniture,Generalindustry,I TandTradecoaters.Theycoateverythingfromwindowframing,buildingfacadesandcu rtainwallstofurniture,officeequipment,radiators,andcomputers,cars,plasticandeven wood.
Theircoreprinciplesaresafety,integrityandsustainability.Theseworkinharmonyw i t h thev alues–
- 2001:JoinVenturebetweenAkzoNobelCoatingsInternationalBV(50perce ntages)andChangChengSecuritiesHongKong(50percentages)
NameofCompany:AkzoNobelPowderCoatings(VietNam)LimitedCompanyFactory: Road2,NhonTrach1IndustrialPark,DongNaiProvince,VietNamOffice:FlemingtonT ower,182LeDaiHanhStreet,District11,HoChiMinhCityTelephone:+84613650730
Totalleased land:10,000m 2 ,lastfor46yearsatthefeeofUSD $8.2 thousands/year,currentlyoccupied100percentages.
AkzoNobelPowderCoatingsVietNam(ANPCVN)whoistodayleadingsupplierp o w d e r c oatingsformorethan300buyingcustomersinVietNam,isoneofthemanycompaniesthat havebeengoingthroughtheservicetransition.Theyoffer differentservicesincludingpre-sales,during-salesandafter- salesservices,suchasc o l o r matching,linetrial,andbenchmarkingaswellascomplaintse rvicesfortheircustomers.
On-time-in-full (OTIF) Deliveryserviceontimeforcustomerswithoutanydelaying
Ovenchecking,lineaudit,benchmarkt h e customer‟sprodu ctionline
ManagedServices(MS) ANPCVN takesresponsibilityforcustomeroperationswhenusingitspo wder
ProblemJustification
TheANPCVN‟ssalesperformancein2015decrease8percentagescomparedtop r e v i o u s y earwhichboardofmanagementpayattentiontowhilethemarketgrowthisevaluated13perce ntages.Meanwhile,thenumberofcomplaintincreaserapidlyf r o m 87to148issues(thejust ifiedproblemislessthan).InterviewingtheSalesManagerandKeyAccountManagers,theyc oncernabouttheproductquality,customers‟feedbackandAccountManagersTeam‟scompeten cy.Personally,SalesManagerbelievestoevaluatetheproductqualityofANPCVNisverygoo dand competitiveinthemarket.Hejudgesthattheproblemcomesfromthelowcustomers‟satisfac tion.
Numerous studies highlight the critical role of customer satisfaction in fostering retention and loyalty, which are essential for securing future revenues By achieving high levels of satisfaction, businesses can reduce future transaction costs, lower price sensitivity, and minimize complaint behavior Additionally, customer satisfaction positively influences brand image, company reputation, and encourages positive recommendations It also enhances employee motivation and helps identify areas for improvement However, customer satisfaction can vary significantly among individuals; what satisfies one customer may not satisfy another Therefore, to maximize customer satisfaction, it is vital to understand the factors that influence it Ultimately, improving the quality of products or services is essential for ensuring customer satisfaction and fostering loyalty.
ThecustomersatisfactionsurveywhichisaccordingtoitemsforMeasurementofI n t e r n a l , ExternalServiceQualityandConsequenceofOrganizationalServiceQu ali ty inmanufacturi ngSupplyChainshowninAppendix1,valuatebothexpectationandperformanceusingaseve npointLikertscalerangingfrom1to5.T h e overallweightedaverageofcustomersatisfac tionin2015is3.91thatislessthanpreviousyear,4.02showninChapter4.
Particularly,customersevaluatetheproductqualityishigherandconsistentwithn e w techni calspecificationsandtheyacceptthehighpricecomparedwithothersuppliers.However,the yrequirethegoodguidelineapplicationandpromptactioninordertoavoidandsolvetheprodu ctionproblemissues.Meanwhile,ANPCVNd e v e l o p thenewprocedure,facilitiestoco ntrolandimprovethequalityofnewhightechnologyproducts.Ingeneral,thecustomersares atisfiedwithproductqualityw i t h highevaluatednumber4.04inTable7.
Otherwise,duetothecommunicationandtransferredtechniquebetweenAccountManagersan dcustomersisnotenoughwhilecustomers‟productionconditionsared i f f e r e n t eachot her,theproductionproblemshappeninthecustomers‟productionlineincreasingly.However, whenreceivethecomplaintsfromcustomers;theA c c o u n t Managersgivethefeedbackan dsolutioninlongertimethancommitmenta s wellascustomers‟expectation.Thesearetheimp ortantcausesforthedecreasings a t i s f a c t i o n ofcustomersshowthelowresponsivenessdime nsion.
Qualityandcustomersatisfactionisoftenpresentedonlyasaresultofeachother.M o s t ofthe studiesofconsumersatisfactionhighlighttheunavoidablerelationship betweencustomersatisfactionandquality.Sureshchander,Rajendran,andA n a n t h a r a m a n ( 2002)arguedthatanincreaseinoneislikelytoincreasetheother,t h er e f o r e servicequalityandc ustomersatisfactionarecloselyrelated.Others( R a n a w e e r a andNeely2003)alsoreportthatse rvicequalityisoftenpositionedasana n t e c e d e n t ofcustomersatisfaction.
The PROSAT model, introduced by Schneider in 2000, offers a multidimensional approach to understanding the relationship between customer satisfaction and quality, emphasizing that satisfaction is both a real value provided by the firm and influenced by customer expectations This model is grounded in Parasuraman's Service Quality Model from 1985 and identifies several key dimensions that impact customer satisfaction: 1) Technical product quality, which includes compliance with specifications, safety, sustainability, and environmental safety; 2) Quality of reputation, reflecting customer perceptions based on subjective comparisons with competitors; 3) Price perception, encompassing list prices, discounts, and perceived value; 4) Quality of interpersonal relationships, focusing on communication styles and empathy; and 5) Service quality, which includes the competency of sales personnel and the tangible aspects of service Recent interviews and customer satisfaction surveys indicate a decline in service quality compared to the previous year, highlighting the urgent need to enhance the service quality dimension within the PROSAT framework to address this central issue.
ThePROSATModelpresentstheconceptofcustomersatisfactioncreationthatistheresultofa mutualrelationshipbetweenorganizationandbuyer.Itispossibletoa c h i e v e thisstateon lywhencommunicationbetweenbothpartiesoccurs.Firmsshouldknow(throughmarketint elligence)whatthecustomer‟sneedsandexpectationsareinordertodeliverexpectedquality Customersshouldbeabletoanticipatewhatlevelofqualitythecompanyisabletodeliveratth eacceptedprice,a n d thereforesetthelevelofexpectations.Qualityiscurrentlyoneofthemaj orf a c t o r s satisfyingthecustomer.
Service quality is a crucial factor in maintaining competitiveness in the contemporary service industry, as highlighted by Lewis (1989) and further emphasized by Hung et al (2003) It plays a significant role in both public and private sectors, impacting various business and service industries (Zahari et al., 2008) Service quality is defined by how well a service meets or exceeds customer needs and expectations (Lewis and Mitchell, 1990; Dotchin and Oakland, 1994; Asubonten et al., 1996; Wisniewski and Donnelly, 1996; Seiler, 2004; Zahari et al., 2008) Over the past two decades, it has garnered significant attention from practitioners, managers, and researchers due to its profound influence on business performance, cost reduction, return on investment, customer satisfaction, loyalty, and ultimately, profitability (Leonard and Sasser, 1982; Cronin and Taylor, 1992; Gammie, 1992; Hallowell).
1996;ChangandChen,1998;Gummesson,1998;Lasseretal.,2000;Newman,2001;S u r e s h c h a n d e r etal.,2002;SethandDeshmukh,2005).
Basedontheliteratureofmodelservicequalityfivegaps(Parasuramanetal.,1985),twoin- depthinterviewswereconductedinordertogathertheinformationfromthecustomersandemplo yeesabouttheiropinionwhichrelatedtotheservice.Firstlyin- d e p t h interviewquestionnaireasinAppendix2isdesignedtoconducttotenbuyingcustomers Thecustomerswhoexperiencedtheproblemsconcernaboutcomplaintsolutionsmainly.They evaluatethesolvingtimeislongerthan48hourswhiletheyn e e d tosolveproblemimmediatel ytolimittherisingcost.SomeofthemshowexpectationabouttheAccountManagerswithhigher capabilitiestoresponseandr e a c t intime.
Focusingonthecustomers‟concerns,thein- depthinterviewisconductedtotenA c c o u n t Managers.Theconversationsbetweenresearchera ndAccountManagerst r y totalkabouttheexperienceandperceptionofservingcustomers,espe ciallyforcustomers‟complaints.AccountManagersagreedtheproblemsolvingtimeforcustom erslongerthanspecificationseventheirexpectation.Investigatingfurtheraboutthereasons,itfoun dthatAccountManagersfindcomplexproceduretoworkw i t h internaldepartmentstoanalyz eandsolvetheproblemforcustomers.Theyhavetotrytocontacttodepartmentssuchastechnica l,QCandLogisticstocollectdata,informationtogivethesolutionforcustomers.Besides,the yalsoagreedaboutthetechnicalknowledgeaswellastroubleshootingcapabilitiesneedtobei mprovedp r i o r i t y sothattheycanservecustomerswellforcustomers‟higherexpectation.
AnotherinterviewingisconductedtotheQualityAssuranceManagertoinvestigatethecomplai ntproceduretosupporttheAccountManagersreactthecustomers‟c o m p l a i n t s Shealsosugge staboutthenewproceduretointernaldepartmentssupportanalyzeandrecommendforcustome rssolveproblems.
Asaresult,theproblemservicequalityistheproblemneedtobeanalyzedthecausesandsolve ditcompletely.Byenhancingperceivedservicequalitytoconsumers,thecompanyisabletoin creasetheperceivedcostsofswitchingfromo n e servicefirmtoanother(Meng,Elliott2003). Firmsmakesignificanti nv est ment s inqualityprogramswiththehopeofgeneratinghugein creasesinp r o f i t a b i l i t y (DouglasandErwin2000).Returnoninvestmentsintheprocesseso fd e l i v e r i n g highquality(implementationofqualitymanagementsystem)canbeseenthrou ghincreasedsales(Bank1996).Themorethequalityimproves,thefasterthesalesincrease,b ecausesatisfiedcustomersbuymore(Morganatal.2000).
CausesJustification
Fromtheinterviewswiththecustomers,itwasclearthattheAccountManagersarepromptinacti onandconsistentindeliveringhighservicearethekeyconcernsofthecustomers.Thesearetheco ntextualinterpretationofreliabilitywhichisidentifiedasa servicequalitydimensionbyParasura man(1985;1988).Whypromptactionp r e c i s i o n issoimportantforservicequalitycanalsobe understoodfromasolutionq u a l i t y perspective.AsdiscussedinthetheoreticalbackgroundJoha nssonandWitell( 2 0 1 3 ) definedreliabilityforsolutionsas“theextenttowhichthesolutionca nbe reliedontoprovidewhatisneededattherighttime”.Inthiscompanycase,ther e l i a b i l i t y prese ntthroughthelowsalespersonnelcompetence.
JohanssonandWitell(2013)identifiedtangiblesasaqualitydimensionforsolutions.H o w e v e r , inservicemeasurement,tangiblesarenotrelevantasaqualitydimension.T h e qualitydim ensionresponsivenesswasdefinedas“willingnesstohelpcustomersa n d providepromptservice
(1985;1988).Quickactionandr e sp o n se areassomethingthatcouldmakethecustomermore satisfied.The responsetimeismentionedintheinterviewwiththecustomerasAccountManagers“willing nesstohelpandsolveproblems”whichwastheattributethatcreatedmosts a t i s f a c t i o n Thispresentthroughthedelayingresponseandactionincasecustomershaveproblem.Responsi venessiscertainlyimportantforthecustomersandasCarman(1990)argue,whenaqualitydimen sionisveryimportantitmighthavetobes p l i t intosubdimensions.Thereforeitismorerelevan ttoaddressthisbytwostand- alonedimensions:Approachability,whichisadimensionbyJohanssonandWitell(2013)forthei mportanceofafastresponseandhoweasilyandconvenientthecustomercancontactthesupplyi ngcompany,and“willingnesstoserve”byH e d v a l l andPaltschik(1989).
Johansson&Witell(2013)identifiedflexibilityasaqualitydimensionwhichc o n c e r n s theabilitytomeetcustomers‟changingneedsbutalsotheextenttowhichthesolutionofferingc anbeadjustedtofitthecustomer‟sinitialneeds.Flexibilityc a n thereforebeseenasaquality dimensiongraspingthesecustomerrequirements forservice.ForANPCVN,thisdimensionistheimmediateactionsandflexiblesolutionofaccou ntmanagerandCTStosolvecustomer‟sproblempriority.
Fromthecustomerinterviewitwasalsohighlightedthatitisimportanttobelistenedtoandnotqu estionedwhenthereisaproblem.ItisimportantforthecustomerstofeelthatAccountManagers understandtheirsituation,needsandf e el i n g s Thesemoresoftvaluesaresimilartothequalit ydimensionempathythatw a s identifiedbyParasuramanetal.
(1985;1988).Thatempathyemergedasimportantfortechnicalconsultingforproductrelatedser vices.TheAccountManagersandthecustomerhavefrequentcontactandaccordingChowdarya ndP r a k a s h (2007)andLeeandKim(2013)empathyisanimportantdimensioninthosescena rios.Itmightalsobeexplainedduetothestressthecustomerfeelintheinteractionsincetheyusu allycontactstheAccountManagerswhentheyhaveaproblem.
Whileassuranceinpreviousresearchmainlyconcernspersonalattributesandtheserviceprovid er'sabilitytoinspiretrustandconfidenceinthecustomer( P a r a s u r a m a n etal.,1988),t heassurancediscussedbythecustomerinthiscasest udy ismoreconcernedwiththewidthofAP CVN‟soffering,capabilitytodelivera n d overallapproachtosolvethecustomer‟sproblems.T hereforeassurancecould beseenaspartsofthequalitydimensionswillingnesstoserveandreliabilityandnota s astand- alonedimension.
ConsistencyisasolutionqualitydimensionidentifiedbyJohanssonandWitell( 2 0 1 3 ) Aspreviouslydiscussedconsistencyisconcernedwithhowknowledgeable employeesareoftheentiresolutionsothatnopromisesaremadetothecustomerthatcannotbef ulfilled(Johansson&Witell,2013).OntheotherhandJohanssona n d Witell(2013)alsome anthatconsistencyisconcernedwiththeabilitytoanswercustomerquestionsregardingtheentir esolution.Forservicethiswouldmainlyc o n c e r n thecompetenceandknowledgeofspecific ations.HowevertheAccountManagersarenewentrymostlywithlessexperienceandknowled ge.Thisinconsistencywasvisibletothecustomerandcausedcomplaintsfromthecustomer.A studyofexecutivesin50firmsidentifiedtheprocessforhandlingcustomercomplaintsasakey driverofcustomersatisfaction(Mohr-
Jackson1998).Throughcustomersurveyandemployeesinterview,ANPCVN‟saccountmana gersandCTSd o nothaveenoughconfidenceandpromptfeedbackforcustomer‟sconcern.They oftenfeedbackforlaterfeedbackbyrelatedotherdepartments.
ANPCVNisleadingmanufacturerinmarket,customerevaluatethehighservicequality,goodr eputationandtechnology.Theservicequalityislittlelowerthanp r e v i o u s yearthatisveryimp ortanttocompany‟sreputation,customerloyalty.Itw i l l increasethecostfordevelopingnewcus tomersaswellasmaintainingbuyingcustomers.Importantly,ANPCVN‟svaluefocusontheco mmitmentrelatedtoq u a l i t y andservicewhichistheircompetitivefactorinthemarket.Many competitorsa l s o definitetheservicequalityistheircompetitivestrategy
Less customers‟ repurchasing Customers‟ switching to other supplier
Low Service Quality Low Customer Satisfaction Decreasing Customer Loyalty Inflexibility
Inefficiency external communication Increasing cost of new customers
ANPCVN‟sAccountManagersattractcustomersbythehighservicequalitys p e c i f i c a t i o n s a swellascommitments,buttheydeliverthelowerservicequalityduetolowreliabilityandresponsi veness.ItiscleartoconcludetherealcauseisthatA N P C N isfailingtoimplementservicequality specificationsinthecompany.Intheo t h e r word,thisserviceperformancegapisthecauseoflo wservicequalityproblem.F i g u r e 1Thecause-and- effectofANPCVN’sservicequalityproblem
Consequently,ANPCVNneedtoplanthesolutionsthatwillenhancetheservicequality, especiallyfocusonreliabilityandresponsivenessdimensionsfortechnicalandcomplai ntservicesinordertoimprovecustomersatisfactionaswellasdifferentiatethemfroman other.
AlternativeSolutions
Theoverallservicedeliverystrategy
Target:Maintainawell-publicized,accessible,transparentandsimple-to- uses y s t e m ofdealingwithcomplaints
DevelopingtheAccountManagers‟competencyprogram
Cost andBenefitComparison
Duetothetimeconstraintaswellassavetheresources,itisessentialtojustifythebest solutionwh ichisthemosteffectiveandefficienttosolvetheservicequalityoftheANPCVN.Furthermore,t hedetailedcounteractionplanisalsopresentedinnextc h a p t e r
Quarterlypro gramHighcos t(materials,tr aining,etc.)U SD
BecausealotofCTS,QAandaccount managerlackofprocedurefor custo merproblemsolvingaswellastheproc edureisnotclearandcompletetodeli vertheservicequalitytocustomer,AN PCVNneedtodevelopandensurethe internalcross- departmentcooperation.
- BecausealotofCTSandaccountmana gerslackofproductknowledgea n d list eningskill,understandingcustomers,fo cusoncustomer‟ssolution&sympathy soANPCVNwillhavelecturesfromsho rtterms.
-Each personin ateamwillrelyonothers,whichleadtoin efficientinimprovingprocedure.
ANPCVNcantakeabout2monthsfort hissolutionbecauseiti s generalproce dureforinternaldepartmentsandcust omersfocuson customers‟solutiona ndemployees‟responsivenessandon emonthforpracticenewdeliverystrat egy.
- HRcanarrangethetrainingprogram bydividetheCTSandS a l e s Teamtoe nsurethedailyworkssmoothlyandem ployeescanfollow thecoursefully.
- Board ofManagers,especiallyKAMsupportt hetraineeteamindailyworkbysharingt asks,visitingcustomers.
SelectedSolution
JustificationSolution
Ingeneral,thesolutionsaresuggestedbasedontheimportantcausesofservicequalityproblem. Mostcustomervaluespeedserviceandfastdeliverytimesandm a n y arewillingtopayapremi umtofirmsthatprovidespeed.Moreover,thecomplaintservice,whichhasnegativeimpactonc ustomers,isevaluatedlowestw i t h i n rangeofservices.Itisessentialtoprioritythesolutionofn ewservicedeliverystrategy,especiallythecomplaintprocedurewhichisthemosteffectivean defficientt o solvetherealcauseofservicequalityproblem.Accordingly,thedepartmentscanc ooperateandanalyzethecomplaintssmoothlyinordertogivethepromptsolutionforcustomerfir stly.Forothersolutions,HumanResourceandMarketingplanactionwithactivitiesbasedonthe newservicedeliveryprocessinlongterm.
ThesolutionforservicestrategyismostimportantinANPCVN‟scurrentsituationd u e toitsolvet hepoorservicedeliveryprocess.Itisclearthatthecross– depar t men ts‟ organization‟sprocedurehelpemployeesfollowandcommunicatewi th customer wellbasedontheinternalcommunication.Forbalancesolutionr el a t ed toHRstrategy,itneeds toplandetailsuchasgeneraltraining,talentd ev el o p m en t andevenorganizationalculture.
ActionPlan
• Monitoring,reportingonandreviewingtechnicalservices,targetsanda c h i e v e m e n t sThetechnicalmeetingneedstobeholdmonthlytoestablishthetechnicalservicescheduleproa ctivelyforcustomersbesidescustomers‟request.Thetechnicalandcomplaintreportswhic hsenttoaccountmanagersandCTShavetobeclearandc o m p r e h e n s i v e oncriticalrecom mendations.ItalsoneedstopostonSharePointforbusinessactiongroupgetknowledgeandex perience.Accordingly,thesolutionsforcustomers‟complaintareappliedandfollowupevenaft erproblemsolved.I t isnotonlyavoidingtherepeatingproblembutalsomakesthetechnicalserv icesandthecustomers‟satisfactionimproved.
Scheduling of visits to customer sites Approval & distribution of schedule Follow up on critical recommendations
Execution of visits Issue TS reports
ActionStep Person(s)Re sponsible DatetobeC ompleted Resources
Membersofthebusi nessactiongroup(Sa lesandC TS Representatives)
GatherBusinessr equirementsandt ranslatet h e m to servicelevelrequ irements
Sales,QCandCTS Managers 25-April2016 HumanResou rceU S D 500
Technicals u p p o r t capabilitiesofc orpor at i on
Membersofthebusi nessactiongroup(Sa lesandC TS Representatives)a ndoperationsgroup( SupplyChainandQ C)
Newcomplaintpr oc edu re QCManager 10-May2016
Knowledge,an alyzec a p ab i l i t y anda worki ng-we e k USD1,000
Customer‟se x p e c t a t i o n andcor porationcapa bi l it ie s
Membersofthebusi nessactiongroup(Sa lesandC TS Representatives)a ndoperationsgroup( SupplyChainandQ C)
QCManager 30-May2016 USD3,000 ApplicationandF ollowup
Membersofthebusi nessactiongroup(Sa lesandC TS Representatives)
Supporting Information
CompanyData
Source:ANPCVN‟sSalesReport3quarterof2014and 2015
SalesVolume 1stQ uarter 2ndQuarter 3rdQuarter 4thQuarter Total
Inaddition,inspiteof11months,theincreasingcustomercomplaintsrelatedtoproductqua lity,servicequalityisanominoussigneffectoncustomersatisfactiondirectly.Moreover,t heaveragehandling- completiontimeislongerthanpreviousyears,itmeansmore67hourscomparedto43hours
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
CustomerSatisfactionSurvey
Aswasdiscussedinchapter1,aquestionnairesurveylistedinAppendixwasc o n d u c t e d amon gthecustomerswhohasbeenpurchasingwithANPCVN.Theq u e s t i o n n a i r e wassentto80customersselectedbySalesManagerwithoutaformal selectionprocesswhichcouldbiastheresultbyemails.Atotalof66respondentsg a v e theirfee dbackswitharesponserateof82.5%.
Alongwiththeproblemsymptoms,customersatisfactionsurveythatisperformedo n c e ay earwasalsostudied.Inthissurvey,questionsaskonhowcustomersp e r c e i v e productandser vicequalityofferedbyANPCVN.Thesurveydoesnotp r o v i d e thepossibilitytorankhowimp ortanteachitemisfortherespondent,onlyh o w welltheperformanceiswithineachattributeand theattributesareansweredonaLikertscalerangingfrom1to5thatisdesignedaccordingtoMea surementofI n t e r n a l , ExternalServiceQualityandConsequenceofOrganizationalServiceQ u a l i t y inmanufacturingSupplyChainshowninAppendix1.Questionregardingo v e r a l l sat isfactionarealsoincluded.
In-depthInterviews
Basedonabovefeedbacktrendsalsowerestudiedtofindmorein- depthfeedbackf r o m thecustomersthroughthesemi- structuredandunstructuredinterviewsthatisaf l e x i b l e methodthatcangivebothindepth- anddetailedknowledge(Kvale&B r i n k m a n n , 2009).
SalesManager Communicationandcompl ainthandling Facetoface Semi-structured
2 KeyAccountManagers Criticaltocustomerandservic eperception Facetoface Semi-structured
10Customers ServiceQualityexperience Facetoface Semi-structured
10AccountManagers Communicationandcomplai nthandling Facetoface Semi-structured
Manager ComplaintProcess Facetoface Semi-structured
In- depthinterviewswereconductedinordertogathertheinformationfromthetencustomerstogat hertheiropinionrelatedtoserviceofferedbyANPCVN.ThereasonthatIchosetenbuyingcusto mersincludingtwocustomersforeachsegmentasintervieweeisthatitcanpresentsthefeedb ackofbalancecustomersbecauseIdidthesatisfactionsurveybefore.Thesecustomershaveex periencedonproductandserviceofANPCVNaswellashavefacedproblemsanddealitwithA ccountManagers.
“Theresearchquestionsaredividedintotwotypes,i.e.descriptiveandexplanatory”(DeVaus2001,1).Ontheotherhand,W-Questions-„who‟,„what‟,„where‟,
„when‟,„why‟and„how‟,canbedividedintothosetwotypesofquestions.Amongthem,the„who‟,
„where‟and„when‟questionsbelongtothedescriptivequestions(White2009,46).Inaddition,inord ertoshowclearlyaboutwhatthisresearch aimstoaccomplish,thedescriptivequestiontypeis usedinthisthesisr e s e a r c h Inordertoachievetheobjectivesofthisresearch,threeresearchqu estionsar e addressedasfollows:
Thisresearchquestionfocusedontheconceptsofcustomersatisfaction.Theanswertothisquesti onalsocontributestounderstandingtheconceptsofthemaincharacteristicofsolvingcompla int,especiallyforcreatingstrategiesservices p e c i f i c a t i o n s forANPCVN.
Ba sed ontheanswerofthefirstquestion,thisquestionsuggestscustomers‟pe rc e pt io n aboutth eAccountManagers‟competency.I t isanalyzedinordertofindo u t howtheAccountManagers
‟competencycancontributetobuildingcustomers a t i s f a c t i o n throughservicequality.ThecustomersexplainedthatAccountManagersunderstandtheirsituationandb u si n e s s ; how ever,theyfeltthattheAccountManagerswhoalwaysoffergoodsandservicesineffectivelydu etolessunderstandingandlessresponsivenessfortheirb u s i n e s s needs.Thisalsocomes fromthehighturnoverofsalesteamanditishardfo rnewstaffexpertinpowdercoatingsindustry andworkswellwithcustomerin shortterm.Therefore,somecustomersaredissatisfiedbecauseitwastetheirtimea n d re ceivelesssupportscomparetowhenstillworkingwithpreviouspeople.
Thisresearchquestionaimstodiscoverwhethertheserviceperformancegapbetweenserviceq ualityspecificationsanddeliveredservicequality.Itisnecessaryf o r companyimprovethedeliv eredservicequalitytomeetthecompanys p e c i f i c a t i o n s Basedonthese,asetofrecomme ndationsandastrategyforthec o m p an y areprovided.Accordingly,itsatisfiesthecustomers,c reatesastablegroupo f customers,satisfiedcustomers‟demand,andensuresanotableshareoft hemarketthatitoperatesin.Drivingfromtheanswerstothefirstresearchquestion,thef a c t o r s thatmayinfluencebothcustomersatisfactionandcustomerloyaltyareindicated.
Basedonconcernsofcustomers,thesemi- structuredinterviewsareconductedtoemployeesfindoutbothoftheinterviewees‟opinions andcounterproblems.
Twoin- depthinterviewswereconductedwiththeMr.EdisonSalesManagerandMs.DianaQAManag er.Bothofthemweretherightpersontointerviewford i s c o v e r i n g theanswerstotheresea rchquestionsbecauseboththemhaveriche xp e r i e n c e s inworkingwithcustomers.Theyha veprofessionalknowledgeaboutthepowdercoatingsandexcellentserviceskills.Bothofthes etwointerviewswere conductedwiththesamequestionsregardingthefactorsinfluencecustomers‟s a t i s f a c t i o n a ndservicedeliveryperformance.
ThefirstinterviewwasconductedwiththeSalesManagerwhohasworkedmoret h an fiveyea rsworkingexperiencesinANPCVN.Hehasverygoodunderstanda b o u t customers„satisfacti onandloyaltyinthecasecompany.Themainobjectivef o r interviewinghimwastogatherinfor mationaboutthecompany‟sbackgroundan d thecompany‟ssituationsofar.Furthermore,heha sprofessionalskillsandknowledgeaboutprovidingexcellentserviceforthecustomersinorde rtosatisfythem.Hisknowledgeaboutincreasingcustomers‟satisfactionbythereliabilityandr e s p o n s i v e n e s s arehelpfulinprovidingsuggestionsforthecasecompany.
AccordingtoEdison(2015),inordertoincreasecustomers‟satisfactioninA NP C V N , theAcco untManagers‟competencymustbeimproved.Healsopointedo u t thatsometimestheAccount Managersdonotunderstandthecustomers‟needs,an d evendelayresponseandactionforcustom ers‟problem.Mostimportantly,servicequalityisthebasictoincreasecustomers‟satisfaction. Heemphasizedthatino r d e r toincreasecustomers‟satisfaction;thefirstthingneedtobedone isto increasetheemployees‟competency.
ThesecondinterviewwasconductedwiththeQAManager.Ms.Dianahasworkedi n ANPCVNforafewyears.However,shehasworkedasQAManagerinotherc o m p a n y morethansixy ears.Sheanalyzeallcustomers‟complaints.Therefore,herk n o w l e d g e isveryhelpfulini ncreasingqualityandserviceproduct.AccordingtoD i an a (2015),therearemainlytwofactors mayinfluencepoorservicequality.First ofall,theinternalcomplaintprocedureinANPCVNthoseiscomplexforAccountManagersis sueandfollowuptheinvestigationtohavethepromptsolution.
Secondly,theinflexibilityofAccountManagermakescustomersdissatisfiedb e c a u s e their newneedscannotbefulfilled.Diana(2015)alsomentionedprovidingattentiveserviceespecial lydifferentwiththecompetitors‟servicecanincreasecustomerloyaltyeffectivelyaswell. Anumberofsemi- structuredinterviewswereconductedtotenAccountManagersa n d twoKAMinordertogeta deeperunderstandingofwhatiscriticaltoserviceq u a l i t y forthem.Theinterviewsconducte dtocollectinputabouttheirservicep e r c e p t i o n wereorganizedaroundthequestions.
Thefocusinthissemi- structuredinterviewwasonwhatiscriticalfortheemployeesr e g a r d i n g servicesandwh atneedtoimproved.Byinterviewingemployees,itwasfoundthattheysharedthesameviewsan dopinionsaboutthetechnicalknowledgea n d complaintservicelargely.
Thefeedbackwehavereceivedfromemployeesfromtheinterviewshasbeencar ef ul ly cons ideredandusedtodevelopaCustomerServiceActionPlantohelpust o improvetheservicequa lity.
Literaturestudy
Customersatisfactionmeansthatthecustomers‟feelingabouttheirexpresseddemandsorexpect ationhavebeenfulfilled.AccordingtoGoodman(2009,22),“customersatisfactioniscomplica tetodefinebecausenormallyitisextenuatedbyexpectation.Customerswillbesatisfiedifthepr oductorserviceabovedemandsore x p e c t a t i o n ” Ontheotherhand,iftheproductorser vicebelowdemandsorexpectation,customerwillbedissatisfied(Schmitt2003,13)Satisfactio nisalsothef e e d b a c k thatgivenbythecustomersabouttheproducts‟orservices‟qualityandas sessmentoftheproductsorserviceitself.Itisacertainpsychologicalexperiencew h i c h shows customers‟happinessoftheirconsumerbehavior.
Customersatisfactionemphasizedtheimportanceofconsistency.Itisareactionforc e r t a i n consumptionexperience.Itexploresthecomparisonbetweencustomer‟sexpectationandactual perception,throughthecomparisontodiscoverifithasc o n s i s t e n c y inordertofindoutsatisf iedordissatisfiedjudgment.(PeopleMetrics2 0 1 0 )
Customersatisfactionisanoverallevaluationfortheconsumptionexperienceofthecustomer,everysingledetailduringtheconsumptionprocesscouldcause dissatisfiedfeeling.Hence,increasingthequalityoftheproductorservicecans at i s f y thecust omers,theloyaltyofthecustomerscanbeincreasedaswell.
Thevalueofservicequalityorproductqualityplaysaveryimportantroleincustomersatisfactio n.Ifthecustomerbelievethevalueofservicequalityorproductq u a l i t y abovehisorherexpe ctation,thenthecustomerwillbesatisfied.Ontheotherh a n d , ifthecustomerfeelsthevalueofs ervicequalityorproductqualitybelowhiso r herexpectation,thenthecustomerwillbedissatisfi ed.
Thecustomer‟semotioncanalsoinfluencethefeelingofsatisfaction.Thisemotionc o u l d besta bleandexistsbeforebuyingbehavior.Forinstance,emotionalstateorth e lifeattitude.Accord ingtoDeng(2015)happyandhealthyemotionalstate,p o s i t i v e attitudewillmakepositive effects,otherwisenegativeattitudeoremotionalst a t e maybringthecustomerintoanotherposit ionwhichthecustomerwillbed isap p o in t ed easily.
Sometimesthecustomer‟ssatisfactionmayalsobeinfluencedbytheperceptionofequalityand fair.Mostofthecustomersreallycareaboutiftheyhavebeentreated asthesameastheotherconsumers.Hence,sameprice,sameserviceorafairdealisveryimportant.
Figure4Connectionbetweenservicequality,customersatisfaction,loyalty,andr e p u r c h a s e intentioninspiredbyOh(1999)
Thoughqualityandcustomerssatisfactionarenotsynonymoustheyarehighlyr e l a t e d inthemoderndefinitionsofquality.Bergman&Klefsjử(2010,p.315)a r g u e s that“cu stomersatisfactionistheultimatemeasurementofquality”.
(1988)explainedthedistinctionbetweenservicequalityandcustomersatisfactionas“perceived servicequalityisaglobaljudgment,orattitude,r e l a t i n g tothesuperiorityoftheservice,where assatisfactionisrelatedtoaspecifictransaction”.DrawingonthisworkBoltonandDrew(1991) arguedthatcontinuouss a t i s f a c t i o n overtimeleadstohighperceivedquality.However,th ecausalr e l a t i o n s h i p betweenservicequalityandcustomersatisfactionisdebated.
(1988)presentedseveralexamplesofwhencustomersweresatisfiedbutdidnotexperiencease rvicetobeofhighquality.AlsoCroninandTaylor(1992)foundstrongsupportforthatthedirecti onofthecausalrelationshipa c t u a l l y istheoppositei.e.thatperceivedservicequalityleadstosa tisfaction.Thisis aviewsupportedbyOh(1999)andSharmaandNegi(2014)astheymeanthatservicequalityis oneofseveralantecedentsforsatisfaction.
Servicesareintheirnaturedifferentfromproductsandthecorrespondingqualityd i m e n s i o n s arealsodifferentthanthoseforproducts.Qualitydimensionsared e t e r m i n a n t s ofperceiv edservicequality(Parasuramanetal.,1985).
Frambachetal.(1997)proposedaclassificationthatconsideriftheserviceisp r o v i d e d pre- sale,during-sale,orafter- sale.Servicespriorthepurchasedecisionareserviceswhichaidthebuyerinthedecisionproces sandhelpwiththeadoptionoftheproductforinstancebydemonstratingusage.Servicesdire ctlyrelatedtothep u r c h a s e decision,during- saleservices,willsupportthecustomertotaketheproductintouselikeinstallationandtraining Finally,servicesfollowingthepurchased e c i s i o n , after- saleservices,aimtokeepthecustomersatisfiedwiththepurchasebyf a i l u r e handlingandmain tenanceforexample.
(1997)addressthatservicescanbeclassifiedaseitherrelationshipbasedservicesortransacti onbasedservices.Relationship- basedservicesareservicesthatsupportanongoingrelationshipbetweenthecustomerandsu pplier,whilethetransactionrelatedservicescouldbeacquiredwithoutfurtherf u t u r e excha nges.
Severalconceptualmodelshavebeendevelopedbydifferentresearchersformeasuringserviceq uality.Itisenvisagedthatconceptualmodelsinservicequalitye n a b l e managementtoidentify qualityproblemsandthushelpinplanningforthelaunchofaqualityimprovementprogram,there byimprovingtheefficiency,p r o f i t a b i l i t y andoverallperformance(SethandDeshmuk h,2005).
(1985)whichisw i d e l y utilizedintheliterature.Themodelattemptstoshowthesalientactivities oftheserviceorganizationthatinfluencetheperceptionofquality.Parasuramanetal.
( 1 9 8 5 ) proposedthatservicequalityisafunctionofthedifferencesbetweenexpectationandp erformancealongthequalitydimensions.Theydevelopeda servicequalitymodelbasedongapanalysis.Thegapsinclude(SethandDeshmaukh,2 0 0 5 ) :
Gap1:Customerexpectation- managementgap.Thisgapaddressesthedifferenceb e t w e e n consumers‟expectationsandma nagement‟sperceptionsofservicequality.G ap 2:Managementperception- servicequalityspecificationsgap.Thisgapa d d r e s s e s thedifferencebetweenmanagement‟sper ceptionsofconsumer‟sexpectationsandservicequalityspecifications,i.e.improperservice- qualitystandards.
Gap3:Servicequalityspecification- servicedeliverygap.Thisgapaddressesthed i f f e r e n c e betweenservicequalityspecificati onsandserviceactuallydelivered,i.e.theserviceperformancegap.
Gap4:Servicedelivery- externalcommunicationgap.Thisgapaddressesthed i f f er e n c e betweenservicedeliveryandt hecommunicationstoconsumersaboutservicedelivery,i.e.whetherpromisesmatchdeliver y.
Gap5:Expectedservice- perceivedservicegap.Thisgapaddressesthedifferenceb e t w e e n consumer‟sexpectationand perceivedservice.Thisgapdependsonsizea nd directionofthefourgapsassociatedwiththedeli veryofservicequalityonthemarketer‟sside.
Accordingtothismodel,SERVQUALscalehasproposedbyParasuramanetal.(1988)formeasuringGap5.Parasuramanetal.(1985)mentionedtenfactorsfor evaluatingservicequality(includingtangible,reliability,responsiveness,courtesy,credibility,s ecurity,accessibility,communicationandunderstandingthecustomer).T h e s e tenfactorsares implifiedandcollapsedintofivefactors.Thesefivedimensionsarestatedasfollows(VanIw aardenetal.,2003;Shahin,2006):
- Assurance(includingcompetence,courtesy,credibilityandsecurity):K n o wl e d g e andcourtesyofemployeesandtheirabilitytoinspiretrustandcon fi den ce.
- Empathy(includingaccess,communication,understandingthecustomer):C a r i n g a ndindividualizedattentionthatthefirmprovidestoitscustomers.
TheSERVQUALapproachcontainsaquestionnairethatevaluatesfivegenericservicedimensi onsorfactorsthrough17questionsinAppendix2whichisdiscussedinChapter1,accordingto itemsforMeasurementofExternalServiceQualityinm a n u f a c t u r i n g SupplyChainshow ninAppendix1,evaluatingbothexpectationandperformanceusingasevenpointLikertscale.Th isapproachevaluatesservicequalitybycalculatingdifference(gap)betweencustomerexpectatio nsandperceptions( s e r v i c e quality=P–
E).'P'denotescustomerperceptionofserviceorperformancea n d 'E'denotesexpectationsbef oreaserviceencounterdelivertheactualservice(LewisandBooms,1983;Parasuramanetal.,1985).Iftheansweris negative,thendissatisfactionoccurs,otherwise,theServiceQualityisachieved.T h i s equat ionisusuallycalledgapanalysis(Zaharietal.,2008),butasitwasemphasized,thisapproac honlymeasuresgap5.
Anotherpotentialindicatorofpoorqualityiscustomercomplaints.Complaintscanb e usedfori dentifying“satisfiers”(attributesorperformanceleadingtosatisfaction)and“dissatisfiers”(attri butesorperformancecausingdissatisfaction)
(Edvardsson&Friman,2003).Thedistinctionbetweensatisfiersanddissatisfiersisimportantin o r d e r tounderstandinwhatwaydimensionsaffectscustomersatisfaction.Forinstance,incre asedreliabilitymightnotleadtoincreasedsatisfactionwhereaslowerr e l i a b i l i t y mightle adtodissatisfaction(Johnston,1995).However,researchsuggestsc a u t i o n inusingcomplaints asameasureofqualitysinceithasshowntobeaweakpredictorofloyaltyandrepurchaseinten tion(Edvardsson&Roos,2003)andthef a c t thatonlyafewdissatisfiedcustomersactuallycom plainmakesitaweakp r e d i c t o r ofsatisfactionaswell(Bergman&Klefsjử,2010).
Aproduct‟squalitycanmoreorlessbeobjectivelymeasuredandcomparedtoothersimilarprod ucts.Servicequality,ontheotherhand,cannotbemeasuredbyonlystudyingtheoutcomeofth eserviceprocessbecausetheexperienceduringtheservicedeliveryalsohasaninfluenceont heperceivedservicequality(Parasuramane t al.,1988).SwartzandBrown(1989)clarifiedth isbymakingadistinctionon“ wh a t ” isdeliveredand“how”itisdelivered.
Definitionsofservicequalityholdthatthisistheresultofthecomparisonthatcustomersm akebetweentheirexpectationsaboutaserviceandtheirperceptionofthewaytheserviceh asbeenperformed(Lehtinen&Lehtinen,1982;Lewis&Booms,1983,Gronroos,1984; Parasuramanetal.,1985;1988;Caruana,2002).
Thedefinitionofservicequalitywasfurtherdevelopedas“theoverallevaluationofaspeci ficservicefirmthatresultsfromcomparingthatfirm‟sperformancewiththecustomer‟sg eneralexpectationsofhowfirmsinthatindustryshouldperform”(Parasuramanetal.,198 8).
Frambachetal.(1997)proposedaclassificationthatconsideriftheserviceisp r o v i d e d pre- sale,during-sale,orafter- sale.Servicespriorthepurchasedecisionareserviceswhichaidthebuyerinthedecisionproces sandhelpwiththeadoptionofthep r o d u c t forinstancebydemonstratingusage.Servicesdire ctlyrelatedtothepurchasede cis io n, during- saleservices,willsupportthecustomertotaketheproductintouselikeinstallationandtraining Finally,servicesfollowingthepurchasedecision,after- saleservices,aimtokeepthecustomersatisfiedwiththepurchasebyf a i l u r e handlingandmaint enanceforexample.
Therefore,addingservicecanbeastrategicwayforfirmstoaddvaluetothe customer,andgrowtotheirbusinessinacompetitivemarket.Moreover,servicequalityand customersatisfactionwerefoundtoberelatedtocustomerloyaltythroughrepurchaseintent ions(Levesque&Mc.Dougall,1996;Newman,2001;Caruana,2002).Thepracticeofexcel lentservicequalityhasbeenproventhatcustomersatisfactionwillsignificantlyleadtocust omerloyalty(Caruanaetal.,2000;Caruana,2002).
Assurance Knowledgeandcourtesyofemployeesandtheirabilitytoinspiretrusta n d c onfidence Tangibles Physicalfacilities,equipment,andappearanceofpersonnel.
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Appendix1ItemsforMeasurementofInternal,ExternalServiceQualityandCo n s e q u e n c e ofOrganizationalServiceQualityinmanufacturingSupplyCh a i n Measurem entonfive-pointLikertScale
Yourfeedbackiscertainlyofnecessityto ourworkandourmutualbusinessrelationship.Thankyouvery muchfor yourparticipating.
Bảng khảosátnàynhằmhỗtrợ dựánpháttriểnchấtlượngsảnphẩmvàdịchvụphục vụkháchh à n g c ủ a CôngtySơnbộttĩnhđiệnAkzoNobel.ChúngtôirấtmongnhậnđượcýkiếncủaAnh/
Sản phẩmsơnbộttĩnhđiệnmàQuýCôngtyđangsửdụng?(Anh/Chịcóthểchọnnhiềuđáp án)
( 1 : verypoor;2:poor;3:fair;4:good;5:verygood)
(Sốđiểmtươngứngtăngtheomứcđộđánhgiá,cụthể1:rấtthấp,2:thấp,3:trungbình,4:tốt,5 : rấttốt)
( 1 : verypoor;2:poor;3:fair;4:good;5:verygood)
AnhChịsosánhnhưthếnàovềchấtlượngsơnbộttĩnhđiệncủaAkzoNobelsovớicácnhàsảnx uất khác? (Sốđiểmtươngứngtăngtheomứcđộđánhgiá,cụthể1:rấtthấphơn,2:thấphơn,3:trungb ì n h , 4:caohơn, 5:caohơnrấtnhiều)
Product‟slabelcorrectlywith invoicedocumentsaccurate andcomplete(Thôngtinnhãnđúngvớihóađơn)1 2 3 4 5
Accessibilityandavailability(Hò ađồng vànhiệttình)Frequencyandqualit ysalescall
NhữngvấnđềchấtlượngQuýCôngty đãgặpphảilàgì?(Anh/Chịcóthểchọnnhiềuđáp án)
AnhChịđánhgiánhưthếnàođốivớitừngnhậnđịnhsauvềquátrìnhgiảiquyếtsựcố củaAkzoNobel? agree Stronglydisagree Strong
Assurance Knowledgeandcourtesyofemployeesandtheirabilitytoi nspiretrustandconfidence Tangibles Physicalfacilities,equipment,andappearanceofpersonn el Empathy Caring,individualizedattentionthefirmprovidesitscust omers.
Responsiveness Willingnesstohelpcustomer‟sandprovidepromptservic e Security Absenceofdanger,risk anddoubt
Courtesy Politeness,respect,consideration,andfriendlinessofcont actpersonnel Personalattentio n Thecustomerisgettingpersonalattention.
Johansson&Witel l(2013) Reliability Theextenttowhichthesolutioncanbereliedontoprovide whatisneededattherighttime.
Empathy Howkeenafirm‟semployeesaretopayingattentiont o a n d helpingeachindividualcustomerand,thereby,build ingalong-termrelationship.
How easilyacustomercancontactthemanufacturingf i r m and howquicklythefirmrepairsanythingthatisbrokenorthath Consistency
How wellinformedandknowledgeablefirmemployeesareoft heentiresolutionandhowwellt h e y know whatcontentofthesolutionthefirmisa b l e todeliver. Flexibility Theextenttowhichthesolutionmeetstheinitialn e e d s sta tedbythecustomerandchangesthecustomer‟schangingn eeds.
Reputation Imageoftheserviceproviderthroughdifferentactionsand options Price Easytounderstand,reasonableandcompetitivepricing
Tangibles Physicalfacilities,materialsandappearanceofemployee s Easeofsubscripti on Convenienceandeaseofsubscribingto aservice