Service Quality Assessment of Utility Company in Haryana using SERVQUAL Model
Sunita Saini*, Rajbir Singh, Satpal
Department of Management Studies, Deenbandhu Chhotu Ram University of Science and Technology, Murthal, Sonepat, India
*Corresponding Author E-mail: sunitampp8@gmail.com
ABSTRACT:
This paper presents the analysis of service quality of the electricity utility company, UHBVN, supplying northern areas of Haryana State, India. Analysis of service quality is pivotal for finding the key areas where the company needs to have some improvement in service delivery. The assessment of service quality is carried out using the SERVQUAL model having ten dimensions; each dimension is having five items. Ten dimensions are tangibility, empathy, reliability, responsiveness, communication, security, accessibility, credibility, competence and assurance. For this study, primary data has been collected from the electricity customers of Sonepat district using the well-structured questionnaire, designed on the basis of SERVQUAL model. Respondents’ responses are collected for fifty items of expectations and fifty for perceptions. As described by SERVQUAL model, service quality is judged by measuring the gap between the customers’ expectations and their perceptions of services offered by company. The gap measurement in this study shows that the company’s services do not meet the customer expectations. The results infer that communication is the only dimension on which company’s performance meets the customer expectations, through to a little extent; whereas, tangibility is the dimension where the utility lags the most. Therefore, the utility company should endeavour to offer good services quality, giving priority to the dimensions having large gap between customers’ expectations and perceptions.
KEYWORDS: Service quality, SERVQUAL model, gap analysis, electric utility, Haryana.
1.INTRODUCTION
Service sector gives large contribution in the economic development of the country (Daniel and Harrington, 2007)1. Service sector largely contributes in the wealth creation of a country which is assessed by measures like GDP. In India also, service sector plays a major role in the economic development and has the maximum contribution in GDP. The entire electricity service sector flourishes on the pillars of quality of its services (Singh et al., 2017; Singh et al., 2016)2,3.
Service quality has become the foremost concern for the service sector. Service quality fuses competition into the market driven by service industry. In today’s world, entire service sector has dire need of good service quality as customers have become more aware and concerned about the quality of service for which they are spending money (Satapathy, 2014; Singh et al., 2017)4,5. Despite having electricity supply, people are more concerned with the quality of power being supplied (Saini and Kapoor, 2012; Kapoor and Saini, 2007; Saini et al., 2011; Saini and Kapoor, 2010; Saini and Beniwal, 2018)6-10. Service means deeds, processes and performances provided or coproduced by one entity or person for another entity or person (Zeithaml et al., 2013)11. Services can be characterized by following properties: (i) Intangibility (ii) Heterogeneity and (ii) (iii) Perishability. On account of these properties, measurement of quality of services is not an easy job as it can’t be touched, stored or weighed (Parasuraman, Zeithaml, and Berry, 1985)12.
Service quality has been defined by many researchers. Service quality is defined by Reeves and Bednar (1994)13 as excellence, value, conformance to specifications and meeting or exceeding customers’ expectations. Service quality is also defined in terms of difference between customers’ expectations and the perceived service. More the perceived service lags behind the expected service, poorer is the service quality leading to more customer dissatisfaction. Customer expectations arise from the predictions about what they like to get during the transaction with company. To study the service quality, Parasuraman, Zeithaml and Berry developed SERVQUAL model in 1985 which identifies gap between the expectations and perceptions (Parasuraman, Zeithaml, and Berry, 1985)12. This model is also known as ‘GAP’ model. SERVQUAL model has become the favourite choice of researchers and academicians in different fields (Carman, 1990)14, and it has also become a standard for measuring service quality (DeMoranville and Bienstock, 2003)15.
SERVQUAL model consists of basically five dimensions but it has been extended to ten dimensions, namely, tangibility, responsiveness, reliability, communication, empathy, accessibility, credibility, assurance, courtesy and security. This model measures the gap between what customers expect from company on these dimensions and what they experience. In this modern world, customers’ expectations are rising continuously but company is not performing upto the mark leading to widening gap between actual services provided and the expectations. This situation has created an alarming stage for the service firms to improve their services so that they can win in the Indian marketplace.
In this paper, SERVQUAL model has been utilized to assess the service quality of electric utility company of Haryana. In this model, there are 50 items in pair, i.e., each pair for each expectation and corresponding perception.The model collects the responses from the customers on five-point Likert scale varying from ‘highly agree’ to ‘highly disagree’. It measures the gap between mean value of expectations and mean value of perceptions for different items. This gap determines whether the customer will be satisfied or dissatisfied. This work employs paired t-test to test whether the gap between customer expectations and perceptions is significant or not.This analysis provides the dimensions on which company’s performance is not upto the mark, causing large gap between expectations and perceptions.
2.LITERATURE REVIEW:
Service quality is a well explored field of research; still it can be further prospected for dwelling into the methods for prosperity of service industry. Numerous models have been proposed for service quality analysis (Seth et al., 2004)16. There is plethora of studies and concentrating on the analysis of service quality in different service sectors like banking, health, travel, electricity etc. Few significant studies related to service quality of electricity distribution sector are briefed here.
Satapathy (2014)4 proposes a new model for service quality enhancement. Author explores about scope of service quality and customer satisfaction in the electricity industry using a questionnaire based survey. In this paper, author shows a direct and positive relationship between the seven dimensions of the service quality model for electricity utility services. Gunatilake et.al. (2012)17 perform an experiment in Madhya Pradesh, India and show that if the service quality in terms of hours of supply, power quality and other services’ quality drops, then willingness of the customers to pay bill also decreases. Likewise, good service quality in all terms enhances their willingness to pay. Thus, good service quality indirectly also guarantees about minimum losses to the electricity utilities (Saini, 2018)18. Daniel et al. (2010)19 show the importance of customer satisfaction by employing a model called SERVQUAL model for measuring the service quality in grocery stores. Authors show some gap in SERVQUAL performance and show the necessary improvements for good quality of service.
Chodzaza et al. (2003)20 assess the service quality of the public electricity utility organisation in Malawi and the resultant loyalty and satisfaction of industrial customers in Malawi. Authors determine the customer dissatisfaction using the relationship between service quality, customer satisfaction and customer loyalty. Achchuthan et al. (2014)21 use the SERVQUAL model having five dimensions (tangibility, empathy, responsiveness, reliability and assurance) with 21 items in total for the measurement of service quality of Ceylon Electricity Board in Sri Lanka. Andaleeb et al. (2012)22 examine the impact of service quality on the post-complaint satisfaction of electricity customers. They perform the regression analysis and find the dimension of empathy as the most effective dimension in impacting the customers’ satisfaction level. They also suggest different control mechanisms which can play a great role in establishing the service justice to the legitimate customers and increasing the customers’ post-complaint satisfaction. Manjunath et al. (2013)23 show that service quality of the services offered by the electricity company decides the consumer behaviour towards electricity consumption and the company. And consumer behaviour positively affects power consumption, load forecasting and bill collection.
Sharma (2010)24 proposes a reliable tool having seven dimensions for assessment of quality of services provided by DHBVN to South Haryana. This assessment tool can be used by policy makers of DHBVN and other suppliers in retail electricity supply industry for monitoring and improvement of service quality keeping in view the perceptions of their customers. Despite of these studies, there is lack of study aimed at the service quality analysis of the services offered by UHBVN supplying electricity to North Haryana. Such kind of study can easily help the policy makers to focus on the areas where the company services do not conform to the customers’ expectations leading to bad consumer perceptions and resultant losses in the system (Saini et al., 2016; Saini, 2017)25,26. For this purpose, the present study has been undertaken.
3.OBJECTIVES OF THE STUDY:
The main purpose of this paper is the assessment of service quality of utility company in Haryana. SERVQUAL model has been chosen for the analysis of service quality. According to SERVQUAL model, service quality is a function of gap in customer expectations and their perceptions regarding the services of utility company. Focussing on this fact, following objectives have been framed for this study:
1. To assess the customer expectations regarding service quality of electricity distribution company in Haryana.
2. To assess the customer perceptions regarding service quality of electricity distribution company in Haryana.
3. To analyse the gap between customer expectations and perceptions regarding service quality of electricity distribution company in Haryana.
4.RESEARCH HYPOTHESES:
This study aims at service quality analysis of utility company using SERVQUAL model which revolves around the gap between expectations and perceptions. Therefore, following hypotheses have been framed for this work.
Ho :There is no gap between customer expectations and perceptions regarding service quality of utility company.
H1: There is significant gap between customer expectations and perceptions regarding service quality of utility company.
H0:refers to null hypothesis and H1 gives alternative hypothesis. There is mutual exclusion between null and alternative hypotheses. In this work, t-test is used for hypothesis testing.
5.RESEARCH METHODOLOGY:
Exploratory cum descriptive research design has been adopted in this study. Survey has been carried out in Sonepat district of Haryana State. Thus, respondents comprise of residents of Sonepat belonging to different demographic profile.
Sample size:
In this study, stratified random sampling has been used for the selection of respondents. There are six divisions in Haryana State, out of which, survey of Rohtak division has been presented in this study. Further, there are six districts in Rohtak division which act as six strata. According to stratified random sampling, Sonepat district is randomly chosen among six strata. Total population for all divisions is taken as 500. Here, population means electricity connections. Thus, the survey population for Sonepat district is calculated using equation (1) as per stratified random sampling:
Domestic connections of Sonepat district
Sample size=--------------------------------------------X 500 (1)
Total domestic connections of Rohtak division
There are 282148 domestic connections in Sonepat district and total number of domestic connections in Rohtak division is 940496. Thus, equation (1) gives sample size of 150 connections. As population comprises electricity connections, 150 electricity customers are asked to fill the questionnaire.
Table 1. Demographic profile of respondents
|
Variable |
Category |
Frequency |
Percent |
|
Age |
18-30 years |
29 |
19.3 |
|
|
30-40 years |
43 |
28.7 |
|
|
40-50 years |
49 |
32.7 |
|
|
50-60 years |
19 |
12.7 |
|
|
Above 60 years |
10 |
6.7 |
|
Gender |
Male |
129 |
86.0 |
|
|
Female |
21 |
14.0 |
|
Category |
General |
87 |
58.0 |
|
|
OBC |
49 |
32.7 |
|
|
SC/ST |
14 |
9.3 |
|
Education |
Illiterate |
5 |
3.3 |
|
|
Matric |
17 |
11.3 |
|
|
Upto 10+2 |
39 |
26.0 |
|
|
Graduate |
56 |
37.3 |
|
|
Post Graduate/ Above |
28 |
18.7 |
|
|
Others |
5 |
3.3 |
|
Monthly Income |
UptoRs. 10000 |
38 |
25.3 |
|
|
Rs. 10000-50000 |
80 |
53.3 |
|
|
Rs. 50000-100000 |
26 |
17.3 |
|
|
Above Rs. 100000 |
6 |
4.0 |
|
Locality |
Rural |
81 |
54.0 |
|
|
Urban |
69 |
46.0 |
|
Employment |
Self-employed |
69 |
46.0 |
|
|
Government Job |
45 |
30.0 |
|
|
Private Service |
26 |
17.3 |
|
|
Unemployed |
7 |
4.7 |
|
|
NGO Worker |
3 |
2.0 |
|
|
Others |
0 |
0.0 |
Data Collection Method:
This study covers the analysis of primary data which were collected using well-structured questionnaire. The questionnaire consists of three sections: (i) demographic profile, (ii) expectation and (iii) perception. Demographic profile asks the respondents’ personal information like age, gender, category, education, monthly income, locality, and type of employment. Questionnaire is designed on the basis of SERVQUAL model. It comprises of ten dimensions of SERVQUAL model, i.e., tangibility, empathy, responsiveness, reliability, communication, security, courtesy, credibility, competence and accessibility. Both expectation and perception section include five questions each for each dimension. The responses are collected on 5-point Likert scale (1 – highly disagree, 2 – disagree, 3 – neither agree nor disagree, 4 – agree and 5 – highly agree). Collected data has been analysed using SPSS (version 20.0) software.
6.DATA ANALYSIS:
Demographic Profile of Respondents:
Demographic profile of customers like age, gender, education, income, category, type of employment has significant impact on customer expectations and perceptionsregarding the service quality of utility company.For instance, highly educated customer will expect more from the utility company. Likewise education, all demographic characteristic affect the customers’ expectation and perception differently. Therefore, there is need to study the demographic profile of respondents as a primary concern. 150 customers of utility companyhave been selected as respondents in this study.Table 1 describes the demographic profile of respondents comprising of their age, gender, category, education, monthly income, locality and type of employment. Out of 150 respondents, maximum respondents (32.7%) are of age group 40-50 years followed by age group 30-40 years (28.7%), age group 18-30 years (19.3%) and age group 50-60 years (12.7%). Most of the respondents (86%) are male and only 14% respondents are female. 58%respondents belong to general category and 32.7% respondents belong to OBC category. Rest of the respondents are of SC/ST category. Maximum respondents, i.e., 37.3% are graduate and 26% respondents have studied upto 10+2. 11.3% respondents are matric passed and 3.3% respondents are illiterate also. 18.7% respondents are post-graduate/above whereas 3.3% respondents have another qualification. Locality-wise, 54% respondents account for rural residents and 46% respondents account for urban residents. Among all respondents, 25.3% and 53.3% respondents are earning upto Rs. 10,000 and upto Rs. 50,000 respectively in a month. 17.3% respondents have monthly income between Rs. 50,000 and Rs. 1,00,000 and 4% respondents have above Rs. 1,00,000. 46% respondents do their own business and 30% are Government employees. 17.3% respondents work in private companies and 2% respondents are NGO workers. All the respondents have different profile which has implications on what they expect from company and how they perceive the services of company.
Table 2. Reliability analysis
|
Dimensions |
No. of Items |
Cronbach’s Alpha |
|
|
Expectation |
Perception |
||
|
Tangibility |
5 |
0.880 |
0.852 |
|
Empathy |
5 |
0.722 |
0.781 |
|
Responsiveness |
5 |
0.734 |
0.751 |
|
Reliability |
5 |
0.784 |
0.798 |
|
Communication |
5 |
0.763 |
0.746 |
|
Security |
5 |
0.723 |
0.838 |
|
Courtesy |
5 |
0.779 |
0.828 |
|
Credibility |
5 |
0.731 |
0.89 |
|
Competence |
5 |
0.741 |
0.828 |
|
Accessibility |
5 |
0.822 |
0.783 |
|
Overall |
50 |
0.884 |
0.841 |
Table 3.Descriptive statistics of expectation and perception values for SERVQUAL dimensions
|
Statements |
Expectation |
Perception |
|||||||||
|
Mean |
SD |
Mean |
SD |
||||||||
|
Tangibility |
|||||||||||
|
The company has modern tools and technology. |
4.560 |
0.573 |
2.273 |
0.874 |
|||||||
|
The company has well managed offices. |
4.607 |
0.590 |
2.280 |
0.836 |
|||||||
|
Forms (for new connections, load change etc.) are simply written in regional languages. |
4.620 |
0.487 |
2.393 |
1.117 |
|||||||
|
The records (of electricity connection, bills and meter, etc.) are maintained properly. |
4.640 |
0.522 |
2.453 |
0.987 |
|||||||
|
Wires are well organized on electric poles. |
4.500 |
0.610 |
2.133 |
1.028 |
|||||||
|
The company has modern tools and technology. |
4.560 |
0.573 |
2.273 |
0.874 |
|||||||
|
Empathy |
|||||||||||
|
Employees personally attend the customers for their queries and complaints. |
4.547 |
0.551 |
2.427 |
0.992 |
|||||||
|
Company staff has operating hours suitable to customer’s needs. |
4.467 |
0.609 |
2.507 |
0.974 |
|||||||
|
Rural customers get subsidies in electricity bill. |
4.327 |
0.916 |
2.853 |
1.095 |
|||||||
|
Company motivates the customers to use energy saving bulbs, fans and other products. |
4.580 |
0.571 |
2.940 |
1.076 |
|||||||
|
The bill collection centers are near to the customer’s residence. |
4.440 |
0.690 |
2.773 |
1.112 |
|||||||
|
Responsiveness |
|||||||||||
|
There are not long queues at bill collection centers. |
4.680 |
0.468 |
2.687 |
1.088 |
|||||||
|
Employees quickly respond to customers’ complaints. |
4.793 |
0.406 |
2.607 |
1.016 |
|||||||
|
Every electricity office has helpdesk for enquiry. |
4.713 |
0.454 |
3.860 |
0.927 |
|||||||
|
Company gives information in advance for power cuts. |
4.713 |
0.548 |
3.673 |
1.223 |
|||||||
|
Customers get the satisfactory service in the first visit to the company office. |
4.680 |
0.594 |
3.900 |
0.888 |
|||||||
|
Reliability |
|||||||||||
|
Employees give reliable answers to customers’ enquiries. |
4.480 |
0.501 |
2.453 |
1.059 |
|||||||
|
The company provides correct electricity bills. |
4.480 |
0.552 |
2.740 |
1.065 |
|||||||
|
Customers get full voltage all the time. |
4.467 |
0.575 |
2.613 |
1.054 |
|||||||
|
Company gives 24 hours supply. |
4.207 |
0.846 |
2.507 |
1.110 |
|||||||
|
Meter reader honestly notes correct reading from the meter. |
4.567 |
0.511 |
2.887 |
1.150 |
|||||||
|
Communication |
|||||||||||
|
Prior information about due date of bill is given to customers through phone. |
4.400 |
0.543 |
3.627 |
1.218 |
|||||||
|
Company provides toll-free numbers for enquiries. |
4.527 |
0.527 |
3.820 |
0.812 |
|||||||
|
Employees communicate with customers in regional language. |
4.393 |
0.601 |
3.887 |
0.574 |
|||||||
|
Company runs awareness programs through advertisement, social media and newspapers. |
4.353 |
0.592 |
3.693 |
0.948 |
|||||||
|
Company gives notice before disconnection of meter. |
4.440 |
0.549 |
3.853 |
0.937 |
|||||||
|
Security |
|||||||||||
|
Customers are secured in all financial transactions. |
4.460 |
0.500 |
2.547 |
1.078 |
|||||||
|
Employees show ID proof while visiting to customer premises (for meter reading etc.). |
4.427 |
0.679 |
2.247 |
0.983 |
|||||||
|
Company does timely maintenance of transformers. |
4.440 |
0.524 |
2.293 |
1.040 |
|||||||
|
Supply lines are far from the reach of customers. |
4.433 |
0.618 |
2.240 |
1.028 |
|||||||
|
Company properly seals the electricity meters. |
4.480 |
0.564 |
2.580 |
1.255 |
|||||||
|
Courtesy |
|||||||||||
|
Employees behave respectfully with the customers. |
4.460 |
0.500 |
2.560 |
1.059 |
|||||||
|
Behavior of the employees is same with all the customers. |
4.440 |
0.596 |
2.713 |
1.107 |
|||||||
|
At the entrance of electricity office, ramps are available for the physically challenged customers. |
4.480 |
0.552 |
2.347 |
1.017 |
|||||||
|
Expertise staff is available to properly deal with physically challenged (deaf, dumb, blind) customers. |
4.520 |
0.564 |
2.433 |
1.064 |
|||||||
|
Customers get new connection with less formalities. |
4.440 |
0.511 |
2.167 |
1.058 |
|||||||
|
Credibility |
|||||||||||
|
Company does repairing of equipments without charging money from customers. |
4.327 |
0.573 |
3.320 |
1.045 |
|||||||
|
The supply is restored within the minimum time. |
4.440 |
0.585 |
3.293 |
1.144 |
|||||||
|
Electricity bills are provided by the company at the time of meter reading. |
4.413 |
0.626 |
3.227 |
1.124 |
|||||||
|
Customers have secured toll free number/online facility to report against employees. |
4.320 |
0.669 |
3.260 |
1.184 |
|||||||
|
Electricity meter runs at normal speed. |
4.453 |
0.551 |
3.353 |
0.984 |
|||||||
|
Competence |
|||||||||||
|
Billing is done on monthly basis. |
4.340 |
0.731 |
3.493 |
1.122 |
|||||||
|
Employees ensure the safety of customers after repairing and maintenance work. |
4.467 |
0.501 |
3.280 |
1.159 |
|||||||
|
Customers get the electricity bill at least 7 days before due date. |
4.513 |
0.501 |
3.373 |
1.090 |
|||||||
|
Major equipments (like transformer) are replaced without any delay. |
4.467 |
0.501 |
3.080 |
1.184 |
|||||||
|
Company takes strict actions for theft complaints. |
4.487 |
0.642 |
3.327 |
1.033 |
|||||||
|
Accessibility |
|||||||||||
|
Employees are available in any emergency conditions. |
4.427 |
0.496 |
2.093 |
0.780 |
|||||||
|
Bill correction procedures are easy for customers. |
4.427 |
0.496 |
2.180 |
0.997 |
|||||||
|
Customers have facility of online complaint registration. |
4.447 |
0.525 |
2.620 |
1.097 |
|||||||
|
Customers get the online facility to apply for new connections. |
4.447 |
0.585 |
2.313 |
0.898 |
|||||||
|
Company provides facility to pay the bill through various modes (cash, cheques, online and drafts). |
4.407 |
0.519 |
2.860 |
1.187 |
|||||||
Reliability Analysis:
Reliability of the survey instrument has been checked by calculating the Cronbach coefficient alpha (Cronbach, 1951)27. This coefficient is used to assess the internal consistency of the items. For the instrument to be considered valid for survey, Cronbach alpha should be more than 0.70 (Nunally, 1978)28. Therefore, reliability coefficient’s value has been computed for all ten dimensions of SERVQUAL model in case of both customer expectations and perceptions. The reliability of all dimensions is shown in Table 2. As, it is observed from Table 2, that all dimensions under expectation have value of alpha above than 0.70; same applies for perception also. Overall reliability coefficient in case of expectation and perception is also high. Thus, the designed instrument is considered valid for doing the survey and collecting reliable data for analysis.
Descriptive analysis:
Descriptive analysis of the data through SPSS (version 20.0) software gives mean and standard deviation of customers’ expectations and perceptions towards each statement. Table 3 presents the descriptive statistics of the responses collected from respondents using SERVQUAL based questionnaire. Almost all the statements of every dimension have mean value of expectation higher than 4. This shows that customers irrespective of their demographic profile have high expectations from the company with respect to every dimension. But the customers’ perceptions are not that much high. Customers have comparatively good value of perception (i.e., above 3) with respect to following dimensions: communication, credibility and competence. For dimension of responsiveness, customers’ perception is slightly higher than other dimensions (tangibility, empathy, reliability, security, courtesy and accessibility). These observations show that company’s performance is not remarkably good with regard to different dimensions of SERVQUAL model.
Table 4. Paired t-test for SERVQUAL dimensions
|
Dimensions |
Gap (P-E) |
t-value |
Df |
Sig. |
|
|
Mean |
Std. Deviation |
||||
|
Tangibility |
-2.279 |
0.412 |
32.053 |
149 |
0.000 |
|
Empathy |
-1.772 |
0.383 |
25.058 |
149 |
0.000 |
|
Responsiveness |
-1.370 |
0.534 |
24.225 |
149 |
0.000 |
|
Reliability |
-1.800 |
0.490 |
23.309 |
149 |
0.000 |
|
Communication |
-0.647 |
0.335 |
10.690 |
149 |
0.000 |
|
Security |
-2.067 |
0.500 |
26.130 |
149 |
0.000 |
|
Courtesy |
-2.024 |
0.516 |
26.258 |
149 |
0.000 |
|
Credibility |
-1.100 |
0.496 |
13.671 |
149 |
0.000 |
|
Competence |
-1.144 |
0.543 |
15.093 |
149 |
0.000 |
|
Accessibility |
-2.018 |
0.468 |
29.98 |
149 |
0.000 |
Table 4 shows the gap between mean value and standard deviation of customer expectations and perceptions on different dimensions. Gap between expectations and perceptions assesses service quality of the company. As gap is calculated as the difference between perception and expectation and listed in Table 4, all dimensions have negative gap. This shows that customers’ expectations are very high as compared to their perceptions towards company’s performance.
They do not get the services as expected from the company on all dimensions. In other words, it is analysed that the customers are not satisfied with the company services. Among all ten dimensions, there is lowest gap (-0.647) with regard to communication services. Different dimensions, arranged sequentially according to the increasing gap are as follows: communication (-0.647), credibility (-1.100), competence (-1.144), responsiveness (-1.370), empathy (-1.772), reliability (-1.800), accessibility (-2.018), courtesy (-2.024), security (-2.067) and tangibility (-2.279).
This sequence has highest performing dimension first, followed by less performing dimensions. Thus, tangibility is the weakest dimension of the company’s services and communication is the strongest dimension.
Hypothesis Testing:
To prove the hypothesis, paired t-test is performed in SPSS on the mean values of customers’ expectations and perceptions of all the respondents. Table 4 gives t-value, df and significance value for all dimensions. This test has been performed considering 0.05 significance value. All the dimensions have significance value smaller than 0.05. This observation infers that the mean value of perceptions and expectations have significant difference between them. In other words, it is understood that the gap between expectations and perceptions is significant for all dimensions. This proves that alternative hypothesis, H1, is accepted thus rejecting the null hypothesis, H0.
7.CONCLUSION:
From this study, it is concluded that there is huge gap between customers’ expectations and perceptions towards the company’s services. The customers’ expectations and perceptions have been analysed on ten different dimensions of SERVQUAL model. On all the dimensions, customers’ expectations are higher than their perceptions leading to large negative gaps. The dimension of communication has lowest gap and the dimension of tangibility has maximum gap. For testing the hypotheses, paired t-test is performed. The result of t-test reveals that the gap between expectations and perceptions is significantly high. Observations of this study highlight the dimensions of SERVQUAL model upon which the company’s performance is lagging and is not meeting the customer’s expectations.
8.PRACTICAL IMPLICATIONS:
This work helps the distribution company to study the customers’ expectations and perceptions on different dimensions. This study provides the clear view of what items customers expect the most and what items they expect the least from the company. The analysis would facilitate the company to explore about the weakest dimension and would also provide the clear vision of estimates about how much the company is lagging on different dimensions. Thus, it would help in deciding the management strategies which could aim the minimum gap between customers’ expectations and the company’s services. Also, the company can prioritize their efforts first towards their weakest dimensions of service quality.
9.LIMITATIONS OF THE STUDY:
This study covers analysis of primary data collected from the customers of one distribution company, UHBVN, at district level only. More comprehensive view can be taken by surveying more districts served by UHBVN.This study can also be extended to other distribution companies so that performance of different distribution companies can be compared with respect to different dimensions. Analysis over the complete State can bring out the dimensions on which all the distribution companies in the State need to be worked upon to improve their service quality.
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Received on 29.01.2018 Modified on 11.02.2018
Accepted on 20.02.2018 ©A&V Publications All right reserved
Asian Journal of Management. 2018; 9(1):702-708.
DOI: 10.5958/2321-5763.2018.00109.9