Service Quality Expectations

Service quality is an essential component of organizational performance in the public sector. To

measure service quality, specific instruments were developed. The most dominant instrument in
measuring service quality is SERVQUAL. It was proposed by Parasuraman, Berry and Zeithmal
in 1985 which comprised of 10 dimensions with 97 items and later reduced to 5 dimensions with
22 items. The dimensions are tangibility, reliability, responsiveness, assurance and empathy
(Mahmod al-Azam, 2015). The approach begins with the assumption that the level of service
quality experienced by customers is critically determined through a gap analysis between
customer's expectations for excellence and their perceptions of actual service delivered.

In 2011, Ji Cheng Zhu uses the SERVQUAL model and compares it with analytic hierarchy
process in Hewlett Packard service centre in China and found out later on that both model have
significance different in voicing out customers opinion. However, in order to keep and attract
more passengers, organization must to have high service quality to satisfy and fulfill more wide
range of different customers needs (Oliver, 1980). Provider should not only satisfy customers
but must also delight them. But, the dimensions of Parasuraman et. al., (1994) are adapted to
service situations dominated by individual contact between customers and providers.

Previous study it would be impossible to carry out "quality" in the travel agency which sold the
package bears and sold to the average rate of the average tourist. In the service industry, the
definition of service quality focus on meeting customer needs and wants, and how services are
delivered to meet customer expectations (Mohamed, 2007). (Mohamed, 2007) has defined
"quality of service" as a global judgment, or attitude related to service excellence. They
associate the concept of quality service to the concept of perception and expectations in this
way.

The perception on the quality resembles the customers view on receiving a high quality service
as expected from the service providers attributes. It is the customers attitude and the outcome
of the comparison that has been made between what should be delivered to the client and the
actual services received from the customers perception and impression (Faiz and Fong, 2011).
Price Perception

Price is a defining factor that can have a dramatic effect on customers pre-purchase
evaluations. Travel agents are privy to special flight prices, special hotel and cruise cabin rates
that consumers will never find online themselves. This feature alone will save customer money.
Consumer must be a licensed travel agency or belong to a specific insider group. Beyond
pricing, travel agents can often get special amenities like ship board credits or insider tours that
can enhance your family's vacation. Pricing changes can be made quickly and with almost no
lead time if the business needs to make some product positioning changes or to counter a
competitors activities. In comparison, a change to the product or to a distribution channel can
take months and sometimes significant cost inputs. Similarly any promotion decisions will also
require additional financial input. Though it is important to plan for pricing changes and their
impact on the brand and product perception, this can still be accomplished much faster than any
other changes.

Price is a value that will purchase a finite quantity, weight, or other measure of a good or
service. Price can be define as the consideration given in exchange for transfer of ownership,
price forms the essential basis of commercial transactions. It may be fixed by a contract, left to
be determined by one formula agree with at a future date, or meet or negotiate during matter
between party involved. To sellers in a transaction, price reflects the revenue generated for each
product sold and, thus, is an important factor in determining profit. For marketing organizations
price also serves as a marketing tool and is a key element in marketing promotions. Pricing is a
strategy to build a market share, low penetration pricing is often recommended (Nagle &
Holden, 2002).

Often company do not pursue value pricing because they perceive customers as quite price
sensitive (Wuollet, 2013). While when organization customized pricing in consumer markets is
at best slow, and at worst, illegal, it is common practice in B2B markets (Simon &Butcher,
2001).When the usage of the offering is what provides the value, a customized price can be
built which reflects this unique value (Narayandas, 2005). A price increase can bring either an
increase or decrease in revenue depending on the elasticity of demand (Hoffman et al, 2002).
Decrease or increase of the price will be determined the revenue some company.
Reference

Ghada Abd-Alla Mohamed (2007), SERVICE QUALITY OF TRAVEL AGENTS: THE VIEW
POINT OF TOURISTS IN EGYPT, TOURISMOS: AN INTERNATIONAL MULTIDISCIPLINARY
JOURNAL OF TOURISM Volume 2, Number 1, Spring 2007, pp. 63-87

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality
and its implications for future research. the Journal of Marketing, 41-50.

Oliver, R. L. (2009). Satisfaction: A behavioral perspective on the consumer: ME Sharpe Inc

Abdel Fattah Mahmoud Al-Azzam (2015) , The Impact of Service Quality Dimensions on
Customer Satisfaction: A Field Study of Arab Bank in Irbid City, Jordan, European Journal of
Business and ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.7, No.15, 2015

Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1994), Reassessment of expectations as a
comparison standard on measuring service quality: implications for further research, Journal of
Marketing, Vol. 58 No. 1, January, pp. 111-24.

Mohd Faiz Bin Mat Nasir & Lee Ming Foong (2011), KEPUASAN PELANGGAN TERHADAP
KUALITI PERKHIDMATAN DI FAKULTI PENDIDIKAN TEKNIKAL DARI ASPEK KEMUDAHAN
DAN FASILITI

Nagle, T. T., Holden, R. K. (2002). The Strategy and Tactics of Pricing. Upper Saddle River, NJ:
Pearson Education Inc.

Simon, H., &Butscher, S. A. (2001). Individualised Pricing: Boosting Profitability with the Higher
Art of Power Pricing. European Management Journal, 19(2), 109.

Narayandas, D. (2005). Building Loyalty in Business Markets. Harvard Business Review, 83(9),
131-139.

Hoffman, K., Turley, L. W., & Kelley, S. W. (2002).Pricing retail services.Journal Of Business
Research, 55(12), 1015.

Wollet,J. (2013). Pricing Strategy and Revenue Models: A Multiple Case Study from the IT
Service Sector in Finland. Journal of Department of Information and Service Economy.