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Asia Pacific Journal of Multidisciplinary Research

P-ISSN 2350-7756 | E-ISSN 2350-8442 | www.apjmr.com | Volume 2, No. 4, August 2014


__________________________________________________________________________________________________________________

Correlation Analysis of Customer Satisfaction and


Loyalty in Carlito Peña Reyes Hospital
ARNOLD M. MENDOZA, MBA
Chief Medical Technologist, CP Reyes Hospital, Master in Business Administration, Graduate School
Lyceum of the Philippines University, Batangas City, PHILIPPINES
tmcidtl@yahoo.com

Date Received: May 13, 2014; Date Published: August 15, 2014

Abstract - This study evaluated the patient satisfaction and present evidences for quality services and
identified the level of satisfaction of patients to hospital services in different hospital areas such as the front
liners, ward/ICU, support businesses and business office: The study also determined the loyalty of patients;
and established the extent of relationship of patient satisfaction and loyalty. The descriptive research design
was utilized in conducting the study. The researcher used a survey questionnaire as the data gathering
instrument supported by interviews and observation.
Results showed that the patients at CP Reyes Hospital were very satisfied to the quality medical services
they received. Complaints were also identified at CP Reyes Hospital. The researcher proposed an action
plan that medical service providers must focus on how to create attractive elements that increase customer
satisfaction levels and gain customer. The overall recommendation is that CP Reyes Hospital should strive to
maintain the high standard in order to keep patients satisfied with the services they received.

Keywords – Correlation Analysis, Customer Satisfaction, Health Care Institution

I. INTRODUCTION improve on the quality of service offered in order to


Measurement of customer satisfaction in behavioral compete.
health services has received increasing emphasis due to The trend of world markets has changed noticeably
clinicians‟ and researchers‟ desire to measure outcomes from agricultural to service markets. All of the service
that reflect the patient‟s unique perspective. Likewise, businesses are trying their best to improve their service
assessment of customer satisfaction serves as a strong quality in order to make their customers satisfied with
basis for future revenues and action plans to improve their services, especially the hospital industry. Hospital
quality service. administration now focuses more on the quality
The customer is in the best position to evaluate in standards in order to meet the basic needs and
terms of judging the quality of a product or service. expectations of the customers. Once customer
With the fast changing, fierce market conditions requirements are clearly identified and understood,
prevalent within the service trade, improvements in hospital management is more likely to anticipate and
terms of competitiveness and yield rates rely on fulfill their customers‟ needs and wants. The more
effective, active and improved service quality. Thus, satisfied the customers are, the more likely they are to
service quality directly affects customer satisfaction. return.
The same holds true for the medical service industry. The study of customer satisfaction has been broadly
Medical administrative departments in hospitals must considered by the social psychologists, marketing
focus on customer demands for consistency and researchers and the field of consumer behavior.
meeting needs, for clear policies regarding service Throughout the past few decades, service quality has
quality and for up-to-date medical treatment and service drawn a tremendous consideration from researchers and
quality. Further, all of the above can help to improve practitioners due to its significance contribution on
and increase the loyalty of both customers and hospital business performance, customer satisfaction, customer
staff members. Moreover, health professionals must loyalty and profitability (Santouridis & Trivellas, 2010).

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P-ISSN 2350-7756 | E-ISSN 2350-8442 | www.apjmr.com
Asia Pacific Journal of Multidisciplinary Research | Vol. 2, No. 4| August 2014
Mendoza, A. M., Correlation Analysis of Customer Satisfaction and Loyalty in C. P. Reyes Hospital

Many empirical studies have shown that customer quality of CP Reyes Hospital improves the relationship
satisfaction secures future revenues, reduces future between customers and their loyalty to the organization.
transaction costs, decreases price elasticity and Private hospitals like CP Reyes Hospital are more profit
minimizes the likelihood of customers defecting if oriented than other public hospitals. Revenue generating
quality falters. Customer satisfaction regarded how of the firm largely depends upon the attraction of the
customers can get more benefits than their cost. customer and retain them. A satisfied customer is
Customer satisfaction plays the most important role in always an asset for an organization and their loyalty
total quality management. In comparison with other comes from within.
traditional performance measures, customer satisfaction Therefore, customer satisfaction and loyalty can be
is probably less sensitive to seasonal fluctuations, an emotional post consumption response that may occur
changes in costs or changes in accounting practices as the result of comparing expected and actual
(Lee, 2006). performance or it can be an outcome that occurs without
Customer satisfaction is still met as reflected in the comparing expectations and will facilitate service
customer loyalty (Sunto et al., 2013). Customer loyalty quality improvement. It is in their premise that the
may be a one-time program or incentive, or an ongoing researcher as one of the managers needs the baseline
group of programs to entice consumers. Buy-one-get- data to recommend the best for customer satisfaction.
one-free programs were very popular, as purchases that
come with rebates or free gifts. Another good incentive II. OBJECTIVES OF THE STUDY
for achieving customer loyalty is offering a risk free This study correlated the patient satisfaction and
trial period for a product or service. Also known as loyalty in CP Reyes Hospital. Specifically, the study
brand name loyalty, these types of incentives are meant assessed the level of satisfaction of patients on hospital
to ensure that customers will return, not only to buy the services in the following areas: front liners, ward/ICU,
same product again and again, but also to try other support services and business office; determined the
products or services offered by the company (Kiran, loyalty of patients; established the extent of relationship
2010). between customer satisfaction and loyalty of the
Finally, patients are unlikely to be satisfied with the respondents; proposed an action plan to improve the
quality of medical service they receive if general quality services of CP Reyes Hospital.
is lacking, and they are also unlikely to be satisfied with
the quality of their medical service if it does not include Ho: This study will test the null hypothesis, that there is
some form of must-be quality, even if a form of general no significant relationship between customer
quality is present. A lack of some attractive qualities is satisfaction and loyalty of patients of CP Reyes
not necessarily a big concern, but if forms of attractive Hospital.
qualities were provided, it may possibly be a patient‟s
favorite service. Therefore, medical service providers III. METHODS
must focus on how to create attractive elements that Research Design
increase customer satisfaction levels and gain customer Descriptive research, also known as statistical
loyalty. research, describes data and characteristics about the
This study highlights the role of medical service in population or phenomenon being studied. This type of
building an organization‟s competitive advantage. For research describe what exists and may help to uncover
organizations to survive and prosper, creating new facts and meaning. The purpose of descriptive
competitive advantage through customer loyalty is the research is to observe, describe and document aspects of
strategic imperative. The effort to deliver excellent a situation as it naturally occurs.
service begins with finding out what your customers This involves the collection of data that will provide
want and expect from one‟s company and recommends an account or description of individuals, groups or
some means for doing so. At CP Reyes Hospital, situations. The researcher made use of questionnaires,
service quality is not the magniloquence of the today‟s interviews and observation in order to obtain data.
business enterprise but also occupies a towering There was no experimental manipulation or any random
position in every business. Without providing accurate selection to the groups. A focused group discussion was
level of satisfaction to customer with good levels of also used in this study among patients and the services
service quality no business can survive; they are the key rendered by the hospital. Patients are those who are
point to the organization nowadays. Better service already in the hospital and having services. The

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P-ISSN 2350-7756 | E-ISSN 2350-8442 | www.apjmr.com
Asia Pacific Journal of Multidisciplinary Research | Vol. 2, No. 4| August 2014
Mendoza, A. M., Correlation Analysis of Customer Satisfaction and Loyalty in C. P. Reyes Hospital

interrelationships between what the hospitals are doing – 4.49 = Very Good; 2.5 – 3.49 = Satisfactory; 1.5 –
and how they are going to achieve their goals and aim 2.49 = Needs Improvement; 1.0 – 1.49 = Poor
appears to be one of the most important. Therefore, this
paper verified the relationship and the factors affecting IV. RESULTS AND DISCUSSION
the customers‟ satisfaction and loyalty of CP Reyes
Hospital. Table 1. Level of Satisfaction of Patients on Hospital
Services In the Admitting Section (N = 98)
Participants Admitting Section Mean Rank Interpretation
A total of 98 patients, who were admitted at CP a. Information
Reyes Hospital from November 12 to 25, 2012 were the 3.81 1 Very Good
Section
respondents of the study who were selected using the b. ER Personnel 3.76 3 Very good
random sampling method so that all the samples of the c. Industrial Clinic 3.22
same size have an equal chance of being selected from 6 Satisfactory
Staff
the entire population. d. Security Staff 3.35 5 Satisfactory
e. Telephone 3.79 2 Very Good
Instrument Operator
A questionnaire was used as an instrument for
f. Admitting Staff 3.60 4 Very Good
data collection. The researcher explored customer‟s
expectation and perception level towards service quality g. Janitorial 3.21 7 Satisfactory
of CP Reyes Hospital medical staff and personnel. The Services
questionnaire was distributed to 98patients on their stay Composite Mean 3.53 Very Good
and experiences at CP Reyes Hospital. These patients
were requested to complete the questionnaire at the Table 1 shows the satisfaction of the respondents in
commencement of their stay. The degree of satisfaction relation with the hospital services in the admitting
towards service quality of CP Reyes Hospital medical section. At CP Reyes Hospital, the admitting section is
staff and personnel was set from 1 to 5, (5 being the responsible for providing a systematic and orderly
highest and 1 being the lowest). 5 Excellence (E), 4 process of admitting patients to the center by securing
Very Good (VG), 3 Satisfactory, 2 Needs Improvement all information pertinent to the patient's purpose of
and 1 Poor (P). The questionnaire was generated to ask going to the hospital and ensuring the accurate reporting
the customer patients about the service quality of the of admissions and discharges. It also provides accurate
hospital and was translated in Filipino language for a and complete information on admission requirements,
more and better understanding of the customers. hospital rules and regulations and other hospital
activities.
Procedure There are four departments wherein respondents
The researcher sought the permission of the hospital gave a very good score such as the information section
management through the board of directors with a which obtained a weighted mean of3.81.At the
formal letter and personal appearance. After the information section of CP Reyes Hospital, the staff
approval of the board the researcher distributed the usually entertains frequently asked queries such as the
questionnaires to the respondents. room number of patients, clinic hours of the doctors and
the availability of locations of different diagnostic
Data Analysis ancillary services and other important matters within the
The data gathered were tabulated, interpreted and hospital. Telephone operator, (3.79) does provide
analyzed using the following tools: Frequency information by accessing alphabetical and geographical
distribution was used to analyze and interpret the directories.
profile, Weighted mean was used to analyze the According to the conducted survey, most customers
respondent‟s satisfaction and loyalty on the hospital‟s looked for assistance with special billing requests such
quality service and Pearson correlation was used in as charges to a third party and credits or refunds for
determining the correlation between the profile of the incorrectly dialed numbers or bad connections. They
patients and their satisfaction on the services offered by may also handle emergency calls and assist children or
CP Reyes Hospital. To interpret the level of satisfaction people with physical disabilities to make telephone
the following scale was used: 4.5 - 5.0 = Excellent; 3.5 calls. However, the emergency room personnel with a
weighted mean of 3.76 are those of the busiest persons.
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P-ISSN 2350-7756 | E-ISSN 2350-8442 | www.apjmr.com
Asia Pacific Journal of Multidisciplinary Research | Vol. 2, No. 4| August 2014
Mendoza, A. M., Correlation Analysis of Customer Satisfaction and Loyalty in C. P. Reyes Hospital

According to the survey, they attended patients who aides. They also provide emotional support to patients
were present without prior appointment, either by own and patients‟ family members. Nurses play a very
means or ambulance. Due to the unplanned nature of important role in the field of healthcare.
patient attendance, the department must provide initial Following the highest is the food services with a
treatment for a broad spectrum of illnesses and injuries weighted mean of (3.50). The dietary service of CP
of which may be life threatening and require immediate Reyes Hospital is one of the important support services
action. Lastly, the admission section got a weighted of the hospital unlike any other services. It is headed by
mean of (3.60). Other hospital services under the a licensed dietician. The objective of
admitting section where the respondents gave the dietary service of CP Reyes Hospital is to make
satisfactory score were the security staff (3.35). provision for clean, hygenic and nutritious diet for the
According to the study, some security officers on duty admitted patients as per their calorie requirement.
may not be aware of their job for some complaints were Lastly, the facility of the hospital garnered the
raised. Industrial clinic staffs obtained a weighted mean lowest rate of 3.46 as satisfactory.Based on the recent
of (3.22) who are officers in charge of the clients inspection conducted by the PHIC (Philhealth) officers,
coming from different companies also got satisfactory. CP Reyes Hospital was classified as Center of
Few of the respondents commented that some clients Excellence. The Center of Excellence award was
were waiting longer time due to high number of being granted to accredited hospitals that have met the
entertained. Lastly, the janitorial services that got the stringent criteria articulated in the Benchbook which
lowest weighted mean of (3.21). Most respondents said has become the standards for accreditation. In
that the complain of most patients arise due to particular, the health care facility is able to comply with
insufficient number of janitor and general service quality standards in the areas of patients' rights,
officers to carry out all the duties versus the total organizational ethics, patient care, safe practice and
number of rooms and toilets to clean, unsoil and environment, leadership and management, human
sanitize. resource management, information management, and
Overall customer satisfaction had a significantly improving performance. They recognized the efforts of
negative direct association with customer complaints. the hospitals and encouraged them to continue with
That is, as the customer satisfaction increased, customer their best practices on clinical and quality assurance and
complaint would decrease. Therefore, customer aim for excellence in the delivery of health care.
complaint would be seen as an immediate response of The healthcare facilities of CP Reyes Hospital were
customer satisfaction, it is embedded opportunities to inspected to determine if certain standards of care are
improve. being met. The engineers and medical technician of CP
Reyes Hospital performed inspections, as part of the
Table 2. Level of Satisfaction of Patients on Hospital ongoing improvement process. Inspections may also
Services At the ward/ ICU (N= 98) become necessary based on complaints received by the
At the Ward/ Mean Rank Interpretation property custodian through the Human Resource
ICU Department. Once inspection took place, the human
Nurse 3.59 1 Very Good resource department should be ready for deficiencies
Food 3.50 2 Very Good and compliance if it is found to provide substantial care.
Facilities 3.46 3 Satisfactory The said inspection conducted by the Philhealth officers
Composite Mean 3.52 Very Good was done annually to continuously improve
performance of the facility and its staff and personnel. It
In terms of the level of satisfaction of patients on also aims to consistently perform the best practices on
hospital services at the Ward/ICU, the nursing service medical management towards excellence in the delivery
ranked on top with a mean of (3.59) and was interpreted of healthcare.
as very good. Nurses often work in hospitals or Table 3 shows the level of satisfaction of patients
outpatient facilities, where they provide hands on care on hospital Support Services. The respondents strongly
to patients by administering medications, managing agreed that when it comes to hospital support services,
intravenous lines, observing and monitoring patients‟ the laboratory technologist (4.10), x-ray technologist
conditions and maintaining records and communicating (3.67), pharmacy staff (3.60), ultrasound/CT scan staff
with doctors. They were also relied upon to give (3.55) and heart station (3.53) received a very favorable
direction and supervision to nurse aids and home health response from the respondents.

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P-ISSN 2350-7756 | E-ISSN 2350-8442 | www.apjmr.com
Asia Pacific Journal of Multidisciplinary Research | Vol. 2, No. 4| August 2014
Mendoza, A. M., Correlation Analysis of Customer Satisfaction and Loyalty in C. P. Reyes Hospital

Table 3. Level of Satisfaction of Patients on Hospital Table 4. Level of Satisfaction of Patients on Hospital
Support Services (N= 98) Services in the Business Office (N= 98)
Support Services Mean Rank Interpretation Business Office Mean Rank Interpretation
a. Heart station 3.53 5 Very Good Billing Officers 3.59 2 Very Good
b. Ultrasound/CT Cashiers 3.61 1 Very Good
3.55 4 Very Good HMO Staffs 3.57 3 Very Good
Scan
c. X-ray PHIC Staffs 3.52 4 Very Good
3.67 2 Very Good Composite Mean 3.57 Very Good
Technologists
d. Lab 4.10 1 Very Good
Technologists With regard to the business division of CP Reyes
e. Pulmonary Unit 3.31 Hospital, the cashier section got a composite mean of
6 Very Good 3.61. Because of the Bizbox hospital system, the
Staff
f. PT/Rehab patients were very satisfied with the procedure and
2.94 8 Very Good never devote more time paying the bills and other
Therapists
g. OR Staff 3.31 7 Very Good statement of accounts. The BisBox is a comprehensive
h. Pharmacy Staff 3.60 3 Very Good and reliable Internet Server that will provide clients
with all the functionality they need to utilize the power
Composite Mean 3.48 Very Good
of the Internet, from remote access; to the effective
management and control of Internet resources within a
The laboratory technologists of CP Reyes Hospital secure environment. The BisBox „s combination of
are the bread and butter of the hospital since more than technological enhancements and cost effective solutions
fifty percent of the income of company came from the made it a necessity in any organization or business. It is
laboratory department. They are involved in a variety of an Internet Gateway Server that is used to connect an
lab based investigation within biological, chemical and enterprise or organization to the Internet and control all
physical life sciences. Internet activity. It includes components like a
They may carry out sampling, testing, measuring, Firewall, Proxy Server, VPN Server, Email Server with
recording and analyzing results of different body fluids. Webmail and Virus scanning functionality, a FTP
They are the health professional who performed Server and Traffic Monitoring utilities. The BisBox was
laboratory in order to produce reliable and precise data supplied and maintained by Network & Computing
to support scientific investigation. The respondents also Consultants (Pty) Ltd and supported by NCC‟s NOC
agreed with services supported by the x-ray (Network Operations Centre) , which is comprised of
technologist, CT scan, ultrasound personnel support highly skilled and efficient senior consultants ready to
patients, doctors and nurses through a variety of tasks assist should any problem or query arise. All
related to the medical field of radiology: Working under components of the BisBox were managed through a
the orders of the radiologist in charged, the x-ray Web Interface, which made the BisBox a highly
technologists captures necessary radiology images and efficient, cost effective and easy to use business tool.
maintain diagnostic imaging equipments. Pharmacy This is followed by the billing officers (3.59) whom
staff dispenses medications and related supplies using are very organized and systematized and showed
accepted pharmaceutical techniques to fill written respect and high regards to the clients. They do the
and oral prescription issued by physicians and qualified billing of the accounts of the patients to be discharged.
prescribers whilst heart station staff of CP Reyes At Health Maintenance Office section, (3.57)
Hospital does perform cardiac laboratory procedures respondents were well entertained although some
such as the ECG, 2d echo and many others. discrepancies were sometimes encountered with respect
The Department of Health (DOH) is the principal to their health cards being used. The Health
health agency in the Philippines. It is responsible for Maintenance Office officer approves the procedures
ensuring access to basic public health services to all requested by the physicians with the health card's
Filipinos through the provision of quality health care principal permission through phone calls and letter of
and regulation of the providers of health goods and authorization. At the PHIC section, (3.52) where most
services. They conduct quarterly visit to hospitals to patients ought to have, the respondents were also
assure the quality and performance. pleased and gratified. A patient with PHIC are
automatically granted special discounts and mandatorily
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P-ISSN 2350-7756 | E-ISSN 2350-8442 | www.apjmr.com
Asia Pacific Journal of Multidisciplinary Research | Vol. 2, No. 4| August 2014
Mendoza, A. M., Correlation Analysis of Customer Satisfaction and Loyalty in C. P. Reyes Hospital

paid by the Philhealth to the hospital and are patient‟s face and made them feel what they deserved.
spontaneously deducted to their hospital bill. Philhealth CP Reyes Hospital employees treat people on how they
section features the different membership categories as want to be treated.
well as details on benefit coverage, premium payment,
data amendment and other procedures that each type of Table 6. Correlations Between Patient Satisfaction and
member must know. Respondents must be informed Loyalty (N= 98 Alpha = 0.05)
that Philhealth custom-fit the information to ensure Patient p-
rxy Interpretation
specific concerns of each of the member. Philhealth satisfaction (x) value
forge partnerships with only the best in the industry for Information 0.052 0.61 Not Significant
them to fulfill and mandate their objective of providing Section
all Filipinos accessible, available, acceptable and ER Section 0.076 0.457 Not Significant
affordable healthcare service that will lead to a better Industrial Clinic -0.015 0.884 Not Significant
outcome and improved quality of life. Staff
Security Staff -0.116 0.257 Not Significant
Table 5. Level of Loyalty of Patients (N= 98) Telephone 0.079 0.442 Not Significant
Items Mean Rank Interpretation Operator
a. CPRH compared 2.43 Admitting Staff 0.025 0.808 Not Significant
1 Better
to other hospitals Janitorial 0.173 0.088 Not Significant
b. Service Services
compared to Nurse 0.181 0.074 Not Significant
2.13 2 Better Food 0.017 0.866 Not Significant
previous
experience Facilities 0.066 0.516 Not Significant
c. Recommendation 1.98 Heart Station 0.009 0.930 Not significant
3 Same Ultrasound Staff 0.041 0.687 Not Significant
of CPRH
Composite Mean 2.19 Better X-ray -0.015 0.880 Not Significant
Legend: Poor:1.5 – 1.99; Same: 1.1 – 2.0; Better: 2.1 – 3.0 Technologists
Lab 0.073 0.478 Not Significant
After tabulating down the surveys, CP Reyes Technologists
Hospital was found better compared to other hospitals. Pulmonary Unit 0.064 0.534 Not Significant
CP Reyes Hospital's legacy of excellence and Staffs
compassionate care surpassed most expectations. With PT/ Rehab -0.002 0.981 Not Significant
astounding success, anchored on provisions of Therapists
expertise, - expert doctors, state of the art technology, OR Staffs 0.075 0.461 Not Significant
patient safety and security, admirable reputation, and Pharmacy Staffs 0.159 0.119 Not Significant
compassionate care and service, CP Reyes Hospital Billing Staffs 0.050 0.662 Not Significant
continuously innovates and makes it one of the best PHIC Staffs 0.208 0.039 WC but Significant
hospitals in the region. According to the present study, WC- weak correlation
CP Reyes Hospital has been rated better with the Based on the table 6, it shows the relationship
current service level compared to previous experiences between patient satisfaction and loyalty of CP Reyes
since most patients were satisfied and contented with Hospital. As shown, there was no significant
the medical services and hospital facilities and relationship between patient satisfaction and loyalty in
equipments. And most respondents preferred to respect to the different divisions and sections of the
recommend CP Reyes Hospital to their family and hospital, except for the PHIC which was the only
friends who need medical and healthcare assistance. In section with weak correlation but significant
relation with patient satisfaction, the level of loyalty of relationship.
patients was tested and considered with a composite One significant and poorly understood reason for
mean of 2.19, it was verbally interpreted as Better. under-utilization of healthcare services is a poor patient
Patients cited some of the reasons why they are loyal experience. For instance, if scheduling an appointment
with the hospital. The top response was that CPRH for a hospital service at CP Reyes Hospital is a hassle,
employees showed that they care to patients. The staff patients will be deterred from using the service.
and personnel's extraordinary service gave smile to the Boosting patient satisfaction can increase patients'

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P-ISSN 2350-7756 | E-ISSN 2350-8442 | www.apjmr.com
Asia Pacific Journal of Multidisciplinary Research | Vol. 2, No. 4| August 2014
Mendoza, A. M., Correlation Analysis of Customer Satisfaction and Loyalty in C. P. Reyes Hospital

consumption and thus their loyalty to the hospital. V. CONCLUSIONS AND RECOMMENDATIONS
Patient satisfaction is determined by multiple factors in The customers were very satisfied with the service
order to determine what is most important to patients' of CP Reyes Hospital. The customers were found to be
healthcare experience. If a hospital understands its loyal to CP Reyes Hospital. Loyalty is not dependent on
customers, knows where those individuals live, knows customer satisfaction. A proposed action plan to
their needs are and what value can be expected from improve the quality service of CP Reyes Hospital was
serving them maybe the basis of forming a strategic formulated.
plan. Another way to build loyalty among patients is to CP Reyes Hospital may continuously maintain and
ensure easy access to the organization's services. reach the highest standard of quality services offered to
Patients' low consumption of healthcare services may its customers. CP Reyes Hospital may aim more to
be due to difficult access to those services rather than encourage the staff treat patients with courtesy and
poor satisfaction. If a hospital's physical network isn't respect in line with the customer loyalty of patients at
conveniently located for patients to be able to access it, CP Reyes Hospital. CP Reyes Hospital may intensify
loyalty is going to be lost over time. marketing programs to encourage customer loyalty.
Future research about CP Reyes Hospital using other
Proposed Action Plan to Identified Services that variables of importance may be conducted.
Needs Improvement to CP Reyes Hospital
In order to improve CP Reyes Hospital‟s medical REFERENCES
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