An Integration of SERVQUAL Dimensions and Logistics Service Quality Indicators (A Case Study)

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An integration of SERVQUAL dimensions and logistics service quality


indicators (A case study)

Article  in  International Journal of Services and Operations Management · May 2015


DOI: 10.1504/IJSOM.2015.069650

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Int. J. Services and Operations Management, Vol. 21, No. 3, 2015 289

An integration of SERVQUAL dimensions and


logistics service quality indicators (A case study)

Reza Ahmadi Kahnali and Ahmad Esmaeili*


Department of Humanities,
Hormozgan University,
Bandar Abbas, Iran
Email: Ahmadi.hormozgan@gmail.com
Email: Ahmet.ismaeili@gmail.com
*Corresponding author

Abstract: Although some studies have examined logistics service quality, most
of them have not considered it specifically. The present study attempts to bring
together five generic dimensions of SERVQUAL and the most emerging
dimensions of service quality in the logistics industry in order to broaden the
evaluation scale. Drawing on a real case, it intends to apply the gap analysis in
two branches of the customs warehousing company. The collected data were
analysed by SPSS 19 and the Wilcoxon and Mann Whitney U test results
revealed that the expectations and perceptions of the customers did not match
in all dimensions.

Keywords: customs logistics service; SERVQUAL; service quality; public


warehousing.

Reference to this paper should be made as follows: Kahnali, R.A. and


Esmaeili, A. (2015) ‘An integration of SERVQUAL dimensions and logistics
service quality indicators (A case study)’, Int. J. Services and Operations
Management, Vol. 21, No. 3, pp.289–309.

Biographical notes: Reza Ahmad Kahnali is currently a Professor of


Production and Operations Management at Hormozgan University, Iran. He
obtained his PhD in Production and Operations Management from Tarbiat
Modarres University, Iran. He has been teaching in the major since 2000. He
has published several articles in various journals. Over the years, his research
projects have been sponsored by a number of organisations including
Hormozgan Power Plant, Sarkhoon & Qeshm Refinery, Hormozgan University,
Persian Gulf Special Trade Area. Also, he served as a Dean of Faculty for two
years, Hormozgan University Concil and economic advisor. His areas of
interest include service industry, supply chain management, and operations
management.

Ahmad Esmaeili is currently a PhD student in Production and Operations


Management at Hormozgan University. He obtained his BA in English
Literature from Kurdistan University, Iran and his MA in Production and
Operations Management from Hormozgan University, Iran. His areas of
interest include service industry, supply chain management, and operations
management.

Copyright © 2015 Inderscience Enterprises Ltd.


290 R.A. Kahnali and A. Esmaeili

1 Introduction

Competitive strategies taken by the companies have altered according to the changes in
the marketing dynamism and ever changing organisational structure and operational
performance of the organisations. As the market is no longer domestic because of various
trade liberation agreements and policies, strategic formulation and implementation should
be consistent with the global view, such as the international market, outsourcing, and IT.
Furthermore as mentioned by Skinner (2007), “In the 21st century enterprise environment
has become a service function”. The profile of service industries has also altered in view
of the emergence of globalisation, outsourcing, and IT. In fact, services account for
approximately 80% of the US gross domestic product (GDP), which is also a growing
figure of the GDPs of other countries around the world. Effective implementation of
evaluation instruments would help organisations in the service sector to meet the market
needs and specifically customers’ expectations.
Alongside with above mentioned factors, service quality is considered as one of the
main determinants of customer satisfaction and purchase intention (Kamble et al., 2011).
The existing literature on this area mainly focuses on the functional dimensions of service
quality and ignores its technical aspects (Carman, 1990; Cronin and Taylor, 1992;
Akroush, 2009). Additionally, most researches indicated that constant evaluation of
customers’ expectations and needs with different methods, helps the companies preserve
current customers and attract new customers and also reduces costs and increases
efficiency (Júnior et al., 2008; Zhu et al., 2011). Mainly researchers maintain that service
quality is the perception of the customer in an interaction with the service (Johansson,
2009). Considering different methods of service quality evaluation, in a review of twenty
years of SERVQUAL research, Ladhari (2009) indicated that despite the criticisms
against SERVQUAL, it remains a useful instrument for service quality research. He also
suggested that practitioners and researchers working in a particular service setting should
confirm the factor structure of the service quality to determine how many dimensions are
implicit in their own particular sample relative to their specific industry. Keeping this in
mind, we reviewed a number of studies (Sohal et al., 1999; Franceschini and Rafele,
2000; Mentzer et al., 2001; Bottani and Rizzi, 2006; Karpuzcu, 2006; So et al., 2006;
Júnior et al., 2008; Baki et al., 2009; Çakir et al., 2009; Taskin and Durmaz, 2010;
Singgih and Ardhiyani, 2010; Kamble et al., 2011; Kilibarda et al., 2012; Sze Yin Ho
et al., 2012; Thai, 2013; Bansal and Kumar, 2013) that have examined logistics service
quality (LSQ). The above mentioned studies have mainly considered logistics as a part of
the supply chain or have focused on logistics supplier selections according to
performance measures and have not evaluated the logistics company’s service quality in
the context of its own industry. Researches in other industries and contexts have shown
some problems in SERVQUAL dimensions and items (Dahiyat et al., 2011). Therefore,
the present study intends to assess the commonly used five standard SERVQUAL
dimensions and the most emerging dimensions of LSQ in customs logistics industry in
order to develop LSQ dimensions and then drawing on a case study assess the level of
service quality delivered in two branches of a company using gap analysis.
The rest of the paper is organised as follows: Section 2 is divided into two parts, first
part gives a brief review of SERVQUAL and the related notions, and the second part will
put forward literature on LSQ evaluation. Section 3 will discuss the methodology of the
research. In Section 4, the case study will be presented and finally Section 5 will put
forward the discussion and implications of the study.
An integration of SERVQUAL dimensions and logistics service 291

2 Literature review

2.1 Service quality and SERVQUAL


It is not easy to offer a comprehensive and exact definition of service quality, compared
to product quality. Gronoos defines service quality as the extent to which the customer’s
perceptions of service differ from his/her expectations (Otavio and Euriane, 2009).
Parasuraman et al. (1994) defined service quality as the sustainable compatibility with the
customers’ expectations and identification of his/her expectations of a certain service. In
a comprehensive study, Parasuraman et al. (1985) identified ten different dimensions for
service quality on which the customer’s judgments on service quality are based. These
dimensions include:

1 facilities and physical appearance of the provider

2 reliability of the offered service

3 willingness and eagerness of the personnel for being responsive to the customer

4 the skill and conversance of the personnel

5 courtesy of the personnel

6 honesty, secrecy and reliability of the personnel

7 security

8 availability of services

9 communication with customer

10 understanding the customer.

Then Parasuraman et al. (1988) developed and iterated the SERVQUAL method based on
two principles: they claimed that service quality can be divided into dimensions, and
measured as a difference of expectations and perceptions. Their model attempts to show
the effective activities of the service organisation that influence the perception of quality.
Moreover, the model shows the interaction between these activities and identifies the
linkages between the key activities of the service organisation or marketer which are
pertinent to the delivery of a satisfactory level of service quality. The links are described
as gaps or discrepancies: that is to say, a gap represents a significant obstacle to achieving
a satisfactory level of service quality (Shahin, 2004). Figure 1 shows service quality
assessment model developed by Parasuraman et al. (1988). The interaction between
service provider and service-buyer results in the formation of five basic gaps in the
process of high-quality service-provision. The main purpose of service quality
improvement is to minimise the fifth gap (quality gap) (Streeter and Selber, 2006).
292 R.A. Kahnali and A. Esmaeili

Figure 1 Service quality assessment (SERVQUAL) (see online version for colours)

Word of mouth Personal needs Past experience


communication

Expected service

Gap 5
Gap 6
Consumer Perceived service

Service Service delivery External


provider (including pre- and communications to
post- contacts) Gap 4 customers

Gap 3

Employee Translations of
Gap 1
perceptions of perceptions into
customers’ service quality
expectations specifications

Gap 2
Gap 7

Management
perceptions of
customers’
expectations

Source: Parasuraman et al. (1988)


After analysing and screening the mentioned criteria and standards again,
Parasuraman et al. (1988) summarised those ten dimensions (Parasuraman et al., 1985)
into five dimensions:

• Tangibles: The appearance of physical facilities and equipment, the personnel, and
the communication devices existing in service-providing places.

• Reliability: The ability to do and provide the promised services in an appropriate,


accurate and reliable manner; doing what is expected by the customer and this means
that the customer is provided with services on due time and in the way he/she was
promised and with no fault.

• Assurance: The knowledge and presence of mind as well as their ability to attract the
confidence of the customers.

• Empathy: Showing and paying special and empathetic attention to the customers.

• Responsiveness: The willingness to help the customer and to provide him/her with
instant services. Keeping the customers waiting, especially for no good reason, will
result in customer’s dissatisfaction and negative perception of service quality.

These five different dimensions of SERVQUAL, which are obtained by systematic


analyses of customers’ scores from several interviews on service industries, in fact show
An integration of SERVQUAL dimensions and logistics service 293

basic criteria and standards of the customers for evaluating the service quality. Therefore,
it seems logical that all of these dimensions are of remarkable significance to the
customers. For this purpose, in SERVQUAL model the customers are asked to express
the degree of significance of any of these dimensions by a score between 1 (totally
insignificance) and 5 (greatly significant) (Bakhtiari and Sohrabi, 2007).

2.2 Service quality in logistics

The aim of this study is to measure service quality in relatively un-researched area in the
service sector of the customs logistics services. Customs logistics services generally
include unloading, warehousing and loading of goods that employs services inside and
outside the organisation. The main interest of this study is to measure the quality of
service delivered to local and foreign exporters and importers, and therefore it requires
giving an overall review of the relevant literature. Besides, this study attempts to identify
the most emerging service quality dimensions in the logistics industry to broaden the
SERVQUAL scale as suggested by Ladhari (2009). Abdolvand and Taghipouryan (2011)
evaluated service quality of Iran’s customs services using Fuzzy MCDM approach. They
applied entropy method for calculating the criteria weights. Then, for evaluation of
service quality, they used fuzzy numbers on the basis of five dimensions of service
quality in SERVQUAL model that they called Fuzzy SERVQUAL. And finally, they
conducted technique for order preference by similarity to ideal solution (TOPSIS) to
achieve the final ranking results. They included generic dimensions of the SERVQUAL
scale and prioritised their importance respectively as follows: responsiveness, tangibles,
assurance, empathy and reliability. They proposed that these five dimensions can be
further analysed in this industry and specific dimensions can be identified according to
the type of service delivered.
In a review, Sohal et al. (1999) presented the results of three researches conducted in
three areas including North America, Europe and Australia concerning quality
management practices in the logistics function. They identified nine different dimensions
of quality in logistics that those studies included in their questionnaire and asked
respondents to select the three most important dimensions. Nine dimensions included:
total support of customer needs, on-time delivery, error free transaction, no out of stocks,
no goods damaged in handling and shipping, consistency of order cycle, reliable
suppliers, accurate inventory information, defined procedures and instructions. According
to the results of the 1991 North American/European study, respondents identified ‘total
support of customer needs (75%), on-time delivery (73%) and error free transactions
(45%) as the three most important components of quality in logistics’.
In another study conducted by Franceschini and Rafele (2000) traditional logistics
indicators were compared to service dimensions defined in the Berry et al. (1988). The
correspondence between logistic indicators and service dimensions according to that
research is shown in Table 1. Franceschini and Rafele (2000) concluded that in many
cases dimensions of the service quality play an important role in service quality
evaluation and thus future researches in logistics industry should take those dimensions
into account.
294 R.A. Kahnali and A. Esmaeili

Table 1 Correspondence between logistics indicators and service dimensions of


Parasuraman-Zeithaml-Berry

Tangibles Reliability Responsiveness Assurance Empathy


Lead time B - A - -
Regularity B - A - -
Reliability B A - - -
Completeness - A - B -
Flexibility - - A B -
Correctness - A - B -
Harmfulness B - - A -
Productivity A - - B -
Notes: A: strong relationship; B: weak relationship
Source: Adopted from Franceschini and Rafele (2000)
In a review of service quality models with the aim of evaluating different models in
service quality evaluation, Seth et al. (2005) concluded that the service quality outcome
and measurement depends on the factors such as type of service setting, situation, time,
need. In addition to this, even the customer’s expectations towards particular services are
changing with respect to factors like time, increase in the number of encounters with a
particular service, competitive environment, etc.
Baki et al. (2009) defined strengths and weaknesses of logistics services of a well
known cargo company in Turkey by using a service quality scale (SERVQUAL) and then
categorised service quality attributes using the Kano model in order to see how well these
attributes are able to satisfy customer needs, and at last findings were transferred to
quality function deployment (QFD). Through the customer priority level of QFD, the
three most important service quality attributes were found to be: VIP service, informing
customers about delivery time before sending, and taking deliveries from customers’
addresses. Their sample includes only individual customers instead of individual and
institutional customers together.
Kamble et al. (2011) aimed to validate a construct and measurement instrument for
LSQ in Indian logistics industry. In their study a second order model for LSQ was tested
for its validity. The various dimensions leading to LSQ included: information quality,
ordering procedures, order release quantities, timeliness, order accuracy, order quality,
order condition, order discrepancy handling and personal contact quality. Using a 25-item
instrument developed by Mentzer et al. (1999) contributed to develop a LSQ model in
Indian logistics industry.
Kilibarda et al. (2012) discussed in a research that existing models measure the
quality of logistics providers as an already perceived concept and then proposed that a
model can be designed that is capable of measuring LSQ during the phase of designing
and creating the logistics offering. The methodology proposed in their article is based on
the technique of multi-attribute decision-making (MADM) and includes three basic steps:
modelling and determination of the demands for quality of logistic services; creation of
the offering; and assessment of the degree of fulfilment of the customers’ demands based
on the quality of the logistics service offered. They argued that the proposed model
enables the logistics provider to create a wide spectrum of offerings which are based on
the users’ requirements investigation, to measure the service quality for each, and to
assess to what extent those offerings meet the users’ requirements and expectations.
Table 2
Study Country Type Respondents Data analysis Scale Final dimensions Reliability
Mentzer et al. USA Service quality - - - Availability, timeliness and quality -
(1989) outcomes
Mentzer et al. - Third party logistics - - - Personnel contact quality, order -
(1999) service evaluation release quantities, information
quality, ordering procedures, order
accuracy, order condition, order
quality, order discrepancy handling
and timeliness
Franceschini and Italy Logistic quality - Literature - Lead time, regularity, reliability,
Rafele (2000) indicators review completeness, flexibility, correctness,
harmfulness, productivity
Mentzer et al. USA Logistics service - Using SPSS Five-point Likert Personnel contact quality, order Reassessment
(2001) quality and K2 test release quantities, information
quality, ordering procedures, order
accuracy, order condition, order
quality, order discrepancy handling,
Summary of selected literature on LSQ

timelines
Banomyong and Thailand Selecting appropriate 129 Regression - Reliability, responsiveness, -
Supatn (2005) provider assurance, empathy, tangibility, cost
So et al. (2006) South Logistics service 4 Analytical Pairwise comparison, Reliability, assurance, tangibles, IR less than 1
Korea quality hierarchical five-point empathy, responsiveness
process questionnaire
Bottani and Italy Logistics service - QFD, HOQ, Pairwise comparison, Lead-time, regularity, reliability, -
Rizzi (2006) management FAHP seven-point completeness, flexibility, correctness,
questionnaire harmfulness, productivity
Karpuzcu (2006) Turkey Logistics service 100 Analytical Pairwise comparison, Reliability, assurance, tangibles, IR less than 1
An integration of SERVQUAL dimensions and logistics service

quality hierarchical five-point empathy, responsiveness, availability


process questionnaire
Chan et al. (2006) China Logistics evaluation 60 Analytical Pairwise comparison, Reliability, lead time, convenience, IR less than 1
hierarchical five-point flexibility, cost, return on assets,
process questionnaire relationship
295
296

Table 2
Study Country Type Respondents Data analysis Scale Final dimensions Reliability
Jamaludin (2006) Malaysia Quality evaluation of a - SWOT to - Performance, features, reliability, -
company identify CSFs conformance, technical durability,
serviceability, aesthetics, perceived
quality, humanity, value
Aguezzoul (2007) Turkey Evaluation of logistics - Literature - Price, reliability, service quality, on- -
companies review time performance, cost reduction,
flexibility and innovation, good
communication, speed of service
Júnior et al. (2008) Spain Evaluation of logistics 60 - - Support, reliability, performance, Cronbach’s
services (case study) availability alpha between
0.627 to 0.857
R.A. Kahnali and A. Esmaeili

Taskin and Turkey Logistics in creating 110 Multivariate - Reliability, assurance, tangibles, Cronbach’s
Durmaz (2010) customer value analysis empathy, responsiveness alpha 0.62
Kamble et al. India Validating a construct 154 logistics Confirmatory Five-point Likert Information quality, ordering Respectively:
(2011) and measurement managers of 3PL factor analysis ‘agree/disagree’ scale procedures, order release quantities, 0.702, 0.730,
instrument for logistics customer firms timeliness, order accuracy, order 0.829, 0.685,
service quality (LSQ) quality, order condition, order 0.705, 0.715,
discrepancy handling and personal 0.712, 0.737,
contact quality 0.789
Summary of selected literature on LSQ (continued)

Sze Yin Ho et al. Malaysia Determining the most 200 Multiple - Timeliness, condition/accuracy of -
(2012) effective dimension regression order, quality of information, and
analysis ‘availability/quality of personnel
Kilibarda et al. Serbia Designing a model for 140 Analytical - The completeness of the logistic -
(2012) evaluation of logistics hierarchical service, reliability of the logistic
service quality process service, time required for delivery of
goods, frequency of delivery,
delivery benefit and damaged goods.
Thai (2013) Singapore - - Inferential - Customer focus quality, order -
statistics fulfillment quality, corporate image,
(t-test) timelines and information quality
An integration of SERVQUAL dimensions and logistics service 297

Sze Yin Ho et al. (2012) used variables that included ‘timeliness’, ‘condition/accuracy of
order’, ‘quality of information’, and ‘availability/quality of personnel’ to determine the
most effective dimension in providing sound service quality to achieve customers’
satisfaction in the current market condition. The results revealed that ‘timeliness’ has
been replaced by ‘condition/accuracy of order’ as the courier services customers’ priority.
Thai (2013) aimed to explore the definition of the quality concept in logistics service
and associated dimensions concerning logistics. Using a survey analysis in Singapore’s
logistics providers, he utilised explanatory factor analysis and proposed a revised model
of top five dimensions (customer focus quality, order fulfilment quality, corporate image,
timelines, and information quality) in LSQ that included 20 items of LSQ. An overview
of the studies in service quality of the logistics industry is shown in Table 2 according to
which the most emerging dimensions of logistics were identified and added to
SERVQUAL model to shape this study’s assessment model. Also it is worthy of
mentioning that some researches in this area utilised SERVQUAL as the basis for their
analysis. These studies utilised SERVQUAL in order to measure LSQ in which the
authors needed to modify the tool and tailor it to fit into the specific needs of the
particular business (Bienstock et al., 1997; Mentzer et al., 1999; Stank et al., 1999;
Franceschini and Rafele, 2000; Karpuzcu, 2006; Júnior et al., 2008; Baki et al., 2009;
Kamble et al., 2011; Kilibarda et al., 2012; Sze Yin Ho et al., 2012; Bansal and Kumar,
2013; Thai, 2013). This study intends to fill this gap in an un-researched industry with
special characteristics that will be put forward in the next section as a real time case
study.

3 Research methodology

Considering its applied purpose and data collection method, this study is considered as a
descriptive and survey-based type. Since it intends to compare the level of service quality
in two branches of a company, the statistical population included all customers of the
company that have used both branches’ services. Considering the fact that the customers
of this company are tradesmen who export or import goods, the population were limited,
therefore the researchers tried to cover all customers of the company. First, customers
were asked if they have used both branches’ services, then if the answer was positive it
took 15 minutes to answer the questionnaire. To avoid wrong answers during that time,
the researchers were present and described all vague or unclear questions to the
customers. The samples included 20 customers. To collect the data, two questionnaires
were utilised, one of which included 41 items subcategorised under nine dimensions of
service quality: tangibles (questions 1–6), lead time (questions 7–10), availability
(questions 11–14), costs (questions 15–16), reliability (questions 17–21), flexibility
(22–26), assurance (27–30), empathy (31–35), responsiveness (36–41). Based on
five-option Likert scale where 1 indicates ‘totally insignificant’ and 5 indicates ‘very
significant’ these criteria were assessed for their importance. Cronbach’s α and
coefficient obtained for nine dimensions including tangibles, lead time, availability, costs,
reliability, flexibility, assurance, empathy, responsiveness, were 0.701, 0.741, 0.732,
0.730, 0.800, 0.823, 0.711, 0.726, 0.812, respectively. The second questionnaire was
designed with the same 41 criteria to compare the level of the service provided in two
branches of the company. Both questionnaires are included in Appendix.
298 R.A. Kahnali and A. Esmaeili

To analyse the data, the statistical software of SPSS19 was used. Since due to the
limitation of the population (20 customers available) the homogeneity of the data could
not be tested, the non-parametric Wilcoxon test was used to analyse the difference
between expected service level and perceived levels of the services of the company, and
also Mann Whitney U test was used to compare the difference between the service levels
of the two branches of the company with regard to nine service quality dimensions.

4 Sample data collection

Iran is the mere overland road connecting central and middle Asia countries, as well as
Indian subcontinent to Turkey, Iraq, the Arabian Peninsula, and European countries.
Regarding Iran’s logistical advantages in this region, it seems necessary to have an exact
look at logistics services provided in this country. For this reason one of the main
logistics companies have been chosen to meet the aim of the study. Iran Public
Warehouses and Customs Services Company (IPWCS) enjoys 50 years of experiences in
carrying out all operations related to warehousing, unloading, loading, as well as
safeguarding of the commodities. Based on its organisational policies, IPWCS provides
the services related to warehouses in 17 branches including Gharb Complex, Shahriar,
Imam Khomeini International Airport, Bandar-e-Lengeh, Sahlan, Jolfa, Bazargan, Urmia,
Astara, Mashhad, Yazd, Hamadan, Semnan, Shahr-e-Kord, Qazvin, Alborz , as well as
Isfahan.

4.1 Customs services provided by IPWCS


Since 1974, IPWCS, as one of the few partners of Iran’s custom, is in charge of measures
such as warehousing, unloading, loading, and safeguarding of goods in the framework of
customs and trade procedures including imports, exports, cabotage, foreign and domestic
transits.

4.2 Non-customs services provided by IPWCS


IPWCS has allocated several warehouses in some of the branches and subsidiaries such
as Gharb Complex, Shahriar, Sahlan and Yazd to non-customs section, thus by inking the
contracts, the warehouses can be rented. On this basis, the development of non-customs
warehouses, as well as providing related services has always been a priority of the
company.
This study aims to analyse the services provided by two of this company’s branches,
Sahlan and Jolfa. Sahlan Complex is located at 15 kilometres of Tabriz City, in
Iran-Europe and Iran-Central Asia transit corridors. Likewise, with an access to Tabriz
international airport, the complex has an exclusive railroad line to the warehouses’
loading and unloading platforms. Jolfa complex started operations in 1975. Its premium
location at Border and Customs of Jolfa, has secured a relatively high volume of handling
of customs cargoes. Jolfa branch is considered to be one of the most strategic customs
offices, especially for railway cargoes, of the country.
An integration of SERVQUAL dimensions and logistics service 299

5 Findings and discussion and results

5.1 Findings
The aim of this study was to assess the commonly used five standard SERVQUAL
dimensions and the most emerging dimensions of LSQ in customs logistics industry to
develop LSQ dimensions. The descriptive data indicated that 100% of the respondents
were male and the highest percentage (40%) were between the ages of 30–39, 13.3% of
the respondents held high school diplomas, 20% associate degree, 46.7% bachelor and
20% master’s degree and higher. Analyses of all the dimensions of service quality in
Sahlan branch are shown in Table 3. According to the results in Sahlan branch the highest
score for the expected service quality goes to timelines with an average score of 4.750
and standard deviation of 0.250 and the lowest score (4.233) goes to costs with a standard
deviation of 0.457. Perceived service quality results showed that the highest average
score goes to timelines (3.883) and the lowest score goes to costs (2.466). The biggest
gap within the expected and perceived service quality is shown in costs (–1.767) and the
smallest gap is shown in reliability (–0.88).
Table 3 The results of descriptive analysis for Sahlan

Service quality Expected Perceived Sahlan gap


dimensions Mean S-deviation Mean S-deviation (exp-per)
Tangibles 4.455 0.231 3.077 0.280 –1.378
Timelines 4.750 0.250 3.883 0.351 –0.867
Availability 4.633 0.247 3.583 0.572 –1.0
Costs 4.233 0.457 2.466 0.480 –1.767
Reliability 4.680 0.224 3.80 0.400 –0.88
Flexibility 4.626 0.212 3.493 0.291 –1.133
Assurance 4.683 0.199 3.666 0.224 –1.017
Empathy 4.586 0.159 3.613 0.552 –0.973
Responsiveness 4.655 0.247 3.811 0.860 –0.844

Table 4 The results of descriptive analysis for Jolfa

Service quality Expected Perceived Jolfa gap


dimensions Mean S-deviation Mean S-deviation (exp-per)
Tangibles 4.455 0.231 3.177 0.231 –1.278
Timelines 4.750 0.250 3.616 0.148 –1.134
Availability 4.633 0.247 3.483 0.220 –1.15
Costs 4.233 0.457 2.733 0.457 –1.44
Reliability 4.680 0.224 3.493 0.291 –1.187
Flexibility 4.626 0.212 3.000 0.302 –1.626
Assurance 4.683 0.199 3.216 0.296 –1.467
Empathy 4.586 0.159 3.213 0.232 –1.373
Responsiveness 4.655 0.247 3.400 0.234 –1.255
300 R.A. Kahnali and A. Esmaeili

The results of the descriptive analysis of all the dimensions of service quality in Jolfa
branch are shown in Table 4. According to the results in perceived service quality highest
average score goes to timelines (3.616) and the lowest score goes to costs (2.733). The
biggest gap within the expected and perceived service quality is shown in costs (–1.626)
and the smallest gap is shown in timelines (–1.134).
Wilcoxon test was used to analyse the difference between the expectations of the
customers and their perceptions of service quality for the dimensions under investigation
in the organisation. The null hypothesis for all of the dimensions is stated as follows:
H0 There is no significant difference between expectation and perception of service
quality in all dimensions.
The results of the Wilcoxon test for both branches are shown in Table 5. As P < 0.05 for
all tests, it seems that there is a significant difference between the expectation of the
customers and their perceptions of the dimensions of tangibles, timelines, availability,
costs, reliability, flexibility, assurance, empathy, responsiveness.
Table 5 Wilcoxon test for both branches

Statistical value of the tests


Service quality dimensions P-value
Jolfa Sahlan
Tangibles (expectations – perceptions) –3.429 –3.419 0
Timelines (expectations – perceptions) –3.436 –3.320 0
Availability (expectations – perceptions) –3.443 –3.375 0
Costs (expectations – perceptions) –3.432 –3.434 0
Reliability (expectations – perceptions) –3.426 –3.420 0
Flexibility (expectations – perceptions) –3.425 –3.419 0
Assurance (expectations – perceptions) –3.438 –3.426 0
Empathy (expectations – perceptions) –3.429 –3.324 0
Responsiveness (expectations – perceptions) –3.415 –3.428 0

Mann Withney U test was used to compare these two branches in each of the service
quality dimensions according to the perceptions of the customers. Null hypothesis for all
dimensions is stated as follows:
H0 There is no significant difference between the two branches in service quality
dimensions.
The results showed that in some of the dimensions P > 0.05,hence it can be stated that
intangibles, availability, costs, reliability, and empathy H0 is rejected and there is no
difference between the two branches with regard to these dimensions. But in some
dimensions (timelines, flexibility, assurance and responsiveness) P < 0.05, so H0 is
accepted and there is a significant difference between the two branches with regard to
these dimensions (Table 6).
An integration of SERVQUAL dimensions and logistics service 301

Table 6 Mann Withney U test for both branches

Service quality dimensions Mean S-deviation Minimum Maximum P-value


Tangibles 3.1278 0.25777 2.67 3.67 0.237
Timelines 3.6000 0.39172 3.25 4.50 0.000
Availability 3.5333 0.42918 3.00 5.25 0.913
Costs 2.6000 0.48066 2.00 3.50 0.118
Reliability 3.6467 0.37759 3.00 4.40 0.053
Flexibility 3.2467 0.38483 2.40 4.00 0.000
Assurance 3.4417 0.34543 2.50 4.00 0.000
Empathy 3.4133 0.46367 2.80 4.40 0.092
Responsiveness 3.6056 0.27152 2.83 4.00 0.000

5.2 Discussion
This research aimed to bring together SERVQUAL dimensions and the most emerging
LSQ dimensions to broaden the assessment scale of service quality in this logistics
industry. To achieve such an aim, the authors reviewed the literature on LSQ indicators
and identified dimensions concerning service quality evaluation in customs logistics
services and accordingly they modelled their own scale based on gap analysis of
SERVQUAL. They identified nine dimensions (tangibles, timelines, availability, costs,
reliability, flexibility, assurance, empathy, and responsiveness) in Iran’s customs logistics
industry. Drawing on a real case study, this study attempted to examine the quality of
service provided to the customers in two branches of a logistics company. At an error
level of 5%, the results of the tests revealed that the expectations and perceptions of the
customers did not match in all dimensions. This indicates that there exists dissatisfaction
with the level of the quality of the services provided by both branches of the company.
When investigating the opinions of the customers regarding the importance of the
dimensions of the service quality, it was revealed that tangibles was the most significant
dimension followed by availability, flexibility, assurance, empathy, responsiveness,
reliability, costs and timelines, respectively. The most important dimension reflects the
appearance of physical facilities and equipment, the personnel, and the communication
devices existing in service-providing places.
Referring to Zeithaml et al. (1996), the dimensions of responsiveness, assurance and
empathy were placed after reliability. They concluded that regardless of the kind of
services provided to the customers, reliability is considered as the most significant aspect
in providing customers with the services. On the other hand, the organisational facilities
and appearance were the least significant dimensions compared to other dimensions of
quality. The main difference between the results of this research and the research done by
Zeithaml et al. (1996) can be traced back to the nature of the services provided in this
industry.
302 R.A. Kahnali and A. Esmaeili

5.3 Results and final comments


As mentioned earlier, Ladhari (2009) indicated that despite the criticisms against
SERVQUAL, it remains a useful instrument for service quality research. He also
suggested that practitioners and researchers working in a particular service setting should
confirm the factor structure of the service quality to determine how many dimensions are
implicit in their own particular sample relative to their specific industry. In customs
logistics services Abdolvand and Taghipouryan (2011) have prioritised five generic
dimensions of the customs services as follows: responsiveness, tangibles, assurance,
empathy and reliability that mostly matches the results obtained in this research and
verifies the different nature of the service quality in this industry. In their research,
Taskin and Durmaz (2010) concluded that apart from the priority of the dimensions of the
service quality, in every study concerning service quality, these dimensions should be
prioritised accordingly. Practical implications of this study for the management of the
company can be reconsideration of the strategies in delivering services. Also keeping in
mind that all dimensions of service quality cannot be improved together due to the
limitation in budget and time, the managers of the company should consider the most
important dimensions to be improved at first hand. Further researches are needed in this
industry to prioritise service quality dimensions using decision making methods like
fuzzy approaches integrated with AHP. Also the QFD can be of great help to the
companies as well as the future researches. Further, the literature review reveals that no
study has addressed TQM and service quality issues collectively for service industries. In
the light of these facts, future researches can be channelled to identify the TQM practices
that are critical to the support of service quality in different types of service industries.

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An integration of SERVQUAL dimensions and logistics service 305

Appendix
Quality dimensions
Perceptions Expectations
and sub-dimensions

insignificant

insignificant

insignificant

insignificant
Moderately

Moderately

Moderately

Moderately
significant

significant

significant

significant
Average

Average
Totally

Totally
Very

Very
Tangibles

Modern-looking equipment
The staffs appear neat
The organisation has
modern facilities
Easy transportation ways
inside the organisation
Enough IT services
inside organisation.
Enough and convenient space
inside the organisation to rest
insignificant

insignificant

insignificant

insignificant
Moderately

Moderately

Moderately

Moderately
significant

significant

significant

significant
Average

Average
Totally

Totally
Very

Very

Timelines

Adequate customer
response time
Convenient processing time
Timelines according to what
organisation promises are met
Time between placing
requisition and receiving
delivery is short
insignificant

insignificant

insignificant

insignificant
Moderately

Moderately

Moderately

Moderately
significant

significant

significant

significant
Average

Average
Totally

Totally
Very

Very

Availability

Difficulties never occur due to


minimum release quantities
Service processes are adequate
and easy to use
Service processes are always
accessible for customers
Difficulties never occur due to
maximum release quantities
306 R.A. Kahnali and A. Esmaeili

Appendix (continued)
Quality dimensions
Perceptions Expectations
and sub-dimensions

insignificant

insignificant

insignificant

insignificant
Moderately

Moderately

Moderately

Moderately
significant

significant

significant

significant
Average

Average
Totally

Totally
Very

Very
Costs

Acceptable payment conditions


There are no extra costs
(tips, exit tips for divers …)
for customers
insignificant

insignificant

insignificant

insignificant
Moderately

Moderately

Moderately

Moderately
significant

significant

significant

significant
Average

Average
Totally

Totally
Very

Very
Reliability

When the organisation promises


to do something, it did it
The organisation performs the
service right the first time
When you have problems,
the custom shows a genuine
interest in solving them
The custom provides its services
at the time it promise to do so
The custom insists on
error-free service
insignificant

insignificant

insignificant

insignificant
Moderately

Moderately

Moderately

Moderately
significant

significant

significant

significant
Average

Average
Totally

Totally
Very

Very

Flexibility

Flexibility and ease in order


placement procedures
Response to requests
are treated flexibly
Flexibility and ease in
payment methods
The report of discrepancy
process is adequate
Staff are flexible enough to
take the initiative in
emergency situations
An integration of SERVQUAL dimensions and logistics service 307

Appendix (continued)
Quality dimensions
Perceptions Expectations
and sub-dimensions

insignificant

insignificant

insignificant

insignificant
Moderately

Moderately

Moderately

Moderately
significant

significant

significant

significant
Average

Average
Totally

Totally
Very

Very
Assurance

The behaviour of staff


instils confidence in you
Staffs of the custom are
consistently courteous with you
You feel safe in the
delivery of service
Response to quality discrepancy
reports is satisfactory
insignificant

insignificant

insignificant

insignificant
Moderately

Moderately

Moderately

Moderately
significant

significant

significant

significant
Average

Average
Totally

Totally
Very

Very
Empathy

The organisation gives


you individual attention
The staffs give you
personal attention
The staffs understand
your specific needs
The staffs have the knowledge
to answer your question
Convenient opening
hours to all its clients
insignificant

insignificant

insignificant

insignificant
Moderately

Moderately

Moderately

Moderately
significant

significant

significant

significant
Average

Average
Totally

Totally
Very

Very

Responsiveness

Staffs tell you exactly when


services will be performed
Staffs give you prompt service
Staffs are never too busy to
respond to your request
Delivery of orders
regardless of amount
Responding to unexpected/
urgent orders
Willingness to help customers
308 R.A. Kahnali and A. Esmaeili

Appendix (continued)
Sahlan Jolfa

Moderately high

Moderately high
Moderately low

Moderately low
Very high

Very high
Very low

Very low
Average

Average
Sub-dimensions

1 Modern-looking equipment
2 The staffs appear neat
3 The organisation has modern facilities
4 Easy transportation ways inside the
organisation
5 Enough IT services inside organisation.
6 Enough and convenient space inside the
organisation to rest
7 Adequate customer response time
8 Convenient processing time
9 Timelines according to what organisation
promises are met
10 Time between placing requisition and
receiving delivery is short
11 Difficulties never occur due to minimum
release quantities
12 Service processes are adequate and easy
to use
13 Service processes are always accessible
for customers
14 Difficulties never occur due to maximum
release quantities
15 Acceptable payment conditions
16 There are no extra costs (tips, exit tips
for divers …) for customers
17 When the organisation promises to do
something, it did it
18 The organisation performs the service
right the first time
19 When you have problems, the custom
shows a genuine interest in solving them
20 The custom provides its services at the
time it promise to do so
21 The custom insists on error-free service
22 Flexibility and ease in order placement
procedures
An integration of SERVQUAL dimensions and logistics service 309

Appendix (continued)
Sahlan Jolfa

Moderately high

Moderately high
Moderately low

Moderately low
Very high

Very high
Very low

Very low
Average

Average
Sub-dimensions

23 Response to requests are treated flexibly


24 Flexibility and ease in payment methods
25 The report of discrepancy process is
adequate
26 Staff are flexible enough to take the
initiative in emergency situations
27 The behaviour of staff instils confidence
in you
28 Staffs of the custom are consistently
courteous with you
29 You feel safe in the delivery of service
30 Response to quality discrepancy reports
is satisfactory
31 The organisation gives you individual
attention
32 The staffs give you personal attention
33 The staffs understand your specific needs
34 The staffs have the knowledge to answer
your question
35 Convenient opening hours to all its
clients
36 Staffs tell you exactly when services will
be performed
37 Staffs give you prompt service
38 Staffs are never too busy to respond to
your request
39 Delivery of orders regardless of amount
40 Responding to unexpected/urgent orders
41 Willingness to help customers

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