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An Integration of SERVQUAL Dimensions and Logistics Service Quality Indicators (A Case Study)
An Integration of SERVQUAL Dimensions and Logistics Service Quality Indicators (A Case Study)
An Integration of SERVQUAL Dimensions and Logistics Service Quality Indicators (A Case Study)
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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.
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
3 willingness and eagerness of the personnel for being responsive to the customer
7 security
8 availability of services
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)
Expected service
Gap 5
Gap 6
Consumer Perceived service
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
• Tangibles: The appearance of physical facilities and equipment, the personnel, and
the communication devices existing in service-providing places.
• 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.
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).
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
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
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.
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.
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
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
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
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
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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
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
insignificant
insignificant
insignificant
Moderately
Moderately
Moderately
Moderately
significant
significant
significant
significant
Average
Average
Totally
Totally
Very
Very
Reliability
insignificant
insignificant
insignificant
Moderately
Moderately
Moderately
Moderately
significant
significant
significant
significant
Average
Average
Totally
Totally
Very
Very
Flexibility
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
insignificant
insignificant
insignificant
Moderately
Moderately
Moderately
Moderately
significant
significant
significant
significant
Average
Average
Totally
Totally
Very
Very
Empathy
insignificant
insignificant
insignificant
Moderately
Moderately
Moderately
Moderately
significant
significant
significant
significant
Average
Average
Totally
Totally
Very
Very
Responsiveness
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