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A Comparative Study of Service Quality and Outpatient Satisfaction

between Public and Private Hospitals in Bangkok, Thailand

Korpsiri Khunwuthikorn
Master’s Degree Student, Assumption University

Abstract
Service quality has been studied by many researchers for over two decades. To be
successful in service sector, the firms should pay attention on delivering a high service quality in
order to gain customer satisfaction. This research compares service quality dimensions and
customer satisfaction between the public and private hospitals. Furthermore, this study was
conducted to find the relationship between service quality dimensions and customer satisfaction
in the public and private hospitals. In order to measure service quality dimensions and customer
satisfaction, this research surveyed 400 respondents who are outpatients of the hospitals (200
from the public hospital and 200 from the private hospital). The questionnaire was distributed to
the respondents at the internal medicine unit in the outpatient department of both hospitals. It
comprised questions about demographic factors, perception of service quality dimensions
(infrastructure, personnel quality, process of clinical care, administrative procedures, safety
indicators, hospital image, social responsibility, and trustworthiness of hospital) and customer
satisfaction. The data of this study were analyzed by applying a statistical package to test all
hypotheses. The result of this study indicated significant differences in service quality dimensions
and customer satisfaction between both hospitals. The result shown that the service quality
dimensions of private hospital and customer satisfaction mean scores were higher than those of
the public hospital. Moreover, the study found a significant relationship between the service
quality dimensions and customer satisfaction of both hospitals. Therefore, the management of
the hospitals should develop strategies in order to provide high service quality to serve and to
satisfy all patients.

Keywords: Service Quality, Customer Satisfaction, Healthcare Service Quality

1. Introduction
Recently, the service sector plays a considerable role in current economic situation
(Olorunniwo et al., 2006) and grows rapidly all over the world. Service quality has been
considered as an interesting subject in terms of practical and study (Caruana et el., 2002) and
also recognized as the main part of services, creating competitive advantage (Rashid & Jusoff,

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2009). Moreover, delivering of the high level of service quality is the strategy which is a key to
position the firm more effectively in the marketplace. Thus, delivering better service quality is
considered as a requirement for achievement, which leads to gaining highly profitability and
customer satisfaction (Parasuraman et al., 1988; Cronin and Taylor, 1992; Padma et al., 2009;
Rashid & Jusoff, 2009).
Besides, the aim of any business is to satisfy customers’ needs, resulting in customer
satisfaction (Padma et al., 2009). Customer satisfaction is crucial inputs in the development of
marketing strategy (Ofir & Simonson, 2001) and represents as a profitable competitive strategy
variable (Andaleeb, 1998) important to a customer-oriented concern for firms that operate in
various markets (Szymanski & Henard, 2001). Furthermore, customer satisfaction directly affects a
firm's profits and overall performance which has shown as a crucial strategy for most of the
business. Hence, it is essential for service providers to comprehend the relevant service quality
dimensions in their industry that could create positive customer satisfaction evaluation
(Olorunniwo, Hsu & Udo, 2006). Besides, customer satisfaction cannot be underestimated, if the
firm can satisfy customers, it will be the big treasure for the company.
Healthcare is a highly competitive sector in global market (Jabnoun & Chaker, 2003); it is
one of the fastest growing industries in the service sector. The rapid growth of the healthcare
sector has been accompanied by other dramatic changes. These changes have begun to show
significant pressures on healthcare providers, which are changing in education and standards of
living, competitive urge, medical advancement, monitoring by public and private groups, growth
of information availability, changing in cost structures and better-informed customers (Lim and
Tang, 2000).
The health service in Thailand have continuously developed through the Health
Development Plan in terms of capacity building for health services in order to improve and keep
providing excellent facilities, human resources, and medical equipment and technology which
has resulted in the increasing competition in health service sector (Ministry of Public Health,
2009). Hence, healthcare providers have to develop and improve their own services to fit
situations and trends of health to respond to medical advancement and technology, changing in
education, health behavior, standards of living (quality of life) and health policy. Moreover, the
hospital service providers should pay attention to provide excellent service to satisfy customers
while service is being delivered. Thus, it is essential for the providers to fully understand a
patient’s need. Measuring and evaluating patient perceived service quality; realizing patient
satisfaction helps to attain what customers need. The hospitals in Thailand have continuously
developed their own capacity for health services, and mainly the increases in health resources:
human resources for health, expansion of healthcare facilities, medical equipment and
technology, and health financing. Hence, this study focuses only on private and public hospitals

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which are potential providers of healthcare service in Thailand. This study is aimed at studying
the difference in service quality dimensions and customer satisfaction between public and
private hospitals. Also, it was aimed at finding relationship of service quality dimensions and
customer satisfaction of public and private hospitals in Bangkok.

2. Literature Review
2.1 Service quality
Since healthcare has unique nature, the researcher decided to apply a conceptual
framework of service quality in healthcare by Padma et al. (2009). The researchers developed
and tested perceived service quality (SERVPERF) among customer using service at hospitals and
healthcare institutions, based on the original service quality literature (SERVQUAL). In this study
the researcher divided healthcare service quality into eight dimensions: infrastructure, personnel
quality, process of clinical care, administrative procedures, safety indicators, corporate image,
social responsibility, and trustworthiness of hospital.

Infrastructure
Infrastructure refers to the tangible features of a service delivery including equipment,
appearance of the facility and firm, availability of resource, physical environment and also
sanitary facilities. Because services are intangible, customers evaluate services quality based on
the tangible aspects of service. Hence, technology capability of a hospital was treated as a part
of a hospital infrastructure (Padma et al., 2009). Several studies have endeavored to study the
importance of the physical facilities, infrastructure or tangibles, in service delivery. Parasuraman
et al. (1985) considered “tangibles” as a dimension of service quality in SERVQUAL model.
Reidenbach and Smallwood (1990) also confirmed “physical surroundings” as a dimension of
service quality in hospital operations to denote the physical facilities. Moreover, Sureshchandar
et al. (2002a) indicated tangible of service (servicescapes) as a service quality dimension in the
studied of retail banking. Also, Olorunniwo et al. (2006) used “tangible” to be an essential
component of service delivery. Besides, Otani and Kurz (2004) used “pleasantness of
surroundings” to represent the physical facilities and atmosphere. JCI Accreditation (2007) also
considered “facilities management” as a key function in hospitals. Furthermore, Duggirala et al.
(2008) verified infrastructure as a critical factor of customer-perceive service quality on the study
in healthcare.

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Personnel quality
Personnel quality refers to the quality of all personnel involved during service delivery
which consist of all interactions or communication among service personnel and customers.
Customers expect responsiveness, reliability, friendliness, sincerity and competent from a
provider. Moreover, the interaction involves moments of truth, critical incidents and service
recovery (Padma et al., 2009). The interaction between providers and customer needs is a unique
characteristic to keep in mind for assessing the client’s views on the service quality (Duggirala
et al., 2008). In the study of Parasuraman et al. (1985), assurance, empathy and responsiveness
dimensions were used to indicate the quality of personnel. Andaleeb (1998) identified three of
the five dimensions namely “competence of staff”, “demeanour” and “communication” related
to patient-staff interaction, which are the important factors of client’s relationship with hospital
crew. Furthermore, friendly and courteous staffs who are doctors, nurses, paramedical and
support staff tend to increase or improve patients’ perception of the hospital. Thus, Hasin et al.
(2001) applied “courtesy” and “respect and caring” to represent personnel quality as quality
characteristics in their research on healthcare in Thailand. Issac et al. (2003) also identified
employee competence and client focus as a software quality from a customer’s perspective.
Additionally, Sohail and Shaik (2004) indicated contact personnel as one of service quality factors
of business schools in the Middle East.

Process of clinical care


Process of clinical care is a core service or technical quality of healthcare service that
enumerates the detail of a primary service including the width and depth of services (Padma et
al., 2009). The dimension is necessary and directly affects customer perception in hospital’s
service; the hospital has to create high quality on this aspect including skill and ability of staff.
The customer will not perceive or pay attention to any other dimensions unless the process of
clinical care was satisfactory. Even the hospital staffs are perfectly friendly; the service may not
be perceived as high quality if the doctor lacks of the necessary competence and skill. Gronroos
(1982) stated that essential component of service quality was “technical quality”. In addition,
Rohini and Mahadevappa (2006) mentioned that the technical quality aspect of service is also
arduous to evaluate as patients lack of the technical knowledge to evaluate the quality of
treatment. Furthermore, Baldwin and Sohal (2003) contained safety, reliability, technical ability
and skills of dental practitioners as “skill and ability” dimension.

Administrative procedures
Administrative procedure of hospital includes the processes of admission, stay in the
hospital and the procedures involved in the exit and discharge of patients (Duggirala et al., 2008).

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Thus, patients are unpleasant with the long waiting time along with every process in hospital
including diagnosis procedure, treatment procedure, appointments procedure, ambulance
services, simplicity of admission and discharge (Padma et al., 2009). Therefore, service delivery
processes should be standardized, and simplified so that clients can receive the hassles-free or
desired service (Sureshchandar et al., 2002a). During the hospitalization, employees should reveal
that they care for the customer. Moreover, all staff should be scrupulous in protecting and
enhancing reputation of the hospital, welcome, facilitate and help customers to gain confidence
and to ensure that patients feel safe during the hospitalization (Boshoff and Gray, 2004). Besides,
the delay at different stages of the hospitalization is concerned as an important issue. Many
studies in the service sector have shown that perceived unreasonable or unnecessary delays
from the customers could result in not just dissatisfaction, but also anger (Duggirala et al., 2008).
Thus, the administrative procedures are required to ensure that the customer will be pleasant to
stay in the hospital.

Safety indicators
The safety is critical as it relates to the survival concerns, which are basic individuals’
needs and which impact a customer’s psychological condition. Providers should make sure that
staff and customers feel safe and secure. Otherwise a service firm will lose everything if the firm
fails to make the customers feel safe (Padma et al., 2009). Therefore, firms must provide
customers with basic necessities including safety. Poon and Low (2005) indicated “safety and
security” as a crucial factor of service quality in Malaysian hotel. A hospital has to set safety as
critical issues in order to provide a good service because clients visit hospitals to improve health
status which relate to the quality of life. Rule of ramps, elevators, escalator and drug checking
have to be taken by the hospital to prevent any crisis and enable a comfortable stay for patients
(Padma et al., 2009). Moreover, the safety of customers who have special needs, such as senior
citizen and physically challenged people, has to be concerned. Therefore, Duggirala et al. (2008)
identified “safety indicators” as a dimension of service quality.

Hospital image
Corporate image is defined as perceptions of a firm reflected in consumer memory and it
impacts perceptions of quality (Keller, 1993). The role of “image” has been conceptualization as
a filter in the perception of service quality in addition to the technical and functional quality
dimensions (Gronroos, 1990). Hong and Goo (2004) found that appreciate “corporate image” of a
service firm influenced customer satisfaction. The corporate image also plays an essential role for
customer expectation and it is important for making realistic expectations. Negative image may
easily increase perceived problems with service quality. Moreover, the bad image will become

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more unfavorable. Thus, the reputation of hospital has to be considered as a component of
service quality in healthcare services.

Social responsibility
Social responsibility and contribution are hospital responding to society, in terms of fair
medical treatment to all sections of society, reasonable cost of medical service, free of medical
services charge to the needy, or at nominal costs, maintaining privacy, and ethical principles of
the hospital (Duggirala et al., 2008). Chiu and Lin (2004) mentioned that customers might perceive
higher service quality if the firm satisfied clients’ self-actualization. Customer might be willing to
visit a firm when the patronize realizes that the firm is involved in a social cause including charity
work, and promoting environmental awareness (Padma et al., 2009). Sureshchandar et al. (2002a)
also asserted that an organization which revealed social responsibility would be revered and
valued by customers. Duggirala et al. (2008) also emphasized on “Social Responsibility” in the
study on Indian healthcare service, and also mentioned that the responsibility to society is to
perform as a facilitator of social welfare and growth. Thus, a firm cannot be concerned only
about the profitability but also about the society. The social responsibility program of a firm will
boost the hospital’s image and thereby improve patients’ perceptions of service quality

Trustworthiness of hospital
The trustworthiness of hospital influences the confidence the patient has on the hospital
which measured by the sense of customer’s well-being feeling in the overall of service provided.
Trust captures the level of trust patient reposes in hospital in the expectation that the firm will
act in the customer's best care. Balasubramanian et al. (2003) considered “perceived
trustworthiness” as a component of online service which affects customer satisfaction. Moreover,
Parasuraman et al. (1985) and Sureshchandar et al. (2002a) indicated that ability to provide
service as promised or reliability is a necessary aspect of service delivery. Iyer and Muncy (2004)
mentioned that trust of patients was varied across patient categories and segmented the
customers based on the level of trust on the service provider. Furthermore, Morgan and Hunt
(1994) defined trust as existing when confidence occurs in a partner’s reliability and integrity.

2.2 Customer satisfaction


Customer satisfaction is defined in sundry way. Jamal and Naser (2002) defined customer
satisfaction as a customer’s feeling or attitude toward a product or service after consuming.
Ranaweera (2003) also conceptualized customer satisfaction as an evaluation of a customer’s
emotional; reflecting believes which involved the positive feeling. Moreover, Spreng et al. (1996)

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indicated that customer satisfaction is “an affective state that is the emotional reaction to a
product or service experience.
On this study, the researcher measured customer satisfaction as an overall feeling
toward a service after consuming based on an evaluation and emotion-based response to a
service and defined customer satisfaction as an evaluation of an emotion, revealing the degree to
which a customer believes the service provider inducing a positive feeling (Rust and Oliver , 1994;
Cronin et al., 2000). The concepts of Ranaweera (2003), Olorunniwo, Hsu, and Udo (2006) and
Molinari et al. (2008) were applied to measure customer satisfaction by using the items that
include satisfaction, superior quality, enjoyment, wise choice, and made the right decision with
some modification.

3. Objectives
The objectives of research are separated into 4 groups as follows:
Part 1: To analyze the relationship between service quality dimensions and customer
satisfaction of public hospital (H1-H8).
Part 2: To analyze the relationship between service quality dimensions and customer
satisfaction of private hospital (H9-H16).
Part 3: To compare service quality dimensions between the public and private hospitals
(H17-H24).
Part 4: To compare customer satisfaction between the public and private hospitals (H25).

4. Research Questions
Part 1: Are there any relationship between service quality dimensions and customer
satisfaction of the public hospital?
Part 2: Are there any relationship between service quality dimensions and customer
satisfaction of the private hospital?
Part 3: Are there any difference in service quality dimensions between the public and
private hospital?
Part 4: Is there any difference in customer satisfaction between the public and private
hospital?

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5. Conceptual Framework

SERVICE QUALITY DIMENSIONS SERVICE QUALITY DIMENSIONS


OF PUBLIC HOSPITAL OF PRIVATE HOSPITAL

H1 H17 H9
Infrastructure Infrastructure

H2 H18 H10
Personnel Quality Personnel Quality

H3 H19 H11
Process of Clinical Care Process of Clinical Care

H4 H20 H12
Administrative Procedures Administrative Procedures

H5 H21 H13
Safety Indicators Safety Indicators

H6 H22 H14
Hospital Image Hospital Image

H7 Social Responsibility H23 Social Responsibility H15

H8 H24 H16
Trustworthiness of Hospital Trustworthiness of Hospital

H25
CUSTOMER SATISFACTION CUSTOMER SATISFACTION

Figure 1: The modified conceptual framework of service quality and customer satisfaction
between public and private hospital

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6. Research Methodology
6.1 Respondents and Sampling Procedures
This research is categorized as a descriptive research aimed at studying the relationship
between customer satisfactions, and service quality. Also, this research is aimed at comparing
service quality dimensions and customer satisfaction towards the private hospital and the public
hospital. In this research, the researcher used the survey technique to collect the primary data.
The sampling procedures comprise of judgment or purposive sampling, quota sampling,
and convenience sampling. Judgment or purposive sampling was applied to select groups of
respondents. For public hospital, the researcher focuses on Medical school hospitals. The
research selected the first rank of the public hospital from the Faculty of Medicine’s hospital in
Thailand base on number of bed which is Siriraj Hospital. For private hospital, the researcher
listed private hospital public company limited which registered at the Stock Exchange of Thailand
(SET) and ranked the hospital base on the number of registered bed. The researcher selected the
first ranked which is Bangkok Hospital.
For quota sampling, the researcher calculated the number of respondents for each
hospital by dividing number of hospitals (400 ÷ 2). There are to 200 respondents for each
hospital.
The convenient sampling is quickly obtained the large target at low cost. In this research,
the questionnaires were distributed to outpatients that are available at general medicine unit,
out-patient department at those two hospitals to answer the questions. The data was collected
on January 2011 to February 2011.

6.2 Data Analysis


In this study, the primary data were collected by distributing the questionnaires to 200
customers of the public hospital and 200 clients of the private hospital. The self-administered
questionnaires were gathered from the out-patient who had used the service at Siriraj Hospital
and/or Bangkok Hospital, Bangkok, Thailand. The data collected at the out-patient department of
each hospital January to February 2011. The secondary data were gathered from Thai and English
text books, journals, articles, the internet articles, theses, and previous studies. Moreover, the
report from Ministry of Public Health, and The Office of the National Economic and Social
Development were applied to collect data.
A self-administered questionnaire is used as an instrument in the research to collect the
primary data. For service quality or service performance, the questionnaire composes of fifty
questions classified into eight dimensions including infrastructure, personnel quality, process of
clinical care, administrative procedures, safety indicator, hospital image, social responsibility, and

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trustworthiness of the hospital. Each dimension was measured by the level of service quality or
service performance by using seven-point Likert scale. The score ranges from “very low level of
service quality” to “very high level of service quality”. For customer satisfaction, there were five
questions and each of the five items was measured by the degree of agreement or disagreement
by using seven-point Likert scale as the method for measuring attitude by rating their attitude
toward attitudinal object. The score ranges from “strongly disagree” to “strongly agree”.
The researcher used both of descriptive and inferential statistics by using the Statistical
Package for Social Science (the SPSS program) to analyze the data that were collected and to
answer all research hypotheses. For descriptive statistics, frequency, percentage, mean, and
standard deviation were applied. For inferential statistics, independent T-Test and Pearson’s
product moment correlation coefficient were applied at the significant level of 0.05.

7. Results
The demographic factors of Siriraj Hospital respondents indicated that the majority of
Siriraj Hospital respondents are female. The highest percentage of age level is more than 50 years
old. Also, the highest percentages of their education level, occupation, and income level are
bachelor degree, private company employee, and 15,000-30,000 Baht per month respectively.
The demographic factor of Bangkok Hospital respondents indicates that the majority respondents
are female. The highest percentage of age level is 31-40 years old. Furthermore, the highest
percentages of their education level, occupation, and income level are bachelor degree, private
company employee, and 30,001-45,000 Baht per month respectively.
The result of this study indicated that there are significant differences in service quality
dimensions and customer satisfaction between both hospitals. Moreover, the study found that
there are a significant relationship among service quality dimensions and customer satisfaction of
both hospitals.

8. Discussion and Conclusions


According to the demographic factors, the researcher found that there are differences
between the public and private hospital outpatients especially in age, occupation, and income.
The private hospital customers have higher income with lower age, which might lead to a higher
purchasing power. Thus, the high purchasing power customer might seek faster and more
convenient service. Moreover, the difference in customer profiles might lead different results for
each hospital.
For hypothesis testing, SPSS (Statistical Package of Social Science) was used to test
hypotheses, which comprise of four parts as follows:

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Part 1: To analyze the relationship between service quality dimensions and customer
satisfaction of the public hospital (Siriraj Hospital). This part comprised of Hypotheses 1-8 (H1-H8).
The study confirmed that service quality dimensions have a relationship with customer
satisfaction of the public hospital at the 0.01 significance level. The results confirm that service
quality dimensions have a medium-to-high positive relationship with customer satisfaction and
the factor that has the most influence to customer satisfaction is personnel quality. The mean
score indicates that outpatients of the public hospital feel neutral about a satisfaction level and
perceive personnel quality at a slight low level of service quality. If the hospital can increase
personnel quality, the satisfaction level will also increase. As Duggirala et al. (2008) mentioned,
the care provided by doctors, nurses and support staff in terms of skill, experience, warmth,
responsiveness and courtesy are important determinants of patient satisfaction with healthcare.
Part 2: To analyze the relationship between service quality dimensions and customer
satisfaction of the private hospital (Bangkok Hospital). This part comprised of Hypotheses 9-16
(H9-H16). The result found that service quality dimensions have a relationship with customer
satisfaction of the private hospital at the 0.01 significance level. The results confirm that service
quality dimensions have a medium-to-high positive relationship with customer satisfaction and
the factor that has the most influence to customer satisfaction is trustworthiness of hospital. The
mean score indicates that the private hospital outpatients agree that they satisfy with the
hospital and perceive trustworthiness of hospital at a high level of service quality because the
hospital focuses on maintaining a high level of confidence in doctors and staff, providing reliable
billing system, as well as maintaining patient privacy and confidentiality. Moreover, the private
hospital also emphasizes on providing quality medical care by offering specialized skills,
advanced technology and modern equipment, and caring teams of medical faculty, which are
important factors to determine patient satisfaction with healthcare.
Part 3: To compare service quality dimensions between the public and private hospitals
consisted of Hypotheses 17-24 (H17-H24). The study found that there was a difference in service
quality dimensions between the public and private hospitals at the 0.05 significance level. The
result indicated that the private hospital respondents received a higher level of service quality
than the public hospital respondents in service quality dimension and customer satisfaction.
Part 4: To compare customer satisfaction between the public and private hospitals (Hypothesis
25: H25). The researcher found that there was a difference in customer satisfaction between the
public and private hospitals at the 0.05 significance level. The result indicated that the private
hospital respondents received a higher level of customer satisfaction than the public hospital
respondents.
In conclusion, both hospitals have differences in management and commitment. The
private hospital focuses on providing high quality of medical services while the public hospital

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focuses on producing quality graduates as well as providing quality and up-to-date medical
services. Thus, the hospitals’ facilities, procedure, safety and security, quality of staff, medical
treatment, trust, reputation and social responsibility are also different. Moreover, the public
hospital was managed as a bureaucratic organization, which has a high red tabs involvement.
Thus, outpatients have a long waiting time in every process at the hospital including diagnosis
procedure, treatment procedure, appointments procedure, ambulance services, simplicity of
admission and discharge. According to inflexible management and procedures, the outpatients of
the public hospital enjoy a lower level of service quality and customer satisfaction when
compared with the private hospital outpatients, which has more flexible. Thus, the mean score
of service quality dimension and satisfaction’s of the private hospital is higher than the public
hospital.

9. Recommendations
The researcher recommends the public to add more availability and cleanliness of seat
and toilet in order to sufficiently serve their patients and to upgrade their service quality. The
hospital should maintain building physical environment with modern decoration, and clean
appearance and should focus on care and responsiveness of nurses and staff in order to show
the willingness to help patients as well as the willingness to politely answer patients’ questions
with care and responsive. Furthermore, the hospital should improve punctuality of doctors,
which is a prior improvement to gain higher patient satisfaction.
Additionally, both hospitals should improve scheduled admissions to be more simply
and quickly in order to reduce their waiting times and improve their ability to provide prompt
service, hardly train their medical team to look ahead for unexpected complications in a process
of preventive medical treatment, provide clear information and instruction about hospital
procedures and rules in a prominent place, and maintain the process and procedures of
admission to be clear and simplification in order to reduce the confuse from the complicated
procedures. As the medical treatment has a high technology involvement, both hospitals should
promote and advertise the new technology investment to gain more positive image since
Gronroos (1984) mentioned that the positive image of firm makes customers find excuses for
their negative experiences. Thus, making a positive firm image is a competitive advantage which
the firm cannot overlook.

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BANGKOK UNIVERSITY RESEARCH CONFERENCE 391

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