Introduction
Case study
Service quality
in a cellular
telecommunications
company: a South
African experience
R.W.E. van der Wal
A. Pampallis and
C. Bond
The authors
R.W.E. van der Wal is Head of the Department of
Management, Technikon Witwatersrand, Helderkruin,
South Africa.
A. Pampallis is based at Technikon Witwatersrand,
Doornfontein, South Africa.
C. Bond is based at Cape Town, South Africa.
Keywords
Service quality, Cellular communications, Retailing,
Factor analysis, South Africa
Abstract
This study deals with the measurement of service quality
at cellular retail outlets in the South African environment.
The focus is on perception and expectation of service
quality from the customer's perspective. A literature
review was conducted on, models of measurement for
service quality. The research was conducted via a
structured questionnaire based on the SERVQUAL model.
Primary data was gathered via telephonic interviews from
a sample of 583 customers. The total scale reliability for
this study is 0.95, indicating an overall higher reliability
factor than the Parasuraman et al. study. The findings
further indicated that two of the dimensions, namely,
tangibles and reliability are loading into separate factors.
The remaining three dimensions, responsiveness,
assurance and empathy all load into one factor, indicating
that there is no real differentiation amongst the three
dimensions in the customer's mind.
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Managing Service Quality
Volume 12 . Number 5 . 2002 . pp. 323±335
# MCB UP Limited . ISSN 0960-4529
DOI 10.1108/09604520210442119
323
This study deals with the measurement of
service quality in the cellular
telecommunication industry in South Africa,
with a focus on the customers' perception of
service quality.
The worldwide trend toward service quality
was initiated in the 1980s when marketers
realised that a quality product was not, in
itself, guaranteed to maintain competitive
advantage. Customer service became a
distinct and important aspect of the product/
service offering. This, together with the
information revolution, has resulted in a
demanding and discerning customer. Quality
customer service is, therefore, an imperative
to gain and sustain a competitive advantage
(Zeithaml and Bitner, 2000).
The 1980s marked a paradigm shift as
companies realised that improving quality was
good for business and necessary for effective
competition. Traditional marketing
philosophies of quality based on products and
processes were replaced by customer driven
quality (Lovelock, 1996).
Payne (1993, p. 217) states that research
supports the argument that customer-focused
quality is of strategic importance and that
customers' perception of quality is a critical
variable in profitability:
. . . relative perceived quality is more positively
related to a company's financial performance
than such things as relative market share.
Service quality is particularly critical in the
telecommunication industry in South Africa
at this time. The telecommunication industry
is set to undergo an interesting period, as the
government is in the process of issuing new
licences for both fixed line and cellular
networks. Telkom is currently the only fixed
line operator in South Africa and there are
two cellular networks, Vodacom and MTN,
with a third cellular company just starting to
operate. All four companies compete for voice
traffic.
The current state of the
telecommunications industry in South Africa
can be assessed using Porter's five forces
model. This is a widely used and proven
model that identifies five potential
competitive forces (Jain, 1997, p. 90):
(1) the threat of new entrants;
(2) the threat of substitute goods or services;
(3) the bargaining power of buyers
(customers);
(4) the bargaining power of suppliers; and
 Service quality in a cellular telecommunications company
R.W.E. van der Wal, A. Pampallis and C. Bond
(5) the degree of rivalry amongst existing
competitors.
For the purpose of this study two of the
competitive forces have been deemed
significant in the industry.
The first is the threat of substitute goods or
services. This is a threat to the South African
telecommunication industry since Telkom's
fixed line monopoly expires in 2002 and new
role players are likely to enter the market.
Convergence of the telecommunication,
information technology and broadcasting
industries is leading to the creation of a
world-wide integrated technology platform
over which voice and data traffic will be
carried. The convergence of voice, data,
entertainment, broadcasting and computing
sectors into a next generation industry is
creating new opportunities and challenges
for the traditional telecommunication
companies and broadcasters, as well as for
cable, satellite and Internet service providers.
Protecting existing customer bases through
quality service provision, whilst finding
creative ways to meet the new demands, will
be key to success in this new
communications market (Zeithaml and
Bitner, 2000).
The second significant competitive market
force is the threat of potential entrants (Jain,
1997). A superficial overview of the cellular
telecommunication industry would indicate
that the threat of potential entrants is low,
first because a licence to operate must be
issued by government and, second, because of
the high set-up costs. In South Africa this
threat materialised in February 2001 when
the Independent Communications Authority
of South Africa awarded a third cellular
network licence to Cell C. Whilst the
competition between the two current cellular
network operators, Vodacom and MTN, is
fierce, the market is becoming even more
competitive in anticipation of the start of
operation of Cell C. This is expected to result
in a redistribution of market share. Each
company has to strongly consolidate its
position in the market place, and support this
position by delivering excellent quality of
service at all points of contact with the
customer.
Historically the distribution channel
consisted of service providers, who sold
direct, and through appointed dealers and/or
retailers. These service providers were
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Managing Service Quality
Volume 12 . Number 5 . 2002 . 323±335
independently owned and operated. As a
result the cellular networks had limited
influence over the customers' experience at
retail outlet level. In the past year the
networks started buying out their distribution
channels. The objective was to gain control,
and hence to own the customer. This is in line
with the global trend toward customer-centric
organisations and is intended to assist the
companies in sustaining a competitive
advantage.
According to confidential company
research, 76 per cent of all current subscriber
interface takes place outside of the networks.
The previous distribution model allowed
minimal control of interaction at outlet level,
which resulted in diverse service delivery at
the various outlets. Since the networks now
own approximately 75 per cent of their total
distribution channels, they are in a position to
influence subscriber interface at outlet level.
Measurable systems and controls have to be
put in place to ensure excellent service at any
retail outlet. The first step in developing such
a system is to measure service quality at
cellular retail outlets (Zeithaml and Bitner,
2000).
Aim of research
To determine service quality at cellular
telecommunication retail outlets in the South
African environment, in order to better our
delivery of customer service.
Value of research
According to Lovelock (1996, p. 562):
Research reveals that delivering high quality
service is closely linked to profits, cost savings,
and market share in many industries.
The research will reveal which dimensions of
service quality are important to customers,
and will provide an insight into their
expectations and perceptions of service
quality at cellular retail outlets. This will
assist a cellular service provider to plan and
execute a marketing strategy that will
maximise service quality in line with
customers' needs, and hence to improve
customer retention which will impact
positively on profits.
 Service quality in a cellular telecommunications company
R.W.E. van der Wal, A. Pampallis and C. Bond
What is service quality?
Before we answer this question, we have to
define the customer. According to Daft and
Marcic (1998, p. 81):
People and organisations in the environment
who acquire goods or services from a
organisation are customers.
The meaning of service quality can be
inferred from the following references:
Service quality differs from quality of goods, in
that services are intangible. This presents a
challenge to marketers; services cannot easily be
communicated to customers, and hence quality
may be difficult for customers to assess. Services
are characterised as being intangible, perishable,
produced and consumed simultaneously, and
heterogeneous. A major challenge for companies
is to deliver service quality consistently
(Zeithaml and Bitner, 2000).
Through focus group interviews we learned a
great deal about how customers view service
quality. The focus groups unambiguously
supported the notion that the key to ensuring
good service quality is meeting or exceeding
what customers expect from the service
(Zeithaml et al., 1990, p. 18).
Service and product quality is in the mind of
the customer. This means that measuring
quality requires talking with customers.
Quality reflects the extent to which a product
or service meets or exceeds customers'
expectations. For companies to understand
how customers perceive their quality, they
must measure customers' satisfaction with
their products and services (Rust and Oliver,
1994).
What is delivered is as substantial as how it is
delivered. Schneider and Bowen (1995)
clarified that many a time managers become so
involved with all the procedures, processes and
contexts for service, that they tend to overlook
that there is also something called the ``core
service''. Schneider and Bowen also argued
that fancy facilities, modern equipment, stylish
uniforms and terrific signs can never
countervail bad or mediocre food, poor
financial advice, and an inappropriate joke.
Service quality model
The process of managing for improved service
quality begins with understanding the
customer's expectations. Service quality is the
difference between what a customer expects
and what is provided. The expectations/
perceptions conceptualisation has been
extended to incorporate ``desires'' in evaluating
customers' perception of service quality.
In all the academic sources that were
consulted on service quality, the SERVQUAL
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Managing Service Quality
Volume 12 . Number 5 . 2002 . 323±335
model/instrument was mentioned as the
fundamental most appropriate method and
instrument available to measure service
quality.
There are several conceptual models that
can be used to address the unique challenge
of service marketing. Two of these are the
services marketing triangle and the gap model
of service quality or SERVQUAL.
The SERVQUAL model is used as a
diagnostic tool for the measurement of
customer service and the satisfaction of
service perception. Parasuraman et al. (1985)
developed a conceptual framework for the
SERVQUAL model and subsequently refined
the model in 1988, 1991, 1993 and 1994
(Parasuraman et al., 1988, 1991, 1993,
1994). Zeithaml et al. (1990) conducted focus
group interviews and formal surveys of
customers in several different service
industries to develop lists of attributes that
define service quality in general. The lists
were condensed by correlation analysis into
five major categories. These categories are:
(1) Tangibles ± includes the company's or
service provider's physical facilities,
equipment, dress of their employees,
deÂcor and communications material.
(2) Reliability ± refers to the ability of the
service provider to perform the service
accurately and dependably, as promised.
(3) Responsiveness ± refers to the willingness
of the firm's staff to help customers and
to provide the requested service
promptly.
(4) Assurance ± refers to the knowledge and
courtesy of the company's employees and
their ability to inspire trust and
confidence in the customer towards the
service company.
(5) Empathy ± refers to the ability of the
service provider to provide a caring and
personalised attention to each customer.
For the purpose of this article the
SERVQUAL model will not be discussed, but
various research studies based on
SERVQUAL, that deal with factor analysis, as
well as the study on which this article is based,
are presented in Table I.
Research methodology
Literature review
Secondary data, relevant literature was
evaluated, as depicted in Table I. The
 Table I SERVQUAL studies that differentiate amongst the dimensions
Authors and date
Parasuraman et al. (1988)
Carman (1990)
Parasuraman et al. (1991)
326
Boshoff et al. (1992)
Du Plessis and Boshoff (1994)
Lam (1995)
Objective of study
To describe the development of a multiple-item
scale for measuring service quality. To discuss
the scale's properties and potential applications
To replicate and test SERVQUAL dimensions and
measures
To describe a multi-sector study in which the
original SERVQUAL instrument is refined and its
reliability and validity re-examined
To determine whether the original 22 expectation
and evaluation statements represent
measurements of the five service quality
dimensions as presented in SERVQUAL
To evaluate student perceptions of educational
service quality.To assess usefulness of SERVQUAL
instrument in a tertiary education environment
To demonstrate use of the SERVQUAL instrument
for measuring and analysing service quality data.
To examine validity, reliability and predictive
validity of SERVQUAL
Sample size and industry
200 adult consumers ± five service
firms. 800 adult consumers ± four
service firms
800 adult consumers ± four firms
1,936 adult consumers ± three
service industries
138 adult consumers ± television
licence holders
491 technikon students
227 adult consumers ± retail
banking
Findings
Reliability high across all firms, with possible exception of values in the
tangibles dimensions. High dimensional distinctiveness. The five dimensions of
service have sound and stable psychometric properties
Stability of SERVQUAL dimensions are impressive, however the dimensions are
not completely generic. Problems experienced with ability to administer
expectations battery and factor analysis of the difference between perceptions
and expectations
Refinements reflect original five-dimensional structure of scale, however there
R.W.E. van der Wal, A. Pampallis and C. Bond
is a dichotomization of tangibles into two sub-dimensions. High reliability and
Service quality in a cellular telecommunications company
consistent factor structure of revised SERVQUAL scale across five different
samples supports the scales' trait validity. The Cronbachs' alpha reliability
coefficient for the five SERVQUAL dimensions are similar across studies which
supports the internal cohesiveness of the scale items forming each dimension
The results concur with those of Parasuraman et al. (1988) with the exception
of the responsiveness dimension, which appears inseparable from empathy
SERVQUAL instrument proved appropriate and should be used more
extensively in technikon/ education environments. Assurance was not
interpreted as a separate construct in SERVQUAL dimensions
SERVQUAL is a consistent and reliable scale to measure quality. Expectation,
Managing Service Quality
performance perceptions and gap scores emerged as unidimensional measures.
Usefulness of expectation scores was questioned, it was suggested that overall
Volume 12 . Number 5 . 2002 . 323±335
quality perception can be predicted accurately using only performance scale
(continued)
 Table I
Authors and date Objective of study Sample size and industry Findings
Pitt et al. (1995) To determine the appropriateness of SERVQUAL 685 adult computer users SERVQUAL passes content, reliability and convergent validity exam. Some
to assess IS service quality uncertainties with nomological and discriminant validity, insufficient to
discontinue consideration of SERVQUAL. Responsiveness, assurance and
empathy loaded as one factor, indicating problems with discriminant validity

Newman and Cowling (1996) To conduct a comparative evaluation of Three part study. Bank customers A degree of overlap existed in the empathy and assurance dimensions. The
SERVQUAL and the TQM programme. To provide June 1993 ± 1,850, November perception and expectation scale was defended
R.W.E. van der Wal, A. Pampallis and C. Bond

fresh evidence of the debate about the 1993 to May 1994 ± 84,000,
Service quality in a cellular telecommunications company

usefulness and suitability of SERVQUAL August 1993 number not specific

Donnelly and Shiu (1999) To conduct a pilot study of the assessment of 354 tenants of Falkirk Housing Lack of fit of data to a priori SERVQUAL dimensions. The reliability and

327
customers' views of the quality of housing Service responsiveness dimensions load into one single factor. The tangible dimension
repairs using SERVQUAL splits into two separate factors. The empathy dimension is broken up and not
well defined

Heung and Qu Hailin (2000) To examine travellers' expectations and 630 travellers in four restaurants SERVQUAL model provides a satisfactory level of reliability
perceptions of the quality of the restaurants'
service

Engelland and Singh (2000) To develop and test the application of a modified 262 for exploratory study. 237 for Excessive cross loading of items in tangibles dimension and assurance
SERVQUAL measurement scale for value added validation students dimension. The exact SERVQUAL instrument would not possess good reliability
performance assessment of a university and consistency over time. The refined instrument indicated good internal
Managing Service Quality

consistency and clean and expected factor loading. It proved an excellent tool
for the overall strategic planning process
Volume 12 . Number 5 . 2002 . 323±335
 Service quality in a cellular telecommunications company
R.W.E. van der Wal, A. Pampallis and C. Bond
literature review allowed the researcher to
obtain more knowledge on the topic of this
study and related issues. The different
perspectives on service quality, the necessity
of measuring service quality, various models
of measurement for service quality, the
SERVQUAL model and various research
studies using the SERVQUAL model were
issues that were examined prior to choosing
the appropriate instrument for primary data
collection. The SERVQUAL model was
chosen based on review of the literature
(Hussey and Hussey, 1997, p. 109).
Descriptive research
Primary data was collected from 583 cellular
customers. The objective of the descriptive
research was to obtain an accurate profile on
the customers' expectations and perceptions
of service quality (Hussey and Hussey, 1997,
p. 11). The SERVQUAL model proposed by
Zeithaml et al. (1990) was used as the basis
for a structured questionnaire.
This approach provided information on the
following research objectives:
. To investigate the reliability and validity
of the SERVQUAL model in the South
African telecommunication environment
. To explore the difference between
expected service and perceived service as
experienced by customers at retail outlets.
The descriptive research provided the
feedback on customers.
Population and sample
The study is limited to the cellular
telecommunications industry and to one
particular network operating in the South
African market. The study is also limited to
the measurement of customer service quality
at cellular retail outlet level.
The study was conducted in English but
included respondents from all language
groups; it is possible that the understanding
and interpretation of questions may differ
amongst language groups. The time
constraints for this study limited the study to
one interview per respondent at a specific
point in time. It would be of value to conduct
a series of interviews over a period of time.
The sample was drawn from the network's
cellular subscriber base. There is enough
similarity amongst the elements within the
population to conclude that a few of the
elements (the sample) will adequately
represent the characteristics of the total
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Managing Service Quality
Volume 12 . Number 5 . 2002 . 323±335
population (Page and Meyer, 2000, p. 97).
The current population is 2.82 million.
The random sampling technique was chosen.
This technique ensures that each member of
the population has an opportunity to be
chosen. The sample for subscribers was then
stratified to include elements from each of the
segments within the population (Cooper and
Schindler, 1998). The criteria for stratification
were geographic area and level of sales.
A sample of 583 customers was drawn.
Subscriber questionnaire
The subscriber questionnaire (see the
Appendix) contains a set of 20 statements
regarding customers' expectations and
perceptions of the five dimensions of service
quality (tangibles, reliability, responsiveness,
assurance and empathy). This section is based
on Zeithaml et al. (1990) with some
refinements regarding questions.
Data collection technique
Telephonic interviews were the chosen
technique for the collection of data. When
compared to other techniques such as
personal interviews or mail surveys, this
method is usually more cost efficient, less
time consuming, and reduces interviewer bias
(Cooper and Schindler, 1998).
The telephonic interview was limited to 20
minutes, to minimise inconveniencing
subscribers and retail staff. Non-response
factors such as content, anonymity and
complexity of questions were addressed during
some pilot interviews. This resulted in
refinements to the format of the questionnaire.
All respondents were assured of anonymity.
Screening questions were not necessary, as
the sample selected ensured that the correct
respondents were being interviewed.
The researcher conducted the pilot
interviews. Staff of the network's customer
care department then conducted the
interviews under the supervision of the
researcher. The researcher trained the staff,
highlighted ethics issues regarding the
respondents, and supervised the process.
Discussion of findings
Introduction
Factor analysis is a statistical approach that
highlights the intrinsic affinity between
variables. It explains these variables in terms
of their common underlying dimensions or
 Service quality in a cellular telecommunications company Managing Service Quality
R.W.E. van der Wal, A. Pampallis and C. Bond Volume 12 . Number 5 . 2002 . 323±335

factors. It condenses the information from a item. The factor is the natural affinity of an
large number of original variables into a item for a group. The higher the loading
smaller set of factors with a minimum loss of (factor) the stronger the affiliation of the item
information (Hair et al., 1992). to a specific factor. Scores below 45 indicate a
After factor analysis, homogeneity of weak loading and are therefore of little
dimensions was tested using Cronbach's alpha significance. These scores are not highlighted,
analysis. Hair et al. (1992, p. 428) state that: only scores above 45 are significant and hence
It is a commonly used measure of reliability for a are highlighted.
set of two or more construct indicators. Alpha In the 1988 Parasuraman et al. study, the
coefficient values range between 0 and 1.0 with
findings concluded that each of the five
higher values indicating higher reliability among
the indicators. dimensions was homogeneously loaded to the
different factors. This indicates that there is a
The first step of the data analysis was to check
clear differentiation between the five
the reliability of results to determine the
dimensions in the mind of the customer.
credibility of findings resulting from the study.
The findings of this study indicate that two
of the dimensions, namely, ``tangibles'' and
``reliability'' are loading into separate factors;
Findings regarding reliability and there is a clear differentiation in the customers'
validity of SERVQUAL instrument minds regarding these two dimensions.
Factor analysis and discussion However, the remaining three dimensions,
The values in Table II indicate the affiliation ``responsiveness'', ``assurance'' and ``empathy''
of the items to a factor. Each question is an all load into one factor, indicating that there is
Table II Factor loading matrices following oblique rotation of five-factor solutions
F1 F2 F3 F4 F5
Q1 87 ± ± ±
Q2 67 ± ± ±
Q3 ± ± ± 77
Q4 ± ± ± 73
Tangibles
Q5 ± ± 75 ± ±
Q6 27 ± 63 ± ±
Q7 ± ± 83 ± ±
Q8 ± ± 85 ± ±
Reliability
Q9 30 ± 52 ± ±
Q10 68 ± ± ± ±
Q11 82 ± ± ± ±
Q12 84 ± ± ± ±
Responsiveness

Q13 76 ± ± ± ±
Q14 65 ± ± ± ±
Q15 68 ± ± ± ±
Q16 62 ± ± ± ±
Assurance

Q17 88 ± ± ± ±
Q18 ± ± ± 92 ±
Q19 71 ± ± ± ±
Q20 85 ± ± ± ±
Empathy
Notes: Extraction method: principal component analysis. Based on five factors specification (not on eigenvalue > 1)
Rotation method: oblique (Oblimin ± SPSS) with Kaiser normalization
All numbers in the table are magnitudes of the factor loadings multiplied by 100. Loadings that are 0.25 or less are
not shown
The cumulated percentage of variance extracted by the five factors is 73 per cent

329
 Service quality in a cellular telecommunications company
R.W.E. van der Wal, A. Pampallis and C. Bond
no real differentiation amongst these three
dimensions in the customers' minds. They
tend to view ``responsiveness'', ``assurance''
and ``empathy'' as one dimension. These
dimensions could possibly have been
measured as one, in the South African market.
This can, however, not be firmly concluded
without further testing of the proposition, but
is worth noting for future studies.
A dichotomy exists in the ``tangibles''
dimension, with two elements each loading
into two different factors. Two of the
elements grouped together refer to the range
of handsets and accessories, and the
appearance of the physical facilities. These are
``hard'' ``tangibles''. The remaining two
elements that load into a different factor
concern appearance of employees and
appearance of pamphlets and other
promotional materials. These are ``soft'' or
peripheral ``tangibles'' that create atmosphere.
The dichotomization of tangibles into sub-
dimensions was also reported in the 1991
Parasuraman et al. study.
The ``empathy'' dimension has three
elements that load homogeneously into one
factor and a fourth that loads into a different
factor. This is possibly due to the fact that the
three elements that are homogeneous all
relate to customers' needs. The fourth
``rogue'' element regards operating hours
which could be considered an operational
issue rather than a concern for customer
needs.
Reliability coefficient discussion
Alpha coefficient values can range between 0
and 1.0. Higher values indicate higher
reliability among the indicators, hence 1 is the
highest value that can be achieved (see
Table III).
The total scale reliability for this study is
0.95, indicating an overall higher reliability
factor than the first Parasuraman et al. (1988)
study, which had a reliability factor of 0.92.
The reliability of this study is substantial, as
the highest reliability value that can be
achieved is 1.0.
Measuring the impact of deleting an item
from a dimension can test the robustness of
item selection.
Tangibles
All four items in this dimension have a high
level of cohesion; the omission of any of the
items would have resulted in a decrease in the
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Managing Service Quality
Volume 12 . Number 5 . 2002 . 323±335
reliability of the results. The alpha coefficient
on this study is 0.63 compared to the
Parasuraman et al. (1988) study, where it was
0.72. This lower result could be attributed to
the fact that in this study a dichotomy exists in
the customers' perception regarding the
grouping of two items each in two different
factors, as presented in Table II.
Reliability
All four items in this dimension have a high
level of cohesion; the omission of any of the
items would have resulted in a decrease in the
reliability of the results. This study has an
alpha coefficient of 0.87, which indicates
higher reliability than the Parasuraman et al.
(1988) study, which had an alpha coefficient
of 0.83. The Parasuraman et al. (1988) study
had five questions for this dimension whereas
this study had only four questions ± one was
omitted as it was deemed repetitive. Despite
the fact that there are fewer variables in this
study, the reliability is still higher than that of
the Parasuraman et al. (1988) study,
indicating a very strong homogeneity amongst
the four items in this dimension.
Responsiveness
All four items in this dimension have a high
level of cohesion. The omission of any of the
items would have resulted in a decrease in the
reliability of the results. This study has an
alpha coefficient of 0.88, which is higher than
that of the Parasuraman et al. (1988) study,
which had an alpha coefficient of 0.82. One of
the questions in this dimension was changed
as it was deemed more relevant to this study.
The results strongly suggest that this change
in the particular question resulted in a greater
homogeneity across the items in this
dimension.
Assurance
All four items in this dimension have a high
level of cohesion. The omission of any of the
items would have resulted in a decrease in the
reliability of the results. The alpha coefficient
for this study is 0.88, contrasting with the
Parasuraman et al. (1988) study's result of
0.81 and hence indicating a higher reliability
factor.
Empathy
The alpha coefficient for this study is 0.80. If
question 18 had been omitted the alpha
coefficient would have increased to 0.88.
Therefore, omitting this question would have
resulted in a greater cohesion amongst the
 Table III Reliability coefficients (alphas)
Alpha coefficients for Alpha coefficients if item Factor loadings of items on dimensions to
Dimension Number of items dimension deleted which they belong Items
Tangibles 4 0.63 0.59 87 Q1
0.48 67 Q2
0.57 77 Q3
0.59 73 Q4
Reliability 4 0.87 0.86 75 Q5
0.81 63 Q6
0.81 83 Q7
R.W.E. van der Wal, A. Pampallis and C. Bond

0.84 85 Q8
Service quality in a cellular telecommunications company

Responsiveness 4 0.88 0.87 52 Q9

0.82 68 Q10

331
0.84 82 Q11
0.84 84 Q12
Assurance 4 0.88 0.82 76 Q13
0.83 65 Q14
0.85 68 Q15
0.85 62 Q16
Empathy 4 0.80 0.70 88 Q17
0.88 92 Q18
0.67 71 Q19
0.70 85 Q20
Reliability of linear combination (total
Managing Service Quality

scale reliability) 0.95

Volume 12 . Number 5 . 2002 . 323±335

Notes: All numbers in the table are magnitudes of the factor loadings multiplied by 100. The loadings of items on dimensions to which they did not belong were equal or less than 0.3
The cumulated percentage of variance extracted by the five factors is 73 per cent
 Service quality in a cellular telecommunications company Managing Service Quality
R.W.E. van der Wal, A. Pampallis and C. Bond Volume 12 . Number 5 . 2002 . 323±335

items. The question pertained to convenient
operating hours, which may be viewed as an
operating procedure and thus not regarded by
customers as a measurement of empathy.
Note that this trend was also identified in the
factor analysis in Table II. The alpha
coefficient for this study is 0.80, which is
lower than the 0.86 result reported in the
1988 Parasuraman et al. study.
Findings regarding importance of
dimensions in predicting service quality
the ``empathy'' dimension, and to a lesser
extent in the ``responsiveness'' dimension, as a
significant level (p < 0.10) was observed there.
By comparing rating order between
``importance of service'', ``expectation
quality'', and ``perception quality'', it becomes
apparent that ``importance of service'' has no
strong affinity/relationship with either
``expectation quality'' or with ``perception
quality'', while ``expectation quality'' and
``perception quality'' have a strong affinity/
relationship (see Table V).

The results of a similar regression analysis to

that performed by Parasuraman et al. (1988)
indicate that all dimensions are not affected at
a significant level (p < 0.10), by the rating of
importance given to these dimensions by the
customers. Therefore, it can be concluded
that no significant relationship exists between
the importance of a dimension and the
perception of the corresponding quality (see
Table IV).
In this study the results were challenged
further, by using one-way ANOVA and
Pearson's chi-square analysis (Table V).
These analyses indicate that a significant
relationship exists between the importance of
a dimension to the customers, and the
corresponding perception of service quality in
Comparison of the relative importance
of the five dimensions in predicting
overall quality perception and quality
expectation
The ``responsiveness'' dimension is rated the
highest in terms of importance (mean 1.84
and order of importance 1) and the ``tangible''
dimension least important (mean 2.63 and
order of importance 5) (Table VI).
In terms of expectations, ``assurance'' rates
highest (mean 6.86 and order of importance
1), closely followed by ``responsiveness''
(mean 6.85 and order of importance 2). The
lowest ranked dimension is ``tangibles'' (mean
6.69 and order of importance 5) which

Table IV Relative importance of the five dimensions in predicting overall quality perception (regression analysis)
Standardised slope Significant level of Adjusted R2 (cum.
Dimensions coefficient slope absolute)
Tangibles ±0.07 0.11 0.007 (p < 10)
Reliability 0.03 0.47
Responsiveness ±0.02 0.58
Assurance 0.05 0.23
Empathy ±0.04 0.38
Note: Negative regressions are explained by the fact that the scale measuring ``perception quality'' runs from
``strongly agree'' = 7 to ``strongly disgree'' = 1, while the scale measuring the ``importance of services'' runs in
reverse order from ``most important'' = 1 to ``least important'' = 5

Table V Relative importance of the five dimensions in predicting overall quality perception (one-way ANOVA and
Pearson's chi-square)
One-way ANOVA Pearson's chi-square
Dimensions F-value P-value X2-value P-value
Tangibles 1.14 0.31 70.6 0.39
Reliability 0.66 0.89 76.2 0.93
Responsiveness 1.55 0.05 101.9 0.23
Assurance 0.88 0.62 84.7 0.58
Empathy 2.28 0.00 114.9 0.03
Note: Significant relationship/prediction between ``importance of service'' and ``perception quality'' is only present
for the dimensions: empathy and to a lesser extent responsiveness

332
 Service quality in a cellular telecommunications company
R.W.E. van der Wal, A. Pampallis and C. Bond
Table VI Comparison of the relative importance of the five dimensions in predicting overall quality perception and quality expectation
Importance Expectation
a b
Dimensions Mean Std dev. Order of importance Mean Std dev. Order of importance Mean Std dev. Order of importance
Tangibles 2.63 1.71 5 6.69
Reliability 1.93 1.26 3 6.80
Responsiveness 1.84 1.21 1 6.85
Assurance 1.94 1.24 2 6.86
Empathy 2.03 1.35 4 6.81
Note: a Scale running from: most important = 1 to least important = 5; b Scale running from: Strongly agree = 7 to strongly disagree = 1
confirms that ``tangibles'' rank the lowest in
importance.
The results show that customers have the
best perception of ``assurance'' (mean 6.19
and order of importance 1), followed by
``tangibles'' (mean 6.17 and order of
importance 2). ``Empathy'' (mean 6.1 and
order of importance 3) is very closely
positioned to ``tangibles'' with a difference of
only 0.01 in mean scores. The two lowest
perceptions are also very closely ranked with
``reliability'' (mean 6.12 and order of
importance of 5) and ``responsiveness'' (mean
6.13 and order of importance 4) differing by
only 0.01 in mean scores. The
``responsiveness'' dimension is first in order of
importance to the customer, thus the poor
ranking in perception is an important
indicator to the company to improve this
dimension of service quality.
The focus of this study now moves to the
contribution to the industry, based on
interpretation of results, which will provide a
guideline to the company of problem areas
within service quality.
Conclusions
The conclusions reached as a result of data
analysis and interpretation will be discussed
in this section.
Was the SERVQUAL model in the South
African telecommunication environment
reliable and valid?
From the research conducted it seems that
there is no published SERVQUAL study for
the telecommunication industry in South
Africa. However, several studies conducted in
the South African business environment have
concluded that SERVQUAL is a reliable
instrument for the measurement of service
quality in South Africa (Table I). This is
supported by the fact that the customer
section of this study resulted in a total scale
333
Managing Service Quality
Volume 12 . Number 5 . 2002 . 323±335
Perception
b
0.61 5 6.17 0.96 2
0.51 4 6.12 1.28 5
0.35 2 6.13 1.27 4
0.36 1 6.19 1.20 1
0.44 3 6.16 1.18 3
reliability of 0.95, which is a strong indicator
of reliability (see Table III) compared to the
Parasuraman et al. (1984) study, which
indicated a scale reliability of 0.92.
Thus, it can be concluded that
SERVQUAL is a reliable instrument for the
measurement of service quality in the
telecommunications industry in South Africa
In the customer section of this study
SERVQUAL did not achieve discriminant
validity amongst the five service quality
dimensions (see Table II). ``Tangibles'' and
``reliables'' loaded into separate factors;
however, a dichotomy exists in the
``tangibles'' dimension, with two elements
each loading into two different factors.
``Responsiveness'', ``assurance'', and
``empathy'' loaded as one factor, indicating
problems with discriminant validity (see
Table I).
This concurs with the findings of Pitt et al.
(1995) who found the same three
dimensions loading into one factor (see
Table I). Nel et al. (1997) also found
problems with discriminant validity in the
South African context (see Table I). These
dimensions could possibly have been
measured as one variable in the South African
market. This assertion requires further
testing. However, it is worth noting for future
studies.
We conclude that the SERVQUAL
instrument is reliable and valid for the South
African environment.
According to the results it seems that the
manager:
. in terms of importance of the dimension,
should give attention to the
``responsiveness'' of his staff to help and
to provide the requested service
promptly;
. in terms of expectations and perception,
should make an effort to address
``assurance'', his staff should be
knowledgeable and inspire trust and
 Service quality in a cellular telecommunications company
R.W.E. van der Wal, A. Pampallis and C. Bond
confidence in their customers for the
company;
. in terms of importance and expectations,
should give less thought to the dimension
``tangibles'', e.g. the physical facilities,
equipment, dress of their employees and
communication material.
According to Lovelock (1996, p. 562):
Research reveals that delivering high quality
service is closely linked to profits, cost savings,
and market share in many industries.
This statement seems to be supported by this
study.
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 Service quality in a cellular telecommunications company Managing Service Quality
R.W.E. van der Wal, A. Pampallis and C. Bond Volume 12 . Number 5 . 2002 . 323±335

Appendix. Subscriber questionnaire

OPENING:
Good morning/afternoon/evening. My name is ______________ and I am calling from
Vodacom. We are conducting a survey amongst Vodacom users regarding their experience at
cellular stores. This information will be used to improve customer service. Are you willing to
spend about twenty minutes to answer the survey? We guarantee that your responses will be
treated in strict confidentiality. You are under no obligation to answer and you are free to
terminate the interview at any time.

SECTION 1:
Directions
Based on your experiences as a consumer of cellular services, please think about the kind of
cellular company that would deliver excellent quality of service and that you would be pleased
to do business with. There are no right or wrong answers ± all we are interested in is a number
that reflects your feeling regarding cellular companies. I will read you the list of statements for
which we are asking you to give a rating on a scale of 1 to 7; 1 being that you strongly disagree with
the statement and 7 being that you strongly agree.

A. What are your expectations B. How do you feel the store

of an excellent cellular where you bought your service
store? meets your expectations?
Strongly Strongly Strongly Strongly
disagree agree disagree agree
1.1 Stores will have a wide range of handsets and accessories 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.2 The physical facilities at the stores will be visually appealing 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.3 Employees of stores will be neat-appearing 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.4 Materials associated with the service (such as pamphlets or 1 2 3 4 5 6 7 1 2 3 4 5 6 7
statements) will be visually appealing
1.5 When the store promises to do something by a certain time, 1 2 3 4 5 6 7 1 2 3 4 5 6 7
they will do so
1.6 When a customer has a problem, the store will show a sincere 1 2 3 4 5 6 7 1 2 3 4 5 6 7
interest in solving it
1.7 The stores will perform the service right the first time 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.8 The store will insist on error free records 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.9 Employees will tell customers exactly when services will be 1 2 3 4 5 6 7 1 2 3 4 5 6 7
performed
1.10 Employees will give prompt service to customers 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.11 Employees will always be willing to help customers 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.12 Employees will never be too busy to respond to customers' 1 2 3 4 5 6 7 1 2 3 4 5 6 7
requests
1.13 The behaviour of employees will instill confidence in customers 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.14 Customers will feel assured that service requests are duly 1 2 3 4 5 6 7 1 2 3 4 5 6 7
followed up
1.15 Employees will be consistently courteous to customers 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.16 Employees will have the knowledge to answer customers' 1 2 3 4 5 6 7 1 2 3 4 5 6 7
questions
1.17 The store will give customers individual attention 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.18 The store will insist on error free records 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.19 The store will have the customers best interests at heart 1 2 3 4 5 6 7 1 2 3 4 5 6 7
1.20 Employees will understand the specific needs of their customers 1 2 3 4 5 6 7 1 2 3 4 5 6 7

335