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The Application of SERVQUAL Distribution In Measuring Customer Satisfaction of Retails Company

  • Received : 2018.12.22
  • Accepted : 2019.02.05
  • Published : 2019.02.28

Abstract

Purpose - This research strives to analyze and investigate customers' perception of the dimensions of service quality at retails in Makassar Municipality of Indonesia Country. This research tries to present its results empirically, which might be helpful to prepare a strategy to improve the service quality at retail companies. Research design, data, and methodology - The research uses Parasuraman's in 1985 unmodified SERVQUAL approach. This research is conducted using a questionnaire by purposive random sampling with 150 housewives customers who are met while they are shopping. The object of the study included several retail companies such as Alfa Mart, Alfa Midi, and Indomart operating in Makassar, Indonesia, which has been serving in 2017. Analysis was conducted by quantitative descriptive analysis, measurement of variable dimensions on the questionnaire using a Likert scale, and using cartecius graph and quadrant graphs to determine the gap size of each variable. Result - This research finds that the tangible and empathy dimensions such as product layout and lighting condition should be prioritized, and the empathy dimension whose gap value is too prominent such us peak load time condition and problem-solving adjustment. Conclusion - The second priority is responsiveness dimensions, and the last priority is reliability and assurance dimensions.

Keywords

1. Introduction

The satisfaction of customers on service companies, including minimarket business entity, is exciting to be studied. Cengiz and Fidan (2017), Ravichandran, Prabakaran, and Kumar (2010), Mosahab, Mahamad, and Ramayah (2010) and Malik, Mushtaq, Naseem, and Malik (2012) have conducted studies on the factors which influence customer satisfaction and loyalty. They find that service quality is the one which affects customer satisfaction and loyalty. However, their findings are different. Ravichandran et al. in his research in 2010 find that customer’s perception is more significant than their expectation. The dimension with the most significant influence is the tangibility dimension. However, in the same year in 2010 Mosahab et al. (2010) find the opposite, i.e., that customer’s perception is lesser than their expectation.

Customer satisfaction and its measurement play a vital role in any business and service provider in their effort of achieving and improving competitive advantage (Ramlawati & Putra, 2018). Among retail businesses, service quality and the satisfaction of its stakeholders (customer, supplier, employee, and creditor or banker) are the roots of its competitive strength and advantage including retail companies. This is admitted by (Su, Swanson, & Chen, 2016) and (Sulistiyowati & Rofik, 2017) who state that retail business in the form of minimarket proliferates and can be subject to globalization process at any time. The visible impact is price fluctuation. The retail market sells goods needed by the community, and these goods are mostly importedor use imported raw materials. Research on service quality at retail of minimarket type has been conducted by several researchers using SERVQUAL instrument.

Naik, Gantasala, and Prabhakar (2010) have conducted a study in Hyderabad, India and Sulistiyowati and Rofik (2017) have researched customer satisfaction of retail markets in Sidoarjo, Indonesia. They use the SERVQUAL instrument to measure the five dimensions of service quality, namely tangibles, reliability, responsiveness, assurance, and empathy. They find that the responses of retail market customers to all of these items and dimensions indicate that there is a significant, negative gap. Four represent the aspects with highest holes, followed by reliability, responsiveness, assurance, and tangibility.

Research by Najib and Sosianika (2017) is conducted in modern retail markets in Bandung, Indonesia and Izogo and Ogba (2015) conduct a study in Nigeria using the SERVQUAL instrument. They find that there is a service quality gap between customer perception and expectation. The findings confirmed what Parasuraman find in 1985.

Based on the results of the studies explained above, it is interesting to study the response of customers of the retail company to the service quality. As an illustration of the data, Table 1 describes the development of many retail companies in Makassar, Indonesia. There are two retail companies with minimarket franchise concepts that have been operating since 2013 - 2017, namely Alfa (Alfa Mart / Alfa Midi) and Indomart.

Table 1: Retails Operating in Makassar Municipality (2013-2017)

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Source: Office for Industrial and Trade Affairs of Makassar Municipality (Disperindag Kota Makassar), 2017

The retails existing in 2017 consist of 175 units of Alfa Mart (around 34.9 percent), 175 units of Alfa Midi (approximately 34.9 percent) and 151 units of Indomart (about 30.2 percent). According to data from the Central Bureau of Statistics, The city is divided into 14 districts. The concentration of retail location distribution is foundin densely populated areas with many settlements. Concerning this, the region with the fewest number of retails is Ujung Tanah District, and Panakkukang District has the most number of retails among other districts in Makassar Municipality.

Service quality is at the core of the survival of a company. The quality revolution movement through a more integrated management approach becomes a demand that should not be ignoredif a company wants to survive and develop especially in companies engaged in the retail business. The increasingly fierce competition requires retail industry players to always indulge consumers by providing the best service. Customers will look for products in the form of goods or services from companies or competitors that can provide the best service to them. At least there are many common problems faced by modern retail companies in offering quality services. Parasuraman, Zeithaml, and Berry (1985)states that the question that is usually met by modern retail companies relating to the quality of services provided by the company to its customers is a service system that is too long in the process. Besides, service problems in retail in Indonesia are often found queuing price tags and prices paid as well as circumstances (Tempo, 2015) and (Bangkapos, 2018). Apart from that, human resources owned by retail companies that still do not realize the importance of customers for the sustainability of the company, knowledge about product information is minimal as well as attitudes and behaviors that are responsive to every problem faced by customers when shopping to correct this problem, retail companies need to make optimal service system improvements (Aditya, 2012). One of the steps that are still used today is service improvement following the SERVQUAL model by Parasuraman et al. (1988). As explained above, SERVQUAL Instruments are builton five main dimensions, namely tangible, reliability, assurance, empathy. This research wants to investigate further through the field strength model (Quadrant Graphic) to find gaps that occur for the development of retail companies so that we can know what dimensions need to be improved as a form of competitive strategy to create sustainable customer satisfaction.

2. Literature Review

2.1. The Importance of Service Quality

The service quality in a business network is one of the spearheads of customer satisfaction that increasingly diverse needs. In competition, the company's ability to meet customer needs and joy is an essential thing (Hoa Nguyen, Jeong, &Chung, 2018), Company's ability to meet customer needs itself is greatly influenced by the level of quality and quality of services provided by the company to customers, which includes all quality entities in the form of product quality and service. Therefore if there is a gap between the level of quality provided bythe company and the actual needs of the customer, there will be a problem of customer dissatisfaction which is a quality problem that must be resolved by the company because it can result in the loss of customers owned by the company (Kim, 2013).

Parasuraman has developed one of the references to service quality, Zeithaml, and Berry the model that has long been known and is still used today is SERVQUAL or service quality (Parasuraman, Zeithaml, & Berry, 1988).

2.2. SERVQUAL Dimensions

In 1985 Parasuraman et al. builds a model about services quality based on five fundamental dimensions. These dimensions consist of1). Tangibles: This element refers to everything tangible and affects the quality of service to customers. For example, clean and tidy customer waiting rooms, facilities for customers, physical staff and employee, room ambiance, decoration, interior, etc.2). Reliability: This element refers to the company's ability to provide services accurately to its customers. At this stage, the company's products and services can be accessed by customers anytime and anywhere. The company offers itself at all times to customers. For example, cellular operator companies provide signals in various areas where their customers are located.3). Responsiveness: This element refers to the company's actions in responding to customers promptly. This level of responsiveness can be tested with questions, such as how much the company's curiosity is at the level of difficulty experienced by its customers, how capable the companies to help customers get out of the problem, how responsive the company is to complaints and customer complaints, and so on.4). Assurance: This element refers to the company's ability to foster trust in the customer's eyes through the friendliness and knowledge of the staff in service.5). Empathy: This element refers to the company's attention to its customers. The practice of corporate understanding can be realized by listening to customers, helping customers find solutions, understanding what becomes anxieties and anxieties of customers, solidarity with customers, not leaving customers, etc.

2.3. Customer’s Satisfaction

Tight competition business environment today, the organization must be oriented to the consumers, or it could be fatal. Only the consumers-oriented organizations and those who could provide superior value to the consumers will be able to survive in the very tight competition business arena. Also, consumers who are satisfied tend to have been less affected by the competitors, less sensitive to the price and their loyalty last longer (Ramlawati & Putra, 2018) and (Murdifin, Pelu, Putra, Arumbarkah, Muslim, & Rahmah, 2018). Consumer Satisfaction is the feeling of being happy or disappointed someone who appears after comparing the performance of the product that is thought of the expected return (Armstrong, Adam, Denize, & Kotler, 2014). Customer or consumer satisfaction relates to the quality of the products offered by them. The achievement of consumers has their respective levels depending on what they get (Kim & Shim, 2014), (Kim & Yoo, 2015) and (Zehir & Narcıkara, 2016).

2.4. Hypothesis Development

This instrument has been applied in many studies on marketing, either modified or unmodified. (Kitapci, Akdogan, & Dortyol, 2014) Also, use the revised version of this instrument in their study in Slovakia. The modification is done by adding and or reducing the dimensions initiated by Parasuraman, Zeithaml, and berry (1988). Kitapci, Akdogan, and Dortyol (2014) modify multiple aspects by giving new dimensions added such as a career, care, tangible, understanding, assurance, and timeliness. Using 369 samples, he revealed that the empathy and assurance variables were the variables that had the most significant influence on customer satisfaction compared to another variable.

Graham Saunders in 2008 made SERQUAL approach in his research. Saunders uses dimensions of PAKSERV, a modified SERVQUAL developed by (Raajpoot, 2004) to study the respondent’s perception of service quality. Raajpoot argues that the dimensions of SERVQUALneed to be adjusted to particular cultures, and should not be viewed as generic dimensions. Such aspects as tangibility, reliability, and assurance are still used, yet the responsiveness and empathy dimensions are replaced with Muslim culture-based dimensions which are imbued by the religion of population majority in His object studies, such as sincerity, formality, and personalization. Sanders revealed that under PARSERV is a valid measurement for measuring service quality, including dimensions of SERVQUAL which consist of assurance, tangibility, reliability, responsiveness, and empathy.

On the contrary, other researchers such as (Tan & Kek, 2004) use unmodified SERVQUAL instrument in their research on the gap between expectation and perception of private university’s service quality in Singapore. The same is applied by (De Oliveira & Ferreira, 2009) in his research at São Paulo State, Brazil. Tan and Kek (2004) and De Oliveira and Ferreira (2009), both of them, state the same thing that SERVQUAL has a significant effect on satisfaction.

In summary, we parse some of the reviews in the literature review as shown in Table 2. This review also leads to the construct of hypothesis development.

Table 2: Summary of Literature Review

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The hypothesis that is built states that the SERVQUAL variable consists of:

H1: There is a match between expectations and consumer perceptions related to the dimensions of tangible so that it has an impact on retail customer satisfaction

H2: There is a match between expectations and consumer perceptions related to the aspects of Reliability so that it affects retail customer satisfaction

H3: There is a match between expectations and consumer perceptions related to the dimensions of responsiveness so that it has an impact on retail customer satisfaction

H4: There is a match between expectations and consumer perceptions related to the aspects of assurance so that it affects retail customer satisfaction

H5: There is a match between expectations and consumer perceptions related to the elements of empathy so that it affects retail customer satisfaction

Therefore the research framework formed in this study to achieve the research goals and objectives is as follows:

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Figure 1: Conceptual Research

3. Research Method

3.1. Research Design and Measurement

This research chooses to use the unmodified instrument since it aims only to discover customer’s opinion regarding the quality of services they receive. Each respondent is asked about their expectation in every dimension indicator and their perception of what they feel or receive from the retail salesclerks (Perceived). They are also asked about the weight based on the importance of each dimension in the respondent’s opinion. To conclude, the gap between perceived and expected services is sought. Then, this gap is multiplied by the weight to obtain the final score. Each indicator in the questionnaire uses Likert scale 1 – 7, where rating 1 shows least desired or very bad and score seven shows highly desired or excellent. The term service quality means the extent to which the perceived quality matches the expectation (SQ (quality signal) = P – E). If it results in a negative gap, this means the quality given has not to match what the customer expects. It also indicates the need for improving the relevant dimensions of service quality.

SERVQUAL model in with 22 indicators. The distribution is indicators for Tangible such us Building Condition, Product Layout, Parking lot and Lighting Condition. Reliability dimension such us: Salesclerk Intellectuality, Information systems Electronics, Salesclerk can give Consumer satisfaction for the first meet, Just in time Product service, On time service. Responsiveness dimensions such us: Salesclerk Services Speed, Salesclerk Busy Condition, Fast Response and Serve complaints. Assurance dimensions such us: Credibility and security, The accuracy of Billing Payment, willingness to serve and Friendly with customers. Empathy dimensions: Salesclerk have much time to help, Peak Load time condition, Problem Solving adjustments, Salesclerk can guide the customers and Salesclerk know customer needs.

3.2. Data and Analysis Approach

The sampling technique in this study used purposive random sampling. Because we don't know exactly what the total population. The Research method uses a quantitative descriptive approach, the analytical tool used is a cartecius diagram and a quadrant graph using Microsoft Excel. The object of this study included several retail companies operating in Makassar, Indonesia such as Alfa Mart, Alfa Midi, and Indomart which as a whole according to data in 2017 as described in Table 1.

3.3. Sampling

There were 501 units spread across 14 sub-districts in Makassar City, Indonesia. We do not know the total population so that it uses a purposive random sampling approach by taking some minimarket samples from 14 sub-districts totaling 36 Minimarkets in each sub-district. So the number of examples of the per-unit minimarkets that we observed to represent each minimarket unit amounted to 4-5 samples per unit store. So that the total number of samples we use in this study is 150 samples. We deliberately set limits on the use of sample groups that we specialize only in the household group. Other than that, this study intentionally gave a specific sample limit to housewives with various justifications based on several reviews related to consumer behavior in the retail market like research done by (Putra, Said, & Hasan, 2017) the results of his research state that impulsive buying in market trends are carried out by women. The results of his research are also more likely to use a sample of homemakers. As well as some basic research that expresses such opinions as Reilly (1929) and Rook (1987).

4. Result and Discussion

4.1. Result of Analysis

The effect of the respondent’s response tabulation is presenting in Tables 3. The gap analysis is show in Table 4. The said tables become the object of study in this research.

Table 3: Data on Respondent’s Expectation VS Perception of Service Quality by Dimension

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Source: Results of data processing

Table 4: The gap between Perception and Expectation for Service Quality Dimensions

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Source: Results of data processing

Based Table 3, it is presented the respondent’s perception of the service they receive. It is found that what they feel most notably is assurance, wherein also included are such indicators as sufficient product information, actual sales note, polite and friendly salesclerks, and halal, lawfully permitted, and non-expired products. The reliability dimension then follows it. This reliability dimension includes several indicators, namely: open-closed hour as informed, and employees have the knowledge and ability to serve customers, employees can maintain their customers, employees can explain in detail the product.

The dimension they think have the least contribution to service quality is the Empathy dimension. This empathy has some indicators. Namely, the employee is patient in serving customers, and salesclerk is passionate to help even when they are busy, salesclerk informs products to the customer other than what they buy, the cashier is patient and greets the queuing customers, and greets politely any customer entering the shop. The second least dimension is responsiveness. This responsiveness is built from several indicators, namely: employee quickly responds to a customer’s request, the existing cashier is competent to serve customers, salesclerk is reasonably agile, and salesclerk can serve customers fast. Based on the observation, this responsiveness dimension is weak since customers generally come to ask for service at certain hours. They do not occur in a relatively evenly-distributed number throughout the working hours (from 08.00 pm to 21.00 pm, even during the weekend). The peak load is generally between 11.00 am – 12.00 am and 19.00 pm – 20.00 pm. And at other times, the number of customers asking for service is usually lesser. This peak load condition often requires customers to be patient, waiting for their turn to get served.

Then next in table 4, the gap or difference between perception and expectation of each dimension of service quality is presented. In Table 3, the aspects with a definite gap (perception > expectation) are reliability and assurance. This gives an impression that customers feel safe to shop at retails because all products offered there have their quality guaranteed, are lawfully permitted to be distributed, halal and non-expired. What they promise in the brochure are all fulfilled satisfactorily by the Retail Supervisors and company.

For other dimensions, namely tangible, responsiveness and empathy, the gap indicates a negative sign. For a tangible aspect, the difference is triggered mainly by parking facility which is deemed inadequate. The available parking lot is limited, and the customers generally use the car. Only a few of these customers use the motorcycle. Due to this limited parking lot, some customers should sometimes park their cars on the roadside. This phenomenon can disturb the flow of other vehicles in front of the related retails. However, other aspects including supporting facilities such as air conditioner and room lighting are deemed as having been adequate by the customers. The gap created by responsiveness and empathy is triggered by the fact that customers come to ask for service at certain times, as described earlier. They are not relatively evenly distributed during the service hours.

Nevertheless, customers can understand and accept the said condition. They are aware that they generally come at the same time. In general, customers can be patient to wait for their turn to be served. In Table 4, it can also be seen that based on customer’s perception, the greatest weighted dimension is assurance (21 percent) and the least is empathy (19 percent). The other three aspects have equal weights, each at 20 percent. Concerning this customer’s view, the assurance dimension constitutes the dimension of service quality to which the greatest attention is paid by the supervisors, staff, and employees, particularly the retail salesclerks. The weighted mean gap of this assurance dimension is +1.8211. This means the service received from the perspective of this assurance dimension exceeds the customer’s expectation. The same applies to reliability dimension, where it has a positive mean weighted gap of +0.8200. This reliability dimension, despite its relatively small mean gap, has exceeded the customer’s expectation.

On the contrary, the dimension with the greatest negative gap is empathy, reaching a weighted mean of -2.0615. This means what is found in reality is far below the customer’s expectation. In Table 4, the indicators of empathy dimension with the most significant gap are the cashier’s attitude who is impatient when serving customers during the peak-load time. It is then followed by the tangible dimension. The indicators of tangible dimension which is deemed as the least adequate are the parking facility. Visually, the difference between the customer’s perception and expectation to each service quality dimension is presented in Figure 2.

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Figure 2: It can be clearly seen the dimensions with positive and negative gaps.

Source: Results of data processing.

The histogram graphic visualizes the comparison between customer’s perception and expectation of service quality dimensions as presented in Figure 3.

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Figure 3: Comparison of graphs between perception VS expectations

Source: Results of data processing

Based on Figure 3, it can be seen that the dimensions with a definite gap, i.e., as indicated by the histogram graphic with higher perception than the expectation, are reliability and assurance.

If the data on means of dimension for expectation and perception in Table 4 are presented into the Cartesian diagram, then a mapping of strategy to improve service quality at Retails will be obtained. The cartesian picture has four quadrants, namely A, B, C and D as shown in figure 4.

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Figure 4: Cartesian Diagram of Gap of Service Quality Dimensions

Source: Results of data processing.

Quadrant A is at the upper left corner of the diagram, Concentrate Here. This means the quality dimensions in this Quadrant A should receive the most significant attention from the supervisors (priority to be improved) since customers have high expectation of it. However, in reality, the perceived quality is less than expected.

Quadrant B is at the upper right corner of the diagram, Keep up with the excellent work. In this quadrant, the perceived quality is relative as expected.

Quadrant C is at the lower left corner of the diagram, Low Priority. In the customer’s opinion, this dimension is not too urgent to be improved. This is because the perceived quality is more exceptional than expected. Customers think that what they receive has been adequate.

Quadrant D is at the lower right corner, Possibly Overkill. This means the supervisor’s attention and resources allocation exceed the necessary since the dimensions in this quadrant D can be ignored in the customers’ perspective. The dimensions in this Quadrant D is not too important for customers about their satisfaction with the service they receive. In Figure 4, it can be seen that the dimensions in Quadrant A are tangible (1) and empathy (5). In Table 4, both dimensions have the greatest negative gap values. However, both are highly important in the customers’ perspective. The tangible dimension examples include the need for representative retail building, complete and proper equipment for displaying products and adequate parking facility. For empathy dimension, supervisors need to be friendly and agile. The salesclerks can be served quickly and satisfactorily.

No dimension is in Quadrant B currently. And the ones in Quadrant C are reliability (2) and assurance (4). Both aspects are not demanded by customers to be improved since their quality has been adequate. The current realization is thought to have been satisfactory. Therefore, supervisors do not need to prioritize their quality improvement.

Quadrant D shows the position ignored by customers because, in customers’ opinion, the realization of these dimensions has relatively been appropriate, or even exceeds their expectation. In Figure 4, the aspect in Quadrant D is responsiveness (3). This dimension has been satisfactory, and some also think it has matched their expectation. Therefore, it is not urgent to improve it, yet its accomplishment level needs to be maintained to prevent customers from being disappointed in the future.

4.2. Discussion

Earlier data analysis indicates that the retail’s strength element consists of reliability and assurance dimensions. And the weak parts are tangible and empathy dimensions. From the perspective of customer’s expectation as retail service users, the reliability indicator which receives the most attention from customers is the retail employee’s (salesclerk) ability and knowledge to serve the customers who are about to shop. Furthermore, the indicator which receives the least attention is the availability of an information system which can be used to exchange information electronically. Next, the assurance indicator which receives the most attention from customers is the salesclerk can serve customers in a friendly manner. Receiving equally great care is the salesclerk’s willingness to help customers attentively.

Meanwhile, the indicator which receives the least attention is the accuracy of sales note issued by the cashier. Some customers believe that the sales note issued by cashier accurately reflects the goods they buy. Nevertheless, the cashier should ensure that the bill they make accurately reflecting the products purchased by customers.

This is entirely different as compared to (Orel & Kara, 2014) research which finds that the most dominant dimension in service quality is the responsiveness dimension. The aspect with the most significant contribution is the salesclerk’s ability to give fast response to customer’s request. For a tangible size, customers have no issue since the parking facility is reasonably vast and products are attractively displayed. Meanwhile, (Meuter, Ostrom, Roundtree, & Bitner, 2000) research finds that the dimension with the dominant influence on service quality is reliability. The indicator with most control is salesclerk’s ability to answer and explain what the customers ask. And even different is the finding of (Solomon, Dahl, White, Zaichkowsky, & Polegato, 2014) research which compares the dimensions with the most influence on the retail market. They find that the aspect with the dominant impact on modern retail’s customers is tangible. And in the traditional market, it is responsiveness (personal interaction) dimension. The physical appearance of modern retail makes customers like to stay longer to shop at modern retail.

Meanwhile, in the traditional market, it is all about social relations. The price can be bargained, and for those who have been patronage, it is possible to have the goods and pay for it later. Finding such a phenomenon at modern retail is impossible.

From the perspective of this research limitation, for tangible dimension, the dimension of the customers most care about is the adequacy and security of parking facility. And the indicator which the retail management has attended to is the shop room hygiene. Customers take neat and hygienic shopping room seriously. For the responsiveness dimension, the index receiving the most attention from customers is the salesclerk’s ability always to be willing to serve well. And the one receiving the least attention is the employee’s attitude who never think they are too busy to give the demanded service. What they consider important is the employee’s constant readiness to serve every time they come to ask for it. For empathy dimension, the indicator the customers most care about is the salesclerk’s willingness to provide information of products other than they buy to all customers shopping at the retail. And the one receiving the least attention is the salesclerk willingness to be patient in providing service to customers individually. What customers think essential is that supervisors and salesclerks are always ready to serve patiently every time they come to shop with no discrimination whatsoever regarding the social status of the customers.

Customers’ opinion for each dimension by the service they perceive is presented in the following description. For reliability dimension, what customers most care about is that the retail’s supervisor can give satisfactory service since the first time. What they least care is that the supervisor can give certain service as scheduled previously. For assurance dimension, what customer most appreciate is the assurance that the salesclerks at the relevant retail can and be willing to serve customers as best as they can. What they least appreciate is the salesclerk’s ability to give answers to all questions asked by customers. For tangible dimension, what customers appreciate the most is that the building, product display and parking facility at the retail are good and adequate. What they appreciate the least is lighting in the building. What is important for them is that they can shop conveniently and the products can be seen well. For the responsiveness dimension, what the customers are the most is the salesclerk’s agility to provide the best service at the relevant retail. What they are the least is that the salesclerk never thinks they are too busy to provide services. For customers, it is important that they can serve well every time they visit the shop. For empathy dimension, what the customer care the most is that the salesclerks at the retails always have time to provide information on the product they supply to the customer. Finally, what they are the least is the salesclerk’s ability to provide guaranteed service to customers individually at peak load time.

5. Conclusion

The application of the SERVQUAL method that was developed by Parasuraman et al. (1985) proved that until now it was still relevant to measure the extent of customer satisfaction concerning implementing service quality. The managerial implication, of course, is that the results of this study are useful for retail industry players especially for the national scale retail industry in Indonesia such as Alfa Mart, Alfa Midi, and Indomart to pay attention to several important aspects in improving service quality. Besides this research, it also provides an overview of the academic world in the field of marketing concerning developing conceptual models and varied testing from the results of previous studies. This study led us to three essential principles in improving service quality to strengthen customer satisfaction in a retail company in Indonesia further. First Priority, Improve the handling of aspects related to tangible and empathy dimensions. The Tangible element is an element that can be seen and felt directly. This element is the first awareness for consumers, but the empathy element is an element that can be said as an intangible element which is an elusive element but can form a particular paradigm for consumers whether they are satisfied or dissatisfied. Mastery of information about products and also the readiness of salespeople in overcoming every problem for consumers is an essential aspect as a force for the retail industry in an increasingly fierce era of competition. The second Priority, Improve the achievement in the responsiveness dimension, despite the current result having been as what the customers expect and third priority, Maintain the aspects related to reliability and assurance dimensions. The attention is focused on the effort of maintaining what has been achieved to prevent them from being more impoverished than they currently realize. The current achievement is thought to have exceeded customers’ expectation.

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