Characteristics of Service

What exactly are the characteristics of a service? How are services different from a product? In fact many organizations do have service elements to the product they sell. Kotler et al. (2005) give the characteristics of a Service as flowing:

No transferred Ownership characteristics of a service? How are services different from a product? In fact many organizations do have service elements to the product they sell. Kotler et al. (2005) give the characteristics of a Service as

Intangibility How do you measure service? In a restaurant, the dish can be measured, but the efforts gone in making the same dish by two different chefs cannot be measured from the customer end. Same goes for large service corporates like Accenture and Infosys. The time and effort gone for giving service to the customer is intangible. Both ownership and intangibility are old school differences between goods and services.

Involvement of customer measure service? In a restaurant, the dish can be measured, but the efforts he involvement of customer as well. In services involvement of customers is much more than in products. For example – ATM’s are services wherein customer has to use the machine. The same goes for vending machines as well as for self service restaurants. Today ice cream chains like Hokey pokey and food chain like Subway have more than 50% involvement of customer where the customer gets to decide the ingredients they want in their ice cream / Sub.

Quality of customer measure service? In a restaurant, mass manufacturing means uniformity. However, services involve a lot of manual labor due to which the quality may vary each time. Uniformity in services is a factor which each service owner tries for. For example – The major challenge of food chains like Subway, Pizza

hut and dominos is to give the same quality over and over again, whereas in local restaurants the quality of food may vary time to time from the same restaurant.

Evaluation of services is tougher service? In a restaurant, mass manufacturing involvement of customer is maximum, evaluation of different services becomes tougher. For example, uniformity. However, services involve a lot of manual labor due to which the quality may vary each time. Uniformity in services is a factor how a barber cuts your hair.

Inventories are absent is tougher service? In a restaurant, mass manufacturing involvement of customer is maximum, evaluation of different services becomes tougher. For example, evaluation of different services you order it. The raw material and the chef might be present. But the production does not begin unless and until there is a customer to consume the service.

Time is very important in service? In a restaurant, mass manufacturing involvement of production and consumption is at the same time, time is a very important difference between goods and services. The keyword here is ere is a customer should be no delay in providing the service. Thus the cab should arrive on time, the food should be prepared by time and the trains should run on time.

Thus the difference between goods and services is base on many different factors. These factors are become more and more acute as the services sector rises in demand.

Kotler et al. (2005) state that services have a number of characteristics which differentiate them from goods and have implications for the way they are marketed. A company must take into account five service characteristics when designing marketing programs. These characteristics are often described as intangibility, inseparability, variability, perishability and lack of ownership (Malhotra, 2005). Words have meanings quality and can be used in many ways. Jobber, (2004) identified five ways to understand the concept of quality

2.4.3.

tangibl

technical quality and functional quality of service, in addition to a number of other factors such as tradition, oral, pricing policy, PR).

In 1985, Parasuraman, Zeithaml and Berry created SERVQUAL model to assess the quality of services through a series of steps and focus on the concept of perceived quality. Its described how to be provided or how customers receive quality technical. The perceived quality objectively than the other concepts of quality through the research methods on different target groups, the researchers sought to understand the essential characteristics that a service provider needs to improve service quality.

They found that those in the audience were given the same standard. Based on the analysis, they build ten criteria to evaluate the quality of service. Later, they found that the overlap between the ten criteria, so customers can only distinguish five criteria.

The perceived quality of service are drawn from the attitude of consumers towards a particular product or service.

Service quality difference between reality and expectations of consumers.

Therefore, creating a good method to assess the quality of service and to understand consumers want any kind of service is very useful. We can evaluate the quality of service based on five criteria:

+ Facilities + Credibility + Enthusiasm + Assurance + Empathy

To gather information on the expectations and perceived by consumers, the researchers conducted a survey to provide a complete system scales better. For example, the survey asked about the expectations of consumers in a particular field, categorized according to the scale from 1 to 10, 10 being completely agree, one is absolutely opposed. Then, with a similar classification system, this time asking about perceived by consumers of services. There are two systems above, we can calculate

the deg

through reliability testing, factor analysis and regression to determine the components, evaluate the reliability and value of it. Research results show that the determinants of quality retail banking services are the guarantee / empathy, efficiency, reliability and confidence, a combination of SERVQUAL and BSQ.

Morales et al. (2011) studied the banking services quality in Canada and Tunisia. The study aimed to compare customersvalue of it. Research results show banks in Tunisia and Canada. They build a service quality scale for satisfaction and customer loyalty. Data were collected by questionnaire from two convenient sample groups of bank customers (n1 = n2 = 250 in Canada and 222 in Tunisia). Service quality is measured by the five elements: tangible, reliability, responsiveness, assurance and empathy. Data were analyzed by factors confirmed, ANOVA and linear regression. Research results show that Canadians are aware of the higher quality of service than the people of Tunisia.

Lymperopoulos&Chaniotakis (2006) studied the importance of service quality in the selection of the mortgage lender. This study aims to provide a deep understanding of customer buying behavior of banks related to the selection process. It provides bank managers with useful insight into the development of high quality relationships with customers. The study reviewed the documents available on the bank selection criteria and the field studies, then identify factors affecting the choice of customers, and the development of relevant management impact. A survey by questionnaire to 1,092 bank customers in Athens. Differentiating factors were identified as the main selection criteria affect the choice of the consumer bank. Bank service quality is the most important factor that customers consider to select their mortgage provider and establish a long term relationship with them. Three other reference element are product attributes, the access and communications.

Herington &Weaven (2007) also explored the impact of online services quality to the level of customer interest and the development of customer relationship. A survey to collect data from a sample agreement convenience of 200 Australian respondents who use online banking. Factor analysis and linear structural model was used to test the models. The study results showed that the quality of online services

affecting the interests of clients, reliability and the development of strong relationships with customers and customer loyalty. However, factors that "efficiency" of quality online services related to trust and also indirectly affect customer relationships through trust. Factor "personal needs" and "the organization's web site," the quality of online services relating to loyalty, including "personal needs" have the strongest impact.

Customer delight no relationship with quality online service, nor a relationship with trust, power relationships or loyalty.

Kari Pikkarainen&TeroPikkarainen (2006) used the model EUCS (End-User Computing Satisfaction) to investigate the satisfaction of users of online banking services. A survey (n = 268) was conducted by sampling convenience. After if exploring factor analysis (EFA), the authors conducted factor analysis confirmed (CFA) with LISREL 8.7 for testing models of online banking services. Analytical results provide three components (content, ease of use, accuracy) from the original model, converted into EUCS2 EUCS model used in the analysis of the satisfaction of the users bank online to individual customers.

2.6. Customer satisfaction

Customer satisfaction is the key to long term success of any organization (Peppers & Rogers, 2005). The application of the knowledge of customer satisfaction is imperative to establishing and maintaining a long-term relationship with customers and long-term competitiveness

There are many different definitions of customer satisfaction. Many researchers believe that satisfaction is the difference between customer expectations and perceived reality. According to Hokanson (1995), satisfaction or disappointment after consumption, are defined as customer reaction to the evaluation by perceived differences between expectation before the consumer to feel the reality of consumer product after it.

Waarden (2008) suggests that satisfaction may be associated with feelings of acceptance, happiness, help, excitement, joy. According Waarden (2008, P.89),

"Customer satisfaction is an overall attitude of the customer for a service provider, or

an emotional reaction to the difference between what customers predict before and what they receive, to meet some of the needs, objectives or desired. " According Zeithaml&Bitner (2000), customer satisfaction is the evaluation of the customer about a product or service has met the needs and expectations of them. Kotler (2005), defines "satisfaction as a sense of satisfaction or disappointment with the results of a comparison of the actual receiving of the product (or result) in connection with these forward Their wait ". Customer satisfaction is the customer base of its few insights for a product or service that forms the evaluations or subjective judgments. It is a form of psychological feeling after the needs of customers are met. Customer satisfaction is formed on the basis of the experience, particularly when shopping accumulation and use of the product or service. After the purchase and use of the product the customer will have the comparison between reality and expectations, which assess satisfaction or dissatisfaction.

So the feeling of comfort or maybe disappointment arising from the buyer to compare the actual benefits of products and expectations of customers are satisfied or not after purchase depends on whether they are comparing the actual benefits of the products and their expectations before purchase. Product concept here is to understand not just an ordinary material object that it includes services. This definition clearly shows that satisfaction is a comparison between the actual benefits felt and expectations. If the actual benefits are not as expected, the customer will be disappointed. Even if the actual benefits expected to meet with the customer set will be satisfied. If the benefit is higher than the expectations of customers, it will generate higher satisfaction phenomenon or is satisfied beyond expectations.

For bank that based customer oriented, the customer satisfaction is both a target and is a major factor in the success of the bank. In the context of the current competition, the customer satisfaction is very important to the development of the bank. To achieve high levels of customer satisfaction is very important to a bank, because customer satisfaction greatly affect their loyalty to the bank. If customers are satisfied with the products and services provided when used, the more likely they will come back transactions and introductions to others and vice versa.

2.7. Behavior intention

Behavior intention is usually considered as intention to repurchase; price sensitivity; and intention to recommend the service to third parties (word-of-mouth promotion). These dimensions are more frequently used as loyalty measures in the service literature (Jones and Taylor , 2007). Stuart and Tax (2004) propose that satisfaction influences costumers loyalty affects the profit value of the company.

Reichheld and Sasser (1991) claimed that high levels of costumer’s satisfaction would generate high levels of retention, as they described in a retail bank case. it increased clients’ retention rate in 5% and boosted profits up to 85%.

In short, customer satisfaction has significant influence in the creation of the purchasing power of customers in the future. Therefore, banks need to understand what customers want through measures including improved service quality is reasonable that banks need to do.

2.8. The relationship of service quality, customer satisfaction and behavior intention

Customer satisfaction is the customer's evaluation of a product or service meets the needs and expectations in component form SERVQUAL has been widely used (Reichheld et. al., 1990; Tsoukatos et. al., 2010; Ladhari et. al., 2011). It seems little doubt that SERVQUAL is a tool commonly used to evaluate the quality of service, not only was accepted by researchers, but it can also be used to measure the quality of services in many different areas _ perhaps more than any method other quality assessment. It is used in many fields, many branches and organizations in many different countries: USA, UK, Singapore, Korea, Malaysia, Saudi Arabia, Kuwait ...

In a nutshell, the theme of "Quality of Service" is increasingly heated because of the close relationship it has on the production cost factor (Crosby, 1979), the profits of the enterprise (Buzzell& Gale , 1987), customer satisfaction (Bolton & Drew, 1991), customer loyalty (Reichheld&Sasser, 1990), or positive word of mouth from customers. Moreover, for the financial banking services, especially retail

services,Vietnam banks have been strengthened, improving service quality, quality of service use as a tool edge effective paintings which form the foundation, developing steadily, surging ahead to meet those requirements, require urgent in the process of regional integration and the world. The results of academic research on this world hope is a useful reference for those working in marketing in the banking sector, although individual banks may also require specific studies to look regularly transparent about their service quality, thereby to work out the most effective marketing strategies.

Some authors suggest that between service quality and customer satisfaction coincide so these two concepts can be used interchangeably. A number of other studies that between customer satisfaction and service quality are two different concepts;

customer satisfaction as a result, the quality of service as the cause; satisfied with forecasts expecting nature, quality of service is an ideal standard. According to Zeithaml and Bitner (2000), service quality and customer satisfaction are two different concepts, while the quality of services focused on specific components of service, customer satisfaction is the concept general.

There is no consensus among researchers about the concept, but the majority of studies suggest that between service quality and customer satisfaction has ties to each other . However, very few studies have focused on examining the explanatory power of the components of service quality on customer satisfaction, especially in the service sector specific (Ladhari, et al. 2011).So, a question to further study the relationship of the factors of service quality to customer satisfaction with a particular field.

Customer loyalty for the brand plays an important role for the success of your business. According to Kotler et al (2005), the cost of attracting new customers can cost 5 times the retention and customer satisfaction a current definition of loyalty is the degree to which a customer can show repetitive behaviors purchasing products and services from one provider, have a positive attitude towards suppliers and intended only use of products and services providers when needed.

Service quality is measured based on the quality gap, denoted Gi = Pi - Ei, between feeling (Perceptions - P) and customer expectations (Expectations - E) for the

quality of their services banks in the current context of Vietnam, according to the quality of SERVQUAL model by developing Parashuraman et al (1991). According to these authors, service quality was assessed according to five criteria: a tangible medium, reliability, assurance, responsiveness, and empathy.

From the theoretical, Quality of service is considered as the gap between service expectations and perceptions of customers using the service (Parasurman, Zeithaml and Berry, 1985.1988) lays present, there are two common models used to service quality evaluation model Gronroos (1984) _ so that service quality is evaluated on two aspects, (1) the technical quality and (2) the quality of function; and model Parasuraman et al. (1985) _ service quality evaluation is based in difference (gap). But perhaps the model Parasuraman et al used more commonly, because of specific, detailed and assessment tools to always be the author and his colleagues tested and updated.

Based on the traditional definition of quality of service, construction Parasuramanda SERVQUAL to assess the quality of services includes 22 dependent variable 5 components to measure the quality of service expectations and perceived

Reliability: The ability to make appropriate service and on time the first time

- When companies promise to do something in a certain time, they will do

- When you encounter obstacles, the company demonstrated concern really wants to take care.

- Company services performed right the first time

- The company provides services as they promised time

- The company noted no errors to occur

Responsiveness: tell the desire and willingness of staff to provide services to customers

- Staff tells you when performing services

- Staff quickly performs services for you The staff are always ready to help you

- The staff never too busy to meet your requirements Assurance: express understanding and gracious staff

- The behavior of employees cause you trust

- Do you feel safe in dealing with companies

- The staff are always welcoming with you

- Employees have the knowledge to answer your questions Empathy: demonstrate care to each individual customer.

- Company special attention to you

- The company has a staff of interest to you

- The company took advantage of you is their mind

- The employee understands your needs

- The company worked on the hour convenience

Tangibles: expressed appearance, attire service personnel and equipment to perform the service.

- The company uses modern technology

- The Company has spacious facilities

- Staff polite outfit

- The document introduces the company's services related to clear, beautiful presentation.

2.9. Hypotheses and research framework

From the theory, this study develops the research model and hypotheses as flowing:

Figure 2.4 Research framework

Table 2.1 Hypothesis

Hypothesis Description

H1 Reliability factor has a significant impact on customer satisfaction

H2 Responsiveness factor has a significant impact on customer satisfaction

H3 Assurance factor has a significant impact on customer satisfaction

H4 Empathy factor has a significant impact on customer satisfaction

H5 Tangibles factor has a significant impact on customer satisfaction

H6 Customer satisfaction has a significant impact on intention behavior

Service Quality

•

Reliability (H1)

•

Responsiveness (H2)

•

Assurance (H3)

•

Empathy (H4)

•

Tangibles (H5)

Customer satisfaction

Behavior intention

(H6)

Chapter 3 RESEARCH METHOD

3.1. Introduction

Hughes and Sharrok (1997) have stated that there are two type of research methodology, including: positivism methodology and interpretive methodology. The differences between these two types of methodology came from the natural of them.

Positivism method is usually used for the macro social phenomenon analysis by the data analysis tools based on the collected data. On the other hands, interpretive research methodology is often applied for micro social phenomenon research.

3.2. Sample design

The target population is customer who is currently using or used retailing service in VietinBank. According to Cooper and Schindler (2011), the important reasons that researchers use methods of non-probability sampling is the savings in cost and time. In addition, the author also reminds that the probability sampling is not always ensuring the accuracy and in some cases the probability sampling is not

The target population is customer who is currently using or used retailing service in VietinBank. According to Cooper and Schindler (2011), the important reasons that researchers use methods of non-probability sampling is the savings in cost and time. In addition, the author also reminds that the probability sampling is not always ensuring the accuracy and in some cases the probability sampling is not