Servqual Measurement of Banglalion Wimax Limited

A Report

On

Measuring the Service Quality of Banglalion Wimax Limited

Course name: Service Marketing

Course code: MKT-4203

Prepared For

Sharif Mohammad Khan

Assistant professor

Business administration Discipline

Prepared by

MD. Mohiuddin Rownak

080303

Ibtihaj Samad

080309

Tafrin Farzana

080315

Management and Business Administration School

Khulna University

Khulna

March 20, 2011

1

Abstract

In today‟s world the need for data is humongous, and to get the complete access in this world of data the need for high data throughput (broadband) is increasing day by day. In order to fulfill the need for high data throughput (broadband) Wimax service comes into action. The activity of the Wimax service provider Banglalion Wimax Limited is completely identical to the activity of a perfect service organization. This study is intended to identify the service quality of Banglalion Wimax Limited. The study has taken the help of the SERVQUAL model in its purpose. Ultimately in the study it was found that in all five dimensions of SERVQUAL model, Banglalion Wimax Limited fails to keep pace with customers‟ perceived expectation level. It is expected that the study will point out some field of improvement for Banglalion Wimax Limited regarding the expectation and satisfaction level of the customers in order to improve their service delivery process in order to make the customers satisfied with their service.

2

Introduction

Worldwide Interoperability for Microwave Access, or WiMAX for short, is a 4th generation open standard that seeks to serve users' increasing demands for high data throughput (broadband) services such as streaming media on the internet, live video conferencing, and mobile TV on computers as well as handsets and PDAs. WiMAX has been launched into the market of Bangladesh for the fulfillment of the peoples‟ demand for high data throughput (broadband) service in a very cost effective manner in 2010.

Like all the services providers in different industries it is the core requirement of the Wimax service providers to satisfy the customers to upmost possible degree in order to make the customers satisfied. Customer satisfaction is the feeling or attitude of a customer towards a product or service after it has been used. Customer satisfaction is a major outcome of marketing activity whereby it serves as a link among the various stages of consumer buying behavior. For instance, if customers are satisfied with particular service offerings after its use, then they are likely to engage in repeat purchase and Try line extensions (East, 1997). Customer satisfaction is widely recognized as a key influence in the formation of customers future purchase intentions (Taylor & Baker, 1994). Satisfaction and service quality are often treated together as functions of customer‟s expectations and perceptions. Customer‟s satisfaction is determined by customer‟s perception of quality, expectation and preferences (Barsky, 1995).

3

Literature Review

Service Quality

Customer perceptions of quality, expectations, and preferences determine the Customer satisfaction (Barsky, 1995, Ch. 2). In order to manage true customer satisfaction companies need to gain service quality not only by eliminating the reasons for direct complains but it is also required for them to provide their services with exceptional, attractive quality to provide the sense of fulfillment to the customer. So, research for measuring customer satisfaction is often closely related with the measurement of service quality (Anderson and Sullivan, 1993; Cronin and Taylor, 1992; Bitner and Hubbert, 1994; Taylor and Baker, 1994; Rust and Oliver, 1994; Levesque and McDougall, 1996).

Quality is the most important factor influencing the customer„s buying decisions. Moreover, it has strategic benefits to contribute to market-share and return on investment (Anderson and Zeithaml, 1984; Philips, Chang and Buzzell, 1983) as well as in decreasing manufacturing costs and improving productivity (Garvin, 1983).

Service quality has been reported as having apparent relationship to costs (Crosby, 1979), profitability (Buzzell and Gale, 1987; Rust and Zahorik, 1993; Zahorik and Rust, 1992), customer satisfaction (Boltan and Drew, 1991; Boulding et al, 1993), customer retention (Reichheld and Saser, 1990), behavioral intention and positive word of mouth. Parasuraman et al. described service quality as: the ability of the organization to meet or exceed customer expectations. Customer expectations may be defined as the desires and wants of consumers i.e. what they feel a service provider should offer rather than would offer (Parasuraman, Zeithaml and Berry, 1988).

Therefore, definition of service quality focuses on fulfilling the customers‟ needs and requirements, and how well the service delivered matches the customers‟ expectations regarding it. Recently, greater emphasis has been placed on the need to understand the role of expectations (Pitt, Jeantrout, 1994), given the fact that consumer‟ expectations of quality are increasing (Dotchin and Oakland, 1994), and people are becoming more discerning and critical of the quality of service that they experience.

4

SERVQUAL

The SERVQUAL instrument (refined in 1988, 1991 and again in 1994), was first developed for the measurement of service quality by Parasuraman et al.in 1985. From that time on this instrument has become one of the most instrumental in the service quality domain.

The five SERVQUAL dimensions are a specific representation of the core criteria those customers utilize while evaluating service quality. It is reasonable to assume that consumers would consider all five criteria to be quite important (Parasuraman, 1988). It was developed to measure perceived service quality as the key output variable and in its finalized form it has 22 pairs of Likert-type scales. The first 22 items