Service quality analysis of two of the largest retail chains with minimart concept in Indonesia
Abstract
Service quality is important because it makes prices more affordable, and also fulfils customer satisfaction. This bolsters trust for customers, and thereby encourages them to keep buying products at retail stores. This research uses Quality Service Analysis method to understand the gap between customers’ expectations regarding service attributes and their perceived satisfaction level. This study also uses the method of Importance and Performance Analysis to determine an attribute’s category. Therefore, it can determine which priorities should be reinforced to improve customer satisfaction. Through SERVQUAL analysis, there are 10 known attributes of each retailer that has the highest gap score. Through IPA analysis, we know that Alfamart has 7 attributes which warrant serious attention from management. This is due to the high expectations of customers on the indicator, and the fact that the management has not managed well. Meanwhile, Indomaret has 9 attributes that warrant serious attention from management.
Keyword : service quality, importance and performance analysis, retailer, customers, customer satisfaction, satisfaction level
How to Cite
Tannady, H., Nurprihatin, F., & Hartono, H. (2018). Service quality analysis of two of the largest retail chains with minimart concept in Indonesia. Business: Theory and Practice, 19, 177-185. https://doi.org/10.3846/btp.2018.18
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Ali Q (2018) Service quality from customer perception: evidence from carter model on Bank Islam Brunei Darussalam (BIBD). International Journal of Business and Management 13 (2). https://doi.org/10.5539/ijbm.v13n2p138
Caruana A (2002) Service loyalty: the effects of service quality and the mediating role of customer satisfaction. Euro- pean Journal of Marketing 36 (7): 811-828. https://doi.org/10.1108/03090560210430818
Fleischman GM, Johnson EN, Walker KB (2017) An explorato- ry investigation of management accounting service quality dimensions using servqual and servperf. Advances in Mana- gement Accounting 29: 91-125. https://www.emeraldinsight.com/doi/abs/10.1108/S1474-787120170000029001
Hair JF, Black WC, Babin BJ, Anderson RE (2014) Multivariate Data Analysis (7 ed). UK: Pearson Education.
Herwanto D, Ikatrinasari ZF, dan Yuliani ENS (2013) Integration of service quality and importance performance analysis met- hod in improving service quality at SMK Plus Laboratorium Indonesia, Karawang. International Journal of Engineering and Applied Sciences 2 (3): 1-8 http://eaas-journal.org/survey/userfiles/files/1%20Industrial%20Engineering_IMPROV-ING%20SERVICE%20QUALITY.pdf
Hoffman KD, Bateson JEG (2011) Services marketing: concepts, strategies, & cases (4 ed). USA: South-Western Cengage Learning.
Kalia P (2016) Service quality scales in online retail: methodo- logical issues. International Journal of Operations & Pro- duction Management 37 (5): 630-663 http://www.academia. edu/32743087/Service_quality_scales_in_online_retail_methodological_issues
Katadata (2017) Berapa Nilai Penjualan Ritel Indonesia? https://databoks.katadata.co.id/datapublish/2017/06/06/berapa-nilai-penjualan-ritel-indonesia
Khare A (2013) Retail service quality in small retail sector: the Indian experience. Facilities 31 (5): 208-222. https://doi. org/10.1108/02632771311307089
Kotler P, Keller KL (2016) Marketing management. UK: Pearson Education Limited.
Liputan6 (2014) Indomaret Vs Alfamart, Pertarungan Sengit Raksasa Ritel Indonesia https://www.liputan6.com/bisnis/read/2062826/indomaret-vs-alfamart-pertarungan-sengit-raksasa-ritel-indonesia
Martilla JA, James JC (1977) Importance performance analysis. Journal of Marketing 41: 77-79 https://www.jstor.org/stable/1250495?seq=1#page_scan_tab_contents
Matzler K, Hinterhuber HH, Bailom F, Pichler J (2004) The asymmetric relationship between attribute-level performance and overall customer satisfaction: a reconsideration of the importance performance analysis. Industrial Marketing Management 33 (4): 271-277. https://www.researchgate.net/publication/222673151_The_asymmetric_relationship_between_attribute-level_performance_and_overall_customer_satisfaction_A_reconsideration_of_the_importance-performance_analysis
McDonald M, Frow P, Payne A (2011) Marketing plans for services: a complete guide (3rd ed). United Kingdom: John Wiley & Sons Ltd.
Mosahab R, Mahamad O, Ramayah T (2010) Service quality, customer satisfaction and loyalty: a test of mediation. In- ternational Business Research 3 (4): 72-80 http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.665.2150&rep=rep1&type=pdf
Naik CNK, Gantasala SB, Prabhakar BV (2010) Service quality (servqual) and its effect on customer satisfaction in retai- ling. European Journal of Social Sciences 16 (2): 231-243 https://lms.ctu.edu.vn/dokeos/courses/KT321/document/LUOC_KHAO_TAI_LIEU/chat_luong_dich_vu_va_su_hai_long_cua_dv_ban_le.pdf
Narteh B (2017) Service quality and customer satisfaction in Ghanaian Retail Banks: the moderating role of price. Inter- national Journal of Bank Marketing 11 (6): 8-10. https://doi.org/10.1108/IJBM-08-2016-0118
Orel FD, dan Kara A (2013) Supermarket self-checkout service quality, customer satisfaction, and loyalty: empirical evidence from an emerging market. Journal of Retailing and Consumer Services 21: 118-129 http://isiarticles.com/bundles/Article/pre/pdf/13614.pdf
Parasuraman A, Zeithaml VA, Berry LL (1985) A conceptual model of service quality and its implications for future research. Journal of Marketing 49 (4): 41-50 https://edisciplinas.usp.br/pluginfile.php/2491773/mod_resource/content/1/Conceptual%20Model%20of%20Service%20Quality%20and%20Its%20Implications%20for%20Future%20Research.pdf
Parasuraman A, B err y L, Z eithaml V (1988) S er vqual: a multiple-item scale for measuring customer perceptions of service quality. Journal of Retailing 64: 26-43 https://www.researchgate.net/profile/Valarie_Zeithaml/publication/225083802_SERVQUAL_A_multiple_Item_Scale_for_measuring_consumer_perceptions_of_service_quality/links/5429a4540cf27e39fa8e6531/SERVQUAL-A-multiple-Item-Scale-for-measuring-consumer-perceptions-of-service-quality.pdf
Perran A (1995) Dimensions of service quality: a study in Is- tanbul. Managing Service Quality 5 (6): 39-43. https://doi.org/10.1108/09604529510796575
Pujawan IN, Mahendrawathi ER (2010). Supply chain management (2 Ed) Surabaya: Guna Widya.
Ruyter K (1997) Measuring service quality and service satis- faction: an empirical test of an integrative model. Journal of Economic Psychology 18: 387-406. https://ideas.repec.org/a/eee/joepsy/v18y1997i4p387-406.html
Seth N, Deshmukh SG, dan Vrat P (2005) Service quality mo- dels: a review. International Journal of Quality & Reliability Management 22 (9): 931-949 https://www.researchgate.net/publication/235286421_Service_quality_models_A_review
Shafiq Y et al. (2013) Impact of service quality on customer satis- faction: a study of Hotel Industry of Faisalabad, Pakistan. In- ternational Journal of Management & Organizational Studies
2 (1) https://www.researchgate.net/publication/259183110_Impact_of_Service_Quality_on_Customer_Satisfaction_A_ Study_of_Hotel_Industry_of_Faisalabad_Pakistan
Tan LH, Chew BC, Hamid SR (2017) Service quality implementa- tion in shaping sustainable banking operating system: a case study of Maybank Group. Qualitative Research in Financial Markets 9 (4): 359-381. https://doi.org/10.1108/QRFM-01-2017-0002
Tannady H, Sitorus T (2017) Role of compensation, organization culture, and leadership on working motivation of faculty member (study case: universities in North Jakarta). IOSR Journal of Business and Management 19 (10): 41-47 https://www.researchgate.net/publication/324136691_Role_Of_Compensation_Organization_Culture_And_Leadership_On_Working_Motivation_Of_Faculty_Member_Study_Case_Universities_In_North_Jakarta
Unhas S, Fernandes A (2013) The mediating effect of service quality and organizational commitment on the effect of mana- gement process alignment on higher education performance in Makassar, Indonesia. Journal of Organizational Change Management 31 (2): 410-435 https://www.researchgate.net/publication/323187959_The_mediating_effect_of_service_quality_and_organizational_commitment_on_the_effect_of_management_process_alignment_on_higher_educa- tion_performance_in_Makassar_Indonesia
Vazquez (2001) Expectations: a comparison standard in me- asuring service quality: an assessment of a reassessment. Journal of Marketing 58 (1): 132-139 http://www.scirp.org/(S(351jmbntvnsjt1aadkposzje))/reference/ReferencesPapers.aspx?ReferenceID=1974850
Yang CC (2005) The refined Kano’s model and its application. Total Quality Management and Business Excellence 16 (10): 1127-1137. https://www.tandfonline.com/doi/abs/10.1080/14783360500235850
Caruana A (2002) Service loyalty: the effects of service quality and the mediating role of customer satisfaction. Euro- pean Journal of Marketing 36 (7): 811-828. https://doi.org/10.1108/03090560210430818
Fleischman GM, Johnson EN, Walker KB (2017) An explorato- ry investigation of management accounting service quality dimensions using servqual and servperf. Advances in Mana- gement Accounting 29: 91-125. https://www.emeraldinsight.com/doi/abs/10.1108/S1474-787120170000029001
Hair JF, Black WC, Babin BJ, Anderson RE (2014) Multivariate Data Analysis (7 ed). UK: Pearson Education.
Herwanto D, Ikatrinasari ZF, dan Yuliani ENS (2013) Integration of service quality and importance performance analysis met- hod in improving service quality at SMK Plus Laboratorium Indonesia, Karawang. International Journal of Engineering and Applied Sciences 2 (3): 1-8 http://eaas-journal.org/survey/userfiles/files/1%20Industrial%20Engineering_IMPROV-ING%20SERVICE%20QUALITY.pdf
Hoffman KD, Bateson JEG (2011) Services marketing: concepts, strategies, & cases (4 ed). USA: South-Western Cengage Learning.
Kalia P (2016) Service quality scales in online retail: methodo- logical issues. International Journal of Operations & Pro- duction Management 37 (5): 630-663 http://www.academia. edu/32743087/Service_quality_scales_in_online_retail_methodological_issues
Katadata (2017) Berapa Nilai Penjualan Ritel Indonesia? https://databoks.katadata.co.id/datapublish/2017/06/06/berapa-nilai-penjualan-ritel-indonesia
Khare A (2013) Retail service quality in small retail sector: the Indian experience. Facilities 31 (5): 208-222. https://doi. org/10.1108/02632771311307089
Kotler P, Keller KL (2016) Marketing management. UK: Pearson Education Limited.
Liputan6 (2014) Indomaret Vs Alfamart, Pertarungan Sengit Raksasa Ritel Indonesia https://www.liputan6.com/bisnis/read/2062826/indomaret-vs-alfamart-pertarungan-sengit-raksasa-ritel-indonesia
Martilla JA, James JC (1977) Importance performance analysis. Journal of Marketing 41: 77-79 https://www.jstor.org/stable/1250495?seq=1#page_scan_tab_contents
Matzler K, Hinterhuber HH, Bailom F, Pichler J (2004) The asymmetric relationship between attribute-level performance and overall customer satisfaction: a reconsideration of the importance performance analysis. Industrial Marketing Management 33 (4): 271-277. https://www.researchgate.net/publication/222673151_The_asymmetric_relationship_between_attribute-level_performance_and_overall_customer_satisfaction_A_reconsideration_of_the_importance-performance_analysis
McDonald M, Frow P, Payne A (2011) Marketing plans for services: a complete guide (3rd ed). United Kingdom: John Wiley & Sons Ltd.
Mosahab R, Mahamad O, Ramayah T (2010) Service quality, customer satisfaction and loyalty: a test of mediation. In- ternational Business Research 3 (4): 72-80 http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.665.2150&rep=rep1&type=pdf
Naik CNK, Gantasala SB, Prabhakar BV (2010) Service quality (servqual) and its effect on customer satisfaction in retai- ling. European Journal of Social Sciences 16 (2): 231-243 https://lms.ctu.edu.vn/dokeos/courses/KT321/document/LUOC_KHAO_TAI_LIEU/chat_luong_dich_vu_va_su_hai_long_cua_dv_ban_le.pdf
Narteh B (2017) Service quality and customer satisfaction in Ghanaian Retail Banks: the moderating role of price. Inter- national Journal of Bank Marketing 11 (6): 8-10. https://doi.org/10.1108/IJBM-08-2016-0118
Orel FD, dan Kara A (2013) Supermarket self-checkout service quality, customer satisfaction, and loyalty: empirical evidence from an emerging market. Journal of Retailing and Consumer Services 21: 118-129 http://isiarticles.com/bundles/Article/pre/pdf/13614.pdf
Parasuraman A, Zeithaml VA, Berry LL (1985) A conceptual model of service quality and its implications for future research. Journal of Marketing 49 (4): 41-50 https://edisciplinas.usp.br/pluginfile.php/2491773/mod_resource/content/1/Conceptual%20Model%20of%20Service%20Quality%20and%20Its%20Implications%20for%20Future%20Research.pdf
Parasuraman A, B err y L, Z eithaml V (1988) S er vqual: a multiple-item scale for measuring customer perceptions of service quality. Journal of Retailing 64: 26-43 https://www.researchgate.net/profile/Valarie_Zeithaml/publication/225083802_SERVQUAL_A_multiple_Item_Scale_for_measuring_consumer_perceptions_of_service_quality/links/5429a4540cf27e39fa8e6531/SERVQUAL-A-multiple-Item-Scale-for-measuring-consumer-perceptions-of-service-quality.pdf
Perran A (1995) Dimensions of service quality: a study in Is- tanbul. Managing Service Quality 5 (6): 39-43. https://doi.org/10.1108/09604529510796575
Pujawan IN, Mahendrawathi ER (2010). Supply chain management (2 Ed) Surabaya: Guna Widya.
Ruyter K (1997) Measuring service quality and service satis- faction: an empirical test of an integrative model. Journal of Economic Psychology 18: 387-406. https://ideas.repec.org/a/eee/joepsy/v18y1997i4p387-406.html
Seth N, Deshmukh SG, dan Vrat P (2005) Service quality mo- dels: a review. International Journal of Quality & Reliability Management 22 (9): 931-949 https://www.researchgate.net/publication/235286421_Service_quality_models_A_review
Shafiq Y et al. (2013) Impact of service quality on customer satis- faction: a study of Hotel Industry of Faisalabad, Pakistan. In- ternational Journal of Management & Organizational Studies
2 (1) https://www.researchgate.net/publication/259183110_Impact_of_Service_Quality_on_Customer_Satisfaction_A_ Study_of_Hotel_Industry_of_Faisalabad_Pakistan
Tan LH, Chew BC, Hamid SR (2017) Service quality implementa- tion in shaping sustainable banking operating system: a case study of Maybank Group. Qualitative Research in Financial Markets 9 (4): 359-381. https://doi.org/10.1108/QRFM-01-2017-0002
Tannady H, Sitorus T (2017) Role of compensation, organization culture, and leadership on working motivation of faculty member (study case: universities in North Jakarta). IOSR Journal of Business and Management 19 (10): 41-47 https://www.researchgate.net/publication/324136691_Role_Of_Compensation_Organization_Culture_And_Leadership_On_Working_Motivation_Of_Faculty_Member_Study_Case_Universities_In_North_Jakarta
Unhas S, Fernandes A (2013) The mediating effect of service quality and organizational commitment on the effect of mana- gement process alignment on higher education performance in Makassar, Indonesia. Journal of Organizational Change Management 31 (2): 410-435 https://www.researchgate.net/publication/323187959_The_mediating_effect_of_service_quality_and_organizational_commitment_on_the_effect_of_management_process_alignment_on_higher_educa- tion_performance_in_Makassar_Indonesia
Vazquez (2001) Expectations: a comparison standard in me- asuring service quality: an assessment of a reassessment. Journal of Marketing 58 (1): 132-139 http://www.scirp.org/(S(351jmbntvnsjt1aadkposzje))/reference/ReferencesPapers.aspx?ReferenceID=1974850
Yang CC (2005) The refined Kano’s model and its application. Total Quality Management and Business Excellence 16 (10): 1127-1137. https://www.tandfonline.com/doi/abs/10.1080/14783360500235850