ASSIGNMENT 1:PROBLEM FORMULATION

A STUDY ON LEVEL OF SERVICE QUALITY AND STUDENTS SATISFACTION AT

UNITARS CRM COUNTER

1.1 PURPOSE OF THE STUDY

To investigate service quality attributes with student satisfaction

1.2 OBJECTIVE

To examine the significant relationship between the level of service quality with SERVQUAL

framework and students satisfaction at UNITARs CRM counter.

1.3 IMPORTANCE OF THE STUDY

This study will be an eye-opener for the management that has been lackadaisical about the

performance of the CRM counter. The study will alerts the staffs at the CRM counter as they

plays important role in ensuring the satisfaction of the student and the eventual progress of the

institution due the constant inward flow of students. The performance of the institution would be

judged by the students who are the pivotal point in the development of the institution in this

competitive society.
1.4 RESEARCH PROBLEMS

Service quality is generally regarded as being a key factor in the creation of worth and in

influencing customer satisfaction (Parasuraman et.al 1988). Client sensitivity increases,

competition expands and intensifies, and professional malpractice suits become more

commonplace, the issue of evaluating professional service quality has emerged as a topic in

need of investigation. A satisfied student often stays loyal longer, and is likely to utilize the firm

in future. Likewise, both service quality and students satisfaction in Universities or higher

education is considered as very important factor for this particular academic industrys

sustainability. However, nowadays, there are many complaints and dissatisfaction words about

many universities around the world been exhibited and argued by students in most of the media.

The root for this scenario existence came from poor service quality that provided by each and

every universities

The initial service quality of a university can be seen through its CRM counter whereby the

process of registration and Q&A session took place. If these customers impressed by CRM

service quality, it would lead to increases the number of student registration. Meanwhile, most of

the universities failed to improve their CRM department and due to that, most of their potential

students find other universities that provide good service quality at initial stage (Zainuddin Bin

Zakaria, 2009). On the contrary, Tian and Wang (2010) argues that there is no relationship

between service quality and student satisfaction at CRM counter and its related to cultural

background of a student.

So, in this case .As a student of UNITAR international university, keen to examine whether there

is a relationship between level of service quality and student satisfaction at UNITAR CRM

counter with appropriate model.

1.5 RESEARCH QUESTIONS

RQ1: Are the student satisfied with service provided at UNITAR CRM counter?

RQ2: What is the level of service quality at UNITARs CRM counter?

RQ3: Is there any relationship between the service quality and dimensions with student

satisfaction?

1.6 STATEMENT OF HYPOTHESES (PROPOSITIONS)

H1: There is a significant relationship between tangibility and student satisfaction

H2: There is a significant relationship between reliability and student satisfaction

H3: There is a significant relationship between responsiveness and student satisfaction

H4: There is a significant relationship between assurance and student satisfaction

H5: There is a significant relationship between empathy and student satisfaction

1.7 THEORETICAL UNDERPINNING

According to Parasuraman et al., 1988) the relationship between service quality and customer

satisfaction can be measured accurately through a framework called SERVQUAL. SERVQUAL

has five dimensions: tangibles, reliability, responsiveness, empathy and assurance. The first

dimension (tangibles) has commenced with physical environment, the reliability corresponds

with service outcome and the remaining three deals with interaction quality aspects. Service
quality is pioneer of the theory of customer satisfaction and the relationship between loyalty and

service quality is intervened by satisfaction recently, there has been more attention on

conceptualization and measuring service quality in education sector since there is a sharp

increase in knowledge gainers around the world. SERVQUAL can be used to determine the

service quality and confirmed that this instrument can be used to assess service quality in

university or higher education to maintain the good reputation and also for sustainability.

1.8 STUDY (CONCEPTUAL) FRAMEWORK SERVQUAL

Independent Variables Dependent Variables

( By Parasuraman et.al 1988) (By Kotler and Clarke 1987))

 ASSIGNMENT 2: CRITICAL APPRAISAL OF LITERATURE

2.1 Introduction

In any organization or institution the quality of services provided to ensure customer satisfaction

is vital to ensure the development and enhancement of the business. This basic unwritten rule

in the world of entrepreneurship has created healthy rivalries in todays business environment.

Being so, in the present arena of competitiveness in organizations, there is more emphasize on

service quality to attract new customers and at the same time maintain and sustain a healthy

relationship with existing customers by providing the best possible service quality to satisfy

every customer. Since the quality of services provided has created such competitiveness

amongst organizations and institutions, this research aims to focus on the treatment and

application of the knowledge of competitiveness in a higher educational institution in Malaysia

and the level of service quality offered at the institution in order to meet student satisfaction to

strive in the competitive market.

2.2 Concepts

This literature focuses on the customer service expectations by students and the provision of

the actual performance provided by the administration at the service counter of a higher

educational institution in Malaysia. This is in line with the concept that students evaluate the

service quality in educational industry through their educational experience that they receive

during their denture of stay and study at the institution. Research has proven that generally

customers are sure to be extremely satisfied with a particular organization if the services they
receive are beyond their expectation; so should it be with students at the higher level of

educational institution

2.3 Service quality

Undeniably, there is much controversy in trying to define the exact or best meaning of service

quality. According to Eshghi et al., (2008) service quality is the general evaluation by the

common public or the customers in particular on the services provided by a particular

organization whereas other studies have defined service quality as the capability of any

organization to meet the needs and desires of its customers and provide a satisfactory service

to them. Likewise, Asubonteng et al.,(1996simply put it that service is quality when the services

offered consistently meets with the expectations of the customers. Parasuraman et al. (1985, on

the other hand argues that service quality is the degree and frequency of the service offered by

the organization or institution to meet the expectations of the customer versus the measurement

of the satisfaction derived by the customer based on the performance that is experienced by the

customer.Further studies by later researches define service quality in better detail. Czepiel

(1990) explains service quality as the customers perception of the degree of the services

provided that meets or surpasses the expectations of the customers or consumers. In short,

service quality has been defined as the customers view and experience of satisfaction on the

quality of services that have be experienced or enjoyed by the customer in accordance to the

level of expectation that the customer had on the quality of service that was perceived to be

received. If the quality rendered goes beyond the level of expectation, the customer receives full

satisfaction

2.4 Student Satisfaction

Just as scholars have come up with numerous definitions for service quality, the definition of

student satisfaction has also been much debated upon but with little variations on opinions.

Kotler and Clarke (1987) define satisfaction as a situation or situation that is enjoyed or

experienced by a customer or consumer by the services or performances provided by the

organization that fulfill or supersede the expectation of the customer or consumer. They further

note that the level of satisfaction attained depends on the quality of performance or services that

is provided by the organization or institution. Malik & Usman (2010) consolidate that satisfaction

demands quality performance by the organization or institution that is exercised by the

organization in order to deprive maximum contentment from the party for whom the

performance is rendered. This is further established by Sapri and Finch (2009) who clearly state

that the customers or consumers are the main support or the actual providers for any

organization or institution, be it the private of public sectors of the world of entrepreneurship.

The definitions of satisfaction on service quality does not defer when it comes to student

satisfaction. Similar to customers and consumers, students too have great expectations of the

services that they will be experiencing and enjoying in the educational institution that they have

enrolled to acquire intelligence. Hasan & Ilias (2008) assume that student satisfaction actually

begins to shape only during the college days. They further state that student satisfaction is a

continual process which is based on the on-going experiences of the students during their

campus days that accumulates to becoming student satisfaction. In support of this idea,

Helgesen & Nesset, (2007) and Gruber et al., (2010) say that when student satisfaction is

positive to the point where they would experience extreme contentment, the students will return

to pursue higher levels of education at the same institution resulting in continuous improvement

in service quality provided by the institution.

As aptly pointed out by Petruzzellis, Uggento, & Romanazzi, (2006) students will be contented

with the educational institution if and only if the service quality rendered by the academic
institution matches with their expectations. If the service quality exceeds their expectations or

goes beyond what they had expected, the students will most definitely enjoy complete

satisfaction. Juxtapose to this situation, if the situation is vice versa, the institution will lose its

students owing to the fact that it had failed to provide adequate student satisfaction.

On the contrary, Tian and Wang (2010) argue that student satisfaction depends on the cultural

background of the student and they claim that it is easier to provide service quality to a group of

students with similar cultural background compared to students with different cultural

backgrounds. They further state that even within similar cultural background, it is difficult to

provide service quality of full satisfaction to every individual. This is because every student has

a slightly different expectation of service quality in accordance to the cultural background and

the environment where the student comes from. They also claim that when students come from

differing cultural background, there will be multiple expectations of varying degrees and

understanding that the organization will find it almost impossible to cope or render.

As oppose to the above notion, Navarro et al. (2005) mention that students, be it from similar or

differing cultural backgrounds, will in fact evaluate the service quality of an educational

institution on 4 measurable dimensions or variables, namely: the level of tangibility such as

having effective and dedicated tutors, reliability and responsiveness such as using good

teaching methodology and the effectiveness of management and administration. They

vehemently claim that these are the factors that directly influence the level of student

satisfaction of an educational institution more than the cultural backgrounds of the students.

Mavondo and Zaman (2000) further adds that the reputation of the institution with its

achievements and performance is another factor that cannot be ignored. They say that the

excellent performance of an academic institution would directly reflect on the quality of the

lecturers and also the favorable environment provided by the institution. This would enhance the
academic reputation of the institution which would become the proof and promise of service

quality of the institution. This in turn will surely promise excellent student satisfaction.

2.5 Relationship between service quality and student satisfaction

Parasuraman, Zeithmal and Berry (1994) are in full agreement that service quality is ultimately

the vital factor to produce customer satisfaction. To show the close relationship between service

quality and customer satisfaction, they further worked and analyzed the model that was

developed by Richard Oliver in 1993. In his article, Olivercombines the concepts of service

quality and customer satisfaction and puts forward the theory that service quality is the

predecessor or antecedent to satisfaction. His study proved that positive and acceptable service

quality leads to definite and confirmed satisfaction. Parasuraman et al., (1988) created a further

study to discover other factors that influenced service quality and satisfaction. They defined

service quality as a type of stance or position which is a sort of a general long-term assessment

while satisfaction as a measurement of the contentment achieved and experienced. They

concluded that service quality is a holistic affecter whereby every customer would expect some

sort of satisfaction from the organization or institution when dealing with the performance of the

aforesaid establishment.

Parasuraman et.al (1988) put forward 5 dimensions that influence customer satisfaction. These

scholars argue that the overall consequence of service quality has a lot to do with the general

trust and reliability of the customer on the organization or institution whereas the other four

variables which are tangibles, assurance, responsiveness and empathy are directly linked to the

process of service delivery. This strong connection between the effectiveness of service quality

and customer satisfaction depends heavily on the reliability and accuracy of the service.

According to their research, these variables also ensure other service dimensions that

are also the concern and connection to customer satisfaction. In other words, they claim

that customer satisfaction is not only dependent on the reliability of the services provided by the
organization or institution but it also depends on the long term experience that the customer

encounter along the service deliver process by the organization

2.6 The Models

Undoubtedly it is the hypothesis and also expectation of every student that the service quality

provided in the sector or the field of higher educational institution determines the degree of

excellent performance by the institution. Alves & Raposo (2010) in their research and findings

proved that students positive evaluation and perceptions of service quality provided and

performed by an educational institution has a great and significant influence on student

satisfaction which is vital for the progress and achievement to the growth and development of

the institution. They claim that satisfied students can become highly motivated and thus deemed

to be inspired to produce better results and this is important to regenerate and reinforce the

academic performance and the administrative efficiency of the higher educational institution.

This finding and opinion is further strengthened by Ahmed & Nawaz (2010) who state that

service quality is the vital and pivotal measurement of a higher educational institution that

measures the excellence in performance by the student satisfaction. It is important for the

institution to create a strong and positive opinion of the institution in the minds of the consumers

for the advancement and long-running assurance of the institution.

The above opinion is further validated by Malik and Usman (2010) who say that almost all well-

established high learning institutions go a great length to focus on providing excellent customer

services because they realize that by doing so they would be able to create a healthy

relationship between their customers who are their students. This good relationship which they

built with the student is important in determining the success and development of the

educational industry in the future.

Among the most effective and comprehensive models and tools developed by scholars of this

field is undeniably the one introduced by Parasuraman, Zeithaml and Berry (1988). To give a

clear and detail portrayal of the connection that links the student satisfaction with the service

quality, in their research, they have acknowledged 10 dimensions which are related to service

quality which can be grouped as the knowledge of customer service. The 10 aforesaid

dimensions are as follows: 1.tangibility 2.reliability 3.credibility 4.communication

5.responsiveness 6.understanding 7.courtesy 8.security 9.competency and 10.accessibility.

This, without a shadow of doubt, is obviously at a greater detail than that which was created by

Navarro et al. (2005) which had 4 dimensions and their earlier model that had 5 dimensions.

However, in 1993 Gronroos modified this model and developed a similar service quality model

with some differences and variations. The striking difference between the models by

Parusuraman et. al and Gronroos is that, the model by Gronroos has categorized the 10

dimensions of the other model into just 3 dimensions. The first two dimensions are called

functional and technical qualities while the third depicts the image. Gronroos argues that the 10

dimensions or variables can actually be grouped into these smaller categories.

A thorough study and analysis of the works of Gronroos (2000) reveals that Gronroos states that

the first two dimensions i.e. technical quality and functional quality are in fact two primary

characteristics of services which are the major aspects of quality services. The dimension of

Gronrooss technical quality assemblage sub-divides into five issues which are: 1. The technical

ability of the employees 2. The effective solutions offered by the management 3. The acquired

knowledge which are applied by the employees 4.

The quality of the machinery used in the organization and 5. The modernized and advanced

systems used by the organization. Akhtar, (2011) who made a further in- depth study of the

model says that the functional quality, on the other hand designates the overall process of the

service. As for the functional quality, Gronroos, in his model has categorized seven related
factors which are; 1. Having a positive behaviour towards service provision 2. Having a positive

attitude towards the customers 3. Projecting a proper appearance 4. Providing proper

accessibility 5. Being of service-mindedness at all times 6. Practicing excellent internal

relationship and 7. Having a good networking system and customer contact.

Another important aspect of Gronroos model which is a clearly noticeable element is the

representation and interpretation of the image and prestige of the services provided by the

higher education institution or the organization. According to Gronroos (1991) who states in his

model, the image and prestige of the institution and its service has a direct or a close

relationship with the service quality provided by the institution. In agreement of this model,

Hansemark and Albinsson (2004) claim that the Gronroos is true to his discovery that student

satisfaction is the fulfillment of the needs and wants of the student which should be provided

and accommodated by the institution in order to provide the best service to ensure the physical

and emotional satisfaction of the student. They further support the Gronross claim that the

assessment of the success and failure of the institution lies on the shoulders of the students

who will determine the service quality provided by the institution if it fulfils their needs and

desires.

Muhammad Sabbir Rahman et. al., (2012)further supports Gronross stating that the

measurement of the accomplishment and presentation of service quality at higher

educational and learning institutions is strongly entrenched and supported to match student

expectation and their overall experiences in the educational institution. It is natural that student

report on the quality of the educational institution based on the effect of its service on their

general performance and experience at the institution. If the services rendered proofs to be

positive, then the feedback of the students would be encouraging and so will be the level of

satisfaction which will provide a positive feedback of the service quality of the educational

institution.
Since institutions are becoming highly competitive and striving in an ever-growing market with

new educational institution mushrooming at every decade, the level of services provided by the

institutions must equal or surpass the expectations of the students. It is important for the

institution to study the suggested variable and dimensions in order to survive in the world of

entrepreneurship (Sapri, Kaka, & Finch, 2009).

Despite the many models and the support for the aforesaid models, the most acknowledged and

applicable model in a myriad of countless organizations and institutions is the

SERVQUAL(service quality) model developed by Parasuraman et. al. 1988. After making some

changes from the original at 1984 the SERVQUAL model by Parasuraman et. al., (1988)

recommended and put forth a five dimensional construct of an excellent service quality. The so

mentioned five dimensions that are used as the proper yardstick and instrument for a perfect

measure of service quality(which will be discussed below) are: 1. Tangibility 2. Reliability 3.

Responsiveness 4. Assurance and 5. Empathy (Parasuraman et. al., 1988 & Zeithamlet el al.,

1990).

2.6.1 Tangibility

Parasuraman et. al., (1985) has defined tangibility as the outlook of the substantial amenities or

services, staff and personnel, facilities and conveniences and even brochures, pamphlets and

periodicals produced by the organization or institution. These would also include the building,

amenities for recreational activities such as the field, swimming pool and courts, canteen,

adequate and modern laboratories with the latest equipment and gadgets, virtual learning

environment, language laboratories, experienced stuff and lecturers with the knowledge in ICT

and the use of technological gadgets and up-to-date periodicals, journals and reference

materials.
2.6.2 Reliability

Reliability is the most important factor in providing the obvious and expected service. It covers a

large area of the basic customer services that involves efficient time management, punctuality,

efficiency in task-fulfillment, providing accurate information, delivering and transferring of

information aptly and accurately, keeping to the promised time, accurate and appropriate billing

and dispatch of correct letter and periodicals and giving and taking proper orders. The institution

is also expected to handle students problems tactfully in a systematic and professional manner.

2.6.3 Responsiveness

According to Parasuraman et al., (1985) responsiveness can be defined as the willingness or

readiness of employees to provide services in the most efficient and diplomatic manner that

would satisfy the customer. It involves the understanding of the needs and situation of the

customer and providing the service in any circumstance even if the customer seems

apprehensive or impolite. Responsiveness includes timeliness in services and providing service

above self. The staff that provides the customer service should be quick, resourceful, capable,

well-organized, proficient, professional and competent in providing the service at the required

time and manner.

2.6.4 Assurance

In defining Assurance, Parasuraman et.al., (1985) has stated that the assurance of an

organization or institution is the aptitude, capability and even the skill of the organization or

institution to instill trust and confidence in the customers. They claim that the institution should

be well equipped with the knowledge and courtesy on the know-how on the best and apt
methodology in handling customers in the best possible way in order to gain their reliance, faith

and conviction on the institution. It is vital that the institution provide services where customers

could be entrust their task with confidence and be able to confide in the excellent service that

the institution could provide with a tint of worry or doubt.

2.6.5 Empathy

According to Parasuraman et al. (1985)it is important that the institution portrays a caring

attitude to the customers. The institution should devote time and smile to every individual and

should the care and love by providing individual attention to every customer. This will involve

understanding the emotional state of the customer and the urgency of the matter that has to be

addressed at hand. Moreover, convincing and comforting words, looks, attitude and expressions

are utmost important in ensuring customer satisfaction. The customers should belief and feel

secure that the institution cares for their plight, situation and circumstances.

2.7 Summary

This study will use Parasuraman et al. (1985) model of service quality to validate the

effectiveness and efficiency of the customer service counter in response to student satisfaction

at a higher educational institution in Malaysia. The service quality offered and practiced at

UNITARs CRM counter will be evaluated and measured against the aforementioned five

dimensions that are recommended by Parasuraman et. al., in their latest model of service

qualities (1985). The five dimensions that are of concern are: 1. Tangibility: which is the

amenities and physical facade and manifestation of the organization 2. Reliability: which is the

skill and capability of the organization to meet with the demands of the customers accurately

and efficiently 3. Responsiveness: which is the enthusiasm, keenness and readiness of the

organization to offer prompt service 4. Assurance: which is the awareness, expertise and
knowledge plus the courteousness and consideration and the ability of the employees of the

organization to instill and inspire the trust and confidence of the customers on the organization

and 5. Empathy: which is the love, care, concern and attention that the organization provide to

the customers during the entire duration of the customers encounter. It is worth the mention

that among the 5 abovementioned dimensions, reliability should be considered as the essential

and imperative quality that needs to be given extra emphasis. This fact has been clearly

established by Berry et. al., (1994)that the other dimensions will become of least concern to

customers if the capability and skills of the organization fail to meet the demands and

requirements of the customers since the rest of the dimensions (aside from reliability)cannot be

compromised or compensated for a service quality which is unreliable.

Figure 1 below showcases the 5 dimensions for the independent variables (as discussed above)

namely, tangibility, reliability, responsiveness, assurance and empathy, in connection and

relationship to student satisfaction.

Independent Variable

Tangibility
Outlook of the counter
Students are well addressed
Facilities and conveniences
Brochures & pamphlets
Reliability
Punctuality
Efficiency in task-fulfilment
Time management
Respect rule of confidential
Dispatch of correct letter
H1 Dependent Variable
Responsiveness
Be quick
Resourceful and capable
Student Satisfaction
Well-organized H2 Service provide at the counter
Time and manner Staff Efficiency at counter
Assurance The responsiveness of staff
H3
Well mannered & respectful Outlook of the counter
Adequate communication skills Communicative ability of staff
Dress professionally & confident
level H4
Empathy
Provide heart service
Understanding on student needs H5
Problem solving
Friendly and easily approachable
All treated equally