BAHIR DAR UNIVERSITY

ETHIOPIAN INSTITUTE OF TEXTILE ANDFASHION TECHNOLOGY

TEXTILE AND APPAREL MERCHANDISING

Project progress on:-The impact of Service Quality on Customer

Satisfaction (in Case of garment evolution retail store)

Name of group member

Esayas Mesfine…………………...0804356

Temesgen Kasu…………………...0804588

Tizita Alemayehu………………….0804599

Adviser Name
Assistant Lecture Melkamfre Mulat

SUBMITION DATE: May 2019

Back ground of the study

In today’s competitive environment, delivering high quality service is the key for sustainable
competitive effect on organizations profitability satisfies customers are the foundation of any
successful business because customer’s satisfaction leads to repeat purchase, brand loyalty and
positive word of mouth.

Service marketers have realized over past few years that competition can be well managed
through quality. Thus, service quality is imperative to achieve competitive advantage. Poor
quality places a firm at a competitive disadvantage. Service quality offers a way of achieving
success among competing services, particularly in case of firms that offer nearly identical
services. Service quality is focused evaluation that reflects the customers reflects the customer’s
perception of specific dimension of service: reliability, responsiveness, assurance, empathy,
tangibility (zeithamlandbitner 2003:85)

Services industry import significant part of markets in many countries. Kotler in his marketing
book indicates that 79 per cent of employees in American industries work in services activities
(Newman, 2001). On the other hand, nowadays which organizations will be successful in
competition area that main focus of their activities is satisfaction of needs and desires of
customers with minimum cost and maximum quality. With respect to the differences that exist
between physical products and services, customer considered as the only qualified reference to
differentiate quality of offered services, so successfulness and efficient presence in competitive
market through using all facilities and new industries for production and offering desirable and
qualified services for customer’s expectations is inevitable. Though products quality that could
assess through objective measurements such as durability and shortages of products, but services
quality is a subjective concept and its measurement is impossible in objective manner. In absence
of objective measures, it is necessary to apply a proper approach for assessment of services
quality to assess customer’s perception of quality (Parasuraman and et al., 1988).

2
 Assessment of services quality is necessary and critical for marketing professionals and
researchers to acquire better perception of prerequisites and outcomes, and for creating methods
of quality improvement in accessing competitive advantage and creating loyalty among
customers. Because quality of superior services isn’t a selective or optional strategy, but also it is
differentiation of successful banks from inefficient banks, therefore it plays an important role in
banks and it is should remember that awareness from services quality concept and effort to its
improvement lead to offer qualified services in banks and it is possible to improve customer’s
satisfaction through increasing level of services quality

The study is looking into the case of Garment evolution retail stores. Garment evolution is one of
the private industry found in Ethiopia it is located in Addis Ababa around gurjijacross area it is
established in 19/2/1997 in EC during it establishment the company starts its new business with
the initial capital of 4.3 million Ethiopian birr. [2]
They sell gown, school uniform, t-shirt, bed
sheet, underwear, singlet, sweater, short, bags and other products with over ten retail centers in
the country found in piyasa, bole, behrawi, gurji ,jakross ,sahlitemhiret ,ayretena, megenagna
commerce and Mexico.

3
 Statement of the problem

It is a known fact that any business can survive only if their customers are satisfied .The
intention of the researcher is to service quality and its customer satisfaction in the organization.
The major factors that affect customer satisfaction in garment Evolution retail stores are: -

 Lack of speed when transfering product from the production area to the retailstors Maxham
(2001) discusse That if problèmes in the service delivery occur the result can be the
customers have to wait.
 Luck of good complains management system: - service failure occurs frequently this effects
customer expectation which leads to complaint. Without customer feedback, it would be
impossible for a company to know whether they need change for improvement(tan
&ong,2009)

 Punctuality, discipline and poor customer treatments of the employees

 Lack of fulfillment of promise/the company over promise

 Lack of attractiveness of store layout or implementation of visual merchandizing. If products

are not placed in proper manner and easily visualized for customers, customers are too much
bored to fined products in the store.

Due to the above reasons the company loses a number of customers. Garment evolution
retail stores visited by around 300 customers in five selected stores per a day. One store
almost visited by 60 customers per day from this visitor 48 customers participate in
purchasing products but the reaming 12visitor doesn’t involved in purchasing due to lack of
service quality. Because of those non purchasing customers the company loses around
162,500 birr per month in one retail store.

4
Basic Research Questions

This study trying to answer the following question

1. What is the level of customer satisfaction and service quality looks like in the evolution retail
stores?

2. What is the influence of basic dimension of service quality that is important to customer
satisfaction?

3. What is the relationship between customer satisfaction and service quality?

4. What will be the gaps between customer expectation and perception toward the level of
customer satisfaction?

5. Is the retail stores try to satisfy the customers or not?

Research objective

General Objective

The objective of this study is to assess the influences of service quality on customer
satisfactionby using SERVQUAL model in case of garment evolution retail stores.

Specific objective

 To identify the basic dimensions of service quality that are important to customers
satisfaction
 To verify the relationship between service quality and customer satisfaction
 To identify the gaps between customer expectation and perception towards the level of
service quality.(gap 5)
 To examine the overall satisfaction level of customers with the service quality they get
from evolution garment retail store.
 Identifying whether the retail stores tries to satisfy customers or not.

5
Significance of the study

The result of this study would help the company retail stores to develop better service quality in
order to meet customer needs and their satisfaction.

It would help the student researcher to have a know how to conducting research and serves as a
corners stone for future career. It would help as one input for other researchers who conduct
research on the same issue.

Scope of the study

This study delimit to garment evolution retail stores not include other similar retail store and
time bounded for this study is 2011 according to Ethiopian calendar (EC).The study also only
focuses on service quality on customer satisfaction. It does not include other variables such as
pricing, place, promotion and product because they will make the scope wide, which in turn is
difficult for assessment.

Limitations

The finding of this study not work in some aspect for other organization, because of the data that
collected from respondents limited to in the garment evolution retail stores or customers and the
researcher have also limited knowledge on collecting data and analysis.

6
Review literature

Defining service
A service is any activity or benefit that one party can offer to another which is essentially
intangible and does not result in the owner ship of anything. The advance economies of the
world are now dominated by the services and virtually all companies view services as critical to
retaining their customers to day and in the future. Even manufacturing companies that, in the
past, have depend on their physical goads for their existence but now their come to see and
recognize that service provided one of their few sustainable competitive advantages (Zeithaml
and Bitner, 2003).
Different authors give different definitions for service Kotler (1997) defines service as follow:
“Service is any act or performance that one party can offer to another that in essentially
inerasable and does not result in the owner ship of anything. Its production may or may not be
tied to a physical product.
Kotler defines service as “any intangible act or performance that one party offers to another that
does not result in the ownership of anything” (Kotler & Keller, 2009, p. 789).

(Zeithaml and Bituer, 2009) defines service as; Service are deeds, processes, and performance
provided or coproduced by one entity or person for another entity or person.

Service characteristics
A company must consider five main service characteristics when designing marketing programs:
intangibility, inseparability, variability, perishability, and lack of owner ship (Kotler, 1999, pp-
647).
A. Intangibility
Service intangibility means that senders cannot be reading displayed, so they cannot be seen,
tasted, felt, and heard, or sine lied before they are bought. Because, service offerings lack
tangible characteristics that the buyer can evaluate before purchase, uncertainty is increased.
To reduce uncertainty, buyers look for “signals” of service quality. They draw conclusions about
quality from the place, people, equipment, communication material and price that key can see,
(Kennath E. clowDevid L. Kurta 2003)

7
Therefore, the service provider’s task is to make the service tangible in one or more ways.
Whereas product marketers try to add intangible (e.g, fast delivery, extended warranty, after
sales service) to their tangible offers. Service marketers try to add tangible cues suggesting high
quality to their intangible offers. Consider about that wants to conveyance idea that its service is
quick and efficient. It must make this positioning strategy tangible in every aspect of customer
contact. The bank’s physical setting must suggest quick and efficient service; its exterior and
interior should have clean lines; internal traffic flow should be planned carefully; and waiting
lines should see short. The bank’s staff should be busy and properly dressed. The equipment
computers, copying machines desks- should look modern.(kotler,1999)
The banks advertisements and other communications should suggest efficiency, with clean and
simple designs and carefully chosen words and photos that communicate the banks positioning.

B. Inseparability
Service inseparability means that service cannot be separated from their providers, whether the
providers are people or machines. If a person provides the service then the person is a part of the
service. The other or feature of the inseparability of services is that other customers are also
present or involved. The implication for management would be to ensure at all times that
customers involved in the service do not interfere with each other’s satisfaction.
C. Variability
As services in valve people in production and consumption there is considerable potential for
variability. Service variability means that the quality of services depends on who provides them,
as well as when, where and how they are provided. As such, service quality is different to
control. Even the quality a single employee service varies according to his or her energy and
frame of mind at the time of each customer contact. For example, two services offered by the
same solicitor may not be has identical in performance.
Service firms can take several steps towards quality control. First they can select and train their
personal carefully.
Second, they can motivate staff by providing employee incentives that emphasize quality, such
as, employee to- the mouth- a words or bonuses based on customer. Feedback third, they can
make service employees more visible and accountable to consumers car dealership can let
customers talk directly with the machines working on their cars. A firm can cheek customer

8
satisfaction regularly through suggestion and complaint system. Customer surveys and
comparison-shopping. When poor is found. It is corrected.
Fourth, service firm can increase the consistency of employee performance by substituting
equipment for staff (example, vending machines, automatics cash dispenser), and through heavy
enforcement of standardized as well a detailed job procedures (Kotler, 1999).

D. Perishability
Service perishability means that service cannot be stored for later sales or use. The perishability
of services is not a problem when demand is steady. However, when demand fluctuates, service
firms often have difficult problems. Service firms can use several strategies for producing a
better match between demand and supply. On the demand side, differential pricing- that is
charging different prices at different times- will shift some demand from peak periods to off,
peak periods. On the supply side, firms can hire part time employees to service peak demand.
Peak time demand can be handled more efficiently by rescheduling work so that employees do
only essential tasks during peak periods. (kennth E. clow and David l. Kurzt, 2003)

E. Lack of ownership
Service produces lack that quality of ownership. The service consumer often has access to the
service for a limited time. Because of the lack of owner ship, service providers must make
especial effort to reinforce their brand identity and affinity with the consumer by offering
incentives to consumers to use their service again.

Service quality

Understanding quality
According to Hardie& Walsh, (1993, p.75); Sower and Fair, (2005, p.8); Wicks &Rotulien,
(2009, p.82), quality has many different definitions and There is no universals acceptable
definition of quality. They claim it is because of the elusive nature of the concept from different
perspectives and orientations and the measures applied in a particular context by the Person
defining it.

9
The definition of quality varies between manufacturing and services industries and between
academicians and practitioners. These variations are caused by the intangible nature of its
components since it makes it very difficult to evaluate quality which cannot be assessed physical
implying other ways must be outlined in order to measure this quality.

Some definitions of quality pointed out by Hardie& Walsh (1994, p.53) include;

“Quality is product performance which results in customer satisfaction freedom from product
deficiencies, which avoids customer dissatisfaction” – (Juran, 1985, p.5)

“Quality is the extent to which the customers or users believe the product or service surpasses
their needs and expectations” – (Gitlow et al. 1989)

“Quality: the totality of features and characteristics of a product that bear on its ability to satisfy
stated or implied needs”– International Standards Organization (ISO).

“Quality is the total composite product and service characteristics of marketing, engineering,
manufacture and maintenance through which the product in use will meet the expectations of the
customer” – (Feigenbaum, 1986)
“Quality is anything which can be improved” – (Imai, 1986, p. xxiii.)

“We must define quality as “conformance to requirement” – (Crosby, 1979, p.17).

“Quality is the degree or grade of excellence etc. possessed by a thing” – (Oxford English
Dictionary).
“Quality is defined as the summation of the affective evaluations by each customer of each
attitude object that creates customer satisfaction”- (Wicks &Roethlein, 2009,p.90).

“Qualityis the totality of features and characteristics in a product or service that bear upon its
ability to satisfy needs” (Haider, 2001, p.8).

10
Service quality is company personnel need a common understanding in order to the able to
address such issues as the measurement of service quality, the identification of causes of service
quality short fall and the design and implementation of corrective actions, (lovelock, 2004)
Parasuraman et al. (1985) define service quality as: “the difference between customers”
expectation of service and their perceived services. If the expectation greater than the service
performance, perceived quality is less than satisfactory and hence customer dissatisfaction
occurs.
Parasuraman, Zeithaml and Berry (1985) described service quality as serviced by consumed
starting from a comparison of how they feel firms should perform on this dimension with what
they actually perceive. It the gap between customer’s expectations and perceptions that
determine service quality. The smaller the gap, better the quality of service and the greater the
customer satisfaction.

Service quality dimensions

Service quality dimension represent how customers organize information about service quality in
their minds (Zeithaml, Bitner, 2003) on the basis of exploratory and quantitative research. These
fives dimensions were found relevant for banking, insurance, appliance repair and maintenances.

A. Reliability: delivering on promise

Reliability is defined as the ability to perform the promised service dependably and accurately.
In its broadest sense, reliability means that the company delivers on its promises, promises
about delivery, service provision, problem resolution, and pricing, customers want to do business
with companies that keep their promises, particularly their promises about the service out comes
and core service attributes.

B .Responsiveness: being willing to help

Responsiveness is the willingness to help customers and to provide prompt service. These
dimension emphasizes, attentiveness and promptness in dealing with customer requests,
questions, complimented and problems.
Responsiveness is commentated to customer by the length of time they have to wait to for
assistance, answers to questions or attention to problem.

11
Responsiveness also captures the notion of flexibility and ability to customize the service to
customer needs.
To excel on the dimension of responsiveness a company must be certain to view the process of
service delivery and the handing of requisites from the customer point of view rather than from
the company’s point of view.
To truly distinguish them service on responsiveness, companies need well- staffed customer
service departments as well as responsive font-line people in all contact positions.

C. Assurance: inspiring trust and confidence

Assurance is defined as employee’s knowledge, courtesy, and the ability of the firm and its
employees to inspire trust and confidence.
This dimension is likely to be particularly important for service that the customer services as
involving high risk and /or about which they feel uncertain about their ability to evaluate out
comes. Trust and confidence may be embodied in the person who links the customer to the
company. In such service contexts the company seeks to build trust and loyalty between key
contact people and individual customers. The personal banker concept captures this idea:
customers are assigned to a banker who will get to know them individual and how well
coordinate all of their banking services.

D. Empathy: Treating customers as individual

Empathy is defined as the caring individualized attention the firm providence its customers. The
essence of empathy is conveying, through personalized or customized service that customers are
unique and special customers want to feel understood by and important to firms that provide
service to them.

E .Tangibles: representing the service physically

Tangibles are defined as the appearance of physical facilities, personal and communication
materials. All of this provides physical representation or images of the service that customers,
particularly new customers, will use to evaluate quality.

12
Customer expectation and perception of service quality

Customer expectation
Customer expectation are believes about service delivery that faction as standards or reference
point against which performance is jugged. Because customers complain their perception of
performance with its reference points when evaluating service quality, through knowledge about
customer expel action is critical to service marketers. Knowing what the customer expects is the
first and possibility most critical step in delivering quality service.

Factors that influences customer expectation

Because expectations play such a critical role in customer evaluation of service company needs
and wants to understand the factors to shape them. These are
 Personas needs and
 Philosophy

The gaps modern of service quality

Service quality, according to parasureman et al (1994, p- 202), is the degree of discrepancy
between customers normative expectations for the service and their perceptions of the service
performances. A conceptual model of service quality which inquired five gaps is proposed by
parasuraman et al (1985) and Zeithaml et al (1988). This conceptual modal is useful in that it is
easy for practitioners to understand service quality components
The gap modal positions the key concepts, strategies, and decisions in service marketing in a
manner that begins with the customers and build the organizations tasks around what is needed
to close the gap between customer expectation and customer perception point. The Sentara focus
of the gaps mole is the customer gap, the difference between customer expectation and
perception.
Firms need to close this gap between what customers expect and resave in order to satisfy these
customers and build long term relationship with teal. To close this all in pact customer gap, the
model suggests four other gaps- need to be closed.

13
Gap 1: Customer expectation - management perception gap
Service firms may not always understand what features a service must have in order to meet
customer needs and what levels of performance on those features are needed o bring deliver high
quality service. This results to affecting the way customers Evaluate service quality.

ii) Gap 2: Management perception - service quality specification gap

This gap arises when the company identifies want the customers want but the means to deliver to
expectation does not exist. Some factors that affect this gap could be resource constraints, market
conditions and management indifference. These could affect service quality perception of the
customer.
iii) Gap 3: Service quality specifications – service delivery gap
Companies could have guidelines for performing service well and treating customers correctly
but these do not mean high service quality performance is assured.
Employees play an important role in assuring good service quality perception and their
performance cannot be standardized. This affects the delivery of service which has an impact on
the way customers perceive service quality.

iv) Gap 4: Service delivery – external communications gap

External communications can affect not only customer expectations of service but also customer
perceptions of the delivered service. Companies can neglect to inform customers of special
efforts to assure quality that are not visible to them and this could influence service quality
perceptions by customers.

v) Gap 5: Expected Service – perceived service gap

From their study, it showed that the key to ensuring good service quality is meeting or exceeding
what customers expect from the service and that judgment of high and low service quality
depend on how customers perceive the actual performance in the context of what they expected.
Parasuraman et al., (1988), later developed the SERVQUAL model which is a mult item scale
developed to assess customer perceptions of service quality in service and retail businesses. The
scale decomposes the notion of service quality into five constructs as follows: Tangibles,

14
Reliability, Responsiveness, Assurance and empathy. It bases on capturing the gap
betweencustomers expectations and experience which could be negative or positive if the
expectation is higher than experience or expectation is less than or equal to experience
respectively.
The SERVPERF model developed by Cronin & Taylor, (1992), was derived from the
SERVQUAL model by dropping the expectations and measuring service quality perceptions just
by evaluating the customer’s the overall feeling towards the service.
In their study, they identified four important equations:
SERVQUAL = Performance – Expectations
Weighted SERVQUAL = importance x (performance – expectations)
SERVPERF = performance
Weighted SERFPERF = importance x (performance)

Implicitly the SERVPERF model assesses customers experience based on the same attributes as
the SERVQUAL and conforms more closely on the implications of satisfaction and attitude
literature, Cronin et al., (1992 p.64). Later, Teas, (1993, p.23) developed the evaluated
performance model (EP) in order to overcome some of the problems associated with the gap in
conceptualization of service quality (Grönroos, 1984; Parasuraman et al., 1985, 1988). This
model measures the gap between perceived performance and the ideal amount of a feature not
customers expectation. He argues that an examination indicates that the P-E (perception –
expectation) framework is of questionable validity because of conceptual and definitional
problems involving the conceptual definition of expectations, theoretical justification of the
expectations component of the P-E framework, and measurement validity of the expectation. He
then revised expectation measures specified in the published service quality literature to ideal
amounts of the service attributes (Teas,1993, p.18) Brady & Cronin, (2001), proposed a
multidimensional and hierarchical construct, in which service quality is explained by three
primary dimensions; interaction quality, physical environment quality and outcome quality. Each
of these dimensions consists of three corresponding sub-dimensions. Interaction quality made up
of attitude, behavior and expertise; physical environment quality consisting of ambient
conditions, design and social factors while the outcome quality consists of waiting time,
tangibles and valence.

15
According to these authors, hierarchical and multidimensional model improves the
understanding of three basic issues about service quality:
a) What defines service quality perceptions
b) How service quality perceptions are formed
c) How important it is where the service experience takes place and this framework can help
managers as they try to improve customers’ service experiences Brady & Cronin, (2001, p.44).
Saravanan & Rao, (2007, p.440), outlined six critical factors that customer-perceived service
quality is measured from after extensively reviewing literature and they include;
i. Human aspects of service delivery (reliability, responsiveness, assurance, empathy)
ii. Core service (content, features)
iii. Social responsibility (improving corporate image)
iv. Systematization of service delivery (processes, procedures, systems and technology)
v. Tangibles of service (equipments, machinery, signage, employee appearance)
vi. Service marketing

From their study, they found out that these factors all lead to improved perceived service quality,
customer satisfaction and loyalty from the customer’s perspective.
According to Brady & Cronin, (2001, p.36), based on various studies, service quality is defined
by either or all of a customer’s perception regarding 1) an organisations’ technical and functional
quality; 2) the service product, service delivery and service environment; or 3) the reliability,
responsiveness, empathy, assurances, and tangibles associated with a service experience. Mittal
and Lassar’s SERVQUAL-P model reduces the original five dimensions down to four;
Reliability, Responsiveness, Personalization and Tangibles. Importantly, SERVQUAL-P
includes the Personalization dimension, which refers tothesocialcontentof interaction between
service employees and their customers (Bougoure & Lee, 2009, p.73) 2.3.2 The Development
and Evolution of the SERVQUAL Model “Parasuraman et al. (1985) identified 97 attributes
which were found to have an impact on service quality. These 97 attributes were the criteria that
are important in assessing customer’s expectations and perceptions on delivered service” (Kumar
et al., 2009, p.214). These attributes were categorized into ten dimensions

16
(Parasuraman et al., 1985) and later subjected the proposed 97 item instruments for assessing
service quality through two stages in order to purify the instruments and select those with
significant influences (Parasuraman et al., 1988, p.13).

The first purification stage came up with ten dimensions for assessing service quality which
were; tangibles, reliability, responsiveness, communication, credibility, security,
competence ,courtesy, understanding, knowing, customers, and access. They went into the
second purification stage and in this stage they concentrated on condensing scale dimensionality
and reliability. They further reduced the ten dimensions to five which were;
i. Tangibility: physical facilities, equipment, and appearance of personnel.
ii. Reliability: ability to perform the promised service dependably and accurately.
iii. Responsiveness: willingness to help customers and provide prompt service.
iv. Assurance: knowledge and courtesy of employees and their ability to inspire trust and
confidence.
v. Empathy: caring individualized attention the firm provides to its customers.

2.3.3 Functioning of the SERVQUAL

17
Customer perception
Customer perceives services in terms of the quality of service and how satisfied they are over all
with their experiences.
This customer oriented terms quality and satisfaction have been focus of attention for executives
and researchers unlikely. Perceived service quality has been defined as the consumer’s global
attitude or judgment of the overall excellence or superiority of the service. Perceived service
quality results from comparisons by consumer of expectations with their perceptions of service
delivered by the suppliers (Lewis et al., 1994; Takeuchi and Quelch, 1983; Zeithaml, 1988). It is
argued that the key to ensuring good service quality perception is in meeting or exceeding what
customers expect from the service. Thus, if perception of the actual service delivered by the
supplier falls short of expectation, a gap is created which should be addressed through strategies
that affect the direction either of expectations or perceptions, or both (Parasuramanet al., 1985;
Zeithamlet al.,1990).

Customer satisfaction
Satisfaction is generally recognized as a pleasurable out come a desirable and state of
consumption or patronization. Precise definitions of satisfaction very, but common them as
emphasized that it is a customer judgment of the consumption experience formed through some
kind of physiological process that involves some form of comparison of what was expected with
what was received. Similarly, consumers may from satisfaction judgments about specific
attributes of a service (example, the responsiveness of staff the amount of information provide,
branch opening hoarse, etc) or about the service over all. Different authors define customer
satisfaction differentially. Kotler (1996) defines customer satisfaction as follows;
“Satisfactions a person’s filings of pleasure or disappointment resulting from cop ring a
product’s preserved performance ( or outcome ) in relation to his /her expatiation”. A consumer
from judgments about the value of marketing offers and makes their buying decision based up on
these judgment (kotler, 1996; pp- 475)

18
Several authors have defined customer satisfaction in various ways:
According to Kotler (2000), satisfaction is a person’s feeling of pleasure or disappointment
resulting from comparing a product’s perceived performance (or outcome) in relation to his or
her expectation.
 Gaither (1994) defines customer satisfaction as the determination of customer
requirements and demonstrated success in meeting them.
 Kotler (2006) again defined customer satisfaction by giving details on the attributes of a
highly satisfied customer. According to him, a highly satisfied customer stays loyal,
longer, and buys more as the company introduces new products and upgrades existing
products; talks favorably about the company and its products, pays less attention to
competing brands and is less sensitive to price, offers service or product ideas to the
company and costs less to serve him than new customers because transactions are routine.

 Kotler and Armstrong (2001) in their Principles of Marketing, define customer

satisfaction as the extent to which a product’s perceived performance matches a buyer’s
expectations. They continued that, if the product’s performance falls short of
expectations, the buyer would be dissatisfied but if performance matches or exceeds
expectation, the customer will be satisfied or highly satisfied. In service quality
literature , customer expectations are understood as desires or wants of consumers
(Zeithaml, berry &Parasuraman 1993) or “what they feel the service provider should
offer rather than would offer” (Parasuraman et al., 1988). Customer perceptions are
defined as “the customer’s judgment of the service organization’s performance”
(Parasuraman et al., 1988).
 Customer satisfaction is a “psychological concept that involves the feeling of wellbeing
and pleasure that results from obtaining what one hopes for and expects from an
appealing product and/or service” (WTO, 1985);
 CS “as an attitude-like judgment following a purchase act or a series of consumer product
interactions.” ( Lovelock &Wirtz, 2007);
 “Satisfaction is merely the result of things not going wrong; satisfying the needs and
desires of consumers.” (Besterfield, 1994); “

19
  Satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing
a product’s performance (outcome) in relation to his or her expectation.” (Kotler& Keller,
2006 p. 144).

Again, CS may be described as a process or an outcome. One area that has received considerable
debate in customer satisfaction literature is whether customer satisfaction should be defined as an
outcome or a process.

Many early definitions conceptualized satisfaction as a process which is currently the dominant
view held by most scholars (Oliver, 1980, Parasuraman et al., 1988). The process perspective
presupposes that customer satisfaction is a feeling of satisfaction that results from the process of
comparing perceived performance and one or more predictive standards, such as expectations or
desires (Khalifa& Liu, 2002). This perspective is grounded in the expectancy disconfirmation
theory proposed by Richard Oliver (Oliver, 1980). The customer is satisfied if the performance
of product/service is equal to his/her expectations and he/she is dissatisfied if the product/service
performance is perceived to be below his/her expectation (negative disconfirmation). If
expectation exceeds perceived performance, the customer is highly satisfied. By taking
satisfaction as a process these definitions do not focus on satisfaction itself but things that cause
satisfaction, the antecedents to satisfaction, which occur primarily during the service delivery
process (Vavra, 1997).
Recent studies have found that satisfaction as an outcome or end result during the process of the
consumption of a service; it is viewed as a post-purchase experience (Vavra, 1997).

This view has its roots in motivation theories that postulate that people are driven by the desire to
satisfy their needs (Maslow, 1954) or that their behaviour is directed at the achievement of
relevant goals (Vroom, 1964). In this way satisfaction is perceived as a goal to be achieved and
can be described as consumer fulfillment response (Rust & Oliver, 1994).

20
Determines customer satisfaction
The followings are some of the determines of customer satisfaction (Zeizhaml, Bitner, p-87,
2003)
Product and service features: customer satisfaction with a product or service is influenced
signification by the customer’s evaluation of the product or service features.
In conducting satisfaction studies, most firms will determine through some means (often focus
groups) what the important feature as well over all service satisfaction.
Customer emotion: customers’ emotions can also a fact their perceptions of satisfaction with
product and service.
These emotions can be stable, pre existing emotions.
Example: Mood state or life satisfaction.
Attribution for service excuse or failure: attributions are the perceived causes of events, influence
prospection of satisfaction as well. When they have been surprised by an out can (the service is
either much better or worse than expected), Customers tend look for the resins and their
assessment of the resins can influence their satisfaction.
Prospection of equality or fairness: customers ask them service did other treated fairing
compared with other customers? Did other customers get better treatments, better price, or better
quality service? Did I pay a fair price for the service?
Notion of Fairness are central to customers’ prospection of satisfaction with products /services.
Other commerce, family members and co workers: in additions to products and service
features are one’s own individual felling and believe, commerce satisfaction is often influenced
by other people.
A customer satisfaction is an ambiguous and abstract concept. Actual manifestation of the state
of satisfaction will vary from person to person, product to product and service to service. The
state of satisfaction depends on a number of factors which consolidate as psychological,
economic and physical factors.
The quality of service is one of the major determinants of the customer satisfaction, which can be
enhanced by using ICT available to survive (Vijay M. K. 2012).

21
Several factors affect customer satisfaction. The kinds of products that retail stores offer to its
customers can cause customer satisfaction or dissatisfaction. Consumers do not buy a product or
service for its own sake. They buy to acquire benefits that the product offers.
They buy to satisfy a need. Products therefore exist for what they fulfill in terms of consumer
needs. It is the essential feature or benefit that the buyer expects to receive from using the
product that motivates buying behaviour (Boateng, 1994).
The service delivery process also plays a key role in customer satisfaction. When the process of
service delivery is too long, it lengthens customer waiting time.
According to (Sasraku, 2007), the physical evidence also plays a role in customer satisfaction.
The physical evidence includes the edifice or buildings and its decorations, an imposing stores
hall with comfortable seats, places of conveniences, etc. The office or building and its external
and internal decorations can satisfy a customer. The customer can pride him or herself as
customer of that store.
Another service element that causes customer satisfaction or dissatisfaction is the people or the
employees delivering the product or service (Covey, 2004). The employees occupy the first point
of contact with the customer. Employee behaviours are therefore important to customers. If the
employee is cold or rude the customer takes it as a measure of the state of the company.
Unhappy employees will have difficulty in keeping customers happy (Dei-Tumi, 2005).
The technology being used by the stores in service delivery could be a source of satisfaction to
customers. When electronic devices like computers are used, they tend to speed up the
processing time of transactions. System and processes solely do no create satisfaction.
Service system quality, behavioral service quality, service transaction accuracy and machine
service quality are necessary to make the technology in use worthwhile(Aldlaigan&Buttle,
2002).

22
Relationship between Service Quality and Customer Satisfaction
According to Suresh chandar et al., (2002, p. 363), customer satisfaction should be seen as a
multi dimensional construct just as service quality meaning it can occur at multi levels in an
organization and that it should be operational zed along the same factors on which service
quality is operational zed. Parasuraman et al., (1985) suggested that when perceived service
quality is high, then it will lead to increase in customer satisfaction. He supports that fact that
service quality leads to customer satisfaction and this is in line with Saravana& Rao, (2007,
p.436) and Lee et al., (2000, p.226) who acknowledge that customer satisfaction is based upon
the level of service quality provided by the service provider. Fen &Lian, (2005, p.59-60) found
that both service quality and customer Satisfaction have a positive effect on customer’s re-
patronage intentions showing that both service quality and customer satisfaction have a crucial
role to play in the success and survival of any business in the competitive market. This study
proved a close link between service quality and customer satisfaction. Su et al., (2002, p.372)
carried a study to find out the link between service quality and customer satisfaction, from their
study, they came up with the conclusion that, there exist a great dependency between both
constructs and that an increase in one is likely to lead to an increase in another. Also, they
pointed out that service quality is more abstract

Research gap
After carefully analyzing various researches studies conducted using the SERVQUAL model,
has been realized that many research work have been carried in different service industries such
as banking, transportation, education, healthcare ,hotel, etc but limited empirical studies has
been conducted using SERVQUAL model to asses service quality in textile and garment
industry .researchers considering textile and garment retailing industry as part of service industry
providing fabrics and apparel for customers .
There is one research which find out the relationship between perceived service quality,
customer expectation and customer satisfaction. it was proven that perceived service quality had
a positive relationship with customer satisfaction and this supports the argument of linking
service quality and customer satisfaction. by using SERVQUAL model and service quality
dimensions this researchers tired to give a conclusion on service quality of ambassador garment
retail stores. from the five service quality dimensions by their study clearly indicate the weakness
part which needs serious improvement and strength of ambassador garment retail stores.
The main thing that makes our research different from other research is lose of company because
of lack of service quality in retail stores Interms of monetary is clearly described .this helps the

23
organization to give more concentration and to understand how much the issue of service quality
is important now a day to be competent and profitable in retail business.
Conceptual frame work
Conceptual frame work; -Explains the underlying process, which is applied to guide this study.

Theoretical Framework
the SERVQUAL model is suitable for measuring service quality and customer satisfaction in the
same dimensions used to measure both service quality and customer satisfaction because it
assumed both are related (Parasuraman et al., 1988) and customer satisfaction is an antecedent of
service quality (Negi, 2009). The SERVQUAL approach integrates the two constructs and
suggests that perceived service quality is an antecedent to satisfaction (Negi, 2009, p.33).
Therefore, in this research, the initial 20 items of SERVQUAL model (in the attached appendix)
are modified to measure the perceived service quality and customer satisfaction in garment
evolution. The model is a summary for the 20-items and researcher want to find out the overall
service quality perceived by customers and which dimensions customers are satisfied with.

24
 Research methodology
Introduction

This chapter gives a brief description on how this research conducted. This include research design,
research approach, sampling design, variables and measurement procedures, method of data collection
and data analysis.

Research Design

Research design is a plan or strategies to use to achieve the expected results. There are different types of
research design depending on the nature of a particular study. This includes case study design survey
study and experimental design study (Cooper et al, 1998). This study carried out using a Case Study
Design. Case study involved when researchers want to gain a rich understanding of the context in the
research. This method provides flexibility because it allows the use of different data collection methods
such as interviews, questionnaires, observations and documentary review.(Saunders et al.,2009) Also, it
is depth and breadth study of variables and maintains a unitary nature of the unity of inquiry over a range
of variables. It allows the use of triangulation which is important in the process of validation data.

Sampling Design and Procedures

The sampling procedure involves non probabilistic sampling because the research is Case study design.
According to Saunder (2009) non probability sampling (or non-random sampling) provides a range of
alternative techniques to select samples based on your subjective judgment to answer research questions
and meet the objectives. Non-probability sampling techniques also provide researcher with the
opportunity to select the sample purposively and to reach difficult-to identify members of the population.
The researcher followed appropriate procedure to avoid errors that may occur and cost the whole study.

Research Approach

According to Saunders et al., (2009), there are two main research approaches: deduction and induction.
With deduction a theory and hypothesis (or hypotheses) are developed and a research strategy designed to
test the hypothesis. With induction, data are collected and a theory developed as a result of the data
analysis. At this study researcher used induction approach because there was no hypothesis testing and
data was qualitative in nature.

25
Variables and Measurement Procedures

There are two types of variables which are dependent and independent variables. A dependent variable
changes in response to changes in other variables. An independent variable causes changes in a dependent
variable Saunder (2009). For this study dependent variables was customer satisfaction where independent
variables was service quality dimensions where any change to any dimension resulted into change in
satisfaction level.

The SERVQUAL model is used to assess customers’ expectations and perceptions regarding service
quality in garment evolution. Both expectations and perceptions are measured using a 5-point scale to rate
their level of agreement or disagreement (1- strongly disagree and 5- strongly agree), on which the higher
numbers indicate higher level of expectation or perceptions. Perceptions are based on the actual service
they receive in EVO. While expectations are based on past experiences and information received about
garment evolution. Service quality scores are the difference between the perception and expectation
scores (P-E) with a possible range of values from -4 to +4 (-4 stands for very dissatisfied and +4 means
very satisfied). The quality score measures the service gap or the degree to which expectations exceed
perceptions. The more positive the P-E scores, the higher the level of service quality leading to a higher
level of customer satisfaction. Satisfaction and service quality are both treated together as functions of a
customer’s perceptions and expectations. In most cases, when expectation and perception are equal,
service quality is satisfactory. In this study, we use the disconfirmation paradigm which is based on the
discrepancy theories. According to this paradigm, consumer’s satisfaction judgments are the result of
consumer’s perceptions of the difference between their perception of performance and their expectations.
Positive disconfirmation leads to increased satisfaction while negative disconfirmation leads to decreased
satisfaction. This theory has been used to develop questionnaire.

26
Method of Data Collection
Both primary and secondary data sources used to answer research questions. Primary data was mainly
obtained through the administered questionnaires. Questionnaire as a general term to include all
techniques of data collection in which each person asked to respond to the same set of questions in a
predetermined order (deVaus 2002).

Data Collection Tools

Questionnaires

The SERVQUAL 5 dimensions (Tangibles, Reliability, Responsiveness, Assurance, and Empathy) were
used which are subdivided into 22 statements, which were directed to measuring service quality in EVO.
As stipulated by the SERVQUAL model, the statements are divided into two parts, the first part seeks to
measure the expectations of customers and the second part seeks to measure their perceptions. There was
also a part which measure satisfaction level for the purpose of knowing factors that hinders satisfaction,
the measures to be taken to improve customer satisfaction and the last party which is demographic part
that provides general information about respondents on age, gender, and average monthly expenditures.

This was to enable to get a better understanding of the type of respondents and relate it to how they
perceive service quality in garment evolution. The SERVQUAL model was used as the basis for the
structured questionnaire because it provides information in research questions in which it trying to show
how customers perceive service quality in garment evolution by assessing the difference between the
expectation and perception of services experienced by customers in EVO. This enabled to know how
perceived service quality by customers and identify which items in the SERVQUAL dimensions
customers are satisfied with. Also factors that hinder customer satisfaction in EVO and what should be
done to improve customer satisfaction.

Administering of Questionnaires

As mentioned earlier in this study, a convenience sampling technique has used and had 86
questionnaires to administer which it took 7 days to administer these 86 questionnaires but
unfortunately we only received 80 questionnaires that were complete. This was because some
people got the questionnaires and went away with them and others did not completely answer the
questions and so considered them invalid.

27
Data Processing and Analysis

Data analysis refers to examining what has been collected in survey or experiment and making deductions
and inferences. Furthermore, data analysis is computation of certain measures along with searching for
patterns of relationship that exist among data-groups. Whereas, data processing consists of a number of
closely related operations: editing, classification, coding, and tabulation. Data collected from respondents
and documents was processed, that was editing, classification, coding and tabulation. All completed
questionnaires/schedules thoroughly checked for completeness, accuracy and uniformity. The raw data
obtained from field was prepared for analysis by transforming all of them into codes and entering into
spreadsheet packages. The analysis based on quantitative data to be collected and some extent the
qualitative information from questionnaires.

Coding

The SERVQUAL dimensions/items are main variables used in this study and coded these
dimensions/items in order to ease analysis of data collected. Also, demographic information was collected
from respondents and these variables have to be coded as well for analysis. Here is the coding of the
variables for analysis.

SERVQUAL Dimensions/Items

Tangibles (TA) TA1 evolution have up-to-date equipments.

TA2 Physical facilities are virtually appealing.

TA3 Employees are well dressed and appear neat.

TA4 Physical environment of the evo is clean.

Reliability (RL)

RL1 When they promise to do something by a certain time, they do it.

RL2 When customer has a problem; they should show sincere interest in solving the problem.

RL3 TTCLs perform the service right the first time.

RL4 They provides their services at the time they promise to do so.

28
RL5 EVO keeps their records accurately.

Responsiveness (RN)

RN1 Employees make information easily obtainable by customers.

RN2 Employees give prompt services to customers.

RN3 Employees are always willing to help customers.

RN4 Employees are never too busy to respond to customers requests.

Assurance (AS)

AS1 the behaviour of employees instill confidence in customers

AS2 Customers feel safe in their transactions with the employees

AS3 Employees are polite to customers.

AS4 Employees of evolution have knowledge to answer customers’ questions.

Empathy (EM)

EM1 TTCLs give customers individual attention.

EM2 Operating hours of evo stores is convenient to customers.

EM3 Employees of evolution stores give customers personal service.

EM4 evo employees have their customers’ interest at heart.

EM5 Employees of evo understand the specific needs of their customers.

Demographics (DM)

DM1 Gender (0=male, 1=female)

DM2 TTCL spending per month (0=0 to 5,000,000tshs, 1=5,000,000 to

15,000,000tshs, 2=15,000,000 to 15,000,000tshs, 3=above 25,000,000tshs

3.9.2 Re-coding

TA- Average gap score for tangible items = (TA1+TA2+TA3+TA4)/4

RL- Average gap score for reliability items = (RL1+RL2+RL3+RL4+RL5)/5

RN- Average gap score for responsiveness items = (RN1+RN2+RN3+RN4)/4

AS- Average gap score for assurance items = (AS1+AS2+AS3+AS4)/4

29
EM- Average gap score for empathy items = (EM1+EM2+EM3+EM4+EM5)/5

OSQOSQ- Overall service quality = (TA+RL+RN+AS+EM)/5

Method of Data Analysis

This chapter presents and discusses findings of data from the field on assessing customer satisfaction and
service quality using SERVQUAL model in garment evolution, The study was aimed at to determine
overall service quality perceived by customer, service quality dimensions that brings satisfaction, factors
hindering customer satisfaction in garment evolution retail stores and to determine what should be done to
improve customer satisfaction. Data analysis for this study was done in two steps, the preliminary
analysis and the main analysis. For preliminary analysis which involves mainly descriptive statistics to
summarize data, the demographic characteristics of the respondents were outlined in order to simplify the
understanding of the data. The main analysis involved the gap score analysis whereby descriptive
statistics were applied to summarize means of perceptions and expectations of customers. We calculate
the perception minus expectation scores for each item and dimension in order to identify the service
quality gaps.

To analyze the result researchers use the SERVQUAL- model statements (Parasuraman
et al, (1990). That means that researchers measure customer expectations and customer
perceptions and make a comparison between different areas of service. Each answer
alternative is given a score and the score for expectations is summarized and the score
for perceptions is summarized. Then the difference between expectations and
perceptions is counted and a judgment about the service quality is given. The overall
service quality level is showed through counting the score of each dimension and then
summarize them. Jannadi and AlSaggaf (2000) explains that the calculation shows a gap
between perceptions and expectations and through that gap the service will be evaluated
through the following formula.

SQi (feature) = Pi – Ei

Where

i = each feature

30
SQ = Service Quality

P = Perception score

E = Expectation score

Standard deviations are also used to measure dispersion of data around the mean. To be
able to analyze the different answer options researchers give each option different
points, this method is called Likert scale. The expectations and perceptions are evaluated
through 22 statements and the answer options are rated through five point Likert scale.
The result is also linked with theory to identify which areas the company should
improve.

31