Measuring the quality of public payment counter service: A

SAS Forum KL 2015_ Muzalwana Abd Talib

Measuring the quality of public payment counter service: A

statistical approach

Muzalwana Abdul Talib

Department of Applied Statistics, Faculty of Economics and Administration


Outline

• Introduction

• Problem Statement

• Methodology • Software: SAS JMP Pro

• Results & Findings

• Discussion & Conclusion

• Q&A


“The measurement of service quality is an elusive and abstract construct that is difficult to define and measure..”

(Cronin & Taylor, 1992) “Service quality is perceived by customers, comparison of

what the consumers feel service firms should offer with perceptions on performance of firms providing the services”

(GrÖnroos, 1984; Lovelock & Writz, 2011)

Introduction


Parasuraman et al (1985,1988)

“Service quality is perceived by customers, comparison of what the consumers feel service firms should offer with perceptions on performance of firms providing the services”

Service Quality Measurement

SERVQUAL Model - Tangibility, reliability, responsiveness, assurance & empathy

Haywood-Farmer (1988)

Service provider need to translate customer requirement into detailed

process specifications.


Research Problem 1. Lack of information on customer satisfaction to further improve

the service quality at payment counter. 2. Which aspect of counter service that need quality improvement

is unknown. 3. Performance level of front-line staff is unknown

Measuring the quality of public payment counter service : A Case Study of a municipal council


Research Objective 1. To determine the dimension of service quality based on customer

satisfaction. 2. To explore the relationship between customer satisfaction and

service quality dimension. 3. To identify which service dimension that need quality

improvement 4. To examine the performance based on service quality dimension.



Staff performance at the counter

Payment counter service process

Physical Facilities & Department Layout

Measuring Service Quality – A Conceptual Framework

Assurance

Empathy

Responsiveness

Reliability

Tangible

Service Quality Dimension

Customer Satisfaction



• Survey Technique

• Convenience Sampling : 150 customers

• Data collection: 9.00 am – 4.00 pm (2 weeks)

• Instrument: Structured Questionnaire

I. Demographic background

II. Service Quality

• staff performance

• service process

• physical facilities

based on Parasuraman SERVQUAL measured statements (Likert statement: 1-strongly disagree; 7-strongly agree)

III. Overall Satisfaction

Methodology


Methodology


Research Objective Statistical technique

1. To determine the dimension of service quality based on customer satisfaction.

2. To explore the relationship between customer satisfaction and service quality dimension.

3. To identify which service dimension that need quality improvement

4. To examine the performance based on service quality dimension

Factor Analysis

Hypothesis testing ,

Pareto Analysis

Control Chart


Demographic Profile

28%

21.3%

20%

11.3%

11.3%

8.1%

85.3%

14.7%

79

58

13


Service Dimension Mean (µ) / Average

Values

Associated to OVERALL

SATISFACTION?

RELIABILITY 5.7492 Yes

TANGIBILITY 6.1819 Yes

EMPATHY 5.4838 Yes

Results: Research Objective 1 & 2

*µ ≥ 4 : Indicates satisfaction


• Reliability dimension based on the extent to which the payment counter can provide credible services.

• Tangibles cues are physical characteristic of service such as seats are in good conditions, well function air conditions and presentable staff appearance are customer when evaluating service quality.

• Empathy are of concern are the aspect of delivering service in good manner such as providing good hospitality, good rapports and concerns about customers’ welfare.

3 Service Quality Dimensions identified

Results: Research Objective 1 & 2


Pareto Analysis

Measured statements

Dimension

Reliability

Empathy

Reliability

Empathy

Reliability

Reliability

Empathy

Reliability

Empathy

Reliability

Measured Statement # of

dissatisfaction

Staffs give greetings and smiles 24

Staff is concern about customers welfare 22

Quick respond to customer report 20

Staffs respond to customers’ need 19

Staffs provide hospitality and warm smile 15

The service are timely 15

Staffs tell customers when specific service

will be performed 15

The service time given is too short 14

Staffs have knowledge 14

Staff have patience when dealing with

customers 13

Results: Research Objective 2


No of sample No of sample

PHASE 1 (RETROSPECTIVE PHASE): Paramater Estimation Stage

PHASE 2 (PROSPECTIVE PHASE): Actual Quality Monitoring Stage

Out of

Statistical

Control

Results: Research Objective 3 Control Chart: Reliability Dimension



PHASE 1 (RETROSPECTIVE PHASE): Paramater Estimation Stage PHASE 2 (PROSPECTIVE PHASE): Actual Quality

Monitoring Stage

Out of

Statistical

Control

Results: Research Objective 3 Control Chart: Tangbility Dimension



PHASE 1 (RETROSPECTIVE PHASE): Paramater Estimation Stage

PHASE 2 (PROSPECTIVE PHASE): Actual Quality Monitoring Stage

Results: Research Objective 3 Control Chart: Empathy Dimension


Service Quality

Dimension

State of Statistical

Control

Out of Control Sample

Reason for Out of

Control Condition

RELIABILITY No 23 Too many customers –

close to deadline to

remit tax assessment TANGIBILITY

No 22 & 23

22

EMPATHY Yes - -

Results: Research Objective 3


Multivariate Control Chart

No of sample


• This study utilizes two statistical process control (SPC) tools, Pareto analysis and control charts to measure the quality of service provided based on three service dimensions identified (Reliability, Tangibility, Empathy)

• The application of SPC tools like Pareto Analysis and control charts in this study, have successfully shed light into the specific dimension of the counter service that need quality improvement.

• Control charts also enable us to identify the point of time when quality is out of control for further investigation and future improvement.

Discussion & Conclusion – Service Quality at the Municipal Council


• Other than measuring customer satisfaction on quality of front line service and its processes, measurements on number of errors, waiting time and delays also can be used effectively to measure service quality.

• For continuous improvement of service processes, the

implementation of SPC should receive larger consideration in service industry and investigated further by quality practitioners.

Discussion & Conclusion – Service Quality at the Municipal Council


Acknowledgement

This study is based on a research work by Nur Juliana

Abdul Shukor, a Master of Applied Statistics student.

Thank you.

Documents

Measuring the quality of public payment counter service: A