Download pdf - INTERNATIONAL JOURNAL OF ACADEMICS & RESEARCH (IJARKE) · 2019-08-19 · Real estate can be defined or described as land, improvements and buildings thereon, including attached items

INTERNATIONAL JOURNALS OF ACADEMICS & RESEARCH ISSN: 2617-4138 IJARKE Business & Management Journal DOI: 10.32898/ibmj.01/2.1article05

www.ijarke.com

45 IJARKE PEER REVIEWED JOURNAL Vol. 2, Issue 1 Aug. – Oct. 2019

Effects of Service Quality Dimensions on Customer Satisfaction in Real

Estate Industry in Kenya

Safari Irene Sanita, Jomo Kenyatta University of Agriculture & Technology, Kenya

Dr. Benedict Mutuku, Jomo Kenyatta University of Agriculture & Technology, Kenya

1. Introduction

Real estate can be defined or described as land, improvements and buildings thereon, including attached items and growing

things. It is virtually the same as real property except real property includes interests which are not physical such as a right to

acquire the property in the future (Gerald N Hill et al., 2015).Also the business of real estate; profession of buying, selling or

renting land, buildings or housing. It is a legal term used in jurisdictions such as the United States, United Kingdom, Canada,

India, Pakistan, Africa and New Zealand. Real estate in the world is majorly developed and managed by public, private and state

owned red chip enterprises. It is a significant feature of the economy of many developed countries in the world. The real estate

market in the United Kingdom is the largest or second largest in Europe after Germany depending on the method of measurement

(Morgan et al, 2014).

For a few years, many Asian Countries have developed a keen interest on the real estate market in Europe. Many developers

and investors from China have seen that the UK government gives support and encouragement to these projects, making London

seem like the ideal area when looking at European markets for higher returns and strong growth. Hoping to aim for the desire and

need of being seen as a hub for diversification and safety in the eyes of its investors, which is a successful venture considering its

political and economic stability. Elections and other political events that occur regularly have a small impact on the legal system.

Moreover, due to globalization, many European countries in the world are pushing the boundaries by adapting to the latest

technological advances. Virtual reality, which is more prominent in videogames, has been accommodated by real estate listing

portals to highlight the possibility of touring properties remotely (Radford et al, 2016).

Real estate services are almost the same everywhere in the parts of the world. However, it is a matter of distinguishing the

services provided especially with the dynamic business environment and the needs of the markets. In Europe, the real estate

services are thriving and attract a unique way of life. Services offered include: residential real estate sales, new home and land

marketing, short sale and foreclosure, insurance brokerage, mortgage services, moving services, consultation and development

among others.

Real estate sector in Kenya contributes 10.6 % of the Kenya GDP and has shown the greatest growth at 9.9 %, compared to -

2.7 % in financial services and 30% in agriculture sector. In Kenya, the sector has consistently outperformed other asset classes in

the, last five years, generating returns of between 25% and 30% and making it the most lucrative business to venture in with zero

losses (KNBS, 2015). Residential units in Kenya generate an average rental yield of 5% while commercial space generates an

average yield of over 9%. According to Cytonn Investments, the report indicates that the total return, including rental yield and

appreciation, is in the region of 28% High Returns Recent Developments Market Outlook. The real estate sector; in and which

INTERNATIONAL JOURNALS OF ACADEMICS & RESEARCH (IJARKE Business & Management Journal)

Abstract

As customers are more exposed to different types of real estate setups and experiences, they have developed a complex set of

attitudes towards selecting better real estate firms for services and management. The general objective of this study was to

investigate the effect of service quality dimensions on customer satisfaction in the real estate industry with a specific focus of

the firms in Mombasa County based on the service quality dimension: RATER. Descriptive statistics was employed and data

analyzed using SPSS. The findings indicated that majority (36%) of the respondents was between 35 and 44 years implying

that the respondents were old enough to provide valuable responses. The study concluded it‟s clear that service

responsiveness, service reliability, service assurance, service tangibility and service empathy greatly affect customer

satisfaction. The study recommended that the managers in the real estate industry should ensure that there is continued and

sustainable service quality for good returns and great performance. Employees should be able to provide quality services to

their clients to ensure service quality and customer satisfaction. The future research may extend this study focusing on public

sectors facilities in Kenya and multi-national real estate firms around the world.

Key words: Service Quality Dimensions, Customer Satisfaction, Real Estate, Kenya


www.ijarke.com


was previously dominated by individual developers has now seen entry of more institutional developers such as Sacco‟s, private

equity firms and foreign institutions in major towns around the country. Rapid population growth of 4.2 % per annum (KNBS,

2015) is creating increased demand for housing, as families grow and consumer needs change to reflect independent living. The

demand has also been aided by the high urbanization rate of 4.4% per annum in Nairobi area and the metropolis (KNBS, 2015).

The new middle class have created a huge opportunity for integrated housing developments and master planned communities.

Improved infrastructural developments have opened up new development areas. These include improved roads, expanding airports

and the standard Gauge Railway, electrification, ICT and telecommunication systems (Soko Directory, 2016). Professional agents

in Kenya provide broad knowledge and expertise about the marketplace to streamline the home buying and leasing process

without any hassles. The real estate market in Kenya has several successful developments in several parts of the country. The

companies work with other developers, landowners and home builders to handle new home sales and marketing for these new

developments.

In Kenya, the housing demand has always outstripped supply, especially in the lower segment of the market. Developers over

the years filled the gap in the middle to upper reaches of the sectors that are seen to be more profitable. In Nairobi, the capital and

the largest city of Kenya, there is one of the largest expatriate communities in the continent due to its significant number of

multinationals. The rebirth of property development in Nairobi has attracted a lot of global attention. In its 2012 Wealth Report,

real estate companies, it has outpaced cities like Miami (19.1%), London (12.1%), Moscow (9.8%), New York (3.1%) and

Singapore (-4.7%). According to Nairobi Property Price Rally, in 2012 both Nairobi and Mombasa were the only cities in the

Southern hemisphere to have reported double digit property price increases, out of 71 cities surveyed in the Prime International

Residential Index. In Kenya, Nairobi which consists of 4 out of 47 counties in Kenya, it is said that it generates up to 60% of the

nation‟s wealth.

Mombasa is the second largest city in Kenya. Prime land in Mombasa is up for grabs as property boom like the one witnessed

in the 1970s continues to push up home prices in the coastal town. Most sought areas in Mombasa are: island, Nyali, Bamburi,

Shanzu and Mtwapa areas. Nyali houses some of the most expensive homes in Kenya. Shanzu is another affluent neighborhood

right past Sarova Whitesands Beach Resort. The area houses high profile housing developments. Other great development around

Mombasa area is the English Point Marina which is East and Central Africa‟s first floating pontoon marina. It offers apartment

living in comfort, luxury and security of a hotel that is being managed by Pinewood Village Beach Resort (English Point Marina,

2016). Units sold cost between Ksh. 36-150 million (US$ 410,000-US$1.8million). The total cost of the project was about Ksh.5

billion (US$60million).

2. Statement of the Problem

Service quality is often correlated with perceived value, trust, satisfaction and loyalty. An investigation was done to assess the

relationship between service quality and customer satisfaction and their subsequent effects on purchase intentions and conclusion

made was that perceived service quality leads to satisfaction and that satisfaction in turn has a significant positive effect on

purchase intent. This is not the case in most of the real estate firms in Kenya. Furthermore, if a service oriented firm has the

objective of outperforming its competitors and thus gain competitive advantages, then it is crucial to offer relatively greater

perceived qualities and particularly those important to its customers (Bei and Shang, 2016). Customer satisfaction and service

quality in the real estate firms results from experiences and thus if people do not attain their expectations they will become

dissatisfied (Kim et al., 2008). In this context, it is important that management of real estate firms in Kenya keep service levels

higher than the customers deserved expectations to avoid dissatisfaction (Yoon and Ekinci, 2013).The modern customer expects to

be treated as an equal partner with courtesy and efficiency thus the need of organizations to make customer feel the value of using

its products or services is greater than the price the customer is paying.

Dissatisfied customers would hurt the long term profits and success of the firms due to failure of the customer to return for

future business; reduction in customer visits; negative word of mouth advertising. Service Quality represents everything an

organization should ensure or accomplish in order to have products and services that will satisfy the customers‟ requests

concerning quality and the requests of the existent regulations. According to the ISO 9000:2000 standard, quality management

coordinates activities in order to direct and control firms regarding management of quality. This will increase efficiency,

reliability and improved feedback (Cordos, 2003). Ignoring customer value may cause lowered customer satisfaction and reduce

repeat business and purchase intentions. Basically, organizations‟ efforts for improving service quality and customer satisfaction

should be conducted holistically, including value enhancement (Kim et al., 2008).

Given the financial and resource constraints under which firms must manage it is essential that customer expectations are

properly understood and measured through various aspects including re-purchase of any available properties, referrals through

word of mouth to other respective buyers, loyalty in brand and many other forms. Providing excellent service quality and

achieving customer satisfaction is the most important and challenging issue facing the contemporary service industry (Hung et al.,

2003). Through such perspectives, many problems arise due to gaps based on perception and expectations both by customers and

real estate firms (management). When customer expectations are greater than their perceptions of received delivery, service

quality is deemed low.


www.ijarke.com


3. Objective of the Study

The general objective of the study was to assess the effects of service quality dimensions on customer satisfaction in the real

estate industry with a specific focus on Mombasa County.

4. Review of Literature

4.1 Theoretical Review

4.1.1 Assimilation Theory of Customer Satisfaction

In a recent research dissertation done by Jacob, (2016) he wrote about the Assimilation theory is based on Festinger‟s (1957)

dissonance theory. Dissonance theory posits that consumers make some kind of cognitive comparison between expectations about

the product and the perceived product performance. This view of the consumer post-usage evaluation was introduced into the

satisfaction literature in the form of assimilation theory. According to other researchers, consumers seek to avoid dissonance by

adjusting perceptions about a given product to bring it more in line with expectations. Consumers can also reduce the tension

resulting from a discrepancy between expectations and product performance either by distorting expectations so that they coincide

with perceived product performance or by raising the level of satisfaction by minimizing the relative importance of the

disconfirmation experienced. Peyton et al (2014) argues that Assimilation Theory has a number of shortcomings. First, the

approach assumes that there is a relationship between expectations and satisfaction, but it does not specify the way in which the

expectation disconfirmation can lead to satisfaction or dissatisfaction. Second, the theory also posits that consumers are motivated

enough to adjust either their expectations or their perceptions about the performance of the product. Some researchers have found

that controlling for actual product performance can lead to a positive relationship between expectation and satisfaction. Therefore,

it would appear that dissatisfaction could never occur unless the evaluative processes were to begin with negative consumer

expectations.

This theory is useful to this study because it assists the overall customer or consumer to make a sort of cognitive comparison

between the expectations regarding the product or service and the perceived performance. If there is a discrepancy between

expectations and the perceived performance, then the dissonance will not fail to appear. This point of view on post-usage

evaluation was introduced in this study to discuss satisfaction under the form of the theory of assimilation (Florin & Sergiu, 2014).

4.1.2 Andre M. M. Customer Satisfaction Theory: Service Profit Chain

Andre M et al show that clearly there is no much commitment to customer satisfaction in many organizations. The theory

behind this encapsulates all one needs to know about how customer satisfaction and then customer loyalty are linked to the quality

of customer service and ultimately leading to organization profitability. In short, keeping the customers satisfied translates to

benefits to an organization. The service-profit chain establishes relationships between profitability, customer loyalty, and

employee satisfaction, loyalty, and productivity. The links in the chain (which should be regarded as propositions) are as follows:

Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is

largely influenced by the value of services provided to customers. Value is created by satisfied, loyal, and productive employees.

Employee satisfaction, in turn, results primarily from high-quality support services and policies that enable employees to deliver

results to customers.

Top-level executives of outstanding service organizations spend little time setting profit goals or focusing on market share, the

management mantra of the 1970s and 1980s. Instead, they understand that in the new economics of service, frontline workers and

customers need to be the center of management concern. Successful service managers pay attention to the factors that drive

profitability in this new service paradigm: investment in people, technology that supports frontline workers, revamped recruiting

and training practices, and compensation linked to performance for employees at every level. These techniques calibrate the

impact of employee satisfaction, loyalty, and productivity on the value of products and services delivered so that managers can

build customer satisfaction and loyalty and assess the corresponding impact on profitability and growth. In fact, the lifetime value

of a loyal customer can be astronomical, especially when referrals are added to the economics of customer retention and repeat

purchases of related products.

A research done by Harvard Business Review indicates that in 1991, one proprietary study of a property-and-casualty

insurance company‟s employees, 30% of all dissatisfied employees registered an intention to leave the company, a potential

turnover rate three times higher than that for satisfied employees. In this same case, low employee turnover was found to be linked

closely to high customer satisfaction.

The relevance of this theory to this study is to establish relationships between profitability, customer loyalty, employee

satisfaction, loyalty, and productivity. Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of

customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by


www.ijarke.com


satisfied, loyal, and productive employees. Employee satisfaction, in turn, results primarily from high-quality support services and

policies that enable employees to deliver results to customers.

4.2.3 Theory of Service Quality (SERVQUAL)

In his research, Omollo (2016), he mentioned that ,Parasuraman et al. proposed service quality model for the first time and

said service quality can be measured through functional quality dimensions which has five components (reliability, assurance,

tangibility, empathy and responsiveness). These components can be well understood by looking at what Kotler and Keller, (2015)

has written about them. These gaps can be evaluated through several dimensions which will help one to be able to evaluate and

cater for the gaps.

Service quality is linked to the concept of perceptions and expectations. Customers evaluate service quality by comparing what

they expect with how a service provider actually performs. Thus, service quality can be defined as the difference between

customers‟ expectations of service and their perception of actual service performance; formally the degree and direction of

discrepancy between customers‟ service perceptions and expectations. Service quality is a measure of how well the service level

delivered matches customer expectations. Delivering quality service means conforming to customers‟ expectations on a consistent

basis. Customers‟ perceptions of service quality result from a comparison of their before-service expectations with their actual-

service experience. The service will be considered excellent, if the perception exceed expectations; it will be regarded as good or

adequate, if only equals the perceptions; the service will be classed as bad, poor or deficient, if it does not meet them. Based on

this the authors developed a scale for measuring service quality, which is mostly popular known as SERVQUAL. This scale

operationalizes service quality by calculating the difference between expectations and perceptions, evaluating both in relation to

22 items that represent the 5 service quality dimensions knows as Tangibles, Reliability, Responsiveness, assurance and Empathy

(Zeithaml & Parasuraman, 2004).

Parasuraman et al., states that the components such as tangibles which are equipment that the personnel use to offer the service

as well as their own physical appearance these create a perception on the consumers mind on the level of service to expect,

reliability which is the ability of the staff to perform the promised service dependably and accurately as it was promised in the

initial stage of the service encounter, responsiveness which is about the willingness of the staff in the service company to help and

provide the service promptly without any delays, assurance which includes the competence of the staff, courtesy of the staff and

credibility, empathy which entails the attention that the representative provides to the customer including the access to

information, how it is communicated as well as understanding the customer.

The knowledge gap explains the difference between actual customer expectations and management‟s idea or perception of

customer expectations. The difference between what customers expect and what management perceive as their expectation, is

often the result of overlooking the need to fully understand customer‟s expectations (Gachengo, 2014). The service design and

standards gap indicates a mismatch between management expectations of service quality and service quality specifications. The

awareness of these relationships can assist service managers to allocate resources more judiciously and establish more realistic

expectations of their customers. The Service Performance gap arises when there is a significant discrepancy between designed

service and actual delivery of it. The difference between service quality specifications and service delivery arises from role

ambiguity that causes conflict in an organization. The Communication gap indicates an inadequate horizontal communication and

propensity to over-promise customers raises their expectations sometimes to unrealistic level beyond the organization‟s capacity.

When promises do not match delivery, the customer is dissatisfied leading to loss of loyalty in the part of the customer to the

organization. Customers‟ Expectation versus Perceived Service shows the discrepancy between customers‟ expectations and their

perception of the service delivered is as a result of the influences exerted from the customer side and the shortfalls on the part of

the service provided. Thus, the customer‟s expectations are therefore influenced by the extent of personal needs, word of mou th

recommendation, past service experiences and external communications.

The significance of this theory to this research is the ability to keenly identify customer demands and preferences of different

products and services as a subject of concern for many business areas. For the service industries it means providing a variety of

products and services that a customer wants. However, these customers‟ preferences and choices are not similar from one

customer to another. These differences make it hard for the services companies as for other businesses to meet diverse demands.

Thus, the knowledge of customers‟ preferences and their choices of products and services provided is one of the most significant

characteristic for meeting customers‟ expectations and exceeding their perceptions. Measurement allows for comparison before

and after changes, for the location of quality related problems and for the establishment of clear standards for service delivery

(Shahin, 2016). Based on the abovementioned nothing would benefit companies more than an accurate and valid measure of

service quality that helps them in measuring their performance. Such a measure would help them in evaluating their performance

and taking corrective actions wherever required in order achieve their mission (Guar & Agrawal, 2016).

4.2.2 Reserve Theory (Real Estate SERVice quality)

Tuzovic et al describes that Nelson and Nelson developed reserve (Real Estate SERVice quality) which is an adoption of

SERVQUAL and is predominantly used for measuring real estate service quality. It consists out of 31 statements in seven


www.ijarke.com


dimensions appose to SERVQUAL which consists out of 22 items in five dimensions. The seven dimensions of Reserve are

known as tangibles, reliability, responsiveness, assurance, empathy, professionalism and availability. The dimensions tangibles,

reliability, responsiveness, assurance and empathy have been discussed above under SERVQUAL. The remaining two dimensions

of this theory will be discussed next herewith. The author states that availability is the openness and effortlessness to contact the

institution or employees. The customer should find it easy to communicate with the real estate agents by means of telephone,

email or web during business hours. The author states that all communication should be in a language that the customer can

understand, the customer should be kept informed during the purchase process and the employees should listen to the customer.

Real estate firms need to communicate with buyers or sellers preferably in their home language or at least a language that they can

understand; the real estate firm needs to keep the buyer or seller up to date with the progress of the sale and the real estate firm

needs to listen to the customer to make sure that they are showing the right kind of residential properties to a potential buyer or

that the potential seller is happy with the times and dates the residential property is being sold. The relevance of this theory to this

study is the ability to state that professionalism is a candid process where the employee works together with the customer to

achieve the best possible outcome. The real estate agent should build a good partnership with the buyers in order to deliver them

the best possible service. Moreover, it will assist to determine the effectiveness of service development and improvement

initiatives in targeted dimensions. This theory can also be used in various service setting/sectors and provides a basic skeleton that

can be adapted to fit the specific attributes of a particular organization. It is applicable across different empirical context and

various countries and cultural backgrounds

4.2 Conceptual Framework

Conceptual framework is a concise description of the phenomenon under study accompanied by a graphical or visual depiction

of the major variables of the study Mugenda (2014). A conceptual framework shows the relationship between independent and

dependent variables. The variables will be developed based on the literature review and the purpose of the study.

Independent Variables Dependent Variable

Figure 1: Conceptual Framework

Service Reliability

Timeliness of services

Accurate records

Dependable staff

Service Assurance

Trustworthy

Polite

Adequate support

Expertise

Customer satisfaction

Customer service

Customer loyalty

Performance

Customer

Relationship

Management

Service Tangibility

Well dressed and neat

Up to date records

Visually appealing

facilities

Service Empathy

Individualized attention

Convenience

Customer needs

Service Responsiveness

Respond promptly

Willingness to help

Performance

expectation


www.ijarke.com


4.3 Discussion of Study Variables

4.3.1 Service Reliability

Zeithaml et al explains that reliability is the ability to perform the promised service dependably and accurately or delivering on

its promises. This dimension is critical as all customers want to deal with firms that keep their promises and this is generally

implicitly communicated to the firm‟s customer. Especially it involves accuracy in billing, keeping records correctly and

performing the service at the designated time (Mutuku, 2017). Customers normally want to count on their providers. They value

that reliability. It is three times more important to be reliable than have shiny new equipment or flashy uniforms. Realtors first

and best efforts are better spent making services reliable (Chris, 2016). Most realtors promise a lot when it comes to offerings.

However, the exact opposite is the same after they have sealed the deal. Whatever promises they made usually do not come true.

Organizations today are interested in providing top notch services to their clients however this is not the case in other

companies. The dimension of reliability is largely concerned with the service outcome. Customers view reliability as the service

core and they tend to have higher expectations for it. A customer‟s zone of tolerance for poor service is influenced by a number of

factors. Customers are less willing to relax reliability expectations. As such, their zone of tolerance is smaller than those of the

other service dimension. For example, a more experienced customer is more likely to have higher expectations and to be the

squeaky wheel.

In addition, emergency and service failure situations tend to raise customers‟ expectations- customers will be more demanding

when urgent condition exists or when the service was not performed properly the first time (Ottawa Chamber of Commerce,

2014). Providing a high quality service experience requires an organization to recruit the most promising employees, provide them

with ongoing training in interpersonal and problem solving skills, measure and reward employees for delivering service with

excellence (Janet, 2014). Parasuraman et al reveled that reliability was the most important and empathy least important dimension

across wide array of service type.

The essence of service is keeping promises. Superior real estate providers do what they say they will do. For example, they

follow up and report to owners the number of times a home has been shown each month. They also do what customers can

reasonably expect them to do even if not overtly promised. For example, they check and double check a contract for accuracy.

Superior providers are conscientious, detail minded and competent. Performing a service reliably is part attitude and part design.

In the real estate industry, it requires a blend of desires and systems that need to be managed. Realtors should seek continually to

improve those aspects of the service systems most prone to failure. Redesigning or simplifying the service, better training and

additional evaluation are among the possibilities.

Customer interactions are emotional exchanges as well as factual ones, so give your employees the tools to share a happy

customer‟s enthusiasm or reduce a frustrated customer‟s tension. To your customers, any member of your staff becomes the “face

of your company.” When your employees have the power to please customers, they better reflect your entire organization.

Instead of focusing on speed and productivity, give your frontline employees permission to take the time they need to make

each customer feel valued. When your staff members make customers feel truly appreciated, and not just “heard,” customer

satisfaction rises. When your employees have the power to please customers, they better reflect your entire organization. Instead

of focusing on speed and productivity, give your frontline employees permission to take the time they need to make each customer

feel valued. When your staff members make customers feel truly appreciated, and not just “heard,” customer satisfaction rises.

When everyone in your company can act as support, customers can get their questions answered promptly. Saving your customers

additional calls to the help desk goes a long way toward making them happy. In turn, employees who interact most with customers

will have many good ideas for improvement if they are properly involved in the improvement process. In most cases, they would

welcome the chance to make these improvements and make customers more satisfied. Customers perceive the ability to look up a

tracking number or read frequently asked questions as less effort than calling a customer care center, so offering these options also

increases customer satisfaction (Mutuku, 2014).

Good recordkeeping can help you to find the information you need. It promotes the creation of full and accurate records in the

first place. It also involves storing and managing records appropriately so that the information will be available to you when you

need it. Ensure that you are up to date on the information systems and tools in your workplace including their security,

confidentiality and appropriate usage by ensuring that employees protect any passwords or details given to you to enable your

access to any systems, Make sure written records are not left in public places where unauthorized people might see them

(including any electronic systems or displays) lastly Ensure that an entry is made in the customers private records whenever an

employee serves a customer (Mutuku, 2014).

Staff dependability is an important attribute to look out for in an employee as it increases a wide variety of tasks. A dependable

employee not only shows up for work on time every day but also produces consistent work. Gradually, they become an essential

team player in the company as they build a strong working relationship; not only with management but with their colleagues as

well (Heryati, 2019).


www.ijarke.com


4.3.2 Service Assurance

Zeithaml et al defined as the employees‟ knowledge and courtesy and the service providers‟ ability to inspire trust and

confidence. According to Andaleeb and Conway (2015), assurance might not be important relative to other industries where the

risk is higher and the outcome of using the service is uncertain. Trust and confidence may be presented in the personnel who link

the customer to the organization. Most authors and writers have tried to describe the essence of assurance on the service

dimension criteria. This is best known to service providers who have to impart the skills of knowledge, courtesy and confidence

when handling day to day service activities.

Trustworthiness means people can count on you to get the job done and get it done right. According to a research done in the

previous years, trustworthy employees get expected results, even if it means doing extra research or committing to a heavier work

load. Your customers must be able to depend on you to do your part, or you'll lose their confidence and respect. For example, if

you're a sales agent but you never make sales calls or meet with potential clients, your boss can't rely on you to generate new

business. You must be solid as a rock so your customers can depend on you (Tucker, 2018).

When a company offers complex and sophisticated products and services, it needs to provide ongoing support. The sales

agents act as consultants, who help the customers to identify properties and other real estate services on time and adequately.

When someone buys a property, for example, they will appreciate the Sales department or the customer support department,

which provides guidelines related to the property market and for all other issues. A representative from the customer service

department does not necessarily need advanced technical skills. They won‟t be in charge of helping the customers purchase

whatever the firm sells. They have a different role, related to comprehensive understanding of the customers‟ interactions wi thin

the business. In addition, their job is related to the goal of the organization to give the customers the value they deserve for their

money. The companies train customer service agents to maintain positive attitude and convey the message of the brand in the best

possible way. An adequate customer support representative, on the other hand, does care about that larger view of the

organization‟s goals. (Hicks, 2017).

Expertise by staff can be defined as the ability for businesses have access to an extensive pool of knowledge whether this is

their understanding of customers' needs and the business environment or the skills and experience of staff. The way a business

gathers shares and exploits this knowledge can be central to its ability to develop successfully. This doesn't just apply to huge

multinational companies. Knowledge management can benefit everyone from a local newsstand to a real estate firm. Most

businesses can be affected by numerous outside factors. Developments in politics, the economy, technology, society and the

environment could all affect your business' development, so you need to keep your staff members informed. Firms could consider

setting up a team of employees to monitor and report on changes in the business world (Arlen, 2017).

Real estate is the classic example of a complex product category for which selling really means service (Berry, 2014). In the

real estate industry, the most successful salespeople are those who are mostly service minded. Real estate transactions are

inherently risky for customers. Considerable money is involved in the transaction; the customers frequently are inexperienced in

real estate matters and usually live with the consequences of the transaction for a long time. Thus, real estate agents and brokers

who perform well for their clients and instill confidence create strong client loyalties and benefit from favorable word of mouth

communications.

4.3.3 Service Tangibility

This dimension, which is defined as the physical appearance of facilities, equipment, staff and written materials. It translates to

the companies interiors, the appearance and condition of all facilitates and equipment, how the staff dress, appearance of the

websites, signage on properties and advertisements .Tangibles are used by firms to convey image and signal quality. According to

Chris Arlen (2008), service providers want to know what customers (internal or external) care about. Even though this is the least

important service dimension, appearance matters. Service providers will still want to make certain their employees‟ appearance,

uniforms, equipment and work areas on site look good. The intangibility of services heightens customers‟ sensitivity to fairness.

Because services are difficult for customers to judge prior to experiencing them, customers have little choice but to trust the

provider (Berry, 2014).

Parasuraman et al. identify tangibles as physical facilities (equipment, personnel, and communications materials). It is the

physical image of the service that customers will use to assess quality. Tangibles are associated with the physical facilities, tools,

and machines used in order to provide the service, as well as representations of the services, such as statements, cards, speed, and

efficiency of transactions. Several privileges are included in tangibles such as; external appearance, opening hours, and speed and

efficiency of transactions. Parasuraman et al. stated that tangibles have the same importance as empathy. Sharmin et al. consider

tangibles as a distinct element, showing consistency across cultures. In the real estate sector, the tangibility dimension becomes

intrinsic in service quality, according to the tangible facets of the services cape, such as equipment, physical facilities, and visual

appeal subsequently, in the real estate sector, it can be said that there is a significant influence of tangibility on customer

satisfaction. Similarly, many researchers have found a meaningful influence in this sense (Miklos et. al., 2019).


www.ijarke.com


4.3.4 Service Empathy

Zeithaml e. al., defined empathy as the caring individualized attention the firm provides its customers‟ .The customer is treated

as if he is unique and special. There are several ways in which empathy can be provided: knowing the customers‟ names, his

preferences and needs. Many companies use the ability to provide customized services as a competitive advantage over other

companies. This dimension is also more suitable in industries where building relationships with customers ensures firms‟ survival

as opposed to transaction marketing (Andaleeb et. al., 2016).Customers need to feel that they are made priority by the

organization providing services .Empathy means caring, paying personal attention, and providing services to customers the core of

empathy is conveying the feeling that the customer is unique and special. Parasuraman et al. stated that quantitative studies that

have identified service quality model dimensions have used security, credibility, and access to measure empathy.

Empathy will apply more on the context of real estate industry where it ensures customer loyalty. Empathy in the context of

real estate industry can be demonstrated through showing concern in terms of service failure and providing service recovery or

going out of the way to meet customers‟ requirements, for instance, searching for another property in another area or particular

floor. Empathy is usually integrated with service recovery. If the first tenet of service marketing is to earn the customers

confidence, then the second is to restore it when the service fails. Customers‟ expectations intensify rather than decline after a

mistake. Customers become more sensitive to a subsequent failure (Berry, 2014).

Empathy and responsiveness together form an intriguing factor. It also proved to be significantly related to customer

satisfaction. With good communication and an understanding of customer needs and friendly behavior, empathy will be achieved.

The result implies that customers of the real estate sector are satisfied in terms of the empathy dimension when branches are in a

convenient location, they receive good care, there are good operating hours, and staffs have an understanding of their needs. In

addition, understanding customer expectations will influence better performance among competitors. These findings are in line

with previous studies (Ennew et. al., 2014).

Understanding customer needs is a very key indicator for any business endeavor. Successful business owners understand what

their customers want and the most effective way of making their product or service available. The depth of knowledge is also

crucial it requires knowing more than their names, ages and incomes. As business owners, knowing your customer‟s hobbies,

tastes and interests along with what they watch, listen to and read can be a profitable advantage. Companies that know what their

clients want and what they expect can also work on customizing the customer experience to create loyalty and repeat business.

Smaller and more quick-to-respond entrepreneurs and small-business owners already have the upper hand for achieving this

competitive advantage. Simply by extending the length of your customer‟s interaction will provide a greater opportunity to create

a positive experience and build a strong relationship. Listen to your customer‟s feedback and provide sound advice, even if you

sometimes have to direct your customer to another source (Grow, 2015).

In individualized attention, there's a strong disconnect between what businesses and their customers see as good customer

support one that can have drastic consequences for companies. When evaluating the state of their customer service, businesses

tend to focus their attention on the overall situation. They implement policies that span their entire support teams and take a top-

down approach to fixing any issues. Customers, on the other hand, view support as a series of interactions between themselves

and the business they're dealing with. They come to their conclusions on a case-by-case basis, taking each encounter as evidence

of a business' success or failure. Ultimately, good service is a series of singular, personal interactions between a business and a

customer. Each experience is part of a whole, and treating them as such ensures your customers are happy and engaged.

The need for personalization in customer service has become more pronounced now since customers are now a more

demanding and fastidious breed. They expect to be treated well and receive individual attention with so many competitors for a

single company; customers know that companies will comply. Customer needs vary we know that no two customers are alike and

hence they cannot be served by an „umbrella‟ kind of service, leading to the need for personalization. Customers have evolved are

more involved, have a wider knowledge base and are unwilling to compromise on the standards they set. With such wisdom and

experience in dealing with companies, it has become tough for companies to give them anything but the best. Higher expectations

of standards in service have led to companies aiming for personalization in customer service in every interaction, with each

customer. Personalization in customer service leads customers to feel more connected and engaged with a company. These

feelings ensure reduced opportunities for strife and customer churn customers would feel proud to be associated with a company

and would do their bit to let others know of their happy experiences. Positive word of mouth would attract other potential

customers to explore business relations with a company this is a more potent form of advertising than any other method. Through

personalization in customer service, companies gain a better and more in-depth understanding of their current and potential

customer base. The greater the understanding of the customer needs and expectations, the more individualized products and

services a company can create for its customers. The demand for such products would definitely be greater, leading to higher sales

and profits for the company (Newman, 2016).

Customers are a discerning lot when they perceive genuine efforts towards personalization in customer service, they are sure to

reciprocate the company‟s efforts. With consistent efforts on the part of the company, customers willingly take on the role of


www.ijarke.com


brand ambassadors and actively spread good things about the company and its offerings. Since people are more likely to become

customers when they read reviews and comments of current customers, such brand advocacy bodes very well for a company.

Personalization in customer service also encompasses customized messages and content for customers. With so many choices and

an overwhelming amount of information available to customers now, it becomes difficult for them to choose. In order to cut

through this „noise‟ and confusion, messages and content that are precise and lucid, hit home better with customers. Such

messages also ensure that information passes to customers speedily and is readily usable. Speed, reliability, and usefulness are

three extremely important factors for customers when deciding who they remain associated with and for how long. Through

personalization in customer service, companies display their knowledge about the customer‟s preferences, previous buying

behavior and history and their relationships with the company‟s competitors. Customers in turn, reciprocate by willingly sharing

information about them, which tells a company that a customer feels engaged and connected with it and would be happy to

contribute to its success (Newman, 2016).

Adopting the customer's point of view will help a business improve its support efforts overall. Focusing on the individual

customer service experience reveals valuable insights that can then be applied to others. As each of these experiences switches

from negative to positive - or, better yet, remains positive - more customers are satisfied. Brown (2016) suggests that convenience

lies in the service instead of the individual and breaks up convenience along the five dimensions of a service: time, place,

acquisition, use, and execution. Researchers found that convenience in for example retail derives from minimizing the costs of

time, space, and effort. Also to take into account are the costs of the experience (in money, effort, and other terms), a true

understanding of the stages of the experience, and an understanding of customers as their needs and behaviors change from

context to context (Clulow & Reimers ,2019).

Customers with higher expectations of complexity are more likely to perceive a service as simple or convenient. By providing

customers with the tools to control and more deeply engage in their experience, you can create a perception of improved

convenience when, in fact, you have decreased actual convenience by increasing the customer‟s workload. There is an

indisputable link between personalization and customer convenience: relevance. To boost convenience in customer

communications for each individual customer or prospect, for businesses this is key: deliver the right message at the right moment

via the right channel. Understanding your customers‟ starts with knowing what exactly they want and need. Indulging in these

preferences is one thing, knowing your customers so well that you can reach out when they need you to before they even realize

themselves, is something else. This, you could say, is convenience at its finest. The contents of your communications also go hand

in hand with the channel by which they reach your customers. The digital era has provided us with numerous ways to create touch

points and new channels so it‟s important to select the right channel for each communication (Suy, 2018).

4.3.5 Service Responsiveness

This is the willingness to help customers and provide prompt service (Zeithaml et. al., 2006). This dimension is concerned

with dealing with the customers‟ requests, questions and complaints promptly and attentively. A firm is known to be responsive

when it communicates to its customers how long it will take to get answers or have their problems dealt with. To be successful,

companies need to look at responsiveness from the point of the customer rather than the company‟s perspective (Zeithaml et. al.,

2017). Customers normally judge a company‟s responsiveness by assessing the amount of time that it takes and the attentiveness

that is offered in response to their requests, questions and problems.

Most real estate firms in Kenya and around the world have a critical role of designing policies, rules and regulations of how

they have to respond to customers‟ needs, wants, problems or requests. This will allow them to grow and flourish. They have to

put in place the necessary policies that facilitate the efficient and effective ways of managing customers issues in a more flexible

way that will enhance the welfare of the organizations and as well as the customer. The firms should also provide proper

mechanisms, which are well maintained such as platforms and systems in order that are sustainable. This will enhance customer

satisfaction and by word of mouth, it will create and appeal more as a brand outside the firms. Most realtors fall short in providing

proper responsorial mechanism and if they do have, they are unable to manage the same for quite some time. This is more the case

on realtors that do not want to address and embrace change as part of growth and at the end process the firms end up reporting

losses. For instance, you might find that a customer who purchased a property at a certain location finds it difficult to access

certain amenities or a client who has leased a property finds out that place is a waterlogged area and since he or she bought the

land or home during dry seasons was not well conversant with the same. As a firm, it is proper to handle such complaints and

respond to them as fast and efficient as possible to avoid inconveniences in the near future.

The responsive dimension on service quality has proven difficult in most companies. Realtors want to sell, lease and manage

and the often forget about the aftermath. For most companies to keep growing their customer base, it is important for them to

respond to the issues of clients promptly and efficient. Businesses are meant to grow and not collapse and lack of responsiveness

implies how indifferent or lackadaisical the realtors seem to be in terms of responding to customers‟ requests and needs (Sachdev

et. al., 2004).

When it comes Customers have expectations from the support unit and it is up to the support unit to uphold these expectations

by being prompt and professional. The importance of being prompt and professional lies in the foundation of every business that


www.ijarke.com


provides a service to customers. One of the importance of being prompt is when the service has been delivered within the time

scale that was agreed on, this will leave the customer having confidence in you and the company which will have a positive effect

on the unit. Delivering the service on time with professionalism will define the standards of the service provider. Without the

promptness and professionalism, it would make the customers feel very isolated and they would want to cease contracts with the

service provider which would obviously leave the unit losing out on revenue. The value of the customer should be the most

precious asset to the business, so it is vital that expectations are met with excellence in order to keep customer satisfaction high.

Performance expectation standards are the pre-established guidelines a business has in place for various areas of business

operations. Customer service performance standards dictate the ways in which customers are to be treated and the best practices to

be observed. Having such standards in place and educating employees on your directives can help encourage repeat business and

improve your overall business operations.

Setting customer service performance standards involves determining what you want your customer experience to look like.

Assess every part of your service model from the customer‟s perspective. Look at wait times, employee interaction, return policies

and refund or exchange guidelines. Consider your staff‟s ability to fill orders and meet deadlines in a timely manner and handle

customer concerns in a knowledgeable and friendly way. Once you know what type of experience you want your customer to have

with your business, you can set the parameters for your performance standards (McQuerrey, 2019).

For your employees to be effective in delivering exceptional levels of service to your customers, they must have a solid

working knowledge of your business‟s policies and procedures for customer interaction. This may involve developing training

programs or instituting job shadowing or on-the-job training to develop a solid working knowledge of best practices in customer

service. It may also include conducting customer service performance reviews and soliciting feedback from customers to help

improve service provision (McQuerrey, 2019).Willingness to help customers has become so profound these days because it is

fashionable for companies to refer to customer service as customer retention, but that can lead to backwards thinking. To retain a

customer, simply serve him and do it well. If you focus on retention you'll miss what is important, which is the customer and his

or her needs (Gladin, 2019).

A customer service strategy helps you meet the specific needs of your target markets and defines how you can let your

customers know that you understand their needs and can meet them. At the core of customer service is the concept of delivering

on a promise if you promise you're able to provide the best product or service, or that you can deliver quickly, or offer the best

price, you must be able to deliver on that promise. Having a customer service strategy in place ensures your processes; systems or

people don't let you down (Ward, 2019).When a customer is inquiring you about a problem; listen carefully to what is said. Ask

clarifying questions when the customer is finished speaking if necessary to get more details that will enable you to solve the

customer's problem. Do not interrupt a customer when he or she is speaking. You can't listen when your mouth is moving. You

should finish helping a customer by actively suggesting the next step. If he or she is ready to make a purchase at this point, escort

or direct the customer to the checkout where you or someone else will go through the payment procedure with them. If the

customer is not ready to buy at this point, your suggested next step might be a further invitation to engage with the merchandise or

service such as, "Is there anything else I can help you with” and move on (Ward, 2019).

4.3.6 Customer Satisfaction

Customer satisfaction provides an essential link between cumulative purchase and post-purchase phenomena in terms of

attitude change, repeat purchase and brand loyalty (Churchill & Surprenant, 1982). Service quality has a positive influence on

customer satisfaction (Yee et al., 2014). Customer satisfaction is defined as the attitude resulting from what customers believe

should happen (expectations) compared to what they believe did happen (performance perception). Satisfaction reinforces quality

perception and drives repeat purchases. Zaim, Bayyurt, and Zaim (2015) found that tangibility, reliability and empathy are

important for customer satisfaction, but Mengi (2009) found that responsiveness and assurance are more important.

Customer loyalty is essential to sustain the business. The business sectors‟ progress and success depends on their loyal

customers. The business sectors must give first priority to their customers then only think about the profit. They must have the

motto of „Serve first, sell second‟. Customer satisfaction is the key element or leading indicator of every business to uplift as well

as to create loyal customers. Therefore, the needs of customers should be cared by every business. In this 21st century, many

companies are getting established to compete with each other. In this competitive environment if the company gets success to

build a solid and loyal customers by providing the excellent services or products with affordable price then it is not far to be a

number one company with high volume of customers as well as name and fame (Ranabhat, 2018).

Ranabhat (2018) suggests that customers may be an individual or business that purchases the goods or services produced by

the company. They are the actual bosses in a deal who are responsible for profit in the business because they create demand for

goods and services so that the company produces more goods. The customers are one who is the user of the products or services

produced by the company and judge those products‟ quality with other people. They are the sources of generating profit that

always spend a greater share of wallet. So, every company must produce the quality products or services with affordable price to

attract more customers and make more sales. It is costly for business to acquire a new customer than to retain an existing


www.ijarke.com


customer. Therefore, the businesses should be aware of their products as well as their customers‟ type such as loyal customers,

discount customers, impulse customers, need-based customers and wandering customers to treat them well.

Loyalty also means a continuous trust or devotion of customers to the supplier on certain grounds although he may have other

options. It is not compulsory that the product used by the customers always be best. Sometimes the unexpected defects will appear

in the products or there will occur some problems with the supplier in respect of his product supply. If the customers don‟t want to

use other options than preferring the same products continuously with the same suppliers thinking that the suppliers will provide

them the more beneficial and valuable products than others then this is the true customer loyalty. This type of long-lasting

customer loyalty may be created by listing the customers in number one priority and always caring about providing them the

excellent products. Likewise, the company always tries to attract their consumers to get familiar with brands in this competitive

environment.

Service providers and scholars have long recognized the importance of customer satisfaction as contributing to market share

and return on investment for companies. Several definitions and models of customer satisfaction have been proposed by various

scholars. The focus of much of the research is on the “disconfirmation of expectations” theory which explains that “the customer

is satisfied when he or she feels that the product‟s performance is equal to or more than what was expected (confirmation). But if

perceived performance falls short of his/her expectations (disconfirmation), then the customer is dissatisfied.

Customer Relationship Management (or CRM) is a phrase that describes show your business interacts with your customers.

Most people think of CRM as a system to capture information about your customers. However, that is only part of the picture.

CRM involves using technology to gather the intelligence you need to provide improved support and services to your customers.

In other words, CRM is also about what you do with that information to better meet the needs of your existing customers and

identify new customers, resulting in higher profits for you (Mutuku, 2014).

Merchants and traders have been practicing customer relationship for centuries. Their business was built on trust. They could

customize the products and all aspects of delivery and payment to suit the requirements of their customers. They paid personal

attention to their customers, knew details regarding their customers‟ tastes and preferences, and had a personal rapport with most

of them. In many cases, their interaction transcended the commercial transaction and involved social interactions. Even today, this

kind of a relationship exists between customers and retailers, craftsmen, artisans essentially in markets that are traditional, small

and classified as pre-industries markets. These relationship oriented practices have changed due to industrial revolution.

Businesses adopted mass production, mass communication and mass distribution to achieve economies of scale. For example,

manufactures have started focusing on manufacturing and efficient operations to cut costs. Intermediaries like distributors,

wholesalers and retailers took on the responsibilities of warehousing, transportation, distribution and sale to final customers. This

resulted in greater efficiencies and lower costs to manufacturers but brought in many layers between them and the customers. The

resulting gap reduced direct contacts and had a negative impact on their relationships (Kimball, 2014).

According to Kalaiselvi (2016) Customer‟s service is also an essential component of customer orientation and is currently

acknowledged as one of the most efficient ways to add value to products and services. In most cases, clients have many available

options, so the decisive factor for them to come back or not is the received service. In many industries and sectors this also means

is more likely for the customers to buy again from the same company or to come back to it in order to benefit from certain

services, which will generate more profit. Based upon this service-quality model, researchers have identified the following five

determinants of service quality, in order of importance: Reliability, Responsiveness, Assurance, Empathy and Tangibility.

5. Research Methodology

Descriptive survey design was adopted in conducting this study. The total population of the study was 450 customers drawn

from 45 firms i.e. the landlords in the various houses the firms manage. Responses will be given by the customers‟ i.e. Landlords

that will be involved in the study.

A representative sample of 208 respondents based on the sample calculation formula below and a population of 450 customers

(landlord customers) will be approximated to give results within ±.05 margin of error at a 95% level of confidence.

SS=Z2p(1-p)

C2

Where,

Z= 1.96(95% confidence level)

P= percentage (p=0.5)

C= confidence interval expressed 0.05

Pop= population (total number of households in each project)

New = SS


www.ijarke.com


1+SS-1

Pop

Substituting for the formula:

SS = 1.96*1.96*.5(1-0.5) = 384.16

0.05*0.05

For finite population of 450 households, the correction will be: 384.16

1+384.16-1 = 207.4 rounded up to 208

450

6. Data Analysis Results

6.1 Descriptive Statistics

6.1.1 Effect of Service Reliability on Customer Satisfaction in Real Estate Industry

Majority of the respondents were in support to the statement reliability has a great impact on customer satisfaction in the real

estate industry in Mombasa County. This was evidenced by respondents agreeing to the statements that the firm meets their

promised time-frames for responses with mea of 4.09, that the firm is sympathetic and reassuring when the customer has problems

with a mean of 4.24 and that they keep accurate record with a mean of 3.75, further respondents agreed that the firms provide their

services at the times promised with a mean of 3.84 and that the staff are dependable with a mean of 4.84.

Table 1 Service Reliability

Opinion Statement Mean Std. Dev.

The firm meets their promised time-frames for responses 4.09 .703

The firm is sympathetic and reassuring, when the customer

has problems 4.24 .654

They keep accurate record 3.75 .859

They provide their services at the times promised 3.84 .802

The staff are dependable 4.84 .653

Valid N (list wise)

6.1.2 Effect of Service Assurance on Customer Satisfaction in Real Estate Industry

The researcher requested respondents in in the real estate industry in Mombasa County to indicate the extent to which they

think that assurance has effect on customer satisfaction in the real estate industry in Mombasa County. From the analysis, there

was a strong support to the statement relating to employees should be trustworthy with a mean of 4.3, respondents also agreed that

customers should feel safe when transacting with employees with a mean of 4.24.they further agreed that employees should be

polite with a mean of 3.69.Respocects strongly agreed to the statement that employees should get adequate support from the firm

to do their job well with a mean of 4.86

Table 2 Service Assurance


Employees should be trustworthy 4.03 .891

Customers should feel safe when transacting with employees 4.24 .641

Employees should be polite 3.69 .641

Employees should get adequate support from the firm to do their

job well 4.84 .764

Valid N (list wise)

6.1.3 Effect of Tangibility on Customer Satisfaction in Real Estate Industry

The researcher wanted to analyze the respondent‟s decision on statement relating to effect of service tangibility on customer

satisfaction in the real estate industry in Mombasa County. From the respondent‟s feedback, respondents agreed to the statement

that employees should be well-dressed or neat with a mean of 3.81.respodets also agreed to the statement that appearance of the

physical facilities are consistent with the type of services offered with a mean of 3.84. Further, they agreed that physical facilities


www.ijarke.com


are visually appealing with a mean of 3.92.Respodets were neutral to the statement that the firms records are Up-to-date with a

mean of 3.22.

Table 3 Service Tangibility


Employees well-dressed/neat 3.81 .840

Appearance of the physical facilities are consistent

with the type of services offered 3.84 .767

Physical facilities are visually appealing 3.92 .764

Up-to-date records 3.22 .866

Valid N (list wise)

6.1.4 Effect of Service Empathy on Customer Satisfaction in Real Estate Industry

The respondents were asked to rate their level of agreement or disagreement to the statement relating to effect of empathy on

customer satisfaction in the real estate industry in Mombasa County. From the analysis, most of the respondents agreed that firms

should be expected to give each customer individualized attention with a mean of 4.13, that employees should be expected to give

each customer individualized attention with mea of 4.28 and that it is realistic to expect employees to fully understand the needs

of the customer with mea of 3.73. They further agreed that firms should necessarily have to operate at hours convenient to all

customers with a mean of 3.84.

Table 4 Service Empathy


Firms should be expected to give each customer

individualized attention 4.13 .653

Employees should be expected to give each customer

individualized attention, 4.28 .840

It is realistic to expect employees to fully understand the

needs of the customer 3.73 .677

Firms should necessarily have to operate at hours

convenient to all customers 3.84 .745

Valid N (list wise)

6.1.5 Effect of Service Responsiveness on Customer Satisfaction in Real Estate Industry

The researcher requested the respondents to indicate the extent to which they think responsiveness has an effect on customer

satisfaction in the real estate industry in Mombasa County. . Their views were ranked based on the indicated level of support.

From the analysis, majority of the respondents agreed to the statement that they respond promptly to customer requests with a

mean of 3.58. They also agreed that employees are always willing to help customers with a mean of 4.20. Respondents further

agreed to the statement that prompt services are offered by the employees with a mean of 4.11.they also agreed to the statement

that employees are expected to tell customers exactly when the service will be performed with a mean of 4.02.

Table 5 Service Responsiveness


They respond promptly to customer requests 3.58 .577

Employees are always willing to help customers 4.20 .673

Prompt services offered by the employees 4.11 .894

They are expected to tell customers exactly when the

service will be performed 4.02 .678

Valid N (list wise)

The researcher requested the respondents to indicate the extent to which they think responsiveness has an effect on customer

satisfaction in the real estate industry in Mombasa County. . Their views were ranked based on the indicated level of support.

From the analysis, majority of the respondents agreed to the statement that they respond promptly to customer requests with a

mean of 3.58. They also agreed that employees are always willing to help customers with a mean of 4.20. Respondents further

agreed to the statement that prompt services are offered by the employees with a mean of 4.11.they also agreed to the statement

that employees are expected to tell customers exactly when the service will be performed with a mean of 4.02.


www.ijarke.com


6.1.6 Customer Satisfaction in Real Estate Industry

The respondents were asked to indicate their support or non-support level on statement relating to customer satisfaction in the

real estate industry in Mombasa County. Form the data presented, it was evident that most of the respondents do support the point

relating to the statement that they would like to recommend the chosen firm to friends and people they know with a mean of 3.63;

they strongly agreed that they consider themselves to be loyal to the chosen firm with a mean of 4.69. Respondents further

strongly agreed to the statement that they are completely satisfied with the services delivered by this firm with a mean of

4.50.Howver respondents were neutral to the statement that the performance of this firm is superior to that of competitor‟s with a

mean of 3.13.

Table 6 Customer Satisfaction


I would like to recommend this firm to friends and

people I know 3.63 .638

I consider myself to be loyal to this firm 4.69 .855

The performance of this firm is superior to that of

competitor‟s one 3.13 .938

Am completely satisfied with the services delivered by

this firm 4.50 .778

Valid N (list wise)

6.2 Inferential Statistics

6.2.1 Correlation Analysis

Pearson Bivariate correlation coefficient was used to compute the correlation between the dependent variable (Customer

satisfaction) and the independent variables (Service reliability, service assurance, service tangibility, service empathy and service

responsiveness). According to Sekaran, (2015), this relationship is assumed to be linear and the correlation coefficient ranges from

-1.0 (perfect negative correlation) to +1.0 (perfect positive relationship). The correlation coefficient was calculated to determine

the strength of the relationship between dependent and independent variables (Kothari & Gang, 2014).

Table 7 Pearson Correlation

Customer

satisfaction

Service

responsiveness

Service

empathy

Service

tangibility

Service

assurance

Service

reliability

Customer

satisfaction

1

198

Service

responsiveness

.175 1

.002

198

Service

empathy

0.321** .213 1

.000 .002

198 198

Service

tangibility

.0325** .235 .195

.001 .002 .000

198 198 198 1

Service

assurance

0.191 .171 .251* .554**

.000 .000 .004 .000

198 198 198 198 1

Service

reliability

.405** .205 .049 .734** .430**

.000 .000 .000 .000 .000 1

198 198 198 198 198 198

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).


www.ijarke.com


In trying to show the relationship between the study variables and their findings, the study used the Karl Pearson‟s coefficient

of correlation (r). This is as shown in Table 4.11 above. According to the findings, it was clear that there was a positive correlation

between the independent variables, service reliability, service assurance, service tangibility, service empathy and service

responsiveness and the dependent variable customer satisfaction. The analysis indicates the coefficient of correlation, r equal to

0.405, 0.191, 0.325, 0.321 and 0.175 for service reliability, service assurance, service tangibility, service empathy and service

responsiveness This indicates positive relationship between the independent variable namely service reliability, service assurance,

service tangibility, service empathy and service responsiveness and dependent variable customer satisfaction.

6.2.2 Coefficient of Determination (R2)

The coefficient of determination was computed to measure how well the study‟s data was suited for the statistical model that

was used for main analysis. The table below shows that the coefficient of determination (R2) was 0.735. This R

2 suggests a

relatively goodness of fit of the study data to the OLS regression model. 73.5% of variability in the level of customer satisfaction

can be explained by variations in service responsiveness: service reliability, service assurance, service tangibility and service

empathy. The remaining 26.5% of variability can be attributed to other factors which were not included in the model.

Table 8 Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .857a .735 .707 .49479

a. Predictors: (Constant), Service Responsiveness:, Service Reliability, Service Assurance, Service

Tangibility, Service Empathy

b. Dependent Variable: Customer satisfaction

6.2.3 Analysis of Variance (ANOVA)

In testing the significance of the overall model, the study used the ANOVA F –Test. From the given figure below the p-value

is 0.000 and F 104.645 This implies that the model is statistically significant in estimating the effect responsiveness, reliability,

assurance, tangibility and empathy on customer satisfaction.

Table 9 Analysis of Variance (ANOVA)

Model Sum of

Squares

df Mean

Square

F Sig.

1

Regression 42.382 5 8.4764 104.645 .000b

Residual 15.610 192 .081

Total 57.634 197

a. Dependent Variable: customer satisfaction

b. Predictors: (Constant), responsiveness, reliability, assurance, tangibility and empathy

4.6.2 Regression Analysis

Multiple regression analysis was conducted to determine the relationship between customer satisfaction and the five

independent variables as shown in the table below.

Table 10 Regression Analysis

Model Unstandardized

Coefficients

Standardized

Coefficients

T Sig.

B Std.

Error

Beta

1

(Constant) . 917 .188 4.870 .000

Responsiveness .106 .165 .092 3.674 .004

Reliability .069 .041 .085 9.028 .000

Assurance, .772 .090 .511 11.432 .000

Tangibility .566 .052 .470 7.632 .000

Empathy .049 .062 .073 1.545 .013

a. Dependent Variable: customer satisfaction

The regression co efficient in the above table established that taking all the independent variables (responsiveness, reliability,

assurance, tangibility and empathy) to be constant, the level of customer satisfaction will be at 0.917. The findings also shows that


www.ijarke.com


a unit improvement in responsiveness will lead to a 0.0.106 increase in customer satisfaction the real estate industry; a unit

improvement in reliability will lead to a 0.0.069 increase in customer satisfaction the real estate industry . A unit increases in

assurance will lead to a 0.772 increase in customer satisfaction in the real estate industry. Tangibility will lead to a 0.566 increase

in customer satisfaction in the real estate industry. a unit improvement in empathy will lead to 0.049 increase in customer

satisfaction the real estate industry The study also indicated that responsiveness, reliability, assurance and tangibility had a

significant effect on customer satisfaction with a significant value <0.05.

The general regression equation can be written as:

Y = β0 + β1 X1 + β2 X2 + β3 X3 + β4 X4 + β5 X5 +ε:

Whereby:

Y= 0.917 + 0.106X1 + 0.069X2 + 0.772X3 + 0.566X4 + 0.049X5 + ε

Y = customer satisfaction

0.917= customer satisfaction in absence of the explanatory factors.

β0 = Constant term

X1= Responsiveness, X2= Reliability, X3= Assurance, X4= Tangibility and X5= Empathy

7. Discussion of Key Findings

On service reliability, the study findings established that customers normally want to count on their providers. They value that

reliability. It is three times more important to be reliable than have shiny new equipment or flashy uniforms. Realtors first and best

efforts are better spent making services reliable (Chris, 2016). Most realtors promise a lot when it comes to offerings. However, the

exact opposite is the same after they have sealed the deal. Whatever promises they made usually do not come true.

On service assurance, the study findings established assurance might not be important relative to other industries where the risk

is higher and the outcome of using the service is uncertain. Trust and confidence may be presented in the personnel who link the

customer to the organization (Zeithaml et. al., 2016). Most authors and writers have tried to describe the essence of assurance on the

service dimension criteria. This is best known to service providers who have to impart the skills of knowledge, courtesy and

confidence when handling day to day service activities. Trustworthiness means people can count on you to get the job done and get

it done right. According to a research done in the previous years, trustworthy employees get expected results, even if it means doing

extra research or committing to a heavier work load. Your customers must be able to depend on you to do your part, or you'll lose

their confidence and respect.

On service tangibility, efforts that guide this dimension was clear in this aspect of tangibles used by firms to convey image and

signal quality (Zeithaml et. al., 2017). According to Chris Arlen (2008), service providers want to know what customers (internal or

external) care about. Even though this is the least important service dimension, appearance matters. Service providers will still want

to make certain their employees‟ appearance, uniforms, equipment and work areas on site look good (Chris, 2008). The intangibility

of services heightens customers‟ sensitivity to fairness. Because services are difficult for customers to judge prior to experiencing

them, customers have little choice but to trust the provider (Berry, 2014).

On service empathy, the study sought to establish that empathy will apply more on the context of real estate industry where it

ensures customer loyalty. Empathy in the context of real estate industry can be demonstrated through showing concern in terms of

service failure and providing service recovery or going out of the way to meet customers‟ requirements, for instance, searching for

another property in another area or particular floor. Empathy is usually integrated with service recovery. If the first tenet of service

marketing is to earn the customers confidence, then the second is to restore it when the service fails. Customers‟ expectations

intensify rather than decline after a mistake. Customers become more sensitive to a subsequent failure (Berry, 2014).

On service responsiveness, it was clearly established that responsive dimension on service quality has proven difficult in most

companies. Realtors want to sell, lease and manage and the often forget about the aftermath. For most companies to keep growing

their customer base, it is important for them to respond to the issues of clients promptly and efficient. Businesses are meant to grow

and not collapse and lack of responsiveness implies how indifferent or lackadaisical the realtors seem to be in terms of responding to

customers‟ requests and needs (Sachdev et. al., 2004).

Most real estate firms in Kenya and around the world have a critical role of designing policies, rules and regulations of how they

have to respond to customers‟ needs, wants, problems or requests. This will allow them to grow and flourish. They have to put in

place the necessary policies that facilitate the efficient and effective ways of managing customers issues in a more flexible way that

will enhance the welfare of the organizations and as well as the customer. The firms should also provide proper mechanisms, which

are well maintained such as platforms and systems in order that are sustainable. This will enhance customer satisfaction and by word

of mouth, it will create and appeal more as a brand outside the firms. Most realtors fall short in providing proper responsorial


www.ijarke.com


mechanism and if they do have, they are unable to manage the same for quite some time. This is more the case on realtors that do

not want to address and embrace change as part of growth and at the end process the firms end up reporting losses. For instance, you

might find that a customer who purchased a property at a certain location finds it difficult to access certain amenities or a client who

has leased a property finds out that place is a waterlogged area and since he or she bought the land or home during dry seasons was

not well conversant with the same. As a firm, it is proper to handle such complaints and respond to them as fast and efficient as

possible to avoid inconveniences in the near future.

On customer satisfaction, this study had to establish that satisfaction reinforces quality perception and drives repeat purchases.

Zaim, Bayyurt, and Zaim (2015) found that tangibility, reliability and empathy are important for customer satisfaction, but Mengi

(2009) found that responsiveness and assurance are more important. In conjunction to that customer loyalty which is a benefit of

customer satisfaction, is essential to sustain the business. The business sectors‟ progress and success depends on their loyal

customers. The business sectors must give first priority to their customers then only think about the profit. They must have the motto

of „Serve first, sell second‟. Customer satisfaction is the key element or leading indicator of every business to uplift as well as to

create loyal customers. Therefore, the needs of customers should be cared by every business. In this 21st century, many companies

are getting established to compete with each other. In this competitive environment if the company gets success to build a solid and

loyal customers by providing the excellent services or products with affordable price then it is not far to be a number one company

with high volume of customers as well as name and fame (Ranabhat, 2018).

8. Conclusions and Recommendations

8.1 Conclusions

It was clearly evident that customer satisfaction depends on the effective service quality dimensions. From the findings it‟s

clear that service responsiveness, service reliability, service assurance, service tangibility and service empathy greatly affect

customer satisfaction. The quality of service offered by a firm can lead to customer satisfaction or not. The study therefore

colludes that service quality dimensions specifically service responsiveness, service reliability, service assurance; service

tangibility and service empathy greatly affect customer satisfaction.

8.1.1 Service Reliability

From the research findings, the study concluded service reliability has a significant effect on customer satisfaction in the real

estate industry. The overall effect of the analyzed factors was very high as indicated by the coefficient of determination. The

overall P-value of 0.00 which is less than 0.05 (5%) is an indication of relevance of the studied variables, significant at the

calculated 95% level of significance. This implies that the studied independent variables namely service reliability has significant

effect on customer satisfaction in the real estate industry.

8.1.2 Service Assurance

From the research findings, the study concluded service assurance has a significant effect on customer satisfaction in the real

estate industry as indicated by the strong coefficient of correlation and a p-value which is less than 0.05. The overall effect of the

analyzed factors was very high as indicated by the coefficient of determination. The overall P-value of 0.00 which is less than 0.05

(5%) is an indication of relevance of the studied variables, significant at the calculated 95% level of significance. This implies that

the studied independent variables namely service assurance, has significant effect on customer satisfaction in the real estate

industry.

8.1.3 Service Tangibility

From the research findings, the study concluded service tangibility has a significant effect on customer satisfaction in the real

estate industry by the strong coefficient of correlation and a p-value which is less than 0.05. The overall effect of the analyzed

factors was very high as indicated by the coefficient of determination. The overall P-value of 0.00 which is less than 0.05 (5%) is

an indication of relevance of the studied variables, significant at the calculated 95% level of significance. This implies that the

studied independent variables namely service tangibility, has significant effect on customer satisfaction in the real estate industry.

8.1.4 Service Empathy

From the research findings, the study concluded service empathy has no significant effect on customer satisfaction in the real

estate industry as indicated by the strong coefficient of correlation and a p-value which is more than 0.05. The overall effect of the

analyzed factors was very low as indicated by the coefficient of determination. The overall P-value of 0.00 which is less than 0.05

(5%) is an indication of relevance of the studied variables, significant at the calculated 95% level of significance. This implies that

the studied independent variables namely service empathy, has no significant effect on customer satisfaction in the real estate

industry.


www.ijarke.com


8.1.5 Service Responsiveness

From the research findings, the study concluded service responsiveness has a significant effect on customer satisfaction in the

real estate industry as indicated by the strong coefficient of correlation and a p-value which is less than 0.05. The overall effect of

the analyzed factors was very high as indicated by the coefficient of determination. The overall P-value of 0.00 which is less than

0.05 (5%) is an indication of relevance of the studied variables, significant at the calculated 95% level of significance. This

implies that the studied independent variables namely service responsiveness, has significant effect on customer satisfaction in the

real estate industry.

8.2 Recommendations

The study clearly highlighted on the effect of service quality dimensions on customer satisfaction in the real estate industry

with a specific focus on in Mombasa County. The objectives were emphasized on service responsiveness, service reliability,

service assurance, service tangibility and service empathy.

i. The analysis recommends that the managers in the real estate industry should ensure that there is continued and

sustainable service quality for good returns and great performance. Employees should be able to provide quality

services to their clients to ensure service quality and customer satisfaction.

ii. The study also recommends that real estate firms should continuously be accountable, ready to change the dynamics

with the current market flow and always embrace unique selling points through the service quality dimensions hence

enhancing customer satisfaction, customer loyalty and retention no matter how small a firm is.

References

1. Aaker. (2012). Brand Portfolio Strategy: Creating Relevance, Differentiation, Energy, Leverage and Clarity.

New York: Simon and Schuster.

2. Andaleeb, S., & Conway, C. (2006). Customer Satisfaction in the Restaurant Industry: An examination of the

transaction. Journal of Services Marketing, 20(1), 3-11

3. Anderson, E.W., & Fornell, C. (2000). Foundations of the American Customer Satisfaction Index. Total quality

management, 11(7), 869-883.

4. Andre, M. & Saraiva, P. M., (2000). Approaches of Portuguese companies for relating Customer Satisfaction

with Business results. Total Quality Management: 11(7), pp. 929-939.

5. Akaka, K. (2012). Service quality dimensions and customer satisfaction in the Kenyan

6. Telecommunications service industry: A case of Nokia Siemen Networks.

7. Benedict, M. (2013). Service Quality Gaps and their Effect on Organizational Performance in the Real Estate

industry in Kenya. MySpace Properties, (pp.4-12)

8. Bell, J. (2010). Doing Your Research Project: A Guide for First Time Researchers in Education, Health and

Social Science, (5th

Ed.).

9. Bitta, M. (2014). Service Quality and Customer Satisfaction in the Banking Sector in Kenya.

10. Boaz, K. I., (2018). Influence of Outsourced Public Service Provider‟s Quality Dimensions on Performance of

Nairobi City County.

11. Cronin, J.J., & Taylor, S.A. (1992). Measuring Service Quality: A re-examination and Extension. Journal of

Marketing, 56(3), 55-68.

12. Cooper, D. R., & Schindler, P. S. (2013). Business Research Methods, (12th

Ed.). Irwin; Mc Graw-Hill

13. Cronin, J., & Taylor, S. A. (1994). SERVPERF versus SERVQUAL: Reconciling Performance Based and

Perceptions-Minus-Expectations Measurement of Service Quality. Journal of Marketing.

14. Cynthia L. Mercer and Brian H. & Kleiner (1997). Practice of Excellent Companies in the Real Estate Industry.

Managing Service Quality Volume 7. Number 1. pp. 31-33. University Press. ISSN 0960-4529.

15. Florence Wambugu (2018). Effect of Service Quality Dimensions on Customer Satisfaction among Government

Huduma Centers In Rift Valley Region, Kenya

16. Habtamu, M.A. (2015). Service Quality and Customer Satisfaction: Empirical Evidence from Saving Account

Customers of Banking Industry. European Journal of Business and Management. ISSN 2222-1905 (Paper)

ISSN 2222-2839 (Online) Vol.7, No.1, 2015.

17. Jacob, O., O. (2016). Service Quality and Customer Satisfaction in Kenya‟s Aviation Industry.

18. Kothari, C.R. (2014). Research Methodology- Methods and Techniques (3rd

Ed.). New Delhi: New Age

International Publishers Ltd.

19. Kothari, C.R. (2014). Research Methodology. Methods and Techniques. New Delhi. New Age International (P)

Limited Publishers.

20. Kenya National Bureau of Statistics. (2015). Gross Domestic Product and Real Estate Survey. Nairobi:

Government Printer.

21. Kotler P. & Keller K. (2006). Marketing Management, 12th

Edition, Pearson Education Inc., New Jersey.


www.ijarke.com


22. Lily, KO King H. (2008). Service Dimensions of Service Quality Impacting Customer Satisfaction of Fine

Dining Restaurants in Singapore: A Case Study of Singapore. Published thesis, University of Nevada Las

Vegas, USA.

23. Lambin, J. J, (2000. Market Driven Management. Strategic and Operational Marketing, Palgrave. Prentice Hall.

24. Ladhari, R. (2009). Service Quality, Emotional satisfaction, and behavioral intentions: A study in the Hotel

industry. Managing Service Quality.

25. Mugenda, A., & Mugenda, O. (2003). Research Methods; Qualitative and Quantitative Approaches. Nairobi,

Kenya: Africa Center for Technology Studies, (ACTS).

26. Mugenda, O. M., & Mugenda, A. G. (2014). Research Methods. Quantitative and Qualitative Approaches.

Nairobi. Acts Press.

27. Mang‟eli, A. M, (2013). An Investigation into Service Quality Determinants and Their Effectiveness in Real

Estate Agency in Nairobi.

28. Muteti, C. W., (2013). Factors that Determine Satisfaction of Customers of Equity Bank Kenya Ltd in Nairobi.

29. Orodho, A. J. & Kombo, D. K. (2002). Research Methods. Nairobi: Kenyatta University Institute of Open

Learning.

30. Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1985). A Conceptual Model of Service Quality and its

Implications for Future Research. Journal of Marketing, 49(4), 41-50.

31. Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1988). SERVQUAL: A Multiple- Item Scale for Measuring

Consumer Perceptions of Service Quality. Journal of Retailing, 64(1), 12-37.

32. Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1988). Reassessment of expectations as a comparison standard

in measuring Service Quality: Implications for Further Research. Journal of Marketing, 58, January, 111-24

33. Parasuraman, A., Zeithaml, V.A. & Berry L.L. (1990). Delivering Quality Service Balancing Customer

Perceptions and Expectations. New York: The Free Press

34. Parasuraman, A., Berry L. L. and Zeithaml V. A. (1991), “Refinement and Reassessment of the SERVQUAL

Scale,” Journal of Retailing, Vol. 67, No. 4, 420-450

35. Parasuraman, A., Berry, L.L., and Zeithaml, V.A. (1994), “Reassessment of Expectations as a Comparison of

Standard in Measuring Service Quality: Implications for Future Research”, Journal of Marketing, 58, 111- 124

36. Sekaran, U. (2010). Research Methods for Business: A skill building approaches (5th

Ed.) USA: John Willey &

Sons‟ Publishers.

37. Schiffman. (2009). Consumer Behavior. India: Pearson Education.

38. Tavakol, M. Reg Dennick (2011). Making Sense of Cronbach‟s Alpha International Journal Of Medical

Education, 2011; 2:53-55

39. Van- Teijlingen, E.R., & Hundley, V. (2001). The importance of Pilot studies (online), Social Research

Update, issue no.35.

40. Wilson, J. (2012). Essential of Business Research. London: SAGE Publications Ltd.

41. Yator, L.J. (2012). The Effect of Service Quality on Customer Satisfaction in the Hospitality Industry in

Kenya.

42. Zeithaml, V. A., Bitner, M.J., & Gremler, D.D. (2006). Services Marketing: Integrating Customer Focus across

the Firm (4th

ed., pp.117). Singapore: McGraw-Hill Inc.

43. Zeithaml, V.A., and Bitner, M.J. (2003), “Service Marketing Integrating Customer Focus across the Firm”, 3rd

edition, United Kingdom, McGraw-Hill Inc.

44. Zeithaml, V. A. Berry, L. L. and Parasuraman, A. (1996). The Behavioral Consequences of Service Quality.

Journal of Marketing.