Discuss about the Business Research Methods and Evaluation of Service Quality .
The modern-day customers are extremely demanding and choosy regarding the services that they are receiving from the various organizations. The increased income of the customers coupled with greater awareness of the individuals has posed a challenge for several organizations (Quinton and Simkin 2016). This is because of the fact that an increasing number of customers are opting for insurance services and they demand excellent quality of the services. The quality of service delivered by the organizations determines their competitive advantage. It is important to measure the service quality regardless the nature of the organization or the type of industry. It is important to formulate parameters that aim to measure the service quality of an organization.
GBS Insurance is a premier independent “insurance agency” which provides knowledge related to the insurance to the general public (GBS Insurance 2017). The firm aims to provide the best care as well as affordable coverage to individuals who aim to search their perfect insurance policy. However, the company does not take sufficient measures to assess the service quality.
The research aims to determine the various perceptions of the customers regarding the quality of services in GBS Insurance company. The aim of the research is to understand the dimensions of the service quality displayed by the Insurance Company.
In order to meet the above research aims, it is important to fulfill the below objectives-
The research objectives would be followed by answering the following questions-
In this age of competition, the organizations need to focus on the quality of the services provided. The service standards are a clear differentiation of the competitive framework. It is difficult to measure the service quality of the organizations so that they can deliver higher levels of service to the customers (Quinton and Simkin 2016). This causes a decrease in the customer demand. It is important to understand the behavior of the customers towards the service delivery of GBS Insurance (Quinton and Simkin 2016). If the customer attitudes are known, then there can be service quality improvements which would be beneficial for the organizational performance. The inability of assessing the different aspects of service quality affects the overall reputation of the company as there would be higher level of customer dissatisfaction.
The research proposal is going to analyze the evaluation of the service quality with respect to GBS Insurance. The research problem would be identified along with the formulation of the research objectives and the research aims. The next chapter would discuss the literature review of the topic and would discuss the background of the research problem. The next chapter would discuss the research methodology, specifying the method of data collection as well as the method used for the analysis of data.
The literature review would discuss the background of the service quality which would focus on the definition of the service quality along with the measurement of the service quality. The background of literature would also focus on the service quality in the insurance companies. The effect of service quality on the customer satisfaction would also be discussed.
According to Shao and Lin (2016), the term “service” is usually an intangible service which is related to the performance, output or delivering a service. The output of the activity is considered as a service and there are several tangible outputs of service such as personnel, equipments or physical facilities. As argued by Sivakumar Li and Dong (2014), the service quality can be considered as comparison of the perceived expectations regarding a service with respect to the perceived performance levels. A business entity that provides high services would satisfy customer expectations and this would make them competitive in the market. The instances of increased service quality would correspond to an increase in the profitability of the firm. This is because of the fact that a firm with increased service quality would imply greater sales revenue as more number of customers would be availing the services of the company.
There are different dimensions of the service quality. As stated by Allred and Addams (2013), the customer expectations of any service is usually determined by several factors such as personal needs, recommendations and the experience of the past. If the perceived service and the expected service are not equal, then there would be gap. This gap is being demonstrated by the “Gap Model”, which highlights the primary requirements of the delivery of the excellent service quality. As explored by Zhang Van Doorn and Leeflang (2014), the customers have a tendency of comparing the service of different companies and different organizations. They strive to compare their “experiences” in different organizations and compare them with their own “expectations”. If the experience mismatches with the expectations, then there would be gap, which would lead to customer dissatisfaction.
As proposed by Aslam Nazneen and Mubeen (2015), there are five dimensions of service quality which the customers implement when they are on the verge of evaluating a particular service or several services. The survey instrument used for this purpose is known as “SERVQUAL”. In other words, if the service providers would make it a point to satisfy these dimensions, then they would enjoy loyal customers. The five dimensions of the service quality model SERVQUAL, is described as below-
The following model of the service quality perception is helpful and can be implemented in a wide variety of industries. As opined by (Oliver 2014), the service quality perceptions are dependent on different dimensions of the service quality. This is being explained by the following conceptual framework-
Fig: Conceptual Framework of Service Quality Perception
Source: Created by author
As opined by Peppers and Rogers (2016), the modern day companies are increasingly using defensive marketing strategies to gain loyal customers. The different insurance companies are able to achieve their organizational goals by satisfying the service quality parameter.
As argued by Hirst Thompson and Bromley (2015), the globalization as well as the open market system has resulted in the complex competitive environment. This is evident not only in the manufacturing sector but also in the service sector. The insurance companies are increasingly planning and executing the strategies towards enhancing customer satisfaction. The loyalty of the customers towards the company can be enhanced by delivering them effective service as per the customer preferences (Claycomb and Martin 2013).
Cummins Klumpes and Weiss (2015) argued that there are three parties involved in the insurance sector such as insurance seller, customer of insurance products and insurance company. In the insurance sector, there are six broad service criteria such as quality of raw data, quality of employee’s performance, derived data quality and quality of decision making (Womack and Jones 2015). The customer service of the insurance sector focuses on the reduction of the perceived risk of the consumers (Womack and Jones 2015). There are several options of the insurance such as commercial property insurance, legal liability insurance and the public liability insurance. The insurance products are difficult to differentiate in a highly competitive market and hence there needs to be service differentiator for remaining viable in the market.
As Womack and Jones (2015) commented, insurance companies have realized that their business is dependent on the customer service, which would result in customer satisfaction. There are certain service quality dimensions which are relevant to the insurance sector- competence, corporate image, financial planning (personalized), technology and tangibles (Srivastava and Rai 2014).
The customers are the actual analysts of the excellence of the services provided by the insurance companies. As stated by Eisingerich Auh and Merlo (2014), if the customers are satisfied with the services of the insurance companies, then they are more likely to purchase insurance policies from them. The primary cause of the increase in the number of customers can be attributed to the satisfaction level that they enjoy from availing the services of the company (Srivastava and Rai 2014). It is difficult to deliver superior quality services since there are several attributes such as heterogeneity, intangibility and inseparability. The dimensions of the service quality can be measured with the help of design approaches and gap analysis. GBS Insurance strives to maintain effective communication between the stakeholders of the company such as broker, customers and the insurance authorities (Srivastava and Rai 2014). It aims to educate the consumers regarding the new policies of insurances.
There has been a subsequent gap in the service quality perception by the consumers of the insurance companies. There are an increasing number of customers who are not happy with the services of the insurance companies. As opined Lee Tsao and Chang (2015), there is a large gap in the customer attitudes regarding the insurance services. There is not enough research that measures the interconnection of the service quality with the customer satisfaction in the insurance sector. This research would try to explore the impact of the service quality on the level of the customer satisfaction, which is applicable in the insurance sector.
This research would strive to explore the service quality in GBS insurance company and evaluate the perceptions of the customers. This would be done by assessing the service quality model and the current research would focus on a mixed research approach (Saarijärvi Grönroos and Kuusela 2014). It is important to evaluate the customer perspectives based on previous data and online publications in the insurance sector (Saarijärvi Grönroos and Kuusela 2014).
The research method has been designed carefully so that the customer perspective of the operational service quality in GBS Insurance can be assessed. A mixed research process would be used to understand the relationship between the two key attributes. The primary data collection method would comprise of the standard set of open ended structured questionnaires for asking them to the selected participants (Saarijärvi Grönroos and Kuusela 2014). The set of questionnaires would focus on understanding the customer viewpoints regarding the services provided by GBS insurance. The secondary data collection would comprise of analyzing the various online data sources such as company websites.
It is important to incorporate effective data collection in the research so that the research objectives are being fulfilled. A simple random sampling would be used in this method, in which there is equal probability of selection of all the participants defined in the sample size. A sample size of 60 would be selected. A stratified random sampling would be used to collect data from GBS Insurance Company. A group of 8 managers are selected from the 8 departments namely Claims, Actuarial, Commercial underwriting, Investment, IT, HR, Customer Service and Corporate Accounting. A group of 52 customers would be selected randomly. This would include the new customers as well as the old customers. The participants would be exposed to the questionnaires through online as well as offline modes. A team would perform face to face interviews with the managers inside the GBS office premises. The customers would be contacted over phone or email for recording their responses.
The secondary data collection method would comprise of the annual reports of the company from online sources (Bryman 2015). The various journals, books and publications would also be used for the purpose of gathering of insights into the research topic.
The data analysis is one of the most important steps of the research. The primary data collection would be done by the application of statistical techniques (Gelman et al. 2014). The primary data analysis would be done through MS-Excel. The data analysis process would include Likert Scale, which would comprise of 5 attributes. They are disagree, agree, undecided, strongly disagree, strongly agree. The questions would be assessed by comparing them with the scale and the individual responses would be rated based on the 7 point Likert scale. The quantitative data would be analyzed with the help of graphs as well as tables which would help in better analysis of the customer opinions regarding the service quality of GBS Insurance.
In order to increase the efficiency of the data analysis process, a “SERVPERF” model would be used which would be based on the model of service quality. This is helpful in understanding the service quality of the insurance companies in the private as well as public sectors (Gelman et al. 2014). The statements of the questionnaires would be based broadly grouped under five dimensions. These five dimensions are- tangibles, responsiveness, reliability, assurance and empathy. In order to measure the service quality perceptions, the Likert 5 point scale would be used. A reliability check would be performed by establishing the suitability of the construct, which would be applicable in the insurance industry.
The outcome of the research shows interesting trends. The results of the data analysis show that a majority of the customers have low satisfaction level as far as service delivery is being concerned. They feel that the communication system of the employees of the company is not adequate. The customers do not perceive the service levels of the company adequate enough and they wish them to be improved. It was also found out that the company displays low levels of empathy towards its customers. However, the managers agree that they are providing reliable, assured and responsible services to its customers. This research poses a foundation for the future research on the evaluation of the service quality in GBS insurance.
The service quality of GBS insurance should be enhanced in terms of customer service. The employees should understand the troubles of the employees and their issues. The customer service managers and the customer relationship officers should be more sensitive towards the issues of the customers. They should try to give solutions to the problems faced by thee customers. This would increase the quality of the service delivery of GBS insurance, as perceived by the customer.
The research has been performed by following ethical guidelines. The participants were not forced for giving their feedbacks and they voluntarily participated in the data collection process (Ritchie et al. 2013). An honest approach has been taken for collecting the relevant data and analyzing the same. The data were not fabricated and the actual responses of the participants were recorded. The research ensured the confidentiality of data and the responses of both the mangers as well as customers are stored in a secured place.
The study had several limitations. The managers have a biased view regarding the service quality of their own organization due to the fear of bad reputation in the company (Ritchie et al. 2013). This prevented inaccurate data collection, which prevented the understanding of the actual service provided by the organization. There are inadequate online data sources regarding the evaluation of the service quality in GBS Insurance. This creates a difficulty from the point of view of the research which would pose difficulty in the process.
References
Allred, A.T. and Addams, H.L., 2013. Service quality at banks and credit unions: what do their customers say?. International Journal of Bank Marketing.
Aslam, N., Nazneen, Q. and Mubeen, S.A., 2015. Assessment of service quality in Insurance Industry in Sultanate of Oman. International Journal of Research in Finance and Marketing, 5(8), pp.119-127.
Bryman, A., 2015. Social research methods. Oxford university press.
Claycomb, C. and Martin, C.L., 2013. Building customer relationships: an inventory of service providers’ objectives and practices. Journal of Services Marketing.
Cummins, J.D., Klumpes, P. and Weiss, M.A., 2015. Mergers and acquisitions in the global insurance industry: valuation effects. The Geneva Papers on Risk and Insurance Issues and Practice, 40(3), pp.444-473.
Eisingerich, A.B., Auh, S. and Merlo, O., 2014. Acta non verba? The role of customer participation and word of mouth in the relationship between service firms’ customer satisfaction and sales performance. Journal of Service Research, 17(1), pp.40-53.
GBS Insurance- Independent Full Service Agency.2017. GBS Insurance. Retrieved 16 February 2017, from https://gbsinsurance.com/
Gelman, A., Carlin, J. B., Stern, H. S., & Rubin, D. B. 2014. Bayesian data analysis (Vol. 2). Boca Raton, FL, USA: Chapman & Hall/CRC.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Lee, C.Y., Tsao, C.H. and Chang, W.C., 2015. The relationship between attitude toward using and customer satisfaction with mobile application services: an empirical study from the life insurance industry. Journal of Enterprise Information Management, 28(5), pp.680-697.
Oliver, R.L., 2014. Satisfaction: A behavioral perspective on the consumer. Routledge.
Peppers, D. and Rogers, M., 2016. Managing Customer Experience and Relationships: A Strategic Framework. John Wiley & Sons.
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Shao, B.B. and Lin, W.T., 2016. Assessing output performance of information technology service industries: Productivity, innovation and catch-up. International Journal of Production Economics, 172, pp.43-53.
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Zhang, S.S., van Doorn, J. and Leeflang, P.S., 2014. Does the importance of value, brand and relationship equity for customer loyalty differ between Eastern and Western cultures?. International Business Review, 23(1), pp.284-292.
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