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CHAPTER II LITERATUR REVIEW
A. Service
1. Definition of Service
A service is any act or performance that one party can offer to another that is essentially intangible and does not result in ownership
of anything. Its production may or may not be tied to a physical
product. Kotler and Keller, 2012:400.
Services involve a form of rental through which customers can obtain benefits. What customers value and are willing to pay for are
desired experiences and solutions. We use the term rent as a genetic term to denote the payment made for using or accessing something
typically for a defined period of time instead of buying it outright. You can
‘t own people, but you can pay rent their labor and expertise
Lovelock and Wirtz, 2011:36.
We emphasize that purchasers buy services because they are looking for desired results. In fact, many firms explicitly market their
services as solutions to prospective customers needs. And finally, our definition emphasizes that while customers expect value from their
service purchases in exchange for money, time, and effort; this value comes from access to a variety of value creating elements
rather than transfer of ownership Lovelock and Wirtz, 2011: 37.
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In marketing, consumers choose the supplier of goods including supermarkets based on their experiences after receiving the
service from the company, they compare the perceived service with the desired service. If the perceived service is under the expected service,
the consumer is difficult to believe in the company. If the perceived service in accordance with the desired quality, they will use the
product or service again. Therefore, the quality of service in terms of marketing plays a very important, because it can foster consumers
commitment to the company or the products or services rendered. This commitment will increase the repurchase by customers at once will
become indirectly sale to prospective customers to another. B.
Service Quality 1.
Definition of Service Quality
A service is an economic activity that creates value and provides benefits for customers at specific times and places by
bringing about a desired change in or on behalf of the recipient of the service. Although the process may be tied to a physical product, the
performance is transitory, often intangible in nature and does not normally result in ownership of any of the factors of production
Lovelock, C. and Wirtz, J. 2004. However, being able to satisfy given needs reflects the value or quality of the product or service to
the customer, including the economic value, safety, reliability, and maintainability Garvin, D.A
., 1989. Therefore, a customer‘s
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evaluation of service quality and the resulting level of satisfaction are perceived to affect bottom line measures of business success
Lacobucci, D., Grayson, K. A., and Omstrom, A. L. 1994 in Poku et. al 2013
Company personnel need a common understanding to address issues such as the measurement of service quality, the
identification of causes of service quality shortfalls, and the design
and implement of corrective actions Lovelock and Wirtz, 2011:405.
In an increasingly competitive environment service quality as an essential strategy for success and survival has attracted increasing
interest in over the past 20 years. Striving to gain a strategic competitive advantage by delivering service with quality and
satisfaction, several researchers have agreed that if companies do not recognize and respond immediately to customer
‘s needs efficiently and effectively, the result may be decreasing profits,
increasing levels of stress and customer dissatisfaction. Therefore, companies must constantly ask themselves, what do customers want
from us and how can we improve current customer ‘s perception.
Consequently, there is a huge body of marketing literature that is concerned with service quality, customer satisfaction, and
customer loyalty as three distinctive elements hat service organizations should strive for El-Salam, Shawky and El-Nahas: 2013.
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Premium service quality is a key to gain a competitive advantage in services industry. The satisfaction level of customers is
dependent on their perception of service quality and the trust in service provider Ismail et al., 2006; Aydin Özer, 2005; and Parasuraman et.
al 1988, in Mubbsher, 2014. Based on these components known that the output of the
services and their delivery means are all factors used in quality of service, it is often the determination of the quality of service becomes
very complex. The various components, a customer purchases to the air quality continues directly and started before the purchase until the
results are processed from products or services that have been
consumed by the customer. 2.
Measurement of Service Quality
In assessing or evaluating the service quality of a company, customers generally use several criteria, namely in the form of
elements that exist in the quality of service which is then described by
the dimensions of service quality.
Valerie Zeithaml, Leonard Berry, and A. Parasuraman in Lovelock and Wirzt 2011:406 have conducted intensive research on
service quality and identified 10 dimensions used by consumers in evaluating service quality. In subsequent research, they found a high
degree of correlation between several of these variables and
consolidated them into five broad dimensions:
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a. Tangibles: Appearance of physical facilities, equipment, personnel and communication materials
b. Reliability: Ability to perform the promised service c. Responsiveness: Willingness to help customers and provide prompt
service d. Assurance:
1 Credibility: Trustworthiness, believability, honesty of service provider
2 Security: Freedom from dangerous, risk or doubt 3 Competence: Possession of the skills and knowledge
required to perform the service 4 Courtesy: Politeness, respect, consideration and
friendliness of contact personnel e. Empathy:
1 Access: Approachability and ease of contact 2 Communications: Listening to the customer and keeping
them informed in a language the can understand 3 Understanding the customer: making the effort to know
customers and their needs
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C. Sales Promotion
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