Definition of Service Quality

9 According to Kotler and Keller 2009:5 marketing management is the art and science of choosing target markets and getting, keeping, and growing customer through creating, delivering, and communicating superior customer value. From the definition above marketing management that have been explained by the expert, author can make a conclusion that marketing management is a concept or art were designed to attract buyers for buy a product or service. 2. Service Quality

a. Definition of Service Quality

Service quality is one of important factors in order to achieve competitive advantage. Service has variety meaning and traditionally difficult to describe. Even more difficult were the fact how to create and send the service to customer often hard to understand. Some expert also define in different ways, here are the definition of Lovelock and Wright 2005:5 : 1 Service is an act or performance that had offered by one party to the other party. Although the process might be related to the physical product, the performance is essentially intangible and usually the result does not have ownership to factor of production. 2 Services are economic activities that create and deliver benefits to customers at a particular time and place, as the result of actions that bring about desire changes in themselves or to its service recipient. 10 According Lovelock and Wirtz 2005:9 services are economic activities that have offered by one party to another party, most commonly employing time-defined performances to bring about desired result in recipients themselves or in object or other assets for which purchasers have responsibility. According to Kotler et al 2009:139 quality is the totality of features and characteristics of a product or services that bear on its ability to satisfy stated or implied needs. According to Lovelock and Wright 2005:96 service quality is long term evaluation customers to deliver some service through a company. Service quality can be determined with comparing the perception of consumer for services which clearly they had received or get from the a real service what they were expecting or desired to the service attribute some company. According to Santouridis and Trivellas 2010 service quality is usually understood as a measure of how well the level of the delivered services matches customer’s expectations. Service is the most important element to know customer satisfaction in consuming the product or service. Customers will compare what they were expecting for accepted with what their truly received during the post-purchase step of the process buying service. They had decided whether satisfied or dissatisfied with delivering the service and results, they also make judgment about the quality service. 11 If the service that received and perceived suitable with expectation, so the service quality has a good perception and satisfied. If the services received beyond the consumer expectations, so the service quality has a very good perception and good quality. Whereas, if the services received is lower than expected, then service quality has a bad perception. From the definition above service quality that have been explained by expert, the author can make conclusion that service quality is any kind of activity that performed by company in order to fulfill consumer expectations. In this case, service defined as a service that deliver by owner such as easier, speed, relationship and politeness which shown through attitude and character in delivering service for customer satisfaction. b. Dimension of Service Quality The cooperative or company can stay ahead and compete because they give a service with high quality, consistent, and continuous. Every company have to maintain service quality that had given, even make some improvement so the expectation from consumer could be fulfilled. To provide good service quality to customer, we have to know the thing that customer expect from service quality that we had provided. In this case, there are five dimension service quality based on Lovelock and Wright 2007:407 as follows : 12 1 Tangibles The appearance of physical facilities, equipment, personnel, and communication materials. 2 Reliability Ability to perform the promised service dependably and accurately. 3 Responsiveness Willingness to help customers and provide prompt service. 4 Assurance Credibility, security, competence, and courtesy. 5 Empathy Access, communication, and understanding customer. 3. Brand Image a. Definition of Brand Image One of the most important part of some product is brand image, brand can be some additional value to the product whether tangible and intangible product. Image is the way public actually perceives them Kotler et al.,2009:279. Every company that have move in goods or services sector try to increase their strong image in market to get more revenue. In this case, company will try to introduce their product especially in excellence which is another company does not have a same product. The existence of brand is not merely to show the name from some product, but more than that, brand shows the additional value of product in various dimensions that make differentiation its product from other products. 13 Brand was an important attributes from some product. Moreover, brand was an identity to differentiate company’s product with another product. In this case, definition of brand image has different explanation from several expert, but all of them have a similar understanding between each other. Here are some definition of brand image that author quotes from several expert : According to Kotler et al 2009:296 brand is a name, term, sign, symbol, or design, or some combination of these elements, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors. The different components of a brand names, logos, symbols, package, designs, and so on are brand elements. According to Petter and Donnelly 2009:85 brand is a name, term, design, symbol, or any other feature that identifies one seller’s good or services as distinct from those of other sellers. According to Keller 2008:2 brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those competition. According to Keller 200 8:51 brand image is consumer’s perception about the brand, as reflected by brand association held in consumer memory. From the definition above brand image that have been explained by expert, the author can make conclusion that brand image is the identity of company in order to make the customer know the 14 differentiation between another company. b. Measurement of Brand Image According to Keller 2008:56 defined the measurement of brand image can conducted based on the aspects of a brand, namely : 1 Strengthens The more deeply a person thinks about product information and relates it to existing brand knowledge, the stronger result brand associations will be. The strength in this case are the advantages owned by a physical brand which not found from another brand. The advantages of this brand refers to the physical attributes, so commonly as the advantages compared to the other brand. What is included in group strength namely; physical product, quality product, function of product facilities, price product, and the appearance of supporting facilities to its products. 2 Uniqueness Uniqueness is the ability to differentiate a brand among other brands. This impression arises from the unique attributes product, be a unique impression means there is differentiation between one product to other products. What is included in uniqueness group namely; the variation service that usually given a product, the variation of product, and physical appearance of product. 15 3 Favorable Favorable refers to the ability of the brand to be easily remember by consumers. What is included in this category namely; brand easy to say, the ability of brand to be remembered by consumers, or the suitability between the impression of brand in mind of consumer with brand image company above its brand. c. Building Brand Image According to Joe 2004:20 establishment of brand image in consumer perspective are not happen in a relatively short time, but in the long term, and not takes many years. Establishment of brand image are influenced by: 1 The quality of product that produce. 2 Services provided. 3 The companys reputation. 4 The company’s policy. 5 Marketing activities of the company itself. 4. Customer Satisfaction a. Definition of Customer Satisfaction Everyone knows what satisfaction is, until asked to give a definition. Then seems nobody knows. In less technical terms we interpret this definition to mean that satisfaction is the customer’s evaluation of a product or service in terms of whether that product or 16 service has met the customer’s needs and expectations. Failure to meet needs and expectations is assumed to result in dissatisfaction with the product or service. Zeithaml., et al 2006:110 Customers have experience different levels of satisfaction or dissatisfaction after they consume product or service which was suitable with their expectation. Because satisfaction is the emotional condition, reaction after bought something could be anger, dissatisfaction, aggravation, neutrality, excitement, or enjoyment. Lovelock and Wirght, 2005:102. Customer satisfaction can be achieved only with giving high quality service to the consumer. Good service and quality had been judged by consumers directly from employee as a person who serve a service or also called producer services. Because it takes some effort to improve service quality system that had given to fulfill the desire and increasing customer satisfaction. So, service quality was the first thing to measure improvement customer loyalty to become something important that we have to be considered by company in order to achieve customer satisfaction. According to Kotler et al 2009:136 satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a products perceived performance out-come in relation to his or her expectations. If the performance falls short of expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted. 17 Service quality has a close relationship with customer satisfaction. Quality gives a push to consumers for establish a strong relationship with the company. In the long term, this relationship enable companies to understand consumer expectations and needs carefully. Thus, companies can increasing customer satisfaction and at the end its satisfaction can create loyalty or customer loyalty. In order to get customer satisfaction, companies can give an excellent service quality. Because that things can fulfill the consumer needs and expectations. Satisfaction is the fulfill response of customer about the service and product. It is also a finding about the product and service feature or the product and services itself; satisfaction is conceptualized as an overall, customer attitude towards a service provider. Thakur and Singh 2012 From the definition above customer satisfaction that have been explained by expert, the author can make conclusion that customer satisfaction is the expectation based on what customer perceives. b. Factor of Customer Satisfaction According to Rangkuti 2003:30 customer satisfaction defined as the response of consumer to mismatch between previous importance level and the actual performance after used. The factors that affect customer satisfaction as follows : 18 1 Customer value, namely : a Accept customer complaint. b Responses customer complaint. c Have many types of services. d Give a good information to customer. 2 Customer Response, namely : a Keep loyal for a long time. b Buy more when company introduce new product and renew existing product. c Talk a good thing about the company product. d Give a little attention to brand and advertising competitor. e Offering the service or product ideas to company. 3 Customer perception, namely : a Customer feel satisfied with process and services provided. b Customers feel safe and comfortable when have a deal to company. c Give a advice to customer complaint either through the suggestion box or e-mail. c. Method of Measuring Customer Satisfaction Kotler and Amstrong 2003:148 discuss several methods to measure customer satisfaction, which are : 19 1 Complaint and Suggestion system Each customer oriented service organization should provide the widest opportunity to its customers to submit suggestion, criticism, opinions, and their complaints. Information obtained through this method can provide new ideas and input are valuable to the company making it possible to react quickly and respond in overcome the problems that arise. 2 Customer satisfaction survey Like in this research, company can do a survey to measure customer satisfaction using such as questioner or by phone calls to a random sample of their customers. Through the survey, companies will get responses and feedback directly from customers and give a positive sign that companies pay attention to them. Customer satisfaction survey is divided into four categories, which are : a Directly report satisfaction The respondents are being asked directly with question in order to know if they are very satisfied, satisfied, neutral, dissatisfied, or very dissatisfied. This survey is to used to collect the customer opinion and needs which can give the result called the customer satisfaction index. This customer satisfaction index’s the standard of company needs to maintain. 20 b Derived dissatisfaction The question that being asked included two aspect, how high is the customer expectation in the certain attribute, and how high is the performance that customer’s feel of this attribute. c Problem analysis The respondents are being asked to describe two things; the problem which related with the company offer and suggestion for improvement. d Importance performance analysis The respondents are asked to rate the services according to the customer importance and company performance in each attributes. e Ghost shopping This method use a person to pose as potential buyer to report their findings on strong and weakness points when experience buying the company’s and competitor’s product. Ghost shoppers also can observe how the company and its competitors in serving customer demands, answering customer question, and solve any problems or customer complaints. f Lost customer analysis The company contact customers who have stopped buying or switched to another supplier to learn why this condition 21 happened and in order to understand and take the police to further improve or refine. g Some caution in measuring customer satisfaction The company must make a well-structured questionnaire; otherwise the customer would face a huge questionnaire. The company must also be able to recognize that two customers can report being highly satisfied for two reasons. One person maybe easily satisfied most of the time, and the other one might be hard to please but was pleased on this occasion. 5. Customer Loyalty a. Definition of Customer Loyalty Customer loyalty is the purpose form organization or company to have a strong relationship with members, that thing can involve the trust between company and customer, because the customer has been loyal to its product and they will not move to other product or brand, at the end the company can get more revenue. According to Manish 2001 customer loyalty is winning the confidence of the customer in favor of an organization such that the relationship becomes a win and win solution for both the organization as well as the customer. Customer loyalty is not only the customer incorporated to company. Customer loyalty is something more of what an enterprise must get from the customer. Different with the purpose, the 22 customer is not only build loyalty to company, but the company has to maintain its loyalty to the customer. According to Lovelock and Wright 2005:133 loyalty is customer decision to voluntarily always became a member with a particular company in long term periods. From the definition above customer loyalty that have been explained by expert, the author can make conclusion that customer loyalty is some relationship between company and customer to create trustiness, because the customer feel satisfied with its product. b. Characteristic of Customer Loyalty Customers who are loyal is an important asset for the company, it can be seen from their characteristics, according to Griffin 2010:130 the characteristic of customer loyalty such as : 1 Recommending the products or services to other. 2 Buy the product line or services. 3 Shows the immunity from attraction similar product of competitors. 4 Making a purchase regularly In order to be a loyal customer, customer has to pass several steps. According to Lovelock and Wirtz 2004:352 there are four steps to measure customer loyalty. The steps are as follows : a Cognitive Loyalty The first step in loyalty, the available information about product or 23 service is become determine factor. Consumers become loyal in a cognitive sense, it can be perceiving from brand attribute information that one brand is better than other and the product has a good quality Tjokroaminoto and Kunto, 2014. This means, information held by a consumer confidence must point to a brand is considered to be superior over the competition. b Affective Loyalty In this step of loyalty, the position has a strong influence, either in behavior or the component that have influence to satisfaction. This condition is difficult to be eliminated, because the loyalty has been planted in customer mind not as awareness or expectation. Affective loyalty indicates the preferences and liking the brandstoresservices. c Conative Loyalty This step has contain the high purchase intention such as keep buy some product. The desire to do re-purchase or be a loyal are the action can be anticipated but not realized. d Action Loyalty Action or behavioral loyalty is the stage where behavioral intentions get converted into actions. Behavioral loyalty has been considered as repeat purchases frequency or proportion of purchase and possible to recommend. 24

B. Previous Research