Analyzing Service Quality and Satisfaction by Multivariate Analysis of Variance: A Case of Taiwan Tobacco and Liquor Corporation

Analyzing Service Quality and Satisfaction by Multivariate Analysis of Variance: A Case of Taiwan Tobacco and Liquor Corporation

An-Wen Lu, Ya-Hua Chang, Hsin-Hung Wu
Copyright: © 2021 |Pages: 17
DOI: 10.4018/IJISSS.2021100101
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Abstract

Due to the market openness for the competitive tobacco and liquor market, Taiwan Tobacco and Liquor Corporation has to pay attention to service quality and customer satisfaction more than before for its retailers in order to maintain its marketplace and even increase its sales. In this research, a case study at South Branch Office in Taichung City, Taiwan is conducted with the effective sample of size of 178 retailing customers through phone purchase by multivariate analysis of variance. The results show that Item 20 has the lowest satisfaction and is the only item less than the value of 3 in a 5-point Likert scale. A platform for retailers to order goods from the internet should be placed in the highest priority. In addition, the age group of 36-45 years old perceived the lowest satisfaction on Item 16, which should be the focal point. Moreover, the other focal point is that the retailers purchasing tobacco through phone purchase has the second lowest satisfaction on Item 17. The management needs to address these two issues in order to provide better service for its retailers.
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Introduction

Taiwan Tobacco and Liquor (TTL) Corporation was originally a state-own enterprise. Since 2002, this company has gradually transformed itself from monopoly to open market and the privatization in order to gain the competitiveness in Taiwan after the market openness in tobacco and general wines. With the market openness, it is critically important for TTL Corporation to provide better services for its retailers, such as traditional grocery stores, convenience stores, supermarkets, and so on, in this intensified market. Customer satisfaction is an overall attitude toward a product or service provider to see if the service quality meets customer needs (Lee, Chang, & Chen, 2013). In addition, measuring customer satisfaction is essentially important because increasing customer satisfaction enhances customer retention, repurchase frequency, profitability, and, eventually, customer loyalty. In fact, customer satisfaction is a key indicator to reflect if the provided service quality has been met (Orel & Kara, 2014).

Studies have shown that different demographic variables might perceive different service quality or satisfaction (Chen, Lee, Chen, & Huang, 2011; Chen, Tsai, Peng, & Wu, 2013; Wu & Hung, 2015). That is, it is of great importance for Taiwan Tobacco and Liquor Corporation to measure the retailers’ overall satisfaction and then further identify the service/satisfaction differences with different retailers’ demographic information. In practice, service quality (SERVQUAL) model proposed by Parasuraman, Zeithaml, & Berry (1988) has been widely used to evaluate service quality or satisfaction for a wide variety of service industries (Lu & Wu, 2010; Shieh, Wu, & Huang, 2010; Abaria, Yarmohammadian, & Estekic, 2011; Udo, Bagchi, & Kirs, 2011; Wu & Hsieh, 2012; Mukhtar, Saeed, & Ata, 2013). Thus, this study uses SERVQUAL model as a basis to develop the questionnaire for the retailers through phone purchase in South Branch Office in Taichung City, Taiwan to measure the service quality and retailers’ satisfaction.

Analysis of variance (ANOVA) is typically applied to identify if different demographic variables perceive different service quality or satisfaction (Chen et al., 2011; Chen et al., 2013). In contrast, this study intends to use multivariate analysis of variance (MANOVA). ANOVA is to analyze uni-response problems, but MANOVA uses the variance-covariance between variables to measure the mean differences with several correlated dependent variables (Wu, Hsueh, & Tsai, 2014). With the use of MANOVA, we can observe how different retailers’ demographic variables (independent variables) including the interactions of demographic variables impact different service quality or satisfaction items (dependent variables) as a whole. When critical demographic variable(s) and the interaction effects are found, Bonferroni test is applied in post hoc multiple comparison analysis to identify the differences on dependent variables.

This paper is organized as follows. Section 2 reviews service quality, SERVQUAL model, and the relationships among service quality, customer satisfaction, and customer loyalty. A case study is described in Section 3. Finally, conclusions are summarized in Section 4.

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