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Inte rnatio nal Jo urnal o f Educ atio nal Manage me nt 1 1 ,2 [1997] 7 2 –7 9 © MCB Unive rsity Pre ss [ISSN 0951-354X]

Searching for excellence in business education: an

exploratory study of customer impressions of

service quality

Gaston LeBlanc

Unive rsity o f Mo nc to n, Mo nc to n, Ne w Brunswic k, Canada

Nha Nguyen

Unive rsity o f Mo nc to n, Mo nc to n, Ne w Brunswic k, Canada

Examines the concept of service quality in business education with data collected from 388 students. Identifi es seven factors which infl uence student evaluations of service quality. In descending order of importance these factors are: reputation, administra-tive personnel, faculty, cur-riculum, responsiveness, physical evidence and access to facilities. Describes the implications for controlling quality and for achieving excellence in business education.

Introduction

T h e id en t ifi ca t ion of t h e d im en s ion s w h ich sign a l q u a lit y a n d t h e a ch ievem en t of excel-len ce in bu sin ess ed u ca t ion h ave em er ged t h is d eca d e a s k ey issu es fa cin g t h e a ca d em y. In d eed , lik e m a n y ot h er or ga n iza t ion s, bu s i-n es s sch ools m u s t b e coi-n cer i-n ed i-n ow w it h m a r k et s h a r e, p r od u ct iv it y, r et u r n on in ves t -m en t a n d t h e q u a lit y of ser v ices offer ed t o t h eir cu s t om er s. Ser v ice q u a lit y ca n lea d t o excellen ce in bu s in ess ed u ca t ion a n d ca n h ave la s t in g effect s on t h e in st it u t ion a n d t h e st u d en t s it ser ves. T h is ca n in fl u en ce s t u d en t r ecom m en d a t ion s of t h eir p r ogr a m m e t o ot h er s, a s w ell a s t h eir fu t u r e m on et a r y con -t r ibu -t ion s in su p p or -t of -t h eir u n iver s i-t y (Allen a n d Dav is, 1991).

Des p it e t h e im p or t a n ce given t o ser v ice q u a lit y, St er n a n d Ts en g (1993) r e p or t t h a t few bu sin es s s ch ools h ave a d op t ed a t ot a l q u a lit y m a n a gem en t (TQM) p h ilos op h y. As s u ch , t h is h a s r es u lt ed in m u ch cr it icism d ir ect ed a t bu sin es s s ch ools w h er e cu r r icu lu m a n d cou r se con t en t s, t ea ch in g m et h od s a n d p ed a -gogy, a n d t h e r eleva n ce of a ca d em ic r es ea r ch h ave b een q u est ion ed (Ca n n on a n d Sh et h , 1994). In t er es t in gly, given t h e s t a t u r e of bu s i-n es s sch ools a i-n d t h e t ei-n d ei-n cy t o p la ce p r ofes-sion a l s er v ice p r ov id er s on a p ed es t a l b a s ed on t h eir r e p u t a t ion a n d p er ceived q u a lit y (Sw a r t z a n d Br ow n , 1989), it is su r p r isin g t o d iscover t h a t lit t le r es ea r ch h a s b een r e p or t ed on t h e q u a lit y of s er v ices in bu s i-n es s ed u ca t ioi-n .

F r om t h e p er sp ect ive of TQM , ed u ca t ion a l offer in gs sh ou ld b e im p r oved con t in u a lly in or d er t o r efl ect t h e la t es t m et h od s a n d t r en d s (Ca n n on a n d Sh et h , 1994) a n d b et t er t o sa t is fy t h e n eed s of cu st om er s. To t h a t en d , Br ow n a n d Koen ig (1993) r ecom m en d t h a t cu s t om er eva lu a t ion s of t h e q u a lit y of t h eir ed u ca t ion sh ou ld b e a n in t e gr a l p a r t of TQM

p r ogr a m m es in bu s in ess ed u ca t ion . In d eed , a b et t er u n d er st a n d in g of h ow cu s t om er s for m im p r es s ion s of q u a lit y ca n p r ov id e va lu a ble in for m a t ion t o m a n a gem en t for d es ign in g ser v ice d eliver y sy s t em s t h a t en h a n ce cu s -t om er sa -t is fa c-t ion (Sey m ou r, 1992) a n d for a d a p t in g t h e u n iver s it y en v ir on m en t t o t h e st u d en t s ’ n eed s (H a m p t on , 1993). In t h e d esign of q u a lit y im p r ovem en t p r ogr a m m es

it is t h u s t h e cu s t om er s’ d efi n it ion s of q u a lit y w h ich cou n t , s in ce m a n a gem en t m ay m a k e t h e w r on g a s su m p t ion s a s t o h ow cu st om er s a ct u a lly a ss ess ser v ice q u a lit y. As su m p t ion s su ch a s t h ese cou ld lea d t o t h e est a blish m en t of im p r op er p r ior it ies w it h r e ga r d t o q u a lit y con t r ol st a n d a r d s in bu sin es s ed u ca t ion (N igh t in ga le, 1983). Ta k in g cu s t om er sa t isfa c-t ion in c-t o con sid er a c-t ion , a k n ow led ge a n d b et t er u n d er st a n d in g of t h e p r ocess a n d t h e va r iou s ch a r a ct er ist ics, q u a lit ies a n d a t t r ib -u t es w h ich -u n d er lie s t -u d en t s ’ p er ce p t ion s of q u a lit y a r e w a r r a n t ed .

T h e m a in p u r p os e of t h is st u dy is t o ga in m or e in sigh t s in t o t h e d im en s ion s u sed by bu sin ess st u d en t s eva lu a t in g s er v ice q u a lit y a n d t o id en t ify w h ich com p on en t s of t h e ser -v ice d eli-ver y p r oces s a r e m os t im p or t a n t in t h eir ju d gem en t .

Review of the literature

Ser v ice q u a lit y is a n elu sive con st r u ct , m a in ly b eca u s e of t h e u n iq u e fea t u r es t h a t d iffer en t ia t e ser v ices fr om good s. In t a n gib il-it y, in se p a r a b ilil-it y of p r od u ct ion a n d

con su m p t ion , h et er ogen eit y a n d p er ish a b il-it y a r e t h e fou r w ell-d ocu m en t ed fea t u r es of ser v ices a ck n ow led ged in t h e ser v ice m a r k et -in g lit er a t u r e (Ber r y, 1980; Bit n er, 1992; Love-lock , 1983; Zeit h a m l et a l., 1985). Beca u se of t h ese u n iq u e fea t u r es, a n d t h e d ifficu lt ies of d efi n in g a n d d elim it in g q u a lit y a s it a p p lies t o in t a n gibles, t h e m ea su r em en t of ser v ice q u a lit y in sp ecifi c s er v ice in d u s t r ies st ill r em a in s a ch a llen ge (Ba b a k u s a n d Boller, 1992).

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Gasto n Le Blanc and Nha Nguye n

Se arc hing fo r e xc e lle nc e in busine ss e duc atio n: an e xplo rato ry study o f c usto me r impre ssio ns o f se rvic e quality

Inte rnatio nal Jo urnal o f Educ atio nal Manage me nt 1 1 / 2 [1 9 9 7 ] 7 2 –7 9

in d u st r y. F a ct or a n a ly sis of cu st om er s ’ d iffer -en ce s cor es, i.e. t h e d iffer -en ce b et w e-en exp ec-t a ec-t ion s a n d p er for m a n ce r a ec-t in gs on ec-t h e iec-t em s, is t h en u sed t o id en t ify t h e d im en sion s t h a t sign a l q u a lit y t o con s u m er s. F r om t h is wor k , P a r a s u r a m a n et a l. con ce p t u a lize s er v ice q u a lit y t o b e a fi ve-d im en s ion a l con s t r u ct con sis t in g of t a n gibles, r elia b ilit y, r es p on s ive-n es s, a s s u r a ive-n ce a ive-n d em p a t h y. T h ese fi ve fa c-t or s a r e d es cr ib ed a s follow s :

1 Ta n gibles con sis t m os t ly of it em s t h a t a r e a s s ocia t ed w it h t h e p h y sica l en v ir on m en t w h er e t h e ser v ice is p r od u ced a n d con -s u m ed .

2 Relia b ilit y con cer n s it em s w h ich r ela t e t o t h e s er v ice p r ov id er s’ a b ilit y t o p er for m d e p en d a bly a n d a ccu r a t ely.

3 Resp on s iven ess com p r is es it em s w h ich a r e a s s ocia t ed w it h t h e ser v ice em p loyees’ w illin gn ess t o h elp cu s t om er s a n d p r ov id e p r om p t ser v ice.

4 As s u r a n ce is m a d e u p of it em s w h ich d es cr ib e t h e k n ow led ge a n d cou r t es y of em p loyees a n d t h eir a b ilit y t o in sp ir e t r u s t a n d con fi d en ce.

5 E m p a t h y, for it s p a r t , is loa d ed w it h it em s w h ich cor r es p on d t o t h e ca r in g, in d iv id u -a lized -a t t en t ion w h ich s er v ice com p -a n ies give t o t h eir cu st om er s.

F r om t h is wor k , P a r a s u r a m a n et a l. (1991) fou n d r elia b ilit y t o b e t h e m os t im p or t a n t fa ct or a ffect in g ju d gem en t s of q u a lit y in fi ve of t h e con s u m er gr ou p s t h ey su r veyed .

Alt h ou gh SE RVQUAL h a s ga in ed n ot or iet y, it s va lid it y a s a fi ve-d im en s ion a l con s t r u ct a n d it s gen er a l a p p lica b ilit y a cr os s s er v ice in d u s t r ies h ave n on et h eless b een q u est ion ed (Cr on in a n d Tay lor, 1994; Tea s, 1994). For exa m p le, t h e u s e of d iffer en ce s cor es h a s b een d escr ib ed a s su sp ect (Ca r m a n , 1990) b eca u s e of t h e p ot en t ia l t h r ea t of low r elia b ilit y of t h e d iffer en ce s cor e va r ia ble. Differ en ce s cor es a r e s a id t o p r es en t p oor r elia b ilit y b eca u se p os it ive cor r ela t ion b et w een t h e com p on en t s cor es d im in ish es t h e r elia b ilit y of d iffer en ce s cor es (Br ow n et a l., 1993). Sim ila r ly, s in ce exp ect a t ion s va r y over t im e (Ca r m a n , 1990), b ot h t h e exp ect a t ion s a n d p er for m a n ce m ea -s u r e-s -s h ou ld n ot b e ca p t u r ed d u r in g t h e -s a m e a d m in ist r a t ion of t h e in s t r u m en t a s w it h SE RVQUAL. In a d d it ion , p er for m a n ce-b a s ed m ea su r es of s er v ice q u a lit y w er e fou n d t o b e b et t er for m ea su r in g t h e s er v ice q u a lit y con -s t r u ct (Cr on in a n d Tay lor, 1992).

T h e d es ign of q u a lit y m ea s u r es for s p ecifi c s er v ice p r ov id er s s h ou ld lea d t o a b et t er u n d er st a n d in g of t h e con s t r u ct a n d t o t h e a d a p t a t ion of q u a lit y im p r ovem en t p r ogr a m m es w h ich cor r es p on d t o ser v ice com p a n y n eed s. F r om t h e d esign p er s p ect ive, d e p en d a ble m ea s u r es of s er v ice q u a lit y for

s p ecifi c ser v ice in d u st r ies a r e a v ia ble r esea r ch st r a t e gy t o p u r su e (Br ow n a n d Koen ig, 1993; Ca r m a n , 1990; Cr on in a n d Tay lor, 1992; F in n a n d La m b, 1991; Zeit h a m l, 1988). To t h a t en d , P a r a su r a m a n et a l. (1993, p. 145) st a t e t h a t “SE RVQUAL it em s a r e t h e b a sic sk elet on u n d er ly in g s er v ice q u a lit y t h a t ca n b e su p p lem en t ed w it h con t ext sp ecifi c it em s w h en n ecessa r y ”.

F r om a r ev iew of t h e ser v ices m a r k et in g lit er a t u r e, a lt er n a t ive con ce p t u a liza t ion s of t h e ser v ice q u a lit y con st r u ct a r e id en t ifi ed . Gr ön r oos (1984), a lon g w it h Let h in en a n d Let h in en (1982) id en t ifi es cor p or a t e im a ge a s a n im p or t a n t q u a lit y in d ica t or for cu st om er s. Im a ge is d es cr ib ed a s t h e over a ll im p r ession m a d e on t h e m in d s of cu s t om er s (Dich t er, 1985). It is r ela t ed t o t r a d it ion , id eology, bu sin ess sin a m e, r e p u t a t iosin a sin d va r iet y of ser v ices, a n d t o t h e im p r ession of q u a lit y com -m u n ica t ed by ea ch p er son in t er a ct in g w it h cu st om er s (Solom on , 1985). Given t h a t ser v ices a r e in t a n gible, in vest iga t in g h ow r e p u -t a -t ion r ela -t es -t o q u a li-t y a p p ea r s w a r r a n -t ed . Re p u t a t ion is d escr ib ed by H er b ig et a l. (1994) a s t h e con sist en cy of a n or ga n iza t ion ’s a ct ion s over t im e. As s u ch , r e p u t a t ion st em s fr om t h e gu a r a n t ee of r elia ble ser v ice; it is com p a r a ble t o t h e zer o d efect s p h ilosop h y. T h e r e p u t a t ion of a ser v ice fi r m is bu ilt t h r ou gh t h e cr ed ible a ct ion s of m a n a gem en t , i.e. t h e b elieva b ilit y t h a t m a n a gem en t w ill ca r r y ou t st a t ed in t en t ion s s u ch a s w h en u n con d it ion a l ser v ice gu a r a n t ees a r e offer ed t o cu s t om er s (H a r t , 1988). Ma n a gem en t p lay s a p ivot a l r ole in bu ild in g r e p u t a t ion t h r ou gh a set of n ot icea ble in d ica t or s su ch a s lea d er -sh ip s t y le, p er son a lit y, a n d t h e fost er in g of a n or ga n iza t ion a l clim a t e d ir ect ed a t m eet in g t h e n eed s of t h e cu st om er s it ser ves. T h er e-for e, r e p u t a t ion is clos ely t ied t o im a ge in t h a t it a ffect s cu s t om er exp ect a t ion s w it h r e ga r d t o t h e q u a lit y of t h e s er v ice offer in g (Yoon et a l., 1993).

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Gasto n Le Blanc and Nha Nguye n

Se arc hing fo r e xc e lle nc e in busine ss e duc atio n: an e xplo rato ry study o f c usto me r impre ssio ns o f se rvic e quality

Inte rnatio nal Jo urnal o f Educ atio nal Manage me nt 1 1 / 2 [1 9 9 7 ] 7 2 –7 9

T h e n a t u r e a n d t h e q u a lit y of t h e r ela t ion -sh ip s d evelop ed d u r in g t h e ser v ice en cou n t er a r e a lso in fl u en ced by t h e p h y sica l en v ir on -m en t . In t h e a n a ly sis of “ser v icesca p es ”, Bit n er (1990, 1992) p r op os es t h a t cu es fr om t h e p h y s ica l s u r r ou n d in gs a r e in d ica t ive of t h e ser v ice fi r m ’s ca p a b ilit ies a n d t h e q u a lit y of it s s er v ices. In s t u d ies of fa cu lt y office d es ign s, for exa m p le, s t u d en t s’ b eliefs a b ou t t h e p er s on occu py in g t h e office a n d t h eir p er s on a lit y t r a it s w er e fou n d t o b e in fl u en ced by su ch cu es a s d ip lom a s on t h e w a ll, t id in ess of office a n d d esk p la cem en t (Wa r d et a l., 1989). P h y s ica l ev id en ce h a s, t h er efor e, a st r on g in fl u en ce on em p loyee m ot iva t ion s a n d t h e q u a lit y of t h e ser v ice en cou n t er.

T h e r ev iew of t h e lit er a t u r e p r ov id ed t h e b a sis for a n exp lor a t or y st u dy of s er v ice q u a l-it y in a bu s in ess ed u ca t ion s et t in g. It s ob ject ives w er e ject o id en ject ify ject h e u n d er ly in g d im en -sion s u s ed by st u d en t s in t h eir eva lu a t ion of t h e q u a lit y of ed u ca t ion t h ey r eceived a n d t o d et er m in e t h e im p or t a n ce of t h es e in t h eir eva lu a t ive p r ocess.

Methodology

T h e lit er a t u r e r ev iew, a lon g w it h t h r ee focu s gr ou p in t er v iew s w h ich w er e h eld w it h a t ot a l of 32 s t u d en t s, p r ov id ed t h e b a s is for d evelop in g t h e q u es t ion n a ir e u sed in t h is st u dy. St u d en t s a r e t h e logica l gr ou p t o u s e for gen er a t in g it em s a n d id ea s on h ow bu s i-n ess s ch ools ca i-n im p r ove t h e q u a lit y of t h eir ser v ices. To t h is en d , t h e gen er a l gu id elin es r ecom m en d ed for t h ese in t er v iew s w er e fol-low ed (Fer n , 1982) a n d p a r t icip a n t s of b ot h sexes w er e select ed , r e p r es en t in g ea ch yea r of t h e bu s in ess p r ogr a m m e offer ed by t h e bu s i-n ess s ch ool. Du r ii-n g t h ese gr ou p ii-n t er v iew s, p a r t icip a n t s w er e a s k ed t o d escr ib e t h eir exp ect a t ion s w it h r e ga r d t o t h e bu s in ess sch ool, q u est ion ed on va r iou s a s p ect s s u r -r ou n d in g t h e s e-r v ices a n d fa cilit ies offe-r ed , a n d q u er ied on w h a t t h ey con sid er ed excel-len t s er v ice en cou n t er s t o b e in t h e con t ext of t h eir bu s in ess sch ool.

T h e q u est ion n a ir e con t a in ed 38 va r ia bles r ela t ed t o d iffer en t a sp ect s of t h e bu s in ess sch ool’s s er v ice offer in g, s u ch a s p r oject ed im a ge, p h y s ica l fa cilit ies a n d in st r u m en t s, op er a t in g p r oced u r es, s er v ice d eliver y, a lon g w it h fa cu lt y a n d a d m in ist r a t ive p er son n el. Ca r e w a s t a k en t o in clu d e it em s t h a t cor r e-sp on d ed t o t h e fi ve SE RVQUAL d im en s ion s id en t ifi ed by P a r a s u r a m a n et a l. (1991). T h e it em s w er e m ea su r ed on a 7-p oin t , Lik er t -t y p e s ca le t h a t va r ied fr om 1 = m u ch wor s e t h a n exp ect ed t o 7 = m u ch b et t er t h a n exp ect ed , a n d m id -p oin t s on t h e sca le w er e n ot la b elled . Alt h ou gh t h is sca le is r e p or t ed by Oliver

(1981) t o b e m or e m ea n in gfu l t o r esp on d en t s in t er m s of m a k in g com p a r ison s b et w een p er ce p t ion s a n d exp ect a t ion s, P r a k a sh a n d Lou n sbu r y (1983) w a r n t h a t it cou ld b e b ia sed in t h a t r esp on d en t s m igh t r a t ion a lize t h eir p r ep u r ch a se exp ect a t ion s a t t h e p ost p u r -ch a se s t a ge.

T h e r esp on d en t s w er e a sk ed t o w h a t d e gr ee t h e q u a lit y of t h e ser v ice offer ed by t h e bu sin ess sch ool cor r esp osin d ed t o t h eir exp ect a -t ion s on -t h e 38 va r ia bles r ela -t ed -t o s er v ice. T h is a p p r oa ch a gr ees w it h Ca r m a n ’s (1990) p r op os it ion t h a t b ot h exp ect a t ion s a n d p er ce p t ion s of ser v ice b e ca p t u r ed in on e a d m in ist r a t ion in t er m s of t h e p er ce p t ion / exp ect a -t ion d iffer en ce.

T h e sa m p le of r esp on d en t s w a s t a k en fr om a sm a ll bu sin ess sch ool. T h is bu sin ess sch ool offer s b ot h u n d er gr a d u a t e a n d gr a d u a t e p r o-gr a m m es a n d h a s a n en r olm en t of a p p r oxi-m a t ely 700 s t u d en t s. To s elect t h e sa oxi-m p le, cla ss es a cr oss t h e bu sin ess sch ool w er e st r a t i-fi ed on t h e b a sis of d e p a r t m en t a n d cla ss level, a n d a con ven ien ce sa m p le of st u d en t s w a s select ed t o su r vey. Qu est ion n a ir es w er e a d m in ist er ed in cla ss d u r in g t h e m id -t er m of t h e fa ll sem est er a ft er st u d en t s h a d r eceived t h e gr a d in g of t h eir fi r s t ser ies of exa m s. T h e sa m p lin g y ield ed 388 u sa ble q u est ion n a ir es, w h ich r e p r esen t 55 p er cen t of t h e bu sin ess sch ool’s st u d en t p op u la t ion .

A p r in cip a l com p on en t fa ct or a n a ly sis w it h va r im a x r ot a t ion w a s con d u ct ed on t h e 38 va r ia bles r ela t ed t o ser v ice q u a lit y. T h is a n a ly sis y ield ed a seven fa ct or solu t ion w h ich exp la in ed 56 p er cen t of va r ia n ce.T h e d ecision t o in clu d e a va r ia ble in a fa ct or w a s b a sed on fa ct or loa d in gs gr ea t er t h a n 0.50 a n d a ll fa ct or s w h ose eigen va lu e w a s gr ea t er t h a n on e w er e r et a in ed in t h e fa ct or solu t ion (Ta b a ch n ick a n d F id ell, 1989). To a ss ess r elia -b ilit y of m ea su r es, Cr on -b a ch ’s a lp h a w a s ca lcu la t ed for t h e va r ia bles r et a in ed for ea ch fa ct or a n d coefficien t s gr ea t er t h a n or eq u a l t o 0.70 w er e con sid er ed a cce p t a ble a n d a good in d ica t ion of con st r u ct r elia b ilit y (N u n n a lly, 1978). T h e seven or t h ogon a l fa ct or s w er e t h en u sed in a st e pw ise r e gr ession a n a ly s is. T h e d e p en d en t va r ia ble, m ea s u r ed on a 7-p oin t , Lik er t -t y p e sca le, w a s t h e s t u d en t s ’ over a ll eva lu a t ion of t h e q u a lit y of ser v ices offer ed by t h e bu sin ess sch ool, a n d t h e in d e p en d en t va r ia bles w er e t h e st a n d a r d ized fa ct or scor es cr ea t ed for ea ch in d iv id u a l, cor r es p on d in g t o t h e seven fa ct or s.

Results

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Gasto n Le Blanc and Nha Nguye n

Se arc hing fo r e xc e lle nc e in busine ss e duc atio n: an e xplo rato ry study o f c usto me r impre ssio ns o f se rvic e quality

Inte rnatio nal Jo urnal o f Educ atio nal Manage me nt 1 1 / 2 [1 9 9 7 ] 7 2 –7 9

yea r of t h e bu s in ess p r ogr a m m e. A t ot a l of 30 p er cen t of r es p on d en t s w er e in t h e gen er a l bu sin es s p r ogr a m m e, w h ile 20 p er cen t w er e m a r k et in g m a jor s a n d a n ot h er 16 p er cen t a ccou n t in g m a jor s. As for t h e d e gr ee of s a t is -fa ct ion w it h t h e ser v ices offer ed by t h e bu s in es s sch ool, 71 p er cein t s a id t h ey w er e sa t is -fi ed w it h t h eir p a st exp er ien ces a n d 60 p er cen t in d ica t ed t h a t t h ey d efi n it ely wou ld r ecom m en d t h e bu s in ess sch ool t o ot h er s.

Ta ble I s h ow s t h e r es u lt s of t h e fa ct or a n a ly -sis in t er m s of fa ct or n a m e, t h e va r ia bles loa d in g on ea ch fa ct or a n d t h e va r ia n ce exp la in ed by ea ch fa ct or. T h e r es u lt s of Cr on -b a ch ’s r elia -b ilit y coefficien t a r e a lso s h ow n . T h e seven fa ct or s id en t ifi ed in Ta ble I ca n b e d escr ib ed a s follow s. F a ct or 1 (F 1), con t a ct p er s on n el/ fa cu lt y, con sis t s of it em s w h ich a r e r ela t ed t o t h e p er for m a n ce of p r ofes sor s a n d t h eir a b ilit y t o in sp ir e t r u s t a n d con fi d en ce. F a ct or 2 (F 2), r e p u t a t ion , r ela t es t o t h e bu s i-n es s sch ool’s ca p a cit y t o p os it ioi-n it s elf ii-n t h e m in d s of it s cu s t om er s a n d is clos ely a ss oca t ed w it h t h e im oca ge p r oject ed by t h e or goca n i-za t ion . For it s p a r t , fa ct or 3 (F 3), p h y sica l ev id en ce, is loa d ed w it h va r ia bles w h ich d escr ib e t h e t a n gible cu es a ss ocia t ed w it h t h e bu sin es s s ch ool’s ser v ice d eliver y sy s t em a n d it s fa cilit ies. F a ct or 4 (F 4), con t a ct p er son -n el/ a d m i-n is t r a t io-n , is co-n cer -n ed w it h d im en s ion s w h ich a r e lin k ed t o

m a n a gem en t ’s a b ilit y t o p r ov id e p er s on a l a t t en t ion t o s t u d en t s in a p r ofes sion a l a n d ca r in g m a n n er. F a ct or 5 (F 5), cu r r icu lu m , in volves d im en s ion s r ela t ed t o m a n a gem en t ’s a n d fa cu lt y ’s ca p a cit y t o p la n a n d d eliver ser v ices w h ich m eet s t u d en t n eed s. F a ct or 6 (F 6), r esp on siven es s, is con cer n ed w it h m a n -a gem en t ’s -a b ilit y t o p r ov id e s er v ice in -a p r om p t a n d t im ely m a n n er. F a ct or 7 (F 7), a ccess t o fa cilit ies, d es cr ib es t h e ea s e w it h w h ich s t u d en t s ca n a p p r oa ch t h e ser v ice fa cilit ies w it h ou t h av in g t o w a it for s er v ice.

T h e r es u lt s p r es en t ed in Ta ble I a r e r ela t ed t o t h e d et er m in a n t s of s er v ice q u a lit y a n d su p p or t t h e exis t in g k n ow led ge. In d eed , con -t a c-t p er s on n el (F 1 a n d F 4) is p r op os ed a s a n im p or t a n t q u a lit y in d ica t or by Su r p r en a n t a n d Solom on (1985), a n d Cr os by et a l. (1990). Re p u t a t ion (F 2), for it s p a r t , is r ela t ed clos ely t o t h e in s t it u t ion ’s cor p or a t e im a ge, a n d im a ge is d es cr ib ed a s a n im p or t a n t d et er m i-n a i-n t of p er ceived ser v ice q u a lit y by Gr öi-n r oos (1984) a n d Let h in en a n d Let h in en (1982). Sim ila r ly, t h e t a n gible cu es p r ov id ed by t h e fa cilit ies w h er e s er v ices a r e p r od u ced a n d d eliver ed (F 3) a r e s a id t o b e in d ica t ive of t h e q u a lit y of ser v ice (Bit n er, 1990, 1992; P a r a s u r -a m -a n et -a l., 1991). Res p on s iven es s (F 6) is -a lso id en t ifi ed by P a r a su r a m a n et a l. a s a q u a lit y in d ica t or. Res u lt s a ls o id en t ify cu r r icu lu m d evelop m en t (F 5) a n d a ccess t o fa cilit ies (F 7)

a s p ot en t ia l d et er m in a n t s of ser v ice q u a lit y in a bu sin ess s ch ool set t in g.

Ta ble II p r esen t s t h e r esu lt s of r e gr ession a n a ly sis a n d sh ow s, in or d er of im p or t a n ce, t h e fa ct or s w h ich exp la in t h e bu s in ess sch ool’s ser v ice q u a lit y, b a sed on st a n d a r d -ized b et a coefficien t s. Resu lt s in d ica t e t h a t ser v ice q u a lit y is d er ived m a in ly fr om r e p u -t a -t ion (F 2), a fa c-t or w h ich is -t ied clos ely -t o m a n a gem en t ’s ca p a cit y t o fost er a n or ga n iza -t ion a l clim a -t e d ir ec-t ed a -t ser v in g -t h e n eed s of it s cu st om er s a n d t o t h e im a ge of t h e bu sin ess sch ool. F a cu lt y a n d a d m in ist r a t ive p er son n el (F 4 a n d F 1), t h r ou gh t h eir a b ilit y t o in sp ir e t r u s t a n d con fi d en ce a n d p r ov id e p er son a l a t t en t ion t o st u d en t s in a p r ofess ion a l a n d ca r in g m a n n er, a ls o in fl u en ce q u a lit y. Ot h er fa ct or s su ch a s cu r r icu lu m (F 5), r es p on sive-n ess (F 6), p h y s ica l ev id esive-n ce (F 3) a sive-n d a ccess t o fa cilit ies (F 7) a r e a lso sign ifi ca n t q u a lit y fa ct or s.

Discussion and conclusion

T h e con cer n for excellen ce in bu sin ess ed u ca -t ion a n d -t h e la ck of em p ir ica l r esea r ch on -t h e cu es t h a t sign a l q u a lit y t o st u d en t s w er e t h e b a ses for t h is exp lor a t or y s t u dy on ser v ice q u a lit y. Alt h ou gh t h e SE RVQUAL s ca le d evel-op ed by P a r a su r a m a n et a l. (1988, 1991) h a s b een t h e focu s of con sid er a ble a t t en t ion in r ecen t ser v ice q u a lit y r esea r ch , t h e lit er a t u r e r ev iew r evea led a lt er n a t ive con ce p t u a liza -t ion s of -t h e ser v ice q u a li-t y con s-t r u c-t a n d a ck n ow led ged t h e n eed t o id en t ify t h e d et er -m in a n t s of ser v ice q u a lit y in sp ecifi c ser v ice or ga n iza t ion s in or d er t o d evelop q u a lit y im p r ovem en t p r ogr a m m es b et t er a d a p t ed t o t h e exp ect a t ion s of t h eir cu st om er s. To t h a t en d , t h e p r esen t st u dy ca p t u r ed st u d en t eva l-u a t ion s of t h e q l-u a lit y of t h e ed l-u ca t ion a l exp e-r ien ce w it h a 38-it em q u est ion n a ie-r e d esign ed t o fi t t h e sp ecifi c n a t u r e of t h e bu sin ess sch ool u n d er in vest iga t ion . T h e st u dy con t r ibu t ed t o a b et t er u n d er st a n d in g of t h e ser v ice q u a lit y con st r u ct in bu sin es s ed u ca t ion . P er ce p t ion s of q u a lit y w er e m ea su r ed on a 7-p oin t sca le t h a t va r ied fr om “M u ch wor se t h a n exp ect ed ” t o “Mu ch b et t er t h a n exp ect ed ”. Sin ce exp ect a ect ion s va r y over ect im e, ect h is a gr ees w iect h Ca r m a n ’s (1990) p r op os it ion t h a t b ot h exp ect a -t ion s a n d p er for m a n ce m ea s u r es sh ou ld b e collect ed d ir ect ly in t er m s of t h e p er ce p t ion -exp ect a t ion d iffer en ce d u r in g t h e s a m e a d m in ist r a t ion of t h e q u est ion n a ir e. As su ch , t h e st u dy id en t ifi ed seven fa ct or s w h ich h ave a n im p a ct on q u a lit y eva lu a t ion s a n d w h ich h ave im p lica t ion s for con t r ollin g a n d a ch iev -in g excellen ce -in bu s-in es s ed u ca t ion .

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a n d r e p u t a t ion ; i.e. t h e bu sin es s sch ool’s ca p a cit y t o p osit ion it self in t h e m in d s of st u d en t s a s b ein g in n ova t ive, u p t o d a t e, in volved w it h t h e bu sin es s com m u n it y a n d h av in g t h e st u d en t s’ n eed s a t h ea r t . Sin ce r e p u t a t ion is bu ilt t h r ou gh t h e cr ed ible a ct ion s of ea ch m em b er of t h e or ga n iza t ion (H er b ig et a l., 1994), m a n a gem en t wor k in g in close h a r m on y w it h p er son n el a n d fa cu lt y sh ou ld set q u a lit y st a n d a r d s for a ll com p o-n eo-n t s of t h e ser v ice d eliver y sy s t em t o eo-n su r e t h a t st u d en t exp ect a t ion s a r e m et . Given t h e im p or t a n ce of exp ect a t ion s in t h e est a blish m en t of q u a lit y st a n d a r d s, in t er n a l m a r k et -in g r esea r ch sh ou ld b e u n d er t a k en t o en su r e t h a t m a n a gem en t a n d fa cu lt y exp ect a t ion s of Table I

Se ve n se rvic e quality fac to rs ide ntifie d by princ ipal c o mpo ne nts fac to r analysis

Percentage Cronbach’s Factor of variance reliability

Factor name Variables loading explained coefficient

F1 Contact personnel:

faculty Appearanc e of professors 0 .7 1 2 9 .4 0 .8 5

Professors are friendly and c ourteous 0 .6 9 Professors researc h produc tivity 0 .5 9 Communic ation skills: c ourses are well taught 0 .5 8 Ac ademic c redentials of professors 0 .5 8 Professors are innovative and agents of c hange 0 .5 7

F2 Reputation Business sc hool is innovative 0 .7 5 6 .7 0 .8 0

Organizational c ulture, beliefs and values 0 .7 2 Business sc hool’ s involvement in c ommunity 0 .6 8 Degree to whic h c urric ulum is up to date 0 .6 4 Administration has students’ best interest at heart 0 .6 0

F3 Physical evidence Layout of c lassrooms 0 .7 4 5 .4 0 .8 0

Lighting in c lassrooms 0 .6 9 Appearanc e of building and grounds 0 .6 6 Overall c leanliness 0 .6 4 Degree to whic h c lassrooms and study rooms are

c omfortable 0 .6 1

Déc or and atmosphere 0 .5 9

F4 Contact personnel:

administration Availability of personnel 0 .7 5 4 .2 0 .8 5

Friendly and c ourteous personnel 0 .7 5 Capac ity to solve problems when they arise 0 .6 8 Personnel has a good knowledge of rules and

proc edures 0 .6 6

Appearanc e of personnel 0 .6 1

F5 Curriculum Orientation of programmes and c ourse c ontent 0 .6 8 3 .7 0 .7 6

Number of c ourses offered 0 .6 3 Degree to whic h objec tives of programmes are

explained to students 0 .6 2

F6 Responsiveness Students are informed promptly of c hanges 0 .7 7 3 .4 0 .7 1

Registration is timely and error-free 0 .5 7 Rec ords are kept ac c urately 0 .5 3

F7 Access to facilities Available of parking 0 .7 0 3 .1 0 .5 5

Ac c ess to c omputer fac ilities 0 .6 6 Ac c ess to study rooms 0 .5 5

Table II

Re gre ssio n re sults base d o n fac to r sc o re s

Variables Betas Significance

Reputation 0 .3 7 p < 0 .0 0 1

Contact personnel: administration (F4) 0 .3 1 p < 0 .0 0 1

Contact personnel: faculty (F1) 0 .3 0 p < 0 .0 0 1

Curriculum (F5) 0 .2 9 p < 0 .0 0 1

Responsiveness (F6) 0 .2 2 p < 0 .0 0 1

Physical evidence (F3) 0 .1 5 p < 0 .0 0 1

Access to facilities (F6) 0 .0 7 p < 0 .0 5

Notes:

Dependent variable: respondent’ s overall evaluation of business sc hool’ s quality Independent variables: seven orthogonal fac tors representing the c omponents of per-c eived quality

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ser v ice a r e clos ely t ied t o s t u d en t exp ect a -t ion s (Ca n n on a n d Sh e-t h , 1994). E xp ec-t a -t ion s sh ou ld b e exa m in ed a n d a n a ly sed s o a s t o s et st a n d a r d s fr om t h e cu s t om er s’ p er s p ect ive (Sw a r t z a n d Br ow n , 1989). Sim ila r ly, t h e p r oces s by w h ich s t u d en t s a cq u ir e t h eir ed u -ca t ion sh ou ld b e im p r oved con t in u ou s ly (Sey m ou r, 1992). For exa m p le, t h e fos t er in g of lia is on s w it h t h e bu s in ess com m u n it y a n d t h e offer in g of co-op er a t ive bu s in ess

p r ogr a m m es t h a t em p h a size h a n d s-on exp er i-en ce s h ou ld h elp bu ild a s t r on g r e p u t a t ion for t h e or ga n iza t ion . Ma k in g a favou r a ble im p r es sion on st u d en t s a n d on va r iou s s t a k e-h old er gr ou p s su ce-h a s p r os p ect ive em p loyer s, gover n m en t a n d r es ea r ch a gen cies, a lu m n i, in d iv id u a ls a n d or ga n iza t ion s w h ich d on a t e fu n d s t o t h e u n iver sit y s h ou ld b e a k ey ob jec-t ive of m a n a gem en jec-t (Allen a n d Dav is, 1991; Ca n n on a n d Sh et h , 1994). On ce a st r on g r e p u -t a -t ion h a s b een bu il-t , m a n a gem en -t s h ou ld en s u r e t h a t ever y st e p is t a k en t o p r om ot e a n d m a in t a in it s st a n d in g (Bit n er et a l., 1990).

Res u lt s of t h e s t u dy a lso r evea l t h a t fa cu lt y a n d a d m in is t r a t ive p er s on n el h ave a d ir ect b ea r in g on p er ce p t ion s of q u a lit y. For a d m in -ist r a t ive p er s on n el, m a n a gem en t s h ou ld s t a r t by set t in g q u a lit y st a n d a r d s for p r ocess -r ela t ed va -r ia bles s u ch a s -r e gist -r a t ion , r ecor d s, a n d r u les a n d p r oced u r es w h ich a r e ea s ier t o con t r ol t h a n t h e a ca d em ic d eliver y of s er v ice (Coa t e, 1990). As for fa cu lt y, s in ce a ca d em ics a r e p er ceived a s b ein g in d iv id u a list ic a n d loya l t o t h eir a ca d em ic u n it s (Win -t er s, 1991), m a n a gem en -t s h ou ld con v in ce fa cu lt y t h a t con cer n for q u a lit y is p a r t of t h eir job (Sh et t y, 1988) a n d a ll con t a ct p er son -n el s h ou ld b e i-n volved w h e-n s et t i-n g goa ls a -n d q u a lit y s t a n d a r d s for t h e in s t it u t ion . F a cu lt y s h ou ld con t in u ou s ly follow t r a in in g sess ion s a n d s em in a r s on effect ive t ea ch in g m et h od s a n d s h ou ld b e en cou r a ged t o exh ib it exem -p la r y a t t it u d es a n d b eh av iou r w it h s t u d en t s s o t h a t s t u d en t exp er ien ces w it h ser v ice a r e t o t h eir s a t is fa ct ion . Sim ila r ly, s in ce s t u d en t cou r s e eva lu a t ion s m u st b e a n in t e gr a l p a r t of q u a lit y im p r ovem en t p r ogr a m m es (Br igh t -m a n et a l., 1993), eva lu a t ion s n eed t o a d d r es s n ot on ly t h e p er for m a n ce of fa cu lt y, bu t a lso t h e va r iou s a sp ect s s u r r ou n d in g t h e ed u ca -t ion a l exp er ien ce, s u ch a s ob jec-t ives of -t h e bu sin es s p r ogr a m m e, p h y sica l a n d com p u t er fa cilit ies, a n d t h e m u lt it u d e of s u p p or t a n d a dv isor y s er v ices offer ed by t h e u n iver s it y. M or eover, m a n a gem en t wor k in g clos ely w it h fa cu lt y s h ou ld p r e p a r e b r och u r es w h ich ou t -lin e t h e q u a lit y s t a n d a r d s ea ch m em b er of t h e or ga n iza t ion m u s t a d h er e t o in t h e d eliver y of s er v ice a n d p r om ot e t h ese s t a n d a r d s t o va r i-ou s st a k eh old er gr i-ou p s.

Resu lts a lso r evea l cu r r icu lu m , ph ysica l eviden ce, r espon siven ess a n d a ccess to

fa cilities a s a ddition a l fa ctor s wh ich expla in ser vice qu a lity. Th ese fa ctor s a r e r ela ted dir ectly to th e pr ocess of ser vice deliver y, a r e h igh in exper ien ce qu a lities (N elson , 1974) a n d r ein for ce th e belief th a t qu a lity con tr ol m ea -su r es m u st be a pplied a lon g th e ser vice deliv-er y system . T h e or ien ta tion of pr ogr a m m es a n d cou r se con ten ts h ave a dir ect bea r in g on th e bu sin ess sch ool’s ca pa city to m eet th e n eeds of pr ospective em ployer s a n d m u st be m a n a ged ca r efu lly to bu ild r epu ta tion . Sim i-la r ly, th e in stitu tion m u st be r espon sive a n d en deavou r to pr ovide pr om pt r elia ble ser vice, sin ce w a itin g for ser vice ca n h ave n e ga tive effects on ser vice eva lu a tion s (Taylor, 1994) a n d qu a lity, especia lly in situ a tion s wh er e th e ser vice pr ovider is per ceived a s h avin g con tr ol over th e w a it, a s in th e ca se of bu sin ess edu ca -tion . Assu r in g th a t fa cilities a r e a ccessible to stu den ts a n d pr ovidin g stu den ts w ith n ew a n d in n ova tive ser vices su ch a s a u tom a ted tele-ph on e r e gistr a tion a r e exa m ples of h ow bu si-n ess sch ools ca si-n im pr ove qu a lity osi-n pr ocess-r ela ted va ocess-r ia bles. As foocess-r th e elem en ts a ssoci-a ted w ith ph ysicssoci-a l eviden ce, m ssoci-a n ssoci-a gem en t m u st r ea lize th a t a tm osph er ics h ave a dir ect bea r in g on cu stom er expecta tion s (Ba k er, 1987) a n d give a tten tion to deta il. At th is sta ge, fa cu lty a n d stu den ts sh ou ld h ave a say sin ce th ey a r e, for th e m ost pa r t, exper ien cin g th e ser vice in th e cla ssr oom . Hen ce, a tten tion m u st be given to deta ils to en su r e th a t th e ph ysica l en vir on m en t is com for ta ble, a de-qu a te for th e deliver y of ser vice a n d th a t it sen ds ou t a ppr opr ia te cu es to stu den ts. In deed, th e ph ysica l en vir on m en t ca n becom e a su r r o-ga te in dica tor of th e in stitu tion ’s ca pa city to offer ser vice in a n or ga n ized a n d pr ofession a l m a n n er (Bitn er, 1992).

As for t h e lim it a t ion s of t h is st u dy, t h e r esu lt s r e p r esen t st u d en t s’ p er ce p t ion s of ser v ice q u a lit y in a sm a ll bu sin es s sch ool, a n d p er ce p t ion s of ser v ice cou ld ea sily va r y a ccor d in g t o t h e size, h ist or y a n d s t a t u r e of t h e bu s in ess sch ool in q u est ion .

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p er ce p t ion s for d iffer en t se gm en t s s h ou ld h elp m a n a gem en t in t h e for m u la t ion of st r a t e gies w h ich p r om is e t o m eet t h e sp ecifi c exp ect a t ion s of t h es e va r iou s gr ou p s. T h e low r elia b ilit y of t h e a cces s t o fa cilit ies fa ct or is a n ot h er lim it a t ion . A m or e r elia ble m ea s u r e m igh t a ccen t u a t e t h e r ela t ion sh ip b et w een t h is fa ct or a n d t h e over a ll ju d gem en t of ser -v ice q u a lit y. T h e con -ven ien ce sa m p le of r esp on d en t s m u st a ls o b e a ck n ow led ged . At t h is s t a ge, s om e m igh t a r gu e t h a t st u d en t s a r e n ot t h e logica l gr ou p t o s u r vey w it h r e ga r d t o w h a t excellen t bu s in ess sch ools sh ou ld b e offer in g, s in ce t h ey a r e in t h e p r ocess of a cq u ir in g t h eir ed u ca t ion a n d , for t h e m os t p a r t , m ay h ave lit t le k n ow led ge of w h a t sh ou ld b e exp ect ed of u n iver s it ies a lon g k ey q u a lit y d im en s ion s. Con s eq u en t ly, in fu t u r e s t u d ies, t h e over a ll p er for m a n ce of bu s in es s s ch ools s h ou ld b e a n a ly sed fr om t h e p er s p ect ive of t h e va r iou s s t a k eh old er gr ou p s w h ich in t er a ct w it h t h e in s t it u t ion . In d eed , a b et t er u n d er s t a n d in g of h ow va r iou s s t a k eh old er gr ou p s, su ceh a s t eh e bu s in ess com m u -n it y, a lu m -n i, gover -n m e-n t a ge-n cies, a lo-n g w it h t h e com m u n it y, for m q u a lit y

ju d gem en t s is w a r r a n t ed fr om t h e TQM p er -sp ect ive. Ad d it ion a l r es ea r ch is n eed ed on t h e in t er r ela t ion sh ip t h a t exis t s b et w een q u a lit y a n d r e p u t a t ion . Alt h ou gh t h ese t wo

con s t r u ct s a r e r ela t ed , r es ea r ch sh ou ld a d d r es s t h e dy n a m ics of t h e r ela t ion sh ip. For exa m p le, a r e fa ct or s su ch a s con t a ct p er s on -n el, cu r r icu lu m , r es p o-n s ive-n es s a -n d p h y sica l ev id en ce d et er m in a n t s of s er v ice q u a lit y or of r e p u t a t ion ? Sim ila r ly, a b et t er com p r eh en -sion of h ow r e p u t a t ion im p a ct s st u d en t s w h en ch oosin g a bu s in ess sch ool, a n d t h e im p or t a n ce given t o t h is cr it er ion by p r os p ec-t ive em p loyer s, sh ou ld con cer n m a n a gem en ec-t .

T h e a ch ievem en t of excellen ce in bu s in ess ed u ca t ion a n d t h e n eed t o con t r ol t h e q u a lit y of s er v ices offer ed t o st u d en t s for m ed t h e b a s is of t h is st u dy on t h e cu es w h ich s ign a l q u a lit y. T h e r es ea r ch sh ow s t h a t r e p u t a t ion , m a n a gem en t , fa cu lt y a n d p r ocess -r ela t ed va r ia bles a r e im p or t a n t t o s t u d en t s in t h eir ju d gem en t of q u a lit y. T h e r es u lt s a r e en cou r -a gin g -a n d w ill le-a d u s t o p u r s u e ou r q u es t for excellen ce in ed u ca t ion .

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