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Effect of Customer Service Modernization on Customer Satisfaction in Shell Petrol Stations in Oman

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I understand that the British University in Dubai may make a digital copy available in an institutional repository. The study investigates the effect of customer service modernization on customer satisfaction at Shell service stations in Oman to examine the effect of service visibility, service reliability, service performance and effectiveness, and service customization on customer satisfaction.

Introduction

  • Study Overview
    • Market Competition in Retail Petrol Stations
    • Types of Petrol Station Customers
    • Petrol Stations and Quality Service Delivery
    • The Characteristics of Gas Stations and Market Customer Service
  • Research Problem Statement
  • Aim and Objectives
    • Study Aim
    • Research Objectives
  • Research Hypotheses
    • Hypothesis Development
    • Hypothesis Testing
  • Conceptual Framework
  • Research Importance and Justification
    • Research Importance
    • Study Justification
  • Scope of Work
  • Study Limitations
  • Research Structure

Assess how service reliability has a major impact on customer satisfaction at Shell service stations in Oman. Finally, the fourth hypothesis (H4) states that modernized customer service has a positive significant impact on customer satisfaction.

Table 0-1: Null and alternative hypotheses for this dissertation
Table 0-1: Null and alternative hypotheses for this dissertation

Literature Review

  • Chapter Outline
  • Customer Value and Customer Satisfaction
  • Service Delivery and New Technologies Usage
    • Industry 4.0 and Costumer Behaviour
    • Customer Behaviour and Internet of Things (IoT)
  • Factors Influencing Customer Satisfaction
    • Quality in Service Sector
    • Brand Loyalty in Service Sector
    • Trust in Service Sector
  • Factors Influencing Customer Service
    • Quality of Service in Service Sector
    • Customer Feedback in Service Sector
    • Speed and Accuracy in Service Sector
  • Chapter Summary and Literature Gap

The study supports the claim that customer service modernization continues to have a positive impact on customer satisfaction. Effective communication builds trust, loyalty, and satisfaction, which are essential to any successful customer service relationship (Parajuli et al. 2020).

Research Methodology

  • Chapter Outline
  • Research Design
  • Population of the Study
  • Sample and Sampling Technique
  • Data Collection Instrument
    • Collected Data Validity
  • Data Analysis Techniques
    • Regression Analysis
    • Hypotheses Testing
  • Theoretical Framework
    • SERVQUAL Model
    • SEVQUAL in the Fuel Sector
  • Chapter Summary

Respondents were made aware of the intended purpose of this study, in particular the importance of collecting primary data that can be used for analysis and support conclusions regarding the customer service of Shell petrol stations in Oman. Compared to other research procedures, such as the interview, the questionnaire provides more structure, which can increase the efficiency and accuracy of the research. The researcher used this measurement to evaluate the reliability of the constructed questionnaire applicable for data collection regarding the concepts of the research problem under investigation.

The research hypotheses are tested using the multilinear regression model, which generates the summary model, analysis of variance (ANOVA) and regression coefficients in SPSS to evaluate the statistical significance of the independent variables and their impact on the dependent variable - customer satisfaction. The summary model provides an overview of the model, including the coefficient of determination (R²), the F-test for overall significance, and the degrees of freedom for the model and error terms. The regression coefficients provide the estimated values ​​of the independent variables, their t-values, p-values ​​and standard errors, which are useful for testing the null hypotheses.

The ANOVA table shows the source of variation, degrees of freedom (df), F ratio, mean squares, error terms, and p-value, which help determine the overall significance of the regression model. Adequate understanding of approaches to collecting data from customers using the Shell gas station provided the context for solving the research problem. Determining the methods and materials to be used in data collection is essential; it paves the way to accomplish the stated purpose of the study and lays the groundwork for obtaining and analyzing the various responses used to reject or accept the hypotheses.

Figure 0-3 Research framework for this dissertation
Figure 0-3 Research framework for this dissertation

Research Result and Discussion

Chapter Outline

  • Data Cleaning

Descriptive Data

  • Sociodemographic
  • Questionnaire Responses

In conjunction with Table 4-3, an analysis of other selected goodness-of-fit measures indicates reliable model fit. The result shows that all the loadings of the estimated model were significant with more than 0.7 weights except for Q2 of service effectiveness and efficiency. The data on the diagonal (in bold) are the square root of the AVE of the construct while the other values ​​are the correlations with the other constructs.

Based on the illustration in Table 4-5, a large proportion of respondents (66.8%) stated that they had visited a shell station on a weekly basis. The respondents (3.8%) who last visited shell station in the past year were less than everyone else. The number of respondents (18.8%) who visited a shell station last month was higher than the percentage of respondents (8.1%) who last visited a shell station in the last 3 months.

The bar chart shown in Figure 4-4 below shows that the majority of respondents (88) visited stations for location and proximity rather than en route (24%). The third most common reason for visiting a station in the shell was the services provided by the station. In fourth place, available facilities and proximity to work or office are the reasons for visiting virtual stations.

Table 0-3: loadings, reliability and congruent validity
Table 0-3: loadings, reliability and congruent validity

Research Result

  • Multiple Linear Regression Analysis

The results indicate that this data does not follow the normal distribution for service visibility, service reliability, effectiveness and efficiency of service adjustments, and customer satisfaction. R-squared (coefficient of determination) showed that nearly 58.4% variation was observed in customer satisfaction due to service visibility, service reliability, service effectiveness and efficiency, and service customization. In the ANOVA results shown in Table 4-14, a significant value of 0.000 determined our regression model to be statistically significant, indicating that service visibility, service reliability, service effectiveness and efficiency, and the adjustment of the service predicted customer satisfaction.

This positive effect of service visibility on customer satisfaction concluded that the first alternative hypothesis (H1) that service visibility has a significant effect on customer satisfaction was accepted. This concluded that the second alternative hypothesis (H2) that service reliability has a significant effect on customer satisfaction was accepted. Similarly, a one-unit increase in service effectiveness and efficiency predicted 0.198 units in customer satisfaction.

Customer satisfaction positively predicted service effectiveness and efficiency and it was found statistically significant (β = 0.16, t = 3.00, p < 0.05). This concluded that the third alternative hypothesis (H3) was accepted that service effectiveness and efficiency have significant effect on customer satisfaction. Thus, the research findings suggest that service visibility, service reliability, service effectiveness and efficiency, and service customization have a significant positive impact on customer satisfaction at Shell service stations in Oman.

Figure 0-5: Boxplot without outliers  4.3.1.2 Test of Normality
Figure 0-5: Boxplot without outliers 4.3.1.2 Test of Normality

Analysis of Findings

  • Service Visibility and Customer Satisfaction
  • Service Reliability and Customer Satisfaction
  • Service Effectivity and Efficiency and Customer Satisfaction
  • Modernized Customer Service and Customer Satisfaction

Customer satisfaction is also found to depend on how companies maintain service quality to have a direct effect on customer loyalty and satisfaction (Mohd et al. 2019). In addition, the effect of service visibility and customer satisfaction within the context of service stations could be explained and thoroughly interpreted using the SERVQUAL model knowledge. Gas stations in Oman use technology to promote aspects of service visibility in achieving customer satisfaction.

The correlation results of this study revealed that service reliability has a positive association with customer satisfaction (r = .779, p < .01). Another work by China and Nashon (2021) also reports the finding that service reliability and customer satisfaction have direct significant impact. Customer satisfaction is favorably influenced by reliability and ease of use (Gunawardana & Perera 2015).

In the same way, Iberahim et al. 2016) point out that reliability, punctuality and consistency are the essential bases for achieving a significantly high level of customer satisfaction. Our results are not consistent with the assertion about service quality having a significant direct impact on the level of customer satisfaction within the service sector, although research has found that high service quality expectations can decrease customer satisfaction. (Chang et al. 2017). Service innovation affects the magnitude of service quality, which further affects customer satisfaction and customer loyalty.

Conclusion and Future Recommendations

Conclusion

Analysis of these service aspects chosen for this thesis indicates that service customization in petrol stations in Oman determines service effectiveness in terms of increased customer satisfaction. The obtained empirical findings support alternative hypotheses that service visibility and customer satisfaction have a positive correlation, modernized customer service and customer satisfaction have a positive effect, and reliability and customer satisfaction have a positive significant effect. The scope of the present thesis has been summarized based on the results of the research interest and correlation analysis.

A company operating in the energy services sector must take advantage of modernizing its customer service processes to retain and attract customers while navigating the competition in the marketplace. The positive significant effect of service reliability, service visibility, service effectiveness and efficiency as well as service customization and a strong positive relationship on customer satisfaction mean that the current study has achieved its main objective of determining the impact of service quality and service delivery on customer satisfaction. Furthermore, the results of this thesis pave the way for future research into the effect and connection between the investigated variables and customer satisfaction.

Research Recommendations

Over time, the concept of customer satisfaction, which is apparently due to service quality and service delivery, attributed to service reliability and service visibility, evolves. A rolling stone gathers no moss: the effect of customers' perceived business model innovativeness on co-creation behavior and customer satisfaction in the service sector. Impact of Service Quality on Customer Loyalty and Customer Satisfaction in Islamic Banks in the Sultanate of Oman.

The Impact of Self-Service Technology Quality on Customer Satisfaction: A Case of Retail Banks in Western Province in Sri Lanka. Study the effects of corporate image, service quality and price perceptions on customer satisfaction and purchase loyalty (a Pertamina survey in South Sulawesi province). The Effect of Service Quality and Customer Satisfaction on Purchase Intention: A Case Study in Indonesia.

The effect of facilities and service quality on customer satisfaction of gas station in Setu Bekasi, West Java. The Relationships Between Experiential Marketing, Service Innovation, and Customer Satisfaction - A Case Study of Tourism Factories in Taiwan. Service innovation, service delivery and customer satisfaction and loyalty in Ghana's banking sector.

RESEARCH QUESTIONNAIRE FOR HOUSEHOLD MEMBER

Which of the following reasons best explains why you specifically chose to visit the Shell site. Overall, during your visits to a Shell station, how satisfied were you with the overall service quality and delivery based on the factors below. A conceptual model of service quality and its implications for future research.” Magazine for marketing, vol.

Based on your experiences and expectations, please indicate your opinion on the following elements that reflect the visible dimensions of service quality. Please indicate to what extent you agree or disagree with the following statements about the reliability of service based on your experiences and expectations. Please indicate your level of agreement on whether the following attributes and qualities of service are evident at the Shell business (adapted from: Purohit; Purohit, Santanu et al.; . Littlechild).

In terms of efficiency and effectiveness, service delivery at a station or point of sale is generally of a high standard. Based on your experience and expectations, how likely are you to switch Shell products and services to another gas station from another company. On a scale of 1 to 5 (1 being the least important and least satisfactory, and 5 being the most important and most satisfactory), answer the following questions, indicating the level of importance to you and the subsequent level of satisfaction from which you derive the service and quality of the branch.

CONFIDENTIALITY UNDERTAKING

The Servqual 22-Scale Items (Source: Kaynar et al. 2020)

The Work Plan

Gambar

Table 0-1: Null and alternative hypotheses for this dissertation
Figure 0-1: Dissertation conceptual framework for this study
Figure 0-2: Research execution flowchart
Figure 0-3 Research framework for this dissertation
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