The Study of Chain Department Stores
Service Quality in Taipei
Chen, Kuang-Jung, Professor, Department of Business Administration,
Chihlee Institute of Technology, Taiwan
Hsu, Ya-Ling, Graduate Student, Graduate Institute of International Business Management,
Ching Yun University
Chen, Mei-Liang, Lecturer, General Education Center, Hsin Sheng College of
Medical Care and Management
ABSTRACT
According to the related statistics provided by the Department of Statistics, Ministry of Economic
Affairs, the service quality ranked the first among the top three Business Strategies. Based on Tai’s
research on “The influencing factors in service quality performances at department stores”, and on the
study results by various scholars, this paper is aimed to understand customers satisfaction of the service
quality at department stores, and their types of consumption. The corresponding recommendations are
proposed accordingly. The top three department stores in 2006, Shin Kong Mitsukoshi, Pacific and Far
Eastern are employed as the objects of study.
Keywords: Department Store, Service Quality, Retail Business, Market Segmentation
INTRODUCTION
Master of Management Peter F. Drucker once said: “New economy” is service economy and
service is competition superiority. When a consumer purchases at the department store, in addition to
emphasizing on product quality, intangible service quality is also one of the major consideration factors in
the purchase of a product by a consumer; therefore, it can be seen that the service quality provided by a
department store is a very important key to the consumer.
Currently, there are 26 department stores in metropolitan Taipei area with world’s number one
density; meanwhile, the population density and consumptive power of the metropolitan Taipei area is
number one in Taiwan. To be competitive in the department store business, the setup of superior service
quality and image is very important to the department stores. Therefore, in this study, the top three
department stores in the metropolitan Taipei area are selected, namely, Shin Kong Mitsukoshi, Pacific
and Far Eastern, as the research targets.
Based on the above mentioned research causes, the main objectives of this study are as in the
followings:
1. To investigate the consumptive type from the consumers on the department stores.
2. To investigate the satisfaction from the consumers on the service quality of the department stores.
3. Propose appropriate suggestions to the department stores in the metropolitan Taipei area according to
the research results.
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243
LITERATURE REVIEW
1. The definition of department store
In “Standard Classification of Occupations of the Republic of China”, retail business covers a scope
such as, department store, convenience market and supermarket, etc. General retail business can be
divided into shopping center, discount store, whole sale store, chain store, post-mail store, convenience
store, special store and department store, etc. Among them, department store business can be further
divided into general store business, grocery store business and department store business. The definition
related to department store is summarized as in the following table:
Year
1991
1995
2003
Table 1 The definition of department store
Association
Definition
Directorate-General of
For any department store that sells many merchandises in the same
Budget, Accounting and
site in retail way.
Statistics, Executive Yuan
In the product line length aspect, department store is a retail form
The economic research
of the longest product line and the most diversified product
office of Taipei Bank
combinations.
It is a business site for the retail sale of diversified merchandise
Department of Commerce,
and is operated and managed by a legal organization or company;
Ministry of Economic
the cashier method taken is generally a uniform cashier way and
Affairs
invoice of the department store is issued for all the trading.
Data source: Summarized by this study.
2. Definition of franchise business
Year
1959
2000
2004
Table 2 The definition of franchise business
Definition
It is a continuous contractual relationship existed between the
headquarters and the franchisee. The headquarters gives the
International Franchise franchisee a certificate and privilege so that the franchisee is allowed
Association
to operate the business; moreover, the headquarters also provides
assistances such as: personal training, purchase, organizational
structure and business operation and management skills.
Any business that is operated in the form of franchise store and owns
Taiwan Franchise
more than 7 (included) independent stores (that is, the store run by
Association
the headquarters) and has the annual revenue in the most recent year
of more than 70 millions NT dollars.
It has more than two retail stores; each store uses the consistent store
Department of
name, signboard and decoration and sells the same series of product
Commerce, Ministry of
under the same enterprise image; furthermore, it is managed and the
Economic Affairs
purchase is done by a central unit.
Data source: Summarized by this study.
Association
3. Related definitions of service quality
The definition on service as given by American Marketing Association is: “It is the activity, benefit
or satisfaction as provided by direct sale or as accompanied by the merchandise sale”. The related
definitions of service quality are summarized as in the following table:
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Year
1979
1981
1984
1991
1994
2001
2005
Table 3 The related definitions of service quality
Definition
Service quality means a mutual comparison result between the expected
Crosby
service of the customer and the real perception.
Service quality is a continuous evaluation from the consumer on something
Oliver
and the satisfaction level is a temporary response from the consumer on
something.
Good or bad service quality is the judgment made by consumer subjectively
Garvin
on the service the consumer perceived and it is not an objective evaluation.
Lethinen &
Service quality is process quality. It is the perceptional evaluation from the
Lethinen
consumer during the service process.
The result of service is the product generated by service and it is a
Rust & Oliver
judgment made by the consumer after the reception of the service.
Service quality is an evaluation based on multiple aspects and the
Brady & Cronin
evaluation is associated finally to achieve the recognition of quality.
During the non-ownership behavior, achievement and result exchange
Solomon, Marshall
between the manufacturer and the user, service quality is customer’s quality
& Stuart
perception on the process during the exchange process.
Data source: Summarized by this study
Scholar
To summarize the above, the service quality definition of this study is: “Service quality is subject
perception and expected result of the customer and its evaluation is, the closer it is to the customer’s
expectation, the higher the service quality”.
4. The aspect and factor of service quality of the department store
Shang-Yi Tai (1993) had divided the service quality performance in the department store into six
factors: merchandise factor, facility factor, operation factor, personnel factor, system factor, activity form
factor.
5. The related definitions of market segmentation
The concept of market segmentation was first proposed by Smith (1956) with a purpose to
recognize customer’s need so as to fulfill the marketing concept and adjust product and marketing method
by aiming at customer’s need. The related definitions regarding market segmentation are summarized as
in the followings:
Year
1956
1981
1990
1996
1998
Table 4 The related definitions of market segmentation
Definition
The objective of market segmentation is to develop the demand aspect of the
Smith
market and to make reasonable and real adjustment on product and market so
as to let them fit the need of consumer and user better.
Market segmentation is to segment market into different consumptive groups
Alfred
so that each group can become special product or marketing combination.
Market segmentation is a process to segment the market into several groups
Peter & Olson
that have similar characteristics for the development of products by the
enterprise.
Market segmentation is based on the fact that the market is formed by
McCarthy
consumers of different consumptive characteristics and demands.
Market segmentation is, based on the different demands from the consumers
on the product or marketing combination, to divide the market into several
Kotler
segmentations that can be verified and to describe the profile of respective
market segmentation.
Scholar
The Journal of Human Resource and Adult Learning Vol. 3, Num. 2, December 2007
245
2000
Chun-Yin Huang
2006
Peng-Yu Chen
Market segmentation is a process to, based on certainvariables, divide a
highly heterogeneous big market into several more similar and smaller
markets.
To divide an entire market, based on consumer characteristics, demand and
recognition, into several segmented sub-markets and to design different
market combinations to satisfy the demand of each segmented consumer.
Data source: Summarized by this study
To summarize the above, the definition of market segmentation in this study is: “It is a process to
divide the market into several parts according to different demands and to satisfy the demand according to
different segmentations”.
THE ORIGIN AND DEVELOPMENT OF DEPARTMENT STORE
1. The origin of department store
Department store originated from Paris of France in the middle of 19 century and the emergence
background is mainly due to manufacturing way change after industrial revolution; the manufacturing
way change results in massive production and circulation of merchandise, which in turn results in
consumptive form change of human beings. Department store in US also originated at the end of 19
century. After 1920, major department stores in US started to shift to suburb and are set up at the large
shopping center in the suburb; therefore, the commercial function of the central commercial area starts to
decay, and nowadays, the retail revenue at the suburban area is much higher than that at the central
commercial area.
2. The development history of department stores in Taiwan
Table 5 The development history of the department store business in Taiwan
The development history of the department store business in Taiwan
The first department store in Taiwan named Hua-Yang was founded. The internal products
1949
are not divided into different departments, only textile and clothes are exhibited for sale.
At this time, department stores attract the attention from enterprise and business group and
many new ones emerged, for example, Far Eastern, Today, Jen-Jen, Tien-E, Chinatrust and
1966
Shin Kong department stores, etc. Most of the department stores at this time run together
with supermarket.
The retail business technique from foreign country started to be introduced. The first case
is the cooperation between Evergreen Department Store and Tokyu Department Store of
1977
Japan, then Far Eastern Department Store and Today’s Department Store started to
introduce business operation techniques from Japan.
Ministry of Economic Affairs started to approve formally the investment on the
department store business by the oversea Chinese or foreign companies; and the
1987
Taiwan-Japan cooperation way started to dominate, at this time, the grand opening of
Pacific SOGO department store is the representative one.
At this moment, the setup of department store has saturated and more Japan-series
department stores have emerged in the market, which in turn compresses the living space
1990
of domestic department stores. Most of the department stores started to abandon the way
of low price competition and transform to a way of using space and style to enhance
business operation niche.
The revenue growth of department store started to slow down. Many large shopping malls
2000～
such as Breeze Center and CPCity Living Mall emerged.
Data source: Summarized by this study
Year
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CASE STUDY
1. Current status analysis
(1) Revenue of the department store business
In 2006, due to economic recession and bad political environment, department store business is
somehow affected and the revenue showed a slight decrease; in the following table, a statistical table for
the revenues in the recent years of three department stores is provided through this study:
Table 6 Statistic of revenue of department store business in recent years
Company
Shin Kong Mitsukoshi
Pacific SOGO department
Far Eastern department
name
store
store
2004 revenue
54.8 billions
28.8 billions
17.1 billions
2005 revenue
52.0 billions
30.4 billions
18.2 billions
2006 revenue
50.0 billions
30.5 billions
14.9 billions
Data source: Summarized by this study
(2) AIO analysis for department store
A: Fashion－The fashion living attitude and opinions of the consumers
Table 7 The fashion living attitude and opinions of the consumers
Overall
Male
％
When I buy something, price is the consideration factor of first
priority.
To enjoy the leisure time, it is worth spending more money on it.
I care a lot on the atmosphere, decoration and style of a
restaurant.
I usually do not know where I have spent the money.
“Romantic life” is not feasible idea.
Female
11.5
9.9
13.0
9.9
9.9
9.8
9.6
9.0
10.2
9.0
8.0
9.9
8.5
8.6
8.4
Data source: 2007 version E-ICP annals
From the above table 15, we can see that the current fashion living attitude and opinions of the
consumers, no matter it is from the view of overall, male or female, are dominated by ” When I buy
something, price is the consideration factor of first priority”.
I: Practical use－The most frequently purchased merchandise by the consumers within recent three
months.
Table 8 The most frequently purchased merchandise by the consumers within recent three months.
Overall
Male
Female
％
Female clothes
39.3
7.7
57.9
Dining/Cuisine street
32.0
37.0
29.0
Cosmetic/body care product
28.6
3.3
43.5
Shoes
26.7
19.8
30.8
Male clothes
24.4
49.4
9.7
Data source: 2007 version E-ICP annals
From the above table, we can see that the most frequently purchased merchandises by the
consumers within recent three months are mainly female clothes, and the next are dining and cuisine
street visit; in the male part, it is mainly the purchase of male clothes and the next is dining and cuisine
The Journal of Human Resource and Adult Learning Vol. 3, Num. 2, December 2007
247
street visit; in female part, it is mainly the purchase of female clothes and the next is dining and cuisine
street visit.
O: Service－the major consideration factor for purchase at department store by the consumer
Table 9 The major consideration factor for purchase at department store by the consumer
％
Overall
Male
Female
The completeness of merchandise types.
41.0
38.8
42.3
Easy parking
34.9
40.8
31.5
With promotion and discount activity
31.4
23.4
36.2
It fits my own style and age.
31.3
28.4
33.0
Wide space
24.6
26.0
23.8
Kind service
23.7
25.7
22.4
Data source: 2007 version E-ICP annals
From the above table, it can be seen that the major consideration factor for purchase at department
store by the consumer, speaking in overall, is mainly based on the completeness of merchandise types
with easy parking the next; in the male part, the main consideration is easy parking and the completeness
of merchandise type is the next; in female part, the main consideration is the completeness of
merchandise types, and promotion activity as well as discount activity are the next.
Table 10 The major service consideration factors for more commonly purchased merchandise and
visit in recent three months in northern department stores.
The commonly purchased merchandise within
Major service consideration factors (％)
Rank
the recent three months (％)
1
Female clothes
36.7
Convenient parking
37.0
2
Dining/cuisine street
29.6
Completeness of merchandise types
34.1
With promotional and discount
3
Shoes
26.3
30.7
activities.
4
Cosmetics/body care product
25.4
Fit my own style and age
26.1
5
Fresh foods
20.4
Kind service
26.1
Data source: 2007 version E-ICP annals
From the above table, it can be seen that the more commonly purchased merchandises within the
recent three months for consumers in northern Taiwan are mainly female clothes, and dining and cuisine
street visit are next; for the major service consideration factor for a visit to department store is mainly
based on convenient parking and the completeness of the merchandise types is the next.
Besides, according to Eastern Online (2006), we can see that the consumptive groups in department
store are half male and half female; however, the target group and intensive target group of department
store are mainly based on female. In the age proportion part, both the target group and intensive target
group of department store are mainly based on youth and middle age person with age in the range of 20～
40 years old. In the target group analysis of department store, the marriage statuses of the overall
consumers are mostly married; the target group and intensive target group of department store are mainly
married. The target group and intensive target group of the family structure are mainly based on families
with children of teenage or close to adult age. In the target group analysis of department store based on
area type, all the department stores have their target group and intensive target group based on the
northern area as the major market. In the occupation category aspect, housekeeper is the main
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The Journal of Human Resource and Adult Learning Vol. 3, Num. 2, December 2007
consumption group; the target group of department store is mainly based people with service and sales as
occupation; and the intensive target group is mainly based on students from graduate school, university,
college, junior high school, senior high school or senior vocational high school.
2. General analysis of service quality
Based on the above mentioned literature by Shang-Yi Tai (1993), factors affecting the service
quality performance in department store can be divided into merchandise, facility, operation, personnel,
system and activity form; plus the service quality performance study of department store perceived by
consumers as performed by Ya-Chuan Lin (2005) and Yu-Chi Chien Chang (2003), the results are
summarized as in the following table:
Table 11 Satisfaction analysis of service quality on department store as perceived by consumers
Shin Kong
Pacific SOGO
Far Eastern
Mitsukoshi
Factors affecting service quality performance
Satisfie Unsatis Satisfie Unsatis Satisfie Unsatis
d
fied
d
fied
d
fied
Merchandise warranty and
defective merchandise
V
V
V
return
Merchandise quality
V
V
V
Merchandise
factor
The completeness of
V
V
V
merchandise type
Reasonable merchandise
V
V
V
price
Merchandise design,
V
V
V
decoration and atmosphere.
Safety facility
V
V
V
Facility factor Public facility
V
V
V
The marking system at the
V
V
V
sale site
Parking convenience
V
V
V
Fast cashiering
V
V
V
Operation
Accurate calculation of the
V
V
V
factor
trading value
Payment convenience
V
V
V
Willing to help customer
V
V
V
Service personnel have
professional knowledge
V
V
V
and can answer the
Personnel
questions.
factor
Very polite service
V
V
V
personnel.
Serve customer in very fast
V
V
V
way.
Deal with customer’s
V
V
V
question and complaint
System factor
After sale service
V
V
V
Merchandise advertisement
V
V
V
Promotion
V
V
V
Activity form
Hold all kinds of cultural
factor
V
V
V
and educational activities
Data source: Summarized by this study
The Journal of Human Resource and Adult Learning Vol. 3, Num. 2, December 2007
249
From the above table, it can be seen that among the merchandise factors, the product types of
Pacific SOGO are most complete and product source is sufficient and product quality is excellent as well.
However, the service of product return or change still needs to be improved. Shin Kong Mitsukoshi and
Far Eastern however, have insufficient products for consumers and their inventory management needs to
be improved.
In facility factor part, the incomplete safety facility of most of the department stores are what most
people worry about; furthermore, the parking convenience is also a factor that will affect if the consumer
will choose to consume in that department store. As compared to Shin Kong Mitsukoshi and Pacific
SOGO, Far Eastern has better parking convenience, which might be one of its competitive superiorities.
In operation factor part, all three department stores are fast and accurate in cashiering service;
moreover, there are more payment ways available in Far Eastern, which indeed enhance the convenience
of consumption of the consumers.
In personnel factor, it can be seen from the table that Far Eastern service personnel has worse
service quality; although the service personnel of Shin Kong Mitsukoshi and Pacific SOGO are more
active to serve customers, yet they are still not aggressive enough; service provided by personnel was the
weaker part of the three department stores.
In system factor, all three department stores do not have perfect after-sale service; if they can
improve their service quality through this item, it might become a powerful competitive superiority. To
customer’s complaint, only Pacific SOGO can respond and process quickly, Shin Kong Mitsukoshi and
Far Eastern still need to be improved. Besides, Far Eastern is weaker in the advertisement of the
merchandise and its promotional activity is also more insufficient as compared to the other two
department stores.
In activity form factor part, Far Eastern has weaker merchandise advertisement as well as fewer
promotional activities than the other two stores; moreover, very few charity activity or cultural and
educational activities are held by all the three department stores; if more of such activities can be held, not
only the visibility of their brand names can be improved, but also consumer flow and purchase interest
can be attracted.
CONCLUSION AND SUGGESTION
1. Conclusion
Through this study, it can be seen that the major consumer groups of the department store are based
on female, married person and housekeeper; most of these consumer groups have price as the major
consideration factor and prefer the practical function of the merchandise. Furthermore, since the target
consumer group of department store is mainly based on unmarried female, and this consumer group
mostly emphasizes on enjoyment and entertainment but has less management idea on the money. It can be
found from a comparison with AIO measurement table that when a consumer is chasing for fashion, price
is the consideration factor of the first priority; in the practical use part of the merchandise, most of the
consumers come to the department store mainly to buy clothes, and the next thing they emphasize is the
dining and cuisine street service provided by the department store.
In addition, the consideration factor that a consumer emphasizes most for a shopping at department
store is mainly based the completeness of the merchandise types, and the next thing that male consumer
cares is the parking convenience, but the female consumer cares is if promotion and discount is provided.
For three department stores in metropolitan Taipei area, the service quality in items such as: ”reasonable
merchandise price”, ”safety policy”, ”polite service personnel” and ”after-sale service” all can not reach
customer’s satisfaction standard; ”merchandise factor” of Shin Kong Mitsukoshi and ”personnel
factor”, ”system factor” and ”activity form factor” of Far Eastern all can not reach customer’s satisfaction
standard; however, Far Eastern has better performance in operation factor.
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2. Suggestion
(1) Suggestions to Shin Kong Mitsukoshi, Pacific SOGO and Far Eastern
Table 12 Research suggestions to Shin Kong Mitsukoshi, Pacific SOGO and Far Eastern
This factor must be improved immediately. Our suggestions are to
improve merchandise warranty system and the fast service project
of defective product return as well as strictly monitor the
Shin Kong
merchandise quality of the special counter. Furthermore,
Mitsukoshi
merchandise inventory and the completeness of merchandise types
should be controlled; meanwhile, more reasonable price should be
made so as not to scare general consumers away.
Merchandise
We suggest providing more complete quality warranty project and
factor
easy and fast defective product change service; meanwhile, more
Pacific SOGO
reasonable price should be made so that most of the consumers
can accept the price.
It is recommended that the merchandise quality in each special
counter should be strictly monitored. Moreover, the merchandise
Far Eastern
inventory and completeness of merchandise types should be well
controlled; meanwhile, more reasonable price should be made so
as to enhance customer’s purchase opportunity.
It is recommended that the construction and maintenance of safety
facility and public facility should be enhanced and safe and
pleasant atmosphere purchase environment should be provided to
Shin Kong
the customer; meanwhile, parking convenience should be
Mitsukoshi
improved for the customer; it is recommended to sign a contract
with the parking lot in the neighboring area or to provide transfer
vehicle service to the customer so as to enhance customer’s
willing to visit the store.
The internal decoration, atmosphere and the construction and
maintenance of safety facility should be enhanced so as to meet
customer’s need of shopping in safe and pleasant environment;
Facility factor
furthermore, the marking system of the sale site of department
Pacific SOGO
store should be improved and the parking convenience should be
enhanced; it is recommended to sign a contract with the parking
lot in the neighboring area or to provide transfer vehicle service to
the customer so as to enhance customer’s willing to visit the store.
It is recommended that the construction and maintenance of the
safety facility and public facility should be enhanced; the marking
system of the sale site of the department store should be improved,
Far Eastern
that is, the mark should stands at place that is more visible to the
consumer so as to direct the consumer to the right place or to let
consumer clearly understand the facility of the department store in
order to enhance consumer’s willing to purchase.
Shin Kong
The convenience of payment should be improved; for example,
Mitsukoshi
payment deduction from an electronic account or COD (collect on
Operation factor
delivery) can be taken so as to provide more payment convenience
Pacific SOGO
to the consumer.
It is recommended that internal service personnel should be
cautiously selected and intensive educational training should be
provided too so as to solve all kinds of customer’s problems in
Shin Kong
Personnel factor
very fast way. Moreover, educational plan for etiquette course
Mitsukoshi
should be provided to enhance the affinity of service personnel
and to build the image of excellent service personnel in order to
enhance consumer’s willing of purchase.
The Journal of Human Resource and Adult Learning Vol. 3, Num. 2, December 2007
251
Pacific SOGO
Far Eastern
Shin Kong
Mitsukoshi
Pacific SOGO
System factor
Far Eastern
Shin Kong
Mitsukoshi
Pacific SOGO
Activity form
factor
Far Eastern
252
It is recommended that the department store should select internal
service personnel cautiously and provide etiquette course. It is
hoped that the service personnel should be educated to serve
customers in more aggressive attitude and faster way so as to
enhance customer’s repeated visit and purchase to the store.
It is recommended that the department store should improve this
factor in first priority. It is recommended to select internal service
personnel cautiously and provide related professional knowledge
educational training to them so as to solve all kinds of customer’s
questions in very fast way; meanwhile, the affinity of the service
personnel should be enhanced and active, aggressive and fast
service concept should be built in service personnel’s mind so as
to meet customer’s need when customer has such need.
After-sale service proposal should be set up for the merchandise. It
is recommended that after-sale service is provided even up to
customer’s home. Meanwhile, merchandise consultation and
service hotline should be provided and professional service
personnel should be trained so as to solve all kinds of customer’s
questions and complaints.
After-sale proposal for all kinds of merchandises should be set up.
It is recommended that after-sale service even up to the home and
free after-sale proposal should be provided.
The department store should improve on this factor in high
priority. It is recommended that the after-sale service proposals for
all kinds of merchandises should be set up. Furthermore, after-sale
service even up to customer’s home should be provided and free
after-sale service proposal should be provided. Meanwhile,
merchandise consultation and service hotline should be set up and
professional service personnel should be trained to solve all kinds
of customer’s questions and complaints in very fast way. In
addition, TV advertisement, broadcasting channel, internet
information, DM, newspaper and magazines or the holding of
activity should be used to enhance the advertisement of the
merchandise and to let customer understand all kinds of
information of the merchandise in very fast way.
Activities of cultural, educational and public service nature should
be constantly held, for example, story telling competition,
prize-for-answer activity regarding folk and local culture and
painting competition; moreover, the department store should
provide its site to expert with cultural and educational nature for
the exhibition of his/her professional achievement so as to enhance
the visibility and fame of the department store.
It is recommended that promotional activity proposal should be
enhanced and prepared. In the proportional activity part, all kinds
of merchandise favor and discount should be provided so as to
satisfy the needs of all kinds of consumers. Meanwhile, activities
of cultural, educational and public service nature should be
constantly held or the department store should provide its site to
expert with cultural and educational nature for the exhibition of
his/her professional achievement so as to enhance the visibility
and fame of the department store.
Data source: Summarized by this study
The Journal of Human Resource and Adult Learning Vol. 3, Num. 2, December 2007
(2) Suggestion to the consumer
To many consumers, the price of the merchandise in department store is obviously too high, the
consumer can get into the internet to check the period of discount activity and go to purchase the
merchandise needed when the department store launches its promotional and discount activity. Since
different department store will launch the discount activity at different period, consumer can compare the
price of different stores before he/she goes for the shopping. Besides, when consumer goes for a shopping
at the department store, consumer should watch the environmental safety and select cautiously safe
shopping environment so as to prevent any injury from occurring. Moreover, if the consumer is not
satisfied with the department store for any of its policy, the consumer can inform the service personnel of
the department store, that is, consumer should provide suitable suggestion so as to satisfy his/her own
need.
(3) Suggestion to the government
In department store, since foreign brands occupy a very large proportion, the sale revenue of many
domestic brands are thus greatly suppressed; therefore, it is suggested that our government should help
domestic brands to develop their competitiveness and to enhance their sale revenue; in facility part, we
recommend that the government should reinforce safety inspection so as to reduce accidents from
happening. Moreover, many domestic department stores are very similar in the nature of merchandise
sold and in its positioning in the department store business; if the government can pass law to integrate
the market and each department store can develop its own special merchandise to make a difference,
benign competition among the department store business can thus be achieved.
3. Research limit
(1) To consider the truth of the data collected, most of the data collected here are personal interview or a
report of current status.
(2) The service quality of department store used in this article belongs to case study of theory, but the data
study is still insufficient.
(3) No questionnaire survey is done in this study, all the data are cited from 2006, 2007 Eastern Online
database.
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Economy Research Office of Taipei Bank, A continued report of department store industry survey for Taiwan area (1): A survey
report for the service industry in Taiwan area, 1995, Taipei: Taipei Bank.
Taiwan Institute of Economic Research, 2002 report for a research project of the circulation industry, 2003.
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Crosby, P. B. , Quality is Free: The Art of Marking Quality Certain, 1979, New York: New American Library.
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Philip Kotler, Marketing Management, Prentice-Hall, 10th Ed., 2000, p.396.
Rust, R. T. and Oliver, R. L., Service quality: Insights and managerial implications from the frontier, 1994, Sage Publications, CA:
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2. Journals
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Brady, M. K. and Cronin, J. J. Jr., Some new thoughts on conceptualizing perceived quality: A hierarchical approach, Journal of
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Garvin, D. A. What does “Product Quality” really mean? Sloan Management Review, 1984, Vol. 26, No. 1, pp. 25-43.
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3. PHD and Master theses
Ya-Chuan Lin, A study of the service quality improvement strategy of department store based on function deployment—take Shin
Kong Mitsukoshi in Shin-Yi District as an example, a non-published master thesis from the Department of Business
Administration at National Taiwan University of Science and Technology, 2005.
Yu-Chi Chien Chang, A comparison study of the service quality of department store and shopping mall in metropolitan Taipei area
－take Pacific SOGO, Shin Kong Mitsukoshi, Far Eastern, Breeze Center and CPCity Living Mall, a non-published master
thesis of the Department of Cooperative Economics at National Taipei University, 2003.
Peng-Yu Chen, A study of the recognition of travel scenery spots in Yilan through an application of Multidimensional Scaling
method; a non-published master thesis of graduate institute of management at the college of humanities and social sciences,
2006.
Shang-Yi Tai, An empirical study of the service quality of large department store industry, a non-published thesis of the graduate
institute of business administration at National Sun Yat-sen University, 1993.
4. Reference web site
Department Store and Retail Business Enterprise Association of the Republic of China, http://www.ract.org.tw/newweb/index.asp#
Pacific SOGO department store, http://www.sogo.com.tw/
Taiwan Chain Stores and Franchise Association, http://www.tcfa.org.tw
Eastern Online, http://www.isurvey.com.tw/
International Franchise Association, http://www.franchise.org
Shin Kong Mitsukoshi department store, http://www.skm.com.tw/index.asp?s=10
Department of Commerce of the Ministry of Economic Affairs, http://dir.tier.org.tw/
Far Eastern, http://www.feds.com.tw/#
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