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Using SERVQUAL to assess the quality of service provided by Jordanian
telecommunications Sector
Article in International Journal of Commerce and Management · August 2014
DOI: 10.1108/IJCoMA-03-2012-0021
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International Journal of Commerce and Management
Using SERVQUAL to assess the quality of service provided by Jordanian
telecommunications Sector
Muhammed S. Alnsour Bandar Abu Tayeh Mohammed Awwad Alzyadat
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Muhammed S. Alnsour Bandar Abu Tayeh Mohammed Awwad Alzyadat , (2014),"Using SERVQUAL to
assess the quality of service provided by Jordanian telecommunications Sector", International Journal of
Commerce and Management, Vol. 24 Iss 3 pp. 209 - 218
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(2002),"Service quality in the Thai telecommunication industry: a tool for achieving a
sustainable competitive advantage", Management Decision, Vol. 40 Iss 7 pp. 693-701 http://
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(2002),"Service quality, customer satisfaction and behavior intentions: Evidence from China’s
telecommunication industry", info, Vol. 4 Iss 6 pp. 50-60 http://dx.doi.org/10.1108/14636690210453406
(2013),"Mobile SERVQUAL: A comparative analysis of customers' and managers' perceptions",
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Using SERVQUAL to assess the
quality of service provided by
Jordanian telecommunications
Sector
Using
SERVQUAL to
assess the
quality of service
209
Muhammed S. Alnsour, Bandar Abu Tayeh and
Mohammed Awwad Alzyadat
Business Administration and Marketing Department, Al-Balqa Applied
University, Al-Salt, Jordan
Abstract
Purpose – The purpose of this paper is to explore the application of the SERVQUAL approach to
assess the quality of service of Jordanian telecommunication sector and how this can ultimately affect
customer loyalty. Service quality has a very high importance in a sector that is becoming highly
competitive.
Design/methodology/approach – The paper uses a survey to asses the service quality from the
viewpoint of customers using a stratified sample that consists of customers of each of Jordanian
Telecommunication Company. The survey contrasts respondents’ expectations of a service with their
perceptions of the service delivered by telecommunication companies.
Findings – The study showed that the telecommunications company needs to understand the
Jordanian customer expectations in the light of the unique cultural traits of these customers. This affects
that companies’ ability in meeting customer expectations, Loyalty is directly enhanced by achieving
service quality and should be one of the main goals for telecom companies.
Research limitations/implications – Some of the findings cannot be generalized across industries
or across countries.
Practical implications – The paper will be of interest to Jordanian telecommunication firms to
academics investigating the reliability and value of service quality assessment tools.
Originality/value – This study showed that culture can have an impact on customers’ expectations of
service quality. This is reflected by the findings about responsiveness and tangibility. Responsiveness
was found to be the dimension that has the greatest impact on loyalty within the Jordanian culture,
while tangibility has the lowest correlation with loyalty.
Keywords SERVQUAL, Loyalty, Jordan, Telecommunication sector
Paper type Research paper
Introduction
The aim of this paper is to report an exploratory study using the SERVQUAL approach
to assess the quality of Jordanian telecommunication companies’ services, one of the
most highly competitive sectors in the Middle East. There is a growing demand on
telecommunications in Jordan paralleled with more educated customers who stress the
need for excellent services. Companies who fail to excel in quality will have no place in
this highly competitive industry.
International Journal of Commerce
and Management
Vol. 24 No. 3, 2014
pp. 209-218
© Emerald Group Publishing Limited
1056-9219
DOI 10.1108/IJCoMA-03-2012-0021
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210
The study uses the SERVQUAL approach which examines how customers’
perceptions of service quality can affect their loyalty to specific service providers.
Although the approach has been used extensively to assess the quality of private sector
services, this study is different due to its focus on assessing service quality in a newly
privatized sector. It has the specific potential to assist in evaluating the changes in the
quality of service received by Jordanian customers comparable to the service they have
used to receive when this sector was monopolistically owned by the government. The
transferring of the ownership from the public sector to the private sector increases the
keenness of the new management to improve its efficiency; the privatization process is
supposed to contribute effectively in achieving high levels of service quality.
Jordanian telecommunication industry
Jordan has undertaken serious steps to privatize key economic sectors (Cunningham,
2002). One of these important sectors is the telecommunication industry. Since the
mid-1990s, Jordan has developed and implemented a policy aimed at upgrading and
developing its communications infrastructure and services.
The ongoing liberalization of Jordan’s Information and Communication Technology
sector is driving the growth of Jordan’s telecommunications market to a level in an
excess of a billion dollars annually (Al-Bawaba Reporters, 2005). Many steps were taken
to open the Jordanian market to fair competition; Jordan represents an attraction for
investors today and provides opportunities for new investments and new innovative
services.
Jordanian telecom industry is intensively competitive and growing rapidly. It is
continually being updated and expanded. Jordan’s telecom industry remains the most
competitive in the Middle East.
Jordanian Government is encouraging the widest possible access to communications
services at affordable prices (MENAFN). The Jordanian Government is trying to ensure
that the telecommunication sector is open for competition, and the private sector is
highly advised to participate and invest in developing this important sector service.
The Kingdom was served by one fixed-line operator Jordan Telecom (JT) until 2004,
JT is jointly owned by the Jordanian Government and a consortium led by France
Telecom. In 2005, Batelco Jordan was given the second license to provide fixed-line
telephone services in Jordan. Mobile services are available through three GSM mobile
operators. Fastlink was the first operator to introduce the mobile service in Jordan,
Mobilecom, a wholly owned subsidiary of JT, and Xpress Telecom, a license to operate
an IDEN (Motorola proprietary based) radio-trunking network.
Literature review
Loyalty
There are a number of commonly used measures to assess firms’ business performance
including financial perspective, internal processes perspective, learning and growth
perspective and customer perspective; key common indicators of customer perspective
include: customer satisfaction, customer loyalty, number of new customers, revenue
share accounted for by new customers and devotion and concern for customers’ needs
and expectations (Matic and Jukic, 2012). Loyalty is a key indicator of a firm’s
performance; it is very healthy for a long-lasting relationship with customers.
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Although all relationship marketing activities are eventually assessed on the basis of
the overall profitability of the firm (Hennig-Thurau et al., 2002), profitability is not the
direct outcome of relationship marketing activities, which calls for conceptualizing
relationship marketing outcomes on a more solid level. Two key outcomes were
suggested: customer loyalty and customer word-of-mouth communication. Customer
satisfaction and loyalty are highly correlated, but form two distinct constructs (Leverin
and Liljander, 2006). Although it does not guarantee it, customer satisfaction in a
relationship is a good basis for loyalty and can lead to it.
Loyalty is important in maintaining a long-term relationship. The development of
close social relationships, ultimately, advances into what is known as “psychological
loyalty”. This is a form of loyalty that is contrary to self-interest (Durkin and Howcroft,
2003). Literature and previous research maintains that loyal customers are cheaper to
serve (Arnott and Bridgewater, 2002). This helps in reducing a firm’s marketing costs by
retaining the existing less expensive customers than getting new more expensive ones.
Loyal customers are less likely to switch to competitors, they are typically less price
sensitive and serve as an important source of positive word-of-mouth communications
about the company. A loyal customer base can create a substantial entry barrier to
competitors (Page and Lepkowska-White, 2002). This loyalty leads to repeat investment
intentions leading to loyal behaviour and, ultimately, to more profits (De Cannière et al.,
2010).
Furthermore, loyalty produces positive outcomes for organizations because it creates
stronger and more stable relationships, reduces opportunism and generates positive
word of mouth (Sanzo et al., 2007). Loyal customers are less likely to switch to
competitors, they are typically less price-sensitive and serve as an important source of
positive word-of-mouth communications about the company. A loyal customer base can
create a substantial entry barrier to competitors (Morgan and Hunt, 1994).
SERVQUAL
SERVQUAL provides an instrument for measuring functional service quality
applicable across a broad range of services (Lam et al., 2004). One of the most central
aspects of SERVQUAL is that it is a powerful benchmarking, diagnostic and
prescriptive tool (Safiek, 2012). SERVQUAL is not interested in “objective” quality but
in perceived quality: this quality is based on customers’ judgement about excellence or
superiority (Llosa et al., 1998). SERVQUAL assumes that the difference between the
customer’s expectations and perceptions determines the quality. If this perceived
quality meets expectations, then the customer is satisfied (Gul and Banu, 2010). Hence,
it comes from a customer’s comparison of expectations and perceived performance.
Expectations reflect the desires or wants of consumers.
Previous exploratory research showed that clients judge service quality by using
the same general criteria, regardless of the type of service. The use of the
SERVQUAL approach to measure service quality in service industries is widely
accepted; it enables actual measurement of service quality (Ala’a Nimer and Ahmad
Puad Mat, 2012).
Literature maintains that service quality has a direct impact on improving business
performance and is related to expansion of market share (Teck-Hong and Yong-Kean,
2012). There are five dimensions of service quality that are applicable to
service-providing organizations in general:
Using
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(1) Tangibles consist of the physical facilities, equipment and appearance of
personnel. Clients often trust the tangible evidence that surrounds the service
when making their assessment, as there is no physical element to be assessed in
services (Nair et al., 2010).
(2) Reliability is the ability to perform the promised service in a reliable and
accurate manner.
(3) Responsiveness is the personnel willingness to help customers and provide
prompt service.
(4) Assurance (including competence, courtesy, credibility and security) is the
knowledge and courtesy of employees and their ability to inspire trust and
confidence.
(5) Empathy (including access, communication and understanding the customer)
relates to caring and personalized attention paid by the staff to the customers
(Gorla, 2011; Ball and Millen, 2003).
Research hypotheses
Based on the literature review and the aim of the study, this research has a main
hypothesis and five sub-hypotheses:
H1. Service quality dimensions are strongly related to customer loyalty in the
telecommunication sector in Jordan.
H1a. Tangibility positively and significantly affects customer loyalty.
H2b. Responsiveness positively and significantly affects customer loyalty.
H3c. Reliability positively and significantly affects customer loyalty.
H4d. Empathy positively and significantly affects customer loyalty.
H5e. Assurance positively and significantly affects customer loyalty.
Research methodology
Measurement
Service quality (SERVQUAL): this variable was measured using the original
SERVQUAL questions developed by Parasuraman et al. (1988) with minor adaptations
due to translation into Arabic because the questionnaire was administered in Arabic to
ensure precise understanding of the meaning for respondents, and some other few items
were modified to match the context of telecommunication firms.
Loyalty is the result of built up of attitudinal loyalty (consisting of commitment, trust and
satisfaction); this form of loyalty leads to repeat investment intentions leading to loyal
behaviour and, ultimately, to more profits (De Cannière et al., 2009). Attitudinal loyalty was
measured as a higher-order construct consisting of the three dimensions of trust,
commitment and satisfaction. Scales for measuring trust and commitment dimensions were
adapted from The Commitment–Trust Theory of Relationship Marketing (Morgan and
Hunt, 1994) and satisfaction was adapted from Leverin and Liljander (2006).
These two measurements are used widely in the literature, and their validity is
proved. The Cronbach’s alpha values indicate that reliability of tangibles (0.86),
responsiveness (0.71), reliabilities (0.74), empathy (0.76), assurance (0.89) and loyalty
(0.81) are high and acceptable.
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The study population consisted of the telecommunications companies working in
Jordan. Access to the participants was obtained through personal contacts. A survey
team from Al-Balqa Applied University students in As-Salt/Jordan distributed (500)
questionnaires to customers from telecommunication firms in the capital Amman.
These firms provide both mobile phone and Internet services. Participation was
voluntary for all respondents from those firms, and confidentiality for them was
assured. The respondents filled in the questionnaires and returned them to the survey
team members. Of the 500 questionnaires distributed, 377 were returned, representing a
response rate of 77.2 per cent. Table I shows the respondents’ characteristics.
Results in Table I indicate that 40.8 per cent of the sample were females and 44.3 per
cent had a bachelor degree. In term of age, majority of the respondents (65.5 per cent)
were aged ⬍35 years. Half of the respondents use pay-as-you-go mobile services.
Table II presents means, standard deviation and correlations for the study variables.
The mean of tangibility is 3.51, and the standard deviation is 0.87. For responsiveness,
mean and standard deviation are 3.33 and 0.76, respectively. The mean and standard
Category
Frequency
Per cent
Gender
Male
Female
223
154
59.2
40.8
Education
Secondary level
Diploma level
Bachelor level
High (master or PhD) level
66
85
167
59
17.5
22.5
44.3
15.6
Age (years)
Less than 25
25-less than 35
35-less than 45
45 and more
89
158
71
59
23.6
41.9
18.8
15.6
Type of mobile services
Card (pay as you go)
Personal offer
Company offer
194
72
111
51.5
19.1
29.4
Variables
Tangibility
Responsiveness
Reliability
Empathy
Assurance
Loyalty
Mean
SD
1
2
3
4
5
6
3.51
3.33
3.31
3.60
3.61
3.63
0.87
0.76
0.90
0.82
1.05
0.99
(0.86)
0.52**
0.44**
0.60**
0.79**
0.43**
(0.71)
0.86**
0.70**
0.55**
0.65**
(0.74)
0.59**
0.47**
0.61**
(0.76)
0.64**
0.60**
(0.89)
0.55**
(0.81)
Notes: Reliabilities (coefficient alphas) appear in parentheses in the table; ** p ⬍ 0.01
Using
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Table I.
Respondents’
characteristics
Table II.
Descriptive statistics and
correlations
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deviation for reliability are 3.31 and 0.90, respectively. For empathy, mean and standard
deviation are 3.33 and 0.76, respectively. The mean and standard deviation for
assurance are 3.61 and 1.05, respectively. Finally, the mean of loyalty is 3.63 and
standard deviation is 0.99. Cronbach’s alpha values indicate that reliability of tangibles
(0.86), responsiveness (0.71), reliabilities (0.74), empathy (0.76), assurance (0.89), and
loyalty (0.81) are acceptable.
The Pearson correlation shows large positive correlations between loyalty and all
SERVQUAL dimensions. Responsiveness (0.65) has the largest correlation with loyalty,
while tangibility has the lowest correlation (0.43) with loyalty. The correlation between
reliability and loyalty is large and positive (0.61). Finally, the correlation between
loyalty and empathy and assurance is (0.60) and (0.55), respectively.
Hypotheses testing
The main hypothesis in this study predicted that SERVQUAL dimensions would
positively affect loyalty. Results in Table III support this hypothesis, revealing a
significant and positive effect of SERVQUAL dimensions (p ⬍ 0.05). The independent
variables (SERVQUAL dimensions) explained 51 per cent of the variance in the
dependent variable (loyalty). This result demonstrates the stronger relationship
between SERVQUAL and loyalty.
The H1a predicted that tangibility would positively affect loyalty. Results in
Table III support this hypothesis. Tangibility has a significant positive (t ⫽ ⫺2.47, p ⬍
0.05) effect on loyalty, suggesting a stronger relationship between tangibility and
loyalty.
The H1b predicted that responsiveness would positively affect loyalty. Results in
Table III support this hypothesis. Responsiveness has a significant positive (t ⫽ 2.73,
p ⬍ 0.05) effect on loyalty, suggesting a stronger relationship between responsiveness
and loyalty.
Table III also reveals a significant effect of reliability on loyalty which support H1c.
Reliability has a significant positive (t ⫽ 2.96, p ⬍ 0.05) effect on loyalty, also suggesting
a stronger relationship between responsiveness and loyalty.
The H1d predicted that empathy would positively affect loyalty. Results in Table III
support this hypothesis. Empathy has a significant positive (t ⫽ 2.93, p ⬍ 0.05) effect on
loyalty, suggesting a stronger relationship between empathy and loyalty.
Independent variables
Tangibles
Responsiveness
Reliability
Empathy
Assurance
R 0.71
R2 0.51
Table III.
Hypotheses testing results F value
t-value
Dependent variable (loyalty)
Significance
⫺2.47
2.73
2.96
3.92
4.80
0.014
0.007
0.003
0.000
0.000
76.42
0.000
Table III also reveals a significant effect of assurance on loyalty which support H1e.
Assurance has a significant positive (t ⫽ 2.96, p ⬍ 0.05) effect on loyalty, also suggesting
a stronger relationship between assurance and loyalty.
These results support the research hypotheses. Customer loyalty is strongly related
to the service quality dimensions in telecommunication firms in Jordan. All the service
quality dimensions are positively affecting customer loyalty.
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Findings and discussion
This study examined the effect of the service quality dimensions on customer loyalty in
telecommunication firms in Jordan. Specifically, it predicted that service quality
dimensions (tangibility, responsiveness, reliability, empathy and assurance) would
positively affect customer loyalty. The results supported these predictions.
This is consistent with the results of the study by Ogwo and Igwe (2012) who stressed
that building loyalty depends on ensuring that the firm provide and maintains simple,
reliable and trouble-free service quality, and that service quality delivery will drive
sustainable customer patronage. Thus, firms wanting to increase loyalty should focus
on service quality. It is also consistent with the findings of the study by Swaid and
Wigand (2012) which revealed that the perceptions of overall service quality improve
perceived value which, in turn, positively influence loyalty intentions among customers.
Tangibility was found to positively affect customer loyalty. It seems that customers
assess the appearance of physical facilities, equipments, personnel and communication
materials in the telecommunication firm which affect their loyalty to that firm. Loyalty
was found to be positively related to responsiveness. A possible explanation to this
result is that the willingness to help customers and provide prompt services has an
important effect on customer loyalty.
The results indicated that reliability had a positive effect on customer loyalty. It
seems that customers were confident that telecommunication firms provided the
promised services dependably and accurately. In other words, customers got what they
paid for which, in turn, raised their loyalty to these firms.
Empathy was found to positively affect customer loyalty. A possible explanation to
this result is that customers value the understanding, caring and concern of the service
provider to their needs, and therefore, appreciated this individualized attention by
expressing more loyalty. Loyalty was found to be positively related to assurance. It
seems that customer loyalty is related to the knowledge and courtesy of firms’
employees and their ability to convey trust and confidence.
Conclusion and implications
The study demonstrates how service quality can help ultimately contribute to achieving
customer loyalty in the telecommunication sector. The results of this study suggest that
SERVQUAL can still hold and be used for measuring service quality across cultures.
This confirms the idea that the SERVQUAL is robust and amenable to customization in
different service environments, which is why it is the most commonly used model for
assessing service quality.
The causal relations between service quality perceptions and loyalty are confirmed
in the Jordanian telecommunication industry. Responsiveness shows the highest
positive correlation with customer loyalty in the current study. Responsiveness refers to
the willingness and ability of the service provider to meet and adapt to customers’ needs.
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Jordanian customers prefer a friendly service provider who is willing to help them in
their interaction with the company. Employees should be selected and trained based on
their ability to be helpful to customers. The direct contact between the service provider
and the final customer increases responsiveness. Responsiveness can happen due to
delays and distance; long distances in the supply chain can reduce responsiveness
(Osborn and Nault, 2012), and accordingly, direct contact with customers enhances
responsiveness.
On the other hand, tangibility has the lowest correlation with loyalty. Customers
clearly separate tangible from non-tangible quality attributes. SERVQUAL was based
on research mostly in the USA. Customers in other cultures may perceive service quality
differently (Tsoukatos and Rand, 2006). Culture is an important determinant of
customers’ perceptions of service quality and its impact on their behaviour. Jordanian
telecommunications companies must take into account this fact; hence, primarily direct
their resources towards improving the human rather than the tangible element of their
services.
This finding about tangibility is inconsistent with may of the previous studies
assessing service quality in Jordan (Abu-Kharmeh, 2012) who assessed the quality of
health services in Jordan and (Ala’a Nimer and Ahmad Puad Mat, 2012) who studied the
hotel industry in Jordan and others as well. The researchers believe that this is due to
differences in the nature of the industry sector. The tangible aspect of service and
physical surroundings may be of greater importance in hotel and health industry
comparable to telecommunications.
Limitations and future research directions
The research findings cannot be generalized to other industries, although tangibility has
the lowest impact on loyalty in the telecommunications industry, it might have a greater
impact on other service industries like hotels and restaurants, healthcare, etc. Therefore,
other research could be conducted on multiple industries to compare the differences
between industries in terms of the importance of the SERVQUAL dimensions.
Although this research is developed based on theoretical grounds, its generalizability
is restricted to the telecommunications sector in Jordan. A potential area of future
research is to carry out similar research in other service industries in Jordan and other
similar countries to test generalizability. Cross-cultural studies can be highly beneficial
to describe the difference due to culture. A future qualitative study to expand
SERVQUAL dimensions will also be a potential area for future research.
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Corresponding author
Muhammed S. Alnsour can be contacted at: m.s.alnsour@bau.edu.jo
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