Research Proposal The Mediating Role of Perceived Justice on the relationship between Service Quality & Customer Satisfaction moderated by frequent use Course: Management Information Systems Course Instructor: Assistant Professor Khalid Dahleez Student: VVVVV Std No.: ZP00675 MBA Program Business Administration Department Faculty Of Commerce The Islamic University of Gaza April, 2014 Abstract 2 Introduction: The competition between organizations in satisfying customers and providing the best goods and services is at its peak. Even manufacturers who mainly produce goods strive to provide additional services to retain existing and attract new customers to stay competitive. Resent statistics (Olorunniwo, Hsu, & Udo, 2006) and (Brady & Cronin, 2002)cited different researches which show that more than two thirds of the US economy is service-oriented. Similar indications . . . .. . . . The roots of service and goods quality were originated in the works of Juran, Deming, Crospy, and many others. After the seminal and pioneering works of those gurus, the direction was pointed to a collective understanding of the quality of goods and services which was dominated by TQM. . . . . . . . ... Justice and fairness of the decisions taken by organizations as well as the fare treatment of customers drew the attention of the researchers in the last twenty years. In their efforts to define and understand the different types of justice and their effects to several outcomes, (Colquitt, Conlon, Wesson, Porter, & Ng, 2001) did a meta-analytic review of 25 years of relevant literature. They traced the origin . . . .. . .. . . (Namkung & Jang, 2009) cited previous literature reflecting the interest of researchers in studying service quality as a tool for service evaluation and that clemmer (1993) was the first . . 3 . . .. . Thus, what is the role played by perceived justice in the relation between service quality and customer satisfaction and which dimension of organizational justice has the greatest effect on this relation? . . .. . . In order to answer the previous questions the researcher constructs the model shown in figure (1). This model draws on the previous work of (Brady & Robertson, 2001)that tested the relationship between service quality and satisfaction in different international context and found that service quality is an antecedent of satisfaction and can better explain the variance i n behavioral intentions. . . . .. . . . Therefore, based on previous discussion the objectives of this study will be as follow: 1. Examine the effect of perceived justice dimensions on the relationship between service quality, customer satisfaction, and behavioral intentions. 2. Identify the justice dimensions which have the maximum effect on customer satisfaction. 3. Predict the correlation between the service quality dimensions and the organizational justice dimensions. 4. Examine the moderating role of customers' previous experience (frequent use) on the mediating relationship of expected justice between service quality and customer satisfaction. In conclusion, the current research is expected to advance understanding and add more explanations on the effect of service quality on customer satisfaction and behavioral intention by introducing perceived justice and previous experience as mediating and moderating variables respectively. . . . 4 .. . Review of the Literature: Quality of Service: The conceptualization and measurement as well as the antecedents and outcomes of service quality are still under debate from different researchers. Despite the efforts and debates between researchers for more than twenty years, as argued by (Brady & Cronin Jr, 2001), the . . . . .. Customer Satisfaction & Behavioral Intention: Academic research on customer satisfaction reports mixed results and findings about both its antecedents and outcomes as argued by (Szymanski & Henard, 2001). . . . . . .. . Organizational Justice: The field of organizational justice becomes an important topic and gains a lot of attention in the last 30 years as mentioned by (Colquitt, 2001) who differentiated between four categories of organizational justice. The focus . . .. . . . . 5 Model & Hypotheses Development: As depicted in figure (1) the model will study . . .. . . The following subsections shed more light on this model and discuss its justifications and logical underpinnings as well as the development of research hypotheses. Service Quality, Satisfaction, & Behavioral Intentions: . . .. . . . Thus, based on the previous discussion it is proposed that: H1. Service Quality is an antecedent to customer satisfaction and behavioral intention. H2.Service quality has both direct and indirect (through customer satisfaction) effects on behavioral intentions. . . .. . Role of Perceived Justice: The study of justice was mainly about equity and fairness perceptions in the workplace and was linked to different outcomes such as job satisfaction, OCB, and organizational commitment as was argued by (Colquitt, et al., 2001). . . .. . . . Therefore, it is hypothesized that: H3. Perceived procedural justice mediates the relationship between service quality and customer satisfaction. 6 H4. Perceived informational justice mediates the relationship between service quality and customer satisfaction. H5. Perceived distributional justice mediates the relationship between service quality and customer satisfaction. H6. Perceived interpersonal justice mediates the relationship between service quality and customer satisfaction. H7. Perceived overall justice mediates the relationship between service quality and customer satisfaction. Role of Previous Experience (frequent customers): . . .. . For the purpose of this research, the researcher will refer to loyalty, commitment, frequency of use, and strong-tie as frequent use of service and propose that: H8. Previous experience (frequent use of service) moderates the mediating relationship of perceived justice between service quality and customer satisfaction. Methodology: . . .. . . . . Study Design: The researcher will use two different approaches to implement the current research. First is a qualitative approach which will be done by arranging three interviews and one focus group. . . .. . . The researcher then will develop a questionnaire containing all modified measures and some demographical data items. He will distribute copies of these questionnaires to 50 respondents from the population as a pilot to test the 7 clarity and validity of the questionnaire, make some modifications, and estimate required time to fill the questionnaire. A final revision and modifications will be done. Population and Sample: . . .. . . . . . Investigative Techniques: The researcher will use three different techniques. The first two are qualitative techniques namely: interviews and focus group and the third is a questionnaire. . . .. The questionnaire will include four parts. The first . . .. . Instrument development: As discussed in previous sections there is more than one instrument to measure the constructs in the study. The convention is to adopt a suitable instrument and modify it to suit the purpose of the study as was done by (Cronin Jr, et al., 2000), (Dabholkar, et al., 2000), and (Olorunniwo, et al., 2006). Recent . . . . . . The researcher will adopt justice measures provided by (Colquitt, 2001) to test the four dimensions of justice. . . . 8 Measure of procedural justice includes items such as "have those p rocedures been applied consistently?". . . .. . . . . . Data Collection: The researcher will arrange and do the interviews by his own to assure the complete . .. . . Data Analysis Plan: The researcher will use different types of statistics in order to fulfill the goals of the research. Descriptive statistics indicating . . .. After that the researcher will use SEM to analyze and test the relationships between all constructs and the model fit. The use of SEM is better than other methods because it accounts for measurement errors . . .. . . Ethical Considerations: The topic of justice and fairness is very sensitive in his nature. Adding to this the sensitivity of the issues related to fairness in financial issues such as loans and psychological conflicts and problems. All information . . .. . 9 Bias: Two types of bias concerns are related to this research, one is the use of the self-report measure which raises common method concerns while filling the questionnaire from respondents' side. . . . . Assumptions: There are many assumptions which the researcher takes for granted when doing his research. Some of them are related to the respondents, some . . .. . Limitations: The research has some types of limitations. One limitation is related to doing the research for DSA only which may affect respondents” judgment . . .. . . . . . 10 References: Aguinis, H., & Gottfredson, R. (2010). Best practice recommendations for estimating interaction effects using moderated multiple regression. Journal of Organizational Behavior, 31(6), 776-786. Ambrose, M., & Schminke, M. (2009). The role of overall justice judgments in organizational justice research: A test of mediation. Journal of applied psychology, 94(2), 491-500. Aurier, P., & Siadou-Martin, B. (2007). Perceived justice and consumption experience evaluations: A qualitative and experimental investigation. International Journal of Service Industry Management, 18(5), 450-471. Brady, M., & Cronin, J. (2002). 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Journal of applied psychology, 86(3), 425-445. Conway, J., & Lance, C. (2010). What Reviewers Should Expect from Authors Regarding Common Method Bias in Organizational Research. Journal of Business and Psychology, 1-10. Cronin Jr, J., Brady, M., & Hult, G. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of retailing, 76(2), 193-218. Dabholkar, P., & Overby, J. (2005). Linking process and outcome to service quality and customer satisfaction evaluations: An investigation of real estate agent service. International Journal of Service Industry Management, 16(1), 10-27. Dabholkar, P., Shepherd, C., & Thorpe, D. (2000). A comprehensive framework for service quality: an investigation of critical conceptual and measurement issues through a longitudinal study. Journal of retailing, 76(2), 139-173. Holbrook Jr, R., & Kulik, C. (2001). Customer perceptions of justice in service transactions: the effects of strong and weak ties. Journal of Organizational Behavior, 22(7), 743-757. Kanning, U., & Bergmann, N. (2009). Predictors of customer satisfaction: testing the classical paradigms. Managing Service Quality, 19(4), 377-390. Namkung, Y., & Jang, S. (2009). The effects of interactional fairness on satisfaction and behavioral intentions: Mature versus non-mature customers. International Journal of Hospitality Management, 28(3), 397-405. Namkung, Y., Jang, S., Almanza, B., & Ismail, J. (2009). Identifying the underlying structure of perceived service fairness in restaurants. International Journal of Contemporary Hospitality Management, 21(4), 375-392. Olorunniwo, F., Hsu, M., & Udo, G. (2006). Service quality, customer satisfaction, and behavioral intentions in the service factory. Journal of Services Marketing, 20(1), 59-72. Parasuraman, A., Zeithaml, V., & Berry, L. (1985). A conceptual model of service quality and its implications for future research. The Journal of Marketing, 49(4), 4150. 11 Parasuraman, A., Zeithaml, V., & Berry, L. (1988). SERVQUAL: A multiple item scale for measuring consumer perceptions of service quality. Journal of retailing, 64, 12-40. Smith, A., Bolton, R., & Wagner, J. (1999). A model of customer satisfaction with service encounters involving failure and recovery. Journal of Marketing Research, 36(3), 356-372. Szymanski, D., & Henard, D. (2001). Customer satisfaction: A meta -analysis of the empirical evidence. Journal of the Academy of Marketing Science, 29(1), 16. Zeithaml, V., Berry, L., & Parasuraman, A. (1996). The behavioral consequences of service quality. The Journal of Marketing, 60(2), 31-46. 12 Appendices: SERVPERF Measure: # Item 1. Up-to-date equipment 2. Should do as promised 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 1 2 3 4 2 3 5 6 7 Justice Dimensions: # Item Procedural Justice 1. Have you been able to express your views and feelings during these procedures? 2. 3. 4. 5. 6. Have you been able to appeal the outcome arrived at by those procedures? 7. Have those procedure upheld ethical and normal standards? Distributive Justice 1. Does your outcome reflect the effort you have put into your work? 2. 3. 4. Interpersonal Justice 1. 2. 3. 4. Has (he/she) refrained from improper remarks or comments? Informational Justice 1. Has (he/she) been candid in (his/her) communications with you? 2. Has (he/she) explained the procedures thoroughly? 3. 4. 5. Overall Justice 1. Overall, I am treated fairly by the organization 1 4 5 6 7 13 2. 3. 4. 5. 6. In general, I can count on this organization to be fair Most of the workers who work here would say they are often treated unfairly. Customer Satisfaction and Behavioral Intentions: # Item Customer Satisfaction 1. Overall, I am satisfied with my () experience at this organization 2. 3. Behavioral Intentions 1. 2. 3. I would say positive things about this organization to others 1 2 3 4 5 6 7 14