CHAPTER ONE
1.1
Background.
Employees' attitudes and opinions about their colleagues and the work environment may make
all the difference between workers' merely doing a good job and delivering exceptional guest
service. (Arnett et al., 2002).
Owing to the increasing transit traffic at Entebbe International Airport, Entebbe Handling
Services (ENHAS) administrators devoted themselves to improving the relationship between
Airlines, passengers and their staff, and to considering methods of improving service quality to
satisfy passenger demands and enhance airline loyalty.
A number of strategies are available for improving service quality. It is important to understand
passenger needs and provide services that meet their demands. When focusing on passenger
handling, ENHAS must adopt marketing tactics as a method of customer-oriented business
management (Tsai, 2006).
Lately marketing researchers have very much focused on external customers to business firms
and reach for methods of retaining external customers. However, for service providing firms like
ENHAS, services provision is from internal customers to external customers with intangible or
tangible services. The company’s service quality is therefore influenced by the service package
from internal customers and their service attitude.
Following the unpredicted occurrence of events at ENHAS, characterized by a high resignation
rate of staff, airlines service dissatisfaction, poor employee attitudes, a peak in fraud cases,
threats of strikes from employees and passenger complaints, ENHAS should pay increased
attention to internal marketing (Daily Monitor, April 8, 2009). Internal marketing practices aim
1
to attract and retain the most qualified and committed employees for the organization (Payne et
al., 2000). In a service-providing organization, this translates into eliciting service-oriented
behaviors designed to achieve high customer satisfaction and loyalty (Barnes & Morris, 2000).
ENHAS will be able to create service values for passengers by interacting with employees and
delivering service value.
(Bansal et al., 2001) posited that internal marketing can improve employee organizational loyalty
and job satisfaction. Internal marketing also attracts and organizes talent, and helps business
organizations improve employee service capabilities (Bansal, 2001).
Most previous studies only focused on one or two variables. For example, regarding research on
the relationship between internal marketing and organizational commitment (Mohammad, 2006)
and that between internal marketing and job satisfaction (Mat, 2005), few of the studies have
focused on the airline industry to study the relationship between internal marketing and other
variables. However the main goal of internal marketing is to enhance service quality for external
customers. A study has shown the positive relationship between internal marketing and service
quality (Tsai, 2006). Few previous studies have focused on the variables that mediate internal
marketing and service quality. Consequently, this study attempted to extend the past researching
scope and explore whether or not employee job satisfaction- “an employees’ general affective
evaluation of his or her job” can be viewed as the mediator of internal marketing and service
quality- “a customers’ evaluation of service experiences over a period of time”.
2
1.2
Statement of the Problem
The aviation ground handling service quality in Uganda is below international standards
(Samuel, 2000; www.avitop.com (June 2009). This may be due to the lack of internal marketing
within the dominant handling company ENHAS. Internal marketing ensures that all employees
provide the best representation of the company and successfully handle all interactions with the
final customer (Christopher et al., 2000). At ENHAS, these processes often seem to lack or
function unsatisfactory, judging from the high resignation rates of staff, airlines service
dissatisfaction, poor employee attitudes, a peak in fraud cases and passenger complaints (FUE,
2008). Internal marketing ignites employee job satisfaction which is requisite for high service
quality levels. These variables had not been researched before in Ugandas’ aviation industry.
Hence, the researchers’ intention to investigate their impact on aviation ground handling.
1.3
Purpose of the Study
This study aimed at investigating the significance of Internal Marketing practices to enhancing
Service Quality in the service industry.
1.4
Research Objectives.
i.
To establish the importance of internal marketing on service quality.
ii.
To analyze the impact of internal marketing on employee job satisfaction.
iii.
To establish the relationship between employee job satisfaction and service quality.
iv.
To examine the effect of job motivation on employee job satisfaction, internal marketing
and service quality.
3
1.5
Research Questions.
i.
How important is internal marketing in service quality delivery?
ii.
What is the impact of internal marketing on employee job satisfaction?
iii.
What is the relationship between employee job satisfaction and service quality?
iv.
What is the effect of job motivation on internal marketing, employee job satisfaction and
service quality
1.6
Scope of the Study
The industry the researcher studied is the services industry. However the researcher focused on
the airline ground handling industry limited to Entebbe Handling Services Limited and the
airlines which are its clients.
The area of interest is Internal Marketing as a foundation for employee job satisfaction, to
achieve service quality.
The problem investigated concerns the air travel industry. However as a study concerning a
major market, the researcher selected Entebbe Handling services Limited on the basis of
perceived performance, market size, market share, possibility to access the company and
company characteristics. The geographical scope was limited to Entebbe International Airport.
4
1.7
Significance of the Study
The research will benefit academicians and the service industry with relevant internal marketing
programs that lead to important payoffs for organizations in the service industry stemming from
four main sources: low employee turnover rates, an increase in service quality, high levels of
employee satisfaction and an improved ability to implement change in several service industry
organizations.
1.8
Conceptual Framework
Figure 1: Conceptual frame work
Source: Adapted from Allen, N.J. & Grisaffe, D.B. 2001; Berry, L. and Parasuraman, A. 1991;
Metter, King-Metters, and Pullman 2003.
Internal marketing
Internal Marketing is defined as marketing by a service firm to train and effectively motivate its
customer-contact employees and all the supporting service people to work as a team to provide
customer satisfaction. (Armstrong & Kotler, 2002).
5
Internal marketing is generally considered to be the application of tools like those used for
marketing for the employee market within firms (Gronroos, 1985; Piercy & Morgan, 1991).
(Berry & Parasuraman, 1991) propose that internal marketing views employees as the internal
customers of a business, and see the job of employees as a type of product, with the organization
adopting techniques such as attracting, motivating and retaining employees to provide jobs that
meet employee needs and wants.
Other studies have reflected internal marketing from a service perspective, and these studies have
proposed that internal marketing involves activities designed to reform the business, boost firm
efficiency, and improve organizational service quality (Berry, 1984; Foreman & Money, 1995).
It is this internal marketing that ignites employee job satisfaction.
Job Satisfaction
An individual’s general attitude toward his or her job, or the difference between the amount of
reward workers receive and the amount they believe they should receive. (Stephen, 2002).
The Job Description Index (JDI) (Smith et al., 1969) is the most frequently quoted scale when
measuring job satisfaction. The scale includes areas like type of job, remuneration, promotion,
superior management, and job associates. However, (Spector, 1985) has identified some
problems with JDI when it is applied to employees from the service sector. Thus Spector
developed the Job Satisfaction Survey (JSS) that essentially brings more to the forefront aspects
of satisfaction of remuneration, promotion, management styles and relations, welfare, incentive,
operation procedures, associate relationships, job description, and communication. When internal
marketing practices are effective, it enhances employee job satisfaction thus achieving service
quality at the extreme.
6
Service Quality
Service quality is one of the dominant themes of service oriented research (Fisk et al., 1993).
During its infancy, service quality research based its foresight on consumer behaviors and the
confirmation or disconfirmation paradigm (Gronroos, 1992). Based on this paradigm, when
customers consume a product, they compare the quality they have experienced to that of their
previous expectations, leading to an emotional reaction manifested in satisfaction/dissatisfaction
with the products or services purchased.
Job Motivation
According to Luthans (1998), motivation is a management process of influencing behavior based
on the knowledge of what makes people tick. As a moderator function of the third variable, job
motivation represents the generative mechanism through which the focal independent variable
(Internal Marketing) is able to influence the dependent variables of interest. Specifically, within
a correlation analysis framework, this moderator affects the zero-order correlation between the
two dependent variables.
7
CHAPTER TWO
2.0
Literature Review
The now vibrant concept of internal marketing applied in the service sector is very important to
excellent service provision and successful external marketing which calls for an exploration in
details. The research presents an empirical study on the correlations among internal marketing,
employee job satisfaction, and service quality with respect to Entebbe Handling Services. This
review provides a basis for future academic research of related topics as well as reference for
business owners and managers in the service industry.
2.1
The influence of internal marketing on service quality
During the early 1980s, the concept of internal marketing first appeared in the service marketing
literature (Gronroos, 1981; Frost & Kumar, 2000; Joseph, 1996; Flipo, 1986; Foreman & Money,
1995). So far, there is still no consensus regarding the definition of internal marketing. Instead, a
varied range of academic opinion exists.
Among others Internal Marketing is defined as marketing by a service firm to train and
effectively motivate its customer-contact employees and all the supporting service people to
work as a team to provide customer satisfaction. (Armstrong & Kotler, 2002).
There seems to be relatively minimal history on the development of the internal marketing
concept. Important areas of development and drive have been cited in five major streams of
thought among which are;
Services
marketing,
human
resource
management, organizational theory, planning and strategy considerations.
8
management,
quality
The above mentioned streams build an indispensable bridge for internal marketing as a concept
any successful firm needs to achieve desired competitiveness.
It is at foremost evident that internal markets exist within firms and they are independent from
the external markets. Secondly most of the external market approaches can be adapted and
modified for application in internal marketing. In order to achieve effective strategy formation
and implementation, great focus has to be put to the organizations’ internal markets.
Internal marketing involves creating an organizational climate in general, and job-products in
particular, which lead to the right service personnel performing the service in the right way. In
consumption, where the performance of people is what is being sold, the marketing task is not
only that of encouraging external customers to buy but also that of internal customers to perform.
When internal customers perform, the likelihood of external customers continuing to buy is
increased (Payne et al., 2000).
Ensuring that all members of staff are aware of the corporate vision, it becomes clearer what the
organizational goals and priorities are, thus helping to avoid conflict within the organization. A
focus on development can help the employees to develop the skills and the knowledge that they
need (Samms, 1998).
The importance of service quality continually increases as more emphasis is placed on meeting
the expectations of customers. As the client increases the amount of involvement, the more likely
the individual will recognize flaws in the service provided.
The effects of the miscues will vary dependent upon the previous preconceived images of the
firm by the customer. In order to handle this, the organization must understand what the
9
customer expects, how they expect to receive it, and the image held by this individual prior to
the service experience. Traditional marketing techniques must provide realistic goals that may be
obtained by the organization (Gronroos, 2002).
Traditionally, organizations focused on the technical quality of the product or simply what needs
were being fulfilled and failed to address how they were fulfilling those needs. Today,
organizations attempt to create distinct competitive advantages that competition may not or may
have difficulty in duplicating. This will allow the company to obtain sustained success and create
a new benchmark within the industry (Barney, 1991).
The importance of service has increased due to co-production with customers. They hold greater
knowledge and skill to help create the products and services (Prahalad & Ramaswamy, 2000),
therefore placing greater emphasis on the process. The process consists of the interaction with
front-line employees, and the perceived transaction time (McClain, Thomas, & Mazzola, 1992;
Metters, King-Metters, & Pullman, 2003; Schmenner, 1995; Schroeder, 1985). Therefore, all the
steps in the customer buying experience must be understood from both the organizational and
customer perspective (Iacobucci & Nordhielm, 2000).
Currently, modern technology allows the customer to gain significant background information
on industries, companies, and products. Therefore, customer conversations are amongst equals,
and the burden is placed on organizations to keep dialogue alive.
Also, through this technology customers may share their experiences with larger groups of
people (Prahalad & Ramaswamy, 2000). Technology has also placed pressure on organizations
to quickly change to customer needs and the ability to accomplish this rests in the culture of the
organization (Stuart, 1998).
10
The service provided by the organization affects the experience of the customer. Perception is
reality and what really matters is how the customer perceives the experience. Customers base
their own opinions on a few moments of the entire experience, often high or low points and the
end (Chase & Dasu, 2001). Therefore, the experience must end on a positive note and the
organization must attempt to alter a neutral experience into a positive experience (Morgan &
Rao, 2003). Companies must discover what the customer’s value and how they obtain outcomes
(Ulwick, 2002), but service quality measurement is difficult because two customers rarely
perceive similar outcomes (McClain et al., 1992; Metters et al., 2003; Schmenner, 1995;
Schroeder, 1985).
Internal quality management is driven by technology, organizational structure, systems and
internal goals and values. Different sized firms may show variations in the scale and complexity
of their internal operations. As the structures of various firms differ, the strategies will also vary.
The quality perceived by customers is likely to differ depending on what strategy the firm is
pursuing (Barnes & Morris, 2000).
2.2
The impact of internal marketing on employee job satisfaction
An individual’s general attitude toward his or her job, or the difference between the amount of
reward workers receive and the amount they believe they should receive. (Stephen P. Robbins,
2002).
Job Description Index (JDI) (Smith et al., 1969) is the most frequently quoted scale when
measuring job satisfaction. The scale includes areas like type of job, remuneration, promotion,
superior management, and job associates. However, (Spector, 1985) has identified some
problems with JDI when it is applied to employees from the service sector. Thus Spector
11
developed the Job Satisfaction Survey (JSS) that essentially brings more to the forefront aspects
of satisfaction of remuneration, promotion, management styles and relations, welfare, incentive,
operation procedures, associate relationships, job description, and communication which are the
primary objectives of internal marketing.
Basing on this research, Job satisfaction refers to an employee's general affective evaluation of
his or her job. Job satisfaction is fundamental in the service industry as it helps to ensure that
employees will treat customers with the most effective respect. Because of the important role
that service employees play in developing relationships with customers, employees' satisfaction
is a major concern for organizations that are interested in increasing customer loyalty. This calls
for management to fully communicate and train employees on its vision goals and planning for
its employees through a well planned internal marketing initiative.
Employees' job satisfaction has been linked to an increase in customer orientation by the
employee, an increase in customer satisfaction, and an increase in perceived service quality.
Research suggests that through internal marketing satisfied employees believe that appropriate
behavior will be rewarded by the organization. In general, job satisfaction leads to employees'
intentions to keep performing well their required job tasks, which, in turn affects their actual
behavior. Therefore, employee job satisfaction is a crucial prerequisite to service excellence. I
posit that employees who are satisfied with their jobs will also be those most likely to engage in
positive employee behavior.
The emergence of the internal marketing concept can be attributed to the following forces of
today’s business (Samms, 1998):
12
i.
Many enterprises are continually in some form of transformation-mergers, alliances,
downsizing and rightsizing generates the need for constant communication.
ii.
Some enterprises may rename themselves and this re-branding requires communication to
all stakeholders including employees.
iii.
More companies are empowering staff to increase the focus on customer relationship.
This needs full involvement, immersion and training in brand values.
iv.
There is more contract and less full-time employment. Project staff also needs to
understand the brand vision as they are working. This force of change is accentuated with
the increasing trend to outsourcing.
v.
There is less reciprocal loyalty between employer and employee; the employee’s time
becomes transactional. The ‘internal’ brand can be a way to bind the two parties together
with shared goals and values.
vi.
New ways of working require organizations and staff to constantly learn new skills and
sometimes these are acquired through alliances. Building a learning company will be an
important future consideration. Internal brand values can be an umbrella for this effort.
To motivate staff, it is necessary for communication to flow horizontally and vertically to all
staff levels. This process of communication should include the brand mission, philosophy and
core values. Many organizations are unable to harmonize these communications flows to reach
all staff levels; some do not achieve even one of these flows (Samms, 1998).
13
As noted earlier in 2.1, Internal marketing involves creating an organizational climate in general,
and job-products in particular, which lead to the right service personnel performing the service in
the right way. In consumption, where the performance of people is what is being sold, the
marketing task is not only that of encouraging external customers to buy but also that of internal
customers to perform. When internal customers perform, the likelihood of external customers
continuing to buy is increased (Payne et al., 2000).
Employees of an organization comprise the first market of a company. The main objective of the
internal marketing function is to obtain motivated and customer-conscious personnel at all levels.
The thinking behind the internal marketing concept is that employees are viewed as internal
customers and their jobs as internal products.
The corporate image of a company begins with each and every employee and is reflected in his
or her attitude about the company. Many times, companies may have a clear idea about the
corporate identity and look outward to establish or change an image by means of a strong
identity, but image begins with the employees. Internal marketing is a concept that has emerged
over the past decades. Today, it is considered a prerequisite for external marketing (Payne et al.,
2000). Promoting the corporate identity internally alone is not enough. Without efficient and
effective operations supporting the departments of an organization with which the customer deals
directly with, internal marketing will only provide a surface-skimming support for a company’s
brand position (Brewis Levie, 1999).
Jobs must attract, develop and motivate people thereby satisfying the needs and wants of these
internal customers while addressing the overall objective of the organization (Ewing et al., 1998)
14
Internal marketing, on the other hand, ensures that all employees provide the best representation
of the company and successfully handle all interactions with the final customer.
2.3
The relationship between employee job satisfaction and service quality
Service quality is one of the dominant themes of service oriented research (Fisk et al., 1993).
During its infancy, service quality research based its foresight on consumer behaviors and the
confirmation/disconfirmation paradigm (Gronroos, 1992). Based on this paradigm, when
customers consume a product, they compare the quality they have experienced to that of their
previous expectations, leading to an emotional reaction manifested in satisfaction or
dissatisfaction with the products or services purchased. Service is different from physical
products. SERVQUAL measures five basic dimensions of service quality considered salient by
consumers of service businesses, including: tangibles, reliability, responsiveness, assurance, and
empathy (Parasuraman et al., 1988). All these dimensions are reliant on the service encounter
between a consumer and an employee. A dissatisfied employee is more likely to offer an
encounter less desirable to both the employer and the consumer. Hence a service below
expectations.
Dimensions of service quality
It would be impossible to ensure service quality without first determining the salient aspects that
are incorporated under this term. Again, this poses some difficulty and many possible attributes
have been put forward to capture the meaning of service quality. Sasser et al. 1978 list seven
service attributes which they believe adequately embrace the concept of service quality.
15
These include; security- confidence as well as physical safety, consistency- receiving the same
each time, attitude- politeness and social manners, completeness- ancillary services available,
condition- of facilities or equipment, availability- access, location and frequency, and training.
An organization cannot achieve these attributes with dissatisfied employees, proper measures
and considerations have to be put in place to build a satisfied team of employees.
On the other hand, Gronroos, 1988, 1991, believes that service quality is made up of three
dimensions, that is the “technical quality of the outcome”, the functional quality of the
encounter”, and the “company corporate image”.
Parasuraman et al.1985, offer the most widely reported set of service quality dimensions. They
suggest that the criteria used by consumers that are important in making their expectations and
perceptions of delivered service fit into ten dimensions; tangibles, reliability, responsiveness,
communication, credibility, security, competency, courtesy, understanding or knowing the
customer, and access.
These were subsequently condensed into five dimensions of service performance known as
SERVQUAL; tangibles, reliability, responsiveness, assurance, and empathy.
To which Gronroos added a sixth dimension – Recovery (Gronroos, 1988).
Given the different definitions of service quality, perhaps Babakus and Boller, 1992., are correct
in saying that service quality may be, “an umbrella construct with distinct dimensions” although,
there is yet no real consensus as to what these dimensions might be. What for sure is to be noted
is the fact that all these dimensions are subject to fulfillment if an organization has well groomed
and satisfied employees
16
A more recent conceptualization of the service quality dimensions was proposed by Rust and
Oliver, 1994., they proposed a three component model in which the overall perception of service
quality is based on a customer’s evaluation of the three dimensions of the service encounter:
(i) The customer-employee interaction (i.e. functional or process quality),
(ii) The service environment, and;
(iii)The outcome (i.e. technical quality).
Employee Job Motivation
It is important for the top management to develop strong relationship between the organization
and employees to fulfill the continuous changing needs of both parties. Organizations expect
employees to follow the rules and regulations, work according to the standards set for them, and
the employees expect good working conditions, fair pay, fair treatment, secure career, power and
involvement in decisions. These expectations of both parties vary from organization to
organization. For organizations to address these expectations an understanding of employees’
motivation is required, Beer, (1984).
According to Deeprose (1994), an effective reward system enhances employee motivation and
increases employee productivity all of which contribute to improved organizational performance.
Baron (1983) argues that there is a close relationship between motivation and job performance.
Strategic success for the organization lies in focusing attention at all levels on key business
activities, which can be achieved through effective performance management, Nel, (2001)
17
CHAPTER THREE
3.0
METHODOLOGY
3.1
Research Design
The research was quantitative, while also descriptive and cross-sectional. Quantitative methods
were used for subjective assessment of respondents’ attitudes and opinions. The research was
quantitative because it involved generation of data in quantitative form for analysis. Descriptive
because it enabled the researcher get information about the current situation. A cross-sectional
study was carried out at Entebbe Handling Services Limited, among its employees and clients
who included airlines, and the Civil Aviation authority.
3.2
Study population
The study population comprised of 190 ENHAS employees, 62 airline staff and 80 Civil
Aviation Authority employees. Civil Aviation employees are included because the airport is
managed by the Civil Aviation Authority which is responsible for setting the minimum service
standards at the airport.
3.3
Sampling Design/Strategy
Probability sampling procedure was applied. Every staff had an equal chance of being included
in the sample so as to minimize bias (Tull and Hawkins, 1993). The researcher applied the
stratified random sampling method to select respondents for interviews and filling
questionnaires. The study utilized a stratified random sampling approach based upon
involvement within the organization. ENHAS had 91 respondents, 52 responded from civil
18
aviation authority while 44 respondents were realized from airline representatives making a total
of 187 respondents. This sampling approach allowed the researcher to examine various
subgroups, the use of this method recommends equal sample sizes but, “when the population to
be sampled is not homogenous and consists of several subgroups, stratified simple random
sampling may give a more representative sample than simple random sampling” (Ary et al.,
2002, p. 167).
Table 3.1: Sample size
Using stratified random sampling, a total of 187 respondents comprised the study as illustrated
below;
Study
Study sample
Number
Respondents
Response rate
Population
Respondents
ENHAS
Employees
190
125
91
49
62
53
44
23
Staff
80
58
52
28
Total
332
236
187
100
Airline
Staff
Civil Aviation
Source: Primary data.
19
Adapted from; Krejcie, R.V., & Morgan, D.W, 1970.
3.4
Sources of Data
3.4.1 Primary Data
Primary data was obtained directly from the airport premises by use of interviews, and
questionnaires. Further information was accessed through discussion with ENHAS as well as
Civil aviation Authority management.
3.4.2 Secondary Data
Secondary data was sourced from a review of related literature from journals, aviation journals,
airlines news letters, surveys from the Civil aviation Authority, the internet and passenger
service records.
3.5
Instruments:
The researcher individually handed out questionnaires to respondents. Three sets of
questionnaires were used, that is one for ENHAS staff, one for ENHAS managers and the other
for civil aviation and airline staff.
3.5.1 Measurement of variables
Internal Marketing:
The researcher measured internal marketing by replicating the 15 items, seven- point Likert-type
scale internal marketing measuring instrument developed by foreman and money, (1995). To
these, 10 more items were replicated from an instrument developed by Jerome Paul, (2005) to
20
make a 25 item instrument. The instrument was created through a review of literature and
consists of five dimensions: employees, organization, external customer satisfaction, external
marketing techniques and knowledge transfer.
The five dimensions which appear in Section A of the survey instrument were created through
their repeated appearance in definitions provided in the review of literature. The effects of
employees must exist because the focus of internal marketing is to alter their perceptions of
service quality (items 1, 3, 21, 22, 23, 24). The organization anticipates improved success
through internal marketing (items 4, 5, 18, 19, 20, 25). External customer satisfaction is an
outcome variable developed because if the internal marketing efforts fail to effect the primary
customer the internal marketing program is deemed ineffective (items 2, 6, 7, 8). External
marketing techniques attempt to sell the product internally (items 10, 11, 12, 13, 14). Knowledge
transfer is a method to improve communication and removes departmental barriers (items 15, 16,
17). The instrument for managers does not include the extra ten items adapted from Jerome,
(2005).
Employee job satisfaction:
Employee Job satisfaction was measured with the Minnesota Satisfaction Questionnaire by
Weiss, (1967). After an examination of the literature and the empirically tested instruments
available e.g., Job Satisfaction Survey; Spector, (1997), the MSQ was chosen for use in this
research because of its proven reliability and validity. During the past 20 years, numerous
researchers have provided support for the continued validity and reliability of the questionnaire
(Bizot & Goldman, 1993; Hirschfeld, 2000; Kulik & Oldham, 1988). Reliability coefficients
21
(i.e., internal consistency) have ranged from .87 to .92 on general job satisfaction for the MSQ.
In the present study, an alpha coefficient of .87 was found for general job satisfaction.
The instrument assesses the following 20 dimensions of job satisfaction: ability utilization,
achievement, activity, independence, variety, compensation, security, working conditions,
opportunity for advancement, recognition, authority, social status, coworkers, moral values,
social service, reactions to company policies and practices, the human relations aspects of
supervision, the technical aspects of supervision, creativity, and responsibility. Each item
represents 1 of the 20 dimensions and can be used to determine satisfaction in relation to each
dimension. Respondents were asked to rate their satisfaction with various aspects of their work
along a 5-point Likert-type scale, ranging from 1 = not satisfied to 5 = extremely satisfied.
Service quality:
The service quality items are a partial replication of the instrument created by Ko (2000) and
Servqual: a multiple-item scale for measuring consumer perceptions of service quality created by
Parasuraman, Zeithaml and Berry (1988). The instrument items represent three different
dimensions; service information, interaction quality, and valence. Service information examines
the ease of various methods in obtaining information from the organization (items 1, 2, 3, 4, 5).
Interaction quality involves how employees interact, handle problems, and assist customers
(items 6, 7, 8, 9, 10, 11, 12). Valence includes the customer perceptions of feelings after an
activity managed by organization (items 13, 14, 15, 16). The items for service quality appear in
Section B (Appendix A) of the survey instrument.
22
Employee Job Motivation
The importance of employee job motivation in human resource management and organizational
behavior research is proved due to its clear and significant linkages with outcomes such as job
performance, job satisfaction, organizational citizenship behavior, job stress turnover intention
and organizational commitment. As a moderating study variable, items within the job satisfaction
questionnaire were tested against job satisfaction reliability coefficients of .87 to .92 using the
Chronbach’s Alpha to establish the pattern of the moderating variable’s reliability.
The pattern of the interaction showed under what conditions the moderation occurs. For example
in the case of continuous moderation, we saw that the main effect of internal marketing on
service quality delivery is qualified by the interaction: “higher internal marketing is associated
with higher satisfaction for by employees for their jobs under conditions of higher employee job
motivation.”
3.5.2 Validity
The validity of the instruments used in the study was estimated after a pretest. Experts in the
field were consulted about the content of the instruments, ambiguity of question items and their
relevancy. There after the instruments were given to raters who rated the relevancy of each item
and a content validity index was computed.
3.5.2 Reliability
Reliability refers to the consistency, stability, and repeatability of a data collection instrument. A
reliable instrument does not respond to chance factors or environmental conditions; it will have
consistent results if repeated overtime or if used by two different investigators. Reliability
23
demonstrates that the operations of a study such as the data collection procedures can be
repeated, with the same results, Yin (1994).
In order to ensure reliability, statistical analysis was implemented to examine the internal
consistency of the instruments utilized. Reliability tests were conducted on: (a) the responses
from ENHAS employees, (b) the responses from airline staff and civil aviation staff, and (c) a
combined analysis were conducted on the service quality sections of the instrument. In all,
Statistical Packaging for Social Scientists programme was used for the analysis.
Table 3.2:
Reliability Test Table
Variable
Alpha
Number of Items
Number of Cases
Internal Marketing
.9730
25
30
Employee Job Motivation
.9526
20
30
Employee Job Satisfaction
.9249
20
30
Service Quality
.9220
22
30
Source: Primary Data
Cronbach’s was used as an examination indicator to determine the reliability of the measurement
scale of the pilot test. The value of Cronbach’s  is generally required to be over 0.7 and the
calculated results were over 0.7. The figures representing as the output of the pilot test, it was
observed that the reliability of all the variables was greater than 0.7. This meant that the
measurement scales in this paper were reliable.
24
3.6
Data Processing and Analysis
3.6.1 Editing
Data collected was edited then coded, classified and entered in the computer for analysis. This
was carried out to ensure that the data from the respondents is accurate, reliable and consistent.
All the questionnaires from the respondents were properly and carefully scrutinized so as to
check on the omissions, completeness and inconsistencies upon which coding was done.
3.6.2 Data Analysis
Data collected was presented and analyzed by use of tables, frequencies, percentages. A
correlation analysis established the significance of the relationship between internal marketing,
employee job satisfaction and service quality. The study mainly used quantitative methods of
data analysis to link the variables.
The multiple regression analysis was used to analyze data to measure the degree of association
between the variables. The data was processed using SPSS Trends 13.0 package.
3.7
i.
Limitations of the Study
Respondents were suspicious and reluctant to fill the questionnaires. The survey was at a
time when the organization employees were planning a tools down strike. The researcher
over came this by having to seek support of some employees and presentation of his
study proposal to show evidence of the study being for academic purpose.
ii.
The airport is very much associated with intense security. Any search of information is
easily related to intimidation of security levels. The research being a stratified random
25
sampling one helped on this. Individuals were un-suspiciously involved and the
researcher tried to be as open as possible.
iii.
The research was costly coupled with the limited time within which the research was to
be completed. Patience, consistence, hard work and communication with the supervisors
played a good role in absorbing this limitation.
However the quality of research findings was not affected.
3.8
Ethical Considerations
The researcher acted responsibly according to ethical standards to ensure that the information
gathered was not brought to disrepute. ENHAS management was dully informed of the research.
All respondents had a right to privacy, to safety, to know the true purpose of the research, to
obtain research results and to abstain from answering questions (Aaker et al, 1995).
26
CHAPTER FOUR
4.0
PRESENTATION OF FINDINGS
In this chapter, attempt is made to present, analyze and interpret the findings. The
findings are presented according to the method used to analyze the data. The findings are
systematically presented according to the variables and research questions of the study.
This chapter commences with descriptive results regarding the response rate and sample
characteristics.
The results were done as per the following research objectives
i.
To establish the importance of internal marketing on service quality.
ii.
To analyze the impact of internal marketing on employee job satisfaction.
iii.
To establish the relationship between employee job satisfaction and service quality.
iv.
To examine the effect of job motivation on job employee job satisfaction, internal
marketing and service quality.
A total of 187 respondents were able to respond to the survey and the findings form the major
part of this chapter.
Many experts (Sasser and Arbeit, 1976; Berry, 1981; Greene et al.. l994) believe that the task of
internal marketing is to view the jobs as products; and employees as customers hence treating the
employee as an internal Customer. A thorough understanding of employees’ active participation
and imminent view of the organization as a work place helps employers to address both the
physical and emotional needs of employees. Internal marketing is a tool through which an
27
organization can realize its potential and pave the way for employee job satisfaction and service
quality to achieve successful external marketing.
This study aimed at investigating the significance of Internal Marketing practices to enhancing
Service Quality in the service industry.
4.1
Description of the sample
The sample description is in relation to designation, sex, marital status and time spent at the
airport by the respondents
4.1.1 Respondents by designation
Table 4.1
Valid
Respondents by Designation
Frequency
Percent
Valid Percent
Cumulative Percent
Employees
81
43.3
43.3
43.3
Managers
10
5.3
5.3
48.7
Customers
96
51.3
51.3
100.0
Total
187
100.0
100.0
Source:
Primary Data
The above table shows customers as the highest number of respondents with a percentage of
51.3% followed by employees making 43.3% and managers making 5.3%. The employee
response was affected by suspicions of the information collected being for organizations’
management.
28
4.1.2 Respondents by Sex
Table 4.2
Valid
Respondents by sex
Frequency
Percent
Valid Percent
Cumulative Percent
Male
95
50.8
50.8
50.8
Female
92
49.2
49.2
100.0
Total
187
100.0
100.0
Source:
Primary Data
Male respondents marginally responded more than the female to the research making a
percentage of 50.8% against the 49.2% of the female respondents. This depicted the male
respondents being more responsive given the fact that the female respondents made the highest
percentage of the targeted audience.
4.1.3 Respondents by Marital status
Table 4.3
Valid
Respondents by Marital Status
Frequency
Percent
Valid Percent
Cumulative Percent
Married
91
48.7
48.7
48.7
Single
96
51.3
51.3
100.0
Total
187
100.0
100.0
Source:
Primary Data
Majority of the respondents were single making a percentage of 51.3% while the married
respondents made 48.7% of the total respondents.
29
4.1.4 Respondents by age
Table 4.4
Valid
Respondents by age
Frequency
Percent
Valid Percent
Cumulative Percent
20-25
35
18.7
18.7
18.7
26-30
72
38.5
38.5
52.7
31-35
37
19.8
19.8
77.0
36-40
31
16.6
16.6
93.6
40+
12
6.4
6.4
100.0
Total
187
100.0
100.0
Source:
Primary Data
From the above table, majority of the respondents were of age 26-30 years making 38.5%,
followed by 31-35 years with 19.8%, 20-25 making 18.7%, 36-40 making 16.6% and the least
was 40 years and above making 6.4% The results showed that 77% of the respondents were
below the age of 36 years hence a bigger number of youth involved in work at the airport.
30
4.1.5 Time spent at the airport by respondents
Table 4.5
Valid
Time spent at the airport by respondents
Frequency
Percent
Valid Percent
Cumulative Percent
1-2 years
51
27.3
27.3
27.3
3-4 years
57
30.5
30.5
57.8
5-10 years
69
36.9
36.9
94.7
10+
10
5.3
5.3
100.0
Total
187
100.0
100.0
Source:
Primary Data
Majority of the respondents had spent at least 5-10 years at the airport making 36.9%, 3-4 years
making 30.5%, 1-2 years making 27.3% while those 10 years and above made 5.3%. The
responses depicted respondents who had spent more years at the airport as more responsive.
4.2
Pearson Correlation Test
To investigate the relationships among the constructs a Zero-order correlation table was
generated. Using the Pearson Correlation Coefficient, the table below presents the results of the
relationships.
31
Table 4.6
Correlations (Zero-order matrix N=187).
Correlations (Zero-Order matrix N=187)
Internal
Employee Job
Employee Job
Marketing
Motivation
Satisfaction
Service Quality
1.00
Internal
Marketing
Employee
Motivation
Job .918**
job
Employee Job
1.00
.871**
.779**
1.00
.723**
.695**
.596**
Satisfaction
Service Quality
1.00
Source: Primary Data
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
1. The relationship between Internal Marketing and the Moderator Variable
A moderator is described as a variable that influences, or moderates, the relation between two
other variables and thus produces an interaction effect. Therefore, the relationship between
internal marketing and employee job motivation can be well established with a third variable
involved.
32
2. The relationship between Internal Marketing and Employee Job Satisfaction
The results revealed that internal marketing and employee job satisfaction are significantly
correlated (r=0.871**, p-value< 0.01) and are strongly positively correlated. This indicates that if
internal marketing is prevailing within an organization, then employee job satisfaction is likely to
be realized.
3. The relationship between Internal Marketing and Service Quality
Internal marketing revealed a strong positive correlation with service quality (r=0.723**, pvalue< 0.01). This implies that if internal marketing was practiced, then service quality is likely
to be enhanced.
4. The relationship between Employee Job Satisfaction and Service Quality
Employee job satisfaction showed a significant positive correlation with service quality
(r=0.895**, p-value<0.01). This implies that if employee job satisfaction exists then company
efforts towards service quality enhancement are likely to be successful.
5. The relationship between the moderator (Work/Job Motivation) and the dependent
variables (Employee Job Satisfaction and Service Quality)
Employees have attitudes or viewpoints about many aspects of their jobs, their careers, and their
organizations. However, from the perspective of research and practice, the most focal employee
attitude is job satisfaction. The most-used research definition of job satisfaction is by Locke
(1976), who defined it as “. . . a pleasurable or positive emotional state resulting from the
appraisal of one’s job or job experiences” (p. 1304). Implicit in Locke’s definition is the
33
importance of both affect, or feeling, and cognition, or thinking. When we think, we have
feelings about what we think. Conversely, when we have feelings, we think about what we feel.
Cognition and affect are thus inextricably linked, in our psychology and even in our biology.
Inasmuch, from the table below, it is evident that employee motivation is at the crust of both
employee job satisfaction and service quality delivery.
N Min Max Mean
Std.
Deviation
My job makes use of my abilities.
20 1.00 5.00
3.45
1.39
I regard my work as a success.
20 1.00 5.00
2.57
1.53
My job keeps me busy all the time.
20 1.00 5.00
2.26
1.39
I am sometimes nominated to take control of a given task.
20 1.00 5.00
3.24
1.57
My colleagues at work are friendly.
20 1.00 5.00
3.21
1.18
I am free to do work my way where applicable.
20 1.00 5.00
2.78
1.35
I work with minimal supervision.
20 1.00 5.00
2.39
1.48
I am always recognized for a job well done.
20 1.00 5.00
3.26
1.44
I work with minimal supervision.
20 1.00 5.00
2.39
1.48
I am always recognized for a job well done.
20 1.00 5.00
3.26
1.44
My work promotes positive moral values.
20 1.00 5.00
2.96
1.49
There is freedom to implement my personal judgment at work.
20 1.00 5.00
3.38
1.33
I am allowed to offer social service outside ENHAS
20 1.00 5.00
2.39
1.48
ENHAS respects and is of service to the surrounding community.
20 1.00 5.00
3.26
1.44
I am allowed to do work outside my job description.
20 1.00 5.00
2.96
1.49
ENHAS offers me job advancement opportunities.
20 1.00 5.00
3.38
1.33
ENHAS company policies and practices are appropriate and implemented
in a transparent way.
20 1.00 5.00
2.39
1.48
My work pay is worth the time and amount of work I do.
20 1.00 5.00
3.26
1.44
I feel my job at ENHAS is secure.
20 1.00 5.00
3.18
1.49
My supervisors are friendly and approachable.
20 1.00 5.00
3.38
1.33
My supervisors are dependable and reliable.
20 1.00 5.00
3.12
1.48
My working conditions are favorable.
20 1.00 5.00
3.26
1.44
Source: Primary Data
34
Results in the table above show that employees’ pay are worth that amount if work done
(Mean = 3.26). It was further noted that some employees are recognized for jobs well
done (Mean = 3.26).
The study of the relationship between job satisfaction, job performance and resultant
work delivery has a controversial history. The Hawthorne studies, conducted in the
1930s, are often credited with making researchers aware of the effects of employee
attitudes on performance. Shortly after the Hawthorne studies, researchers began taking a
critical look at the notion that a “happy worker is a productive worker.” Most of the
earlier reviews of the literature suggested a weak and somewhat inconsistent relationship
between job satisfaction and performance.
In addition, in a more recent and comprehensive review of 301 studies, Judge, Thoresen,
Bono, and Patton (2001) found that when the correlations are appropriately corrected (for
sampling and measurement errors); the average correlation between job satisfaction and
job performance is a higher .30. In addition, the relationship between job satisfaction and
performance was found to be even higher for complex (e.g., professional) jobs than for
less complex jobs. Thus, contrary to earlier reviews, it does appear that job satisfaction is,
in fact, predictive of performance and work delivery, and the relationship is even stronger
for professional jobs.
35
4.3
Multiple Regression Analysis:
Table 4.7:
Multiple regression analysis
Independent variable
Beta
t
Sig.
R-
Adjusted df F
square
Mean Sig.
Square
square
.861
Dependant
Variable
.858
2
270.249 10.376 .000
33.574 .000
(Constant)
Internal
Employee Marketing
Job
.665
Satisfaction
2.053
.043
8.004
.000
Service
Quality
.345
a. Predictors: (Constant), Service Quality, Internal Marketing
b. Dependant Variable: Employee Job Satisfaction
Source:
Primary Data
The results show that service quality and internal marketing can significantly predict employee
job satisfaction explaining 86% of the observed variance in employee job satisfaction (Adjusted
R Square = .0.858). The significance of the F statistic of 270.249 p-value = 0.000 shows that
these variables have a strong combined predictive strength.
As exhibited in the table, the study indicated that internal marketing is the best predictor of
employee job satisfaction (Beta = 0.665, Sig. = 0.043), against service quality.
36
4.4.1 Variables and respondents gender
Table 4.8:
Variables and respondents gender
Variable
Sex
N
Internal
Marketing
Male
37
Female 53
43.929
88
Total
90
3.9493 Total
80.995
89
37
Between
4.2259 Groups
18.539
1
18.539
Female 54
Within
5.1448 Groups
6.280
89
7.056E02
Total
91
4.7712 Total
24.819
90
95
Between
3.3967 Groups
22.196
1
Within
4.0858 Groups
350.996 185
Male
Female 92
Total
Source:
ANOVA Sum
df of Mean
Squares
Square
Between
3.1813 Groups
37.066 1
37.066
Within
4.4855 Groups
Employee
Job
Satisfaction Male
Service
Quality
Mean
187 3.7357 Total
F
Sig.
74.252
.000
.449
22.196
262.724 .000
11.699
.001
1.897
373.192 186
Primary Data
Respondents of different sexes differed significantly on their perception of internal marketing (F
= 74.252, Sig. 0.000), employee job satisfaction (F = 262.724, Sig. 0.000), and service quality
(F= 11.699, Sig. 0.001), since all P-value were < 0.05 level of significance.
However, the mean values indicate that internal marketing is more influential among the females
with the mean value of 4.4855 compared to the male with a mean value of 3.1813, employee job
37
satisfaction is more influential among the females with the mean value of 5.1448 compared to
the male with a mean value of 4.2259, service quality is more influential among the females with
the mean value of 4.0858 compared to the male with a mean value of 3.3967.
4.4.2 Variables and respondents Marital Status
Table 4.9:
Variable
Internal
Marketing
Variables and respondents marital status
Marital N
Status
Married 33
ANOVA Sum
df of Mean
Squares
Square
Between
3.4481 Groups
13.090 1
13.090
Single
57
Within
4.2395 Groups
67.905
88
Total
90
3.9493 Total
80.995
89
Between
4.2698 Groups
13.015
1
11.804
89
Employee
Job
Married
33
Satisfaction
Service
Quality
Source:
Mean
F
Sig.
16.964
.000
98.132
.000
5.022
0.26
.772
13.015
Single
58
Within
5.0564 Groups
Total
91
4.7712 Total
24.819
90
Married 91
Between
3.4998 Groups
9.863
1
Single
96
Within
3.9593 Groups
363.329 185 1.964
Total
187 3.7357 Total
.133
9.863
373.192 186
Primary Data
Respondents of different Marital status differed significantly on their perceptions of Service
Quality (F = 5.022, Sig. 0.26) since the P-values was < 0.05 level of significance.
38
However, the mean values indicate that internal marketing is more influential among the single
with the mean value of 4.2395 compared to the married with a mean value of 3.4481, employee
job satisfaction is more influential among the single with the mean value of 5.0564 compared to
the married with a mean value of 4.2698, and service quality is more influential among the single
with the mean value of 3.9593 compared to the married with a mean value of 3.4998.
39
4.4.3 Variables and Respondents Age
Table 4.10:
Variable
Internal
Marketing
Variables and respondents age
Age
N
Mean
ANOVA Sum
df ofMean
Squares
Square
Between
70.658
4 17.664
2025years 25 2.8816 Groups
2630years 43 3.8881 Within
Groups
18
5.1137
3135years
10.337
85
3640years 3
80.995
89
20.177
4
5.9603 Total
40+
1
Total
90 3.9493
2630years 43 4.8732 Within
Groups
18
5.3192
3135years
Service
Quality
Source:
145.253 .000
.122
5.3333 Total
4.642
5.044
90
165.325
4
2630years 72 2.9897 Within
Groups
3135years 37 3.9329
207.867
182 1.142
3640years 31 4.9689 Total
373.192
186
40+
2
Total
91 4.7712
93.445
.000
86 5.398E02
24.819
5.5368
Between
2025years 35 3.1690 Groups
40+
Sig.
6.2857
Between
Employee
Job
Satisfaction 2025years 25 4.0725 Groups
3640years 3
F
12 6.0708
187 3.7357
Total
Primary Data
40
41.331
36.188
.000
The above tables show that there was differed significance of the variables between the different
age groups of respondents. However, the mean values indicate that the influence of internal
marketing increases in variation as the age of respondents increases, the influence of employee
job satisfaction increases in variation as the age of respondents increases, and the influence of
service quality increases in variation as the age of respondents increases. All P-values were <
0.05 level of significance.
41
CHAPTER FIVE
5.0
DISCUSSION, CONCLUSION AND RECOMMENDATIONS
5.1
Introduction
The purpose of the study was to determine: (1) the importance of internal marketing on service
quality, (2) To analyze the impact of internal marketing on employee job satisfaction, (3) To find
the relationship between employee job satisfaction and service quality, and (4) To establish the
moderating effect of employee job motivation on employee job satisfaction, internal marketing
and service quality delivery.
5.2
Discussions and Interpretation of findings
Results of the current study provide unique insight into the influence of internal marketing on
service quality. Early research on internal marketing demonstrated how employees have similar
needs to external customers (Berry, 1981), and this created the foundation for internal marketing.
Since this time, researchers have attempted to develop the concept. While Foreman and Money
(1995) conducted the first empirical test and believed their results demonstrated internal
marketing was simply good resource management, the findings suggest internal marketing may
exist to provide a foundation for external marketing and service quality.
5.2.1 The influence of Internal Marketing on Service Quality
The findings revealed a strong positive correlation between internal marketing and service
quality. This is reflected by (Armstrong & Kotler, 2002) who noted that Internal Marketing by a
service firm trains and effectively motivates its customer-contact employees and all the
42
supporting service people to work as a team to provide customer satisfaction. Service quality
continually increases as internal marketing emphasis is placed on meeting the expectations of
customers. As the client increases the amount of involvement, the more likely the individual will
recognize flaws in the service provided.
Similarly, previous research determined that internal marketing impacts service quality (Lings &
Brooks, 1998; Prasad & Steffes, 2002). The competent practice of internal marketing seems to
impel the effectiveness of external marketing programmes in their capacity for influencing
customer satisfaction.
Furthermore, internal marketing can be used to develop and maintain a service culture, and to
introduce new products and new marketing activities (Lewis, 1989). Internal marketing is
necessary to ensure that the organization attracts, selects and retains the best employees, and that
these see, appreciate and value their role in the delivering of excellent quality of service to
external customers, (Berry and Parasuraman 1991).
However, this may lead to an outcome found from Fram and McCarthy (2003, p.27), who
created the idea, product blind, where employees hold a higher view of their product in
comparison to external perceptions. This creates a mentality where employees feel a reduced
need to improve products. It is conceivable that employees may be “service blind” and believe
they provide satisfactory customer service. If an organizational member is both a customer and
employee as Berry (1981) suggested, then one possible negative outcome of internal marketing
may be the concept “service blind”.
This may result where an organizational member is satisfied as a customer, believes high levels
of service quality are provided externally, yet external customers fail to hold similar perceptions.
43
5.2.2 The impact of Internal Marketing on Employee Job Satisfaction.
Employee job satisfaction showed a significant positive correlation with internal marketing.
This is in line with many experts (Sasser and Arbeit, 1976; Berry, 1981; Greene et al.. l994:
Cahill, 1996; Hult et al., 2000) who believe that the task of internal marketing is to view the jobs
as products; and employees as customers. Gronroos (1990) too deems the focus of internal
marketing to be on how to obtain and retain customer-conscious employees. Thus, internal
marketing becomes a useful and effective metaphor for seeing the customer in every individual,
and the individual in every customer. When an organization is able to see every individual
employee as a customer, then it enhances its efforts towards employee satisfaction. (Stephen P.
Robbins, 2002) posits employee job satisfaction as an individual’s general attitude toward his or
her job, or the difference between the amount of reward workers receive and the amount they
believe they should receive. The attitude, and amount of reward mentioned there in are some of
the primary objectives internal marketing strives to perfect. Where internal marketing is in place,
the levels of employee job satisfaction tend to be high.
Ballantyne (2003) suggested internal marketing begins with the top executives and filters
through the hierarchical chain to all employees, and he further promotes the notion that
management hold higher perceptions of satisfaction that must be marketed down through the
hierarchical chain. Because of the important role that service employees play in developing
relationships with customers, employees' satisfaction is a major concern for organizations that
are interested in increasing customer loyalty. This calls for management to fully communicate
and train employees on its vision goals and planning for its employees through a well planned
internal marketing initiative.
44
A common bond between internal marketing and employee job satisfaction may be the ability for
employees to communicate with one another. Communication ensures the wants and needs of
employees are met and this is created through the development of cross-functional units. The
setting of this study provided a great example of how communication in general improves
service quality. The employees who may easily voice complaints are satisfied customers, while
this similar form of communication fails to exist externally. Therefore, while all the
aforementioned researchers discussed the importance of communication in internal marketing,
this study demonstrates their ideas.
The results of the entire study identify an organization where internal marketing may exist, but
this success has failed to translate to external customers and previous research has demonstrated
that internal marketing improves service quality (Lings & Brooks, 1998; Prasad & Steffes,
2002).
5.2.3 The relationship between employee job satisfaction and service quality.
Revealed was a significant positive correlation between employee job satisfaction and service
quality. (Nalbantian et al., 2004). Posited that organizations that select, develop, manage and
motivate their workforce to produce outstanding business results have an extraordinary
competitive advantage that others can not copy. Employee job satisfaction is important to the
success of a service firm (Gremler et al.,1994). This relates to the ability of organizations to
develop and gain a competitive advantage through an emphasis on service quality. Accordingly,
employee job satisfaction can have an elevated impact on the quality of products and services
delivered by the firm while a dissatisfied employee is more likely to offer an encounter less
desirable to both the employer and the consumer. Hence a service below expectations.
45
While, (Gronroos, 1988, 1991) believes that service quality is made up of three dimensions, that
is the “technical quality of the outcome”, the functional quality of the encounter”, and the
“company corporate image”, we also note that the above dimensions cannot be realized by any
organization without employees satisfied with their jobs. It is only good and appropriate for any
organization that aspires for service quality leadership to also put more effort towards satisfying
its employees.
5.2.4 The effect of employee job satisfaction on internal marketing and service quality
There was a significant relationship between all independent variables and employee job
satisfaction. In service organizations employees are vital part of the services offered to customers
and hence, there is a need to ensure that they can proficiently deliver the promises made to
customers in all service delivery encounters (Mishra, 2010). In literature, service encounters are
also labeled as moments of truth (Gronroos, 1990). Contact employees have undoubtedly one of
the most difficult yet rewarding jobs in the service organizations. Since the service employee
works on the boundary of the organization and performs boundary spanning roles, the
organization has high stakes on how the service employee behaves in service encounters. These
service employees are faced with multiple challenges on a daily basis ranging from technical
faults to badly behaved customers. It is the manner in which these challenges are dealt with and
the degree to which one can cope with the working environment, which distinguishes service
quality.
While interacting with the service, the customer comes not only in to contact with the contact
personnel but also with the physical facilities, the other customers and other visible elements. In
these cases, customer perceptions of service quality are affected by the physical environment as
46
well as by the behavior of the relevant service personnel (Zeithaml et al. 2006). Regardless of
whether contact points are visible or not, they constitute moments of truth – points in time during
which customers are afforded the opportunity to gauge service quality. From an Internal
Marketing perspective, many researchers have argued that by satisfying the needs of their
internal customers, firms enhance their ability to satisfy the needs of their external customers.
However, both customers and employees need to be seen as part of a virtuous circle in which
attention given to one reinforces attention given to the other. George (1990) illustrated that
relational exchanges between employees within an organization should be considered a
prerequisite for successful exchanges with external markets. The job satisfaction of the internal
customer is of critical importance as satisfaction will ultimately effect the quality of service
(Ballantyne, 1997, Heskett et al., 2008). Employees in the service encounter have an opportunity
to customize the service delivered to each customer. Customization of the service encounter adds
value to the customer’s experience of the quality of service and also contributes to the creation of
a sustainable competitive advantage.
47
5.3 Conclusions
5.3.1 The influence of Internal Marketing on Service Quality
A significant positive correlation existed between internal marketing and service quality. This
means that internal marketing strongly determines service quality. With internal marketing in
place, where service firms train and effectively motivate their employees and all the supporting
service people to work as a team to provide expected service quality. Service quality continually
increases as internal marketing emphasis is placed on meeting the expectations of customers.
Internal marketing should be used to develop and maintain a service culture, it is necessary to
ensure that the organization attracts by putting in place competitive remuneration packages and
management styles, selects employees through standard and transparent procedures and retains
the best employees through welfare, incentives, proper job description, and communication, and
that these see, appreciate and value their role in the delivering of an excellent quality of service
to external customers.
5.3.2 The impact of Internal Marketing on Employee Job Satisfaction.
It can be concluded that internal marketing has a significant positive correlation with employee
job satisfaction. This reveals that if internal marketing is emphasized, then employee job
satisfaction too is likely to be high.
Internal marketing views jobs as products; and employees as customers. It also focuses on how
to obtain and retain customer-conscious employees. When an organization is able to see every
individual employee as a customer, then it enhances its efforts towards employee job
satisfaction. Attitude and the amount of reward for employees are some of the primary objectives
48
internal marketing strives to perfect. Where internal marketing is in place, the levels of employee
job satisfaction tend to be high. Management has to fully communicate by utilizing all possible
avenues for example meetings, seminars, conferences, parties, notices and train employees on its
vision, goals and planning through a well planned internal marketing initiative.
Also employees who may easily voice complaints for example freely speak out and address their
problems to management are satisfied customers.
5.3.3 The relationship between employee job satisfaction and service quality.
With a significant positive correlation between employee job satisfaction and service quality, it is
proved that organizations that select, develop, manage and motivate their workforce to produce
outstanding business results have an extraordinary competitive advantage over others. Employee
job satisfaction has an elevated impact on the quality services delivered by an organization while
dissatisfied employees are more likely to offer an encounter less desirable to both the employer
and the consumer. Organizations that aspire for service quality leadership should put more effort
towards satisfying their employees.
5.3.4 The effect of employee job satisfaction on internal marketing and service quality
There was a significant relationship between all independent variables and employee job
satisfaction. Every service encounter is a moment of truth between the employee and the
customer. The organization has high stakes on how the service employee behaves in service
encounters. The manner in which the employee behaves, delivers a service and the degree to
which one can cope with the working environment defines service quality.
49
Management should also know that the customer comes not only into contact with the contact
personnel but also with the physical facilities, the other customers and other visible elements. In
these cases, customer perceptions of service quality are affected by the physical environment as
well as by the behavior of the relevant service personnel. By satisfying the needs of their
employees, firms enhance their ability to satisfy the needs of their customers. Employee job
satisfaction is of critical importance as satisfaction will ultimately affect the quality of service.
50
5.4 Recommendations
5.4.1 The influence of Internal Marketing on Service Quality
ENHAS management should train and effectively motivate their employees and all the
supporting service people to work as a team. This will expedite the goal of achieving the
provision of expected service quality. The quality of service will continually increase if ENHAS
puts in place internal marketing initiatives that emphasize meeting the expectations of customers.
ENHAS should also develop and maintain a service culture. This will be possible if the
organization ensures that it attracts staff by putting in place competitive remuneration packages
and management styles, selects employees through standard and transparent procedures and
retains the best employees through outstanding welfare, incentives, proper job descriptions, and
communication.
5.4.2 The impact of Internal Marketing on Employee Job Satisfaction.
ENHAS should start to view its employee’s jobs as company products; and the employees as
customers. It should focus on how to obtain and retain customer-conscious employees. This will
enhance its efforts towards having a team of satisfied employees. With proper internal marketing
initiatives in place, the levels of employee job satisfaction will be high. Management should fully
communicate to employees by utilizing all possible avenues for example meetings, seminars,
conferences, parties, notices and train employees on its vision, goals and planning through a well
planned internal marketing initiative.
51
5.4.3 The relationship between employee job satisfaction and service quality.
For ENHAS to have a great competitive advantage at service quality, it should put in place a
standard, transparent and acceptable employee selection system, develop, manage and motivate
their workforce to produce outstanding business results. In turn, employee job satisfaction will
have an elevated impact on the quality services delivered by the organization.
5.4.4 The effect of employee job satisfaction on internal marketing and service quality
Since every service encounter is a moment of truth between the employee and the customer.
ENHAS should work towards high stakes on how the service employee behaves during service
encounters. The employees’ behavior and the degree to which staff can cope with the working
environment will define the quality of service delivered.
Management should improve and invest in physical facilities and other visible elements since
customers not only come into contact with the contact personnel. By satisfying the needs of its
employees, ENHAS will enhance their ability to satisfy the needs of their customers. Hence,
ultimately affecting the quality of service.
5.5 Areas of further research
If internal marketing truly affects service quality, then its implementation methods must be
developed. One likely future direction of internal marketing research will be to better understand
the interplay between the organization, the situation and the various internal and external factors
that influence internal marketing. In particular, a better understanding of the role of reward and
motivation.
52
In addition, ongoing research will provide more in-depth understanding of the effects of internal
marketing and employee job satisfaction on service quality measures.
Greater insights on the relationship between internal marketing and service quality will assist
marketing professionals as they strive to enhance the essential people side of the business in a
highly competitive global arena.
53
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