Topic: A focused service quality, benefits, overall satisfaction and loyalty model for public aquatic centres Gary Howat, Gary Crilley and Richard McGrath Centre for Tourism and Leisure Management, School of Management, University of South Australia, Mawson Lakes Campus, South Australia, Australia Student : Oliver Pham ID: 10105013 Abstract This study supports a parsimonious range of key service quality dimensions that have a strong influence on customer loyalty at public aquatic centres using data from two major centres in Australia (n 367 and 307). Using Confirmatory factor analysis (CFA) and structural equation modelling (SEM), it was found that one of the outcome dimensions (relaxation) and two process dimensions (staffing and facility presentation) significantly influenced overall satisfaction. The parsimonious set of dimensions identified in this research could provide a common core suitable for inclusion in service quality research for a range of contexts. 1.0 Introduction In recent years, the increasing of new or refurbished public and commercial aquatic and fitness centres has brought about the competition for customers in Australia. Therefore, It is very important to retent the customers and measure customer loyalty for facility managers, because it can help the manager to improve their competitive advantage. The relationships between service quality, overall satisfaction and loyalty measures are examined at Australian public aquatic centers in this study. According to Oliver (1997) Satisfaction appears to be a combination of emotional and cognitive responses. Feeling of satisfaction and customer’s likely future support are effected by perceptions of a service quality. (Alexandris et al., 2004; Bernhardt et al., 2000; Ganesh et al., 2000; Howat et al. 1999) 2.0 Literature review 2.1 Customer Loyalty According to Soderlund (20006) customer loyalty is the level of continuity in the customer’s relationship with a brand or service provider. There are two views of loyalty: behavioral and attitudinal. The behavioural view of loyalty includes : Repeat purchasing or frequency of attendance. The duration of the customer–service provider relationship The attitudinal view of loyalty includes: Customers’ intention to repurchase, and Their willingness to recommend the service to other prospective customers. 2.2 Satisfaction According to Cole (2006) and Baker (200), the benefits or outcome of an experience can be reflected by satisfaction and other influences. Choi and Chu (2001) considered overall satisfaction as a post-service representation of the customer’s overall feelings toward a service (Choi and Chu, 2001) based on cumulative experiences with that service. Oliver (1997) maintained that the aggregated satisfaction episodes from a series of consumption experiences result in ‘overall’ satisfaction, which appears to be one determinant of loyalty. The overall satisfaction based on single consumption experience has weaker relationship with outcome variables than accumulative experiences with the same service provider. 2.3 Service Quality Service quality involves comparing a customer’s evaluation of the perceived performance of a service to their expectations (Parasuraman et al., 1988; Zeithaml et al., 2006). Research involving dimensions of service quality has been guided by the SERVQUAL instrument and its adaptations (Parasuraman et al., 1985), or the Nordic approach (Gro¨nroos 1984). The Noric approach includes two broad dimensions of service quality: the technical dimension (is what the customer receives ) and the functional dimension (is how the customer receives the service) The SERVQUAL instrument has been adapted to numerous tourismand leisure contexts including hotels, sports and leisure services (Chelladurai and Chang, 2000).It is categorized service quality attributes into five dimensions (Parasuraman et al., 1988): Responsiveness Reliability Assurance Tangibles. Empathy The first four dimensions were process dimensions (how the service is delivered). And the tangibles include the appearance of physical facilities, equipment,… 2.4 Service quality models for sport and leisure centers Nn an attempt to provide a comprehensive service-quality model for health-fitness clubs, a six dimension (31 attributes) ‘Service Quality Assessment Scale’ (SQAS) A focused service quality, benefits, overall satisfaction and loyalty model was proposed (Lam et al., 2005). 2.5 Service quality models for Australian sport and leisure centers CERM PI research program initiated in the early 1990s did not include outcome dimensions (Howat et al, 1999). This earlier CERM PI research involving aggregated data from aquatic as well as dry leisure centres yielded a threedimension model: personnel, core services, and peripheral services. 3.0 METHODOLOGY 3.1 The samples Respondents are showed in this table. Characteristic N Location Gender Age How often visit the center Member Using center 2 years or more Attend for swimming lesson Attend for lap swimming Fitness gym customer Recreational swimming Center A 307 Suburban Majority female 44 (SD 14.9) 53% (3 or more per week) 61% 65% 24% 22% 27% 35% Center B 367 Central city Majority female 33 (SB 14.2) 40% (less than once a week) 20% 63% 23% 16% 7% 8% 3.2 Questionnaire and measure The questionnaire used in this study was adapted from a service quality questionnaire designed for public sports and leisure centres (Howat et al., 2002). 3.2.1 Service quality Using the disconfirmation approach to measure service quality, customers’ expectations (E) were compared with how they perceived (P) each attribute of the service performed (Parasuraman et al., 1988;). A positively biased sixpoint interval scale, ranging from 1 (disagree) to 6 (very strongly agree) including option “not applicable” was used to record customers’ expectations and customers’ perceptions. 3.2.2 Outcomes( Benefit) Five-point interval scales ranging from 1 (very low) to 5 (very high) with ‘not applicable’ option was used to rate the outcomes. 3.2.3 Overall satisfaction Single question asking respondents to rate their overall satisfaction with the service on a seven-point Likert scale ranging from 1 (very dissatisfied) to 7 (very satisfied). The customers’ ‘overall experience’ was measured on a seven-point scale ranging from 1 (displeased) to 7 (pleased) These two measures were aggregated into the “overall satisfaction” scale used in the model with construct reliability of 0.84 (Centre A) and 0.82 (Centre B). 3.3.4 Loyalty The author used 3 items with 7-point Likert scale to measure the customer’s loyalty, and each items represents for each aspect: Recommend center, Revisit center and Visit other center. (1) “To what extent would you recommend this centre to others” using a seven point scale ranging from 1 (very strongly notrecommend) to 7 (very strongly recommend); 2)” Do you intend visiting this centreagain in the near future? “measured on a seven-point scale ranging from 1 (definitelynot) to 7 (definitely) (3)” If therewas another centre available to you, would you be likely to use it instead of this centre “also used a seven-point scale ranging from 1 (definitely not) to 7 (definitely) 4.0 Result Building on findings from exploratory factor analysis (Howat, 2007) CFA was conducted using maximum likelihood (ML) extraction in AMOS 7.0 to assess the construct reliability of the factors and to check that themodel was a satisfactory fit to the data According to Hu and Bentler (1999) and Scheiber et al (2006), the following goodnessof-fit indicators were considered as a guide to acceptable model fit: CFI and IFI > 0.95; SRMR < 0.08; and RMSEA < 0.06 4.1 Confirmatory Factor Analysis (CFA) Three process service quality dimensions (personnel, facility presentation and parking) and two outcome dimensions (relaxation and personal accomplishment) were included in CFA initially with data from center A. The overall fit of the model was acceptable for both center A and B. Although the RMSEA of center A (0.075) and center B (0.076) exceeded < 0.06, but was less than 0.08 ( acceptable by Byrne 1998). The normed chi square for Centre B (3.1) was slightly abovethe recommended maximum of 3 Standardized coefficients for all attributes exceeded 0.7 for both Centre A (Table 2) and the squared multiple correlations (SMC) were above 0.5 indicating item reliability. Correlations between each of the five dimensions (latent variables) were low to moderate for both Center ( table 3 & 4). 4.2 The Structural Equation Model (SEM) The structural model (Figure 1) was tested using maximum likelihood (ML) estimation based on data from Centre A with the AMOS 7. The five service quality dimensions validated in the CFA were included in the SEM. The overall fit of the model was reasonable to good (CFI = 0.958, IFI = 0.958, SRMR = 0.055, RMSEA = 0.059, normed chi-square = 2.1) (Table 1). Data from Centre B provided validation for the structural model. The overall fit of the model was reasonable to good (CFI = 0.951, IFI = 0.951, SRMR = 0.044, RMSEA = 0.061, normed chi-square = 2.3). For Centre A the strongest relationship was between overall satisfaction and the loyalty measure willingness to recommend with R= 0.80 and R2 = 0.65 (p < 0.01) (Figure 2). Therefore, overall satisfaction accounted for 65% of the variance explained in willingness to recommend. Overall satisfaction accounted for 25% of the variance explained in intention to revisit. There was a negative relationship between overall satisfaction and visit other center (R2= - 0.19, p < 0.05). For center B, the strongest relationship was between overall satisfaction and willingness to recommend (R = 0.76, R2=0.58, p< 0.01) (Figure 2). Therefore, overall satisfaction accounted for 58% of the variance explained in willingness to recommend. Overall satisfaction also accounted for 13% of the variance explained in intention to revisit. There was a negative relationship between overall satisfaction and visit other center (R2=- 0.17). The personnel dimension has strongest relationship with overall satisfaction (R = 0.33) for Centre A followed by facility presentation (R = 0.26). The results were reversed for Centre B with facility presentation has the strongest relationship with overall satisfaction (R = 0.34) followed by personnel (R = 0.23). The relaxation dimension was also positively related to overall satisfaction for Centre A (R = 0.19), and Centre B (R = 0.16) (Figure 2). 5.0 Discussion and Conclusion The major aim of this study was to identify a parsimonious set of core service quality dimensions that have a significant influence on customer loyalty at public aquatic centres. Two process dimensions (personnel and facility presentation) and one outcome dimension (relaxation) exerted significant on overall satisfaction, which in turn strongly influenced three loyalty measures, in particular willingness to recommend the centre to others. The links between overall satisfaction customer loyalty were far stronger than the direct links between the service-quality dimensions and the three loyalty variables This indicates a mediating role of overall satisfaction between service quality and customer. This study indicated that members and non-members did not vary significantly on either overall satisfaction or willingness to recommend the centre to others. Our model indicates that outcomes that most directly influence overall satisfaction This finding reinforces the importance of core service quality dimensions as management priorities. 6.0 Limitation There are three limitations in this study: A limitation of this study is that it included data for only two Australian public aquatic centres. A second limitation is the use of two items to capture the overall satisfaction and single items for each of the three loyalty constructs. A third limitation is that comprehensive service quality reviews require examination of additional attributes to assist managers improve the service. Appendices