A

Summer Training Report
On

RELATIONSHIP BETWEEN SERVICE QUALTY


IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR
THE
DEGREE OF MASTER OF BUSINESS ADMINISTRATION
(2012-2014)






SUBMITTED TO:- SUBMITTED BY:-

MRS.VEERPAL KAUR GURKHETPAL BANSAL
HOD ROLL NO:-1273889
BRANCH :- MBA
CERTIFICATE OF SUPERVISIOR


It is certified that Gurkhetpal Bansal, ROLL NO 1273889 student of
MBA Semester, has completed the project “An Analysis of the
Relationship between Service Quality” under my guidance. To the best of
my knowledge his work is original. I recommend his project for
evaluation.



Gurkhetpal Bansal







DECLARATION


I, hereby declare that the research project report titled ―TO STUDY An Analysis of the
Relationship between Service Quality” IN OM GRC INFOTECH PVT. LTD”. Is
my own original research work and this report has not been submitted to my University/Institute
for the award of any professional degree or diploma.









Date: - GURKHETPAL BANSAL


Place:- 1273889










ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an opportunity to thank all the persons who
contributed directly or indirectly for the successful completion of the project report, ―Service
Quality ‖of Om Grc InfoTech Pvt Ltd.

First of all I am extremely thankful to my college PTU GZS CAMPUS for providing me with
this opportunity and for all its cooperation and contribution. I also express my gratitude to my
Project mentor and guide Ms Bindu Rana(in charge of training dept.). I am highly thankful to
our respected project guide for giving me the encouragement and freedom to conduct my project.
I am also grateful to all my faculty members for their valuable guidance and suggestions for my
entire study.
I would also like to thank the Om GRC team for extending their valuable time and cooperation.




Gurkhetpal Bansal

Roll No.1273889
















PREFACE


As a part of the Two years degree course of M.B.A, we need to undergo Summer Training for 6
weeks in the beginning of 3
rd
Semester. Practical Summer Training is significantly different from the
college studies .College Studies are more oriented towards the theory. But in our training period we are
more involved in the Practical works. We work as if we are M.B.A graduates in the field and if that
work is given to us how we have tackled it i.e., the main objective of the Practical Summer Training is
to make us well conversant with the Practical Aspects of the Management profession.

I was given the project on ―TO STUDY THE An Analysis of the Relationship
between Service Quality” IN OM GRC INFOTECH Pvt.ltd” in Chandigarh circle in INDIA.

I hope that the conclusions arrived at and the recommendations will help the company to increase the
revenue and help in providing better services to the customers.











EXECUTIVE SUMMARY



The project work entitled a STUDY ON SERVICE QUALTY with special
reference to OM GRC Infotech , Chandigarh is mainly conducted to identify the
factors which will motivate the employees and the organizational functions in OM
GRC Infotech , Chandigarh.
Management‘s basic job is the effective utilization of human resources for
achievements of organizational objectives. The personnel management is
concerned with organizing human resources in such a way to get maximum output
to the enterprise and to develop the talent of people at work to the fullest
satisfaction.Service Quality implies that one person, in organization context a
manager, includes another, say an employee, to engage in action by ensuring that a
channel to satisfy those needs and aspirations becomes available to the person. In
addition to this, the strong needs in a direction that is satisfying to the latent needs
in employees and harness them in a manner that would be functional for the
organization.
Service Quality is one of the major issues faced by every organization. It is the
major task of every manager to motivate his subordinates or to create the ‗will to
work‘ among the subordinates. It should also be remembered that a worker may be
immensely capable of doing some work; nothing can be achieved if he is not
willing to work. A manager has to make appropriate use of motivation to enthuse
the employees to follow them. Hence this studies also focusing on the service
qualty among the employees of OM GRC Infotech , Chandigarh.
The data needed for the study has been collected from the employees through
questionnaires and through direct interviews. Analysis and interpretation has been
done by using the statistical tools and data‘s are presented through tables and
charts.







TABLE OF CONTENTS



Sr. No. Text Page No.

1) Acknowledgement 4
2) Introduction 22
 Service quality 22
 SERVICE QUALITY Model 23
 Customer Loyalty 27
3) Need of the study 35
4) Review of Literature 38
5) Objectives of the project 47
6) Scope of the project 51
7) Research Methodology 57
8) Analysis and interpretation 65
9) Conclusion 71
10) Annexure 77
11) Bibliography 85
12) Questionnaire 89








Information technology




The Information technology industry in India has gained a brand identity as a knowledge
economy due to its IT and ITES sector. The IT–ITES industry has two major components: IT
Services and business process outsourcing (BPO). The growth in the service sector in India has
been led by the IT–ITES sector, contributing substantially to increase in GDP, employment, and
exports. The sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.5%
in FY2012.. According to NASSCOM, the IT–BPO sector in India aggregated revenues
of US$100 billion in FY2012, where export and domestic revenue stood at US$69.1 billion
and US$31.7 billion respectively, growing by over 9%.
Bangalore is leading IT exporter. Export dominate the IT–ITES industry, and constitute about
77% of the total industry revenue. Though the IT–ITES sector is export driven, the domestic
market is also significant with a robust revenue growth. The industry‘s share of total Indian
exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in
FY2012. According to Gartner, the "Top Five Indian IT Services Providers" are Tata
Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies.
The industry continues to be a net employment generator - expected to add 230,000 jobs in
FY2012. Generally dominant player in the global outsourcing sector. However, the sector
continues to face challenges of competitiveness in the globalized world, particularly from
countries like China and Philippines. The recent global financial crises have deeply impacted the
Indian IT companies as well as global companies. As a result hiring has dropped sharply, and
employees are looking at different sectors like the financial service, telecommunications, and
manufacturing industries, which have been growing phenomenally over the last few
years. India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata
Group in partnership with Burroughs. The first software export zone SEEPZ was set up here way
back in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's
software exports happened out of SEEPZ, Mumbai in 80s.

The Indian Government acquired the EVS EM computers from the Soviet Union, which were
used in large companies and research laboratories. In 1968 Tata Consultancy Services—
established in SEEPZ, Mumbai by the Tata Group—were the country's largest software
producers during the 1960s. As an outcome of the various policies of Jawaharlal Nehru the
economically beleaguered country was able to build a large scientific workforce, third in
numbers only to that of the United States of America and the Soviet Union. On 18 August 1951
the minister of education Maulana Abul Kalam Azad, inaugurated the Indian Institute of
Technology at Kharagpur in West Bengal. Possibly modeled after the Massachusetts Institute of
Technology these institutions were conceived by a 22 member committee of scholars and
entrepreneurs under the chairmanship of N. R. Sarkar.

Relaxed immigration laws in the United States of America attracted a number of skilled Indian
professionals aiming for research. By 1960 as many as 10,000 Indians were estimated to have
settled in the US. By the 1980s a number of engineers from India were seeking employment in
other countries. In response, the Indian companies realigned wages to retain their experienced
staff.











Big Five IT Services companies .


Firm Revenues Employees Fiscal Year India Headquarters
TCS
$10.17
billion
254,076 2012 Mumbai
Cognizant Technology
Solutions
$7.05
billion
185,045 2012 Chennai
Wipro
$5.73
billion
140,569 2012 Bangalore
Infosys
$6.69
billion
153,761 2012 Bangalore
HCL Technologies
$4.3
billion
85,335 2012 Noida






Major IT Hubs
Rank City Description
1 Bangalore
Popularly known as the Silicon Valley of India and leading software
exporter from India. Bangalore is considered to be a global
technology hub of India.
2 Chennai
Chennai is the second largest exporter of IT and ITES of India, and is
the BPO hub of India. Chennai has the largest operations centers
of TCS, andCognizant.
3 Hyderabad
Hyderabad is a major it hub in India which is also known as
Cyberabad which consists of many Multinational
corporation companies such
as Google,Facebook, Microsoft, Amazon and Electronic Arts, etc.
4 Mumbai
The Financial capital of India, but recently many IT companies have
established offices.
5 Delhi
The National Capital Region comprising Delhi, Gurgaon and Noida
are clusters of software development.
6 Pune
Major Indian and International Firms present in Pune. Pune is also C-
DAC Head-Quarter.
7 Kolkata
One of the largest cities in India, Kolkata contributes significantly to
IT exports. IBM has second largest headcount after Bangalore,
Cognizant has second largest headcount after Chennai and TCS has
third largest headcount after Chennai & Mumbai. Other significant
players here are Wipro and Capgemini while other biggies have also
opened shop here except Infosys.
8 Thiruvanathapuram
The capital of Kerala, now houses all major IT companies including
Oracle, TCS, Infosys, and contributes in IT export of India

Company Profile:


GRC InfoTech Pvt. Ltd., is professional web development, Industrial Training and Consultancy
company based in Chandigarh (India). We focus the needs of our clients to provide 100%
satisfaction. Our company is involved in providing web design and web development services,
software design and development and Search Engine Optimization. We are prepared and
educated to better provide a face for your business on the Internet. GRC India based Website and
Development Company in India providing job oriented software training and Live projects for
MBA , MCA, BCA, B-TECh, M.TECH, MSC-IT and BSC-IT Students. Industrial Training
Services in:
 Six Weeks Industrial Training for B.Tech and MBA Students.
 Six months Industrial Training for B.Tech and MBA Students.
GRC is providing education & Training to the B-Tech students and MBA students evaluate them
during their 6 weeks and 6 months and then shortlist the deserving students for recruitment in
Our Company and other companies in India. Diversified range of latest technologies from
software (ASP.NET, Java, C/C++,Php ,CCNA and Networking).
Development Services in:
 Web Designing
 Web Development
 Search Engine Optimization
 Search Engine Marketing
 Google Indexing




WebSites made by OM GRC InfoTech Pvt Ltd:

 www.icseindia.org
 www.dpsyamunanagar.com
 www.gowthcatalyst.in
 www.pacl.clanteam.com
 www.aryanworldwideholidays.com
 www.frenzytechnologies.com
 www.zevraatjewellry.com
 www.thesinglacomputers.com
 www.bittusatoz.com
 www.pbplaygame.com

Languages &Development Environment :
1. C
2. C++
3. .Net
4. JAVA
5. PHP





In computing, C is a general-purpose programming language initially developed by Dennis
Ritchie between 1969 and 1973 at AT&T Bell Labs. Like most imperative languages in the
ALGOL tradition, C has facilities for structured programming and allows lexical variable scope
and recursion, while a static type system prevents many unintended operations. Its design
provides constructs that map efficiently to typical machine instructions, and therefore it has
found lasting use in applications that had formerly been coded in assembly language, most
notably system software like the Unix computer operating system.

C is one of the most widely used programming languages of all time,and C compilers are
available for the majority of available computer architectures and operating system.
The initial development of C occurred at AT&T Bell Labs between 1969 and 1973 according to
Ritchie, the most creative period occurred in 1972. It was named "C" because its features were
derived from an earlier language called "B", which according to Ken Thompson was a stripped-
down version of the BCPL programming language.

The origin of C is closely tied to the development of the UNIX operating system, originally
implemented in assembly language on a PDP-7 by Ritchie and Thompson, incorporating several
ideas from colleagues. Eventually they decided to port the operating system to a PDP-11. B's
inability to take advantage of some of the PDP-11's features, notably byte addressability, led to
the development of an early version of C.


The original PDP-11 version of the UNIX system was developed in assembly language. By
1973, with the addition of strict types, the C language had become powerful enough that most of
the UNIX kernel was rewritten in C. This was one of the first operating system kernels
implemented in a language other than assembly. (Earlier instances include the Multics system
(written in PL/I), and MCP (Master Control Program) for the Burroughs B5000 written in
ALGOL in 1961.) Circa 1977, further changes to the language were made by Ritchie and
Stephen C. Johnson to facilitate portability of the Unix operating system.
Johnson's Portable C Compiler served as the basis for several implementations of C on new
platforms. Many later languages have borrowed directly or indirectly from C,
including C#, D, Go, Rust, Java, JavaScript, Limbo, LPC, Perl, PHP,Python, and Unix's C shell.
The most pervasive influence on these languages (excluding Python) has been syntactical, and
they tend to combine the recognizable expression and statement syntax of C with underlying type
systems, data models, and semantics that can be radically different. C++ started as a preprocessor
for C and is currently nearly a superset of C.

C is an imperative (procedural) language. It was designed to be compiled using a relatively
straightforward compiler, to provide low-level access to memory, to provide language constructs
that map efficiently to machine instructions, and to require minimal run-time support. C was
therefore useful for many applications that had formerly been coded in assembly language, such
as in system programming.











C++ is one of the most popular programming languages and is implemented on a wide variety of
hardware and operating system platforms. As an efficient compiler to native code, its application
domains include systems software, application software, device drivers, embedded software,
high-performance server and client applications, and entertainment software such as video
games.Several groups provide both free and proprietary C++ compiler software, including the
GNU Project, LLVM, Microsoft, Intel and Embarcadero Technologies. C++ has greatly
influenced many other popular programming languages, most notably Cand Java. Other
successful languages such as Objective-C use a very different syntax and approach to adding
classes to C.

Creater of c++

Bjarne Stroustrup, a Danish and British trained computer scientist, began his work on "C with
Classes" in 1979.The idea of creating a new language originated from Stroustrup's experience in
programming for his Ph.D. thesis. Stroustrup found that Simula had features that were very
helpful for large software development, but the language was too slow for practical use, while
BCPL was fast but too low-level to be suitable for large software development. When Stroustrup
started working in AT&T Bell Labs, he had the problem of analyzing the UNIX kernel with
respect to distributed computing. Remembering his Ph.D. experience, Stroustrup set out to
enhance the C language with Simula-like features. C was chosen because it was general-purpose,
fast, portable and widely used. Besides C and Simula, some other languages that inspired him
were ALGOL 68, Ada, CLU and ML. At first, the class, derived class, strong typing, inlining,
and default argument features were added to C via Stroustrup's C++ to C compiler, Cfront. The
first commercial implementation of C++ was released on 14 October 1985.

The definition of an extensive standard library makes a difference to the way C++ concepts can
be presented. As before, this book presents C++ independently of any particular implementation,
and as before, the tutorial chapters present language constructs and concepts in a ‗‗bottom up‘‘
order so that a construct is used only after it has been defined. However, it is much easier to use a
well-designed library than it is to understand the details of its implementation. Therefore, the
standard library can be used to provide realistic and interesting examples well before a reader
can be assumed to understand its inner workings. The standard library itself is also a fertile
source of programming examples and design techniques.











The domain name net is a generic top-level domain (gTLD) used in the Domain Name System of
the Internet. The name is derived from network, indicating its originally intended purpose was
for organizations involved in networking technologies, such as Internet service providers and
other infrastructure companies. However, restrictions were never enforced and the domain is
now a general purpose name space. It is still popular with network operators, and is often treated
as an alternative to com.

net is one of the original top-level domains (the other five being com, edu, gov, mil, and org)
despite not being mentioned in RFC 920, having been created in January 1985. As of 2011, it is
the third most popular top-level domain, after .com and .de.

Verisign, the operator of net after acquiring Network Solutions, held an operations contract that
expired on 30 June 2005. ICANN, the organization responsible for domain management, sought
proposals from organizations to operate the domain upon expiration of the contract. Verisign
regained the contract bid, and secured its control over the net registry for another six years. On
30 June 2011, the contract with Verisign was automatically renewed for another six years. This
is because of a resolution approved by the ICANN board, which states that renewal will be
automatic as long as Verisign meets certain ICANN requirements.








Java is a general-purpose, concurrent, class-based, object-oriented computer programming
language that is specifically designed to have as few implementation dependencies as possible. It
is intended to let application developers "write once, run anywhere" (WORA), meaning that code
that runs on one platform does not need to be recompiled to run on another. Java applications are
typically compiled to bytecode (class file) that can run on any Java virtual machine (JVM)
regardless of computer architecture. Java is, as of 2012, one of the most popular programming
languages in use, particularly for client-server web applications, with a reported 10 million users.
Java was originally developed by James Gosling at Sun Microsystems (which has since merged
into Oracle Corporation) and released in 1995 as a core component of Sun Microsystems' Java
platform. The language derives much of its syntax from C and C++, but it has fewer low-level
facilities than either of them.
The original and reference implementation Java compilers, virtual machines, and class libraries
were developed by Sun from 1991 and first released in 1995. As of May 2007, in compliance
with the specifications of the Java Community Process, Sun relicensed most of its Java
technologies under the GNU General Public License. Others have also developed alternative
implementations of these Sun technologies, such as the GNU Compiler for Java and GNU
Classpath.





PHP development began in 1994 when the developer Rasmus Lerdorf wrote a series of Common
Gateway Interface (CGI) Perl scripts, which he used to maintain his personal homepage. The
tools performed tasks such as displaying his résumé and recording his web traffic. He rewrote
these scripts in C for performance reasons, extending them to add the ability to work with web
forms and to communicate with databases and called this implementation "Personal Home
Page/Forms Interpreter" or PHP/FI. PHP/FI could be used to build simple, dynamic web
applications. Lerdorf initially announced the release of PHP/FI as "Personal Home Page Tools
(PHP Tools) version 1.0" publicly to accelerate bug location and improve the code, on the
comp.infosystems.www.authoring.cgi Usenet discussion group on June 8, 1995. This release
already had the basic functionality that PHP has today. This included Perl-like variables, form
handling, and the ability to embed HTML. The syntax was similar to Perl but was more limited
and simpler, although less consistent. A development team began to form and, after months of
work and beta testing, officially released PHP/FI 2 in November 1997.
Zeev Suraski and Andi Gutmans rewrote the parser in 1997 and formed the base of PHP 3,
changing the language's name to the recursive acronym PHP: Hypertext Preprocessor.
Afterward, public testing of PHP 3 began, and the official launch came in June 1998. Suraski and
Gutmans then started a new rewrite of PHP's core, producing the Zend Engine in 1999.






OBJECTIVES OF STUDY



The main objective of the study is first to gain some practical knowledge regarding functioning
of the organizations which is very necessary to fully understand the primary functions & hence it
fulfill the purpose of the Summer Internship under M.B.A course.


The other objectives were:

1. To study the importance of Service quality.
2. To study the roles of Service quality.
3. To study the process and functions of Service quality.
4. To study the process, purpose, principle, functions of Service Quality.
5. To know the challenges in Service quality.















INTRODUCTION


SERVICE QUALITY

What do we mean when we speak of service quality? Company personnel need a common understanding
in order to be able to address such issues as the measurement of service quality, the identification of
causes of service quality shortfalls, and the design and implementation of corrective actions. Service
quality has been defined by experts in various ways as: 'Service Quality is the difference between
customers' expectations for service performance prior to the service encounter and their perceptions of the
service received. According to Gefan „Service quality is the subjective comparison that customers make
between the qualities of service that they want to receive and what they actually get.'

Parasuraman says, 'Service quality is determined by the differences between customer's expectations
of services provider's performance and their evaluation of the services they received.

Service quality is 'the delivery of excellent or superior service relative to customer expectations
Service quality is recognized as a multidimensional construct. While the number of dimensions
Often varies from researcher to researcher, there is some

The most popular dimensions of service quality—feature five dimensions: tangibles reliability,
responsiveness, empathy , and assurance


In the case of services, because customers are often either direct observers of the production
process or active participants, how the process is performed also has a strong influence on the
overall impression of the quality of service. A well-performed service encounter may even
overcome the negative impression caused by poor technical quality as well as generate positive
word-of-mouth, particularly if customers can see that employees have worked very hard to
satisfy them in the face of problems outside their control. Employees are part of the process,
which connects with the customer at the point of sale, and hence employees remain the key to
success at these service encounters or ―moments of truth‖. It is these encounters with customers
during a service that are the most important determinants of overall customer satisfaction, and a
customer‘s experience with the service will be defined by the brief experience with the firm‘s
personnel and the firm‘s systems.
It is very important to do the service right the first time. In case a service problem does crop up,
by resolving the problem to the customer‘s satisfaction, the company can significantly improve
customer retention. However, companies fare best when they prevent service problems
altogether and fare worst when service problems occur and the company either ignores them or
does not resolve them to the customer‘s satisfaction.
Performing the service accurately is perhaps the most important factor in service quality
excellence. The cost of performing the service inaccurately includes not only the cost of redoing
the service but also the cost associated with negative word-of-mouth generated by displeased
customers. In case of services, the factory is the field. Again, services are intangible and hence
the criteria for flawless services are more subjective than the criteria for defect-free tangible
goods. Hence for most services, customers‟ perceptions of whether the service has been
performed correctly, and not provider-established criteria, are the major determinants of
reliability.



PERSPECTIVES ON SERVICE QUALITY
The word quality means different things to people. David Garvin identifies five perspectives on quality.
1. The transcendent view of quality is synonymous with innate excellence: a mark of uncompromising
standards and high achievement. This viewpoint is often applied to the performing and visual arts. It argues
that people learn to recognize quality only through the experience gained from repeated exposure. From a
practical standpoint, however, suggesting that managers or customers will know quality when they see it is
not very helpful.
2. The product based approach sees quality as a precise and measurable variable. Differences in quality,
it argues; reflect differences in the amount of an ingredient or attribute possessed by the product. Because
this view is totally objective, it fails to account for differences in the tastes, needs, and preferences of
individual customers (or even entire market segments).
3. User based definitions start with the premise that quality lies in the eyes of beholder. These
definitions equate quality with maximum satisfaction. This subjective, demand oriented perspective
recognizes that different customers have different wants and needs.
4. The manufacturing based approach is supply based and is concerned primarily with engineering
and manufacturing practices. (In services, we would say that quality is operations driven.) It focuses
on conformance to internally developed specifications, which are often driven by productivity and
cost containment goals.
5. Value based definitions define quality in terms of value and price. By considering the tradeoff
between performance (or conformance) and price, quality comes to be defined as ―affordable excellence.‖

THE SERVICE QUALITY MODEL





THE GAPS IN THE MODEL

Gap 1: Customer Expectations – Management Perceptions Gap
Gap 2: Management Perceptions - Service Quality Specifications Gap
Gap 3: Service Quality Specifications - Service Delivery Gap
Gap 4: Service Delivery - External Communications Gap
Gap 5: Expected Service - Perceived Service Gap (or the Service Performance Gap)

HOW TO FULFILL THE GAPS?
CUSTOMER EXPECTATIONS - MANAGEMENT PERCEPTIONS GAP
• Collect data on customer expectations
• Relate customer data to overall service strategy
• Increase management contact with customers
• Increase internal communications
• Track performance on satisfaction

INAPPROPRIATE QUALITY SERVICE STANDARDS
• Leadership commitment
• ―Can‘t be done‖ - create possibilities
• Standardize tasks
• Goal setting - based on service goals



THE SERVICE-PERFORMANCE GAP

• Provide data on performance, on definition of standards for excellent service
• Provide opportunity to change and to grow
• Provide training - educate employees about customers
• Harmonize roles - define in customer service terms
• Develop team environment - work together
• Empower people to solve problems
• Provide support to employees to create high performance service

THE PROMISE-DELIVERY GAP
• Break down barriers between departments
• Communicate freely
• Understand and mentor internal customers
• Standardize and communicate policies and procedures
• Communicate standards, policies and procedures to customers
• Emphasize primary characteristics
• Manage customer expectations

EXPECTED SERVICE - PERCEIVED SERVICE GAP
• This gap is the result of the other gaps
• This is the gap the customer notices
• Feedback on this gap (complaints) is diagnostic of the other gaps
• Here is where we obtain information that provides the imperative for improvement.
• Proactively seeking feedback here is essential to improvement

DESCRIPTION OF SERVQUAL

The SERVQUAL method from Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry is a
technique that can be used for performing a gap analysis of an organization's service quality
performance against customer service quality needs.
SERVQUAL is an empirically derived method that may be used by a services organization to improve
service quality. The method involves the development of an understanding of the perceived service
needs of target customers. These measured perceptions of service quality for the organization in
question, are then compared against an organization that is "excellent". The resulting gap analysis may
then be used as a driver for service quality improvement.
SERVQUAL takes into account the perceptions of customers of the relative importance of service
attributes. This allows an organization to prioritize. And to use its resources to improve the most
critical service attributes.
The data are collected via surveys of a sample of customers. In these surveys, these customers respond
to a series of questions based around a number of key service dimensions.
The methodology was originally based around 5 key dimensions:

 Tangibles. Appearance of physical facilities, equipment, personnel, and communication
materials.
 Reliability. Ability to perform the promised service dependably and accurately.
 Responsiveness. Willingness to help customers and provide prompt service.
 Assurance. Knowledge and courtesy of employees and their ability to convey trust and
confidence.
 Empathy. The firm provides care and individualized attention to its customers.


This has been adapted later by some to cover:
 Tangibles. Appearance of physical facilities, equipment, personnel, and communication
materials.
 Reliability. Ability to perform the promised service dependably and accurately.
 Responsiveness. Willingness to help customers and provide prompt service.
 Competence. Possession of required skill and knowledge to perform service.
 Courtesy. Politeness, respect, consideration and friendliness of contact personnel.
 Credibility. Trustworthiness, believability, honesty of the service provider.
 Feel secure. Freedom from danger, risk, or doubt.
 Access. Approachable and easy of contact.
 Communication. Listens to its customers and acknowledges their comments. Keeps customers
informed. In a language which they can understand.
 Understanding the customer. Making the effort to know customers and their needs.

ORIGIN OF SERVQUAL HISTORY

The authors conducted a qualitative study, from which they concluded that customers ranked the
importance of two SERVQUAL dimensions consistently. Regardless of service industry. Reliability is
the most important contributing factor to service quality and tangibles is the least important.

APPLICATIONS OF SERVQUAL
 SERVQUAL is widely used within service industries to understand the perceptions of target
customers regarding their service needs. And to provide a measurement of the service quality of
the organization.
 SERVQUAL may also be applied internally to understand employees' perceptions of service
quality. With the objective of achieving service improvement.




STEPS IN SERVQUAL

The method essentially involves conducting a sample survey of customers so that the perceived
service needs are understood. And for measuring their perceptions of service quality for the
organization.
Customers are asked to answer numerous questions within each dimension that determines:
 The relative importance of each attribute.
 A measurement of performance expectations that would relate to an "excellent" company.
 A measurement of performance for the company in question.
This provides an assessment of the gap between desired and actual performance, together with a
ranking of the importance of service criteria. This allows an organization to focus it resources.


STRENGTHS OF SERVQUAL

Most users would agree that a comprehensive and thorough examination of service needs and service
quality provides an invaluable approach to improving service quality. SERVQUAL provides detailed
information about:
 Customer perceptions of service (a benchmark established by your own customers)
 Performance levels as perceived by customers
 Customer comments and suggestions
 Impressions from employees with respect to customers expectations and satisfaction




DISADVANTAGES OF SERVQUAL

There have been a number of studies that doubt the validity of the 5 dimensions. And of the uniform
applicability of the method for all service sectors. According to an analysis by Thomas P. Van Dyke,
Victor R. Prybutok, and Leon A. Kappelman, it appears that the use of difference scores in calculating
SERVQUAL contributes to problems with the reliability, discriminant validity, convergent validity,
and predictive validity of the measurement. These findings suggest that caution should be exercised in
the use of SERVQUAL scores and that further work is needed in the development of measures for
assessing the quality of information services.

ASSUMPTIONS OF SERVQUAL CONDITIONS

 The results of market surveys are accurate. The validity of the model is based around the results of
empirical studies. A number of academics have since performed further empirical studies that appear
to contradict some of the original findings.
 Customer needs can be documented and captured, and they remain stable during the whole
process.
CUSTOMER LOYALTY
Customer Loyalty in general is the behavior which clients exhibit when they make frequent repeat
purchases of a brand.
In strategic marketing, customer loyalty is a business model in which company resources are
employed so as to increase the loyalty of customers and other stakeholders in the expectation that
corporate objectives will be met or surpassed. A typical example of this type of model is: quality of
product or service leads to customer satisfaction, which leads to customer loyalty, which leads to
profitability.
A fundamental assumption of loyalty models is that keeping existing customers is less expensive than
acquiring new ones. According to Buchanan and Gilles (1990), the increased profitability associated
with customer retention efforts occurs because:
 The cost of acquisition occurs only at the beginning of a relationship: the longer the relationship,
the lower the amortized cost.
 Account maintenance costs decline as a percentage of total costs (or as a percentage of revenue).
 Long term customers tend to be less inclined to switch and also tend to be less price sensitive. This
can result in stable unit sales volume and increases in dollar-sales volume.
 Long term customers may initiate free word of mouth promotions and referrals.
 Long term customers are more likely to purchase ancillary products and high-margin supplemental
products.
 Long term customers tend to be satisfied with their relationship with the company and are less
likely to switch to competitors, making market entry or competitors' market share gains difficult.
 Regular customers tend to be less expensive to service because they are familiar with the processes
involved, require less "education," and are consistent in their order placement.
 Increased customer retention and loyalty makes the employees' jobs easier and more satisfying. In
turn, happy employees feed back into higher customer satisfaction in a virtuous circle.

CUSTOMER LOYALTY FACTORS


The term customer loyalty is used to describe the behavior of repeat customers, as well as those that
offer good ratings, reviews, or testimonials. Some customers do a particular company a great service
by offering favorable word of mouth publicity regarding a product, telling friends and family, thus
adding them to the number of loyal customers. However, customer loyalty includes much more. It is a
process, a program, or a group of programs geared toward keeping a client happy so he or she will
provide more business.
Customer loyalty can be achieved in some cases by offering a quality product with a firm guarantee.
Customer loyalty is also achieved through free offers, coupons, low interest rates on financing, high
value trade-ins, extended warranties, rebates, and other rewards and incentive programs. The ultimate
goal of customer loyalty programs is happy customers who will return to purchase again and persuade
others to use that company's products or services. This equates to profitability, as well as happy
stakeholders.
Customer loyalty may be a one-time program or incentive, or an ongoing group of programs to entice
consumers. Buy-one-get-one-free programs are very popular, as are purchases that come with rebates
or free gifts. Another good incentive for achieving customer loyalty is offering a risk free trial period
for a product or service. Also known as brand name loyalty, these types of incentives are meant to
ensure that customers will return, not only to buy the same product again and again, but also to try
other products or services offered by the company.
Excellent customer service is another key element in gaining customer loyalty. If a client has a
problem, the company should do whatever it takes to make things right. If a product is faulty, it should
be replaced or the customer's money should be refunded. This should be standard procedure for any
reputable business, but those who wish to develop customer loyalty on a large-scale basis may also go
above and beyond the standard. They may offer even more by way of free gifts or discounts to appease
the customer.
TEN TIPS TO BUILD CUSTOMER LOYALTY
The key to a successful business is a steady customer base. After all, successful businesses typically
see 80 percent of their business come from 20 percent of their customers. Too many businesses neglect
this loyal customer base in pursuit of new customers. However, since the cost to attract new customers
is significantly more than to maintain your relationship with existing ones, your efforts toward
building customer loyalty will certainly payoff.
Here are ten ways to build customer loyalty:
1. Communicate. Whether it is an email newsletter, monthly flier, a reminder card for a tune up, or a
holiday greeting card, reach out to your steady customers.
2. Customer Service. Go the extra distance and meet customer needs. Train the staff to do the same.
Customers remember being treated well.
3. Employee Loyalty. Loyalty works from the top down. If you are loyal to your employees, they
will feel positively about their jobs and pass that loyalty along to your customers.
4. Employee Training. Train employees in the manner that you want them to interact with
customers. Empower employees to make decisions that benefit the customer.
5. Customer Incentives. Give customers a reason to return to your business. For instance, because
children outgrow shoes quickly, the owner of a children‘s shoe store might offer a card that makes
the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has
seen him regularly for five years.
6. Product Awareness. Know what your steady patrons purchase and keep these items in stock. Add
other products and/or services that accompany or compliment the products that your regular
customers buy regularly. And make sure that your staff understands everything they can about your
products.
7. Reliability. If you say a purchase will arrive on Wednesday, deliver it on Wednesday. Be reliable.
If something goes wrong, let customers know immediately and compensate them for their
inconvenience.
8. Be Flexible. Try to solve customer problems or complaints to the best of your ability. Excuses —
such as "That's our policy" — will lose more customers then setting the store on fire.
9. People over Technology. The harder it is for a customer to speak to a human being when he or she
has a problem, the less likely it is that you will see that customer again.
10. Know Their Names. Remember the theme song to the television show Cheers? Get to know the
names of regular customers or at least recognize their faces.




CAN CUSTOMER LOYALTY BE BOUGHT?
A mere 5 % increase in customer retention can result in a 75% increase in customer value according to
Fred Reichheld, author of "Loyalty Rules". A great reason to pay attention to loyalty. Here are more
benefits:
 grab more sales from existing customer base
 help spread word of mouth marketing
 identify product/service problems earlier
 improve profitability
 provide a competitive advantage
8 WAYS FOR BUSINESS TO EARN CUSTOMER LOYALTY
Company Loyalty First: Customer loyalty is a 2-way street. How can you expect customer loyalty
if you don't practice company loyalty? Are you loyal to your best customers or are you giving
discounts and extra attention to new customers? Loyalty is about being fanatical with devotion to your
best customers.
Employee Loyalty Second: Any customer loyalty program must factor in the front line of the
business. It's the point of contact between customer and employee that sets the foundation of repeat
business. "Hire for attitude, train for skill. Hire nice people. As a customer, I'm always amazed when
small businesses put unfriendly, surly people in front of their customers. Loyalty is often the direct
result of the relationships your employees build and maintain," says Ben McConnell of marketing
consulting firm Wabash & Lake and co-author of "Creating Customer Evangelists."
Quench the Thirst: Consumers are thirsty for trust following corporate scandals and the general
distrust of corporations. If your business is not trustworthy, your odds of establishing customer loyalty
are diminished. Establish good business ethics and practices.
Finding Loyalty: Any small business wishing to start a customer loyalty initiative needs first to
identify important customers and understand their customer's behaviors. Use whatever tools, software,
and data-mining techniques to locate your repeat, regular customers. Equally vital is to know your
profit margins. Don't offer discounts until you know the impact on your bottom line.
Reward Customer Retention: The key metric to track in your customer loyalty program is customer
retention. How many customers are defecting? How many clients are retained? Measuring customer
retention is half the battle. Your staff must be rewarded for retention. Your small business doesn't have
to be like big corporations who talk retention but reward sales people for bringing in new customers
only.
Use Customer-centric Language: It's easy to think you put the customer first. However, take a closer
look at your marketing communications. How many times does your literature refer to "we" the
company versus "you" the customer? Go back and speak from the customer's perspective.
Bolster Customer Communications: Part of customer loyalty and retention are maintaining regular
contact with your most profitable customers. Communication to your best customers should take the
form of showing your appreciation and providing new learning experiences to add value to your
customer's life. Send special thank-you notes, surprise gifts, and regular communications such as
newsletters to connect with them.
Use the Small Business Advantage: Small business will always have the advantage in connecting
with customers and building a solid relationship. Your passion for helping customers with your
products and services is difficult for large companies to replicate. As customer evangelist guru Ben
McConnell states, "Small businesses thrive on outstanding customer loyalty. It's their currency of
growth and their best differentiator. Without loyalty, small businesses are destined to compete on a
playing field with larger competitors where they are outnumbered and outwitted."
Win the customer service game by putting customer loyalty to work in your small business. Just
remember, it's more than cards and software. It's more about earning trust and relationship building.



CUSTOMER LOYALTY INDEX

How Can You Increase Customer Loyalty?
Before you can improve a function or a result, you have to be able to measure it. To improve customer
loyalty, you first must be able to measure it, and then determine where to focus your efforts to improve
it. Like any process, to increase throughput (more loyal customers).

Best measure of customer loyalty is based on the research done by Fred Reichheld of Bain and
Company. His research has demonstrated convincingly that a useful measure of customer loyalty can
be created using an index tied to a single question based on willingness to refer.









REVIEW OF LITERATURE

Notwithstanding the recognized importance of service quality there have been methodological
issues and application problems with regard to its operationalization. Quality in the context of service
industries has been conceptualized differently and based on different conceptualizations, alternative
scales have been proposed for service quality measurement. Little efforts have been made to evaluate
the diagnostic ability of the scales in providing managerial insights for corrective actions in the event
of quality shortfalls. Furthermore, minimal work has been done to examine the applicability of these
scales to the service industries in developing countries. An attempt has been made to assess the
diagnostic usefulness as well as the psychometric and methodological soundness of the two widely
advocated service quality scales, viz., SERVQUAL and SERVPERF.
In 1988, Parasuraman, Zeithaml and Berry developed SERVQUAL, a method to assess
customer loyalty for service industries. Their measurement involved the difference between
customers‘ perceptions and expectations based on five generic dimensions: tangibles, reliability,
responsiveness, assurance and empathy. Although the SERVQUAL framework has been pursued with
some enthusiasm in various service industries, empirical support for the suggested framework has not
always been encouraging. Cronin and Taylor (1992) suggested that service quality could be predicted
adequately by using perceptions alone. In addition Carman (1990) suggested that in specific service
situations it might be necessary to delete or modify some of the SERVQUAL dimensions. The
foundation for the SERVQUAL scale is the gap model proposed by Parasuraman, Zeithmal and Berry
(1985, 1988). According to the gap model satisfaction is related to the size and direction of
disconfirmation of a person‘s experience vis-à-vis his or her initial expectations. As a gap or
difference between customer expectations and perceptions, service quality is viewed as lying along a
continuum ranging from ideal quality to totally unacceptable quality with some points along the
continuum representing satisfactory quality. Parasuraman, Zeithmal and Berry (1988) held that when
perceived or experienced service is less than expected service, it implies less than satisfactory service
quality. But, when perceived service is less than expected service, the obvious inference is that service
quality is more than satisfactory. Parasuraman, Zeithmal and Berry (1988) posited that while a
negative discrepancy between perceptions and expectations – a ‗performance gap‘ as they call it -
causes dissatisfaction, a positive discrepancy leads to consumer delight.
Parasuraman, Zeithmal and Berry identified a set of 22 variables/items tapping five different
dimensions of service quality construct. Since service quality has been operationalized as being a gap
between customer‘s expectations and perceptions of performance on these variables, the service
quality scale comprised of total 44 items (22 for expectations and 22 for perceptions). The higher the
perception minus expectation score, the higher is perceived to be the level of service quality.
Several issues have been raised with regard to use of (P-E) gap scores, i.e., disconfirmation
model. Validity of (P-E) measurement framework has also come under attack due to problems with the
conceptualization and measurement of expectation component of the SERVQUAL scale. While
perception (P) is definable and measurable in a straightforward manner as the consumer‘s belief about
service is experienced, expectation (E) is subject to multiple interpretations and as such has been
operationalized differently by different authors.
It is because of the vagueness of the expectation concept that some researchers like Babakus
and Boller (1992), Brown, Churchill and Peter (1993), and Carman (1990) stressed the need for
developing a methodologically more precise scale. The SERVPERF scale – developed by Cronin and
Taylor (1992) – is one of the important variants of the SERVQUAL scale. For being based on the
perception component alone, it has been conceptually and methodologically posited as a better scale
than the SERVQUAL scale that has its origin in disconfirmation paradigm.
Cronin and Taylor (1992) opined that expectation component of SERVQUAL scale be discarded
and instead performance component alone be used. They questioned the conceptual basis of the
SERVQUAL scale. The superiority of performance only instrument over disconfirmation model was
corroborated by conducting research across four industries namely banks, pest control, dry cleaning
and fast food. Being a variant of the SERVQUAL scale and containing perceived performance
component alone, performance only scale is comprised of only 22 items. A higher perceived
performance implies higher service quality. Methodologically, the SERVPERF scale represents
marked improvement over the SERVQUAL scale. Not only is the scale more efficient in reducing the
number of items to be measured by 50 percent, it has also been found empirically superior to the
SERVQUAL scale for being able to explain greater variance in the overall service quality measured
through the use of single-item scale.
Cronin and Taylor (1994) compared the two service quality models SERVPERF and SERVQUAL and
responded to concerns raised by Parasuraman, Zeithmal and Berry (1988) about the relative efficacy of
performance-based and perceptions-minus-expectations measures of service quality. They demonstrate
that the major concerns voiced by these authors are supported neither by a critical review of their
discussion nor the emerging literature.
Jain and Gupta (2004) assessed the diagnostic power of the two service quality scales. Validity and
methodological soundness of these scales have also been probed in the Indian context - an aspect,
which has so far remained neglected due to preoccupations of the past studies with service industries
in the developed world. The study finds the SERVPERF scale to be providing a more convergent and
discriminate valid explanation of service quality construct and SERVQUAL scale to be possessing
higher diagnostic power.
Deshmukh, et al (2004) appraise various service quality models and identify issues for future research
based on the critical analysis of the literature. The review of various service quality models revealed
that the service quality outcome and measurement is dependent on type of service setting, situation,
time, need etc factors.

SERVICE QUALITY
Quality has been defined differently by different authors. Some prominent definitions include
‗conformance to requirements‘, ‗fitness for use‘ or ‗one that satisfies the customer‘ As per the
Japanese production philosophy, quality implies ‗zero defects‘ in the firm‘s offerings. Though initial
efforts in defining and measuring service quality emanated largely from the goods sector, a solid
foundation for research work in the area was laid down in the mid-eighties by Parasuraman et al
(1985). They were amongst the earliest researchers to emphatically point out that the concept of
quality prevalent in the goods sector is not extendable to the services sector. Being inherently and
essentially intangible, heterogeneous, perishable, and entailing simultaneity and inseparability of
production and consumption, services require a distinct framework for quality explication and
measurement. As against the goods sector where tangible cues exist to enable consumers to evaluate
product quality, quality in the service context is explicated in terms of parameters that largely come
under the domain of ‗experience‘ and ‗credence‘ properties and are as such difficult to measure and
evaluate (Parasuraman et al 1985). One major contribution of Parasuraman et al (1988) was to provide
a terse definition of service quality. There are very few precise measures of service quality.
Nevertheless, quite a few attempts have been made to assess service quality. They defined service
quality as ‗a global judgment, or attitude, relating to the superiority of the service‘, and explicated it as
involving evaluations of the outcome (i.e., what the customer actually receives from service) and
process of service act (i.e., the manner in which service is delivered). In line with the propositions put
forward by Parasuraman et al (1985, 1988) posited and operationalized service quality as a difference
between consumer expectations of ‗what they want‘ and their perceptions of ‗what they get.‘ Based on
this conceptualization and operationalization, they proposed a service quality measurement scale
called ‗SERVQUAL.‘ The SERVQUAL scale constitutes an important landmark in the service quality
literature and has been extensively applied in different service settings. Over time, a few variants of
the scale have also been proposed. The ‗SERVPERF‘ scale is one such scale that has been put forward
by Cronin and Taylor (1992) in the early nineties. Numerous studies have been undertaken to assess
the superiority of two scales, but consensus continues to elude as to which one is a better scale.


SERVICE QUALITY MODEL

Parasuraman et al. (1985) proposed that service quality is a function of the differences between
expectation and performance along the quality dimensions. They developed a service quality model
based on gap analysis. This model of service quality is derived from the magnitude and direction of
five gaps which include consumer expectations-experiences discrepancies in addition to the
differences in service design, communications, management and delivery. The first four gaps affect
the way in which service is delivered, and the existence of these four gaps leads to the extent of gap 5.


The various gaps visualized in the model are:
Gap 1: Difference between consumers‘ expectation and managements‘ perceptions of those
expectations, i.e. not knowing what consumers expect.
Gap 2: Difference between management‘s perceptions of consumer‘s expectations and service quality
specifications, i.e. improper service-quality standards.
Gap 3: Difference between service quality specifications and service actually delivered i.e. the service
performance gap.
Gap 4: Difference between service delivery and the communications to consumers about service
delivery, i.e. whether promises match delivery?
Gap 5: Difference between consumer‘s expectation and perceived service. This gap depends on size
and direction of the four gaps associated with the delivery of service quality on the marketer‘s side.
According to this model, the service quality is a function of perception and expectations and can be
modeled as:


Where:
SQ=overall service quality; k= number of attributes.
Pij = Performance perception of stimulus i with respect to attribute j.
Eij = Service quality expectation for attribute j that is the relevant norm for norm for stimulus i.


The gap model maintains that satisfaction is related to the size and direction of disconfirmation
of a person‘s experience vis-à-vis his/her initial expectations. SERVQUAL is a concise multi- item
scale which was designed to access the quality of firms in a wide range of service categories.
SERVQUAL is intended primarily for identifying the key dimensions of the service quality and their
contributions to overall customer satisfaction as perceived by current and past customers of a service
firm.
As a gap or difference between customer ‗expectations‘ and perceptions,‘ service quality is
viewed as lying along a continuum ranging from ‗ideal quality‘ to totally unacceptable quality,‘ with
some points along the continuum representing satisfactory quality. Parasuraman et al (1988) held that
when perceived or experienced service is less than expected service, it implies less than satisfactory
service quality. But, when perceived service is less than expected service, the obvious inference is that
service quality is more than satisfactory. Parasuraman et al (1988) posited that while a negative
discrepancy between perceptions and expectations — a ‗performance-gap‘— causes dissatisfaction, a
positive discrepancy leads to consumer delight. Based on their empirical work, they identified a set of
22 variables/items tapping five different dimensions of service quality construct. Since they
operationalized service quality as being a gap between customer‘s expectations and perceptions of
performance on these variables, their service quality measurement scale is comprised of a total of 44
items (22 for expectations and 22 for perceptions). Customers‘ responses to their expectations and
perceptions are obtained on a 5-point Likert scale and are compared to arrive at (P-E) gap scores. The
higher (more positive) the perception minus expectation score, the higher is perceived to be the level
of service quality. Brown & Swartz (1989) suggested that examination of the perceptions of both
parties in an exchange is a way to identify gaps in expectations and experiences.






CUSTOMER LOYALTY
Since 1990s loyalty topic has an increasing importance especially in marketing efforts and
management applications. Its importance is emerging from decisions of customers regarding goods
and services. Establishments that create customer loyalty have a big advantage among their rivals.
Loyalty means being loyal to someone (Milliyet, 1985, p.554). Here being loyal can be thought for
persons or for establishments, it means being loyal of customers to their establishments voluntarily.
Generally customer loyalty has a meaning of customer preferences and preference frequencies of
customers. In a different perspective, customer loyalty can be thought as reluctance of changing goods
and services. Looking to customer loyalty topic solely as preference frequency will not be enough.
Customer loyalty means feeling of belongingness to customers at the same time
When customer loyalty was examined from the establishments operating in the service sector
perspective, it can easily be seen that loyal customers prefer goods and services from the
establishments that have positive influence on them. More than other sectors, customer loyalty has a
more importance in service sector. The main differences are the difference between good demand and
service demand, the more need for interaction among individuals and the existence of perceived risk
related to services (Gremler and Brown, 1999, p.349).
For an establishment, customer loyalty means the most satisfied customers with five score over 5-
Likert scale. Loyal customers are over satisfied customers. They are missioners of establishments in
their private and business life.
Here Loyal customers can be evaluated as they are aware of a ―value‖ that is offered to them by their
establishments. In customer loyalty, establishment –customer relation is a long termed relation .In
order to have long termed relation with customers, sometimes establishments can self sacrifice from
their short term profits. Another benefit of loyal customers to establishments is ―mouth to mouth
publicity‖ in service sector. ―Mouth to mouth publicity‖ is sharing of positive or negative impressions
of customers regarding their goods and services experiences.

In creating customer loyalty, creating customer satisfaction is foremost provision. Customer loyalty
generally calculated with the number of repeat guests, increases in the number of cooperation
possibilities and the number of people giving references. In addition to this, examples directly
reaching to people are also important. Forming focus groups, detailed interviews, questionnaires and
feedbacks from customers can be given as examples (Murphy, 1995, p.16, 22).













RESEARCH METHODOLOGY

 DATA SOURCE

 Primary Data:

The primary data was collected by means of a survey. Questionnaires were prepared and
customers of the IT Company were approached to fill up the questionnaires. The
questionnaire contains 20 questions which reflect on the type and quality of services provided
by the company to the customers. The response of the customer and the is recorded on a
grade scale of strongly disagree, disagree, uncertain, agree and strongly agree for each
question. The filled up information was later analyzed to obtain the required interpretation
and the findings.




 Secondary Data:

In order to have a proper understanding of the service quality of the sector a depth study was
done from the various sources such as books, a lot of data is also collected from the official
websites of the IT industry and the articles from various search engines like Google, yahoo
search and answers.com.


RESEARCH DESIGN :









ANALYSIS AND INTERPRETITION

OBJECTIVE 1
To measure the service quality of the IT company by assessing the perceptions of
performance and expectations of the customer

ATTRIBUTES
MEAN OF
CUSTOMERS'
PERCEPTION
MEAN OF
CUSTOMERS'
EXPECTATIONS
SERVICE QUALITY
(P-E)
S1 4.1 4.4 -0.3
S2 4.2 4.2 0
S3
4.3
4.2 0.1
S4 3.8 4.3 -0.5
S5 3.6 4.1 -0.5
S6 3.8 4.2 -0.4
S7 3.8 4.2 -0.4
S8 3.7 4.1 -0.4
S9 3.8 4.1 -0.3
S10 3.6 4.2 -0.6
S11 4.1 4.3 -0.2
S12 4 4.3 -0.3
S13 3.7 4.4 -0.7
S14 3.8 4.4 -0.6
S15 3.9 4.2 -0.3
S16 4 4.4 -0.4
S17 3.9 4.3 -0.4
S18 4.1 4 0.1
S19 4 4.3 -0.3
S20 3.9 4.4 -0.5
S21 4 4.5 -0.5
S22 4.5 4.4 0.1














Interpretation:

The study has tried to present the findings of assessing the expectations and perceptions of service
quality for customers by using SERVQUAL model of service quality. This model of measuring
service quality is based on disconfirmation between perceptions of performance and expectation of
customers regarding particular service attributes. Thus, we have measured service quality by using
the formula


According to the analysis it has been found that customers were predominantly dissatisfied with the
services provided by the hotels as their expectation exceed than their perception of performance. For
instance, customers under study didn‘t find rooms to be clean and attractive.
-0.8 -0.6 -0.4 -0.2 0 0.2
SERVICE
QUALITY (P-E)
S1 S2 S3 S4 S5 S6 S7 S8
S9 S10 S11 S12 S13 S14 S15 S16 S17 S18
S19 S20 S21 S22
Rooms were not pleasantly decorated and adequately illuminated according to their expectations.
Customers didn‘t find employees to be courteous and helpful. Services were not prompt. The hotel
staff didn‘t give personal attention to guests. The employees were not easily accessible when needed.
However, Customers find staff of four star hotels neat in appearance. Operating hours were flexible.
Express checkout was available for guests. Room rates were reasonable. The study has made an
attempt to examine the inconsistencies between customers‘ expectations and experiences with
services of the hotels. Inconsistencies in expectations and experiences can have an adverse effect on
the evaluation of service performance. Once inconsistencies have been identified, strategies and
tactics for achieving more congruent expectations and experiences can be initiated. Greater
consistency would lead to a more positive service encounter and enhances the likelihood that the
experience will evolve into a longer term client-provider relationship.
OBJECTIVE 2
To establish the relationship between perceived service quality and customer
loyalty
Multiple regressions are used to build a relationship between service quality and customer loyalty.
Multiple regressions involve a single dependent variable and two or more independent variables.


TANGIBILTY involves
 Modern equipment
 Visually appealing facilities
 Employees who have a neat, professional appearance
 Visually appealing materials associated with the service
 Convenient business hours

ASSURANCE involves
 Employees who instill confidence in customers
 Making customers feel safe in their transactions
 Employees who are consistently courteous
 Employees who have the knowledge to answer customer questions


RELIABILTY involves
 Providing services as promised
 Dependability in handling customers' service problems
 Performing services right the first time
 Providing services at the promised time
 Keeping customers informed about when services will be performed

RESPONSIVENESS involves
 Prompt service to customers
 Willingness to help customers
 Readiness to respond to customers' requests

EMPATHY involves
 Giving customers individual attention
 Employees who deal with customers in a caring fashion
 Having the customer's best interest at heart
 Employees who understand the needs of their customers

TANGIBILITY DIMENSION OF SERVICE QUALITY (Questions1 to 4):

 Physical facilities, equipments and appearance of personnel

Ques.1 Om Grc InfoTech Pvt ltd has modern looking equipment.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY
DISAGREE

5

10 10
DISAGREE

25 50 60
UNCERTAIN


16 32 92
AGREE

4 8 100
TOTAL

50 100






INTERPRETATION

Here analysis show that most of the respondents disagreed with this statement. Among the total
respondents 50% disagreed, 32% were neutral and 8% agreed. After analysis I found that majority of
the respondents think that Om GRC InfoTech PVT Ltd does not have modern looking equipments or
no hi-tech equipments.


 Ques.2 The IT Industry physical features are visually appealing.
SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

4 8 8
UNCERTAIN


29 58 66
AGREE

17 34 100
TOTAL

50 100



INTERPRETATION
From this statement I found that 17 persons agreed. 29 persons were uncertain and 4 persons
disagreed. This means 58% people were uncertain about this statement. Out of the total respondents
only 4% disagreed and no one strongly agreed or disagreed with the statement. 17% people agreed
that means physical facilities are visually appealing.

 Ques.3 The Company reception desk employees are neat appearing.
SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

5 10 10
UNCERTAIN


21 42 52
AGREE

18 36 88
STRONGLY
AGREE

6 12 100
TOTAL

50 100


INTERPRETATION
Here analysis shows that majority were neutral. Among the total respondent 21 respondents
were neutral, 18 people agreed and 6 respondents strongly agreed. The rest disagreed. From analysis
I found that some respondents agreed with this statement but most of the respondents think the
employees of the company appear neat.





Ques.4 Materials associated with the service (such as pamphlets or statements are visually
appealing for the company.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

7 14 14
UNCERTAIN


22 44 58
AGREE

18 36 94
STRONGLY
AGREE

3 6 100
TOTAL

50 100



 INTERPRETATION
Materials associated with the service are visually appealing at the company. Here 36%
respondents agreed with this statement and 6% strongly agreed with this statement. 44% were
neutral that is most and 14% disagreed. There was no respondent who strongly disagreed. Hence,
in general it can be concluded that materials associated with the services such as pamphlets or
statements are visually appealing.


 RELIABILITY DIMENSION OF SERVICE QUALITY (Questions 5 to 8):

Ability to perform the promised service dependably and accurately

Ques.5 when the company promises to do something by a certain time, it does so.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY
DISAGREE

2 4 4
DISAGREE



26 52 56
UNCERTAIN 5 10 66
AGREE

14 28 94
STRONGLY
AGREE

3 6 100
TOTAL

50 100




 INTERPRETATION
My sample size was 50. Here analysis shows that among the total respondents 26 respondents
disagreed and 14 respondents agreed with this question. Also I found that 5 people were neutral
and 2 people strongly disagreed. Hence I concluded that majority of them disagreed that the bank
when promises to do something by certain time, it does so.

Ques. 6 when you have a problem, the company shows a sincere interest in solving it
SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



3 6 6
UNCERTAIN 14 28 34
AGREE

26 52 86
STRONGLY
AGREE

7 14 100
TOTAL

50 100


 INTERPRETATION When you have a problem, company shows sincere interest in solving it.
After analyzing this statement I found that most of the respondents agreed i.e. 52% respondents
agreed. Also I found that 28% were neutral with this statement and 6% were committed with
disagree. There was no one who strongly disagreed. Hence company can be said to be reliable.



Ques.7 The company performs the service right the first time.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY
DISAGREE

2 4 4
DISAGREE



8 16 20
UNCERTAIN 17 34 54
AGREE

17 34 88
STRONGLY
AGREE

6 12 100
TOTAL

50 100



 INTERPRETATION
Total sample size was 50. Here analysis shows that among the total respondents 17 people agreed
with this statement. They think that company performs the services right the first time. 6 people
strongly agreed with this statement. Also 17 people were neutral and the rest of the respondents
disagreed and strongly disagreed.

 Ques.8 The Company insists on error free records.
SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



5 10 10
UNCERTAIN 10 20 30
AGREE

23 46 76
STRONGLY
AGREE

12 24 100
TOTAL

50 100





INTERPRETATION
Company insists on error free records. Company has proved from my analysis that it surely
insists on error free records as 46% respondents agreed with this statement and 24% strongly
agreed. Only 10% respondents disagreed and no one strongly disagreed.



 RESPONSIVENESS DIMENSION OF SERVICE QUALITY (Question 9
to 12):

Willingness to help customers and provide prompt services

Ques. 9 Employees in the company tell you exactly when the services will be performed.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY
DISAGREE

6 12 12
DISAGREE



8 16 28
UNCERTAIN 13 26 54
AGREE

18 36 90
STRONGLY
AGREE

6 10 100
TOTAL

50 100











 INTERPRETATION

Employees in the company tell you exactly when the services will be performed. Majority of the
respondents agreed with this statement. 26% respondents were uncertain. At the same time 16%
disagreed and 12% Strongly disagreed with this statement.



Ques. 10 Employees in the company give you prompt service.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



5 10 10
UNCERTAIN 16 32 42
AGREE

27 54 96
STRONGLY
AGREE
2 4 100





 INTERPRETATION
Most of the respondents agreed with this statement. According to my analysis, employees in
company give prompt service. Among the total respondents agreed respondents were 27 and
strongly agreed were 2. 16 people were neutral and 5 disagreed. There was no respondent who
strongly disagreed with this statement.


Ques.11 Employees in the company are always willing to help you.


TOTAL

50 100
SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

UNCERTAIN 12 24 24
AGREE

29 58 82
STRONGLY
AGREE

9 18 100


 INTERPRETATION

Employees in company are willing to help you. With this statement no one disagreed or strongly
disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly agreed, 29 people agreed
i.e. 58% respondents agreed and 24% respondents were neutral.






Ques.12 Employees in the company are never too busy to respond to your request.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



1 2 2
UNCERTAIN 11 22 24
TOTAL

50 100
AGREE

27 54 72
STRONGLY
AGREE

11 22 100
TOTAL

50 100



 INTERPRETATION
Employees in company are never too busy to respond to your request. After analyzing this
statement I found that most of the respondents agreed with this statement. Among the total
respondents 22% strongly agreed and 54% agreed. 11 respondents were neutral and 1 respondent
disagreed. No one strongly disagreed.















 ASSURANCE DIMENSION OF SERVICE QUALITY (Question13 to 16):

Knowledge and courtesy of employees and their ability to inspire trust and confidence

Ques.13 The employees of the company are trustworthy.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



4 8 8
UNCERTAIN 13 26 34
AGREE

28 56 90
STRONGLY
AGREE

5 10 100
TOTAL

50 100







 INTERPRETATION
The employees of the company are trustworthy. According to my findings, 54% respondents
agreed that employees at Om Grc InfoTech are trustworthy. 13% respondents were neutral and
4% respondents disagreed with this statement..

 Ques.14 The behavior of employees in the company instills confidence in you.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



28 56 56
UNCERTAIN 4 8 64
AGREE

13 26 90
STRONGLY
AGREE

5 10 100
TOTAL

50 100










 INTERPRETATION

The behavior of employees in company instills confidence in you. Here analysis shows that most
of the people disagreed. Among the total respondents 28 respondents disagreed, 13 agreed and 5
strongly agreed. There was no respondent who strongly disagreed. This means 56% respondent
disagreed with this statement.

 Ques.15 You feel safe in your transactions with the company.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



5 10 10
UNCERTAIN 16 32 42
AGREE

23 46 88
STRONGLY
AGREE

6 12 100
TOTAL

50 100





 INTERPRETATION
With this statement most of the respondents agreed. Among the total respondents 23 agreed with
this statement and 6 strongly agreed. 32% respondents were neutral and 10% respondents
disagreed. But there no one who strongly disagreed.

Ques.16 Employees in the company have the knowledge to answer your questions.
SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



2 4 4
UNCERTAIN 9 18 22
AGREE

26 52 74
STRONGLY
AGREE

13 26 100
TOTAL

50 100




 INTERPRETATION From my analysis I found that 54% respondents agreed that employees of
company have complete knowledge to answer their questions. 26% respondents strongly agreed
to this statement and only 4% disagreed. 18% neither agreed nor disagreed.

 EMPATHY DIMENSION OF SERVICE QUALITY (Question17 to 20):

 Caring and individualized attention that firm provides to its customers

Ques.17 The company gives you individual attention.
SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



26 52 52
UNCERTAIN 12 24 76
AGREE

10 20 96
STRONGLY
AGREE

2 4 100
TOTAL

50 100




 INTERPRETATION
Company is not able to give individual attention to its customers as out of the total respondents
54% disagreed with this statement. 12% of the respondents were neutral and only 12% agreed
and 2% strongly agreed. From this finding it can be concluded that it is unable to give individual
attention to its customers.

 Ques.18 The Company has operating hours convenient to all its customers.

SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



2 4 4
UNCERTAIN 14 28 32
AGREE

27 54 86
STRONGLY
AGREE

7 14 100
TOTAL

50 100






 INTERPRETATION
Company has operating hours convenient to all its customers. Out of 50 respondents, 27
respondents agreed with this statement and only 2 respondents disagreed. Also 7 respondents
strongly agreed that the company has operating hours convenient to its customers.

 Ques.19 The Company has your interests best at heart.
SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY
DISAGREE

3 6 6
DISAGREE



5 10 16
UNCERTAIN 10 20 36
AGREE

25 50 86
STRONGLY
AGREE

7 14 100
TOTAL

50 100


 INTERPRETATION
The Company has your best interests at heart. Here analysis shows that 25 respondents agreed
and 7 respondents strongly agreed with this statement. 20% were neutral and the rest disagreed
and strongly disagreed.


 Ques.20 The employees of the Company understand your specific needs.
SCALE


FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE



5 10 10
UNCERTAIN 21 42 52
AGREE

20 40 92
STRONGLY
AGREE

4 8 100
TOTAL

50 100


 INTERPREATION
Employees of Company understand specific needs. With this statement most of the respondents
were neutral. Among the total respondents 20 respondents agreed and 4 respondents strongly
agreed. 5 respondents disagreed with this statement.


MEASURING SERVICE QUALITY DIMENSIONS

 Measuring the quality of a service can be a very difficult exercise. Unlike product where there are
specific specifications such as length, depth, width, weight, and colour etc. a service can have
numerous intangible or qualitative specifications.

 Parasuraman, Zeithaml, and Berry (1985) provide a list of determinants of service quality:
access, communication, competence, courtesy, credibility, reliability, responsiveness, security,
understanding, and tangibles. A total of five consolidated dimensions of service quality are:

 Tangibles (ques.1 to 4) - Physical facilities, equipments and appearance of personnel.

 Reliability (ques.5 to 8) - Ability to perform the promised service dependably and accurately
Responsiveness (ques.9 to 12) – Willingness to help customers and provide prompt services.

 Assurance (ques.13 to 16) – (including competence, courtesy, credibility and security)
Knowledge and courtesy of employees and their ability to inspire trust and confidence.

 Empathy (ques.17 to 20) – (including access, communication and understanding the customer)
Caring and individualized attention that firm provides to its customer.
 In order to calculate which dimension of service quality is performing well, a sample of the
questions are used in the questionnaire. Using the questionnaire, obtain the score for each of the
20 statements. After analysis of the data, Overall score to each statement is given on a scale of 1
to 5 i.e. 1 is given to strongly disagreed i.e. the lowest score, then 2= disagreed, 3= uncertain, 4=
agreed and 5= strongly agreed.

 Sum the score for each dimension of service quality to obtain a final score which tells which
dimension is performing well and which dimension needs improvement.

 The scores are shown in the following table:

Statement

Score

1
Om Grc has modern looking equipment.

2
2
The Company‘s physical features are visually appealing.

3
3
The Company‘s reception desk employees are neat appearing.

3

4

Materials associated with the service (such as pamphlets or statements) are
visually appealing for the Company.

3
5
When the Company promises to do something by a certain time, it does so.

2
6
When you have a problem, the Company shows a sincere interest in solving
it.

4
7
The Company performs the service right the first time.

3.5
8
The Company insists on error free records.

4
9
Employees in the Company tell you exactly when the services will be
performed.

4
10
Employees in the Company give you prompt service.

4
12
Employees in the Company are always willing to help you.

4
4
13 Employees in the Company are never too busy to respond to your request.

14
The employees of the Company are trustworthy.

4
15
The behavior of employees in the Company instills confidence in you.

2
16
You feel safe in your transactions with the Company.

2
17
Employees in the Company have the knowledge to answer your questions.

4
18
The Company gives you individual attention.

2
19
The Company has operating hours convenient to all its customers.

4
20
The Company has your best interests at heart
4
21
The employees of the Company understand your specific needs.

3

 The scores for each dimension are summed up and a final score is obtained:
SERVICE QUALITY DIMENSION

Points


1. TANGIBILITY (1 TO 4)

11

2. RELIABILITY (5 TO 8)

13.5

3. RESPONSIVENESS (9 TO 12)

16

4. ASSURANCE (13 TO 16)

14

5. EMPATHY (17 TO 20)

13





 FINDINGS OF THE REPORT

 The Reliability dimension of service quality is better as compared to empathy and
tangibility. Still the score is low. For most services, customer‘s perceptions of whether
the service has been performed correctly, and not provider-established criteria, are the
major determinants of reliability. Customers of the Company hesitate to rely . Whenever
they have a problem, the Company shows sincere interest in solving it but the services are
not performed by a certain time as promised. The employees should take this problem
seriously and take steps to remove this.
 As score for Assurance is at second place after responsiveness, so the customers of
Company are very confident and feel safe while transacting with the Company. Moreover
the employees of the Company have proved to be trustworthy. Employees are also
educated enough to answer all the questions.
 The score of Tangibility dimension of service quality of Grc is the lowest. The service
quality factor tangible is defined by whether the physical facilities and materials
associated with the service are visually appealing for the Company. These are all factors
that customers notice before or upon entering the Company . Customer expectations
regarding visual appealing of the Company is very high. From my study I found that
Physical facilities and modern looking equipment are not sufficient in GRC. Respondents
were uncertain about the neat appearance of the reception desk employees. So they
should work on that and try to fulfill the gap.
 According to my findings, the score of Empathy is not satisfactory but not
unsatisfactory also. The Company is unable to give individual attention to its customers
and is unable tounderstand specific needs of its customers. But still Company has taken
steps to satisfy its customers by keeping operating hours convenient to its customers
and keeping their interest best at heart.

 In Company, the score of Responsiveness is highest so they are focusing on prompt service,
employees are willing to help the customers and say the exact time when the services will be
performed. Employees at the Company give their customers first preference and are always
ready to help them. Overall Company ‟s responsiveness dimension of service quality is the
highest.
 According to the customer perception, Company is highly responsive. Customers are assured
while transacting with the Company. The reliability dimension is lower than the first to
dimension. They feel that the Company is unable to give them individual attention and its
equipments are not modern and sufficient for the Company.
 There is not much gap between all the dimensions, this shows that GRC is a better service
provider in all the dimensions i.e. reliability, assurance, tangibility, responsiveness and
empathy. As a result of which, the customers are satisfied with the service offered by GRC.


 We have four factors of customer loyalty i.e. word of mouth, preference, price indifference,
dissatisfaction. They are dependent variables.

RELATIONSHIP BETWEEN WORD OF MOUTH AND FACTORS OF
SERVICE QUALITY

Relationship has been ascertained with the help of statistical software ANALYSE – IT

C.L. (WOM) = β
1
(T) + β
2
(A) + β
3
(REL) + β
4
(RES) + β
5
(E)

β
1,
β
2,
β
3,
β
4,
β
5
= regression coefficients
where T stands for tangibility, A stands for assurance, REL stands for reliability, RES stands
for responsiveness and E stands for empathy


β
1
(T) 0.2344
β
2
(A) -0.1167
β
3
(REL) 0.05914
β
4
(RES) 0.1585
β
5
(E) -0.1898


R
2
= 0.15
Out of the five factors of service quality i.e. tangibility, assurance, reliability, responsiveness and
empathy; tangibility has predominant impact on word of mouth which is factor of customer loyalty
i.e. word of mouth communication can be explained predominantly by tangibility. Other factor of
service quality i.e. empathy has least impact on word of mouth communication.
Coefficient of determination i.e. R
2
= 0.15 means 15% of the variance in WOM communication
factor is explained by introducing five independent variables of Service quality.


RELATIONSHIP BETWEEN PREFERENCE AND FACTORS OF SERVICE
QUALITY

C.L. (PREFERENCE) = β
1
(T) + β
2
(A) + β
3
(REL) + β
4
(RES) + β
5
(E)

β
1
(T) -0.00224
β
2
(A) -0.08486
β
3
(REL) -0.04658
β
4
(RES) 0.08166
β
5
(E) -0.01335


R
2
= 0.01
Out of the five factors of service quality i.e. tangibility, assurance, reliability, responsiveness and
empathy; responsiveness has predominant impact on preference which is factor of customer
loyalty i.e. preference can be explained predominantly by responsiveness. Other factor of service
quality i.e. assurance has least impact on preference.
Coefficient of determination i.e. R
2
= 0.01 means 1% of the variance in preference factor is
explained by introducing five independent variables of Service quality

RELATIONSHIP BETWEEN PRICE INDIFFERENCE AND FACTORS OF
SERVICE QUALITY

C.L. (PRICE INDIFFERENCE) = β
1
(T) + β
2
(A) + β
3
(REL) + β
4
(RES) + β
5
(E)

β
1
(T) -0.139
β
2
(A) -0.01509
β
3
(REL) 0.04971
β
4
(RES) -0.002808
β
5
(E) -0.02826


R
2
= 0.02
Out of the five factors of service quality i.e. tangibility, assurance, reliability, responsiveness and
empathy; reliability has predominant impact on price indifference which is factor of customer
loyalty i.e. price indifference can be explained predominantly by reliability. Other factor of service
quality i.e. tangibility has least impact on price indifference.
Coefficient of determination i.e. R
2
= 0.02 means 2% of the variance in price indifference factor is
explained by introducing five independent variables of Service quality

RELATIONSHIP BETWEEN DISSATISFACTION AND FACTORS OF
SERVICE QUALITY

C.L. (DISSATISFACTION) = β
1
(T) + β
2
(A) + β
3
(REL) + β
4
(RES) + β
5
(E)

β
1
(T) -0.03419
β
2
(A) 0.01489
β
3
(REL) -0.1945
β
4
(RES) 0.2278
β
5
(E) -0.1871


R
2
= 0.10
Out of the five factors of service quality i.e. tangibility, assurance, reliability, responsiveness and
empathy; responsiveness has predominant impact on dissatisfaction which is factor of customer
loyalty i.e. dissatisfaction can be explained predominantly by responsiveness. Other factor of service
quality i.e. reliability has least impact on dissatisfaction.
Coefficient of determination i.e. R
2
= 0.10 means 10% of the variance in dissatisfaction factor is
explained by introducing five independent variables of Service quality








CONCLUSION
The results reveal that customers of OM GRC InfoTech PVT Ltd in Chandigarh city assign different
levels of importance to service quality dimensions when evaluating service quality. Statistical tools
were used to explore the underlying dimensions that were used by customers in evaluating the
service quality. It is imperative for the Company to manage their service encounter, which involves
the direct interaction between a service operation and its customers. Service encounters, in particular
those involving front line staff typically have a high impact on consumers, and the quality of service
encounter is thus part of the overall service quality perceived and experienced by the customer.The
factors that may delight customers tend to be concerned more with the intangible nature of the service,
commitment, attentiveness, friendliness, care, and courtesy. The employees give prompt services, always
are ready to answer the questions and are trustworthy. The main sources of dissatisfaction appear to be
cleanliness, up to date technology modern equipments, and neatly dressed up employees. To satisfy these
customers, the management can take some attempts, noted earlier as recommendations. The study brings
about the areas which require urgent attention of the employees, the management, and the policy makers
of the industry. These are areas in which customers are hugely dissatisfied with the services of the
Company‘s against their expectation. This high degree of dissatisfaction resulting from the services
received clearly questions the design of services or subsequent response of the Company employees.
These limitations are too serious to be avoided as these question the front-line people dealing with the
customers and the approach of the management in taking customers seriously. The management should
understand the benefits of service quality. It include increased customer satisfaction, improved customer
retention, positive word of mouth, reduced staff turnover, decreased operating costs, enlarged market
share, increased profitability, and improved financial performance. In the days of intense competition,
superior service is the only differentiator left before the Company to attract, retain and partner with the
customers. Superior service quality enables a firm to differentiate itself from its competition, gain a
sustainable competitive advantage, and enhance efficiency. Thus, improving service quality leads to the
customer satisfaction and, ultimately, to customer loyalty.
The Tangibility dimension of service quality of Company is highly disappointing and serious steps are
needed to be taken to enhance this dimension. Customers of the Company are dissatisfied with the
empathy dimension.
The study has tried to present the findings of assessing the expectations and perceptions of service
quality for customers. The result showed that customers‘ perceptions were consistently lower than
their expectations. These negative gaps indicated that the delivered service level was falling below
customers‘ expectations of service quality. The larger the gap, the more serious the service quality
shortfall, from the point of view of customers. The gap analysis is critical because it may prove to be
extremely useful tool for management to identify the service problems or service fall points in the
industry under study.
The results of the study show that gap analysis is useful and meaningful approach to identify the
gaps between customers‘ expectations and perceptions of service quality in the IT industry..
The results of the study suggest that there are four dimensions of customer loyalty that can be
identified i.e. word of mouth communication, preference, price indifference and dissatisfaction.
From factor analysis, factor loading of all the statements comes out to be greater than 0.5. Eigen
value of the factors was greater than 1.
Analysis shows that Coefficient of determination (R
2
)

is maximum for Word of mouth
communication factor that is 15% and minimum for preference factor that is 1%. R
2
describes
variance in factors which is explained by introducing five independent variables of Service quality.


RECOMMENDATIONS
 Reliability is an obvious place to start. Customers of the Company want to know their resources
are safe and within trustworthy institutions. A way to ensure this peace of mind would be to take
steps to ensure company employees are well trained, so each bank associate is able to offer complete
and comprehensive information at all times. Consistent policies combined with a knowledgeable staff
will foster a high degree of institutional cohesion and reliability.
 Responsiveness, again when associated with a well-trained staff and timely answers to service-
related questions, would make significant inroads into causing Company be regarded as responsive.
Staff should be encouraged to present relevant options to banking customers in a manner that does
not resemble salesmanship so much as a desire to serve.
 Intangibles please customers just as much as tangibles in the IT industry. Usually, this is a
location close to their home or their workplace. It is natural that customers become comfortable and
habituated to these company branches , for the same reason they develop familiarity with a
neighborhood supermarket or convenience store. It makes sense that company employees would be
encouraged to learn to recognize these regular customers, learn their names, and begin to identify
their basic service requirements.
 Learning to understand customers‟ needs will allow company associates to offer enhanced
services, perhaps lowering customers‟ banking costs and increasing their investment potential. This
could also open up the possibility of increased profits for company, for when perceived as more
service and customer oriented, they will, in effect, become a useful and pleasant way to ―shop.‖

 Keeping the company with up-to-date technologically are important factors. Modern
equipments, new improved technology should be replaced with the old ones. If the staff inside is
pleasant and well-informed, in an aesthetically pleasing environment, then customer satisfaction will
be high.

 The five-dimensional structure could possibly serve as a meaningful framework for tracking a
bank‟s service quality performance over time and comparing it against the performance of
competitors. Items on some dimensions should be expanded if that is necessary for reliability.
 Thus, the IT industries must continuously measure and improve these dimensions in order to
gain customers‟ loyalty.










BIBLIOGRAPHY


References
Kotler Philip, marketing management, (Pearson education, 12th edition)
Malhotra K. Naresh, marketing research (An applied orientation), Research design,
(Prentice hall of India pvt. 5th edition)
Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing Integrated customer
Focus across the Firm‖ (4th Edition)
M.K. Rampal : Service Marketing

Websites

www.google.com

www.wikipedia.org

www.marketresearch.com

en.wikipedia.org/wiki/Service quality
.





















QUESTIONNAIRE

Respected Sir/Madam

I am student of PTU GZS CAMPUS, conducting a survey on ―SERVICE QUALITY OF OM GRC‖.
The following statements relate to your feelings about the GRC. Please show the extent to which you
believe Company has the feature described in the statement. I request you to √ the option which in
your opinion are believed to be true. All data will be kept confidential.

Name:

Age:

Educational Qualifications:





1. Om Grc has modern looking equipment.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree
.
2. The Company's physical features are visually appealing.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

3. The Company's reception desk employees are neat appearing.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree


4. Materials associated with the service (such as pamphlets or statements) are visually appealing at
the company.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

5. When the company promises to do something by a certain time, it does so.
(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree


6. When you have a problem, the company shows a sincere interest in solving it.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

7. The company performs the service right the first time.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

8. The Company insists on error free records.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree


9. Employees in the company tell you exactly when the services will be performed.


(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

10. Employees in the Company give you prompt service.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

11. Employees in the Company are always willing to help you.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

12. Employees in the Company are never too busy to respond to your request.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

13. The employees of the Company are trustworthy.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree



14. The behavior of employees in the Company instills confidence in you.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree


15. You feel safe in your transactions with the company

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

16. Employees in the Company have the knowledge to answer your questions.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

17. The Company gives you individual attention.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

18. The Company has operating hours convenient to all its customers.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree






19. The Company has your best interests at heart.

(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree

20. The employees of the Company understand your specific needs.


(a) Strongly Disagree
(b) Disagree
(c) Neither agree nor disagree
(d) Agree
(e) Strongly Agree