Intangible Service Quality: An In-Depth Analysis

Intangible Service Quality:

The Dimensions that Contribute to Customer Satisfaction, Long-Term Purchase
Intentions, and the Likelihood of Individual Word-of-Mouth Publicity
Joey Cutting
Dr. Emeka Anaza
KIN 580
James Madison University

Intangible Service Quality: An In-Depth Analysis

Abstract
The goal of this study is to review past research regarding the intangible factors that
contribute to consumer satisfaction. Using exploratory research techniques, this study is seeking
to assist customer service providers by diving into the psychology of todays leisure-based
consumer and simplifying the definitions of service, satisfaction, and service quality. Hoping to
uncover some insights into specific dimensions that drive patron satisfaction and repurchase
intentions, this study has high hopes of shedding light on how to exceed all service expectations
through intangible service quality. By doing an in-depth analysis of the intangible factors that
leisure-based marketers can provide as part of their overall hospitality package, this study
provides awareness about the elements that service providers should be focusing on in their
individual efforts to leave lasting impacts on consumers so that they are guaranteed to be
satisfied with the service of the provider.

Intangible Service Quality: An In-Depth Analysis

Intangible Service Quality:

The Dimensions that Contribute to Customer Satisfaction, Long-Term Purchase Intentions, and
the Likelihood of Individual Word-of-Mouth Publicity
Introduction
In todays rapidly-changing business environment saturated with customer service
elements that lead to organizational competitive advantages, it is absolutely vital for service
providers to hone in on the exact specifications associated with their customers wants and
needs. Traditionally, the service industry has been plagued by negative consumer experiences
due to a lack of attention to individual desires, interests, and expectations. By focusing on
exceeding patrons perceived anticipations of value, service providers can develop a scale of
intangible service qualities that lead to satisfaction, repurchase, and word of mouth publicity.
The following analysis hopes to answer the following question by uncovering the specific
dimensions of intangible service quality:
What exact intangible behaviors and characteristics relating to customer service moments of
truth are guaranteed to produce customer satisfaction and overall service enjoyment?
Analysis of Definitions
Definition of Service
The sheer definition of service can be interpreted and communicated differently
depending on scholars background and customer service perspectives. However, a common
definition of service is an intangible activity or series of activities that seek to provide
satisfaction to a consumers wants and needs (Gronroos, 1988, p.10). Services are at least to

Intangible Service Quality: An In-Depth Analysis

some extent produced and consumed simultaneously with the customer participating in the
production process of the service. Normally perceived in a subjective manner, services have been
historically difficult to evaluate. Due to the intangibility of services, it is difficult to manage the
overall control of quality and conceptualization of its objective feedback. Due to this uncertainty,
the purpose of this analysis is to identify the exact specifications and dimensions that consumers
are looking for in service environments so that service providers can adjust their intangible
service attributes accordingly. With a simpler, easy-to-read scale that lays out better service
classification schemes, service organizations will be more capable of developing a standard set
of guidelines and instructions on the delivery of service quality. Explaining the dynamics of
patron satisfaction and overall repurchase intentions will contribute to exceeding consumer
expectations. Diving into the dynamics of service quality can help bring some clarity to service
providers.
Definition of Service Quality
Based on research, it can be concluded that there is no universal definition of service
quality (Kara, Lonial, Tarim, & Zaim, 2005, p. 6). However, it can be seen that service quality
has attracted the interest of researchers and practitioners in the context of leisure and tourism
mainly because of its influence on consumers several psychological and behavioral responses
such as involvement, identification, satisfaction, and loyalty (Theodorakis, Kaplanidou, &
Karabaxoglou, 2015, p. 91). Service quality is often conceptualized as the comparison of service
expectations with actual performance perceptions. Expectations are the wants of consumers, that
is, what they feel a service provider should offer. Perceptions refer to the consumers valuation
of the service provider (Kara, Lonial, Tarim, & Zaim, 2005, p. 8). Regardless, service qualitys

Intangible Service Quality: An In-Depth Analysis

definition can be summarized as being one of the key factors in consumer satisfaction and
fulfillment of consumer expectations.
Definition of Consumer Satisfaction
There is general support for defining satisfaction in a consumer context as an overall
evaluation of the service compared to customers expectations (Murray and Howat, 2002, p. 28).
Putting the definition into a leisure context, leisure satisfaction is the positive perception or
feeling that an individual forms, elicits, or even gains as a result of engaging in leisure activities
(Theodorakis, Kaplanidou, & Karabaxoglou, 2015, p. 92). Knowing the definition of consumer
satisfaction is vital in moving forward to the development of satisfaction criteria, schemes, and
service quality dimensions. Analyzing the relationship between consumer satisfaction, future
intention to repurchase, and expected/perceived service implications can contribute to the
creation of a more objective intangible service quality scale.
Literature Review: Consumer Satisfaction and Perceived Expectations
Historically, there has been ample research done to better understand the relationship
between perceived consumer expectations, satisfaction, and future repurchase intentions.
Fortunately, seven different scholarly works have contributed to the discovery of intangible
satisfaction factors associated with leisure services.
Service Quality, Satisfaction, and Intent to Return in Event Sport Tourism
Shonk and Chelladurai (2008) state that several studies in tourism point to a positive
relationship between tourist satisfaction and a desire to return (p. 590). Suggesting that a tourists
initial trial experience is antecedent to satisfaction whether the individual becomes a repeat

Intangible Service Quality: An In-Depth Analysis

visitor or not, they claim that increasing satisfaction will result in increased repeat visits in the
absence of counter moves by competitors (Shonk and Chelladurai, 2008, p. 590). The major
thrust of these two scholars model is that perceived overall quality of sport tourism leads to
satisfaction with the experience, which, in turn, leads to the tourists intention to return to the
city or town of the event, and the event itself. They divide their service quality scale into four
dimensions: access quality, accommodation quality, venue quality, and contest quality. Though
these are not intangible service factors, they are still important to take into consideration due to
their varying impacts on understanding comprehensive service. These two scholars identify
satisfaction as the variation between a customers pre-purchase expectations and post-purchase
perceptions of the actual service performed. Considering customer satisfaction as being one of
the most important sources of organizational competitive advantage, Shonk and Chelladurai
(2008) believe that service providers who meet or exceed expectations are more likely to have
satisfied customers (p. 595). Theodorakis et al. also provide a unique insight into service quality
and satisfaction.
Effect of Event Service Quality and Satisfaction on Happiness among Runners of a Recurring
Sport Event
In the leisure setting, service quality and satisfaction relate to the leisure experience.
High service quality in leisure services is important because it yields psychological benefits for
the participants and connects with high satisfaction levels. Perceived service quality can be
referred to as a global judgement or attitude relating to the superiority of a service (Theodorakis,
N. D., Kaplanidou, K., & Karabaxoglou, I., 2014, p.92). These scholars portray that
understanding the nuances in the relationships of service quality, event satisfaction, and

Intangible Service Quality: An In-Depth Analysis

experiential happiness for participants can complement existing literature on the subject.
Breaking their perceptions down into the dimensions of interaction, physical environment, and
outcome quality based on ambience and sociability, it can be seen how consumers perceptions
of quality are formed. As Theodorakis, Kaplanidou, and Karabaxoglou (2015) state, interaction
quality refers to a customers experience as a result of the interaction with personnel while
outcome quality relates to the fulfillment of a customers expectations after participating in the
service platform, (p. 92). Also touching on some intangible components of consumer
satisfaction, Kara, Lonial, Tarim, and Zaim (2005) pose some interesting perspectives.
A Paradox of Service Quality in Turkey
Discussing the various gaps between service expectations and actual performance
perceptions of the consumer is the essence of four customer service scholars. Kara, Lonial,
Tarim, and Zaims (2005) gap model focuses on the service quality specifications and the
differences associated with consumer expectations and service delivery (p. 10). The important
foundation of their stances is the SERVQUAL scale, a common measurement of the major
components of high service quality. The dimensions of SERVQUAL will be discussed deeply
later on in this analysis. The ten dimensions of customer service attributes that Kara et al. discuss
include: access, communication, competence, courtesy, credibility, reliability, responsiveness,
security, tangibles, and understanding (Kara, A., Lonial, S., Tarim, M., & Zaim, S., 2005, p. 8).
They believe that if the customers performance perceptions based on the aforementioned
dimensions exceed the customer expectations, then the service provider provides quality service.
The resulting difference in scores determines the level of service quality. Cronin, Brady, and

Intangible Service Quality: An In-Depth Analysis

Hult (2000) provide another analysis on the interrelationships between service management and
customer satisfaction.
Assessing the Effects of Quality, Value, and Customer Satisfaction on Consumer Behavioral
Intentions in Service Environments
Satisfaction is described as an evaluation of an emotion, suggesting that it reflects the
degree to which a consumer believes that the possession and/or use of a service evokes positive
feelings (Cronin, J., Brady, M. K., & Hult, G. M., 2000, p. 204). These scholars suggest that
increasing customer retention, or lowering the rate of customer defection, is a major key to the
ability of a service provider to generate profits. They justify this statement by portraying that
customer satisfaction is the result of a customers perception of the value received by the service
when compared to the perceived quality relative to price. The initial service evaluation leads to
an emotional reaction that, in turn, drives behavior. Cronin et al. state that service providers have
to get customers to say positive things about them, recommend them to other consumers, remain
loyal to them, spend more with the organization, and pay price premiums (Cronin, J., Brady, M.
K., & Hult, G. M., 2000, p. 205). The convergent literature of these scholars opens up the
opportunity to link quality, value, and satisfaction elements that Christian Gronroos (2001)
explains further.
The Perceived Service Quality Concept a Mistake?
Gronroos perspective incorporates a big-business mindset into analyzing service quality.
Integrating corporate image due to buyer-seller interaction helps to signify the importance of
marketing activities and customer service initiatives. Managing perceived service quality means
that the firm has to match the expected service and the perceived service to each other so that

Intangible Service Quality: An In-Depth Analysis

consumer satisfaction is achieved (Gronroos, 2001, p. 42). In order to fulfill this demand,
Gronroos explains two strategies that need to be undertaken. First, the promises about how the
service will perform given by traditional marketing activities, and communicated by word-ofmouth, must not be unrealistic when compared to the service the customers eventually will
receive. Secondly, managers have to understand how the technical quality and functional quality
of a service is influenced, and how these quality dimensions are perceived by the customers
(Gronroos, 2001, p. 43). The situations where the customer encounters the resources and ways of
operating the service provider are critical to the quality experience. Stated as moments of truth,
Gronroos focuses on the time and place when and where the service provider has its opportunity
to demonstrate to the customer the quality of its services. Dividing moments of truth into six
dimensions of 1) professionalism and skills, 2) attitudes and behavior, 3) accessibility and
flexibility, 4) reliability and trustworthiness, 5) recovery, and 6) reputation and credibility, he
gives excellent guidelines of good service quality based on solid empirical and conceptual
research (Gronroos, 1988, p. 13). These intangible service quality dimensions can also be seen
by analyzing Murray and Howats (2002) scholarly perspectives.
The Relationships among Service Quality, Value, Satisfaction, and Future Intentions of
Customers at an Australian Sports and Leisure Centre
The evaluation of the quality of service provided determines, along with other factors, the
customers level of satisfaction with the organization or service provider (Murray and Howat,
2002, p. 29). This satisfaction of the customer is what ultimately determines their future
intentions and behavior towards the service. These two scholars dive into the two dimensions of
value: price and price received. They concluded that customers place greater importance on the

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10

quality of the service than on the costs associated with its acquisition, (Murray and Howat,
2002, p. 30). Focusing on customers willingness to recommend services to others, Murray and
Howat have been able to relate satisfaction with future intentions and overall value of service.
Finally, Charlene Pleger Bebko (2000) rounds out the literature review by summarizing service
intangibility and its impact on expectations of service quality.
Service Intangibility and its Impact on Consumer Expectations of Service Quality
Expectations play a major role in determining consumers post-consumption service
quality evaluations. It is therefore important that the service marketer understands these
expectations across the intangibility continuum. When marketers know the customers quality
expectations, they are in a position to develop marketing strategies for service delivery (Bebko,
2000, p. 13). Bebko focuses on the intangibility of services, explaining that services are a higher
risk for consumers due to pre-purchase uncertainty. If consumers cannot see the tangible
outcome of a service, it may be impossible for them to decide what they should expect (Bebko,
2000, p. 12). However, risk management principles have uncovered that an investors
expectation for a high rate of return should increase as the probability of loss increases.
Fortunately, SERVQUALs four dimensions of reliability, responsiveness, assurance, and
empathy have helped marketers better understand how to eliminate purchase anxiety and
increase customer service through intangible attributes. As intangibility increases, the relative
importance of each of these four dimensions increases (Bebko, 2000, p. 18). If any consumer is
unable to make an educated decision about the purchase of a service due to its intangibility, risk
should increase, as should quality expectations. Now that multiple scholars points of view have

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11

been analyzed, it is now vital to divide all of their service quality dimensions into specific classes
that specify exactly what consumers are looking for in regards to their intangible service value.
Intangible Service Quality Dimensions
Placing intangible service qualities into simple dimensions has been attempted in the
past, with some success in various realms. However, the complexities associated with the
varying factors that impact service quality have prevented scholars from uncovering a clear,
defined scale that encompasses numerous different industries. The most notable measure that has
been identified thus far is the SERVQUAL scale. Developed in 1988 by a group of scholars, this
scale has been a significant part of providing evaluative measures for service providers to use to
better the service quality that they are producing. Research has shown SERVQUAL to be an
effective and stable tool for measuring service quality across service industries (Bebko, 2000, p.
11). This scale is based on a so-called gap model and is designed to measure service quality as
perceived by the customer. The five gaps of SERVQUAL analysis include: 1) the difference
between consumer expectations and management perceptions of consumer expectations; 2) the
difference between management perceptions of consumer expectations and service quality
specifications; 3) the difference between service quality specifications and the service actually
delivered; 4) the difference between service quality and what is communicated about the service
to the consumer; and 5) the difference between consumer expectations and perceptions (Kara,
Lonial, Tarim, & Zaim, 2005, p. 7). Understanding these gaps has led scholars to be able to
differentiate service offerings and elements across industries. The transferability of the
SERVQUAL scale is what makes it such a significant tool to use in order to decipher ideal
service quality for the customer. The first iteration of SERVQUAL had ten determinants of

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customer service quality. Kelley and Turley (2001) state that these determinants included:
reliability, responsiveness, competence, access, courtesy, communication, credibility,
security/recovery, empathy, and tangibles. Subsequent empirical research narrowed this list of
determinants down to a more manageable list of five dimensions: reliability, responsiveness,
empathy, assurance, and tangibles. In todays day and age, it is vital to not forget about the
original ten determinants due to the numerous uncontrollable factors associated with service
providing. For the sake of this research, all original intangible dimensions will be analyzed and
the tangibles dimension will be omitted. After breaking down each of the nine overall best
determinants of service quality, researchers can better understand how to provide the ideal
platform for consumer enjoyment.
Reliability
Reliability can be defined as the ability to perform the promised service dependably and
accurately (Pitt, Watson, & Kavan, 1995, p. 177). This includes the ability to perform the service
right the first time. Starting all elements of the service on time is crucial, as well as making sure
that everything is located in the proper locations before customers arrive to the place of service.
Insisting on having everything working in perfect order is of utmost importance when trying to
provide reliable services. Finally, having convenient operating hours for the customer is
essential. The economic evaluation of reliability requires the determination of reliability worth
from the customers point of view and its explicit incorporation into the planning process (Burns
& Gross, 1990, p. 825). The effect of actual service reliability on customer satisfaction is
indirect, based on the customers perception of the reliability of its service (Sullivan, Suddeth,

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13

Vardell, & Vojdani, 1996, p. 995). Service responsiveness is the second dimension of intangible
quality service.
Responsiveness
According to Pitt et al. (1995), responsiveness is the willingness to help customers and
provide prompt service (p. 177). From the service providers perspective, the extent in providing
speedy services, variety of services, and willingness to help customers within the service
delivery processes is the pure essence of responsiveness. First and foremost, service providers
should always be willing to help customers, regardless of what the scenario may be. Making sure
that providers are never too busy to respond to any patron requests will prove responsiveness to
the customer. Keeping waiting lines moving smoothly is also a common service theme that is
forgotten in a variety of platforms. Finally, being concerned with overall fast service is vital in
creating a pleasant customer service setting. The third intangible service quality dimension worth
noting is overall provider competence.
Competence (Assurance)
Ultimate intangible service quality can be achieved when the customers realize that the
service provider, its employees, operational systems, and physical resources have the knowledge
and skills required to solve their problems in a professional way (Gronroos, 1984, p. 13). These
traits of professionalism can be tagged as competence. The technical expertise of the service
provider is a key factor in enhancing all customer-provider interactions, ultimately resulting in
personable service quality and the increased probability of customer repurchase. Competence is
the first piece of the SERVQUAL scales assurance dimension as well. By proving that the
provider knows all of the necessary elements of the customer service package, the customer can

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be comforted and more likely to enjoy the overall experience. By presenting oneself in a
professional manner based on expertise and intellect, respect can be gained from the consumer.
Accessibility is the fourth intangible service quality that needs to be highlighted.
Accessibility
Gaining access to the service provider by the customer has to be an easy, care-free
process. The customers need to feel that the service provider, its location, operating hours,
employees, and operational systems are designed and operate so that it is easy to gain access to
the service and so that they are prepared to adjust to the demands and wishes of the customer in a
flexible way (Gronroos, 1984, p. 13). The ease of contact and overall approachability associated
with the service provider is a quintessential piece in creating a two-way relationship between the
provider and the customer. The accessibility of the provider can dictate the comfortability of any
customer interaction, which leads to the importance of its intangibility. The fifth determinant of
customer service quality based on intangibility is communication.
Communication
The exchange of information between the service provider and customer has to be clear,
understandable, and grounded in relatability. The overall communication between the two parties
has to be of similar jargon in order to have the service fulfilled completely. If there is any
uncertainty associated with the perceived services and the consumer, then the service provider
will know that he or she has not completed the service fully. Listening to the customers and
proving that their best interests are in mind amidst the service setting is a vital element to
increasing communication capabilities. The clarity and understandability of the information
given to the client is a major factor in creating an ideal platform of customer service. The

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15

credibility of the service provider is the sixth dimension of intangible service quality worth
considering.
Credibility (Assurance)
The overall reputation and credibility associated with a service provider sets the stage for
the customers perceived expectations of the service. The trustworthiness of the provider is a
major factor in providing an ideal service platform that customers will continue to consume. The
customers have to believe that the operations of the service provider can be trusted and that it
stands for good performance and values which can be shared by them (Gronroos, 1984, p. 13).
Credibility is another element of SERVQUALs assurance dimension previously stated. This
image-related customer service dimension serves as an insight into how important it is for
service-providing organizations to make sure that their brands are speaking true to who they are
and are fulfilling the image of themselves that they wish to portray. The courtesy of individuals
providing services is the seventh determinant of intangible customer service quality.
Courtesy (Assurance)
The attitude of the service provider and the manner adopted by the server are key pieces
of the courtesy dimension of customer service. Being the third piece of SERVQUALs assurance
dimension, courtesy is a practical skill that can be transferrable into innumerable service
contexts. When courtesy has been performed well, the customers feel that the contact persons
from the service provider are concerned about them and are genuinely interested in solving their
problems in a friendly and spontaneous way (Gronroos, 1984, p. 13). The overall behavior
exhibited by the service organization reflects its ability to exceed consumer expectations while

Intangible Service Quality: An In-Depth Analysis

16

ensuring service quality. The eighth customer service dimension worth noting is security and
recovery.
Security/ Recovery
The service environment needs to provide a setting that is free from danger, risk, or doubt
(Cronin, Brady, & Hult, 2000, p. 212). Being in the leisure or sports industry, there are countless
uncontrollable factors that are associated with any service platform. Because of this, the physical
safety of the customer and the privacy of the clients information is of utmost importance in
providing an ideal service. Ultimately, the customers need to realize that whenever something
goes wrong or something unpredictable unexpectedly happens, the service provider will
immediately and actively take corrective action (Gronroos, 1984, p. 13). Comforting the client in
times of distress hopefully should never have to happen, but when the opportunity comes, service
providers have to take the proper actions in order to make the customers experience the best that
it can possibly be. Then ninth and final determinant of intangible service quality is one that
should be utilized in everyday life: empathy.
Empathy
Caring, individualized attention needs to be provided to the customer by the service firm
at all times (Bebko, 2000, p. 25). Empathy can be referred to as knowing what another person is
feeling, perceiving accurately how another person is feeling, and feeling what another person is
feeling. Defined as being cognitively aware of another persons internal states and/or putting
oneself in the place of another and experiencing his or her feelings, it can be seen how
important it can be to properly empathize with people from all walks of life (Bagozzi & Moore,
1994, p. 58). Sharing anothers feelings by placing oneself psychologically in that persons

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circumstance can create a relationship that is unique, memorable, and lasting. Attempting to
comprehend nonjudgmentally the positive and negative experiences of another self will heighten
ones awareness of another persons individual situation (Bagozzi & Moore, 1994, p. 58). By
incorporating empathic behaviors and mannerisms into all service providers personalities,
customers will completely appreciate all efforts during the service. By showing the proper
compassion and empathy towards every consumer, the service provider is building its reputation,
fulfilling its obligation, and exceeding the customers perceived expectations.
Discussion and Conclusion
In order to develop service management and marketing models, it is important to
understand what customers really are looking for and what they evaluate. To talk about better
quality without defining what it is, how it is perceived by the customer, and how it can be
improved and enhanced is of limited value (Gronroos, 1984, p. 11). The previous analysis dove
into the literal definitions of service, service quality, and consumer satisfaction, thus providing a
clear, but in-depth discussion on the exact specifications associated with intangible service
quality. By analyzing seven scholarly works revolving around exceeding consumer expectations,
service providers can now better understand the value of knowing consumers perceived
anticipations. Explaining how closing the gaps between service perceptions and provider
deliveries can be a strong factor in fulfilling client needs. By utilizing previous research on the
SERVQUAL scale of intangible service quality, nine different dimensions regarding consumer
satisfaction can be developed. By knowing how to fulfill the reliability, responsiveness,
competence, accessibility, communication, credibility, courtesy, security/recovery, and empathy
demands of consumers, service providers can be that much closer to creating a sustainable

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competitive advantage for their organizations. Future research intentions should attempt to
decipher how the nine aforementioned dimensions can be applied and tweaked to consumers of
different cultures and service backgrounds. Another research study worth considering is the
analysis all of the relevant constraints and limitations associated with the SERVQUAL scale and
how those hindrances can be minimized for future service quality uses. Regardless, the research
revolving around customer service and intangible service quality should never end. Continuously
investing in studies of service will prevent organizational complacency and overall plateau of
services provided. By focusing on the nine service determinants of intangible service quality, it
can be seen that all intangible factors turn out to be unequivocally more important than the
tangible ones (Kara, Lonial, Tarim, & Zaim, 2005, p. 16). If these dimensions can be lived up to
in leisure service settings, providers can contribute to customer satisfaction, long-term purchase
intentions, and the likelihood of individual word-of-mouth publicity amongst all relevant
stakeholders, clients, and consumers.

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