1.

Introduction

Satisfying quality of service is able to influence the satisfaction of consumers, which

eventually affect the sales and the profitability of business entity. That is why, in any
business, it is crucial to measure the quality of service. The result of measurement can
be used as a benchmark, whether to improve or maintain the quality of service. A model
which is known as SERVQUAL established by Zeithaml (1988) to help to assess the
quality of service and see whether the service is consumer centric or not, in structured
way. The first model of SERVQUAL is consists of five dimensions. Among others:
tangibles, reliability, responsiveness, assurance and empathy. The dimensions are
obtained through mix method research.

However, the SERVQUAL was modefied by Zeithaml and its peers (2001, 2002) after
online commerce began to appear. Some of the dimensions are changed, and added.
The new model of SERVQUAL has seven dimensions, including: efficiency, fulfillment,
reliability, privacy, responsiveness, and compensation. As the research become more
advanced, more scholars proposes different dimensions that use to measure the quality
of service of online commerce.

This essay will perform literature review on SERVQUAL. After that, online retailer will be
choosen to be measured by SERVQUAL. Based on the SERVQUAL results, several
recommendations will be provided.

2. Literature Review

2.1 Defining Online Retailer

There are various of online platform, such as website and application. The retailers
can be considered as online retailer, if they sell their products through the mentioned
online platforms. There is no formal definition about online retailer. However, it can
be said that online retailer is different from online marketplace. The online
marketplace only provides a platform for online retailer to sell their products. The
opportunities to become online retailer arise after the advancement of Information
Communication Technologies (ICT). According to Peska and Vojtas (2012), after
2005 the number of online retailer increased rapidly.

2.2 SERVQUAL: Early Model and Developed Model

Understanding SERVQUAL must begin by examining its first model. Zeithmahl

introduced the first model of SERVQUAL in 1988. The first model proposes five
dimensions which should be used to determine the quality of service. Those
dimensions are: 1) tangible is referred to the facilities, human resources, and
communication that can be seen in the physical form; 2) reliability is referred to the
competence that owned by the service provider to deliver the dependable service in
accurate manner; 3) responsiveness is referred to the genuine desire to assist the
need of consumer and the capability to response to consumers request immediately,
4) assurance is referred to the ability of the service provider to build trust and
 enhance consumers desire to purchase product, 5) emphaty is referred to attention
and care that given based on consumers unique characteristics.

A decade after the first model was introduced, online commerce appears and gains
the popularity. Thus, Zeitmahl et al., (2001, 2002) decided to modified the
dimensions due to a number of differences between offline and online retailer. Those
differences including there is no sales staff that stand-by to encounter the consumers
who visit the shop; the replacement of tangible elements in offline retailer with
intangible elemets; the degree of self-service is high. The transaction process from
exploring the option, pick the desired goods, check out, and pay the goods are
performed alone by the consumers unless they encounter bottlenecks and required
assistance from service provider. Thus, the dimensions are efficiency, fulfillment,
reliability, privacy, responsiveness, and compensation. These dimensions will be
explained further in the next sub-section.

However, as proposing the modified model of SERVQUAL, Zeithmahl et al (2002)

did not consider the fact that there are various type of online business entity, which
each of them deliver different kind of services. To illustrate, service that offered by
online retailer and online marketplace will be different. Thus, it is crucial to adjust the
variables that are used to measure the quality of online service with the
characteristics of the entity itself. To get the valid reference, reviewing the previous
literature is a must. Because, each literature might proposes different dimensions for
the measurement.

Yoo and Donthu (2001) who using online retailer as the case study propose four
dimensions, including ease of use, aesthetic design, processing speed, and security.
On the other hand, the dimensions which are propose by Wolfinbarger and Gilly
(2002) to measure the quality of service in the online marketplace are design of
website, reliability, security, and customer service. Different with Madu and Madu
(2002) which focused to measure e-service. The proposes dimensions are
performance, features, structure, aesthetics, reliability, serviceability, security and
system integrity, trust, responsiveness, service differentiation and customization,
web store police, reputation, assurance and empathy.

2.3 SERVQUAL Dimensions

After reviewing the literatures, this essay will use five dimensions to measure the
quality of service of online business entity. The ease of use and aesthetic design can
be combined and included in the tangible dimension. Meanwhile, feature and
performance can be combined and included in the reliability dimension. Other
dimensions that will be used are responsiveness, assurance, and security.

 Tangible: As mentioned below it covers tangible aspect of online service

provider, which is usually website, mobile application, or both of them. A number
of aspects become the main concern of this dimension that includes ease of use
and aesthetic of design. The design itself represent how the service provider
 communicate the message to the consumers (Szymanski & Hise, 2000). To
illustrate, in most online retailer website the digital banner of discount is placed
on the main page to make the consumers aware of the promotion.

 Reliability: This dimension covers the features that provided in the

website/application by service provider and how well the features work, so the
consumers can rely on the feature to increase convenience. Dale and Cox (2001)
emphasized two important aspect that use to determine whether a website and/or
application is reliable or not. The first aspect is technically the website and/or
application function in correct manner. The second aspect is technical aspects of
the user interface.

 Responsiveness: This dimension is assessed by paying attention on the

willingness of service provider to assist the consumers when they needed it and
give immediate response. This dimension is crucial due to it affects whether the
consumers will make actual purchase or not and the post purchase behavior
(Van Riet et al., 2004). There are two possibilities, the consumers will not repeat
the purchase activities or the consumers made repurchase and become loyal
ones.

 Assurance: This dimension can be assessed by seeing any guarantee that

given by service provider to build trust on the consumers’ mind. It is very crucial
in online service, due to the consumers aware that they are exposed to great risk
as there is no face to face meeting held. The consumers need to be assured that
they will received the ordered goods, the goods met the expectation, and the
safety of their personal and financial information (Madu & Madu, 2002).

 Security: Assurance and security are two dimensions that are slightly
overlapping. Particularly when it comes to personal and financial information.
Both are crucial to determine whether the consumers will make a purchase or
not, and will the repurchase initiated or not. Due to according to White and Nteli
(2004), the tendency to be hesitate to buy will get higher as the security
dimension cannot be fulfilled by the service provider.

3. Case Study

3.1 Online Retailer Overview

Reebonz is a Singapore-based online retailer, which sells and buy various of luxury
good. From footwear to bag. But, there are also apparel and accesories. However,
Reebonz not only sell brand new goods, but also pre-loved ones. Reebonz has able
to send its goods to a number of countries, including Indonesia, Malaysia, Australia,
Thailand, Hong Kong & Macau, Taiwan, United States & Canada, and Japan.
3.2 SERVQUAL Measurement on Reebonz Service

There are five dimensions which will be use to measure the quality of service which
given by Reebonz to its consumers, among others: tangible, reliability,
responsiveness, assurance, and security.

Tangible:

It covers two aspects, which are ease of use and aesthetic of design. In the aspect of
ease to use, in the first place, the website of Reebonz has given a challenge to
consumer. It is mandatory for the consumers to log in whether with email or
Facebook. This condition might drive the consumers away, particularly those who
has limited time to surf the website or just want to casually surf and buy the product
later. After sign-in, the consumers have to pick their location. Then, the information
about sales promotion. If one of the pictures is clicked by the consumers, they will be
directed to page full of option. On the top of the page there are sub-menu, which can
be chosen. It directs the consumers to men and women collection, and collection by
the name of brand/designer. Unlike most of online retailer that equipped with filter
feature, the Reebonz only has the search box to make it easier for the consumers to
seek product that they are desired. In general, the ease of use of Reebonz website is
moderate, due to the first challenge that given by Reebonz to the consumers.
Meanwhile, when it comes to aesthetic of design, the design is simple with white
background. All pictures that are presented in the website shows the product clearly.
Moreover, the message on the banner also can easily be understood by the
consumers. Besides that, there is no word being stacked in one spot, which might
reduce the aesthetic of the website. Overall, the aesthetic of Reebonz web design is
good.

Reliability:

The reliability dimension can be seen through the feature and performance of
website. The performance is determine by reviewing whether the feature working
properly or not. All features, search box, shopping card, and many more. While, the
payment feature is completed by several of channel to make a payment including
debit card, credit card, and PayPal. Reebonz are working properly and can be used
by the consumers to increase the convenience when they surf the website or about
to make a purchase. However, the load time of the website is very low. As the result,
the overall performance of the website cannot be considered good.

Responsiveness:

As Reebonz are selling luxury goods, the consumers tend to have more concern
related to the product, transaction and delivery process, and the status of delivery of
its goods. It also possible to the consumers to complain to Reebonz about the
aspects that just had been mentioned. To anticipate this, Reebonz has provided a
dedicated call center for each country that listed as the countries which can receive
 Reebonz delivery. Moreover, in the website, there is a live chat, which allows the
consumers to talk directly to customer service. Unfortunately, the response of live
chat is quite slow. Thus, the consumers who seek immediate solution will not able to
obtain it. It increases the possibility the consumers drive away or shift to Reebonz
competitors or reluctant to do repurchase.

Assurance:

It seems Reebonz understand the concern of consumers in shopping online,

particularly for luxury goods. Thus, Reebonz in the main page shows that it dares to
promise a number of things to build the trust of the consumers. The things that are
promised by Reebonz are fast delivery, free shipping and no hidden cost, easy
returns and refunds, 1 business day customer response, and authenticity
guaranteed. However, there is another crucial thing which are not be assured by
Reebonz, which is security of personal and financial information. However, if refers
to statement of Madu and Madu (2002) the consumers need to be assured that they
will received the ordered goods, the goods met the expectation, and the safety of
their personal and financial information, Reebonz has able to give two out of three
assurances. Thus, overall the assurance dimensions of Reebonz are moderate.

Security:
As mentioned above, Reebonz is not able to give security assurance to the
consumers. As the result, the safety of consumer personal and informal information
is prone to be hacked or leaked to other parties. In order to give assurance, the IT
team of Reebonz must improve its practice and obtain certification for authorized
insitutions. It is very crucial to fulfill, since according to White and Nteli (2004) the
tendency to be hesitate to buy will get higher as the security dimension cannot be
fulfilled by the service provider. Eventually, it might impact the sales of Reebonz.
3.3 Highlighted Issues

The assesment which has been conducted to Reebonz.com lead to the finding of a
number of issues.

First is the issue that related to tangible dimension. It is a challenge that appear
when the first time consumers visit the website might trigger high level of turn over,
particularly for the consumers who has limited time to surf the website or just want to
casually surf and buy the product later. Other than that, the Reebonz website
relatively ease to use and has pleasant aesthetic design. But, there is a room from
improvement such as adding the filter feature to make the website easier to navigate,
as the consumers can found the desired good in a short time.

Second is the issue that related to responsiveness of live chat. It tends to take a
while to reply the chat from consumers. When this happened, it increases the
possibility the consumers drive away or shift to Reebonz competitors or reluctant to
do repurchase.
 Third is the issue that related to assurance and security. Although, there are plenty of
things assured by Reebonz to build the trust of the consumers toward the brand, but
there is one crucial thing that not yet assured by Reebonz. It is related to the safety
of personal and financial information of the consumers. Failure to fulfill this
dimension will make the consumers hesitate to purchase from Reebonz and might
impact the sales.

4. Recommendations

Based on the highlighted issues, there are a number of recommendations that can be
considered by Reebonz to be implemented. Among others:

 Removing the challenge that appears when the consumers access its website, in
order to reduce the level of turn over. If the Reebonz want to keep the challenges
and oblige the consumers to sign up or sign in before using the product, it must
accompanied by the rewards. Thus, the consumers will not perceived
encountering the challenge as an act that waste of time. Besides that, to improve
ease to use, Reebonz can add filter feature. So, the consumers can locate the
product that they are desired.
 Reebonz should consider to add more human resources to respon to the live
chat and/or the shift of the current human resources extended. So, the concern
of the consumers can be addressed immediately and the bottleneck of actual
purchase can be eliminated.
 To give the assurance, Reebonz must first improved its security practice. There
are plenty of consultancy institute that can help this brand to refine its practice
and then assist the Reebonz to obtain certification from authorized institutions.
Commonly the certifications which are needed by online retailer are SSL and
DDS IP. After the certification is obtained, then Reebonz can give assurance to
the consumers about its security dimension.

5. Conclusion

Measuring the quality of online service is as crucial as offline service. Due to the quality
of service impact the sales, which contribute to revenue, profitability, and company
ability to survive. Thus, SERVQUAL is modified and many scholars are investigating the
same thing to come up with new dimension, which can increase comprehesiveness of
quality measurement. The new dimension also can be used to adjust based on the
characteristics of business online entities. This essay using five dimensions, which are
tangible, reliability, responsiveness, assurance, and security. These dimensions are
used to measure the quality of service of Reebonz.com. It is an online retailer that sell
and buy luxury product in very wide range. The result shows overall quality of
Reebonz.com service is quite good with several exceptions. It can be improved by
following a number of recommendations. Such as removing the mandatory sign up and
sign in in the first page of website, add filter feature, add more human resources to
 handle the consumers concern immediately, and improve its security practice and get
certification so the assurance can be given to the consumers.

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