LITERATURE REVIEW

2.1 INTRODUCTION
This chapter begins with a definition and conceptualization of the SERVQUAL
model, which stands for reliability, tangibles, responsiveness, empathy and
assurance, as the framework for measuring and examining customer satisfaction in
the delivery of courier services in Merbok, Kedah. The literature that led to the
formation of the research framework is discussed in the previous chapter that
researchers discuss. The researchers also talk about the problem's causes and the
importance of this study. Following that, this chapter will go through the theory
behind the independent variables for this study, which are reliability, responsiveness,
and assurance. After then, there is literature on the subject of relating the dependent
and independent variables in the problem of customer satisfaction. Finally, this
chapter will show the research framework as well as describe and summarize the
hypothesis developed in this study.
2.2 DEFINITION AND CONCEPTUALIZATION OF COURIER SERVICES
Parcel delivery service is considered a third-party service provider in logistics to
ensure the smooth movement of goods within the supply chain network (Siali ,
2018). In other words, parcel delivery or mostly known as courier services are the
third-party services provider that serves as an external supplier who handles all or a
portion of the logistics services on representative of the business. There are various
logistics companies in Malaysia that provide courier services, the largest of which is
National Courier Services, which covers both rural and urban areas. According to
(Siali , 2018) as a result, courier companies must ensure that all parcels are
delivered in order to meet the needs and desires of their customers. Service quality,
in general, is a standard measure of the quality of services provided to customers.
Services quality can be defined as a courier company's ability to effectively identify
customers' needs and perform delivery services at a level of quality that meets or
exceeds the customers' expectations (Jamal, Mahamed Ali, & Azmi, 2018).
SERVQUAL interprets quality in terms of how well a service delivery meets their
expectations when measuring service quality (Teoh, Abu Hasan, & Zahari, 2020)
also embraced the SERVQUAL model to assess customer satisfaction with regard to
service quality and to link it to performance measurement. To manage service quality
(Siali , 2018) stated that it is essential to handle the gaps between perceptions and
expectations among employers, customers, and the management of courier
company. Assurance by far was the most crucial elements of service quality,
responsiveness has the greatest impact on perception of e-service quality; and
reliability is observed to be one of the most important dimensions in service quality
(Siali , 2018).
2.3 SERVQUAL
Service quality is a measure of how an organization delivers its services compared
to the expectations of its customers. The SERVQUAL theory consists of five
dimensions that can be used to measure service quality which are reliability,
tangibles, responsiveness, empathy, and assurance. The SERVQUAL model is
widely used to measure the quality of services offered by institutions (Aboubakr &
Bayoumy, 2022). This model is recognized as the service gaps in several
dimensions that might affect the quality of services provided by the courier provider
to the customer, and it is used to measure how well the services quality for delivery
can meet their expectations.
2.4 CUSTOMER SATISFACTION
Customer satisfaction is a term that measures how effectively a company's products
or services meet the expectations of its consumers. Customer-perceived service
level is also applied as a metric to assess market success and status. The expected
quality of the service assesses how well the service fits the customer's expectations.
Customer happiness is indeed the physiological state of respondents believed with
the fulfillment or noncompliance with the expected standard of service of the
customer before and after the service encounter (Johnson et al, 2018).
2.5 RELIABILITY
Reliability has a significant impact on consumers, as per a consumer loyalty
researcher. Customer loyalty would keep improving, for example, if a company was
determined to keep its promises (Siali , 2018). Reliability ensures the eagerness of
the service company's client to consistently provide the perceived standard of
service. Reliability influences trust and the final picture left inside the mind of
customers after using a service. The human factor of service quality considers the
reliability factor of service quality to be significant (Johnson et al, 2018).
2.6 RESPONSIVENESS
Responsiveness is an organizational efficiency that measures service providers'
ability in terms of duration, quality, and flexibility in relation to their customers.
Previous research suggests that customer responsiveness is extremely important in
logistics companies, particularly postal and courier services. Other experts define
responsiveness as a business service provider’s capability to provide quick service
and be ready to assist their customers in dealing with issues, recommendations,
demands, and queries. This could refer to a parcel delivery service provider's
response to its customers in terms of the package delivery service. The ability to
quickly recover from bad professional experiences will create a positive view of
quality.
2.7 ASSURANCE
As measurement scales for assurance, there are factors such as reputation,
protection, competency, and civility. The most important component of service
quality was assurance. The research showed that customers wanted to do business
with persons or companies they could trust. A dimension like assurance was
necessary to assure client pleasure (Siali , 2018). Quality assurance was becoming
increasingly important since it was used in a variety of industries, including higher
education, public transit, airlines, and even the post and courier service industry,
such as Pos Malaysia, J&T Express and more.
2.8 THEORETICAL FRAMEWORK
In terms of the relation between the above-mentioned service's performance and
customer loyalty, which was promoted as part of service efficiency. Researchers
evaluated the research aim of how excellent service affects consumer loyalty
throughout the theoretical framework of the researchers (Ehigie C. Johnson, 2018)

Independent Variable Dependent Variable

Assurance

Responsiveness
Customer Satisfaction

Reliability

Figure 1: Conceptual Framework of a Service Quality and Customer Satisfaction

This study concentrated on three aspects of service quality that influenced customer
satisfaction. Analyzing the interplay between the three dimensions of the
SERVQUAL model and customer loyalty resulted in an improvement in the analysis
of customer interactions. In this theoretical framework, reliability, responsiveness,
and assurances were independent variables and consumer satisfaction was the
dependent variable. (Ehigie C. Johnson, 2019)
2.9 HYPOTHESIS
1. There is significant relationship between reliability and customers’
satisfaction.
2. There is significant relationship between responsive and customers’
satisfaction.
3. There is significant relationship between assurance and customers’
satisfaction.

2.10 SUMMARY
This chapter reviewed the literature on the study variable. The SERVQUAL
methodology was used to assess service quality as perceived by customers. The
study’s research framework was developed using the SERVQUAL model’s three
dimensions.