Supper Market
ARTICLE IN PRESS
Journal of Retailing and Consumer Services 13 (2006) 1–13 www.elsevier.com/locate/jretconser Building marketing strategies for state-owned enterprises against private ones based on the perspectives of customer satisfaction and service quality
Lien-Ti BeiÃ, Cian-Fong Shang
Department of Business Administration, National Chengchi University, 64, Section 2, Chihnan Road, Taipei, Taiwan
Abstract
In the process of deregulation and privatization, profit-seeking state-owned as well as private enterprises typically compete directly in the same market. This paper employed two data sets, namely those from the banking and gas station industries in Taiwan, to fulfill two objectives. The first is to evaluate the effectiveness of state-owned enterprises as measured by service quality and customer satisfaction. The second objective is to develop the key marketing strategies for these state-owned enterprises according to simultaneous importance-performance analysis. The results show that customers’ overall satisfaction with state-owned enterprises is much lower than that with private competitors, a fact mainly attributed to the formers’ poor service quality. Marketing strategies for state-owned enterprises should concentrate on employee-related service quality attributes. In the short-run, ability-related attributes can be improved through effective standardized operating procedures, employee training and sufficient manpower. In the long run, attitude-related attributes can be transformed through a customer-oriented culture. r 2004 Elsevier Ltd. All rights reserved.
Keywords: State-owned enterprises; Simultaneous importance-performance analysis; Perceived service quality; Perceived product quality; Perceived price fairness; Customer satisfaction
1. Introduction
Service marketing and its subsequent theoretical foundation have, to a large extent, been developed with private profit-seeking organizations as the unit of analysis, and this
Journal of Retailing and Consumer Services 13 (2006) 1–13 www.elsevier.com/locate/jretconser Building marketing strategies for state-owned enterprises against private ones based on the perspectives of customer satisfaction and service quality
Lien-Ti BeiÃ, Cian-Fong Shang
Department of Business Administration, National Chengchi University, 64, Section 2, Chihnan Road, Taipei, Taiwan
Abstract
In the process of deregulation and privatization, profit-seeking state-owned as well as private enterprises typically compete directly in the same market. This paper employed two data sets, namely those from the banking and gas station industries in Taiwan, to fulfill two objectives. The first is to evaluate the effectiveness of state-owned enterprises as measured by service quality and customer satisfaction. The second objective is to develop the key marketing strategies for these state-owned enterprises according to simultaneous importance-performance analysis. The results show that customers’ overall satisfaction with state-owned enterprises is much lower than that with private competitors, a fact mainly attributed to the formers’ poor service quality. Marketing strategies for state-owned enterprises should concentrate on employee-related service quality attributes. In the short-run, ability-related attributes can be improved through effective standardized operating procedures, employee training and sufficient manpower. In the long run, attitude-related attributes can be transformed through a customer-oriented culture. r 2004 Elsevier Ltd. All rights reserved.
Keywords: State-owned enterprises; Simultaneous importance-performance analysis; Perceived service quality; Perceived product quality; Perceived price fairness; Customer satisfaction
1. Introduction
Service marketing and its subsequent theoretical foundation have, to a large extent, been developed with private profit-seeking organizations as the unit of analysis, and this
References: Andreassen, T.W., 1995. (Dis)satisfaction with public services: the case of public transportation Athanassopoulos, A.D., 2000. Customer satisfaction cues to support market segmentation and explain switching behavior Babakus, E., Boller, G.W., 1992. An Empirical Assessment of the SERVQUAL Scale Burns, A.C., 1986. Generating marketing strategy priorities based on relative competitive position Carman, J.M., 1990. Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions Chakravarity, S., Widdows, R., Feinberg, R.A., 1996. How ‘moments of truth define bank-customer relationships Chiao, Y.-C., 1999. Customer satisfaction with banks: an application of management opportunity grid Chiou, J.-s., Droge, C., Hanvanich, S., 2002. Does customer knowledge affect how loyalty is formed? Journal of Service Research, in press. Cronin Jr., J.J., Brady, M.K., Hult, G.T.M., 2000. Assessing the effects of quality, value, and customer satisfaction on consumer Finn, A., Kayande, U., 1997. Reliability assessment and optimization of marketing measurement Finn, D.W., Lamb, C.W., 1991. An Evaluation of the SERVQUAL Scales in a retailing setting Gala, A., Jones, L., Tandon, P., Vogelsang, I., 1994. Welfare Consequences of Selling Public Enterprises Ganesh, J., Arnold, M.J., Reynolds, K.E., 2000. Understanding the customer base of service providers: an examination of the Hair, J.F., Anderson, R.E., Tatham, R.L., 1992. Multivariate Data Analysis with Readings, third ed Heracleous, L., 1999. Privatisation—global trends and implications of the Singapore experience Hunt, H.K., 1977. CS/D—overview and future research directions. In: Day, R.L., Hunt, H.K Kouzmin, A., Loffler, E., Klages, H., Korac-Kakabadse, N., 1999. Lee, D.Y., 1998. The effects of product quality and service quality on consumer satisfaction and loyalty—a study of gas stations 13 Martilla, J.A., James, J.C., 1977 Martinez-Tur, V., Peiro, J.M., Ramos, J., 2001. Linking service structural complexity to customer satisfaction Megginson, W.L., Nash, R.C., Van Randenborgh, M., 1994. The financial and operating performance of newly privatised firms: an Neter, J., Wasserman, W., Kutner, M.H., 1990. Applied Linear Statistical Models, third ed Orwig, R.A., Pearson, J., Cochran, D., 1997. An empirical investigation into the validity of SERVQUAL in the public sector. Public Administration Quarterly 21 (1), 54–68. Palmer, A., Cole, C., 1995. Service Marketing: Principles and Practice. Parasuraman, A., Zeithaml, V.A., Berry, L.L., 1988. SERVQUAL: a multiple-item scale for measuring consumer perception of service Parasuraman, A., Zeithaml, V.A., Berry, L.L., 1994. Reassessment of expectations as a comparison standard in measuring service Rathmell, J.M., 1966. What is meant by services? Journal of Marketing 30 (October), 32–36. Rowley, J., 1998. Quality measurement in the public sector: some perspective from the service quality literature Rushton, A.M., Carson, D.J., 1989. The marketing of services: managing the intangibles Shostack, G.L., 1977. Breaking free from product marketing. Journal of Marketing 41 (April), 73–80. Spreng, R.A., Mackoy, R.D., 1996. An empirical examination of a model of perceived service quality and satisfaction United States General Accounting Office, 1997. Privatisation: Lessons Learned by State and Local Governments, March. Vining, A.R., Boardman, A.E., 1992. Ownership versus competition: efficiency in public enterprises Voss, G.B., Parasuraman, A., Grewal, D., 1998. The roles of price,