Competitive Assessment of Quality Attributes of a Service Provider
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This paper presents a conceptual model for evaluation of the performance of a chosen company with respect to its current benchmark organization to decide on its entry into the market. A model is formulated that integrates attributes of service quality along with the risk tolerance level of the company in question. Utilizing perceived importance of the service quality attributes from the customers’ perspective, the model proposes testing of an ordered alternative hypothesis. This approach is adopted through a well-designed choice of subjects who are not only knowledgeable of both the prospective company seeking market entry and the benchmark company, but also have prior experience of the logistics industry. Survey data are obtained from a paired design, allowing for control of extraneous factors. The results demonstrate the applicability of the proposed model. The model could be utilized in other industries as well through choice of the proper attributes selected in the survey. The unique feature of the proposed model is the incorporation of the relative importance of the service attributes chosen. Since customer perception is critical to the success of logistics companies, such customer feedback is used to categorize the service quality attributes according to the Kano method. These measures of relative importance are consequently incorporated in the model. Additionally, the risk tolerance level of the service provider is utilized in the decision process. In terms of original contribution, integrating service quality, Kano model, and risk tolerance level, this paper presents a model that not only helps service providers on their market entry decisions but also includes a case study from the Turkish logistics sector in order to demonstrate the applicability of the proposed model.
KeywordsMarket Entry Decision Service Quality Attributes Kano Model Risk Tolerance Level Logistics Company Benchmarking Importance of Attributes Ordered Hypothesis
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