Developing A Service Quality Scale From Distributor Perspective Working With Small & Medium Manufacturing Enterprises
Keywords:
Distributors, SMEs, Internal Service Quality, Measurement Scale, Small-Medium Manufacturing Units, Factor Analysis, CFA, Reliability, ValidityAbstract
Purpose – The purpose of the current study is to identify the attributes of service quality offered by smallmedium manufacturing enterprises to the distributors engaged with their units. A service quality scale to improve distributors’ working and enhance their performance is proposed in this context.
Design/methodology/approach– 101 distributors or their representatives engaged in working with smallmedium manufacturing units of north India responded to a questionnaire survey. The respondents were asked to assess service quality offered by the manufacturing units to the distributor on 1 to 5 perception scale. Construct validation using exploratory factor analysis showed an interpretable latent structure consisting of 5 dimensions. Confirmatory factor analysis developed a valid and reliable service quality measurement scale with 4 dimensions and 12 items.
Findings – It was observed that service quality of manufacturing units’ working towards distributors comprises four dimensions viz., Trust, Ease-of-Doing-Business (EODB), Promptness-Courtesy, and Credibility.
Research limitations / implications – Snowball sampling was undertaken for this research. The study contributes to developing a valid and reliable measurement scale depicting the manufacturing units’ working towards their distributors in a relatively less-explored sector.
Practical implications – The scale developed in this research can be used by managers of small-medium manufacturing units in identification of opportunities for providing service excellence to distributors to facilitate their working and improve performance, thereby mutually benefitting both partners as well as the whole supply chain.
Originality/value - This research provides a framework to researchers to build up more service quality scales in similar situations so that more concrete generalizations can be made.
How to cite this article: Gandhi SK, Sachdeva A, Gupta A. Developing a Scale to Measure Distributor Service Quality in Indian Small and Medium Manufacturing Enterprises. J Adv Res Qual Control Mgmt 2018; 3(1&2): 7-19.
References
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4. Bagozzi RP, Yi Y. On the evaluation of structural equation models. Academy of Marketing Science 1988; 16(1): 74-94.
5. Bahia K, Nantel J. A reliable and valid measurement scale for the perceived service quality of banks. International Journal of Bank Marketing 2000; 18(2): 84-91.
6. Banwet DK, Datta B. A Study of the Effect of Perceived Lecture Quality on Post-Lecture Intentions”, Work Study, Vol. 2003; 52(5): 234-243.
7. Beinstock CC, Mentzer JT, Bird MM. Measuring physical distribution service quality. Journal of Academy of Marketing Science 1997; 25(1): 31-44.
8. Bollen K, Ting K. Confirmatory tetrad analysis. Sociological Methodology 1993; 147-175.\
9. Bookbinder JH, Lynch ME. Customer service in physical distribution: a utility-function approach. International Journal of Physical Distribution and Logistics Management 1997; 27; (9&10): 540-558.
10. Bowersox D J, Closs DJ, Stank TP. 21st Century Logistics: Making Supply Chain Integration a Reality. Council of Logistics Management, Oak Brook, IL 1999.
11. Bremsinger DP, Lambert DM. Can the SERVQUAL scale be generalized to business to business services. in
Enhancing Knowledge Development in Marketing, American Marketing Association, Chicago 1990; 289301.
12. Buttle F. SERVQUAL: review, critique, research agenda”, European Journal of Marketing 1996; 30(1): 8-25.
13. Byrne BM. Structural Equation Modeling with EQS and EQS/Windows: Basic Concepts, Applications and Programming. Sage Publications, Thousand Oaks, CA 1994.
14. Carman J. Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions. Journal of Retailing 1990; 66(1): 33-35.
15. Carr CL. The FAIRSERV model: customer reactions to services based on a multidimensional evaluation of service fairness. Decision Sciences 2007; 38(1): 107-130.
16. Cavusgil ST, Deligonul S, Zhang C. Curbing foreign distributor opportunism: an examination of trust, contracts, and the legal environment in international channel relationships. Journal of International Marketing 2004; 12(2): 7-27.
17. Chin WW, Marcolin BL, Newsted PR. A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and voice mail emotion / adaptation study”, Proceedings of Seventeenth International Conference of Information Systems, Cleveland, OH, 1996; 21-41.
18. Cronin JJ, Taylor SA. Measuring service quality: a reexamination and extension. Journal of Marketing 1992; 6: 55-68.
19. Cunningham LF, Young CE, Lee M. Cross-cultural perspectives of service quality and risk in air transportation. Journal of Air Transportation 2002; 7(1): 3-26.
20. Dabholkar PA, Shepherd CD, Thorpe DI. A comprehensive framework for service quality: an investigation of critical conceptual and measurement issues through a longitudinal study. Journal of Retailing 2000; 76(2): 131-139.
21. Dagger T S, Sweeney JC, Johnson LW, A Hierarchical Model of Health Service Quality: Scale Development and Investigation of an Integrated Model. Journal of Service Research 2007; 10(2): 123-142.
22. Das C, Tyagi R. Wholesaler: A DSS for wholesale procurement and distribution. International Journal of Physical Distribution & Logistics 1994; 19(2): 4 -12.
23. Dwyer FR. Channel-member satisfaction: laboratory insights. Journal of Retailing 1980; 56(2): 45-65.
24. Erenguc EE, Simpson NC, Vakharia AJ. Integrated production/distribution planning in supply chains: An invited review. European Journal of Operational Research 1999: 11(5): 219-236.
25. Farquhar PH. Utility assessment methods. Management Science 1984; 30(11): 1283-1300.
26. Finn DW, Lamb CW. An Evaluation of the SERVQUAL Scale in a Retail Setting. Advances of Consumer Research. 1991 18: 483-490.
27. Fornell C, Larcker DF. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 1981; 18(1): 39-50.
28. Frazier GL, Robert E. Spekman, Charles R. O’Neal. Justin-Time Exchange Relationships in Industrial Markets. Journal of Marketing 1988; 52: 52-67.
29. Frazier GL. On the measurement of inter-firm power in channels of distribution. Journal of Marketing Research 1983; 20(2): 158-66.
30. Gaski JF. The theory of power and conflicts in channels of distribution. Journal of Marketing 1984; 48(3): 9-29.
31. Goodman LE, Dion PA. The determinants of commitment in the distributor–supplier relationship. Industrial Marketing Management 2001; 30(3): 287–300.
32. Grönroos C. Service Management and Marketing: Managing the Moments of Truth in Service Competition, Lexington Books, Lexington, MA, 1988.
33. Gundlach GT, Achrol RS, Mentzer JT. The structure of commitment in exchange. Journal of Marketing, 1995; 59: 78-92
34. Hair JF, Jr. Anderson RE, Tatham RL et al. Multivariate Data Analysis, 5th edn. Pearson Eudcation, New Delhi, India 2005.
35. Hartog, Deanne N. Den, Verburg Robert M. Service excellence from the employees’ point of view: the role of first line supervisors. Managing Service Quality: An International Journal 2002; 12(3): 159-164.
36. Joseph WB, Gardner JT, Thach S et al. How industrial distributors view distributor-supplier partnership arrangements., Industrial Marketing Management 1995; 24(1): 27-36.
37. Kelkar M. SERVDIV: a Vedic approach to measurement of service quality. Services Marketing Quarterly 2010; 31 No. 4: 420-433.
38. Kumar A, Sharman G. We love your product, but where is it?”, Sloan Management Review, 1992; 33(1): 93-99.
39. Lambert D, Emmelhainz M, Gardner J. Building successful logistics partnerships. Journal of Business Logistics Vol. 1999; 20(1): 165-81.
40. Lee H, Lee Y, Yoo D. The Determinants of Perceived Service Quality and its Relationship with Satisfaction. Journal of Services Marketing 2000; 14(3): 217-31.
41. Li L, Lee YS. Pricing and delivery-time performance in a competitive environment. Management Science 1994; 40(5): 633-46.
42. Liu CM. The Multidimensional and Hierarchical Structure of Perceived Quality and Customer Satisfaction. International Journal of Management 2005; 22(3): 426-435.
43. Ma H, Dend Z, Solvang WD. An on-line approach for distributor benchmarking. Benchmarking: An International Journal 2004; 11(4): 385-402.
44. Madu CN, Madu AA. Dimensions of e-quality. International Journal of Quality & Reliability Management 2002; 19(3): 246-258.
45. Mentzer JT, Gomes R, Krapfel RE. Physical distribution service: a fundamental marketing concept?. Journal of the Academy of Marketing Science 1989; 17(1): 53-62.
46. Min H, Melachrinoudis E. The relocation of a hybrid manufacturing/distribution facility from supply chain perspectives: a case study. Omega 1999; 27(1): 75-85. 47. Morgan RM, Hunt SD. The commitment-trust theory of relationship marketing. Journal of Marketing 1994; 58: 20-38.
48. Nargundkar R. Marketing Research: Test and Cases. 2nd ed., Tata McGraw Hills Pvt. Ltd: New Delhi, India 2004.
49. Narus JA, Anderson JC. Turn your industrial distributors into partners. Harvard Business Review 1986; 64: 66-71.
50. Narus JA, Anderson JC. Strengthen distributor performance through channel positioning. Sloan Management Review 1988; 29: 31-40.
51. Nunnally JC. Psychometric Theory. 2nd edition. New York: McGraw Hill 1978.
52. Ozment J, Chard DN. Effects of customer service on sales: an analysis of historical data. International Journal of Physical Distribution and Materials Management 1986; 16(3): 14-28.
53. Parasuraman A, Zeithaml VA, Berry LL. A conceptual model of service quality and its implications for future research.Journal of Marketing 1985; 49(4): 41-50.
54. Parasuraman A, Zeithaml VA, Berry LL. SERVQUAL: a multiple item scale for measuring consumer perception of service quality. Journal of Retailing 1988; 64(1): 12-37.
55. Patterson PG, Johnson LW, Spreng RA. Modeling the determinants of customer satisfaction for business-to-business professional services. Journal of the Academy of Marketing Science 1997; 25(1): 4-17.
56. Perreault WD, Russ FA. Quantifying marketing tradeoffs in physical distribution policy decisions. Decision Sciences, 1976; 7(2): 186-201.
57. Pisharodi RM, Langley CJ Jr., Interset association between measures of customer service and market response. International Journal of Physical Distribution and Logistics Management 1991; 21(2): 32-47.
58. Pitt LF, Watson RT, Kavan CB. Service quality: a measure of information systems effectiveness. MIS Quarterly, 1995; 19 (2): 173-187.
59. Prakash G. Service quality in supply chain: empirical evidence from Indian automotive industry. Supply Chain Management: An International Journal 2011; 16(5): 362-378.
60. Robson C. Real World Research”, 2nd edition. Oxford: Blackwell 2002.
61. Rosenberg LJ, Stern LW. Conflict measurement in the distribution channel”, Journal of Marketing Research,1971; 8(11): 437-42.
62. Santos J. E-service quality: a model of virtual service quality dimensions. Managing Service Quality 2003; 13(3): 233-246.
63. Schellhase R, Hardock P, Olhwein M. Customer satisfaction in business-to-business marketing: the case of retail organizations and their suppliers. Journal of Business & Industrial Marketing 2000; 15(2&3): 106-21.
64. Siu NYM, Cheung JT. A measure of retail service quality. Marketing Intelligence and Planning 2001; 19(2): 88-96.
65. Sureshchander GS, Rajendran C, Anantharaman RN. Determinants of customer perceived service quality: a confirmatory factor analysis approach. Journal of Services Marketing 2002; 16(1): 9-34.
66. Tanaka JS. How big is big enough?: sample size and goodness of fit in structural equation models with latent variables”, Child Development 1987; 58(1): 134-146.
67. Trochim WMK. Research Methods”, Biztantra, New Delhi 2007.
68. Vandenbosch M, Dawar N. Beyond Better Products: Capturing Value in Customer Interactions. Sloan Management Review 2002; 43(4): 35-42.
69. Wilkinson IF. Power, conflict, and satisfaction in distribution channels - an empirical study. International Journal of Physical Distribution and Materials Management 1981; 11(7): 20-30.
70. William GF Jr. A methodology to support decision making across the supply chain of an industrial distributor, International Journal of Production Economics 2004; 89: 119-129.
71. Yang H-E, Yeh K-H. The roles of service quality and mediating factors in a customer behavioral intentions model”, International Journal of Service Operations and Informatics 2006; 1(1): 38-53.
72. Zeithaml VA. Service quality, profitability and the economic worth of customers: what we know and what we need to learn. Journal of the Academy of Marketing Science 2000; 28(1): 67-85.
73. Zhao X, Bai C, Hui YV. An Empirical Assessment of Application of SERVQUAL in Mainland Chinese Department Store. Total Quality Management 2002; 13(2): 241-254.
2. Ahire SL, Golhar DY, Waller MA. Development and validation of TQM implementation constructs. Decision Sciences 1996; 27(1): 23-56.
3. Anderson JC, Narus JA. A model of distributor firm and manufacturer firm working relationships. Journal of Marketing 1990; 54(1):42-58.
4. Bagozzi RP, Yi Y. On the evaluation of structural equation models. Academy of Marketing Science 1988; 16(1): 74-94.
5. Bahia K, Nantel J. A reliable and valid measurement scale for the perceived service quality of banks. International Journal of Bank Marketing 2000; 18(2): 84-91.
6. Banwet DK, Datta B. A Study of the Effect of Perceived Lecture Quality on Post-Lecture Intentions”, Work Study, Vol. 2003; 52(5): 234-243.
7. Beinstock CC, Mentzer JT, Bird MM. Measuring physical distribution service quality. Journal of Academy of Marketing Science 1997; 25(1): 31-44.
8. Bollen K, Ting K. Confirmatory tetrad analysis. Sociological Methodology 1993; 147-175.\
9. Bookbinder JH, Lynch ME. Customer service in physical distribution: a utility-function approach. International Journal of Physical Distribution and Logistics Management 1997; 27; (9&10): 540-558.
10. Bowersox D J, Closs DJ, Stank TP. 21st Century Logistics: Making Supply Chain Integration a Reality. Council of Logistics Management, Oak Brook, IL 1999.
11. Bremsinger DP, Lambert DM. Can the SERVQUAL scale be generalized to business to business services. in
Enhancing Knowledge Development in Marketing, American Marketing Association, Chicago 1990; 289301.
12. Buttle F. SERVQUAL: review, critique, research agenda”, European Journal of Marketing 1996; 30(1): 8-25.
13. Byrne BM. Structural Equation Modeling with EQS and EQS/Windows: Basic Concepts, Applications and Programming. Sage Publications, Thousand Oaks, CA 1994.
14. Carman J. Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions. Journal of Retailing 1990; 66(1): 33-35.
15. Carr CL. The FAIRSERV model: customer reactions to services based on a multidimensional evaluation of service fairness. Decision Sciences 2007; 38(1): 107-130.
16. Cavusgil ST, Deligonul S, Zhang C. Curbing foreign distributor opportunism: an examination of trust, contracts, and the legal environment in international channel relationships. Journal of International Marketing 2004; 12(2): 7-27.
17. Chin WW, Marcolin BL, Newsted PR. A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and voice mail emotion / adaptation study”, Proceedings of Seventeenth International Conference of Information Systems, Cleveland, OH, 1996; 21-41.
18. Cronin JJ, Taylor SA. Measuring service quality: a reexamination and extension. Journal of Marketing 1992; 6: 55-68.
19. Cunningham LF, Young CE, Lee M. Cross-cultural perspectives of service quality and risk in air transportation. Journal of Air Transportation 2002; 7(1): 3-26.
20. Dabholkar PA, Shepherd CD, Thorpe DI. A comprehensive framework for service quality: an investigation of critical conceptual and measurement issues through a longitudinal study. Journal of Retailing 2000; 76(2): 131-139.
21. Dagger T S, Sweeney JC, Johnson LW, A Hierarchical Model of Health Service Quality: Scale Development and Investigation of an Integrated Model. Journal of Service Research 2007; 10(2): 123-142.
22. Das C, Tyagi R. Wholesaler: A DSS for wholesale procurement and distribution. International Journal of Physical Distribution & Logistics 1994; 19(2): 4 -12.
23. Dwyer FR. Channel-member satisfaction: laboratory insights. Journal of Retailing 1980; 56(2): 45-65.
24. Erenguc EE, Simpson NC, Vakharia AJ. Integrated production/distribution planning in supply chains: An invited review. European Journal of Operational Research 1999: 11(5): 219-236.
25. Farquhar PH. Utility assessment methods. Management Science 1984; 30(11): 1283-1300.
26. Finn DW, Lamb CW. An Evaluation of the SERVQUAL Scale in a Retail Setting. Advances of Consumer Research. 1991 18: 483-490.
27. Fornell C, Larcker DF. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 1981; 18(1): 39-50.
28. Frazier GL, Robert E. Spekman, Charles R. O’Neal. Justin-Time Exchange Relationships in Industrial Markets. Journal of Marketing 1988; 52: 52-67.
29. Frazier GL. On the measurement of inter-firm power in channels of distribution. Journal of Marketing Research 1983; 20(2): 158-66.
30. Gaski JF. The theory of power and conflicts in channels of distribution. Journal of Marketing 1984; 48(3): 9-29.
31. Goodman LE, Dion PA. The determinants of commitment in the distributor–supplier relationship. Industrial Marketing Management 2001; 30(3): 287–300.
32. Grönroos C. Service Management and Marketing: Managing the Moments of Truth in Service Competition, Lexington Books, Lexington, MA, 1988.
33. Gundlach GT, Achrol RS, Mentzer JT. The structure of commitment in exchange. Journal of Marketing, 1995; 59: 78-92
34. Hair JF, Jr. Anderson RE, Tatham RL et al. Multivariate Data Analysis, 5th edn. Pearson Eudcation, New Delhi, India 2005.
35. Hartog, Deanne N. Den, Verburg Robert M. Service excellence from the employees’ point of view: the role of first line supervisors. Managing Service Quality: An International Journal 2002; 12(3): 159-164.
36. Joseph WB, Gardner JT, Thach S et al. How industrial distributors view distributor-supplier partnership arrangements., Industrial Marketing Management 1995; 24(1): 27-36.
37. Kelkar M. SERVDIV: a Vedic approach to measurement of service quality. Services Marketing Quarterly 2010; 31 No. 4: 420-433.
38. Kumar A, Sharman G. We love your product, but where is it?”, Sloan Management Review, 1992; 33(1): 93-99.
39. Lambert D, Emmelhainz M, Gardner J. Building successful logistics partnerships. Journal of Business Logistics Vol. 1999; 20(1): 165-81.
40. Lee H, Lee Y, Yoo D. The Determinants of Perceived Service Quality and its Relationship with Satisfaction. Journal of Services Marketing 2000; 14(3): 217-31.
41. Li L, Lee YS. Pricing and delivery-time performance in a competitive environment. Management Science 1994; 40(5): 633-46.
42. Liu CM. The Multidimensional and Hierarchical Structure of Perceived Quality and Customer Satisfaction. International Journal of Management 2005; 22(3): 426-435.
43. Ma H, Dend Z, Solvang WD. An on-line approach for distributor benchmarking. Benchmarking: An International Journal 2004; 11(4): 385-402.
44. Madu CN, Madu AA. Dimensions of e-quality. International Journal of Quality & Reliability Management 2002; 19(3): 246-258.
45. Mentzer JT, Gomes R, Krapfel RE. Physical distribution service: a fundamental marketing concept?. Journal of the Academy of Marketing Science 1989; 17(1): 53-62.
46. Min H, Melachrinoudis E. The relocation of a hybrid manufacturing/distribution facility from supply chain perspectives: a case study. Omega 1999; 27(1): 75-85. 47. Morgan RM, Hunt SD. The commitment-trust theory of relationship marketing. Journal of Marketing 1994; 58: 20-38.
48. Nargundkar R. Marketing Research: Test and Cases. 2nd ed., Tata McGraw Hills Pvt. Ltd: New Delhi, India 2004.
49. Narus JA, Anderson JC. Turn your industrial distributors into partners. Harvard Business Review 1986; 64: 66-71.
50. Narus JA, Anderson JC. Strengthen distributor performance through channel positioning. Sloan Management Review 1988; 29: 31-40.
51. Nunnally JC. Psychometric Theory. 2nd edition. New York: McGraw Hill 1978.
52. Ozment J, Chard DN. Effects of customer service on sales: an analysis of historical data. International Journal of Physical Distribution and Materials Management 1986; 16(3): 14-28.
53. Parasuraman A, Zeithaml VA, Berry LL. A conceptual model of service quality and its implications for future research.Journal of Marketing 1985; 49(4): 41-50.
54. Parasuraman A, Zeithaml VA, Berry LL. SERVQUAL: a multiple item scale for measuring consumer perception of service quality. Journal of Retailing 1988; 64(1): 12-37.
55. Patterson PG, Johnson LW, Spreng RA. Modeling the determinants of customer satisfaction for business-to-business professional services. Journal of the Academy of Marketing Science 1997; 25(1): 4-17.
56. Perreault WD, Russ FA. Quantifying marketing tradeoffs in physical distribution policy decisions. Decision Sciences, 1976; 7(2): 186-201.
57. Pisharodi RM, Langley CJ Jr., Interset association between measures of customer service and market response. International Journal of Physical Distribution and Logistics Management 1991; 21(2): 32-47.
58. Pitt LF, Watson RT, Kavan CB. Service quality: a measure of information systems effectiveness. MIS Quarterly, 1995; 19 (2): 173-187.
59. Prakash G. Service quality in supply chain: empirical evidence from Indian automotive industry. Supply Chain Management: An International Journal 2011; 16(5): 362-378.
60. Robson C. Real World Research”, 2nd edition. Oxford: Blackwell 2002.
61. Rosenberg LJ, Stern LW. Conflict measurement in the distribution channel”, Journal of Marketing Research,1971; 8(11): 437-42.
62. Santos J. E-service quality: a model of virtual service quality dimensions. Managing Service Quality 2003; 13(3): 233-246.
63. Schellhase R, Hardock P, Olhwein M. Customer satisfaction in business-to-business marketing: the case of retail organizations and their suppliers. Journal of Business & Industrial Marketing 2000; 15(2&3): 106-21.
64. Siu NYM, Cheung JT. A measure of retail service quality. Marketing Intelligence and Planning 2001; 19(2): 88-96.
65. Sureshchander GS, Rajendran C, Anantharaman RN. Determinants of customer perceived service quality: a confirmatory factor analysis approach. Journal of Services Marketing 2002; 16(1): 9-34.
66. Tanaka JS. How big is big enough?: sample size and goodness of fit in structural equation models with latent variables”, Child Development 1987; 58(1): 134-146.
67. Trochim WMK. Research Methods”, Biztantra, New Delhi 2007.
68. Vandenbosch M, Dawar N. Beyond Better Products: Capturing Value in Customer Interactions. Sloan Management Review 2002; 43(4): 35-42.
69. Wilkinson IF. Power, conflict, and satisfaction in distribution channels - an empirical study. International Journal of Physical Distribution and Materials Management 1981; 11(7): 20-30.
70. William GF Jr. A methodology to support decision making across the supply chain of an industrial distributor, International Journal of Production Economics 2004; 89: 119-129.
71. Yang H-E, Yeh K-H. The roles of service quality and mediating factors in a customer behavioral intentions model”, International Journal of Service Operations and Informatics 2006; 1(1): 38-53.
72. Zeithaml VA. Service quality, profitability and the economic worth of customers: what we know and what we need to learn. Journal of the Academy of Marketing Science 2000; 28(1): 67-85.
73. Zhao X, Bai C, Hui YV. An Empirical Assessment of Application of SERVQUAL in Mainland Chinese Department Store. Total Quality Management 2002; 13(2): 241-254.
Published
2018-06-05
How to Cite
Gandhi, S. K., Sachdeva, A., & Gupta, A. (2018). Developing A Service Quality Scale From Distributor Perspective Working With Small & Medium Manufacturing Enterprises. Journal of Advanced Research in Quality Control & Management, 3(1&2), 7-19. Retrieved from https://www.adrjournalshouse.com/index.php/Journal-QualityControl-Mgt/article/view/725
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Research Article
