The Service industry is one of the fastest-growing business sectors in a healthy economic society. Most businesses offer products with the same features but serve with different levels of quality. As noted by Burrow and Kleindl (2013), ‘customers have a hard time identifying differences among the brands but may develop a loyalty to one or a very few brands’. Customer’s preference is more dependent on the service quality of a certain business because most industries offer homogeneous products.
Today, service industries are the source of economic leadership. It shows how important the service industry is now a days. It opens doors for those unemployed and capable individuals. Service industry contributes to the growth and development of the economy.
Johnston and Clark (2001) define ‘service’ as the combination of outcomes and experiences delivered to and received by a customer. It is clear that the word ‘service’ conjures up a wide variety of images. Some will consider the output of a service organization as ‘the service’. Examples might be the provision of a train service, an insurance policy, or a public service such as refuse disposal. Manufacturing organizations often use the term ‘customer service’ in a particular way to describe the logistics or distribution function, the activity of ensuring that customers receive their orders in a timely fashion.
According to Fitzsimmons, J. and Fitzsimmons, M., 2006, ‘the distinction between a product and a service is difficult to make, because the purchase of a product is accompanied by some facilitating service (e.g., installation) and the purchase of a service often includes facilitating goods (e.g., food at a restaurant)’. In order to have a better delivery of a product to customers, a business will need good service because customers are not only concerned with the condition of the product but also the process of receiving it. Customers are more attracted in purchasing a product when they know that they will be served and treated well.
When a service has been rendered, it is irrevocable. The quality of the service that has been provided will reflect to the business as a whole. Every personnel must establish a good relationship with his colleagues. Each of them must be sensitive with his coworker in order to coordinate well. A good coordination among personnel will lead to a better service. This eventually leads also to a good relationship with the customers.
Service organizations are sufficiently unique in their character to require special management approaches that go beyond simple adaptation of the management techniques found in manufacturing a product. The distinctive characteristics suggest enlarging the system view to include the customer as a participant in the service process (Fitzsimmons, J. and Fitzsimmons, M., 2006). Every customer has varying needs and to be able to satisfy them, a business must have a good service quality management. The customers play a vital role in the service process because they dictate the quality of service that has been rendered. Customers are the ones who also provide the company’s reasons to improve.
Service quality depends on how the business responds to the varying needs of every customer. The quality of every service lies to the personnel and its environment. The personnel are the one who deal directly to the customers. They are the one responsible in attending to their needs. The environment is indirectly affecting the customer. The ambience and the location of a business have an impact to every customer.
Service quality management is a process of ensuring that the services offered by the company are very satisfying. It’s a way of considering how services offered can affect the customer and their buying decision. Every service entity considers ways of improving the quality of the services they render. They hire competent employees that will be able to provide quality services in order for customers to be satisfied and in order to build relationship with them. Offering quality service to customers is vital because this results to greater income and satisfaction. By providing quality services, entitles also gain new customers. it helps management to improve the name of the business.
Employee satisfaction occurs when companies treat employees in a way that meets or exceeds their expectations. In other words, the better employees are treated, the more satisfied they are, and the more likely they are to give high-value service that satisfies customers (Williams, 2006). A company must be able to gratify their employees so that in the long run, the external customers will be satisfied.
The most obvious outcome of the consumption process for an individual, whether or not a purchase is made, is some level of satisfaction of the need that initiated the consumption process (Hawkins & Best, 2001). Satisfaction reinforces positive attitudes toward the brand, leading to a greater likelihood that the consumer will repurchase the same brand. Dissatisfaction results when consumer expectations are not met. Such disconfirmation of expectations is likely to lead to negative brand attitudes and lessens the likelihood that the consumer will buy the same brand again (Assael, 2004). Satisfaction is also a judgment of a pleasurable level of consumption-related fulfillment, including levels of under- fulfillment or over- fulfillment (Arnould, Price, and Zinkhan, 2002). It shows the relation of service quality and customer satisfaction. In satisfying customers, both satisfied and dissatisfied customers are to be taken into.
Customer satisfaction is ensured by producing high-quality products. It must be renewed with every new purchase. This cannot be accomplished if quality, even though it is high, is static. Satisfaction implies continual improvement. Continual improvement is the only way to keep customers satisfied and loyal (Goetsch & Davis, 2010).
Company must be able to win the hearts of customers and this happens when they are providing a quality service. Extra efforts are also needed in doing these.
Consumer behavior is dynamic because the thinking, feelings, and actions of individual consumers, targeted consumer groups, and society at large are constantly changing. For example, the development of the Internet has changed the way people search for information about products and services. The fact that consumers and their environments are constantly changing highlights the importance of ongoing consumer research and analysis by marketers to keep abreast of important trends (Peter and Olson, 2002). Consumer behavior as a rule, is purposeful and goal oriented. Products and services are accepted or rejected on the basis of the extent to which they are perceived as relevant to needs and lifestyles. The individual is fully capable of ignoring everything the marketer has to say (Blackwell, Miniara and Engel, 2001).
Consumers take a long time to decide which car they should buy and; once they have made their decision, car manufacturers want to make sure they remain happy with their purchase choice. Even though new car buyers are unlikely to buy another car in the short term, marketers increasingly want to stay in touch with them, to keep them loyal to the maker of car they have selected (Neal, Quester, and Hawkins, 2004). This example is also related to service industry. When customers have decided what to patronize, the company must be able to let customers experienced the quality of service that is unique from other competitors. This enables the company to have satisfied customers.
Mission statements, company slogans, and promotional materials often claim quality as an ideal and assert a close relationship between quality and satisfaction (Arnould, et al., 2002). This statement also proves that service quality is related to customer satisfaction. Service quality serves as a means and satisfaction comes after it. The mission statement, slogan and promotional materials of the company build a relationship with customers, especially when it is proven true through the experience of customers. This means, before customers are able to experience the service, they are first attracted to different strategies of the company.
One of the service providers in the Philippines is Starbucks. It was established in 1971 by three parties in Seattle renowned open-air Pike Place Market and was named after the first mate in Herman Melville’s Moby Dick. The company made a trial on the downtown Seattle coffee house in 1985, which served the first cafe’ latte, and introduced its Christmas blend. Starbucks has been growing across the United States and 49 countries. In the past, Starbucks has expanded at a rate of about three stores a day, although the company started to experience recession in the year 2009.
Starbucks’ walk-in stores can be found in high traffic, high visibility locations. The researchers focus their study on Starbucks, AUF branch located at G/F Excelsior Building McArthur Highway Angeles City, Pampanga. This store is constructed to provide an enticing coffee-bar environment that plays an important part of the Starbucks’ product and experience.
Improving the customer in its store became the main priority. As a way to attract people to relax and spend time, Starbucks provides globe card. It is a promo offered to enable the customers to have an access in the internet. Starbucks also uses a collection of thoughts, opinions, and expressions provided by notable figures that appear on Starbucks cups.
Starbucks is known not only for the various coffees it offers but also to the ambience of its location. More than the coffee, customers are more into the experience they had inside the cafe.
Starbucks became popular for its service quality management because of the perception established by the customers, through the experience of satisfied customers and the used of word of mouth. Starbucks ensures that their growth does not dilute the company’s culture and the common goal of company’s leadership to act like a small company.
As a service type business, Starbucks understands the importance of service quality. It is very important for the growth and development of their business. Ensuring the quality of their service will help them to edge from other companies with the same industry.
With the increasing numbers of businesses with the same industry like Starbucks, assessing their service quality management can be a help for improvement. The researchers tend to study about the service quality management of Starbucks, AUF Branch Angeles City.
Researchers used the five dimensions reliability, responsiveness, assurance, empathy, and tangibles of service quality in order to determine the effectiveness of the service quality management of Starbucks, AUF branch.
Reliability is the dimension of quality where customers anticipate that what they need, expects and asks will be provided. As noted by Fitzsimmons, J. and Fitzsimmons, M., 2006, ‘The ability to perform the promised service both dependably and accurately. Reliable service performance is a customer expectation and means that the service is accomplished on time, in the same manner, and without errors every time. For example, receiving mail at approximately the same time each day is important to most people. Reliability also extends into the back office, where accuracy in billing and record keeping is expected’. Reliability is the dimension of quality where customers anticipate that what they need, expects and asks will be provided. If a customer asks something, it must be provided.
Responsiveness refers on how the service providers will deal with the customers’ needs. It includes how quick they will provide help and services to the customers. As cited by Fitzsimmons, J. and Fitzsimmons, M., 2006, ‘The willingness to help customers and to provide prompt service. Keeping customers waiting, particularly for no apparent reason, creates unnecessary negative perceptions of quality. If a service failure occurs, the ability to recover quickly and with professionalism can create very positive perceptions of quality. For example, serving complimentary drinks on a delayed flight can turn a potentially poor customer experience into one that is remembered favorably’. In Starbucks, customers might expect the crew to assist them with enthusiasm and quickly attend to their needs rather than chatting with their crew mates.
Assurance is also a dimension of quality which refers on the confidence of customers toward the service provider. As mentioned by Fitzsimmons, J. and Fitzsimmons, M., 2006, ‘The knowledge and courtesy of employees as well as their ability to convey trust and confidence. The assurance dimension includes the following features: competence to perform the service, politeness and respect for the customer, effective communication with the customer, and the general attitude that the server has the customer’s best interests at heart’. Like in Starbucks, customers expect that their needs will be guaranteed. These needs may include security or safety, courtesy or respect and credibility or trustworthiness.
Tangibles include physical equipment, personnel, and communication resources of the company. According to Fitzsimmons, J. and Fitzsimmons, M., 2006, it is ‘The appearance of physical facilities, equipment, personnel, and communication materials’. The condition of the physical surroundings (e.g., cleanliness) is tangible evidence of the care and attention to detail that are exhibited by the service provider. This assessment dimension also can extend to the conduct of other customers in the service (e.g., a noisy guest in the next room at a hotel)’. Like for example, the personnel of Starbucks must be well-dressed and must be in proper grooming. Since service is intangible, the tangibles must give the customers an impression about the service quality of the company.
Empathy is the action of understanding, being aware of and sensitive to the things that can affect your customers. As pointed by Fitzsimmons, J. and Fitzsimmons, M., 2006, ‘The provision of caring, individualized attention to customers. Empathy includes the following features: approachability, sensitivity, and effort to understand the customer’s needs. One example of empathy is the ability of an airline gate attendant to make a customer’s missed connection the attendant’s own problem and to find a solution’. Starbucks must be aware of the things that can help or harm their customers. They must produce products that will benefit and satisfy their customers.
Objectives
This study aims to know the relationship between customer and employee satisfaction in terms of the service quality management of Starbucks, AUF Branch.
Specifically, it seeks answers to the following:
‘ How many respondents be described in terms of:
‘ Gender
‘ Age
‘ Civil status
‘ Occupation
‘ Income
‘ How may the service quality management of Starbucks, AUF Branch be assessed in terms of:
‘ Reliability
‘ Responsiveness
‘ Assurance
‘ Empathy
‘ Tangibles
‘ What is the level of customer satisfaction in the service quality management of Starbucks in AUF Branch?
‘ Is there a positive relationship between the dimensions of service quality management and customer satisfaction?
‘ What are the problems being identified in the service quality management of Starbucks in AUF Branch?
‘ What courses of actions are recommended to address the problems being identified in the service quality management of Starbucks, AUF Branch?
The study used the correlational approach. SQM has its standards which include reliability, responsiveness, assurance, empathy and tangibles. With these set of standards, the employees may be satisfied. The level of satisfaction of the employees determines the quality of service to be rendered which may affect the satisfaction of the customers. Their actions which are based on the standards can also lead to customer satisfaction or dissatisfaction.
The responses of employees and customers can be positive or negative. If their responses are not the same,it means the management shall improve its standards or do corresponding actions in order to satisfy the customers and when it is both negative the same corresponding actions shall be taken. Their responses can also meet positively. In such case the standards set by the management shall be continued or maintained.
Hypothesis: There is no positive relationship between Employee Satisfaction and Customer Satisfaction.
This study on Service Quality Management of Starbucks, AUF Branch is beneficial and significant to the following individuals:
‘ The Company
This study will provide an insight about the current status of the company that will give them an idea on how to improve their service quality management. This study may inform them about their strengths and weaknesses in service quality management that may serve as a guide in improving it.
‘ The Customers
The customers are the bloodline of the business. All of their feedbacks have an impact to a company. In this study, customers and prospected clients may be able to determine the assessment of the service quality management of Starbucks. This will provide information that may help their purchasing decisions and be informed of their expectations on the company.
‘ The Future Researchers
This study will benefit the future researchers in accomplishing their research. This study will provide additional information about service quality management. It may also determine which other areas they can further study on Starbucks which are not part of this study.
This study is focused on the relationship between customer and employee satisfaction as to service quality management of Starbucks AUF branch and customer satisfaction. It measures the level of customer’s and employee’s satisfaction in terms of the company’s personnel and physical environment which includes the service quality variables such as reliability, responsiveness, assurance, empathy, and tangibles.
This study is limited to the measurement of the level of customer’s and employee’s satisfaction using the service quality management dimensions namely reliability, responsiveness, assurance, empathy, and tangibles. It is also limited to the (1) current customers and employeesof Starbucks AUF branch, (2) service quality factors in Starbucks AUF branch. This study excludes other factors like competition and profitability.
Method
Research Design
The study will utilize a descriptive research design. According to Edralin (2002), descriptive method is used to illustrate and determine patterns or characteristics of variables in particular instances or events. In the statement of specific objectives some of the more appropriate verbs to use are describe, determine, analyze, explain, define, and illustrate.
As a descriptive research, the study will describe the respondents in terms of gender, age, civil status, occupation, and income. It also defines the following service quality factors: reliability, responsiveness, assurance, empathy, and tangibles.
The study will use correlational research design. It will be conducted to establish the fact that the outcome of certain patterns of relationships occur in a specified manner without suggesting that one variable causes the other variable to change (Edralin 2002).
The correlational research design will be used to show the relationship between customer satisfaction and employee satisfaction. It will also be used to identify the effects in customer and employee satisfaction with the changes on the service quality factors.
Another method to be utilized in the study is the action research. It will be conducted to develop or recommend fresh approaches, policies, programs, strategies, or skills to solve problems in an actual organizational setting (Edralin 2002).
The study will use the action research design to propose solutions to the problems regarding service quality management in improving the level of customer and employee satisfaction of Starbucks, AUF branch.
Participants
The target respondents or population of this study are the current customers (students, professionals and non- professionals), current employees and one manager of Starbucks, AUF branch. The convenience sampling is used in which as noted by Edralin (2002) allows the researcher to gather data from respondents who are conveniently available to provide the necessary information. This method is applied to choose respondent-employee. Actual respondent-employee who has regular status was identified as the manager.
The manner of selection of the respondents-customers is presented using Cochran’s formula:
n = N
1 + N(e)^2
Where N = population and e = sampling error (0.05)
i.e. customers in Starbucks, AUF branch (n) = 1,000/1+[1,000(0.05)^2] = 286 respondents
The average number of customers was based on the month-to-date sales report of Starbucks, AUF branch as of July 31, 2013.
Sources of Data
The primary sources of information for the study are the customers and employees of Starbucks, AUF branch. The study will use interview guide and survey questionnaire. The secondary data are taken from journals, books and internet sources.
Research Instruments
Interview guide according to Edralin (2002) predominantly contains open-ended or unstructured items or list of topics to ask, questions that are directly asked by the researcher but allows the respondent to answer the questions in whatever manner one prefers, and is flexible. It will be used to know the problems that are encountered regarding the service quality management of Starbucks, AUF branch. The interview guide will be administered to the manager.
The survey questionnaire will be used to know the level of satisfaction of customers and employee and relate it to the service quality of Starbucks, AUF branch. It also includes questions about their personal profile (gender, income, age, civil status and occupation) and evaluation on the service quality variables of Starbucks (reliability, responsiveness, empathy, assurance and tangibles). It will be conducted to the respondents.
Procedures
The following statistics will be used for the correlation of customer and employee satisfaction in terms of service quality management of Starbucks, AUF branch.
‘ The frequency and percentage distribution will be used to demonstrate the actual distribution of responses per demographic item.
‘ The mean rating is utilized to show the general rating given by the respondents per dimension. The excellent-satisfied-fair-dissatisfied-poor scale will be applied to assess the level of customer and employee satisfaction in terms of the service quality factors of Starbucks, AUF branch. The response categories for the means were determined based on the following ranges:
Scale Value Verbal Interpretation Range of Weighted Means
5 Excellent 4.55-5.00
4 Satisfied 3.55-4.54
3 Slightly Satisfied 2.55-3.54
2 Dissatisfied 1.55-2.54
1 Poor 1.00-1.54
The descriptions of response categories to assess the level of customer satisfaction in terms of the service quality factors of Starbucks, AUF branch will be as follows:
‘ Excellent ‘ service experience received exceeded the service experience expected by the customers. Starbucks, AUF branch provides more than what can satisfy their customers.
‘ Satisfied ‘ service experience received equaled the standard service set by the management. Starbucks, AUF branch delivers the required service for the customers to be pleased.
‘ Slightly Satisfied- the view point of customers is neutral. They are not that satisfied but not disappointed.
‘ Dissatisfied ‘ service was provided but did not meet the necessary service a customer must receive.
‘ Poor ‘ unpleasant service was delivered and the needs of the customers were not attended and granted.
The descriptions of response categories to assess the level of customer satisfaction in terms of the service quality factors of Starbucks, AUF branch will be as follows:
‘ Excellent ‘ service experience exceeded the service experience expected from the employees. Starbucks, AUF branch delivered more than what is required from the employee.
‘ Satisfied ‘ service experience rendered equaled the standard service set by the management. Starbucks, AUF branch provides the needed level of service.
‘ Slightly Satisfied- the view point of employees is neutral. They are not satisfied but not disappointed to the service rendered.
‘ Dissatisfied ‘ the service was rendered but did not meet the standard service set by the management.
‘ Poor ‘ the service was delivered poorly and the needs of the customers were not met.
‘ Correlation will be used to know the relationship between customer and employee satisfaction in terms of the service quality management of Starbucks, AUF branch and customer satisfaction. It is also used to determine if there is significant relationship between the two variables.
Results and Discussions
This part presents the findings, analysis and interpretation of data gathered from the distributed survey questionnaire to respondents of the study. The data were focused on service quality management of Starbucks AUF Branch. The five dimensions used in the study were: reliability, responsiveness, assurance, empathy and tangibles.
I. Demographic Profile of the Respondents
1.1 Gender
Table 1 Percentage and Frequency Distribution as to Gender
Frequency Distribution
Customers Employees Customers Employees
Female 174 2 62.59% 40%
Male 104 3 37.41% 60%
Total 278 5 100% 100%
The table shows the percentage and frequency distribution as to gender. The female respondents- customers are 62.59% and the male respondents- customers are 37.41%. While, the female respondents- employees are 40% and the male respondents- employees are 60%.
Table 2: Variances in Gender
F M Difference
Average of Reliability Q1 4.16 4.08 0.08
Average of Reliability Q2 4.15 4.08 0.07
Average of Reliability Q3 4.10 4.05 0.06
Average of Reliability Q4 4.10 4.05 0.05
AVERAGE 4.13 4.06 .07
Average of Responsiveness Q1 4.13 4.05 0.08
Average of Responsiveness Q2 4.09 4.00 0.09
Average of Responsiveness Q3 4.20 4.15 0.05
Average of Responsiveness Q4 4.18 4.05 0.13
AVERAGE 4.15 4.06 .09
Average of Assurance Q1 4.34 4.19 0.15
Average of Assurance Q2 4.21 4.11 0.10
Average of Assurance Q3 4.11 4.05 0.07
Average of Assurance Q4 4.06 4.03 0.03
AVERAGE 4.18 4.09 .09
Average of Empathy Q1 4.10 4.10 0.00
Average of Empathy Q2 4.22 4.13 0.09
Average of Empathy Q3 4.20 4.13 0.07
Average of Empathy Q4 4.24 4.05 0.19
AVERAGE 4.19 4.10 .09
Average of Tangibles Q1 4.45 4.42 0.03
Average of Tangibles Q2 4.39 4.38 0.01
Average of Tangibles Q3 4.22 4.14 0.07
Average of Tangibles Q4 4.33 4.20 0.13
AVERAGE 4.35 4.29 .06
The findings denote that most of the female customers are more satisfied than male respondents. The response of female customers regarding the reliability of service quality management of Starbucks, AUF branch shows an average rate of 4.13 compared to malecustomerswith an average rate of 4.06. Regarding the responsiveness of Starbucks, AUF branch, the female customers rated the company 4.15 while the male customers rated 4.06. Assurance of the sad company was rated 4.18 by the female customers and 4.09 by the male customers. The empathy of the company was rated 4.19 by female customers and 4.10 by male customers. The tangibles of the company was rated 4.35 by the female customers and 4.29 by the male customers.
The role of gender in customer satisfaction is very vital because males and females have different perceptions in the level of satisfaction. T shows that women are more tolerant or have a lower threshold than men (http://www.freepatentsonlne.com/artcle/journal-nternatonal-busness- economics/23735854.html, September 18, 2014).
Having the belief that men are superior over women, men tend to set a higher standard of satisfaction.
1.2 Age
Table 3 Running Averages in Terms of Age Brackets
TEENS YOUNG ADULTS
15 16 17 18 19 20 21 22 23 24 25
Average of R1 4.00 4.13 4.33 3.96 4.17 4.11 4.36 4.13 4.25 4.00 4.50
Average of R2 4.00 4.18 4.31 3.88 4.28 4.13 4.27 3.88 4.00 5.00 4.50
Average of R3 4.00 4.18 4.19 3.88 4.11 4.05 4.36 4.13 4.25 4.00 4.25
Average of R4 4.00 4.10 4.21 3.77 4.23 4.03 4.18 4.13 4.00 5.00 4.50
4.00 4.14 4.26 3.88 4.20 4.08 4.30 4.06 4.13 4.50 4.44
Average of Re1 4.00 3.98 4.19 4.00 4.11 4.13 4.55 4.25 4.25 5.00 4.00
Average of Re2 3.00 4.18 4.19 3.88 4.11 3.97 3.91 4.25 4.00 5.00 4.00
Average of Re3 4.00 3.98 4.29 3.96 4.36 4.29 4.27 4.38 4.00 5.00 4.25
Average of Re4 4.00 4.33 4.02 3.96 4.28 4.08 4.36 4.25 4.25 4.00 3.75
3.75 4.11 4.17 3.95 4.21 4.12 4.27 4.28 4.13 4.75 4.00
Average of A1 4.00 4.25 4.45 4.12 4.30 4.29 4.55 4.38 4.50 4.00 4.75
Average of A2 4.00 4.15 4.31 4.12 4.19 4.19 4.36 4.25 4.00 3.00 4.50
Average of A3 4.00 4.00 4.26 3.85 4.23 4.13 4.27 4.13 4.25 4.00 4.00
Average of A4 4.00 4.03 4.10 3.85 4.15 4.05 4.27 4.25 3.75 5.00 4.25
4.00 4.11 4.28 3.98 4.22 4.16 4.36 4.25 4.13 4.00 4.38
Average of E1 4.00 3.95 4.29 4.00 4.11 4.14 4.27 4.50 3.75 4.00 4.25
Average of E2 4.00 4.15 4.33 4.04 4.26 4.24 4.18 4.50 4.00 5.00 4.25
Average of E3 4.00 4.08 4.29 4.12 4.26 4.19 4.18 4.50 4.00 5.00 4.25
Average of E4 4.00 4.03 4.33 4.08 4.28 4.13 4.18 4.63 4.00 5.00 3.75
4.00 4.05 4.31 4.06 4.22 4.18 4.20 4.53 3.94 4.75 4.13
Average of T1 5.00 4.43 4.67 4.38 4.53 4.38 4.55 4.50 4.50 4.00 4.50
Average of T2 5.00 4.48 4.50 4.31 4.45 4.44 4.36 4.50 4.50 5.00 4.25
Average of T3 4.00 4.15 4.48 3.96 4.21 4.24 4.27 4.38 4.25 4.00 4.00
Average of T4 4.00 4.38 4.60 4.35 4.23 4.27 4.45 4.50 4.50 3.00 4.00
4.50 4.36 4.56 4.25 4.36 4.33 4.41 4.47 4.44 4.00 4.19
Row Labels
ADULTS
MDDLE AGE
26 27 28 29 30 32 34 35 36 38 40 46 49 54 55 56
Average of R1 2.00 4.00 2.00 4.00 4.00 3.67 4.67 3.50 4.00 3.50 3.00 5.00 5.00 5.00 4.00 5.00
Average of R2 3.00 3.00 2.50 4.00 3.00 3.33 4.00 3.17 5.00 3.50 3.00 5.00 4.00 5.00 5.00 4.50
Average of R3 3.00 4.00 4.50 3.00 4.00 3.67 4.33 3.17 4.00 4.00 3.00 4.00 4.00 4.00 4.00 4.50
Average of R4 3.00 3.00 4.00 4.00 4.00 3.33 3.67 3.17 5.00 4.00 3.00 4.00 5.00 4.00 5.00 5.00
2.75 3.50 3.25 3.75 3.75 3.50 4.17 3.25 4.50 3.75 3.00 4.50 4.50 4.50 4.50 4.75
Average of Re1 2.00 4.00 2.50 5.00 4.00 3.67 4.33 3.50 5.00 3.50 3.00 5.00 4.00 5.00 5.00 4.50
Average of Re2 2.00 4.00 2.50 3.00 5.00 4.00 4.67 3.33 5.00 3.50 4.00 4.00 5.00 5.00 5.00 4.00
Average of Re3 3.00 4.00 4.00 4.00 3.00 3.33 4.33 3.67 5.00 3.50 3.00 4.00 5.00 5.00 5.00 4.00
Average of Re4 4.00 5.00 4.00 4.00 4.00 4.00 4.00 3.00 4.00 3.50 4.00 4.00 5.00 5.00 5.00 4.00
2.75 4.25 3.25 4.00 4.00 3.75 4.33 3.38 4.75 3.50 3.50 4.25 4.75 5.00 5.00 4.13
Average of A1 3.00 4.00 4.00 5.00 4.00 4.33 4.00 3.50 5.00 3.50 3.00 5.00 5.00 4.00 4.00 5.00
Average of A2 3.00 3.00 4.50 5.00 4.00 3.67 4.00 3.17 5.00 3.50 4.00 4.00 5.00 4.00 4.00 5.00
Average of A3 2.00 4.00 4.50 5.00 3.00 3.33 3.67 3.50 4.00 4.00 3.00 4.00 4.00 5.00 4.00 4.50
Average of A4 3.00 5.00 4.50 4.00 3.00 3.67 4.00 3.50 4.00 4.00 3.00 4.00 4.00 4.00 5.00 4.50
2.75 4.00 4.38 4.75 3.50 3.75 3.92 3.42 4.50 3.75 3.25 4.25 4.50 4.25 4.25 4.75
Average of E1 3.00 5.00 3.00 5.00 3.00 3.67 4.33 3.33 4.00 3.50 3.00 5.00 3.00 5.00 5.00 5.00
Average of E2 4.00 4.00 3.00 5.00 4.00 4.00 4.33 3.00 4.00 3.50 3.00 4.00 4.00 5.00 5.00 5.00
Average of E3 4.00 3.00 3.00 5.00 3.00 4.00 4.00 3.33 4.00 3.50 3.00 5.00 5.00 4.00 5.00 4.50
Average of E4 4.00 4.00 3.00 5.00 4.00 3.67 4.33 3.17 5.00 3.50 3.00 5.00 5.00 5.00 5.00 5.00
3.75 4.00 3.00 5.00 3.50 3.83 4.25 3.21 4.25 3.50 3.00 4.75 4.25 4.75 5.00 4.88
Average of T1 3.00 4.00 4.50 5.00 4.00 3.67 4.33 3.17 4.00 4.00 3.00 5.00 5.00 5.00 4.00 5.00
Average of T2 3.00 5.00 4.50 5.00 3.00 3.33 4.33 3.00 4.00 3.50 2.00 4.00 5.00 5.00 5.00 4.00
Average of T3 4.00 4.00 3.00 5.00 2.00 3.67 4.33 3.33 4.00 4.00 3.00 4.00 5.00 4.00 4.00 4.50
Average of T4 2.00 3.00 2.50 5.00 3.00 3.33 4.33 3.33 5.00 3.50 3.00 4.00 5.00 4.00 5.00 4.50
3.00 4.00 3.63 5.00 3.00 3.50 4.33 3.21 4.25 3.75 2.75 4.25 5.00 4.50 4.50 4.50
Ages ranging from 15 to 19 are typically composed of students. They have a higher level of satisfaction because their spending capacity is dependent on their allowances. They do not focus on the quality over cost but rather they are focused on the trend over quality.
Ages ranging from 20 to 25 are typically composed of young professionals and are usually singles. Therefore they are not conscious of their spending that dictates the level of satisfaction.
Ages ranging from 26 to 39 are generally composed of marred people. They have a lower level of satisfaction because they give importance to the value they spend for the service.
Ages ranging from 40 and above are usually composed of stable earning people. They have a high level of satisfaction because they have a stable source of income. And they usually have more spare money to spend for they wants.
1.3 Civil Status
Table 4 Running Averages based on Civil Status
Civil Status M S
Average of R1 4.14 4.13
Average of R2 3.90 4.14
Average of R3 3.90 4.10
Average of R4 4.00 4.09
AVERAGE 3.99 4.11
Average of Re1 4.19 4.09
Average of Re2 4.10 4.05
Average of Re3 4.05 4.19
Average of Re4 3.90 4.15
AVERAGE 4.06 4.12
Average of A1 4.24 4.29
Average of A2 3.90 4.19
Average of A3 3.86 4.11
Average of A4 4.00 4.05
AVERAGE 4.00 4.16
Average of E1 4.14 4.09
Average of E2 4.14 4.19
Average of E3 4.00 4.18
Average of E4 4.19 4.16
AVERAGE 4.12 4.16
Average of T1 4.19 4.46
Average of T2 3.95 4.42
Average of T3 4.05 4.20
Average of T4 4.00 4.31
AVERAGE 4.05 4.35
The table shows that singles are more satisfied than married couples. The reason is that married couples are more likely than singles to behomeowners. Singles spend significantly more per capita than married couples whose priorities are the necessities like food, housing, apparel, education and health care (www.bls.gov/cex/anthrology11/csxanth6.pdf, September18, 2014).
The level of satisfaction of married people is significantly lower than those of singles because married couples are more conscious in spending based on their belief that the quality must compensate for its cost.
1.4 Occupation and Income
Table 5Running Averages based on Occupation
AP Architect Artist DENTIST Editor
Average of R1 3.00 4.50 4.00 5.00 4.00
Average of R2 3.00 3.50 3.00 5.00 4.00
Average of R3 3.00 3.50 3.00 4.00 5.00
Average of R4 3.00 4.00 4.00 4.00 4.00
3.00 3.88 3.50 4.50 4.25
Average of Re1 2.00 4.00 4.00 5.00 5.00
Average of Re2 3.00 3.50 3.00 4.00 4.00
Average of Re3 3.00 3.50 4.00 4.00 5.00
Average of Re4 3.00 3.50 3.00 4.00 5.00
2.75 3.63 3.50 4.25 4.75
Average of A1 3.00 4.50 4.00 5.00 5.00
Average of A2 3.00 4.00 3.00 4.00 5.00
Average of A3 3.00 4.00 4.00 4.00 5.00
Average of A4 3.00 3.50 4.00 4.00 4.00
3.00 4.00 3.75 4.25 4.75
Average of E1 2.00 4.00 4.00 5.00 4.00
Average of E2 2.00 4.00 3.00 4.00 5.00
Average of E3 3.00 4.00 3.00 5.00 5.00
Average of E4 3.00 4.00 3.00 5.00 5.00
2.50 4.00 3.25 4.75 4.75
Average of T1 3.00 4.00 4.00 5.00 5.00
Average of T2 3.00 3.50 3.00 4.00 5.00
Average of T3 3.00 3.50 3.00 4.00 5.00
Average of T4 2.00 3.50 3.00 4.00 5.00
2.75 3.63 3.25 4.25 5.00
Engineering Entrepreneur Homemaker NURSE OFW PHYSICIAN
3.00 4.14 4.60 3.00 3.00 5.00
3.33 4.14 4.20 4.00 3.50 5.00
2.67 4.00 4.00 4.00 4.00 5.00
2.67 4.43 3.60 3.00 4.00 5.00
2.92 4.18 4.10 3.50 3.63 5.00
3.33 4.00 4.40 4.00 3.50 5.00
3.33 4.29 4.60 4.00 3.00 5.00
3.33 4.14 4.20 3.00 3.50 5.00
2.33 4.00 4.00 3.00 4.00 5.00
3.08 4.11 4.30 3.50 3.50 5.00
3.00 4.57 4.20 4.00 3.50 5.00
3.00 4.14 4.00 4.00 3.50 5.00
3.00 4.00 3.80 4.00 3.50 4.00
3.00 4.14 3.60 4.00 4.00 5.00
3.00 4.21 3.90 4.00 3.63 4.75
3.00 3.86 4.40 4.00 4.00 5.00
2.67 4.29 4.40 4.00 4.50 5.00
3.33 4.14 4.00 4.00 4.00 5.00
2.67 4.29 4.40 4.00 4.00 5.00
2.92 4.14 4.30 4.00 4.13 5.00
3.00 4.29 4.60 4.00 4.00 5.00
2.67 4.14 4.40 4.00 3.50 5.00
3.00 4.14 4.20 4.00 4.50 5.00
3.00 4.29 4.40 4.00 3.50 4.00
2.92 4.21 4.40 4.00 3.88 4.75
Professor Rank and File Student Supervisory/Upper Management
4.00 4.00 4.15 4.00
3.50 4.08 4.16 3.80
4.00 4.17 4.12 3.80
3.50 4.33 4.10 4.00
3.75 4.15 4.13 3.90
4.00 4.17 4.11 4.20
4.00 3.92 4.07 4.20
3.50 4.50 4.20 4.20
4.00 4.25 4.17 4.00
3.88 4.21 4.14 4.15
4.00 4.50 4.29 4.00
3.50 4.33 4.20 4.00
3.50 4.17 4.13 3.80
4.00 4.08 4.07 4.20
3.75 4.27 4.17 4.00
4.50 4.42 4.10 3.80
4.50 4.33 4.21 4.00
4.50 4.33 4.18 4.00
4.00 4.25 4.18 4.00
4.38 4.33 4.17 3.95
3.50 4.33 4.50 3.80
4.00 4.50 4.44 3.80
4.00 4.50 4.21 3.80
3.50 4.42 4.34 3.60
3.75 4.44 4.37 3.75
INCOME Rate
less than 10000 4.19
10000-20000 3.95
20000-30000 4.00
30000- above 3.93
Table 6 Running Averages based on Income
Income earners of less than 10000 composed mostly of students having a higher level of satisfaction because their spending capacity is dependent on their allowances. Their satisfaction is dependent on the trend.
Income earners of 10000 to 20000 composed of rank and file employees. They have a lower level of satisfaction than the income earners of less than 10000 because their jobs are somehow similar of those of the employees and they have the knowledge of providing satisfactory service.
Income earners of 20000 to 30000 have a high level of satisfaction. They have a stable earning job that could provide for their family and also they have spare money to spend for their wants.
Income earners of 30000 and above have a low level of satisfaction. Having the means to purchase, earners tend to set a higher standard for their satisfaction.
II. Over- all Responses of Customers and Employees
Table 7Responses of Customers and Employees to Satisfaction
Average Diff
Customer Employee
Reliability 1 4.13 5.00 0.87
2 4.12 5.00 0.88
3 4.08 5.00 0.92
4 4.08 5.00 0.92
4.10 5.00 0.90
Responsiveness 1 4.10 5.00 0.90
2 4.05 5.00 0.95
3 4.18 5.00 0.82
4 4.13 5.00 0.87
4.12 5.00 0.88
Assurance 1 4.28 5.00 0.72
2 4.17 5.00 0.83
3 4.09 5.00 0.91
4 4.05 5.00 0.95
4.15 5.00 0.85
Empathy 1 4.10 5.00 0.90
2 4.19 5.00 0.81
3 4.17 5.00 0.83
4 4.17 5.00 0.83
4.16 5.00 0.84
Tangibles 1 4.44 5.00 0.56
2 4.38 5.00 0.62
3 4.19 5.00 0.81
4 4.28 5.00 0.72
4.32 5.00 0.68
In general, there is no relationship between the customer satisfaction and the employee satisfaction. It was supported by the results taken from the survey. The employee satisfaction is rated excellent in over- all by the employees because it was perceived by them that the standard service quality of Starbucks was followed and delivered to its customers.
The variances between the customer satisfaction and employee satisfaction are due to the stratified demographic profile of the customers. It can be seen that the customers are classified based on their gender, age, status and income.
Conclusion
There is no positive relationship between the customer satisfaction and employee satisfaction. The employees perceived that the services they rendered were in coherence with the set standards for service quality of Starbucks that will satisfy its customers. On the other hand, customers have a different level of satisfaction. The variance between the level of satisfaction of customers and employees was caused by the variation of the level of satisfaction of customers depending on their demographic profile.
Recommendation
The results based on the overall service quality of Starbucks showed that the customers were satisfied but there was still a difference between perceived level of satisfaction of employees and customers. The demographic profile of the customers caused the variation. Therefore, the researchers recommend the following actions to achieve the perceived level of customers’ satisfaction equal to employees’ satisfaction:
The employees should be more aware of the diversity of customers in order for them to anticipate the customers’ needs and concerns. They must encourage their customers to express their concerns. Theservice should be rendered consistently andprogressively.
The management and employees of Starbucks must be more sensitive to the feelings and thoughts of the customers and in return the management and employees should also know how to communicate well their feelings and thoughts to the customers. There should be open communication between the customers and employees.
The Starbucks must maximize its space to be able cater a larger group. It should also consider providing space for customers who wanted to be alone and also to those who are with the large group of friends.
The employees should maintain and improvetheir hospitality towards the customers. The management should think of more ways of establishing customer confidence towards the company. They must continue in guaranteeing whatever they relay to the customers and must continue to provide a secured environment for the customers.
Appendix A
Survey Questionnaire
We are conducting a research regarding the service quality management of Starbucks, AUF branch in relation to customer satisfaction. This survey was utilized to gather information about the satisfaction of customers in relation to the service quality management. Rest assured that all information will be treated with utmost confidentiality. Please accomplish the survey form by following the instructions below.
Personal Profile
Name (Optional): ______________________________
Gender: Female___ Male___
Age: ___
Civil Status: ______________
Occupation: ______________
Income: ___ less than 10,000
___ 10,000- 20,000
___ 20,000- 30,000
___ 30,000- above
___ not applicable
Instruction: Assess the service quality management of Starbucks in terms of the following variables. Encircle your rating using the scale of 1-5, 5 being the highest, regarding the services they are providing.
5- Excellent 3- Slightly Satisfied 1- Poor
4- Satisfied 2- Dissatisfied
Reliability
1. The staffs and manager show integrity or fairness.
2. The staffs anticipate that the needs of customers will be provided.
3. Manager and staffs provide consistent services.
4. Manager and staffs provide credible information to customer inquiries.
Responsiveness
1. Starbucks takes actions quickly regarding customer concerns.
2. The staffs foresee the needs of customers.
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
3. The staffs are attentive to customers’ needs.
4. Manager and staffs assist customers
in any way they can.
5 4 3 2 1
5 4 3 2 1
Assurance
1. The staffs greet the customers
respectfully and graciously. 5 4 3 2 1
2. The needs of the customers are
guaranteed. 5 4 3 2 1
3. The staffs and manager assure
the security of customers. 5 4 3 2 1
4. Manager and staffs know how
to handle complaints. 5 4 3 2 1
Empathy
1. Starbucks are aware of things that
can help or harm their customers. 5 4 3 2 1
2. The staffs and manager show
understanding to their customers. 5 4 3 2 1
3. Staffs and manager are attentive to
the needs and concerns of customers. 5 4 3 2 1
4. Manager and staffs are approachable. 5 4 3 2 1
Tangibles
1. The personnel of Starbucks are properly
dressed and well groomed. 5 4 3 2 1
2. The equipment are working
and in good condition. 5 4 3 2 1
3. The facilities are enough to accommodate all customers. 5 4 3 2 1
4. Starbucks has an attractive appearance. 5 4 3 2 1
Reference
Fitzsimmons (2006). The nature of services.Service Management,5th Edition,2,17.McGraw-Hill Companies,Inc.,1221 Avenue of the Americas, New York.
Fitzsimmons (2006).An open-systems view of services.Service Management,5th Edition,2,29.McGraw-Hill Companies,Inc.,1221 Avenue of the Americas, New York.
Fitzsimmons (2006).Dimension of service quality.Service Management,5th Edition,2,129.McGraw-Hill Companies,Inc.,1221 Avenue of the Americas, New York.
Peter and Olson (2002).Consumer behaviour is dynamic.Consumer Behavior and Marketing Strategy,6th Edition,1,7. McGraw-Hill Companies,Inc.,1221 Avenue of the Americas, New York.
Chuck Williams (2006).Service profit chain.Effective Management,367-368.Thomson South-Western, 5191 Natorp Boulevard Mason, Ohio,45040 USA.
Neal,C.,Quester,P.&Hawkins,D. (2004).Post-purchase processes,customer satisfaction and consumer loyalty.Consumer Behavior-Implications for Marketing Strategy,184. McGraw-Hill Companies, Inc.,1221 Avenue of the Americas, New York.
Assael, H. (2004).Post-purchase evaluation-satisfaction versus dissatisfaction.Consumer Behavior- A Strategic Approach,45.Houghton Mifflin Company,222 Berkeley Street,Boston.
Arnould, E., Price, L.&Zinkhan, G.(2002).Consumer satisfaction.Consumers,617-619. McGraw-Hill Companies, Inc.,1221 Avenue of the Americas, New York.
Blackwell, R.,Miniara, P.&Engel, J. (2001).Consumer behaviour and consumer research.Consumer Behavior,9th Edition,26.Harcourt College publishers, 6277 Sea Harbor Drive,Orlando.
Hawkins,D.,Best R.&Coney, K. (2001).Individual outcomes,need satisfaction.Consumer Behavior: Building Marketing Strategy,24. McGraw-Hill Companies,Inc.,1221 Avenue of the Americas, New York.
Goetsch,D.&Davis,S. (2010).Understanding customer-defined quality.Quality Management for Organizational Excellence- Introduction to Total Quality,137.Pearson Prentice Hall,Pearson Education,Inc.,Upper Saddle River,New Jersey 07458.
Johnston,R.&Clark,G. (2001).Service and service operations management.Service Operations Management,5-9.Pearson Education Limited,United Kingdom.
Burrow,J.&Kleindl,B. (2013).The product life cycle.Business Management,555. Thomson South-Western, 5191 Natorp Boulevard Mason, Ohio,45040 USA.