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CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Consumer all over the world have become more quality conscious;

therefore customers’ requirements for higher quality service have been increased

(Lee, 2005).The rapid growth of service sectors all over the world and the

deregulation of many services industries have lead researchers with an interest in

quality issues to the importance of acquiring more understanding about service

quality. Measuring service quality may involve both subjective and objective

processes. In both cases, it is often some aspect of customer satisfaction which is

being assessed. In spite of criticality of service quality to businesses, measuring

service quality causes difficulties to service providers, as of the unique

characteristics of services: intangibility, heterogeneity, inseparability (Douglas &

Connor, 2003). In sight of this, service need a distinctive framework,

SERVQUAL model developed by Parasuraman et al. (1985; 1988) is most

preferred and widely used model for measuring service quality in the service

industry.

SERVQUAL is a multi-dimensional research instrument, designed to

capture consumer expectations and perceptions of a service along the five

dimensions that are believed to represent service quality. SERVQUAL is built on

the expectancy-disconfirmation paradigm, which in simple terms means that

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service quality is understood as the extent to which consumers' pre-consumption

expectations of quality are confirmed or disconfirmed by their actual perceptions

of the service experience. When the SERVQUAL questionnaire was first

published in 1988 by a team of academic researchers, A. Parasuraman, Valarie

Zeithaml and Leonard L. Berry to measure quality in the service sector, it

represented a breakthrough in the measurement methods used for service quality

research. The diagnostic value of the instrument is supported by the model of

service quality which forms the conceptual framework for the development of the

scale (i.e. instrument or questionnaire). The instrument has been widely applied in

a variety of contexts and cultural settings and found to be relatively robust. It has

become the dominant measurement scale in the area of service quality. In spite of

the long-standing interest in SERVQUAL and its myriad of context-specific

applications, it has attracted some criticism from researchers.

The objective of this study is to assess a school service quality along each

of the five SERQUAL dimension, to analyze the relationship between service

quality and customer satisfaction, to gain a better understanding of service quality

dimensions that affect customer satisfaction from students’ perspective, to

develop and test the SERVQUAL model scale for measuringan autonomous

university’s service quality, and to study the due importance given to each

attribute in accessing the service quality by the students.

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Background of the Study

The relationship between service quality and customer satisfaction has

received considerable academic attention in the past few years. But the nature of

the exact relationship between service quality and customer satisfaction

(especially in the way the two constructs have been operationalized) is still

shrouded with uncertainty. (G.S. Sureshchandar et al.,2002).

The Service Quality Model or SERVQUAL Model is an emphasis on the

development of quality systems in the field product quality. Over time, it became

more and more important to improve the quality of related services.Improved

service quality could give organisations a competitive edge. In addition, service in

general became more important. (Mulder, P., 2018)

The researchers of this study want to find out if the service quality of the

accounting and finance department of an autonomous university regarding its

accounting and finance department. Since the Finance and Accounting are

members of the institution this are two of the most significant aspect that makes a

university operate daily. The investors of it which are mostly the students should

also have the idea of where did their investment went and the like.

This research helped to see the comparison between the levels of

expectations versus what is happening in the reality. This is also to understand

both sides of the party regarding their situation and problems dealing with service

quality. The researchers also helped and saw the improvement that the finance
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and accounting department need and at the same time the progress that have been

done already with also the assistance of Total Quality Management or TQM.

The Finance and Accounting department are related to the profession of

the researchers. So this also shows a bird’s eye perspective on their profession

after graduation for this also show them what are the do’s and don’ts it has been

decided that the study occurred at an autonomous university. The researchers may

be in the same field of work. Due to this the researchers have gain interest in

studying this topic.

Theoretical Framework

The study anchored on the SERVQUAL principles of Parasuraman

(1988):

Service quality is a critical component of customer’s perception that will

be the dominant element in customer evaluation. Customers judge by the way the

outcome was delivered. Central to the SERVQUAL Model is the expectancy

pattern of the service quality; the difference between expectations and perception.

If there is a difference in quality, that is shown in the difference (the gap) between

what was expected and what was actually experienced. The SERVQUAL Model

enables organisations to learn which factors play a role how the customer’s

expectancy pattern is formed. That way, the organization can improve itself and

take this expectancy pattern into account beforehand.

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The reliability depends on to what extent the service is accurate and

honest. Responsiveness is about promptly and adequate responding to customer

questions or complaints. Tangibility is what is visible to the customers in the form

of for instance the visibility of staff (work clothes/uniform), the decoration and

cleanliness of an office building and all other facilities. The knowledge and

courtesy of employees and their ability to convey trust and confidence is called

assurance. And last, empathy is the provision of caring, individualized attention to

customer.

Reliability

Customers want to count on their providers. They value that reliability.

For them, do what you say you’re going to do when you said you were going to

do it. Don’t providers yearn to find out what customers value? This is it.It’s three

times more important to be reliable than have shiny new equipment or flashy

uniforms.Doesn’t mean you can have ragged uniforms and only be reliable.

Service providers have to do both. But providers’ first and best efforts are better

spent making service reliable.

Reliability is all about being consistent. A test will be reliable when it

gives the same repeated result under the same conditions. This dimension is the

one with the highest influence on the customer perception of quality. It is the

ability to perform the service accurately and dependably. When service delivery

fails the first time, there is a phase called “Recovery” for the service provider to
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have a second chance. The customers’ expectations are usually higher during the

recovery phase than the failed one. That’s why the reliability dimension ensures

timely delivery time after time, helps the service provider to meet the customers’

expectations fully at the lowest level of service expectation.

Tangibility

Even though this is the least important dimension, appearance matters.

Just not as much as the other dimensions. It refers to physical facilities,

equipment, and appearance of a service provider’s employees. Its job is

multifunctional. Tangibles provide the customer a proof of the quality of service.

Sometimes when a company focuses more on the tangibility of the

organization, they fall behind on responsiveness and reliability. Tangibility is the

least important dimension, but still, it belongs to the dimensions that customers

depend on giving quality services.

Responsiveness

Respond quickly, promptly, rapidly, immediately, instantly. Waiting a day

to return a call or email doesn’t make it. Even if customers are chronically slow in

getting back to providers, responsiveness is more than 1/5th of their service

quality assessment.

It is the willingness of the service provider’s employees to help customers

and to provide them with prompt service. The customers may have inquiries,
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special requests, complaints, etc. In fact, each customer may have problems of his

or her own. The customers always want to go beyond the limits of the trained

employee facing them. Responsiveness is the willingness to go that extra distance

for a customer. It is also the timing of response for a customer request, if it is fast

or too slow. Responsiveness also captures the notion of flexibility and ability to

customize the service to customer needs.

Empathy

Services can be performed completely to specifications. Yet customers

may not feel provider employees care about them during delivery. And this hurts

customers’ assessments of providers’ service quality. Service providers should put

themselves in the shoe of the customers, the company would get a better

viewpoint.

It involves the caring personal attention which the company offers its

customers. Having clear, understandable and jargon-free conversations with the

customers.And most importantly, having an understanding of the customers’

needs.

Assurance

Service providers are expected to be the experts of the service they’re

delivering. It’s a given. SERVQUAL research showed it’s important to

communicate that expertise to customers. If a service provider is highly skilled,

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but customers don’t see that, their confidence in that provider will be lower. And

their assessment of that provider’s service quality will be lower.

It means to inspire trust and confidence. Assurance is defined as the

knowledge of employees’ courtesy and the employees’ ability to inspire trust and

confidence. This dimension is particularly important for the customers’

perceptions. It includes the employees’ competence, experience, qualifications,

skills, politeness, credibility, honesty and security of all types (physical, financial,

confidentiality and so on).

Customers’ assessments include expectations and perceptions across all

five SERVQUAL dimensions. Service providers need to work on all five, but

emphasize them in order of importance. If sacrifices must be made, use these

dimensions as a guide for which ones to rework.

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Research Framework

RESPONDENTS’ CATEGORY:

 BS IN ACCOUNTANCY
 BSBA MAJOR IN HUMAN RESOURCE
DEVELOPMENT MANAGEMENT
 BSBA MAJOR IN MARKETING
MANAGEMENT
 BSBA MAJOR IN FINANCIAL
MANAGEMENT

SERVICE QUALITY OF ACCOUNTING AND

FINANCE DEPARTMENT

 RELIABILITY
 TANGIBILITY
 RESPONSIVENESS
 EMPATHY
 ASSURANCE

INPUTS FOR IMPROVEMENT

Figure 1. Research Paradigm

In applying the research framework presented in Figure 1, the research

paradigm illustrates the framework used in this study. The respondents are the

students enrolled in BS in Accountancy, BSBA Major in Human Resource

Management, BSBA Major in Marketing Management, BSBA Major in Financial

Management, under the College of Business Management and Accountancy of

Trinity University of Asia which are represented by the first box, who assessED

the service quality of the accounting and finance department of TUA as

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represented by the middle box. The output is the inputs for improvement which is

represented by the last box. Significant difference in the assessment of the

students is determined as indicated by the broken lines.

Statement of the Problem

The study was conducted to assess the service quality of the accounting

and finance department of Trinity University of Asia.

Specifically, it was conducted to provide answers to the following questions:

1. What is the assessment of the BS in Accountancy students on the

service quality of the accounting and finance department in an

autonomous university:

1.1 Reliability;

1.2 Tangibility;

1.3 Responsiveness;

1.4 Empathy and

1.5 Assurance?

2. What is the assessment of the BSBA Major in Human Resource

Development Management students on the service quality of the

accounting and finance department in an autonomous university:

2.1 Reliability;

2.2 Tangibility;

2.3 Responsiveness;
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2.4 Empathy and

2.5 Assurance?

3. What is the assessment of the BSBA Major in Marketing Management

students on the service quality of the accounting and finance department in

an autonomous university:

3.1 Reliability;

3.2 Tangibility;

3.3 Responsiveness;

3.4 Empathy and

3.5 Assurance?

4. What is the assessment of the BSBA Major in Financial Management

students on the service quality of the accounting and finance department in

an autonomous university:

4.1 Reliability;

4.2 Tangibility;

4.3 Responsiveness;

4.4 Empathy and

4.5 Assurance?

5. Is there a significant difference in the assessment of the group of

respondents on the service quality of the accounting and finance

department in terms of:

5.1 Reliability;
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5.2 Tangibility;

5.3 Responsiveness;

5.4 Empathy; and

5.5 Assurance?

6. Based on the results of the study, what are the inputs for possible

improvements that can be proposed?

Hypothesis

There is no significant difference in the assessment of the group of student

respondents on the service quality of the accounting and finance department of an

autonomous university according in terms of: Reliability, Tangibility,

Responsiveness, Empathy, Assurance.

Significance of the Study

This study will give information and contribute to the following:

To the Finance and Accounting Department: The study can be a bridge

for improvement of quality service that they will provide the students.

Information can also be a supplementary knowledge that can bring ideas and

suggestions that can done in the unit (Finance Department and Accounting

Department) for the betterment of the students.

To the Finance and Accounting Department Head: Supplementary

knowledge for a better leadership that can imply in the unit. To give ideas that

may add or change the standards and basis of the present standards and principles.
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To the Students: The research can be a medium of the students’ voices

towards the reality of the services provided and what the students are expecting.

To the Future Researchers: The study can be an additional information

for the betterment of the future research regarding service quality.

Scope and Limitations

This study focused on and are limited to the perception of students’

satisfaction towards the service quality that is delivered by the Accounting and

Finance Department of Trinity University of Asia.

The data collection was conducted to 55.38% of the total population of

Trinity University of Asia – College of Business Management and Accountancy’s

undergraduates: BS in Accountancy, BSBA Major in Human Resource

Development Management, BSBA Major in Marketing Management, BSBA

Major in Financial Management; school year 2018-2019. The management and

staff of the Accounting and Finance Department are not within the scope of this

research. The study was done through the utilization of questionnaire to the

students as a survey and reference. By their strategy the researchers was able to

assess the service quality of the said department.

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Definition of Terms

Autonomous – Refers to having freedom in controlling itself

Finance and Accounting Department – Refers to the administrators or

employees that are working in the Finance and Accounting Department of

an autonomous school that falls under the Finance and Accounting

Department Head.

Finance and Accounting Department Head – Refers to the top person

that influences the decision-making of the whole Finance and Accounting

Department. The one who manages and oversee if the department’s

objective and standards are met.

SERVQUAL or Service Quality – Refers to the product of the effort that

every member of the organization invests in satisfying customers.

Total Quality Management or TQM - is a management philosophy that

seeks to integrate all organizational functions (marketing, finance, design,

engineering, and production, customer service, etc.) to focus on meeting

customer needs and organizational objectives.

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Acronyms

TQM – Total Quality Management

SERVQUAL – Service Quality

TUA – Trinity University of Asia

CBMA – College of Business Management and Accountancy

BSBA – Bachelor of Science in Business Administration

BS – Bachelor of Science

HRDM – Human Resource Development Management