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The Role of Karaoke Box Servicescapes Play in Customer Satisfaction

BY

Tam Pui Lam April 02007428 Marketing Option

An Honours Degree Project Proposal Submitted to the School of Business on Partial Fulfilment of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honours)

Hong Kong Baptist University Hong Kong

April 2005

Acknowledgement
I would like to take this opportunity to express my greatest appreciation to my supervisor, Ms. Greenie Ha, for her valuable advices and guidance given. Her promptly reply, even when she is in maternity leave, really contributes to the progress of my project a lot. Her kindness and patience support me to strive for the best of my report. A great credit should also go to Dr. Noel Siu for her advices during my supervisor maternity leave. Her expertise in Services Marketing provides me a lot of insights for deciding my research topic. In addition, I appreciate whole-heartedly for the help of focus group participants and for the support and care of my friends, especially for those who accompany with me to do observation and teach me how to make my project better. Lastly, I sincerely thanks for my parents love and care.

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Abstract
Karaoke is one of the most important and popular entertainment in Hong Kong. Since it is a kind of high customer involvement service, its facilities play an essential role in customer service encounter and satisfaction. However, no pervious research studies on servicescapes and even service quality of karaoke box. This research is first to investigate if karaoke box servicescapes affect customer satisfaction. The purpose of this paper is to determine the relationship among karaoke box servicescapes and customer satisfaction. Besides, which kind of servicescapes influence satisfaction most is also examined. In this study, Neway Karaoke Box is used as an example because of its popularity and dominant role in the industry. Furthermore, a framework of servicescapes is also developed which divides servicescapes into four dimensions. They are namely Ambient Environment, Spatial Layout and Functionality, Signs, Symbol and Artifacts and Cleanliness. The results discover that all dimensions of servicescapes have a positive effect on customer satisfaction where Cleanliness has the greatest impact. Finally, implications and

recommendations are discussed base on the findings in order to improve Neway Karaoke Box services. Most importantly, this study is a starting point for further research on karaoke box servicescapes.

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Table of Content
Acknowledgement Abstract 1 Introduction 1.1 Industry 1.1.1 Services Industry 1.1.2 Karaoke Industry 1.2 Background of Neway Karaoke Box Statement of the Problems Literature Review 3.1 Service Quality 3.2 Servicescapes 3.3 Customer Satisfaction Objectives of the Study Statement of Hypotheses Methodology 6.1 Research Method 6.2 Instrument and Sample size 6.2.1 Instrument and Questionnaire Design 6.2.2 Sampling 6.3 Data Analysis Method Findings and Analysis 7.1 Demographic and Consumption Characteristics 7.2 Factor Analysis 7.2.1 Factor Analysis on Servicescapes 7.2.2 Factor Analysis on Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention 7.3 Reliability Test 7.4 Multiple Regressions 7.4.1 Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction I II 1 1 1 1 2 2 3 3 4 7 7 8 10 10 10 10 11 12 13 13 14 14 19 21 21 21

2 3

4 5 6

Relationship among Eight Servicescapes Dimensions and Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention 7.5 Correlations 8 9 Discussions of the Findings and Analysis Implications and Recommendations 9.1 Dimensions of Servicescapes 9.2 The Role of Servicescapes Play in Customer Satisfaction 9.3 Importance of Customer Satisfaction 9.4 Implications for Research Limitations Conclusion

7.4.2

22

24 24 27 27 30 31 32 32 33

10 11

References Appendix Figures Questionnaire SPSS Output Observation Focus Group Script

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1 Introduction
1.1 Industry
1.1.1 Services Industry

Services industry is increasingly important and essential rather than product industry in these few decades. Companies not only provide products, but also excellent services. Therefore, service is acknowledged to be critical for all organizations and quality in the service sector has been of interest to marketing academics and managers. Most of the firms put much effort aiming at enhancing their service quality in order to differentiate themselves form rivals. For instance, department stores or fast food restaurants also provide delivery service and many retail stores focus on training their staff to be more polite and cordial so that customers will have a good experience of their patronages. 1.1.2 Karaoke Industry

Karaoke, which is originated in Japan, is a typical form of entertainment for Japanese business people; they drop into a bar with colleagues after work, have a drink, and enjoy singing popular songs to the accompaniment of karaoke. Karaoke has been entertaining people ever since its invention 20 years ago, and has become firmly established in Japanese society, going far beyond just a temporary boom (Karaoke Scene Magazine, n.d.a.). The first karaoke box, providing a place for entertainment, appeared in 1984 in Japan. Karaoke box industry became very popular since the early 1990s in Hong Kong (Neway Karaoke Box, n.d.a.). Many citizens in Hong Kong spend a considerable amount of time in karaoke (Chow and Lui, 2002). Singing in the
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Karaoke box is regarded as a leisure activity among them. The main target segment of karaoke box is teenager. However, other segments like middle age and upper scale people also like to stay in karaoke box.

1.2

Background of Neway Karaoke Box


Neway Karaoke Box, which is founded in 1993, will be applied in this study as it is the

market leader of the industry. It generates 60 percents of market share and operates more than 20 branches in busiest traffic (e.g. Mongkok and Causeway Bay), New Territories and other suburban residential areas. Its mission is to expand its karaoke empire and bring healthy, salubrious entertainment to the community. Therefore, Neway not only makes karaoke the most desired entertainment activity in Hong Kong, but also organized many activities for community benefits such as awards for advocating educational studies for young people. (Neway Karaoke Box, n.d.a.)

2 Statement of the Problems


Nowadays, people who study and work under great pressure. Leisure activities act an important role in people life. Spending time in the karaoke box seems becoming the first choice of relaxation among teenagers in the recent years. Karaoke box contains many individual rooms for customers to enjoy singing without affected by the others. Part of the services is regarded as self-service because customers need to participate in such as selecting the songs by themselves. Therefore, please and easy to use facilities should be offered in this high customer involvement services. This study will identify customers satisfaction level towards karaoke box servicescapes.
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Little consumer research has been conducted in the area of leisure services (Taylor et al., 1993). Researchers have spent considerable effort on exchanges which primarily provide utilitarian satisfaction, but have expended much less effort on products or services which are consumed for more hedonistic purposes (Babin et al., 1994) for extended periods of time (e.g. Arnould and Price, 1993; Price et al., 1995). Also, Bitner (1992) thought that managers continually plan, build, change, and control and organizations physical surroundings, but frequently the impact of a specific design or design change on ultimate users of the facility is not fully understood. Since most studies continue to focus on human interactions such as those between customers and providers, and customers with other customers (Gremler and Gwinner, 2000), the impact of servicescapes in services is less focused. Furthermore, servicescapes of karaoke box has not been used as an example of the relationship between servicescapes and customer satisfaction in the previous research. A study on karaoke box servicescapes is needed for the firm to pay more attention on its facilities provided so as to retain and attract the customers. Moreover, it can show how servicescapes influence customer satisfaction of enjoying karaoke service as well.

3 Literature Review
3.1 Service Quality

Service can be described as intangible, heterogeneous, inseparable and perishable. Service quality is first conceptualized and operationalized by Parasuraman, Berry and Zeithaml (1985,
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1988 and 1994) in 1985. Customer service, and service quality, is now a focus for many corporate or marketing strategy and high levels of service are typically seen as a means for an organization to achieve a competitive advantage (Lewis, 1993). Booms and Bitner (1981) propose an expanded marketing mix for services consisting of the four traditional elements (product, price, place, promotion) and three new elements which are physical evidence (the physical surroundings and all tangible cues), participants (all human actors in the service encounter including firm personnel) and other customers. One of the elements which is physical evidence is focused in this study. Literature suggested that customer satisfaction depends directly and most immediately on the management and monitoring of individual service encounters (Parasuraman, Zeithaml, and Berry, 1985; Shostack, 1984, 1987; Solomon et al., 1985; Surprenant and Solomon, 1987). According to Shostacks (1985), service encounter was defined as an a period of time during which a consumer directly interacts with a service. His definition encompasses all aspects of a service firm including its personnel, physical facilities and other tangible elements, with which the consumer may interact during a given period of time.

3.2

Servicescapes

As services are produced and consumed simultaneously (Gronroos, 1984; Langeard et al., 1981; Zeithaml, Paresuraman, and Berry, 1985), customers are in the factory, often experiencing the total service within the firms physical facility. The factory, or the place where the service is produced, cannot be hidden and may in fact have a strong impact on customers perceptions of the service experience (Bitner, 1992). Since services are intangible and usually cannot be tried prior to
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purchase, consumers commonly look for cues about the firms capabilities and quality (Berry and Clark, 1986; Langeard et al., 1981; Shostack, 1977). The physical environment is rich in such cues (Rapoort, 1982) and may be very influential in communicating the firms image and purpose to its customers. Servicescapes refer to the environments in which services are delivered and where the firm and customer interact (Bitner, 1992; Zeithaml and Bitner, 1996). Physical evidence such as environmental design, dcor, signage, and business cards/stationery send messages that help to establish the firms image and influence the customers expectations (Baker, 1987; Booms and Bitner, 1982; Shostack, 1977). Servicescapes are more or less consciously designed places, calculated to produce commercially significant actions and sites for commercial exchanges. Research suggested that the variations in physical environment can affect perceptions of an experience independently of the actual outcome (Biggers and Pryor, 1982; Maslow and Mintz, 1956). It can aid or hinder the accomplishment of both internal organizational goals and external marketing goals (Bitner, 1992). Servicescapes also plays a multifaceted role within the service encounter as package, facilitator, socializer, and differentiator (Zeithaml and Bitner, 1996). As differentiator, the servicescapes may distinguish the firm from its competitors via architectural styling to convey the type of service it provides, or it may alter the servicescapes to reposition itself to attract more desirable market segments (Hoffman and Bateson, 2002; Zeitharml and Birtner, 1996). So, Bitner (1992) suggested that perceptions of the servicescapes may simply help people to distinguish a firm by affecting how it is categorized. Base on Bitner (1992) research,
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servicescapes consist of three components which are facility exterior, facility interior and other tangibles. Referring to the typology of service suggested by Bitner (1992) (refer to appendix Figure 1), karaoke box belongs to interpersonal services with lean servicescapes. Selected aspects of Bitners (1992) servicescape framework (refer to appendix Figure 2), which illustrates the relationship and effect of servicescape on customers behavioral response, will be used in this research. A more specific dimension of servicescapes is divided into three parts which are shown below: (1) Ambient Conditions (i.e. weather, temperature, air quality, noise, music, odors); (2) Spatial Layout and Functionality (i.e. the way in which equipment and furnishings are arranged, and the ability of those items to facilitate consumers' enjoyment); (3) Signs, Symbols and Artifacts (i.e. signage and decor used to communicate and enhance a certain image or mood, or to direct customers to desired destinations). In self-service settings, which own a great part of self-service, the creative use of physical design could support particular positioning and segmentation strategies and enhance specific marketing objectives, such as customer satisfaction and attraction (Bitner, 1992). For interpersonal services, Bitner (1992) also suggested that both organizational and marketing objectives could potentially be targeted through careful design of the servicescapes. Hence, servicescapes of karaoke box play a critical role in customers mind and it is worthwhile to study its importunacy.

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3.3

Customer Satisfaction

Bitner (1990) suggested that consumers reach satisfaction decisions by comparing product or service performance with prior expectations about how the product or service would or should perform. These expectations are compared with actual perceptions of performance as the product or service is consumed. If expectations exceed performance, dissatisfaction results. When expectations are met, or when performance actually exceeds expectations, satisfaction results. Shu, John and Victor (2002) explained that confirmation results when the actual performance matches initial expectations. When performance exceeds or falls short of expectations, positive or negative disconfirmation results. Positive disconfirmation leads to satisfaction or perceptions of high service quality, while negative disconfirmation leads to dissatisfaction or perceptions of low service quality. Research also suggested that the physical setting may also influence the customers ultimate satisfaction with the service (Bitner, 1990; Harrell, Hutt, and Anderson, 1980).

4 Objectives of the Study


The research objective is to investigate the customer satisfaction level of different kinds of servicescapes, which are Ambient Conditions, Spatial Layout and Functionality, Signs, Symbols and Artifacts and Cleanliness, in karaoke box. Their subsequent repatronage intentions and intentions to stay will also be examined. Curial servicescapes, which are used, seen or felt directly by the consumers, influencing customer satisfaction most in the karaoke industry will be
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determined so that karaoke box can focus on and do even more better in developing such servicescapes. Recommendations are provided to improve the dissatisfy servicescapes and for further research in the future.

5 Statement of Hypotheses
Suggested dimensions of servicescapes from Bitner (1992) are used as the factors affecting customer perceived quality of the servicescapes. The hypothesized model is shown in the appendix Figure 4. In this study, only curial servicescapes are examined in order to be more focus. The details of different dimensions are defined here. Firstly, Ambient Conditions of karaoke box including temperature, air quality, noise and lighting in the room and corridor. Secondly, Spatial Layout includes the layout of the room, equipment, furnishings and seating comfort while Functionality refers to the decorating system and songs. Lastly, Signs and Symbols refer to signs and Artifacts represent the theme karaoke rooms. H1: Ambient Conditions will have a positive effect on Overall Customer Satisfaction. H2a: Spatial Layout will have a positive effect on Overall Customer Satisfaction. H2b: Functionality will have a positive effect on Overall Customer Satisfaction. H3a: Signs and Symbols will have a positive effect on Overall Customer Satisfaction. H3b: Artifacts will have a positive effect on Overall Customer Satisfaction. After the spread of SARS, most of the consumers concern the cleanliness much more then before, especially in those situations in which customers must spend several hours in the leisure service setting (Wakefield and Blodgett, 1996). Interviewees of the focus group suggested that
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many consumers implicitly associate cleanliness with the quality of the servicescapes and it will strongly influence consumers perceptions of the service quality.

H4: Cleanliness of Servicescapes will have a positive effect on the Overall Customer Satisfaction.

Leisure services (such as theaters, recreation or health clubs, karaoke box, and sporting events, etc.) generally require customers to spend extended periods of time in the physical surroundings of the service provider (Turley and Fugate, 1992). In such cases, Bitner (1992) suggest that the facilities itself, or the perceived quality of the servicescapes, may have a substantial effect on customer satisfaction with the service experience, which in turn influences how long they desire to stay in the leisure service setting as well as how much money they will spend and whether they intend to repatronize the service provider (Cronin and Taylor, 1992; Wakefield et al. 1996) (refer to appendix Figure 3). Moreover, the perceived quality of servicescapes would be formed by the three dimensions plus Cleanliness of Servicescapes and their effect on overall customer satisfaction is being tested. H5: The perceived quality of the servicescapes will have a positive effect on customer satisfaction. H6: The perceived quality of the servicescapes will have a positive effect on the length of time they desire to stay in the servicescapes. H7: The perceived quality of the servicescapes will have a positive effect on their repatronage intentions. H8: Customer satisfaction will have a positive relationship with desire to stay in karaoke box for longer time. H9: Customer satisfaction will have a positive relationship with repatronage intention.

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6 Methodology
6.1 Research Method
This research has two stages. Firstly, a focus group of six people, who were customers of Neway Karaoke Box, was launched for generating initial insights in order to design the questionnaire. It was used to understand if those dimensions of servicescapes are useful and effective for collecting proper data which matching with the objectives. Observational research was also conducted before designing the questionnaire. Two branches of Neway Karaoke box (Mongkok and Aberdeen) were visited and observed for their external and internal servicescapes. The reason for choosing these two branches because they represented two different areas which were in busiest traffic and residential area in order to lessen the discrepancy and enhance the reliability of the research. Base on the focus group, Prat Avenue Branch was regarded as the most impressing branch. So, it also been observed. The main servicescapes dimensions of karaoke box were drawn out afterward for the questionnaire. Secondly, quantitative research as well as self-administrated questionnaire with Likert Scale questions was applied in this study as it could be easily control and collect data more properly.

6.2

Instrument and Sample Size


6.2.1 Instrument and Questionnaire Design

The questionnaire consisted of 49 statements for Servicescapes, Customer Satisfaction, Repatronage Intention and Intention to Stay for Longer Time. For those 7 closed-end questions, they were used for finding consumers characteristics and consumption background. All of the
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statement questions were 7-point Likert Scale questions which represent respondents agree or disagree level towards karaoke box servicescapes. The questions of servicescapes were developed base on the extracted dimensions of Bitners (1992) servicescapes framework (refer to appendix Figure 3). Ambient Conditions were examined by questions form 5 to 12; Spatial Layout and Functionality were tested by questions form 13 to 30; Signs, Symbols and Artifacts were presented by questions form 31 to 37; and questions form 38 to 40 represented Cleanliness of Servicescapes. All of these questions were designed according to the observation (refer to appendix Observation) and insights form focus group (refer to appendix Focus Group Script). They had not been used in the past since there was no pervious research conducted about the servicescapes of karaoke box. In terms of the questions testing respondents satisfaction level, pervious scales (Westbrook and Oliver, 1981) had been used as part of the questions. As pervious scales were not suitable for this research structure very well, some more new questions were added eventually. Questions form 41 to 45 illustrated Customer Satisfaction; questions form 46 to 49 examined Intention to Stay for Longer Time; and Repatronage Intention was tested by questions form 50 to 53. 6.2.2 Sampling

Judgment sampling of nonprobability sampling was carried out. Interviewees were selected. Since elderly and children would not visit karaoke box frequently, they were not the target respondents of this research. Teenagers and middle aged consumers which aged between 15 to 40 were target respondents. Structured questionnaires were distributed to 207 customers by
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face-to-face person administrated survey format outside four Neway karaoke box branches. They were located in Causeway Bay Plaza and Mongkok Argyle Centre which were in the busiest traffic; Shatin Belair Garden and Aberdeen Centre which were in the New Territories and suburban residential areas so as to obtain data form people of different demographic backgrounds (e.g. gender, ages and income level). The respondents were interviewed right after patronized the karaoke box so that they had a fresh memories about the servicescapes they had just experienced.

6.3

Data Analysis Method


The program of SPSS was employed for analyzing the collected data. Demographic data

used to show the characteristics of the respondents. The rating of servicescapes dimensions and customer satisfaction level were also computerized. Factor analysis and reliability test were applied for evaluating the validity as well as reliability of the statements. Besides, multiple regressions were used as well for determining the relationship of the servicescapes dimensions (independent variable) with customer satisfaction (dependent variable). Further investigation about which dimensions of servicescapes influenced customers satisfaction most as well as the intention to stay and repatronage were also determined. Lastly, correlation test was run for determining the relationship between customer satisfaction, repatronage intention and desire to stay for longer time.

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7 Findings and Analysis


7.1 Demographic and Consumption Characteristics
According to Table 1, demographic characteristics and consumption background of the respondents were shown clearly. Totally 207 respondents, including 68.6% female and 31.4% male, provided their opinions. People from age group 15 to 20 and 21 to 25, which were 42.5% and 48.3% respectively, dominated a large percentage of the sample. A majority (65.2%) of their income level per month was $2,000 or below and other 20.3% was ranged from $2,001 to $6,000. Only a total of 14.5% of the sample earned more than $6,000 per month. Respondents who patronized Neway Karaoke Box less than one time averagely in a month were 40.1% while 39.6 % of them at least visit one to two times a month. Total of 20.3 % respondents patronized Neway Karaoke box more than twice a month. About half of the respondents, 54.6%, visited Neway during lunch time which was around 10:00 to 14:00. Both happy hour and dinner time slot dominated 19.8% of the sample equally. Few respondents (5.8%) went to karaoke box during mid-night. For how long they stayed in the karaoke box, most people (42.5%) normally stayed around two to three hours. Another 38.2% of respondents stayed about three to four hours every time and 10.1% of them even stayed longer for more than four hours. The data indicated that the respondents at least stayed in the karaoke box for an hour and 9.2% stayed from one hour up to two hours.

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The Role of Karaoke Box Servicescapes Play in Customer Satisfaction Demographic Item Gender Age Data Male Female 15-20 21-25 26-30 31-35 36-40 Income Level $2,000 or below $2,001-$6,000 $6,001-$10,000 $10,01-$14,000 $14,001-$18,000 $18,001-$22,000 More than $22,000 [Table 1] % 31.4 68.6 42.5 48.3 5.8 1.9 1.4 65.2 20.3 6.3 2.4 0 1.0 4.8 Staying time in every patronize Time slot mostly patronize Item Patronage Frequency per month

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Consumption Characteristics Data Less than 1 time 1-2 times 3-4 times More than 4 times Lunch (10:00-14:00) Happy Hour (14:00-18:00) Dinner (18:00-00:00) Mid-night (00:00-06:00) Less than 1 hour 1-2 hours 2-3 hours 3-4 hours More than 4 hours % 40.1 39.6 11.1 9.2 54.6 19.8 19.8 5.8 0 9.2 42.5 38.2 10.1

Demographic and Consumption Characteristics of the respondents

7.2

Factor Analysis
7.2.1 Factor Analysis on Servicescapes

The principle component factor analysis with varimax was conducted on 36 statements. After deleting 9 cross loading items, 27 items left and split into eight factors instead of four original dimensions. Songs in Functionality; Layout of Rooms, Equipment, Furnishings and Sitting Comfort in Spatial Layout; Lighting and Temperature in Ambient Conditions; Cleanliness of Servicescapes; Air Quality and Noise in Ambient Conditions; Signs and Symbols; Theme Karaoke Room in Artifacts; and Decorating System in Functionality were the eight factors. The results of Kaiser-Meyer-Olkin Measure of Sampling Adequacy (0.735), Bartletts Test of Spericity (2550.798) and Significance (0.000) revealed that the factor analysis method was appropriate. The total variance of the items was 68.788% and the overall reliability of the factors was 0.849. All factors had eigenvalue greater than 1.0 so that the subsequent analysis which was multiple
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regressions and correlation could be conducted.


Kaiser-Meyer-Olkin Measure of Sampling Adequacy = 0.735 Test of Spericity = 2550.798 Significance = 0.000 Overall Reliability Coefficient Alpha = 0.849 Factor 1 29. Many new songs 28. New songs are available quickly 30. New songs are trendy 27. Varity of songs for me to choose Reliability Coefficient Alpha = 0.887 Eigenvalue = 5.976 , Variance explained = 22.135% Factor 2 Spatial Layout (Layout of Rooms, Equipment, Furnishings and Sitting Comfort) 19. Sufficient seats inside the rooms 14. Layout of rooms is convenient to customers 13. Size of room assigned is large enough for the numbers of customers 20. Size of television screen inside the rooms is appropriate 15. Table size and height inside the rooms is appropriate 18. Seats in rooms are very comfortable Reliability Coefficient Alpha = 0.790 Eigenvalue = 2.757 , Variance explained = 10.211% Factor 3 Ambient Conditions (Lighting and Temperature) 07. Sufficient lighting in lobby 08. Sufficient lighting in rooms 09. Button for adjusting lighting in rooms helps to enhance the atmosphere 05. Temperature of lobby is appropriate 06. Temperature inside the rooms is appropriate Reliability Coefficient Alpha = 0.728 Eigenvalue = 2.218 , Variance explained = 8.215% Factor 4 Cleanliness of Servicescapes 39. Corridor is clean and hygiene 40. Facilities inside the rooms are clean and hygiene 38. Nuts and snacks pack individually provides me a hygiene impression Reliability Coefficient Alpha = 0.754 Eigenvalue = 1.974 , Variance explained = 7.311% Factor 5 Ambient Conditions (Air Quality and Noise) 11. Rooms are always full of tobacco smell or odor 10. Air quality is bad in rooms Loading 0.799 0.756 Mean 5.42 5.19 Factor Mean 5.27 (6th) P.15 of 77 Loading 0.802 0.734 0.643 Mean 4.00 4.03 3.40 Factor Mean 3.81 (4th) 0.648 0.642 0.597 2.52 3.40 3.70 Loading 0.776 0.725 Mean 2.94 3.09 3.13 (1st) Factor Mean Loading 0.764 0.688 0.672 0.607 0.601 0.599 Mean 3.70 4.21 4.12 3.81 4.20 3.89 3.99 (5th) Factor Mean Functionality (Songs) Loading 0.896 0.875 0.870 0.727 Mean 3.19 3.18 3.04 3.20 3.15 (2nd) Factor Mean

The Role of Karaoke Box Servicescapes Play in Customer Satisfaction 12. Insufficient sound arrester among rooms Reliability Coefficient Alpha = 0.688 Eigenvalue = 1.823 , Variance explained = 6.752% Factor 6 Signs and Symbols 33. Sufficient signs / route signs (e.g. Toilet signs) 34. Signs / route signs can be easily understand Reliability Coefficient Alpha = 0.863 Eigenvalue = 1.568 , Variance explained = 5.809% Factor 7 Artifacts (Theme Karaoke Room) 37. Layout of theme karaoke rooms make me sing happier 36. Layout of theme karaoke rooms rise my intention to sing Reliability Coefficient Alpha = 0.905 Eigenvalue = 1.136 , Variance explained = 4.207% Factor 8 Functionality (Decorating System) Loading 0.871 0.831 Loading 0.920 0.892 Loading 0.882 0.871 0.688

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Mean 3.64 3.61

Factor Mean 3.63 (3rd)

Mean 3.92 4.06

Factor Mean 3.99 (5th)

Mean 3.26 3.01

Factor Mean 3.13 (1st)

25. Remote control is user-friendly 24. Decorating system is user-friendly Reliability Coefficient Alpha = 0.868 Eigenvalue = 1.120 , Variance explained = 4.147% [Table 2] Factors Extracted of Servicescapes

Factor mean represented the preferences of the respondents about the servicescapes. The eight items in ascending order of the mean score are Ambient Conditions (Lighting and Temperature) (3.13), Functionality (Decorating System) (3.13), Functionality (Songs) (3.15), Signs and Symbols (3.63), Cleanliness of Servicescapes (3.81), Spatial Layout (Layout of Rooms, Equipment, Furnishings and Seating Comfort) (3.99), Artifacts (Theme Karaoke Room) (3.99) and Ambient Environment (Air Quality and Noise) (5.27). Factor 1, known as Songs of Functionality, contained of four items. The items were Many new songs (0.896), New songs are available quickly (0.875), New songs are trendy (0.870) and Varity of songs for me to choose (0.727). Their reliability alpha was 0.887 and explained variance was 22.135%. The factor mean of 3.15 meaning that Songs in Functionality was the second dimension of servicescapes which respondents perceived was good.
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Factor 2 namely Spatial Layout (Layout of Rooms, Equipment, Furnishings and Seating Comfort) consisted of six items. The items about the Layout of Rooms were Sufficient seats inside the rooms (0.764), Layout of rooms is convenient to customers (0.688), Size of room assigned is large enough for the numbers of customers (0.672) and Table size and height inside the rooms is appropriate (0.601). For the items about Equipment was Size of television screen inside the rooms is appropriate (0.607). Seats in rooms are very comfortable (0.599) related to sitting comfort. The reliability alpha was 0.790 while variance explained is equal to 10.211%. This factor mean was scored the fifth high score (3.99) meaning that the respondents were almost neutral towards the quality of Spatial Layout. Factor 3 consisted of five items and regarded as Ambient Conditions (Lighting and Temperature). Sufficient lighting in lobby (0.776), Sufficient lighting in rooms (0.725) and Button for adjusting lighting in rooms helps to enhance the atmosphere (0.648) referred to the Lighting whereas Temperature of lobby is appropriate (0.642) and Temperature inside the rooms is appropriate (0.597) portrayed Temperature of Ambient Conditions. The reliability alpha was 0.728 and explained variance was 8.215%. This factor owned the lowest factor mean (3.13) so that respondents this factor was the best that Neway perform. Factor 4 was about Cleanliness of Servicescapes with three items. Corridor is clean and hygiene (0.802), Facilities inside the rooms are clean and hygiene (0.734) and Nuts and snacks pack individually provides me a hygiene impression (0.643) gained the fourth low score of factor mean (3.81). The factor reliability alpha was 0.754 and explained variance was 7.311%.
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Factor 5 corresponded to Ambient Conditions and consisted of three items. Rooms are always full of tobacco smell or odor (0.799) and Air quality is bad in rooms (0.756) were used to indicate the Air Quality while Insufficient sound arrester among rooms (0.688) illustrated the Noise. Reliability alpha and explained variance were 0.688 and 6.752% respectively. This factor has the highest factor mean (5.27) so that most of the respondents were slightly disagree that Neway did well in this dimension. Factor 6 referred to Signs and Symbols containing two items. Both of Sufficient signs / route signs (0.882) and Signs / route signs can be easily understand (0.871) were used to interpret this factor. Reliability Alpha is 0.863 and explained variance is 5.809%. The factor mean was 3.63 which was the third low score. Factor 7 was indicating Artifacts with two items about Theme Karaoke Room. Layout of theme karaoke rooms make me sing happier (0.920) and Layout of theme karaoke rooms raise my intention to sing (0.892) represented this factor. They contributed to a high factor mean (3.99) which was the second high among the other factors. It revealed that respondents were almost neutral towards the theme karaoke room. Its reliability is high (alpha = 0.905) and the explained variance is 4.207%. Factor 8 showed the Functionality about Decoration System by two items. One was Remote control is user-friendly (0.871) and another was Decorating system is user-friendly (0.831). Its reliability alpha was equal to 0.868 and explained variance was 4.147%. It factor mean was as low as Factor 3 did, only had 3.13. So, the respondents agreed that Neway did well in its decorating
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System. 7.2.2 Factor Analysis on Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention

The principle component factor analysis with varimax was applied on 13 items as servicescapes did. Five cross loading items were deleted while eight items remained and divided into three factors. Three factors of Overall Customer Satisfaction, which were Customer Satisfaction, Repatronage Intention and Desire to stay for longer time, were shown in Table 3. The result of Kaiser-Meyer-Olkin Measure of Sampling Adequacy was 0.854, Bartletts Test of Sphericity was 851.275 and Significance was 0.000. These results implied that the data was adequate for conducting factor analysis and the results were significance. Hence, factor analysis method was appropriate. The total variance of the items was 78.627% and the overall reliability of the factors was 0.860. Two factors had eigenvalue greater than 1.0, but one was nearly score 1.0 (Desire to Stay for Longer Time). This factor was kept since it was important to the research construct and its eigenvalue was not far below the standard of 1.0. So, the subsequent analyses which were multiple regression and correlation could be conducted.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy = 0.854 Bartletts Test of Spericity = 851.275 Significance = 0.000 Overall Reliability Coefficient Alpha = 0.860 Factor 1 Customer Satisfaction 42. I am satisfied with the facilities of Neway 43. My confident towards Neway is enhanced by its facilities 41. I think Neway facilities are excellent Reliability Coefficient Alpha = 0.911 Eigenvalue = 4.241 , Variance explained = 53.015% Factor 2 Repatronage Intention 53. It is a wrong choice of patronage Neway Karaoke Box Loading 0.835 Mean 2.91 Factor Mean 3.00 P.19 of 77 Loading 0.835 0.825 0.774 Mean 3.74 3.53 3.66 Factor Mean 3.64 (2nd)

The Role of Karaoke Box Servicescapes Play in Customer Satisfaction 50. I will repatronage Neway Karaoke Box 52. I will think of Neway when I want to go to karaoke box Reliability Coefficient Alpha = 0.814 Eigenvalue =1.094 , Variance explained = 13.672% Factor 3 Desire to stay for longer time 49. Neway Karaoke Box is the best choice for consuming time 48. I intent to stay for longer time in Neway Karaoke Box Reliability Coefficient Alpha = 0.648 Eigenvalue = 0.955 , Variance explained = 11.940% Loading 0.864 0.767 0.792 0.772

April Tam 02007428 2.93 3.16

Mean 4.37 4.24

Factor Mean 4.31 (3st)

[Table 3] Factors Extracted of Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention

Factor 1 was Customer Satisfaction consisting of three statements which were I am satisfied with the facilities of Neway (0.835), My confident towards Neway is enhanced by its facilities (0.825) and I think Neway facilities are excellent (0.774). The overall reliability alpha was 0.911 and explained 53.015% of the variance. The factor mean was 3.64 denoted that Customer Satisfaction was ranked the second in respondents intention of being satisfy to the karaoke box. Factor 2 was named Repatronage Intention. It involved three items including it is a wrong choice of patronage Neway Karaoke Box (0.835), I will repatronage Neway Karaoke Box (0.792) and I will think of Neway when I want to go to karaoke box (0.772). It revealed that the overall reliability alpha is 0.814 and the variance explained is 13.672%. The factor was ranked the first on its factor mean (3.00) compare with other factors suggested that respondents agreed with this factor. It implied that they agreed that they would repatronage in order to show their satisfaction. Factor 3 was called Desire to stay for longer time and it comprised of two statements which were Neway Karaoke Box is the best choice for consuming time (0.864) and I intent to stay for longer time in Neway Karaoke Box (0.767). It expressed that the reliability alpha of this factor

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was 0.648 and the explained variance was 11.940%. The factor mean (4.31) presumed that respondents considered this factor as the last important one representing customer satisfaction. No matter they satisfied or not, they were not intended to stay for longer in the karaoke box.

7.3

Reliability Test
Reliability test was conducted in both servicescapes dimensions and overall customer

satisfaction in order to prove their reliability for further analysis. Apart from Factor 5 in servicescapes and Factor 3 in overall customer satisfaction, all of the factors were reliable (Cronbach alpha Reliability > 0.70). So, the reliable factors were internally consistent. For the dimension which was lower than 0.70 in servicescapes, it would still be kept. Base on the Table 2, Factor 5 was a sub-dimensions of Ambient Conditions and the average reliability of both Ambient Conditions Factor 3 and Factor 5 was larger than 0.70 (alpha = 0.708). For the other factor which had low reliability in overall customer satisfaction was also decided to keep in the research since the deletion of this factor would lead to significant decline in the variance and affect the construct.

7.4

Multiple Regressions
The multiple regressions were used to find out the relationship among eight servicescapes

dimensions (independent variable) and Overall Customer Satisfaction (dependent variable). Their relationship with Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention would further investigate. 7.4.1 Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction

Since each dimension of servicescapes had divided into few categories to investigate which
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servicescapes influenced customers most, multiple regressions were conducted by using eight servicescapes dimensions as independent variables. The results showed in Table 5 implied that all dimensions are significant (Sig. T < 0.05) excepting Functionality (Decorating System) (Sig. T = 0.05) and 46% of the variance in Overall Customer Satisfaction was explained by the five dimensions (Adjusted R Square = 0.460). Cleanliness of Servicescapes scored highest (Beta = 0.386) among other dimensions as pervious did. The second high score was Functionality (Songs) (Beta = 0.234) and then Artifacts (Theme Karaoke Rooms) (Beta = 0.212). Therefore, Cleanliness of Servicescapes owned the strongest relation with Overall Customer Satisfaction.
Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction Dimensions Ambient Conditions (Lighting and Temperature) Ambient Conditions (Air Quality and Noise) Spatial Layout (Layout of Rooms, Equipment, Furnishings and Sitting Comfort) Functionality (Songs) Functionality (Decorating System) Signs and Symbols (Signs) Artifacts (Theme Karaoke Rooms) Cleanliness of Servicescapes Adjusted R Square = 0.460 B 0.212 / / 0.213 / / 0.154 0.307 Beta 0.188 0.111 0.125 0.234 0.109 0.118 0.212 0.386 Sig.T 0.001* 0.036* 0.029* 0.000* 0.050 0.030* 0.000* 0.000* *p < 0.05

[Table 5] Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction

7.4.2

Relationship among Eight Servicescapes Dimensions and Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention

The dimensions of Overall Customer satisfaction were also tested and the results were displayed in Table 6. The eight dimensions explained 46.5% of variance in Customer Satisfaction, 38.6% of variance in Repatronage Intention and 17.9% of variance in Desire to Stay for Longer

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Time. Cleanliness of Servicescapes was largely affected both Customer Satisfaction (Beta = 0.500) and Repatronage Intention (Beta = 0.406) as it had a strong association with them. Yet, Theme Karaoke Rooms of Artifacts had the strongest association (Beta = 0.325) with Desire to Stay for Longer Time. It implied that Theme Karaoke Rooms attracted customers to stay longer in the karaoke box.
Relationship among Eight Servicescapes Dimensions and Customer Satisfaction Dimensions Ambient Conditions (Lighting and Temperature) Ambient Conditions (Air Quality and Noise) Spatial Layout (Layout of Rooms, Equipment, Furnishings and Sitting Comfort) Functionality (Songs) Functionality (Decorating System) Signs and Symbols (Signs) Artifacts (Theme Karaoke Rooms) Cleanliness of Servicescapes Adjusted R Square = 0.465 Relationship among Eight Servicescapes Dimensions and Repatronage Intention Dimensions Ambient Conditions (Lighting and Temperature) Ambient Conditions (Air Quality and Noise) Spatial Layout (Layout of Rooms, Equipment, Furnishings and Sitting Comfort) Functionality(Songs) Functionality (Decorating System) Signs and Symbols (Signs) Artifacts (Theme Karaoke Rooms) Cleanliness of Servicescapes Adjusted R Square = 0.386 Relationship among Eight Servicescapes Sub-dimensions and Desire to Stay for Longer Time Dimensions Ambient Conditions (Lighting and Temperature) Ambient Conditions (Air Quality and Noise) Spatial Layout (Layout of Rooms, Equipment, Furnishings and Sitting Comfort) P.23 of 77 B / / / Beta 0.137 0.152 0.097 Sig.T 0.032* 0.017* 0.150 / 0.272 / / / 0.413 0.091 0.234 0.108 0.042 0.101 0.406 0.132 0.000* 0.069 0.475 0.088 0.000* *p < 0.05 B 0.327 / Beta 0.228 0.044 Sig.T 0.000* 0.436 0.210 0.214 / / / 0.435 0.188 0.214 0.032 0.056 0.066 0.500 0.001* 0.000* 0.579 0.303 0.236 0.000* *p < 0.05 B / / Beta 0.110 0.110 Sig.T 0.043* 0.038*

The Role of Karaoke Box Servicescapes Play in Customer Satisfaction Functionality(Songs) Functionality (Decorating System) Signs and Symbols (Signs) Artifacts (Theme Karaoke Rooms) Cleanliness of Servicescapes Adjusted R Square = 0.179 [Table 6] / / 0.258 0.314 / 0.118 0.115 0.229 0.325 0.115

April Tam 02007428 0.069 0.081 0.000* 0.000* 0.101 *p < 0.05

Relationship among Eight Servicescapes Dimensions and Dimensions of Overall Customer Satisfaction

7.5

Correlations

According to Table 7, Customer Satisfaction had a positive relationship with Repatronage Intention (Pearson Correlation = 0.555) and Desire to Stay for Longer Time (Pearson Correlation = 0.439). Both of them were significant (Sig. < 0.01).
Correlation Items Customer Satisfaction and Repatronage Intention Customer Satisfaction and Desire to Stay for Longer Time *Correlation is significant at the 0.01 level [Table 7] Correlation between Customer Satisfaction, Repatronage Intention and Desire to Stay for Longer Time Pearson Correlation 0.555 0.439 Sig. 0.000* 0.000*

8 Discussions of the Findings and Analysis


On the eleven hypotheses, seven were upheld ( H1, H2a, H3a, H3b, H4, H8 and H9), and four were not statistically significant (H2b, H5, H6 and H7). Referring to Table 5, the significant level of all dimensions was within the range (p < 0.05) except the Decorating System in Functionality, that was the reason why H2b was not supported. H2b, which was Functionality, included Songs and Decorating System. The dimension of Songs played a secondly important role in Overall Customer Satisfaction (Beta = 0.234) and had satisfy significant level (sig. = 0.000). The significant level of Decorating System was nearly satisfied (sig. = 0.05). When combining

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both dimensions, H2a and H2b were also upheld as the significant level was satisfied. Undoubtedly, Cleanliness influenced Overall Customer Satisfaction most and Ambient Conditions also had a positive effect on it so that H4 and H1 were also upheld. Although the relationship of Spatial Layout, Signs, Symbols and Artifacts were not had the strongest association with Overall Customer Satisfaction, it still had a positive relationship effect on it and therefore, H3a and H3b were supported. From Table 6, H5, H6 and H7 were only partially supported since some of the dimensions were not statistically significant. For the relationship among Perceived Quality of Servicescapes and Customer Satisfaction, Ambient Conditions, Spatial Layout, Songs in Functionality and Cleanliness were statistically significant. In the results of relationship among Perceived Quality of Servicescapes and Repatronage Intention, the Lighting and Temperature in Ambient Conditions, Songs of Functionality and Cleanliness were statistically significant. The results showed that Cleanliness of Servicescapes (Beta = 0.500 and 0.406) influenced both Customer Satisfaction and Repatronage Intention most and following was Songs of Functionality (Beta = 0.214 and 0.234). A greatly different result was indicated by the relationship among the Perceived Quality of Servicescapes and Desire to Stay for Longer Time. Ambient Conditions, Signs and Symbols and Artifacts were statistically significant where the theme karaoke room of Artifacts influenced customer length of staying in the karaoke box most. H5, H6 and H7 were just partially supported because the Perceived Quality of Servicescapes influenced entire Overall Customer Satisfaction at the same time but not only one of the
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dimensions. When combined three dimensions of Overall Customer Satisfaction, H1, H2a, H2b, H3a, H3b and H4 were all upheld. So, further investigation about which dimension of servicescapes affect most had been done in this research. Consistency also existed in the results for proving H5, H6 and H7. The significant level of the most influential dimension was also satisfied. Cleanliness of Servicescapes was the most influential dimension towards both Customer Satisfaction and Repatronage Intention and it got a proper significant level (Sig. = 0.000). Theme Karaoke Room of Artifacts also was a dimension which influenced customer desire to stay intention most and with a good significant level (Sig. = 0.000). Moreover, after the dimensions of servicescapes were further divided, there were no similar pervious research proved that the Perceived Quality of Servicescapes must have a positive effect on the three dimensions of Overall Customer Satisfaction. So, partially rejection of hypotheses was reasonable. Yet, it would not affect the implications of this study even though the hypotheses were not supported. Since H8 and H9 were supported, there was a positive relationship between Customer Satisfaction with Repatronage Intention and Desire to Stay for Longer Time. The results showed that the correlation between Customer Satisfaction with Repatronage Intention (0.555) was stronger than with Desire to Stay for Longer Time (0.439). It matched with the pervious research which suggested that customer satisfaction in turn influenced how long customer desire to stay in the leisure service setting as well as if they intended to repatronize the same service (Bitner, 1992; Cronin and Taylor, 1992; Wakefield et al. 1996). So, pervious research supported these hypotheses.
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9 Implications and Recommendations


9.1 Dimensions of Servicescapes
The original four dimensions of servicescapes were too general. After running the factor analysis, four dimensions were further divided into eight dimensions and each dimension represented one or few important servicescapes in karaoke box. Air quality and noise in Ambient Conditions scored the highest among other dimensions. It implied that customers dissatisfy with the air quality in Neway Karaoke Box and they also thought that it was very noisy in the room as the sound arrester installed between the rooms were not good enough. By referring to the demographic data, most of the customers at least stayed in the rooms for around two to three hours, bad air quality might lessen their happiness for enjoying the services and also the noise might cause them frustrated. Neway should put some efforts to improve this situation by the following suggested methods: (1) Installing air purifier in rooms for purification in stead of just installing air freshener; (2) Staff should also clean up the rooms immediately right after customers left; (3) Some rooms should be separated as non-smoking rooms and these rooms will never full of tobacco smell; (4) Rooms with different aromatherapy can be provided for customers to choose. Aromatherapy can help people relax and enjoy their singing in rooms. However, staff should make sure that customers like this kind of smell before assigning this kind of rooms to them.
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Although Spatial Layout and Artifacts were ranked the fifth by the customers, it factor mean score was 3.99. So, customers tended to neutral for the layout of rooms like number of seat was sufficient, the table size was appropriate and the television equipment was appropriate. To see in details, they were slightly dissatisfied with the Layout and size of rooms as well as the table size. It pointed out that there was a room for Neway to do improvement so as to provide a convenient condition for the customers to enjoy the service. Artifacts corresponded to theme karaoke room also scored the fifth lowest factor mean. It illustrated that respondents were tended to have no idea towards the Theme Karaoke Room. Most of the customers were neutral towards whether the layout and decoration of theme karaoke room would bust their intention to sing and made them felt happier. However, theme karaoke room greatly influenced the customer intention of staying longer in karaoke box by referring to the results of multiple regressions. It proved that theme karaoke room was quite successful in pleasing the customers. In this way, Neway should extend the number of theme karaoke rooms in different branches. Variety of theme karaoke room should be adopted as an interviewee suggested in focus group (refer to appendix Focus Group Script). Once they have a memorable impression, they will think of Neway as they want to go to karaoke box. Cleanliness of servicescapes was regarded as the fourth lowest mean dimensions (3.81) in customers mind. It illustrated that they were slight agreed that the facilities of Neway were clean. Although they had not idea on its cleanliness of facilities but they did not think its facilities were dirty. They believed that snacks with individual packing provided them a hygiene impression. It
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manifested that the efforts Neway did after SARS outbreak were quite good. A clean and hygiene perception started to build up in customers mind. The individually packing nuts and snacks also provided a hygiene impression to customers. The factor was played an essential effect on Customer Satisfaction and Repatronage Intention. Thus, Neway should keep on doing this and maintain the hygiene environment in every branch. In terms of Signs and Symbols, it was the third item that customers satisfied with. They slightly agreed that the signs shown in Neway were sufficient, clear and easily understand. Neway should have to make some improvement so that customers would state that they were strongly satisfied afterward. Songs in Functionality was ranked the second satisfy dimension meaning that customers were satisfied with the songs which Neway offered. They perceived that many songs were provided by Neway quickly and they were quite trendy. Even though customers were satisfied with this factor, it was not ranked high among the others. Most importantly, songs influenced both Customer Satisfaction and their Repatronage Intention very much. Neway should alter this factor and try to acquire the new songs more quickly. It revealed that song was a crucial element for maintaining Neways dominant role among its competitors in the industry. The most satisfy factors were Decorating System in Functionality and Lighting and Temperature in Ambient Conditions. Their factor mean was 3.13 represented that customers satisfied with these two factors. They agreed that lighting and temperature were appropriate and the decorating system was user-friendly. Consequently, Neway should keep all the satisfy factors
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for maintaining its service quality. These dimensions contributed to a good perceived quality of servicescapes among customers mind. Actually, all eight dimensions affected customer satisfaction as the same time. Neway should consider all servicescapes dimensions simultaneously for being the best Karaoke Box in Hong Kong. Neway can follow the importance of dimensions form the research findings and concentrate on its servicescapes step by step base on the priority. The air quality and noise problems ought to be improved promptly. Obviously, cleanliness was regarded as the most crucial elements associated with customer satisfaction. So, Neway should put cleanliness as a first priority. In order to retain customers to stay longer in the karaoke box, Neway should set a plan to redecorate its rooms as theme karaoke room. If Neway aim at increasing the repatronage rate, cleanliness as well as the songs should be concerned. It should try to purchase more new and trendy songs so as to attract the customers come and patronize again. It was not meaning that other dimensions could be ignored. It rather demonstrated that if a company wanted to success, it should utilize the limited resources and tried to gain the maximum profit as well as customer satisfaction.

9.2

The Role of Servicescapes Play in Customer Satisfaction


The case of Neway Kaoraoke Box provided a concrete model to see how servicescapes

affected customer satisfaction. According to the statistics, a strong correlation was formed between the servicescapes and customer satisfaction. Most of the firms just focused on performing
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better in their intangible services. However, they forgot that servicescapes (tangible element) were included in the services encounter and even the entire experience of the customers. At the time the firms improving their staff quality, they neglected an important factors which were actually easy to achieve and satisfy the customers. Servicescapes were treated as controllable factors than the services quality perform by staff. Servicescapes, as physical evidences, always evaluate by customers when they saw and felt it right after they entered the service setting. Bitner (1992) also suggested that perceptions of the servicescapes might simply helped people to distinguish a firm by affecting how it was categorized. If firm do better in servicescapes, it helps to give a good impression to customers and their overall perception towards the services will be enhanced. In karaoke industry, better quality of servicescapes means better customer satisfaction as customers have to involve in the services by themselves and most of the parts are self service.

9.3

Importance of Customer Satisfaction


Customer satisfaction was very important for many businesses. This relationship had been

proved in this study. So, once customers are satisfy with the servicescapes, they will satisfy with the overall services. Then, their repatronage intention will be enlarged and yet they will stay longer. If a firms can remain customers to stay longer, it will have more changes to do further business. In addition, the cost of keeping a loyal customer is cheaper than attracting a new customer. Repatronize seems like helping the firm to reduce its cost. That is why maintaining customer satisfaction is so important.

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9.4

Implications for Research


This study was successfully determined which servicescapes were essential for the customer

satisfaction. Details of servicescapes in each dimension were defined in various servicescapes. It also proved that pervious construct about the relationship between servicescapes and customer satisfaction was established and part of the hypotheses was satisfied. Hence, the conceptual framework will be helpful for further in-depth research. As there are still some servicescapes have not been evaluated, future research can further investigate. Likewise, the association between servicescapes and other factors can also be studied such as customer loyalty.

10

Limitations

Even though the research seems very successful, there were still many uncontrollable factors causing error or bias and therefore impacting the research results. These limitations were being lessened as possible. Firstly, in terms of the sample, a small sample size was hard to represent the opinions of the large customer traffic (10 millions in Year 2002) of Neway Karaoke Box (Neway Karaoke Box, n.d.a.). Besides, only 15 to 40 year old people were accepted as a respondent not only neglected part of the karaoke box consumers opinions, but might also cause bias in the results. The distribution of the questionnaire should be outside every branch in order to lessen the discrepancy, but the questionnaires were just only conducted outside four branches. Moreover, judgment sampling was carried out, the research might not representative.
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Regarding to the instrument used in this research, 7-point Likert Scale questions were used. Central tendency problem was caused and the results might not be so representative and accurate for indicating the problems rose. Furthermore, the questions in the questionnaires were not followed the previous research questionnaires. The validity and reliability of the statements would be doubt and that why factor analysis and reliability test were conducted. Considering to the literature review, there was no pervious research done on karaoke box servicescapes and customer satisfaction. The model creation just followed the relevant research by extracting parts of their structure as this research model. Therefore, the three dimensions of servicescapes including Ambient Environment, Spatial Layout and Functionality and Signs, Symbols and Artifacts might not be so appropriate for measuring karaoke box servicescapes. Even if some adjustment had been made in order to build up a tailor-made model for this research, not all the servicescapes could include in the model. So, some less important servicescapes had been excluded. Notwithstanding, the excluding servicescapes might also play an influential role in customer satisfaction. Therefore, further study about this topic was needed in order to compensate the defects of this study.

11

Conclusion

The dimensions of servicescapes were very useful for indicating customer satisfaction and it also had a strong relationship with repatronage intention. Among the four major dimensions and the sub-dimensions of servicescapes, cleanliness of servicescapes was also prominent. It used to
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remind that people perceived karaoke box as an unclean service setting. By changing the bad perception, cleanliness environment should be maintained in karaoke box. It is worthwhile to channel more resources for keeping the environment clean as it had a great effect on customer satisfaction. Although there were some limitation in this research, the servicescapes model could be further investigate and examine in the future.

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Shostack, G. Lynn (1977), Breaking Free Form Product Marketing, in Journal of Marketing, 41 (April), 73-80. Shostack, G. Lynn (1984), Designing Services That Deliver, in Harvard Business Review, 62 (January-February), 133-9. Shostack, G. Lynn (1985), Planning the Service Encounter, in The Service Encounter, John A. Czepiel, Michael R. Solomon, and Carol F. Surprenant, eds. New York: Lexington Books, 243-54. Shostack, G. Lynn (1987), Service Positioning Through Structural Change, in Journal of Marketing, 51 (January), 34-43. Shostack, G.L. (1977), Breaking free form product marketing, in Journal of Marketing, Vol. 41, April, pp. 73-80. Shu Tian-Cole; John L Crompton; Victor L Willson, An empirical investigation of the relationships between service quality, satisfaction and behavioral intentions among visitors to a wildlife reguge, in Journal of Leisure Research, First Quarter 2002, 34, 1, ABI/INFORM Global, pg. 1. Solomon, M.R. (1985), Packaging the service provider, in Service Industries Journal, Vol. 5, July, pp.64-71. Solomon, Michael R., Carol Suprenant, John A. Czepiel, and Evelyn G. Gutman (1985), A Role Theory Perspective on Dyadic Interactions: The Service Encounter, in Journal of Marketing, 49 (Winter), 99-111. Suprenant, C. and M.Solomon, 1987, Predictability and Personalization in the Service Encounter, in Journal of Marketing, Vol.51 (April), pp.86-96. Taylor, S.A., Sharland, A., Cronin, J.J. Jr. and Bullard, W. (1993), Recreational service quality in the international setting, in International Journal of Service Industry Management, Vol. 4 No. 4, pp. 68-86. Turley, L.W. and Fugate, D.L. (1992, The multidimensional nature of services facilities: viewpoints and recommendations, in Journal of Services Marketing, Vol. 6, Summer, pp. 37-45. W K Chow; Gigi C H Lui (2002), Fire safety facilities assessment for karaokes, in Facilities, 20, 13/14; ABI/INFORM Global, pg. 441.
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Wakefield, Kirk L., Blodgett, Jeffrey G. (1996), The effect of the servicescape on customers' behavioral intentions in leisure service settings, in The Journal of Services Marketing, Santa Barbara, Vol.10, Iss. 6; pg. 45. Westbrook and Richard L. Oliver (1981), Developing Better Measures of Consumer Satisfaction: Some Preliminary Results, Advances in Consumer Research, 9, 94-9. Woodhouse Emma (2004), A Measure of Service Quality of Leisure Club, in Honours Degree Project of Hong Kong Baptist University. Zeithaml, V.A. and Bitner, M.J. (1996), Services Marketing, in McGraw-Hill, New York, NY. Neway Karaoke Box, Company Overview, (n.d.a.), Retrieved at 19-12-2004, from http://www.newaykb.com/. Karaoke Scene Magazine, History of Karaoke, (n.d.a.), Retrieved at 26-12-2004, from http://www.karaokescene.com/history/.

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APPENDIX

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Figure 1 Typology of Service Organizations Based on Variations in Form and Usage of the Servicescape by Bitner 1992

Figure 2 Framework for Understanding Environment-User Relationships in Service Organizations by Bitner 1992
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Figure 3 Servicescape Typology by Wakefield and Blodgett 1994

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Perceived Quality of Servicescapes Ambient Conditions


Lighting Temperature Air quality Noise

Customer Satisfaction Desire to Stay for Longer Time Repatronage Intention

Spatial Layout and Functionality


Layout of rooms Equipment Furnishings Sitting comfort Songs Decorating System

Signs, Symbols and Artifacts


Signs Theme karaoke rooms

Overall Customer Satisfaction

Cleanliness of Servicescapes Remarks: Perceived Quality of Servicescapes = Ambient Conditions + Spatial Layout and Functionality + Signs, Symbols and Artifacts + Cleanliness of Servicescapes Overall Customer Satisfaction = Customer Satisfaction + Desire to Stay for Longer Time + Repatronage Intention Figure 4 Hypothesized Model
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Questionnaire

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Survey of Neway Karaoke Box Facilities


Hello! I am Year Three student from the BBA Marketing option of Hong Kong Baptist University. I would like to conduct a survey on the customer satisfaction in terms of karaoke box facilities and hope that your valuable opinions are involved. All of your valuable opinions will only be used for academic analysis. Thank you! 1. Have you been to Neway Karaoke Box? Yes No (End of questionnaire) How many times did you patronage averagely in a month of the nearly year? Less than 1 time 1-2 times 3-4 times More than 4 times Which time slot does you mostly patronage Neway Karaoke Box? Lunch (10:00-14:00) Happy Hour (14:00-18:00) Dinner (18:00-00:00) Mid-night (00:00-06:00) How long did you stay in karaoke box averagely in every patronage? Less than 1 hour 1-2 hours 2-3 hours 3-4 hours More than 4 hours

2.

3.

4.

Please state your opinion towards Neway Karaoke Box facilities according to your experience. (1 represents strongly agree and 7 represents strongly disagree) Strongly agree Strongly disagree 05. Temperature of lobby is appropriate 1 2 3 4 5 6 7 06. Temperature inside the rooms is appropriate 1 2 3 4 5 6 7 07. Sufficient lighting in lobby 1 2 3 4 5 6 7 08. Sufficient lighting in rooms 1 2 3 4 5 6 7 09. Button for adjusting lighting in rooms helps to enhance the 1 2 3 4 5 6 7 atmosphere 10. Air quality is bad in rooms 11. Rooms are always full of tobacco smell or odor 12. Insufficient sound arrester among rooms 13. Size of room assigned is large enough for the numbers of customers 14. Layout of rooms is convenient to customers 15. Table size and height inside the rooms is appropriate 16. Leaflet standees occupy large part of the table 17. Household utensil for containing food occupy large part of 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7

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the table 18. Seats in rooms are very comfortable 19. Sufficient seats inside the rooms 20. Size of television screen inside the rooms is appropriate 21. Tone quality of microphones is good 22. I can control the level of microphones volume or echo easily 23. Microphone cables always intertwist and block the way 24. Decorating system is user-friendly 25. Remote control is user-friendly 26. Computer games in decorating system entertain me 27. Varity of songs for me to choose 28. New songs are available quickly 29. Many new songs 30. New songs are trendy 31. Posters post in lobby and corridor offer me the most updated information about new songs 32. Price list shows in lobby let me knows the fees clearly 33. Sufficient signs / route signs (e.g. Toilet signs) 34. Signs / route signs can be easily understand 35. Sufficient washrooms 36. Layout of theme karaoke rooms rise my intention to sing 37. Layout of theme karaoke rooms make me sing happier 38. Nuts and snacks pack individually provides me a hygiene impression 39. Corridor is clean and hygiene 40. Facilities inside the rooms are clean and hygiene 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7

Please state your satisfaction level towards Neway Karaoke Box. (1 represents strongly agree and 7 represents strongly disagree) Strongly agree 41. I think Neway facilities are excellent 1 2 42. I am satisfied with the facilities of Neway 43. My confident towards Neway is enhanced by its facilities 44. My satisfaction level towards Neway is largely affected by its facilities 45. Neway facilities disappoint me 46. The experience of patronage Neway is exactly what I need 47. I truly enjoy singing karaoke in Neway 48. I intent to stay for longer time in Neway Karaoke Box 1 1 1 1 1 1 1 2 2 2 2 2 2 2

3 3 3 3 3 3 3 3

Strongly disagree 4 5 6 7 4 4 4 4 4 4 4 5 5 5 5 5 5 5 6 6 6 6 6 6 6 7 7 7 7 7 7 7

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49. Neway Karaoke Box is the best choice for consuming time 50. I will repatronage Neway Karaoke Box 51. I will patronage Neway Karaoke Box more frequently 52. I will think of Neway when I want to go to karaoke box 53. It is a wrong choice of patronage Neway Karaoke Box 54. What is your gender? Male 55. What is your age? 15-20 years old 31-35 years old

1 1 1 1 1

2 2 2 2 2

3 3 3 3 3

4 4 4 4 4

5 5 5 5 5

6 6 6 6 6

7 7 7 7 7

Female

21-25 years old 36-40 years old

26-30 years old

56. What is your monthly income? $2,000 or below $2,001-$6,000 $10,001-$14,000 $14,001-$18,000 More than $22,000

$6,001-$10,000 $18,001-$22,000

Thanks for your valuable opinions End of Questionnaire

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Neway OK
OK 1. 2. Neway OK ()

1 1-2 3-4 Neway OK (10:00-14:00) (18:00-00:00)

3.

(14:00-18:00) (00:00-06:00)

4.

OK 1 1-2 4 3-4

2-3

Neway OK ( 1 7 ) 05. 06. 07. 08. 09. 10. 11. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7

12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

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22. (echo) 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. / (e.g.) 34. / 35. 36. 37. 38. 39. 40. OK OK

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6

7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7

Neway OK ( 1 7 ) 41. Neway 1 2 3 4 5 6 7 42. Neway 1 2 3 4 5 6 7 43. Neway 44. Neway 45. Neway 46. Neway 47. Neway OK 48. Neway OK 49. Neway OK 50. Neway OK 51. Neway OK 52. OK Neway 53. Neway OK 54. 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 7

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55. 15-20 31-35

21-25 36-40

26-30

56. $2,000 $10,001-$14,000

$2,001-$6,000 $14,001-$18,000

$6,001-$10,000 $18,001-$22,000

$22,000

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SPSS Output

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1. Factor Analysis on Servicescapes


KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .735 2500.798 351 .000

Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of VarianceCumulative % Total % of VarianceCumulative % Total % of VarianceCumulative % 5.976 22.135 22.135 5.976 22.135 22.135 3.124 11.569 11.569 2.757 10.211 32.346 2.757 10.211 32.346 2.995 11.094 22.662 2.218 8.215 40.561 2.218 8.215 40.561 2.543 9.418 32.081 1.974 7.311 47.873 1.974 7.311 47.873 2.201 8.151 40.232 1.823 6.752 54.625 1.823 6.752 54.625 2.050 7.593 47.825 1.568 5.809 60.434 1.568 5.809 60.434 2.031 7.520 55.345 1.136 4.207 64.641 1.136 4.207 64.641 1.880 6.963 62.309 1.120 4.147 68.788 1.120 4.147 68.788 1.749 6.479 68.788 .892 3.303 72.091 .847 3.136 75.226 .783 2.901 78.128 .755 2.798 80.926 .645 2.387 83.313 .602 2.228 85.541 .521 1.930 87.472 .492 1.822 89.294 .419 1.552 90.845 .381 1.410 92.256 .348 1.288 93.544 .340 1.260 94.804 .274 1.014 95.817 .257 .953 96.770 .243 .899 97.669 .190 .703 98.371 .156 .576 98.948 .151 .561 99.508 .133 .492 100.000

Component 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Extraction Method: Principal Component Analysis.

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Rotated Component Matrix
a

April Tam 02007428

Component 1 Layout 29 Many new songs Layout 28 New songs are available quickly Layout 30 New songs are trendy Layout 27 Varity of songs for me to choose Layout 19 Sufficient seats inside the rooms Layout 14 Layout of rooms is convenient to customers Layout 13 Size of room assigned is large enough for the numbers of customers Layout 20 Size of television screen inside the rooms is appropriate Layout 15 Table size and height inside the rooms is appropriate Layout 18 Seats in rooms are very comfortable Am 07 Sufficient lighting in lobby Am 08 Sufficient lighting in rooms Am 09 Button for adjusting lighting in rooms helps to enhance the atmosphere Am 05 Temperature of lobby is appropriate Am 06 Temperature inside the rooms is appropriate Clean 39 Corridor is clean and hygiene Clean 40 Facilities inside the rooms are clean and hygiene Clean 38 Nuts and snacks pack individually provides me a hygiene impression Am 11 Rooms are always full of tobacco smell or odor Am 10 Air quality is bad in rooms Am 12 Insufficient sound arrester among rooms Signs 33 Sufficient signs / route signs (e.g. Toilet signs) Signs 34 Signs / route signs can be easily understand Signs 37 Layout of theme karaoke rooms make me sing happier Signs 36 Layout of theme karaoke rooms rise my intention to sing Layout 25 Remote control is user-friendly Layout 24 Decorating system is user-friendly .896 .875 .870 .727 .118 -.056 2 .099 .049 .081 .101 .764 .688 3 .024 .096 .127 .100 .064 .066 4 .064 .096 .011 .085 .198 .067 5 .009 .039 .026 .088 -.043 .267 6 .077 -.029 .006 .298 -.060 .140 7 .068 .080 .039 -.114 .123 .145 8 -.017 .099 .086 .122 .031 .059

.105

.672

-.116

-.047

-.035

-.113

.170

.122

.167

.607

.007

.218

.051

.230

-.098

.181

-.020 .163 .093 .040

.601 .599 -.043 .020

.165 .093 .776 .725

-.087 .470 .077 .090

.102 .056 -.092 -.004

.304 -.110 -.001 .104

-.062 .047 -.068 -.003

.129 .117 .174 .232

.184

-.041

.648

.216

-.248

-.172

.007

.136

.151 -.109 .027 .118

.091 .248 .200 .240

.642 .597 .062 .041

-.078 .197 .802 .734

.140 .245 .152 .256

.186 -.035 .091 .189

.065 .117 .124 .120

-.075 -.181 .041 .120

.080

-.057

.262

.643

.000

.100

.199

.035

.126 .006 .011 .091

.102 .165 -.045 .081

-.020 .065 -.035 .040

.130 .050 .098 .124

.799 .756 .688 -.071

-.005 -.179 .047 .882

.115 .070 -.079 .100

.013 .055 .001 .107

.142

.073

.061

.153

-.062

.871

.061

.100

-.012

.101

.044

.189

.004

.062

.920

.041

.103 .109 .145

.166 .228 .234

.008 .139 .168

.187 .068 .119

.092 .096 -.019

.086 .124 .117

.892 .049 .017

.013 .871 .831

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations.

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Component Transformation Matrix Component 1 2 3 4 5 6 7 8 1 .437 -.636 -.560 .272 -.047 -.112 .049 -.023 2 .518 .410 -.150 -.303 .462 -.310 .346 -.142 3 .330 -.320 .765 .280 .157 .008 .302 .100 4 .421 .213 .174 .158 -.350 .042 -.428 -.643 5 .201 .403 -.196 .521 .180 .618 .019 .269 6 .262 -.125 .002 -.588 -.386 .579 .291 .040 7 .234 .296 .016 .105 -.612 -.414 .067 .544 8 .301 -.120 .105 -.320 .286 .035 -.717 .430

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

2. Factor Analysis on Customer Satisfaction


KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .854 851.275 28 .000

Total Variance Explained Initial Eigenvalues xtraction Sums of Squared Loading Rotation Sums of Squared Loadings Componen Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative % 1 4.241 53.015 53.015 4.241 53.015 53.015 2.531 31.638 31.638 2 1.094 13.672 66.687 1.094 13.672 66.687 2.187 27.336 58.974 3 .955 11.940 78.627 .955 11.940 78.627 1.572 19.653 78.627 4 .497 6.207 84.834 5 .435 5.432 90.266 6 .345 4.314 94.579 7 .259 3.231 97.811 8 .175 2.189 100.000
Extraction Method: Principal Component Analysis.

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a Component Matrix

April Tam 02007428

1 CS 42 I am satisfied with the facilities of Neway CS 43 My confident towards Neway is enhanced by its facilities CS 41 I think Neway facilities are excellent RP 52 I will think of Neway when I want to go to karaoke box RP 50 I will repatronage Neway Karaoke Box RP 53 It is a wrong choice of patronage Neway Karaoke Box SL 48 I intent to stay for longer time in Neway Karaoke Box SL 49 Neway Karaoke Box is the best choice for consuming time .835 .825 .774 .764 .740 .660

Component 2 -.418 -.398 -.482 .324 .377 .310

3 -.050 .003 .058 -.233 -.242 -.461

.634

.161

.533

.544

.399

.583

Extraction Method: Principal Component Analysis. a. 3 components extracted.

a Rotated Component Matrix

1 CS 41 I think Neway facilities are excellent CS 42 I am satisfied with the facilities of Neway CS 43 My confident towards Neway is enhanced by its facilities RP 53 It is a wrong choice of patronage Neway Karaoke Box RP 50 I will repatronage Neway Karaoke Box RP 52 I will think of Neway when I want to go to karaoke box SL 49 Neway Karaoke Box is the best choice for consuming time SL 48 I intent to stay for longer time in Neway Karaoke Box .879 .872 .851

Component 2 .170 .305 .279

3 .182 .147 .193

.212 .220 .274

.835 .792 .772

.031 .270 .267

.080

.203

.864

.316

.157

.767

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations.

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Component Transformation Matrix

April Tam 02007428

Component 1 2 3

1 .676 -.737 .011

2 .602 .543 -.585

3 .425 .402 .811

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

3. Multiple Regressions (Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction)
Model Summary
e

Adjusted R Std. Error of Model R R Square Square the Estimate 1 .578a .334 .331 .79996 2 .634b .402 .396 .75966 3 .663c .440 .431 .73728 4 .686d .471 .460 .71819 a. Predictors: (Constant), CLEANLINESS b. Predictors: (Constant), CLEANLINESS, Layout_songs c. Predictors: (Constant), CLEANLINESS, Layout_songs, Signs_theme d. Predictors: (Constant), CLEANLINESS, Layout_songs, Signs_theme, Ambient_lighting_temperature e. Dependent Variable: OVERALL_CS

ANOVA e Model 1 Sum of Squares df Mean Square F Sig. Regression 65.758 1 65.758 102.758 .000a Residual 131.186 205 .640 Total 196.944 206 2 Regression 79.218 2 39.609 68.636 .000b Residual 117.726 204 .577 Total 196.944 206 3 Regression 86.596 3 28.865 53.102 .000c Residual 110.348 203 .544 Total 196.944 206 4 Regression 92.754 4 23.189 44.957 .000d Residual 104.190 202 .516 Total 196.944 206 a. Predictors: (Constant), CLEANLINESS b. Predictors: (Constant), CLEANLINESS, Layout_songs c. Predictors: (Constant), CLEANLINESS, Layout_songs, Signs_theme d. Predictors: (Constant), CLEANLINESS, Layout_songs, Signs_theme, Ambient_lighting_ temperature e. Dependent Variable: OVERALL_CS

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Coefficients Unstandardized Coefficients B Std. Error 1.896 .182 .460 .045 1.309 .211 .412 .044 .245 .051 .957 .226 .349 .046 .240 .049 .152 .041 .531 .252 .307 .047 .213 .049 .154 .040 .061
a

April Tam 02007428

Model 1

Standardized Coefficients Beta .578 .517 .268 .438 .263 .209 .386 .234 .212 .188

(Constant) CLEANLINESS 2 (Constant) CLEANLINESS Layout_songs 3 (Constant) CLEANLINESS Layout_songs Signs_theme 4 (Constant) CLEANLINESS Layout_songs Signs_theme Ambient_lighting_ .212 temperature a. Dependent Variable: OVERALL_CS

t 10.438 10.137 6.205 9.304 4.829 4.236 7.555 4.881 3.684 2.105 6.590 4.391 3.823 3.455

Sig. .000 .000 .000 .000 .000 .000 .000 .000 .000 .037 .000 .000 .000 .001

Excluded Variables

Model 1

Beta In t Sig. Ambient_smell_noise .126a 2.165 .032 Layout_songs .268a 4.829 .000 Layout_rooms .210a 3.491 .001 Loyout_system .199a 3.449 .001 Signs_signs .185a 3.174 .002 Signs_theme .216a 3.613 .000 a Ambient_lighting_ .225 3.884 .000 .262 temperature b 2 Ambient_smell_noise .114 2.050 .042 .142 Layout_rooms .165b 2.799 .006 .193 Loyout_system .144b 2.531 .012 .175 Signs_signs .140b 2.455 .015 .170 Signs_theme .209b 3.684 .000 .250 b Ambient_lighting_ .186 3.302 .001 .226 temperature c 3 Ambient_smell_noise .105 1.952 .052 .136 Layout_rooms .136c 2.336 .020 .162 Loyout_system .141c 2.549 .012 .177 Signs_signs .122c 2.187 .030 .152 c Ambient_lighting_ .188 3.455 .001 .236 temperature 4 Ambient_smell_noise .111d 2.116 .036 .148 Layout_rooms .125d 2.198 .029 .153 Loyout_system .109d 1.974 .050 .138 Signs_signs .118d 2.183 .030 .152 a. Predictors in the Model: (Constant), CLEANLINESS b. Predictors in the Model: (Constant), CLEANLINESS, Layout_songs c. Predictors in the Model: (Constant), CLEANLINESS, Layout_songs, Signs_theme d. Predictors in the Model: (Constant), CLEANLINESS, Layout_songs, Signs_theme, Ambient_ lighting_temperature e. Dependent Variable: OVERALL_CS

Partial Correlation .150 .320 .237 .235 .217 .245

Collinearity Statistics Tolerance .937 .949 .847 .926 .916 .855 .904 .935 .820 .877 .885 .854 .881 .933 .801 .877 .877 .881 .932 .799 .845 .877

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4. Multiple Regressions (Relationship among Eight Servicescapes Dimensions and Customer Satisfaction)
Model Summary
d

Adjusted R Std. Error of Model R R Square Square the Estimate 1 .621a .386 .383 .84046 2 .666b .444 .438 .80208 3 .687c .472 .465 .78290 a. Predictors: (Constant), CLEANLINESS b. Predictors: (Constant), CLEANLINESS, Layout_songs c. Predictors: (Constant), CLEANLINESS, Layout_songs, Layout_rooms d. Dependent Variable: CS

ANOVA d Model 1 Sum of Squares df Mean Square Regression 91.057 1 91.057 Residual 144.806 205 .706 Total 235.863 206 2 Regression 104.622 2 52.311 Residual 131.241 204 .643 Total 235.863 206 3 Regression 111.438 3 37.146 Residual 124.425 203 .613 Total 235.863 206 a. Predictors: (Constant), CLEANLINESS b. Predictors: (Constant), CLEANLINESS, Layout_songs c. Predictors: (Constant), CLEANLINESS, Layout_songs, Layout_rooms d. Dependent Variable: CS F 128.908 Sig. .000a

81.312

.000b

60.604

.000c

Coefficients Unstandardized Coefficients B Std. Error 1.578 .191 .541 .048 .988 .223 .493 .047 .246 .053 .472 .267 .435 .049 .214 .053 .210 .063

Model 1

Standardized Coefficients Beta .621 .566 .246 .500 .214 .188

t 8.265 11.354 4.436 10.549 4.592 1.770 8.926 4.026 3.335

(Constant) CLEANLINESS 2 (Constant) CLEANLINESS Layout_songs 3 (Constant) CLEANLINESS Layout_songs Layout_rooms a. Dependent Variable: CS

Sig. .000 .000 .000 .000 .000 .078 .000 .000 .001

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Excluded Variables
d

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Model 1

a. b. c. d.

Beta In t Sig. Ambient_smell_noise .143a 2.569 .011 Layout_songs .246a 4.592 .000 Layout_rooms .229a 3.983 .000 Loyout_system .140a 2.488 .014 Signs_signs .119a 2.094 .037 Signs_theme .099a 1.677 .095 a Ambient_lighting_ .157 2.766 .006 temperature b Ambient_smell_noise .132 2.472 .014 Layout_rooms .188b 3.335 .001 Loyout_system .087b 1.568 .118 Signs_signs .075b 1.359 .176 Signs_theme .092b 1.641 .102 b Ambient_lighting_ .119 2.164 .032 temperature c Ambient_smell_noise .110 2.094 .038 Loyout_system .032c .555 .579 Signs_signs .056c 1.033 .303 Signs_theme .066c 1.188 .236 c Ambient_lighting_ .110 2.032 .043 temperature Predictors in the Model: (Constant), CLEANLINESS Predictors in the Model: (Constant), CLEANLINESS, Layout_songs Predictors in the Model: (Constant), CLEANLINESS, Layout_songs, Layout_rooms Dependent Variable: CS

Partial Correlation .177 .306 .269 .172 .145 .117 .190 .171 .228 .109 .095 .114 .150 .146 .039 .072 .083 .142

Collinearity Statistics Tolerance .937 .949 .847 .926 .916 .855 .904 .935 .820 .877 .885 .854 .881 .918 .786 .874 .835 .878

5. Multiple Regressions (Relationship among Eight Servicescapes Dimensions and Repatronage Intention)
Model Summary d Adjusted R Std. Error of Square the Estimate Model R R Square 1 .530a .281 .277 1.06239 2 .591b .349 .343 1.01283 3 .629c .395 .386 .97902 a. Predictors: (Constant), CLEANLINESS b. Predictors: (Constant), CLEANLINESS, Layout_songs c. Predictors: (Constant), CLEANLINESS, Layout_songs, Ambient_lighting_temperature d. Dependent Variable: RP

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ANOVA d Model 1

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Sum of Squares df Mean Square F Sig. Regression 90.290 1 90.290 79.997 .000a Residual 231.377 205 1.129 Total 321.666 206 2 Regression 112.399 2 56.199 54.785 .000b Residual 209.267 204 1.026 Total 321.666 206 3 Regression 127.094 3 42.365 44.200 .000c Residual 194.572 203 .958 Total 321.666 206 a. Predictors: (Constant), CLEANLINESS b. Predictors: (Constant), CLEANLINESS, Layout_songs c. Predictors: (Constant), CLEANLINESS, Layout_songs, Ambient_lighting_temperature d. Dependent Variable: RP

Coefficients Unstandardized Coefficients B Std. Error .947 .241 .539 .060 .195 .281 .477 .059 .314 .068 -.458 .319 .413 .059 .272 .066 .327 .084

Model 1

Standardized Coefficients Beta .530 .469 .269 .406 .234 .228

(Constant) CLEANLINESS 2 (Constant) CLEANLINESS Layout_songs 3 (Constant) CLEANLINESS Layout_songs Ambient_lighting_ temperature a. Dependent Variable: RP

t 3.925 8.944 .693 8.087 4.643 -1.435 6.972 4.113 3.916

Sig. .000 .000 .489 .000 .000 .153 .000 .000 .000

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Excluded Variables

Model 1

Beta In t Sig. Ambient_smell_noise .050a .813 .417 Layout_songs .269a 4.643 .000 Layout_rooms .152a 2.386 .018 Loyout_system .202a 3.362 .001 Signs_signs .094a 1.527 .128 Signs_theme .105a 1.648 .101 a Ambient_lighting_ .266 4.464 .000 .298 .904 temperature b 2 Ambient_smell_noise .037 .635 .526 .044 .935 Layout_rooms .104b 1.672 .096 .117 .820 Loyout_system .147b 2.472 .014 .171 .877 Signs_signs .045b .755 .451 .053 .885 Signs_theme .098b 1.610 .109 .112 .854 b Ambient_lighting_ .228 3.916 .000 .265 .881 temperature 3 Ambient_smell_noise .044c .780 .436 .055 .934 Layout_rooms .091c 1.514 .132 .106 .817 Loyout_system .108c 1.825 .069 .127 .846 Signs_signs .042c .716 .475 .050 .884 Signs_theme .101c 1.714 .088 .120 .854 a. Predictors in the Model: (Constant), CLEANLINESS b. Predictors in the Model: (Constant), CLEANLINESS, Layout_songs c. Predictors in the Model: (Constant), CLEANLINESS, Layout_songs, Ambient_lighting_temperature d. Dependent Variable: RP

Partial Correlation .057 .309 .165 .229 .106 .115

Collinearity Statistics Tolerance .937 .949 .847 .926 .916 .855

6. Multiple Regressions (Relationship among Eight Servicescapes Dimensions and Desire to stay for longer time)
Model Summary
c

Adjusted R Std. Error of Square the Estimate Model R R Square 1 .370a .137 .132 1.21020 2 .432b .187 .179 1.17727 a. Predictors: (Constant), Signs_theme b. Predictors: (Constant), Signs_theme, Signs_signs c. Dependent Variable: DSL

ANOVA c Model 1 Sum of Squares df Regression 47.532 1 Residual 300.239 205 Total 347.771 206 2 Regression 65.034 2 Residual 282.737 204 Total 347.771 206 a. Predictors: (Constant), Signs_theme b. Predictors: (Constant), Signs_theme, Signs_signs c. Dependent Variable: DSL Mean Square 47.532 1.465 32.517 1.386 F 32.454 Sig. .000a

23.462

.000b

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Coefficients Unstandardized Coefficients B Std. Error 2.887 .263 .357 .063 2.123 .334 .314 .062 .258 .073
a

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Model 1

Standardized Coefficients Beta .370 .325 .229

(Constant) Signs_theme 2 (Constant) Signs_theme Signs_signs a. Dependent Variable: DSL

t 10.971 5.697 6.351 5.049 3.554

Sig. .000 .000 .000 .000 .000

Excluded Variables

Model 1

Beta In t Ambient_smell_noise .135a 2.084 Layout_songs .163a 2.523 Layout_rooms .138a 2.056 Loyout_system .164a 2.540 Signs_signs .229a 3.554 CLEANLINESS .167a 2.399 a Ambient_lighting_ .160 2.485 temperature 2 Ambient_smell_noise .152b 2.409 Layout_songs .118b 1.830 Layout_rooms .097b 1.446 Loyout_system .115b 1.752 CLEANLINESS .115b 1.646 b Ambient_lighting_ .137 2.156 temperature a. Predictors in the Model: (Constant), Signs_theme b. Predictors in the Model: (Constant), Signs_theme, Signs_signs c. Dependent Variable: DSL

Sig. .038 .012 .041 .012 .000 .017 .014 .017 .069 .150 .081 .101 .032

Partial Correlation .144 .174 .142 .175 .241 .166 .171 .167 .127 .101 .122 .115 .150

Collinearity Statistics Tolerance .982 .988 .923 .985 .962 .855 .988 .977 .940 .889 .923 .806 .975

7. Correlation (Relationship among Customer Satisfaction and Repatronage Intention)


Correlations CS Pearson Correlation 1 Sig. (2-tailed) . N 207 RP Pearson Correlation .555** Sig. (2-tailed) .000 N 207 **. Correlation is significant at the 0.01 level (2 t il d) CS RP .555** .000 207 1 . 207

8. Correlation (Relationship among Customer Satisfaction and Desire to Stay for Longer Time)
Correlations CS Pearson Correlation 1 Sig. (2-tailed) . N 207 DSL Pearson Correlation .439** Sig. (2-tailed) .000 N 207 **. Correlation is significant at the 0.01 level (2 t il d) CS DSL .439** .000 207 1 . 207

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Observation

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1. Exterior Design of Prat Avenue Branch

2. Ambient Environment of Lobby and Song List

3. Signs for Directing the Location

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4. Ambient Environment (Lighting) and Layout inside the room

5. Air Freshener, Button for Adjusting Lighting and Temperature

6. Television Screen and Microphone with Cover

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7. Decorating System

8. Remote Control

9. Varity of Songs

10.

Theme Karaoke Room

11. Individual Packing Snacks

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Focus Group Script

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Focus Group Script


17/2/2005 2:30pm-3:15pm April Circle, Kei, Chun, Eric, Evelyn, Kenny April Focus Group Focus Group Neway Karaoke Box Karaoke Evelyn Circle Karaoke April Karaoke Kei Lunch Karaoke Kei Happy Hour Lunch Karaoke Circle Kenny Karaoke AprilChun
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Chun $700-$900 $200 Lunch Karaoke April Eric Kei April Kenny Chun Evelyn April Circle Karaoke Box April Kei, Chun, Eric, Evelyn, Kenny

The Role of Karaoke Box Servicescapes Play in Customer Satisfaction

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Chun Karaoke Box April Karaoke Circle

Kei April Neway Chun Neway K Kei, Eric, Evelyn, Kenny, Circle Evelyn Neway

Kei Eric April Chun Neway Circle Evelyn Lunch Karaoke Eric Circle Karaoke April Karaoke Box Kei, Eric, Evelyn, Kenny, CircleNeway April Neway Chun Green BoxRed Box CircleGreen Box Red Box Chun Big Echo Evelyn
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Kenny CircleNeway Green Box Chun Neway April Karaoke Box Evelyn Kenny Chun Karaoke Box April Circle Karaoke Box

The Role of Karaoke Box Servicescapes Play in Customer Satisfaction

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Evelyn Big Echo Hello Kitty Circle Evelyn Chun Karaoke April Karaoke Circle Kenny Circle Party Room Kei

Chun KeiKaraoke Box Neway CircleNeway CEO Kei April Eric April Kei Eric April Circle

Circle April Evelyn

Kenny Kei

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Circle Kenny Kei Kenny, Eric, Evelyn, Chun, Circle Circle KeiKaraoke April KeiNeway Circle Chun Evelyn Chun, April, Circle, Eric, Kenny, Kei April

Evelyn Kenny AprilCircle CircleGame Karaoke April Circle Kei Circle Chun Circle Karaoke Box April Chun, Evelyn, Circle, Eric, Kenny, Kei Kei
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April Evelyn Kenny Chun

Kenny Kei, Circle, Chun Kenny Circle Evelyn, Chun

April Kenny Chun, Evelyn, Circle, Eric, Kenny, Kei Circle Chun, Evelyn, Eric, Kenny, Kei.. Circle April Chun April Circle Chun April
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Karaoke April Karaoke Kenny Karaoke April Circle Kei Chun

Kenny Chun

The Role of Karaoke Box Servicescapes Play in Customer Satisfaction

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April Karaoke Chun, Kenny, Evelyn, Eric Evelyn April Kenny Chun Kei Eric Evelyn Kenny Chun April Chun

Circle Karaoke Chun Circle Chun Circle, April, Evelyn, Kenny, Eric, Kei April Eric (Feed Back) Chun Kei Circle Chun Circle April Circle
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Kei Circle April Karaoke Karaoke Circle April Karaoke Chun Circle Karaoke Karaoke Karaoke Chun Karaoke Circle, April, Evelyn, Kenny, Eric, Kei April Karaoke

Kei Karaoke Circle April Evelyn Kenny, Eric, Kei April Karaoke Circle Evelyn Kenny April Neway Kei Neway Chun April Chun Kenny

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April Karaoke Box Karaoke Circle April Neway Circle Karaoke Evelyn Kei Circle Chun Karaoke Karaoke Kenny Circle Karaoke Eric Circle

April Evelyn April Neway Evelyn Kei Chun Evelyn Chun Neway Circle Chun 100% Kei Circle, April, Evelyn, Kenny, Eric, Chun Circle

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Chun April Evelyn Eric Circle April Chun Neway Evelyn Circle April Neway Circle April Neway Circle Karaoke Box Neway

Kenny Evelyn Circle Neway ABCDE Chun Circle Karaoke Circle Karaoke Karaoke Neway April Circle
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Karaoke Kenny Chun April, Circle, Kei, Kenny, Evelyn, Eric Circle Chun Karaoke Kenny Circle April Circle Karaoke Chun Karaoke (Social Bond) Kenny Karaoke ChunNeway

(Social Bond) Kenny Karaoke April Chun Karaoke Karaoke Circle Karaoke Karaoke (Ladies Night) Kenny Neway April Karaoke Circle Karaoke Kenny Chun
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April Focus Group

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