Matara-0000019076-Research Report-June15 PDF

THE RELATIONSHIP BETWEEN CUSTOMER
SATISFACTION AND SERVICE QUALITY IN LEASING &

FINANCE SECTOR IN SRI LANKA
by
K. N. Jayamuni
0000019076
An Integrated Research Project submitted to the Sri Lanka Institute of Marketing in

partial fulfilment of the requirements for the Postgraduate Diploma in Marketing
Supervisor: Mr. Priyantha Neelawala
Sri Lanka Institute of Marketing

Postgraduate Diploma in Marketing (PGDIP)
Matara
June, 2015
Research Report Evaluation

Marking Scheme
Student Name
K. N. Jayamuni
Registration Number
0000019076
Programme
Postgraduate Diploma In Marketing
Subject
Individual Integrated Research Project
Title
Allocated Marks
Topic Academic, Relevance, and formulation
05
Defining the problem or research area
05
Literature Review
10
Study Design/Methodology
10
Data presentation. Validity and scope of data
10
Analysis and Findings
20
Conclusion and Recommendations
20
Reference
(Harvard Reference System)
10
Adherence to Stipulated Format
10
Total
100
Special Remarks:
Signature of Examiner
ii
Awarded Marks
AUTHORISATION
I hereby declare that I am the sole author of this Integrated Research Project. I authorise
the Sri Lanka Institute of Marketing to lend this dissertation to other institutions or
individuals for the purpose of scholarly research. I further authorise the Sri Lanka
Institute of Marketing to reproduce the dissertation by photocopying or by other means, in
total or in part, at the request of the other institutions or individuals for the purpose of
scholarly research.
K. N. Jayamuni
iii
THE RELATIONSHIP BETWEEN CUSTOMER SATISFACTION

AND SERVICE QUALITY IN LEASING & FINANCE SECTOR IN
SRI LANKA
by
K. N. Jayamuni
This is to certify that I have examined and supervised the above integrated research
project and have found that it is complete and satisfactory in all respects and that all
revisions required by the evaluation/examination committee have been made.
Mr. Priyantha Neelawala
(the signature of your supervisor)
Head of Education - SLIM

June, 2015
iv
vi
ACKNOWLEDGEMENT
The completion of this research study as a partial requirement of the Post Graduate
Diploma in Marketing program conducted by the Sri Lanka Institute of Marketing has been
a valuable experience to me, which provided me with great satisfaction. I consider it is my
duty, even though they never wished names to be mentioned, to express my gratitude for
all, those who helped in numerous ways in bringing out this research.
At the outset, I would like to express my gratitude towards my parent, wife and other
family members for the encouragement given and the tolerance shown throughout the entire
period of the research study.
I am deeply indebted to my friends in Leasing & Finance industry who have provided
customer details to collect the research population and to the respondents who have
dedicated the valuable time and effort to response for questionnaire.
I would like to take this opportunity to express my profound gratitude and deep
appreciation to my supervisor, Mr. Priyantha Neelawala, Lecturer of the Sri Lanka Institute
of Marketing, for giving valuable guidance, assistance and directing me up to the
completion of my research study.
As well as, I wish to thank all who assisted and encouraged me in various ways
throughout my research to make this success.
K. N. Jayamuni.
0000019076
Matara
06th June 2015
vii
TABLE OF CONTENTS
ACKNOWLEDGEMENT ........................................................................................................... vii
TABLE OF CONTENTS ............................................................................................................ viii
LIST OF FIGURES....................................................................................................................... ix
LIST OF TABLES......................................................................................................................... ix
ABSTRACT ................................................................................................................................... xi
1.
2.
INTRODUCTION .................................................................................................................. 1
1.1.
Background of the problem ........................................................................................... 1
1.2.
The significance of the exploration of the problem ..................................................... 1
1.3.
Introduction to Leasing Industry .................................................................................. 2
1.4.
The objectives of the research ....................................................................................... 3
1.5.
Approach to data collection and analysis ..................................................................... 4
1.6.
Delimitations of the study .............................................................................................. 4
1.7.
The outline of the research ............................................................................................ 5
LITERATURE REVIEW ...................................................................................................... 6

2.1.
2.1.1.
Tangibility ................................................................................................................ 7
2.1.2.
Reliability ................................................................................................................. 8
2.1.3.
Responsiveness ......................................................................................................... 8
2.1.4.
Assurance ................................................................................................................. 8
2.1.5.
Empathy.................................................................................................................... 8
2.2.
3.
Service Quality ................................................................................................................ 6
Customer Satisfaction .................................................................................................... 9
METHODOLOGY ............................................................................................................... 10
3.1.
Research design ............................................................................................................ 10
3.2.
Conceptual frame work of the study .......................................................................... 10
3.3.
Hypotheses of the research .......................................................................................... 11
3.4.
Sampling Method.......................................................................................................... 12
3.4.1.
Research Population ............................................................................................... 12
3.4.2.
Research Sample .................................................................................................... 12
3.5.
Data collection method ................................................................................................. 12
3.6.
Measurement of variables ............................................................................................ 13
3.6.1.
Demographic characteristics................................................................................... 13
3.6.2.
Measuring Five variables of SERVQUAL Model & Customer Satisfaction ......... 14
3.7.
Research Questions Formulating ................................................................................ 14
3.8.
Operationalization ........................................................................................................ 15
viii
3.9.
Method of data presentation........................................................................................ 16

Method of data analysis ........................................................................................... 16
3.10.
3.10.1.
Reliability of the questionnaire ............................................................................... 17
3.11.
4.
DATA PRESENTATION AND ANALYSIS ..................................................................... 18

4.1.
Surveyed respondents .................................................................................................. 18
4.2.
Demographic analysis of Respondents ....................................................................... 18
4.3.
Analysis of Variables .................................................................................................... 21
4.3.1.
4.4.
5.
Data analysis tools .................................................................................................. 16
Descriptive statistics of variables ........................................................................... 21
Test of Hypotheses ........................................................................................................ 22
4.4.1.
Correlation coefficient ............................................................................................ 22
4.4.2.
Relationship between five dimension and customer satisfaction ........................... 23
CONCLUSION AND RECOMMENDATIONS................................................................ 26

5.1.
Conclusion ..................................................................................................................... 26
5.1.1.
Finding 1 Demographic characteristics ........................................................... 26
5.1.2.
Findings 2 Analysis of Independent and Dependent variables ...................... 26
5.2.
Recommendations......................................................................................................... 28
List of References ......................................................................................................................... 29

Annexure ....................................................................................................................................... 31
List of Figures
1.1.
Outline of the research.
2.1.
SERVQUAL model with five dimensions ..............
3.1.
Conceptual framework..
11
4.1.
Gender analysis.
18
4.2.
Age analysis..............
19
4.3.
Occupation................
19
4.4.
Income Level............
20
4.5.
Experience among Leasing...
20
List of Tables
3.1.
Likert Scale of the study.
14
3.2.
Operationalization of Service Quality.
15
3.3.
Operationalization of Customer Satisfaction
16
ix
3.4.
Reliability statistics...
17
4.1.
Gender Analysis.......
18
4.2.
Age analysis..............
19
4.3.
Occupation................
19
4.4.
Income Level............
20
4.5.
Experience among Leasing..
20
4.6.
Descriptive statistics of Service Quality..
21
4.7.
Descriptive statistics of Customer Satisfaction
22
4.8.
Correlation Coefficient of Hypotheses.
23
4.9.
Model Summary
24
4.10. ANOVA
25
ABSTRACT
The aim of this research work is to determine the satisfaction level of the customers of
Leasing and Finance sector in Sri Lanka regarding quality of different services provided by
Leasing and Finance Companies. As well as to determine the factors of Service Quality
causes to their satisfaction level among the company. Lot of Leasing & Finance Companies
are thinking the low interest rate will make high customer satisfaction, but reducing interest
rate is effecting to the profit of the company. Therefore, improving service quality and
increase the customer satisfaction will make loyal customers to the company.
The sample has chosen by using simple random sampling technique and research has
conducted through a field survey by a structured questionnaire comprising independent
variables by using SERVQUAL dimensions of Service Quality (Tangibility, Reliability,
Responsiveness, Assurance and Empathy) towards dependent variable of Customer
Satisfaction.
The objectives of the research are to find the relationship between above five dimensions
and customer satisfaction. Hypotheses created base on above objectives to prove that there
are positive correlation between above five dimensions and customer satisfaction as well.
The survey was carried out covering a sample of 52 respondents by using postal
distributing and online survey. Responses analyzed by using descriptive statistics such as
mean, standard deviation, variance and correlation coefficient and ANOVA. As per the
findings and analyzing of primary data, the researcher has proved that there is a positive
relationship between Service Quality and Customer satisfaction in Leasing and Finance
sector in Sri Lanka. As well as, clearly proved that there are strongly positive relationship
is available between SERVQUAL dimensions of Service Quality and Customer satisfaction
in Leasing & Finance sector in Sri Lanka.
Overall recommendation is, that the Leasing companies should avail that research work
to improve their Quality of service according to the SERVQUAL dimensions (Tangibility,
Reliability, Responsiveness, Assurance and Empathy) to increase the customer satisfaction
of Leasing & Finance sector to create a premium Customer Loyalty.
xi
Introduction Chapter I
1. INTRODUCTION
This study has focused on customer satisfaction problems of Leasing and Finance
Sector in Sri Lanka towards service quality. Products and services offered by Leasing
& Finance companies are similar, but the differentiator is the service quality and how
customers perceive it. This study highlighted the degrees of impact of human related
factors and non-human related factors of perceived service quality on customer
satisfaction.
1.1. Background of the problem
Customer loyalty is the most precious intangible assets of modern business.

High loyalty is not only the key of business competition to win, but also the
fundamental guarantee of businesss stability. The satisfaction of customer is
directly affected to the Customer Loyalty. In the period of service economy,
improving the service quality has always been considered as one of the effective
ways to improve customer satisfaction.
This study examined the relationship between customer satisfaction and service
quality from the approach of customer service using some selected Leasing &
Finance companies in Sri Lanka. The study is a research work which used a
literature based research instrument [questionnaire] to measure the application of
relationship between customer services to achieve customer loyalty.
1.2. The significance of the exploration of the problem
It is obvious that customers are important for the business and their satisfaction
is a priority to management of the organization. Customer satisfaction has been a
subject of great interest to organizations and researchers alike. In recent years,
organizations are obliged to render more services in addition to their offers. The
quality of customer service has become an aspect of customer satisfaction. It has
been proven by some researchers that service quality is related to customer
satisfaction, and also uses service quality dimensions to evaluate service quality.
A lot of finance and leasing companies think the low interest rate (low price)
will make the high customer satisfaction, but reducing the interest rate of leasing
facilities will reduce the profit margin of the company as well as with the high
competition in the industry low price is not the only thing to create customer
loyalty. The main purpose of this study is to examine the relationship between
customer satisfaction and service quality in Leasing and Finance sector in Sri
Lanka with respect to the service quality dimensions and prove the service quality
is also be a significant factor to create the customer loyalty.
1.3. Introduction to Leasing Industry
The Leasing and Finance sector in Sri Lanka has grown at a rapid speed in the
last decade of past century. Along with its importance to the countrys economy,
the level of completion has also increased. In order to face the competition,
companies appear to be introducing new features for leasing products at a
competitive rate. Banks & Finance companies are the key players in financial
markets operations and play a major role in keeping the economy running
smoothly of a country. In todays highly competitive corporate environment,
quality of services is an essential element for enhancing customer satisfaction and
customer loyalty. These are major factors in improving the performance of Finance
& Leasing Companies and in determining their success.
The leasing industry recorded a significant growth in 2010/2011 in Sri Lanka an

industry made up of Registered Leasing & Finance establishment which is 90
entities in number. They take forms of specialized Leasing Companies (12),
Registered Finance Companies (45), Licensed Commercial Banks (24) and
Licensed Specialized Banks (9). Since most of above institutes are offering leasing
facilities, it is making a high competition each other; therefore, the study of the
relationship between customer satisfaction and the service quality will be very
important to keep the customer loyalty among the company.
As well as, novelty customers demand better quality service from Leasing
Companies; it has boosted the competition among various Leasing & Finance
2
Companies particularly those private sectors. Therefore, the present study research
problem is to understand whether there is a relationship between customer
satisfaction and service quality in Leasing and Finance Sector in Sri Lanka.
1.4. The objectives of the research
This study has been undertaken to investigate the relationship between the
service quality and its impact on customer satisfaction. It has focused on the
relationship of five independent variables of SERVQUAL model (Parasuraman,
Zeithaml & Berry, 1988) which are tangibility, reliability, responsiveness,
assurance and empathy with the identified dependent variable is Customer
satisfaction.
1.1.1. To determine the relationship between service tangibility and the customer
satisfaction in finance & Leasing Sector
1.1.2. To determine the relationship between service reliability and the customer
1.1.3. To assess the relationship between service responsiveness and the customer
1.1.4. To explore the relationship between service assurance and the customer
1.1.5. To find out the relationship between service empathy and the customer
satisfaction in finance & leasing sector
1.5. Approach to data collection and analysis
In this study, the researcher gathered data through primary data. To collect
primary data, the researcher used a self-administered questionnaire comprising a
range of multiple-choice questions to collect primary data. Apart from the scales,
the questionnaire also contained three open-ended questions that required the
respondents to mention the company they have taken a leasing facility or the
company which is come first to their mind and the final question is to the
suggestions towards the service quality of mentioned company. The researcher has
distributed the questionnaire by using online survey of http://surveynuts.com and
also distributed directly to respondents by post with return envelope.
The sample has comprised 56 individuals who are already obtained Leasing
facilities or who are not obtained yet. Out of 56, 19 were online respondents and
other came from post. But, out of these, 4 were rejected because there were no
answers given for some questions. The total sample used in analysis comprised 52
respondents. The researcher has analyzed data using SPSS software and using the
features of http://surveynuts.com.
1.6. Delimitations of the study
The researcher planned to collect primary data by using 150 research samples,
but due to limited time period it has reduced to 56 individuals. The survey is
subjected to the bias and prejudices of the respondents. Hence 100% accuracy cant
be assured.
The researcher designed the questionnaire by using both language

Sinhala/English to get brake the language barrier of respondents. But 4 responds
were rejected due to missed answers.
The researcher planned to limit the research sample to Matara and Hambantota
district, but focusing on the online research it has opened to the whole country, but
due to the limited resources (relative less time, money and man power) the sample
has been limited.
4
1.7. The outline of the research
This research is structured according to the guidelines provided by Sri Lanka

Institute of Marketing. There are different chapters in this research. Chapter I,
indicates the introduction of this research and the research approach, Chapter II,
presents the theoretical part (Literature review), Chapter III, presents
methodology part and Chapter IV, the data presentation and analysis. Eventually
Chapter V, represents the conclusion and recommendations.
Figure 1.1: Outline of the research
Literature Review Chapter II

2. LITERATURE REVIEW
This is presents the overview of current literature in the frame of the presented
research problem. Each of the bodies of literature is discussed which is focus on the
specific nature of the relevant literatures that relates to this study.
A literature review is a step by step process that involves the identification of
published and unpublished work from secondary data sources on the topic interest, the
evaluation of this work in relation to the problem and the documentation of this work
(Sekaran and Bougie 2010). Therefore, in this study, each independent variables and a
dependent variable will be reviewed on previous studies that are related to this topic.
2.1. Service Quality
Services are a continues process of on-going interactions between customers and

service providers comprising a number of intangible activities provided as
premium solutions to the problems of customers and including the physical and
financial resources and any other useful elements of the system involved in
providing these services (Gronroos, 2004).
Premium service quality is a key to gain a competitive advantage in services

industry. The satisfaction level of customers is dependent on their perception of
service quality and the trust in service provider (Ismail et al., 2006; Aydin & Ozer,
2005; and Parasuraman et al., 1988). By providing better quality services to
customers, a firm revives the perception of customers about quality of services.
Leasing & Finance industry is totally running on service based products

therefore, premium service quality plays a pivotal role for customers in evaluating
the performance of a service provider and is the key to gain customer satisfaction
and customer loyalty. A Leasing company can gain competitive advantage and
build long term relationship with its customers by providing premium quality
services.

SERVQUAL scale (Parasuraman, Zeithaml & Berry, 1988), is the most famous
measure of service quality. It classifies and measures service quality in five
dimensions. I will be focus thats five dimensions in this research, which are
tangibles, reliability, responsiveness, assurance and empathy with the identified
dependent variable.
Reliability
Assurance
Responsiveness
SERVQUAL
Model
Empathy
Tangibility
Figure 2.1: SERVQUAL model with five dimensions

(Source: www.marketingstudyguide.com)
A brief explanation of these dimensions is given below.
2.1.1.
Tangibility
Tangibility of a service is a scale that measures how dependable a

customer views a service provider to be based upon the quality of its most
visible attributes. Tangibles can include physical facilities, equipment and
staff appearance, etc. The office physical appearance, cleanliness,
modernism also can be an example of tangible service quality. Physical
quality refers to the tangible aspects of the service. (Blery et al., 2009)

2.1.2.
Reliability
Reliability of a service can be defined as the ability of service provider to

perform the promised service dependably and accurately. (Blery et al.,
2009). For example, the customers who come to a Leasing company to
obtain a leasing facility, while the company advertised and promised to offer
a leasing facility within an hour, so the company needs to keep the promise
and cannot make the customer to wait.
2.1.3.
Responsiveness
Responsiveness are reflects of the willingness to help customers and

provide prompt service. (Blery et al., 2009). In this case, the company must
avoid keeping customers waiting for no apparent reason especially when
come to a competitive product, such as low exposure, high demand
customer. There are no excuses given for the high demand customer to any
late service.
2.1.4.
Assurance
Assurance of service quality is the knowledge and courtesy of employees

and their ability to inspire trust and convey confidence among customers.
(Blery et al., 2009). For example, the customer service representatives at
Leasing and Finance Sector should be shown respect for any customer who
came to the office and being polite to them.
2.1.5.
Empathy
Empathy quality is a caring, ability to be approachable, and giving

individual attention that the company can provides to the customers. (Blery
et al., 2009). For example, sales executive should be a good listener to
identify customer real needs & wants.

2.2. Customer Satisfaction
Satisfaction is a feeling that surfaces from an evaluation process, i.e. when the
consumer of a good or service compares what is received against what is expected
from the utilization of that good or service (Kotler et al., 2009).
The following criteria are laid down for measuring the satisfaction level of
customers regarding purchase and subsequent consumption of goods or services
(Liu et al., 2008):
2.2.1.
Satisfaction : the perception developed by the customers that the goods or

services are acceptable or tolerable
2.2.2.
Content : the features of goods or services and the underlying benefits

gives customer a positive consumption experience
2.2.3.
Relived : the alleviation of the negative state of customers mind of by the

goods or services provided
2.2.4.
Novelty : the goods or services bring freshness and excitement in

customers
2.2.5.
Surprise : the amazement and unexpected pleasure brought to people by

goods or services consumed
Customer satisfaction is a degree of satisfaction provided by the goods

or services of a company as measured by the number of repeat customers
or how service meets the customers expectation. Service quality has
become an important topic because of its apparent relationship to costs,
profitability, customer satisfaction, customer retention and positive word
of mouth and it is widely considered as a driver of corporate marketing
and financial performance (Triplett, 2007). In this study, the researcher
will be more interested in service quality and customer satisfaction by
using the SERVQUAL model to assess them the service quality in Leasing
and Finance Sector.
Methodology Chapter III

3. METHODOLOGY
This chapter provides information about the research design, sampling method,
conceptual model, Operationalization of variables, method of data presentation and
method of data analysis.
3.1. Research design
Survey method has been used for this study using questionnaire as data collection
instrument. The questionnaire has been adapted from scales already used for
previous studies in the literature. The final questionnaire consists of three sections.
The first section contains items of personal information and second section contains
items regarding dependent and independent variables of the study, and was divided
into five parts of SERVQUAL model as Tangibility, Responsiveness, Reliability,
Assurance, Empathy and third section contains items regarding dependent variables
of Customer Satisfaction, Questionnaire has ended by suggestions of the respondent
towards service quality of the mentioned company.
The questionnaire has been distributed two ways, using the online survey
provided by http://surveynuts.com and by the post. The respondents has been
directed to the online survey by using Facebook and Gmail.
3.2. Conceptual frame work of the study
The main objective of this research is to find the relationship between Customer
satisfaction & service quality in Leasing and Finance industry in Sri Lanka. The
research has designed by using the SERVQUAL model of service quality.
Based on the findings in the literature review, the following conceptual model
can be drawn (Figure No.3). To measure the relationship within the Leasing and
Finance industry in Sri Lanka, several hypotheses are conducted. The different
variables of the conceptual model are operationalized in terms of leasing companies
within chapter 3.4.
10

Dimensions of Service
Quality [SERVQUAL]
Tangibility
H1
Reliability
H2
Responsiveness
H3
Assurance
H4
Customer Satisfaction
Empathy
H5
Independent Variables
Dependent Variables
Figure 3.1: Conceptual frame work of correlation between the dimension of

SERVQUAL and the satisfaction of customers in Leasing & Finance Sector.
The framework above shows proposed framework to serve as foundation of this

study. It is modified from the gap model theory (Zeithaml et al., 1985).
3.3. Hypotheses of the research
There are five hypotheses which are to be tested. The hypotheses are expressed
in terms of two variables: Service Quality and Customer Satisfaction. The Service
Quality divided to five dimensions in SERVQUAL Model as follows.
H1 there is a positive relationship between tangibility and customer satisfaction
in Leasing & Finance sector
H2 there is a positive relationship between reliability and customer satisfaction in
Leasing & Finance sector
H3 there is a positive relationship between responsiveness and customer
satisfaction in Leasing & Finance sector
H4 there is a positive relationship between assurance and customer satisfaction in
H5 there is a positive relationship between empathy and customer satisfaction in
11

3.4. Sampling Method
Researcher used simple random sampling technique to select the sample.
3.4.1.
Research Population
The Leasing and finance industry has expanded in the whole country
therefore, the population is very large. But due to the limited resources the
population has considered from the customer data bases of several leasing
companies. The researcher has obtained five customer data bases (only
names, addresses and email addresses) from branches of leading finance
companies in Matara and Hambantota districts. As well as, the researcher
has considered another sample using Facebook contacts. There were
about 560 of individuals in the total considered population.
3.4.2.
Research Sample
The size of the sample taken for survey was 10% of the research population.
4 responds were rejected due to missed answers
Population; 560 x 10% = 56 4 = 52
3.5. Data collection method
The study was done by using a structured questionnaire to collect the primary
data. The questionnaire utilizes a Likert-type scale with five response alternative
ranging from Lowest (weighted 1) to Highest (weighted 5) for each of the
statements. The questionnaire was distributed among 56 selected sample using
postal mail, handing and online survey (using emails & Facebook messenger). The
online questionnaire designed by using http://surveynuts.com. But 4 responds were
rejected due to missed answers.
12

3.6. Measurement of variables
As described under Research Design, this study was conducted covering two
main variables of Service Quality and Customer satisfaction.
Then, the Service Quality divided to five dimensions as Tangibility,

Responsiveness, Reliability, Assurance, Empathy of SERVQUAL model.
Structured questionnaire was designed to measure the as follows.
a. Demographic characteristics (Question numbers 1 to 7)

b. Measure Tangibility dimension (Question numbers 8 to 10)
c. Measure Reliability dimension (Question numbers 11 to 14)
d. Measure Responsiveness dimension (Question numbers 15 to 17)
e. Measure Assurance dimension (Question numbers 18 to 22)
f. Measure Empathy dimension (Question numbers 23 to 26)
g. Measure Customer Satisfaction (Question number 27 to 28)
h. Customer suggestions towards service quality
3.6.1.
Demographic characteristics
a. Gender of the respondent

b. Age group of the respondent
c. Occupation of the respondent
d. Income level of the respondent
e. Experience among the Leasing facilities of the respondent
f. The Leasing company in the respondent mind set
13

3.6.2.
Measuring Five variables of SERVQUAL Model & Customer Satisfaction
The researcher has created three questions to measure Tangibility, four

questions
to
measure
Reliability,
three
questions
to
measure
Responsiveness, five questions to measure Assurance, four questions to

measure Empathy. And researcher has designed three questions to measure
customer satisfaction. 5-point Likert Scale applied as the instrument to
measure the satisfaction of the respondents. The pattern of the Likert scale
described as follows;
Table 3.1: Likert Scale of the study

Points
Scale
Highest
High
Moderate
Low
Lowest
Description
I am strongly agreed with this statement
I am agreed with this statement
Agreed but somewhat not agreed
I am not agreed with this statement
I am strongly not agreed with this statement
3.7. Research Questions Formulating
Researcher has to be found answers to the following questions by using above

questionnaire.
a. What are the factors that have been caused to Service Quality towards
Customer Satisfaction dimensions?
b. To what extent the Tangibility influenced in customer satisfaction?
c. To what extent the Reliability influenced in customer satisfaction?
d. To what extent the Responsiveness influenced in customer satisfaction?
e. To what extent the Assurance influenced in customer satisfaction?
f. To what extent the Empathy influenced in customer satisfaction?
14

3.8. Operationalization
The variables, indicators and measures relevant to Service Quality are

operationalized for the purpose of the study as given in the Table below.
Questions from 8 to 26 of the questionnaire prepared based on below mentioned

approach.
Table 3.2: Operationalization of Service Quality
Variable
Concept
Item
Item indicator
Service
Difference
Tangibility
Appearance of employees
Quality
between
Appearance of Office/Branch
quality
Appearance of Transport
expectation
and
Reliability
the
Accuracy of the service deliver on

time
delivered
Range of products
quality
Consistency of service
Responsiveness
Speed of need fulfillment

Speed response to complaints
Speed of closing business
Assurance
Competence
Correct information deliver
Confidentiality of employees
Empathy
Interest in solving problems

Understandable communication
Individual attention
15

The variables, indicators and measures relevant to Customer Satisfaction are
operationalized for the purpose of the study as given in the Table below.
Questions from 27 to 28 of the questionnaire prepared based on below mentioned

approach.
Table 3.3: Operationalization of Customer Satisfaction
Variable
Concept
Customer
Item
Item indicator
response Satisfaction Overall satisfaction
Satisfaction pertains to a Customer
Satisfaction about interest rate
particular
(Price)
expectation
Satisfaction about product range
and occurs at a
Satisfaction about service quality
particular
Satisfaction about sales executive
moment in time
3.9. Method of data presentation
The findings of survey date are presented in the next Chapter on tabulations,
graphs and diagrams and, demographic characters in the study are presented using
Pie Charts & Bar Charts with features available on SPSS and MS Excell.
3.10. Method of data analysis
The researcher used SPSS software and MS Excel software to summarize and
analysis.
3.10.1. Data analysis tools
In this research, the researcher used descriptive statistics such as mean,

standard deviation, variance and correlation.
16

3.11. Reliability of the questionnaire
At the outset, the researcher needed to consider the reliability of the

questionnaire. The researcher has tested the reliability of the questionnaire by
using SPSS software as follows.
Table 3.4: Reliability statistics

No of Items
Cronbachs Alpha
Service Quality
19
0.967
0.887
Variable
The meaning of above Cronbachs Alpha value is the questionnaire can be

applied and can be obtained the correct answers for research questions. As well
as, the researcher obtained the approval for questionnaire from the supervisor of
the research.
17
Data Presentation and Analysis Chapter IV

4. DATA PRESENTATION AND ANALYSIS
This chapter demonstrates the descriptive statistics calculated by analyzing primary
data collected through the structured questionnaire. The significance of the each factor
to the customer satisfaction is analyzed and, the output is presented by diagrams, charts
and tabulations. Demographics of the sampled responded are shown by charts and
research attempt to predict relationships among demographics, SERVQUAL
dimensions (Tangible, Reliability, Responsiveness, Assurance and Empathy) towards
the Customer Satisfaction of the Leasing and Finance Sector in Sri Lanka.
4.1. Surveyed respondents

Random samples of 52 lower level employees in the apparel industry were
surveyed by means of a structured questionnaire. Questionnaire were completed
and returned by all the employees surveyed.
4.2. Demographic analysis of Respondents
The questionnaire includes seven (07) demographic questions. Summarized survey

data on demographics are illustrated by the following charts.
Table 4.1: Gender Analysis
Gender
Frequency
Male
Female
46
6
Total
52
12%
Male
88%
Female
Figure 4.1: Gender analysis

Responses to this questionnaire indicate that 88% of the total respondents are
Male while rest (12%) Female
18
Table 4.2: Age Analysis

Age Group
Frequency
Between 21-40
39
Between 41-60
9
Above 60
4
Total
52
8%
17%
75%
Between 21-40
Between 41-60
Above 60
Figure 4.2: Age Analysis
According to the responses there are no responses in below 20 age group while
75% respondents represent in between 21 to 40 age group, 17 % respondents
represent in between 41 to 60 age group, and above 60 represent 8 % respondents.
Table 4.3: Occupation

Occupation
Frequency
Government
7
Employee
Private Sector
30
Employee
Businessman
13
Other
2
Total
52
Government Employee
Private Sector Employee
Businessman
4%
13%
25%
58%
Figure 4.3: Occupation
According to the findings the major of respondents are Private sector employees
(58%), while 25% Businessman, 13% Government employees and other represent
4%. The researcher identified others as retired persons.
19
Table 4.4: Income Level

Income level
Between Rs.21,000.00 - Rs.50,000.00
Between Rs.51,000.00 - Rs.100,000.00
Above Rs.100,000.00
Total
Frequency
19
23
10
52
19%
37%
44%
Between Rs.21,000.00 - Rs.50,000.00
Between Rs.51,000.00 - Rs.100,000.00
Above Rs.100,000.00
Figure 4.4: Income Level
While no respondents in below Rs.20,000.00 income level group, there are 44%
respondents were respond in Rs.51,000.00 Rs.100,000.00 income level group and
there are 19% respondents were in above Rs.100,000.00 income level group.
Table 4.5: Experience
among Leasing
Experience Frequency
Yes
No
35
17
Total
52
No
33%
Yes
67%
Figure 4.5: Experience among Leasing
As per the survey finding there are 67% respondents are having an experience
with Leasing facilities, while 33% respondents are never get Leasing facilities but
they have expectation among the service quality of Leasing and Finance companies
yet to.
20

4.3. Analysis of Variables
In this subchapter the descriptive statistics of each construct is illustrated in

paragraph 4.3.1., and there is a choice of the statistical tests for testing hypotheses
in paragraph 4.3.2.
4.3.1.
Descriptive statistics of variables
The descriptive statistics of two variables are presented to get an overview

of the rated service quality and satisfaction. Within this research service
quality is a predictor variable within hypotheses 1 to 5.
The minimum, maximum, mean and standard deviation scores of Service

Quality indicate that there are great differences in the service of the Leasing
and Finance sector.
Table 4.6: Descriptive Statistics of Service Quality
N Minimum Maximum Mean Std.
Deviation
Tangibility
52
3.00
5.00
4.03
0.59
Reliability
52
2.25
5.00
3.86
0.74
Responsiveness
52
2.33
5.00
3.92
0.69
Assurance
52
2.80
5.00
4.00
0.62
Empathy
52
2.50
5.00
3.80
0.68
Service Quality
52
2.73
5.00
3.92
0.61
Total [N]
52
The Mean values of Tangibility and Assurance are exceeded 4.00, and
Reliability, Responsiveness, Empathy are exceeded 3.50. That means the all
dimensions of SERVQUAL model are considered very important towards
customer satisfaction.
The Service quality shows the mean value as 3.92, therefore total service
quality is highly influence the customer satisfaction to create a loyal
customer to the Leasing Company.
21

The dependent variable of the research is Customer Satisfaction. The
descriptive statistics of customer satisfaction and its concept items are stated
in table 4.7. The scores indicates that there are great differences in
satisfaction items.
Table 4.7: Descriptive Statistics of Customer Satisfaction
N Minimum Maximum Mean
About
Service
Quality
Importance
of
Service Quality
Overall Satisfaction
Valid N
Std.
Deviation
52
2.00
5.00
3.81
0.82
52
2.00
5.00
3.88
0.82
52
52
2.00
5.00
3.85
0.77
4.4. Test of Hypotheses

In this subchapter the different hypotheses will face their statistical tests and it
becomes clear if the hypotheses can be confirmed. Since there are no significant
differences between the different types of respondents (See chapter 4.1 & 4.2), the
whole sample is used to test the different hypotheses.
4.4.1.
Correlation coefficient
To assess the strength of relationship between pairs of variables, the
researcher has to find correlation coefficient of those variables. A
Correlation coefficient enables to quantify the strength of the linear
relationship between two ranked or numerical variables. This coefficient can
take on any value between -1 and +1. A value of +1 represent a presents a
perfect positive correlation. This means that the two variables are precisely
related and that, as values of one variable increase, values of the other
variable will increase. By contrast, a value of -1 represents a perfect negative
correlation. Again, this mean that the two variables are precisely related.
Correlation coefficients between -1 and +1 represent weaker positive and
negative correlations, a value of 0 meaning the variables are perfectly
independent. (Saunders, 2009)
22

The researcher have found the correlation coefficients of those variables
by using features of SPSS software as follows;
4.4.2.
Relationship between five dimension and customer satisfaction

Table 4.8 shows result of the Pearsons correlations coefficient test
between the different concepts in the hypotheses:
Table 4.8: Correlation Coefficient of Hypotheses
Service Quality Pearson Correlation
.861**
Sig. (2-tailed)
.000
N
52
Pearson Correlation
.786**
Tangibility
Sig. (2-tailed)
.000
N
52
Pearson Correlation
.782**
Reliability
Sig. (2-tailed)
.000
N
52
Pearson Correlation
.809**
Responsiveness Sig. (2-tailed)
.000
N
52
Pearson Correlation
.803**
Assurance
Sig. (2-tailed)
.000
N
52
Pearson Correlation
.762**
Empathy
Sig. (2-tailed)
.000
N
52
**. Correlation is significant at the 0.01 level (2-tailed).
The Peorsons Correlation of overall service quality and customer
satisfaction shows 0.861 (Sig < 0.01), it is describes as there is a strong
positive relationship between Service Quality and Customer satisfaction.
As per the above results on Table 4.8, can be analyzed research

hypotheses, as follow;
The dimension of Tangibility shows a strong positive relationship by

providing Correlation coefficient as 0.786 (Sig < 0.01) which leads to accept
23

the H1, proposing positive relationship between Tangibility and Customer
satisfaction in Leasing & Finance sector.
The second dimension, Reliability is also yielded strong positive

correlation confidents of 0.782 (Sig < 0.01) for customer satisfaction which
lead to accept the second hypotheses (H2), can be proposed as there is a
positive relationship between reliability and customer satisfaction in
Leasing & Finance sector.
The dimension of Responsiveness is showing also a strong positive

correlation confidents of 0.809 (Sig <0.01) among customer satisfaction to
lead us to accept the relationship between responsiveness and customer
satisfaction in Leasing & Finance sector (H3).
The fourth dimension is Assurance, and it shows correlation coefficient

value as 0.803 (Sig<0.01) towards customer satisfaction to lead to know
there is a strong positive relationship between two dimension and accept the
fourth hypotheses (H4), there is a positive relationship between assurance
and customer satisfaction in Leasing & Finance sector.
The fifth dimension is Empathy and it shows also a strong positive

correlation for customer satisfaction by providing correlation coefficient as
0.762 (Sig<0.001) lead to accept the H5 of there is a positive relationship
between empathy and customer satisfaction in Leasing & Finance sector.
Table 4.9: Model Summary
Model
R
R Square
Adjusted R
Std. Error of the
Square
Estimate
a
1
.871
.759
.733
.39794
a. Predictors: (Constant), empathy, tangibility, assurance,
reliability, responsiveness
Table 4.9 above provides the model summary of the model which
specifies customer satisfaction as a function of service quality dimensions

of Tangibility, Reliability, Responsiveness, Assurance and Empathy. R
24

square of model is 0.759 which entails that 75.9% of the variation in
dependent variable i.e. customer satisfaction is accounted for by this model
is very good.
Table 4.10: ANOVAa
Model 1
Sum of Squares df Mean Square
F
Sig.
Regression
22.985 5
4.597 29.029 .000b
Residual
7.284 46
.158
Total
30.269 51
a. Dependent Variable: satisfaction
b. Predictors: (Constant), empathy, tangibility, assurance,
reliability, responsiveness
Table 4.10 above provides the ANOVA test of the model which species
customer satisfaction as a function of SERVQUAL dimension of Service
Quality which are Tangibility, Reliability, Responsiveness, Assurance and
Empathy. ANOVA tells overall goodness of fit of the model. F-statistic of
the model is 29.029 which is quite good and entails that model is a good fit
at 1% level of significance.
25
Conclusion and Recommendations Chapter V

5. CONCLUSION AND RECOMMENDATIONS
As per the results of analysis processed by previous chapter findings of the study are
explained covering the researchers main objectives briefed in the Chapter I, and in this
Chapter the researcher listed down some recommendations to dilute or to eliminate of
the relationship between customer satisfaction and service quality in Leasing & Finance
sector in Sri Lanka.
5.1. Conclusion
The analysis of primary data in Chapter four revealed that there are positive
relationships between SERVQUAL model dimensions towards customer
satisfaction.
5.1.1.
Finding 1 Demographic characteristics
The majority of respondent represent Male and it is about 88% since, the
high interest on Leasing & Finance field in Sri Lanka is Male. There are
75% of respondents in between 21-40 age group and 17% in 41-60 age
group and only 8% in above 60. Private sector employees are having more
interest in Leasing and Finance sector, as per the respondent, but other fields
(such businessman) should be considered to apply recommendation to
increase their satisfaction towards Leasing & Finance sector. It is difficult
to predict the income level of respondents towards two variable because
income level can be change time to time.
5.1.2.
Findings 2 Analysis of Independent and Dependent variables
Today financial institutions are facing so many challenges such as

increase customers demand and expectations coupled with provision of
premium quality services. Furthermore, customers are behaving more
critically to the service quality practices prevailing in Leasing & Finance
sector. Increasing customer demand together with ever growing competition
26

are compelling the financial institutions to adapt new competitive and
innovative ways which will help to take the lead in the market place in the
form of loyal customer base. (Sellers, 1989)
To present an answer to the main research question, service quality and

customer satisfaction are operationalized within the Leasing & Finance
Sector in Sri Lanka. The research used five dimensions to measure service
quality; Tangibility, Reliability, Responsiveness, Assurance and Empathy
(Parasuraman et al, 1988). Tangibility refers to the appearance of the staff
and office towards customer satisfaction. Reliability refers to the ability of
the staff to perform promised service accurately. Responsiveness reflects
the willingness to help and provide quick service. Assurance refers to the
trust in the knowledge and proficiency in the staff of Leasing Company and
Empathy refers caring and individual attention of staff towards customer.
As per the findings analyzing of independent and dependent variable,

there are strong positive relationship between SERVQUAL dimensions and
customer satisfaction indisputably. Therefore, the researcher could be able
to answer to research questions as;
a. The SERVQUAL factors are caused to Service Quality dimensions

towards customer satisfaction strongly
b. The influence of Tangibility is very high towards customer satisfaction
c. The influence of Reliability is very high towards customer satisfaction
d. The influence of Responsiveness is very high towards customer
satisfaction
e. The influence of Assurance is very high towards customer satisfaction
f. The influence of Empathy is very high towards customer satisfaction
27

5.2. Recommendations
The basic purpose of this research work is to put forward recommendations of

practical nature. The following recommendations are proposed to Leasing and
Financial sector in Sri Lanka.
a. The satisfaction of the customers is a very much important factor that not only
forces the customers to remain loyal with the Leasing Company but also proves
as a marketing mechanism through which other people area attracted towards
the Leasing Company. The word of mouth of a satisfied customer probability
has more worth than any other advertising channel.
b. The marketers (Staff) should keep in mind and determine the factors of premium
service quality that enhances the customer satisfaction in Leasing and Finance
Sector in Sri Lanka. Frequent surveys must be conducted to obtain data from
customers regarding their perceptions, suggestions and recommendation to
improve the service quality. e.g. Customer complaint box
c. Innovating the services according to the needs and demands of the customers is
very much important. Customer must be the focus of every strategy. In this
regard, the Leasing Companies must think in terms of end result of their service
quality innovations. The focus should be on the long run rather the current
situation.
d. Leasing & Finance Companies should be arranged continues training programs
towards Service Quality to their employees to give a premium service to its
customers.
e. The flexible management environment of a company is highly influence to give
a better and premium service to its customers by its employees. Therefore,
Leasing Companies should think about the staffs mind set to improve its
quality.
f. The demographical approach could be analyzed in this regard to identify, how
the company could be improved the service quality demography.
28
List of References
List of References
Aydin, S., & zer, G. (2005). The analysis of antecedents of customer loyalty in the
Turkish mobile telecommunication market. European Journal of Marketing, 39(7/8), 910925.
Blery, E., Batistatos, N., Papastratou, E., Perifanos, I., Remoundaki, G., & Retsina, M.
(2009). Service quality and customer retention in mobile telephony. Journal of Targeting,
Measurement and Analysis for Marketing, 17(1), 27-37.
Descriptive
Statistics.
2015. Descriptive
Statistics.
[ONLINE]
Available
at:http://www.socialresearchmethods.net/kb/statdesc.php. [Accessed 12 May 2015].

Grnroos, C. (2004). The relationship marketing process: communication, interaction,
dialogue, value. Journal of Business & Industrial Marketing, 19(2), 99-113.
Ismail, I., Haron, H., Ibrahim, D. N., & Isa, S. M. (2006). Service quality, client satisfaction
and loyalty towards audit firms: Perceptions of Malaysian public listed companies.
Managerial Auditing Journal, 21(7), 738-756.
Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Marketing management: A South
Asian perspective (13th ed.). New Delhi, DL: Pearson Prentice Hall.
Liu, Y., Li, Y., Tao, L., & Wang, Y. (2008). Relationship stability, trust and relational risk
in marketing channels: Evidence from China. Industrial Marketing Management, 37(4),
432-446.
Mark N.K. Saunders. (2009). Research Methods for Business Students (5th Edition).
Prentice Hall.
Newman, K. (2001). Interrogating SERVQUAL: A Critical Assessment of Service Quality
Measurement in a High Street Retail Bank. International Journal of Bank Marketing. 19(3).
126-139
Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1989). Refinement and reassessment of
the SERVQUAL scale. Journal of Retailing, 67(4), 114-139.
29
List of References
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL. Journal of
Retailing, 64(1), 12-40.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service
quality and its implications for future research. the Journal of Marketing, 41-50.
Sekaran, U. and R. Bougie (2010). Research methods for business: A skill building
approach. Wiley, London.
Sekaran, U. and Bougie, R. (2009). Research Methods for Business: A Skill Building
Approach. A John Wiley and Sons, Ltd, Publication
Sellers, P. (1989). Getting customers to love you. Fortune, 119(6), 38-49.
Triplett, J.L., Oliver, H.M., Neal, C. (2007). Assessing the Reliability and Validity of
SERVQUAL in a Longitudinal Study: The Experience of an Australian Organization. Asia
Pacific Journal of Marketing and Logistics. 41-62.
Wyse, R., Campbell, E., Nathan, N., & Wolfenden, L. (2011). Associations between
characteristics of the home food environment and fruit and vegetable intake in preschool
children: A cross-sectional study. BMC Public Health,11(1), 938.
30
Annexure
Annexure
Questionnaire (English)
Dear Sir/Madam/Miss,
It would be much appreciated if you could give your kind co-operation to respond to this
questionnaire as; it is a partial requirement for me to conduct a research for the Post
Graduate Diploma in Marketing of Sri Lanka Institute of Marketing.
The confidentiality of the information that you provide is highly protected and that
information is used only for academic purposes.
Part I Personal Data
01. Gender?
Male
Female
Below 20
Between 41-60
Between 21-40
Above 60
02. Age?
03. Occupation?
Government Employee
Businessman
Private Sector Employee

Other
04. Income Level?

Below Rs.20,000.00
Between Rs.51,000.00
Rs.100,000.00
Between Rs.21,000.00 Rs.50,000.00

Above Rs.100,000.00
05. Have you ever obtained a leasing facility?

Yes
No
06. If Yes, Mentioned the Name of the Company.
07. If No, which company come first to your mind?
31
Annexure
Part II Survey of your expectations and perceptions towards service quality of
mentioned Leasing Company
Based on your experiences as a customer of any leasing company Sri Lanka, please put a
tick () in a box
which mostly explains your attitudes.
a) level of EXPECTATION/PERCEPTION towards service quality the company

The score level are described as 5 = highest, 4 = high, 3 = moderate, 2 = low and 1 = lowest
Dimensions
Tangibility
8. The Staff dress appropriately
9. The staff provide the service with smiling
10. The staff have attractive appearance [E.g. elegant, smart, etc.]
Reliability
11. The staff can provide you the service as promised.
[E.g. As per company advertisements]
12. The staff provides you accurate information.
[E.g. Interest rate, Other Charges, etc.]
13. The staff performs the service right at the first time.
(As you observation)
14. The staff offer you some help. [When filling the loan application,
Door step service (Visit guarantors to sign)]
Responsiveness
15. The staff tells you exactly when service will be provided. [E.g. the
time of issuing purchase order, when the supplier cheque will
release]
16. The staff gives you a prompt service. [E.g. When you come office,
they give the service without delay]
17. The staff is willing to help you.
[E.g. guiding you to re-pay correctly]
Assurance
18. The staff has the product knowledge. [E.g. describing all type of
leasing facilities and pros n cons of them]
19. The staff has required skill to perform service.
[E.g. they can make a good relationship with you]
20. The staff speak with you by using an appropriately address forms.
[E.g. Hello, May I help you, Sir/Madam, Ayubowan]
21. The staff are trustworthy
22. The staff make you feel safe when getting a leasing facility from
them
Empathy
23. The staff are able to communicate with you in your language
24. The staff are able to communicate effectively with you
25. The staff shows personal attention to you.
[E.g. Calling you in your personal matter, etc.]
26. The staff knows your specific needs.
32
Level of Score
5
4 3 2 1
Annexure
Part III: Returning again to the mentioned company
27. Your satisfaction towards the provided service by the staff of mentioned leasing
company
Highest
High
Moderate
Low
Lowest
28. Importance of the quality of service to get more facilities from mentioned company (as
your experience)
Highest
High
Moderate
Low
Lowest
29. Are you planning to return to the mentioned Leasing Company?

Yes
No
Not Sure
Your suggestions towards service quality of the staff of mentioned company. (e.g.
Compliment, complaint)
Thank you for your kind corporation
33
Annexure
Questionnaire (Sinhala)
////,
,
.
,
.
.
I :
01. / ?
02. ()?
20
41 60
20 40
60
03. ?

04. ?
.20,000/-
.51,000/- .100,000/-
.20,000/- .50,000/-
.100,000/-
01. ( ) ?
02. "" ,
03. "" , ?
34
Annexure
II :

() .
05
"" ,

5 =
4 =
3 =
2 =
1 =
35
""
Annexure
Tangibility ( )
8.
9.
10.
[: , , etc.]
Reliability ()
11. .
[: ]
12.
[: , , etc.]
13. , .
( )
14. . [: ,
]
Responsiveness ( )
15.
[: (Purchase order)
]
16.
[:
]
17. ?
[: ]
Assurance ()
18. .
[:
]
19.
20. .
[: , , , , ,
?]
21. .
22. ,

Empathy ( )
23.
24.
25. .
[ , ]
26.
III :
27. .

36

5 4 3 2 1
Annexure
28. ,
)

29. ?
30. , [
.!!!
37
Annexure
Online Survey (Only a sample)
38

Matara-0000019076-Research Report-June15 PDF

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Matara-0000019076-Research Report-June15 PDF

Hochgeladen von

Copyright:

Verfügbare Formate

THE RELATIONSHIP BETWEEN CUSTOMER

SATISFACTION AND SERVICE QUALITY IN LEASING &

An Integrated Research Project submitted to the Sri Lanka Institute of Marketing in

Supervisor: Mr. Priyantha Neelawala

Sri Lanka Institute of Marketing

Research Report Evaluation

Postgraduate Diploma In Marketing

Individual Integrated Research Project

Topic Academic, Relevance, and formulation

Defining the problem or research area

Data presentation. Validity and scope of data

Analysis and Findings

Conclusion and Recommendations

Adherence to Stipulated Format

THE RELATIONSHIP BETWEEN CUSTOMER SATISFACTION

Mr. Priyantha Neelawala

(the signature of your supervisor)

Head of Education - SLIM

Sri Lanka Institute of Marketing

Background of the problem ........................................................................................... 1

The significance of the exploration of the problem ..................................................... 1

Introduction to Leasing Industry .................................................................................. 2

The objectives of the research ....................................................................................... 3

Approach to data collection and analysis ..................................................................... 4

Delimitations of the study .............................................................................................. 4

The outline of the research ............................................................................................ 5

LITERATURE REVIEW ...................................................................................................... 6

Service Quality ................................................................................................................ 6

Customer Satisfaction .................................................................................................... 9

Research design ............................................................................................................ 10

Conceptual frame work of the study .......................................................................... 10

Hypotheses of the research .......................................................................................... 11

Research Population ............................................................................................... 12

Research Sample .................................................................................................... 12

Data collection method ................................................................................................. 12

Measurement of variables ............................................................................................ 13

Measuring Five variables of SERVQUAL Model & Customer Satisfaction ......... 14

Research Questions Formulating ................................................................................ 14

Method of data presentation........................................................................................ 16

Reliability of the questionnaire ............................................................................... 17

DATA PRESENTATION AND ANALYSIS ..................................................................... 18

Surveyed respondents .................................................................................................. 18

Demographic analysis of Respondents ....................................................................... 18

Analysis of Variables .................................................................................................... 21

Data analysis tools .................................................................................................. 16

Descriptive statistics of variables ........................................................................... 21

Test of Hypotheses ........................................................................................................ 22

Correlation coefficient ............................................................................................ 22

Relationship between five dimension and customer satisfaction ........................... 23

CONCLUSION AND RECOMMENDATIONS................................................................ 26

Finding 1 Demographic characteristics ........................................................... 26

Findings 2 Analysis of Independent and Dependent variables ...................... 26

List of References ......................................................................................................................... 29

Outline of the research.

SERVQUAL model with five dimensions ..............

Experience among Leasing...

Likert Scale of the study.

Operationalization of Service Quality.

Operationalization of Customer Satisfaction

Experience among Leasing..

Descriptive statistics of Service Quality..

Descriptive statistics of Customer Satisfaction

Correlation Coefficient of Hypotheses.