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CHAPTER I

INTRODUCTION

A. Background

Forwarding is a service industry. It produces intangible products. One of characteristics of service that the customer can be loyal if the service is satisfying. Customer satisfaction is a vital element in marketplace success. Businesses in all industries are focused on quantifying customer’s assessments of services and products because they realize that the customer opinions will affect the customer’s choices. In order to fulfill the customer’s satisfaction the company has to understand the dimension of customer satisfaction.

Understanding the dimension of customer satisfaction can help a company service attract new customers through positive word of mouth and increase the number of repeat customer. Customer satisfaction is an important aspect of company service success. The fulfillment of customer expectations of service are valid indicators of customer satisfaction. The identification and measurement of service quality are critical factors which is responsible for customer satisfaction.

In reach customer satisfaction in forwarding service, the company performance is the important factor in identified the satisfied customers, such as Tangibles; the appearance of physical facilities, equipment, personnel, and communication material, Empathy; the provision of caring, individualized attention to customers, Assurance; the knowledge and courtesy of employees and their ability to convey trust and confidence, Responsiveness; the willingness to help customers and provide prompt service, Reliability; the ability to perform promised service dependably and accurately. By identifying the service performance of the forwarding service, we can measure the customer satisfaction and whether there is a relation between dimension of customer satisfaction and their satisfaction.

Zeithmal, Parasuraman, and Berry (1985) has developed SERVQUAL method that measures five dimensions of service quality, that are presented in order of importance:

  1. Reliability; the ability to perform promised service dependably and accurately.
  2. Responsiveness; the willingness to help customers and to provide prompt service.
  3. Assurance; the knowledge and courtesy of employees and their ability to convey trust and confidence.
  4. Empathy; the provision of caring, individualized attention to customers.
  5. Tangibles; the appearance of physical facilities, equipment, personnel, and communication material.

Oliver (1997) made a conceptual definition customer satisfaction: the customer’s fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provided (or is providing) a pleasurable level of consumption-related fulfillment, including level of under- or over fulfillment.

Satisfaction occurs when customer expectations are met or exceeded and the purchase decision is reinforced. As feedback from post purchase evaluation. Satisfaction reinforces positive attitudes toward the brand, leading to a greater likelihood that the customer will repurchase the same brand. Dissatisfaction result when customer expectations are not met. Such disconfirmation or expectations is likely to lead to negative brand attitudes and lessens the likelihood that the customer will buy the same brand again. (Assael, 1998).

Satisfied customer is an asset of the service company. They will be a word-of-mouth promotion because satisfied customers tend to be repurchasing the service or the product and recommend another people to use company service. On the other hand, unsatisfied customer will be a threat of the service company because unsatisfied customers tend to tell their friends about their unsatisfaction so that their friends do not use the company service.

PT RST (Rachenhall Stat Transportation) is Jerman forwarding company in Jakarta. It conducts forwarding service of goods especially export service. The shipment of goods is using plane and ship.

Competition in forwarding bussiness is unavoidable, since there are many forwarding companies there. They have same spesification and strategies regarding customer services as the implementation of corporate vision and mission. However, not all customers are satisfied with the service given. Customers may have many expectations that the company cannot meet them yet. They feel the customer service seems to be rude, the shipment is late and so on. Each customer has different expectations.

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PT RST may face problem regarding customer satisfaction, since there can be any point or issue that has not been met yet by the company. It becomes more important since they may have different perceptions and expectations compared to the expectations relying on person.

B. Problem Identifications

Understanding the costumer behavior is very important for the company. The reasons why people buy and consume a product or service are varied. Customer Behavior is not just making a purchase decision or the act of purchasing, but it also includes the using of products and services and satisfaction derived from using them.

Based on the introduction mentioned earlier, the basic problem that could be stated here is how far the influence of service quality toward customer satisfaction in PT RST Indonesia.

C. Problem Statement

The research will attend to focus on customer satisfaction in PT RST Indonesia. The problem proposed are as follows: Do tangibles, empathy, assurance, responsiveness, reliability have positive and significant effect on customer satisfaction in PT RST Indonesia?

D. Limitation of Research Area

  1. The research is going to be conducted at PT RST Indonesia in Jakarta.
  2. The research is emphasized on customer who come to PT RST Indonesia.

E. Research Objectives

The objectives of this research are :

  1. To analyze whether any gap between customer service expectations and customer service received.
  2. To analyze whether the dimension of satisfaction such as tangibles, empathy, assurance, responsiveness, reliability have positive and significant effect on customer satisfaction in PT RST Indonesia

F. Research Benefits

High-level of satisfaction could be translated into a good promotional campaign. Highly satisfied person recommends the brand toward another people, or use it again when it is needed. It will be important for any company that faces the competition atmosphere, where competitor may produce lower price service. That issue important since PT RST Indonesia could build some strategies to improve customer satisfaction by understanding customer values.

G. Definition of Terms

1. Service

Every action or performance offered by a party to another party which is in principle intangible and does not bring about any transfer of ownership whatsoever. Its product may and may not be bound to a physical product.

2. Service Quality

The level of excellence expected and control over the excellence level to fulfill customer expectations.

3. Customers Satisfaction

Customer satisfactions is the extent to which a product perceived performances matches buyer expectation.


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