Background Information Curacao Surveillance Services Css Marketing Essay

Published Date: 23 Mar 2015

Chapter 1: General Introduction

Introduction

This chapter part will give an overview and general description of the company and the market they are exercising in; besides the background of the company, followed by the problem area(s), research question and sub problems; the purpose and limitations of the study finalizing with the setup of the thesis.

Service quality and customer satisfaction are very important concepts that organizations must understand in order to remain in the business and competitive in the market they are exercising in. It's essential for companies to know their customers with the aim of to better understand their needs and demands and hence satisfy them. Changes in customer demands certainly require new skills and these skills represent an opportunity for creative and aggressive employees and management to recognize and deliver the service-quality that the increasingly demanding customers have come to expect and are waiting to perceive (Zeithaml & Parasuraman, 2004). Understanding the motivation, expectations and the desire of your customers gives a foundation in how to best serve them. The importance of clearly defining the key concepts of satisfaction provides a template by which information can be gathered about what is, and what is not working. If companies can recognize these opportunities and deliver the quality service, they will have the opportunity to ensure customer satisfaction. Satisfying customers is one of the main objectives of every business. Businesses must recognize that keeping current customers is more profitable than having to win new ones to replace those lost. Customer satisfaction is an asset that should be monitored and managed just like any other physical asset (Naik, Gantasala & Prabhakar, 2010).

Given the financial and resources constraints under which service organizations must manage it is essential that customer expectations are properly understood and measured and that from the customer perspective any gaps in service quality are identified and not least within the security service industry. Given the fact that security companies provide protection against robbery resulting from a variety of perils through alarm system monitoring and surveillance services; and based on the magnitude of the services provided and the fact that it's applicable for private purposes as well as businesses, it is essential for an company including a security service company to meet the changes in their customers' demands in order to maintain customer committed and satisfied over time. Incorporating the changes in customers' demands on a regular basis would allow the company to gain satisfied, loyal customers over time (Shahin, 2006).

Background of the study

Background information Curacao Surveillance Services (CSS)

Everyone living on the island of Curacao or Bonaire (individual or legal entity) had or will have direct or indirect contact with security service companies. Think for example about monitoring of your alarm system for both private residences and/or business, surveillance services, GPS tracking system for vehicles, or guard force supervision. Security is measures incurred to secure and protect objects or individuals against harmful influences. Those influences can come from outside, such as terrorism and organized crime, but also from within, for example, fraud and embezzlement. Security is a way to reduce risks and make it more manageable in order to increase safety. Protectors and security guards are supervisors which on behalf of a private, corporate of government agencies monitor compliance with laws and regulations.

Curacao Surveillance Services (hereafter referred to as: CSS) is a security company specialized in a complete source for security monitoring services, burglary, fire and medical emergencies operating also in Bonaire. They offer a state-of-the-art computerized monitoring center and a completely redundant back-up system. The owner of CSS, Mr. Ke-Chi Chang decided in 1993 based on a conducted economy and market research on the island of Curacao to start his own business. He came with a unique concept, which included the monitoring of private homes and businesses. Alarm systems were installed and programmed by third parties to the system of CSS. CSS offers:

24/7 Surveillance services;

Monitoring of alarm system for both private dwellings and business;

Remote video and virtual tours surveillance;

GPS tracking system for vehicles;

Fleet management and tracking;

Third party guard force supervision.

Pursuant to "Wapenverordening 1930: Verordening van den 4 januari 1930, houdende nadere voorzieningen op het stuk van wapenen en munitie (P.B. 1930, no. 2).Verordening van en 7den november 1931, houdende nadere voorzieningen op het stuk van wapenen (P.B. 1931, no. 77). CSS is in possession of a license to provide abovementioned security services and make the necessary steps and actions incase this is required to guarantee his own safety but also the customer's safety and well-being.

CSS makes over the years a considerable growth and has an amount of 65 staff members. These are spread across the different departments and the different shifts (day shift, evening shift and night shift). The central station receives all the incoming calls including alarm notifications. While the patrol officers (4 working in each shift) are the ones send to the location as notified by the central station officers. The guards are spread at "Kranchi, Buro Rijbewijs, Bloempot, Piscadera Bay resort & Schlumberger" (Figure 1-1).

Figure -1: Organizational Structure of CSS

Mission

The mission of CSS is to grow in alarm monitoring and follow-up, and to become the number one company in the market/business they are operating but also in the Caribbean Region with regards to the services they provide; achieve and maintaining a reliable image for the company; in order to maintain the confidence of customers, to increase market share by offering their services at lower prices, to continuously maintain the quality of the service, while meeting and exceeding customer expectations. While taking into consideration abovementioned specific problem/constrains that can only be influenced indirectly by CSS management and employees.

Competitors

As indicated by Mr. Evertsz their biggest competitors are listed below and are limited to those:

AVD Security Systems (previous name CVD Security Systems);http://t1.gstatic.com/images?q=tbn:ANd9GcRFdIsxqAVedpT1dMCKSn4jAdBten6EIrjcHOkbTGZpR0F790SCCLmJog

Securitas Antias;

Speedy Security N.V.;

Pinedoe Security Services N.V.;

For all of these companies, price, goodwill and definitely the quality of service are the most effective marketing tools to attract and retain existing customers in this competitive market; based on the fact that alarm system, security prices and the way of doing business of each and every security company is different. That's why emphasizing on offering cheaper prices and better service is advisable. Offering better service resulting in customer satisfaction are internally based processes, components, standards and criteria's that a business strives to achieve. These are the performance goals and targets set forth by the business, for the business. Meeting of exceeding these is often an indicator of success or failure. In order for a business to meet these goals and targets, the companies must also know its competitors. This information is vital not only for the success of the business by doing some benchmark but also for understanding and improving customer satisfaction (Naik, Gantasala & Prabhakar, 2010). Customer are more challenging components for any organization rather that only their competitors. Satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a service or product perceived performance (or outcome) in relation to his or her expectation. Each and every factor is equally important and competitive each other, but the customer prefers the some factors that are superior to select the brand and/or company of their preference. These factors are among others, after sales service, loyalty programs, sales person behavior, reliability, competitive prices but also customer service (Krishan & Hari, 2011)

Specific problem

Will the process of not complying with customer satisfaction based on the 5 dimensions of SERVQUAL affect the growth and success of the company, resulting in his des-continuity?

One of the main ingredients of success in the market place is customer satisfaction. Customer satisfaction is the extent to which a firm fulfills customer's needs, desires and expectations (Perreault & Mc Carthy, 2002). Satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a product and/or service perceived performance (or outcome) in relation to his or her expectations. If the performance falls short of expectations the customer is dissatisfied. If the performance exceeds the expectations the customer is satisfied. Effective marketing focuses on two activities: retaining existing customers and adding new ones. Customer satisfaction is a strong predictor of customer retention, customer loyalty (Krishan & Hari, 2011).

Therefore many countries have implemented a universal benchmark for quality assurance, ISO certification (Zeithaml & Parasuraman, 2004). ISO 9001-2000 is related to both service and production industries and ISO 10002-2004 provides guidance on the process of complaints and enhances customer satisfaction by creating a customer-focused environment. According to ISO 9001-2004 customer satisfaction is defined as: the perception [1] of the customers regarding the ability of the company and extent to which their requirements are being fulfilled (Nederlandse norm NEN-ISO 10002, 2004).

According to van den Berg & van Dooren 96% of dissatisfied customers never complain, 60% of the silent dissatisfied customers will not buy from you again, and 90% of those who do complain will not come back. Stating that "In the wake of increasing globalization, customers has become increasingly conscious not only of what they buy, but also how the goods and services they buy have been produced and delivered".

Various factors determine the level and extent of customer satisfaction and several others have been brought to light by marketing research. But this information is far away for some companies engaging in producing products and services, this because they have never conducted a customer satisfaction survey or analyses. Besides are not even interested in knowing how satisfied or dissatisfied their customers are. Consequently producers and/or service providers are unable to exploit this information for their success.

Based on the above-mentioned CSS has also never conducted such a survey or analyses making it difficult or even impossible for them to determine in which extend their customers are satisfied or dissatisfied with the services provided. Consequently they're unable to exploit this information in order to propagate in their business and overall market environment.

Market information

According to the Central Bureau of Statistics (CBS) the total population of Curacao in 2010 was estimated at 142.180. If compared to the population of 2011 of 145.406 inhabitants (see table 1-1 below) it indicates an increase of 2.269%

Table 1-1: Age distribution Curacao, January 1st

Age 0 - 29

30 - 59

60+

Total

Amount 56771

62643

25992

145406

Source: Population Registry and CBS estimates (http://www.cbs.cw/cbs/themes/Population/Data/Population)

In 2010 CBS allocated the population according to the number of registered cases of crime by category (see table 1-2). As can be noticed the number of property crimes decrease in 2010 with approximately 28% compared with 2009. And as indicated by the Mr. Evertsz (Operation Manager CSS), one reason for this drop is the fact that people start feeling more insecure resulting in more people installing alarm system and connect it to security companies. But also, insurance companies nowadays require installing alarm systems in order for them to insure the household effects.

Table 1-2: Registered cases by crime category

Crimes

2006

2007

2008

2009

2010

Type of crime

337

405

436

486

577

Property

180

200

226

430

308

Violent

13

20

40

81

59

Moral

454

344

581

582

533

Drug offences

63

105

127

98

102

With firearms

19

123

167

129

626

Others

1066

1197

1577

1806

2205

Source: Public prosecutor (http://www.cbs.cw/cbs/themes/security and justice/Data/security and justice)

Besides the amount of building build and completed increased with approximately 8% in 2010 if compared with 2009, of which dwellings in 2010 increased with 45% if compared with 2009.

In order to be connected to a security company you must have a fixed telephone connection at the premises where the alarm system will be connected. Based on this, the total amount of fixed telephone connection during increased in 2011 with approximately 2% compared with 2010 (see table below).

Table 1-3: Fixed telephone connection

Year 2010

Year 2011

204024

206294

Source: Bureau Telecommunication & Post (http://www.cbs.cw/index.php?option=com_jumi&fileid=31)

All these increases indicate an increase of the market resulting in an increase in CSS's target market consequently could indicate an increase in CSS potential new customers.

Target market analyses

As part of the interview with CSS Operation Manager the following question was asked: 'Who are CSS target group?'This was analysed and answered as follows: "CSS target customers are the all people (man or women) or organizations on the island of Curacao with an income above the minimum wage, which is a monthly income of approximately 1.500 and above; and they must own and/or rent a house or apartment". But even though the above mentioned CSS target group can be described very broadly, this based on the fact that everybody living on Curacao can be subscribed at a security company in order to protect their properties and themselves even though they have a monthly income below the amount indicated.

Research question and Sub-problems

Specific Problem

The main issues addressed in this research are service quality and customer satisfaction using the SERVQUAL 5 dimensional model (tangibility, reliability, responsiveness, assurance and empathy) concept in the security service context. The SERVQUAL model will be investigated and analyzed, from the customer's perspective through assessing their expectations and perceptions. Therefore the following question will be answered through this research: Will the process of not complying with customer satisfaction based on the 5 dimensions of SERVQUAL affect the growth and success of the company, resulting in his des-continuity?

Sub-problems

Questions were composite based on the relationship between the dependent and the independent variables of the SERVQUAL model.

How do CSS customers perceive service quality based the SERVQUAL tangible, reliable, responsiveness, assurance & empathy service dimensions?

What do customers expect from CSS service quality based the SERVQUAL tangible, reliable, responsiveness, assurance & empathy service dimensions?

Does CSS service delivery process comply with standards regarding international security service procedures and regulations?

What are the main reasons for false alarms and what can be done by CSS and the customer itself to minimize the amount?

The research methods used consists of interviews with the manager and the employees (patrol officers, centralist & guards) a confrontation of the survey interview with customers of CSS based on the SERVQUAL measurement models; but also and literature review (books & publications).

Purpose of the study

Unique and differentiated service is the current key to success (Kotler & Keller, 2006). Customer's expectation answered service is indispensable to achieve the company's marketing and financial goal.

As indicated by Mr. Evertsz, he and Mr. Broman is directly in charge and responsible for customer claims and damage control and decisions regarding work conditions, & processes descriptions while the customer service is provided by the administrators, payroll officers but also the guards they are the ones directly working with the clients and delivering the service itself.. But one main problem that the company is confronted with which has nothing to do with the service itself is the fact that the amount of false alarms are incrementing drastically (see table 1-3). And this can only be indirect influenced by management and the service providers (administrators, patrol officers or guards).

Table 1-4: Total Alarms from June 1st, 2011 to May 31st, 2012

Signals

Per year

Per month

Per day

Per Hour

561138

46762

1533

64

In order for further analyses the reasons of those alarms they were categorized in the different types of false alarms notifications and the amounts.

Graph 1-1: Amount of false alarms by category

Therefore, the purpose of this study for CSS is on the aspect of the company's customer service quality, as it is an unambiguous key to competitive advantage in the market, but also how management can become more logical and integrated with respect to the prioritized service quality dimensions and their affections on increasing/decreasing service gaps; by taking into consideration abovementioned specific problem that can only be influenced indirectly by CSS management and employees.

The goals of this research are among others to understand and get more insight into the organization and management in order to investigate how satisfied or dissatisfied 'their' customers are the reasons why, and give recommendations where necessary, especially where it concerns customer satisfaction and false alarms notifications. According to Bosma Research International (2004), when maintaining a consistent level of customer satisfaction you need to know:

What feedback your customers have about your company's products and/or service;

Secondly it is important that your product and/or service delivery processes and policies are compatible with your quality standards and delivery systems;

It is also essential that employees are committed to and trained to implement quality service.

The relevance of the research for CSS is to get some ideas about which factors measure the quality of service. Since the service is intangible it is quite difficult to measure. General purposes are factors that impact customer satisfaction:

To describe the impact of service quality and customer satisfaction of CSS;

To know service quality (SERVQUAL) dimensions that make customer satisfied;

For CSS have a tool to measure their customer satisfaction level;

To give some guidelines and recommendations regarding service quality and false alarm notifications by taking into considerations that it only can be influences indirectly.

In other words, the intention is that the research result of 'customer satisfaction towards CSS customer service' could be use; as the measurement of its service quality. By making use of the data of this research, it could be considered advantageous to see the room for improvement as well as learn the expected service criteria from the customer perspectives; of which, if the company could reciprocate, would be very beneficial. Besides it could help CSS to find a plausible and direct way to influence the false alarm notifications.

Limitations

Since customer satisfaction is a broad theme and different models and concepts have been developed in order to quantify and quality customer satisfaction. But to narrow down the focus of this study the following criteria's has not be taken into consideration. We will use for this study the SERVQUAL model developed by Berry, Parasuraman & Zeithaml. Besides the SERVQUAL model is limited/focus only on service delivery organizations. Furthermore we will only consider for the purpose of this research the competitors (4) as indicated by Mr. Evertsz this based on the following criteria's, the signs (house signs) posted at each customers house entrance, the way of reacting on alarm notifications and finally the guards services. Besides CSS has a branch at Bonaire but for this research we will only focus at their branch at Curacao.

Set-up of the Thesis

Chapter 2 is the theoretical framework, consisting of theories regarding the consumer satisfaction and the conceptual model (SERVQUAL model). Furthermore theory related to the 5 dimensions tangibility, reliability, responsiveness, assurance and empathy. Chapter 3, methodology consist on information regarding procedures and the participants related to the study; followed by the instruments used and the validity of the survey, finalizing with representativeness of the research by using the Ch-square approach The chapter of research analysis Chapter 4, it's where the survey and the interviews conducted will be analyzed together with the analysis of the customer service and the SERVQUAL model; Indicating that theory and research data will come together. Finally with the false alarm research report Chapter 5, the conclusion and recommendation, where the main problem is being answered, the SERVQUAL gaps are closed and improved, followed by a conclusion and recommendation.

Chapter 2: Literature Review

2.1. Introduction

This chapter provides an overview regarding the SERVQUAL model, his advantages and disadvantages; followed by the variables (independent and dependent variables) that constitute the model; and finalizing with a conclusion.

Knowing the customer(s) is the key to a successful customer service as the idea is to create, deliver and communicate superior value. The service and/or products offer should answer to the needs and demands. Customers are the most important people for any organization. They are the resources upon which the success of the business depends. Understanding customers are necessary not only because of their effect on marketing decisions but because customers' activities influence the entire organization. When thinking about the importance of customers it's useful to remember the following points (Christ, 2009):

Repeat business is the backbone of selling. It helps to provide revenue and certainty for the business;

Organizations are dependent upon their customers. If they do not develop customer loyalty and satisfaction, they could lose their customers;

Without customers the organization would not exist;

The purpose of the organization is to fulfill the needs of the customers;

The customer makes it possible to achieve business aims.

Customer demands and preferences of different products and services is a subject of concern for many business areas. For the security service industries it means providing a variety of products and services that customers wants. However, these customers' preferences and choices are not similar from one customer to another. These differences make it hard for the security services companies as for other businesses to meet diverse demands. Thus, the knowledge of customers' preferences and their choices of products and services provided is one of the most significant characteristic for meeting customers' expectations and exceeding their perceptions.

Based on the abovementioned nothing would benefit companies more than an accurate and valid measure of service quality that helps them in measuring their performance. Such a measure would help them in evaluating their performance and taking corrective actions wherever required in order achieve their mission (Guar & Agrawal, 2006).

2.2. Service Quality (SERVQUAL)

History

As early as 1985 the authors Parasuraman, Zeithaml and Berry identified ten components of service quality namely Reliability, Responsiveness, Competence, Access, Courtesy, Communication, Credibility, Security, Understanding/Knowing the customer, and Tangibles. These ten components were later (1988) merged into five dimensions namely Reliability, Assurance, Tangibles, Empathy and Responsiveness. Of the original ten components only three components remain - Reliability, tangible and Responsiveness remained distinct, while the remaining seven components merged into two aggregate dimensions of Assurance and Empathy. SERVQUAL was developed by measuring service quality across service environment (Guar & Agrawal, 2006). Measurement allows for comparison before and after changes, for the location of quality related problems and for the establishment of clear standards for service delivery (Shahin, 2006)

The SERVQUAL model

Service quality is linked to the concept of perceptions and expectations. Customers evaluate service quality by comparing what they expect with how a service provider actually performs. Thus, service quality can be defined as the difference between customers' expectations of service and their perception of actual service performance; formally the degree and direction of discrepancy between customers' service perceptions and expectations. "Service quality is a measure of how well the service level delivered matches customer expectations. Delivering quality service means conforming to customers expectations on a consistent basis". Customers' perceptions of service quality result from a comparison of their before-service expectations with their actual-service experience. The service will be considered excellent, if the perception exceed expectations; it will be regarded as good or adequate, if only equals the perceptions; the service will be classed as bad, poor or deficient, if it does not meet them. Based on this the authors developed a scale for measuring service quality, which is mostly popular know as SERVQUAL. This scale operationalizes service quality by calculating the difference between expectations and perceptions, evaluating both in relation to 22 items that represent the 5 service quality dimensions knows as Tangibles, Reliability, Responsiveness, assurance and Empathy (Zeithaml & Parasuraman, 2004).

Figure 2-1: Conceptualization of the SERVQUAL model

SERVQUAL is the dominant approach to quantitatively assessing service quality. Using a survey approach, SERVQUAL elicits ratings of customer's expectations and perceptions on each of the five dimensions described above. Service quality can be also described as "closing the gap" between expectations and perceptions of service. Research has identified four "company gaps" that underlie the overall shortfall in customers' expectations/perceptions as developed by Zeithaml, Parasuraman and Berry.

In this study of SEVQUAL analysis, 21 questions instead of the original 22 will be used to measure the performance across abovementioned five dimensions, using a five (5) point likert scale measuring both customer expectations and perceptions. After data collection by means of the questionnaires the gap between customer expectations and perceptions will try to be closed.

The gaps model positions the key concepts, strategies, and decisions in delivering quality service in a manner that begins with the customer and builds the organization's tasks around what is needed to close the gap (see figure 2-2).

Figure 2-2: SERVQUAL Gaps-Model

Source: Zeithaml, V. & Parasuraman, A. (2004)

The graph illustrates that the central focus (top half) of the gaps model is the customer gap. To close this all-important customer gap, the model suggests that four other gaps-the provider gaps-need to be closed. The numbering of the gaps from 1 to 5 represents the sequence of steps (i.e., market research, design, conformance, communication, and customer satisfaction) that should be followed in new service process design.

SERVQUAL Gaps

Gap 1: Not Knowing What Customers Expect - gap 1 is the difference between customer expectations of service and company particularly management, understanding of those expectations. A number of factors have been shown to be responsible for gap 1. First, because marketing research is a key vehicle for understanding consumer expectations and perception of service, the size of gap 1 depends greatly on the amount of marketing research conducted. A second factor is lack of upward communication. Frontline employees often know a great deal about customers but management may not be in contact with frontline employees and may not understand what they know. A third factor is a lack of company strategies to retain customers and strengthen relationships with them. A finally, inadequate attention to service recovery - understanding why people complain and what they expect when they complain and how to develop effective strategies for dealing with inevitable service failures.

Gap 2: Not Selecting the Right Service Design and Standards - a recurring challenge in service companies is the difficulty of translating customers' expectations into service quality specifications. Thus, provider gap 2 reflects the difference between company understanding of customer expectations and development of customer-driven service designs and standards. A number of factors have been shown to be responsible for gap 2. First of all, inadequate commitment to service quality; secondly a perception of unfeasibility, and finally, inadequate task standardization and an absence of goal setting.

Gap 3: Not Delivering to Service Standards - is the difference between development of customer-driven service standards and actual service performance by company employees. Even when guidelines exist for performing services well and treating customers correctly, high quality service performance is not a certainty. Standard must be backed by appropriate resources (people, systems and technology) and also must be enforced to be effective - that is, employees must be measured and compensated on the basis of performance along those standards. Thus, even when standards accurately reflect customers' expectations, if the company fails to provide support for them - standards do not good. Factors influencing gap 3 are: poor employee-job fit and poor technology fit, inappropriate supervisory control systems, lack of teamwork and perceived control.

Gap 4: Not Matching Performance to Promises - advertising, sales force and other communications set the standard against which customers assess a company's service quality. Ensuring that all the company's external messages are aligned with what the company delivers is more difficult in service because what is delivered critically depends on employees' interactions with customers. This is also a result of inadequate horizontal communication and propensity to over-promise.

Gap 5: Not Delivering the Service (perception) as being perceived - this is the only gap that can be examined solely on the data from the customer; study of other gaps, while important, would require data collection from companies themselves.

Recognition of factors, which influence customer's expectations, will help the suppliers applying appropriate procedures to modify customer's expectations and to provide customers with the service expected (Rahaman, Abdullah & Rahman, 2011)

Zeithaml & Parasuraman mentioned 4 factors in shaping customers' expectations:

Word-of Month: the first factor that potentially determine customers expectations, is the word he or she heard from other costumers;

Personal needs: the second factor that to a certain extent modifies customers expectations is obtained as a result of a particular situations and requirements;

Prior experience: is the third factor influencing customers expectations, which indicate the way the customers has experience prior service received;

Advertisement and Personal experience: the fourth factor playing a key role in shaping customers expectations is called external customers. These communications contain all direct and indirect messages sent from supplying organization to customers.

One of the most important factors which of course belong to supplier's external communication collection is service cost of price. This factor plays a significant role in shaping customer's expectations and especially those of organization future customers.

Advantages and Disadvantages of SERVQUAL

Advantages

In current service literature, there are a number of key instruments available for measuring service quality. Through, the SERVQUAL model has been the major generic model used to measure and manage service quality across different service settings and various cultural backgrounds and is valued by academics and practitioners. Below are some of the main advantages and or reasons to use the SERVQUAL model to measure the level of customer satisfaction with an organization.

It can be used on a regular basis to track customer perceptions of service quality of a particular firm compared to its competitors. Once data have been analyzed they can be visually presented so that it is easy to identify strengths and weaknesses relative to competition.

It provides the opportunity for a firm to assess its service quality performance on the basis of each dimension individually as well as the overall dimensions;

It allow the firm to classify its customers into different segments based on their individual SERVQUAL scores;

SERVQUAL model can be used in various service setting/sectors and provides a basic skeleton that can be adapted to fit the specific attributes of a particular organization. It is applicable across different empirical context and various countries and cultural backgrounds

SERVQUAL gap analysis approach seems a logical and straightforward concept and the questionnaire is also pre-described and can be adapted as required;

Finally, SERVQUAL is a tried and tested instrument which can be used comparatively for benchmarking purposes. It benefit from being a statistically valid instrument as a result of extensive field testing and refinement (Al Bassam & Al Shawi, 2010).

To appreciate more fully all the benefits of using SERVQUAL surveys should be conducted every year, for the following reasons;

To allow yearly comparison;

To determine how service improvements have affected customers' perceptions and expectations of the service over time and;

To determine the effectiveness of service development and improvement initiatives in targeted dimensions.

Implementing SERVQUAL and measuring customer perception and expectation of service may well result in customer retention, customer loyalty and positive word-of-mouth, increasing opportunity for cross-selling, employee benefits, improved corporate image, profit gains and financial performance. But measuring too often may well result in customers losing their motivation to answer correctly (Shadin, 2006).

Disadvantages

However, apart from its wide use, a number of theoretical and operational criticisms of the measurement model have been pointed out

Theoretical:

First of all Validity, the validity of the SERVQUAL model as a generic instrument for measuring service quality across different service sector has been raised. And that a simple revision of the SERVQUAL items is not enough for measuring service quality across different service settings;

Secondly Gaps Model, there is little evidence that customers access service quality in terms of Perception (P) minus Expectation (E) gaps. This because they found that the dominant contributor to the gap score was the perception score because of a generalized response tendency to rate expectations high ;

Process Orientation, SERVQUAL is process oriented it focus on the process of service delivery, not on the outcomes of the service encounter [2] , while process and outcome together is a better predictor of consumers choice than process or outcome alone;

In the fourth place Dimensionality, SERVQUAL five dimensions are not universal. Items do not always load on to the factors which one would a priori expect; and there is a high degree of inter correlation between the five dimensions. Meaning that the researcher should have work with the original ten dimensions rather than adopt the revised five;

Finally Model Objections, SERVQUAL is based on an expectation model rather than an attitudinal model besides SERVQUAL fails to draw on establishing economic and psychological theory (fail to draw on the large literature on the psychology of perception).

Operational:

First of all Expectations, The term expectation is polysemic [3] ; consumers use standards other than expectations to evaluate service quality;

Secondly Item Composition, SERVQUAL 4 of 5 items cannot capture the variability or the specific context meaning within each service quality dimension, even though authors acknowledge that context specific items can be used to supplement SERVQUAL, but the "new" item should be similar in form to the existing SERVQUAL item;

In the third place Moment Of Truth (MOT), customer's assessment of service quality may vary from MOT to MOT. Services are delivered over several MOT or Encounter between service staff and customers. And evidence shows that customers evaluate service quality by reference to these multiple encounters;

Polarity, The reversed polarization (rewording) of items in the scale causes respondent error. Of the 22 items of the SERVQUAL questionnaire, 13 statements pairs are positively worded and nine pairs are negatively worded. The negative are the full set of responsiveness and empathy statements. Item wording creates data quality problems and calls into questions the validity of the instrument

Scale Point: the seven -point Likert scale is flawed. The Likert scale has been criticized on several grounds, although none are specific to SERVQUAL, but has an indirect influence. It has been criticized for its lack of verbal labeling for points two to six. This will cause respondents to overuse the extreme ends of the scale;

Two administration, two administration of the instrument causes repetitiveness and confusion. Respondents appear to be confused by the two administration of the E and the P versions of the SERVQUAL, which will result in imperil data quality. Besides the timing of the administrations, asking respondents to complete the two questionnaires at the single sitting (Buttle, 2006).

2.3. SERVQUAL Independent Variables

As already indicated in paragraph 2-1 the SERVQUAL model is constructed based on its initial 10 dimensions (Reliability, Responsiveness, Competence, Access, Courtesy, Communication, Credibility, Security, Understanding/Knowing the customer, and Tangibles)

Reliability: the ability of an organization to accurately achieve in the proper time and according to the promises tit has made to its clients;

Responsiveness: the tendency and willingness of services providers to help clinets and satisfy their needs, immediately reply to their inquiries and solve their problems as quickly as possible;

Competence: having adequate skills and knowledge that enable the employees to perform their jobs properly

Accessibility: providing easy access to a service in term of location and through services provided via the telephone, the internet or any other means of communication;

Courtesy: treating clients respectfully in a polite friendly manner, understanding their feelings and answering their phone calls gently;

Communication: this occurs through gentlemanly listening to the client conveying information to them clearly and facilitating external communication with workers;

Credibility: this can be achieved through full trust and confidence in the service provider as well as his honesty and straight forwardness;

Security: this depends on whether the service is free from risks and hazards, defects or doubts so that it provides bodily safety, financial security as well as privacy;

Understanding/knowing the customer: this can be made achievable through the ability to pinpoint the customers' needs as well as understanding their individual problems;

Tangibility: this includes physical aspects connected with service such as instruments and equipment, persons, physical facilities like buildings and nice decoration and other observable service facilities (Mohammad & Alhamadani, 2011).

Later these 10 dimensions were merged into five dimensions namely Reliability, Assurance, Tangibles, Empathy and Responsiveness (see figure 2-3 below).

Figure 2-3: 5 dimensions of SERVQUAL

Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials. It translate to CSS appearance and conditions of the building interior, (furniture's, equipment) and exterior, uniform of the staff (patrol officers and guards and centralists) companies signs and advertisements' materials;

Reliability: Ability to perform the promised service dependably and accurately or delivering on its promises. This dimension is critical as all customers want to deal with firms that keep their promises and this is generally implicitly communication to the firms' customers. For the security industry reliability is interpreted as delivering safety and security immediately as this is required;

Responsiveness: Willingness to help customers and provide prompt service. This dimension is concerned with dealing with the customers' requests, questions and complains promptly and attentively. A firm is consider to be responsive when it communicates to its customers how long it would take to get answers or have their problems dealt with. To be successful companies need to look at responsiveness from the point of view of the customer rather than the company's perspectives;

Assurance: (including competence, courtesy, credibility and security). Knowledge and courtesy of employees and their ability to inspire trust and confidence (combines original dimensions of competence, courtesy, credibility, and security). Assurance may not be so important relative to other industries where the risk is higher and the outcome of using the service is uncertain (think about for example the medical and healthcare industry);

Empathy: (including access, communication, understanding the customer). Caring, individualized attention the firm provides its customers (Combines original dimensions of access, communication, and understanding the customer). Customers should be treated as they are unique and special. There are several ways that empathy can be provided: knowing the customer's name, his preferences and needs. Many small firms use this ability to provide customized services as a competitive advantage over large firms. This dimension is more suitable in industries where building relationships with customers ensures the firm's survival. Empathy in security context could mean showing concern in times of service failure and providing service recovery of providing adjustable/suitable (customer specific) services.

And as can be seen in figure 2-4 below, these 5 dimensions influence the quality of service, but also the service delivery process which consequently influence the level of customer satisfaction. These 5 variables are the independent variables, while the quality of service, the service delivery process and the level of customer satisfaction are the dependent ones.

Figure 2-4: SERVQUAL Total Relationship of Variables

2.4. SERVQUAL Dependent Variables

Service Quality

Quality is such an important issue that it is a really significant concept in our real life. Quality comes from the Latin word 'Qualitas' which refers to the nature of a person or the nature of an object. It is regarded as a strategic organizational weapon. And the pressing need of developing service organizations and upgrading their services necessitates the measuring of service quality. Service Quality is an approach to manage business in order to ensure full satisfaction of the customers which will help to increase competiveness and effectiveness of the industry. Quality in service is very important especially for the growth and development of service sector business enterprise, resulting into customer satisfaction (Rahaman, Abdullah & Rahman, 2011). With the increase of the importance of service sector in the economy worldwide including Curacao which primary source of income is the service sector, the measurement of service quality becomes more important. Different strategies are formulated to retain the customer and the key of it is to increase the service quality level. Parasuraman and Zeithaml noted that that the key strategy for the success and survival of any business institution is the deliverance of quality services to customers. The quality of service offered will determine customer's satisfaction and attitudinal loyalty. Company's competiveness in this post-liberalized era is determined by the way it delivers service. But service quality is a concept that has risen based on the abovementioned considerable interest and debate because of the difficulties in both defining it and measuring it. Firms with high service quality pose a challenge to other firms. Again service quality considered as the difference between customers expectations of service and perceived service. If expectations are greater than performance, then perceived quality is less than satisfactory and hence customer's dissatisfaction occurs (Rahaman, Abdullah & Rahman, 2011).

Service Delivery Process

Each and every company who strives to achieve a higher level of customer satisfaction introduces a service delivery process in order to verify if the service is delivered according to those descriptions, this can also be seen on figure 2-4. Thus, any study of the efficiency of service organizations must focus on the role of process design and performance. CSS has also such service delivery procedures and guidelines "alarm-opvolging" procedure. The design and implementation of service delivery processes plays a key role in the overall competitiveness of modern organizations provide clear evidence that process capability and execution are major drivers of performance due to their impact on customer satisfaction and service quality. Traditional efficiency studies measure the performance of a firm by its ability to transform inputs into outputs. However, the actual way in which these inputs are transformed to outputs is often overlooked. That is, each firm's operation is conceptualized as a black box: inputs go in and outputs come out; and little analytical attention is paid to the inner workings of the transformation process. Researches argue that the actual design of the transformation process is a critical component in the performance of a firm. The service delivery process should describe how process capabilities and people impact business performance. Their work provides the framework from which we are able to talk about how much inefficiency in process performance is due to the wrong design and how much is due to poor performance. Further the design of the transformation mechanism, or the process design, must be fully studied and integrated into performance analysis in order to provide useful managerial recommendations and achieve a higher level of satisfaction (Frei & Harker, 2008).

Customer Satisfaction

Satisfaction became a popular topic in marketing during the 1980s and is a debate topic during both business expansions and recessions. Most discussions on customer satisfaction involve customer expectations of the service delivery, actual delivery of the customer experience. But also in this intense competition, the key to sustainable competitive advantages lies in delivering high quality of service that will also turn in customer satisfaction (Mohammad & Alhamadani, 2011). Mixed findings exist regarding the casual direction between service quality and satisfaction. Does customer satisfaction lead to service quality or vise verse. Recent studies have characterized service quality perceptions as an outcome of satisfaction. Customers can evaluate a service (be satisfied or dissatisfied) only after they perceive it. Many authors who studied the relationship between these two variables have shown that service quality determines customer satisfaction (Culiberg & Rojšek, 2010).So can be concluded and what can also be seen in figure 2-4, Service Quality and Service Delivery process both influence the extent of customer satisfaction. Firms that provide superior quality of service have a more satisfied customer base. But also authors report that continuous improvement of service operations in which the actual services experience is assessed (Mohammad & Alhamadani, 2011).

2.5. Conclusion

Based on the information indicated in this chapter can be concluded that Customer demand and preferences of different products and services is a subject of concern for many business areas including the security service industries. However customers' preferences and choices are not similar from one customer to another. These differences make it hard for the security service industries as for other businesses to meet diverse demands. Thus, the knowledge of customers' preferences and their choices of products and/or services provided by the companies is one of the most significant characteristic for meeting customers' demands. Based on the Parasuraman, Zeithaml & Berry the SERVQUAL model, customers access service quality along 5 dimensions: Assurance, Empathy, Reliability, Responsiveness and Tangibles. SERVQUAL is the dominant approach to quantitatively assessing service quality, using a survey approach. And based on customers rating (from a scale of 1 to 5) of expectations and perceptions on these 5 dimensions, companies can calculate the extent of satisfaction of the customers with the services provided. Service quality can be also described as "closing the gap" between expectations and perceptions of service This gaps include; Gap 1: Not Knowing What Customers Expect, Gap 2: Not Selecting the Right Service Design and Standards, Gap 3: Not Delivering to Service Standards, Gap 4: Not Matching Performance to Promises, Gap 5: Not delivering the service as being perceived.

But al models have their advantages and disadvantages including the SERVQUAL model. Among others SEVQUAL offers the following benefits, it can be used on regular basis, it allow firms to classify its customers into different segments, access companies service quality on basis each dimension individually, it can be used in different service sectors and it provide a basic skeleton in order to be adapted for a particular organization., it can be used for various countries and cultural backgrounds, it's a logical and straightforward concept and the questionnaire is pre-described but also it's a tested instrument which can be used for benchmarking purposes

Some criticisms have also been send in the direction of the model which are divided in theoretical and operational ones.

Furthermore can be concluded that the SERVQUAL model consist of dependent and independent variable. SERVQUAL independent variables are Tangibility, Assurance, Empathy, Reliability and Responsiveness. These 5 dimensions influence the quality of service, but also the service delivery process which consequently influence the level of customer satisfaction. These 5 variables are the independent variables, while the quality of service, the service delivery process and the level of customer satisfaction are the dependent ones and are influences by the level/extent of these 5 dimensions related to the organization.

Chapter 3: Methodology

3.1. Introduction

In this chapter analyses information regarding the procedures used, including the type of methodology and the sample design, besides the chapter will consist of information regarding the participants including the population chosen, the sample unit and sample size; followed by the instruments used to conduct the surveys including the questionnaire used and the research validity and representativeness; finalizing with a conclusion.

In thousands of organizations, research is an important managerial tool that exerts a major influence on decision making process. Research can provide insights into and solutions for organizational; problems. Survey findings can be directly translated into business strategy. Business research covers a wide range of phenomena and may be the principal tool for answering management questions. There are four basic research methods, the objectives of the research methods, the available data sources, the urgency of the decision and the cost of obtaining the data will determine which method is chosen.

3.2. Procedure

In order to conduct a research certain steps and procedures must be carried out. One of these steps is among others, to choose what type of research method will be used. It's very helpful to distinguish between qualitative and qualitative research. The qualitative/qualitative distinction will employ a great deal because it represents a useful means of clarifying different methods of business research and because it's a helpful umbrella for a range of issues concerned with the practice of research (Bryman & Bell, 2007).

Qualitative research

The focus of qualitative research is not on numbers but on words and observations: stories, visual portrayals, meaningful characterizations, interpretations and other expressive descriptions. Any source of information may be informally investigated to clarify which qualities or characteristics are associated with an object, situation or issue (Zikmund, 2003).

Quantitative research

Quantitative research is to determine the quantity or extent of some phenomenon in the form of numbers. It can be construed as a research strategy that emphasizes quantification in the collection and analyses of data. Quantitative research is frequently referred to as hypothesis-testing research (Bryman & Bell, 2007).

For the purpose of this research and in order to investigate possible and plausible solutions for the problems that could result from not complying with customer satisfaction based on the 5 dimensions of the SERVQUAL; we will use Quantitative research which:

Entails a deductive approach to the relationship between theory and research, in which the accent is placed on the testing of theories;

Has incorporated the practices and norms of the natural scientific model and of positivism in particular

It's an objective approach that assumes to be a static realty in hopes of developing universal laws (Bryman & Bell, 2007).

The study begins with statements of theory from which research hypotheses are derived. Then an experimental design is established in which the variables in question (the dependent variables: quality of service, the service delivery process and the level of customer satisfaction) are measured while controlling for the effects of selected independent variables (tangibility, assurance, empathy, reliability and responsiveness)

The basic idea of sampling is that by selecting some of the elements in a population, researches may draw conclusions about the entire population. Selection of the sampling design to use in a study depends on a number of related theoretical and practical issues. These include considering the nature of the study, the objectives of the study, accuracy of the result, the time and speed of data collection, budget available and availability of population selection. Sampling method can be divided into two categories probability and non-probability (Bryman & Bell, 2007).

There are two basic sampling techniques: probability sampling and non-probability sampling. A probability sampling is defined as a sample in which every member of the population has a known, nonzero probability of selection; while non-probability sampling is if sample units are selected on the basis of personal judgment (Zikmund, 2003).

For this research probability sampling is chosen, but according to Zikmund there are different probability sampling techniques. Among others is the simple random sampling method; which consists of systematic sampling and stratified sampling and cluster sampling. For this research Systematic simple random sampling will be used, which is a sampling procedures that assures that each element in the population has an equal chance of being included in the sample and where the initial starting point is selected by a random process and then every nth number of the list is selected.

This method is chosen because:

First of all it's the most applicable method based on the fact that we will be provided with the list of customers (households and organizations) of CSS and from this list the sample will be taken after every 25th name;

Secondly because the probability sampling process is random the bias inherent in the non-probability sampling procedures is eliminated;

Thirdly it's a very simple method and can be done very fast and manually and it allow to add a degree of system/process into the random selection;

Fourth it's cost effectively

.And it allows to spread the sample more evenly over the population.

3.3. Participants

Population

Once the decision of which sampling method to use, the next question related to the sample concerns identifying the population [4] .The population of CSS are all the customers (clients) registered at CSS (no distinction will be made between man and woman, age or neighborhood) including household and business (which are approximately 1300 households and 1200 business) for a total of 2500 clients who represents CSS research population up to the date the sample was taken.

Sample

The sample will be drawn from the list of clients of CSS provided by Mr. Evertsz (including households and business) this will be done by using the systematic simple random sampling method. I hereby select after every 25th client one sample clients for a grand total sample size of 100 clients.

Based on the fact that not all customers will be interviewed there will be some errors because of chance variation in the scientific selection, meaning that the calculation of the sample error [5] is needed to stipulate how big the difference of the sample (in percentage) is towards the population. It is calculated by the following formula:

Where N is the total population which is this case is 2500, n is the sample size which is 100 and the p is 0.5 for the maximum margin of error and 1.96 for a 95% confidence level.

The sample error is

The sample error = (√0.5 (1-0.5)/100) * 1.96 = 0.098

= 0.098 * (√2500 - 100/2500 - 1)

= ≈ 5%

Another type of error that must be also mentioned for the sake of the research even though it's not being calculated but can influence the results is the Systematic (non-sampling) error. Systematic error is the error resulting from some imperfect aspect of the research design that causes response error or from a mistake in the execution of the research; error that comes from such sources as sample bias, mistakes in recording responses and non-responses from persons who were not contacted or who refused to participate. This error causes the result to be skewed in the same direction every time. Systematic errors are very difficult to deal with, because their effects are only observable if they can be removed and there is no method for specific method for identifying or discovering them. What can be done to minimize and/or exclude this error is to carefully calibrating [6] of the apparatus and by using of the best possible measurement techniques.

Sample unit

As mentioned above, the sample with be taken from the total/complete list of CSS customers, meaning that the sample unit is the same as the element; this based on the fact that the sample unit is a single element or group of elements subject to selection in the sample (Zikmund, 2003). For this research there will be no specific element of group of elements used for selection. The selection of the sample will be done as indicated previously based on the systematic simple random sampling method were after every 25th name a sample/customer will be chosen from the total list of customers.

3.4. Instruments

The instrument/model used to research the main problem is the SERVQUAL model; consisting of 21 standard questions. The questions (service attributes) are grouped into five theoretical dimensions (assurance, empathy, reliability, responsiveness and tangibles) each one sub-divided in different statements (3 up to 4).

As indicated each attribute is cast in the form of a statement with which CSS customers will be asked to express their degree of satisfaction or dissatisfaction on a five-point scale. In the expectations part the customer should indicate if CSS should posses the feature described by each statement. If they feel a feature is not at all important for an excellent service they should mark number 1. If they feel it is absolutely important they should mark number 5. If their feeling is less strong they should mark one of the numbers in the middle. In the perception part the customer should indicate the extent to which they are satisfied with the feature described with the statement. Once again they should mark 1, if they are strongly disagree and mark 5 if they are you strongly agree. If their feelings are less strong they should mark one of the numbers in the middle.

The maximum SERVQUAL score possible is five, indicating high positive service quality. The minimum is minus five indicating high negative service quality and zero as the midpoint were the perceptions equal the expectations (this division in introduced for analytical purposes, see table 3-1 below).

Table 3-1: SERVQUAL Scores division

SERVQUAL Score

Description

> 4 SERVQUAL < 5

High positive service quality

> 2 SERVQUAL < 4

Moderate positive service quality

> 0 SERVQUAL < 2

Low positive service quality

= SERVQUAL 0

Neutral service quality

< 0 SERVQUAL < - 2

Low negative service quality

< -2 SERVQUAL > - 4

Moderate negative service quality

< -4 SERVQUAL > - 5