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Chapter 1 Introduction

1.5 Purpose and Significance of the Study

Services lie at the hub of economic activity in any society. Service activities are crucial for the economy to function and to enhance the quality of life and can range from a banking industry that transfers funds, a transportation industry that moves food products to areas that cannot produce them, and personal services such as restaurants, lodging, cleaning, and child care. Government services play a critical role in providing a stable environment for investment and economic growth. Services such as education, health care, roads, safe drinking water, and public safety are necessary for any nation’s economy to survive and people to prosper (Fitzsimmons & Fitzsimmons 2004).

It is imperative to recognise that services are not peripheral activities but integral parts of society, central to a functioning and healthy economy. The service sector not only facilitates but also makes possible the goods-producing activities of the

manufacturing sectors. Services are a crucial force in today’s change towards a global economy.

In today’s competitive higher education environment, students are faced with unprecedented challenges. This is most obviously seen in increases in university tuition fees: in Australia in 2004 (The Age 2003, 5 December) and in Singapore from 2005 to 2006 (Teo 2006), again in 2008 (Singapore News 2008, 13 February; Hoe 2008); and to come in 2013 (AsiaOne News 2012, 9 February; The Star 2012, 12 February). The allocation of funds for educational development in Malaysia goes

against this trend but, as discussed earlier, does not include training and development of non-academic staff (Razak 2006).

Higher education institutions have become more concerned with the quality of education and services that they offer their students. This is because fee-paying students behave like other consumers and expect value for money, becoming more demanding of their experience as students and wanting their voice heard (Watson 2003). Moreover, high performance clearly improves an institution’s reputation and results in increased enrolments, regardless of fee costs (Shelley 2005).

Researchers (Gronroos 1983; Parasuraman, Zeithaml and Berry 1985, 1988; Teas 1993) have suggested that there is a need to understand how the quality of service is perceived by customers. This is because when the service provider understands how the services will be evaluated by the users, it will be possible to identify how to manage these evaluations and how to influence them in a desired direction (Gronroos 1983). Gronroos (1983) has developed two dimensions to address the quality of service as perceived by customers: technical quality (referring to the result of the service or the question of ‘what has been provided’) and functional quality (referring to the way the service has been delivered and relating to the question of ‘how the service has been provided’. However, Lagrosen (2001) argued that Gronroos’ criterial of the quality of service have an important value for conceptual

understandings of services, but may not be sufficient, as it is important to study quality in each specific situation. Therefore, Parasuraman, Zeithaml and Berry

(1985) have based on Gronroos’ research and further expanded on the concept of quality of service.

According to Parasuraman, Zeithaml and Berry’s (1988) study, the quality of service model indicates that customers’ perceptions of quality are influenced by a series of four distinct gaps occurring in organisations. The gaps on the side of marketer or service provider can impede delivery of services that customers perceive to be of high quality. This gap analysis approach became the foundation of Parasuraman, Zeithaml and Berry’s (1985, 1988) research into quality of service. Their studies in 1985 and 1988 revealed the key to ensuring a good quality of service is by meeting or exceeding what customers expect, which is identified by Gap 5 in the quality of service model. Parasuraman, Zeithaml and Berry (1988) further explained if the customer’s expectations are met, the quality of service is perceived to lead to satisfaction; if the customer’s expectations are not met, the customer is dissatisfied. When the customer’s expectations are exceed, the quality of service is perceived to be more than satisfactory.

To date, much of the published work on the quality of service in higher education has concentrated on effective course delivery mechanisms, and the quality of courses and teaching (Athiyaman 1997; Bourner 1998; Cheng & Tam 1997; McElwee & Redman 1993; Palihawadana 1996; Soutar & McNeil 1996; Yorke 1992; Varey 1993);

healthcare (Moullin 2002); or educational setting (Huang 2006; Nealon 2005). Very little research has been carried out or reported on non-academic staff; little of that with regard to services provided at Student Service Centres, and even less on the

services provided to business students. This study explores business students’

expectations and perceptions of the quality of service provided, and the discrepancies between them.

The following research questions have been identified for examination. The major research question for the study is:

What discrepancies can be discerned between students’ expectations and their perceptions in regard to the quality of service of university student advisors in Australia, Malaysia, and Singapore?

The minor research questions for this study are:

(1) Do individual cultural tendencies have a significant impact on students’ expectations and perceptions, and on the discrepancy/gap regarding the quality of services provided by university student advisors in Australia, Malaysia, and Singapore?

(2) Does students’ gender affect their service ratings of the quality of service provided by university student advisors in Australia, Malaysia, and Singapore?

1.5.2 Significance

The study is considered to be of significance for a number of reasons:

 It has the potential to improve the quality of service providers in universities by increasing understanding of needs in the marketing of university programs.

 It provides a deeper understanding of the pros and cons of students’ enrolment systems.

 It increases the body of knowledge of business students’ expectations and perceptions of service provided by their student advisors.

 More accurate data will be available to business academics in marketing, enrolment and teaching; non-academic marketing specialists in universities; and business student advisors of student enrolment and information.

 By analysing the discrepancies between business students’ expectations of service provided by student advisors and their perceptions, the research will enable business student advisors to directly manage identified deficiencies and areas of dissatisfaction, improving their overall service.

 Results can be used as a foundation on which to improve business student advisory services to build a long-term relationship between the university and its students.

 Over time the improvements implemented as a result of the findings of this research may contribute to a university’s state, national and international reputation.

1.6 Structure and Outline of Thesis