Impact of Corporate Image, Service Quality, Trust, and Perceived Value on Chinese Customer Satisfaction and Loyalty: Medical Services in Thailand
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Published:
Sep 19, 2019
Keywords:
Corporate image, service quality, perceived value, trust, customer satisfaction, customer loyalty
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Abstract
Thailand is committed to becoming the Center of Excellent Health of Asia. About two million foreign patients come to Thailand for medical services each year. With the explosive growth of Chinese tourists including Chinese patients, this study aimed to explore the factors that influence the satisfaction and loyalty of Chinese-speaking patients in the medical service industry. The study extended previous work by investigating Chinese-speaking patients served by a medical institution in Thailand. Specifically, the influence of five dimensions of Service Quality were examined, namely, corporate image, perceived value, and trust on customer satisfaction and customer loyalty. Structural equation model analysis was used to investigate the responses from 406 Chinese-speaking patients using Thai medical services. The finding revealed that medical institution image had a significant positive effect on five dimensions of Service Quality. Some dimensions of Service Quality also had positive effects on perceived value, trust, and customer satisfaction. Trust and perceived value had significant positive effects on customer satisfaction. Customer satisfaction had a significant positive effect on customer loyalty. The results give insights into how improvements might be made to corporate image, personnel training on service quality, and service customization.
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Research Articles
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References
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Parasuraman, A. (1997). Reflections on gaining competitive advantage through customer value. Journal of theAcademy of Marketing Science, 25(2), 154–161.
Parasuraman, A., Zeithaml, V., & Berry, L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.
Pakdil, F., & Harwood, T. (2005). Patient satisfaction in a preoperative assessment clinic: An analysis using SERVQUAL dimensions. Total Quality Management & Business Excellence, 16(1), 15–30.
Reichheld, F. (1993). Loyalty-based management. Harvard Business Review, 71(2), 64–73.
Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in customer satisfaction and loyalty judgments. Journal of the Academy of Marketing Science, 28(1), 150–167.
Tarn, J. (1999). The effects of service quality, perceived value and customer satisfaction on behavioral intentions. Journal of Hospitality & Leisure Marketing, 6(4), 31–43.
Vinagre, M., & Neves, J. (2008). The influence of service quality and patients’ emotions on satisfaction. International Journal of Health Care Quality Assurance, 21(1), 87–103.
Woodruff, R., & Gardia, S. (1996). Know your customer: New approaches to customer value and satisfaction. Cambridge, MA: Blackwell Business.
Wu, C. (2011). The impact of hospital brand image on service quality, patient satisfaction and loyalty. African Journal of Business Management, 5(12), 4873–4882.
Yamagishi, T., & Yamagishi, M. (1994). Trust and commitment in the United States and Japan. Motivation and Emotion, 18(2), 129–166.
Zeithaml, V. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2–22.
Zeithaml, V., Bitner, M., & Gremler, D. (2006). Services marketing: Integrating customer focus across the firm. Boston, MA: McGraw-Hill/Irwin.
Aaker, D., & Jacobson, R. (1994). The financial information content of perceived quality. Journal of Marketing Research, 31(2), 191–201.
Anderson, E., & Weitz, B. (1989). Determinants of continuity in conventional industrial channel dyads. Marketing Science, 8(4), 310–323.
Alrubaiee, L., & Alkaa’ida, F. (2011). The mediating effect of patient satisfaction in the patients’ perceptions of healthcare quality – patient trust relationship. International Journal of Marketing Studies, 3(1), 103–127.
Alrubaiee, L., & Al-Nazer N. (2010). Investigate the impact of relationship marketing orientation on customer loyalty: The customer's perspective reference. International Journal of Marketing Studies, 2(1), 155–174.
Andreassen, T., & Lindestad, B. (1998). Customer loyalty and complex services: The impact of corporate image on quality, customer satisfaction and loyalty for customers with varying degrees of service expertise. International Journal of Service Industry Management, 9(1), 7–23.
Athanassopoulos, A. (2000). Customer satisfaction cues to support market segmentation and explain switching behaviour. Journal of Business Research, 47(3), 191–207.
Beerli, A., Martin J., & Quintana, A. (2004). A model of customer loyalty in retail banking Market. European Journal of Marketing, 38(1/2), 253–275.
Brady, M., & Robertson, C. (2001). Searching for a consensus on the antecedent role of service quality and satisfaction: An exploratory cross-national study. Journal of Business Research, 51(1), 53–60.
Bitner, M. (1991). The evolution of the services marketing mix and its relationship to service quality, In G. Brown, E.,
Gummesson, B., Edvardsson, & B., Gustavsson, Service Quality: A Multidisciplinary & Multinational Perspective, Lexington Books, New York, NY, 23–37.
Bloemer, J., & de Ruyter, K. (1998). On the relationship between store image, store satisfaction and store loyalty. European Journal of Marketing, 32(5/6), 499–513.
Bolton, R., & Drew, J. (1991). A multistage model of customers’ assessment of service quality and value. Journal of Consumer Research, 17(4), 375–384.
Caruana, A. (2002). Service loyalty: The effects of service quality and the mediating role of customer satisfaction. European Journal of Marketing, 36(7/8), 811–828.
Chen, P., & Hu, H. (2010). How determinant attributes of service quality influence customer-perceived value: An empirical investigation of the Australian coffee outlet industry. International Journal of Contemporary Hospitality Management, 22(4), 535–551.
Chiou, J., & Droge, C. (2006). Service quality, trust, specific asset investment, and expertise: Direct and indirect effects in a satisfaction-loyalty framework. Journal of the Academy of Marketing Science, 34(4), 613–627.
Cho, J., & Hu, H. (2009). The effect of service quality on trust and commitment varying across generations. International Journal of Consumer Studies, 33(4), 468–476.
Cronin, J., Brady, M., & Hult, G. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of Retailing, 76(2), 193–218.
Darden, W., & Schwinghammer, J. (1985). The influence of social characteristics on service quality in patronage choice behavior. In J. Jacoby, J. Olson (Eds.). Service quality: How consumers view stores and merchandise. Lexington: Lexington Books.
Dick, A., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99–113.
Dodds, W. (1985). An experimental investigation of the effects of price, brand and store information on the subjective evaluation of products (perception, name, quality) (Unpublished doctoral dissertation). Virginia Polytechnic Institute and State University.
Fornell, C., Johnson, M., Anderson, E., Cha, J., & Bryant, B. (1996). The American customer satisfaction index: Nature, purpose, and findings. Journal of Marketing, 60(4), 7–18.
Entwistle, V., & Quick, O. (2006). Trust in the context of patient safety problems. Journal of Health Organization and Management, 20(5), 397–416.
Hair, J., Ringle, C., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152.
Hair, J., Anderson, R., Tatham, R., & Black, W. (1998). Multivariate data analysis. Prentice Hall New Jersey.
Hoyle, R. (1995). The structural equation modeling approach: Basic concepts and fundamental issues. In R. H. Hoyle (Ed.), Structural equation modeling: Concepts, issues, and applications (pp. 1–15). Thousand Oaks, CA, US: Sage Publications, Inc.
Kane, R., Maciejewski, M., & Finch, M. (1997). The relationship of patient satisfaction with care and clinical outcomes. Medical Care, 35(7), 714-730.
Keller, K. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1–22.
Kotler, P., & Keller, K. (2006). Marketing management (12th ed.). NJ: Prentice Hall.
Kotler, P., & Clarke, R. (1987). Marketing for health care organizations. NJ: Prentice Hall.
Kotler, P., & Bloom, P. (1984). Marketing professional services. Englewood Cliffs, NJ: Prentice-Hall.
Kramer, R. (1999). Trust and distrust in organizations: Emerging perspectives, enduring questions. Annual Review of Psychology, 50, 569–598.
KResearch. (2018). Private hospital business, 2018: Opportunities to tap into Chinese medical Tourists (Current Issue No. 2912). Retrieved from https://kasikornresearch.com/en/analysis/k-econ/business/Pages/ z2912.aspx
Ladhari, R. (2009). A review of twenty years of SERVQUAL research. International Journal of Quality and Service Sciences, 1(2), 172–198.
Martenson, R. (2007). Corporate brand image, satisfaction and store loyalty: A study of the store as a brand, store brands and manufacturer brands. International Journal of Retail & Distribution Management, 35(7), 544-555. Retrieved from https://doi.org/10.1108/09590550710755921
Naidu, A. (2009). Factors affecting patient satisfaction and healthcare quality. International Journal of Health Care Quality Assurance, 22(4), 366–381.
Parasuraman, A. (1997). Reflections on gaining competitive advantage through customer value. Journal of theAcademy of Marketing Science, 25(2), 154–161.
Parasuraman, A., Zeithaml, V., & Berry, L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.
Pakdil, F., & Harwood, T. (2005). Patient satisfaction in a preoperative assessment clinic: An analysis using SERVQUAL dimensions. Total Quality Management & Business Excellence, 16(1), 15–30.
Reichheld, F. (1993). Loyalty-based management. Harvard Business Review, 71(2), 64–73.
Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in customer satisfaction and loyalty judgments. Journal of the Academy of Marketing Science, 28(1), 150–167.
Tarn, J. (1999). The effects of service quality, perceived value and customer satisfaction on behavioral intentions. Journal of Hospitality & Leisure Marketing, 6(4), 31–43.
Vinagre, M., & Neves, J. (2008). The influence of service quality and patients’ emotions on satisfaction. International Journal of Health Care Quality Assurance, 21(1), 87–103.
Woodruff, R., & Gardia, S. (1996). Know your customer: New approaches to customer value and satisfaction. Cambridge, MA: Blackwell Business.
Wu, C. (2011). The impact of hospital brand image on service quality, patient satisfaction and loyalty. African Journal of Business Management, 5(12), 4873–4882.
Yamagishi, T., & Yamagishi, M. (1994). Trust and commitment in the United States and Japan. Motivation and Emotion, 18(2), 129–166.
Zeithaml, V. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2–22.
Zeithaml, V., Bitner, M., & Gremler, D. (2006). Services marketing: Integrating customer focus across the firm. Boston, MA: McGraw-Hill/Irwin.