Performance-only measurement of service quality: a replication and extension

Journal of Business Research 55 (2002) 17 – 31

Performance-only measurement of service quality: a replication and extension Michael K. Bradya,*, J. Joseph Croninb, Richard R. Brandc a

Department of Marketing, The Carroll School of Management, Boston College, 140 Commonwealth Avenue, Chestnut Hill, MA 02467-3808, USA b Florida State University, Tallahassee, FL, USA c Office of Program Policy Analysis and Government Accountability, The Florida Legislature, USA

Abstract The research described in this study replicates and extends the Cronin and Taylor [Cronin JJ, Taylor SA. Measuring service quality: a reexamination and extension. J Mark 1992:55 – 68 (August).] study suggestion that service quality be measured using a performance-only index (SERVPERF) as opposed to the gap-based SERVQUAL scale. The intent of the research was to examine the ability of the performance-only measurement approach to capture the variance in consumers’ overall perceptions of service quality across three studies. For the first study, the original Cronin and Taylor data were obtained and a replication of their study was undertaken using a recursive form of their non-recursive model in an effort to avoid the abnormal parameter estimates they reported. The replication successfully duplicated their finding as to the superiority of the performance-only measurement of service quality. The second and third studies included new data in which different measures of the constructs examined in Cronin and Taylor were employed in order to enhance the validity of the findings. The results from these two studies lent strong support again for the superiority of the performance-only approach to the measurement of service quality. In addition, both the replication and the two new studies were used to extend Cronin and Taylor’s investigation of the service quality – consumer satisfaction relationship. The results of all three studies indicate that service quality is properly modeled as an antecedent of satisfaction. D 2001 Elsevier Science Inc. All rights reserved.

The single most researched area in services marketing to date is service quality. The interest in service quality parallels the focus on quality, total quality management, and satisfaction in business. (Fisk et al., 1993, p. 77)

The growth in, and corresponding importance of, the services sector in the US and the world is well-documented (Bateson, 1989; DeSarbo et al., 1994; Henkoff, 1994; Koepp, 1987; Shugan, 1994). Over 75% of all US jobs now reside in services industries (Shugan, 1994). Further, the services sector generates over 85% of all new jobs and 66% of the GNP of the US (DeSarbo et al., 1994; Gronroos, 1990; Koepp, 1987). Research on services marketing has grown correspondingly. In particular, academics and practitioners alike have exhibited considerable interest in the issues that surround the measurement of service quality and the conceptualization of the relationship between service quality and consumer satisfaction. The above quote

* Corresponding author. Tel.: +1-617-552-0425; fax: +1-617-5522097. E-mail address: [email protected] (M.K. Brady).

from Fisk et al. (1993) is indicative of the importance attributed to these issues. The conceptualization and measurement of the service quality construct has been dominated by the use of the SERVQUAL scale introduced by Parasuraman et al. (1988). Their measurement of service quality proposes a gap-based comparison of the expectations and performance perceptions of consumers. This measurement paradigm is similar to the disconfirmation model traditionally used to assess consumer satisfaction (see Cronin and Taylor, 1992, 1994; Parasuraman et al., 1994; Teas, 1993, 1994 for a discussion of these issues). Cronin and Taylor (1992) were the first to offer a theoretical justification for discarding the expectations portion of SERVQUAL in favor of just the performance measures included in the scale (i.e., what they termed SERVPERF). The term ‘‘performance-only measures’’ has thus come to refer to service quality measures that are based only on consumers’ perceptions of the performance of a service provider, as opposed to the difference (or gap) between the consumers’ performance perceptions and their performance expectations. In addition to their theoretical

0148-2963/02/$ – see front matter D 2001 Elsevier Science Inc. All rights reserved. PII: S 0 1 4 8 - 2 9 6 3 ( 0 0 ) 0 0 1 7 1 - 5

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argument, Cronin and Taylor (1992) report empirical evidence that the performance-only SERVPERF instrument outperforms the disconfirmation-based SERVQUAL scale across four industries (i.e., banks, pest control, dry cleaning, and fast food; see Cronin and Taylor, 1992). The use of performance-only measures is suggested by a number of authors including Babakus and Boller (1992), Boulding et al. (1993), Cronin and Taylor (1992), Gotlieb et al. (1994), Hartline and Ferrell 1996, Parasuraman et al. (1994), and Zeithaml et al. (1996). However, in spite of the evidence presented in Cronin and Taylor (1992) and similar studies (e.g., Babakus and Boller, 1992; Brown et al., 1993; McAlexander et al., 1994; McDougall and Levesque, 1994), it is still common to see the SERVQUAL scale used by service organizations (see Davis, 1994; McCormack, 1994) and identified as the appropriate service quality measurement tool in marketing textbooks (e.g., Boone and Kurtz, 1995; Lamb et al., 1995; Pride and Ferrell, 1996; Zeithaml and Bitner, 1996) and journal articles (e.g., Akan, 1995; Chaston, 1995; Chebat et al., 1996; Donnelly et al., 1995; Furrer et al., 2000; Kettinger and Lee, 1994; McAtarsney, 1999; McDaniel and Louargand, 1994; Mehta and Durvasula 1998; Pitt et al., 1997; Witt and Stewart, 1996; Young et al., 1994). This use of the SERVQUAL scale in the literature suggests that a consensus has not been reached relative to the superiority of performance-only measures of service quality. Thus, Cronin and Taylor’s (1992) results, while cited often, do not fully resolve the question as to how the service quality construct should be conceptualized and measured. One potential explanation for the continued use of the SERVQUAL measure is that the Cronin and Taylor (1992) study has not been replicated. The need for the replication of their study is accentuated by the fact that their empirical results may be subject to some conjecture due to the abnormal squared multiple correlations (SMC) reported in their results for the satisfaction construct. Specifically, Cronin and Taylor (1992) reported SMCs of
2.298 (banking),
1.886 (pest control), and
7.799 (dry cleaning) for satisfaction; values that are outside of the plausible range for this statistic (Hayduk, 1996; Mueller, 1996; Schumacker and Lomax, 1996; Stevens, 1996). In sum, the replication of the Cronin and Taylor (1992) study is well justified on the basis of the continued use of the gap-based SERVQUAL scale to measure service quality and the questions inherent in the abnormal results (i.e., the SMCs that are negative and greater than one). The overall goal of the current study is to contribute a measure of clarity to the research concerning the service quality and satisfaction constructs. The specific objectives of the research are: (1) to add further support to the identification of performance-based measures as the dominant exemplar relative to the measurement of service quality, (2) to clarify the nature of the relationship between service quality and satisfaction as discussed in Cronin and Taylor (1992), and (3) to extend the Cronin and Taylor

(1992) research with regard to the effects of service quality and satisfaction on consumers’ purchase intentions. In satisfying these objectives, the research presented makes a number of notable contributions to the literature. First, the replication of Cronin and Taylor’s (1992) study indicates that the abnormal SMCs are not problematic and reinforces the efficacy of the performance-only approach to service quality measurement. Second, the studies reported extend Cronin and Taylor’s results by re-assessing the ability of performance measures to predict purchase intentions in two new samples and five additional service industries (i.e., spectator sports, entertainment, health care, fast food, and long-distance carriers). In addition, in the two new studies, alternative measures of service quality and customer satisfaction are used, thereby enhancing the validity of the original findings. Finally, the research contributes to the literature by re-examining the causal order of the service quality –satisfaction relationship. This contribution is significant in part due to the conflicting results reported in the literature relative to their causal order, but more importantly because the relationship between these constructs is a vital consideration to service practitioners. The remainder of the paper is organized as follows. First, the literature pertinent to the measurement of the service quality, satisfaction, and purchase intentions constructs is reviewed, followed by a discussion of the methodology employed. The results will then be presented, followed by a discussion of the research and managerial implications. Suggestions for future research and a conclusion complete the presentation.

1. Literature review Despite the considerable published research relative to the measurement of, and the relationship between the service quality and customer satisfaction constructs (see Bitner and Hubbert, 1994; Bolton and Drew, 1991b; Ostrom and Iacobucci, 1995; Rust and Oliver, 1994; Woodside et al., 1989), a consensus concerning these key issues has not yet emerged. The conjecture pertaining to these constructs can be divided into three primary areas. First, there is disagreement concerning the causal relationship between service quality, customer satisfaction, and purchase intentions. Second, as evidenced by the continued use of gap-based measures of service quality in the literature, a definitive resolution has not been reached concerning the proper operationalization of this construct. Lastly, given the reported psychometric difficulties associated with the use of difference scores (e.g., Brown et al., 1993; Spreng et al., 1996), unresolved issues also remain relative to the operationalization of customer satisfaction. In order to assist in the examination of these topics, the pertinent literature concerning each will be considered in turn.

M.K. Brady et al. / Journal of Business Research 55 (2002) 17–31

1.1. Causal order: service quality and satisfaction Simply stated, the causal order of the relationship between service quality and consumer satisfaction has been a matter of considerable debate within the marketing literature. Three major positions have been advanced. First, service quality has been identified as an antecedent to satisfaction (Anderson and Sullivan, 1993; Anderson et al., 1994; Cronin and Taylor, 1992; Gotlieb et al., 1994; Woodside et al., 1989). Within this causal ordering, satisfaction is described as a ‘‘post-consumption evaluation of perceived quality . . .’’ (Anderson and Fornell 1994, p. 245). Rust and Oliver (1994, p. 6) offer support for this position in their suggestion that quality is ‘‘one of the service dimensions factored into the consumer’s satisfaction judgment’’ as do Parasuraman et al. (1985, 1988) who specifically suggest that service quality is an antecedent of customer satisfaction. However, some researchers argue that satisfaction is antecedent to service quality. Bitner (1990), borrowing from Oliver’s (1980) conceptualization of the relationship between satisfaction, service quality, and consumer behavior toward the firm, suggests that service encounter satisfaction is an antecedent of service quality. Bolton and Drew (1991a,b), using an algebraic representation of service quality, also provide support for this causal ordering. Finally, Bitner and Hubbert (1994) advocate the satisfaction ! service quality causal order based on the premise that service quality is akin to a global attitude and therefore encompasses the more transient satisfaction assessment. The third conceptualization of the service quality – satisfaction relationship suggests that neither satisfaction nor service quality may be antecedent to the other (Dabholkar, 1995; McAlexander et al., 1994). Cronin and Taylor (1992, Fig. 2, p. 59), in fact propose a structural model that empirically supports a non-recursive relationship between the two constructs. Unfortunately, the SMC associated with their investigation of this relationship is abnormally high (greater than 1) and negative. In sum, while there is a lack of consensus concerning the specification of the service quality – satisfaction relationship, the dominant conceptualization suggests service quality is an antecedent of the superordinate satisfaction construct. In order to provide a sound foundation from which to assess this relationship, the operational domain of the two constructs is considered next. 1.2. Service quality measurement For a number of years, the dominant operationalization of service quality has been Parasuraman et al.’s (1988) SERVQUAL scale. The foundation of the measure rested on the authors’ suggestion that service quality should be represented as the difference, or ‘‘gap,’’

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between service expectations and actual service performance (i.e., the disconfirmation paradigm). Thus, the GAP paradigm implies that service quality is deemed sufficient when consumer perceptions of service performance are equal to or greater than the expected level of service. Using the disconfirmation paradigm as a theoretical basis, Parasuraman et al. (1988) devised the SERVQUAL scale. This instrument employs a pair of 22-item scales, each identical with the exception that one assesses the perceived performance of a service provider, the other the consumers’ expectations regarding the level of service to be received. Calculating the difference between the 22 items each of five dimensions forms the service quality measure (i.e., SERVQUAL). Those five dimensions, that are proposed to be generalizable to virtually any service provider are: (1) the reliability of the service provider, (2) the responsiveness of the service provider, (3) the tangible aspects of the service, (4) the assurance provided by the service staff, and (5) the empathy shown to consumers. From its introduction, the SERVQUAL scale has been the dominant measurement paradigm in the service quality literature (Andaleeb and Basu, 1994; Asubonteng et al., 1996; Babakus and Boller, 1992; Boulding et al., 1993; Brown and Swartz, 1989; Ennew et al., 1993; Parasuraman et al., 1994; Smith, 1999). However, Cronin and Taylor (1992) suggest that there are problems inherent in the use of the disconfirmation paradigm to measure service quality. Specifically, Cronin and Taylor (1992) argue that, if service quality is to be considered ‘‘similar to an attitude,’’ as proposed by Parasuraman et al. (1985, 1988), its operationalization could be better represented by an attitude-based conceptualization. Therefore, they suggest that the expectations scale be discarded in favor of a performance-only measure of service quality that they term SERVPERF. In a subsequent cross-sectional empirical test, SERVPERF is shown to outperform SERVQUAL. Subsequent to the publication of Cronin and Taylor’s (1992) findings, a number of scholars have arrived at similar conclusions with respect to the superiority of performance measures. More specifically, Babakus and Boller’s (1992) findings suggest that the expectation portion of the SERVQUAL scale adds ‘‘no additional information’’ beyond that which is obtained from performance perceptions alone. Brown et al. (1993), recognizing the widespread use of the scale as well as the criticisms of its methodology, propose that a major problem with the SERVQUAL gap model stems from the use of difference scores. They cite several studies (e.g., Johns, 1981; Peter et al., 1993; Wall and Payne, 1973) which report that difference scores cause reliability, discriminant validity, and variance restriction problems, and contend that SERVQUAL appears to suffer from one or more of these deficiencies.

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Teas (1993) also criticizes the conceptual foundation of the scale citing the theoretical impossibility that performance levels that exceed a consumers’ ideal standard should be evaluated higher than those that are ‘‘ideal.’’ He refers to this inconsistency, in addition to the well-documented criticisms of the gap model, as a clear indication that an alternative to the SERVQUAL scale should be a distinct priority. In addition, Carman (1990) questions Parasuraman et al.’s (1988) proposed dimensionality for SERVQUAL on both theoretical and methodological grounds. Parasuraman et al. (1994), recognizing controversies relative to their service quality measure, compare the performance of four alternative measures, SERVQUAL, SERVPERF, a summary disconfirmation measure (Brown et al., 1993), and a three-column disconfirmation scale that compares a consumers’ desired and adequate expectations to their performance perceptions. The results of their investigation suggest that both SERVPERF and the summary disconfirmation measure outperform SERVQUAL. However, the authors recommend the continued use of their gap-based measure due to its superior diagnostic capacity. 1.3. Satisfaction measurement Because of its potential influence on consumer purchase intentions and customer retention (Anderson and Fornell, 1994; Anderson and Sullivan, 1993; Bolton and Drew, 1994; Cronin and Taylor, 1992; Fornell, 1992; Oliver, 1980; Oliver and Swan, 1989), consumer satisfaction has also been the subject of much attention in the marketing literature (Bitner and Hubbert, 1994; Cardozo, 1965; Oliver, 1977, 1980, 1981, 1997; Olshavsky and Miller, 1972; Olson and Dover, 1979; Rust and Oliver, 1994). Satisfaction is described as ‘‘an evaluation of an emotion’’ (Hunt, 1977 pp. 459 – 60), which suggests that the measurement of the satisfaction construct should be related to whether a consumer feels that a good or service provides positive utility (Oliver, 1997; Rust and Oliver, 1994). Since satisfaction is generally viewed as being a function of consumer expectations (e.g., Bolton and Drew, 1994; Erevelles and Leavitt, 1992; Oliver, 1977, 1980, 1981; Oliver and DeSarbo, 1988; Rust and Oliver, 1994), it can be perceived as a subjective feeling that depicts the degree to which the consumer’s expectations concerning a particular purchase encounter are met. Since perceptions of satisfaction appear to be influenced by preexisting expectations, it would appear that satisfaction results from a disconfirmation judgment as to the difference between expectations of the service to be provided and perceptions of the actual service performance. However, the aforementioned problems with the disconfirmation paradigm exist with respect to satisfaction as well, and must be addressed similarly.

2. Methods As recommended by Schmidt and Hunter (1977), the generalizability of the results is exhibited through the investigation of several service organizations using three different research samples. Given this format, the degree to which the research results converge across respondents and service industries demonstrates the cross-validity of the results. A description of the three studies is presented next. 2.1. The samples 2.1.1. Study 1: a replication of Cronin and Taylor (1992) The data from the Cronin and Taylor (1992) study were used to replicate their findings. In that study, 660 questionnaires were randomly collected via personal interview in a medium-sized city in the southeastern US. The industries investigated and the relevant sample sizes are identified below: Service industry Fast food Banking Pest control Dry cleaning

Sample size (n) 189 188 175 178

2.1.2. Data for Studies 2 and 3 The data for the second and third studies were gathered in two parts separated by a period of 6 months. In each of the studies, a group of trained interviewers solicited responses from consumers in the same medium-sized city in the southeastern US as investigated by Cronin and Taylor (1992). Respondents were again screened in order to ensure familiarity with the service firm that was being evaluated. In order to confirm the integrity of the data, approximately 20% of the respondents were contacted and asked to verify their responses to demographic classification questions as well as their general familiarity with the survey instrument. The industries investigated in each of the two new studies, as well the respective sample sizes, are identified below.

Study 2 Study 3

Service industry Spectator sports Entertainment Health care Long-distance carriers Fast food

Sample size (n) 401 450 167 221 309

2.2. Measures 2.2.1. Cronin and Taylor (1992) data The measures used in the replication of the Cronin and Taylor (1992) study included the paired 22-item performance and expectation scales from Parasuraman et al.’s

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(1988) SERVQUAL study, as well as direct measures of service quality, satisfaction, and purchase intentions. The direct measures used in the study were responses to sevenpoint semantic differential items designed to obtain a general assessment of the three constructs (see Cronin and Taylor, 1992 for a complete description and discussion).

students in the Basic Marketing courses offered at a large state university that is located in the city where all of the studies were conducted. The items that exhibited the highest correlations in each dimension were identified and used to define the 10-item scale.

2.2.2. Measures for Studies 2 and 3 In order to enhance the robustness of Cronin and Taylor’s (1992) findings, Studies 2 and 3 utilized different scales than those used in the original study. However, in an effort to maintain consistency across the two new studies (Studies 2 and 3), identical surveys were employed. A discussion of the operationalization of each of the constructs follows which suggests that, although different measures were used to assess each research construct, in each case the measurement domain was not altered (i.e. the same constructs were assessed, only the measures used to represent these constructs were different).

3. Results

2.2.2.1. Satisfaction. Owing to the support offered in the literature for operationalizing consumer satisfaction via summary disconfirmation measures (Oliver, 1977, 1980, 1981; Oliver and DeSarbo, 1988; Rust and Oliver, 1994), the satisfaction construct is measured using a 10-item summary disconfirmation scale (see the Appendix, items 1 –10). The 10 items are summed to form an index of the satisfaction exhibited by consumers. It is suggested that multi-item scales may be summed to form an index if the items are highly inter-correlated and the dimensions work in concert with the other variables in the study (Carver, 1989; Mohr et al., 1996). Empirical support for summing these and the other items is presented in Section 3 that follows.

3.1. Measurement issues

2.2.2.2. Purchase intentions. Three items (see the Appendix, items 26 – 28) similar to those commonly utilized in the services literature to measure purchase intentions (Cronin and Taylor, 1992; Babakus and Boller, 1992) are used to operationalize the purchase intentions construct. 2.2.2.3. Overall service quality. Five items (see the Appendix, items 21– 25) were identified for use in operationalizing the overall (global) service quality construct. 2.2.2.4. Service quality. The 10 service quality items identified in the Appendix (items 11 –20) were developed based on Parasuraman et al.’s (1985) 10 dimensions of service quality. Using the 10-dimensional structure as a foundation, the items were generated using a procedure recommended by Boyle et al. (1992) and resulted in a 10item performance measure similar to those used by Gotlieb et al. (1994) and McAlexander et al. (1994). The scale development process was as follows. First, multi-item indicators were created for each of the 10 dimensions. Next, an assessment for face validity reduced the scale to 47 items. The items were then tested using a convenience sample of

In a fashion intended to parallel Cronin and Taylor’s (1992) original study, the research employed a two-step research method. First, the reliability and validity of the research variables was investigated. Next, the path coefficients were estimated using LISREL 8.0 and examined in order to assess (1) the relative ability of the SERVQUAL and SERVPERF measures to explain variation in service quality, (2) the causal ordering of the service quality and satisfaction constructs, and (3) the effects of service quality and satisfaction on consumer purchase intentions.

An initial concern with any research is the reliability and validity of the measures used to operationalize the constructs of interest. In the current effort, the major issue concerns the use of indices by Cronin and Taylor (1992) to represent each of the constructs examined — SERVQUAL, SERVPERF, overall service quality, consumer satisfaction, and purchase intentions. While the dimensionality of the constructs in the Cronin and Taylor (1992) article has already been considered, the operationalizations utilized in the new studies (Studies 2 and 3) had to be investigated. In the data from the two new studies, confirmatory factor analysis (CFA) and coefficient alpha were used to assess the reliability and unidimensionality of the scales in order to determine whether it was appropriate to operationalize each of the constructs as an index (see Table 1). The results of the CFA procedures and coefficient alpha estimates provided support for the use of a summed index to represent each of the constructs. Specifically, each of the fit indices reported in Table 1 are at or above the generally accepted threshold and, in the case of the three item purchase intentions scale, all of the coefficient alpha estimates exceed the .80 level recommended by Peter (1979). In addition, a review of the relevant intervariable correlations (see Table 2) supports the convergent and discriminant validity of the research measures. 3.1.1. Study 1: parameter estimation and model specification The abnormal parameter estimates reported in Cronin and Taylor (1992) (i.e., the negative SMCs associated with ETA2 [customer satisfaction]; see Table 5 of Cronin and Taylor, 1992, p. 64) were investigated by disaggregating the non-recursive path specified between ETA1

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Table 1 CFA and coefficient alpha results Study

Industry

Service quality

2

Spectator sports

2

Entertainment

3

Health care

3

Long-distance carriers

3

Fast food a b c d e f

NFI = 0.90 CFI = 0.91 NFI = 0.94 CFI = 0.95 NFI = 0.89c CFI = 0.92 NFI = 0.89 CFI = 0.91 NFI = 0.91 CFI = 0.92

Satisfaction

Overall service quality

NFI = 0.93 CFI = 0.94 NFI = 0.95 CFI = 0.96 NFI = 0.90d CFI = 0.93 NFI = 0.93f CFI = 0.94 NFI = 0.92 CFI = 0.93

a

NFI = 0.99 CFI = 1.00 NFI = 0.91 CFI = 0.92 NFI = 0.99e CFI = 1.00 NFI = 0.90 CFI = 0.91 NFI = 0.93 CFI = 0.94

Purchase intentions a = .82b a = .89 a = .88 a = .90 a = .84

In the spectator sports sample of Study 2, OVRQUA3R was deleted from the overall quality scale. For the purchase intentions scale, coefficient alpha is reported because the three item scale is too small to employ a CFA procedure. In the health care sample of Study 3, SERVQ10 was deleted from the service quality scale. In the health care sample of Study 3, the DISCON10 measure was deleted from the satisfaction scale. In the health care sample of Study 3, the OVRQUAR3R was deleted from the overall quality scale. In the long-distance carriers sample of Study 3, the DISCON10 measure was deleted from the satisfaction scale.

(overall service quality) and ETA2. This was accomplished by examining the recursive counterparts (see Fig. 1, Models A and B) of the non-recursive models examined in Cronin and Taylor (1992) (see Fig. 2). In essence, this required the conceptualization of Cronin and Taylor’s (1992) non-recursive model depicted in Fig. 2 as a pair of recursive models. The results of the analyses of the recursive versions of the Cronin and Taylor (1992) model (see Fig. 1), using the original Cronin and Taylor (1992) data, are summarized in Table 3. A close inspection of the data presented in Table 3 reveals neither any unexpected nor improper values for the parameter estimates, nor any abnormally large variability between industries. The fit indices (i.e., chi-square, AGFI, RMS) indicate that the models depicted in Fig. 1 more closely fit the data when measured using the performance-only scale (SERVPERF) than when assessed via the disconfirmation-based SERVQUAL scale (see Table 3, Models 2 and 4). These results offer support for Cronin and Taylor’s (1992) contention relative to the superiority of performance measures of service quality. Moreover, an analysis of the results presented in Table 4 supports the findings in the literature (e.g., Babakus and Boller, 1992; Brown et al., 1993; Carman, 1990; McAlexander et al., 1994) concerning SERVQUAL’s problematic factor structure. Specifically, a CFA of Parasuraman et al.’s

Table 2 Correlation matrix for the research variables Variable

1

2

3

4

(1) (2) (3) (4)

1.00 0.62 0.56 0.52

1.00 0.55 0.55

1.00 0.77

1.00

Service quality Overall service quality Overall satisfaction Purchase intentions

(1988) proposed five dimensions (i.e., reliability, responsiveness, assurances, empathy, and tangibles) yields a poor model fit across all four samples (see Table 4). Hence, it appears that confirmation of the scale’s five factors continues to elude researchers. The results of the analyses of the recursive models with the original Cronin and Taylor (1992) data (see Fig. 1 and Table 3) thus support a number of conclusions. First, the results support Cronin and Taylor’s (1992, 1994) contention that performance-based measures of service quality (SERVPERF) do represent a better operationalization of the service quality construct. This conclusion is based on the fact that, in each of the models that utilize the SERVPERF scale (i.e., Models 2 and 4 in Fig. 1), there is a uniform decrease in the residual estimates and chi-square values as well as a consistent increase in the Goodness-of-Fit Indices. Second, an analysis of SERVQUAL’s proposed five dimensions provides additional evidence of the scale’s problematic factor structure (see Table 4). The results of the analysis of the Cronin and Taylor (1992) data also indicate that customer satisfaction has a statistically significant effect on consumers’ purchase intentions. In all of the industries investigated, the path between satisfaction and purchase intentions (i.e., path g21 in Model A and b32 in Model B) is statistically significant ( P .05). Alternatively, the path between service quality and purchase intentions (paths b21 and b31, respectively) is significant in only half of the investigated industries. These findings reinforce Cronin and Taylor’s (1992) assertion that satisfaction exhibits a greater effect on consumers’ purchase intentions than does service quality. On the basis of these results, an extension was undertaken using Studies 2 and 3. Specifically, in view of the support generated for the use of the performance-only measure of service quality (SERVPERF) in the original study (Cronin and Taylor, 1992) and in the replication

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Fig. 1. The satisfaction, service quality, purchase intentions causal models.

performed with the original data, the replications and extentions undertaken in Studies 2 and 3 utilized only performance-based measures of service quality. In addition, because of the support demonstrated for treating service quality as an antecedent of consumer satisfaction in the reanalysis of the Cronin and Taylor (1992) data (i.e., the consistent significant path between satisfaction and purchase intentions; see Table 3) and in the extant literature (e.g., Anderson and Sullivan, 1993; Anderson and Fornell, 1994; Anderson et al., 1994; McAlexander et al., 1994; Rust and Oliver, 1994), only Model 4 as depicted in Fig. 1 was examined in Studies 2 and 3. 3.1.2. Studies 2 and 3: SERVPERF and the service quality –satisfaction relationship Before examining the specific issues of interest, it was necessary to consider whether the data from Studies 2 and 3 fit the model depicted in Fig. 1, Model 4 (i.e., the

service quality ! satisfaction SERVPERF model). As is indicated by the model fit and model comparison measures reported in Table 5 (i.e., AGFI, RMSEA, NFI, and CFI; see Bentler and Bonett, 1980; Anderson and Gerbing, 1988; Gerbing and Anderson, 1988 for a discussion of the interpretation and use of these criterion measures), the model fit relatively well for each of the five industries investigated in Studies 2 and 3. Because the data fit well, we will now move on to the consideration of the specific research questions of interest. In order to revisit the effectiveness of performance-only measures, the first issue to be considered is the level of support exhibited in the results for the performance-based scale of service quality (SERVPERF). In a manner similar to Cronin and Taylor’s (1992) study, this interest is investigated via the use of LISREL to estimate the strength of the relationship between the SERVPERF measure and an overall measure of service quality. This relationship is reflected

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Fig. 2. The non-recursive model investigated by Cronin and Taylor (1992).

in the path g11 (see Fig. 1, Model 4 and Table 5). The results of the LISREL 8 structural analysis presented in Table 5 indicate that the path estimates for g11 across the five industries in Studies 2 and 3 range from 0.65 (Study 2; entertainment services) to 0.84 (Study 3; fast food services) and, in each case, the t value is statistically significant ( P .01). Thus, the results using new data, as well as new measures (Studies 2 and 3), provide support for the efficacy of performance-only measures of service quality as noted in Cronin and Taylor (1992). A second focal issue is the relationship between service quality and satisfaction. Due to the conflicting results reported relative to the causal relationship between these two constructs (e.g., Anderson and Fornell, 1994; Bitner and Hubbert, 1994; Bolton and Drew, 1991b; Rust and Oliver, 1994), an investigation of this effect was also a primary concern in the analysis of the two new data sets. Path b21 in Model 4 depicts this relationship. As can be seen in the results presented in Table 5, there is strong support in our replications for depicting service quality as an antecedent of consumer satisfaction. More specifically, the path estimates range from 0.62 (Study 2; entertainment services) to 0.77 (Study 3; long-distance telephone services), each with a significant ( P .01) corresponding t value that ranges from 6.29 to 9.54. The third issue relates to the relative effect that service quality and satisfaction have on consumers’ purchase intentions. Path b31 (see Fig. 1) depicts the effect of

service quality on purchase intentions. The estimated coefficients for this path (see Table 5) range from 0.04 (Study 3; fast food services) to 0.24 (Study 3; longdistance telephone services). The estimated effect of service quality on purchase intentions is statistically significant ( P .05) in only three of the five industries. In contrast, the estimated effect of customer satisfaction on purchase intentions (path b32) is statistically significant in all five industries ( P .01) with path estimates that range from 0.70 (Study 2; long-distance telephone services) to 0.89 (Study 3; fast food services). Therefore, given the superior path estimates and the fact that the satisfaction ! purchase intentions path is statistically significant in each of the five industries, it appears that customer satisfaction has a greater impact on purchase intentions. In a related issue, LISREL 8 calculates the correlation between endogenous variables. This allows a comparison to be made relative to the correlation between overall service quality and the summary disconfirmation measure of satisfaction. The correlations range from 0.48 (Study 2; entertainment services) to 0.66 (Study 3; long-distance telephone services). These correlations tend to be towards the low end of those reported in the extant literature (Cronin and Taylor, 1992, Gotlieb et al., 1994; Taylor and Baker, 1994). While the reported correlations do not provide conclusive evidence that the two constructs are truly distinct, performance-only measures appear to attenuate the spurious correlation attributable to methods artifacts. In other words, performance-based measures of

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Table 3 Results from the Cronin and Taylor (1992) replication Banking Banking Parameters LISREL estimate t value SERVQUAL g12 model (1) b21 g21 g11 c2 AGFI RMS SMC
Y1 SMC
Y2 SMC
Y3 SERVPERF g12 model (2) b21 g21 g11 c2 AGFI RMS SMC
Y1 SMC
Y2 SMC
Y3 SERVQUAL b21 model (3) b32 b31 g11 c2 AGFI RMS SMC
Y1 SMC
Y2 SMC
Y3 SERVPERF b21 model (4) b32 b31 g11 c2 AGFI RMS SMC
Y1 SMC
Y2 SMC
Y3

Pest control Pest control Dry cleaning Dry cleaning Fast food Fast food LISREL estimate t value LISREL estimate t value LISREL estimate t value

0.84

20.10

0.17 0.42 0.61 16.97 0.79 0.04 0.37 0.33

1.48 0.20 3.71 0.41 9.49 0.51 ( P = .00) 28.59 0.68 0.08 0.26 0.33

2.03 4.25 8.02 ( P = .00)

0.84

20.34

16.20

0.23 0.35 0.60 13.63 0.82 0.04 0.36 0.31

1.98 0.19 3.12 0.42 9.99 0.59 ( P = .00) 17.64 0.78 0.06 0.34 0.33

Failed admissability test

0.22

2.00

0.75 0.13 0.35 0.08 1.00 0.00 0.71 0.31 0.70

14.86 3.16 2.61 ( P = .78)

0.79

16.21

0.77

1.93 4.32 9.70 ( P = .00)

0.89 0.07 0.58 0.60 18.17 0.78 0.05 0.36 0.41

0.81

18.18

0.54 4.60 7.94 ( P = .00)

0.24 0.30 0.57 6.12 0.92 0.04 0.33 0.26

2.19 2.78 9.24 ( P = .05)

20.47

0.81

18.44

0.54 4.60 9.98 ( P = .000)

0.23 0.32 0.66 1.14 0.98 0.01 0.43 0.27

2.07 2.92 11.69 ( P = .43)

2.06

0.07

0.5

0.26

2.21

0.71 0.10 0.41 5.20 0.86 0.04 0.60 0.33 0.59 0.19

12.45 1.77 4.29 ( P = .02)

0.89 0.00 0.58 3.95 0.90 0.03 0.80 0.41 0.80 0.07

21.95 0.03 4.65 ( P = .05)

0.69 0.24 0.30 6.15 0.84 0.04 0.69 0.26 0.65 0.23

14.97 2.80 5.29 ( P = .13)

0.64 0.30 0.32 0.24 0.99 0.01 0.71 0.27 0.65

13.46 2.96 6.19 ( P = .63)

1.95

0.66 0.19 0.42 0.22 0.99 0.01 0.62 0.33 0.59

11.39 3.24 4.37 ( P = .64)

Table 4 CFA results for five factor conceptualizations of service quality

c df P value GFI AGFI RMSR

0.07 0.58 0.51 20.62 0.74 0.06 0.26 0.41

20.45

0.20

service quality appear to negate the effect caused by using disconfirmation measures to assess both constructs. However, although the variables are more distinct when

2

0.89

Banks

Pest control

Dry cleaning

Fast food

1256.85 199 .00 0.87 0.83 0.20

2066.34 199 .00 0.80 0.75 0.25

1675.36 199 .00 0.83 0.78 0.25

1399.11 199 .00 0.86 0.82 0.26

0.86 0.06 0.58 3.36 0.91 0.03 0.80 0.41 0.80

0.54 20.03 1.31 4.65 ( P = .07)

2.09

assessed with performance-only measures, there is still a need for an improved and truly distinct conceptualization and operationalization of the service quality and satisfaction constructs. Finally, the ability of the model to explain variance in the constructs of interest (as indicated by the SMCs for each construct) should be considered. SMCs represent the proportion of explained variance in a latent construct and are calculated as 1 minus the proportion of unexplained variance in the latent variable (i.e., 1
y/Var(hh): for an overview of this issue as well as more general structural equation modeling concepts, see Mueller, 1996). The results presented in Table 5 indicate that the SMCs for

26

M.K. Brady et al. / Journal of Business Research 55 (2002) 17–31

Table 5 Results from Studies 2 and 3 Study 2 Parameter

Spectator sports LISREL estimates

Spectator sports t value

Entertainment LISREL estimates

Entertainment t value

b21 b31 b32 g11 c2 Corr SQ
SAT AGFI RMSEA NFI CFI SMC
Y1 SMC
Y2 SMC
Y3

0.75 0.21 0.70 0.77 10.76 0.59 0.93 0.10 0.99 0.99 0.60 0.56 0.75

9.39 2.78 7.04 10.94 ( P = .01)

0.62 0.17 0.75 0.65 22.34 0.48 0.88 0.15 0.97 0.97 0.43 0.38 0.75

9.54 3.50 10.19 10.72 ( P = .00)

Parameter

Health care LISREL estimates

Health care t value

Long-distance LISREL estimates

Long-distance t value

Fast food LISREL estimates

Fast food t value

b21 b31 b32 g11 c2 Corr SQ
SAT AGFI RMSEA NFI CFI SMC
Y1 SMC
Y2 SMC
Y3

0.68 0.12 0.86 0.69 15.91 0.53 0.77 0.20 0.95 0.96 0.47 0.46 0.89

6.29 1.53 4.30 7.03 ( P = .00)

7.83 2.86 6.13 8.85 ( P = .03)

0.70 0.04 0.89 0.84 16.89 0.60 0.81 0.18 0.97 0.97 0.70 0.49 0.84

7.79 0.057 6.16 9.03 ( P = .00)

Study 3

0.77 0.24 0.70 0.77 7.2 0.66 0.92 0.11 0.99 0.99 0.59 0.59 0.80

service quality (ETA1) range from 0.43 (Study 1; entertainment services) to 0.70 (Study 3; fast food services). The SMC for consumer satisfaction (ETA2) range from 0.38 (Study 2; entertainment services) to 0.59 (Study 3; long-distance telephone services). All are within the ranges typically reported in the literature for structural models (Fornell et al., 1996; Ganeson, 1994; Hartline and Ferrell, 1996; Spreng et al., 1996). For purchase intentions (ETA3), the SMCs range from 0.75 (Study 2; entertainment services) to 0.89 (Study 3; health care services). These results provide support for the relationships as modeled.

4. Discussion The three objectives set forth for the research required separate analytical steps. The first step entailed the replication of Cronin and Taylor’s (1992) study in order to determine whether their findings relative to the superiority of a performance-only measure of service quality (i.e., SERVPERF) could be confirmed given the abnormal SMC values reported in the original results. The

second step was to gauge the robustness of their findings by examining the ability of a reduced, 10-item performance-only service quality measure to capture consumers’ perceptions of the overall quality inherent in a cross-section of service firms. The third step involved the reexamination of the service quality ! customer satisfaction effect hypothesized in Cronin and Taylor (1992) in new data sets and with new measures in order to further the examination of this highly controversial and important relationship. To complete the first step, the data utilized in the Cronin and Taylor (1992) study were obtained and reanalyzed. As is detailed in the sections above, the inherent problem in Cronin and Taylor’s (1992) article appeared to be the abnormal SMCs reported for ETA2 — consumer satisfaction. However, when the non-recursive path between ETA1 and ETA2 was conceptualized into an equivalent set of recursive models (see Fig. 1), the unusual SMC values were not evident and the superiority of the performance-only measure was evident. Given that the same data was utilized as in the Cronin and Taylor (1992) study, the current results appear especially significant as they remove the apparent controversy that may

M.K. Brady et al. / Journal of Business Research 55 (2002) 17–31

exist relative to the veracity of the results reported in that study. The results also indicate that the correlation between the summary disconfirmation measure of satisfaction and the performance-only service quality measures are notably lower (0.48 to 0.66 across the five industries) than those reported in other studies that use disconfirmation-based scales to measure both service quality and satisfaction. Thus, by removing the effects caused by methods artifacts, the correlation between the two constructs can be attenuated and thereby the measurement of the variables becomes more distinct. The second step required the collection of new data to test Cronin and Taylor’s (1992) findings relative to the ability of a reduced, 10-item performance-only service quality measure to consistently capture consumers’ perceptions of the quality inherent in a service. In the five industries included in the two new data sets, the estimated coefficient for the path between the performance-only index and the measure of the respondents’ overall perceptions of quality service (path g11) is statistically significant ( P .01) in every case. Moreover, the SMCs for ETA1 are uniformly high; ranging from 0.43 to 0.70. All of this information suggests that the cross-sectional examination of the reduced measure of service quality offers support relative to the ability of performance-only measures to effectively capture the service quality perceptions of consumers across a variety of service products. The third step also involved the use of the new data. Specifically, new data were used to examine Model 4 (the model shown in Fig. 1 that depicts service quality as an antecedent of consumer satisfaction). The path of interest was b21, which depicts the strength of the effect of service quality on consumer satisfaction. Table 5 indicates that the effect is both statistically significant ( P .01) in every case and substantial (the parameter estimates for b21 range from 0.62 to 0.77). Thus, the replication of Cronin and Taylor’s (1992) analysis of their model with new data supports the conceptualization of service quality as an antecedent of consumer or satisfaction. Several interesting secondary findings also emerged. First, in the analysis of the two new data sets, the measures used to operationalize the service quality and consumer satisfaction constructs are different than those employed by Cronin and Taylor (1992). These measures conformed to all of the properties ascribed to these constructs in the extant literature (as discussed in Section 2 above), and they exhibit a lower correlation (0.48 to 0.66) than is commonly reported in the literature (see Cronin and Taylor 1992). This finding might be interpreted as support for the use of the summary disconfirmation-based measure of consumer satisfaction. A second additional contribution of the analysis of the new data emerged from a comparison of the relative ability of service quality (ETA1) and consumer satisfaction (ETA2) to explain consumers’ purchase intentions (ETA3). The analysis of these relationships is significant

27

in that the relative importance of each construct’s impact on potential purchase behavior ultimately should drive the focus of practitioner strategies. The paths b31 (service quality ! purchase intentions) and b32 (consumer satisfaction ! purchase intentions) were the basis of this comparison. An examination of Table 5 indicates that the path estimate for the latter effect is substantially greater in each of the five industries examined in the two new data sets. This provides additional support for the superordinate position ascribed to consumer satisfaction in consumers’ decision-making processes by Cronin and Taylor (1992). Moreover, it appears to suggest that the weight of practitioner interest should be directed towards the development of consumer satisfaction as a means of influencing consumer purchase intentions.

5. Implications 5.1. Practice The implications of the results presented highlight the obvious importance of both service quality and consumer satisfaction in the management of service organizations. While this is hardly a new finding, the replication and extension presented add to the growing support for the conceptualization of service quality as an antecedent of consumer satisfaction and for consumer satisfaction as the superordinate construct based on its ability to explain a greater portion of the variance in consumers’ purchase intentions. For managers of service organizations, this suggests that their overriding goal should be to ensure the satisfaction of their customers. While the provision of high quality services is undeniably a proper and important part of the strategic efforts that can be employed to enhance the satisfaction of customers, it is clearly not the only means of increasing consumers’ satisfaction with a service provider. In addition to the provision of quality services, managers of service organizations must also consider other options. The value of a service, the physical environment in which the service provision occurs (the servicescape), and such uncontrollable factors as the behavior of other patrons within the service venue may also affect consumers’ satisfaction with the service received. Managers, therefore, need to consider all of the possible determinants of the satisfaction of their current and potential customers, and attempt to determine which of these will have the greatest positive influence on the future purchasing plans of these individuals. One final implication for service managers relates to the measurement of service quality. The 10-item performanceonly index utilized in Studies 2 and 3 performs very well. The reduced number of items (10 compared to the 22-item SERVQUAL expectations and performance scales) represents a substantial opportunity for service managers to more

28

M.K. Brady et al. / Journal of Business Research 55 (2002) 17–31

efficiently measure the quality of the services offered by their organization. 5.2. Research The results presented hold several important implications for future research. One such implication involves the service quality – consumer satisfaction relationship. The causal order of these two constructs is an important topic, and one that deserves additional attention. The identification of a number of other factors that potentially influence the level of satisfaction consumers attribute to a service provider is another worthy pursuit. While the current research indicates that both service quality and consumer satisfaction are important considerations in consumers’ decision-making processes for services, the results also suggest that these two constructs do not explain all of the variance in consumers’ purchase intentions. Factors such as those identified in Section 5.1 as possible determinants of whether consumers will be satisfied with a service deserve additional scrutiny due to their potential influence on consumers’ willingness to make purchases from a specific service provider. Perhaps the most important implication of the work reported here is the contributions that can be made by the replication of research efforts. Studies such as the Cronin and Taylor (1992) article that question a prevailing exemplar as important as the SERVQUAL scale should be replicated. The current replication supports the conclusions reached by Cronin and Taylor (1992, 1994); however, that is not the rationale for the importance of the effort. Replications are necessary to ensure that the conclusions reached are accurate. The importance of this implication should not be overlooked or undersold.

7. Conclusion The replication of Cronin and Taylor’s (1992) article was undertaken with three objectives in mind: (1) to justify the identification of performance-based measures as the dominant exemplar relative to the measurement of service quality, (2) to clarify the nature of the service quality – satisfaction relationship identified in Cronin and Taylor (1992), and (3) to extend the Cronin and Taylor (1992) research with regard to the effects of service quality and satisfaction on consumers’ purchase intentions. All three research objectives were ‘‘satisfied.’’ The examination of the recursive models confirmed Cronin and Taylor’s (1992) assertions as to the superiority of the performance-only approach to the measurement of service quality. The examination of the recursive models also failed to produce any of the abnormal SMC estimates found in the original study. Moreover, the replication of the recursive model in the five industries represented in the two new data sets (Studies 2 and 3) adds further evidence of the veracity of Cronin and Taylor’s (1992) study and ensured the successful completion of the second objective of the research. The replication of the recursive model in the new data sets also confirmed the superordinate role of consumer satisfaction hypothesized in Cronin and Taylor (1992). In conclusion, it seems apparent that the importance of replication-based research has been under appreciated by marketing researchers. The effort reported lends credibility to the conclusions reached in prior research relative to the measurement of service quality. That credibility benefits both academics and practitioners by reducing the risk inherent in adopting new positions, strategies, or in this case — a new approach to the measurement of service quality. Replication has a long tradition in the hard sciences. It is a tradition marketing researchers would be wise to embrace.

6. Limitations

Appendix A.

As was acknowledged by Cronin and Taylor (1992) in their study, while every effort has been made to ensure that the potential threats to the reliability and validity of the research results are minimized, that does not ensure that all threats are fully eliminated. Generalizations beyond the nine industries examined should be approached cautiously. The selection of the specific service providers used to represent each industry may have also introduced a limitation to the generalizability of the results. Likewise, measurement issues are always a concern in survey research. The limitations cited above are but a sample of the possible effects on the results reported. However, these limitations not withstanding, we are confident that the results reported are an accurate representation of the relationships described in the study. All established methods were used to limit the threats to the implications generated by the results reported.

A.1. Summary disconfirmation (satisfaction) measures For the next series of questions, please fill in the blank with the response (a number from 1 to 9) which best reflects the degree to which your last visit to the facility exceeded or fell short of your expectations. In other words, how did the service provided compare to your expectations (i.e., worse, same, or better than expected)? Worse than I Expected 1 2

3

About What I Expected 4 5 6 7

Better Than I Expected 8 9

1. _ The reliability, consistency, and dependability of the employees were 2. _ The willingness and ability of the employees to provide services in a timely manner were

M.K. Brady et al. / Journal of Business Research 55 (2002) 17–31

3. _ The competence (knowledge and skill) of the employees was 4. _ The approachability and ease of contact of the employees were 5. _ The levels of courtesy, politeness, and respect I received were 6. _ How the employees listened to me and spoke in a language that I could understand were 7. _ The trustworthiness, believability, and honesty of the employees were 8. _ The environment for care in terms of being free from danger, risk or doubt was 9. _ The effort of the employees to understand my needs was 10. _ The neatness and cleanliness of the facilities and staff were

A.2. Service quality measures Please choose a number between 1 and 9 that best reflects your level of agreement with the following statements. VERY LOW VERY HIGH 1 2 3 4 5 6 7 8 9 11. Generally, the employees provide service reliably, consistently, and dependably. 12. Generally, the employees are willing and able to provide service in a timely manner. 13. Generally, the employees are competent (i.e. knowledgeable and skillful). 14. Generally, the employees are approachable and easy to contact. 15. Generally, the employees are courteous, polite, and respectful. 16. Generally, the employees listen to me and speak in a language that I can understand. 17. Generally, the employees are trustworthy, believable, and honest. 18. Generally, this facility provides an environment that is free from danger. 19. Generally, the employees make the effort to understand my needs. 20. Generally, the physical facilities and employees are neat and clean.

A.3. Overall service quality measures The following questions relate to your perception of the overall quality of the facility’s services based on a series of adjectives. Please circle the number that best reflects your assessment of the service quality: 21. Poor 1 2 3 4 5 6 7 8 9 Excellent 22. Inferior 1 2 3 4 5 6 7 8 9 Superior

29

23. High Quality 1 2 3 4 5 6 7 8 9 Poor Quality 24. Low Standards 1 2 3 4 5 6 7 8 9 High Standards 25. One of the Best 1 2 3 4 5 6 7 8 9 One of the Worst A.4. Purchase intentions measures VERY LOW 1 2

3

4

5

6

7

8

VERY HIGH 9

26. The probability that I will use this facility’s services again is 27. The likelihood that I would recommend this facility’s services to a friend is 28. If I had to do it over again, the probability I would make the same choice is

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