A Critical Evaluation of the Service Quality Strategies at Abc Holdings, Sri Lanka

                A critical evaluation of the service quality strategies at ABC Holdings, Sri Lanka

Executive Summary

Service quality is essential for customer satisfaction hence any successful service organization must maintain a high level of service quality in order to retain existing customers and to gain new customers. ABC Holdings has become less concerned with maintaining a high service quality due to changes in management as well as demand and capacity disparity.

The purpose of this study was to understand the current service quality strategies and their effects as well as the factors that affect level of service quality. Through customer surveys and interviews, this research attempted to understand how customers perceive the existing service quality at ABC Holdings. 35 customers were surveyed while five customers were interviewed to understand their expected service quality and perceived service quality.    

The major finding was that customers are significantly dissatisfied with the service quality of ABC Holdings. Two gaps were identified between customer expectation and perceptions of the management as well as between service quality specification and service delivery.

The research can help ABC Holdings understand which areas they are lacking in terms of service quality and how they can implement effective service quality strategies in the future. Using the findings of this study ABC Holdings as well as other organizations in this industry can enhance performance by ensuring to fulfil and commit themselves in meeting customer expectations.

Table of Contents

1.0 Introduction        6

2.0 Orientation        8

        2.1 Literature Review        8

        2.2 Case study- ABC Holdings        10

                2.2.1 Background        10

                2.2.2 Project research problems        12

                2.2.3 Research questions        13

                2.2.4 Significance of the project        13

3.0 Data Collection and analysis        14

        3.1 Methodology        14

                3.1.1 Case study method        14

                3.1.2 Secondary data        14

                3.1.3 Primary data        15

                3.1.4 Interviews        15

                3.1.5 Surveys        16

                3.1.6 Research population and sample        16

        3.2 Data analysis        17

                3.2.1 Existing service qualities at ABC Holding and their effects        17

                        3.2.1.1 Analysis of interview        17

                        3.2.1.2 Analysis of surveys        18

                3.2.2 Factors that affects the level of service quality        22

4.0 Key findings        25

5.0        Key Implications        26

        5.1 How literature review is related to key findings        26

        5.2 Limitations of study        27

        5.3 Key learnings and recommendations        27

6.0 Conclusion                28

References                30

Appendices                32

1.0 Introduction

Real estate development industry in Sri Lanka is one of fastest growing industries since the end of the civil war in mid-2009. The country’s economy has seen a strong growth by determined rebuilding measures, surging tourism and increased investor confidence. In this setting, ABC Holdings enter the market that already comprises of housing key players such as John Keells Group, Altair, Avic, and Colombo city centre. The immense competition means significance of core competence for a business to differentiate their business from competition. Service quality is a primary and most value-added feature among the core competencies of the industry players. Therefore, as a strategy to keep up the competitive position, it is important to focus on providing higher service quality to ensure customer satisfaction.

This study evaluated service quality strategies in Sri Lankan real estate development industry via case study of ABC Holdings. ABC Holdings (ABC) incorporated in 2003 and is headquartered in Sri Lanka. Renowned for the leadership in real estate development, today ABC Holding is a name synonymous with luxury vertical living projects. The property market in prime locations in the city was taking a downward trend in 2008 and ABC was bold enough to create a new market for property developments to grow in urban areas in Colombo (ABC Holdings 2014). At present, it is a fully-fledged corporate operating in a plethora of industries, from real estate to manufacturing and trading operations.  

Customer relationship management (CRM) theories consider service quality as one of the most important factors as it is a major focus of individual customers (Anderson et al., 1990). Anderson conducted a research with a sample of 50 Vodafone customers to identify factors affecting customer relationship management. In the aspect of competition, customer relationship is a key part, which helps acquire and retain the customers for its organizations. To maintain such CRM level in an organization, it is important to focus on the service quality with other factors affecting customer retention including price for the service provided, delivery, and time. Customer loyalty positively correlates with the emphasis given to the customer relationships (Buttle, 2008). In order to create better customer relationships, a company needs to pay close attention to the expectations of a customer and how the company can meet those expectations.