the role of karaoke box servicescape plays in …libproject.hkbu.edu.hk/trsimage/hp/02007428.pdf ·...

The Role of Karaoke Box Servicescapes

Play in Customer Satisfaction

BY

Tam Pui Lam April 02007428

Marketing Option

An Honours Degree Project Proposal Submitted to the School of Business on Partial Fulfilment

of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honours)

Hong Kong Baptist University Hong Kong

April 2005

- I -

Acknowledgement

I would like to take this opportunity to express my greatest appreciation to my supervisor,

Ms. Greenie Ha, for her valuable advices and guidance given. Her promptly reply, even when

she is in maternity leave, really contributes to the progress of my project a lot. Her kindness and

patience support me to strive for the best of my report.

A great credit should also go to Dr. Noel Siu for her advices during my supervisor maternity

leave. Her expertise in Services Marketing provides me a lot of insights for deciding my research

topic.

In addition, I appreciate whole-heartedly for the help of focus group participants and for the

support and care of my friends, especially for those who accompany with me to do observation

and teach me how to make my project better.

Lastly, I sincerely thanks for my parents love and care.

- II -

Abstract

Karaoke is one of the most important and popular entertainment in Hong Kong. Since it is a

kind of high customer involvement service, its facilities play an essential role in customer service

encounter and satisfaction. However, no pervious research studies on servicescapes and even

service quality of karaoke box. This research is first to investigate if karaoke box servicescapes

affect customer satisfaction.

The purpose of this paper is to determine the relationship among karaoke box servicescapes

and customer satisfaction. Besides, which kind of servicescapes influence satisfaction most is

also examined. In this study, Neway Karaoke Box is used as an example because of its

popularity and dominant role in the industry. Furthermore, a framework of servicescapes is also

developed which divides servicescapes into four dimensions. They are namely Ambient

Environment, Spatial Layout and Functionality, Signs, Symbol and Artifacts and Cleanliness.

The results discover that all dimensions of servicescapes have a positive effect on customer

satisfaction where Cleanliness has the greatest impact. Finally, implications and

recommendations are discussed base on the findings in order to improve Neway Karaoke Box

services. Most importantly, this study is a starting point for further research on karaoke box

servicescapes.

Table of Content Acknowledgement I Abstract II 1 Introduction 1 1.1 Industry 1 1.1.1 Services Industry 1 1.1.2 Karaoke Industry 1

1.2 Background of Neway Karaoke Box 2

2 Statement of the Problems 2 3 Literature Review 3 3.1 Service Quality 3 3.2 Servicescapes 4 3.3 Customer Satisfaction 7 4 Objectives of the Study 7 5 Statement of Hypotheses 8 6 Methodology 10

6.1 Research Method 10 6.2 Instrument and Sample size 10 6.2.1 Instrument and Questionnaire Design 10 6.2.2 Sampling 11 6.3 Data Analysis Method 12 7 Findings and Analysis 13 7.1 Demographic and Consumption Characteristics 13 7.2 Factor Analysis 14 7.2.1 Factor Analysis on Servicescapes 14 7.2.2 Factor Analysis on Customer Satisfaction, Desire to 19

Stay for Longer Time and Repatronage Intention 7.3 Reliability Test 21 7.4 Multiple Regressions 21 7.4.1 Relationship among Eight Servicescapes Dimensions 21 and Overall Customer Satisfaction

7.4.2 Relationship among Eight Servicescapes Dimensions 22 and Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention

7.5 Correlations 24 8 Discussions of the Findings and Analysis 24 9 Implications and Recommendations 27 9.1 Dimensions of Servicescapes 27 9.2 The Role of Servicescapes Play in Customer Satisfaction 30 9.3 Importance of Customer Satisfaction 31 9.4 Implications for Research 32 10 Limitations 32 11 Conclusion 33 References 35 Appendix 39 Figures 40 Questionnaire 43 SPSS Output 50 Observation 62 Focus Group Script 66

The Role of Karaoke Box Servicescapes Play in Customer Satisfaction April Tam 02007428

P.1 of 77

1 Introduction

1.1 Industry

1.1.1 Services Industry

Services industry is increasingly important and essential rather than product industry in these

few decades. Companies not only provide products, but also excellent services. Therefore, service

is acknowledged to be critical for all organizations and quality in the service sector has been of

interest to marketing academics and managers. Most of the firms put much effort aiming at

enhancing their service quality in order to differentiate themselves form rivals. For instance,

department stores or fast food restaurants also provide delivery service and many retail stores

focus on training their staff to be more polite and cordial so that customers will have a good

experience of their patronages.

1.1.2 Karaoke Industry

Karaoke, which is originated in Japan, is a typical form of entertainment for Japanese

business people; they drop into a bar with colleagues after work, have a drink, and enjoy singing

popular songs to the accompaniment of karaoke. Karaoke has been entertaining people ever since

its invention 20 years ago, and has become firmly established in Japanese society, going far

beyond just a temporary boom (Karaoke Scene Magazine, n.d.a.). The first karaoke box,

providing a place for entertainment, appeared in 1984 in Japan. Karaoke box industry became

very popular since the early 1990s in Hong Kong (Neway Karaoke Box, n.d.a.). Many citizens in

Hong Kong spend a considerable amount of time in karaoke (Chow and Lui, 2002). Singing in the


P.2 of 77

Karaoke box is regarded as a leisure activity among them. The main target segment of karaoke

box is teenager. However, other segments like middle age and upper scale people also like to stay

in karaoke box.

1.2 Background of Neway Karaoke Box

Neway Karaoke Box, which is founded in 1993, will be applied in this study as it is the

market leader of the industry. It generates 60 percents of market share and operates more than 20

branches in busiest traffic (e.g. Mongkok and Causeway Bay), New Territories and other suburban

residential areas. Its mission is to expand its karaoke empire and bring healthy, salubrious

entertainment to the community. Therefore, Neway not only makes karaoke the most desired

entertainment activity in Hong Kong, but also organized many activities for community benefits

such as awards for advocating educational studies for young people. (Neway Karaoke Box, n.d.a.)

2 Statement of the Problems

Nowadays, people who study and work under great pressure. Leisure activities act an

important role in people life. Spending time in the karaoke box seems becoming the first choice of

relaxation among teenagers in the recent years. Karaoke box contains many individual rooms for

customers to enjoy singing without affected by the others. Part of the services is regarded as

self-service because customers need to participate in such as selecting the songs by themselves.

Therefore, please and easy to use facilities should be offered in this high customer involvement

services. This study will identify customers satisfaction level towards karaoke box servicescapes.


P.3 of 77

Little consumer research has been conducted in the area of leisure services (Taylor et al.,

1993). Researchers have spent considerable effort on exchanges which primarily provide

utilitarian satisfaction, but have expended much less effort on products or services which are

consumed for more hedonistic purposes (Babin et al., 1994) for extended periods of time (e.g.

Arnould and Price, 1993; Price et al., 1995). Also, Bitner (1992) thought that managers

continually plan, build, change, and control and organizations physical surroundings, but

frequently the impact of a specific design or design change on ultimate users of the facility is not

fully understood.

Since most studies continue to focus on human interactions such as those between customers

and providers, and customers with other customers (Gremler and Gwinner, 2000), the impact of

servicescapes in services is less focused. Furthermore, servicescapes of karaoke box has not been

used as an example of the relationship between servicescapes and customer satisfaction in the

previous research. A study on karaoke box servicescapes is needed for the firm to pay more

attention on its facilities provided so as to retain and attract the customers. Moreover, it can show

how servicescapes influence customer satisfaction of enjoying karaoke service as well.

3 Literature Review

3.1 Service Quality

Service can be described as intangible, heterogeneous, inseparable and perishable. Service

quality is first conceptualized and operationalized by Parasuraman, Berry and Zeithaml (1985,


P.4 of 77

1988 and 1994) in 1985. Customer service, and service quality, is now a focus for many corporate

or marketing strategy and high levels of service are typically seen as a means for an organization

to achieve a competitive advantage (Lewis, 1993). Booms and Bitner (1981) propose an expanded

marketing mix for services consisting of the four traditional elements (product, price, place,

promotion) and three new elements which are physical evidence (the physical surroundings and

all tangible cues), participants (all human actors in the service encounter including firm personnel)

and other customers. One of the elements which is physical evidence is focused in this study.

Literature suggested that customer satisfaction depends directly and most immediately on the

management and monitoring of individual service encounters (Parasuraman, Zeithaml, and Berry,

1985; Shostack, 1984, 1987; Solomon et al., 1985; Surprenant and Solomon, 1987). According to

Shostacks (1985), service encounter was defined as an a period of time during which a

consumer directly interacts with a service. His definition encompasses all aspects of a service

firm including its personnel, physical facilities and other tangible elements, with which the

consumer may interact during a given period of time.

3.2 Servicescapes

As services are produced and consumed simultaneously (Gronroos, 1984; Langeard et al.,

1981; Zeithaml, Paresuraman, and Berry, 1985), customers are in the factory, often experiencing

the total service within the firms physical facility. The factory, or the place where the service is

produced, cannot be hidden and may in fact have a strong impact on customers perceptions of the

service experience (Bitner, 1992). Since services are intangible and usually cannot be tried prior to


P.5 of 77

purchase, consumers commonly look for cues about the firms capabilities and quality (Berry and

Clark, 1986; Langeard et al., 1981; Shostack, 1977). The physical environment is rich in such

cues (Rapoort, 1982) and may be very influential in communicating the firms image and purpose

to its customers.

Servicescapes refer to the environments in which services are delivered and where the firm

and customer interact (Bitner, 1992; Zeithaml and Bitner, 1996). Physical evidence such as

environmental design, dcor, signage, and business cards/stationery send messages that help to

establish the firms image and influence the customers expectations (Baker, 1987; Booms and

Bitner, 1982; Shostack, 1977). Servicescapes are more or less consciously designed places,

calculated to produce commercially significant actions and sites for commercial exchanges.

Research suggested that the variations in physical environment can affect perceptions of an

experience independently of the actual outcome (Biggers and Pryor, 1982; Maslow and Mintz,

1956). It can aid or hinder the accomplishment of both internal organizational goals and external

marketing goals (Bitner, 1992). Servicescapes also plays a multifaceted role within the service

encounter as package, facilitator, socializer, and differentiator (Zeithaml and Bitner, 1996). As

differentiator, the servicescapes may distinguish the firm from its competitors via architectural

styling to convey the type of service it provides, or it may alter the servicescapes to reposition

itself to attract more desirable market segments (Hoffman and Bateson, 2002; Zeitharml and

Birtner, 1996). So, Bitner (1992) suggested that perceptions of the servicescapes may simply help

people to distinguish a firm by affecting how it is categorized. Base on Bitner (1992) research,


P.6 of 77

servicescapes consist of three components which are facility exterior, facility interior and other

tangibles.

Referring to the typology of service suggested by Bitner (1992) (refer to appendix Figure 1),

karaoke box belongs to interpersonal services with lean servicescapes. Selected aspects of Bitners

(1992) servicescape framework (refer to appendix Figure 2), which illustrates the relationship and

effect of servicescape on customers behavioral response, will be used in this research. A more

specific dimension of servicescapes is divided into three parts which are shown below:

(1) Ambient Conditions (i.e. weather, temperature, air quality, noise, music, odors);

(2) Spatial Layout and Functionality (i.e. the way in which equipment and furnishings are

arranged, and the ability of those items to facilitate consumers' enjoyment);

(3) Signs, Symbols and Artifacts (i.e. signage and decor used to communicate and enhance a

certain image or mood, or to direct customers to desired destinations).

In self-service settings, which own a great part of self-service, the creative use of physical

design could support particular positioning and segmentation strategies and enhance specific

marketing objectives, such as customer satisfaction and attraction (Bitner, 1992). For

interpersonal services, Bitner (1992) also suggested that both organizational and marketing

objectives could potentially be targeted through careful design of the servicescapes. Hence,

servicescapes of karaoke box play a critical role in customers mind and it is worthwhile to study

its importunacy.


P.7 of 77

3.3 Customer Satisfaction

Bitner (1990) suggested that consumers reach satisfaction decisions by comparing product or

service performance with prior expectations about how the product or service would or should

perform. These expectations are compared with actual perceptions of performance as the product

or service is consumed. If expectations exceed performance, dissatisfaction results. When

expectations are met, or when performance actually exceeds expectations, satisfaction results.

Shu, John and Victor (2002) explained that confirmation results when the actual performance

matches initial expectations. When performance exceeds or falls short of expectations, positive or

negative disconfirmation results. Positive disconfirmation leads to satisfaction or perceptions of

high service quality, while negative disconfirmation leads to dissatisfaction or perceptions of low

service quality. Research also suggested that the physical setting may also influence the

customers ultimate satisfaction with the service (Bitner, 1990; Harrell, Hutt, and Anderson,

1980).

4 Objectives of the Study

The research objective is to investigate the customer satisfaction level of different kinds of

servicescapes, which are Ambient Conditions, Spatial Layout and Functionality, Signs, Symbols

and Artifacts and Cleanliness, in karaoke box. Their subsequent repatronage intentions and

intentions to stay will also be examined. Curial servicescapes, which are used, seen or felt directly

by the consumers, influencing customer satisfaction most in the karaoke industry will be


P.8 of 77

determined so that karaoke box can focus on and do even more better in developing such

servicescapes. Recommendations are provided to improve the dissatisfy servicescapes and for

further research in the future.

5 Statement of Hypotheses

Suggested dimensions of servicescapes from Bitner (1992) are used as the factors affecting

customer perceived quality of the servicescapes. The hypothesized model is shown in the

appendix Figure 4. In this study, only curial servicescapes are examined in order to be more focus.

The details of different dimensions are defined here. Firstly, Ambient Conditions of karaoke box

including temperature, air quality, noise and lighting in the room and corridor. Secondly, Spatial

Layout includes the layout of the room, equipment, furnishings and seating comfort while

Functionality refers to the decorating system and songs. Lastly, Signs and Symbols refer to signs

and Artifacts represent the theme karaoke rooms.

H1: Ambient Conditions will have a positive effect on Overall Customer Satisfaction.

H2a: Spatial Layout will have a positive effect on Overall Customer Satisfaction. H2b: Functionality will have a positive effect on Overall Customer Satisfaction. H3a: Signs and Symbols will have a positive effect on Overall Customer Satisfaction. H3b: Artifacts will have a positive effect on Overall Customer Satisfaction.

After the spread of SARS, most of the consumers concern the cleanliness much more then

before, especially in those situations in which customers must spend several hours in the leisure

service setting (Wakefield and Blodgett, 1996). Interviewees of the focus group suggested that


P.9 of 77

many consumers implicitly associate cleanliness with the quality of the servicescapes and it will

strongly influence consumers perceptions of the service quality.

H4: Cleanliness of Servicescapes will have a positive effect on the Overall Customer Satisfaction.

Leisure services (such as theaters, recreation or health clubs, karaoke box, and sporting

events, etc.) generally require customers to spend extended periods of time in the physical

surroundings of the service provider (Turley and Fugate, 1992). In such cases, Bitner (1992)

suggest that the facilities itself, or the perceived quality of the servicescapes, may have a

substantial effect on customer satisfaction with the service experience, which in turn influences

how long they desire to stay in the leisure service setting as well as how much money they will

spend and whether they intend to repatronize the service provider (Cronin and Taylor, 1992;

Wakefield et al. 1996) (refer to appendix Figure 3). Moreover, the perceived quality of

servicescapes would be formed by the three dimensions plus Cleanliness of Servicescapes and

their effect on overall customer satisfaction is being tested.

H5: The perceived quality of the servicescapes will have a positive effect on customer satisfaction.

H6: The perceived quality of the servicescapes will have a positive effect on the length of time they desire to stay in the servicescapes.

H7: The perceived quality of the servicescapes will have a positive effect on their repatronage intentions.

H8: Customer satisfaction will have a positive relationship with desire to stay in karaoke box for longer time.

H9: Customer satisfaction will have a positive relationship with repatronage intention.


P.10 of 77

6 Methodology

6.1 Research Method

This research has two stages. Firstly, a focus group of six people, who were customers of

Neway Karaoke Box, was launched for generating initial insights in order to design the

questionnaire. It was used to understand if those dimensions of servicescapes are useful and

effective for collecting proper data which matching with the objectives. Observational research

was also conducted before designing the questionnaire. Two branches of Neway Karaoke box

(Mongkok and Aberdeen) were visited and observed for their external and internal servicescapes.

The reason for choosing these two branches because they represented two different areas which

were in busiest traffic and residential area in order to lessen the discrepancy and enhance the

reliability of the research. Base on the focus group, Prat Avenue Branch was regarded as the most

impressing branch. So, it also been observed. The main servicescapes dimensions of karaoke box

were drawn out afterward for the questionnaire. Secondly, quantitative research as well as

self-administrated questionnaire with Likert Scale questions was applied in this study as it could

be easily control and collect data more properly.

6.2 Instrument and Sample Size

6.2.1 Instrument and Questionnaire Design

The questionnaire consisted of 49 statements for Servicescapes, Customer Satisfaction,

Repatronage Intention and Intention to Stay for Longer Time. For those 7 closed-end questions,

they were used for finding consumers characteristics and consumption background. All of the


P.11 of 77

statement questions were 7-point Likert Scale questions which represent respondents agree or

disagree level towards karaoke box servicescapes.

The questions of servicescapes were developed base on the extracted dimensions of Bitners

(1992) servicescapes framework (refer to appendix Figure 3). Ambient Conditions were examined

by questions form 5 to 12; Spatial Layout and Functionality were tested by questions form 13 to

30; Signs, Symbols and Artifacts were presented by questions form 31 to 37; and questions form

38 to 40 represented Cleanliness of Servicescapes. All of these questions were designed according

to the observation (refer to appendix Observation) and insights form focus group (refer to

appendix Focus Group Script). They had not been used in the past since there was no pervious

research conducted about the servicescapes of karaoke box.

In terms of the questions testing respondents satisfaction level, pervious scales (Westbrook

and Oliver, 1981) had been used as part of the questions. As pervious scales were not suitable for

this research structure very well, some more new questions were added eventually. Questions

form 41 to 45 illustrated Customer Satisfaction; questions form 46 to 49 examined Intention to

Stay for Longer Time; and Repatronage Intention was tested by questions form 50 to 53.

6.2.2 Sampling

Judgment sampling of nonprobability sampling was carried out. Interviewees were selected.

Since elderly and children would not visit karaoke box frequently, they were not the target

respondents of this research. Teenagers and middle aged consumers which aged between 15 to 40

were target respondents. Structured questionnaires were distributed to 207 customers by


P.12 of 77

face-to-face person administrated survey format outside four Neway karaoke box branches. They

were located in Causeway Bay Plaza and Mongkok Argyle Centre which were in the busiest

traffic; Shatin Belair Garden and Aberdeen Centre which were in the New Territories and

suburban residential areas so as to obtain data form people of different demographic backgrounds

(e.g. gender, ages and income level). The respondents were interviewed right after patronized the

karaoke box so that they had a fresh memories about the servicescapes they had just experienced.

6.3 Data Analysis Method

The program of SPSS was employed for analyzing the collected data. Demographic data

used to show the characteristics of the respondents. The rating of servicescapes dimensions and

customer satisfaction level were also computerized. Factor analysis and reliability test were

applied for evaluating the validity as well as reliability of the statements. Besides, multiple

regressions were used as well for determining the relationship of the servicescapes dimensions

(independent variable) with customer satisfaction (dependent variable). Further investigation

about which dimensions of servicescapes influenced customers satisfaction most as well as the

intention to stay and repatronage were also determined. Lastly, correlation test was run for

determining the relationship between customer satisfaction, repatronage intention and desire to

stay for longer time.


P.13 of 77

7 Findings and Analysis

7.1 Demographic and Consumption Characteristics

According to Table 1, demographic characteristics and consumption background of the

respondents were shown clearly. Totally 207 respondents, including 68.6% female and 31.4%

male, provided their opinions. People from age group 15 to 20 and 21 to 25, which were 42.5%

and 48.3% respectively, dominated a large percentage of the sample. A majority (65.2%) of their

income level per month was $2,000 or below and other 20.3% was ranged from $2,001 to $6,000.

Only a total of 14.5% of the sample earned more than $6,000 per month.

Respondents who patronized Neway Karaoke Box less than one time averagely in a month

were 40.1% while 39.6 % of them at least visit one to two times a month. Total of 20.3 %

respondents patronized Neway Karaoke box more than twice a month. About half of the

respondents, 54.6%, visited Neway during lunch time which was around 10:00 to 14:00. Both

happy hour and dinner time slot dominated 19.8% of the sample equally. Few respondents (5.8%)

went to karaoke box during mid-night. For how long they stayed in the karaoke box, most people

(42.5%) normally stayed around two to three hours. Another 38.2% of respondents stayed about

three to four hours every time and 10.1% of them even stayed longer for more than four hours.

The data indicated that the respondents at least stayed in the karaoke box for an hour and 9.2%

stayed from one hour up to two hours.


P.14 of 77

Demographic Consumption Characteristics

Item Data % Item Data %

Male 31.4 Less than 1 time 40.1 Gender Female 68.6 1-2 times 39.6

15-20 42.5 3-4 times 11.1 21-25 48.3

Patronage

Frequency

per month More than 4 times 9.2

26-30 5.8 Lunch (10:00-14:00) 54.6 31-35 1.9 Happy Hour (14:00-18:00) 19.8

Age

36-40 1.4 Dinner (18:00-00:00) 19.8

$2,000 or below 65.2

Time slot

mostly

patronize Mid-night (00:00-06:00) 5.8

$2,001-$6,000 20.3 Less than 1 hour 0 $6,001-$10,000 6.3 1-2 hours 9.2

$10,01-$14,000 2.4 2-3 hours 42.5

$14,001-$18,000 0 3-4 hours 38.2

$18,001-$22,000 1.0 More than 4 hours 10.1

Income

Level

More than $22,000 4.8

Staying

time in

every

patronize

[Table 1] Demographic and Consumption Characteristics of the respondents

7.2 Factor Analysis

7.2.1 Factor Analysis on Servicescapes

The principle component factor analysis with varimax was conducted on 36 statements. After

deleting 9 cross loading items, 27 items left and split into eight factors instead of four original

dimensions. Songs in Functionality; Layout of Rooms, Equipment, Furnishings and Sitting

Comfort in Spatial Layout; Lighting and Temperature in Ambient Conditions; Cleanliness of

Servicescapes; Air Quality and Noise in Ambient Conditions; Signs and Symbols; Theme Karaoke

Room in Artifacts; and Decorating System in Functionality were the eight factors. The results of

Kaiser-Meyer-Olkin Measure of Sampling Adequacy (0.735), Bartletts Test of Spericity

(2550.798) and Significance (0.000) revealed that the factor analysis method was appropriate. The

total variance of the items was 68.788% and the overall reliability of the factors was 0.849. All

factors had eigenvalue greater than 1.0 so that the subsequent analysis which was multiple


P.15 of 77

regressions and correlation could be conducted.

Kaiser-Meyer-Olkin Measure of Sampling Adequacy = 0.735

Test of Spericity = 2550.798

Significance = 0.000

Overall Reliability Coefficient Alpha = 0.849

Factor 1 Functionality (Songs) Loading Mean Factor Mean

29. Many new songs 0.896 3.19

28. New songs are available quickly 0.875 3.18

30. New songs are trendy 0.870 3.04

27. Varity of songs for me to choose 0.727 3.20

3.15

(2nd)

Reliability Coefficient Alpha = 0.887

Eigenvalue = 5.976 , Variance explained = 22.135%

Factor 2 Spatial Layout (Layout of Rooms, Equipment, Furnishings

and Sitting Comfort) Loading Mean Factor Mean

19. Sufficient seats inside the rooms 0.764 3.70

14. Layout of rooms is convenient to customers 0.688 4.21

13. Size of room assigned is large enough for the numbers of customers 0.672 4.12

20. Size of television screen inside the rooms is appropriate 0.607 3.81

15. Table size and height inside the rooms is appropriate 0.601 4.20

18. Seats in rooms are very comfortable 0.599 3.89

3.99

(5th)



Factor 3 Ambient Conditions (Lighting and Temperature) Loading Mean Factor Mean

07. Sufficient lighting in lobby 0.776 2.94

08. Sufficient lighting in rooms 0.725 3.09

09. Button for adjusting lighting in rooms helps to enhance the

atmosphere 0.648 2.52

05. Temperature of lobby is appropriate 0.642 3.40

06. Temperature inside the rooms is appropriate 0.597 3.70

3.13

(1st)



Factor 4 Cleanliness of Servicescapes Loading Mean Factor Mean

39. Corridor is clean and hygiene 0.802 4.00

40. Facilities inside the rooms are clean and hygiene 0.734 4.03

38. Nuts and snacks pack individually provides me a hygiene impression 0.643 3.40

3.81

(4th)



Factor 5 Ambient Conditions (Air Quality and Noise) Loading Mean Factor Mean

11. Rooms are always full of tobacco smell or odor 0.799 5.42

10. Air quality is bad in rooms 0.756 5.19

5.27

(6th)


P.16 of 77

12. Insufficient sound arrester among rooms 0.688 5.20



Factor 6 Signs and Symbols Loading Mean Factor Mean

33. Sufficient signs / route signs (e.g. Toilet signs) 0.882 3.64

34. Signs / route signs can be easily understand 0.871 3.61

3.63

(3rd) Reliability Coefficient Alpha = 0.863


Factor 7 Artifacts (Theme Karaoke Room) Loading Mean Factor Mean

37. Layout of theme karaoke rooms make me sing happier 0.920 3.92

36. Layout of theme karaoke rooms rise my intention to sing 0.892 4.06

3.99

(5th) Reliability Coefficient Alpha = 0.905


Factor 8 Functionality (Decorating System) Loading Mean Factor Mean

25. Remote control is user-friendly 0.871 3.26

24. Decorating system is user-friendly 0.831 3.01

3.13

(1st) Reliability Coefficient Alpha = 0.868


[Table 2] Factors Extracted of Servicescapes

Factor mean represented the preferences of the respondents about the servicescapes. The

eight items in ascending order of the mean score are Ambient Conditions (Lighting and

Temperature) (3.13), Functionality (Decorating System) (3.13), Functionality (Songs) (3.15),

Signs and Symbols (3.63), Cleanliness of Servicescapes (3.81), Spatial Layout (Layout of Rooms,

Equipment, Furnishings and Seating Comfort) (3.99), Artifacts (Theme Karaoke Room) (3.99)

and Ambient Environment (Air Quality and Noise) (5.27).

Factor 1, known as Songs of Functionality, contained of four items. The items were Many

new songs (0.896), New songs are available quickly (0.875), New songs are trendy (0.870) and

Varity of songs for me to choose (0.727). Their reliability alpha was 0.887 and explained variance

was 22.135%. The factor mean of 3.15 meaning that Songs in Functionality was the second

dimension of servicescapes which respondents perceived was good.


P.17 of 77

Factor 2 namely Spatial Layout (Layout of Rooms, Equipment, Furnishings and Seating

Comfort) consisted of six items. The items about the Layout of Rooms were Sufficient seats

inside the rooms (0.764), Layout of rooms is convenient to customers (0.688), Size of room

assigned is large enough for the numbers of customers (0.672) and Table size and height inside the

rooms is appropriate (0.601). For the items about Equipment was Size of television screen inside

the rooms is appropriate (0.607). Seats in rooms are very comfortable (0.599) related to sitting

comfort. The reliability alpha was 0.790 while variance explained is equal to 10.211%. This factor

mean was scored the fifth high score (3.99) meaning that the respondents were almost neutral

towards the quality of Spatial Layout.

Factor 3 consisted of five items and regarded as Ambient Conditions (Lighting and

Temperature). Sufficient lighting in lobby (0.776), Sufficient lighting in rooms (0.725) and Button

for adjusting lighting in rooms helps to enhance the atmosphere (0.648) referred to the Lighting

whereas Temperature of lobby is appropriate (0.642) and Temperature inside the rooms is

appropriate (0.597) portrayed Temperature of Ambient Conditions. The reliability alpha was 0.728

and explained variance was 8.215%. This factor owned the lowest factor mean (3.13) so that

respondents this factor was the best that Neway perform.

Factor 4 was about Cleanliness of Servicescapes with three items. Corridor is clean and

hygiene (0.802), Facilities inside the rooms are clean and hygiene (0.734) and Nuts and snacks

pack individually provides me a hygiene impression (0.643) gained the fourth low score of factor

mean (3.81). The factor reliability alpha was 0.754 and explained variance was 7.311%.


P.18 of 77

Factor 5 corresponded to Ambient Conditions and consisted of three items. Rooms are

always full of tobacco smell or odor (0.799) and Air quality is bad in rooms (0.756) were used to

indicate the Air Quality while Insufficient sound arrester among rooms (0.688) illustrated the

Noise. Reliability alpha and explained variance were 0.688 and 6.752% respectively. This factor

has the highest factor mean (5.27) so that most of the respondents were slightly disagree that

Neway did well in this dimension.

Factor 6 referred to Signs and Symbols containing two items. Both of Sufficient signs / route

signs (0.882) and Signs / route signs can be easily understand (0.871) were used to interpret this

factor. Reliability Alpha is 0.863 and explained variance is 5.809%. The factor mean was 3.63

which was the third low score.

Factor 7 was indicating Artifacts with two items about Theme Karaoke Room. Layout of

theme karaoke rooms make me sing happier (0.920) and Layout of theme karaoke rooms raise my

intention to sing (0.892) represented this factor. They contributed to a high factor mean (3.99)

which was the second high among the other factors. It revealed that respondents were almost

neutral towards the theme karaoke room. Its reliability is high (alpha = 0.905) and the explained

variance is 4.207%.

Factor 8 showed the Functionality about Decoration System by two items. One was Remote

control is user-friendly (0.871) and another was Decorating system is user-friendly (0.831). Its

reliability alpha was equal to 0.868 and explained variance was 4.147%. It factor mean was as low

as Factor 3 did, only had 3.13. So, the respondents agreed that Neway did well in its decorating


P.19 of 77

System.

7.2.2 Factor Analysis on Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention

The principle component factor analysis with varimax was applied on 13 items as

servicescapes did. Five cross loading items were deleted while eight items remained and divided

into three factors. Three factors of Overall Customer Satisfaction, which were Customer

Satisfaction, Repatronage Intention and Desire to stay for longer time, were shown in Table 3. The

result of Kaiser-Meyer-Olkin Measure of Sampling Adequacy was 0.854, Bartletts Test of

Sphericity was 851.275 and Significance was 0.000. These results implied that the data was

adequate for conducting factor analysis and the results were significance. Hence, factor analysis

method was appropriate. The total variance of the items was 78.627% and the overall reliability of

the factors was 0.860. Two factors had eigenvalue greater than 1.0, but one was nearly score 1.0

(Desire to Stay for Longer Time). This factor was kept since it was important to the research

construct and its eigenvalue was not far below the standard of 1.0. So, the subsequent analyses

which were multiple regression and correlation could be conducted.

Kaiser-Meyer-Olkin Measure of Sampling Adequacy = 0.854

Bartletts Test of Spericity = 851.275

Significance = 0.000

Overall Reliability Coefficient Alpha = 0.860

Factor 1 Customer Satisfaction Loading Mean Factor Mean

42. I am satisfied with the facilities of Neway 0.835 3.74

43. My confident towards Neway is enhanced by its facilities 0.825 3.53

41. I think Neway facilities are excellent 0.774 3.66

3.64

(2nd)



Factor 2 Repatronage Intention Loading Mean Factor Mean

53. It is a wrong choice of patronage Neway Karaoke Box 0.835 2.91 3.00


P.20 of 77

50. I will repatronage Neway Karaoke Box 0.792 2.93

52. I will think of Neway when I want to go to karaoke box 0.772 3.16


Eigenvalue =1.094 , Variance explained = 13.672%

Factor 3 Desire to stay for longer time Loading Mean Factor Mean

49. Neway Karaoke Box is the best choice for consuming time 0.864 4.37

48. I intent to stay for longer time in Neway Karaoke Box 0.767 4.24

4.31

(3st) Reliability Coefficient Alpha = 0.648


[Table 3] Factors Extracted of Customer Satisfaction, Desire to Stay for Longer Time and

Repatronage Intention

Factor 1 was Customer Satisfaction consisting of three statements which were I am satisfied

with the facilities of Neway (0.835), My confident towards Neway is enhanced by its facilities

(0.825) and I think Neway facilities are excellent (0.774). The overall reliability alpha was 0.911

and explained 53.015% of the variance. The factor mean was 3.64 denoted that Customer

Satisfaction was ranked the second in respondents intention of being satisfy to the karaoke box.

Factor 2 was named Repatronage Intention. It involved three items including it is a wrong

choice of patronage Neway Karaoke Box (0.835), I will repatronage Neway Karaoke Box (0.792)

and I will think of Neway when I want to go to karaoke box (0.772). It revealed that the overall

reliability alpha is 0.814 and the variance explained is 13.672%. The factor was ranked the first on

its factor mean (3.00) compare with other factors suggested that respondents agreed with this

factor. It implied that they agreed that they would repatronage in order to show their satisfaction.

Factor 3 was called Desire to stay for longer time and it comprised of two statements which

were Neway Karaoke Box is the best choice for consuming time (0.864) and I intent to stay for

longer time in Neway Karaoke Box (0.767). It expressed that the reliability alpha of this factor


P.21 of 77

was 0.648 and the explained variance was 11.940%. The factor mean (4.31) presumed that

respondents considered this factor as the last important one representing customer satisfaction. No

matter they satisfied or not, they were not intended to stay for longer in the karaoke box.

7.3 Reliability Test

Reliability test was conducted in both servicescapes dimensions and overall customer

satisfaction in order to prove their reliability for further analysis. Apart from Factor 5 in

servicescapes and Factor 3 in overall customer satisfaction, all of the factors were reliable

(Cronbach alpha Reliability > 0.70). So, the reliable factors were internally consistent. For the

dimension which was lower than 0.70 in servicescapes, it would still be kept. Base on the Table 2,

Factor 5 was a sub-dimensions of Ambient Conditions and the average reliability of both Ambient

Conditions Factor 3 and Factor 5 was larger than 0.70 (alpha = 0.708). For the other factor which

had low reliability in overall customer satisfaction was also decided to keep in the research since

the deletion of this factor would lead to significant decline in the variance and affect the construct.

7.4 Multiple Regressions

The multiple regressions were used to find out the relationship among eight servicescapes

dimensions (independent variable) and Overall Customer Satisfaction (dependent variable). Their

relationship with Customer Satisfaction, Desire to Stay for Longer Time and Repatronage

Intention would further investigate.

7.4.1 Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction

Since each dimension of servicescapes had divided into few categories to investigate which


P.22 of 77

servicescapes influenced customers most, multiple regressions were conducted by using eight

servicescapes dimensions as independent variables. The results showed in Table 5 implied that all

dimensions are significant (Sig. T < 0.05) excepting Functionality (Decorating System) (Sig. T =

0.05) and 46% of the variance in Overall Customer Satisfaction was explained by the five

dimensions (Adjusted R Square = 0.460). Cleanliness of Servicescapes scored highest (Beta =

0.386) among other dimensions as pervious did. The second high score was Functionality (Songs)

(Beta = 0.234) and then Artifacts (Theme Karaoke Rooms) (Beta = 0.212). Therefore, Cleanliness

of Servicescapes owned the strongest relation with Overall Customer Satisfaction.

Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction

Dimensions B Beta Sig.T

Ambient Conditions (Lighting and Temperature) 0.212 0.188 0.001*

Ambient Conditions (Air Quality and Noise) / 0.111 0.036*

Spatial Layout (Layout of Rooms, Equipment, Furnishings and

Sitting Comfort) / 0.125 0.029*

Functionality (Songs) 0.213 0.234 0.000*

Functionality (Decorating System) / 0.109 0.050

Signs and Symbols (Signs) / 0.118 0.030*

Artifacts (Theme Karaoke Rooms) 0.154 0.212 0.000*

Cleanliness of Servicescapes 0.307 0.386 0.000*

Adjusted R Square = 0.460 *p < 0.05

[Table 5] Relationship among Eight Servicescapes Dimensions and Overall Customer Satisfaction

7.4.2 Relationship among Eight Servicescapes Dimensions and Customer Satisfaction, Desire to Stay for Longer Time and Repatronage Intention

The dimensions of Overall Customer satisfaction were also tested and the results were

displayed in Table 6. The eight dimensions explained 46.5% of variance in Customer Satisfaction,

38.6% of variance in Repatronage Intention and 17.9% of variance in Desire to Stay for Longer


P.23 of 77

Time. Cleanliness of Servicescapes was largely affected both Customer Satisfaction (Beta = 0.500)

and Repatronage Intention (Beta = 0.406) as it had a strong association with them. Yet, Theme

Karaoke Rooms of Artifacts had the strongest association (Beta = 0.325) with Desire to Stay for

Longer Time. It implied that Theme Karaoke Rooms attracted customers to stay longer in the

karaoke box.

Relationship among Eight Servicescapes Dimensions and Customer Satisfaction


Ambient Conditions (Lighting and Temperature) / 0.110 0.043*



Sitting Comfort) 0.210 0.188 0.001*

Functionality (Songs) 0.214 0.214 0.000*


Signs and Symbols (Signs) / 0.056 0.303

Artifacts (Theme Karaoke Rooms) / 0.066 0.236



Relationship among Eight Servicescapes Dimensions and Repatronage Intention


Ambient Conditions (Lighting and Temperature) 0.327 0.228 0.000*

Ambient Conditions (Air Quality and Noise) / 0.044 0.436


Sitting Comfort) / 0.091 0.132

Functionality(Songs) 0.272 0.234 0.000*


Signs and Symbols (Signs) / 0.042 0.475

Artifacts (Theme Karaoke Rooms) / 0.101 0.088



Relationship among Eight Servicescapes Sub-dimensions and Desire to Stay for Longer Time


Ambient Conditions (Lighting and Temperature) / 0.137 0.032*



Sitting Comfort) / 0.097 0.150


P.24 of 77

Functionality(Songs) / 0.118 0.069


Signs and Symbols (Signs) 0.258 0.229 0.000*

Artifacts (Theme Karaoke Rooms) 0.314 0.325 0.000*

Cleanliness of Servicescapes / 0.115 0.101


[Table 6] Relationship among Eight Servicescapes Dimensions and Dimensions of Overall

Customer Satisfaction

7.5 Correlations

According to Table 7, Customer Satisfaction had a positive relationship with Repatronage

Intention (Pearson Correlation = 0.555) and Desire to Stay for Longer Time (Pearson Correlation

= 0.439). Both of them were significant (Sig. < 0.01).

Correlation Items Pearson Correlation Sig.

Customer Satisfaction and Repatronage Intention 0.555 0.000*

Customer Satisfaction and Desire to Stay for Longer Time 0.439 0.000*

*Correlation is significant at the 0.01 level

[Table 7] Correlation between Customer Satisfaction, Repatronage Intention and Desire to

Stay for Longer Time

8 Discussions of the Findings and Analysis

On the eleven hypotheses, seven were upheld ( H1, H2a, H3a, H3b, H4, H8 and H9), and

four were not statistically significant (H2b, H5, H6 and H7). Referring to Table 5, the significant

level of all dimensions was within the range (p < 0.05) except the Decorating System in

Functionality, that was the reason why H2b was not supported. H2b, which was Functionality,

included Songs and Decorating System. The dimension of Songs played a secondly important role

in Overall Customer Satisfaction (Beta = 0.234) and had satisfy significant level (sig. = 0.000).

The significant level of Decorating System was nearly satisfied (sig. = 0.05). When combining


P.25 of 77

both dimensions, H2a and H2b were also upheld as the significant level was satisfied.

Undoubtedly, Cleanliness influenced Overall Customer Satisfaction most and Ambient Conditions

also had a positive effect on it so that H4 and H1 were also upheld. Although the relationship of

Spatial Layout, Signs, Symbols and Artifacts were not had the strongest association with Overall

Customer Satisfaction, it still had a positive relationship effect on it and therefore, H3a and H3b

were supported.

From Table 6, H5, H6 and H7 were only partially supported since some of the dimensions

were not statistically significant. For the relationship among Perceived Quality of Servicescapes

and Customer Satisfaction, Ambient Conditions, Spatial Layout, Songs in Functionality and

Cleanliness were statistically significant. In the results of relationship among Perceived Quality of

Servicescapes and Repatronage Intention, the Lighting and Temperature in Ambient Conditions,

Songs of Functionality and Cleanliness were statistically significant. The results showed that

Cleanliness of Servicescapes (Beta = 0.500 and 0.406) influenced both Customer Satisfaction and

Repatronage Intention most and following was Songs of Functionality (Beta = 0.214 and 0.234).

A greatly different result was indicated by the relationship among the Perceived Quality of

Servicescapes and Desire to Stay for Longer Time. Ambient Conditions, Signs and Symbols and

Artifacts were statistically significant where the theme karaoke room of Artifacts influenced

customer length of staying in the karaoke box most.

H5, H6 and H7 were just partially supported because the Perceived Quality of Servicescapes

influenced entire Overall Customer Satisfaction at the same time but not only one of the


P.26 of 77

dimensions. When combined three dimensions of Overall Customer Satisfaction, H1, H2a, H2b,

H3a, H3b and H4 were all upheld. So, further investigation about which dimension of

servicescapes affect most had been done in this research. Consistency also existed in the results

for proving H5, H6 and H7. The significant level of the most influential dimension was also

satisfied. Cleanliness of Servicescapes was the most influential dimension towards both Customer

Satisfaction and Repatronage Intention and it got a proper significant level (Sig. = 0.000). Theme

Karaoke Room of Artifacts also was a dimension which influenced customer desire to stay

intention most and with a good significant level (Sig. = 0.000). Moreover, after the dimensions of

servicescapes were further divided, there were no similar pervious research proved that the

Perceived Quality of Servicescapes must have a positive effect on the three dimensions of Overall

Customer Satisfaction. So, partially rejection of hypotheses was reasonable. Yet, it would not

affect the implications of this study even though the hypotheses were not supported.

Since H8 and H9 were supported, there was a positive relationship between Customer

Satisfaction with Repatronage Intention and Desire to Stay for Longer Time. The results showed

that the correlation between Customer Satisfaction with Repatronage Intention (0.555) was

stronger than with Desire to Stay for Longer Time (0.439).

It matched with the pervious research which suggested that customer satisfaction in turn

influenced how long customer desire to stay in the leisure service setting as well as if they

intended to repatronize the same service (Bitner, 1992; Cronin and Taylor, 1992; Wakefield et al.

1996). So, pervious research supported these hypotheses.


P.27 of 77

9 Implications and Recommendations

9.1 Dimensions of Servicescapes

The original four dimensions of servicescapes were too general. After running the factor

analysis, four dimensions were further divided into eight dimensions and each dimension

represented one or few important servicescapes in karaoke box. Air quality and noise in Ambient

Conditions scored the highest among other dimensions. It implied that customers dissatisfy with

the air quality in Neway Karaoke Box and they also thought that it was very noisy in the room as

the sound arrester installed between the rooms were not good enough. By referring to the

demographic data, most of the customers at least stayed in the rooms for around two to three

hours, bad air quality might lessen their happiness for enjoying the services and also the noise

might cause them frustrated. Neway should put some efforts to improve this situation by the

following suggested methods:

(1) Installing air purifier in rooms for purification in stead of just installing air freshener;

(2) Staff should also clean up the rooms immediately right after customers left;

(3) Some rooms should be separated as non-smoking rooms and these rooms will never full

of tobacco smell;

(4) Rooms with different aromatherapy can be provided for customers to choose.

Aromatherapy can help people relax and enjoy their singing in rooms. However, staff

should make sure that customers like this kind of smell before assigning this kind of

rooms to them.


P.28 of 77

Although Spatial Layout and Artifacts were ranked the fifth by the customers, it factor mean

score was 3.99. So, customers tended to neutral for the layout of rooms like number of seat was

sufficient, the table size was appropriate and the television equipment was appropriate. To see in

details, they were slightly dissatisfied with the Layout and size of rooms as well as the table size.

It pointed out that there was a room for Neway to do improvement so as to provide a convenient

condition for the customers to enjoy the service. Artifacts corresponded to theme karaoke room

also scored the fifth lowest factor mean. It illustrated that respondents were tended to have no idea

towards the Theme Karaoke Room. Most of the customers were neutral towards whether the

layout and decoration of theme karaoke room would bust their intention to sing and made them

felt happier. However, theme karaoke room greatly influenced the customer intention of staying

longer in karaoke box by referring to the results of multiple regressions. It proved that theme

karaoke room was quite successful in pleasing the customers. In this way, Neway should extend

the number of theme karaoke rooms in different branches. Variety of theme karaoke room should

be adopted as an interviewee suggested in focus group (refer to appendix Focus Group Script).

Once they have a memorable impression, they will think of Neway as they want to go to karaoke

box.

Cleanliness of servicescapes was regarded as the fourth lowest mean dimensions (3.81) in

customers mind. It illustrated that they were slight agreed that the facilities of Neway were clean.

Although they had not idea on its cleanliness of facilities but they did not think its facilities were

dirty. They believed that snacks with individual packing provided them a hygiene impression. It


P.29 of 77

manifested that the efforts Neway did after SARS outbreak were quite good. A clean and hygiene

perception started to build up in customers mind. The individually packing nuts and snacks also

provided a hygiene impression to customers. The factor was played an essential effect on

Customer Satisfaction and Repatronage Intention. Thus, Neway should keep on doing this and

maintain the hygiene environment in every branch.

In terms of Signs and Symbols, it was the third item that customers satisfied with. They

slightly agreed that the signs shown in Neway were sufficient, clear and easily understand. Neway

should have to make some improvement so that customers would state that they were strongly

satisfied afterward.

Songs in Functionality was ranked the second satisfy dimension meaning that customers

were satisfied with the songs which Neway offered. They perceived that many songs were

provided by Neway quickly and they were quite trendy. Even though customers were satisfied

with this factor, it was not ranked high among the others. Most importantly, songs influenced both

Customer Satisfaction and their Repatronage Intention very much. Neway should alter this factor

and try to acquire the new songs more quickly. It revealed that song was a crucial element for

maintaining Neways dominant role among its competitors in the industry.

The most satisfy factors were Decorating System in Functionality and Lighting and

Temperature in Ambient Conditions. Their factor mean was 3.13 represented that customers

satisfied with these two factors. They agreed that lighting and temperature were appropriate and

the decorating system was user-friendly. Consequently, Neway should keep all the satisfy factors


P.30 of 77

for maintaining its service quality. These dimensions contributed to a good perceived quality of

servicescapes among customers mind.

Actually, all eight dimensions affected customer satisfaction as the same time. Neway should

consider all servicescapes dimensions simultaneously for being the best Karaoke Box in Hong

Kong. Neway can follow the importance of dimensions form the research findings and

concentrate on its servicescapes step by step base on the priority. The air quality and noise

problems ought to be improved promptly. Obviously, cleanliness was regarded as the most crucial

elements associated with customer satisfaction. So, Neway should put cleanliness as a first

priority. In order to retain customers to stay longer in the karaoke box, Neway should set a plan to

redecorate its rooms as theme karaoke room. If Neway aim at increasing the repatronage rate,

cleanliness as well as the songs should be concerned. It should try to purchase more new and

trendy songs so as to attract the customers come and patronize again. It was not meaning that

other dimensions could be ignored. It rather demonstrated that if a company wanted to success, it

should utilize the limited resources and tried to gain the maximum profit as well as customer

satisfaction.

9.2 The Role of Servicescapes Play in Customer

Satisfaction

The case of Neway Kaoraoke Box provided a concrete model to see how servicescapes

affected customer satisfaction. According to the statistics, a strong correlation was formed

between the servicescapes and customer satisfaction. Most of the firms just focused on performing


P.31 of 77

better in their intangible services. However, they forgot that servicescapes (tangible element) were

included in the services encounter and even the entire experience of the customers. At the time the

firms improving their staff quality, they neglected an important factors which were actually easy

to achieve and satisfy the customers. Servicescapes were treated as controllable factors than the

services quality perform by staff. Servicescapes, as physical evidences, always evaluate by

customers when they saw and felt it right after they entered the service setting. Bitner (1992) also

suggested that perceptions of the servicescapes might simply helped people to distinguish a firm

by affecting how it was categorized. If firm do better in servicescapes, it helps to give a good

impression to customers and their overall perception towards the services will be enhanced. In

karaoke industry, better quality of servicescapes means better customer satisfaction as customers

have to involve in the services by themselves and most of the parts are self service.

9.3 Importance of Customer Satisfaction

Customer satisfaction was very important for many businesses. This relationship had been

proved in this study. So, once customers are satisfy with the servicescapes, they will satisfy with

the overall services. Then, their repatronage intention will be enlarged and yet they will stay

longer. If a firms can remain customers to stay longer, it will have more changes to do further

business. In addition, the cost of keeping a loyal customer is cheaper than attracting a new

customer. Repatronize seems like helping the firm to reduce its cost. That is why maintaining

customer satisfaction is so important.


P.32 of 77

9.4 Implications for Research

This study was successfully determined which servicescapes were essential for the customer

satisfaction. Details of servicescapes in each dimension were defined in various servicescapes. It

also proved that pervious construct about the relationship between servicescapes and customer

satisfaction was established and part of the hypotheses was satisfied. Hence, the conceptual

framework will be helpful for further in-depth research. As there are still some servicescapes have

not been evaluated, future research can further investigate. Likewise, the association between

servicescapes and other factors can also be studied such as customer loyalty.

10 Limitations

Even though the research seems very successful, there were still many uncontrollable factors

causing error or bias and therefore impacting the research results. These limitations were being

lessened as possible.

Firstly, in terms of the sample, a small sample size was hard to represent the opinions of the

large customer traffic (10 millions in Year 2002) of Neway Karaoke Box (Neway Karaoke Box,

n.d.a.). Besides, only 15 to 40 year old people were accepted as a respondent not only neglected

part of the karaoke box consumers opinions, but might also cause bias in the results. The

distribution of the questionnaire should be outside every branch in order to lessen the discrepancy,

but the questionnaires were just only conducted outside four branches. Moreover, judgment

sampling was carried out, the research might not representative.


P.33 of 77

Regarding to the instrument used in this research, 7-point Likert Scale questions were used.

Central tendency problem was caused and the results might not be so representative and accurate

for indicating the problems rose. Furthermore, the questions in the questionnaires were not

followed the previous research questionnaires. The validity and reliability of the statements would

be doubt and that why factor analysis and reliability test were conducted.

Considering to the literature review, there was no pervious research done on karaoke box

servicescapes and customer satisfaction. The model creation just followed the relevant research by

extracting parts of their structure as this research model. Therefore, the three dimensions of

servicescapes including Ambient Environment, Spatial Layout and Functionality and Signs,

Symbols and Artifacts might not be so appropriate for measuring karaoke box servicescapes. Even

if some adjustment had been made in order to build up a tailor-made model for this research, not

all the servicescapes could include in the model. So, some less important servicescapes had been

excluded. Notwithstanding, the excluding servicescapes might also play an influential role in

customer satisfaction. Therefore, further study about this topic was needed in order to compensate

the defects of this study.

11 Conclusion

The dimensions of servicescapes were very useful for indicating customer satisfaction and it

also had a strong relationship with repatronage intention. Among the four major dimensions and

the sub-dimensions of servicescapes, cleanliness of servicescapes was also prominent. It used to


P.34 of 77

remind that people perceived karaoke box as an unclean service setting. By changing the bad

perception, cleanliness environment should be maintained in karaoke box. It is worthwhile to

channel more resources for keeping the environment clean as it had a great effect on customer

satisfaction. Although there were some limitation in this research, the servicescapes model could

be further investigate and examine in the future.


P.35 of 77

References Arnould, E. and Price, L.L. (1993), River magic: extraordinary experience and the extended service encounter, in Journal of Consumer Research, Vol. 20, June, pp. 24-44.

Babin, B.J., Darden, W.R. and Griffin, M. (1994), Work and/or fun: measuring hedonic and utilitarian shopping value, in Journal of Consumer Research, Vol. 20, March, pp. 644-56.

Baker, Julie (1987), The Role of Environment in Marketing Services: The Consumer Perspevtive, in The Services Challenge: Integration for Competitive Advantage, John A. Czepiel, Carole A. Congram, and James Shanahan, eds. Chicago: American Marketing Association, 79-84.

Berry, L.L. and Clark, T. (1986), Four ways to make services more tangible, in Business, October-December, pp.53-4.

Biggers, Thompson and Bert Pryor (1982), Attitude Change: A Function od the Emotion-Eliciting Qualities of Environment, in Personality and Social Psychology Bulletin, 8 (March), 94-9.

Bitner, Mary Jo (1992), Servicescape:the impact of physical surroundings on customers and employees, in Journal of Marketing, Vol.56, April, pp. 57-71.

Bitner, Mary Jo (Apr 1990), Evaluating Service Encounters: The Effects Of Physical Surroundings and Emplouee Responses, in Journal of Marketing, 54, 2; ABI/INFORM Global, pg. 69.

Booms, Bernard H. and Mary J. Bitner (1981), Marketing Strategies and Organization Structures for Service Firms, in Marketing of Services, James H. Donnelly and William R. George, eds. Chicago: American Marketing Association, 47-52. Booms, Bernard H. and Mary J. Bitner (1982), Marketing Services by Managing the Enviornment, in Cornell Hotel and Restaurant Administration Quarterly, 23 (May), 35-9. Cronin, J.J. and Yaylor, S.A. (1992), Measuring Service Quality: A Reexamination and Extension, in Journal of Marketing, Vol. 56, July, pp. 55-68. Gremler, D. and Gwinner, K.P. (2000), Customer service rapport in service relationships, in Journal of Services Research, Vol 3, August, pp. 82-104. Gronroos, Christian (1984), A Service Quality Model and Its Marketing Implications, in European Journal of Marketing, 18 (4), 36-44.


P.36 of 77

Harrell, Gilbert D. and Jamecs C. Anderson (1980), Path Analysis of Buyer Behavior Under Conditions of Crowding, in Journal of Marketing Research, 17 (February), 45-51. Hoffman, K.D. and Bateson, J.E.G. (2002), Essentials of Services Marketing, in 2nd ed., Harcourt College Publishers, Fort Worth, TX. Langeard, Eric, John E. G. Bateson, Christopher Lovelock, and Pierre Eigler (1981), Services Marketing: New Insights from Consumers and Managers, in Marketing Science Institute, Report No. 81-104. Lewis, Barbara R (1993), Service quality measurement, in Marketing Intelligence & Planning, 11, 4; ABI/INFORM Global, pg. 4. Lewis, Barbara R, Service quality measurement, in Marketing Intelligence & Planning; 1993; 11, 4; ABI/INFORM Global, pg. 4. Lovelock. C.H. and Wright, L.K. (1999), Principles of Services Marketing and Management, in Prentice Hall, Upper Saddle River, NJ. Maslow, A. L. and N. L. Mintz (1956), Effects of Esthetic Surroundings, in Journal of Psychology, 41 (April), 247-54. Parasuraman, A, Zeithaml, V. A., & Berry, L. L. (1985), A conceptual model of service quality and its implications for future research, in Journal of Marketing, 49 (Fall), 41-50. Parasuraman, A, Zeithaml, V. A., & Berry, L. L. (1988), SERVQUAL: A. multiple-item scale of measuring consumer perceptions of service quality, in Journal of Retailing, 64 (1), 12-37. Parasuraman, A, Zeithaml, V. A., & Berry, L. L. (1994), Alternative scales for measuring service quality: A comparative assessment based on psychometric and diagnostic criteria, in Journal of Retailing, 70 (3), 193-199. Price, L.L., Arnould, E.J. and Tierney, P. (1995), Going to extremes: managing service encounters and assessing provider performance, in Journal of Marketing, Vol. 59, April, pp. 83-97. Rapoport, Amos (1982), The Meaning of Built Environment, in Sage Publications, Beverly Hills, CA.


P.37 of 77

Shostack, G. Lynn (1977), Breaking Free Form Product Marketing, in Journal of Marketing, 41 (April), 73-80. Shostack, G. Lynn (1984), Designing Services That Deliver, in Harvard Business Review, 62 (January-February), 133-9. Shostack, G. Lynn (1985), Planning the Service Encounter, in The Service Encounter, John A. Czepiel, Michael R. Solomon, and Carol F. Surprenant, eds. New York: Lexington Books, 243-54. Shostack, G. Lynn (1987), Service Positioning Through Structural Change, in Journal of Marketing, 51 (January), 34-43. Shostack, G.L. (1977), Breaking free form product marketing, in Journal of Marketing, Vol. 41, April, pp. 73-80. Shu Tian-Cole; John L Crompton; Victor L Willson, An empirical investigation of the relationships between service quality, satisfaction and behavioral intentions among visitors to a wildlife reguge, in Journal of Leisure Research, First Quarter 2002, 34, 1, ABI/INFORM Global, pg. 1. Solomon, M.R. (1985), Packaging the service provider, in Service Industries Journal, Vol. 5, July, pp.64-71. Solomon, Michael R., Carol Suprenant, John A. Czepiel, and Evelyn G. Gutman (1985), A Role Theory Perspective on Dyadic Interactions: The Service Encounter, in Journal of Marketing, 49 (Winter), 99-111. Suprenant, C. and M.Solomon, 1987, Predictability and Personalization in the Service Encounter, in Journal of Marketing, Vol.51 (April), pp.86-96. Taylor, S.A., Sharland, A., Cronin, J.J. Jr. and Bullard, W. (1993), Recreational service quality in the international setting, in International Journal of Service Industry Management, Vol. 4 No. 4, pp. 68-86.

Turley, L.W. and Fugate, D.L. (1992, The multidimensional nature of services facilities: viewpoints and recommendations, in Journal of Services Marketing, Vol. 6, Summer, pp. 37-45.

W K Chow; Gigi C H Lui (2002), Fire safety facilities assessment for karaokes, in Facilities, 20, 13/14; ABI/INFORM Global, pg. 441.


P.38 of 77

Wakefield, Kirk L., Blodgett, Jeffrey G. (1996), The effect of the servicescape on customers' behavioral intentions in leisure service settings, in The Journal of Services Marketing, Santa Barbara, Vol.10, Iss. 6; pg. 45. Westbrook and Richard L. Oliver (1981), Developing Better Measures of Consumer Satisfaction: Some Preliminary Results, Advances in Consumer Research, 9, 94-9. Woodhouse Emma (2004), A Measure of Service Quality of Leisure Club, in Honours Degree Project of Hong Kong Baptist University. Zeithaml, V.A. and Bitner, M.J. (1996), Services Marketing, in McGraw-Hill, New York, NY. Neway Karaoke Box, Company Overview, (n.d.a.), Retrieved at 19-12-2004, from http://www.newaykb.com/. Karaoke Scene Magazine, History of Karaoke, (n.d.a.), Retrieved at 26-12-2004, from http://www.karaokescene.com/history/.

http://0-proquest.umi.com.hkbulib.hkbu.edu.hk/pqdweb?index=10&did=117541849&CSP=1676&SrchMode=1&sid=2&Fmt=3&VInst=PROD&VType=PQD&RQT=590&VName=PQD&TS=1103789838&clientId=18405http://0-proquest.umi.com.hkbulib.hkbu.edu.hk/pqdweb?index=10&did=117541849&CSP=19697&SrchMode=1&sid=2&Fmt=3&VInst=PROD&VType=PQD&RQT=590&VName=PQD&TS=1103789838&clientId=18405http://0-proquest.umi.com.hkbulib.hkbu.edu.hk/pqdweb?RQT=318&pmid=14339&TS=1103789838&clientId=18405&VType=PQD&VName=PQD&VInst=PRODhttp://www.newaykb.com/http://www.karaokescene.com/history/


P.39 of 77

APPENDIX


P.40 of 77

Figure 1 Typology of Service Organizations Based on Variations in Form and Usage of the Servicescape by Bitner 1992

Figure 2 Framework for Understanding Environment-User Relationships in Service Organizations by Bitner 1992


P.41 of 77

Figure 3 Servicescape Typology by Wakefield and Blodgett 1994


P.42 of 77

uality of Servicescapes = Ambient Conditions + Spatial Layout and Functionality +

verall Customer Satisfaction = Customer Satisfaction + Desire to Stay for Longer Time +

igure 4

ized Model

Perceived Quality of

Servicescapes

Remarks: Perceived Q

Signs, Symbols and Artifacts + Cleanliness of Servicescapes

ORepatronage Intention

FHypothes

Ambient Conditions Lighting

e

Temperatur

Air quality

Noise

Signs, Symbols and Artifacts

Signs

Theme karaoke

rooms

Spatial Layout and Functionality

yout of rooms La

t

Equipment

Furnishings

Sitting comfor

Songs

Decorating System

Overall Customer

Satisfaction

Desire to Stay for Longer Time

Repatronage Intention

Customer Satisfaction

Cleanliness of Servicescapes


P.43 of 77

Questionnaire


P.44 of 77

Survey of Neway Karaoke Box Facilities Hello! I am Year Three student from the BBA Marketing option of Hong Kong Baptist

niversity. I would like to conduct a survey on the customer satisfaction in terms of karaoke box cilities and hope that your valuable opinions are involved. All of your valuable opinions will

nly be used for academic analysis. Thank you!

. Have you been to Neway Karaoke Box? Yes

2. How many tim

Less than an 4 times 3. Which time slot does you mostly patronage Neway Karaoke Box?

Lunch (10:00-14:00) Happy Hour (14:00-18:00) Dinner (18:00-00:00) Mid-night (00:00-06:00)

4. How long did you stay in karaoke box averagely in every patronage?

Less than 1 hour 1-2 hours 2-3 hours 3-4 hours More than 4 hours

Please state your opinion towards Neway Karaoke Box facilities according to your experience. (1 represents strongly agree and 7 represents strongly disagree)

Strongly agree Strongly disagree 05. Temperature of lobby is appropriate 1 2 3 4 5 6 7

Ufao 1

No (End of questionnaire)

es did you patronage averagely in a month of the nearly year? 1 time 1-2 times 3-4 times More th

06. Temperature inside the rooms is appropriate 1 2 3 4 5 6 7 07. Sufficient lighting in lobby 1 2 3 4 5 6 7 08. Sufficient lighting in rooms 1 2 3 4 5 6 7 09. Button for adjusting lighting in rooms helps to enhance the atmosphere

1 2 3 4 5 6 7

10. Air quality is bad in rooms 1 2 3 4 5 6 7 11. Rooms are always full of tobacco smell or odor 1 2 3 4 5 6 7 12. Insufficient sound arrester among rooms 1 2 3 4 5 6 7 13. Size of room assigned is large enough for the numbers of customers

1 2 3 4 5 6 7

14. Layout of rooms is convenient to customers 1 2 3 4 5 6 7 15. Table size and height inside the rooms is appropriate 1 2 3 4 5 6 7 16. Leaflet standees occupy large part of the table 1 2 3 4 5 6 7 17. Household utensil for containing food occupy large part of 1 2 3 4 5 6 7


P.45 of 77

the table 18. Seats in rooms are very comfortable 1 2 3 4 5 6 7 19. Sufficient seats inside the rooms 1 2 3 4 5 6 7 20. Size of television screen inside the rooms is appropriate 1 2 3 4 5 6 7 21. Tone quality of microphones is good 1 2 3 4 5 6 7 22. I can control the level of microphones volume or echo easily 1 2 3 4 5 6 7 23. Microphone cables always intertwist and block the way 1 2 3 4 5 6 7 24. Decorating system is user-friendly 1 2 3 4 5 6 7 25. 1 2 3 4 5 6 7 Remote control is user-friendly 26. Computer games in decorating system entertain me 1 2 3 4 5 6 7

. 5 6 7 27 Varity of songs for me to choose 1 2 3 428. le k New songs are availab quic ly 1 2 3 4 5 6 7 29. Many new songs 1 2 3 4 5 6 7 30. New songs are trendy 1 2 3 4 5 6 7 31.info

Posters post in lobby and corridor offer me the most updated rmation about new songs

1 2 3 4 5 6 7

32. Price list shows in lobby let me knows the fees clearly 1 2 3 4 5 6 7 3 4 5 6 7 33. Sufficient signs / route signs (e.g. Toilet signs) 1 2

34. Signs / route signs can be easily understand 1 2 3 4 5 6 7 35. 1 2 3 4 5 6 7 Sufficient washrooms 36. Layout of theme karaoke rooms rise my intention to sing 1 2 3 4 5 6 7

37. Layout of theme karaoke rooms make me sing happier 1 2 3 4 5 6 738. Nuts and snacks pack individually provides me a hygiene impression

1 2 3 4 5 6 7

39. Corridor is clean and hygiene 1 2 3 4 5 6 7 40. Facilities inside the rooms are clean and hygiene 1 2 3 4 5 6 7

Please state your satisfaction level towards Neway Karaoke Box. (

Strongly disagree xcellent

1 represents strongly agree and 7 represents strongly disagree) agree Strongly

41. I think Neway facilities are e 1 2 3 4 5 6 7 42. I am satisfied with the facilities of Neway 1 2 3 4 5 6 7 43. My confident towards Neway is enhanced by its facilities 1 2 3 4 5 6 7 44. My satisfaction level towards Neway is largely affected by its facilities

1 2 3 4 5 6 7

45. Neway facilities disappoint me 1 2 3 4 5 6 7 46. The experience of patronage Neway is exactly what I need 1 2 3 4 5 6 7 47. I truly enjoy singing karaoke in Neway 1 2 3 4 5 6 7 48. I intent to stay for longer time in Neway Karaoke Box 1 2 3 4 5 6 7


P.46 of 77

y Karaoke Box is the best choice for consuming time 1 2 3 4 5 6 7 49. Newa50. I will repatronage Neway Karaoke Box 1 2 3 4 5 6 7 51. I will patronage Neway Karaoke Box more frequently 1 2 3 4 5 6 7 52. I will think of Neway when I want to go to karaoke box 1 2 3 4 5 6 7 53. It is a wrong choice of patronage Neway Karaoke Box

5

le 5

5 years old 26-30 ye o years old

5 ncome?

-$ ,0 $18,001-$22,000

aluable opinions End of Questionnaire

1 2 3 4 5 6 7

4. What is your gender? Male Fema

5. What is your age? 15-20 years old 21-2 ars ld 31-35 years old 36-40

6. What is your monthly i $2,000 or below $2,001-$6,000 $6,001 $10,001-$14,000 $14,001-$18,000

10 00

More than $22,000

Thanks for your v


P.47 of 77

O

OK ()

. 1-2 3-4 4

3.

(10:00-14:00) (14:00-18:00) (00:00-06:00)

4.

-2 2-3 3-4 4

Neway OK ( 1 7 )

05. 1 2 3 4 5 6 7

Neway OK

K

1. Neway

2 1

Neway OK (18:00-00:00)

OK 1 1

06. 1 2 3 4 5 6 7 07. 1 2 3 4 5 6 7 08. 1 2 3 4 5 6 7 09. 1 2 3 4 5 6 7 10. 1 2 3 4 5 6 7 11. 1 2 3 4 5 6 7 12. 1 2 3 4 5 6 7 13. 1 2 3 4 5 6 7 14. 1 2 3 4 5 6 7 15. 1 2 3 4 5 6 7 16. 1 2 3 4 5 6 7 17. 1 2 3 4 5 6 7 18. 1 2 3 4 5 6 7 19. 1 2 3 4 5 6 7 20. 1 2 3 4 5 6 7 21. 1 2 3 4 5 6 7


P.48 of 77

22. (ec ho) 1 2 3 4 5 6 7 23. 1 2 3 4 5 6 7 24. 1 2 3 4 5 6 7 25. 1 2 3 4 5 6 7 26. 1 2 3 4 5 6 7 27. 1 2 3 4 5 6 7 28 . 1 2 3 4 5 6 7 29. 1 2 3 4 5 6 7 30 . 1 2 3 4 5 6 7 31. 5 6 7 1 2 3 4 32. 1 2 3 4 5 6 7

. 1 2 3 4 5 6 7 33 / (e.g.) 34. / 1 2 3 4 5 6 7 35. 4 5 6 7 1 2 3 36. OK 1 2 3 4 5 6 7

. 1 2 3 4 5 6 7 37 OK 38. 1 2 3 4 5 6 7 39. 1 2 3 4 5 6 7 40. 1 2 3 4 5 6 7

( 1 7 )

Neway OK

41. Neway 1 2 3 4 5 6 7 42. Neway 1 2 3 4 5 6 7 43. Neway 1 2 3 4 5 6 7 44. Neway 1 2 3 4 5 6 7 45. Neway 1 2 3 4 5 6 7 46. Neway 1 2 3 4 5 6 7 47. Neway OK 1 2 3 4 5 6 7 48. Neway OK 1 2 3 4 5 6 7 49. Neway OK 1 2 3 4 5 6 7 50. Neway OK 1 2 3 4 5 6 7 51. Neway OK 1 2 3 4 5 6 7 52. OK Neway 1 2 3 4 5 6 7 53. Neway OK

5

1 2 3 4 5 6 7

4.


P.49 of 77

5 26-30

36-40 5

$2,001-$6,000 $6,001-$10,000 $14,001-$18,000 $18, - ,0 22 0

5. 15-20 21-25 31-35

6. $2,000 $10,001-$14,000 001 $22 00 $ ,00


P.50 of 77

SPSS Output


P.51 of 77

1. Factor Analysis on Servicescapes

KMO and Bartlett's Test

.735

2500.798351

Kaiser-Meyer-Olkin Measure of SamplingAdequacy.

Approx. Chi-Squaredf

Bartlett's Test of

Sig. .000

Sphericity

Total Variance Explained

5.976 22.135 22.135 5.976 22.135 22.135 3.124 11.569 11.5692.757 10.211 32.346 2.757 10.211 32.346 2.995 11.094 22.66

the role of karaoke box servicescape plays in …libproject.hkbu.edu.hk/trsimage/hp/02007428.pdf ·...

Documents