An Empirical Study of Service Quality, Value and Customer Satisfaction for On-Demand Home Services

An Empirical Study of Service Quality, Value and Customer Satisfaction for On-Demand Home Services

Brijesh Sivathanu (Symbiosis Centre for Information Technology (SCIT), Symbiosis International University (SIU), Pune, India)
Copyright: © 2019 |Pages: 23
DOI: 10.4018/IJISSS.2019100103

Abstract

This study investigates the factors influencing customer satisfaction with references to on-demand home services, an emerging phenomenon in India. The hypothesized conceptual framework is grounded in the E-SQ and SERVQUAL model. To test the research hypotheses, 382 sample respondents were surveyed using a pre-tested questionnaire. The empirical validation of the proposed framework was performed with the help of PLS-SEM. The results suggest that e-service quality (E-SQ) and service quality (SERVQUAL) contribute to the overall service quality (OSQ) which has a positive influence on customer satisfaction (CS). It is further noted that, with reference to on-demand home services, overall service quality (OSQ) and customer satisfaction (CS) is moderated by value (VL). Further research could investigate the influence of OSQ on other relational constructs such as trust and customer loyalty. This study offers interesting insights to the managers and marketers in the service industry while crafting marketing strategies.
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Introduction

On-demand home service is an emerging phenomenon in India, which is increasingly contributing to the economies worldwide. Today is the era of the emergence of on-demand services. On-demand home service includes a gamut of services like beauty services, repairs and maintenance, health care and cleaning.

Technological breakthroughs represent one of the most visible forces shaping the service landscape (Rust & Huang, 2014). Every day in any modern household there are a lot of things to be taken care of like repair of electronic devices, car wash, laundry service, to repair of electrical wires, to clear choked drainage, pest control and painting of walls. On-demand home services include beauty services, repair of faulty electrical and electronic appliances, getting clothes ironed, home cleaning services which are delivered to the doorstep of the customer (Narayanan, 2015).

Due to the modern lifestyle of the people and their busy schedules of work, people find ease in availing on-demand home services. Rather than simple demand aggregation, the goal for the on-demand home service firms is to build services that provide quality, is reliable, trustworthy and economically priced that fulfill the home-based needs of the consumers (Thomas, 2017). To get the proper fix and solutions for these problems, a reliable team of highly skilled, knowledgeable and well-trained professionals are employed by these firms. They are currently focused only on the metro and Tier-I cities, indicating the future scope of replicating this service business model in Tier-II cities to gain the first mover advantage.

The on-demand home services market in India has an estimated market size of over $10 billion and is rapidly growing (Thomas, 2017). This indicates that there exists a huge potential in this untapped market space. With 4,500 transactions a day along with funding and backing from investors, the on-demand home services sector is witnessing a lot of business activity (Adarsh, 2015). For a developing country like India, this is definitely a major boom for the services sector. The key drivers for the growth in the on-demand home services sector are the highly busy mobile urban demographic population that constitutes the initial target market along with the increasing comfort level of customers with online transactions and these services gets more demand during festive seasons (Adarsh, 2015).

On-demand home services are - The services provided to the customer at home wherein customers book the service using the service provider website. The On-demand home services are beauty services, personal services, health services, fitness services, Maintenance and repair, event management hobbies and interests. The major players of on-demand home services are Urbanclap, Housejoy, Zimmber, LocalOye, Doormint, Taskbob and UrbanPro (Adarsh, 2015). To avail these services, the customers generally visit the website of the service provider and after browsing, book the services required as per the demand and the services are provided at the doorstep of the customer.

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