Principles of Marketing
Class Activity
Case Study:
Evaluating Service Quality in a Retail Chain Using the SERVQUAL Model
Background: EliteMart is a mid-sized retail chain operating in major cities. The company aims to
provide premium customer service but has been receiving mixed feedback. Some customers
appreciate the friendly staff and store ambiance, while others complain about slow billing,
product unavailability, and unresponsive customer service.
To understand the gaps in their service quality, EliteMart’s management decided to evaluate its
performance using the SERVQUAL Model, which measures five dimensions of service quality:
1. Tangibles – Physical facilities, equipment, and appearance of personnel.
2. Reliability – Ability to perform the promised service dependably and accurately.
3. Responsiveness – Willingness to help customers and provide prompt service.
4. Assurance – Knowledge and courtesy of employees and their ability to inspire trust and
confidence.
5. Empathy – Providing caring, individualized attention to customers.
Problem Statement: Recent customer feedback shows dissatisfaction in certain areas, which
may impact brand loyalty. EliteMart wants to identify specific areas for improvement and
develop an action plan based on the SERVQUAL model.
Data Collection: A survey was conducted with 500 customers across multiple locations.
Customers rated their expectations and perceptions of EliteMart’s service on a scale of 1 (very
poor) to 7 (excellent).
Findings:
• Tangibles: Customers were satisfied with store cleanliness and layout but expected more
modernized checkout systems.
• Reliability: Many customers faced issues with product availability, often finding key
products out of stock.
• Responsiveness: Complaints about slow billing processes and long wait times were
common.
• Assurance: Staff members were courteous, but some customers felt they lacked product
knowledge.
• Empathy: Customers appreciated personalized service but felt that staff members were
sometimes too busy to provide individual attention.
Discussion Questions:
1. Based on the SERVQUAL findings, which areas should EliteMart prioritize for
improvement?
2. How can EliteMart enhance its Responsiveness and Reliability dimensions?
3. What strategies can be implemented to modernize its Tangibles aspect?
4. Suggest practical ways to improve staff knowledge and customer interactions for better
Assurance and Empathy.
5. If you were a marketing consultant for EliteMart, how would you design a service quality
improvement plan?
Note:
Divide students into groups. Each group should create a strategic action plan for EliteMart based
on the SERVQUAL dimensions and present their solutions.
This case study will help students apply theoretical concepts to real-world service quality issues.
