DOI 10.14707/ajbr.190067

The Impact of Servicescape and Employee Service Quality in the KTV Industry

DOI 10.14707/ajbr.190067

Kian Yeik Koay
Department of Management, Monash University Malaysia, Malaysia

Kim Leng Khoo
Department of Marketing, Sunway University, Malaysia

Patrick Chin-Hooi Soh
Department of Management, Multimedia University, Malaysia

Abstract

Guided by a stimulus–organism–response model (SOR), this study proposes a theoretical framework that explains how various dimensions of servicescape in the karaoke entertainment business can affect customer satisfaction, which in turn influences the corporate image, revisit intention, and word-of-mouth. This study employed the survey method by distributing questionnaires to karaoke customers. A total of 253 usable data were collected. Partial Least Squares (PLS) analysis, a variance-based structural equation modelling, was employed to test the proposed hypotheses. In addition, this study conducted a post-hoc mediation test to explore the mediation effect of customer satisfaction and performed the importance-performance map analysis (IPMA) to better understand the current performance and significance of servicescape as well as the quality of employee service on customer satisfaction. This study found that functionality, spatial layout, signs and symbols, and employee service quality have a significant influence on customer satisfaction. However, ambience (lighting and temperature), ambience (air and noise) and cleanliness have an insignificant influence on customer satisfaction. It has been established that customer satisfaction has a significant influence on corporate image, revisit intention, and word-of-mouth. This study discusses the managerial implications and future recommendations.

Keywords: Servicescape; Employee Service Quality; Customer Satisfaction; Revisit Intention; Word-of-mouth;                                Corporate Image

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