Singapore stock broking service quality: fifteen percent gap
Yik-Chee, L, Meredith, GG & Marchant, T 2010, 'Singapore stock broking service quality: fifteen percent gap', Journal of Services Marketing, vol. 24, no. 4, pp. 305-313.
Published version available from:
Purpose– The purpose of the paper is to adapt the SERVQUAL instrument and provide a unique analysis of service quality, value, customer satisfaction and loyalty of Singapore stock investors. Design/methodology/approach – The paper uses results from a mail survey with 300 copies of a self‐administrated questionnaire utilising the SERVQUAL instrument with experienced stock investors using stockbroker (remisier) services in Singapore. Altogether, 169 useable returns (56 percent response rate) were analyzed.
Findings– Investors expect high quality service from brokers, particularly in terms of reliability. There was a 15 percent gap in service quality, and a 20 percent gap in service value. Customers who relied on brokers' advice perceived higher service quality. Brokers need more empathy with customers. SERVQUAL translated to Singapore stock broking customers with good reliability.
Research limitations/implications– Results may not generalize beyond Singapore or to other financial services.
Practical implications– Brokers need to focus on personal, empathetic relationships with investors and aim for near perfect reliability in accurate and timely execution of customers' orders. Customers' level of expertise is important and brokers need to make more effort to educate their clients, and proactively advise them.
Originality/value– Service quality, customer perceived value, customer satisfaction and loyalty of customers have been important research areas in the marketing literature. Research on these variables simultaneously in stock brokerage services is limited and the study sheds light on these variables in a new field. The study provides practical advice for brokers and other financial service providers, particularly in the light of emerging credence service and commercial friends concepts in the financial services sector.