An Assessment of Service Quality toward Petronal Dagangan Berhad: A Case Study of Petronas Service Stations within Kelantan
Introduction
Making business might be critical because of the uncertainties available in the market. In fact, the intensified competition is another burden for the organizations that are new in the corporate world. In the aim of the organization to lead the industry, the organization should understand the effective solution in delivering the kind of services anticipated by the market. The strategy that can attract more customers is good, but the strategy that can keep the relationship of the organization with their customers and can sustain the customer satisfaction is better.
Background and Problem Statement
Petronas Dagangan Berhad (PDB) expects to spend as much as RM150 million to open 30 petrol stations nationwide for the introduction of the convenience store and a cafe at its petrol stations. Aside from that, there are other current and ongoing plans that the organization proposed. Their plan included the 20 Mesra Shoppe outlets that will be equipped with automated teller machines facilities. Malaysia will be lighted with this additional business structures and its presence is expected to boost the competency in the market and create a lively competition for the service stations. Although the cost of the new station amounts into millions, still, the sales might depend on the location of the store and how the new station will perform. It is expected that the provided system in service will turn the sales high and there is an easy turnover.
Research Aim and Objectives
This research aims is to achieve a better understanding of the extent to which service quality pervade Petronas Dagangan Berhad and what is the perception of their customer towards the their service. The objectives of the research are to: first, to define the attributes of Petronas Service Station quality services from the customer perspective. Second is to identify the Service Quality dimension and their prioritization. Third is to determine the strength of the relationship between service quality construct and customer satisfaction. And fourth is to determine whether customer satisfaction mediates the relationship between service quality and customer loyalty.
Literature Review
Petronas Dagangan BHD was incorporated in Malaysia that markets a wide range of high quality petroleum products which are highly competitive. The Company also established a convenience store named Kedai Mesra that continuously growing and offering better services to its customers. Throughout the country, the services are provided directly to customers as well as through its network of service stations, LPG dealers and industrial dealers. The marketing activities are well supported by a comprehensive logistics and distribution system to ensure a reliable supply of products at all times. Retail Business remained the Company’s growth focus with 36 new service stations commencing operations during the year. The expanded station network has enabled the Company to further provide better services to its customers. Although the retail sales volume decreased marginally from the previous year, its revolutionary gasoline, Petronas Primax 97 continues to secure the confidence of customers, amid the slow demand. As part of the strategy for expansion, the retail businesses significantly contribute to the sales and profitability. To ensure better convenience and reliable customer experience at the service stations, the Company has equipped a total of 842 of its service stations with the Electronic Payment System (EPS) to enable Pay-at-Pump transactions whilst a total of 818 of its service stations were equipped with the Company’s fleet card or SmartPay Card Top-Up facilities. Despite of having such a huge structure, big number of staffs and glorious history of over 25 years in existences, Petronas Dagangan Bhd is still struggling in meeting the high demands of their customers. As a result, the company has started to introduce a various project management consultants in managing the customer retention program.
Methodology
The suggested method in the study is the use of survey and interview. The first phase is the survey in which the participants are the employees of the organization and the consumers of their products and services. The survey will indicate the attitudes of the participants in the provided service stations. It will also include the perceptions of the participants in the kind of service and the quality that it will deliver. With the help of the questionnaires all the participants can freely draw their opinions regarding the service stations. In the second phase of the method is the interview which will focus on the management and their officers. The interview will sort the specific effort that the managers earnestly provided to have a good service.
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