Sunday, November 10, 2019
Interpersonal, Group and Collective Behavior Dynamics Essay
Enron is a company that is faced with financial instability but continues to run on dubious dealings including misrepresenting their true financial position (Cohan, 2002). This is done to save the public image of the company hence avoiding the risk of losing investors. American International Group (AIG) is also in a serious financial crisis following cases of mismanagement (FRB, 2009). We shall make a comparison of the group dynamics and internal politics within these two companies. The companies exhibited an element of information blockage. This is holding back adverse news from the public until the last possible moment. This is usually a deliberate act with the aim of maintaining a good public image. It is however followed by lawsuits, hate mails or even death threats from unhappy investors. In Enronââ¬â¢s case, the senior executives withheld any information about financial crisis from the public until it collapsed (Cohan, 2002). AIG maintained a ââ¬Ëbusiness as usualââ¬â¢ image in the public despite its liquidity issues (FRB, 2009). Motivation to lie or deliberately concealing the truth in an organization was evident in the two companies. The corporate officers do not disclose the truth especially when this truth may put the company into bankruptcy or cost them their jobs. In the case of Enron the lies were inform of hard data, lying about accounting results and a stream of earnings (Williamson, 1970). Questionable accounting practices were meant to hide huge losses that the company suffered. AIG had its share of deliberate lies when it valued its A-A and sub prime property at 1. 7; twice the value used by Lehman. The issue of the boardââ¬â¢s oversight function and the business judgment rule is also fairly evident in the two companies he board of directors act as if they are entitled to rely on the honesty and integrity of their subordinates until something wrong happens (Crag & Rebecca, 1996) . The directors of Enron were totally unaware of the severity of the companyââ¬â¢s financial crisis until its collapse. A directors were too ignorant of the liquidity problem to the extend of planning for a lavish retreat for themselves. The subordinate managers have persuasive interest in concealing the bad news. This is meant to avoid or delay personal embarrassment and other associated risks such as the likelihood of a price drop in its shares. In Enron, individual executives who decided to hide the dubious partnership feared erosion of status (Cohan, 2002). They felt that they needed to protect both their self and external image. The same case was evident in AIG, where the subordinate managers saw the need for over costing their assets to redeem their image. Overconfidence and optimism is displayed in the two companies by the senior executives especially in press releases. Overconfidence creates a strong image for any company in the eyes of the public. Executives who are overconfident and optimistic are considered to be successful managers. This is because they are able to persuade and influence people even in the face of a crisis. The executives in Enron and AIG were also in the bid of making a name for themselves. Senior executives assured employees would continuously rise even in the event of financial instability in Enron. The chief executive officer in AIG assured investors that they would still get their bonuses even as the company was being bailed out (FRB, 2009). Corporate ââ¬Ëcultureââ¬â¢ cannot be ruled out in the management of the two companies. This refers to the norms of the company which are well known to the management and the subordinate employees. They supersede other business or ethical laws in case of a conflict. Cynism as a corporate culture fosters the breaking of rules as a means to succeed. Ethical rules are under enforced with the focus being to maximize profits. The Enron and AIG were caught up in this culture when they faced a financial crisis. They misrepresented their debts and assets respectively in the companyââ¬â¢s sheet so as to reflect high profits and attract investors (Cohan, 2002). All this is done in total disregard for accounting ethics. Myopic information within the organization is also prevalent in the two companies. This might be due to our limited cognitive capabilities but more so because the executives are too busy to deal with abundant data. They prefer sifting this data and extracting only what is relevant. They may also be lacking the skill to analyze and understand the data as was the case of Enronââ¬â¢s former chairman Mr. Kenneth Lay. The directors in AIG and Enron, focused on information that confirmed their prior attitudes of leading institutions in the market. They disregarded any disconfirming information of possible collapse or liquidity issues. This is normally referred to as cognitive dissonance. It is usually difficult to change these beliefs as one is seen as a threat to the companyââ¬â¢s status quo. Ms. Watkins, an employee in Enron became such a threat by warning a senior manager of a possible collapse (Cohan, 2002). A chief executive officerââ¬â¢s proposal in AIG was ignored on the same basis (FRB, 2009). Intimidation of subordinate employees by the senior employees is prevalent in Enron but not in AIG. In Enron, investigations against Mr. Andrew a former chief financial officer and other senior officers who were involved in fraud cases did not happen since no one was confident enough to confront them (Cohan, 2002). In AIG the accounting scandal is thoroughly investigated and no one is spared including a former chairman of the board. REFERENCES: Federal Reserve Bank. (2009). History and development of AIG. Retrieved May 26,2009, from http://www. federalbank. orf/history/development. pdf Herbert, A. S. (1955). A behavioral model of rational choice. John, A. C. (2002). â⬠I didnââ¬â¢t knowâ⬠and ââ¬Å"I was only doing my jobâ⬠. Has corporate governance careened out of control? A case study of Enronââ¬â¢s information myopia. Journal of Business Ethics, 40 (3),275-299. Paul Z. & Janet A. (1997). The social influence of confidence in group decision making.
Thursday, November 7, 2019
Differentiated marketing strategy Essays
Differentiated marketing strategy Essays Differentiated marketing strategy Paper Differentiated marketing strategy Paper Critical evaluation: You need to prove to Sally that your current targeting approach is effective or whether there is a better alternative. Consider what unsatisfied needs may exist in the market that could represent opportunities for your organisation. (3 pages)(10 marks) The BMW 7 series target market is basically a small market with a majority of the customers being senior executives, in the mid 30s to 50s, businessmen or wealthy men. This target market however is by no means small in the eyes of BMW, as they represent the class of customers whom BMW wants to target as they have the capacity to afford prestige automobiles and also have taste for superior class and style. By targeting this group of customers, BMW has to be highly creative and innovative as with higher cost, higher standards are also expected. Even though the size of the targeted market is small, its of high importance to BMW. BMW could easily have adopted a cheaper range of automobiles, but this would not fit well with their customers, whom have come to see BMWs name to be associated with that of prestige and luxury automobile that are substantially expensive but of very elevated quality. This targeted market however can be seen as a growing market, as more customers become keen on having technological enhanced automobiles together with enhanced features that are offered with this 7 series. The new BMW 7 series has been position in the mindset of customers as the being a pleasure to enjoy (appendix 2). Using differentiated marketing strategy we can clearly define the customers for the new 7 series (Kotler, 2001:307). By targeting the segments of senior executives, in the mid 30s to 50s, businessmen or wealthy men, we have defined what range of customers the 7 series would acquire. These would be our target market for the 7 series. We could have easily targeted a larger section of the market, but the 7 series would and might not have appealed to the entire market. Even though the 7 series represents prestige and massive advancements in technologic, it might not be appealing to a working class man, in his 20s. This is because the price of the 7 series might be too high for him and also he might like a sportier looking automobile, which is clearly what the new 7 series is not. BMW could have easily captured this section of the market too, but to make the new 7 series sportier and cheaper might have devastating effects on the original target market. As their original perception of the new 7 series would have been one of prestige and luxury and with a high price without the sporty body. If we were to lower our new 7 series prices, it might lead to a very perceptive view of the image of BMW. As BMW has been known to offer quality automobiles at premium prices. With the launch of the Mercedes-Benz new E-Class, priced at $119, 000, we would have to re-evaluate our 7 series target market to better cope with this new introduction to the automobile market (appendix 4). In terms of features, we are still significantly in the competitive edge, however to better sales and profits we might have to better position our new 7 series to the target market (perceptual map). With the Mercedes-Benz new E-Class automobile being significantly much more lowered priced then our new 7 series, we would need to wait and see if this price for the E-Class is a temporary introductory price or is it here to stay. If it is then we would need to significantly adjust our price range for our new 7 series to compete with the E-Class in terms of pricing. Benefits segmentation would be greatly influential and might draw more customers to the new 7 series (perceptual map). Benefit like the two year warranty and subsequent extension to the warranty with BMW Warranty Plus would add further benefits to our customers. This could and might lead to more loyal customers, which is ultimate better for us. Other benefits include the BMW Roadside Assistance, complimentary car hire and accommodation and the special BMW 1-800 number (www. bmw. com. au). These benefits can significantly facilitate to segment the market into groups according to the different benefits that consumers seek from the product (Kotler, 2001:298). However as I have stated above that the typical customers of the new BMW 7 series are basically senior executives, in the mid 30s to 50s, businessmen or wealthy men, we have disregarded a portion of this targeted market and they are the female executives who have also the same desires and passion shared by their male counterparts. We have to develop new marketing mixes to better position this BMW 7 series into the mindset of these female customers and by gaining them as customer we can have massive improvements to sales and profits. Proper marketing mixes should be done through promotions with famous female personalities that this female executives can related them to. However we have to pay special care and not transform the new 7 series to a femine modeled automobile, as this might lead our current male customers away from us. We got to strike a balance between both the male and female sections of these targeted market. Unsatisfied needs might arise as competitors might come up with better technological automobiles with better features to counter our new 7 series. We could implement strategies to counter this unsatisfied needs with surveys of customers and their perception and thoughts for further improvements on the 7 series. Many gaps can be significantly bridged, as seen in appendix 3, with the idea of personalizing the interior and exterior colours and designs of the new 7 series being one of them (appendix 3). With these surveys and customization we could get insights to the way our customers feel about our 7 series and go about making improvements for the future that would represent opportunities for BMW in terms of sales and profits.
Tuesday, November 5, 2019
Atomic Weight Definition (Relative Atomic Mass)
Atomic Weight Definition (Relative Atomic Mass) Atomic weight is the average mass of atoms of an element, calculated using the relative abundance of isotopes in a naturally-occurring element. It is the weighted average of the masses of naturally-occurring isotopes. What Is It Based On? Prior to 1961, a unit of atomic weight was based on 1/16th (0.0625) of the weight of an oxygen atom. After this point, the standard was changed to be 1/12th the weight of a carbon-12 atom in its ground state. A carbon-12 atom is assigned 12 atomic mass units. The unit is dimensionless. More Commonly Known as Relative Atomic Mass Atomic mass is used interchangeably with atomic weight, although the two terms dont mean precisely the same thing. Another issue is that weight implies a force exerted in a gravitational field, which would be measured in units of force, like newtons. The term atomic weight has been in use since 1808, so most people dont really care about the issues, but to reduce confusion, atomic weight is more commonly known now as relative atomic mass. Abbreviation The usual abbreviation for atomic weight in texts and references is at wt or at. wt. Examples The atomic mass of carbon is 12.011The atomic mass of hydrogen is 1.0079.The atomic weight of boron samples collected on Earth falls within a range of 10.806 to 10.821. Synthetic Elements For synthetic elements, there is no natural isotope abundance. So, for these elements, the total nucleon count (sum of the number of protons and neutrons in the atomic nucleus) is usually cited in the place of the standard atomic weight. The value is given within brackets so that its understood its the nucleon count and not a natural value. Related Terms Atomic Mass - Atomic mass is the mass of an atom or other particle, expressed in unified atomic mass units (u). An atomic mass unit is defined as 1/12th the mass of a carbon-12 atom. Since the mass of electrons is much smaller than that of protons and neutrons, the atomic mass is nearly identical to the mass number. Atomic mass is denoted with the symbol ma. Relative Isotopic Mass - This is the ratio of the mass of a single atom to the mass of a unified atomic mass unit. This is synonymous with atomic mass. Standard Atomic Weight - This is the expected atomic weight or relative atomic mass of an element sample in the Earths crust and atmosphere. It is an average of relative isotope masses for an element from samples collected all over the Earth, so this value is subject to change as new element sources are discovered.Ã The standard atomic weight of an element is the value cited for atomic weight on the periodic table.
Sunday, November 3, 2019
Strategic Management Analysis on B-777 Aircraft Term Paper
Strategic Management Analysis on B-777 Aircraft - Term Paper Example Boeing 777 business development under Philip Condit is a clear demonstration of a well thought strategic management analysis of the company that helped the Boeing 777 to be an industry leader through large market share. The company through its leadership identified key weaknesses that threatened to collapse the company that included production inefficiencies, high cost of production, delays in delivery among others. This discussion looks at the strategic management of the business in detail. SWOT Analysis SWOT analysis involves strategic analysis of both internal and external business environment. Internal business environment is analyzed by looking at the strengths and weakness of a firm while external environment is analyzed through opportunities and threats brought about by forces without the organization. The strengths of the Boeing 777 Aircraft mentioned in the case study are discussed below as follows. One, the companyââ¬â¢s decision to involve airline operators across the g lobe who operated earlier versions of Boeing airlines to generate ideas on the new design and customer preferences helped to develop an aircraft that met the needs of the target customers. Decision to outsource key services through subcontracting internationally and within US helped to spread risk reduce time taken to break even. This meant that the company would benefit from comparative advantage of each partner it was working with. In addition, working with various companies across the ground created an opportunity and easy market penetration (Hill and Jones 2009). Strong relationship developed between Philip Condit and the employees (engineers) helped to end the secretive management style. This allowed free flow of information and sharing of new ideas. Acquisition of McDonell Douglas Company in 1997 helped Boeing to become the worldââ¬â¢s largest manufacturer and supplier of military aircraft thus expanding this market segment as well as eliminating one of its competitors. In fact its main rival was now Airbus Industries which trailed it by sales. The acquisition helped the Boeing to ride on the skills and networks developed by the acquired company. Ability to develop flexible design from the Boeing 777 helped the company to meet orders for cargo, long, medium and short distance travel aircraft without necessarily incurring high design and development costs. Use of the Digital Designs helped to identify errors and overlaps thus improving on efficiency and reducing time taken to deliver an aircraft. In terms of weaknesses that characterized the company, huge development cost initially threatened the survival of the business. It made returns low and the company would take a long time to break even not to mention creation problem of cash flow. Rising costs, declining productivity and delays in delivers in the early 1990s when the Boeing 777 project was being developed was not a positive aspect towards the project. Highly structured management style just bef ore Philip Condit to the scenes would have easily affected idea generation, product development and production. Huge labor force and large capital outlay required to develop the aircraft almost exhausted the companyââ¬â¢s income streams. Managing such a large workforce and imparting the necessary skills was going to be a big challenge especially with the then management structure. The fact that Boeing 777 projec
Friday, November 1, 2019
PHILOSOPHY OF SCIENCE Essay Example | Topics and Well Written Essays - 500 words
PHILOSOPHY OF SCIENCE - Essay Example However, the definition of stress from the proponents tends to face a lot of criticism (Passmore, 1967). The second definition of stress from the organism perspective is a set of challenges that human being face. The challenges cause discomfort, anxiety, speculation, and uneasiness among other emotions. When the challenges face people, they must devise ways to overcome them. The evaluation is done in order to determine whether one is capable of solving the issue at hand. When the means of solving the problem are exhausted, and no changes have been made, it results to stress. According to this perspective, stress is the set of forces that originate from the external environment that make life very unbearable for human beings. The forces make it difficult for human beings to cope with the conditions that exist. It causes mental torture and result to hormonal changes that may interfere with the biological functions of the body. The body then becomes exposed to diseases. This kind of stress originates from factors which are beyond the control of individual (Despues, 1999). The process organism perspective definition is the best because it acknowledges that the stress is largely outside the control and influence of a human being and has the potential to have an adverse impact on someone. Sometimes, stress requires anyone to be skilled in knowing how to overcome the stressful situations and position himself strategically in order to survive. Internal factors and external factors are the main causes of stress. Logical positivism definition of stress is only concerned with proving that stress must be determined using measurable parameters. It does not provide the tools that can be used to measure the existence of stress. The proponents of the definition had only the intention of watering down the concepts of believers of metaphysics philosophers. Philosophy branch deals with abstract concepts where theoretical work is being emphasized. The two schools of thoughts
Wednesday, October 30, 2019
Making monstor Essay Example | Topics and Well Written Essays - 1500 words
Making monstor - Essay Example In the book Monsters of Our Own Making: The Peculiar Pleasures of Fear by Marina Warner is divided into three chapters. The first section, ââ¬Å"Scaringâ⬠discusses the monster in this book which is the bogeyman. The chapter looks at the question ââ¬Å"who eats and who gets eatenâ⬠the author uses this to explore the characters of monsters. Warner also explores fear that is brought about by the world. The monster in this chapter is Erlking also regarded as the King of the Alders who woos a boy riding with his father in the dark forest. The boy recognizes the danger facing him but his father does not see any form of danger. He uses every trick to attract the boy. The story end up with the death of the boy when they reached home. Erlking is the monster in this book because he is being persistent to get what he wants, in this case, something that will cause harm to the other person. The Erlking keeps requesting the boy to go with him with his words keeping on deepening each time (Warner, pg. 23). The Erlking even uses false promises that the daughters will be the boyââ¬â¢s lovely attendant with the aim of getting the boy. He eventually gets impatient and indicates that if the boy is not willing, he will use force. He finally seizes the boy. The deep voice also indicates that the creature is not natural and that it has supernatural powers. This Erlking is regarded as a monster because it instills fear on people. Forcefully taking a boy or boys who are moving through the forest is an act of spreading fear among people throughout the region. This character brings the aspect of death because a reader assumes that people taken face death which brings fear to all young people. It also brings fear among parents who face the tragedy of losing their children to the Erlking. He is a cold blooded creature that every person fears (Asma). Erlking is monstrous because he possesses the power to
Sunday, October 27, 2019
SERVQUAL Model Summary and Evaluation
SERVQUAL Model Summary and Evaluation 1.1 Introduction Service quality has taken into consideration in providing and accomplishing customers satisfaction recently (Hishamuddin Fitri Abu Hasan, Azleen Ilias, Rahida Abd Rahman Mohd Zulkeflee Abd Razak, 2008). Besides, there is a very obvious trend towards a growing concern that customers satisfaction is one of the valuable assets in building up a brand image (Srivastava et al., 2001), so brand image is very crucial in service industry, by which this element is critical in influencing customers perceptions and thus their loyalty to a company. Simoes and Dibb (2001) stated that brand image plays an important role in service industry due to the strong brand image persuades customers with a sense of acceptance and trustfulness. Research finding based on Bloemer et al. (1997) and Jones et al. (2002) also pointed out that there is a direct relationship between service quality towards customers perceptions, which in turn contributes to the brand image of a product or company. Based on the findings from Parasuraman et al. (1994) and Zeithaml et al. (1996), service quality is directly related to customer satisfaction and loyalty and thus on brand image, by affecting customers perceived value (service quality à ¢Ã¢â¬ ââ¬â¢ perceived value à ¢Ã¢â¬ ââ¬â¢ customers satisfaction à ¢Ã¢â¬ ââ¬â¢ customers loyalty à ¢Ã¢â¬ ââ¬â¢ brand image of a company). At first, there will have a brief explanation pertaining to the principle of the SERVQUAL model in this literature review; by which the dependent variable and independent variables of this research will be discussed in detail, followed by the findings from the previous research and studies. Lastly, this literature review will be ended up with a conclusion. 1.2 Theory of SERVQUAL Model Parasuraman, Zeithaml, and Berry (1985) developed service quality model which is named as SERVQUAL model or PZB model. They had conducted focus group interview in order to develop the first version of SERVQUAL model. They had created ten dimensions of the service quality by determining the similar criteria in the evaluation of customer. The ten dimensions of service quality included tangibility, reliability, responsiveness, competence, access, courtesy, communication, credibility, security and understanding. In this research, Parasuraman et al. (1985) stated that the overlapping among these ten dimensions of service quality maybe occurred and suggested that further research should be conducted. Therefore, SERVQUAL model was further developed and emerging the modified version of SERVQUAL model. In 1988, Parasuraman, Zeithaml, and Berry had conducted an empirical study to measure the service quality towards the customers perceptions by using the ten dimensions as a basic structure. The results indicated that some variables in these ten dimensions were overlapped with each other. In the ten elements of service quality, tangibility, reliability and responsiveness remain constant while the remaining seven determinants were categorized into the last two dimensions which are assurance and empathy (Parasuraman et al., 1988). As a result, there are five service quality dimensions in the modified version of SERVQUAL model that affect customers satisfaction and thus brand image: Tangibility is related to the physical environment, facilities and the employees appearance. Reliability is the ability to carry out the services consistently and accurately. Responsiveness is the willingness of the employees in helping the customer to solve the problem. Assurance is the adequate knowledge that the employees possess and the ability of the employees in entrusting the confidence. Empathy is associated with the organization provide the caring and individualized attention to their customers. Buttle (1996) mentioned that SERVQUAL model is been used widely in measuring customers perceptions towards various types of services. Due to this reason, we are likely to choose SERVQUAL model to measure customers perceptions on brand image in our study. 1.3 Dependent variable 1.3.1 Brand image Service quality has significant effect on customers perceptual toward brand image, due to the statistics shown that strong brand image is needed to distinguish from competitors brands or products (Boltan and Drew 1991). At the same year of 1991, Schiffman and Kanuk also stated that customer will perceive brand that match and suit their images. As a result, service quality added value to customers by helping them differentiates the brand from competing brands. This means that customers perception of service quality is be associated brand image and customers are more likely to purchase the brand that provides the superior service quality. Keller (1993) supported the previous findings and stated that brand image is the customers perception that held in customer memory. Strong brand image is set in customers mind through their consumption experiences and their perceptions towards service quality provided by the product or company. In the year of 1996, Agarwal and Rao continued the study and mentioned that brand image is based on superior and favorable brand rooted in consumers memory. In 2003, Keller repeated the theory and reinforced that brand image refers to strong, positive and favorable brand association in memory which result in a positive effect, attitude and overall perceived quality. Holbrook and Batra (1987) stated that the perceive quality affect the brand loyalty and thus also influence the images of a brand. Meanwhile, service quality is clearly defined as the customers judgment about a brands excellence or superiority (Zeithaml, 1988; Aaker and Jacobson, 1994). Dobni and Zinkhan, (1990) assumed that brand image is refer to the reasoned and emotional perceptions consumers attach to specific brands. Zeithaml (1988) suggest that brand image is built through consumers consumption experiences with the excellence or favorable of service being provided. Therefore, the service quality perception is core dimension that help to create a high value of a strong brand image in which directly influences consumers purchase evaluation. According to Alba and Hutchinson (1987) and Walker et al. (1987), although brand image, brand attitude and service quality act independently, however, under some conditions, three of dimensions are interrelated with each other. Keller (1998) supported the brand image is multidimensional, by which it includes the attitude and behavior according to the brand and the perceived service quality. The process in order to develop a trusted brand image is based on the customers experiences towards the brand through both direct and indirect interaction with the brand (Keller, 1993 and Krishnan, 1996). Direct contact with brand involves usage; trial and satisfaction in consumption while indirect contact with brand involves advertising, word-of-mouth and brand reputation. In 1996, another researcher Meldan also mentioned the introduction of innovative products and services quality is to improve the positive perception of brand image. She supported the theories which were held by Park, Jaworski, Macinnis in 1996 and Fatt in 1997, by which they stated the service quality is very important in influence the image of a brand through the level of customers familiarity, experience and trust of a brand. Based on these theorie s, Aydin and Ozer (2005) concluded there is reciprocal relationship between both customers perceptions and brand image. There are five dimensions of brand image being identified by Aaker (1991) which included perceived service quality, brand awareness, brand association, brand asset and customer base. However, perceived of service quality have the most significant impact toward brand image among those five dimensions. Keller (1993) indicated that the service quality may improve brand image by enhancing customers loyalty and thus increasing the probability of brand choice as well as reducing the competitive marketing. Service quality can affect the brand image of particular products or companies directly and indirectly (Kirmani and Zeithml, 1993). The study held by Kirmani and Zeithml in 1993 shown that the dimensions of service quality tangibility, reliability and empathy are basic clues for in constructing a strong brand image (Bailey and Ball 2006). 1.4 Independent variables 1.4.1 Tangibility Tangibility is one of the dimensions in the SERVQUAL model. It can be defined as the physical evidence in the service industry (Parasuraman et al., 1988). It is the physical facilities and equipment, employees appearance, physical representations of services and the physical environment. Wakefield and Blodgett (1999) also mentioned that physical environment will significantly influence the customers perceptions towards brand image. Same theory goes to the size or the number of facilities and equipment provided by a company in judging customers perceptions (Umbach, 2002). One of the examples to support the dimension of tangibility can be seen in servicescape, by which it is the physical places where services are delivered (Chua, Mohhiddin Othman, Boo, Muhammad Shahrim Abdul Karim, and Sridar Ramachandran, 2009). It can be said that tangibility has a significant impact customers perceptions towards brand image. However, services is intangible, therefore, customers can only see and experience the tangible services provided by the company, such as the facilities and equipment, as well as the appearance of the employees. Those of the tangible services are known as clues (Zeithaml, Parasuraman, and Berry, 1992). The clues are the capabilities of the company and the quality of the environment. Berry (1980) stated that the way of managing the tangibles services will directly affect customers satisfaction, due to the reason that those tangibles services are critical elements in shaping brand image. According to the research finding of Kayaman, R. and Arasli, H. (2007), there is a significant relationship between service quality and brand image. They were mentioning that tangibility is associated with the physical characteristics provided by the company. This variable serves as a key element by which it may be able to attract more and more customers and thus gain competitive advantage over the competitors. Besides, element of tangibility is able to deliver both direct and indirect result on brand image. As a result, most of the companies nowadays are likely to formulate and implement strategies that are useful in grabbing potential customers and maintaining current customers by using eye-catching physical structures and providing a unique and comfortable environment for the services delivered. 1.4.2 Responsiveness Another independent variable that will affect customer perceptions towards service quality is responsiveness. The meaning of responsiveness is the willingness to help the customers, to provide prompt and well service to the clients, problem resolution when the customers faced and complaint handling (Reichheld and Sasser, 1990). Responsiveness should be expanded and this is because they believed that this variable is very important (Parasuraman et al, 1988). Previous studies suggest that the responsiveness is critical not only as a measure of service quality but can use as a best tool for uncovering areas of service quality strengths and weakness (Kettinger and Lee, 1997, 1999; Pitt, Watson, Kavan, 1995; Van Dyke et al., 1997). By knowing the strengths and weaknesses, the organization will enhance the service quality in order to increase the brand image in this competitive market (Bedi, 2010; Kassim and Abdullah, 2010; Kumar et al., 2010). Furthermore, good customer service is part of the responsiveness. Employees responsiveness takes customer service a step further (Lovelock, 1983). By using technology, including websites, email and telephone systems, it enables the customers to quickly get the information that they need is one of the aspect for responsiveness (Lovelock, 1983). It generally refers to being responsive to the service subscribers (Heeter, 1989). The employees also have to prepare the aptitude and desire to provide the customers with effective resolutions on the first contact whenever possible (GroÃËnroos, 1982; Oliver, 1981). A high level of responsiveness, representing and expressing as a trust cue, can convey the trustworthiness to the customers (Corritore et al., 2003). There is a significant relationship between the service quality and customers perception on brand image (Moliner and sanchez, 2003). Attachment theory suggests that beyond knowing who or what a brand stands for, strong attachments only mean when the brand is responsive to the consumer needs. In fact, psychologists argue that responsiveness is one of the critical element that keep relationships is going (Bebko and Prokop, 1996). Employees should quickly respond to the customers request at the same time, eliminating all the unnecessary errors and cannot make the customers to spend lots of time to wait (Guseman, 1981; Levitt, 1981; Murray and Schlacter, 1990). A responsive brand fulfills consumers relevant needs or goals. The goals can be many and varied for depending on the consumer and the situation (McDougall and Snetsinger, 1990). They may include broad level needs, such as needs for status, stimulation, belongingness or individuality, all the way down to situation specific goals (Parasuraman et al., 1985, 1988; Zeithaml et al., 1990; 1993). Of course, being responsive means that there must be something in the product and the marketing behind it that creates the perception that the brand uniquely in order to achieve these needs and goals (Anderson and Zeithaml, 1984; Garvin, 1982; Tse and Wilton, 1988). Hence, it is crucial for all the employees to exhibit a courteous and friendly behavior when delivering services to the customers in order to increase their satisfaction towards the brand image (Firdaus Abdullah, Rosita Suhaimi, Gluma Saban Jamil Hamali, 2011). 1.4.3 Reliability According to Word Net, reliability indicated the trait of being dependable or reliable. Reliability indicates the employees are able to provide the services accurately, consistently and dependably (Parasuraman et al, 1988, LeBlanc Nguyen, 1997). In another way, reliability also means that the services are correctly performed and defined as the consistency of the services performance. Besides, reliability means the organization keeping their promises, trustworthiness toward the services quality of employees to avoid anything goes wrong. In product and service industry, it plays as a key component that will influence the customer behavior towards brand image and thus on their purchase intention. Therefore, different services that provided to the customers will bring different level of customer satisfaction based on the services provided by the product (Yuksel, 2001). Reliability is the driving force of the responsiveness of customers behavior (Antreas A. Spiros and Vlassis, 1999). It means that reliability of services is interrelated with the customers satisfaction and perception once the services are provided and performed (Antreas A. Spiros and Vlassis, 1999). It is associated with the services quality environment and delivery systems that work well with good quality of service which include staff attitude, knowledge and skill (Walker 1990). For example, it provides the service at the designated time. Parasuraman et al. (1991) predicted that reliability is concerned with the result of services as compared to other variables in SERVQUAL model. This theory is supported by Glaveli, Petridou, Liassides and Spathis (2006), by which they strengthened the element of reliability considers as the service providers ability to provide accurate and dependable services in which included items such as personnel training, interruption of service, absence of e rrors and punctuality. Berry et al. (1985) argued that reliability is the most important factor in guaranteeing both customers satisfaction and dissatisfaction. This assumed that managers and employees need to provide a reliable service and reduce unreliable service to the customers in order to achieve a high level of customer satisfaction. In 1990, Zeithaml et al. also held that service reliability is one the most significant variables in the SERVQUAL model. As a result, most of the organizations are likely to include the issues of reliability in setting their mission statement and the standard of services to be provided (Malhotra, Ulgado, Agarwal, Shainesd Wu, 2005). So, both employers and employees must aware to the importance of reliability and find ways to improve the reliability of services. Reliability is one of the important dimensions that will lead to customers satisfaction through customers perceptions and thus affect the image of the brand (Patrick, Karl J., John E. 1996). A consistent measure is needed when working out with employees so that services can be performed adequately. In addition, the frequently changing of work procedures will improve the service performance as well. Again, this ensures customers perceptions towards service quality and consequently building up a strong brand image towards a product or a company. The administration and examination of departments have provided the reliable and accurate services also known as the reliability services (Muhammed Ehsan Malik et al., 2010). It held true when the brand image of an organization which is associated with excellence reliability services is considered as one of the means to attract customers purchase intention through good brand image. The study from Parasuraman et al. (1991), Muhammed Ehsan Malik et al. (2010), Ham and Hayduk (2003) proved that reliability has the strongest impact on consumers judgment, as among the five determinants of services quality. This philosophy was again proved by Hishamuddin Fitri Abu Hassan et al. in the year of 2008. 1.4.4 Assurance Another dimension in SERVQUAL model is assurance. Assurance shows the knowledge that the employees posses and how the employees conveys the trust and confidence (Parasuraman et al., 1988). Assurance can also be known as the organization offers the credible and secure service to its customers (Donnelly, Wisniewski, Dalrymple Curry, 1995). Initially, according to the research findings of Parasuraman et al. (1985), there were ten dimensions that regrouped to the five dimensions of service quality. In those five dimensions, there are three original determinants which are tangibles, responsiveness and reliability while another two determinants were assurance and empathy which, were derived from the other seven dimensions of service quality. Assurance is derived from the competence, courtesy, credibility and security of the service. This is because those four dimensions have overlapped with each other and the new dimension of assurance is formed. According to the research findings of Aydin and Ozer (2005), there is a significant relationship between customers perception about service quality and brand image. They were mentioning that assurance has a significant positive impact on brand image. Employees give an expression of the service quality in customers eyes (GroÃËnroos, 1994). It means employees give the customers the greatest concept of what the brand really is. Employees competence and abilities in delivering the service performance is also very important so that the customers know their roles and willingness in performing those services otherwise their inevitable frustration will destroy the brand image (Davies, 1996). Not only the actions or behaviors of employees but also the morale of employees influences the service quality and it will impact upon customers perception on the brand image accordingly (Schneider and Bowen, 1993). Besides, a strong brand image is a part of brand strength measurement model that based on how the customers putting trust on a particular brand over other competitors (Lassar et al., 1995). One of the high-level associations that consumers can accommodate a brand is credibility (Keller, 2003 b). The importance is also supported by another statement from Aakers study (1997) on the basic brand personality factor analysis, and she state that sincerity was the highest eigenvalue factor. In Olivers service quality theory (1980) states that the customers will judge that the service quality is low if the service performance does not meet or either exceed their expectations. Ultimately, customers are willing to commend the specific brand to other people when their perception of service quality is high (Parasuraman et al.s, 1988, 1991b). This is supported by the statement from cf. Keaveney (1995) that there is a positive correlation between high customers perception on brand image and word-of -mouth communication. In short, a strong brand not only increases the customers trust so that they are better in observing and understand the intangible but it also reduces customers perceived monetary, social and security risks Simoes and Dibb (2001). 1.4.5 Empathy Empathy is one of the dimensions which out of five dimensions of SERVQUAL model that is created and derived from the accessibility, communication and understanding. Parasuraman ct al., 1988 said that empathy is originate from approachability, communication and understandable in the ten dimension of service quality as well as the essential of caring given to the individual special attention and caring to the customers. Besides, approachable services that are provided by organization are also known as empathy to meet or identify the needs of specific customers (Donnelly et al., 1995). In order to improve the empathy in service quality, one of the approaches is by collecting the feedback from customers after they experienced the service performances (Soutar MeNeil, 1996). For psychology today, what is empathy and how its related to our livelihood? Empathy means the capability to be comprehensive to another peoples condition, point of view, feelings and perceptions. When we are facing or experiencing the feeling of empathy, then we are able to catch out someone internal feelings of empathy. Some people especially with mentally disorder, antisocial personality disorder, narcissistic personality disorder and so forth, they have intimate link with the ability to empathize. (Kristalyn Salters-Pedneault, PhD, 2010). According to Bowman and Narayandas (2001), the value perceptions of loyal customers are normally related to empathy and sincerity due to they are devote for creating the sense of interactive fairness. Individualized attention offered by the organization to meet the customers need also consider as empathy (Salvador-Ferrer, 2010). Shoeb (2011) summarized that the willingness of organization in listening to what customers had said is the empathy services that organization has provided to individual pleasantly as well as concerned with the individual by treating them well and respecting them. It can be said that empathy services concerned with how the employees approach and behave towards the customers. Hanaysha et al. (2011) mentions that there is a moderately and optimistically relationship between the empathy and customers perception on brand image. There is another research shows that there is a significant relationship between the empathy with the satisfaction (Nawaz. et. al., 2011). It means that empathy reflects how does the organization treats and cares the individual by identify their needs and wants as everybody must be treated fairly by providing the same services. 1.5 Conclusion At first, we had proposed our title of The Impact of Service Quality towards Customer Perceptions on Brand Image. The purpose for our research is used to identify the new knowledge that have not done by the previous studies. The concept of the service quality and brand image had been review in this study. In this research, SERVQUAL model is used as the applications in our study. This model is essential in our study as our research framework is derived from this model. Based on the findings, we found out that five dimension of the modified version of service quality model have the strongly impact on brand image. Service quality has the strongly correlated with the brand image. This research study is to increase our understanding of service brand from the customers perspective. Moreover, it provides the people especially service marketers the understanding of the associations that may exist and how they impact on the brand image. By understanding these associations and the inherent ris ks associated with service procurement, they will be able to manage the brand strategies well and to make better branding decisions.
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