The Impact of Service Quality on Consumer Buying Behavior

with Special Reference to Cooperative Insurance PLC Colombo

Abstract: Service quality is the function of the difference between expectation and performance
along the quality dimensions. Sri Lanka is a well-known destination for the tourist. After
decades of civil war, Sri Lankan insurance industry has risen the profit straightaway from the
expected boom in the Sri Lankan insurance industry. SLIB report shows 19 percent of guests
chose five-star insurances. Moreover, out of all the five star insurances in Sri Lanka,
Cooperative Insurance PLC Colombo has been a leading prominent insurance and it had been
the market leader. However, the annual reports of Cooperative Insurance PLC Colombo show
the revenue and profit has declined in the recent year. Furthermore, the researcher hypothesized
that it may be due to poor service quality. The core objective of the study is to see the
relationship between service quality and consumer buying behavior and it is in consistent with
the problem statement. The secondary objective of the current study is in line with the core
objective of the current study and they are: to study the determinants of service quality, the
explore the contributions of consumer buying behavior and to analyze the relationship between
service quality and consumer buying behavior through customer satisfaction. Authors like
Parasuraman et al (1985), Agbor (2011) and kumar and Barani (2012) have supported the
finding of the current study. Moreover, in the current study, the sample size chosen is 60
respondents and the data collection method used is a mixed method where both quantitative
and qualitative have been used. The researcher has used both primary and secondary data in
the current study. The qualitative analysis was conducted through the case study approach
where quantitative analysis was done through SPPS version 22 and SPSS Amos version 21.
The current study a sample adequacy of 83.5 percent and it was analyzed through KMO and
Bartlett’s test. Thereafter, the researcher used Cronbach’s Alpha to calculate the reliability of
the study and the test showed the current study was 85.5 percent reliable. Furthermore, experts
review was used to find out the validity of the current study and the model fit of the current
study is analyzed through CMIN/DF which is 2.422, GFI which is o.950, PGFI which is 0.170
and RMSEA which is above the standard level of 0.05. Even though RMSEA is high, since all
the other model is perfectly fit, the current study can be concluded as the model is fit.
Keywords: Tangibles, Reliability, Assurance, Responsiveness, Empathy

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 CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
Under this section the researcher will be discussing the overview of the industry under which
graphical methods are used to show the tourist arrivals, total guest per categories, occupancy
rate and the revenue within the industry is discussed to show the readers where the insurance
stands.
1.1.1 Industry Overview
The Insurance industry in Sri Lanka essentially comprises of tourist insurances and different
foundations that consists resorts and insurances are affirmed by the Sri Lanka Insurance Board
(SLIB). Sri Lankan insurance industry sector has risen the profit straight away from the
expected boom in the Sri Lankan insurance industry. After almost three decades of operating
in a daring and deadly environment in the midst of the military clash, the attitude toward the
industry has now totally shifted positively and it might well play a great role in the future
economical development of the country. While the insurance industry is enriched in the
country, Sri Lankan Insurance Industry has been occupied by the tourists in the recent past
years, Therefore, different classifications of insurances in Sri Lanka increases their opportunity
to experience high number of customers in their insurances. As shown, SLIB have grouped the
tourist insurances into two types: unclassified and classified. Classified insurances are further
divided from one to five stars in view of criteria indicated by World Insurance Organization
(WTO). An expansive number of tourist insurances are being unclassified, as they don't meet
these criteria. It its clear that, when it comes to insurances, Cooperative Insurance PLC
Colombo has been the market leader in the Sri Lankan insurance industry. Cooperative
Insurance PLC Colombo is generating more revenue that the competitors because the customer
is satisfied with Cooperative Insurance PLC Colombo. Customers have a good consumer
buying behaviour towards Cooperative Insurance PLC Colombo and that may be because of
their service quality, delicious dishes or better customer service.

1.2 Problem Statement

When comparing to the past year of company, it is to be noted that there is decrease in the
number of customer to the company. The revenue of the company has decreased compared to

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the last year and as a result the profit of the Cooperative Insurance PLC Colombo has also
decreased. Most of the customers that have moved from Cooperative Insurance PLC Colombo
are loyal customers. Researcher has hypothesized that there is a decrease in customers due to
poor service quality. Some of the loyal customers of Cooperative Insurance PLC are trying to
shift to other insurances which provide better customer services as well as the same facilities
like Cooperative Insurance PLC. Customer Buying Behavior is impacted by many factors and
one of the main factors among them Is the Service Quality.

1.3 Research Objectives

The core objective of this research is in consistent with the problem statement as in section 1.2.
The core objective of this research is to study the Impact of service quality on consumer buying
behaviour. The following secondary objectives are closely related with the core objective of
this study. The current study aims:

i. To study the determinants of Service Quality in the insurance industry.

ii. To explore the contributing factors of Consumer Buying Behaviour
iii. To analyze the relationship between Service Quality and Consumer Buying Behaviour
through customer motivation.

1.4 Research Questions

The following Research Questions examined in this study are in accordance with the secondary
objectives.
i. What are determinants of Service Quality in the insurance industry?
ii. What are the contributing factors of Consumer Buying Behaviour?
iii. What is the relationship between Service Quality and Consumer Buying Behaviour
through customer satisfaction?

1.5 Significance of the Study

The most significance of this research is to enhance the knowledge of the researcher on service
quality and consumer buying behaviour. Moreover, when looking forward about problem that
Cooperative Insurance PLC Colombo having is very significant. By Overcoming this problem,
researcher will have knowledge about handling such situations in a company and the researcher

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will develop creative thinking skills. To reduce the research gap is another significance of this
study for the academia. There is a significance for the society as well in the booming insurance
industry. Furthermore, it also increases the knowledge on what the customers’ needs are. By
knowing their needs and providing a world class quality in, customers could be deeply
empowered and great levels of brand connectivity with the customers could be achieved. As a
result, the profit of the organization will increase which would delight the Shareholders.
However, to create the world class quality service, the employees of the company needs to
know the role they play in the organization’s success and hence this research will be significant
for the employees as well. By reviewing the impact on these two concepts, company will be
able to strive the vision of the company. It should also be noted that for insurance industry, the
service quality will be the key to gain competitive advantage over their competitors. The
employees at Cooperative Insurance PLC Colombo needs to know that customers are the face
of the company. When serving the customers, the company should train the workers in a way
that they maintain a positive relationship with the customers and to show them positive attitude
while fulfilling their needs. Those few things will prompt the sales of Cooperative Insurance
PLC Colombo.

1.6 Limitation of the Study

Friends and colleagues who works under the insurance industry was involved during the
collection of information, since they are classmate’s information collected can be concluded
as genuine (Stereotype problem). The researcher was not able to go in the proper dressing
manner when meeting the insurance executive since he was in the office uniform. Hence, the
researcher had a tough time in convincing the manager that the information was for academic
purposes (Halo effect). The manager was talking for more than 20 minutes and as a result the
researcher was not able to listen to each and every word. Hence, the researcher used Mobile
recording to ensure effectiveness. (Recency biasness). The researcher had to meet female
consultants when collecting information, since the researcher is a male there was gaps in
getting the right information where due to cultural restrictions she was not willing to talk much.
The researcher has the fluency of the three main languages that is being spoken in the country
that is Sinhala Tamil and English, therefore no barrier was up when collecting information.
However, when collecting information there were respondents who had the problem of

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communicating in those three languages and hence they were unable to answer the
questionnaire. (Eg: A Spanish respondent). There are types of communication such as verbal
and nonverbal. In this case Majority of information was collected in verbal manner which is
from written forms. It can be concluded that information that is not related to the topic was not
discussed with the sample size (Projection).

1.7 Chapter Outline

Chapter one elaborates the background of the study and the researcher identifies the aim of the
research. Afterwards the researcher briefly defines the problem statement. The main component of this
chapter is the research objectives under which the core objective and secondary objectives are
discussed. On this basis, the research questions are raised. Finally, the significance of the study was
discussed in detail and concluded the chapter with limitations and ethical consideration.

Chapter two elaborates the literature review which had been done for the current study. The
researcher has supported the current study based on the other literature and have provided
literature support for the current study. Moreover, the researcher has also provided the data
collection techniques of the other studies in order to compare it with the current study. This
chapter begins with the theoretical review and goes on to empirical review and finally the
researcher justified the research gap.

Chapter three elaborates the methodology of the study. Under the methodology, the researcher
developed the conceptual framework where the independent variable, moderate variable and
the independent variable have been identified based on the literature in chapter two.
Furthermore, the researcher presented the sample size of the current study and sampling
methods. Afterwards, the researcher presented the data collection methods of the study and the
finally concluded the chapter with the base for data analysis.

Chapter four elaborates the presentation and analyzing of the data collected from the
respondents through a structured questionnaire. Initially, the researcher discussed the uni-
variate analysis and thereafter, the researcher discussed the bivariate analysis. Thereafter, the
researcher focused on the estimation of empirical model under which the model fit, reliability
and regression analysis are analyzed using SPSS Amos version 22.

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Chapter five elaborates the discussion about the current study and the conclusion of the study
and recommendations will be discussed. The researcher will also give way for future research
under this chapter and will also provide the limitation of the current study.

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 CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction
This chapter consists of 4 sections through which the researcher will be discussing the
theoretical review and empirical review. Section 2.1 is the introduction, section 2.2 is the
theoretical review, section 2.3 is the empirical review and finally section 2.4 is the justification
of the research gap.

2.2 Theoretical Review

In the theoretical review, the researcher will be using the present literature published by authors
to explain the concepts of Service Quality, SERVQUAL model, Consumer Buying behaviour
and Customer Satisfaction.

2.2.1 Service Quality

There are various writers who have described service quality in many ways. Initially, as per
Parasuraman et al. (1985), Service Quality is defined as “a function of the differences between
expectation and performance along the quality dimensions’. Secondly, according to Johnston
(1995), service quality has been explained as consumers' general impressions of a
managements service as far as relative prevalence or inadequacy. Later Kotler et al., (2012)
defined service quality as “the totality of features and characteristics of a product or services
that bear on its ability to satisfy stated or implied needs”. As per Gronroos (1983) to deliver a
specific end goal and keep up the quality of service up to the mark, the company must
distinguish components that constitute quality and should know to whom it should provides
the service. Furthermore, Parasuraman et al. (1985) states that the Quality of Service is more
challenging for the customer to measure than the Quality of the Product. Service Quality
attitude result from an examination of customers desires with the definite performance of
service. Quality assessments are not made exclusively on the result of a service. They include
assessments of the procedure of service conveyance. Different scales and lists to measure the
quality of service were created. SERVQUAL and SERVPERF are the stand out range, framing
the origin for evaluating service quality in various service providing areas. (Adil et al.,2013).

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2.2.2 The Development of the SERVQUAL Scale

The exploratory research by Parasuramen et al. (1988), uncovers that initially the 10
determinants and their characteristics served as the base for the service quality scope from
which it was further reduced to 5 determinants which derived the ‘SERVQUAL’ model. The
‘SERVQUAL’ scale favors a procedure to evaluate and oversee the quality of service.
Numerous different researchers have utilized the ‘SERVQUAL’ measurements as the premise
for their exploration, and thusly ‘SERVQUAL’ has without a doubt majorly affected the
business and scholastic communities. This statement was supported by Christopher et al.
(2012) who said ‘SERVQUAL’ scale is a sharp and a feasible system to use in Service quality
sector. According to Parasuraman et al. (1988), the two-segment configuration of the
instrument, with discrete desire and perception segments, makes it advantageous to measure
the nature of a few firms just by including an arrangement of perception acknowledgments for
every firm. This is further supported by Leisen and Vance (2011) where the writer says
SERVQUAL instrument records to be the perfect applicable method to quantify Service
quality in the US and Germany. The quality of service is the key when it comes to the
satisfaction of customers. However, there are criticisms for this model which will discussed in
2.1.2.

2.2.3 Criticism of SERVQUAL Scale

According to Adil et al., (2013), despite the fact numerous studies have utilized the
SERVQUAL model as a structure in evaluating the quality of service, there has additionally
been critiques towards the model both operationally and theoretically. As per Carman (1990),
he argued that the SERVQUAL model couldn't be a non specific measure that could be
connected to any service. It should have been altered to the particular service specifically.
Later, the model was further criticized by Cronin and Taylor (1992) where they questioned the
legitimacy of SERVQUAL model and they proposed a new model and that is the one which
was discussed as a one of the prominent model in 2.1, ‘SERVPERF’ model. Cronin and Taylor
(1992) in their experimental work contested the model of Parasuramen et al. (1988) concerning
conceptualization and assessment of the quality of service, also, proposed an execution based
measure of service quality called "SERVPERF" representing that service quality is a form of

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buyer's state of mind. According to Delgado‐Ballester (2014), the SERVQUAL model used
the five determinants as the basic for the service quality evaluation tool. The Five determinants
include Tangibles, Reliability, Responsiveness, Assurance and Empathy.

Tangibles of service quality dimension shows the presence of the physical surroundings and
offices, staff, equipment’s and the method for communicating with customers. At the end of
the day, the tangible measurement is about making direct impressions. An organization will
need every one of their consumers to get an exceptional positive and always remembering
direct impression, this would make them repurchase or return to the place again

Reliability of service quality alludes to how the organization is performing and finishing their
guaranteed service, quality and precision inside of the given set of prerequisites between the
organization and the client. Reliability quality is also imperative since each buyer will need to
know whether their supplier is solid and satisfy the set of prerequisites with fulfillment

Responsiveness in the service quality determinants alludes to the eagerness of the organization
to help its clients in giving them a decent, quality and quick service. This is a critical
measurement, in light of the fact that each client feels more esteemed in the event that they get
the most ideal quality in the service

Assurance dimension in the service quality alludes to the organization's workers. Are the
representatives talented which can pick up the trust and certainty of the clients? In the event
that the clients are not happy with the workers, there are a somewhat substantial chance that
the clients won't come back to do further business with the organization

Empathy in service quality determinants alludes to how the organization accommodates and
give individualized thoughtfulness regarding their clients, to make the clients feeling additional
esteemed and special. The fifth measurement are really consolidating the second, third and
fourth measurement to a more elevated amount.

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2.2.4 Consumer Buying Behaviour

Many authors define Consumer buying behaviour in many ways. Initially, Engel et al. (1986,)
defines consumer behaviour as “those acts of individuals directly involved in obtaining, using,
and disposing of economic goods and services including the decision processes that precede
and determine these acts”. This definition precisely draws out that it is not just the buying of
items or service that gets considered in buyers conduct at the same time, the procedure starts
way ahead of the item or service have been purchased.

As per (Kotler, 1999), “Consumer behavior include mental activity, emotional and physical
that people use during selection, purchase, use and dispose of products and services that
satisfy their needs and desires”. Many researchers and marketers have carried out studies on
consumer behaviour and many are actively on progress. Secondly, the definition constructed
by Solomon et al (2012) defines Consumer buying behaviour as a procedure of picking,
acquiring, utilizing and discarding services by people and gatherings with a specific end goal
to fulfill their requirements. Later Stallworth (2018) defined Consumer buying behaviour as
an arrangement of activities which includes the buying and utilization of products and services
which came about because of the customers’ behavioural reaction, emotional and mental
needs. By the time many authors defined what consumer buying behaviour is, Kotler and
Keller (2011), displayed the importance of interpreting consumers buying behaviour and the
ways how the consumer choose their goods and services can be basic for providers and in
addition service sector suppliers compete in a many aspects.

Another significant contention is given by Egen (2017) on the significance of interpreting the
consumer behaviour. As indicated by the author, "better awareness of consumer buying
behaviour is a positive contribution to the country’s economic state". Egen (2017) addedm that
the nature of products and services are uncommonly great in nations where purchasing
behaviour of customers is well comprehended. According to, Abbasi and Torkamani (2020),
Consumer behaviour is distinctive in various individuals, because individuals have diverse
desires and requirements, so their behaviour is distinctive. Additionally, Customer Satisfaction
has a vital part in forecasting Consumer's behavioral expectations, both to repurchase the

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product or service and to suggest it to the others. As per Hart et al. (1990), Consumers who are
happy with the service will advise six other individuals about their great encounters with the
brand, while consumers who are disappointed with the service of the organization will
illuminate it to eleven others

2.2.5 Contributing Factor of Consumer Buying Behaviour

There are a few components which influences consumers to act in a specific way. As per Jeddi
et al, (2013), It is not easy to predict what the consumers want. Consumers behave differently
according to the situations and person to person their mindset varies and their thoughts or
perception towards a product or service Is subjective. Therefore, the factors that influences
consumers buying behaviour was identified. According to Winer (2019) and Jisana (2014) the
four factors that impacts the buying behaviour is culture, personal, social and psychological.
The aspects of each factor is further divided into sub factor.

As per Durmaz et al. (2013), The basic components of each society are the myths, customs,
values, traditions, customs, laws, languages, or items that are transmitted starting with one
generation then onto the next. According to Dumraz et al. (2013), Geological areas and
religions are crucial in the arrangement of sub-culture. As per Jisana (2014), Consumer's
buying behaviour is firmly impacted by the member of family. In the event that the purchasing
choice of a specific item is impacted by wife then the advertisers will attempt to focus on the
ladies in their promotion. According to Purwanto (2013), Freud's theory proposes that a man's
purchasing choices are impacted by subconscious thought processes that even the purchaser
may not completely get it. It is evident that the customers change the buy of products and
administrations with the progression of time Change in trendy clothes, Taste in food and
furniture are frequently age related. Purchasing is likewise formed by the phase of the family
life cycle (Purawanto, 2013 and Khaniwale ,2015). Consumers lifestyle is another import
element that influences the buying behaviour of consumer. As per Purawanto (2013), “Lifestyle
captures something more than the person’s social class or personality”

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Concluding this section, as per Parasuraman et al.(1985) “service quality is a function of the
differences between expectation and performance along the quality dimension” and it is
dependent on the five determinants: tangibles, reliability, responsiveness, assurance and
empathy. Moreover, according to Kotler (1999), consumer buying behaviour include mental
activity, emotional and physical that people use during selection, purchase, use and dispose of
products and services that satisfy their needs and desires.

2.3 Empirical Review

In the empirical review, the researcher will be discussing the contribution of literature on the
objectives of this research which the researcher wants to answer by utilizing the accepted
literature of different scholars. The researcher will discuss about the impact of service quality
on the moderator customer satisfaction, then the impact of customer satisfaction on consumer
buying behaviour and finally the objective which is to identify “the impact of service quality
on consumer buying behaviour”.

2.3.1 The Impact of Service Quality on Customer Satisfaction

Concerning the interrelationship between service quality and customer satisfaction, Oliver
(1993) initially stated that service quality would be a predecessor to consumer satisfaction
paying little mind to whether these constructs were aggregate or exchange particular. In a study
conducted by Agbor (2011) regarding “The Relationship between Customer Satisfaction and
Service Quality”. The core objective was to study the impact of service quality on customer
satisfaction, Agbor 2011 articulated, there is an empirical evidence to support the above
statement where customer satisfaction was an aftereffect of service quality. The method Agbor
(2011) used in the study was “convenience sampling technique “to gather quantitative
information from clients of Umeå University, ICA and Forex to get their satisfaction levels
and importance of the quality of service which were substituted in the SERVQUAL model.
Agbor (2011) used a sample size of 300 customers and distributed questionnaires. His findings
showed that the study demonstrated particular results for the relationship between service
quality and customer satisfaction. In the mean time the group result demonstrated that empathy,
responsiveness and reliability were fundamentally related with service quality; empathy and

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reliability were altogether identified with consumer satisfaction. However, `responsiveness`
was not essentially identified with consumer satisfaction. Finally, service quality was
altogether related to customer satisfaction. For the study Agbor (2011) used questionnaire as a
data capture instrument.

Later, Kumar and Barani (2012) conducted a study on “Appraisal Relationship between
Service Quality and Customer Satisfaction in Organized Retailing at Bangalore City”. The
core objective of the study is to analyze the measurements and their levels of service quality
which has an impact on consumer satisfaction. In this study, Kumar and Barani (2012)
illustrated that the determinant of service quality, for example, tangible, reliability,
responsiveness, competence, credibility, accessibility, and customer knowledge were
positively connected to consumer satisfaction. They used a sample size of 310 customers and
they distributed questionnaires where the response rate was only 65 percent. They used “SPSS
Version 17.0” in which only reliability, credibility tangibles and customer knowledge, have
significant impact on consumer satisfaction.

In spite of the fact that it is expressed that different elements, such as product quality and cost
can influence consumer satisfaction, perceived quality is a part of consumer satisfaction
(Zeithaml et al. 2016). According to Kumar and Barani (2012), every businesses profitability
is affected by good customer satisfaction and clients perceive good satisfaction through good
service quality and each customer will typically recommend to ten other people. Based on
Griffin (1995), who stated that in America, a dissatisfied customer as a result of poor service
will recite it to fifteen to twenty others, Kumar and Barani (2012) also articulated that
customers who perceive poor quality of service will express their satisfaction to fifteen to
twenty others. As per Oliva et al (1995), when performance is poor, more prominent change
is expected to get satisfaction. when in midrange levels of service quality give relatively
incredible expansion on satisfaction and, above average performance, enhancements don’t
correlate on equivalent increments in fulfillment. The quality of service has been observed to
be an imperative data to customer satisfaction. The customer has a focal part in the force of the
relationship since they interface with service results and their own particular experience in both
assessments of satisfaction and future expectations (Caruana,2012).

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Service quality and customer satisfaction are associated from their explanation to their
relationship with alternate point of view in the fields. A few writers have consented to the way
that service quality persuades customer satisfaction. Parasuraman et al. (1985) in their study
suggested that, when seen the quality of service is high, then it will prompt increment in
consumer satisfaction. To see the impact of customer satisfaction, Sivadas & Baker-Prewitt
(2000) carried out a national arbitrary phone survey of 542 customers to analyze the
relationship between customer satisfaction, service quality and store dependability inside of
the retail establishment connection. One of the outcomes was that service quality impacts
relative state of mind and satisfaction with retail establishments. They discovered that there is
a relationship between service quality and consumer satisfaction. Aziz et al. (2020), conducted
a late study with respect to the "conceptualizing the service excellence and its antecedents".
The core objective of their study was to study the significance of service brilliance in the
insurance and hospitality industry. They proposed that expanding service quality in the
insurance and hospitality industry empowers the company to upgrade a more consumer
satisfaction and in this way create more income and benefits. However, by expanding the
service quality, not only it impacts the customer satisfaction and the profit but it also increases
the brand image of a company. According to Dado et al. (2011), even though various authors
acknowledged that quality of service and consumer satisfaction are particular, however, their
impact on consumer behavioural has not come to its determination yet.

In contrast to Griffin’s article which was based on America and Kumar and Barani’s article
which was based on India. The socio economic factor of America and India are different and
their culture and values are also different. Furthermore, the year Griffin wrote the article was
in 1995 whereas Kumar and Barani’s research was in 2012. When Griffin did his study there
wouldn’t have been many studies on service quality and customer satisfaction. However, by
the the time Kumar and Barani did their research, the research gap would have been reduced
to what it was during Griffin’s period. Hence the strength of their support towards this article
is relatively low. Furthermore, another author namely Agbor (2011) who conducted the study
on ‘The relationship between service quality and customer satisfaction in the education
industry was similar to the study which was conducted one year later by Kumar and Barani
(2012). However, Agbor (2011) conducted the study in education industry whereas Kumar and

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Barani (2012) conducted the study in retail industry where it shows a distinct difference in the
industries. In addition to that, Kumar and Barani (2012) conducted the study in India whereas
Agbor’s study was based in Sweden. The culture of Sweden is different to that of India. The
socio-economic factors of Sweden is different from India. Hence the finding of their study may
not be applicable to support each other’s study.

2.3.2 The Impact of Customer Satisfaction on Consumer Buying Behaviour

According to a study conducted by Canny, (2014) whose core objective is to “investigate the
role of dining experience attributes on customer satisfaction on behavioral intentions in casual
dining restaurant” stated that customer satisfaction influences the consumer buying
behavioural intentions and Canny (2014) used convenient sampling technique to collect the
data. Canny (2014) tested it by conducting a survey on a sample of 213 customers and he used
Multiple regression approach to test the relationship. The study revealed that customer
satisfaction positively impacts on behavioral intentions.

One year later, Shih et al (2015) conducted a study regarding the “The Study of Consumers'
Buying Behavior and Consumer Satisfaction”. The core objective of the study is to find out
the influence of consumers' beverage buying behavior on consumer satisfaction. In the study
they used a sample of 150 customers and they used descriptive research method for the survey
and questionnaires were used to collect the data. Shih et al 2015 used “Descriptive statistic and
Pearson correlation coefficient was used as a method of data analysis” as the data analytical
tool.

As per Baker and Crompton (2000) who were based in USA, the essential inspiration among
insurance suppliers for putting exertion in assessing and enhancing their nature of execution
and looking to upgrade level of satisfaction, is that such enhancements will bring about
increase in guest visits. This will ultimately increase the consumer’s buying behaviour. The
main study to have assessed the effect of both quality and satisfaction on behavioural intention
gives off an impression of being attempted by Cronin and Taylor (1992). They reported that
satisfaction had a more grounded impact on buying behaviour than serviced quality.
Satisfaction levels at which consumers report a positive plan can contrast impressively from

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those at which consumers participate in the comparing behaviour (Mittal and Kamakura 2011).
As cited by Orientacao et al. (2011), satisfaction of the customers assumes a vital part in
anticipating consumers behaviour. The consumer has a focal part in the force of this
relationship since they connect with service results and their own experience in both
assessments of satisfaction and future goals. According to Cardozo (1965), increasing the
satisfaction level of customers can build their buying behaviour, and eventually it would
influence the consumer to buy different items. As per Parasuraman et al. (1985), Consumer
satisfaction was additionally found as the best frame to lead consumer behaviour, which noted
as the best method for organization's advertisements.

However, in converse to Canny’s statement where he stated customer satisfaction influences

consumer buying behaviour, it could be considered that customer satisfaction doesn’t only
influence consumer buying behaviour. The customers should be motivated to purchase the
product and there are many other factors that influences the buying behaviour. The culture,
social factors, personal factors, and psychographic factors also play a vital role in influencing
consumers buying behaviour and quality of the products and the competitive pricing could also
influence the buying behaviour. Furthermore, Canny (2014) conducted the research on a
sample of 213 customers to test the dinning attributes whereas Shih et al. (2015) conducted a
research on a sample of 150 customers and Shih et al. (2015) used descriptive research method
whereas Canny (2014) used convenient sampling technique to collect data. Finally, Canny
(2014) used multiple regression approach whereas Shih et al. (2015) used descriptive statistic
and Pearson correlation coefficient as the data analytical tool. In contrast to what Baker and
Crompton (2000) stated, it can be expressed that enhancing satisfaction will not be the only
reason to increase the guest visits to a insurance. Factors such as offers, cost effective pricing
strategies, front desk employees attitude, quality management could also be the other factors
which could improve the guest visits to a insurance.

2.3.3 The Impact of Service Quality on Consumer Buying Behaviour

For an organization what generates more revenue is making loyal customers and to do that, the
customer should have a re-purchasing behaviour towards the organizations products or
services. However, what makes a customer repurchase is when they have a motivation to buy

16
a product again. Therefore, to motivate the customers to buy the product or service again, the
customers should be happy and how they are happy is when they get their need and wants
fulfilled. When all this happens, the consumer will have a good buying behaviour towards a
product or service.

In 2019, Hung-Che Wu conducted an “An empirical study of behavioural intentions in the

Taiwan insurance industry” The core objective of the study was to pick up an experimental
understanding of behavioural intention in the Taiwan insurances. The sampling technique that
was used to collect data is ‘convenience sampling’. The findings of this study depended on the
examination of a sample of 580 clients who had stayed at a five-star insurance in Kaohsiung
city of Taiwan. Hung-che Wu (2019) used structured questionnaires to collect data. In this
study they used different data analysis techniques such as regression analysis, factor analysis
and variance analysis. One of the findings in the study suggested Service quality directly
influenced customer satisfaction and thus influenced consumer behaviour.

Later, Tominc and Pandit (2014) who were based on India, conducted a study on “the impact
of service quality on consumer behavior in internet banking services”. The core objective of
the research is to “measure how service quality influences the internet users of the banks” in
the Indian banking sector. The findings of the study depended on the sample of 200
respondents. The Sampling users were internet banking users and the techniques that was used
to collect the sample was ‘convenient sampling’. Data Analysis was carried out using
Regression, factor analysis and Charts.

One year later Mackay et al. (2015) conducted an investigation on "The interrelationship
between service quality, relational benefits, customer satisfaction and behavioural intentions
in the South African short-term insurance industry". In 2015 Mackay et al. (2015) led an
examination on "The interrelationship between administration quality, social advantages,
consumer loyalty and behavioral expectations in the South African transient insurance
industry". This study examines the impact of service quality and relational advantages on
consumer satisfaction, and in addition the impact of consumer satisfaction on behavioural
intentions in the instantaneous insurance industry. A quantitative descriptive research design
was followed and Non-probability convenience sampling was used. The sample included 892

17
customers and they were given questionnaires. Data analytical tool used was SPSS. The results
of the structural equation model indicate that service quality and relational benefits have a
significant effect on customer satisfaction, which in turn has a significant effect on customers’
behavioural intentions.

As per Bitner (1990), “substantial empirical and theoretical evidence in the literature suggests
that there is a direct link between service quality and behavioural intentions”. At the point
when a consumer picks a supplier that gives service that meets or surpasses his or her desires,
he or she will probably pick the same supplier again. This statement is supported by Cronin
and Taylor (1994), where they found that better service quality will make the customer to re-
purchase the products of the brand in future which implies consumers buying behaviour is
good. Among the different behavioral expectations, impressive highlight has been set on the
effect of service quality in deciding customer loyalty as a result of repeat buying behaviour
(Jones and Farquhar, 2013). As indicated by Baker (2014) the term customer loyalty is utilized
to portray the behaviour of repurchasing consumers, and in addition to those that offer great
appraisals, surveys, or testimonials. A few clients do specific a great help to organization by
offering good informal reputation with respect to a product telling it to their loved ones,
therefore adding them to the quantity of loyal customers. As per Onditi et al. (2012), the key
objective of customer loyalty program is to make customers happy who will come back to buy
again and induce others to utilize that organization's goods or services. An organization should
focus more on the current customers than finding new customers because loyal customers are
what makes an organization more profitable. This statement is supported by Onditi et al.
(2012), where they mentioned that the expense of serving a customer who is loyal to the
company is five or six times less than that of a customer who is new to the company. This
announcement demonstrates the significance of customer loyalty. He specified that it is ideal
to take care of the current customer than finding new customers. This statement shows the
significance of loyal customers. According to Agbor (2011), to culminate the way that
consumer fulfilment and quality of service are imperative parables in business research on
consumers, Gera (2011) examined the connection between the quality of service, satisfaction,
values and behavioural aims in a bank in India and one of their results communicates that

18
“quality of service was found to fundamentally affect on the satisfaction of the customers and
value perception"

However, in contrast to Hung-Che Wu (2019) who stated service quality directly influences
customer satisfaction and thus consumer buying behaviour. Hung-Che Wu’s study was in 2019
whereas Tominic and Pandit’s study was in 2014 and Mackay et al study was in 2015. There
is a gap between the conducted studies and the availability of articles in-between the period of
the study may vary. In 2019 there would have been less studies conducted under service quality
and consumer behaviour. However, in 2014 and 2015 the conducted studies on the field may
have increased. Firstly, Hung-Che Wu (2019) conducted the study in insurance industry
whereas Tominc and Pandit (2014) conducted the study in the banking sector and Mackay et
al. (2015) conducted the study in short-term insurance industry. Secondly, Hung- Che Wu
(2019) conducted the study in Taiwan whereas Tominc and Pandit (2014) conducted the study
in India and Mackay et al. (2015) conducted the study in South Africa. The socio-economic
factors of these countries are different to each other and their finding may not be applicable to
different countries. In addition to that, Hung-Che Wu (2019), Tominic and Pandit (2014) and
Mackay et al. (2015) used convenience sampling technique to collect data for which the usage
of probability sampling technique would make the sample more representative of the
population. Finally, Hung Che-Wu (2019) conducted the survey on 580 clients whereas
Tominic and Pandit (2014) conducted the survey on a sample of 200 respondents and Mackay
et al (2015) conducted the survey on a sample of 822 customers which is by far higher sample
size than that of Hung Che-Wu (2019) and Tominic and Pandit (2014).

2.3.4 The Impact of the Source of Quality on Service Quality.

Different authors had different determinants as their critical factor according to their studies.
As per Zeithml et al. (2023) stated that "the quality of service is an engaged assessment which
mirrors the consumer’s observation about assurance, responsiveness, reliability, sympathy
and tangibles". Zeithmal et al. (2023) included that out of this measurements reliability has
appeared to be the most critical measurement in the determinants of service quality. However,
Lee et al. (2000) stated, Tangibles would be a more imperative variable in the facility based
than in the people based service businesses, though responsiveness would be a vital element in

19
the people based than in the facility based commercial ventures. This is supported by
Karunaratne & Jayawardena (2020) where they stated, dominant part of the consumers
communicated their fulfillment with the service they got from the insurance, particularly in
regards to tangibility, responsiveness and assurance.

However, the insurance had not satisfied the customers' as to reliability and empathy.
Furthermore, in a Turkish study by Yavas et al.(1997) who was based in Turkey affirmed that
three determinants of service quality specifically, tangibles, responsiveness and empathy are
more critical indicators of consumer satisfaction. The core objective of this study was to find
out the impact of service quality on customer satisfaction in the banking sector of Turkey.
Yavas et a“Impact of service quality on customer satisfaction in Insurance Industry” l. (1997).
The sample used was 200 where they distributed questionnaires through ‘drop off and pick up
procedures’ from residents.

This statement was supported by Jamal and Anastasiadou (2019) who were based on Greece
conducted a study on investigating the effects of service quality dimension and expertise on
loyalty where they stated tangibles, reliability and empathy has a positive impact on consumer
satisfaction leading to consumer loyalty. Jamal and Anastasiadou used ‘casual modelling
approach’ and they distributed questionnaire to 200 customers. Furthermore, in a study by Rao
and Sahu (2013) on the “Impact of service quality on customer satisfaction in Insurance
Industry” they conducted an analytical survey on 100 customers and only 60 customers
returned the filled questionnaires. The respondents were asked to rate every statements about
their perception and expectation. The overall score of the survey is shown in Table 2.1.

Table 2.1: Overall Mean Score of Customer Satisfaction Towards Service Quality

Source: Rao and Sahu (2013 pp-430)

20
Table 2.1 demonstrates the total fulfillment of desire approaching the five measurements was
at a steep rate (3.98). The aftereffect of consumer expectation demonstrated that Assurance
measurement was at the best state (4.05), trailed by empathy (4.02), responsiveness (3.98),
reliability (3.93), and tangibility (3.92). Most consumers expected the front office staff to be
reliable as they are in charge of the insurance costs or store cash from visitors.

2.4 Justification of the Research Gap

Previously there were studies done by Parasuramen et al (1985), Cronin and Taylor (1992),
Sivadas and Baker- Prewitt (2000), Zeithmal et al (2023), Hung-Che Wu (2019), Aziz et al.
(2020), Agbor (2011), Kumar and Barani (2012), Rao and Sahu (2013), Canny (2014),
Tominic and Pandit (2014) Shih et al. (2015), Mackay et al. (2015) etc. about the impact of
service quality on consumer buying behaviour through customer satisfaction. However, not all
those studies were to insurance industry. Initially, the current study which is “the impact of
service quality on consumer buying behaviour in insurance industry with special reference to
Cooperative Insurance PLC Colombo” has not been considered in any studies before.
Furthermore, from the literature survey it was seen that majority of the articles and journals
were focused on the relationship between service quality and customer satisfaction and there
were not many articles or journals on the relationship between service quality and consumer
buying behaviour.

When relating the study conducted by Agbor (2011), Kumar and Barani (2012) to this research,
there is a difference in the culture and values of India and Sweden to Sri Lanka. The social
economic factors of India and Sweden is also different to that of Sri Lanka. Hence the finding
and research has a gap and their variable may not be applicable to a research based on a Sri
Lankan organization. Furthermore, Baker and Crompton (2000) conducted the study based on
USA where the culture and value of people in USA is different to that of Sri Lanka. According
to Sri Lanka’s they have more priority towards culture and price whereas majority of Sri
Lankan’s have priority towards price which is eyeing a revolutionary change in priority being
towards quality.

21
In contrast to Hung-Che Wu (2019) who stated service quality directly influenced customer
satisfaction and thus influenced consumer behaviour. Even though Hung-che Wu’s study and
findings were based on five star insurances the country of the study was based on Taiwan
whereas this study is based on Sri Lankan Insurance industry. However, Hung-che Wu’s
findings may not be applicable to insurances in Sri Lanka since the cultures and values of
Taiwan is different to that of Sri Lanka and the consumer’s spending behaviour could be
different from Taiwan to Sri Lanka. Culture plays a vital role and an organization should
consider and focus greatly on cultural aspects of a country. Furthermore, Mackay et al. 2015
have conducted the study insurance industry whereas this research is based on Insurance
Industry. The consumer’s perception towards a insurance industry would be different to that
of Insurance industry. For a insurance industry, the guest who visits and stays would need more
leisure where the guests who need a better infra structure to feel relaxed, they would except
delicious foods to feel comfortable, better internal facilities whereas in the insurance industry
there is not much for the intangible asset to play a role. Mostly it depends on the Sales
representative to attract a customer in an insurance industry.

When comparing this study with the previous studies, as a citizen of Sri Lanka, the researcher
found that the social economic factor which is the culture, level of education, income level and
majorly political status of Sri Lanka is different to that of other countries. Hence there is a clear
cut gap between the previous studies and this research and those previous studies will not be a
bench mark to an organization in Sri Lanka.

22
 CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
In chapter three, the researcher will focus and discuss the research methodology and the
research methods of this study. Initially, research methodology refers to the way in which the
research is implemented. On the other hand, research methods refer to the techniques used to
do the research. It is important for the researcher to understand that not only research methods
are important, but the research methodology is also heavily important.

3.2 Research Onion

Figure 3.1: The Research Onion

Source: (Saunders et al, 2019)

Initially, the research philosophy the research use implies the way in which the research views
the world. The chosen philosophy will enable the research to develop the research strategy and
the methods used as a part of the strategy. In this study the researcher is following the
“positivism” method as the research philosophy. Secondly, the research approach which is
used in this study is the “deductive” approach where the researcher will explain theories,
collect data, and analyze the relationship between the variables. Furthermore, deductive
approach is less time consuming compared to the inductive approach. The research strategy
which is used in this study is the survey method where the researcher collects data through a
questionnaire. There are two noteworthy choices while doing a research. They are quantitative
method and the qualitative method. However, in this study, the analyst will be utilizing both
qualitative and quantitative technique which is known as the mix method. There are a few

23
favorable circumstances for a researcher when the mixed method is used as a part of the study.
Firstly, the mixed method empowers the researcher to understand the contradictions and make
comparisons between the qualitative findings and quantitative findings. Furthermore, through
the mixed method, the researcher will have the capacity to fulfil the requirements of everybody
as the data analysis and interpretation is a mix of words and numbers, which give more
importance about the discoveries to the readers. Additionally, the mixed method empowers the
analyst to gather rich and extensive information by incorporating both qualitative and
quantitative information. The last layer of the research onion is the time horizon which
comprises of two sections which are cross sectional and longitudinal. The researcher is
utilizing the cross sectional time horizon as this study concentrates on answering the research
questions by collecting data through the survey method.

3.3 Conceptual Framework

From the literature survey and the review, it was seen that to motivate customer to buy, service
quality plays a major role and customer should be satisfied. It was also noted, that better
customer service will make customers loyal to an organization and there are chances for them
to recommend it to their friends and relatives. Conceptual framework as shown in Figure 3.2
is consistent with the research objective as in the section 1.3 and literature review as in the
section 2.
Independent variable Moderate variable Dependent variable

Tangibles

Reliability

Customer Consumer
Responsivenes Satisfaction Buying
s Behaviour

Assurance

Empathy

Figure 3.2: Conceptual Framework

Source: Developed by the Researcher (2023)
24
As shown in Figure 3.2, the conceptual framework has five independent variables, one
moderate variable and one dependent variable. The independent variables are tangibles,
reliability, responsiveness, assurance and empathy whereas the moderate variable is customer
satisfaction and the dependent variable is the consumer buying behaviour.

3.4 Formulation of Empirical Model.

In this section the researcher will be designing and discussing the functions of this research
and provide justifications for each function.
Z1= ƒ (Y1) error
Y1 = ƒ (x1,x2,x3,x4,x5) error
Where, Z1 = Consumer Buying Behaviour
Y1 = Customer Satisfaction
X1 = Tangibles
X2 = Reliability
X3 = Responsiveness
X4 = Assurance
X5 = Empathy

In this study the focus is to identify how service quality influences on consumer's buying
behaviour. As discussed in the literature review in section 2, customer satisfaction influences
on consumer's buying behaviour. In order to motivate consumers to buy it is important for the
organization to exceed customer satisfaction. Therefore, it is suggested that consumer buying
behaviour is a function of customer satisfaction. It is not easy to satisfy the customers as there
are many factors that determines the satisfaction of the customers. However, to satisfy the
customers service quality is one of the many factors that satisfies the customers. This requires
Cooperative Insurance PLC Colombo to provide superior quality of service to their customer.
Therefore, it can be stated that customer satisfaction is a function of the determinants of service
quality.

25
3.5 Data and Variables
Firstly, this study has a independent variable which is service quality where it is further divided
into 5 determinants. Secondly it has a moderate variable which is customer satisfaction
whereas the dependent variable is Consumer buying behaviour. In order to collect information,
the researcher will distribute a five point likert scale to 60 customers and each variable will be
measured based on the responses. In the following data and variables table, the relevant
variable type and the variable is matched with questions which is used to measure them in the
five point likert scale.
Table 3.1: Data and Variables
Variable Measurement Indicators
Tangibles Five point Physical surrounding, Location, System,
Likert scale Techniques, Structure

Reliability Five point Accuracy, Commitment,

Likert scale Trustworthy
Responsiveness Five point Quickness, Customer Happiness ,Time
Likert scale Management Willingness
Assurance Five point Knowledgeable, Attitude Eagerness,
Likert scale Speaking skills, Courtesy
Empathy Five point Communicating languages,
Likert scale Personal Attention, Caring
Customer Five point Extended Value, Positive
Satisfaction Likert scale Feedback, Recommending to others,
Purchase intention
Consumer Buying Five point Motivation to buy, Brand Loyalty
Behaviour Likert scale Commitment to buy, Value for money,
repurchase intention,

Source: Developed by the Researcher (2023)

Table 3.1 includes indicators of the independent, moderate and dependent variable that has
been included in the conceptual framework. The first independent variable has indicators such
as physical surrounding, location, system, techniques, structure where the variables has been
supported by the authors such as Parasuraman et al., (1988) Crompton et al., (1991). The
reliability variable includes the indicators such as accuracy, commitment, trustworthy and

26
these indicators have also been stated by Crompton et al., (1991), Rao,S.P and Sahu,C.P
(2013). The third variable which is responsiveness consists four indicators such as quickness,
customer happiness, time management and willingness with the literature support of Crompton
et al., (1991) Rao,S.P and Sahu,C.P,(2013) and Parasuraman et al., (1988). Assurance includes
knowledgeable, attitude, eagerness, speaking skills and courtesy where
Crompton et al., (1991) Rao,S.P and Sahu,C.P,(2013),Parasuraman et al., (1988) have also
used the same indicators in their study. The final independent variable includes indicators such
as communicating languages, personal attention and caring. The moderate variable includes
indicators such as extended value, positive feedback, recommending to others and purchase
intention and the dependent variable includes motivation to buy, brand loyalty commitment to
buy, value for money and repurchase intention. All the above variables have been measured
by the five point likert scale.

3.6 Sample Profile

Since the objective of this study is to comprehend the impact of service quality on consumer
buying behaviour, it is vital to understand the perception of customers on the five star
insurances in Sri Lanka. The researcher will be executing this study in a five-star insurance in
Colombo. The Population of the study is their customers. However, it's not practical to survey
the entire population due to cost and time. Hence, keeping in mind the end goal to do this study,
the researcher has chosen a sample size of 60 customers that incorporates both Sri Lankans
and Tourists and selecting the tourist will help the researcher to determine the perception of
tourist on Cooperative Insurance PLC Colombo.

For the quantitative analysis, the researcher distributed questionnaires to 60 respondents under
“simple random sampling method”. For the qualitative analysis, the researcher followed
“convenience sampling method”. According to Saunders et al. (2019, p.241), “convenience
sampling are those cases that are easiest to obtain for your sample, such as the person
interviewed at random in the insurance.” In addition, the sample methods used in the current
study is in consistent with some major studies done by scholars such as Agbor (2011), Canny
(2014), Hung-che Wu (2019), Tominc and Pandit (2014), Mackay et al. (2015).

27
3.7 Data Collection
There are two principle methods for collecting information for the study; they are the primary
research and the secondary research. Firstly, secondary research refers to the procedure of
gathering information that existing or published, such as journals, books, and other articles.
Moreover, primary research is the procedure of gathering raw or firsthand information.
However, in this specific research the researcher has utilized primary research methods of
observation and questionnaire to gather information.

The observation method is used to identify the problem of this research where the researcher
implemented an exploratory research. The researcher visited Cooperative Insurance PLC
Colombo as a customer and observed the behaviour of the employees and service. Thereby, it
was seen that Cooperative Insurance PLC Colombo was less focused on satisfying the
customers. Researcher understood that this was mainly due to lack of focus on customer
satisfaction. In addition, it is important to get the customers’ perspective about the service
quality and consumer buying behaviour. Therefore, the questionnaire method is used to obtain
responses of 60 customers from Cooperative Insurance PLC Colombo.
There are a few reasons that influence the researcher to utilize primary data. Firstly, keeping
in mind the end goal to analyze the research problem and objectives, the secondary data did
not give the definite data as the researcher anticipated. Furthermore, the primary data is more
solid and precise than secondary data in light of the fact that the data is gathered by the
researcher himself. Moreover, the researcher needed to create and distribute a questionnaire to
60 customers in order to asses the customers’ perception in terms of service quality

Table 3.2: Resources Used in Terms of Primary and Secondary in the Current Study

Primary How Secondary How

Data Data
Survey Cooperative Journals Through internet
Insurance
PLC Colombo
customers
Web Articles Through internet/
Auston Library
Books Auston Library

Source: Developed by the Researcher

28
3.8 Data Analytical Tool
There are different software’s used to analyze the data in researchers and SPSS and SPSS
AMOS are the two most prominent and commonly used data analytical tools. However, since
this study has a moderate variable, the researcher will use both SPSS version 22 and SPSS
AMOS version 21 to analyze the data. In addition, the researcher will be using tables and
scatter diagrams to graphically represent the data. The data analysis consists of two parts they
are the descriptive analysis and the model estimation. The descriptive analysis includes the
qualitative analysis of the data and on the other hand the model estimation includes the
quantitative analysis of the data. Various tests have been carried out with the aid of SPSS
version 22 and SPSS Amos version 21. The Sample Adequacy test of the study is tested
through the Kaiser-Meyer-Olkin Measure of Sampling Adequacy method. The range of results
derived from the test indicates different measures where, greater than 0,7 indicates ideally
adequate, and a range within 0.5 – 0.7 indicates good and anything less than 0.5 is regarded as
not good.

Thereafter, the second test that is conducted is the reliability test. The reliability test of the
current study is conducted through the Cronbach’s Alpha. The range of results derived from
the test indicates different measures where, if the result is greater than 0.7 indicates ideally
adequate and a range within 0.5 – 0.7 indicates good and anything below 0.5 is regarded as not
good. Furthermore, under the model fit it has four main components such as GFI, PGFI,
RMSEA and CMIN/DF. The range of GFI should be ideally less than one to indicate a close
model fit and If GFI is equal to one, then it indicates a perfect fit. The range of CMIN/DF is
the closer it is to zero, the better it is. According to Amos build in service (2023) using ratios
as low as 2 or as high as 5 to indicate a reasonable fit. Furthermore, the RMSEA range should
be about 0.05 or less than that would indicate a closer fit of the model. However, this figure is
based on subjective judgment. It cannot be regarded as infallible or correct, but it is more
reasonable than the requirement of exact fit with the RMSEA = 0.0

3.9 Chapter Summary

This chapter includes the methods that have been used to analyze the data that has been
collected by the researcher. The conceptual framework that has been developed by the authors
included five independent variables such as tangibility, reliability, responsiveness, assurance

29
and empathy along with one moderate variable which is customer satisfaction and a dependent
variable which is consumer buying behaviour. The chapter also includes the data and indicators
table where indicators of all the independent variables, moderate variable and the dependent
variable has been identified. During the process of data collection both quantitative and
qualitative analyses has been used, in the quantitative analysis included 60 questionnaires has
been distributed by the researcher and the case study approach has been used for the qualitative
analysis. Finally, the data analysis of the quantitative analysis has been analysed by the
software such as Excel, SPSS version 22 and AMOS.

30
 CHAPTER FOUR: QUANTITATIVE DATA ANALYSIS
4.1 Introduction
This chapter focuses on analyzing the data collected through the questionnaire method.
Initially, after collecting the necessary data for the research, now the researcher analyzes the
data. The researcher has used SPSS (version 21) and SPSS Amos version 22 to analyze the
data and for comparing the independent and the dependent variable. In this chapter, the
research will explain how the data collected through the questionnaire is analyzed and the
researcher will also discuss the data analytical tool used in this research. In this chapter, the
researcher will carry out uni-variate analysis under section 4.2 and bi-variate analysis under
section 4.3 and thereafter will carry out the estimation of empirical model under section 4.4.

4.2 Uni-Variate Analysis

Additionally, when collecting the data through the questionnaire method, the researcher
concentrated on specific demographic factors of the respondents; they are Nationality, Gender,
Occupation and Age. The following is the demographic analysis of the respondents.

4.2.1 Age
The descriptive statistics on the age of the respondents are illustrated in the Table 4.1. Age is
explained in terms of minimum, maximum, mean and standard deviation.

Table 4.1:Descriptive Statistics of Age

Minimu Maximu Std.
N m m Mean Deviation
Age (Years) 60 19 62 31.5 11.204
Valid N
60
(listwise)
Source : Survey Data (2023)

As per the Table 4.1, Mean age of the sample is 31.5 years while mode and median are 23
years and 29 years respectively. Maximum and minimum age are 62 years and 19 years

31
leaving the range 43 years. Standard deviation of age is 11.204 years while the variance is
125.54. Finally, the coefficient of the variance is 0.356.

4.2.2 Nationality and Gender Distribution

Table 4.2 illustrates the nationality of the respondents and the gender distribution of the
respondents.
Table 4.2: Nationality of the Respondents and Gender Distribution
Sri Lankans Tourists Total
Male 16 20 36
Female 10 14 24
Total 26 34 60
Source: Survey Data (2023)

The sample size for this survey was 60 respondents. According to Table 4.2, majority of the
respondents were Tourists and as a percentage, 56.67 percent of the respondents were Tourists
out of which 58.82 percent were male and 41.18 percent were female. However, there were
43.33 percent Sri Lankans customers who took part in the survey out of which 61.54 percent
were males and 38.46 were females.

4.2.3 Occupation
In Table 4.3, it illustrates the occupation of the respondents where the percentage of full timers,
part-timers and students are interpreted.
Table 4.3 : Occupation of the Respondents

Occupation Respondents Percentage

Full Timers 34 56.67
Part Timers 15 25.00
Students 11 18.33
Total 60 100

Source: Survey Data (2023)

32
As shown in Table 4.3, from the total sample number of 60 respondents, majority of the
respondents were full time workers which amounted to 34 respondents whereas there were 13
respondents who were part-timers and 11 respondents who were students.

4.2.4 Uni-Variate Analysis of Tangibles

The uni-variate analysis of tangibles has been measured using five point likert scale which has
five components, stongly agree, agree, neutral, not agree and strongly not agree. Table 4.4
illustartes on how the respondents have contributed to the tangibles in total.
Table 4.4: Uni-Variate Analysis of Tangibles

Number Cumulative Percentage

Frequency
Strongly Agree 86 86 24

Agree 136 222 37

Neutral 98 320 27
Not Agree 38 358 11
Strongly Not Agree 2 360 1
Total Responses 360 100

Source: Survey Data (2023)

According to Table 4.4, it can be concluded that 24 percent of the respondents have strongly
agreed on the tangible dimension and 37 percent of the respondents have agreed to the tangible
dimension. Furthermore, 27 percent of the respondents stay in the middle as they are neutral
on this particular dimension. However, 11 percent of the respondents have not agreed to the
tangible dimension and a minority of 1 percent have strongly disagreed on the tangible
dimension. Overall, 61 percent of the respondents are agreeable to physical surrounding,
location, system, techniques and structure while 12 percent are not agreeable to the indicators.

33
 INTENTIONALLY KEPT BLANK

4.2.5 Uni-Variate Analysis of Reliability

The uni-variate analysis of reliability has been measured using five point likert scale which
has five components, stongly agree, agree, neutral, not agree and strongly not agree. Table
4.5 illustartes on how the respondents have contributed to the reliability in total.

Table 4.5: Uni-Variate Analysis of Reliability

Number Cumulative Percentage

Frequency
Strongly Agree 31 31 13
Agree 92 123 38
Neutral 94 217 39
Not Agree 20 237 8
Strongly Not Agree 3 240 1
Total Responses 240 100
Source: Survey Data (2023)

According to Table 4.5, it can be concluded that 13 percent of the respondents have strongly
agreed on the reliability dimension and 37 percent of the respondents have agreed to the
reliability dimension. Moreover, 27 percent of the respondents stay in the middle as they are
neutral on this particular dimension. However, a minority of 11 percent of the respondents
have not agreed to the reliability dimension and a 1 percent have strongly disagreed on the
reliability dimension. Overall, 51 percent of the respondents have agreed to accuracy,
commitment, trustworthy while 9 percent of the respondents have not agreed to the indicators
34
 INTENTIONALLY KEPT BLANK

4.2.6 Uni-Variate Analysis of Responsiveness

The uni-variate analysis of responsiveness has been measured using five point likert scale
which has five components, stongly agree, agree, neutral, not agree and strongly not agree.
Table 4.5 illustartes on how the respondents have contributed to the responsiveness in total.

Table 4.6 Uni-Variate Analysis of Responsiveness

Number Cumulative Percentage
Frequency
Strongly Agree 51 51 17
Agree 114 165 38
Neutral 92 257 31
Not Agree 32 289 11
Strongly Not 11 300 4
Agree
Total Responses 300 100

Source: Survey Data (2023)

According to Table 4.6, it can be concluded that 17 percent of the respondents have strongly
agreed on the responsiveness dimension and a majority of 37 percent of the respondents have
agreed to the responsiveness dimension. Furthermore, 31 percent of the respondents stay in the
middle as they are neutral on the responsiveness dimension. However, 11 percent of the
respondents have not agreed to the responsiveness dimension and a minority of 4 percent have
strongly disagreed on the responsiveness dimension. Overall, 55 percent of the respondents
have agreed to quickness, customer happiness, time management and willingness while 15
percent of the respondents have not agreed to the indicators.

35
 INTENTIONALLY KEPT BLANK

4.2.7 Uni-Variate Analysis of Assurance

The uni-variate analysis of assurance has been measured using five point likert scale which
has five components, stongly agree, agree, neutral, not agree and strongly not agree. Table
4.7 illustartes on how the respondatns have contributed to the responsiveness in total.

Table 4.7 : Uni-Variate Analysis of Assurance

Number Cumulative Percentage
Frequency
Strongly Agree 54 54 13
Agree 164 218 39
Neutral 161 379 38
Not Agree 36 415 9
Strongly Not Agree 5 420 1
Total Responses 420 100

Source: Survey Data (2023)

According to Table 4.7, it can be concluded that 13 percent of the respondents have strongly
agreed on the assurance dimension and a majority of 39 percent of the respondents have agreed
to the assurance dimension. Furthermore, 38 percent of the respondents stay in the middle as
they are neutral on the assurance dimension. However, 9 percent of the respondents have not
agreed to the assurance dimension and a minority of 1 percent have strongly disagreed on the
assurance dimension. Overall, 52 percent of the respondents have agreed to knowledgeable,
attitude, eagerness, speaking skills politeness and courtesy while 10 percent have not agreed
to the indicators.

36
 INTENTIONALLY KEPT BLANK

4.2.8 Uni-Variate Analysis of Empathy

The uni-variate analysis of empathy has been measured using five point likert scale which
has five components, stongly agree, agree, neutral, not agree and strongly not agree. Table
4.8 illustartes on how the respondatns have contributed to the empathy in total.

Table 4.8 : Uni-Varaite Analysis of Empathy

Number Cumulative Percentage

Frequency
Strongly Agree 13 13 7
Agree 63 76 35
Neutral 75 151 42
Not Agree 26 177 14
Strongly Not Agree 3 180 2
Total Responses 180 100

Source: Survey Data (2023)

According to Table 4.8, it can be concluded that 7 percent of the respondents have strongly
agreed on the empathy dimension and 35 percent of the respondents have agreed to the
assurance dimension. However, 38 percent of the respondents stay in the middle as they are
neutral on the empathy dimension. Moreover, 14 percent of the respondents have not agreed
to the empathy dimension and a minority of 2 percent have strongly disagreed on the empathy
dimension. Overall, 42 percent of the respondents have agreed to communicating languages,
staff knowing needs and personal attention while 16 percent have not agreed to the indicators.

37
 INTENTIONALLY KEPT BLANK

4.2.9 Uni-Variate Analysis of Customer Satisfaction

Table 4.9 shows the uni-variate analysis of customer satisfaction. The table illustartes on how
the respondatns have contributed to customer satisfaction in total.

Table 4.9 : Uni-Variate Analysis of Customer Satisfaction

Number Cumulative Percentage

Frequency
Strongly Agree 28 28 12
Agree 97 125 40
Neutral 86 211 36
Not Agree 26 237 11
Strongly Agree 3 240 1
Total Responses 240 100

Source: Survey Data (2023)

According to Table 4.9, it can be concluded that 12 percent of the respondents have strongly
agreed on the customer satisfaction and a majority of 40 percent of the respondents have agreed
to customer satisfaction whereas 38 percent of the respondents stay in the middle as they are
neutral on the empathy dimension. However, 11 percent of the respondents have not agreed to
customer satisfaction and a minority of 1 percent have strongly disagreed on customer
satisfaction. Overall, 52 percent of the respondents have agreed to extended value, positive
feedback, recommending to others and purchase intention while 12 percent have not agreed to
the indicators.

38
 INTENTIONALLY KEPT BLANK

4.2.10 Uni-Variate analysis of Consumer Buying Behaviour.

Table 4.10 shows the uni-variate analysis of consumer buying behaviour. The table illustartes
on how the respondatns have contributed consumer buying behaviour in total.

Table 4.10: Uni-Variate Analysis of Consumer Buying Behaviour

Number Cumulative Percentage
Frequency
Strongly Agree 31 31 13
Agree 79 110 33
Neutral 100 210 42
Not Agree 25 235 10
Strongly Agree 5 240 2
Total Responses 240 100
Source: Survey Data (2023)

According to Table 4.10, it can be said that 13 percent of the respondents have strongly agreed
on the consumer buying behaviour and 33 percent of the respondents have agreed to consumer
buying behaviour. However, a majority of 42 percent of the respondents stay in the middle as
they are neutral on the consumer buying behaviour. Moreover, 10 percent of the respondents
have not agreed to consumer buying behaviour and a minority of 2 percent have strongly
disagreed on consumer buying behaviour. Overall, 46 percent of the respondents have agreed
to motivation to buy, commitment to buy, value for money, repurchase intention and brand
loyalty while 12 percent have not agreed to the indicators.

39
 INTENTIONALLY KEPT BLANK

4.3 Bi-Variate Analysis

In this section, the researcher approaches to see the relationship between the independent
variables of tangibles, reliability, responsiveness, assurance and empathy with the moderate
variable customer satisfaction and the dependent variable consumer buying behaviour
The researcher choose scatter graph to analyze the relationships.
4.3.1 Tangible’s Relationship with Customer Satisfaction and Consumer Buying
Behaviour.
Figure 4.1 shows the relationship between tangibles and customer satisfaction where the
Figure 4.2 shows the relationship between tangibles and consumer buying behaviour.

25
20
18 y = 0.2952x + 7.1437
20 y = 0.3928x + 5.2038
R² = 0.28092 16 R² = 0.1588
14
Tangibles

Tangibles

15 12
10
10 8
6
5 4
2
0 0
0 10 20 30 40 0 10 20 30 40
Customer Satisfaction Consumer Buying Behaviour

Figure 4.1: The Relationship Between Tangibles Figure 4.2 : The Relationship Between
and Customer Satisfaction Tangibles and Consumer buying Behaviour
Source : Survey Data (2023) Source : Survey Data (2023)

In Figure 4.1, X-axis represents customer satisfaction and the Y-axis represents the tangibles
whereas in Figure 4.2, X-axis represents the consumer buying behaviour and Y-axis represents
the tangibles. Furthermore, as per the Figure 4.1, assuming the other factors remained constant,
by changing one odd of tangible will increase customer satisfaction by 0.392 odd and by
changing tangible variable will account for 28.09 percent of customer satisfaction. However,

40
as per the Figure 4.2, assuming the other factors remained constant by changing one odd of
tangibles will increase the consumer buying behaviour by 0.295 odd and by changing tangible
variable will account for 15.87 percent of consumer buying behaviour. Therefore, tangible is
positively related to customer satisfaction and consumer buying behaviour.

4.3.2 Reliability’s Relationship with Customer Satisfaction and Consumer Buying

Behaviour.

Figure 4.3 shows the relationship between reliability and customer satisfaction whereas the
Figure in 4.4 shows the relationship between reliability and consumer buying behaviour.
25 20
18y = 0.3655x + 8.6016
y = 0.3603x + 8.9239
20 R² = 0.1398 16 R² = 0.1439
14

Reliability
Reliability

15 12
10
10 8
6
5 4
2
0 0
0 5 10 15 20 0 5 10 15 20
Customer Satisfaction Consumer Buying Behaviour

Figure 4.3 : Relationship between Reliability Figure 4.4: Relationship Between

and Customer Satisfaction. Reliability and Consumer
Buying Behaviour

Source : Survey Data (2023) Source : Survey Data (2023)

In Figure 4.3, X-axis represents customer satisfaction and the Y-axis represents the reliability
whereas in Figure 4.4, X-axis represents the consumer buying behaviour and Y-axis represents
the reliability. Furthermore, as per the Figure 4.3, assuming the other factors remained
constant, by changing one odd of reliability will increase customer satisfaction by 0.360 odd
and by changing reliability variable will account for 13.98 percent of customer satisfaction.
However, as per the Figure 4.4, assuming the other factors remained constant by changing one
odd of reliability will increase the consumer buying behaviour by 0.365 odd and by changing
the reliability variable will account for 14.39 percent of consumer buying behaviour.

41
Therefore, reliability is positively related to customer satisfaction and consumer buying
behaviour.

4.3.3 Responsiveness’s Relationship with Customer Satisfaction and Consumer

Buying Behaviour.

Figure 4.5 shows the relationship between responsiveness and customer satisfaction
whereas the Figure 4.6 shows the relationship between responsiveness and consumer buying
behaviour.

25 20
y = 0.4043x + 6.86 18
20 16 y = 0.3691x + 7.2332
Responsiveness

R² = 0.339

Responsiveness
14 R² = 0.28269
15 12
10
10 8
6
5 4
2
0 0
0 10 20 30 0 5 10 15 20 25
Customer Satisfaction Consumer Buying Behaviour

Figure 4.5: Relationship Between Responsiveness Figure 4.6 : Relationship Between

and Customer Satisfaction Responsiveness and
Consumer Buying Behaviour.
Source : Survey Data (2023) Source : Survey Data (2023)

In Figure 4.5, X-axis represents customer satisfaction and the Y-axis represents the
responsiveness whereas in Figure 4.6, X-axis represents the consumer buying behaviour and
Y-axis represents the responsiveness. Furthermore, as per the Figure 4.5, assuming the other
factors remained constant, by changing one odd of responsiveness will increase customer
satisfaction by 0.404 odd and by changing responsiveness variable will account for 33.89
percent of customer satisfaction. However, as per the Figure 4.6, assuming the other factors
remained constant by changing one odd of responsiveness will increase the consumer buying

42
behaviour by 0.369 odd and by changing the responsiveness variable will account for 28.26
percent of consumer buying behaviour. Therefore, responsiveness is positively related to
customer satisfaction and consumer buying behaviour.

4.3.4 Assurance’s Relationship with Customer Satisfaction and Consumer Buying

Behaviour.

Figure 4.7 shows the relationship between assurance and customer satisfaction whereas the
Figure 4.8 shows the relationship between assurance and consumer buying behaviour.

25 20
y = 0.4256x + 3.4768 y = 0.4322x + 3.0637
20 R² = 0.4165 15 R² = 0.4298

Assurance
Assurance

15
10
10
5
5
0
0
0 10 20 30 40
0 10 20 30 40
Consumer Buying Behaviour
Customer Satisfaction

Figure 4.7: The Relationship Between Assurance Figure 4.8: The Relationship Between
Customer Satisfaction Assurance and Consumer
Buying Behaviour
Source : Survey Data (2023) Source : Survey Data (2023)

In Figure 4.7, X-axis represents customer satisfaction and the Y-axis represents the assurance
whereas in Figure 4.6, X-axis represents the consumer buying behaviour and Y-axis represents
the assurance. Furthermore, as per the Figure 4.7, assuming the other factors remained
constant, by changing one odd of assurance will increase customer satisfaction by 0.425 odd
and by changing assurance variable will account for 41.64 percent of customer satisfaction.
However, as per the Figure 4.8, assuming the other factors remained constant by changing one
odd of assurance will increase the consumer buying behaviour by 0.432 odd and by changing

43
the assurance variable will account for 42.97 percent of consumer buying behaviour.
Therefore, assurance is positively related to customer satisfaction and consumer buying
behaviour.

4.3.5 Empathy’s Relationship with Customer Satisfaction and Consumer Buying

Behaviour.

Figure 4.9 shows the relationship between assurance and customer satisfaction whereas the
Figure 4.10 shows the relationship between assurance and consumer buying behaviour.

25 20
y = 0.5387x + 8.6566 18 y = 0.7059x + 6.7434
20 R² = 0.1782 16 R² = 0.3061
14
Empathy

15

Empathy
12
10
10 8
6
5 4
2
0 0
0 5 10 15 0 5 10 15
Customer Satisfaction Consumer Buying Behaviour

Figure 4.9 : The Relationship Between Empathy Figure 4.10: The Relationship between
Customer Satisfaction Empathy and Consumer Buying
Behaviour
Source : Survey Data (2023) Source : Survey Data (2023)

In Figure 4.9, X-axis represents customer satisfaction and the Y-axis represents the empathy
whereas in Figure 4.10, X-axis represents the consumer buying behaviour and Y-axis
represents the empathy. Furthermore, as per the Figure 4.9, assuming the other factors
remained constant, by changing one odd of empathy will increase customer satisfaction by
0.538 odd and by changing empathy variable will account for 17.81 percent of customer
satisfaction. However, as per the Figure 4.10, assuming the other factors remained constant by
changing one odd of empathy will increase the consumer buying behaviour by 0.705 odd and
by changing the empathy variable will account for 30.61 percent of consumer buying

44
behaviour. Therefore, empathy is positively related to customer satisfaction and consumer
buying behaviour.

4.4 Estimation of Empirical Model

Under this section, the researcher will carry out the sample adequacy test, the reliability test,
model fit and regression analysis to find out how far the research model is fit. Furthermore, in
section 4.4.1, the researcher will find out the sample adequacy using Kaiser-Meyer-Olkin
Measure of Sampling Adequacy and in section 4.4.2, the researcher will the reliability of the
study using Cronbachs alpha

4.4.1 Sample Adequacy

In order to measure the sample adequacy, Kaiser-Meyer-Olkin Measure of Sampling
Adequacy is used with the help of SPSS version 21.

Table 4.11: KMO and Bartlett's Test for Sample

Adequacy
KMO and Bartlett's Test’s Sample Adequacy

Kaiser-Meyer-Olkin Measure of Sampling

.835
Adequacy.
Bartlett's Test of Approx. Chi-Square 192.955
Sphericity df 21
Sig. .000
Source: Survey Data (2023)

As per Table 4.11, the Kaiser-Meyer-Olkin Measure of Sampling Adequacy is 83.5 percent
which indicates the sample size chosen for this study is adequate for the data analysis.
Furthermore, the Bartlett's Test of Sphericity significance is 0 which indicates a perfect
significance.

45
4.4.2 Reliability
In order to test the reliability of the study, Cronbach’s Alpha is done with the help of SPSS
version 21.
Table 4.12: Cronbach’s Alpha – Reliability Test
Reliability Statistics

Cronbach's
N of Items
Alpha
.855 7

Source: Survey Data (2023)

The researcher included all the 7 variables of the conceptual framework which includes 5
independent variables, one moderate variable and one dependent variable to statistically test
the reliability of this study. Cronbach`s alpha is the indicator of the reliability whereby
according to the current study the reliability is 85.5 percent respectively. This indicates how
far the sample findings would represent the population changes and hence, it can be concluded
that the data gathered is 85.5 percent reliable.

4.4.3 Validity
The validity of the contenet,data and the phase is measured by using the expert review. The
research supervisor has been selected as the expert and after couple of mediations the validity
of the content, data and the phase of the study has been validated by the expert.
4.4.4 Model Fit
Under this section, in order to find out the model fit of the study, the researcher will analyze
CMIN/DF, GFI, PGFI, RMR and RMSEA and assess as to how far the model is fit.
4.4.4.1 CMIN/DF
CMIN/DF is the minimum discrepancy divided by its degrees of freedom. The closer it is to
zero, the better it is. Many researchers have recommended using ratios as low as 2 or as high
as 5 to indicate a reasonable fit. As per SPSS Amos build in services, ratio of approximately
five or less 'as beginning to be reasonable. However, x2 to degrees of freedom ratios in the

46
range of 2 to 1 or 3 to 1 are indicative of an acceptable fit between the hypothetical model and
the sample data.
Table 4.13: CMIN/DF

Model NPAR CMIN DF P CMIN/DF

Default model 23 12.108 5 .033 2.422

Saturated model 28 .000 0

Independence
7 203.899 21 .000 9.709
model
Source: Survey Data (2023)

According to table 4.13 shows that the minimum discrepancy divided by degrees of freedom
which is the CMIN/DF for the default model is 2.422 (12.108/5) whereas for the independence
model the CMIN/DF is 9.709. As per the norm in section 3.8, this model is fit.

4.4.4.2 GFI, PGFI and RMR

Since the researcher has used the SPSS AMOS version 21, in order to analyze the model fit of
this research, the Goodness of fit index (GFI), Parsimony goodness of fit index (PGFI), and
the Root mean square error of approximation (RMSEA) has being used. The Table 4.14 shows
the model fit of this research.

Table 4.14: GFI, PGFI and RMR

Model RMR GFI AGFI PGFI

Default model .398 .950 .718 .170
Saturated model .000 1.000
Independence model 3.625 .401 .202 .301

Source: Survey Data (2023)

Initially, GFI should be ideally less than one to indicate a close model fit. If GFI is equal to
one, then it indicates a perfect fit. However, according to Table 4.14, it shows that GFI is equal
to 0.950 which is 95 percent and it indicates a closer fit. In addition, the PGFI is shown as
0.170. Furthermore, RMR of zero indicates a perfect fit and the above table shows RMR as

47
0.398 which is almost close to zero. Therefore, it indicates that there is a close fit in this
research model.

4.4.4.3 RMSEA

Practical experience has made us feel that a value of the RMSEA of about .05 or less would
indicate a close fit of the model in relation to the degrees of freedom. This figure is based on
subjective judgment. It cannot be regarded as infallible or correct, but it is more reasonable
than the requirement of exact fit with the RMSEA = 0.0

Table 4.15: RMSEA

Model RMSEA LO 90 HI 90 PCLOSE

Default model .155 .040 .269 .060
Independence model .384 .337 .433 .000
Source: Survey Data (2023)

Even though the RMSEA is 15 percent, CMIN/DF, GFI and PGFI indicates a perfect fit and
hence it could be subjectively concluded that the model is perfect.

48
4.4.5 Regression Analysis
Regression analysis is the way of linking variable one to another. Simply assess of relationship
between variables. By the use of regression analysis predictions is made based on the data.

Table 4.16: Relationship Between Empathy, Assurance, Tangibles, Reliability

and Responsiveness to Customer Satisfaction

Standard Standard Significance

Total Effect Total Error Level
Empathy 0.015 0.140 0.900

Assurance 0.423 0.136 0.010 **

0.010 **
Tangibles 0.273 0.100

Reliability -0.024 0.117 0.880

Responsiveness 0.251 0.126 0.040 **

Moderate Variable: Customer Satisfaction

Source: Survey Data (2023)

*** 99 percentage of confidence interval, ** 95 percentage of confidence interval,

* 90 percentage of confidence interval.
According to Table 4.16, when empathy increase by one odd, customer satisfaction is increased
by 0.015 odd and when assurance increase by one odd, customer satisfaction is increased by
0.423 odd. Moreover, when tangibles increase by one odd, customer satisfaction is increased
by 0.273 odd and when responsiveness increase by one odd, customer satisfaction is increased
by 0.251 odd. Furthermore, under 95 percent confidence interval assurance, tangible and
responsiveness have a significant impact on customer satisfaction. However, reliability has an
inverse effect of -0.024 and it’s does not have any significance with customer satisfaction.
According to the literature of Agbor (2011), who conducted a study on the relationship between
customer satisfaction and service quality, Agbor (2011) conducted a survey and one of his
finding indicated that reliability had an inverse effect with service quality and customer
satisfaction. According to the definition of reliability, i.e. "the capacity to perform the
guaranteed benefit constantly and precisely", (Parasuraman et al., 1988. p.23). This can be

49
justified in Cooperative Insurance PLC Colombo’s scenario as it could mean that even if it is
a valid variable, customers see it as a compulsory attribute and not an essential attribute to
make them shop at Cooperative Insurance PLC Colombo.

Table 4.17: Relationship Between Empathy, Assurance, Tangibles, Reliability,

Responsiveness and Customer Satisfaction to Consumer Buying Behaviour

Standard Standard Significance

Total Effect Total Error Level

Empathy 0.011 0.105 0.900

Assurance 0.318 0.101 0.010 **

Tangibles 0.205 0.079 0.010 **
Reliability -0.018 0.088 0.880

Responsiveness 0.189 0.095 0.040 **

Customer 0.010 **
Satisfaction 0.753 0.060

Dependent Variable: Consumer Buying Behaviour

Source: - Survey data 2016

According to Table 4.17, when empathy increase by one odd, consumer buying behaviour is
increased by 0.011 odd and when assurance increase by one odd, consumer buying behaviour
is increased by 0.318 odd. Moreover, when tangibles increase by one odd, consumer buying
behaviour is increased by 0.205 odd and when responsiveness increase by one off, consumer
buying behaviour is increased by 0.189 odd where an increase by one odd in customer
satisfaction will bring about an increase of 0.753 odd in consumer buying behaviour. However,
reliability has an inverse effect of - 0.018 on consumer buying behaviour. Ultimately under 95
percent confidence interval assurance, tangibles, responsiveness and customer satisfaction
have a significant impact on consumer buying behaviour.

50
4.5 Chapter Summary

This chapter includes the analysis of the data that has been collected by the researcher. The
first data analysis is the uni-variate analysis where each and every independent variable along
with the moderate and dependent variable, the uni-variate analysis included the understanding
on every variable separately. In order to provide the understanding and relationship between
the independent variable, moderate and dependent variable, scatter graphs have been
illustrated. The sample adequacy results was analyzed by the KMO and Bartlett’s test where
the results were amounted to 0.835, the reliability of the data has been founded out through the
Cronbach’s Alpha which resulted as 0.855 and the final data analyses under the model fit
included three tests such as CMIND/DF GFI, PGFI and RMSEA where the CMIN/DF was
2.422, GFI was 0.950, PGFI was 0.170 and RMSEA was 0.155 and finally the co-efficient
table showed all the independent variables were positively related to consumer buying
behaviour and customer satisfaction whereas reliability showed an inverse effect on the
relationship.

51
 CHAPTER FIVE: QUALITATIVE DATA ANALYSIS

5.1 Introduction
The case study approach was used for qualitative analysis. During the qualitative analysis, an
in-depth interview was held with the general manager of Cooperative Insurance PLC Colombo
in order to get ideas, thought and experiences of himself. The general manger Mr. Mahesh
Fernando shared his thoughts on all the variables relating to the conceptual framework.

5.1.1 Case One.

His thoughts on the first independent variable tangibles was as follows:

‘There are two types of customers who check-in at Cooperative Insurance

PLC Colombo, those two categories are ones who visit Sri Lanka for
business purposes and the other category is the one who visit Sri Lanka
for vacation and explore more about the Sri Lankan culture. the
customers who visit Sri Lanka for business purposes, they are happy
about the location of the insurance since its located in the heart of the city
and all the reachable are closer. However, the tourists who visit the
country for vacation are sometimes not happy about the location because
they wanted to explore the nature and the culture and since Cooperative
Insurance PLC Colombo is located in the heart of the city, they will have
to travel a bit to explore their requirements. Most of the customers who
stay at Cooperative Insurance PLC Colombo are happy about the
internal environment and they love the internal environment provided by
the insurance administration and he proved that with the customer’s
feedback book. However, there were few exceptional customers who were
demanding for more additions on the internal environment. the customers
like the interior structure of the insurance and they loved the parks
provided internally. Thereafter the customers are also satisfied about the
surrounding of the insurance because the element that adds beauty to the
city ‘World Trade Centre” is located right behind Cooperative Insurance
PLC Colombo and Galle Face which is one of the best attraction of the
country is 2 minutes walk away from the insurance. They mostly liked the

52
 old Dutch Hospital behind the insurance and even some customers said
that is one of the most reason why the consumers purchased at
Cooperative Insurance PLC Colombo. Visitors mainly liked the old Dutch
Hospital because of the ancient stones that we’re used to built and the
ancient products that are sold in the premises. The customers sometimes
complain on the processing time of the food and check in time and he
added that the admin panel is working at the best to improve in that
aspect. they have added a team to look into the cleanliness of the toilets
because they get neutral comments from the customers and lately after the
addition of the special team, the customers are happy about the
cleanliness dimension’ (Fernando 2016).

5.1.2 Case Two.

When Mr mahesh concluded his ideas on tangibility in such a way his thoughts regarding
the reliability was:
‘There is some conspiracy on this factor since the tourists are from
different parts of the world and some do not have any idea of travelling in
Sri Lanka. When the customers ask for information and when it’s
provided, sometimes they additionally ask the front office to arrange them
a vehicle and more often they ask for three wheelers which is more famous
in Sri Lanka. When they return back to the insurance premises they are
not happy with the cost for the three wheelers and even though its not
under our control, perhaps some tourists don’t understand that and we
absolutely understand their position. Despite this fact, our front desk
representatives are thoroughly trained to provide committed service that
would satisfy any customers and they make sure the customers re-
purchase a stay in our insurance when they visit the country again.
Moreover, our house keeping service who makes sure the insurance is
kept clean are trustworthy that the customers can keep their safeties in
the room and leave without any hesitation. The insurance is trustworthy
and we have CCTV cameras under operation 24/7. Sometimes there are

53
 representative in the insurance to accompany the older people to nearby
places and that is one of our special service to customers who are above
55 and that’s an optional service. If the customers want assistance they
could request for it and our special panel is always ready to satisfy them
by going an extra step above service. However, there are some local
customers who expect un ethical help from the insurance and since
Cooperative Insurance PLC Colombo is a well reputed five-star
insurance in the city, they don’t agree and they are always perform ethical
practices and with a smile he added, they at times make a fuzz at the
premises in the late night hours’ (Fernando 2016).

5.1.3 Case Three.

When the ideas on reliability was gathered in such a way the case study gathered based
on responsiveness is as follows:
‘the perception of customers are different. Every customer has different
mindset and one customer may feel the service is prompt while another
customer would not be satisfied. He further added, during the training
program all the staffs were taught to perform any process as fast as they
could to eliminate dissatisfactions. when customers engage in any
conversation with me, some do appreciate the promptness of the service
while some would recommend for improvement. The representatives also
take more care to solve any problems bought up by the customer and in
2016 we have added three more help desks to improve more on that
aspect. There are customers who send us compliments telling the staffs
are willing to help us and down to earth. any customers who he
communicated with so far never told a weak point in the willingness of the
staffs. Furthermore, the staff from top level to lower level are down to
earth and they are being trained by the philosophy “Customers are the
king”. In our Al la carte restaurants, we make the food once its ordered
to make sure the food is fresh and hot and it would ensure that the
customers enjoy the delicious food. However, some customer’s complaint

54
 about the time due to their busy business schedules for which we have
Buffet system to provide them food then and there’ (Fernando 2016).

5.1.4 Case Four

As the case study based on responsiveness concluded in such a positive way the ideas
regarding the assurance were:
‘the staffs are well trained and to serve customers better. the same
philosophy mentioned earlier “Customers are the King”. every
month there will be a short training program for all the staffs and
various programs and benefits to motivate the employees are done
in order to mentally strengthen their mind towards the hospitality
the staffs provide to the customers. Staffs are being continuously
taught of new skills to gain knowledge in the particular prospective.
they have a separate hospitality team lead by Ms. Shany
Sathyadasa to make sure that the staffs are respectful when serving
the customers with all the skill training programs, our staffs have
naturally adapted with positive attitude at the insurance when
handling customers. as a job requirement we make sure that they
have the necessary language fluency in order to work at the
insurance. Since it’s a five-star insurance, we make sure all our
staffs are fluent in at least three languages especially English
which is one of the most prominent language. Finally, all the staffs
at Cooperative Insurance PLC Colombo are polite with the
customers and they are eager to help out the customers and they
ensure at the end of the day any customer who stays at the
insurance is satisfied with the service offered’ (Fernando 2016).

55
5.1.5 Case Five
The ideas and information on the final independent variable which is the empathy was
discussed as follows by him:
‘the importance of the empathy dimension. He said, in a insurance
every customer wanted to be treated better than others and that’s a
basic part in human nature. We as the customer’s representative,
the team at Cooperative Insurance PLC Colombo gives the
maximum effort to give personal assistance to the customers by
having the goal of the Insurance in mind. Every employee at this
insurance wants each and every customer to be satisfied during the
stay of the insurance and we leave foot prints in their mind to ensure
their re-purchasing intention is high at Cooperative Insurance PLC
Colombo when they think of the word vacation. All our staffs are
continuously taught of communication skills in every training
programs as communication is one of the significant factor when
providing service to a customer. the benefits Cooperative Insurance
PLC Colombo provides for the chosen employee for the best
employee of the month. All our staffs are competitively working hard
to satisfy the customers and they ensure maximum effectiveness’
(Fernando 2016).

5.1.6 Case Six

The information regarding the moderate variable customer satisfaction and the
dependent variable consumer buying behaviour of the study was discussed with Mr.
Mahesh and his response was as follows:
‘our customers who stay at out insurance are giving positive feedback but
not all. There are uncertainties but most of them are giving positive
feedback and sometimes they mention the recommendations too where the
insurance administration takes a serious note of it and work on to

56
 implement the recommendation so that when they visit us the next time
they are satisfied and will also be motivated to give us more comments.
There are quite a few loyal customers who visit out insurance regularly
when they visit Sri Lanka, mostly the business people who visit the country
for conferences and business purposes. We are also happy and proud to see
some loyal customers using their social media blogs to check-in at the
insurance and give positive feedbacks on their blogs which we appreciate
from the bottom of our heart. In the post, they highly recommend
Cooperative Insurance PLC Colombo to their friends. Overall most of the
customers are happy and satisfied with the insurance and they have made
continuous re-purchasing and remain as our loyal customer (Fernando
2016).

5.2 Chapter Summary

This chapter included the qualitative analysis data that was gathered during the case study
approach. Five case were gathered based on the opinions gathered on the five independent
variables, moderate variable and the dependent variables. The case study information was
gathered only by one individual that is from the manager of the insurance Cooperative
Insurance PLC and all the thoughts, ideas and experiences of the manager were collected.

57
 CHAPTER SIX: DISCUSSION

The above study which focuses on the impact of service quality on consumer buying behaviour
with special reference to Cooperative Insurance PLC Colombo. According to the literature,
majority of the scholars have suggested that in today’s competitive market, service quality is a
key factor in satisfying customers through which the consumer's buying behaviour is
influenced. In addition, it is also suggested that developing long term customer relationships
is vital for an organization to satisfy the customers and better service quality can improve the
long term relationship through which the organization could enhance the competitive
advantage in a competitive market place.

Tangibility as a factor is one of the major reasons for a customer to choose a insurance.
Customer choose to dine out or stay in a insurance because they wanted to experience a better
atmosphere. Service quality does not mean just offering a delicious food. It’s about how
comfortable a customer feels when they stay at the insurance. Initially, the customer should be
happy with the location of the insurance. If the customer decides to stay at a five stat insurance
and if the location of the insurance is not in a suitable place, there Is a high possibility for the
customer to change his mind and stay at a different insurance whose location is good. Secondly
the customer would look into the internal environment when choosing a insurance. The
customer should feel relax when they stay at the insurance and they do not want an environment
where they don’t feel relaxed. The internal environment can give a customer a relaxing mind
set if the environment is set in an environmentally friendly way that with going ahead with
lights that forces the customer to feel like they are at a carnival. Moreover, when a insurance
is surrounded with better natural resources like beach etc. the insurances have an added
advantage to attract customers.

As per the finding of the current study, it was found that 61 percent of respondents have agreed
to the indicators of tangible dimension and hence can be found that tangible factors are being
considered largely by the customers and it can be found that Tangibility has a positive
relationship with consumer buying behaviour and customer satisfaction. According to the
findings of the current study, it was found that overall mean score of tangible was 4.48.

58
The findings of the current study is in-consistent with the study of Rao and Sahu (2013) whose
overall mean study was 4.45. The mean score of the both the studies are almost same and hence
it can be concluded that there is a relationship between both the studies findings. Moreover,
tangibility factor has been considered has an essential dimension of service quality by authors
such as Parasuraman et al. (1985), Zeithmal et al.(2023) and Kumar and Barani (2012).
Parasuraman et al (1985) have said tangibility is one of the main factors that influences service
quality and it positively impacts the buying behaviour of consumer. Furthermore, Kumar and
Barani (2012), in their study also stated that tangibles were positively connected to consumer
satisfaction.

Reliability as a factor is also another important dimension in service quality. A customer when
choosing a insurance will definitely have an idea about how the insurance is and if the
insurance doesn’t give the expected satisfaction, the customers lose interest and may not
repurchase again. Staffs should be in a way that customers will keep their trust on them and
when an information is provided to a customer, it needs to be accurate. If the information
provided to the staff is not accurate and if the customer ends up at the wrong place, the
customer’s mindset about the insurance’s service will definitely degrade and that will have a
serious impact on the consumer’s buying behaviour. According to the findings of the current
study, 50 percent of the respondents have agreed to the indicators of reliability dimension and
hence can be found that customers consider reliability dimension largely. However, the final
finding of the current study indicated that reliability has an inverse effect and was found to
have no impact on customer satisfaction and consumer buying behaviour. Moreover, reliability
was found to inverse in relationship as per the study conducted by Agbor (2011) and hence the
findings of the current study is in-consistent with Agbor (2011). Furthermore, in a study
conducted by Karunaratne and Jayawardene (2020) reliability factor had not satisfied the
customers.

Assurance is yet another important determinant of service quality. When a customer chooses
a insurance, the staffs should have the necessary knowledge in order to guide the customers
throughout the period of time that the customers stay at the insurance. Meanwhile, the attitude
of the work and the eagerness within the staff in order to guide and help the customers should

59
be positive, therefore the customers are liberated to suggest or demand for requirements. No
matter having the knowledge attitude and eagerness on the positive side of the staff if the
speaking skills are not up to the standard, therefore speaking skills is vital. It is important for
the insurance to train their staffs with all the relevant knowledge that is need to perform better
service. Staffs need to be courteous when they perform an action in-front of the customer and
the positive attitude when they approach the customers can impact on the perception of the
customer. Customers basically like insurances where the staffs are friendly and eager to
provide better service. One of the key element is the language they use to communicate with
the customers and the communicating skills. As per the current study, it was justified that staffs
are well trained with special communication skills program. According to the findings of the
current study, it was found that 37 percent of people have agreed to the indicators of assurance.
Hence it can be concluded that customers look in to assurance has an important factor.
Furthermore, from the findings of the current study, it can be concluded that assurance is
positively related to consumer buying behaviour and customer satisfaction. Based on the
findings, overall mean score of assurance was found to be as 4.95. This finding is in-consistent
with the findings of Rao and Sahu (2013) whose overall mean score of assurance was found to
be 4.37. Hence it can be concluded that there is a relationship between both the studies.
Moreover, the study is co-related with the literature since assurance has been stated as an
important factor by authors like Parasuramn et al (1985), Rao and Sahu (2013), Karunaratne
and Jayawardena (2020).

Responsiveness is the other determinant of service quality. When a customer checks in at a

insurance, the time management and the speed of work are factors highly considered. If an
individual is checked in for a business conference purpose, the food received at the right time
is very important. If there is a delay in food received, the customer will also get delayed on to
the conference too. Therefore, in order to keep the customers happy, it is essential to provide
the service at the right time. According to the findings of the current study, it was found that
37 percent of respondents have agreed to the responsiveness factor and it can be concluded
that responsiveness do play a role in customer satisfaction even though its not like the other
dimensions like tangibles and reliability. Based on the findings, the overall mean score of
responsiveness was found as 3.54. This was in consistent with the findings of Rao and Sahu

60
(2013) whose overall mean score for responsiveness 4.33. Even though there is a small
difference it could be concluded that there is a relationship between the findings. Moreover,
the findings are in consistent with the literature of Karunaratne and Jayawardene (2020), Yavas
et al (1997) and Rao and Sahu (2013).

Empathy is the final determinant of service quality that was discussed in the current study.
When a customer chooses a insurance to stay, generally the customer would want to stay in a
insurance where there are no language barriers. If there is a language barrier between the staffs
and the customer, it would create a gap and hence there are high chances for customers to be
dis-satisfied. From a customer’s point of view, customer’s wanted to feel that they are not away
from home. They will expect more caring from the staffs when providing a service and
especially when personal attentions are given to customers, they will like they are being treated
like a king and hence the customers are satisfied. From the findings of the current study
empathy has been considered as a factor that determines customer satisfaction and thus
consumer buying behaviour. From the analysis done in the current study it was found that
Cooperative Insurance PLC Colombo offers competition among the staffs to improve the
competiveness among them which will result in better service provided. When the staffs are
competing to each other, customers tend to get more advantage since they get a superior quality
service. The findings of the current study on empathy are in consistent with the studies done
by authors such as Parasuraman et al. (1985), Rao and Sahu (2013), Yavas et al. (1997) Jamal
and Anastasiadou (2019).

Overall, based on the findings of the current study, Tangibles, Assurance, Responsiveness and
Empathy are positively related to customer satisfaction and hence the consumer buying
behaviour. Among these determinants, Assurance was considered as the critical dimension of
the service quality that influences consumer buying behaviour through customer satisfaction
whereas empathy was found to be the least critical dimension. Furthermore, reliability was
found to inversely related with consumer buying behaviour through customer satisfaction.
Authors like Karunaratne and Jayawardene (2020) tangibility, responsiveness and assurance
were they dominant dimension where Yavas et al. (1997) stated tangibility, responsiveness

61
and empathy are more critical indicators of customer satisfaction. Furthermore, this study also
made use of the advice given by Negi (2019) that Empathy, assurance and tangibles should not
be neglected in evaluating service quality. However, inverse effect of reliability was supported
by Agbor (2020). Hence, it could be concluded that findings of the current study are in
consistent with the literatures discussed.

62
 CHAPTER SEVEN: CONCLUSION, RECOMMENDATION AND FUTURE
RESEARCH

In order to collect the data, the researcher selected 60 respondents at Cooperative Insurance
PLC Colombo and distributed a questionnaire to collect data. Once the data was collected, the
researcher used SPSS version 21 and SPSS AMOS version 22 to analyze the data. From the
data analysis, it was justified that service quality has a positive impact on customer satisfaction,
and thus consumer buying behaviour. An overall analysis was also done and illustrated through
graphical method which shows a positive relationship between the determinants of service
quality, customer satisfaction and consumer buying behaviour. Service quality and satisfaction
are considered to influence, reputation, money related achievement and future lifespan of firms
because of their impact on consumer's behavioural intention and attitudes. Service
organizations have been increasing steeply in the late decades, while consumers demand for
top notch quality of service is expanding. To stay focused, the insurance needs to investigate
consumers desire and perception towards the service nature of its front office staff. In this study
the SERVQUAL instrument, created by Parasuraman (1985), has been connected in outlining
the survey by utilizing service quality's five determinants.

Based on the facts and data analysis, it can be stated that customer satisfaction has a positive
impact on consumer buying behaviour. However, in order to satisfy the customers,
Cooperative Insurance PLC Colombo should adopt better service quality. The top management
of the insurance should inject the philosophy of "customer is the king concept" to the minds of
every employee and thereby enhance service quality in every aspect of the insurance. In
addition, the front line staff of the insurance should provide an excellent service to the
customers and it is recommended for Cooperative Insurance PLC Colombo to provide
effective training program to the front line employees. In this situation, the front line
employees who directly serve the clients should be well trained and be prepared to go the extra
mile. Therefore, it is recommended that if the insurance is able to implement better service
quality, it will satisfy the customers and thereby increases the consumer's buying behaviour.

Consequently, further study is exceptionally key in the matter and the research could be

63
widened to incorporate other star insurances of the city. It would be valuable to conduct further
research concerning customers’ attitudes towards the quality of service. Since the study did
not consider workers who give the service to clients, further research could be to study the
relationship among consumer loyalty, service quality and job satisfaction with the utilization
of all the five SERVQUAL measurements, to check whether satisfaction level of
representatives is related with their service and/or consumer loyalty. Another further study
could be to test among the determinants with the utilization of another statistical technique to
see which of them will be more critical to service quality, consumer loyalty and customer
satisfaction.

64
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APPENDIX
Appendix 1: Questionnaire
Impact of Service Quality on Consumer Buying Behaviour
Ragulan,S
[email protected]
Dear Respondent,
Thank you for taking part in the survey. This should take not more than 10 minutes. The date
from this survey will be used for a research study titled “The impact on service quality on
consumer buying behaviour” This survey was designed for the partial fulfillment of BSc
(Hons) Business Management program offered by London South Bank University. The
information collected through this survey will be kept confidential.
Thank You.
Nationality: Sri Lankan Tourist Gender: M F
Age:

Occupation (circle one) : Student Full time worker Part-time worker

Total expenditure per month:

Tick your preference (Strongly Disagree= 1. Disagree= 2. Neutral= 3. Agree= 4. Strongly
Agree= 5)
Section 1: Tangibles 5 4 3 2 1

1) I feel happy with the location of the insurance

2) I feel that the insurance maintains a good internal
environment
3) Surrounding of the insurance make me feel happy

4) I feel that the insurance has an attractive interior

structure
5) I received my check-in and food on time
6.) I feel that the toilets are clean

Section 2: Reliability
6) I feel that I am provided with accurate information
7) I feel the front office staffs are committed in providing
information
8) I think the staffs are trustworthy
9) I think the staffs are going an extra step to make
customers happy
Section 3 Responsiveness

72
10) I feel the service is very prompt
11) I think my problems are solved soon by the
representatives
12) I feel the staffs are willing to help me
13) I feel that the insurance is committed to make customers
happy
14) I get my food served quickly after ordered?
Section 4 Assurance
15) I feel that the staffs are well trained to serve customers
better
16) I feel that the staffs are knowledgeable

17) I think that the staffs are courteous and respectful

18) I feel that the staff has a positive attitude when serving
customers
19) I feel that the staffs are eager to serve the customers

20) I feel that the staffs communicate with appropriate

language
21) I feel the staffs are polite with the customers

Section 5 Empathy

22) I feel staffs give personal attention to customers

23) I feel staffs are ready to address any special needs

customers have
24) I feel the customers are able to communicate effectively
with staffs
Section 6 Customer Satisfaction

25) I will give positive feedback about the insurance

26) Would you purchase a stay at the insurance?

27) Do you feel that you are a loyal customer of the

insurance
28) I Would recommend the insurance to others

Section 7 Consumer Buying Behaviour

29) I feel I am motivated to check in at this insurance

73
30) I feel I am committed to stay at this insurance

31) I feel I have the value for money at this insurance

32) I have an intention to choose this insurance in my future

stay

34 As per your opinion, your expenditure as a percentage of your income is how much?
___________________________________________________________________________
___________________________________________________________________________

35. What are the factors you consider when selecting a insurance during the vacation?

___________________________________________________________________________
___________________________________________________________
___________________________________________________________________

36. What more improvements would you want from the insurance to serve you better?

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

74