CAPITAL UNIVERSITY OF SCIENCE AND

TECHNOLOGY, ISLAMABAD

Impact of Internal Marketing on Faculty’s

Service Quality with Mediating Role of Job
Satisfaction: A Study of Higher Education
Institutions of Pakistan

by
Arif I. Vaseer
A thesis submitted in partial fulfillment for the
degree of Doctor of Philosophy

in the
Faculty of Management & Social Sciences
Department of Management Sciences

2018
 i

Impact of Internal Marketing on Faculty’s

Service Quality with Mediating Role of Job
Satisfaction: A Study of Higher Education
Institutions of Pakistan
By
Arif I. Vaseer
(PM071002)

Dr. Krisztina Kolos, Associate Professor

Corvinus Business School
Corvinus University of Budapest, Hungary

Dr. Monika Alt, Associate Professor

Universitatea Babes-Bolyai, Romania

Dr. Khurram Shahzad

(Thesis Supervisor)

Dr. Sajid Bashir

(Head, Department of Management Sciences)

Dr. Arshad Hassan

(Dean, Faculty of Management & Social Sciences)

DEPARTMENT OF MANAGEMENT SCIENCES

CAPITAL UNIVERSITY OF SCIENCE AND TECHNOLOGY
ISLAMABAD
2018
 ii

Copyright
c 2018 by Arif I. Vaseer

All rights reserved. No part of this thesis may be reproduced, distributed, or

transmitted in any form or by any means, including photocopying, recording, or
other electronic or mechanical methods, by any information storage and retrieval
system without the prior written permission of the author.
 iii

This thesis is dedicated to my father Mr. Izzatullah Vaseer and my mother (late),
who always loved me unconditionally and whose good examples have taught me to
work hard for the things that I aspire to achieve in life. This work is also dedicated
to my wife and my lovely kids Omair and Easha, who have been a constant source
of support and encouragement during the challenging, arduous, and grueling stages
which were part and parcel of the PhD process.
 vii

List of Publications
It is certified that following publication(s) has been made out of the research work
that has been carried out for this thesis:-

1. Vaseer, A., Shahzad, K. (2016). Internal Marketing, Job Satisfaction and

Service Quality: A Study of Higher Education Institutions of Pakistan. The
Dialogue, Vol. XI, No. 04, Oct-Dec, 2016.

(Arif I. Vaseer)
Registration No: PM071002
 viii

Acknowledgements
It is the grace of ALMIGHT ALLAH, The Gracious and All Compassionate, that
has led this work to its completion.

I sincerely thank my CUST family and colleagues, especially Dr. Muhammad

Mansoor Ahmed (VC), Dr. Arshad Hassan (Dean), and Dr. Sajid Bashir (HOD)
Department of Management Sciences, Capital University of Science and Technol-
ogy, Pakistan for their inspiration, guidance and support all through my long
association with CUST.

I will be committing a grave injustice if I do not mention about my supervisor Dr.

Khuram Shahzad, for his dedicated and unmatchable supervision, which lead to
the completion of this study. He has been extremely patient, helpful and cooper-
ative throughout this endeavor.
 ix

Abstract
There is an increasing interest in research on internal marketing in the marketing
services literature. This has arisen largely from the suggestion that internal mar-
keting contributes to services companies’ success through its role in developing
customer satisfaction.

The birth of Internal Marketing has its roots in the 1980’s, and originated with
the purpose to provide continuous and consistently satisfying service quality. The
term Internal Marketing has been derived from the word ’internal customers’ which
was first used by Berry (1981). Internal Marketing considers employees as internal
customers and continuously aims to have them motivated in their jobs to encourage
improved performance and better customer satisfaction.

This thesis examines the depth of understanding and applicability of Internal

Marketing in the higher education sector, which is not a typical conventional
service industry. It focuses on the relationship between perceptions of Internal
Marketing and Organizational Commitment of employees in the higher education
sector.

Up until now, while considering Education as a service provider, the marketer’s

focus has been limited to the external customers, who in the case are the students.
This thesis explores the element of internal marketing which impacts job satis-
faction and service quality of faculty members, employed in public and private
universities in Pakistan. Our sample consists of 398 faculty members. The results
provide evidence that all of internal marketing elements (employee motivation,
empowerment, & market orientation) have significant effect on job satisfaction.
The aspects of empowerment and motivation were found to have significant ef-
fect on service quality, while market orientation and recognition did not have any
significant effect. On the other hand, job satisfaction has a strong effect on ser-
vice quality, indicating the importance of this relationship. The results of this
study will help universities to understand the concept and application of Internal
Marketing in academia, and will guide university management in enhancing job
 x

satisfaction and service quality, leading to improved employee performance and

student satisfaction.
Contents

Author’s Declaration v

Plagiarism Undertaking vi

List of Publications vii

Acknowledgements viii

Abstract ix

List of Figures xiv

List of Tables xv

1 Introduction 1
1.1 Background of the Study . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Gap in Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.3 Problem Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.4 Problem Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.5 Higher Education in Pakistani Perspective . . . . . . . . . . . . . . 14
1.6 Research Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
1.7 Objective of the Study . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.8 Significance of the Study . . . . . . . . . . . . . . . . . . . . . . . . 19

2 Literature Review 21
2.1 Underpinning Theories of the Current Study . . . . . . . . . . . . . 21
2.1.1 Equity Theory . . . . . . . . . . . . . . . . . . . . . . . . . . 23
2.2 Internal Marketing and Job Satisfaction . . . . . . . . . . . . . . . 24
2.3 Employee Motivation and Job Satisfaction . . . . . . . . . . . . . . 29
2.4 Employee Empowerment and Job
Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
2.5 Marketing Orientation and Job Satisfaction . . . . . . . . . . . . . 32
2.6 Job Satisfaction and Service Quality . . . . . . . . . . . . . . . . . 52
2.7 Internal Marketing and Service Quality . . . . . . . . . . . . . . . . 53

xi
 xii

2.8 Employee Motivation and Service Quality . . . . . . . . . . . . . . 59

2.9 Employee Empowerment and Service
Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
2.10 Mediating Role of Job Satisfaction . . . . . . . . . . . . . . . . . . 60
2.11 Model of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
2.12 Hypothesis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

3 Research Methodology 64
3.1 Research Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.2 Population and Sample . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.3 Research Instrument . . . . . . . . . . . . . . . . . . . . . . . . . . 65
3.4 Demographic Characteristic of Respondents . . . . . . . . . . . . . 66
3.4.1 Gender of Respondents . . . . . . . . . . . . . . . . . . . . . 66
3.4.2 Qualification of Respondents . . . . . . . . . . . . . . . . . . 66
3.5 Data Collection Method . . . . . . . . . . . . . . . . . . . . . . . . 67
3.5.1 Administration of Questionnaire . . . . . . . . . . . . . . . . 67
3.5.2 Handling of Received Questionnaire . . . . . . . . . . . . . . 68
3.6 Research Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
3.7 Unit of Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
3.8 Pre-testing of the Questionnaire (Pilot Study) . . . . . . . . . . . . 68
3.9 Sampling Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.10 Statistical Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.10.1 Diagnostic Testing . . . . . . . . . . . . . . . . . . . . . . . 69
3.10.2 Structural Equation Modeling . . . . . . . . . . . . . . . . . 69
3.11 Scales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

4 Data Analysis 72
4.1 Tests of Normality . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
4.2 Statistical Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
4.3 Internal Consistency and Reliability . . . . . . . . . . . . . . . . . . 80
4.4 Descriptive Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . 81
4.5 Correlation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 82
4.6 Path Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.7 Internal Marketing and Faculty Service
Quality with Mediation of Faculty Job
Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
4.8 Motivation and Faculty Service Quality With Mediation of Faculty
Job Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
4.9 Empowerment and Faculty Service Quality With Mediation of Fac-
ulty Job Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . 89
4.10 Market Customer Orientation and Faculty Service Quality with Me-
diation of Faculty Job Satisfaction . . . . . . . . . . . . . . . . . . . 90
4.11 Competitor Orientation and Faculty
Service Quality With Mediation of Faculty Job Satisfaction . . . . . 91
 xiii

4.12 Organizational Coordination and Faculty

Service Quality With Mediation of Faculty Job Satisfaction . . . . . 92
4.13 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

5 Discussions, Conclusion and Recommendations 94

5.1 Internal Marketing and Job Satisfaction . . . . . . . . . . . . . . . 94
5.2 Motivation and Job Satisfaction . . . . . . . . . . . . . . . . . . . . 95
5.3 Empowerment and Job Satisfaction . . . . . . . . . . . . . . . . . . 95
5.4 Marketing Orientation and Job Satisfaction . . . . . . . . . . . . . 96
5.5 Job Satisfaction and Service Quality . . . . . . . . . . . . . . . . . 97
5.6 Internal Marketing and Faculty Service
Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
5.7 Job Satisfaction Mediates the Relationship Between Employee Mo-
tivation and Service Quality . . . . . . . . . . . . . . . . . . . . . . 99
5.8 Job Satisfaction Mediate the Relationship Marketing Orientation
and Service Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
5.9 Job Satisfaction Mediate the Relationship Between Employee Em-
powerment and
Service Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
5.10 Suggestions for Future Research . . . . . . . . . . . . . . . . . . . . 103
5.11 Practical Implications . . . . . . . . . . . . . . . . . . . . . . . . . . 104
5.12 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Bibliography 106

Questionnaire 135
List of Figures

2.1 Model of the study. . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

4.1 Normal Q-Q Plot of Employee Motivation. . . . . . . . . . . . . . . 73

4.2 Normal Q-Q plot of Empowerment. . . . . . . . . . . . . . . . . . . 74
4.3 Normal Q-Q Plot of Customer Orientation. . . . . . . . . . . . . . . 75
4.4 Normal Plot of competitor Orientation. . . . . . . . . . . . . . . . . 76
4.5 Normal Q-Q Plot of Organizational Coordination. . . . . . . . . . . 77
4.6 Normal Q-Q Plot of Faculty Job Satisfaction. . . . . . . . . . . . . 78
4.7 Normal Q-Q Plot of Faculty Service Quality. . . . . . . . . . . . . . 79
4.8 Internal Marketing and Faculty Service Quality with Mediation of
Faculty Job Satisfaction. . . . . . . . . . . . . . . . . . . . . . . . . 83
4.9 Employee motivation, Empowerment, Market Orientation and Fac-
ulty Service Quality with Mediation of Faculty Job Satisfaction. . . 84

xiv
List of Tables

3.1 Demographic composition of respondents. . . . . . . . . . . . . . . 66

4.1 Reliability Analysis of Study Variables. . . . . . . . . . . . . . . . . 81

4.2 Descriptive statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . 81
4.3 Correlation Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . 82
4.4 Effect of independent variables on the Faculty Service Quality vari-
able. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
4.5 Model Fit Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . 85
4.6 Mediate Analysis : Motivation FSQ. . . . . . . . . . . . . . . . . . 87
4.7 Indirect, Direct and Total Effect. . . . . . . . . . . . . . . . . . . . 87
4.8 Mediate Analysis : Motivation FSQ. . . . . . . . . . . . . . . . . . 88
4.9 Indirect, Direct and Total Effect. . . . . . . . . . . . . . . . . . . . 88
4.10 Mediate Analysis: Empowerment & FSQ. . . . . . . . . . . . . . . . 89
4.11 Indirect, Direct and Total Effect. . . . . . . . . . . . . . . . . . . . 89
4.12 Mediation Analysis : MCO & FSQ . . . . . . . . . . . . . . . . . . 90
4.13 Indirect, Direct and Total Effect. . . . . . . . . . . . . . . . . . . . 90
4.14 Mediation Analysis : COM & FSQ . . . . . . . . . . . . . . . . . . 91
4.15 Indirect, Direct and Total Effect. . . . . . . . . . . . . . . . . . . . 91
4.16 Mediation Analysis : OC & FSQ . . . . . . . . . . . . . . . . . . . 92
4.17 Indirect, Direct and Total Effect. . . . . . . . . . . . . . . . . . . . 92
4.18 Part A: Independent & Dependent Variables. . . . . . . . . . . . . . 93
4.19 Part B: Role of Mediating Variable. . . . . . . . . . . . . . . . . . . 93

xv
Chapter 1

Introduction

1.1 Background of the Study

The numerous researches of the service quality have proved to be beneficial for
the domain of services marketing. The majority of the researchers were based on
discovering parameters regarding service quality, the firm and the mores of the
industries. These have produced measures to gauge the quality. On the top list,
the most frequent measures are the service quality conceptualized that relates to
the expectancy- doubtful paradigm (Parasuraman, Zeithaml, & Berry, 1994) and
perception based focused is used for service performance conceptualized (Cronin
& Taylor, 1994).

When it comes to the situation where, commercial enterprises’ service quality

matters and numerous representations have been developed in the literature on
service quality (Cronin Jr, Brady, & Hult, 2000). There are many scenarios in re-
search perspectives for the service quality. Majority of the researches were based
on discovering parameters regarding service quality, the firm and the mores of
the industries. These have produced measures to gauge the quality. The service
quality aspects differ has originated from two schools, the American school (Para-
suraman, Zeithaml, & Berry, 1994), the Nordic (Gounaris, 2006) school, through
manufacturers through examination (Babakus & Boller, 1994) or even through
suppliers and buyers of the equivalent industry (Abdullah, 2005). The aspects

1
Introduction 2

developed to understand the service quality helped in knowing the aspects and
other related attributes as well. Taking as an example, the economic do’s and
don’ts play a vital character in the happening of service quality when considered
for a commercially launched product (Linton, 2012). But, this may not be very
important for a choice in the emergency services when faced by the service quality,
in contrast to the emotional value.

No doubt the universities and other schooling institutes along with commercial
enterprises are situated in faraway sectors, still it is to be noted that a number
of educational researchers studied and worked, including the high school students,
on the European Customer Satisfaction Index (ECSI) model (Brown & Mazzarol,
2009; Chitty & Soutar, 2004). Few researches have been done on antecedents re-
lated to the quality of service (Dabholkar, Shepherd, & Thorpe, 2000; Gounaris,
2006). Comparing the antecedent framework in evaluation helped the buyers to
realize the importance of the service quality as a different scenarios and the impor-
tance of the impact of this perspective in visualizing their manner. (Dabholkar,
Shepherd, & Thorpe, 2000).

Still efforts that are being made for assessing and modeling elements of marketing,
its concepts, and attitudes are abundant in number and they are effective as well.
However, with the coming of competitive era, marketing functions at minor and
major level of economy need to be revised.

Following are number of academicians who used a variety of terms for the definition
of marketing philosophy:

• Orientation (Dibb & Simkin, 2004; Day & Lancaster, 2006)

• Philosophy

• Concept

The authors from Lithuanian regions, who published the first marketing book at
university level, were professors who used the term “orientation” so, basing on
these the term orientation is applied here.
Introduction 3

The very renowned professors of America Kotler and Armstrong, (2008) defined
marketing management orientation as follow

• Production concept
According to this concept, business all primarily focused upon the production
and cared less for the needs and wants of customers. There was no focus on
marketing research.

• Product concept
According to this concept, businesses focused only on the product and not
on what customers wanted. They thought that if a product showcases the
best features and had the best quality, customers would definitely buy it.

• Selling concept
According to this concept, businesses all focused on selling the product.
Focus was solely upon selling techniques.

• Marketing concept
According to concept, businesses focus upon the needs and wants of cus-
tomers and design their products and services according to them. This
involves rigorous marketing research and planning. 4P’s of marketing all are
integrated to ensure the best outcome.

• Societal marketing concept

According to this concept, businesses have a responsibility towards the soci-
ety, so they should reciprocate. Do something good for the society by giving
donations as well as by making their products more and more environment
friendly.

Similarly, Lithuanian professors expressed the same concept as given by Kotler

and Armstrong, (2008) and their concepts were

• Production orientation

• Product orientation
Introduction 4

• Selling orientation

• Marketing orientation

• Social-ethical marketing orientation

Because of complexities of including all the facets of marketing into a single con-
struct, Lancaster and Reynolds (2005) illustrated characteristics of the subject
into following statement.

Marketing is operational and dynamic, requiring planning and action.

• Marketing is a crucial area of management that is often based at a single

location. In addition, it is a business philosophy that must be adopted in
whole organization.

• The concept of marketing illustrates that identification of customer, his sat-

isfaction, and retention is the key to prosperity and survival.

• Market focuses that attention from production is to be shifted to the needs

and wants of current market place.

Author proposes following orientations on marketing orientation classification which

comprise the philosophy:-

• Financial orientation

• Production orientation

• Selling orientation

• Product orientation

• Market orientation (exceeding to both external and internal orientation)

• Marketing orientation

• Holistic market orientation

Introduction 5

• Socio-ethical market orientation

This holistic orientation was given by Keller, (2009) and in which he proposed
all the marketing orientation concepts. However, marketing orientation can be
divided into internal and external type and internal marketing orientation is deal-
ing through marketing department in an organization. This internal marketing
department comes under senior management cadre and second tier organizational
department that is emphasizing the micro culture and organizational culture and
it is suitable for efficient as well effective work (Laing & McKee, 2000). In addition,
challenges and demand of national as well international market is also included in
internal marketing orientation

Kotler and Armstrong (2008) gave the concept of societal marketing that is based
on welfare and well being of general public and community, integrating corporate
social responsibility of profit and non-profit companies, issues of environmental
protection, and legal issues which is streamlining sustainable economic solution
and patterns of consumption. Relationship marketing is concerned with creating
the relationship with customer and company and now a day this marketing orien-
tation practice is being followed by the companies. Companies offer value added
services and products and provide timely solution to the customers. Relationship
marketing also focuses on business to business (B2B) solutions relations and trust
building tactics (Caceres & Paparoidamis, 2007). Similarly, this type of relation-
ship marketing reduce cost in longer term and increase their market share in long
run for market participant producers, sellers and distributors, and consumers.

These studies were not a help to discover the pros and cons of the origins and
resulting relationship of a few variables mentioned in the abstract, specifically in
the higher education sector. The most significant reason for this to happen is
considered is that the ECSI model was not made to measure the content level for
low scale studies and for the experiments carried out commercially (Mohamad &
Kiong, 2009).

The higher education is developed to perform services, and the students are sup-
posed to bear their expenditures by themselves, it is very much supported that
Introduction 6

the schooling institutes like universities, switch off from being tagged as product
led, that is, expecting the product to get sold, framing towards a healthier cus-
tomer led approach (Roundtable, 2006). While, deciding on the institutes such as
a university or any other uncertain, or maybe a high risk institution, the literature
supports the fact that the researcher or student dug for the proof of service quality
(Donaldson & McNicholas, 2004).

By this point, we have made clear the significance of service quality in the context
of the university. The university or the desired educational institution would bear
a loss and would be in debt side at the expense of their irresponsible behavior
and the competitive culture that is adopted to attract and motivate students, and
gauging service quality, quality (Roundtable, 2006).

Thus it is proved, that the knowledge of marketing strategy is very important

and proves fruitful to the higher education domain (Välimaa & Hoffman, 2008).
The current study is about the detailed analysis of the perception students have
developed about the antecedents, aspects and other situational measures of the
service quality, that’s aims as the establishment of a theoretical model with respect
to the university in Australia.

The study is managed as follows. The review on the present literature is pre-
sented on the next section. Further, research hypothesis sections are followed by
the methodology and the results and the discussions. There are some implications
along with the final results and conclusion that are on the final section. From
the last few decades’ dimensional approach is focused for literature quality service
as an outcome of its service quality model, service performance model and model
of Gounaris (2006) have evolved they were developed on the basis of commercial
services. The service quality model is defend as the difference between perception
and expectation, for each of perception and expectation it consists of 22 items
which were classified into five categories namely; reliability, assurance, tangibles,
empathy and responsiveness. In contrast of service performance model the ser-
vice performance model is known to be perception scale solely. The rest of the
things like items and dimensions of both the models are same the only difference is
that the second model is perception based only. The previous studies shows that
Introduction 7

definitions of service is quality is considered more appropriate (Wicks & Roeth-

lein, 2009) then service quality definitions (Caruana, 2002) in terms of relative
superiority empirical studies have done between service quality scale and service
performance scale for analyzing service quality. Some studies shows that service
performance scale is better than service performance scale (Babakus & Boller,
1994; Brownell, 1994; Sultan & Tarafder, 2007) while some are in a view that
service quality scale is better alternate than service performance scale (Chebat &
Kollias, 2000; Brown & Bitner, 2006).

Some studies also show that both are valid and have equal importance (Carrillat
& Mulki, 2007). The conventional approach known to be antecedent approach
regarding service quality have not received much concentration in the academic
literature. The antecedent approach initiates from customers. The study shows
that four dimensions namely; dimensions, namely: reliability, personal attention,
comfort and features (Dabholkar, Shepherd, & Thorpe, 2000) influence service
quality. The above mention dimensions are known to be antecedent to service
quality. The study by of Dabholkar, Shepherd, and Thorpe, (2000) show that
perception-only approach should be more appropriate if we want to calculate only
service quality. Service quality antecedent of customer specific also receives less
attention (Gounaris, 2006). Service quality perception regarding customers is af-
fected from number of communication factors like salespeople, social referrals, dif-
ferent types of information collected, and the confidence consumers which develop
towards a service organization (Gounaris, 2006) as compared to commercial sector
service quality work regarding higher education is quite new and are flourishing.
The models which were deployed by the business sector are now being practiced
in education sector (Chua, 2004). The study shows that for class room environ-
ment service quality scale is more applicable and reliable (Stodnick & Rogers,
2008) but number of research of service quality scale were done on university level
but none of them have gained five-factor structure (Clewes, 2003). Li and Kaye
(1998) studies at commercial level result that service performance scale performs
out class. The higher education performance measure (Abdullah, 2005) and the
performance of higher education measure (Sultan & Wong, 2010) of calculating
Introduction 8

service quality in higher education includes only a broad range of services that is
why somewhat known to be comprehensive scale in higher education. The higher
education performance measure and the performance of higher education measure
both were based upon perception scale approach only. The great work has been
done by many researchers and they concluded that study perspective is more re-
liable and appropriate for education studies. Although the current literature was
highly dominated by service quality dimensional study (please see Appendix 1
for a brief summary of the dimensions of service quality research in the higher
education), but antecedent approach is more new in the field of education. Both
the antecedent approach and dimensional approach can be used, have their own
importance’s in the fold of education and the most important both the approaches
will clearly corrects our perceptions regarding service quality.

At present, the competition is so high that every organization to operate effectively

needs to follow the third requirement of Katz, that is organizations need those em-
ployees who work effectively and are extraordinary in their work called extra role
behavior by (Furlong & Morrison, 1995). They are not only just limiting to their
own specific job but willing to work in every field of organization (Morrison, 1994).
Kotler (2011) also advocate that all organizations need to have employees who are
willing to work more than their job requirements. On daily basis no doubt each
department, unit, industry and organization have to deal with multitude of acts
such as suggestions, helpfulness, cooperation, and behaviors which analysts re-
fer to as “Organizational citizenship behavior (OCB)” (Bateman & Organ, 1983;
Podsakoff & Bachrach, 2000). The second identified thing by Katz (1964) is orga-
nizations have to retain their employees within the systems can be achieved from
another organizational factor called “organizational commitment (OC)” which is
defined by Meyer and Allen, (1991) as “psychologically binding the individual to
the organization” (i.e. make turnover less likely). Organizations have been found
to work between facets of organizational commitment and extra role behavior.

Also various leadership styles and human resource management practices are the
important organizational factors that are related with organizational citizenship
behavior and organizational commitment. Arnett and Obert, (1995); Pfeffer and
Introduction 9

Veiga, (1999); and, Dessler, (1999), discovered sets of human resource management
to increase the effectiveness of organizations and to retain the employees within
the system. The human resource management practice to work like family has
been found to have a positive relation with organizational citizenship behavior
(Cappelli & Rogovsky, 1998). Leadership behavior has been identified having
a positive association with organizational citizenship behavior by Schneider and
Niles-Jolly, (2005).

Current study is an attempt to check the effect of internal marketing on employee

job satisfaction and its ultimate impact of faculty service quality in higher edu-
cation institutions of Pakistan. The faculty service quality is taken as dependent
variable here and it is the strategic tool that every private or public organization
needs to follow and implement. Every person has some expectation form service
provider and organizations always try to compete with other contemporary orga-
nizations. In this globalized era, service providers try to fulfill their promises by
performance and conformance and they can achieve their target that is economi-
cally viable and socially supportive.

It is also believed that internal marketing also contribute towards achieving or-
ganizational objectives (Rafiq & Ahmed, 2000). Likewise, organizations select,
develop, and manage their employees in creating amazing business results up to
an extent that no one can copy that. Even authors like Hogg (1996), elucidated
that internal marketing give solution where all conventional communication tool
failed. Hence internal marketing is necessary for any organization to achieve its
objectives.

It is clear that internal marketing deals more with internal customers, so it suggests
that the company should continuously struggle to develop strategies and tactics to
have programs for enhancement of employee satisfaction similarly to the way like
external marketing plans in order to meet consumer needs and demands (Christo-
pher & Ballantyne, 2013). In addition, the importance of internal customer is
enhancing and recognition tool for implementation for adoption for all companies.
There must be a continuous change in organizational process to develop and have
a better interaction between employee and customer. Transformation through
Introduction 10

downsizing, merger, and alliances has remained best change management struc-
ture. The change management like her name, brand, or any other value should
be communicated to the all employees and stakeholders to inculcate the quality in
every process of organizations. Hence, all these changes are dovetail by internal
marketing perspective (Elliott & Herbane, 2010).

Service quality is of having subjective nature and it’s a game of expectation and
its fulfillment. Likewise, if customer expectations are met they would be satisfied
and if they provide something that is above customer expectation, then they would
be delighted. Now-a-days trend has been changed from satisfying customer to
delighting customer and this delightedness can be provided by superiority and
differentiation in product and service (Kotler & Armstrong, 2013).

Also, quality of education plays a key role in the development of the nation and
society. Growth indicator revealed that countries with maximum literacy rate are
better developed nation and one thing very important discussed here that better
quality in education comes from number of available resources such as physical,
social, and technological resources. However, unfortunately not enough funds have
been allocated to these higher education institutions so faculty service quality is
not up to the mark.

In current study, employee job satisfaction is taken as mediating variable. The

study of mediation says that there should be positive effect of independent variable
on dependent variable in the absence of mediating variable and when mediating
effect is introduced in the model, this effect will be enhanced (Anwar & Ahmad,
2012). Job satisfaction facilitates the organizations to retain their comparatively
trained and motivated employees so that they provide high quality performance
at the work place. The literature also depicted that satisfied employees always
proved themselves as an asset for organizations.

Also, in this study, job satisfaction has taken as a mediating variable as it always
proved a good result when taken as mediating variable (Crede, Chernyshenko,
Stark, Dalal, & Bashshur, 2007). External and internal marketing tool remained
the under researched area as external marketing deals with customer outside the
organizations and internal marketing deals with hiring, staffing, remuneration, and
Introduction 11

compensation packages (Kotler, 2003). Internal marketing concept dealt with job
satisfaction and organizational commitment as one of the author said that internal
marketing is more attached with job satisfaction as compared to organizational
commitment (Abzari, Ghorbani, & Madani, 2011). On the contrary, some re-
searchers also highlighted the importance of internal marketing that associated
with organizational commitment (Caruana & Calleya, 1998). Current study can
be underpinned by the equity theory which is the most relevant one to the study.

Motivation of employees always plays a crucial role in the satisfaction of employees

as it always focused on needs of them. Plethora of researches is available that shows
that if employees need and want are to be fulfilled then they will be motivated
and overall their performance will be improved (Nohria & Lee, 2008). Therefore
in motivational programs incentives, bonuses, recognitions and rewards are to be
adjusted by the organizations. In most of cases individuals performances depend
upon promotion and pay system due to their physical, social, and sociological needs
and his job satisfaction increase as rewards systems are to be improved (Abou-
Elseoud and Kiviniemi, 2010). Job satisfaction is nothing but what an employee
from job to fulfill his need and met his expectation. Luthans and Combs, (2006)
proposed that there are different types of rewards that lead to employee motivation
and ultimately to job satisfaction.

Employee job satisfaction has been most studied area of in service area and job
satisfaction is defined as “the level to which an individual has a positive attitude
towards his job, either in general or towards a specific dimension”. It was also
said that employee job satisfaction is attached with monetary and non-monetary
compensation as it monetary compensation deal with pay and bonuses while on
contrary non-monetary compensation deal with rewards and recognition, and mo-
tivation. Reward plays an important role in achievement of job satisfaction in
both private and public and private educational sectors (Ahsan, Abdullah, Fie, &
Alam, 2009).

Likewise, job empowerment and job satisfaction is much studied part of literature
(Greco & Wong, 2006). Empowerment is likely to give authority and respon-
sibility to an employee as it gives the self-efficacy and it improves the attitude
Introduction 12

of employees. Similarly, empowerment gives the self-confidence and trustworthi-

ness and once this has been done then employee job satisfaction will be improved
(Moyle, Skinner, Rowe, & Gork, 2003). Hence, job empowerment entails direct
dealing with customer and customer satisfaction will be increased s compared to
the employees who don’t be authorized to deal direct with employees. Frontline
employees are to given job empowerment as they deal directly to the customer.
Finally employees are major contributor to service quality when job empowerment
is being entailed to them.

1.2 Gap in Literature

Quality in education is as necessary as the qualities in products and services be-

cause for a nation to compete globally, it is no doubt a crucial tool. For example,
if we take the example of highly developed countries like United States of America
(USA), United Kingdom (UK), German and many others, they focused on higher
education with research orientation programs and hence they become knowledge
based economies. Likewise, in relevance to higher studies, they made quality as a
stringent point in universities and other places.

On the contrary, unfortunately in developing countries there has been a no focus

or less focus on quality we considered it a neglected area. Both the faculty and
student are on the dark side of picture and are neglecting the quality tool that
otherwise be implemented, then results would be different. However, the concept
of internal marketing in the form of frontline employees can be checked on faculty
service quality in higher education institutions (Park & Levy, 2014). Training,
motivating, rewarding, and satisfying the employees can be done through internal
marketing and research also proved that this above mentioned internal marketing
tool can improve the quality of service and specially the faculty service quality.

A plethora of researches proved that job satisfaction has been a prime job for own-
ers and employees and customer always expect high quality from service providers.
Introduction 13

In this globalized era, customers always have some higher expectations and orga-
nizations try to fulfill them. Likewise, a step ahead approach that is customer
delightedness is being followed in this era.

Customer satisfaction and organizational commitment can be achieved through

internal marketing. Huang and Rundle-Thiele (2014) postulated that the impact
of internal marketing on organizational commitment and job satisfaction is positive
and significant. Rafiq and Ahmed (2000) studied impact of internal marketing
concepts, definitions, and synthesis and postulated that internal marketing can
deliver the service quality and from 20 years back this debate was ongoing and even
numerous researchers contributed in it and no work has been done so far. However,
the study that was done by them was qualitative. Similarly, researchers studied
the impact of internal marketing on employee job satisfaction in banking sector of
Jordon and found that it has positive impact of employee job satisfaction (Belias
& Koustelios, 2014). Therefore, there is a need to study the quantitative and
empirical impact of internal marketing on faculty service quality and through job
satisfaction as well in higher education institutions of Pakistan. So, current study
is an attempt to explore that what are the consequences of internal marketing on
job satisfaction and ultimately on faculty service quality.

The progress and development of a nation depends upon the level of higher educa-
tion in the country. A number of studies revealed that the nation who focused on
higher education got the Gross domestic production (GDP) up to a highest level
such as Sweden, Singapore, Malaysia, and Denmark. Likewise, these all mentioned
countries tended to convert their economy from labor intensive to capital inten-
sive and then ultimately to knowledge based economy. Similarly, if we take the
example of Sweden and Switzerland there is no natural recourses but they devel-
oped their human resource by imparting their individual higher education that is
research oriented. As a wise man said once, that develop brains because national
resources can deplete but a developed brain can never.
Introduction 14

1.3 Problem Definition

The different researchers have found the association between organizational cit-
izenship behavior, human resource management practices and leadership styles
but these are not modeled together. The researchers found many of the evidences
related to the association among the variables from developed western countries
like Germany and less evidences has been obtained from developing non-western
countries like Pakistan from their social cultural context. The associations of
mentioned variables are needed to know in a linear way to help the managers of
developing countries so that they can increase the effectiveness of their organi-
zations and from developing countries also add the evidences of techniques and
management philosophies which may be suitable for one country and not suitable
for other countries nation (Hofstede, 1984). Rousseau and Fried, (2001) gave so
much importance to comparative studies between developing and developed coun-
tries in order to strengthen the organizations. The reason why Rousseau and Fried
emphasize for comparative study is that the comparative studies investigate differ-
ent cultural and institutional settings which are useful to increase the effectiveness
of any organization.

1.4 Problem Statement

The effect of internal marketing on service quality is still limited. Especially

in Pakistan, on studies have been conducted regarding the impact of internal
marketing on service quality. Most importantly, this effect has never been studied
in the context of Higher education.

1.5 Higher Education in Pakistani Perspective

In developing countries like Pakistan in which higher education is so much im-

portant for the development of the country do not need any reference. Higher
education serves as an important factor for the economic and social development
Introduction 15

of a country. Hussain (2014) published his article in famous English newspaper

in which he appreciated the Higher Education Commission to promote higher ed-
ucation in Pakistan. He says “A miracle happened. The picture of education
in Pakistan is changed dramatically in science and technology department after
Atta’s nomination it never happened in the history of Pakistan before”.

The chairman of Senate Standing Committee has announced it recently as “Pak-

istan’s golden period in field of education”. Due to higher education commissions’
efforts Pakistan progressed so much in the field of technology in just two years,
2000 to 2002 that Pakistan became the first nation who has its own education
satellite (Paksat1) in space. From 2000 to 2008 Pakistan had achieved milestones
progress in education field. The enrollments of universities have increased three
times. The research promotion effort has increased 400% publication in interna-
tional newspapers and almost 600% increased by the Pakistani researchers in the
foreign citation of research articles. Not a single Pakistani university has been
ranked in world’s top 600 universities since its independence 1947 to 2003 and
now Pakistan’s three universities touch this group. Because of HEC digital ser-
vices Pakistan education library now contains 45000 electronic books and almost
25000 journals and also research monographs (Hussain, 2014) which was not a half
dozen till 1990.

The contributions by the government of Pakistan and HEC in the progress of

education are as mentioned above now it’s the duty of the universities of Pakistan
to keep them on the way of progress. At the cost of risk and promise, higher
education sector of Pakistan is experiencing many problems (2000) World Bank
Task Force on Higher Education (TFHE). The top most adduced issue among the
emphasized issues in this report is the teacher quality. Organizations acquiring
high performance need employees who not only work formally but also get involved
in voluntary behaviors such as OCB. Teaching in a university is much complex as
compared to teaching in schools and colleges as a more casual approach of teaching
is required in universities. In order to deliver the best of knowledge, deftness and
ability to a student, the job of a university teacher cannot be dictated completely
in the description for job (DiPaola & Hoy, 2005).
Introduction 16

Teacher’s organizational citizenship behavior is vital under such constraints for

the consequence of student learning; it affects the student learning outcome to
a greater reach. According to Hwa and Ramayah (2010), “The agreeableness of
faculty members to go an extra mile through altruism (e.g. assisting students in
understanding difficult concepts), courtesy (e.g. informing students beforehand
about postponements of classes), civic virtue (e.g. attending the activities of
students voluntarily), conscientiousness (e.g. efficiently using the allocated time for
tutorials and lectures) and sportsmanship (e.g. abstain from complaining too much
when dealing with difficult students) can be helpful in improving the academic
achievements of students”.

The HR departments in Pakistani universities are not formal neither proficient

nor trained. The fact that citizenship behavior of employees and organizational
obligations are scientifically associated with organizational results. It can also be
consciously worked through the organizational strands. Despite the fact that the
managers in Pakistani universities are somewhat informed about these ideas but
the prosecution of such ideas is not taken care of with culpability. Pakistani peo-
ple are collectivist. They manage and maintain relationships and also help each
other so that managers expect the employees to manifest such behaviors as cul-
tural standards of the country (Scarborough, 2000). An essential role is played by
the faculty members for training the performance of active members. The most
considerable two variables are the quality and job. Individual values are seen more
important than needs in this report due to specific conditions of this interests, tal-
ents, values and opportunities in a job. The management motivates the group in
selecting and planning the job. Human needs and demands cannot be satisfied
without recognition and observance of these things. Employees’ interests are be-
come important for him and the individual important for the perfect management
of human resources would want his interests to be fulfilled (Mitchell, 2013).

System establishes, collocates, and anticipates reaction of individuals by the value

services by discovering and supplying those resources does not lead to job satis-
faction, rather certain. Cognitive state of like and dislike is shown by the values
Introduction 17

that does not occur due of accidental encounters; rather they show an individual’s
abilities effectively.

This is the common observation of now a days that major attributes of the per-
sonality strongly depends on the norms of the social setup and values to which
we belong to, and these norms strongly leave their influence on our lives. Values
can be defined as that they are the set of ideas and standards which are follow
by the every individual of the society (Kotler & Armstrong, 2013). As nature
varies but the basic standards of the cultural, social, psychological and ideological
perspectives are the same, they are like the branches of the same tree. The other
environmental and psychological factors also effects the basis of values, e-g learn-
ing, motivation, perception, gender and age, but the major impact on the values
are mostly culture and social norms. But there is another anthropological school
of thought other than sociological school of thought who states that values depend
on the attitudes and positive reinforcements (Martindale, 2013). Conclusively he
generalized the concept of values and according to him the standards of values sets
on the personal desires and priorities, which proves that values are none other than
your own personal benefits. The basic standards and value sets by the individual
are basically those who are beneficent for that individual and helps in his personal
grooming and internal happiness.

No doubt values are the one who set the standards of the society and are considered
as the basic pillars of the society on which the whole society stands on as well as
they give the assurance and best of the life to survive in the running society. Values
build the whole society as well as individual unit of the society and first we have
to know the interdependence of the personal values and the job satisfaction while
the basic value for personal satisfaction is your “job sector”, when the individual is
satisfied in its job (mainly wage, promotion, colleagues and working environment)
and career opportunities that individual comes the most satisfied and flourished
part of the society (Ahmad, 2011). The level of satisfaction of the person depends
on its positivity towards his job, the more he is satisfied the more he values and
vice versa.
Introduction 18

The job satisfaction has different levels; they vary from job value to the envi-
ronment in which a person works. Warr, (2011) mentioned the types of the job
satisfaction, among them one of them is “intrinsic” which means the inner enjoy-
ment the internal satisfaction and happiness of the person he or she pursue during
his working time and satisfies a person to attain the targets on his job by fulfilling
the responsibilities (social as well as working) related to his job.

The other factor is “extrinsic satisfaction” which means external factors which are
not static and keep on changing with the passage of time and they are mainly
comprised of your job environment, salary, positive reinforcement and peers you
have (Warr, 2011). Both the factors have their own importance but as intrinsic
related to your own personal satisfaction and it solely belongs to your own self,
so it is considers as more reliable than the extrinsic as it strongly depends on
the involvement of the other external factors mentioned above. But the complete
satisfaction can only be attained when the person is satisfied by both the factors
as they are interdependent on each other.

1.6 Research Questions

• Does internal marketing have an impact on job satisfaction and service qual-
ity of the faculty in higher education institution of Pakistan?

• Does employee motivation have an impact on the Faculty’s service quality?

• Does employee empowerment have an impact on the Faculty’s service qual-

ity?

• Does market orientation have an impact on the Faculty’s service quality?

• Does Faculty’s Job Satisfaction play a mediating role between Internal Mar-
keting and Faculty’s Service Quality?
Introduction 19

1.7 Objective of the Study

This study is aimed to explore the impact of internal marketing on job satisfaction
and service quality of faculty members employed in public and private universities
of Pakistan. This study explored the relationship of level of internal marketing
efforts and the extent of job satisfaction.

The specific objectives of the study are as follows.

• To identify the attributes of internal marketing that have significant influence

on faculty job satisfaction and service quality

• To study the impact of internal marketing on faculty job satisfaction and

service quality.

• To find out the mediating role of faculty’s job satisfaction between internal
marketing practices and service quality of the faculty in higher education
institutions in Pakistan.

• To facilitate the decision makers in devising polices that may improve service
quality of the faculty.

1.8 Significance of the Study

The quality of human resources or internal customers plays a vital role in orga-
nizational success (Pohlman & Gardiner, 2000). Organizational commitment and
Job satisfaction are widely studied factors in management literature. Bodla and
Danish, (2009); Malik, Nawab, Naeem and Danish, (2010) considers that Orga-
nizational commitment and Job satisfaction are major contributors to employees’
performance. These factors are even more important to study in academic insti-
tutions, especially, at universities because universities are the sources of human
resources and solely responsible for educating the intellect of nations.

The overall performance of universities depends upon their faculty members and
ultimately their level of commitment and job satisfaction, so it is necessary to
Introduction 20

understand the factors which increase their job satisfaction and job commitment
(Chen, Tsui, & Farh, 2002). A great deal of research has been carried out as to
explore the factors which may improve the performance of faculty in public and
private sector in Pakistan, e.g. Khurram et al., (2008) reveal that compensation
and promotions of faculty are positively related with the faculty performance.
Uzma et al., (2010) conclude that faculty satisfaction is central to Total Quality
Management in higher Education of public and private sectors.

The researchers further told that constant feedback of all stakeholders in education
is important for continuous improvement and universities’ administration should
develop an efficient and transparent mechanism for faculty development to ensure
quality in the teaching-learning process and it indicates that such a mechanism is
yet to be formulated. Hamid and Johan (2006) suggest that to attract and retain
the faculty members with PhD degrees, universities need to improve their salary
structure and reward them more than those faculty members without research
degrees.

Ali (2003) has suggested almost fifty five Quality Indicators (QI) as to determine
effectiveness of faculty in Pakistani universities. A review of literature on faculty
performance in Pakistan reveals that there has been no significant research to
find the impact of internal marketing practices on faculty’s performance with an
emphasis on their job satisfaction which can lead to satisfaction of students.

Therefore, this study was an effort to investigate the relationship and impact of in-
ternal marketing practices on the job satisfaction and service quality of the faculty
members. It is important because it will further increase the students’ satisfac-
tion, in the universities in Pakistan It is an area of research which has yet to be
explored, generally world over and particularly in Pakistan. In the contemporary
age of rapid change, knowledge capital must be retained by which organizations
could remain productive and responsive to the needs of its stakeholders (Bloch,
2001).
Chapter 2

Literature Review

2.1 Underpinning Theories of the Current Study

Many people, including human resource specialists, managers, supervisor and the
workforce are involved in finding different ways to improve employee job satis-
faction. Also, many economists have published similar monographs and articles
that search the different factors of job satisfaction and the outcomes of the labor
market (Bender, Donohue, & Heywood, 2005). Immense literature can be found
on this particular topic as it plays a vital role in organizations’ development and
progress.

Bakker and Schaufeli, (2008) pointed out in his research paper that job satisfaction
is basically the state of mind of company employees and it defines their pleasure
level also the same definition is quoted by other researchers. Level of job satis-
faction ensures both physical health and mental health of the employee. Factors
such as promotion, pay, aid for research, equal opportunities, providing teaching
feasibility and fringe benefits play a vital role where job satisfaction is concerned.
Santhapparaj and Alam, (2005) in their research said that if the employee satis-
faction level is high, then the employees are more productive and chances are they
will work with the originations for longer time. The major reason for giving so
much importance to this particular factor i.e. Job satisfaction level is; it helps in
achieving the ultimate goals of the company as it increases productivity because

21
Literature Review 22

of employee loyalty and dedication. Porter, Steers, Mowday, & Boulian, (1974)
pointed out in his research that employees are more devoted and loyal to those
organizations where they have high job satisfaction level.

They are also more productive and they try to excel in their field. From the agents
of employment satisfaction, it’s determined that the oldest and the youngest em-
ployees have the highest comfort content (Clark, Oswald, & Warr, 1996). Accord-
ing to Simpson, (2004) women are more comfortable with employment than men.
As a major aim of this research, it’s vital to know as many odds that may increase
or decrease employee job comfort. Brooke, Russell and Price, (1988) stated the
“The staff’s employment comfort can be described as a brightening, sentimental
state resulting from the job”. A feeling of happiness they get from completing
their jobs is known as job satisfaction. There are varying researchers that de-
fine job satisfaction in contrasting manners. “An employee’s personal attention
or their approach towards their employment is known as job satisfaction”. Their
approach can be negative or positive. Employees that have a conclusive attitude
have greater chances of job satisfaction than the ones with an unfavorable ap-
proach. Employees that have a positive attitude with their job are much more
satisfied than the employees that have an adverse approach towards work. Mirvis
and Lawler, (1977) stated that employment comfort has only one main point and
that is whether the employees are pleasured with their employment or whether
they are troubled with their job. In other sense, they are satisfied or unsatisfied.
There is no option after second, according to this researcher. In comparison with
this statement, many others such as Smith and Kendall, (1969) state that job
satisfaction is multi-optional. With their employment the staff must be entirely
satisfied or not at all satisfied. Therefore somebody must be discontented with the
manager and promotion chances but contented with allowance. Many factors af-
fect the comfort level of employees and according to these analysts there are more
that one-dimensional. The employees comfort may range from highly satisfied to
less than satisfied.

Additionally, through the examination of the results, author wants to measure the
range of many factors that may affect the job comfort of the faculty members. This
Literature Review 23

study is necessary for the head of organizations of higher studies as this study is
administered mainly in universities. Author has examined the basic data gathered
and many useful opinions and recommendations are provided for the staff comfort
level. If teachers become satisfied with their employment, then the students would
have a great benefit for themselves. As, the overall features of employment sat-
isfaction are a serious concept in any work environment so, attention is given by
many researchers. Job satisfaction has many descriptions. Basically, job satisfac-
tion can be known as a secure sensation which the staff senses on their jobs (Locke,
1976; Odom, Boxx, & Dunn, 1990). The basic factors of a job that are responsible
for the job satisfaction are pay, promotion, relationship with management, the job
itself, and the progress in the job and so forth (Noordin & Jusoff, 2009).

If someone is pleased with their work settings, it doesn’t mean that the person is
satisfied. They may not be satisfied with other aspects (Smith & Kendall, 1969).
Different people are satisfied with different factors, for example, some people can
be satisfied with factors like salary packages and promotional opportunities while
others could be satisfied with factors like recognition for their work, and support
for search. People who are satisfied with the former factors i.e. Salary package
and promotion opportunities may not be pleased if they are offered recognition or
are given the opportunity to do funded research.

Since immense amount of information is available on this particular topic, thus

giving rise to different perceptions on the concept of job satisfaction and its im-
portance for the success and progress of any organization.

2.1.1 Equity Theory

Equity theory is of the notion that employees struggles to claim equity among
themselves. This is achieved when the perceived outcome to input ratio of em-
ployees are equal to the outcome to input ratio of others (Adams, 1965).

This theory was presented by Lee, Ashford, Walsh and Mowday, (1992). In this
theory they said that employees do a comparison with other individuals. After
comparison, if their ratio is equal to the ratio of other individual, then he or
Literature Review 24

she would be content with his/ her job. Mowday linked equity with contentment
and inequity with dissatisfaction of the job. An example is; the employee will do a
comparison of his wage with other peer on the basis of hours he and that particular
person has worked. If the employee is getting the same amount of money for the
same working hours as that of the individual he is comparing himself/ herself with
he/she would be satisfied with the job. On the contrary, if there is inequity he/she
would be dissatisfied with the job resulting in low job satisfaction level.

Equity in the workplace also serves as a motivator for the employees. If employees
perceive that everyone is being on the basis of the number of working hours,
they’ll be motivated to spend more time on their and their quality of work will
also increase. Consequently, if the perception is that there is no relation between
the wages and the hours spend working or quality of work, employees will be less
motivated to go an extra mile doing their job.

It is discussed above how the perception of equity results in job satisfaction and
also it serves as a motivator. So when an employee is satisfied and motivated to
work more, their quality of work will also increase.

It is same with this study. If the faculty members are satisfied with the educational
institute and are properly motivated, their level of quality of service will increase
as well. But if there is a perception that those institutes are not just and some
faculty members are being favored, they’d be dissatisfied and will lose motivation
to work more, thus decreasing their level of service quality.

2.2 Internal Marketing and Job Satisfaction

Internal marketing, introduced in the mid-1970s, was aimed to achieve stable pro-
vision standard, a big issue in the area of services (Andrews & Entwistle, 2010).
Emerging from services marketing, the concept of internal marketing is inclusive
of bilateral marketing, external marketing and domestic marketing. Marketing
within the organization is a connection between the organization and workers.
Ahmed and Rafiq (2003) described this idea and claimed that the idea of pleas-
ing internal customers enables the organization to provide superior services to
Literature Review 25

external customers. Internal marketing targets to make better customer intercom-

munication in all those indulged in confrontations (Mbuyazi, 2012). It is capable
of playing significant roles in all kinds of organizations as a form of delivering
high-organizational services standard.

Multiple factual and theoretical studies have been carried out on internal market-
ing (Cavusgil & Cavusgil, 2012). Some scholar have stated that internal marketing
has an effect on customer appeasement via mediation factors like organizational
backing, commitment or labor-division trans-conversation. Giving time and effort
is significant to motivate and teach workers to serve customers well. Multiple inter-
nal marketing tactics are present like job rotation, awarding methods, training and
empowerment. Bradley and McDonald, (2011) made use of 15 things to compute
on a seven-point scale, as such, “Our organization offers employees a vision that
we can believe in,” “This organization prepares employees to perform well” and
“Our organization’s vision is well communicated to all employees”. (Putranta &
Kingshott, 2011) made use of a 24 item scale of six elements to accurately describe
and scale the internal marketing concept.

Originally the concepts of internal marketing derived from the view that employees
are first to market. Mainly, this point ensures that employees perceive that man-
agement does care about their needs (Chuang & Liao, 2010). Above and beyond,
the major emphasis of internal marketing is for employees and internal marketing
also focuses on several other interests of employees (Lee & Chen, 2005). On one
hand, internal marketing is considered as a coordinated, goal oriented, and active
to entire employee oriented efforts.

Internal marketing philosophies claim that the organization lays stress on the
importance of workers’ requirements and beliefs about job as to be internal prod-
ucts, targeted towards the motivation and training of highly qualified workers
(Appelbaum, 2013). Planned effort using a marketing-like approach directed at
motivating employees, for implementing and integrating organizational strategies
toward customer orientation. Internal marketing lays stress on gaining customer
pleasure by using strategies and motivating staff to coordinate cross-functional
efforts (Kaufman, 2012).
Literature Review 26

For internal marketing to be operated effectively as a tool of strategy implementa-

tion and organizational management, definitional level clarifications are required.
The writer offers this as the extended description of internal marketing: “In-
ternal marketing is the process of creating conditions within an organization to
ensure that the needs and wants of internal customers are met”. Efficient internal
marketing not only reacts to employee requirements, but also encases them to
show a better performance. Domestic marketing comprises of support, empower-
ment, communication, a reward system, educational training, and an environment
(Charuksathitwong, Wilson, & Nirathron, 2014). Developed on extended literal
review the research questionnaire also contained the author’s personal experiences.
Similarly, we will say that for the first time when customer gets first interaction
to employee, service encounter is crucial element. In service sector, promises are
making and in deliverance of service it is to be ensured that customer grievances
are too handled properly.

Plethora of researchers highlighted the service encounter is moment of truth and

making contact with employees unquestionably a most difficult and rewarding
job in service organization (Byrne, 2011; Anwar & Ahmad, 2012). Service en-
counter is the place where customer and frontline employees get interaction and
get close to each other. researchers also said that while interacting with service,
customer not only interact with services but other things as well such as social
environment, other customers, physical environment, and visible element. Cus-
tomer perception about service quality is affected by services capes like physical
and social environment and they are being seen as first touch point for the cus-
tomer. Researchers also highlighted that either these contact and touch points are
visible or not, they comprise a moment of truth, and during this time customers
usually gauge the quality of service (Tax, McCutcheon, & Wilkinson, 2013). To
get performance from a job function by many touch points, it may be viable to
remove and eliminate contact points whilst still to be in job function performed.
Similarly, performance of organization can be gauged and measured through these
touch points that are service encounter and if there are so many touch points then
it can increase the unpleasant evaluation for the organizations. Consequently, best
Literature Review 27

organizations manage customer employee relationship very carefully to lessen the

chances of adverse encounter that can reckon the experience as a whole. Similarly,
Tripathi and Siddiqui, (2010) stated that customization and modification of ser-
vice encounter attach value to customer experience and add value to sustainable
absolute advantage.

Contact employees work with the boundary of companies and they execute bound-
ary straddling role, as every organization considers it positively that how employee
deal and coordinate with internal customers. Similarly, multiple challenges and
problems are faced by service employees due to technical faults and poorly behaved
customers. Employees act as boundary spanners and to make services excellent
and boundary spanners act with environment. Organization gives this task to
boundary spanners to craft these links with exchanging new words and ideas with
outside environment. Hence, those employees who have involved themselves in
serving the external environment should be motivated for carrying two responsi-
bilities representation and transfer.

From the perspective of internal marketing, a number of researchers have postu-

lated that through satisfying the want and needs of internal customer, organiza-
tions improve their ability to satisfy and retain external customers. Nonetheless,
both employees and customer are part of righteous circle and attentions are ex-
changed between them. Bonaparte and Abbey, (2012) postulated that the rela-
tional exchange among employees in organizations must be considered as a pre-
condition for flourishing exchange within external markets. A researcher such as
proposed that satisfaction of external market depends on satisfaction of internal
customers (Ting, 2011).

Muhammad, Nadeem and Ashfaq, (2011) is most likely the first study that gave
the internal marketing as highest quality in services in their delivery. They also
stated the idea that in service delivery, people are most common and actions by
them had crucial impact on customer migration, retention, and acquisition. In ad-
dition, they stated that employees who are facing customers are to be trained to
make and create a healthy customer relationship and employees who are left back
Literature Review 28

in organization must support these employees facing customers. Similarly, empha-

sis must be given on building ongoing relationship to have additional sales and
revenue and customer conscious, sales minded people as well as market orientated
workforce can help in achieving these types of targets (Bowles, 2014).

However, there are some opposite views on internal marketing that it is intrinsi-
cally difficult to execute and implement, so they proposed that internal-personnel
and inter-functional conflicts are the main inertia behind internal marketing execu-
tion and implementation. They also highlighted that some behavioral changes are
to be considered in order to understand the concepts of internal marketing. To re-
move organizational resistance and motivate employees facing customers, internal
marketing plan must be executed properly.

On the other hand, internal marketing focuses on the necessity to consider employ-
ees as people. Particularly, the HR manager in a company should be well aware
of employees so that they satisfy and motivate employees (Tang & Tang, 2012).
Hence, the company should have an understanding about marketing like approach
for employees. In some way, companies treat employees as they are their cus-
tomers. Lastly, implementation of explicit strategies and functional strategies are
considered well by internal marketing. Huemann, (2010) postulates that human
resource management and internal marketing are interchangeable.

On the other hand, many researchers believe that marketing management and
internal marketing are the same concepts. However, as Muhammad, Nadeem, and
Ashfaq (2011) modeled that customers may best be explained under the concepts
of human resource management and internal marketing and the concept of internal
marketing can be taken and presented well with the contribution of human resource
management. Similarly, many researchers explain that the vital role of internal
marketing is to sponsor effective HRM strategies (Sokachaee & Moghaddam, 2014),
and such studies give a secondary position to internal marketing in regards to
human resource management.

Gupta and Jindal, (2013) suggested that internal marketing can do better in train-
ing, rewarding, motivating, and satisfying employees. Bickhoff, Hollensen, and
Opresnik, (2014) found that internal marketing can consistently provide training,
Literature Review 29

developing service providers, capabilities and knowledge of service and provide

awareness of marketing skills and market opportunities. Zhang and Lin, (2012)
confirmed that internal marketing deals with hiring, training, and motivating
such employees who are willing to provide customers better services. Muham-
mad, Nadeem and Ashfaq, (2011) explained that only a thin line appears between
internal marketing and human resource management. Nonetheless, this is the dire
requirement of the time to differentiate human resource management and internal
marketing so that two different concepts should not be mixed. Boon, Belschak,
Den Hartog and Pijnenburg, (2014) explained that do the same as HRM doing like
attracting, training, developing, and motivating employees appropriate employees
so that needs are met satisfactorily. The philosophy of internal customer based
on dealing employees like they are internal customers and these are the tactics to
shape jobs to fulfill customer needs. Kumpirarusk, (2012) elucidated some of the
elements of internal marketing such as leveraging the freedom factors, measuring
and awarding, preparing people to perform, customer orientation, offering a vi-
sion, talent, and stressing team play. Contrarily, the sphere of human resource
management relates with the managerial issues and it deals with the recruitment,
selection, training and development, employee motivation, and retention. Sim-
ilarly, human resource management collaborates with the dovetail of employee
with the company. Human resource management deliberately clarifies that em-
ployees must be well aware about the company’s goals, objectives, mission and
vision. Thus, employees are considered internal customers and internal marketing
is based on marketing principles. Based on the literature, study proposes that:

H1: Internal Marketing has significant impact on Job Satisfaction.

2.3 Employee Motivation and Job Satisfaction

Berry (1981) mentioned that an employee must feel satisfaction with his job, his
relationship with his employer and organizational environment, only then he can
provide best services (Foreman & Money, 1995). It means job satisfaction lead
to positive employee behavior (Arnett & Obert, 1995). In service organizations
Literature Review 30

employee behavior matters a lot to please customers and to shape up their attitudes
towards an organization.

Ugboro and Obeng, (2000) reported that customer satisfaction is an outcome of

job satisfaction. Actually job satisfaction make employee please, engage them
maximum in their work and in organizational community. This impact leads to
towards customers. Gounaris, (2006) found that job satisfaction increases orga-
nizational customer focus and it attention towards market orientation. Present
study deals with the job satisfaction as mediator.

Motivation is taken as one of the independent variables most of motivation the-

orists based their theories on needs. Now it is a very important to conceptualize
how job satisfaction is derived from needs. When needs of the employee are ful-
filled they tend to be satisfied. Bavinck, Pollnac, Monnereau, and Failler, (2012)
reported that employees do not tend to leave their profession when their basic
needs, their social needs and self-actualization need are fulfilled.

Job satisfaction defined as “the level to which an individual has a positive attitude
towards his job, either in general or towards a specific dimension” (Jehanzeb,
Rasheed, Rasheed, & Aamir, 2012). It is clearly defined by previous literature
that job satisfaction is linked with “monetary compensation” and also with “non-
monetary compensation”, both the compensations are important role playing in
job satisfaction because monitory compensation deals with “pay, promotion and
bonus” however nonmonetary deals with “motivation, encouragement, interaction”
(Zaini & Nilufar, 2009).

Job satisfaction helps employees psychologically to provide quality in service (Spec-

tor, 1985; Milne, 2007). Job satisfaction affects service quality significantly pos-
itively (Karatepe, Avci, & Arasli, 2004), internal service quality (Bai, Brewer,
Sammons, & Swerdlow, 2006). According to Schuler and Jackson (1996) success
of private and public educational institutes depends on job satisfaction which in
turn depends on monetary compensation and non-monetary compensation. Re-
ward plays an important role in achievement of job satisfaction in both private
and public and private educational sectors (Zaini & Nilufar, 2009). Given the
literature, study proposes:
Literature Review 31

H2: Motivation has significant impact on Job Satisfaction.

2.4 Employee Empowerment and Job

Satisfaction

Human resource management is a broader field than internal marketing. Moreover,

human resource management is a wider concept of management sciences that deals
with numerous conceptions such as policies, functions and process, objectives, and
strategies for the purpose of achieving organizational plans. Furthermore, human
resource management is considerably in order to implement the programs and
practices of internal marketing (Liu, Liston-Heyes, & Ko, 2010). It is, therefore,
taken that internal marketing flourishes and originates with the company and it
deals in such a way that the reduction and elimination of hierarchy and improve-
ment in information system are practiced.

Hence, this improvement of information system is practiced among business de-

partments, management, and employees. The improvement of information system
in the context of internal marketing should be recognized. Grönroos, (2009) found
that there are three main roles of internal marketing included like employee activ-
ities, management, and human resource department. Punjaisri, Wilson, & Evan-
schitzky, (2009) instituted that the human resource department should collaborate
in formulating, evaluating and implementing the policies of internal marketing.

Sharma, Iyer, Mehrotra, and Krishnan, (2010) explained that there is an ultimate
interaction between internal marketing and both these are primarily required for
successful implementation of marketing oriented program plans and task. A study
found that in any department the job attitude, motivation, job satisfaction is a
prerequisite for achieving organizational goals (Malik, Danish, & Usman, 2011).
A study found that there is a relationship between job satisfaction and internal
marketing (Back, Lee, & Abbott, 2010). A plethora of researches has been done
on the same concept that implementation of internal marketing in an organization
Literature Review 32

would create job satisfaction and it leads to the performance enhancement (Ming-
Chun, Ching-Chan, & Ya-Yuan, 2010; Rodrigues & Pinho, 2010). Another study
found that internal marketing has a positive impact on organizational commitment
(Bel, Fageda, & Warner, 2010). Ting, (2011) postulated that the impact of internal
marketing on organizational commitment and job satisfaction is positive. Hence:

H3: Empowerment has significant impact on Job Satisfaction.

2.5 Marketing Orientation and Job Satisfaction

There remains some factual support for and important relation between internal
marketing and customer satisfaction (Chuang, Judge, & Liaw, 2012) and between
internal marketing and provision standard (Lee, Gereffi, & Beauvais, 2012) re-
sulting by this, workers would be enabled of providing a service with maximum
determination, by which they would be enabled to please the requirements of ex-
ternal customers (Erl, Puttini, & Mahmood, 2013). A comprehensive study of
the scriptures showed no previous factual baking for the connection between job
satisfaction and internal marketing. HRE has been categorized into tactical and
practical efficiency depends on tactical decree. It can be predicted that IM would
have a direct impact on both tactical and practical HRE and in turn, await for
tactical HRE to have an impact on practical HRE. If the effect on practical HRE
on practical IHR efficiency increases from domestic marketing or tactical HR effi-
ciency separately, or if the impact of domestic marketing on technical HR efficiency
is abated by tactical HR efficiency.

In spite of the fast adaptation at the level of literal material, IM is employed in

practical only understood by very few associations and there is a vast variety of
definitions dedicated to the idea being a cause of some disagreement regarding the
aims, tactics and strategies to employ IM in organizations. Due to the cooperation
that has been created in between its practical appliance and the standard of ser-
vices/products, the concept of this study is of immense interest at the scholastic
and departmental standard. A high amount of IMO or internal marketing orien-
tation which decides the efficient practical appliance of IM, makes the response
Literature Review 33

tactics of the department better and by that it helps to increase the organization’s
productivity. Some of the other variables are also of immense significance to or-
ganizations (Chiang & Hsieh, 2012). In co-ordinance with IM, also appeasement,
dedication, departmental citizenship reactions, and performance of the individual
are fully and closely related with betterment in the standard provided to external
customers.

The background of more standardized education or higher education (HE) that

has endured frequent adjustments seems legitimate to judge IMO as in accordance
to the Legal System of Higher Educational Institutions, Higher Education Insti-
tutions (HEI) are cantonments that supply the community with services, transfer
knowledge and have the freedom and are bound to create codes of satisfactory
management practices.

In co-ordinance with the judgment of employment satisfaction, determination,

departmental citizenship acts and conduct, the conclusions of IMO by scholars
makes sane statements since in accordance with the Statue of the Career of the
Polytechnic and university crew, they must take part in the organizing of HEI and
thereby have a crystal clear understanding of how they should behave towards
employees (Awwad & Agti, 2011). Many associations are lessening the number
of directorate levels in accordance to envoy management obligations to level the
decision making power much closer to the external clients, now the organizations
do conceive the importance of the workers. Therefore, taking good care of clients
demands complete concentration on the attempt to satisfy and please workers.
Internal marketing is vital and a co-curricular activity to generate a consumer-
concentrated departmental culture with an objective to create internal and ex-
ternal acknowledgement of customers by abolishing obstacles of organizational
efficiency (Winston & Cahill, 2012) define internal marketing as: “attracting, de-
veloping, motivating and retaining qualified employees through job-products that
satisfy their need. The philosophy of treating employees as customers and the
strategy of shaping jobs to fit human needs”.

It is discussed that domestic marketing programs and management influential

tactics must be proportioned if internal marketing is to hold a position and become
Literature Review 34

an efficient part of practicing management (Huang, Chiu, Ting, & Lin, 2012).
Similar to this, internal marketing is also sought to be as a vital issue faced by
marketing experts, HR managers and executives in general (Costa & Vila, 2014).
Researchers such as, Winston and Cahill, (2013) describe IM practicalities as to
surpass multiple activities that have been divided into four major categories which
seem to compose IM: training and education, the idea of the internal customer,
quality standards and awarding system. Moreover the foundational purpose for
the appliance of internal marketing concept is to achieve motivation for employees
and to make them aware to serve the client in a way that is better way (Romero,
2013).

Researchers also see internal marketing as a management advance in which front-

line workers work as support crew division included, this advancement allows and
encourages workers of the department to do their own conclusion and for adopting
customer oriented services (Abzari, Ghorbani, & Madani, 2011). Likewise, Caru-
ana and Calleya, (1998) object that IM via its influential power over employees
creates a public oriented theme and founds a strong corporate service brand.

Researchers have also recognized some problems related to IM are inclusive of the
link between worker placement and departmental performance, the requirement
for how inter-working co ordinance can be acquired for the efficient employment of
marketing tactics, the requirement for relationship marketing ideology in internal
marketing, the want for study in internal communication tactics and the role
of internal marketing for developing organizational competences (Costa & Vila,
2014).

Papasolomou, Kountouros and Kitchen, (2012) advised that well-built and justified
internal marketing advancement can improve worker relations with management
and overall departmental aggressiveness and work. IM developed from the idea
that workers represent an interior market within the department and that this
market requires information about the department’s objectives alongside the ben-
efits of its products and services and the conceptual requirements of the consumers
inside the department.
Literature Review 35

The literature shows three stages in the molding of the concept of IM: the phase of
employee/internal customer satisfaction, the stage of customer orientation (Blocker,
Flint, Myers, & Slater, 2011) and the phase of strategy implementation manage-
ment. The beginning of the final phase is recognized by a varying number of
insights drawn by writers who started to see the role of IM as a way to employ
tactics. IM can be described as “concerted effort to overcome resistance to change
in organizations and to align, motivate and integrate employees with effective im-
plementation of corporate and functional strategies” (Lin, 2011).

This description shows the indication that any adjustment in tactic is likely to
require an effort of IM, in attempts to surpass departmental inertia and to motivate
workers to a suitable behavior.

From the conclusion of appropriate literature at both theoretical and factual level,
five key factors of the IM arise: (Nudurupati, Bititci, Kumar, & Chan, 2011).
Internal Market Orientation in Higher Education.

1. Customer orientation and satisfaction;

2. Employee motivation and satisfaction;

3. Marketing approach to the matters referred above;

4. Inter-functional coordination and integration;

5. Implementation of specific corporate or functional strategies

As stated above, the scale of internal marketing orientation is used to judge the
far end to which the practice of IM is acquired with success in a department.
Huang, Weng, Lai and Hu, (2012) created an instrument to judge the adoption
of IMO inside the departments. The idea is described as the extent to which an
organization is committed to creating value for its workers through the efficient
management of relations amongst workers, supervision providers and managers.
Increasing the amount of IMO improves the reaction tactic of the department and
in turn, their capability to please customers so their profits and sales increase. This
approach will be used in this inquiry. According to the author, IMO generates ten
dimensions:
Literature Review 36

(a) Identifying the trading value,

(b) Being aware of labor market conditions,

(c) Segmenting the internal market,

(d) Segmenting the internal targets,

(e) The communication between managers and employees,

(f) The communication between managers,

(g) Job description,

(h) Paying system,

(i) Concern on the part of management and

(j) Training.

The IMO concept is supported by a big body of idea based on the paradigm of
market orientation, which thus states that a specific system of values is required
to create and offer value to customers. Authors such as, (Ruizalba, Bermdez-
González, Rodrı́guez-Molina, & Blanca, 2014). MO is defined by (Kibbeling,
der Bij, & Weele, 2013) as “the organization culture that most effectively and
efficiently creates the necessary behaviors for the creation of superior value for
buyers and, thus, continuous superior performance or the business” (Narver and
Slater, 1990, p. 21). In accordance with Fang, Chang, Ou and Chou, (2014),
the methods of IM give shape to the basis of the orientation internal as well as
external markets.

Verily, IM is and deserves to be regarded as a significant asset of marketing orien-

tation in general (Gambeson, 1991; Morgan, 1991), which some authors highlight
as the symmetry between the internal market (employees considered as internal
customers) and the external one (external customers) (Chari & David, 2012).

The two markets that is internal market, having his employee as internal market
members and external market, having interaction with other people than their in-
ternal employees. This paradigm shows the equal importance of both the markets
Literature Review 37

at the same time (Bowles, 2014). By relating this concept of IMO with the concept
to complement (Chau & Ngai, 2010) with the major three basics principles and
they are understanding the basic needs of employees and convey the information
effectively and then give benefits to the internal employees which then entertains
the customers in a good manner (Muhammad, Nadeem, & Ashfaq, 2011) As stud-
ies build that IMO is a paradigm that tells the theoretical manner to tell the strong
interaction (Casidy, 2013) between the customer and the market employees so it
is necessary to build a strong IMO trends, which leaves a positive impact on the
customer (Fang, Chang, Ou, & Chou, 2013).

Mok, (1999) observed that more research has made on external market. This is
not the negotiable fact that IMO has importance in the field of business and to
develop the positive relation of customer and a supplier (Abzari, Ghorbani, &
Madani, 2011) and to bring internal market to attain the marketing objectives
(Ahmed & Rafiq, 1995).

Chambel and Alcover, (2011) build a research to know the positive attitude of the
workers and their satisfaction level. Fang, Chang, Ou and Chou, (2014) proved
this fact that IMO is helping to promote the effective interaction of the employees
and customers, and the need of this whole phenomenon is important to develop the
sound culture of marketing. Thus the IMO is all about that how the employees
are self-motivated or promoted by the organization to build positive marketing
attitude.

The above made research promotes the fact that IMO plays a crucial role to
define the efficiency and potential of the organization that how it builds a smooth
relationship of the customer with their people and how they obey the values of
the marketing culture (Aziz & Omar, 2013) and how the organization keeps their
employee satisfied which ultimately helps the organization to build its repute and
provide it with worthy profit (Khan, Aslam, & Lodhi, 2011).

IMO also promotes the relationship between the employees of the internal market
as well. This proves that it is more necessary to satisfy the needs of the internal
customers so that they handle their responsibilities more carefully in the regard of
external customers (Hernon & Altman, 2010). However, latest century to tell the
Literature Review 38

importance of tourism which is now act as an important industry, as it helps in

exchanging the cultures, lessen the unemployment, increasing the job satisfaction
and above all it also give health to the nation’s economy.

Higher education which is now very common in the field of education also play an
un-doubtful role, it also grooms the education industry by developing the positive
ties among the education sectors of the countries and it also depicts the signs of
IMO in it.

These theories can be defined by different points.

• Conditional aspects in which the job environment matters.

• Dispositional theories, which states that job satisfaction is all about personal
satisfaction and depends on the characteristics of one’s personality.

• Interactive theories, this is all about the person how he behave on the basis
of his personality feature and according to the situation.

The latest work is done on dispositional theories, but still developments have
to make on this. While the major fact is that every person is vary from in his
personality from the other person, which has to keep in mind while developing job
satisfaction (Altaf & Awan, 2011). De Rijdt, Stes, van der Vleuten and Dochy,
(2013) developed the model on job development which helps to elaborate the three
variables of the work which are

• To know the basic objectives of your work and its characteristics

• Psychological stages

• The need of individual to grow

The model states that the quality of the works, efficiency level, motivational level
and the environment in which the individual works, the nature of the work, the
effective way of communication directly affects the psychological state of the indi-
vidual and his work competency. The overall growth of the individual depends on
Literature Review 39

his level of job satisfaction and by the values of his job. The pioneers of the term
“internal marketing” were (Mohammadi, Hashemi, & Moradi, 2012).

Many proponents of IM follow Wang, (2012) which elaborates it officially that it

is all about the satisfaction and hardworking level of the internal workers which
directly facilitates the external members (Mahmood, 2013). Internal marketing
was stated by different people in different manners which defines it as a concept,
practices and a set of management practices (Kerzner, 2013). In a simple way
internal marketing is all about treating both the employee and customers in a same
way by giving parallel importance and to gain the objectives of the organization
(Philippe & Albert, 2013). According to them, internal marketing is a gesture or
behavior to satisfy your internal employees who then gives their best to achieve
and corporate with the external (customers).

The term internal marketing is also linked with the term “employees as customers”
which shows that their first priority is always their employees and their level of
job satisfaction (Eisingerich, Auh, & Merlo, 2014). Internal marketing is also
defined as “a tool of effective communication that systematically influences the
knowledge, attitudes, behaviors and actions of the employees” Ellinger, Musgrove,
Ellinger, Bachrach, Elmada? Ba? and Wang, (2013) defined internal marketing as
“A combined effort using a marketing approaches to deal with the organizational
resistance to change and to maintain, motivate, and functionally co-ordinate inter-
nally and integrate employees towards the effective implementation of corporate
and functional strategies to satisfy the customer all by the help of the motivated
and highly trained employees having complete command on the values of the mar-
keting”. Nijhof and Paashuis, (2014) describes different perspectives of the internal
marketing which are as follows:-

• How the staff is well skilled?

• Cycle of customer services and feedback

• By giving importance to the customer.

Cook, (2012) worked on the different attributes of the employee, in which mainly
his behavior, his social interaction, his empowerment, how he deals customers,
Literature Review 40

information passing, and management services these all things counts mainly. By
rewarding employees, by trained them by the help of different training and work-
shops can increase their capabilities towards internal marketing (Tsai and Tang,
2008). Lings and Greenley (2005) also supported that the above mention rein-
forcements are very much important to develop a high level of internal marketing
(Gupta & Jindal, 2013).

Aburoub, Hersh and Aladwan, (2011) describes the main points of internal mar-
keting in which employee is the main thing to deal with and whom should be
satisfied first, an employee should have high level of creativity, corporate link-
ing, motivation and satisfaction, customer orientation and customer satisfaction,
functional co-ordination and integration, marketing approaches to the above, and
implementation of specific corporate or functional strategies. Ting, (2011) de-
scribes the five perspectives of the internal marketing as training, administration,
effective communication, external communication, human resources management,
communication, and training and development.

Awwad and Agti, (2011) gave another dimension of the internal marketing which
is called as “motivation” which he defines as “the behavior and attitude of the
workers which they do in the require situation” while (Dembo & Seli, 2012) defined
motivation as “it is high-level self-regulated learning strategies, such as paying
attention, connection, planning, and monitoring”. Noe, Wilk, Mullen, & Wanek,
(2014) defined motivation as “it is a force which tends us to do something or not
to do that thing”. Empowerment: participation is a two way process in which
performance of one effects the action of the other person, it is a process divided
in different grades. Empowerment can also be defined as the independent process
(Bowen & Lawler, 1992) in which an individual is independent to work on his
personal creativity and motivation and he will be responsible for his reactions as
well (Beausaert, Segers, & Gijselaers, 2011).

Aziz and Omar, (2013) defined communication as a base of successful IMO. With-
out effective communication it will be difficult to develop the marketing culture
and to maintain corporate functions. Leiss, (2013) defined communication as a
Literature Review 41

process within the organization which maintains the process of conveying mes-
sages. Ahmed and Rafiq (2002) gives the concept and importance of training and
development as it is responsible in the management practices. Davenport, (2013)
describes that training is a proper process which can only be make successful on
the basis of knowledge and skills to attain the main objectives of the given task.

For the managers of some organization the most difficult task for today is to deal
with your employees and take them to the high level of job satisfaction which is
sometimes very problematic for managers. Before we use the term “job satisfac-
tion” we have to know what job satisfaction is?? What is its importance? and
why the organization needs to develop job satisfaction among his employees? To
answer all the above questions, the answer is job satisfaction is directly proportion
to the performance, more the performance is appreciable more will be the feeling
job satisfaction. Nazeer, Zahid and Azeem, (2014) defined job satisfaction as “it is
the positive feeling you achieve when you get any appraisal in your job, and to you
maintain the job requirements and values”. Aziri, (2011) explain job satisfaction
as “the extent a person likes or dislikes (dissatisfaction) his job and its values”.
Punniyamoorthy and Vilvanathan, (2013) express job satisfaction as a positive
emotion or a feeling of pleasure you attain with your job. Belias and Koustelios,
(2014) defined job satisfaction as the process which keeps on orienting according
to the need of the employee and the task assigned to him.

Job satisfaction itself is an attitude which is a result of attitude of the employees

belongs to the particular organization (Ajala, 2012, June) inquires Job satisfaction
as the major ingredient of the marketing that helps to attain recognition, income,
promotion, and the achievement of other goals and to fulfill the responsibilities.
Among the key factors efficiency and effectiveness of business organizations is job
satisfaction (Aziri, 2011).

Job satisfaction is of key importance for the growth and development of any or-
ganization. The history of management practices can be get from the historic
points of views when the marketing was only limited to one street of the market.
Development in the man’s life is like a never ending process, it is always a practice
Literature Review 42

of man to achieve his goals and objectives, since different civilizations to up till
now and it will be continued till every generation.

It is a common practice of every single person to attain his objectives in a better

way and try to develop himself more and more, and this urge of getting more and
more develop and successful is increasing day by day, it is like a race in which
every person is involved and to maintain your individuality it is necessary to be
on the top to achieve and manage your objectives (Wellington, 2011).

The primary attribute to attain your objectives is “management”, a term can

be defined to deal and control people and by the help of management one can
understand his own existence, reason of life, developing understanding and to deal
wisely with the information provided to the individual and how to deal with the
problems and other sensitive issues. To understand how to do better management,
a whole hierarchy should be made in which understanding of managing styles, its
concept and its application is necessary according to the concept and revolution
in the human priorities (Keller, Parameswaran, & Jacob, 2011).

Higher education, in which educational system of universities established and it

is of key importance for any country which is strongly handled by proper man-
agement, not only management but its types and its concepts. They are the
combination of all important laws and federation. Above all, to implement proper
management one have to follow the whole framework of administration, laws,
concepts and developmental procedures which directly improves the condition of
whole organization by keeping their employees contented and satisfied by provid-
ing them with the benefits related with the job, good environment and rewards
(Al-Shraideh, 2004).

The role of higher education is also admire by our society as they solely play the
key role to improve the educational conditions of the whole society according to
its needs in the society as well as worldwide. Their importance can be appreciated
by the fact that they contributes themselves in the form of physical workout in
the form of the training and workshops as well as by their knowledge and their
educational attributes, they also contribute in the moral values mainly behavior,
attitudes, and social responsibilities of the individual.
Literature Review 43

They assured themselves as foundation, as they build the generations and genera-
tions by transferring knowledge, by moral training, by implementing the concept of
extracurricular activities, by taking steps to improve the developmental conditions
both infrastructural as well as educational (Păunescu, Shahrazad, Cantaragiu,
Găucă, & Pascu, 2014).

By keeping this in mind, Jordanian universities doing development in their uni-

versity system as well, by taking steps to improve their scientific research and its
methodologies, specialization in physical education, by improving comprehensive
educational process to improve both the physical and moral conditions of their
educationally engage people.

According to the modern education system, physical education is of much more im-
portance as it comprises on the strength of the individual by maintaining physical
conditions, psychological strengths, expression of emotions, personality aspects,
motivational strengths to achieve their goals as well improvement in general be-
havior (Scalas, Morin, Marsh, & Nagengast, 2014).

Importance of job satisfaction is an important aspect to maintain the psychological

and social perspective of the individual. Thus job satisfaction is directly proportion
to the efforts of the individual; the more he is satisfied more the performance of
the individual will improve which leads to bring him to the success of job and by
the repetition of this whole cycle improves the standards of society.

The one who is more satisfied will be more sincere to his job and his objectives
which improves his motivations and his job capabilities. The one who is more
satisfied with his job will be more efficient to perform his task with proper man-
agement and preparation (Rice, 2013) which directly or indirectly increases the
level of job satisfaction as well as it strengthens the organization as well. Altaf
and Awan, (2011) describe job satisfaction as positive attitude and feeling person
achieved when individual achieved his objectives and get reward on it by giving
importance to his job capabilities, this job satisfaction can be defined by three
different perspectives which are as follows:

The emotional perspective which is difficult to explain but still it can be sort out
and can manage properly.
Literature Review 44

• It is the interdependence of requirements and goals to that of personal ca-

pabilities and job expectations and then how to fulfill those expectations.

• Job satisfaction is a phenomenon of interdependent attitudes and ideas, it

tells about the needs of the individuals which are greatly affects by the
factors (interior and exterior). These factors helps individual to enjoy the
atmosphere of his job, keeps its motivation high, and express his capabilities
for the betterment of the organization.

• Psychologically job satisfaction has strong impact on the human behavior as

well it directly influences the individuals feelings both hidden and the other
he expresses (Arthaud-Day, Rode, & Turnley, 2012). Satisfaction doesn’t
mean that it can only be attain only from one objective but satisfaction is
all about combination of number of dimensions in which job environment,
salary, administration, chairperson, policies, peers, his motivation, person-
ality factors and reinforcements plays a crucial role. When a person has a
positive perceptive that his job can satisfied his needs, he will be more be-
have positively and will work more impressively towards his job (Altrichter,
Feldman, Posch, & Somekh, 2013) describes those factors which restricts job
satisfaction and they are as follows, Job satisfaction completely depends on
the employee and his skills like education, person’s abilities, attitude and
what rewards provided to him by the organization like wage, environment,
colleagues , promotion, leadership, administration, chairperson and bonus,
they all strongly affects the level of job satisfaction.

Ahmed, (2012) by giving the example of kindergarten teachers, explain the concept
of job satisfaction, which comprises on the teachers, their salaries, environment,
appreciation, academic status, experience and authority given to them. It was
observed that the level of job satisfaction was high in those teachers who were paid
more than those who were paid less, the other observed factors were married verses
unmarried, experienced teachers over newly hired teachers and those teachers who
have more authority seems to be more contented and satisfied with their jobs other
than those who are under command by them.
Literature Review 45

Fink, (2013) by taking the example of Yarmuk university faculty members explains
that there were no considerable observed differences between views and expressions
as per the facilities provided to them by the university. Al-Issa, (2013) observed
personal relations of the countries like Oman and Jordan and concluded that the
extent of personal relations of the teachers were medium in these countries, and
they were different on the basis of their educational abilities and by some other
perspectives by taking Jordanian people as sample.

While the level of job satisfaction for the people of Oman were much higher than
that of Jordan both in the cases of education and sub perspectives (Levy, 2000).
Conclusively it will be acceptable to say that personal relations of the teachers in
the case of Oman and Jordan do not have any considerable differences.

These results also supports the importance of other attributes like gender, and the
level of experience for predicting the level of the personal relationships and job
satisfaction for the Omani teacher, and the variables of specialization, experience,
and qualification for predicting the level of personal relationships and job satis-
faction for the Jordanian teacher. The above all conditions and other researches
states that the faculty members help to boast other members as well by the help
of the training workshops and by their personal help as well. As every person has
its own individuality, so training is necessary to train those individuals to play
their proficient role to understand the needs of their organization their jobs and
its values.

Among the individuals it is necessary to understand the concept of job satisfaction

and its importance to create an understanding among the people of the organiza-
tion. It is important to understand the difference between the values and needs of
the individual; values should always be preferable over the needs. Interests, abili-
ties, talents and motivation they all may be consider as the important part of the
job but the values of the individual are much more important than any other thing
(Katz, 1964). By knowing his values and motivation one may be able to select his
job of his own choice and the contribution of his job towards the betterment of
his country. It is difficult to manage things without knowing and perceiving the
fact of the human needs and values. Davenport & Prusak, (1998) stated that it
Literature Review 46

is necessary to understand the values of the individual, which can only be done
by the help of the proper management done by the human resource group of any
organization.

Psychologists also give their point of views in this manner; they pursue the im-
portance of job satisfaction and values in different manner to that of the views of
economists and sociologists (Ouchi, 1980). Factor does not lead to job satisfac-
tion, rather a certain as psychologists gave their view point as the value services
by discovering and supplying those resources system which establishes, organizes
and predicts the social attitudes of individuals, thus they varies from individual to
individual. Being psychologists one can say that value is also consider as a state
of likeness (positive) or dislike (negative), they are not practiced by any individ-
ual suddenly or by the happening of any incident but they are the result of any
persons personal experiences and individuality.

Values are decided by the individual again by his own choice, you can say it is
a feeling of likeness (love), desires, needs or urge which arises by the features of
personality in which conscious, sub- conscious and unconscious state of mind is
involved (Weil, 1998). Other than this factors which are involved are quality of
life, that how much a person is happy and satisfied with his personal or family
life. His behavior, towards his friends, family members, colleagues and his higher
authorities also tells the importance of values in his life.

Hence, we can say that values are directly attach with the behavior and attitude
of the individual, it’s all about his will and his likeness, although behavior can
be consider as unconscious behavior but still it affects the level of values of every
individual. It directly or sometimes indirectly leaves influence on the individual’s
behavior (Kelly, 2003). But still psychological and sociological perspectives unite
at some point to tell the “reasons of the formation of these values” prudent and
experimental values.

Communal classes of a community, among which, the views and the beliefs are
most important. Many other basic factors such as learning, the kind of teaching
provided, family, age and time, place and as well as the individual roles of the
Literature Review 47

people are also very effective, but, above all that, the culture itself and the artis-
tically views are the origins of values. Sociological and anthropological ways are
another considerable way of looking at the values. Peck, (2002) believed that, to
test a person’s value, we must get to know the right forces and the ability of the
person in a free and progression manner of his life.

Peck, (2002) assigned the values to their basic idea and attributes bodily and
sacred aid. So, according his views, the things that make a person’s life better,
full of joy and to a healthy growth is known as to be values.

The importance of a person in their community assures them a better healthier

life and the well-being of their community, we can say that, communal values are
the pillars that help to keep a community together and leads that community to a
better growth, in an beautiful position and assures every individual a continuance
of a better life in the community.

But, what may be the link between a single person and their employment satis-
faction?

When the person is assured with all his needs, they start to accomplish their
ambition and intentions, which further leads them to peace of mind.

Job satisfaction is the awareness of a person concerning their job. When said that
a person is satisfied with their job, it means that the person likes his job and
values it and has a great view towards it (Moore & Feldman, 1960). Employment
comfort has many dimensions and is a complex idea and is associated to mental
and tangible communal odds. Varying mixtures of factors result in a person’s
comfort with his job during a certain amount of time. Individuals have many sense
of satisfaction with their job as they highlight factors such as salary, communal
value of their employment, and status of their job’s surrounding and product of
employment at different times.

Kalleberg, (1977) has stated two kinds of job satisfaction and from different views.
They believe that employment satisfaction is of two kinds and one is achieved when
the person is sure of his satisfaction with his job. The first is known as “intrinsic
satisfaction” that is created inside a person just from the fun he gets from his job,
Literature Review 48

promotion progress, communal obligations and his capabilities and ability. The
second kind is “extrinsic satisfaction” which are related to a person’s working area
and its state that may change at any moment. The factors of extrinsic satisfaction
relate to the working environment state, salary of the person, the relationship and
the work done between the employee and the employer.

The extrinsic factors are less established than the intrinsic factors, but, the overall
satisfaction is the result of the combination of both these types of satisfaction. in
accordance to the meta-analysis which was performed by (Andreassen, Hetland,
& Pallesen, 2010) , although it’s stated that developing employment satisfaction
and the adjustment with the jobs working environment, the most important odd
in this is the values, that have a big hand in being an important change.

This analysis concentrates on the result of encouraging factors on employment

satisfaction of Islamic Azad University (IAU) staff members, most importantly
the relation between the said university’s favored values and employment comfort.

So above all, the aim of this study is to know the advantageous values (religious,
Artistic, economical, theoretical, political and social values and employment sat-
isfaction (including satisfaction from Work nature, supervisors, colleagues, jobs,
salaries and Promotions) of the faculty members of district of the IAU. Following
these viewpoints, two areas are specified as being the main attraction points: to
know more of how the needs of the values if faculty members are and how their
employment satisfaction can be judged?

Employment satisfaction has been creating some trouble and fusses; it’s been
described as “complex emotional reaction to work” or as a mental outlook. It has
been divided according to the following categorization.

(a) Positional factors, that views the factors of working area and the organiza-
tions environment

(b) Inclinational factors, which view the factors of a person’s charisma and pri-
vate life

(c) Common theories, this suggests that the job comfort is made from the linking
between a person’s nature and the situation during the time. Inclinational
Literature Review 49

theories are the latest factors and as well as less established. Overall, the
personal differentiation factor is taken under view since the time the in-
vestigation had started about job satisfaction. The aspects of employment’s
model were referred by hack man about the three individual kinds of change:
fair aspects, mental agreement or levels and personal needs of growth. Fol-
lowing this model, the middle and important aspect of each assignment.

In many kinds of abilities, the character and describing the task, the level of
independence, the amount of data provide to the worker or employee about his
progress A.K.A feedback encourage the persons’ mental level.

The linking between the job satisfaction and internal marketing has become an
important thing to look at and research about for many researchers (Berry, 1995).
If an organization implements internal marketing, then they are encouraging and
developing the job satisfaction for workers, which will surely lead to the orga-
nizations performance and work to improve (Rafiq & Ahmed, 2000; Conduit &
Mavondo, 2001).

Factual observation conducted on the result of internal marketing odds on job

encouragement and satisfaction in the retail stores showed that the working en-
vironment and time, cleanliness, disinfection, rest rooms, support from senior
ranked employees and mental outlook of coworkers have the highest and greatest
change on job satisfaction and motivation (Al-Hawary, Al-Qudah, Mash’al Abu-
tayeh, Mash’al Abutayeh, & Al-Zyadat, 2013).

Ahmad and Al-Borie, (2012) observed the result of internal marketing on job sat-
isfaction and organizational agreement of the hospitals, teaching, in the kingdom
of Saudi Arabia. These factors were presented by these changes, selection and
appointment, training and development, organizational support, incentives and
motivation, and retention policy. The observations showed that internal market-
ing had a good result on the teaching of physician’s jobs in hospitals in Saudi and
increased satisfaction and company obligations.

Internal marketing had a positive effect on job satisfaction, also in higher institu-
tion staff of Northern Greece.
Literature Review 50

The male personnel and the doctors had significantly higher levels of job satisfac-
tion. The staff with time-defined contracts have a higher level of job satisfaction
as compared to the permanent staff, and as the members age, there has been a
little down-fall with the satisfaction (De Cuyper & De Witte, 2005). Internal mar-
keting had a positive influence to nurses’ job satisfaction. IMO (Internal market
orientation) is a vast term and field of studies and it can be defined as the flow
chart of the theories related with the values of the marketing, which tells the man-
ners of the customer client relationships and shows that how they give importance
to their customer and their ties. Research made on market orientation (MO) and
standards developed by Jaworski and Kohli, (1993) to entertain the customers and
develop corporate norms and how quickly the person of the organization responds
to their customer and to maintain the marketing practices.

It is also stated that MO can be defined as “an organizational culture that develops
a strong bond between customer and a supplier” and it is the basic necessity in the
field of the business (Slater & Narver, 2000). By standardize the rules and values
of the marketing and it also highlights the class of the business (Gummesson, 1994)
above the two kinds of markets the Internal market have key importance in the
field of the marketing along with the external market (Gummesson, 1994; Morgan,
1991) as both of them have their own customers and importance (Piercy, 1995),
but still both of them are side by side important. (Liao et al., 2011) it all depends
on the number of activates (Mohrw-Jackson, 1991) which are as follows firstly
they should be properly understand or they are understandable by the customers,
than it should be effectively convey and then to make profile by fulfilling the
requirement of the customer (Zairi, 2000). It is necessary to maintain the IMO
(internal market orientation) to build a firm interaction of the customer with the
internal or external market (Achrol & Kotler, 1999).

But the scientific research laid more stress on the external market (Conduit &
Mavondo, 2001), but later it has proven that internal market has more impacts
on the marketing field and It maintains the norms and culture of the marketing
services (Lings, 1999).
Literature Review 51

Lings (2004) worked and build consensus that IMO plays a vital role in the devel-
opment of the public relations as well as to fertile the market value contents. Thus
IMO is important to maintain the behavior of the employee as interaction of both
the employee and customers is important, and to satisfy the customer by giving
them good customer care services. IMO also deals with the high capabilities of
employee to maintain the overall business class and marketing culture.

To judge the quality of the higher studies, research was made to know the standards
of the higher education, ESCI models were made to study the whole paradigm
(Alves & Raposo, 2007; Brown & Mazzarol, 2009). While this model is not effective
to conclude anything regarding this manner, because the parameter on which this
model is made on is not fair enough to draw a hypothesis. The studies which based
on to know the real image of university is build and to make a strong hypothesis,
effected by the value and it has its different attributes like values, the importance
of degree, environment etc.

The major portion for the image building of the university strongly relies on the
quality (Grnroos, 1984) as well as quantity and values which are important to
satisfied the needs of the students (Nguyen & LeBlanc, 1998), any negative effect
on this relation can harm the repute of the degree and image of the university as
well. Hence, higher education commission who is working on the model of ESCI
needs more effort to be made on to improve the standards, and for that they need
a complete paradigm to run the organization and it can be done by retaining the
employees with their and organizational requirements as well as to promote the
creative capabilities of the employees and motivate them to show their abilities
other than their responsibilities (Katz, 1964).

As result of the above mentioned research, IMO has become the central profi-
ciency of the organization, a proficiency that creates possible combative benefit by
having more content and faithful customers (Lings & Greenley, 2005) and happier
employees (Gounaris, 2008), which successively should give ascend to manifested
market share and surplus in comparison to rivals (Lings & Greenley, 2010). Liao
et al. (2011) in this condition claim that IMO appear for the modification of
MO to the condition of employee-employer bourse in the domestic market. Thus
Literature Review 52

domestic suppliers need to concentrate on meeting the desires of their customers

in order to provide better value to non-resident customers (Conduit & Mavondo,
2001).

Rivera and Upchurch (2008) realize that at the beginning of this millennium,
tourism evolved into the alpha industry in most countries, alongside being the
quick growing economic area in conditions of foreign exchange and employment
generation. In fact, tourism is believed to be the world’s biggest overseas selling
earner and a significant element in the stability of remittance in a lot of countries.
Along with the significance of this division, one should also remember the signa-
ture role which retailing and work-force have in the welcoming industry. In its
illumination, it seems specifically pertinent to study IMO in the education sector.
Thus the study proposes:

H4: Market Orientation has significant impact on Job Satisfaction.

H4a: Customer Orientation has significant impact on Job Satisfaction.

H4b: Competitor Orientation has significant impact on Job Satisfac-

tion.

H4c: Organizational Coordination has significant impact on Job Satis-

faction.

2.6 Job Satisfaction and Service Quality

The marketing orientation has the prime focus of marketers because the main
driving force behind this concept is customer. For organizational goal achievement,
it is necessary to have focused on the internal exchange between employees and
originations and most important thing is that needs of customers and employee
focus should be at the same priority. Both customers and employee satisfaction
will take the organization to the goal achievement. Thus, internal marketing is an
important part of marketing orientation (Gummesson, 1994).

Morgan, (2007) found that marketing oriented organizations follow internal mar-
keting at priority because for achievement of competitive advantage. The same
Literature Review 53

concept is focused in order to change the front line employees as an essential part
of product offerings. Chase, (1981) explained that two things are simultaneously
like consumption and production in service organization so that the direct con-
tact is increased between consumer and service provider. Thus, internal customer
relations get more important in providing better quality services. Thus:

H5: Job Satisfaction has a significant positive association with Service

Quality.

2.7 Internal Marketing and Service Quality

Service quality is defined as how good the service level provided that meet cus-
tomer’s expectations is. However, the concept of service quality is derived from
service marketing. The study found that measurement of service quality associ-
ating with customer’s expectations which provide more information than those
who only focus perceptions (Jemmasi, Strong, & Taylor, 2011). Furthermore, this
is very useful measurement to find out and then to recover the insufficiency of
service quality. Douglas, McClelland and Davies, (2008) investigated the Service
Quality Gaps Model, the recognition of the service gap assists in anticipating ser-
vice performance and it also helps to improve greatly the customer satisfaction.
So that, somewhat treated the dimensions of Parasuraman’s model to investigate
perceptions of students for service quality in higher education system in the world.

A study found that there is a significant relationship between organizational com-

mitment and internal marketing (Iliopoulos & Priporas, 2011). Hence, there is
a strong relationship of internal marketing with the affective element of orga-
nizational commitment. Another study found there is a significant relationship
between service quality and internal marketing and between business performance
and internal marketing. The aim of internal marketing is to establish such an
environment, consumer awareness disseminates among employees.

For this reason, satisfaction of internal customer is valuable to the company. The
capability of organizations to establish and get a competitive advantage by focus-
ing the quality is surely influenced by specifically organizational culture. Thus, a
Literature Review 54

plethora of researchers integrates organizational culture with enhanced organiza-

tional culture (Bryson, 2011) and also employee productivity (Bryson, 2011).

Furthermore, it is believed that internal marketing contributes a lot towards

achieving objectives of organizations (Torres & Kline, 2013). In the same way,
companies select, manage, develop, and encourage their employees to create mar-
velous business results such that no other company can copy their competitive
advantage. (Bel, Fageda, & Warner, 2010) has found that where conventional
internal communication failed the internal marketing might give a solution of em-
ployee commitment.

Therefore, for any company lack of employee commitment can be dangerous, con-
sequently it provides not a good performance that arises from poor service offerings
and high cost. Smith, (2013) explored that efficient execution of marketing tactics
may develop considerable results.

Same as, Keltner et al., (2012) explained that in order to get competitive ad-
vantage an innovative marketing strategy is required. Moreover, these marketing
strategies are considered a key driver of innovation and performance enhancement.
The successful execution of internal marketing leads to better individual perfor-
mance, effective communication, better trademark, and employee retention. A
study found that there is a significant relationship between customer satisfaction
and internal marketing and between service quality and internal marketing (Tsai,
Hsu, & Chou, 2011).

People have always been ardently interested in education. These educational de-
partments and sectors are adding up in the GDP of their country. Now a days,
higher education is suffering from different issues like shrinking funding from gov-
ernment, alternative evaluation procedures and competitiveness in accountability
and quality. (Tsai, Hsu, & Chou, 2011) proposed for service quality improve-
ment that there are five gaps in the service process. Thus, the last gap is related
to the difference between expected service quality and perceived service quality
and considered as the function of remaining four gaps. Service quality is defined
as the difference between customer’s perceived service experience and customer’s
expectations.
Literature Review 55

Like other sectors, in the higher education the way in which service offered is pro-
vided as a form of competitive-differentiation for those who provide educational
services (Cheng, Tsai, & Lin, 2013). Thus, it has become more critical that stu-
dents perceive differently the service provided for higher educations. (Tsinidou,
Gerogiannis, & Fitsilis, 2010) found that students of higher education have a higher
perception of service quality. Another study explained that services included in
higher education for students are inseparable, intangible, perishable, and hetero-
geneous (Biggs & Tang, 2011). Finally, this concept of quality service is directly
relevant to higher education.

On Jan. 2005, Germany apex court had changed the federal law of banning fees
and ordered universities to charge the fees for the first time (Kommers & Miller,
2012). Later on, in 2009/10 German university switched to another system (two-
cycle system) for higher education like bachelor and master in order to accomplish
Bologna objectives. This had been done for the purpose of providing quality
service to the external customers/students.

In Pakistan, for providing quality service Higher Education Commission struggles

to compete global level universities and monitor the quality service the universities
offer in order to retain better students and to attract new students. Thus, stu-
dents possibly became more demanding and selective because of meeting student’s
expectations by providing quality services (Smith, 2013). In some way, undergrad-
uate students probably have unrealistic expectations and if universities recognize
their expectations better, they could provide them the service of their choice and
meet their expectations.

In contrast, universities educate them about what the realistic expectations are
that they could expect from lectures. Universities get the knowledge of students’
expectations so they could be better managed in designing of the teaching program
(Hauer, Hansen, Hirsh, Ma, Ogur, & Teherani, 2012). A study found, generally
students’ expectations of service quality are course contents, teaching method,
teaching quality.

Another study investigated that the students’ perceived quality of educational ser-
vices is directly dependent on students’ values and expectations (Fabrice, 2010).
Literature Review 56

There are some other studies explaining the positive impact of values and expec-
tations for student participation (Pike, Kuh, & McCormick, 2011) and motivation
to take part in service encounter. Such work plainly recognized the significance of
understanding the values and expectations of students.

Khodayari and Khodayari, (2011) found that service quality is a multifaceted and
complicated concept and the single definition of service quality is lacking. Jem-
masi, Strong and Taylor, (2011) investigated that it is difficult to define accurately
and then measure service quality. Hence, all stakeholders in higher education,
such as professional bodies, students and government have their own understand-
ing of service quality. Moreover, literature focused on perceived service quality is
the comparison of students’ perception of actual performance and service expecta-
tions. The researcher explained the service quality that it is the difference between
perception of actual delivery and what the customers expect to receive from the
university O’Neill and Palmer (Gruber, Fub, Voss, & Glser-Zikuda, 2010). Chong
and Ahmed, (2012) defined that students perceived service quality is antecedent
to the satisfaction of students.

Moreover, good service quality may satisfy students and attract new students
by spreading positive word of mouth and attract them to take more and more
courses (Lemke, Clark, & Wilson, 2011; Yee, Yeung, & Edwin Cheng, 2010). A
study explored that there are three kinds of service expectations such as predicted
services, desired services, and adequate services (Shoeb, 2011). Customers want
to be provided a desired level of service quality. Furthermore, customers have a
minimum level of service quality as they think that services would not meet the
expectations. Among these services, there is a level of tolerance that customers
are willing to accept. Lastly, customers have their own mindset and want that
company would perform better.

Another study found that generally customer desired expectations is still ignored
(Schmitt, 2010). Customers/students take desired expectations as standards for
judgment of their satisfaction (Brown & Mazzarol, 2009). Additionally, customer’s
desired expectations are dependent on specific service stations than expectations
of another type. Hence, probing the nature of desired expectation would be the
Literature Review 57

significant contribution to the field of service quality in universities. A research

investigated the limit that the customer gets their objectives depends on behavior
of service employees. (Dado, Taborecka-Petrovicova, Riznic, & Rajic, 2011) classi-
fied higher education as a “pure service” and point to the significance of excellence
of personal contacts. The researcher discovered that the behavior of lecturers and
overall service quality have a positive impact on customer perception. A plethora
of studies found that service literature helps this assumption for instance, attitude
and behavior of customer contact employees; mostly determine the perception of
customers for service quality (Chong & Ahmed, 2012; Narteh, 2013). A research
investigated that interaction of human is compulsorily required to consider service
quality, satisfactory (Brown & Mazzarol, 2009). A study distinguished that the
characteristic of interpersonal interaction between external and internal customer
mostly affect satisfaction (Ting, 2011).

A study found that lecture quality has a positive impact on perceived service
quality (Traphagan, Kucsera, & Kishi, 2010). Another study elucidated that in
high quality education the most important thing is quality of lecture (Biggs &
Tang, 2011). A study found that teachers are the primary factor of service quality
in the universities (Tschannen-Moran & Johnson, 2011). Moreover the behaviors
of teachers are also included. If teachers recognize what students expect, they can
better change their attitude, according to the expectations of external customer
that will have a positive influence on their level of satisfaction and perceived service
quality.

The research found another instrument for measurement of service quality for
higher education sector and the instrument is higher education performance. In
the same way, researchers developed another instrument for measuring service
quality named perceived employee service performance (Lemke, Clark, & Wilson,
2011). A study insisted that there is a dire need to focus on service quality in all
academic faculties at university level.

There is awareness regarding the importance of teaching disciplines like tourism

and history and there is also the increase in demand for people having degrees in
these disciplines, yet we don’t have enough people due to the lack of governmental
Literature Review 58

funding. For service qualities to improve and enhance the companies have to
bring skilled people in front, and for that they might have to provide people with
good professional training on service quality (Hume & Mort, 2010). So, to meet
customer demands it is important that you pay close attention to the industry
trends. For educational sectors to improve it is important that they hire personnel
that are well experienced and well trained in their respective fields? According to
another study; it is important for the educational department to offer services like
good teaching skills, facilities, proper teaching environment, career counseling and
better administration for its service to improve (O’Dwyer & Atlı, 2014). Service
quality plays a vital role to enhance student abilities and their skills that are useful
for the industry (Abbasi, Siddiqi, & Azim, 2011).

Studies also reveal that it is important for universities to continuously check their
service quality and there should be a constant improvement in them in order to
compete with the extremely competitive world (Bel, Fageda, & Warner, 2010;
Fabrice, 2010). Because of this higher revenue will be generated for educational
organizations. According to another study, it is important for educational systems
to pay close attention and to focus on what their students have to say regarding
their experience with the institution (Abbasi, Siddiqi, & Azim, 2011). Thus,
knowing the determinants of service quality from students’ point of view is an
important aspect of service quality.

In present age, higher educational system is under immense pressure to look for
different and unique evaluation procedures to stay in the competition. Moreover,
the idea of give gaps which are present in the process of service providence. They
did this to enhance the service quality development. The main function of first
four gaps is the fifth gap i.e. the difference between expected service quality and
the perception of service quality delivered to the customers. (Bitner, Zeithaml,
& Gremler, 2010) used the fifth gap and defined service quality as the difference
between perception of the delivered service and customer expectations.

The service which has been offered and the way that particular service is been
offered defines the competitive differentiation especially for educational sectors
(Teixeira, Rocha, Biscaia, & Cardoso, 2012) and because of this students have
Literature Review 59

been very critical while examining the service provided by higher educational sys-
tem. Furthermore, after studying many researches they concluded that educational
sectors are more interested in student satisfaction along with their perception of
quality in Higher Education. One can define Higher Education as a service as it
has all the features of a service such as intangibility, inseparability; perish ability
and lastly heterogeneous (Bel, Fageda, & Warner, 2010). Hence, there is a direct
relationship between service quality and higher education.

H6: Internal Marketing and Service Quality have a significant positive

relationship.

2.8 Employee Motivation and Service Quality

Motivation of employees in an organization is an important consideration of man-

agers as well as researchers. Different facets of employee motivation have been
explored to date. Rewards play a key role in motivation program developed by
an organization. Basically needs and motivations are disabused many times in
literature. A number of motivation previous theories argue that the individuals
are motivated when their needs are fulfilled. This is why often motivation program
contains incentives, rewards and recognition etc. Previous literature provides great
evidence for the fact that employees exhibit positive behavior when they were mo-
tivated. Employee‘s satisfaction depends on the rewards they achieve from his
organization (Milne, 2007; Zaini & Nilufar, 2009). Zaini and Nilufar, (2009) found
that monetary rewards like pay, promotion or bonus are linked with job satisfac-
tion.

2.9 Employee Empowerment and Service

Quality

Employees are empowered by internal marketing and this provides them responsi-
bility and accountability. McDonald, (2011) explained that numerous companies
Literature Review 60

agree that for being responsive to consumer needs, the front line employees are
required to be empowered to deal with customer demands and meet their expec-
tations whiling solving their problems after experiencing the products. Hence, the
organization as empower their staff in order to build customer relationship and
the internal marketing helps in creating understanding, commitment, and greater
involvement.

2.10 Mediating Role of Job Satisfaction

Job satisfaction enables the company to retain their comparatively trained em-
ployees so that they provide high quality performance at the work place (Bavinck
et al., 2012). Job satisfaction has mediating effect on service quality. A study
investigated the mediating role of job satisfaction with the relationship between
the signs of commitment to performance and service quality (Erl, Puttini, & Mah-
mood, 2013). Another research explored that there are three significant indicators
of job satisfaction such as reward, training, and empowerment. Another study pro-
vided empirical results that job satisfaction is the mediator between service quality
and employees (Chuang, Judge, & Liaw, 2012). Continuing with the research pre-
dictions, rewards and empowerment leave an impact on performance and service
quality indirectly or directly via job satisfaction. Another research found that job
satisfaction has a partial mediating role between external and internal customers.
Overall rewards and empowerments are embedded with the employee’s job. Re-
cent researches gathered evidences of the struggle of rapport on external customer
loyalty and satisfaction (Hennig-Thurau, Gwinner, & Gremler, 2002). There is a
prediction of the mediating role of job satisfaction and service quality and between
loyalty and quality (Preacher & Hayes, 2008; Shrout & Bolger, 2002).

Consequently, it is getting obvious that there is an influence of internal customer

loyalty and satisfaction on performance and service quality. The mediating role of
job satisfaction explored why some studies have significant relationships between
internal marketing and service quality. Though, job satisfaction is not silent on ser-
vice quality and frequent interaction of internal and external customers. Moreover,
Literature Review 61

there are three different types of interactions between service providers and cus-
tomers such as, service, relationship, pseudo relationship, and service encounter. A
study exclusively discussed service quality, because Hennig-Thurau, Gwinner and
Gremler, (2002) argued that job satisfaction has a specific influence of internal
marketing. Additionally, in external customer satisfaction the service quality is
exclusively required in order to maintain the competitive edge. Another research
investigated that the mediating role of customer satisfaction in service quality,
behavioral intention, and relationship with the service quality model as internal
construct as well as formative construct. However, it was shown the limited sup-
port for the mediating role of the model and it is more significant to evaluate job
satisfaction with service quality. Considering the above literature, study proposes
that:

H7: Job Satisfaction significantly mediates the relationship between

Employee Motivation and Service Quality.

H8: Job Satisfaction mediates the relationship between Market Orien-

tation and Service Quality.

H9: Job Satisfaction significantly mediates the relationship between

Empowerment and Service Quality.

2.11 Model of the Study

The brief model of the study is shown in Fig. 2.1.

Literature Review 62

Independent Variables Dependent Variables

Internal Marketing
=
H6
H7
Employee
Motivation
H2
H1
H9
Empowerment

H3
Market
Orientation
Faculty’s H5 Faculty’s
H4 Mediator
 Customer Job Service
Orientation Satisfacti Quality
on
 Competitor
Orientation

 Organizational H8
Coordination

Figure 2.1: Model of the study.

2.12 Hypothesis

Based on extensive literature review following hypothesis are developed for study:

H1: Internal Marketing has significant impact on Job Satisfaction.

H2: Motivation has significant impact on Job Satisfaction.

H3: Empowerment has significant impact on Job Satisfaction.

H4: Market Orientation has significant impact on Job Satisfaction.

H4a: Customer Orientation has significant impact on Job Satisfaction.

H4b: Competitor Orientation has significant impact on Job Satisfaction.

H4c: Organizational Coordination has significant impact on Job Satisfaction.

H5: Job Satisfaction has a significant positive association with Service Quality.

H6: Internal Marketing and Service Quality have a significant positive relationship.
Literature Review 63

H7: Job Satisfaction significantly mediates the relationship between Employee

Motivation and Service Quality.

H8: Job Satisfaction mediates the relationship between Market Orientation and
Service Quality.

H9: Job Satisfaction significantly mediates the relationship between Empowerment

and Service Quality.
Chapter 3

Research Methodology

3.1 Research Design

The research design can be described as the strategy and the plan by which the
purpose of the study is to be planned and realized. It specifies the methods and
procedures that are used for data collection, measurement and analysis of the data
(Herbst & Coldwell, 2004). According to Schwartz, Hage, Bush, and Burns, (2006)
each research problem is unique. It is therefore critical that the research design
is well structured to ensure that the study is relevant to the problem as well as
economically viable. Because the concept of internal marketing is so new, it is
important to obtain reliable information that can be used successfully in decision
making.

3.2 Population and Sample

A population can also be described as finite or infinite. A finite population has

a limited or fixed number of individuals or objects while an infinite population
has an unlimited or non-fixed number of individuals or objects (Fraenkel, 2000).
The population for the study consists of all faculty members of Higher Education
Institutions/ Universities in Pakistan. Our sample consists of the faculty mem-
bers employed in higher education institutions or universities on permanent basis

64
Research Methodology 65

and have at least three years of experience. Sample is selected by using random
sampling and sample size is determined according to method proposed by (Krejcie
& Morgan, 1970; Cheng, Chen, Hsu, & Hu, 2012). Therefore, 372 questionnaires
were used for analysis. The data was collected by paying personal visits, mail
and/or emails, fax etc. The sample consisted of permanent faculty, having more
than 3 years’ experience in the field of teaching.

3.3 Research Instrument

The instrumentation for this study comprises the questions which are already
tested and some were modified from review of literature. Fraenkel, (2000) has rec-
ommended “selection of an already developed instrument when appropriate · · · is
preferred”. So a preliminary instrument consisting of demographic, dependent, in-
dependent and mediating variables was developed, and around seven eminent PhD
holder professors and researchers evaluated it; based on their expert opinion initial
questionnaire was reduced to 56 question items and 6 demographic questions, and
minor adjustments were made as far as wording and structure of questions was
concerned. Variables of research study were recorded on five point likert scale for
strongly agree (5) to strongly disagree (1).To measure the internal marketing, 06
items measurement used is adopted from Rafique and Ahmed (2000), employee
motivation is measured through 10 items adopted from Linder (1998), Empower-
ment items are adopted from (Gabrial et al., 2010) and 9 items were undertaken.
To measure Market orientation 5 items were adopted from (Gronoroos, 1985),
Organizational Coordination is measured by adopted by (Narver & Slater, 1990)
measured through 5 items, to measure Faculty Job Satisfaction by adopting from
(Spector, 1999) by 10 items. Faculty Service Quality is measured by adopting
(Cronin et al., 1992) scales and 13 items.
Research Methodology 66

3.4 Demographic Characteristic of Respondents

This study included a six item questionnaire to know the demographics of the re-
spondents. These question items were based on review of literature and opinion of
the experts in the field. These question items tried to know the details of respon-
dent, who were faculty members of various universities, regarding: Age, Gender,
Highest academic/research degree, Work experience, Designation, Familiarity with
IM concepts.

3.4.1 Gender of Respondents

Data showed that majority of the respondents are male, ratio of females pro-
fessional is comparatively lower than males. Of the sample size of 398, a lower
percentage of working women explains the difference in the gender-wise frequen-
cies. The percentage of working women is quite low as compared to the overall
percentage of males in the country.

3.4.2 Qualification of Respondents

The qualification of respondent’s range from masters to post doctorate.

Table 3.1: Demographic composition of respondents.

Factor Sample (n = 398)

University 37.3% public and 62.7% private
Designation 27.9% senior and 72.1% junior
Tenure 68.2% < 3 years, 16.9% 4-5 years, 14.9% > 5 years
Qualification 6% PhD, 48.5% MS, 45.5% (18 yr. Education)
Gender 61.2% male and 38.8% female
Marital Status 49.3% married and 50.7% single
Age 86.6% ≤ 45 years and 13.4% > 45 years
Research Methodology 67

3.5 Data Collection Method

Data was collected using survey forms distributed through emails, in university
events and direct interviews. Interview began as a tool primarily for psycholo-
gists and anthropologists, while sampling got its start in the field of agricultural
economics (Angus & Katona, 1953, p. 15).

Survey research does not belong to only a single discipline and it can be employed
by almost any discipline. According to Angus and Katona, “It is this capacity for
wide application and broad coverage which gives the survey technique its great
usefulness”.

Surveys are useful in describing the characteristics of a large population. No

other method of observation can provide this general capability. They can be
administered from remote locations using mail, email or telephone. Consequently,
very large samples are feasible, making the results statistically significant even
when analyzing multiple variables. Many questions can be asked about a given
topic giving considerable flexibility to the analysis. There is flexibility at the
creation phase in deciding how the questions will be administered: as face-to-
face interviews, by telephone, as group administered written or oral survey, or by
electronic means.

Along with all the benefits mentioned above, survey researcher is also not much
expensive. So keeping in view time and cost restraints, survey research is the best
method that aligns with the scope of this study.

3.5.1 Administration of Questionnaire

The purpose of a questionnaire is to collect and record primary research data.

A questionnaire needs to be well designed because it is very seldom possible to
repeat the survey if the researcher finds out afterwards that the questionnaire was
not complete, or that some important topic was omitted. Once a survey has been
completed, the data cannot be changed. According to Forza (2002) good question-
naires are those that meet research objectives, obtain valid and reliable data from
Research Methodology 68

respondents, facilitate data processing, achieve, and maintain the involvement of

respondents. The quality of the research results depends on the quality of the
questionnaire and the questions that have been asked (Boyce, 2002).

3.5.2 Handling of Received Questionnaire

In this research study a total of 400 questionnaires were distributed in selected

universities to faculty members. From the 400 distributed questionnaires, 398
were recovered. There were some incomplete questionnaires that were returned
back but not considered in the study. All the completely filled questionnaires were
coded and entered in to the SPSS order to measure the relationship of variables.

3.6 Research Type

Referring to the time horizon, this research is cross-sectional in nature. In cross-

sectional studies data collected from respondents only at a single time and use
them for more analysis.

3.7 Unit of Analysis

The unit of analysis basically shows the unit/level of the data to be collected. For
example, the unit of analysis in an investigation is person, group, organization or
whole culture. The unit analysis of this study will be individual faculty members
of institutes providing higher education.

3.8 Pre-testing of the Questionnaire (Pilot Study)

Pilot testing was conducted with youth aged 20-60 of Pakistan. Data collection was
personally administered from 50 respondents. After the pilot testing, necessary
changes were made to make the questionnaire more reliable.
Research Methodology 69

3.9 Sampling Design

Our sample consists of the faculty employed in higher education institutions or

universities on permanent basis and have at least three years of experience. Sample
was selected by using random sampling and sample size was determined according
to method proposed by Krejcie and Morgan (1970) and Cohen (1969).

The data was collected by paying personal visits, mail and/or emails, fax etc.
The sample consists of permanent faculty working in Higher education institutions
having more than 3 years of experience in the field of teaching. It was ensured that
lecturers, assistant professors, associate professors and professors have appropriate
participation in the survey.

3.10 Statistical Analysis

3.10.1 Diagnostic Testing

Before data analysis, pilot testing of 50 individuals was done. Confirmatory factor
analysis, i.e. CFA was applied on the data collected through pilot testing in order
to check validity of scales used. For reliability analysis, cronbachs’ alpha reliability
was checked.

3.10.2 Structural Equation Modeling

Structural equation modeling (SEM) is a second generation multivariate method

which is used to assess the reliability and validity of the model measures. Each sta-
tistical technique has certain characteristics that determine applicability to a given
problem. Second generation multivariate methods allow simultaneous analysis of
all the variables in the model instead of separately. In addition, measurement
error is not aggregated in a residual error term. Structural equation modeling
(SEM) has been applied to a variety of research problems. Within the family of
SEM techniques are many methodologies. Path analysis and confirmatory factor
analysis are special types of SEM techniques.
Research Methodology 70

3.11 Scales

As it is a relational study following instruments were used to measure the depen-

dent and independent variables of the study and also to find out the association
between these variables:
 Research Methodology
Variable Instrument Author No. of Items

Employee Motivation Shueh-Chin Ting. Noe and Schmitt. 01-08

Charles J. Hollon and Gary R. Gemmill. 09-12

Empowerment
Gabriel Gazzoli, Murat Hancer and Yumi Park. 13-17

MARKET ORIENTATIONS

(Customer Orientation, 18-23

Competitor Orientation, Webster, Robert L. Hammond and Kevin L. 24-28

Organizational Coordination) 20-32

Scarpello, V. and Vandenberg, R.

Job Satisfaction 33-42
Fauziah Noordin and Kamaruzaman Jusoff.

Service Quality J. Joseph Cronin. Steven A. Taylor. 43-55

71
Chapter 4

Data Analysis

4.1 Tests of Normality

Normality of the data is an essential feature for estimating the statistical model
and for accuracy of confidence intervals. For this purpose Quantile-Quantile graph
is reported in figure 4.1, 4.2, 4.3, 4.4, 4.5, 4.6 and 4.7. The results of these graphs
clearly indicate that data is exhibiting the normality. Q-Q plot is considered more
accurate method for determination of normality when the data set is large (Field,
2009).

This quantile-quantile plots shows whether the two data sets come from a nor-
mal distribution. As the data come along a straight line. Therefore, this figure
indicates that data sets comes from normal distribution. Respondent had mostly
similar views.

72
Data Analysis 73

Figure 4.1: Normal Q-Q Plot of Employee Motivation.

Data Analysis 74

Figure 4.2: Normal Q-Q plot of Empowerment.

This quantile-quantile plots shows whether the two data sets come from a nor-
mal distribution. As the data come along a straight line. Therefore, this figure
indicates that data sets comes from normal distribution. Respondent had mostly
similar views about.
Data Analysis 75

Figure 4.3: Normal Q-Q Plot of Customer Orientation.

This quantile-quantile plots shows whether the two data sets come from a nor-
mal distribution. As the data come along a straight line. Therefore, this figure
indicates that data sets comes from normal distribution. Respondent had mostly
similar views about.
Data Analysis 76

Figure 4.4: Normal Plot of competitor Orientation.

This quantile-quantile plots shows whether the two data sets comes from a normal
distribution. As the data is scattered and does not come along a straight line.
Therefore this figure indicates that data sets comes from different distribution.
Respondent had similar views.
Data Analysis 77

Figure 4.5: Normal Q-Q Plot of Organizational Coordination.

This quantile-quantile plots shows whether the two data sets come from a normal
distribution. As the data come along a straight line. Therefore this figure indicates
that data sets comes from normal distribution. Respondent had mostly similar
views about organizational coordination.
Data Analysis 78

Figure 4.6: Normal Q-Q Plot of Faculty Job Satisfaction.

This quantile-quantile plots shows whether the two data sets come from a nor-
mal distribution. As the data come along a straight line. Therefore, this figure
indicates that data sets comes from normal distribution. Respondent had mostly
similar views about their levels of job satisfaction.
Data Analysis 79

Figure 4.7: Normal Q-Q Plot of Faculty Service Quality.

This quantile-quantile plots shows whether the two data sets come from a nor-
mal distribution. As the data come along a straight line. Therefore, this figure
indicates that data sets comes from normal distribution. Respondent had mostly
similar views.

4.2 Statistical Tools

Following Statistical procedures were used for the study:

Firstly, demographic analysis were carried out to see whether male faculty mem-
bers are satisfied with job or female. By conducting demographic analysis it
becomes possible to comment on demographic attributes of sample.
Data Analysis 80

As a second step, descriptive statistics to elaborate the results of each individ-

ual variable. Correlation Matrixes are used to test the strength and direction of
relationship among variables of interest.

Thirdly, stepwise regression analysis will be done test the following equations of
our hypothetical research model:

1. FSQ = f ( Internal Marketing, Employee Motivation, Empowerment, Cus-

tomer orientation, Competitor orientation, and Organizational coordination)

2. FJS = f (Internal Marketing, Employee Motivation, Empowerment, Cus-

tomer orientation, Competitor orientation, and Organizational coordination)

3. FSQ = f (Faculty Job Satisfaction, Internal Marketing, Employee Moti-

vation, Empowerment, Customer orientation, Competitor orientation, and
Organizational coordination)

4.3 Internal Consistency and Reliability

Reliability refers to the fact that a question evokes the same set of responses each
time it is asked in similar circumstances. Reliability deals with accuracy and
it can be measured three ways namely test-retest, alternative forms and internal
consistency reliability (Ives, Olson, & Baroudi, 1983). Cronbach’s coefficient alpha
technique is used to measure the reliability. The coefficient alpha is a technique
of judging the internal consistency of the measuring instrument by averaging all
the possible ways of splitting test items and examining the degree of correlation.
The greater the correlation is to a score of one, the higher the internal consistency
reliability (Ives, Olson, & Baroudi, 1983). Cronbach’s Alpha of all the variables is
more than .8, which shows that data is reliable.
Data Analysis 81

Table 4.1: Reliability Analysis of Study Variables.

Variable Cronbach’s
Alpha
IM .875
MOT .878
EMP .887
MOC .858
MCP .877
MOG .814
SAT .843
SQT .914

4.4 Descriptive Statistics

A descriptive statistics analysis of all variables is conducted and total 398 responses
are analyzed for current study. The result of study represents the minimum,
maximum, mean value and standard deviation of the variables studied. The results
are as followings:

Table 4.2: Descriptive statistics.

Mean Std. Deviation

IM 3.436 .7691
MOT 3.3386 .77619
EMP 3.3261 .71798
MOC 3.4340 .94106
MCP 3.2246 .98055
MOG 3.3916 1.16304
SAT 3.3825 .80414
SQT 3.4860 .70840
Data Analysis 82

The mean results indicate that on average responded are on agreeable side with
deviation less than 1.

4.5 Correlation Analysis

Correlation analysis is applied to evaluate the relationship in between two vari-

ables. The analysis measures the association of variables or relationship between
variables. In simple words it can be defined that it measures strength of rela-
tionship between two variables. The correlation analysis represents the size and
direction of the association between two variables. If the results of analysis are
significant then it can be a positive relationship or negative relationship. The co-
efficient values of analysis ranges from -1.00 to 1.00. When the value of coefficient
is in positive range (more than zero and less than 1) then there will be positive
relationship, when it falls in negative range then there will be negative relationship
and if it is zero then the relation will be insignificant and no relationship exists.
The higher the value of coefficient is the stronger the relationship of variables will
be.
Table 4.3: Correlation Analysis.

MOT EMP MOC MCP MOG SAT SQT

MOT 1
EMP 776** 1
MOC .702** .699** 1
MCP .618** .677** .693** 1
MOG .656** .699** .656** .762** 1
SAT .774** .768** .689** .652** .704** 1
SQT .743** .784** .724** .637** .684** .817** 1
Note: significant; *p ≤ .05, **p ≤ .01, ***p ≤ .001
Data Analysis 83

4.6 Path Analysis

Measures of a good model fit are Root mean square error of approximation (RM-
SEA), Adjusted goodness of fit index (AGFI), Comparative fit index (CFI), Root
mean square residual (RMR) etc. The RMR indicates the average discrepancy
between the elements in the sample covariance matrix and the model generated
covariance matrix. RMR values range from 0 to 1, with smaller values Goodness-
of-fit statistics (GFI) shows the relative amount of covariance and variance jointly
elucidated by the model. This index scores in the range of 0.80-0.89 is considered
good by many researchers; scores of 0.90 or higher are considered as evidence of
good fit.

Figure 4.8: Internal Marketing and Faculty Service Quality with Mediation
of Faculty Job Satisfaction.
Data Analysis 84

Figure 4.9: Employee motivation, Empowerment, Market Orientation and

Faculty Service Quality with Mediation of Faculty Job Satisfaction.

Effect of independent variables on the Faculty Service Quality variable

Employee motivation (MOT)

• Direct = .10

• Indirect = .25*.40 = .10

Empowerment (EMP)

• Direct = .24

• Indirect = .31*.40 = .12

Customer Orientation (MOC)

• Direct = .18

• Indirect = .14*.40 = .056

Competitor Orientation (MCP)

• Direct = -.03

• Indirect = .03*.40 = .012

Data Analysis 85

Organizational Coordination (MOG)

• Direct = .07

• Indirect = .21*.40 = .084

Table 4.4: Effect of independent variables on the Faculty Service Quality
variable.

Variable Direct Effect Indirect Effect Total Effect

Employee Motivation .10 .25 .10
Empowerment .24 .31 .12
Customer Orientation .18 .14 .056
Competitor Orientation -.03 .03 .012
Organizational .07 .21 .084
Coordination

Causal path analysis was performed to investigate the direct and indirect impact of
Employee Motivation, Empowerment, Customer Orientation, Competitor Orien-
tation, Organizational Coordination, and Employee Satisfaction as mediator and
Faculty Service Quality. In the indirect effect, employee Motivation has more effect
on employee service quality with Job Satisfaction as a mediator. Job Satisfaction
has the largest overall effect on employee service quality.

Table 4.5: Model Fit Summary.

CMIN
Model NPAR CMIN DF P CMIN/DF
Default model 62 1462.689 271 .000 5.397
Saturated model 319 .000 0
Independence model 27 9748.782 315 .000 30.948
RMR, GFI
Model RMR GFI AGFI PGFI
Default model .057 .901 .871 .728
Saturated model .000 1.000
Independence model .219 .367 .325 .339
Data Analysis 86

Baseline Comparisons
Model NFI RFI IFI TLI CFI
Delta1 rho1 Delta2 rho2
Default model .857 .839 .879 .856 .879
Saturated model 1.000 1.000 1.000
Independence model .000 .000 .000 .000 .000
RMSEA
Model RMSEA LO 90 HI 90 PCLOSE
Default model .066 .064 .069 .000
Independence model .167 .166 .181 .000

Based on the above Tables, the existence of model fit was identified using the chi-
square value and the goodness of fit was assessed based on the GFI, RMR, RMSEA
values. In the structural model, if the chi-square has attained the minimum value
and its probability value is greater than 0.05, the model is said to be good and
satisfactory. The model fit statistics given prove that there is an excellent model
fit with GFI greater than 0.9. The result further show evidence that the constructs
form a good model as there is a satisfactory chi-square coefficient. Therefore no
further modifications was done and all the items from the construct were included
in the final instrument.
Data Analysis 87

4.7 Internal Marketing and Faculty Service

Quality with Mediation of Faculty Job
Satisfaction

Table 4.6: Mediate Analysis : Motivation FSQ.

Structural β Standard T Significance (p) Significant/

Path Error Value Insignificant

IM 0.852 .037 23.162 .0000 Significant

SAT

IM .316 .039 8.121 .0000 Significant

SQT

SAT .477 .035 13.752 .0000 Significant

SQT
Note: t > 2, *p < .05, **p < .01, ***p < .001

Table 4.7: Indirect, Direct and Total Effect.

Structural Direct Indirect Total Z Significance

Path Effect Effect Effect Value

SAT .758 .825 7.253 .0000

SQT

IM SAT .406

SQT
Number of bootstrap samples = 1000, Level of confidence = 95%
Data Analysis 88

4.8 Motivation and Faculty Service Quality With

Mediation of Faculty Job Satisfaction

Table 4.8: Mediate Analysis : Motivation FSQ.

Structural β Standard T Significance (p) Significant/

Path Error Value Insignificant

MOT .6529 .0364 17.9531 .0000 Significant

SQT

MOT .7185 .0425 16.83 .0000 Significant

SAT

SAT .4190 .0425 9.875 .0000 Significant

SQT

MOT SAT .3519 .0440 7.991 .0000 Significant

SQT
Note: t > 2, *p < .05, **p < .01, ***p < .001

Table 4.9: Indirect, Direct and Total Effect.

Structural Direct Indirect Total Z Significance

Path Effect Effect Effect Value

MOT .3519 .6529 8.4957 .0000

SQT

MOT SAT .3010

SQT
Number of bootstrap samples = 1000, Level of confidence = 95%
Data Analysis 89

4.9 Empowerment and Faculty Service Quality

With Mediation of Faculty Job Satisfaction

Table 4.10: Mediate Analysis: Empowerment & FSQ.

Structural β Standard T Significance (p) Significant/

Path Error Value Insignificant

EMP .7372 .0374 19.7333 .0000 Significant

SQT

EMP .8258 .0432 19.1054 .0000 Significant

SAT

SAT SQT .3703 .0447 8.2815 .0000 Significant

EMP SAT .4314 .0501 8.6160 .0000 Significant

SQT
Note: t > 2, *p < .05, **p < .01, ***p < .001

Table 4.11: Indirect, Direct and Total Effect.

Structural Direct Indirect Total Z Significance

Path Effect Effect Effect Value

EMP .4314 .7372 7.5896 .0000

SQt

EMP SAT .3058

SQT
Number of bootstrap samples = 1000, Level of confidence = 95%
Data Analysis 90

4.10 Market Customer Orientation and Faculty

Service Quality with Mediation of Faculty
Job Satisfaction

Table 4.12: Mediation Analysis : MCO & FSQ

Structural β Standard T Significance (p) Significant/

Path Error Value Insignificant

MOC .4382 .0350 12.5308 .0000 Significant

SQT

MOC .1932 .0321 6.0225 .0000 Significant

SAT

SAT SQT .5351 .0375 14.2663 .0000 Significant

MOC SAT .4382 .0350 12.5308 .0000 Significant

SQT
Note: t > 2, *p < .05, **p < .01, ***p < .001

Table 4.13: Indirect, Direct and Total Effect.

Structural Direct Indirect Total Z Significance

Path Effect Effect Effect Value

MOC SQT .1932 .4382 8.7280 .0000

MOC SAT .2499

SQT
Number of bootstrap samples = 1000, Level of confidence = 95%
Data Analysis 91

4.11 Competitor Orientation and Faculty

Service Quality With Mediation of Faculty
Job Satisfaction

Table 4.14: Mediation Analysis : COM & FSQ

Structural β Standard T Significance (p) Significant/

Path Error Value Insignificant

MCO .1462 .0310 4.7247 .0000 Significant

SQT

MCO .4170 .0404 10.3311 .0000 Significant

SAT

SAT SQT .5638 .0378 14.9352 .0000 Significant

MCO SAT .3813 .0350 10.8916 .0000 Significant

SQT
Note: t > 2, *p < .05, **p < .01, ***p < .001

Table 4.15: Indirect, Direct and Total Effect.

Structural Direct Indirect Total Z Significance

Path Effect Effect Effect Value

MCO SQT .1462 .3813 8.4836 .0000

MCO SAT .2351

SQT
Number of bootstrap samples = 1000, Level of confidence = 95%
Data Analysis 92

4.12 Organizational Coordination and Faculty

Service Quality With Mediation of Faculty
Job Satisfaction

Table 4.16: Mediation Analysis : OC & FSQ

Structural β Standard T Significance (p) Significant/

Path Error Value Insignificant

MOG .0945 .0260 3.6384 .0003 Significant

SQT

MOG .3320 .0347 9.5816 .0000 Significant

SAT

SAT SQT .5888 .0376 15.6654 .0000 Significant

MOG .2900 .0306 9.4911 .0000 Significant

SAT SQT
Note: t > 2, *p < .05, **p < .01, ***p < .001

Table 4.17: Indirect, Direct and Total Effect.

Structural Direct Indirect Total Z Significance

Path Effect Effect Effect Value

MOG SQT .0945 .2900 8.1618 .0000

MOG SQT .1955

SQT
Number of bootstrap samples = 1000, Level of confidence = 95%
Data Analysis 93

4.13 Results

Table 4.18: Part A: Independent & Dependent Variables.

IVs & DVs Faculty Job Satisfaction Facultys Service Quality

IM Positive and significant Positive and significant

Employee Motivation Positive and significant Positive and significant

Empowerment Positive and significant Positive and significant

Customer Orientation Positive and significant Positive and significant

Competitor Orientation Positive and significant Positive and significant

Organizational
Positive and significant Positive and significant
Coordination

Table 4.19: Part B: Role of Mediating Variable.

Mediating Role of Faculty’s

Expected Relation
Job Satisfaction

Between IM & Facultys

Positive
Service Quality

Between Motivation &

Positive
Facultys Service Quality

Between Empowerment &

Positive
Facultys Service Quality

Between Market Orientation

Positive
& Facultys Service Quality
Chapter 5

Discussions, Conclusion and

Recommendations

5.1 Internal Marketing and Job Satisfaction

The relationship between internal marketing and job satisfaction is positive and
significant as proved in this study and in addition, the relationship between these
two construct has been proved in plethora of studies (Hennig-Thurau, Gwinner &
Gremler, 2002). Mottaz, (1988) said that job satisfaction is likely to be increased
in response to the rewards they receive from their organizations. Performance de-
pends on promotion and pay; moreover, these both variables have strong impact
on employee motivate (Lepak & Snell, 2002). It is quite clear that the best perfor-
mance of employees cannot be achieved without a strong motivation. Chiu et al.,
(2002) reported that merit pay system offered by the organization to its employ-
ees provide a stronger motivation in employees. Many of organizations in previous
literature show a significant and positive relationship between rewards and moti-
vation. It is found that motivation program has always positive outcomes for an
organization.

94
Discussions, Conclusion and Recommendations 95

5.2 Motivation and Job Satisfaction

Motivation of employees in an organization is an important consideration of man-

agers as well as researchers. Different facets of employee motivation have been
explored to date. Rewards play a key role in motivation program developed by
an organization. Basically needs and motivations are disabused many times in
literature. A number of motivation previous theories argue that the individuals
are motivated when their needs are fulfilled. This is why often motivation program
contains incentives, rewards and recognition etc.

Previous literature provides great evidence for the fact that employees exhibit
positive behavior when they were motivated. Aziri, (2011) reported that job satis-
faction is what an employee feels about his job environment and his expectations
towards the job. Job satisfaction is all about an employee want from a job (Brief
& Weiss, 2002). Different types of rewards lead to different kinds of motivations
which in turn lead to different types of satisfaction (Luthans & Combs, 2006).
Employee‘s satisfaction depends on the rewards they achieve from his organiza-
tion (Milne, 2007; Zaini & Nilufar, 2009). Zaini and Nilufar, (2009) found that
monetary rewards like pay, promotion or bonus are linked with job satisfaction.

5.3 Empowerment and Job Satisfaction

Empowerment and Job satisfaction link is much studied and proved (Greco, Laschinger,
& Wong, 2006). Empowerment basically provides a degree of motivation to em-
ployees and in turn employees are likely to be satisfaction. For example, Conger
& Kanungo, (1988) reported that empowerment plays important role in motivat-
ing the employees which enhance self-efficacy and self-efficacy shape the different
employee attitudes. On the other hand, Kim, Lee, Murrmann, and George, (2011)
empowerment provides the employees with feelings of trustworthiness and in re-
sponse they show job satisfaction. In hospitality industry it is reported that the
empowerment affects job satisfaction in Taiwan hotel employee (Chiang & Jang,
Discussions, Conclusion and Recommendations 96

2008), U.S. hotel managers (Salazar, Pfaffenberg, & Salazar, 2006) and U.S. restau-
rant employees (Gazzoli, Hancer, & Park, 2010). These researchers challenge that
empowering the worker who directly deals with the customers is important be-
cause they actually can judge the customer’s feelings. This work also reported
that this relationship was stronger for the employees who directly deal with the
customers as compare to the employees who do not deals customers directly and
work at the back end operations.

Frontline employees are important part of an organization they have to deal in

different situations and different customers so they might be provided with some
degree of empowerment (Brownell, 1990). Finally, the employees are major con-
tributors in the service quality, they have to perform much different service en-
counters in their day to day activities (Chebat & Kollias, 2000). It is important
for the employees who have to deal with customer directly that they should feel a
sufficient power, because high empowerment leads to high job satisfaction.

5.4 Marketing Orientation and Job Satisfaction

Marketing orientation in faculty service quality has a crucial role as it relates to

ultimate role of job satisfaction in education sector. In current study, this rela-
tionship is positive and significant and our hypothesis is supported. The previous
studies shows that definitions of service is quality is considered more appropri-
ate (Wicks & Roethlein, 2009) then service quality definitions (Caruana, 2002) in
terms of relative superiority empirical studies have done between service quality
scale and service performance scale for analyzing service quality.

Organizational coordination is most important thing in making the way of satis-

faction in faculty service quality. Plethora of researches showed that there was a
positive and significant relationship between organizational coordination and job
satisfaction, in addition when this effect was checked in current study, it also shows
a positive and significant relationship, and so our hypothesis is proved. This study
followed an interdisciplinary move toward examination of the relationship between
Discussions, Conclusion and Recommendations 97

internal marketing and job satisfaction. Specifically, the concept of internal mar-
keting is based on field of marketing, however the concept of job satisfaction comes
from organizational studies.

Interdisciplinary research is the research which focuses on recognizing behavior of

people more comprehensively moreover it is mean to advance research in social
science discipline (Deshpande, 1999; Horton, 1984; Murray and Evers, 1989).

5.5 Job Satisfaction and Service Quality

The marketing orientation has the prime focus of marketers because the main
driving force behind this concept is customer. For organizational goal achievement,
it is necessary to have focused on the internal exchange between employees and
originations and most important thing is that needs of customers and employee
focus should be at the same priority. Both customers and employee satisfaction
will take the organization to the goal achievement. Thus, internal marketing is an
important part of marketing orientation (Gummesson, 1994).

Morgan, (2007) found that marketing oriented organizations follow internal mar-
keting at priority because for achievement of competitive advantage. The same
concept is focused in order to change the front line employees as an essential part
of product offerings. Chase, (1981) explained that two things are simultaneously
like consumption and production in service organization so that the direct con-
tact is increased between consumer and service provider. Thus, internal customer
relations get more important in providing better quality services.

5.6 Internal Marketing and Faculty Service

Quality

Customers evaluate the service quality of service organizations and service pro-
cesses on the basis of the level of quality they feel in the acts of frontline employees.
Discussions, Conclusion and Recommendations 98

Customers’ judge the quality on the predefined standards in other words expec-
tations of customer plays an important role in judging the service quality; hence,
a service failure occurs when it fails to meet customers’ expectations. In this sce-
nario an unclear picture is created because the expectations differ from customer
to customer at large scale. The basic principles that underlie the concept of service
quality indicate certain factors are it is more difficult for customers to evaluate
the quality of services than the quality of goods, Service quality is based on cus-
tomers’ perception of the outcome of the service and their evaluation of the process
by which the service was reformed and Service quality perceptions result from a
comparison of what the customer expected before the service and the perceived
level of service received (Kurtz & Clow, 1998). Internal marketing is the process
that makes marketers fulfills their promises. Organizational internal marketing
process is an activity through which organization make its employee feel like cus-
tomers (Kasper, Babbitt, Mlynarczyk, Brinton, & Rosenthal, 1999). Promises can
only be met when organization have a strong system of internal marketing. The
success of a service highly depends on the relationship between an organization
and its employees (Kasper, Babbitt, Mlynarczyk, Brinton, & Rosenthal, 1999).

Internal marketing hinges on the hypothesis that employee satisfaction contribute

in customer satisfaction, hence internal marketing leads to external marketing.
Organizations whose intention is to provide consistent high service quality must
enable all members of staff to follow customer orientation and marketing. Service
organizations have to be acquainted with that achieving aims and crafting change
is only be possible through employees. Service providers always required to re-
cruit, train, and to provide means to workers to deliver superior service. People
are expensive possessions to a company (Kasper, Babbitt, Mlynarczyk, Brinton,
& Rosenthal, 1999). Hence they should be fully prepared to offer the finest service
to external customers and internal customers as well. The workers who realize
their roles within the service organization are likely to generate a harmonious job
environment in consequences there are batter results an organization will obtain,
for example, less role ambiguity, less conflict, and more contented workers in the
Discussions, Conclusion and Recommendations 99

workplace. The accomplishment of services depends on the three marketing ac-

tivities. These marketing activities are to be carried out successfully and to be
aligned with each other. Each activity should be taken as a challenge and it is
deemed necessary to find strategies to implement it properly. Successful external
relationships will be repeated (Irons, 1997).

5.7 Job Satisfaction Mediates the Relationship

Between Employee Motivation and Service
Quality

The study shows that job satisfaction has mediating impact on service quality.
Another research found that the hypothesized relationship has partial impact on
service quality. Job satisfaction enables the company to retain their compara-
tively trained employees so that they provide high quality performance at the work
place. Job satisfaction has mediating affect service quality. A study investigated
the mediating role of job satisfaction with the relationship between the signs of
commitment to performance and service quality. Another research explored that
there are three significant indicators of job satisfaction such as reward, training,
and empowerment. A research on hotel industry provided an empirical result that
job satisfaction is the mediator between service quality and employees. Continu-
ing with the research predictions, rewards and empowerment leave an impact on
performance and service quality indirectly or directly via job satisfaction. Another
research found that job satisfaction has a partial mediating role between external
and internal customers. Overall rewards and empowerments are embedded with
the employee’s job. Recent researches gathered evidences of the struggle of rap-
port on external customer loyalty and satisfaction (Hennig-Thurau, Gwinner, &
Gremler, 2002). There is a prediction of the mediating role of job satisfaction and
service quality and between loyalty and quality (Preacher & Hayes, 2008; Shrout
& Bolger, 2002).
Discussions, Conclusion and Recommendations 100

Consequently, it is getting obvious that there is an influence of internal customer

loyalty and satisfaction on performance and service quality. The mediating role of
job satisfaction explored why some studies have significant relationships between
internal marketing and service quality? Though, job satisfaction is not silent
on service quality and frequent interaction of internal and external customers.
Moreover, there are three different types of interactions between service providers
and customers such as, service, relationship, pseudo relationship, and service en-
counter. A study exclusively discussed service quality, because Hennig-Thurau,
Gwinner, and Gremler, (2002) argued that job satisfaction has a specific influence
of internal marketing. Additionally, in external customer satisfaction the service
quality is exclusively required in order to maintain the competitive edge. Another
research investigated that the mediating role of customer satisfaction in service
quality, behavioral intention, and relationship with the service quality model as
internal construct as well as formative construct. However, it was shown the
limited support for the mediating role of the model and it is more significant to
evaluate job satisfaction with service quality.

5.8 Job Satisfaction Mediate the Relationship

Marketing Orientation and Service Quality

Present study has taken job satisfaction as mediator which is quite famous medi-
ating variable that leads to different productive employee variables see (Crede M.,
Chernyshenko, Stark, Dalal, & Bashshur, 2007; Liu, Lin, & Hu, 2013). An im-
portant study which guide the present study was Internal Marketing is defined as
the marketing activities by a service organization towards its frontline employees
by training and motivating them to work as team to deliver customer satisfaction
(Armstrong & Kotler, 2000). Caruana & Calleya, (1998) Successful marketing can
be accomplished by focusing on internal as well external both sides of marketing.
External marketing is for the people outside the company and potential or regular
customers of the company by buy it product or using it services, however internal
Discussions, Conclusion and Recommendations 101

marketing is all about the hiring, training, and motivating talented employees who
can better serve the customers Kotler, (2003).

The concept of internal marketing is linked with its neighboring concepts like
concepts such as job satisfaction and organizational commitment. Specifically,
internal marketing has a significant positive impact on job satisfaction. Internal
marketing also positively affect organizational commitment (Caruana & Calleya,
1998). Hence it can be argued that to research and understand the impact of
internal marketing on job satisfaction will good turn for bodies of higher education.

Research on internal marketing in a university setting is a very limited. Despite the

internal marketing is an important concern of marketing professions, HR managers,
and executives in general (Pitt, Berthon, & Watson, 1999). The internal marketing
is all about the good relations among employees and management (Lee & Chen,
2005). Previous literature shows that internal marketing is well studied in field
of management like life assurance (Ahmed & Rafiq, 1995), public sector (Ewing
& Caruana, 1999), manufacturer (Chen, Aryee, & Lee, 2005; Piercy, 1995) and
international airlines (Frost & Kumar, 2001). However to date, no research has
been conducted in university setting. Specifically, the deficient internal marketing
research in a university setting provides a complete field for experiments. Since the
universities are intend to train their student’s for real world (Comm & Mathaisel,
2003).

Motivation and reward are the two key reasons that affect the job satisfaction
of employees. In previous literature a significant relationship is found between
recognition, reward and job satisfaction (Ali & Ahmed, 2009). Providing the re-
wards on the basis of some good works is far better to enhance its importance.
Rewards have a direct link with the motivation and job satisfaction of the em-
ployees. Distinctions in rewards and recognition affect employee motivation as
well as job satisfaction positively (Ali & Ahmed, 2009). They define the job sat-
isfaction as to what extent an individual has a positive attitude towards his job,
either in general or towards a specific dimension. The role of job satisfaction has
also been examined by more than a few researchers (Lok & Crawford, 2001). It
is found most researched topics of human resource management and a numbers
Discussions, Conclusion and Recommendations 102

of studies were carried out to measure the job satisfaction of teachers, industrial
workers, bank officers, managers and administrators in a range of responsibilities
the world over (Sweeney, Hohenshil, & Fortune, 2002). The attitudinal basis of
satisfaction advocates that individual who is satisfied with a job will attempt to
stay with it and likely to quit a dissatisfying job (Spector, 1985). Job satisfaction
leads to many of behavioral outcomes of an employee, for example, turnover and
absenteeism (Elangovan, 2001).

Edwards, Roberts, Green, & Lutchmun, (2006) reported that rewards are directly
linked with Job satisfaction as well as motivation. Job satisfaction is predisposed
by motivation and rewards of employees (Spector, 1985). Amabile, Conti, Coon,
Lazenby, & Herron, (1996) reported that rewards affect motivation which in turn
affects job satisfaction. (Milkovich & Gerhart, (2011) claimed that all of moti-
vational theories involve individual needs and exchange. It makes logical that
employees motivation and satisfaction manipulated by rewards. Job satisfaction
in educational institutes of public and private sectors depends on the employee’s
motivation and rewards that an organization provides to them.

Crede et al., (2007) in connection with present study and guide the present study.
Job satisfaction defined as “the level to which an individual has a positive attitude
towards his job, either in general or towards a specific dimension” (Smith et al.,
1969). It is clearly defined by previous literature that job satisfaction is linked with
“monetary compensation” and also with “non-monetary compensation”, both the
compensations are important role playing in job satisfaction because monitory
compensation deals with “pay, promotion and bonus” however nonmonetary deals
with “motivation, encouragement, interaction” (Zaini & Nilufar, 2009). Job sat-
isfaction helps employees psychologically to provide quality in service (Spector,
1985; Milne, 2007) Job satisfaction affects service quality significantly positively
(Spector, 1985; Karatepe, Avci, & Arasli, 2004) internal service quality (Bai,
Brewer, Sammons, & Swerdlow, 2006). According to Schuler, Jackson, Jackofsky,
and Slocum , (1996) success of private and public educational institutes depends
on job satisfaction which in turn depends on monetary compensation and non-
monetary compensation. Reward plays an important role in achievement of job
Discussions, Conclusion and Recommendations 103

satisfaction in both public and private educational sectors (Zaini & Nilufar, 2009).

5.9 Job Satisfaction Mediate the Relationship

Between Employee Empowerment and
Service Quality

The concept of internal marketing was first given by Berry (1974). He suggested
that “effective internal marketing, which would contribute to effective market-
ing, would require financially rewarding personnel, management commitment sales
training and self-development revision of personnel transfer policies and a redefi-
nition of management terms of helping people to achieve through work”. Internal
marketing highly depends on internal communication between the worker and
management, this practice also enhances the internal customer satisfaction (Mor-
nay, 2010).

Berry, (1995) named employees as internal customers and he says happiness of in-
ternal customers about their jobs make them serve effectively the final customer.
Grönroos, (1981) claimed everyone in the organization is a customer. Rafiq and
Ahmed, (2000) recognize the constituents of internal marketing including employee
satisfaction and motivation, customer orientation, change management and strat-
egy implementation.

Kohli and Jaworski, (1990) elaborate that the processes required engendering
a market orientation as a “distinct form of sustainable competitive advantage”.
They state that market orientation consists of “the organization wide generation,
dissemination, and responsiveness to market intelligence”. Results of the current
study are in line with the results of the previous studies.

5.10 Suggestions for Future Research

Mediator and predictor variables of the study have revealed high illustrative power
in the development of faculty service quality, yet few other key variables have not
Discussions, Conclusion and Recommendations 104

been included in this study. Future researches relating to service quality could
include following among others:

• Employee’s service quality is also significantly influenced by employees’ per-

ception of organizational justice and which were not specifically included in
the model of this study. Future studies should focus on the inclusion of these
variables to have a more comprehensive understanding of the development
of service quality among higher education institutes.

• Longitudinal studies should be done to establish the causal relationship

among these variables with high degree of confidence.

5.11 Practical Implications

This study will help higher educational institutions discover the importance of job
satisfaction and internal marketing in the teaching field. It will help universities
understand the role of internal customers (employees) in the process of service
delivery and the importance of their satisfaction and how it directly affects the
quality of services. Also the study will enable universities to understand the im-
portance of incorporating internal marketing strategies along with HR strategies.
They will come to know which factors improve the performance of faculty and
how they can better utilize those factors. Study will lead them to the parameters
which lead to service quality through job satisfaction. These parameters being
Motivation, Empowerment and last but not the least, Internal marketing orien-
tation. Therefore, it is important because it will further increase the students’
satisfaction, in the private and public sector universities in Pakistan.

Another important aspect of internal marketing is employee empowerment. Uni-

versities should appreciate faculty members who come up with new and innovative
ideas in proper ways. Also they can empower with information and rewards as per
their performance in the institute. Also bestow them with the authority to make
Discussions, Conclusion and Recommendations 105

independent decisions. This will make faculty members more responsible and cus-
tomer focused. Which in turn will increase the level of service quality provided by
them.

Employees wish to remain in and are willing to exert effort on behalf of the organi-
zation because of the positive work experiences and benefits they derive from their
relationship with the organization. Thus, having established the positive influence
job satisfaction on service quality, it becomes important for organizations to find
out what they can do to maintain and enhance the satisfaction of these employees
as part of their internal marketing strategy.

5.12 Conclusion

This study contributes to the body of employee job satisfaction and service qual-
ity and how it can be developed with organizational level variables Internal Mar-
keting, Motivation, Empowerment, Market Orientation, Customer Orientation,
Competitor Orientation, Organizational Coordination, Job Satisfaction, and Ser-
vice Quality. This study based on employees of higher education institutions of
Pakistan, confirmed that all the variables were positively and significantly related
to the dependent variable (Service Quality).
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Questionnaire

S. No. Questions Sources

1MOT Within the budget of funds, the uni- The Effect of Internal Marketing on
versity administration considers my Organizational Commitment: Job In-
demands to improve or enrich equip- volvement and Job Satisfaction as Me-
ment. diators.
2 The university administration encour- Authors: Shueh-Chin Ting
ages my actions of innovation and ac-
cepts possible failure.
3 The university administration sup-
ports me in resolving work problems.
4 The university administration is ac-
tively concerned and understands the
difficulties of my work.
5 The university administration creates
this sense that I should do my best for
the school.
6 In general, I exert considerable effort Impact of Motivation to Learn and Job
for learning the knowledge and skills Attitudes on Organizational Learning
regarding the internal service quality. Culture in a Public Service Organiza-
tion of Pakistan.
7 In general, I try to learn as much as Authors: Muhammad Ehsan Ma-
I can from my job on how to improve lik and Rizwan Qaiser Danish
my internal service quality.
8 In general, I am always motivated to
learn the skills emphasized in internal
service quality.

135
Questionnaire 136

S. No. Questions Sources

9EMP In general, I have much say or influence “”A Comparison of female and male
on what goes on in my job situation. professors on participation in decision
making, job related tension, job in-
volvement, and job satisfaction.”
10 I can influence the decisions of univer- Authors: Charles J. Hollon and
sity administration/my immediate su- Gary R. Gemmill
perior regarding things about which I
am concerned.
11 My immediate superior/university ad-
ministration asks my opinion when a
problem comes up that involves my
work.
12 If I have a suggestion for improving or
changing part of my job situation in
some way, it is easy for me to get my
ideas across to my superior.
13 My opinion counts in group decision The Role and Effect of Job Satisfac-
making. tion and Empowerment On Customers
Perception of service Quality; A study
in the restaurants Industry.
14 I have freedom to determine how to do Authors: Gabriel Gazzoli, Murat
my job. Hancer and Yumi Park
15 I have a chance to use personal initia-
tive in my work.
16 I have an influence over what happens
in my work.
17 I decide on how to go about doing my
job.
18MOCUST Our objectives are driven by satisfac- Does a market orientation strategy ex-
tion of our students. ist toward business school student’s a
view from three levels of academic ad-
ministrators.
19 We measure satisfaction of our stu- Authors: Webster, Robert L.
dents systematically and frequently. Hammond, Kevin L
Questionnaire 137

S. No. Questions Sources

20 Our market strategies (such as recruit-
ing and retention) are driven by our
understanding of the possibilities for
creating value for our students.
21 We constantly monitor our level of
commitment and orientation to stu-
dents.
22 We give close attention to service of
students after enrollment.
23 Our strategy for competitive advan-
tage is based on our understanding of
our students needs.
24MOCOMPT Those responsible for recruiting stu-
dents regularly share information
within our business school/institution
concerning competitor’s strategies.
25 We respond rapidly to competitive ac-
tions that threaten us.
26 University administration regularly
discusses competitors’ strengths and
strategies.
27 We encourage other staff and faculty
outside of recruiting/administration to
meet with our prospective students
and their parents.
28 We target potential students where we
have, or can develop a competitive ad-
vantage.
29MOORG All levels of administration understand
how the entire institution can con-
tribute to creating value for students.
30 All of our departments are responsive
to and integrated in serving students.
31 Information on recruiting successes
and failures are communicated across
functions in the business school/insti-
tution.
Questionnaire 138

S. No. Questions Sources

32 We share information and coordinate
resource use with other units in the in-
stitution.
33JS My university administration listen me The Satisfaction with my supervisor
when I have something important to scale: its utility for research and prac-
say. tical application.
34 My university is fair in appraising my Authors: Scarpello, V., Vanden-
job performance. berg, R
35 My university understands the prob-
lems I might run into doing the job.
36 You are satisfied with the persons in Level of Job Satisfaction amongst
your work group. Malaysian Academic Staff.
37 You are satisfied with your supervisor. Authors: Fauziah Noordin and
Kamaruzaman Jusoff
38 You are satisfied with your job.
39 You are satisfied with this organiza-
tion, compared to most.
40 Considering your skills and the effort
you put into your work, you are satis-
fied with your pay.
41 You feel satisfied with the progress you
have made in this organization up to
now.
42 You feel satisfied with your chance for
getting ahead in this organization in
the future.
43SERQ We have up-to-date equipment & tech- Measuring Service Quality: A Reex-
nology. amination and Extension.
44 Our employees are well dressed and ap- Authors: J. Joseph Cronin and
pear neat. Steven A. Taylor
45 The appearance of the physical facil-
ities of our institutions is in keeping
with the type of service provided.
46 When our university promises to do
something by a certain time, they do
so.
Questionnaire 139

S. No. Questions Sources

47 When students have problems, our
university is sympathetic and reassur-
ing.
48 Our university is dependable.
49 Our faculty provides the services at the
time they promise to do so.
50 We keep our records accurately.
51 Students trust our faculty.
52 Students feel safe in their transactions
with our university.
53 We provide individual attention where
needed.
54 Our faculty is polite.
55 We have operating convenient hours to
all our students.