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Chapter 1

The Problem

Introduction

Client satisfaction can be defined as an expectation of a client

(Mckinney et al, 2002). Qualities of service and customer satisfaction are

critical factors for success. Its perceived performance or expectation is

defined as a client’s belief related to performance. Client satisfaction is a

business philosophy which tends to the creation of value for customers,

anticipating and managing their expectations, and demonstrating ability

and responsibility to satisfy their needs. Public sector organizations are

not exempted from providing quality service and satisfying their

customers, even if they are not typically focused on competitive advantage

or profitability.

As observed, customers and businesses could be lost as a result of

customer dissatisfaction and poor quality services such as an organization

which do not focus on the demand quality, unsystematic service

development and lack of personnel training (Addise, 2014). The service

industry plays a great and important role in the economy of countries in

the world. In the 21st century, which is characterized by high competition

and business dynamism among others, providing quality service to

customers is considered as essential strategy for survival and

sustainable growth (Vijayakanth et al., 2014). In the global world,

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providing quality service is crucial for the accomplishment and

continuous existence.

All over the world, public service institutions have responsibility for

providing sufficient service to clients/citizens as per their request

(Benjamin, 2012). The public sector has responsibility and

accountability for delivering efficient and effective services to

communities and societies as a customer. Though public service

institutions, now days, have an ever-increasing demands to deliver best

services and improve efficiency relatively compared to previous times,

demands are changing in their quality requirements in government and

private sector.

Client satisfaction is top priority of the local government of Impasug-

ong. Even if citizens perceive government customer service performance

accurately, there’s still a gap between performance and expectations.

Citizen expectations are set by customer experience in the larger

marketplace. This research is relevant due to the number of negative cases

increasing involving service quality and customer satisfaction questioning

the efficacy of services policies as needing changes.

The researchers choose to assess the customer satisfaction on the

services rendered by the local government. The level of satisfaction is an

indication of accountability and quality. In this way, the researchers aim

to help improve the quality of service through a recommendation which

will be derived from the findings of the study. Therefore, the main goal of
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this article is to analyze the relationship between the main antecedents of

consumer satisfaction in the government office namely customer

expectation and perceived service quality and customer satisfaction.

Understanding how customer expectation and perceived service quality

both variables influence the formation of consumer satisfaction is of

crucial importance in entrepreneurial management.

Theoretical Framework of the Study

This study is anchored in the expectancy theory, which is one of the

bases of this study, motivation is most likely when there is a perceived and

usable relationship between performance and outcome, with the outcome

viewed as a means of satisfying needs. On the other hand, there must be

a connection between certain rewards and what must be done to obtain

them (Sarande, 2022). This theory is essential in the context of this study.

The theory is useful, especially when designing service performance-based

pay in the government. The reason for this is that the government must

design performance-based pay based on how employees treat their

customers in order to ensure that both employees and organizations

continue to improve their effectiveness for customers’ satisfaction.

This is also grounded in Goal-setting Theory (GST) according to Locke

can be a significant source of motivation and thus satisfaction. Specific

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goals (in the form of intentions) will result in improved performance. He

claims that if complex and difficult goals are accepted, they result in higher

performance than simple goals. In addition, he believes that feedback

triggers performance more than no feedback. As a result, hard goals must

be set rather than generalized and simple goals in order to motivate and

satisfy (Polinar, 2022).

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Independent Dependent
Variable Variable
Demographic Level
Nd of Satisfaction Intervention
Profile:
En 1. Tangibles
1. Age; 2. Reliability
2. Sex; 3. Responsiveness
3. Educational 4. Assurance
Background 5. Empathy

Figure 1. Schematic Diagram of the study

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The schematic diagram are the involved variables of the study. Each

boxes is connected through an arrow to emphasize the causal relationship

of the variables with each other. The independent variable is the

demographic profile of the respondents such as their age, sex, and

educational background. The researchers wanted to know whether their

demographic can affect their satisfaction which is the dependent variable

of the study. Level of satisfaction of the respondents can vary based on

their profile. Through the determination of the causal relationship of both

variables, an intervention to fill in the gap can be derived.

Statement of the Problem

The conduct of the study will determine the Level of Satisfaction on

the Services Offered by the Public Employees in one of the Municipality of

Bukidnon through the following questions:

1. What is the demographic profile of the respondents?

1.1. Age

1.2. Sex

1.3. Educational Background

2. What is the level of satisfaction on the services offered by the public

employees in terms of:

2.1. Tangibles;

2.2. Reliability
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2.3. Responsiveness

2.4. Assurance

2.5. Empathy

3. Is there a significant difference to the level of satisfaction of the

respondents to their profile?

Significance of the Study

This study will benefit the following:

Residents. They will directly benefit the study because through the

intervention to be recommended, the services will be enhanced providing

them a better quality service to be rendered by the employees. This study

will be beneficial to them in the sense that their satisfaction will matter

regardless of the assistance they require.

Local Government Employees. This study will help them in

improving their quality of services and serve the people with utmost

dedication and commitment.

Local agencies. Impasugong has numerous local agencies that serve

the public in various capacities. This study will assist local agencies in

evaluating the character and performance of their employees and

developing ideas to help their agency become far more impactful.

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Delimitation of the Study

This study will be limited to the customers who received the services

from the local agencies of a municipality in Bukidnon. Particularly at the

Municipal Office. This will be done for the school year 2022-2023.

Definition of Terms

Clients. People who buy or ask products or services from a company or

office for their welfare.

Customer Satisfaction. Customer satisfaction is defined as a measurement

that determines how happy customers are with a company’s products,

services, and capabilities. Customer satisfaction information, including

surveys and ratings, can help a company determine how to best improve

or changes its products and services.

Municipal Office. The Municipal office is where people can seek assistance.

Public. Any person, except a federal, state, or local agency member, agent,

officer, or employee acting within the scope of his or her membership,

agency, office, or employment

Public Servants. Public servants serve both the government and the people.

They report to the elected government rather than a political party.

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Public Service. Public service is any service that is intended to address the

specific needs of a community's members as a whole. People within a

government jurisdiction can obtain public services either directly from

public sector agencies or through public financing of private businesses or

voluntary organizations.
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Chapter 2

Review of Related Literature and Studies

This chapter presents the review of related literature and studies

that play an important role in determining outcomes of the rationale of the

study.

Quality of Service

Service quality is a very vital component in any commercial related

activity and the consumer’s overall impression of the relative inferiority or

superiority of the organization and its services (Disaster, 2015). On the

other hand, Al Khattab (2011) stated that in the recent competitive

environment, managers of the hotels should improve their services

compared with their competitors. He believes this will not be achieved

unless they fully appreciate their customer’s needs and try to meet these

needs. In addition, service quality is an approach to manage a business

processes in order to ensure full satisfaction of the customers which will

help to increase competitiveness and effectiveness of the bank and

insurance institutions (Rahaman et al., 2011).

In addition, Disaster (2015) found that the customer’s perception of

service quality depends on the range of gap distance between the customer

expects before receive a service and what he or she actually perceive after
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see and use the service by their own. Thus, service quality is in fact defined

as the gap between customers’ expectation of service and their perception

of the service experience. On the other hand, service quality is intangible,

it is defined in terms of attitudes, interactions, and perceptions. As a

result, service quality is determined by what a customer perceives rather

than what a provider provides. Organizations all over the world strive to

produce high-quality products and services in order to generate highly

satisfied and loyal customers (Goni, n.d).

Additionally, Mellet-Parast, GolMohammadi, McFadden, and Miller

(2015) investigated the relationship between service quality and

profitability in the US domestic airline industry and found that

mishandled baggage and customer's complaints more negatively affects

the profitability of focused than a non-focused airline. On the other hand,

Goni (n.d) investigated the relationship between customer perception of

service quality and Banks financial performance in the new context of the

automated service quality proposed a mediated model linking quality

service to Banks financial performance through customer satisfaction in

the context of the new automated retail banking. The result revealed that

customer satisfaction was confirmed as a mediator in the relationship

between automated service quality and financial performance. Moreover,

Goyit (2015) examined the relationship between bank investments in

service quality programs and financial performance, as well as the

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relationship between service quality delivery and bank customer choice

and repeat purchase decisions.

Further, customer satisfaction and service quality are essential

parts in any organization's external relations system, as they determine its

competitiveness today. Because of the desire to manage customer

relationships, organizations are beginning to pay attention to the

development and implementation of service standards. Reviewing

customer service standards as part of the organization's corporate culture

allows for more effective approaches to its development and

implementation (Archakova, 2013).However, customer service is an

essential component of any bank or insurance company, and it determines

the future success of the organization. Rapid advancements in internet-

based technology are causing fundamental shifts in the way businesses

interact. This is also true of a company's customer relationship (Qadeer,

2013).

Furthermore, Nunkoo et al. (2019) stated that there is moderating

effect on the relationship between the service quality and the customer

satisfaction. Empirical evidence suggests that customers’ opinions about

the service quality and their customer satisfaction differ across office

grading category (Fuentes, 2016).On the other hand, He further stated that

through proper planning and constant monitoring firms can develop

effective strategies to improve quality levels and to retain their existing

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customers and maintain customers satisfaction (Qadeer,2013).In

addition, for retaining existing customers and attracting new ones,

accommodation providers generally improve their service quality and, as a

result, customer satisfaction (Nunkoo, Teeroovengadum, Ringle, &

Sunnassee, 2019).

More, the literature on marketing management emphasizes the

importance of service quality. Service quality is typically defined as the

customer's perception of the relative inferiority / superiority of a service

provider and its services, and is frequently equated with the customer's

overall attitude toward the organization (Siddiqui & Sharma, 2010). In

addition, customer service quality as the subjective comparison that

customers make between the qualities of service that they want to receive

and what they actually get proposing four characteristic of service quality

as intangibility, inseparability, variability and perishability. Moreover,

Awuah (2018) which indicated that high quality of service is the overall

customer’s perception of the organization's adequate services related to

tangibility, reliability, responsiveness, assurance and empathy.

Furthermore, it has been verified that customer satisfaction is positively

related to service quality, which means better service quality leads to

higher customer satisfaction (Owusu, 2017).

Customer expectation
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In the absence of any information ,prior expectation of service will

be completely diffuse .In reality ,however, customer have many source

of information that lead to expectation about upcoming service

encounters with a particular company. These source include prior

exposure to the service ,word of mouth ,expert opinion ,publicity, and

communication controlled by the company (e.g., advertising ,personal

selling ,and price ) , as well as prior exposure to competitive services

(Zeithaml ,Berry, and Parasuraman, 2014). In the pre purchase stage

,expectation influence consumer decisions on which brand or type of

product or service to buy .During consumption can be effected can be the

attitude of service personnel ,other customer and equipment .

In the post purchase stage, expectation from the basis of evaluations

of satisfaction (Oliver, 2011). A review of the literature suggest that

consumers may use multiple types of expectation in their satisfaction

evaluation process (Tse &Wilton,2016). However, the types most often

referred to are predictive expectation and normative expectation. Predictive

expectation are generally define as consumer beliefs about the level of

service that a specific service firm would be likely to offer. these

expectations are frequently used as standard of service against which

satisfaction judgment are made (Churchill &

Surprenant,2011).Normative expectation are generally conceptualized as

consumers ideals level of service which can be referred as desires too.

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Customer Satisfaction

Quality and customer satisfaction have long been recognized as

significant elements in achieving and maintaining success in today's

competitive market. There is substantial evidence in the literature that

supports the relationship between a company's performance and the level

of satisfaction reported by customers and customer satisfaction reduces

the likelihood of defection and/or is positively related with retention. As a

result, it is argued that customer satisfaction should be the ultimate goal

for all banks and insurance company (Qadeer, 2013). On the other hand,

satisfaction is characterized as a person's feeling of happiness or

disappointment as a result of a comparison between his impression of a

product's performance (or results) and its expectations. Customer

dissatisfaction or satisfaction is the customer's reaction to the evaluation

of the perceived incompatibility between previous expectations and the

actual performance of the product as perceived by the wearer (Kencana,

2019).

In addition, the decline in customer loyalty has made service quality

and customer satisfaction management critical factors for financial

institutions. To maintain or improve their competitive advantage, life

insurance providers must reconfigure their strategy and business. To do

so, they must first consider how to create a satisfied customer base that

will not be eroded even in the face of fierce competition (Siddiqui &
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Sharma, 2010). On the other hand, service quality is especially important

in the context of insurance services because it provides a high level of

customer satisfaction, and thus it becomes a key to competitive advantage

(Beyene, 2019).

Additionally, customer Satisfaction defines a customer as an

organization's most important stakeholder who provides payment in

exchange for product offerings provided to him/her by the organization

with the goal of satisfying a need and ultimately maximizing satisfaction

of the same (Beyene, 2019). In addition, Westbrook and Reilly (2019)

suggested that customer satisfaction is an emotional response to the

experiences provided by and associated with particular product purchased

or services provided. Moreover, the provision of high-quality service will

increase customer satisfaction and loyalty. Insurance companies that

excel at quality service can gain a distinct marketing advantage because

higher levels of service quality are associated with higher revenues,

increased cross-sell ratios, higher customer retention, and expanded

market shares (Rao, Mohana, Lakew., & Berhanu, 2011).

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Chapter 3

Research Methodology

This chapter presents the methods which will be used in data

gathering. This section includes the research design, research locale,

subject of the study, sampling technique, and data gathering procedure,

research instrument scoring procedure, and statistical treatment of data.

The researcher will use the quantitative-descriptive design.

Research Design

This study will use a quantitative method using descriptive

research design since it aims to describe the relationship of the

demographic profile of the clients of the local government with their

satisfaction then a survey questionnaire will be employed to get data or

information from the respondents.

Research Locale

The locale of the study is in Bukidnon. This municipality is officially

a first-class municipality in the Philippine province of Bukidnon. It has a

population of 53,863 people, according to the 2020 census. It is

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approximately 75 kilometers (47 miles) from Cagayan de Oro City, a good

112-hour drive, and half an hour from Malaybalay City, the province's

capital. It has 13 barangays and is characterized by mountains, deep

canyons, and gorges.

Participants of the Study

The respondents of this study will be the residents of a municipality

in Bukidnon that was given a public service from the Municipal Office.

According to the office’s human resource department, there is an

estimation of four hundred (400) people that went to the Municipal Office

from the first week of September up until the second week of October. Out

of 400 total number of people that experienced public service. The sample

population will be determined through the Raosoft sample size calculator.

There will be 197 respondents that will answer the survey. It is derived by

having a 5% margin of error to come up with a more logical conclusion and

recommendation.

Table 1. Respondents of the Study

Participants Total No. Target Sample

Residents that received 400 197

service

Total 400 197

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Data gathering Procedure

The researchers will hand in a letter of permission to the local

government municipal office to formalize the request of gathering data

within its constituents. While the respondents will be selected through

the purposive random sampling. Prior to answering the questionnaire, the

researchers will hand in a letter of consent to the respondents. The

researcher will use ethical principles and standards that should underlie

any research endeavor. The researchers will follow the principle of

voluntary participation, the principle of informed consent, the principle of

risk or harm, the principle of privacy, the principle of equality of services,

the principle of no deception, and the principle of knowledge of the

outcome.

Research Instrument

The researchers will use an adopted questionnaire from the local

government’s Human Resource Department. The Raosoft sample size

calculator will be utilized to get the sample size of 197 out of 400 overall

population. The respondents are selected through the Purposive Random

Sampling which, respondents are chosen for a reason such as the ones

who had received service from the employees.

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Statistical Treatment of data

The following statistical tools were employed to arrive at a logical

interpretation:

To answer problem number 1, T-Test and ANOVA will be used. The

researcher will analyze the data and group common response of the focus

group participants. The answers will be grouped by categories.

The mean and the standard deviation will be used to answer problem

number 2, which determines the level of satisfaction on the rendered

services of the employees of the municipal office.

Problem number 3 treated qualitatively.

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