Linking the hierarchical service quality model to customer satisfaction and loyalty

Purpose – The purpose of this paper is to reassess the properties of the hierarchical service quality model (HSQM) – a previously introduced service quality assessment tool. The HSQM views service quality as a three‐tiered concept with interaction quality, outcome quality, and physical environment quality as initial sub‐dimensions. The study aims to apply HSQM to two new service contexts and to further investigate the relationship between service quality, as measured by this instrument, and satisfaction and customer loyalty. To this end, five hypotheses are to be submitted to empirical tests. Design/methodology/approach – The data for empirically re‐assessing the scale's properties and for testing the proposed hypotheses were collected from convenience samples of 250 customers of hairdresser/barber services and 300 customers of local phone service subscribers. The measurement model of the HSQM was re‐assessed using confirmatory factor analysis. The hypotheses were tested using structural equation modeling. Findings – The results confirm the HSQM as predictor of satisfaction and loyalty. However, the results suggest that the significance of various service quality dimensions differs depending on the type of service. Practical implications – From a managerial perspective, the HSQM is useful for assessing service quality at various levels. It allows firms to recognize problems in their delivered interaction quality, outcome quality, or the physical service environment. Originality/value – The paper provides further evidence for the validity and reliability of the HSQM service quality measure.