Measuring service quality based on consumers’ evaluation of services in competitive markets

Previous research recommends using measurement models of service quality such as SERVQUAL and SERVPERF. However, these models may be insufficient for measuring service quality in competitive markets, as they do not account for comparisons between competitive services. This paper proposes a new model for measuring service quality based on two comparison processes that consumers use: internal and longitudinal comparison versus external and cross-sectional comparison. The former involves comparing the experienced quality to the expected quality of a focal firm, while the latter involves comparing the experienced quality of the focal firm and that of other firms. This paper shows that internal and longitudinal comparison significantly influences customer satisfaction through external and cross-sectional comparison. It also highlights the advantages of the new model and advocates for its use in competitive markets. By comparing these dual comparison processes, the proposed model offers a more comprehensive and nuanced understanding of service quality assessment in competitive market environments.