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Market segmentation, service quality, and overall satisfaction: self-organizing map and structural equation modeling methods

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  • Nai-Hua Chen
  • Stephen Huang
  • Shih-Tung Shu
  • Tung-Sheng Wang

Abstract

In a service-dominant paradigm, service is the core of society and industry. This study explores the hierarchical roles of core service, facilitating service, and supporting service that affect customer satisfaction in the service industry. Cable TV services in Taiwan are employed as an example, because their penetration rate in is over 70% with customer experience for over 20 years. In this study, customers are first segmented by the self-organizing map (SOM) technique and then service quality is measured with SERVPREF method. A proposed model, derived from the service marketing literature, is tested with structural equation modeling (SEM). Finally, moderating effects of customer segments on the proposed SEM model are examined. Results show the SOM technique is a valid method for market segmentation. Additionally, the moderating effect of market segments may impact the evaluation of core service quality (CSQ) and overall satisfaction. Furthermore, CSQ determines overall satisfaction for heavy users, whereas facilitating service quality greatly influences younger consumers’ satisfaction. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Nai-Hua Chen & Stephen Huang & Shih-Tung Shu & Tung-Sheng Wang, 2013. "Market segmentation, service quality, and overall satisfaction: self-organizing map and structural equation modeling methods," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 969-987, February.
    • Handle: RePEc:spr:qualqt:v:47:y:2013:i:2:p:969-987
    DOI: 10.1007/s11135-011-9577-z
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    References listed on IDEAS

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    1. Zhang, Jingyun & Beatty, Sharon E. & Walsh, Gianfranco, 2008. "Review and future directions of cross-cultural consumer services research," Journal of Business Research, Elsevier, vol. 61(3), pages 211-224, March.
    2. Warden, Clyde A. & Huang, Stephen Chi-Tsun & Liu, Tsung-Chi & Wu, Wann-Yih, 2008. "Global media, local metaphor: Television shopping and marketing-as-relationship in America, Japan, and Taiwan," Journal of Retailing, Elsevier, vol. 84(1), pages 119-129.
    3. Melody Y. Kiang & Ajith Kumar, 2001. "An Evaluation of Self-Organizing Map Networks as a Robust Alternative to Factor Analysis in Data Mining Applications," Information Systems Research, INFORMS, vol. 12(2), pages 177-194, June.
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    Cited by:

    1. Dong Lu & Ye Tian & Vincent Y. Liu & Yi Zhang, 2015. "The Performance of the Smart Cities in China—A Comparative Study by Means of Self-Organizing Maps and Social Networks Analysis," Sustainability, MDPI, vol. 7(6), pages 1-18, June.
    2. Magdalena Swart & Gerhard Roodt, 2015. "Market segmentation variables as moderators in the prediction of business tourist retention," Service Business, Springer;Pan-Pacific Business Association, vol. 9(3), pages 491-513, September.

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