1. Introduction
Recently, service industry gains a lot of attention. From manufacturing industries, such as automobile and electronics, to many other industry fields, such as IT, distribution, and energy show high level of interest in service. It implies that industries have found presenting high-quality products as well as providing high level of service is essential to compete globally across the world.
The business paradigm of today focuses on the core competency of the corporation based on low cost and high efficiency, working on non-core features such as distribution, legal advice, Facility Operation Management, and IT etc. via Business Process Outsourcing (BPO). However, the methods to evaluate corporations providing service are still ‘evolving’ despite the daily growing size of service under the business environment; this evolution has been achieved through service evaluations, and played a role to enhance the variety of time, space, and human service provision and to increase the environmental goodness of fit for diverse services (Lee et al., 2016). Related to this, there have been many studies in regard to service quality. Parasuraman, Zeithaml, and Berry (1985, 1988, 1993, 1994) proposed the model SERVQUAL, and there have been many related researches, such as KS-SQI proposed by Korean Standard Associations and Seoul National University in Korea, but has showed limitations in its usefulness, applicability, and so on.
Lee et al.(2015) proposed a conceptual research on Open Source Software service evaluation model for IT industry based on BSEM (Behaviour Structure Evaluation Evolution Model), and the applicability of BSEM model in terms of open source software service was confirmed in Lee et al. (2016)’s study by actually applying BSEM model and assessing the level of service of the corporation providing open source software. Through this process, this study reviewed the fitness of the evaluation model in the perspective of stakeholders (user, assessee, assessor) on the initially developed and proposed open software service organization evaluation model and enhanced the effectiveness by applying extracted things to supplement on the service level evaluation model.
This study aimed to propose a universally applicable evaluation model in regard to the general service by developing and generalizing BSEM. Also, this study focused on proposing theoretical review on the existing service evaluation model and a service evaluation model (evaluation system, evaluation index) appropriate to domestic service organizations. To make the conceptual service evaluation model concrete, this study aimed to propose Retail Service Evaluation applied to the retail service field as an evaluation model case.
The evaluation model proposed by this study allows a service corporation to maintain the high level of the service quality by enabling the corporation to examine its own service level and to seek ways to provide customers better service. The suppliers are able to secure the objectivity of the evaluation results as they utilize it as the standard of the evaluation on open source software organization when establishing open software-based information business.
2. Literature Reviews
Requests on the quality index of service quality level have continued as requests on the management of service quality through objective evaluation increases.
However, service quality is very hard to measure objectively for the reason of the service quality characteristics itself like intangibility, heterogeneity and inseparability(Yoo & Song, 2006).
Gronroos(1984) set up the concept of perceived service quality and researches has been initiated by measuring service quality on consumer’s perspectives. Gronroos separated service quality as Technical Quality and Functional Quality also argued Perceived Service Quality is consumer’s subjective feelings based on two perceived feeling.
Studies on service quality have been applied to overall industries by SERVQUAL model of Parasuraman et al.(1985, 1988, 1991, 1993, 1994). SERVQUAL model consists of 10 standards of service quality evaluation integrated into 5 categories, which are tangibles, reliability, responsiveness, assurance, and empathy, suggesting the service quality is determined by the underlying concept of “achievementexpectation”(Parasuraman et al., 1994). But criticisms on the SERVQUAL model have pointed out this model might not be appropriate as a model covering the limitations of the perceived service in regard to achievement-expectation and differences among types of industries. For this, Cronin & Taylor(1992) proposed SERVPERF, a service quality measurement tool based on achievement, and Llosa et al. (1998) proposed SERVQUAL with adjusting the measurement variable(Kim, 2015).
In Korea, studies on measuring service quality have been conducted; for example, the studies majorly include KS-SQI(2000) co-developed by KSA and SNU, NCSI developed by KPC based on ACSI, and KCSI which was individually conducted and developed by KMAC. Each service quality evaluation model presents differences in detailed areas, such as evaluation framework, research methods of data, methods to evaluate service, but promotes the enhancement of competitiveness in service through service quality evaluation on the basis of the concept of customers’ “expectation-achievement”. The characteristics of the three service quality measurement models were as follows:
Yet, organizations and customers may be possibly confused due to differences presented by the evaluations since evaluations basically take place based on the concept of expectation-achievement with such evaluation model and thus show differences even on the same types of industries and the same organizations. Therefore, some are critical about the evaluation model in terms of its usefulness(Cho & Kim, 2008).
[Table 1] Characteristics of KS-SQI, NCSI, KCSI
3. Data and Methodology
3.1. Service Evaluation Model Concept
The service evaluation model suggested by this research is universal evaluation tool covers whole service industries of service providers. The service evaluation model can evaluate precisely structured by Activity and Object. Service has various definitions from previous researches; however, in this research we define service as below.
“Service is activities that modifies substances of objects for creating values for customer"
The evaluation model proposed by this study is called “OBJECT ACTIVITY-SERVICE EVALUATION MODEL (“OA-SEM”)”, and it is composed of “Object” category including everything needed to attain the goals of service and of “Activity” category including collectively all kinds of service-providing activities modifying status of objects for value add. To evaluate services of service organizations, the maturity of service is composed to be evaluated in terms of the integration of Activity and Object categories, as shown in [Figure 1]. The standards for evaluation are made detailed as Object category is classified in terms of Function while Activity category is classified in terms of Activity Process.
[Figure 1] Service Evaluation Concept Model
Source: Lee et al. (2015)
Service Evaluation Model is structured in the way of score calculation to set the level of the organization through the evaluation data model and evaluation itself. Via the proposed evaluation index, it is possible to evaluate the service activity level of the organization engaging in more than one service activities related to more than one object. The detailed model is presented in [Figure 2].
[Figure 2] Service Evaluation Framework
• Activity: service-providing activities, based on time
• Object: everything necessary to attain the goals of service, based on the space
• Evaluation: the evaluation item for assessing activity and object
3.2. Example of Service Evaluation Model Application: the application of Retail Industry
To examine the universality and applicability of Service Evaluation Model, this study applied the model to retail industry. The model is structured in the way of score calculation to set the level of the organization through Service Evaluation Model and evaluation. First, the model is divided into Design, Sourcing & Procurement, Inventory management & distribution, Store operation, Marketing, Sales, Fulfillment, and Support in the dimension of Activity on the basis of Retail Value Chain suggested by Hagel et al. (2015) at Deloitte Consulting as shown [Table 2]. In the dimension of Object, the model is divided into Wholesale trade and commission trade, Retail trade and Sale of Motor Vehicles and Parts on the basis of Korea Standard Industrial Classification(KSIC)’s Wholesale and retail trade section presented in [Table 3].
[Table 2] The retail industry value chain
Source: Hagel et al. (2015)
[Table 3] Wholesale and Retail trade industry framework
Such Retail Service Evaluation Model can be evaluated on each evaluation item as shown in [Table 4]; for instance, the results assessed with the evaluation item called Procurement Activity at Department Store may receive “C Score”. The detailed explanations are presented in [Figure 3] below.
[Figure 3] Retail Service Evaluation Process Concept
[Table 4] Retail industry service level evaluation index
Source: Lee et al. (2015)
4. Result and Conclusion
In order to develop Service Evaluation Model, minimum quality of service elements should be standardized. We conducted several surveys and expert workshops for deriving common service activities of open source software companies and based on common service activities we made evaluation standards for measuring qualitative level. Certain level of superior authority was to grant a rating.
The result of this study suggest that evaluating model can provide evaluation result by various consumer’s view point. Service company can notice the difference between self interpretation and customer’s evaluation factor, then can be corrected self interpretation of open source software service level. Also, Some fields on the future policies and promote the activity of the basic data should establish a policy that can be provided.
In conclusion, this study provides evaluation model which can be evaluated for customer and service provider, so service company can set up self check service levels, based on this they can look for ways to provide a better services to customers. Service users can ensure the objectivity of business plan based upon Service Evaluation Model. For policy makers, service evaluation framework can be used as the cornerstone of future reasonable policy development.
Based on this study, the future of service company to systematically assess and monitor the activities carried out. Consumers who is going to adopt service can provide reliable information. Service providers can grow as high level service provider. We look forward to contribute to positive development of service industry.