ABSTRACT
Service quality and customer satisfaction are very important
concepts that companies must understand in order to remain competitive in
business and hence grow. It is very important for companies to know how to
measure these constructs from the consumers’ perspective in order to better
understand their needs and hence satisfy them. Service quality is considered
very important because it leads to higher customer satisfaction, profitability,
reduced cost, customer loyalty and retention. The purpose of this study was to
examine customer satisfaction and service quality in the private security
service sector with respect to the service quality dimensions (SERVQUAL) using
Westec Security Systems Ghana Limited as a case study. To achieve the purpose
of the study, descriptive and explanatory research designs were used. A minimum
sample of one hundred and sixty-three estimated for the study was selected
using stratified and simple random sampling technique, out of which a total of
110 responded to the study. The data for the study was obtained primarily
through questionnaire. The data was analyzed using Pearson Correlation
Coefficient, one-way ANOVA and Simple linear regression. The result of the
study revealed a positive significant relationship between the service quality
dimensions and customer satisfaction with service delivery. In view of this, it
is recommended that Private security companies seeking to improve their
customers’ satisfaction levels, in their effort to increase loyalty, retention
rates and attract new customers should focus on providing high quality services
delivery.
CHAPTER ONE
INTRODUCTION
Background of the Study
The need for security has been a part of the human condition
since ancient times. These early societies had to plan for security due to
warfare and pillaging by individuals and groups. To prevent or mitigate losses
of life and property, people and cities employed military personnel or
designated others to perform “night watches” to maintain order and defend
against attacks and losses. In the more modern sense, security has developed
alongside law enforcement from the time the London Metropolitan Police became
the first truly professionally managed law enforcement department nearly 200
years ago (McNally, 2012).
Adequate and effective security is the bedrock for the
socio-economic development of any society. Historically, the state has been the
ultimate provider of security for citizens. The state uses its security
apparatus such as the military, police and the intelligence services in the
control and prevention of crime. Security exhibits the characteristics of a
public good for which reasons state provisioning has always been the norm. In
recent times, however, state provisioning of security has been inadequate and
ineffective (Friedrich Ebert Stiftung [FES], 2011).
The shift in economic policy, which occurred at the beginning
of the 1980s, has led many governments to cut back on the provision of social
services including security. Governments are now emphasizing fiscal prudence leading them to withdraw from providing essential
services in the singular efforts to cut expenditure and rein in deficits. This
has affected the ability and willingness of the state in many countries to
provide security as a public good (Badong, 2010). This has created security
vacuum that is increasingly being filled by private security companies.
According to Funmi, Ikpe, and Badong (2009), the provision of security by the
state in many developing countries has largely been inadequate hence the need
for private security firms.
In Ghana, as in many developing countries, increasing
urbanization combined with rising joblessness has led to an increasing crime
wave. A large section of the Ghanaian population has witnessed an increase in
crime and the perception of crime and insecurity since 1990 (Sule, 2009).
However, the increases in crime have not been met by a corresponding increase
in public security provision to guarantee the safety of citizens and property.
In 2010, the total staff of the Ghana police for instance stood at 24,000. This
compared to an estimated population of 24.3 million projects a low capability.
In its five year (2010-2014) Strategic National Policing Plan the Ghana Police
admitted that the increase in armed robberies, ethnic conflicts, cyber crimes, trafficking
of narcotic drugs and increasing population pressure continue to expose the
inadequacy of its existing staff strength and capability to protect life and
property (FES, 2011).
According to Aning and Lartey (n.d), the increasing crime
wave and the inadequacy in capacity of the Ghana Police Service to provide the
population with adequate security are some of the reasons for the growth of private security organizations in the country. But the
growing numbers of private security companies also reflect government’s efforts
at growing the private sector and outsourcing of previously governmental
functions to the private sector.
The private security industry continues to contribute to the
security needs of both private individuals and businesses. The industry has
also become a major source of employment particularly for young and unskilled
workers. The private security personnel are commonly seen at banking premises,
bonded houses, manufacturing enterprises, offices as well as residential areas.
They have become custodians of lives and property (FES, 2011).
Private security companies can be put into two groups. There
are those that are operated by quasi public institutions such as universities
and multinational organizations. These institutions recruit and train personnel
whose services are retained with the same establishment. The second category,
and perhaps the most visible private security operators in the country, is the
profit-oriented private security agencies. These are private security entities
that recruit and train personnel whose services are demanded by private
individuals and business entities. For the purpose of this study, private
security workers refer to the second category: those employed by profit
oriented private security agencies (FES, 2011).
Private security companies in Ghana operate like recruitment
agencies by providing security personnel to individuals and firms. The common
arrangement is where the private security agency remains the employer of the private security worker. Thus, the private security agency
receives service charges from the client (an individual, household or a firm),
from which the worker is paid. In this kind of arrangement, payment of wages
and benefits to the worker become the responsibility of the private security
agency (FES, 2011).
Westec Security Systems Ghana Limited is one of the
profit-oriented private security companies that recruit and train personnel
whose services are demanded by private individuals and business entities. The
company has been in operation since 1995. The priority of the company is to
provide the very best in security services thus ensuring customer satisfaction.
The security operations of the company are designed to cover the staff,
property, assets, equipment and the reputation of the organization with which
the company has signed a contract. This responsibility is not limited to the
assets and employees, but also to non-employees and guests who are invited to
the premises of the organization. It is the policy of Westec Security Systems
Ghana Limited to provide an excellent security service to the client throughout
the contract period and to ensure service quality and customer satisfaction.
Statement of the Problem
In today’s competitive market environment, understanding of
customer’s needs and handling complaints in order to provide quality service
has become an important factor for service providers’ successes. Customer
satisfaction, on the other hand, is of great interest to practitioners because
of its importance to customer retention and loyalty as well as its long term
effect on profitability and growth of business.
Westec Security Systems Ghana Limited is a private security
organization, which provides security services to commercial (corporate,
industry) and residential facilities. Notwithstanding its achievements in the
security industry, the customers of the company of late have made several
complaints about the quality of service being rendered by the company. For
instance, recently, several customers of the company have been complaining
about the security officers, thereby threatening to terminate their contract
with the company (Annual Report, 2015).
It is, therefore, important that the company provide its
customers with high quality services to avoid losing a greater proportion of
its customers to their competitors. It is important, first of all, for the
company to understand the attributes that the customers use to judge service
quality and to determine the level of their customer’s satisfaction, as well as
the needs and wants of their customers so as to improve on these attributes and
to achieve customer retention. It is in the light of this that this research
was conducted to assess the service quality and customer satisfaction of
customers of Westec Security Services Limited using the SERVQUAL model.
Service quality and customer satisfaction has received
considerable attention in the marketing literature, especially in the United
States, Europe , Asian, and Africa (Kumasey, 2014; Olu, 2010; Shanaki, Ranjbar
& Shakhsian, 2012; Biljana and Jusuf, 2011; Chingang & Lukong, 2010;
Loke et, al., 2011). Within this research area, numerous empirical studies have
reported the positive relationship between customer satisfaction and service
quality (Andaleeb & Conway, 2006).
In Ghana a numerous studies have been conducted on customer
satisfaction and service quality (Amoako, Arthur, Bandoh & Katah, 2011;
Nimako & Azumah, 2009; Kumasey, 2014; Nimako, Gyamfi, & Wandaogou,
2013; Dankwah, 2013; Horsu & Yeboah, 2015; Donkoh, Quainoo, Cudjoe &
Kaba, 2012). However, these studies have looked at customer service quality and
satisfaction in other organizations and areas other than the private security
sector in Ghana. This, however, has created a void in literature with respect
to customer satisfaction and service quality in the private security sector in
Ghana. This study fills this gap by examining customer satisfaction and service
quality in the private security service sector with respect to the service
quality dimensions (SERVQUAL) using Westec Security Systems Ghana Limited.
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