European Online Journal of Natural and Social Sciences 2015; www.european-science.

com
Vol.4, No.1 Special Issue on New Dimensions in Economics, Accounting and Management
ISSN 1805-3602

Impact of service quality and perceived value on post-purchase

intention with mediation of customer satisfaction
(Case Study: Pharmacies in Tehran, Iran)

Soheila Sardar Donighi1, Mitra Yousefi2

1
Assistant professor, Department of Management and Social Sciences, Tehran North Branch,
Islamic Azad University, Tehran, Iran; 2MSc in Business Management, Department of Management
and Social Sciences, Tehran North Branch, Islamic Azad University, Tehran, Iran

Abstract
Service quality is known as a competitive advantage and impacts on customer satisfaction
directly because of competitive markets and lack of product differentiation. Knowing the mental
image of organization by customers, reveals the strengths and weakness points of organization,
adopt strategies and enhance performances. The purpose of this article is investigating the impact of
service quality and perceived value on post-purchase intention with mediation of customer
satisfaction. For this purpose, two questionnaires were designed according to the SERVQUAL
model and effective factors of research variables. These two questionnaires were collected from 384
customers of pharmacies in Tehran city and analysed by structural equation modelling, LISREL
software and SPSS software. The results show that service quality and perceived value affect post-
purchase intention. Customer satisfaction affects post-purchase intention as a mediator. The share of
customer satisfaction is more than the two other variables and the share of service quality is less
than perceived value.
Keywords: service quality, perceived value, post-purchase intention, customer satisfaction
Introduction
Customers affect the development and survival of organizations and companies. These days,
the importance of customer philosophically causes the organizations to accept and follow the
satisfaction of customer. In today markets, the profitability and development of organizations are
directly related to the degree of customer satisfaction. One of the important processes in customer
satisfaction's cycle is measuring customers' satisfaction of products and services. The degree of
customer satisfaction not only shows the success of organizations in achieving their goals, but also
can improve the quality of procedure for the supplier organizations. Remaining in competition in the
business world has become more challenging and difficult; therefore, organizations try to find new
ways for improving their situation. Loyal customers are important because it is believed that they
have less incentive to seek an alternative even in the absence of average satisfaction. Researchers
have found that quality has a profound impact on customer satisfaction and loyalty; in fact, it is a
result of comparison between customer expectations of service and their perceptions after receiving
service. Several studies showed that customer satisfaction of services and products is a factor for the
willingness or unwillingness of customers to repurchase and other behavioural intentions as
recommending to others. It was also found that service quality as one of the most important factors
affects the repurchase of organizations. The perceived value is consumer overall assessment of the
product desirability and based on customer perception of receipts and expenditures (Zeithaml,
1988). Perceived value is one of the factors which many companies pay special attention to for
retaining customers, and has been introduced as an important factor in decision making of customers
(Rust & Oliver, 1994).

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 Soheila Sardar Donighi, Mitra Yousefi

In the present article, impact of service quality and perceived value on post-purchase
intention with mediation of customer satisfaction has been studied. Because of the importance of
services in pharmacies, competition requires the attention of managers to enhance service quality
and customer satisfaction. So, customer investigation for evaluating the indicators of customer
satisfaction, service quality and perceived value is one of the important factors for returning
customer and affects the economic success of pharmacy.
Empirical research background
In 2000, a research entitled "Assessing the effects of quality, value, and customer satisfaction
on consumer behavioural intentions in service environments" was done by Cronin and colleagues in
America. For this purpose, they have designed a model that showed service quality affects service
value, customer satisfaction and post-purchase intention. Also, perceived value impacts on customer
satisfaction and purchase intention. This study expresses that customer satisfaction has a positive
impact on post-purchase intention in future. In 2001, a cross-cultural research entitled "The
relationship between service quality and customer satisfaction," was done by Brady and Robertson.
Because of the ambiguity between these two concepts in previous researches, they intended to
resolve the ambiguities of the relationship between these two concepts. They also wanted to
determine that effects of satisfaction and service quality on behavioural outcomes such as loyalty
and verbal communication in service environments is similar or in coordination with the provision
of services. The results showed that in both Ecuador and the American society, service quality leads
to customer satisfaction. This study also showed that service quality is better than customer
satisfaction in prediction of changes in behavioural consequences. Another research entitled "The
relationships between service quality, perceived value, customer satisfaction and post-purchase
intention in mobile value-added services" was studied by Kuo and colleagues in 2009. Results
showed that if companies improve their service quality, satisfaction and perceived value increases in
customers and this affects post-purchase intention in customers.
In 2002, a research entitled "Customer satisfaction evaluation of after-sales services quality
(case study: Xerox Corporation in Isfahan City)" was studied by Ranjbarian and colleagues. They
used a questionnaire for collecting data and selected samples by simple random sampling method.
The questionnaire was based on the Likert scale. Ten factors that specify service quality, designed
by Len Berry and his colleagues and divided into three categories: technical service quality,
relationship between staffs and customers and the expenditures of after sale services. The results
showed that customers satisfy the dimensions of service quality.
In 2011 a research entitled "Relationship between perceived value, perceived quality,
customer satisfaction and post-purchase intention at chain stores in Tehran City" was studied by
Ranjbarian and colleagues. The statistical population was customers of Refah, Shahrvand and Etka
chain stores in Tehran City. The results showed that in chain stores, perceived quality affects
perceived value, customer satisfaction and post-purchase intention. In addition, perceived value
affects customer satisfaction and post-purchase intention. Also customer satisfaction affects post-
purchase intention and finally, the proposed model effectively explains the relationship between
perceived quality, perceived value, customer satisfaction and post-purchase intention in chain stores.
Definition of concepts
Service quality: The measure and direction of the conflict between customer perception of
service and his expectation (Alvani & Riahi, 2003).
Customer satisfaction: The pleasure and satisfaction that the customer feels as a result of
achieving demands in relation to specific services (Dollavat Varay, 2005).

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Special Issue on New Dimensions in Economics, Accounting and Management

Perceived value: The consumer overall assessment of the product desirability that is based
on customer perception of receipts and expenditures (Zeithaml, 1988).
Post-purchase intention: Intention to repurchase from the same company, according to
previous experiences of the customer (Helier et al., 2003).
Conceptual model
This research model shows the impact of service quality and perceived value on post-
purchase intention with mediation of customer satisfaction that is according to the Kuo and
colleagues model.

Figure 1: The proposed model based on the model Kuo et al. (2009)
Research hypotheses
1. Service quality affects perceived value.
2. Service quality affects post-purchase intention.
3. Perceived value affects post-purchase intention.
4. Service quality affects post-purchase intention with mediation of customer satisfaction.
5. Perceived value affects post-purchase intention with mediation of customer satisfaction.
6. Customer satisfaction affects post-purchase intention.
Research Methodology
This research is descriptive – correlation by method and it is applied by purpose. The
statistical population is all customers who use pharmacies services in Tehran city. The sample size is
384 people and estimated by using Morgan table and they were selected by simple random
sampling. The data collection tools are two questionnaires. The first questionnaire is based on the
SERVQUAL model. It is a standard questionnaire and has 22 questions that evaluate dimensions of
customer satisfaction including tangibles, assurance, reliability, responsiveness and empathy. The
second questionnaire is a researcher designed questionnaire and has 19 questions that evaluate other
research variables such as service quality, perceived value and post-purchase intention. Validity of
the first questionnaire was confirmed by standard questionnaire of SERVQUAL model and validity
of the second questionnaire was confirmed by some expert teachers in this field. In this research,
discriminating validity has been considered. Variables of every structure of model finally make a
reasonable differentiation of measurement. In simple terms, every variable measures only its
structures and combines them in such a way that all structures are well separated. By using indicator
of AVE, it has been specified that average variance extracted of all structures is higher than 0.5.
Indicators of composite reliability (CR) and Cronbach's alpha also were estimated by using the
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 Soheila Sardar Donighi, Mitra Yousefi

SPSS software (Table 1). Amount of Cronbach's alpha coefficient is higher than 0.7 for all
indicators, so reliability of the questionnaires is confirmed. Data of research were analysed by using
LISREL software and using inferential statistics techniques.
Table 1: Indicators of reliability and validity of variables
Hidden variables AVE Composite Reliability Cronbach's alpha
Tangibles 0.713 0.908 0.865
Assurance 0.757 0.925 0.889
Reliability 0.675 0.893 0.840
Responsiveness 0.709 0.924 0.897
Empathy 0.678 0.913 0.881
Customer satisfaction 0.784 0.953 0.948
Post-purchase intention 0.727 0.930 0.911
Perceived value 0.759 0.940 0.920
Service quality 0.613 0.934 0.920

Figure 2: Research Model in state of estimated standardized coefficients

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Special Issue on New Dimensions in Economics, Accounting and Management

Figure 3: Research Model in state of (t-value) meaning

Table 2: Indicators of Fit Index
Index name Estimated allowable range Reference of allowable range
(Chi-square, the degrees of freedom) 2.735 <3 Kalantari (2009)
Goodness of Fit Index (GFI) 0.86 >0.8 Kalantari (2009)
Adjusted Goodness of Fit Index (AGFI) 0.82 >0.8 Kalantari (2009)
Root Mean Error of Approximation 0.093 <0.1 Tinsley and Brown (2000)
(RMSEA)
Comparative Fit Index (CFI) 0.96 >0.9 Kalantari (2009)
Normed Fit Index (NFI) 0.95 >0.9 Bentler and Bonnet (1980)
Non-Normed fit index (NNFI) 0.96 >0.9 Bentler and Bonnet (1980)
Incremental Fit Index (IFI) 0.96 >0.9 Bentler and Bonnet (1980)
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 Soheila Sardar Donighi, Mitra Yousefi

As indicators of fit index show in Table 2, data of this research fit factor structure and
theoretical substructures of the research. It means that questions are compatible with theoretical
constructs.
After validation of the measurement models, research structural model is investigated.
Table 3: Results of structural equation modelling to examine the first equation
Impacts Independent variables Beta t Coefficient of Status of Direction
determination hypothesis of impact
Direct Service Quality -> perceived value 0.693 25.316 0.48 Confirmed Direct
Perceived value -> customer satisfaction 0.498 11.082 0.583 Confirmed Direct
Service Quality -> Customer 0.329 6.638 Confirmed Direct
Satisfaction
Service Quality ->post-purchase 0.111 2.441 0.611 Confirmed Direct
intention
Perceived value -> post-purchase 0.608 13.088 Confirmed Direct
intention
Customer satisfaction ->post-purchase 0.119 2.282 Confirmed Direct
intention
indirect Service Quality -> customer 0.500 22.667 0.262 Confirmed Direct
satisfaction>post-purchase intention
Perceived value -> customer 0.059 1.601 Rejected -
satisfaction>post-purchase intention
According to Table 3 results of structural equation (Direct effects) are as follows:
Hypothesis 1: Service quality affects perceived value.
According to the amount of t-Statistic that is out of significant range (it is more than 1.96)
(p<0.05), researcher's assertion "Service quality affects perceived value" is confirmed with the
probability of 0.95. According to the positive beta coefficient, it can be said that service quality
impacts on perceived value positively and directly. Coefficient of determination is 0.48. Therefore,
service quality is able to explain 48% of the variation of perceived value.
Hypothesis 2: Service quality affects post-purchase intention.
According to the amount of t-Statistic that is out of significant range (it is more than 1.96)
(p<0.05), researcher's assertion "Service quality impacts on post-purchase intention" is confirmed
with the probability of 0.95. According to the positive beta coefficient, it can be said that service
quality impacts on post-purchase intention positively and directly.
Hypothesis 3: Perceived value affects post-purchase intention.
According to the amount of t-Statistic that is out of significant range (it is less than -1.96)
(p<0.05), researcher's assertion "Perceived value affects post-purchase intention" is confirmed with
the probability of 0.95. According to the positive beta coefficient, it can be said that perceived value
affects post-purchase intention.
Hypothesis 6: Customer satisfaction affects post-purchase intention.
According to the amount of t-Statistic that is out of significant range (it is less than -1.96)
(p<0.05), researcher's assertion "Customer satisfaction affects post-purchase intention" is confirmed
with the probability of 0.95.According to the positive beta coefficient, it can be said that customer
satisfaction affects post-purchase intention.
Coefficient of determination is 0.61. Therefore, service quality, customer satisfaction and
perceived value totally are able to explain 61% of the variation of post-purchase intention.
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Special Issue on New Dimensions in Economics, Accounting and Management

According to the amount of beta coefficient, the share of customer satisfaction is more than two
other variables and the share of service quality is less than perceived value.
According to Table 3 results of structural equation (Indirect effects) are as follows:
Hypothesis 4: Service quality affects post-purchase intention with mediation of customer
satisfaction.
According to the amount of t-Statistic that is out of significant range (it is more than 1.96)
(p<0.05), researcher's assertion "Service quality affects post-purchase intention with mediation of
customer satisfaction" is confirmed with the probability of 0.95. According to the positive beta
coefficient, it can be said that service quality impacts on post-purchase intention with mediation of
customer satisfaction positively and directly.
Hypothesis 5: Perceived value affects post-purchase intention with mediation of customer
satisfaction.
According to the amount of t-Statistic that is among significant range (it is between 1.96 to –
1.96), hypothesis 5 “Perceived value affects post-purchase intention with mediation of customer
satisfaction” is rejected with the probability of 0.95.
Conclusion
A summary of results is presented here:
 According to the amount of t-Statistic that is out of significant range (it is more than 1.96)
(p<0.05), service quality affects perceived value with the probability of 0.95. So service quality is
able to explain 48% of the variation of perceived value. The study by Wang and colleagues in 2004
showed that service quality has a direct relationship with perceived value. Also, the study by Turel
and Serenko in 2006 showed that service quality has a direct relationship with perceived value. The
study by Ibrahimi and Mansouriin 2013 in Iran confirmed that service quality affects perceived
value.
 According to the amount of t-Statistic that is out of significant range (it is more than 1.96)
(p<0.05), service quality affects post-purchase intention with the probability of 0.95. The study by
Lee and Lin in 2005 showed that perceived service quality affects post-purchase intention. Also, the
study by Ranjbarian and colleagues in 2011 in Iran confirmed that service quality affects post-
purchase intention.
 According to the amount of t-Statistic that is out of significant range (it is less than -1.96)
(p<0.05), perceived value affects post-purchase intention with the probability of 0.95. The study by
Eggert and colleagues in 2002 showed the impact of perceived value on post-purchase intention.
Also the study by Petric in 2002 confirmed this hypothesis. In Iran the study by Taghavi Fard and
colleagues in 2011 showed that perceived value affects post-purchase intention.
 According to the amount of t-Statistic that is out of significant range (it is more than 1.96)
(p<0.05), service quality affects post-purchase intention with mediation of customer satisfaction
with the probability of 0.95. The study by Boonajsevee in 2005 showed the relationship between
service quality and post-purchase intention with mediating of customer satisfaction. Also, the study
by Allameh and Noktehdan in 2009 in Iran confirmed this hypothesis.
 According to the amount of t-Statistic that is among significant range (it is between 1.96 to
– 1.96), this hypothesis "perceived value affects post-purchase intention with mediation of customer
satisfaction" is rejected with the probability of 0.95. The study by Kuo Wu and Deng in 2009
showed the direct relationship between perceived value, customer satisfaction and post-purchase
intention.
 According to the amount of t-Statistic that is out of significant range (it is less than -1.96)
(p<0.05), customer satisfaction affects post-purchase intention with the probability of 0.95. The
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 Soheila Sardar Donighi, Mitra Yousefi

study by Brady and colleagues in 2001, study by Cronin and colleagues in 2000 and study by Collier
and colleagues in 2006, totally confirmed that customer satisfaction affects post-purchase intention.
The study by Sanayi and colleagues in 2012 in Iran also showed that customer satisfaction affects
post-purchase intention.
 According to determination coefficient, service quality, customer satisfaction and
perceived value totally are able to explain 61% of the variation of post-purchase intention.
According to the amount of beta coefficient, the share of customer satisfaction is more than two
other variables and the share of service quality is less than perceived value.
Suggestions
• Since there is a positive and significant relationship between service quality and customer
perceived value and also perceived value affects post-purchase intention, it can be suggested that:
- Tools for comfort such as chairs, air conditioners, drinking water and etc must be provided
for customers.
- Pharmacy manager must care the cleanliness of staffs and provide facilities for them.
• According to the positive and significant relationship between service quality and post-
purchase intention, it can be suggested that:
- When employees have promised for any service, they must do it on time and must
guarantee for breach of promise and pay recompense.
- Employees must do tasks and services quicker so that the customers like to repurchase
more than before.
• Science there is a positive and significant relationship between perceived value and
customer post-purchase intention, it can be suggested that:
- Needs assessment must be done. It is necessary to identify the needs, desires and interests
of customers.
- Policies of providing services must be clear and understandable for consumers.
• According to the positive and significant relationship between service quality and post-
purchase intention with mediation of customer satisfaction, it can be suggested that:
- Pharmacy manager should consider the system of reward and punishment. So that the
employees behave well and be polite to customers.
- Providing various services should be considered by manager and employees must explain
how to use products consequently.
• Science there is a positive and significant relationship between customer satisfaction and
post-purchase intention, it can be suggested that:
- Selection of employees must be considered, especially the employees who are in direct
contact with the customers. Management must employ people who behave with customers properly.
- Training, should be considered in all working life of staffs and be related to duties and
activities. It can develop the knowledge and perception of employees.
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