Standardization, customization, and customer loyalty in service industry
Balancing customization or standardization of service is one of the major concerns of today's service industry. A high level of customization might delight the customer but is usually associated with higher cost, longer waiting time with higher customer involvement in the service delivery process unlike standardization. The study attempts to develop an instrument to measure the level of customization standardization of service and its relationship with loyalty. For this purpose, the measurement with 29 five Likert scale questions related to customization standardization continuum scale and loyalty has been developed. Three industries; education, hospitality, and health care, have been selected. Overall 350 questionnaires were distributed based on non probability convenience sampling. The result of the EFA categorized the scale items into three factors namely: Service Resource, Service Process, and Service Setup of which will be the focus measurement for both the level of customization and standardization.