Service quality (SERVQUAL) in Trade centers, Surabaya, Indonesia

What is it about?

Trade centers are managed by property managers on behalf of property owners, making service quality essential for maintaining tenant satisfaction and property reputation. This study examines the influence of SERVQUAL dimensions—tangibles, assurance, empathy, reliability, and responsiveness—the role of property management, and rental value quality on tenant satisfaction and property reputation. Using purposive sampling, data were collected from 100 tenants and kiosk owners in trade centers in Surabaya through questionnaires. The data were analyzed using PLS-SEM with SmartPLS 3.0. The results show that assurance, empathy, and responsiveness significantly affect tenant satisfaction through the mediating role of property management. Additionally, empathy, reliability, and responsiveness significantly influence property reputation, also mediated by property management. These findings emphasize the strategic role of property management in enhancing satisfaction and strengthening property reputation through effective service quality implementation.

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Why is it important?

Trade centers as trading areas experience management limitations because of the prohibition of mass gatherings during the COVID-19 pandemic, resulting in a limited number of onsite trading. Tenants who have entered into a long-term contract experience loss and rely on the aid of property management to survive. The role and quality of service of property management influence tenants’ satisfaction post-COVID-19 pandemic.

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