Is there a link between service quality and corporate reputation in the real estate business in Malta? : a study of the real estate business and the perceptions of its customers

Abstract

This study seeks to analyse the relationship that exists between service quality and corporate reputation in the Maltese real estate sector. This industry is currently experiencing a growth period with property prices rising constantly both for sales and rental properties. The study focuses on the perceptions of customers toward the level of service and satisfaction they experienced when they worked with real estate agencies on the island and how these perceptions are linked to customers’ image of the firm they deal with in terms of reputation. There is substantial literature relating to both service quality and corporate reputation although there is a relative lack of studies that look at real estate in Malta. This study involved the administration of a questionnaire among people who had experienced the service of a real estate agency. The instrument comprised 54 items drawn from SERVQUAL (service quality) and CBR instrument (corporate reputation). The study finds that:. There is a significant link between each and every factor of service quality (tangibility, responsiveness, reliability, assurance and empathy) and those of corporate reputation (customer orientation, good employer, reliable and financially strong company, product and service quality and social and environmental responsibility).

2. The strength of the correlation varies from factor to factor. Other results of this research also show which agencies enjoyed most custom from the respondents and at what period of their life are customers likely to look for such services. These findings suggest that agencies need to reduce the negativity by which they are seen and enhance their reputation by delivering better quality. The implications of not attending to such issues are also discussed in this study. A key implication is that of gaining a negative reputation which would influence customers against using real estate services. The limitations of the research were set out and discussed together with the recommendations for the future of this industry in the Maltese islands.