TABLE OF CONTENTS
Contents Page No. 1: INTRODUCTION 3 1.1 GOAL OF A TERM PAPER 3 1.2. PHARMACY 3 1.2.1. BABITO PHARMACY 4 2: Literature Review 4 2:0. Back to theory: the principal models for services quality 4 2.1. Customer Satisfaction 8 2.2. Satisfaction levels 9 2.2.1. Greatly disappointed customers 9 2.2.2. Mildly disappointed customers 10 2.2.3. Experience according to expectations 10 2.2.4. Mildly positively surprised 10 2.2.5. Greatly positively surprised customers 11 2.3. Dissatisfied customers 11 3. Case Study Babito Pharmacy- retail SERVICE 12 3.0. Determinant of Service Quality in a pharmacy 12 3.1. KEY FACTORS 12 3.1.1. COMPETENCE 13 3.1.2. Courtesy/ personnel friendliness 13 3.1.3. listening skills and UNDERSTANDING 13 3.1.4. medicine in stock 13 3.2. PLUS FACTORS 14 3.2.1. pharmacy location 14 3.2.2. store accessibility 15 3.2.3. PRIVATE SERVICE AREA 15 3.2.4. medicine quality 16 3.2.5. quality/price ratio 16 3.3. SECONDARY FACTORS 16 3.3.1. waiting time 17 3.3.2. LIGHTING 17 3.3.3. entrance atmosphere 18 3.3.4. shop design 18 3.3.5. freedom of movement in the pharmacy 19 3.3.6. EASE access to products and to shelves 19 3.3.7. Presentation and window display 19 4. CONCLUSION 20 5. RECOMMENDATION 20 6. REFERENCE 21

1: INTRODUCTION
Services quality and customer satisfaction have been for over a decade two important topics both for the academic world and for the researches in the field of marketing. The attention directed to these two concepts, services quality and customer satisfaction is mainly due to the harsh competition among private companies. The key to the competitive advantage is to deliver high-quality services, services that in exchange will generate the customer satisfaction.
Service quality and customer satisfaction are very important for companies for both small and big companies, but especially for companies which are operating under highly competitive environment. Today competition between companies is growing all the time and that is why service quality is becoming more and more important. When a company manages to serve its customers well enough and make them happy company can create long-term customer relationships and possibly get free marketing at the same time when satisfied customers tell others about the good service they got. Satisfied customers have a positive impact on the company’s results and that is why it is important and interesting to investigate this impact. When measuring customer satisfaction it is possible to get useful information of the company customers and the results can be used to improve the company and its services. The company gets an exact idea what customers want and it can start developing the services. Measuring customer satisfaction should be a continuous process that is carried out regularly, not just once: if it is done regularly the results will be more beneficial.
1.1 GOAL OF A TERM PAPER
The goal of this term paper is to discuss the determinants of customer satisfaction and service quality in Pharmacy Industry a case study at Babito Pharmacy, Mbeya Town. The factor that will be discussed will be based on the retail services offered by a pharmacy.
1.2. PHARMACY
Pharmacy is the science and technique of preparing as well as dispensing drugs and medicines. It is a health profession that links health sciences with chemical sciences and aims to ensure the safe and effective use of pharmaceutical drugs.
The scope of pharmacy practice includes more traditional roles such as compounding and dispensing medications, and it also includes more modern services related to health care, including clinical services, reviewing medications for safety and efficacy, and providing drug information. The experts on drug therapy and the primary health professionals who optimize use of medication for the benefit of the patients are called Pharmacists. They provide patient care that optimizes the use of medication and promotes health, wellness, and disease prevention.
Dispensing is not the sole domain of the pharmacist. Apart from filling a prescription, advice on prescription medications and prescription drug therapy monitoring, pharmacists are also capable of performing non dispensing services such as advice on over-the counter medications and information on health matters such as poison and disease prevention.
The pharmacist determine also whether the medication is necessary, if it's being taken correctly, if it fits into the patient's budget, and if not if there is something cheaper on the market. The patient can also use the time to ask the pharmacist any questions or voice concerns they may have regarding their medications.
1.2.1. BABITO PHARMACY
Babito Pharmacy is the private limited company located at Mbeya Retco, Mbalizi Road, Mbeya Township.

2: Literature Review
2:0. Back to theory: the principal models for services quality
Service quality may be defined as customer perception of how well a goods or service meets or exceeds their expectations (Czepiel 1990). Service quality is a comparison of expectations with performance. It is a measure of how goods and services supplied by a company meet or surpass customer expectation Service quality can be measured in terms of customer perception, customer expectation, customer satisfaction and customer attitude (Sachdev and Verma 2004). Ekinci, 2003 indicates that the evaluation of service quality leads to customer satisfaction.
The debate about service quality, which dates back to the late seventies, has resulted in a large body of findings representing a multiplicity of approaches.
The concept of service quality was proposed by the Nordic school in the nineteen eighties (Gummesson, 1979, Gronross, 1982) and picked up in North America (Parasuraman, Zeithaml, Berry, 1985; Berry, Parasuraman, Zeithaml, 1988). Based on customer perceptions, the concept of service quality took on the role of a tout court paradigm. The idea of quality involving a customer satisfaction formula, spread from services to manufacturing and even to relationships between governmental services and the citizen.
From this initial background a number of models for quality in services were developed by academics and consultants. A model is in this sense a logical construct used in an effort to interpret and predict a real phenomenon (Simon, 1957) by breaking it down into a small number of variables that make it possible to simplify, unravel and dismantle the phenomenon so its component parts are visible for examination (Baccarani, 2010).
The first service quality analysis model was produced in the eighties (Grönross, 1983; Grönross, 1984): being the total perceived quality model, based on the individual’s perception of the quality of a service. The customer compares his expectations with his experience of the service, that is technical quality (that obtained by the user) and functional quality (how the service is provided), perceived through the filter of the company’s image.
This was followed by the Gap Analysis Model, developed from exploratory investigations conducted by the North American scholars Parasuraman, Zeithaml and Berry (1985), starting out from the supposition that the quality of a service is expressed according to a disconfirmation paradigm (Oliver, 1980; Churchill, Surprenant, 1982), that is to say the discrepancy between the customer’s expectation and the customer’s perception of the service. The Gap Analysis Model: (i) Suggests a number of certain key factors (word of mouth communication, personal needs, past experience and external communications) which influence customer expectations. (ii) Identifies the determinants of service quality (reliability, response capacity, competence, accessibility, courtesy, communication, credibility, security, understanding the customer and tangible aspects), which are evaluated by the customer. (iii) Identifies failings in quality perceived by the customer and the service provider’s internal gaps, to find an approach capable of removing or at least reducing these failings.
On the basis of these models, the nineties saw the development of the synthetic model of perceived service quality (Brogowicz, Delene, Lyth, 1990), according to which perceived quality derives from the total service quality gap, that is the technical quality gap and the functional quality gap, each of which is strictly connected to the respective quality expectations.
The 4 Q model of offering quality (Gummesson, 1993) considers both goods and services. This model compares customer expectations, experiences and company’s image and brand to customer perceived quality. Perceived quality has two sources: design quality and production and delivery quality. The results of production and delivery quality are relational quality and technical quality.
The Gap Analysis Model is in its turn revisited and extended to embrace seven gaps (of knowledge, of standards, of delivery, of internal communications, of perception, of interpretation and of service), each of which can occur at any moment or stage in service planning and performance (Lovelock, 1994).
If all of the models considered up to this point are characterized by their static nature, in 1993 Grönross highlighted the need to construct dynamic models to be able to come to a real understanding of perceived service quality and, thanks also to the work of Gummesson (1987; 1993), the approach which emerges is that of relational quality analysis, by which the service company sets out to create value for the customer by collaborating with the customer himself.
An early relational quality model carried out an analysis of the interactions in actions and episodes between Service Company and Customers (Liljander, Strandvik, 1995). By way of a comparative parameter, the customer compares company performance over a series of episodes to determine the relational quality.
Following these studies, a relational grid was drawn up that also shows the sequences (Holmlund, 1997) involved in the formation of the relationship itself. Communication plays a particularly important role in this regard, not so much as a unilateral tool but rather as interaction and dialogue between provider and customer (Ballantyne, 1999-2000). This communication is based on the participation of both parties (Bohm, 1996), and on their desire to establish and maintain reciprocal understanding (Dichter, 1996) and to think together to solve any problems that arise (Grönross, 2007).
Finding that customer expectations of the service may change over time (Reeves and Bednar ,1994) construct a dynamic expectations model, which broke down expectations into indefinite, explicit and implicit expectations (Ojasalo, 1999a,b). The service company must always satisfy implicit expectations and understand the indefinite expectations so that they can be made to emerge as explicit expectations. The provider of the service can then be sure of having performed a service that satisfies the customer, also by transforming explicit but unrealistic expectations into realistic expectations. For their part, over time the customers learn to carry out the same conversions (dynamic non intentional effect). Where the changing expectations are not satisfied, there is on the one hand a failure of the service provision (Nyquist, Bitner, Booms, 1985; Bitner, Nyquist, Booms, 1985) and on the other hand the customer may switch to another provider who will satisfy his/her expectations.
From SERVPERF (Cronin and Taylor 1992) the “Service Quality” of a pharmacy is to be determined by the following elements:- (i) The pharmacy with modern equipment. (ii) The installations of the pharmacy are visually agreeable. (iii) The employees of the pharmacy have an agreeable aspect. (iv) The equipments of the pharmacy are in view of the service. (v) The pharmacy has a quickly attendance. (vi) The employees of the pharmacy inform customer conveniently. (vii) The employees of the pharmacy are always prepared to help customer. (viii) The pharmacy priority is the customer. (ix) The employees of the pharmacy answer to customer’s more specific needs. (x) The pharmacy has good diversity of products. (xi) The behavior of the employees of the pharmacy inspires confidence to the customers. (xii) Customers feel secure when they buy from a particular pharmacy. (xiii) The employees of the pharmacy are always pleasant. (xiv) The employees of the pharmacy have sufficient knowledge’s to answer to customer’s needs. (xv) The pharmacy priority is the customer. (xvi) The pharmacy does what it promises. (xvii) When a customer has a problem, the pharmacy demonstrates interest in it resolution. (xviii) The pharmacy does the service well at first time. (xix) The pharmacy does the service in the promised time. (xx) The pharmacy does not commit errors. (xxi) The employees of the pharmacy aren’t ever occupied to answer to customer’s questions. (xxii) The pharmacy has personnel attendance. (xxiii) The employees of the pharmacy do personal attendance. (xxiv) The Pharmacy offer pharmaceutical consultation service. (xxv) The employees of the pharmacy do private attendance when customers ask. (xxvi) The pharmacy has good parking. (xxvii) The pharmacy is near to a hospital. (xxviii) The pharmacy is well localized. (xxix) The pharmacy has a convenient horary (timetable).
2.1. Customer Satisfaction
Customer satisfaction is defined as an "evaluation of the perceived discrepancy between prior expectations and the actual performance of the product" (Tse and Wilton, 1988, Oliver 1999). Satisfaction of customers with products and services of a company is considered as most important factor leading toward competitiveness and success (Hennig-Thurau and Klee, 1997). Customer satisfaction is actually how customer evaluates the ongoing performance (Gustafsson, Johnson and Roos, 2005). According to Kim, Park and Jeong (2004) customer satisfaction is customer’s reaction to the state of satisfaction, and customer’s judgment of satisfaction level. Customer satisfaction is very important in today’s business world as according to Deng et al., (2009) the ability of a service provider to create high degree of satisfaction is crucial for product differentiation and developing strong relationship with customers. Customer satisfaction is the “customer fulfillment response,” which is an evaluation as well as an emotion-based response to a product (goods or service). Rust and Oliver (1994)
Satisfaction, defined as “an affective state resulting from a cognitive and emotional evaluation process that occurs during a specific transaction”. (Plichon, 1999),
The satisfaction derived from a buying experience could be the fundamental factor for judging satisfaction at the pharmacy, especially because this service element concerns the customer’s health and well-being (Bolton and Lemon, 1999). Customer satisfaction in a pharmacy would become henceforth the veritable focal point of the strategy for pharmaceutical outlets since it increases the efficiency of the firm’s publicity and communication (Luo and Homburg, 2007). Such investigation of satisfaction enables the pharmacist to reinforce intended loyalty to the outlet, accentuated by the individual’s high level of implication in an act of purchasing that is devoted to health and well-being.
In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Satisfaction is considered a prerequisite to repeat purchase intentions, to client loyalty and to a favorable word-of-mouth reputation.
Now a day’s relational marketing is considered very important on the realization of the fact that customer satisfaction is quite essential for the lasting relationship between service organization and customer. A business with high service quality will meet customer needs whilst remaining economically competitive.
When trying to create customer satisfaction, the two most important things are caring for the customer and trust. A customer will appreciate the fact that the company won’t leave him/her to cope alone with the problems that were caused by the company’s actions. Customer satisfaction is still only an intermediate stopping point on the way to customer loyalty. Only satisfied enough customers will become a loyal customer.
2.2. Satisfaction levels
The customer satisfaction levels can be divided into different categories according to how strongly and to which direction the customers have reacted. The first three categories are: negatively surprised, expectations fulfilled and the last one is positively surprised. The negatively surprised category can be further divided into two subcategories: great disappointments and mild disappointments. Also the positively surprised category can be divided in the same way into two subcategories: mild positive surprises and great positive surprises.
2.2.1. Greatly disappointed customers
These customers usually complain right away, they might break the customer relationship and spread the negative word about the company. The customer relationship breakage and the negative word of mouth occurs most likely if the company does not take action when the customer complains. The complaint situation should be seen as an opportunity to fix the negative disappointment and this way to keep the customer.
2.2.2. Mildly disappointed customers
This customer type does not react straight away; instead the next time they go shopping they choose another product. If asked about this negatively surprised company, these customers are also ready to recommend using another company. With these customers it is very important that the company has a system for collecting customer feedback. If the company does not have a feedback system they might lose a lot of customers.
2.2.3. Experience according to expectations
Depending on the customer’s expectations level consequences are slightly different. In high expectations case the customer relationship is strengthened because the customer had very high expectations and the company could fulfill these high expectations. In average expectations situation, even though the company performs according to customer’s expectations it does not necessarily improve or weaken the customer relationship. In this situation it is possible for the competitor to make a better offer for the customer and this way “steal” the customer. But without the competitor’s offer there is every chance to continue the customer relationship with these existing customers. In low expectations situation, when the expectations are fulfilled, you can’t really describe the customer as satisfied; the customer just found out that the company answered his/her low expectations. Without any good alternatives the customer relationship can continue if the relationship is based on personal acquaintance. In case a better competitor occurs and is active the customer may start to use this competitor’s services.
2.2.4. Mildly positively surprised
These customers do not usually give feedback on their positive experiences. But one way to experience their satisfaction is that they stay customers and they are ready to recommend this company or product to their friends. This mildly positively surprised group is the most committed customer group. The customer relationship keeps on going if the company keeps surprising the customers in the future as well. The surprises do not have to be very big ones: just a small positive surprise is enough.
2.2.5. Greatly positively surprised customers
Customers feel greatly surprised when: They have a very low expectation level and the company performs in an exemplary way, Contact situation is exceptional, some part of company’s actions or the whole process worked in such a fine level that the customer is not used to. Such strongly positively surprises do not happen that often, but when they do happen the customer will on his own thank for the treatment he/she got. The customer is very likely to also spread positive word-of- mouth. (Rope Timo, Pöllänen Jouni. 1994, 40-43)
2.3. Dissatisfied customers
There are always customers who are not satisfied. Dissatisfaction can be caused by several factors, but whatever the reason it is always equally important to solve the cause of dissatisfaction. If the cause is not solved properly, the company might be losing its customers.
There are some basic rules in marketing and here are some of them. The first rule is the 3/11 rule. This means that when a customer receives good service he/she is going to tell about it to three of his/her friends. But if the customer becomes disappointed he/she will tell about this to eleven persons. The difference between these two figures is huge. The disappointed customer is really bad advertisement for the company and this is the reason why problem situations should be handled as well as possible. Another rule is the 26/27 rule. This means that out of 27 dissatisfied customers 26 will not complain about the bad treatment they got, instead these customers consider changing the shopping place next time. When dealing with this type of customers it is crucial that the company has a feedback system and this way the company can get information from these customers about what went wrong in the customer service situation. After getting the feedback the company can start fixing the problem and hopefully keep the customers in the future as well. This brings us to the next rule, the 1-10-27 rule. If the company once loses a customer, getting this customer to come back is very difficult. According to a Finnish survey getting back a once lost customer is even 27 times more expensive than maintaining a regular customer relationship. Getting new customers is up to ten times more expensive than selling to a regular customer. All these rules show that it is very important for the company to keep the customers happy. If the company does not do this it might be very costly, or even fatal, for the company. (Lahtinen Jukka, Isoviita Antti, 2004, 2-3)
Bitner and Hubert (1994) stated that SERVQUAL can be seen from the perspective of two situations: (1) as an tool that measures the level of service quality within a company – situation in which SERVQUAL can be considered as a good predictor of service quality and (2) in the situation in which SERVQUAL is seen as a measure of the customer-company multiple experience function, situation in which, it can be considered a good predictor of general satisfaction. 3. Case Study Babito Pharmacy- retail SERVICE
Cronin and Taylor (1992), find that service quality affects customer satisfaction in a positive relationship that is service quality will have a direct positive effect on satisfaction. Other researchers (Boulding et al., 1993; Zeithaml et al., 1996), also did not distinguish between service quality and customer satisfaction, and treat these as one and the same.
The determinants of service quality in a pharmacy will be discussed bearing the point that the same determinants will eventually determine customer satisfaction.
3.0. Determinant of Service Quality in a pharmacy
“Keys” factors: competence, personnel friendliness, listening skills and medicine in stock, “Plus” factors: pharmacy location, store accessibility, private-service area, medicine quality and quality/price ratio, “Secondary” elements: waiting time, lighting, entrance atmosphere, shop design, freedom of movement in the pharmacy, access to products and to shelves, presentation, window display.
3.1. KEY FACTORS
The elements of pharmacy services linked to staff and to pharmacists are “key” elements. The “key” elements strongly contribute in all cases to the degree of general satisfaction. These specific elements, related to the heart of the pharmacy profession (competency, listening skills, and personal friendliness) confirm the patient’s attachment to the pharmacist’s interpersonal skills and knowledge. When the customer goes to the pharmacy, he entrusts his health and well-being to the pharmacy personnel. A relationship of confidence must therefore become established between the two. This relationship can only be durable if the customer is satisfied with service elements such as competence, listening skills or personnel friendliness. Positive evaluation of these elements exerts a positive effect on general satisfaction, while a negative evaluation acts negatively. Medicines in Store also fall under key factor for service quality.
3.1.1. COMPETENCE
Competence means possession of the necessary skills and knowledge required to perform the service. Pharmacist with high skills and knowledge about medicines will eventually be able to serve customers/patients at a high satisfactory level. Customers or Patients needs to be assure that they will get appropriate services from Pharmacist. Pharmacist with sufficient knowledge’s to answer patient’s needs inspires confidence to the customers. Clarity of explanations from pharmacist creates a feeling of trust to a patient.
The competence of the pharmacist is proved and evident: in the direction and administration of pharmaceutical services; in drug regulation and control; in the formulation and quality control of pharmaceutical products; in the inspection and assessment of drugs contents, ingredients, side effects, manufacturing and expiring date; in the assurance of product quality throughout the distribution chain; and in the way he/she advise the management to buy drug from appropriate distributor, manufacturers and agencies.
Customers feel satisfied if they think and believe they are served by a right person. In this case they consider service to be of high quality.
3.1.2. Courtesy/ personnel friendliness
The politeness, respect, consideration, and friendliness of contact personnel enable customers to feel free and comfortable to express themselves when the service is delivered. Since some patient feel shy to express what they are suffering from, private attendance is appropriate for this kind of customer and the conversation made should be confidential. Making customers comfortable to express their service needs enables pharmacist to offer the right service.
3.1.3. listening skills and UNDERSTANDING
For a pharmacy to offer a high standard service quality, employees should make effort to understand the customer’s needs; learning the customer’s specific requirements; providing individualized attention; recognizing the regular customer. The employees should be able to inform customers conveniently according to their health needs. Customers will be satisfied more with pharmacy services if high attention is paid to their needs.
3.1.4. medicine in stock
Service quality in a pharmacy is associated with good diversity of products. Customers feel satisfied when the medicines subscribed by their doctors or medicines they want are always available in store. Customer feels dissatisfied when at several times ask for medicines and find out that they are not available. Out of Stock (O/S) is not the good answer to customers therefore store keeper must ensure that medicines are always available in store.
Medicines in Store’s Shelf
Customer feels bad leaving the pharmacy without the medicine they want or if they frequently face stock shortages.
3.2. PLUS FACTORS These are factors which do not directly add to the general satisfaction of a customer but in a competitive business environment they help in increasing number of customers and market share. Therefore they must also be considered as determinant of service quality.
3.2.1. pharmacy location
A pharmacy should be well localized near to a hospital or areas where customers/patients can get ease access to it. Customers need not to go long, using a lot of time in finding services which is associated to their health. Customers will be satisfied if example after getting prescription form from doctors in hospital they find a pharmacy near to hospital to get medicines prescribed by doctors. Since Medicines, food and drugs are controlled by Tanzania Food and Drugs Authority (TFDA) customers know that they may get the same level of product quality from any pharmacy. Therefore customers will be satisfied more with a pharmacy which is near to where they need a service than the one which is far away.
3.2.2. store accessibility
The arrangement of store matters much for a pharmacy to offers high service quality. The store should be arranged in such a way that customers can see and choose among alternatives medicines. Since a single disease can be treated by different medicines, customer needs to see and get information on the quality, price and advantages of using a particular medicine before they make a choice. Customers will be satisfied more if they choose what they see. Ease access to store also help employees to serve customer at a very high speed.
3.2.3. PRIVATE SERVICE AREA
Personnel attendance and confidentiality plays a great role in satisfying customers. A secret place reserved for customers who need special and private conversation with pharmacist is important for those customers who feel shy to express their diseases before the public. Customers will be satisfied more if they able to fully express their needs than when there are no conducive environment to express themselves. This enables also the pharmacist to fully understand the needs of the Patient and give the right service.

A Meeting Room for Customers who need Private Conversation with Pharmacist

3.2.4. medicine quality Medicine quality is also a factor that determines service quality since people would associate quality at the drug efficiency after having a medicine. The quality of medicine is controlled by Tanzania Food and Drug Authority (TFDA), all medicines supplied should be registered with this government supervisory body. Customers/Patients should always be given medicines with quality in accordance to TFDA. The safety of a customer is assured with registered medicines. Procurement Unit of a pharmacy should inspect the genuine of the medicines. Registered medicines enable customers to be sure that they are getting the right medicines.

3.2.5. quality/price ratio
The price set for medicines should resemble its quality. Customer will be satisfied if they pay high price for high quality medicines and pay less for normal quality medicines. Customer will be dissatisfied if they pay high price for low quality medicines. The pharmacy should set price in accordance to the quality of medicines. However this factor is only meaningful if the customer purchases the medicine and has the opportunity to assess the medicine’s price and its quality.
3.3. SECONDARY FACTORS
The atmosphere of the pharmacy, characterized by the first impression and by product presentation, is a “secondary” element. Here, the atmosphere is characterized by two types of factors. The first type is related to product presentation, which is to say: to the deliberate conception of space inside the pharmacy itself (access to shelves, to products, the ambiance, lighting, and self-service areas) for the purpose of producing certain effects on the people. The second type is linked to the conception of the pharmacy’s exterior, put otherwise: to the first impression (entrance and shop window display).
The “secondary” elements, which are all related to merchandizing within the pharmacy, do not have a primary role in satisfaction. Overall satisfaction is not increased by the outlet’s layout (window display, ease of movement within the pharmacy, access to products and to shelves, presentation or shop design). Waiting time also falls under secondary factor.
3.3.1. waiting time
When customers are many, they will have to wait for some times before getting a service. The pharmacy should set the environment that will allow many customers to be served within a short period of time. Customers are satisfied more if they are served within a short period of time and leave than waiting for long period of time before getting a service. There must be also conducive waiting environment like waiting seats and other thing that will make them feel they are not waiting for long period of time like television. Seats for customers when they wait for a service

3.3.2. LIGHTING
The lighting system of a pharmacy should be set in such a way that customers will be free to move from here to there looking for variety of medicines they desire to purchase. Good lighting system helps customers to read and see medicines around the shelves. A well designed lighting system is also helpful for those who are having membership with National Health Insurance Fund because they have to fill some documents (Prescribed Form) before getting medicines.

A well designed lighting system
3.3.3. entrance atmosphere
The entrance atmosphere of a pharmacy should be well designed and attractive. Pharmacy entrance needs to reflect the personality of the pharmacy and must give a glimpse of the merchandise/medicine available inside. With attractive feature of the pharmacy’s entrance, customers will feel that they are entering the right place to heal their health. Poor entrance atmosphere reduce confidence and trust to the customer on the quality of service offered by a pharmacy. There should be staffs that invite and direct customers into the direct place to be served.
3.3.4. shop design
The way a pharmacy is designed should allow ease flow of service from when customers enter into a pharmacy until when a service is delivered. Pharmacy must also have modern equipment and visually agreeable. A system designed to show where a customer will be served and where to pay
3.3.5. freedom of movement in the pharmacy
The space inside a pharmacy does contribute to customer satisfaction since it permits access to pharmaceutical products and to frequently used personal care and hygiene products and cosmetics.
3.3.6. EASE access to products and to shelves
The pharmacy should be arranged in such a way that staffs can get what is needed by customer/patient within a short period of time. The first and most common way is to display similar merchandise all in the same area. Medicines are arranged in categories according to the type of disease they are curing. Ease access to medicines support fast service deliverance. Being served earlier, customer will be satisfied more than if the service is delayed.
3.3.7. Presentation and window display
The way medicines are displayed in show windows also has a lot to do with inviting the people into the Pharmacy. Customers have only a few seconds to view and be attracted by displays therefore only few medicines should be put to the front entrance so that customers can at least focus.

4. CONCLUSION
A higher level of service quality leads to a higher level of customer satisfaction. In a competitive world, firms should strive to increase the service quality and customer satisfaction, and obtain customers more loyalty to the firm. These are keys to lead the market. The understanding of what drives the customer to be more loyal is the crucial element of all.
This term paper portrays that service quality is closely related customer satisfaction, implying that an increase in service quality is likely to lead to an increase in customer satisfaction.
The customer decision-making process for service products, and especially with services that are linked to health, is modeled as a complex system that incorporates direct and/or indirect effects on behavioral intentions.

5. RECOMMENDATION
Market-oriented industries and organizations live and die with the satisfaction of their customers and thus it should view customer satisfaction as their life line. Extensive efforts need to be made to gauge customer expectations and reactions to services in a continuous effort to improve, build and expand market share. If the customers are unhappy with the services offered by a firm it will be difficulty for the firm to survive. If the customers are happy with the use of the firm’s products and services it is likely that the profit of the firm will increase. Service Quality and Customer Satisfaction should therefore be taken as the heart and integral part of the business.
It is important for the company to actually care and appreciate the customer. It is clear that if the company can make the customer satisfied the customer will come back again and the customers might also tell to some of their friends about the good service they got. So through satisfied customers it is possible to save in marketing expenses.

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