Determinants of Customer Satisfaction with Metals Industry Research and Development Center (MIRDC) Analysis and Testing Services: A Structural Equation Modeling Approach

Abstract

Metals Industry Research Development Center (MIRDC) is an accredited metals testing laboratory in the Philippine. The purpose of this study was to analyze the causal relationship among the services given by the Analysis and Testing Division of MIRDC to the overall satisfaction by utilizing Structural Equation Modeling (SEM). A total of 505 Customer Satisfaction Monitoring (CSM) were collected and analyzed. Two SEM were developed based on 2017 CSM and 2018 CSM. For the 2017 model, the result indicated that “Assessment” service was the most predicting latent for overall satisfaction, followed by “Facility” and “Shoplab”. In contrast, for the 2018 model, “Facility” service was the most predicting latent for overall satisfaction, followed by “Assessment” and “Shoplab”. The derived SEM could be a theoretical foundation particularly related to the improvement in the Analysis and Testing Division of MIRDC, Philippines. The proposed SEM approach could also be applied to other industries that utilized a questionnaire to evaluate overall satisfaction.