Impact of Failure in Customer Retention on Trainers’ Turnover in Singapore’s Fitness Industry and the Unintended Consequences

This research aims to analyze the failure in customer retention on trainers’ turnover in Singapore’s fitness industry and its unintended consequences. It explores the factors affecting customer retention, the impact of failure on employee turnover, and strategies to mitigate the gap between expectation and perception.

Running head: DISSERTATION
Impact of Failure in Customer Retention on Trainers’ Turnover in Singapore’s Fitness Industry
and the Unintended Consequences
Name of the Student:
Name of the University:
Author’s Note:

1DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

2DISSERTATION
Abstract
The aim of the research is to analyze the failure in customer retention on trainers’ turnover in
Singapore’s fitness industry that results in unintended consequences. Over the past decades, the
fitness industry has gained huge popularity, as the majority of the population has become health
conscious. A large portion of the fitness industry comprises of the exercise studios and gyms.
The demand has increased to 2.5 million in 2015 from a mere 1.8 million in 2010.
Positivism philosophy, deductive approach, descriptive design and survey research strategy has
been used. The researcher has selected 30 gym members and 5 managers from the fitness
industry of Singapore using random probability sampling technique. As the gym members and
the managers are the ones facing the issues in the fitness industry of Singapore to be retained,
surveying them has allowed the researcher to know the reason of increased employee turnover in
the industry and its impact on customer retention. Gap analysis and t-test analysis has been
conducted using SPSS for determining the difference between the expectation and perception of
the gym members and gym trainers for fitness industry in Singapore.
A gap score of -1.5333 indicates that the fitness organizations in Singapore to fulfill the
expectation of the gym members in terms of tangible dimensions and the t-test where the value
obtained is .000 that is less than .05. The largest gap in the Singapore fitness industry for the
gym member is for the tangible and assurance dimension that is -1.4000. However, the smallest
gap has been identified for responsiveness, that is -.6000. Regarding the t-test results, no
significant difference has been found between the perception and expectation for all the
dimensions of service quality, as the t-test values obtained are more than 0.05. Hence, the fitness

3DISSERTATION
industry of Singapore should aim towards mitigating the gap between expectation and perception
so that they can ensure effective and efficient service quality.

4DISSERTATION
Table of Contents
Chapter 1: Introduction....................................................................................................................7
1.0 Overview...........................................................................................................................7
1.1 Research aim..........................................................................................................................7
1.2 Research objectives...............................................................................................................7
1.3 Research questions.................................................................................................................8
1.4 Research hypotheses..............................................................................................................8
Chapter 2: Literature review............................................................................................................9
2.0 Overview................................................................................................................................9
2.1 Conceptual framework...........................................................................................................9
2.2 Fitness industry....................................................................................................................10
2.3 Concept of customer retention.............................................................................................10
2.4 Factors affecting customer retention...................................................................................11
2.5 Advantages of customer retention.......................................................................................12
2.6 Customer retention in fitness industry.................................................................................13
2.7 Customer retention strategies..............................................................................................14
2.8 SERVQUAL model of service quality................................................................................14
2.9 Concept of employee turnover.............................................................................................17
2.10 Factors affecting employee turnover.................................................................................17

5DISSERTATION
2.11 Causes of employee turnover in Singapore fitness industry..............................................18
2.12 Strategies for reducing employee turnover rate in Singapore...........................................19
2.13 Consequences of employee turnover in Singapore............................................................19
2.14 Impact of failure in customer retention on employee turnover.........................................20
2.15 Summary............................................................................................................................20
Research methodology...................................................................................................................22
3.0 Overview..............................................................................................................................22
3.1 Research outline...................................................................................................................22
3.2 Research philosophy............................................................................................................22
3.2.1 Reason for implementing positivism philosophy.........................................................23
3.3 Research approach...............................................................................................................23
3.3.1 Reason for implementing deductive approach.............................................................24
3.4 Research design...................................................................................................................24
3.4.1 Reason for implementing descriptive design................................................................25
3.5 Research strategy.................................................................................................................25
3.5.1 Reason for implementing survey research strategy......................................................25
3.6 Sampling technique and sample size...................................................................................26
3.6.1 Reason for implementing random probability sampling technique..............................26
3.7 Data collection process........................................................................................................27
3.7.1 Reason for implementing primary data collection process...........................................27

6DISSERTATION
3.8. Data analysis technique......................................................................................................28
3.8.1 Reason for implementing quantitative data analysis technique....................................28
3.8.2 Pilot study.........................................................................................................................29
3.9 Ethical considerations..........................................................................................................29
3.10 Accessibility issues............................................................................................................30
3.11 Summary............................................................................................................................30
Chapter 4: Data analysis................................................................................................................31
4.0 Overview..............................................................................................................................31
4.1 Descriptive analysis.............................................................................................................31
4.2 Inferential analysis...............................................................................................................35
4.3 Summary..............................................................................................................................42
Reflection section..........................................................................................................................44
References......................................................................................................................................49
Appendix 1.....................................................................................................................................60
Research Questionnaires for Gym Members.............................................................................60
Research Questionnaires for Managers.....................................................................................64

7DISSERTATION
Chapter 1: Introduction
1.0 Overview
The title of the research “Impact of failure in customer retention on trainers’ turnover in
Singapore’s fitness industry and the unintended consequences” was selected from Peter Senge
System Archetypes which is "Fixes that fail —A solution is rapidly implemented to address the
symptoms of an urgent problem." Failure in retaining the customers has resulted in minimized
profit that needs to be overcome by keeping low cost by letting go staff through turnover, more
staff turnover will make the organization lose the revenue through personal training. The quick
fixes intend to mitigate the unintended consequences that are difficult to understand in the
beginning but results in the symptoms of customer retention failure (Bernal-Garcia et al. 2014).
1.1 Research aim
The aim of the research is to analyze the failure in customer retention on trainers’
turnover in Singapore’s fitness industry that results in unintended consequences.
1.2 Research objectives
The objectives of the research are:
 To investigate ways the failure in customer retention has resulted in trainers’ turnover in
Singapore’s fitness industry
 To examine the various factors that has led to low customer loyalty in the various
organizations in Singapore’s fitness industry

8DISSERTATION
 To find out the unintended consequences those are faced by organizations in Singapore’s
fitness industry as a result of the repeated cycle of failure to retain client and trainers’
turnover
 To establish the various strategies that can be adopted by the fitness industry in Singapore
to control the failure to retain customers and maintain customer loyalty
1.3 Research questions
The research questions are:
 What is customer retention and what role does it play in fitness organizations?
 What factors lead to low rates of customer retention in the fitness industry in Singapore?
 What are the unintended consequences of the repeated cycle of failure to retain client and
trainers turnover?
 What strategies can be applied in the fitness industry to enhance customer loyalty and
hence promote customer retention?
1.4 Research hypotheses
The research hypotheses are:
H0: failure in customer retention results in an increase in the rates of trainer’s turnover in
Singapore’s fitness industry.
H1: low rates of customer retention in Singapore’s fitness industry arise from failure to exceed
customer expectations, failing loyalty programs, and lack of any unique relevance.
H2: repeated cycle of failure to retain client and trainers turnover result in the unintended
consequences of low profitability and business failure.

9DISSERTATION

10DISSERTATION
Customer retention
Communication
Consistency
Trust
Relationship
Good values
Sincere
Employee turnover
Chapter 2: Literature review
2.0 Overview
The literature review chapter is the basis of the overall study, as this chapter sheds light
on the concepts, factors, advantages and challenges for both the independent and the dependent
variable. Based on the identified variables, the overall literature review is structured and
conducted. For this study, the customer retention is identified as the independent variable and
employee turnover is the dependent variable. Based on the research aim and objectives, failing in
ensuring effective customer retention has resulted in increased in turnover rate of the trainers in
the fitness industry in Singapore by conducting extensive research on the impact of failure of
customer retention on employee turnover rate.
2.1 Conceptual framework

11DISSERTATION
Figure 1: Conceptual framework
(Source: Created by Author)
2.2 Fitness industry
Maintaining wellness and health by performing and conducting wide range of physical
and mental exercises comprises of the fitness industry. Over the past decades, the fitness industry
has gained huge popularity, as the majority of the population has become health conscious. A
large portion of the fitness industry comprises of the exercise studios and gyms. In addition to,
other franchises of the fitness industry includes personalized and specialized fitness lesson
(Bernal-Garcia et al. 2014). Being healthy is now trending because this lifestyle is much
appreciated for both personal and professional lifestyle. In a developing country like Singapore,
fitness and wellness is highly demanded due to the current trend of living a healthy lifestyle.
However, gap in terms of lesser number of fitness trainers is noticed in Singapore thereby,
resulting in increased demand of fitness gym in the country. For example, the demand has
increased to 2.5 million in 2015 from a mere 1.8 million in 2010 (Harvey, Vachhani and
Williams 2014). However, the fitness organizations are unable to retain the trainers that have
increased the employee turnover rate thereby, affecting the profitability of the business
organizations.
2.3 Concept of customer retention
Customer retention is the key aspect that determines the success of the business
organizations, as the companies can count the return of investment by considering the retained
customers. Effective customer retention is a bigger advantage and strategy of ensuring success
that attracting new customers. As commented by Degbey (2015), customer retention is defined
as the range of actions and activities undertaken by the business organizations to decrease the

12DISSERTATION
existing number of customers. However, as argued by Abdolvand, Baradaran and Albadvi
(2015), customer retention is defined as the strategies undertaken by the business organizations
for fulfilling the needs and demands of the customers thereby, ensuring customer loyalty. In
terms of the fitness industry, relationship between the trainers and the clients, their commitment
and frequency determines customer retention.
2.4 Factors affecting customer retention
The different factors affecting customer retention are value, communication, consistency,
relationship, sincerity and trust. It is important for the business organizations to retain the
customers for gaining competitive advantage and count on the return of investment. As
commented by Scherer, Wunderlich and Von Wangenheim (2015), it is important for the
business organization to develop an understanding of the customer needs and requirements and it
can be accomplished by ensuring effective communication. Effective communication helps in
building a strong bond between the company and the clients thereby, giving the ability to know
each other better. In this way the business organizations can excel in satisfying the customers
thereby, retaining them. However, as argued by Magatef and Tomalieh (2015), apart from
communication, consistency helps in effective customer retention. Ensuring consistency provide
an opportunity for the business organization to maintain standard service for the customers that
ensures long tern customer satisfaction.
Customer retention is also affected by trust between the customers and the business
organizations. According to Han and Hyun (2015), the trust of being served the best with
standard at reasonable and affordable cost helps in customers in developing trust on the business
organizations. The customers believe that the organizations have the ability to solve their issues
and fulfill their need and these believe results in effective customer retention. However, as

13DISSERTATION
criticized by Fullerton (2014), relationship with customers is the key factor that influences
customer retention. Positive relationship with the customers results in strong, healthy and
friendly bond with the business organization that enforces the customers to come back to the
same company without availing the alternatives in the market.
On the other hand, the business organizations need to show that they are sincere about
the customers. This makes the customers feel valued and significant for the business
organizations and the feeling of being prioritized other than anything affects customer retention.
However, on the contrary, offering good values to the customers affects customer retention
(Thaichon and Quach 2015). The fitness industry in Singapore lacks the effective execution of
the aforementioned factors between the trainers and the customers resulting in failure of
customer retention.
2.5 Advantages of customer retention
The business organizations en-cash the customers for gaining competitive advantage as
well as earning profit thereby, making customer retention as one of the topmost priorities for the
companies. One of the major advantages of customer retention is that it is more economic than
acquisition. As commented by Maldonado et al. (2015), business profits can be maximized by
decreasing and controlling cost for attracting new customers. Instead, the business organization
has to put effort in retaining the existing customers, as the business organizations are able to
count on the return on investment. The company has to spend five times more to attract new
customers than retaining the existing ones. However, as argued by Magatef and Tomalieh
(2015), customer retention offers better return compared to attracting new customers. This is
because the existing and retained customers buy 90% more frequently than the newly attracted

14DISSERTATION
customers. Thus, customer retention is one of the best ways of business growth and profit
maximization.
On the other hand, customer retention provides an opportunity for the business
organizations to stand out from the crowd and the fellow competitors. This is because the
business organizations have been able to create a unique image in the eye of the customers that is
difficult of being replaced (Jahromi, Stakhovych and Ewing 2014).
2.6 Customer retention in fitness industry
As the fitness industry is a customer centric industry, customer retention in this industry
is highly influenced by the relationship, commitment, trust and frequency between the fitness
trainers and the clients. Effective establishment of the aforementioned factors help the trainers
and the clients know each other better and have a healthy and positive fitness session (Yu et al.
2014). The three words that have to be clarified in the fitness industry in respect to customer
retention are attendance, drop-out and adherence. Attendance highlights the visiting frequency of
the clients in the gym. Drop-out signifies the clients to be a member of the gym but has stopped
visiting the gym. Lastly, adherence means continuous visiting of the clients and attending fitness
session scheduled with their respective trainers (Avourdiadou and Theodorakis 2014).
In the fitness industry, customer retention corresponds to client attendance because
irregular attendance results in loss of interest in staying fit and result in being a drop-out.
Increased drop-outs and absenteeism proposes that the clients are unhappy or not satisfied with
the gym contents in terms of the fitness session, the trainers and the gym facilities and equipment
(Chao 2015).

15DISSERTATION
2.7 Customer retention strategies
In spite of being highly beneficial and demanded, retaining customers are extremely
difficult for the business organizations. However, the business organizations are able to execute
and implement cost effective and successful strategies for retaining customers. As mentioned by
Retana, Forman and Wu (2015), one of the most effective ways of customer retention is by
offering adequate support. The customers should be able to communicate and seek help with the
business organization whenever they need and the business organizations should this in mind and
develop applications. Using the application will allow the customers to seek for support and
assistance. The agenda of the support services offered by the companies make sure that the
customers are comfortable and assure that help is available readily.
However, as argued by Hill and Alexander (2017), surveying the customers is the most
effective ways of retaining the customers. This is because surveying the customers at regular
interval enables the business organization to be aware if the customers are satisfied or not
thereby, taking measures appropriately. In order to do so, the business organizations can use
CRM software that helps in effective management of customer data along with tracking
customer needs and history efficiently.
2.8 SERVQUAL model of service quality
The most popular model for measuring the level of customer satisfaction in every service
industry is SERVQUAL model. The model is based on the client perspective on the the quality
of the service that highlights the comparison between the expected and received value along with
taking into account the gaps in the process of service provision. The SERVQUAL model is
judged on five dimensions that include responsiveness, tangibles, reliability, assurance and
empathy. According to the model, “E” stands for customer expectations and “P” stands of

16DISSERTATION
customer perception. Expectation of the customers is defined as the desires and wants of the
customers and the perception of the customers is defined as the experience of using the service
(Parasuraman, Zeithaml and Berry 1985). The basic formula for SERVQUAL model is Q = P –
E.
The model has seven major gaps based on the concept of service quality:
Gap 1: The first gap for this model is between the perception of the management and the
expectation of the customers. This gap exists if there are several layers between the customers
and the management as well as incorrect market research and in effective upward
communication. In Singapore fitness industry, the promises and sincerity by the management
towards the gym members is a gap.
Gap 2: The second gap exists between the perception of the management and the specification
of the services. This gap exists due to lack of adequate commitment towards service quality of
manager and employees, inadequate standardization of task and unsuitable goals. In Singapore
fitness industry, providing right service at the first time and keeping the promises of providing
timely service is a potential gap.
Gap 3: The third gap exists between specifications and delivery of the service. This gap arises as
the employees do not have a clear idea of their position and the roles and responsibilities for
them. Additionally, the gap exists when the employees are unable to perform their roles and
responsibilities in spite of knowing their roles. Moreover, inefficient team work and supervision
also leads to this gap in the service quality. In the Singapore fitness industry, trust, relationship
and sincerity are the gaps that the gym members experiences.

17DISSERTATION
Gap 4: The fourth gap exists between the external communication and the service deliveries.
The potential reason of this gap is over-promise to both internal and external customers along
with minimized horizontal communication. In the fitness industry of Singapore, communication
between the customers and the gym employees is ineffective that has led to the formation of the
gap.
Gap 5: The fifth gap is the expectation of the customers and their perception of what is being
delivered to them. This is said to be the most important gap and is considered as the main gap
that helps in measuring service quality. This gap is linked directly with the external customer and
is said to be the gap that influences the model. The business organizations aim towards satisfying
the diversified needs and expectations of the customers. However, the perception of the service is
not based solely on the service but other factors such as word of mouth and competition with the
competitors in the market. In the Singapore fitness industry, communication, trust, good values,
relationship, sincerity and relationship results in the increased gap between the customer
expectation and perception in terms of service (Parasuraman, Zeithaml and Berry 1985).
Gap 6: The sixth gap highlights between the perception of the employees and the expectation of
the customers. If the employees misunderstand or misinterpret the expectation of the customers,
it can affect the level of customer satisfaction negatively. In the case of Singapore fitness
industry, as mentioned in the previous gaps, ineffective communication has been a major
problem due to which the employees perceive the expectation of the customers incorrectly in
terms of service quality in the gym thereby, resulting in the gap (Parasuraman, Zeithaml and
Berry 1985).

18DISSERTATION
Gap 7: The seventh and the last gap is the difference between perception of the employees and
the management. This gap arises due to increased communication gap between the managers and
the employees. In the Singapore fitness industry, lack of effective communication between the
managers and employees has led to the gap thereby, resulting in increased trainer turnover rate
due to which the gym or the fitness organizations are failing to retain the customers.
2.9 Concept of employee turnover
The core meaning of turnover is to replace the existing employee with a new employee.
As commented by Kim (2014), employee turnover is defined as the measurement of the total
number of employees that leaves a business organization within a specific period of time.
However, as argued by Katsikea, Theodosiou and Morgan (2015), the employee turnover rate is
also defined as measuring the number of employees in the subcategories such as individual
departments or the demographic groups that has left an organization within a specific period of
time. Higher rate of employee turnover signifies lower employee tenure than the competitors of
the same industry.
2.10 Factors affecting employee turnover
The relationship between the employees and the business organizations flourishes when
the business organizations take an effort and gives the employees that enable them to bring out
the best from them. As mentioned by Huffman, Casper and Payne (2014), lack of adequate job
satisfaction results in higher employee turnover rate. It is necessary for the business organization
to develop and maintain the basic factors such as communication, positive working environment
and respect for each other in order to ensure employee satisfaction. However, this is where the
business organizations face issues, as factors ensuring job satisfaction differ for each employees
resulting in conflicts and leading to increased employee turnover rate. However, as argued by

19DISSERTATION
Pohler and Schmidt (2016), being paid less compared to the industry standard is also a major
reason of higher employee rate. Along with job satisfaction, fulfilling financial requirements and
living a standard life is a major reason for being employed. Thus, it is important for the business
organizations of pay their employees according to the industry standards. The employees can
keep them updated with the current industry standards by using websites such as Glassdor and
Payscale.
Another reason of higher employee turnover rate is impractical and and unfeasible
expectation from the employees by the business organizations. Expecting higher productivity is
normal and for that pushing the employees is justified. As mentioned by Zwane, Du Plessis and
Slabbert (2014), but this is only accepted when the process is done appropriately and ensuring
goal clarity. Pushing the employees extremely and setting up impractical expectations results in
disappointments thereby, resulted in increased employee turnover rate. However, as criticized by
Alam (2015), inadequate growth and recognition also results in increased employee turnover
rate because in this competitive world the employees always seek for career advancements. The
fitness industry of Singapore is facing higher rate of employee turnover as the aforementioned
factors are harming the industry.
2.11 Causes of employee turnover in Singapore fitness industry
Due to the adverse effect, the employee turnover rate is not desired by the business
organizations. One of the reasons of higher employee turnover rate in Singapore is retirement or
termination of the employees. As mentioned by Clausen, Tufte and Borg (2014), due to
increased age some of the employees in the fitness industry has retired and also some has been
terminated for their inadequacy as a trainer. Thus, increased retirement and termination has
resulted in increased employee turnover rate in the Singaporean fitness industry. However, as

20DISSERTATION
argued by Lu et al. (2016), being underpaid in the fitness industry is another reason for increased
employee turnover rate. The trainers are leaving the fitness job in Singapore because the salaries
given are inadequate. As a result, the trainers are unable to fulfill their financial responsibilities
and live a standard life.
2.12 Strategies for reducing employee turnover rate in Singapore
The fitness industry in Singapore has to develop strategies for reducing the employee
turnover rate. Taking into account, one of the major causes of employee turnover in Singapore,
offering competitive benefits and pay is a significant way of reducing employee turnover rate. As
commented by Laschinger et al. (2014), being paid adequately ensures financial stability as well
as ability to live a standard life for the individuals. Thus, the trainers in the fitness industry will
be compensated well for their efforts and dedication and with the adequate remuneration paid
they can lead a healthy livelihood and cover housing, food and utilities appropriately. However,
as argued by Inabinett and Ballaro (2014), appropriate recruitment for fitness trainers can help in
reducing the employee turnover rate. This is because hiring the employees with right attitude,
expertise, skills and behavior will help in effective relationship with the clients thereby, helping
in customer retention.
2.13 Consequences of employee turnover in Singapore
Increased rate of trainers turnover in the Singaporean fitness industry result in unintended
consequences. As commented by Nica (2016), unintended consequences of higher rate of
employee turnover are expense. Though employee turnover can be both voluntary and
involuntary, the fitness organizations in Singapore have to bear expenses for attracting and luring
new trainers for their organizations. Such expenses include replacement cost, advertisement and
selection and recruitment process. Additionally, the cost of both formal and informal training for

21DISSERTATION
the trainers is also an unintended consequence of higher trainer turnover rate. However, as
criticized by Memon et al. (2014), increased rate of employee turnover results in loss of
experienced and skilled trainers in the fitness industry of Singapore. As the fitness organizations
are unable to fulfill the needs and requirements of the trainers, they are losing experienced
trainers those are beneficial for customer retention for the gym. As a result, the fitness trainers
are opting for other areas from the industry due to which the fitness organizations in Singapore
have to recruit inexperienced and less skilled trainers.
2.14 Impact of failure in customer retention on employee turnover
Increased rate of employee turnover is noticed due to failure to retain the employees.
According to Goergen, O’Sullivan and Wood (2014), failure to retain customers’ results in
decreased productivity, as the loyal customers tend to spend more compared to the new
customers. As the result of inadequate customer retention, the fitness organizations are unable to
pay according to the standards of the industry in Singapore. As a result, the trainers have issues
in maintaining standard life and have a standard financial status. However, as argued by
Schaufeli and Taris (2014), lack of career growth in the fitness industry is a result of increased
turnover rate due to ineffective customer retention. Lack of loyal customers is hampering the
morale employees and demotivating them to work. As a result, the trainers of the fitness industry
in Singapore are moving to other industries for better career opportunities and growth.
2.15 Summary
Thus, it can be summarized that customer retention is hampered if the rate of employee
turnover is more for the business organizations. This is because the employees are the backbone
of the business organization that ensures a positive and healthy relationship between the
customers and the company. This provides an opportunity of knowing the customers well

22DISSERTATION
thereby, retaining them. The special bond and trust formed between the employees and the
customers influences the customers to visit the same organization continuously. However, the
fitness industry in Singapore is failing to retain their customers, as they have encountered higher
employee turnover rate, that is, the fitness trainers are leaving frequently.

23DISSERTATION
Research methodology
3.0 Overview
This chapter provides a brief overview of the various methodological tools that are in
existence that can be used while conducting the research. As a result, the researcher has been
able to define philosophies, approaches, designs, and strategies, sampling techniques, data
collection and analysis processes and justify the selection of the particular methods.
3.1 Research outline
For this research, positivism philosophy, deductive approach, descriptive design and
survey research strategy has been used. Based on the aforementioned methodologies, the
researcher has selected 30 gym members and 5 managers from the fitness industry of Singapore
using random probability sampling technique. As the gym members and the managers are the
ones facing the issues in the fitness industry of Singapore to be retained, surveying them has
allowed the researcher to know the reason of increased employee turnover in the industry and its
impact on customer retention. As a result, failure to retain customers signifies lower profit that is
forcing the trainers to leave, as they are unable to secure personal training business for them to
make money can be analyzed. In order to do so, primary data collection and quantitative data
analysis technique has been implemented. Gap analysis and t-test analysis has been conducted
using SPSS for determining the difference between the expectation and perception of the gym
members and gym trainers for fitness industry in Singapore.
3.2 Research philosophy
Selecting an appropriate research philosophy is essential as this enables appropriate
selection of data gathering and analysis. Positivism, interpretivism and pragmatism are the

24DISSERTATION
research philosophies that are used extensively. As mentioned by Mackey and Gass (2015),
observing and describing phenomenon from the perspective of the set objectives in known as
positivism philosophy. The data is gathered and observed logically by using factual observations.
As a result, positivism philosophy facilitates hypothesis testing. On the other hand,
interpretivism philosophy is defined as the difference of the humans in the society in terms of
their opinion and viewpoint. As a result, the interaction and interpretation of the humans in the
society are considered. Pragmatism philosophy highlights the combined characteristics of both
positivism and interpretivism philosophy (Taylor, Bogdan and DeVault 2015).
3.2.1 Reason for implementing positivism philosophy
Considering the aforementioned definitions, positivism philosophy is the most-suited for
this study. Firstly, this is most-suited because implanting positivism philosophy allows testing
the hypothesis set for the study, that is, whether customer retention and employee turnover are
associated or not. Secondly, this is the most appropriate philosophy when deductive approach is
being implemented. Thirdly, the implementation of positivism philosophy allows the researcher
to use factual knowledge and deduce quantifiable observations about customer retention and
employee turnover by enabling the use of statistical approach for analysis. Thus, the researcher
has been able to support the scientific observations by logical information about employee
turnover and customer retention (Lewis 2015).
3.3 Research approach
Research approach provides a framework that helps in referring to previous information
thereby, ensuring depth to the study. Both inductive and deductive approaches are used for
conducting a study. According to Smith (2015), for inductive approach, new theories and models
are induced based on the observations made. This method is time-consuming and error prone to

25DISSERTATION
some extent because incorrect observations might lead to incorrect development of theories and
models. However, on the other hand, deductive approach facilitates deducing suitable
observations by referring to previous information (Silverman 2016).
3.3.1 Reason for implementing deductive approach
Considering the aforementioned definitions, deductive approach is the most-suited for
this study. Firstly, deductive approach is the most suited approach when positivism philosophy
has been used. Secondly, the implementation of deductive approach enables the researcher to
refer to already existing information and data. As a result, the researcher has been able to refer to
past researches about customer retention and employee turnover, their concepts, factors, causes
and benefits (Flick 2015). In addition to, the use of deductive approach allowed the researcher to
transform general information to specific information by referring it to past researches conducted
in the same field, that is, past researches about customer retention and employee turnover. In
addition to, considering the past researches, the researcher has been able to analyze the factors
affecting customer retention and employee turnover critically (Smith 2015).
3.4 Research design
Appropriate research design allows suitable planning and structuring of the overall study
by ensuring research problems and questions are answered properly. Descriptive, explanatory
and exploratory are three commonly used research designs. According to Bresler and Stake
(2017), descriptive design displays the dual characteristics of both explanatory and exploratory
research designs due to which both exploring and explaining the research issues are possible.
Thus, it can be said that exploratory research design facilitates exploring the issues within the
study thereby, discussing it in the problem statement and the explanatory research design
highlights explaining the occurrence of the issues (Bauer 2014).

26DISSERTATION
3.4.1 Reason for implementing descriptive design
Considering the aforementioned definitions, descriptive design is the most-suited for this
study. Firstly, this design is most-suited because the researcher has been able to explore the
issues in terms of customer retention and higher rate of employee turnover in the fitness industry
of Singapore. Exploring the issues of customer retention and increased employee turnover rate
provides an opportunity for going to the depth of the occurrence of the issues in the Singaporean
fitness industry. Secondly, apart from exploring the issues, explanatory design enables the
researcher to propose the reasons that has resulted in customer retention and increased employee
turnover issues for the fitness industry of Singapore. Implementing each of the designs separately
only made things complex so descriptive design has been used as this highlighted both the
characteristics (Ledford and Gast 2018).
3.5 Research strategy
Research strategy provides an action plan for conducting the overall study and in doing
so most commonly used research strategies are action plan, case study, interview and survey. As
commented by Choy (2014), the concept of action research highlights producing results that add
value to the people for whom the research has being conducted. On the other hand, case study
research strategy highlights understanding relationships among the variables by referring to
similar studies. However, for survey, the researcher circulates questionnaire relevant to the
research topic and gather viewpoint from a large population whereas for interview the researcher
communicates personally for gathering data (Quinlan et al. 2019).
3.5.1 Reason for implementing survey research strategy
Considering the aforementioned definitions, survey research strategy is the most-suited
for this study. Firstly, this research strategy is the most suited because this enabled the researcher

27DISSERTATION
to circulate the questionnaire to a wide population and take their viewpoint. In this case, the
survey questionnaire has been developed and circulated through the online platform to all the
gym members of the fitness organizations in Singapore. The questionnaire developed comprises
on questions related to the current situation of the fitness industry of Singapore, customer
retention and increased rate of employee turnover in this sector. Collecting data from a large
population of the gym members results in reduced biasness thereby, uplifting the quality of the
research work. The gym members that are considered as failure to retain customers signify lower
profit that is forcing the trainers to leave, as they are unable to secure personal training business
for them to make money (Reynolds et al. 2014).
3.6 Sampling technique and sample size
Selecting an appropriate sampling technique is important, as they are the main and only
source of primary data gathered for researches. Out of the different types of sampling techniques,
non-probability and random probability sampling technique has been implemented. Simple
random probability sampling technique offers equal chances of individuals within a selected
population to be a part of the data collection process whereas non-probability sampling technique
does not offer equal opportunities. Instead, the researcher selects the sample for non-probability
sampling technique y judging their suitability (Dang and Pheng 2015).
3.6.1 Reason for implementing random probability sampling technique
Considering the aforementioned definitions, random probability sampling technique is
the most-suited for this study. Firstly, the use of this sampling technique is the most-suited
because this allowed the researcher to select the entire trainer population of Singapore as the
population size. All the trainers of the population had equal chances of participating in the survey
out of which the researcher selected only 30 gym members and 5 trainers as the sample

28DISSERTATION
randomly. 30 samples and 5 managers has been selected for this study because this is the least
number of samples that needs to be selected while doing SPSS that would help in understanding
customer retention failure due to increased trainers’ turnover rate in Singapore fitness industry.
This provides an opportunity to analyze whether the failure to retain customers signifies lower
profit that is forcing the trainers to leave, as they are unable to secure personal training business
for them to make money (Riedl, Davis and Hevner 2014).
3.7 Data collection process
The process of data collection is extremely crucial, as this helps in shaping and
authenticating the entire study. The only two data collection techniques are primary and
secondary data collection processes. As mentioned by Fletcher (2017), secondary data collection
process highlights gathering data from various secondary resources such as books, journals,
articles, online websites and other internet facilities. On the other hand, primary data collection
process highlights collecting recent and updated data from the population selected by the
researcher.
3.7.1 Reason for implementing primary data collection process
Considering the aforementioned definitions, primary data collection process is the most-
suited for this study. This is because primary data collection process allows the researcher to
collect data from the current gym members of the fitness industry in Singapore and know their
viewpoint and opinions in respect to impact of failure of customer retention in increased trainer
turnover rate in Singapore. Implementing primary data collection process facilitates the
researcher to know whether failure to retain customers signifies lower profit that is forcing the
trainers to leave, as they are unable to secure personal training business for them to make money
(McCusker and Gunaydin 2015).

29DISSERTATION
3.8. Data analysis technique
After data collection, analyzing the data using appropriate analysis techniques are
important as this enriches the quality of the study. The only two data analysis techniques are
qualitative and quantitative data analysis techniques where qualitative data analysis technique
emphasizes maintaining the quality of the collected data whereas quantitative data collection
technique emphasizes on the quantity or numerical for determining the data (Mukhopadhyay and
Gupta 2014).
3.8.1 Reason for implementing quantitative data analysis technique
Considering the aforementioned definitions, quantitative data analysis technique is the
most-suited for this study. This is because the use of quantitative data analysis technique allows
the researcher to consider the number of gym members agreeing or disagreeing to a single
question in the questionnaire. The collected has been analyzed by conducting co-relation and
regression technique by using SPSS software (Alvesson and Skoldberg 2017). The analysis of
the data has been obtained using SERVQUAL model followed by SPSS. The use of the
SERVQUAL model has helped in ensuring the expectation of the customers of the fitness
organization in Singapore. This use of this model helped in considering the expectation of the
customers under five dimensions that represent the quality of the service that is being offered.
The dimensions that define the expectations of the customers are measured under tangibles,
assurance, reliability, empathy and responsiveness. Gap analysis and t-test analysis has been
conducted using SPSS for determining the difference between the expectation and perception of
the gym members and gym trainers for fitness industry in Singapore.

30DISSERTATION
3.8.2 Pilot study
Pilot study is a method is a small-scale test used for a larger scale that facilitates
examining the feasibility of an approach that intends to be used in a large scale study. Pilot study
is the mini version of a full-scale study also known as pre-testing using survey or interview and
is a crucial element of a good study. Thus, pilot study has been conducted for this research also
provides additional depth and quality of the research.
3.9 Ethical considerations
Ensuring compliance with the research ethics is crucial in completion of the research
successfully. Below section mentions the important research ethics that is mandatory to follow.
 Data confidentiality is one of the significant research ethics that has to be followed.
According to this ethics, the researcher is prohibited from disclosing the identity as well
as the data shared by them without their consent thereby, mitigating the chances of
conflicts and misunderstandings.
 Another important data ethics is willing participation from the selected samples. The
researcher does not have the authority to force the selected samples to be a part of the
data collection process instead the samples have to participate willingly. In order to do so,
the researcher has made the participants sign the consent form.
 Collecting data from authentic sources is also a significant research ethics as this
enhances the quality of the research. In addition to, the authenticity of the data used in the
research can act as a reliable and valid source of data for future researches (Zimmer and
Proferes 2014).

31DISSERTATION
 Also, manipulation of data is against the research ethics and the researcher is bound the
present the data in its original form and support and justifies that with relevant
information.
 Moreover, using the collected data for commercial purpose is against the research ethics
and the the researcher needs to ensure the the information is used only for academic
purpose (Walliman 2017).
3.10 Accessibility issues
Conducting the research had some challenges that gave rise to accessibility issues. One of
the accessibility issues is time. Lack of adequate time enforced the researcher to rush the
research. As a result, the researcher was unable to meet with the supervisor and get regular
updates in order to know whether the research is heading in the right direction. Another
accessibility issue faced by the researcher is budget. The researcher had limited budget for
completing the research due to which the researcher was unable access some journals and articles
that contained valuable information as accessing those information required paying subscription
fees.
3.11 Summary
Thus, in this chapter, it can be summarized that the methods selected for this study are
appropriate and helped in completion of the research successfully. Undertaking the
aforementioned methodological tools help in determining the impact of failure to retain
customers is affecting the trainer turnover in the fitness industry of Singapore.

32DISSERTATION
Chapter 4: Data analysis
4.0 Overview
In this data analysis chapter, the data collected by using the research methods selected in
the previous chapter is analyzed. The aim of the data analysis is determine the expectation of the
gym members from the fitness organizations in Singapore. Over the past decade an increased
interest of exercise and gym facilities has been encountered in Singapore. However, decrease in
the number of permanent gym customers has been noticed in Singapore. Therefore, the data
analysis is conducted in order to know the how the failure of retaining permanent gym members
is affecting the trainers’ turnover rate in the fitness industry in Singapore.
4.1 Descriptive analysis
For gym members

33DISSERTATION
Figure 1: Demographic analysis for Gym members
(Source: Created by Author)
From the results presented in the above section, it can be inferred that the majority of the
gym members of Singapore gym industry are female aged 21-30 years those are professional and
student having a postgraduate degree.

34DISSERTATION
It can be seen that the majority of the gym member population in the Singapore fitness
industry are female. This can be interpreted in the way that the female population of the country
is more concerned about health and fitness compared to the male population of the country. The
female of Singapore those are active members of the gym industry are aged 21-30 years. The
reason that increased number of gym members belong to this age group because they are
supposed to be more fitness centric due to the occupation they are associated with in their life.
Being a student and a professional, fitness is of utmost significance, as this provides them an
opportunity to be fit and highly productive both at work and at studies.

35DISSERTATION
For trainers
Figure 2: Demographic analysis for gym trainers
(Source: Created by Author)

36DISSERTATION
From the data presented in the above section, it can be said that all the trainers in the gym
that took the survey are male aged 31-40 years working as a fitness manager for 3-5 years. The
gym members of the Singapore fitness industry have a postgraduate educational qualification.
From the data obtained from the above mentioned diagram, it can be inferred that the
majority of the gym members are male belonging to the age group 31-40 years. As working in
the fitness industry and having a career in the fitness industry is more preferred by the male
population, the number of responses in the survey is justified. The employment duration of the
fitness trainers in the Singapore fitness industry is only 3-5 years that is comparatively less.
Thus, it suggests that the rate of trainer turnover in the Singapore fitness industry is more
because of several issues. The issues that trainers encounter might be lack of job satisfaction,
adequate salary and career growth.
4.2 Inferential analysis
The five dimensions of the SERVQUAL model is analyzed in this section with the aim of
understanding the difference between employee expectation and perception in the Singapore
fitness industry. The mean score on expectations and perceptions scales for each service quality
dimension was computed, i.e. Perception score – Expectation score. Positive scores show better
than expected service while negative scores show poor quality. A zero score shows that quality is
satisfactory. A Paired t-test was performed to test the significant mean difference between
outpatients‘expectations and perceptions of service quality on all of the 21 attributes that
comprises the SERVQUAL model.
For gym members

37DISSERTATION
Expectation Perception
Gap t-test
Mean SD Mean SD
Sig.
(2
tailed
)
Tangible_Dimension
4.133
3 0.47222 2.6 1.65258
-
1.5333 4.716
.000
Reliability_Dimension 4.2 0.48423
2.716
7 1.66445
-
1.4833 4.81
.000
Responsiveness_Dimensio
n
4.116
7 0.55216 2.7 1.48904
-
1.4167 4.975
.000
Responsiveness_Dimensio
n
4.166
7 0.735
2.766
7 1.59056 -1.4 4.435
.000
Empathy_Dimension
4.066
7 0.58329 2.8 1.42393
-
1.2667 4.829
.000
Table 1: Expectation and Perception test for Gym members of Singapore
The data obtained n the above table can be interpreted in three parts:
Expectations: Table 1 indicates that the means for all the 5 dimensions in the expectation score
of fitness industry of Singapore for the gym members were above 4.0 where the highest was 4.2
and the lowest is 4.06. The highest score was for the tangible dimension and the lowest score
was for the empathy dimension.
Perceptions: Table 1 indicates that all the 5 dimensions in the perception score for the gym
members in Singapore were above 2.5 where the highest score is 2.8 and the lowest score is 2.6.
The highest perception score obtained is for empathy dimension and the lowest perception score
obtained is for tangible dimension.
Gap scores: The largest gap in the Singapore fitness industry for the gym member is for the
tangible dimension, -1.5333. However, the smallest gap has been identified for -1.2667.
Regarding the t-test results, significant difference has been found between the perception and
expectation for all the dimensions of service quality.

38DISSERTATION
The five dimensions of the service quality are designated by in terms of tangibles,
reliability, responsiveness, assurance and empathy. From the information presented by Bernal-
Garcia et al. (2014) and Harvey, Vachhani and Williams (2014) it can be seen that the demand
has increased to 2.5 million in 2015 from a mere 1.8 million in 2010 in the Singapore fitness
industry. This signifies increased competition among the fitness organizations in the country that
highlights the necessity of retaining customers for individual fitness organizations. Scherer,
Wunderlich and Von Wangenheim (2015), Magatef and Tomalieh (2015), Han and Hyun (2015),
Fullerton (2014) and Thaichon and Quach 2015 highlights customer retention is highly
dependent on the factors such as communication, consistency, trust, relationship, good values.
Therefore, upon visiting a gym, the female customers expect the organizations to fulfill their
needs, desires and demands in terms of tangibility, reliability, responsiveness, assurance and
empathy.
The SERVQUAL model by Parasuraman, Zeithaml and Berry 1985 highlights the
potential gaps that occur when a customer visits a service provider that results in the difference
between their expectation and perception. The results obtained from the table highlights that the
majority of the gap has been identified in terms of the tangible dimension. The tangible dimesion
for the gym members was determined in terms of the use of modern equipment, visually
appealing facilities, neat and tidy appearance and providing detailed information, products and
packages.
A gap score of -1.5333 indicates that the fitness organizations in Singapore to fulfill the
expectation of the gym members in terms of tangible dimensions. The female gym users are
coming in the fitness organizations in Singapore with a high expectation of modern day gym
equipment that would allow them to ensure productive and efficient exercise. Additionally, the

39DISSERTATION
female employees expect that the facilities in the gym will be visually appealing, as that would
encourage and influence them to exercise hard and visit the gym in Singapore regularly. The
female gym users also expects the gym trainers to be neat and tidy, as it is a matter of health and
hygiene followed by expecting adequate information, products and packages. However, the gym
organizations in Singapore are failing in ensuring the tangible dimensions successfully that is
affecting their perception about the fitness industry of Singapore.
Gap 3, gap 4 and gap 5 mentioned by Parasuraman, Zeithaml and Berry (1985) in the
SERVQUAL model supports that difference between the customer expectation and perception in
affects the service quality offered by the service provider. This information in the literature
review is supported by the result obtained in the t-test where the value obtained is .000 that is
less than .05. Additionally, significant difference has been found between the expectation and
perception for the remaining four dimensions that ensures effective service quality for the fitness
organization in Singapore. This can be confirmed by referring to the values to the t-test, as the
results obtained are .000 that is less than .05. Lowest gap score has been obtained in the empathy
dimension that indicates that the gym organizations are having empathetic employees. But
having empathetic employees for providing service is not enough for the female employee of
Singapore and hence, the fitness organizations need to work on their tangible aspect for
improving service quality. Therefore, in this case, the H1 hypothesis is accepted that states low
rates of customer retention in Singapore’s fitness industry arise from failure to exceed customer
expectations, failing loyalty programs, and lack of any unique relevance.
Yu et al. (2014), Avourdiadou and Theodorakis (2014) and Chao (2015) states n the
literature review section that retaining the customers in the fitness industry is necessary because
it provides a career means and stable earnings for the gym managers or fitness trainers. Similar is

40DISSERTATION
the case of Singapore fitness industry that needs to emphasize on building permanent customers
by increasing customer retention that would affect the rate of trainer turnover for the
Singaporean fitness industry. Therefore, the fitness industry should focus on minimizing the
difference between the customer expectation and perception for ensuring effective service
quality.
For gym trainers1039
Expectation Perception
Gap t-test
Mean SD Mean SD
Sig.
(2
tailed)
Tangible_Dimension 4.0000 .70711 2.6000 .54772 -1.4000 3.500 .025
Reliability_Dimension 3.2000 .83666 2.0000 .70711 -1.2000 3.207 .33
Responsiveness_Dimensio
n
2.8000 1.30384 2.2000 .83666
-0.6000
1.177 .305
Assurance_Dimension 4.0000 0.00000 2.6000 1.51658 -1.4000 2.064 .108
Empathy_Dimension 3.4000 1.51658 2.6000 1.51658 -0.8000 .590 .587
Table 2: Expectation and Perception for Gym Trainers in Singapore
The data obtained n the above table can be interpreted in three parts:
Expectations: Table 1 indicates that the means for all the 5 dimensions in the expectation score
of fitness industry of Singapore for the gym members were above 2.0 where the highest was 4.0
and the lowest is 2.8. The highest score was for the tangible dimension and the lowest score was
for the responsiveness dimension.
Perceptions: Table 1 indicates that all the 5 dimensions in the perception score for the gym
members in Singapore were above 2.0 where the highest score is 2.6 and the lowest score is 2.2.
The highest perception score obtained is for tangibility, reliability, assurance and empathy
dimension and the lowest perception score obtained is for responsiveness dimension.

41DISSERTATION
Gap scores: The largest gap in the Singapore fitness industry for the gym member is for the
tangible and assurance dimension that is -1.4000. However, the smallest gap has been identified
for responsiveness, that is -.6000. Regarding the t-test results, no significant difference has been
found between the perception and expectation for all the dimensions of service quality, as the t-
test values obtained are more than 0.05.
The five dimensions of the service quality are designated by in terms of tangibles,
reliability, responsiveness, assurance and empathy. From the information presented by Bernal-
Garcia et al. (2014) and Harvey, Vachhani and Williams (2014) it can be seen that the demand
has increased to 2.5 million in 2015 from a mere 1.8 million in 2010 in the Singapore fitness
industry. This signifies increased competition among the fitness organizations in the country that
highlights the necessity of retaining customers for individual fitness organizations. Taking into
account, the increased demand of fitness industry, it is necessary that the fitness organizations in
Singapore have adequate, trained and skilled trainers those have the potential of meeting the
customer expectation.
The results obtained in the above table highlights that maximum gap score has been
obtained in terms of tangibility and assurance. Parasuraman, Zeithaml and Berry (1985) in the
SERVQUAL model mention that service quality is compromised when the gap between
management and the employees broadens. This gap arises arises due to increased communication
gap between the managers and the employees. In the Singapore fitness industry, lack of effective
communication between the managers and employees has led to the gap. For instance, the
employees of the fitness industry feel that the gym should have up-to-date equipments those are
visually appealing, highlights a neat and tidy appearance and comfortable work environment.

42DISSERTATION
On the other hand, the maximum gap score results has been identified in the assurance
dimension, as the employees feel increased numer of customers helps in building confidence in
them and make them feel that they are highly trusted by the customers. The employees also
expect that the customers visiting the gym are courteous and feel that they have answers to the
questions of the customer no matter what is the question. However, the interpretation is different
from the expectation of the employees. As the customers visiting the gym are not satisfied with
the tangibility aspect of the gym, they show minimized trust and courtesy towards the gym
trainers. As a result, the gym trainers feel that they are not trusted by the customers visiting the
gym. This questions the ability and confidence of the gym trainers while ensuring effective
service quality in the Singapore fitness industry. Due to this, the rate of trainer turnover is
increasing in the Singapore Fitness industry.
Kim (2014) and Katsikea, Theodosiou and Morgan (2015) presents different concept of
employee turnover but both the concepts highlight that incrased rate of employee turnover is not
beneficial for business organizations in any sector. Similar is the case of Singapore fitness
industry where higher ate of employee turnover is affecting the organization as a whole. Casper
and Payne (2014), Pohler and Schmidt (2016), Zwane, Du Plessis and Slabbert and Alam (2015)
in the literature review section states that lack of adequate job satisfaction, impractical and and
unfeasible expectation, inadequate growth and recognition and paid less are the major reasons
that results in higher employee turnover rate. If the factors mentioned are to be considered is
respect to the present condition of the gym managers in Singapore, it can be said that lack of
confidence and knowledge to handle the customers are evident from the results obtained through
the expectation and perception analysis. Additionally, the present gym managers of the
Singapore fitness industry lack customer trust and courtesy. Both the aforementioned issues

43DISSERTATION
indicate lack of career growth and job satisfaction for the gym managers that is affecting the rate
of trainers’ turnover directly. On the other hand, as the customer retention capability of the
fitness organizations in Singapore is less, the management are facing issues in paying the
trainers’ appropriately and on time. As a result, the gym trainers are finding it difficult to
maintain the standard of living in a country like Singapore.
As mentioned by Pohler and Schmidt (2016) in the literature review section, satisfied
workforce is necessary for any business organization in order to ensure effective and excellent
service quality. In the case of the Singapore fitness industry, the gym managers or the fitness
managers lack adequate job satisfaction because the customers or the gym members do not treat
them with respect. According to the SERVQUAL model, it is necessary for the Singapore fitness
industry to minimize the difference between employee expectation and perception, as it is having
a negative impact on the rate of trainers’ turnover.
4.3 Summary
Therefore, from the results and interpretation presented in this chapter, it can be
summarized that it is necessary for the Singapore fitness industry to take care of both the
customers and the gym trainers, as both are related to each other. A gap score of -1.5333
indicates that the fitness organizations in Singapore to fulfill the expectation of the gym members
in terms of tangible dimensions and the t-test where the value obtained is .000 that is less
than .05. The largest gap in the Singapore fitness industry for the gym member is for the tangible
and assurance dimension that is -1.4000. However, the smallest gap has been identified for
responsiveness, that is -.6000. Regarding the t-test results, no significant difference has been
found between the perception and expectation for all the dimensions of service quality, as the t-
test values obtained are more than 0.05. Hence, the fitness industry of Signpaore should aim

44DISSERTATION
towards mitigating the gap between expectation and perception so that they can ensure effective
and efficient service quality.

45DISSERTATION
Reflection section
From the findings of the above section, it can be said that service is crucial in retaining
the customers for an organization. The findings of the study reveal that the service provided in
the fitness organizations or gym in Singapore is what attracts the customers for undertaking the
service fitness purposes. It includes the tangibles, reliability, responsiveness, assurance and
empathy found the fitness sector of Singapore. Firstly, the findings of the research is based on a
particular demographic group whose service perception and expectation has been studied by
investigating the failure in customer retention due to increased increased trainers’ rate in
Singapore. It can be seen that most of the majority of the gym members of Singapore gym
industry are female aged 21-30 years those are professional and student having a postgraduate
degree.
They are mostly professional who are continuing with their education and are students.
This has allowed them in joining the gym so that they can maintain a healthy body. Thus, in the
future research can be conducted emphasizing on another set of demographic factors. This is
because another set of customer demographics will not have similar service perception and
expectation in terms of the service provided in the fitness organizations or gyms in Singapore.
From the difference in service perception and expectation, it can be said future researches can be
conducted by focusing on any particular aspect of the service quality provided in fitness
organizations in Singapore.
On the other hand, this study emphasizes on the overall service quality provided by the
fitness centre that the selected population of the study is currently enrolled at thereby, making the
study extremely broad. Thus, in the future study can be conducted focusing on only one aspect of

46DISSERTATION
the service quality that will help in narrowing down the broadness of the study. This will provide
an opportunity for understanding the factors that helps in retaining the customers more
effectively and efficiently. As a result, future research can dig deep on each of the features of the
service qualities that are expected by customers and influences them in making their association
longer with fitness organizations in Singapore.
The highest expectation score was for the tangible dimension and the lowest score was
for the empathy dimension. The highest perception score obtained is for empathy dimension and
the lowest perception score obtained is for tangible dimension. The largest gap in the Singapore
fitness industry for the gym member is for the tangible dimension, -1.5333. As a result it can be
inferred that the gym users come in with the expectation of being understood their health and
physical requirement thereby, improving physical well-being. Significant difference has been
found between the expectation and perception for the remaining four dimensions that ensures
effective service quality for the fitness organization in Singapore. This can be confirmed by
referring to the values to the t-test, as the results obtained are .000 that is less than .05. Lowest
gap score has been obtained in the empathy dimension that indicates that the gym organizations
are having empathetic employees. Thus, in the future research can be conducted by focusing the
basic specific needs that gym users have when it comes to personal training. Additionally, the
preferable working hours of the staffs or the trainers can also be analyzed that would allow them
to provide uninterrupted service to the gym users.
The highest expectation score was for the tangible dimension and the lowest score was
for the responsiveness dimension. The highest perception score obtained is for tangibility,
reliability, assurance and empathy dimension and the lowest perception score obtained is for
responsiveness dimension. The largest gap in the Singapore fitness industry for the gym member

47DISSERTATION
is for the tangible and assurance dimension that is -1.4000. However, the smallest gap has been
identified for responsiveness, that is -.6000. Regarding the t-test results, no significant difference
has been found between the perception and expectation for all the dimensions of service quality,
as the t-test values obtained are more than 0.05.
One of the reasons of strong relationship is that the sincerity of the trainers’ influences
them to perform services at the right time thereby, ensuring prompt help to the users while
exercising. As a result, the gym users get full attention that helps in fulfilling their expectation.
However, failure in doing so results in unintended consequences such as increased trainer
turnover rate that affects customer retention. As the result, the gym members will have a bad
impression as they no longer see regular staff which give them doubts and new staff may not be
able to provide the same service as the old staff. Thus, in the future research can be conducted in
understanding the potential reasons that is resulting in increased employee turnover rate by
referring to issues in the fitness industry in Singapore and in the world.
From the results obtained in the data analysis, it can be said that customers’ retention is
highly dependent on the rate of employee turnover. As understood, the fitness industry is highly
customer centric and establishing a strong relationship between the staffs and the users is
essential. Building a strong bond facilitates the association for the customer for long period, as
the customers slowly gets comfortable and develops trust and confidence on the organization.
When the customers or in this case the gym users see or find that the employees with whom they
were comfortable are no more in the organization, it affects their interest of being associated with
the organization. When the gym users find that the trainers’ they are comfortable with are no
more working in the gym, it affect their trust, interest and morale of coming to the gym. As a
result, the organizations fail in retaining the customers. Thus, in the future, research can be

48DISSERTATION
conducted in understanding and assessing the relationship between the gym users and the trainers
in successful customer retention.
Thus, the results obtained from the survey questionnaire for the gym users highlights that
the null hypothesis is rejected because it has been found that increased employee turnover rate
results in customer retention failure. It can be stated that repeated failure to retain the employees
has resulted in increased employee turnover rate due to which the gym users could not be
retained. As a result, the fitness organizations in Singapore needs to emphasize on developing
adequate and suitable working conditions for the staffs that would help in reducing the employee
turnover rate that would in turn influence successful customer retention.
The gym managers were surveyed separately that highlighted positive and strong
relationship mentioning that the gym managers provides services in requited time and when they
promise doing something within a particular time, they do so. Successfully delivering promise
within the set time has a positive influence on the gym staffs and highlights their satisfaction and
motivation at work. Fulfillment of promise helps in reduced employee turnover rate because as
the needs and expectations of the employees are taken care of appropriately, they give efficient
and effective effort towards their roles and responsibilities. The level of satisfaction at workplace
due to fulfillment of promise ensures better service for the employees. Thus, in the future,
research can be conducted by focusing on the promises that matters for the employees the most
and are necessary for retaining them thereby, findings ways for reducing the rate of employee
turnover.
Over the past decade an increased interest of exercise and gym facilities has been
encountered in Singapore. However, decrease in the number of permanent gym customers has

49DISSERTATION
been noticed in Singapore. Therefore, the data analysis is conducted in order to know the how
the failure of retaining permanent gym members is affecting the trainers’ turnover rate in the
fitness industry in Singapore. The SERVQUAL model by Parasuraman, Zeithaml and Berry
1985 supports that difference between the customer expectation and perception in affects the
service quality offered by the service provider.
From the results and interpretation presented in this chapter, it can be summarized that it
is necessary for the Singapore fitness industry to take care of both the customers and the gym
trainers, as both are related to each other. A gap score of -1.5333 indicates that the fitness
organizations in Singapore to fulfill the expectation of the gym members in terms of tangible
dimensions and the t-test where the value obtained is .000 that is less than .05. The largest gap in
the Singapore fitness industry for the gym member is for the tangible and assurance dimension
that is -1.4000. However, the smallest gap has been identified for responsiveness, that is -.6000.
Regarding the t-test results, no significant difference has been found between the perception and
expectation for all the dimensions of service quality, as the t-test values obtained are more than
0.05. Hence, the fitness industry of Singapore should aim towards mitigating the gap between
expectation and perception so that they can ensure effective and efficient service quality.

50DISSERTATION
References
Abdolvand, N., Baradaran, V. and Albadvi, A., 2015. Activity–level as a link between customer
retention and consumer lifetime value. Iranian Journal of Management Studies, 8(4), pp.567-
587.
Alam, S.M.T., 2015. Factors affecting job satisfaction, motivation and turnover rate of medical
promotion officer (MPO) in pharmaceutical industry: a study based in Khulna city. Asian
Business Review, 1(2), pp.126-131.
Alvesson, M. and Sköldberg, K., 2017. Reflexive methodology: New vistas for qualitative
research. Sage.
Avourdiadou, S. and Theodorakis, N.D., 2014. The development of loyalty among novice and
experienced customers of sport and fitness centres. Sport Management Review, 17(4), pp.419-
431.
Bauer, G.R., 2014. Incorporating intersectionality theory into population health research
methodology: Challenges and the potential to advance health equity. Social science &
medicine, 110, pp.10-17.
Bernal-Garcia, A., Fernandez-Gavira, J., Garcia-Fernandez, J. and Velez-Colon, L., 2014.
Analysis of existing literature on management and marketing of the fitness centre industry. South
African Journal for Research in Sport, Physical Education and Recreation, 36(3), pp.75-91.
Bresler, L. and Stake, R.E., 2017. Qualitative research methodology in music education.
In Critical Essays in Music Education (pp. 113-128). Routledge.

51DISSERTATION
Chao, R.F., 2015. The impact of experimental marketing on customer loyalty for fitness clubs:
Using brand image and satisfaction as the mediating variables. The Journal of International
Management Studies, 10(2), pp.52-60.
Choy, L.T., 2014. The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of Humanities
and Social Science, 19(4), pp.99-104.
Clausen, T., Tufte, P. and Borg, V., 2014. Why are they leaving? Causes of actual turnover in the
D anish eldercare services. Journal of nursing management, 22(5), pp.583-592.
Dang, G. and Pheng, L.S., 2015. Research methodology. In Infrastructure Investments in
Developing Economies (pp. 135-155). Springer, Singapore.
Degbey, W.Y., 2015. Customer retention: A source of value for serial acquirers. Industrial
Marketing Management, 46, pp.11-23.
Fletcher, A.J., 2017. Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology, 20(2), pp.181-194. Flick, U.,
2015. Introducing research methodology: A beginner's guide to doing a research project. Sage.
Fullerton, G., 2014. The moderating effect of normative commitment on the service quality-
customer retention relationship. European Journal of Marketing, 48(3/4), pp.657-673.
Goergen, M., O'Sullivan, N. and Wood, G., 2014. The consequences of private equity
acquisitions for employees: new evidence on the impact on wages, employment and
productivity. Human Resource Management Journal, 24(2), pp.145-158.

52DISSERTATION
Han, H. and Hyun, S.S., 2015. Customer retention in the medical tourism industry: Impact of
quality, satisfaction, trust, and price reasonableness. Tourism Management, 46, pp.20-29.
Harvey, G., Vachhani, S.J. and Williams, K., 2014. Working out: aesthetic labour, affect and the
fitness industry personal trainer. Leisure studies, 33(5), pp.454-470.
Hill, N. and Alexander, J., 2017. The handbook of customer satisfaction and loyalty
measurement. Routledge.
Huffman, A.H., Casper, W.J. and Payne, S.C., 2014. How does spouse career support relate to
employee turnover? Work interfering with family and job satisfaction as mediators. Journal of
Organizational Behavior, 35(2), pp.194-212.
Inabinett, J.M. and Ballaro, J.M., 2014. Developing An Organization By Predicting Employee
Retention By Matching Corporate Culture With Employee's Values: A Correlation
Study. Organization Development Journal, 32(1).
Jahromi, A.T., Stakhovych, S. and Ewing, M., 2014. Managing B2B customer churn, retention
and profitability. Industrial Marketing Management, 43(7), pp.1258-1268.
Katsikea, E., Theodosiou, M. and Morgan, R.E., 2015. Why people quit: Explaining employee
turnover intentions among export sales managers. International Business Review, 24(3), pp.367-
379.
Kim, N., 2014. Employee turnover intention among newcomers in travel industry. International
Journal of Tourism Research, 16(1), pp.56-64.

53DISSERTATION
Laschinger, H.K.S., Wong, C.A., Cummings, G.G. and Grau, A.L., 2014. Resonant leadership
and workplace empowerment: The value of positive organizational cultures in reducing
workplace incivility. Nursing Economics, 32(1), pp.5-18.
Ledford, J.R. and Gast, D.L., 2018. Single case research methodology: Applications in special
education and behavioral sciences. Routledge.
Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five
approaches. Health promotion practice, 16(4), pp.473-475.
Lu, L., Lu, A.C.C., Gursoy, D. and Neale, N.R., 2016. Work engagement, job satisfaction, and
turnover intentions: A comparison between supervisors and line-level employees. International
Journal of Contemporary Hospitality Management, 28(4), pp.737-761.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Magatef, S.G. and Tomalieh, E.F., 2015. The impact of customer loyalty programs on customer
retention. International Journal of Business and Social Science, 6(8), pp.78-93.
Maldonado, S., Flores, Á., Verbraken, T., Baesens, B. and Weber, R., 2015. Profit-based feature
selection using support vector machines–General framework and an application for customer
retention. Applied Soft Computing, 35, pp.740-748.
McCusker, K. and Gunaydin, S., 2015. Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion, 30(7), pp.537-542.

54DISSERTATION
Memon, M.A., Salleh, R., Baharom, M.N.R. and Harun, H., 2014. Person-Organization Fit and
Turnover Intention: The Mediating Role of Employee Engagement. Global Business &
Management Research, 6(3).
Mukhopadhyay, S. and Gupta, R.K., 2014. Survey of qualitative research methodology in
strategy research and implication for Indian researchers. Vision, 18(2), pp.109-123.
Nica, E., 2016. Employee voluntary turnover as a negative indicator of organizational
effectiveness. Psychosociological Issues in Human Resource Management, 4(2), p.220.
Parasuraman, A., Zeithaml, V.A. and Berry, L.L., 1985. A conceptual model of service quality
and its implications for future research. the Journal of Marketing, pp.41-50. Retrieved from:
Pohler, D. and Schmidt, J.A., 2016. Does Pay‐for‐Performance Strain the Employment
Relationship? The Effect of Manager Bonus Eligibility on Nonmanagement Employee
Turnover. Personnel Psychology, 69(2), pp.395-429.
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South Western
Cengage.
Reynolds, D., Creemers, B., Nesselrodt, P.S., Shaffer, E.C., Stringfield, S. and Teddlie, C. eds.,
2014. Advances in school effectiveness research and practice. Elsevier.
Riedl, R., Davis, F.D. and Hevner, A.R., 2014. Towards a NeuroIS research methodology:
intensifying the discussion on methods, tools, and measurement. Journal of the Association for
Information Systems, 15(10), p.I.

55DISSERTATION
Schaufeli, W.B. and Taris, T.W., 2014. A critical review of the Job Demands-Resources Model:
Implications for improving work and health. In Bridging occupational, organizational and
public health (pp. 43-68). Springer, Dordrecht.
Scherer, A., Wünderlich, N.V. and Von Wangenheim, F., 2015. The Value of Self-Service:
Long-Term Effects of Technology-Based Self-Service Usage on Customer Retention. Mis
Quarterly, 39(1).
Silverman, D. ed., 2016. Qualitative research. Sage.
Smith, J.A. ed., 2015. Qualitative psychology: A practical guide to research methods. Sage.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Thaichon, P. and Quach, T.N., 2015. From marketing communications to brand management:
Factors influencing relationship quality and customer retention. Journal of Relationship
Marketing, 14(3), pp.197-219.
Walliman, N., 2017. Research methods: The basics. Routledge.
Yu, H.S., Zhang, J.J., Kim, D.H., Chen, K.K., Henderson, C., Min, S.D. and Huang, H., 2014.
Service quality, perceived value, customer satisfaction, and behavioral intention among fitness
center members aged 60 years and over. Social Behavior and Personality: an international
journal, 42(5), pp.757-767.
Zimmer, M. and Proferes, N.J., 2014. A topology of Twitter research: disciplines, methods, and
ethics. Aslib Journal of Information Management, 66(3), pp.250-261.

56DISSERTATION
Zwane, F.N., Du Plessis, L. and Slabbert, E., 2014. Analysing employers' expectations of
employee skills in the South African tourism industry. SA Journal of Human Resource
Management, 12(1), pp.1-9.

57DISSERTATION
Appendix 1
Research Questionnaires for Gym Members
These questionnaires are part of a research project and the study is to assess service quality and
customer satisfaction using SERVQUAL model.
Section A: Demographics Profile
1. Gender:
□ (1) Male
□ (2) Female
2. Age Group:
□ (1) 18 yrs to 20 yrs
□ (2) Between 21 yrs to 30 yrs
□ (3) Between 31 yrs. to 40 yrs
□ (4) Between 41rs to 50 yrs
□ (5) Greater than 50 yrs
3. Educational Qualification:
□ (1) N’Level / O’Level /A’Level
□ (2) Undergraduate
□ (3) Postgraduate
□ (4) Diploma
□ (5) Others If (5) Others, Please Specify ___________________________.

58DISSERTATION
4. Occupation:
□ (1) Entrepreneur
□ (2) Professional
□ (3) Student
□ (4) Housewife
□ (5) Administration
□ (6) Civil Servant
□ (7) Lecturers
□ (8) Retired
□ (9) Unemployed
□ (10) Other If (10) Others, Please Specify ___________________________.
5. Monthly Income:
□ (1) Less than SGD 20,000
□ (2) SGD 20,001 to SGD 35,000
□ (3) SGD 35,001 to SGD 50,000
□ (4) SGD 50, 001 to SGD 65, 000
□ (5) Greater than SGD65, 001

59DISSERTATION
Section B: Survey of your Expectations and Perceptions of Fitness Centre Services Based
on your experience please indicate:
a) Your EXPECTATION of the Fitness services .i.e. what do you think it should offer?
b) Your PERCEPTION of the Fitness services. I.e. how did it perform?
(Please circle your answer)
Expectations of Fitness
Centre Services is:
Perceptions of Fitness
Centre Services is:
No. When it comes to: Low --------------- High Low --------------- High
Tangible Dimension
1 The Fitness Centre has a modern
looking equipment.
1 2 3 4 5 1 2 3 4 5
2 The physical facilities in the Fitness
Centre are visually appealing
1 2 3 4 5 1 2 3 4 5
3 Personnel in the Fitness Centre are
neat in appearance
1 2 3 4 5 1 2 3 4 5
4 The Fitness Centre provides detail
information and products and
packages
1 2 3 4 5 1 2 3 4 5
Reliability Dimension
5 When the Fitness Centre promises
to do something by a certain time, it
does so.
1 2 3 4 5 1 2 3 4 5
6 When a member have a problem,
the Fitness Centre shows a sincere
interest in solving it.
1 2 3 4 5 1 2 3 4 5
7 The Fitness Centre get things right
the first time.
1 2 3 4 5 1 2 3 4 5
8 The Fitness Centre provides its
services at the time it promises to
do so.
1 2 3 4 5 1 2 3 4 5
9 The Fitness Centre insists on error-
free records.
1 2 3 4 5 1 2 3 4 5
Responsiveness Dimension
10 The personnel in the Fitness Centre
tell you exactly when services will
be performed.
1 2 3 4 5 1 2 3 4 5
11 Personnel in the Fitness Centre give
members prompt service.
1 2 3 4 5 1 2 3 4 5

60DISSERTATION
12 Personnel in the Fitness Centre are
always willing to help you.
1 2 3 4 5 1 2 3 4 5
13 Personnel in the Fitness Centre are
never too busy to respond to
members requests.
1 2 3 4 5 1 2 3 4 5
Assurance Dimension
14 The behavior of personnel in the
Fitness Centre instills confidence in
the members.
1 2 3 4 5 1 2 3 4 5
15 Members feel safe in dealings with
the Fitness Centre.
1 2 3 4 5 1 2 3 4 5
16 Personnel in the Fitness Centre are
consistently courteous with the
members.
1 2 3 4 5 1 2 3 4 5
17 Personnel in the Fitness Centre
have the knowledge to answer to
your questions.
1 2 3 4 5 1 2 3 4 5
Empathy Dimension
18 The Fitness Centre gives you
individual attention.
1 2 3 4 5 1 2 3 4 5
19 The Fitness Centre has operating
hours convenient to all its
members.
1 2 3 4 5 1 2 3 4 5
20 The Fitness Centre has personnel
who give members personal
attention.
1 2 3 4 5 1 2 3 4 5
21 The Fitness Centre has the
member’s best interests at heart.
1 2 3 4 5 1 2 3 4 5
22 The personnel of the fitness Centre
understand member’s specific
needs.
1 2 3 4 5 1 2 3 4 5
How would you rate the overall quality of service provided by the Fitness Centre that you are
presently a member at? (Please circle your answer)
Low High
1 2 3 4 5

61DISSERTATION
Research Questionnaires for Managers
Section A: Demographics Profile
1. Gender:
□ (1) Male
□ (2) Female
2. Age Group:
□ (1) 18 yrs to 20 yrs
□ (2) Between 21 yrs to 30 yrs
□ (3) Between 31 yrs to 40 yrs
□ (4) Between 41 yrs to 50 yrs
□ (5) Greater than 50 yrs
3. Educational Qualification:
□ (1) N’Level / O’Level /A’Level
□ (2) Undergraduate
□ (3) Postgraduate
□ (4) Diploma
□ (5) Others, Please Specify ___________________________.
3. Educational Qualification:

62DISSERTATION
□ (1) N’Level / O’Level /A’Level
□ (2) Undergraduate
□ (3) Postgraduate
□ (4) Diploma
4. How many years have you been working for the present organization?
□ (1) Less than 1 year
□ (2) 1 year < 3 years
□ (3) 3 years < 5 years
□ (4) > 5 years
5. What is your position in the organization?
□ (1) Club General Manager
□ (2) Fitness Manager
□ (3) Operation Manager
□ (4) Supervisor
□ (5) Others, Please Specify ___________________________.

63DISSERTATION
Section B: Survey of your Expectations and Perceptions of Fitness Centre as an Employee
and team based on your experience please indicate:
a) Your EXPECTATION of the Fitness staff .i.e. what do you think they should do?
b) Your PERCEPTION of the Fitness staff. I.e. how do they perform?
c) (Please circle your answer)
Expectations of Fitness
Centre Services is:
Perceptions of Fitness
Centre Services is:
No. List of attributes Low --------------- High Low --------------- High
Tangible Dimension
1 We have-up-to date equipment’s 1 2 3 4 5 1 2 3 4 5
2 The materials used in the work
place is are visually appealing
1 2 3 4 5 1 2 3 4 5
3 We portray a neat appearance in the
Fitness Centre
1 2 3 4 5 1 2 3 4 5
4 The work environment is
comfortable and attractive
1 2 3 4 5 1 2 3 4 5
Reliability Dimension
5 When we promised to do something
by a certain time, we do so
1 2 3 4 5 1 2 3 4 5
6 We show sincere interest on solving
our customers’ problems
1 2 3 4 5 1 2 3 4 5
7 We perform services right the first
time
1 2 3 4 5 1 2 3 4 5
8 We provide services at the time
required/ promised
1 2 3 4 5 1 2 3 4 5
9 We provide correct /accurate
information to our customers
1 2 3 4 5 1 2 3 4 5
Responsiveness Dimension
10 We can tell customers exactly when
services will be performed.
1 2 3 4 5 1 2 3 4 5
11 We provide prompt services to our
customers
1 2 3 4 5 1 2 3 4 5
12 We are always willing to help our
customers
1 2 3 4 5 1 2 3 4 5
13 We are never too busy to respond to
our customers’ request
1 2 3 4 5 1 2 3 4 5
Assurance Dimension
14 Customers’ behavior instill 1 2 3 4 5 1 2 3 4 5

64DISSERTATION
confidence in us
15 We can be trusted by our customers 1 2 3 4 5 1 2 3 4 5
16 We are consistently courteous to
our customers
1 2 3 4 5 1 2 3 4 5
17 We have the required knowledge to
answer our customers’ questions
1 2 3 4 5 1 2 3 4 5
Empathy Dimension
18 We give individual attention to our
customers
1 2 3 4 5 1 2 3 4 5
19 We have convenient working hours 1 2 3 4 5 1 2 3 4 5
20 We deal customers with care. 1 2 3 4 5 1 2 3 4 5
21 We have our customers’ best
interest at heart
1 2 3 4 5 1 2 3 4 5
22 We understand the specific needs of
our customers
1 2 3 4 5 1 2 3 4 5
How would you rate the overall quality of service provided by the Fitness Centre staff that you
are presently working at? (Please circle your answer)
Low High
1 2 3 4 5
Other comments (if any)
______________________________________________________________________________