chapter 3. service delivery & quality management

8/13/2019 Chapter 3. Service Delivery & Quality Management

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Service Delivery &

Quality Management


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Service Delivery

Service Delivery is an essential condition for success in theemerging, keenly competitive, global Service markets. Whilethe future importance of delivering quality service is easy to

discern and to agree on, doing so presents some difficult andintriguing management issues.

Eg. Ritz Carlton, British Airways, Audi, etc.

Customers have different expectations of servicesor

expected serviceDesired servicecustomer hopes to receive

Adequate servicethe level of service the customer mayaccept.


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Consumer Behavior in Services

Overview the generic differences in consumer behavior

between services and goods

Introduce the aspects of consumer behavior that amarketer must understand in five categories of consumer

behavior:

Information Search

Evaluation of service alternatives

Service purchase and consumption

Post purchase evaluation

Role of culture


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Consumer Evaluation Processes for Services

Search Qualities

Attributes a consumer can determine prior to purchase

of a productExperience Qualities

Attributes a consumer can determine after purchase (or

during consumption) of a product

Credence Qualities

Characteristics that may be impossible to evaluate even

after purchase and consumption


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Continuum of Evaluation for Different

Types of Products

Difficult to evaluateEasy to evaluate

High in search

qualities

High in experience

qualities

High in credence

qualities

Most

Goods

Most

Services


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Categories in ConsumerDecision-Making and Evaluation of Services

Information Search Evaluation of

Alternatives

Purchase andConsumption

Post-PurchaseEvaluation

Use of personal sources

Perceived riskEvoked set

Emotion and mood

Service provision as drama

Service roles and scripts

Compatibility of customers

Attribution of dissatisfaction

Innovation diffusion

Brand loyalty


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Categories in Consumer Decision-Making

& Evaluation of Services

Information Search Evaluation of

Alternatives

Purchase andConsumption

Post-PurchaseEvaluation

Use of personal sources

Perceived risk

Evoked set

Emotion and mood

Service provision as drama

Service roles and scripts

Compatibility of customers

Attribution of dissatisfaction

Innovation diffusion

Brand loyalty

CultureValues and attitudesManners and customs

Material cultureAesthetics

Educational and social

institutions


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Information search

In buying services consumers rely more onpersonal sources.

Personal influence becomes pivotal as productcomplexity increases

Word of mouth important in delivery of services

With service most evaluation follows purchase


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Perceived Risk

More risk would appear to be involved withpurchase of services (no guarantees)

Many services so specialised and difficult toevaluate (How do u know whether the Electrician/Auto Technician has done a good job?)

Therefore a firm needs to develop strategies toreduce this risk, e.g, training of employees,standardisation of offerings


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Evoked Set

The evoked set of alternatives likely to be smaller withservices than goods

If you would go to a shopping centre you may only findone dry cleaner or single brand

It is also difficult to obtain adequate prepurchaseinformation about service

The Internet may widen this potentialConsumer may choose to do it themselves, e.g. gardenservices


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Emotion and Mood

Emotion and mood are feeling states that

influence peoples perception and evaluation of

their experiencesMoods are transient

Emotions more intense, stable and pervasive

May have a negative or positive influence


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Service Provision as Drama

Need to maintain a desirable impression

Service actors need to perform certain routines

Physical setting important, smell, music, use of

space, temperature, cleanliness, etc.


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The Service Encounter

is the moment of truth

occurs any time the customer interacts with the firm

can potentially be critical in determining customer satisfaction & loyalty

types of encounters:

remote encounters

phone encounters

face-to-face encountersis an opportunity to: build trust reinforce quality build brand identity

increase loyalty


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Service encounters are building blocks of quality service.

How can hospitality businesses manage them more

effectively? A two step process in the evaluation of a

service chain.First, Service Managers should identify each encounter in

the Service chain that they wish to take apart, & then single

out those that are of operational or strategic significance.

Second, apply what we have called the 6 Ss to improving

these critical encounters through effective redesign



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An initial management task is to understand a service

encounter by discerning and dealing with those attributes that

are most important to the clients. In doing so, pertinent

questions must be raised about the specific serviceencounter(s) under consideration. With respect to service

encounter, Service Managers might raise questions like:oExactly what happened?

oWhat were the guest/client reactions?oShould it be done differently?

oWhat resources would assure optimal performance?

oWhat changes should be made?

oHow can such changes best be put into effect?



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Service Mapping/Blueprinting

A tool for simultaneously depicting the service process,

the points of customer contact, and the evidence of

service from the customers point of view.

Service

Mapping

Process

Points of Contact

Evidence


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Service Blueprint Components

CUSTOMER ACTIONS

line of interaction

ONSTAGE CONTACT EMPLOYEE ACTIONS

line of visibility

BACKSTAGE CONTACT EMPLOYEE ACTIONSline of internal interaction

SUPPORT PROCESSES


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The specific encounter(s) under consideration

will, of course, indicate the kinds of questions

that should be pursued. It is important to obtainadequate information to understand the situation

thoroughly. Determining the context of a

situation relating to a Service encounter that has

gone wrong establishes parameters forimprovement.



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Analysis of service encounters

All this is part of the second step. With the information at

hand hospitality managers can organize,& analyze the

data & it is here that the 6S approach can help. These are:

1.Specification

2.Staff

3.Space4.System

5.Support

6.Style



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Which are the encounters that really matter?

- Those that add significant value to the guest

- Those that cost in time or money,

- Those that help to differentiate the business from

its competitors

- Those where significant innovation is possible or

occurring.



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Check-In

Request Wake-Up Call

Checkout

Bellboy Takes to Room

Restaurant Meal

A Service Encounter

Cascade for a Hotel Visit


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Sales Call

Ordering Supplies

Billing

Delivery and Installation

Servicing

Service Encounter Cascadefor an Industrial Purchase


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Critical Service Encounters Research

GOAL - understanding actual events and behaviors

that cause customer dis/satisfaction in service

encounters

METHOD - Critical Incident Technique

DATA - stories from customers and employees

OUTPUT - identification of themes underlyingsatisfaction and dissatisfaction with service

encounters


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Sample Questions for Critical

Incidents Technique Study

Think of a time when, as a customer, you had a

particularly satisfying (dissatisfying)interaction with an

employee of .When did the incident happen?

What specific circumstances led up to this situation?

Exactly what was said and done?What resulted that made you feel the interaction was

satisfying (dissatisfying)?


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Common Themes in Critical

Service Encounters Research

Recovery: Adaptability:

Spontaneity:Coping:

Employee Responseto Service Delivery

System Failure

Employee Responseto Customer Needs

and Requests

Employee Responseto Problem Customers

Unprompted andUnsolicited EmployeeActions and Attitudes


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Recovery

Acknowledge problem

Explain causesApologize

Compensate/upgrade

Lay out optionsTake responsibility

Ignore customer

Blame customerLeave customer to fend

for him/herself

DowngradeAct as if nothing is

wrong

DO DONT


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Adaptability

Recognize the

seriousness of the needAcknowledge

Anticipate

Attempt to accommodate

Explain rules/policiesTake responsibility

Exert effort to

accommodate

Promise, then fail to follow

throughIgnore

Show unwillingness to try

Embarrass the customer

Laugh at the customerAvoid responsibility

DO DONT


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Spontaneity

Take time

Be attentiveAnticipate needs

Listen

Provide information (even

if not asked)Treat customers fairly

Show empathy

Acknowledge by name

Exhibit impatience

IgnoreYell/laugh/swear

Steal from or cheat a

customerDiscriminate

Treat impersonally

DO DONT


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Coping

ListenTry to accommodate

Explain

Let go of the customer

Take customersdissatisfaction

personally

Let customers

dissatisfaction affectothers

DO DONT


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Factors Influencing Customer Satisfaction

Product/service quality

Product/service attributes or features

Consumer Emotions

Attributions for product/service success or failure

Equity or fairness evaluations


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Outcomes of Customer Satisfaction

Increased customer retention

Positive Word-of-mouth communications

Increased Revenues


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Relationship between Customer Satisfaction

& Loyalty in Competitive Industries

0%

20%

40%

60%

80%

100%

Very

dissatisfied

Dissatisfied Neither

satisfied nor

dissatisfied

Satisfied Very

satisfied

Satisfaction measure

Loyalty

(reten

tion)


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Service Quality

Service Quality is a Global judgment or attitude relating to

the overall superiority of the service.

Service quality is being increasingly perceived as a tool to

increase value for the consumer; and as a means ofpositioning in a competitive environment to ensure consumer

satisfaction, retention, and patronage.

Existing research indicates that consumers satisfied with

the service quality are most likely to remain loyal. However,

despite its strategic importance, Indian Service Industry do

not have an appropriate and established instrument to

measure service quality.


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Service Quality

In an age of thin profit margin, corporations are diligently

looking for ways to differentiate themselves from the

competitors, to beat the competition, to expand market

share, to create quality differences, and even to achievezero quality defects.

The customers judgment of overall excellence of the

service provided in relation to the quality that wasexpected.

Process and outcome quality are both important.


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Measuring Service Quality

Any exercise to measure service quality must take into

account two kinds of factors: those pertaining to the industry

in general and those pertaining to the service provider under

consideration in specific. The economy of the country as awhole must also be measured. These factors must be

weighted according to importance to measure their impact

on the ultimate effect on service quality.

The most popular tool used to measure service quality is

SERVQUAL, a general instrument used to measure the

service quality gap and measuring general expectations

across service industries


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SERVQUAL Methodology

SERVQUAL Methodology. Originally developed by leading

customer satisfaction researchers Valarie Zeithaml, A.

Parasuraman and Leonard Berry.

SERVQUAL Methodology is an invaluable tool for companiesto better understand what customers value and how well

they are meeting the needs and expectations of customers.

SERVQUAL provides a benchmark based on customeropinions of an excellent company, on a particular company,

on the importance ranking of key attributes, and on a

comparison to what your employees believe customers feel.


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SERVQUAL METHODOLOGY

It provides detailed information about:

customer perceptions of service (a benchmark

established by your own customers);

your performance levels as perceived by customers;

customer comments and suggestions;

impressions from employees with respect to

customers expectations and satisfaction.

SERVQUAL has proven to be a simple yet effective tool

for many organizations.


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SERVQUAL was originally measured on 10 aspects of service

quality:

1. Reliability: Ability to perform the promised service dependably and

accurately

2. Responsiveness: Willingness to help customers and provide prompt

service

3. Competence: Possession of required skill and knowledge to

perform service

4. Access: Approachable and ease of contact

5. Courtesy: Politeness, respect, consideration, friendliness of contact

personnel



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6. Communication: Listens to customers and acknowledges

their comments. Keeps customers informed in a language

which they can understand

7. Credibility: Trustworthiness, believability, honesty of theservice provider

8. Security: Freedom from danger, risk or doubt

9. Understanding: Making the effort to know the customer and

their needs

10. Tangibles: Appearance of physical facilities, equipment,

personnel and communication materials



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The Five Dimensions of Service Quality

Ability to perform the promised servicedependably and accurately.

Knowledge and courtesy of employeesand their ability to convey trust andconfidence.

Physical facilities, equipment, and

appearance of personnel.Caring, individualized attention the firmprovides its customers.

Willingness to help customers andprovide prompt service.

Tangibles

Reliability

Responsiveness

Assurance

Empathy

By the early 90s, the authors had reduced it to the useful acronym RATER:


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Service Quality

Perceived Service Quality

Word of

mouth

Personal

needs

Past

experience

Expectedservice

Perceivedservice

Service Quality

Dimensions

Reliability

ResponsivenessAssurance

Empathy

Tangibles

Service Quality Assessment

1. Expectations exceeded

ESPS (Unacceptable quality)


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The Customer Gap

Expected

Service

PerceivedService

GAP


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Gaps Model of Service Quality

Gaps in Service Quality

Word -of-mouth

communicationsPersonal needs Past experience

Expected service

External communicationsto consumers

Perceived service

Service delivery (includingpre- and post-contacts)

Translation of perceptions intoservice quality specifications

Management perceptions ofconsumer expectations

GAP 5

GAP 3

GAP 2

GAP 1 GAP 4

Customer

Provider


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There are five major gaps in the service quality concept.

Gap1: Customers expectations versus Mgmt perceptions:

as a result of the lack of a marketing research orientation,

inadequate upward communication & too many layers of Mgmt.

Gap2: Management perceptions versus service

specifications: as a result of inadequate commitment to

service quality, a perception of unfeasibility, inadequate taskstandardisation & an absence of goal setting.

Gap3: Service specifications versus service delivery: as a

result of role ambiguity and conflict, poor employee-job fit and


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poor technology-job fit, inappropriate supervisory control

systems, lack of perceived control and lack of teamwork.

Gap4: Service delivery versus external communication:

as a result of inadequate horizontal communications andpropensity to over-promise.

Gap5: The discrepancy b/n customer expectations & their

perceptions of the service delivered: as a result of theinfluences exerted from customer side & shortfalls (gaps) on

thepart of the service provider. In this case, customer

expectations are influenced by the extent ofpersonal needs,

word of mouth recommendation & past service experiences.



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Thank You !!!

chapter 3. service delivery & quality management

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