service quality-2.ppt

8/12/2019 Service quality-2.ppt

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Service quality

Quality is Fitness for purpose in goods.

The service quality of a firm is tested at each

service encounter.

If the retail clerk cannot answer simple

questions or neglecting the customer, he will

not be doing business again with that

company.


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Service Quality: The Parasuraman, Berry and Zeithaml Models

Parasuraman, Zeithaml, and Berry, professors

at various American business schools- built a

conceptual model of service quality,

developed a questionnaire called SERVQUAL

which measures service quality, and

conceptualized a model for shortfall in service

quality called the Gaps Model.


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ContdService Quality

These three authors contend that the

customer is the best judge of service quality.

They identified five criteria that customers

use to evaluate service quality. Those areReliability

Responsiveness

Assurance

Empathy

Tangibles


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The five factors comprising quality

Reliability: This is related to the ability of a service

provider to perform whatever was promised

Responsiveness: How willing is the service provider or

its people to help customers with their problems and

priorities?

Assurance meant competence, courtesy, credibility and

security

Empathy included access, communication and

understanding the customers point of view

Tangibles meant visible or touchable features


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The customer importance and performance ratings on the scale

of four for an auto dealership (SERVQUAL)

Attribute

No

Attribute description Mean importance rating Mean performance

rating

1 Job done right the first time 3.83 2.63

2 Fast action on complaints 3.63 2.73

3 Prompt warranty work 3.60 3.15

4

Able to do any job needed 3.56

3.00

5 Service available when needed 3.41 3.05

6 Courteous and friendly service 3.41 3.29

7 Car ready when promised 3.38 3.03

8 Perform only necessary work 3.37 3.11

9 Low prices on service 3.29 2.00

10 Clean up after service work 3.27 3.02

11 Convenient to home 2.52 2.25

12 Convenient to work 2.43 2.49

13 Send out maintenance notices 2.05 3.33


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Service Quality = PerceptionExpectation

They proposed that customers have a certain

expectation of service quality while going into a

service transaction, and they compare the

actual experience (perception) to arrive at aresulting satisfaction or dissatisfaction with the

service.

Satisfaction = Service Received is Service

Expected


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Expectations of Consumers

Using this formula, these researchers developed a

questionnaire to measure service quality against their

own expectations.

The customers expectations could be based on various

factors like

Word of mouth communications from friends or

acquaintances

Personal needs or preferences of the customer

Past experience of the providers service

External communication or advertising by the

provider


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The zone of Tolerance

When the actual service delivery is above the desiredservice, the customer satisfaction is very high and itdelights the customer.

When the actual service delivery is below the

adequate service, the customer feels cheated andmay rate service very poor.

When the actual service delivery is between thedesired service and adequate service is the zone of

tolerance where the customer satisfaction is neitherhigh nor low.

zone of tolerance varies across customers and acrosssituations.


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Zone of Tolerance

Desired service

--------------------------------------------

Zone of tolerance

----------------------------------------

Adequate service


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The Gaps Model: Why Service Quality

can Fall Short

Why service quality in a service company may

fall short of what is expected by a customer

Parasuraman, Zeithaml and Berry identified 5

gaps in Service Conception and Delivery and it

is called Gaps model


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GAP 1: Customer Expectations- Service Companys

Understanding

If the management of a cinema theatre believes that

all it needs is good movies, and no attention to

dcor, cleanliness and good control of ticketing

lines, it may lose out on a lot of customers, whowould dislike the experience of dirty seats and

aisles, rowdy queues at booking counters and

unimaginative interiors or a lack of cooling inside

the hall.


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Gap 1contd

The reasons for gap 1 can be

Inadequate marketing research (or none at

all),

An attitude problem like I know what is best

for the customer among the service company

management etc.


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Gap-1

I. Provider gap-1, the listening gap 1=poor

10=excellent

Market research orientation

Is the amount and type of market research adequate to understand customer

expectations of service?

Does the company use this information in decisions about service provision?

Upward communication

Do managers and customers interact enough for management to know what

customers expect?

Do contact people tell management what customers expect?

Relationship focus (old customers)

To what extent does the company understand the expectations of differentcustomer segments?

To what extent does the company focus on relationships with customers rather

than transactions?

Service recovery

How effective are the service recovery efforts of the organization?

How well does the organisation plan for service failure?

Score for service provider Gap-1


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How to reduce

The size of the knowledge gap can be decreased withthe information obtained through customer research

The upward communication that is the flow ofinformation from front-line personnel to upper levels

of the organization influences the size of the gap. The levels of management in the organization can

influence the size of the knowledge gap. As theorganizational hierarchy becomes more complex and

more levels of management are added, higher levelsof management tend to become more distant fromcustomers and the day-to-day activities of theorganization


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GAP 2: Service Companys Understanding of Customer

expectationsThe Standards set by the Company

The standards that a company sets may fall short of what

the company believes are thecustomer expectations

(which as we saw in Gap One, could themselves be

incorrectly understood).

This could be because the customer expectations are too

high (according to the company), and it either cannot meet

them or does not want to try.

Therefore, it may set lower standards of service.


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Gap-2

Provider Gap-2, the service Design and standards Gap 1=poor

10=excellent

Systematic Service Design

How effective is the companys service development process?

How well are new services defined for customers and employees?

Presence of customer defined Standards

How effective are the companys service standards?

Are they defined to correspond to customer expectations?

How effective is the process for setting and tracking service quality goals?

Appropriate physical evidence and servicescapeAre the companys physical facilities, equipment and other tangibles attractive

and effective?

Score for provider gap-2


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How to reduce

Closing this gap requires managements commitmentand belief that it should meet the customerexpectations. Corporate leadership may set otherpriorities that interfere with setting of standards. The

cost reduction and short-term profits overcommitment to service quality will increase the gap.

In some instances like enquiry or complaint services,customers are forced to remain on hold for a longtime. Some times there is no standard culture or goalsetting by the management on the services,timeliness, accuracy, responsiveness.


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GAP 3: The Standards set by the Company the Actual Delivery

Even after the standards are set by the

company management, there may be

shortfalls in actual delivery, because of lack of

trained people, or a lack of proper awarenessof their role in service delivery, or a lack of

supervision leading to indifference.


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Gap-3

Provider gap-3, the service performance gap 1=poor

10=excellent

Effective Human resource policies

How effectively does the company recruit, train, compensate, and empower

employees?Is service quality delivery consistent across employees, teams, units and

branches?

Effective role fulfillment by customers

Do customers understand their roles and responsibilities?

Does the company manage customers to fulfill their roles, especially customers

that are incompatible?

Effective alignment with service intermediaries

How well are service intermediaries aligned with the company?

Is there a conflict over objectives and performance, costs and rewards?

Is service quality delivery consistent across the outlets?

Alignment of demand and capacity

How well is the company able to match supply with demand fluctuations?



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Reasons

The service providers may not be properly trained or incapable of or unwilling tomeet the standards or lack of awareness on the roles of different employees in theservice delivery or lack of supervision leading to indifference. If a restaurantsserver does not execute the standards developed by the management, a deliverygap is formed.

One factor that influences the size of the delivery gap is the employeeswillingness to performthe service. In other case, no matter how willing, maysimply not be able to perform. It has to do with employee-job fitas he/she notqualified to that job. Another common factor is role conflict, where the serviceprovider is expected to attend number of different works and the conflictcontinues to occur. In this kind of situation, employees get frustrated and losetheir commitment.

The dispersion of control, when employees are not allowed to take independentdecisions, they may feel marginalized and less committed. Employees experiencelearned helplessness, when they are alienated with some powers and have to getapprovals from somewhere.

Finally an inadequate supportin the form of training and skills improvementincreases the gap.


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GAP 4: The Actual DeliveryExternal communication

Gap four occurs because the company may

promise something in its implicit or explicit

communications with customers, but delivery

may not match it. Reasons? marketing and service delivery departments not

working in tandem

tendency to over promise

This leads to dissatisfaction among consumers.


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Gap-4

Provider gap-4, the communication gap

1=poor

10=excellent

Integrated Service marketing communication

How well do all company communications including the interactions between

company employees and customers-express the same message and level of

service quality?

How well does the company communicate to customers about what will be

provided to them?

Does the company avoid over promising and overselling?

How well do different parts of the organization communicate with each other so

that service quality equals what is promised?

Pricing

Is the company careful not to price so high that customer expectations are raised?

Does the company price in line with customer perceptions of value?


Overall score for 4 gaps is 5th

gap.


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Why

The communication gap is primarily due to propensity of thefirm to over promisingunder highly competitive businessenvironment. This happens to surpass one another inattracting new customers.

The other factor pertains to the amount of horizontalcommunicationwithin the firm. For example, new servicesare announced to the public from corporate office before it isfully known to the local offices.

Sometimes, the left hand does not know what the right hand

is doing. Marketing communication should be clearlycontrolled.


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GAP 5- The Overall Gap

The gap resulting from the above four gaps

has been termed the overall gap between

Perceived (Received) and Expected Service.

The overall gap measures the overall

satisfaction or dissatisfaction of a service

customer.


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Best qualities of service quality

management

Strategic Concept

Top management commitment

High standards

Self service Technologies (SSTS)

Monitoring systems-(Table)

Satisfying customer complaints Satisfying employees as well as customer


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Measuring Service Quality: SERVQUAL

Diagnostic tool used to determine gap

scores

The larger the gap, the lower the service

quality evaluation

44 Item Scale the Compares Should to

Perceptions


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The customer importance and performance ratings on

the scale of four for an auto dealership

Attribute

No

Attribute description Mean importance rating Mean performance

rating

1 Job done right the first time 3.83 2.63

2 Fast action on complaints 3.63 2.73

3 Prompt warranty work 3.60 3.15

4 Able to do any job needed 3.56 3.005 Service available when needed 3.41 3.05

6 Courteous and friendly service 3.41 3.29

7 Car ready when promised 3.38 3.03

8 Perform only necessary work 3.37 3.11

9 Low prices on service 3.29 2.00

10 Clean up after service work 3.27 3.02

11 Convenient to home 2.52 2.25

12 Convenient to work 2.43 2.49

13 Courtesy buses and cars 2.37 2.35

14 Send out maintenance notices 2.05 3.33


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Exercise

If you are the manager of a service

organisation and want to apply the gaps

model to improve service, which gap would

you start with ? Why? In what order wouldyou proceed to close the gaps?

Which of the four provider gaps do you

believe is hardest to close? Why?

service quality-2.ppt

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