AEIJMR Vol 4 Issue 4 April 2016 ISSN - 2348 - 6724

Service Quality Models

*Mrs. A.S.Jeyasudha
**Dr.K.Jawahar Rani
*Research scholar, Sree Sastha Institute of Engineering and Technology,
**Professor, Department of M.B.A., St.Josephs College of Engineering, Chennai
Abstract
The attainment of quality in products and services has become a pivotal
concern since 1980s.
High service quality is imperative and important for
competitiveness of service industry. While quality in tangible goods has been
described and measured by marketers, quality in services is largely undefined and
unresearched. Many experts attempt to rectify this situation by reporting the
insights obtained in an extensive exploratory investigation of quality to develop
various models of service quality. Propositions As a result, there are plenty of
service quality models which enable managers and practitioners to identify quality
problems and improve the efficiency and profitability of overall performance.
This paper provides a review and critique of the existing service quality
models so as to derive the linkage between them. The review of various service
quality models can help to reveal the service quality outcome and measurements
dependency on type of service setting, situation, time, need etc. In addition to this,
even the customer's expectations towards particular services are also changing
with respect to factors like time, increase in the number of encounters with a
particular service, competitive environment, etc. This paper explores new directions
in service quality research and offers practical help to researchers and practitioners
in providing a direction for service quality improvement.
Key words: (Customer satisfaction, Customer services quality, Service delivery,
Service levels, SERVQUAL, SERVICE QUALITY Models, etc..,
Service Quality
The quality of service is an important consideration in business. Customers
perceptions of service quality are often influenced by the actual quality of the
customer service delivered and received in relation to the product. Perceived quality
is defined as a consumer's appraisal of a product's overall excellence or superiority
(Zeithaml, 1988). Consumers will notice something specific about that product,
which will enable them to understand, in a particular way, its special quality.
Therefore, perceived quality is an appraisal variable that might be added to models
explaining behavioural intentions. This relationship is now well established
identifying the processes of other variables (for example, customer satisfaction) and
the positive behavioural intentions they have (Bagozzi, 1992).
For service organisations the interaction between front-line personnel and the
customer is crucial as they aim to create high quality service encounters. Much
research has focused on attempts by organisations to inculcate the "right" kind of
attitude in their front-line employees. The human element, as part of the product,
is a key feature in the provision of quality service as service firms are becoming
increasingly more labour intensive. This is occurring as consumer demands and
expectations increase with employees experiencing direct and frequent contact with
the customer. Therefore, this interaction is a critical part of the overall service
product delivery and essential to customers' perception of service quality.

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AEIJMR Vol 4 Issue 4 April 2016 ISSN - 2348 - 6724

The development of a multiple-item instrument SERVQUAL, by Parasuraman,
Zeithaml, and Berry (1988) has been widely used for measuring consumer
perceptions of service quality. It is a 22-item instrument that addresses many
elements of service quality divided into the 5 dimensions, tangibles, reliability,
responsiveness, assurance, and empathy. There are critics of the SERVQUAL model
therefore other models exist where perceived quality or satisfaction affect
behavioural intentions. Some researchers suggest that the impact of stimuli (e.g.,
product attributes) might depend on a reference point (Gotlieb & Dubinsky, 1991)
or that focal and contextual dimensions of stimuli might influence perceived quality
(Grewal & Monroe, 1989). Furthermore, Baker, Parasuraman, Grewal, and Burnett
(1991) found support that store contextual cues (e.g., ambience) affect perceived
quality. Rust and Oliver (1994), considered overall perception of service quality to
be based on the customer's evaluation of three dimensions of service encounters:
the customer-employee interaction, the service environment, and the service
outcome.
Earlier, Grnroos (1982, 1984, 1988) had proposed and defined the dimensions of
service quality in global terms as comprising technical and functional parts.
Technical quality is the quality of the service product (sometimes called the
outcome dimension). We call this Technical Customer Service Performance (TCSP).
For example, in the case of a haircut the TCSQ will be the outcome in terms of the
finished product.
Functional quality is defined as the manner in which the customer receives the
service product (sometimes called the process-related dimension), that is the
manner in which the haircut was provided, which is commonly called customer
service. This aspect is called Functional Customer Service Performance (FCSP).
THE PZB MODEL - CONCEPTUAL MODEL OF SERVICE QUALITY
In their model of service quality, Parasuraman et al. (1985) described the service
quality process in terms of 'gaps'. That is, gaps between expectations and
perceptions of management, employees and customers. Parasuraman et al. (1985)
proposed five gaps.

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AEIJMR Vol 4 Issue 4 April 2016 ISSN - 2348 - 6724

SERVICE QUALITY GAP MODEL - PARASURAMAN ET AL. (1985,)

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Gap 5 is seen as being the most important gap which is between customer's
expectations of service and their perception of the service actually delivered. The
service organisation's goal is to close or narrow Gap 5 and it accomplishes this by
closing or narrowing the first four gaps.
Through in-depth interviews with executives, a comprehensive case study and an
exploratory study consisting of interviews with an extended number of executives,
the researchers were able to reveal five gaps regarding executives perceptions of
service quality delivery and the tasks associated with service delivery to customers.
The first four gaps are related to the firm itself and the fifth to consumers.
Gap 1 is between consumers' expectations and management perceptions of
consumer expectations, or in other words, the gap is between what customers want
and what management thinks they want.
The size of this gap is dependent upon factors such as the amount of
communication from employees to management in the organisation, the number of
management levels and if management has difficulty in understanding consumer
behaviour.
Gap 2 is between management perceptions of customer expectations and quality
specifications set for service delivery.
The gap in Gap 3 occurs between the quality specifications set for service delivery
and the actual quality of service delivery.
The final component of the model, Gap 4, exists between the actual quality of
service delivery and the quality of service delivery described in the firm's external
communications. Gap 4 thus relates to the difference between what the firm
promises to deliver in its communication and what it actually does deliver to the
customer. Therefore if a promise is broken by the organisation, the customer will
perceive service quality to be lower than expected.
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AEIJMR Vol 4 Issue 4 April 2016 ISSN - 2348 - 6724

In short, Parasuraman et al.'s (1985) model of service quality focuses on closing the
gap between customers' expectations and perceptions of what they actually receive.
Although the model provides a key diagnostic tool for service quality, to be effective,
the model needs to be part of a company-wide focus on quality.
The service quality model known as the PZB Model was first developed by
Parasurarman, Zeithaml and Berry (1985) (see also Zeithaml et al.) to attempt to
define and model service quality at a time when there was little focus on the
construct. As part of their exploration they concluded that quality involves a
comparison of expectations with performance, and thus satisfaction with services is
related to fulfilling expectations. Several studies are cited that conclude for example
that satisfaction is related to confirmation or disconfirmation of expectations
(Smith and Houston 1982), and that consumers compare the service they expect
with perceptions of the service they receive (Gronroos 1982).
The Rater Model Service Quality Dimensions
SERVQUAL instrument consists of a 22-item instrument for assessing service
quality based on customers perceptions, which is, by his turn, the difference
between the customers perceived quality and his/her expectation. The perceived
quality is assessed based on service quality dimensions that correspond to the
criteria used by consumers when assessing service quality. There are 10 potentially
overlapping dimensions: tangibles, reliability, responsiveness, communication,
credibility, assurance, competence, courtesy, understanding/knowing the
customer, and access. A more detailed description of those dimensions can be
found in Zeithan et al. (1990). Afterwards, these dimensions were reduced to five,
namely: tangibles, reliability, responsiveness, assurance, empathy. Using those 10
or 5 dimensions as the evaluation criteria the specification of service quality
becomes the gap between customers expectations and their perceptions
(Parasuraman et al, 1985).
Dimension Refers to Specific criteria that customers use
Reliability
Delivering on promises, your ability to perform the promised service dependably
and accurately.
Timeliness
Consistency/Regularity
Accuracy
Assurance
Inspiring trust and Confidence
The knowledge and courtesy of staff; their ability to inspire trust and confidence
Staff competence
Respect for stakeholders
Credibility
Probity and confidentiality
Safety and security
Tangibles
Representing the service physically
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The physical representations or images of your service
Physical facilities
Equipment
Technology
Employees
Communication materials
Empathy
Treating customers as individuals
The caring individualized attention you provide your stakeholders
Access (to staff, services, and information)
Communication (clear, appropriate, timely)
Understanding the stakeholder
Services appropriate for stakeholders needs
Individualized attention
Responsiveness
Being willing to help, your willingness to help customers and to provide prompt
service
Willingness to help
Prompt attention to requests, questions
Problem resolution
Complaint handling
Gronroos' Perceived Service Quality Model
The European perspective considers additional aspects other than the process of
service delivery. Grnroos (1984), for instance, noted that the quality of a service as
perceived by customers consists of three dimensions: functional (the process of
service delivery to customers), technical (the outcomes generated by the service to
the customers), and image (how the customers view the company). Considering
those dimensions, the quality of the service is dependent upon two variables: the
expected service and the perceived service. More details of the previous argument
are provided by Grnroos (1984).
Functional quality of a service is often assessed by measures of customers
attitudes, as in customer satisfaction questionnaires. As described by Hayes
(1997), the process of identifying customers attitudes begins with determining
customers requirements or quality dimensions. Parasuraman et al. (1985)
identified in a first study 10 quality dimensions based on a series of focus group
sessions. From this study, the authors concluded that customers use the same
criteria to assess service quality independently of the type of service
In Grnroos' Perceived Service quality model, expectations are a function of market
communications, image, word of mouth, and consumer needs and learning,
whereas experience is a product of a technical and functional quality which is
filtered through the image.

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Gronroos' Perceived Service Quality Model

Grnroos more clearly shows the existence of a perception gap, although there is
no suggestion of "delighting" only of narrowing the gap. However the model has
more practical application as it shows factors that contribute to each side of the
gap. It demonstrates that the supplier can affect both sides of the gap most
notably by managing customer expectations. In addition it illustrates that the
customer experience is a product of the image of supplier quality, not just the
actuality. Clearly marketing as well as process and technical quality has an effect
on the perception gap.
Nordic Model
Professional economists have often been puzzled by the relatively good economic
performance of the Nordic model, given its high taxes and its generous social
protection systems as well as the role of strong labour unions and wage
coordination. Obviously, there must be losses of economic efficiency caused by
some of the characteristics of the Nordic model, and many studies have been
devoted to the analysis of the economic costs of a large welfare state. But, equally
obviously, there are other factors which have made up for such disadvantages. The
other factors can for the purpose of exposition be divided into three categories.
The first category includes factors that are entirely exogenous to the economic
system, such as geographic location, climate, natural resources, or religion. The
second category comprises institutional factors that are related to the economic
system, such as political freedom and absence of corruption, well-defined property
rights and a reliable judicial system,
Economic performance reflects many factors economic and non-economic or good
health and educational standards. The third category, finally, are factors that are a
direct result of economic policies, such as openness to trade and factor mobility, a
tax system favourable to labour supply, accumulation and entrepreneurship, and a
good infrastructure for transport and communication.
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While the Nordic success story could be partly explained by factors belonging to the
first and notably the second category, we would for the purpose of this report like
to focus on the final category, i.e. growth-enhancing economic policies. For more
than a century the Nordics have been free-trading nations with a low level of
protection in commodity trade (excluding agricultural products), leading to
continuous structural change and a high degree of specialization in areas of
comparative advantage. The Nordics have even longer been relatively open to
migration, not least immigration of specialists and entrepreneurs with specific
technical or commercial skills. A more recent development is that free enterprise on
the whole prevails and that state intervention in the business sector is limited. The
labour unions are politically influential but have not gone against these policies,
nor have they resisted the introduction of new techniques or off-shoring of activities
which have led to productivity improvements and displacement of labour. One way
of looking at the bumble bee feature of the Nordic model is by pointing to some
significant characteristics of public spending. Much of it is on items like child care
and education, the infrastructure, research and active labour market policies. Such
spending may offset part of the negative effects of high taxes. Also, there is often a
link between entitlements and contributions in transfer systems (notably pensions),
which supports participation in the labour force. Furthermore, the importance of a
high level of trust and absence of corruption must not be underrated these
phenomena help maintain the public backing and therefore the viability of a large
public sector.
As already noted above, some of the key elements of the Nordic model have been
conducive to the implementation and political acceptance of growth-enhancing
policies. The argument is this: Economic growth is only to a limited extent achieved
via pure accumulation of factors of production. More important are the effects of
technical change and reallocation of factors in response to changes in the
international pattern of specialization. International trade and technical progress
can lead to increased welfare only by way of structural change, a process with
winners and losers. New competition has the consequence that some work places
are closed down, jobs are lost and labour is displaced. The economic argument in
favour of free trade and open markets is not that there are no losers, only that the
winners have so much to gain that they can in principle compensate the losers.
Such compensation, however, is not always achieved in practice. Thus, potential
losers in many countries have used political and union power to create barriers to
new competition by way of tight labour market regulation with strict job protection,
tariff and non-tariff protectionism, government subsidies or public monopolies. The
Nordic model can be regarded as a way of generating political support for growthenhancing technical change, free trade and open markets by creating a number of
systems through which the winners from structural transformation at least to some
extent compensate the losers. Solidaristic wage setting, active labour market
policies, and redistribution of income via tax-transfer schemes, comprehensive and
generous unemployment insurance schemes and other elements of social
protection can all be regarded as ingredients in such compensation mechanisms.
This is not to say that all parts of such policies can be motivated by compensation
arguments, or that existing schemes are particularly efficient in compensating the
losers at the expense of the winners. In particular, a lot of public transfers amounts
to redistribution of resources over the lifetime of a given individual rather than
redistribution between different individuals. Nevertheless, we believe that social
and labour market policies have been important in mobilizing political support in
the Nordic countries for openness to new technology in production, free
international trade and competition in domestic markets. Many features of the

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Nordic model amount to mechanisms designed to give some compensation to those
suffering from negative effects of structural change
Major Challenges to the Nordic Model Give Rise To An Urgent Need For
Reform
Functional as it may have been in the past, we believe that the Nordic model today
is subject to a number of challenges that will put it under serious pressure and call
for fundamental reform in order to make it sustainable. The root of the challenges
is inherent in the basic set-up of the Nordic welfare state, which is based on taxfinanced public provision of a large number of social services: child care, basic and
advanced education, hospital care and health services, and care for the elderly.
This is an important aspect of the Nordic model, in that it makes the access to
such basic welfare services independent of income and employment status. But it
is also a problematic feature, which may in the long run lead to an impasse in
public finances. This is so for two reasons. First, demand for (some) welfare
services tends to increase faster than income (a phenomenon known by economists
as Wagners law). Second, by their very nature, productivity in the production of
welfare services tends to increase at a lower rate, if at all, than in the production of
goods (or other services). Assuming equal wage developments across sectors, unit
costs must then increase faster in the production of welfare services than in the
economy as a whole (a phenomenon known by economists as Baumols law). The
two phenomena taken together imply a tendency for total spending on welfare
services to rise faster than GDP over time. As long as the production of these
services remains in the public domain, or as long as they are tax-financed, the tax
burden must also exhibit a tendency to rise continuously with GDP. This is a
problem of the welfare state that we have been living with for decades now.
However, starting from an already high tax burden, the efficiency cost of further
increases in tax wedges will at some stage rise steeply, and high taxes will
eventually cause serious harm to employment and growth. It seems to us that we
may be close to a critical point where the deadweight losses due to high tax wedges
and, particularly, their effect on labour force participation rates start to bite
seriously. This is particularly so in view of some of the consequences of
globalization and demographic change.
Globalization is in general beneficial to economic growth as it provides an
opportunity to increase the returns to factors of production via international
exchange of goods and services and/or via international factor mobility.
Nevertheless, increasing international mobility of labour also poses, if it continues
unabated for long, a threat to the welfare state and the Nordic model. The
entitlements to education and retirement as well as to care or benefits in the case
of sickness, disability and unemployment belong to all citizens as individuals in
this model, while the cost of these entitlements are born collectively and shared by
all via the tax system. With higher mobility of labour it becomes increasingly
possible to benefit from the entitlements without sharing the cost (paying the
taxes). There are many examples. Graduates from domestic tax financed
universities increasingly make their careers (and pay their taxes) abroad. Citizens
who have spent most of their working lives (and paid their taxes) abroad, return to
their home country after retirement to collect the benefits of free (or cheap) hospital
care and care for the elderly. Unemployment rates and the frequency of disability
pensions tend to be higher for certain immigrant groups than for domestic citizens.
With increasing claims on entitlements due to social tourism and eroding tax
bases due to factor mobility and tax competition between nations, the long-run
sustainability of the Nordic model could be in serious jeopardy. The most serious
challenge to the Nordic model, however, is caused by the changing demographics,
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given the extensive role of the public sector in providing age-dependent social
services and transfers. The age composition of the population will in most
European countries change rather dramatically in coming decades. The shift is
driven by two factors: a temporary baby boom effect as the large cohorts of the
1940s and 1950s reach retirement age, and a permanent effect caused by a
continued increase in life expectancy. As a consequence, the working age
population in Finland will decline from 66.5 per cent of the total today to 57.5 per
cent by 2040. The share of those over 65 will increase from 16 to 26 per cent of the
population, and the share of very old (above 85) will increase from just below 2 to
over 6 per cent over the same time period. Figures are broadly similar (though
somewhat less alarming) for Denmark and Sweden. Accordingly, dependency ratios
will start increasing dramatically from around 2010. Obviously, the balance
between those contributing to and those benefiting from the welfare state is shifting
to such an extent that these demographic trends are putting the financial
sustainability of the system in danger.
Conclusion
This paper is a simple attempt to list out and analyse some of the models of the
service quality. Parasuraman, Zeithmal and et al, s Service quality model served
as the the basic model for the others and the application of these models is found
in almost all the sectors such as education, healthcare, automobiles, government,
etc., Eventhough service sector is intangible and immeasurable in quantifying
terms, these models help to evaluate the effectiveness of the service quality.
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