Evolution of Service Quality and Paradigm shift from Product to

Service Orientation: A Historical Review

Umer Mukhtar
Lecturer, Director Projects,
GIFT University,
Pakistan

Abstract
The aim of study is to trace out the paradigm shift of the product-focused orientation to the service
focused orientation, as an addition in the exchange of value using the dominant literature and studies
prevailed in the business history. The second objective is to summarize the evolution and development of
service quality. This study is a historical discourse analysis summarizes the development of service
quality and the paradigm shift of product orientation. Services management thinking began to emerge as a
field of study after 1950s and up to 1980s, it was recognized as a proper discipline emerged from
marketing thought. The dimensions of service quality are evolving and emerging in nature due to different
implications in different contexts. The paradigm of manufacturing focus exclusive of service management
has been shifted to strategic service management. The perceptual orientation of customers has been
upgraded and enhanced. The future studies should study the empirical evidence of service orientation
shift and the evolving dimensions of service quality related to different contexts. This study provides a
collection and comprehensive summary of all the dominant literature in the services management and
service quality evolution from the advent of 20th century till 2013. It is providing historical discourse
covering timeline, which has not been covered in the area of service quality before. Secondly, it is
describing the thought-provoking shift of product orientation into services orientation and the different
nature of services science, which implies that service quality is an evolving construct having evolving
nature in dimensionality.

Key Words: Service Quality, Service marketing, Models of Service Quality, Development of Service
Quality, Service Orientation, Evolution of Service Quality, Quality, Service thinking, SERVQUAL,
production orientation, product orientation

1. Introduction
The roots of science of exchange and marketing came from economics more than a century ago before, in
the nineteenth century and beyond. The typical and neoclassical theories of economics deal with supply
and demand of the products. The orientation at that time was focused on the value creation of tangible
goods, produced. The focus of product value as an economic exchange between the seller and the buyer is
rooted with the scientific theory that lead towards the entire science of economics (Hunt 1991). The
product as tangible exchange orientation is enhanced into services orientation, as an exchange of
intangibles with tangibles like information, knowledge, awareness, and societal wellbeing, benefits before
and after production. The production oriented is commonly said to be remain dominant up to 1930, when
the focus has been just in production but not on services. The focus was on making less on distribution
with little thought on marketing (Fullerton 1988). The origin of quality can be traced back in this period,
when inspection activities were performed in production. Frederick W. Taylor, father of scientific
management employed the inspection as a justifiable action to have effective and efficient Quality
Control Tool (Hounshell 1985). Radford in 1992 developed a formal link between inspection after
production and quality control in 1911 (Radford 1922). In the same period of production and
manufacturing, the focus was on mass production, economies of scale, cutting down expenses of
production. From 1950s, the paradigm began to shift from good orientation to service orientation. Due to
high awareness among consumers, they stopped to buy products in a traditional way. They began to
demand value provided by the products in the form of intangible services associated with it. The
concentration of literature and practice shifted to management of activity based services i.e. pure services
and product based services (Gummesson 1994). In this early stage of services, the debate of services
initiated in Doctorate dissertations of McDowell in 1953 and Parker in 1953 (McDowell 1953; Parker
1958) and further continued through other authors‘ dissertation researches up to late 1970s. In 1980s, the
services debate and Literature flourished more, and the concept of four pieces emerged in this era. The
role of marketing as a moderating function for success of companies changed to the core function. A
conceptual model of service quality is developed by Parasuraman, Zeithaml, and Berry (Parasuraman,
Zeithaml, and Berry 1985) in which it is conceptualized that services delivery and its quality are
dependent on the gap between expectations of customers and the actual service delivery. After 1985, the
literature on services exploded in the form of Journal Articles, Books, and Conferences and the formal
areas under the umbrella of services management emerged i.e. Services Design, Service consumption
experience of consumers, and services Quality with the perspective of customer satisfaction. The aim of
this paper is to frame the evolution of service quality assessment from the emergence of marketing from
economics going through the production orientation, product orientation, product quality measurement,
services management emergence as a thought to service quality frameworks and models till present with
the debate of a paradigm shift from product orientation to service orientation. The future implications and
directives are discussed after framing the past.

2. Emergence of Marketing Thought

The field of marketing originates from the concepts of economics, where the economic exchange was the
focus. The exchange of goods was regarded as the phenomena of demand and supply. In this era of later
19th century, the value theory emerged as an economic thought, which focuses on the input factors and
determined the quantities and prices. The productivity was regarded as a function of production. The
higher production with minimal cost as inputs for manufacturing was regarded as the productivity. All the
Classical and neoclassical economic concepts concentrate on exchange of tangibles goods to create value
for customers (Hunt, 1991). Economics provided bases for the emergence of marketing thought. Pure
economics were unable to explain the actual industry and commercial potentials requirements. Scientific
management in the start of 20th century started to discuss the production efficiency and raised the issues
of distribution and surplus supply (Vargo and Morgan 2005). Firstly, Shaw in 1912 (Shaw 1912) initiated
the scholarly publication on marketing and discussed the importance of distribution and supply with the
viewpoint of the producer. He traced the emergence and development of intermediary from the era of
barter system to more organized production system and distribution. He argued that, in commercial
organizations, businesspersons were shifting their focus towards efficient system of distribution and
supply by eliminating the traditional intermediaries like wholesalers. Shaw identified the need of
marketing specializing services such as transporting, sharing of risk, selling, assembling, assorting, and
reshipping. He also identified the importance of functional intermediaries interlinked with the producer
such as banks, insurance, transportation companies.

Formally, the era of marketing started as the 20th century turned out in 1900 - 1920; previously, the
concepts of exchange were discussed under the area of economics. It was the first time, when more
attention was started to give on the particular components of business system. The area of market
distribution had not been covered with the economic science; the focus was on land, labor and capital in
production as inputs for value creation (Wilkie and Moore 2012). In this emerging era of formal
marketing field, the marketing courses were started to be taught in the universities in the USA such as the
University of Pennsylvania, University of Michigan, and New York University in the name of Marketing
of farm products and Methods, Marketing of Products and Mercantile Institutions, respectively. The
attention was paid on distribution of produced farm and agricultural goods in these courses (Bartels
1951). From 1910 to 1920, the marketing area was flourished into three major fields of marketing. First
one is the marketing approach for commodities having focus on all the marketing actions for the
particular product category. Second approach is the institutional approach of marketing having focus on
institutions such as brokers and wholesalers. Third is the functional approach of marketing which covered
the marketing operational activities and the purposes concerned with these activities (Bussiere 2000).

2.1. Production Orientation

In this era when marketing bases were being developed from economics, dominantly the production
orientation was being held by the Business entities, which were also providing basis for the early thinking
of marketing the goods. This production era was focusing and concentrating on just the manufacturing
and production of goods, not on the distribution of these goods and services associated with the product.
The main thought was to produce the goods keeping the customer need a secondary issue, as production
stimulates the customer buying that is why, all the responsibility was on the shoulders of independent
wholesalers and retailers. The limited product line makes the demand more than supply, so, orientation
was just to meet the requirements of production not the customers‘ requirements (Fullerton 1988).

The effort increased on the production was not carried out easily, and the revolution in the production was
by no means accomplished from here 1870 or even from here 1930. Only after decades of the effort by
the skilful people made the idea of interchangeable parts become a reality of the operation in production
on a large scale (Hounshell 1985). Landes in 2003 (Landes 2003) argued that high technological
innovation and industrial production revolution are often regarded as the modernization. The use of
steam, water, and electric power is discussed in that book to have maximum production and
manufacturing output of machinery. The early achievement of the Industrial revolution is the production
of cloth mechanically. The manufacturers of cloth, however, were utilizing the labor for production
manually. Production increased enormously by utilizing a lot of labor in plants, in Germany and Britain.
In USA there were shortage of labor, so, they focused more on machinery manufacturing and production
(Heskett and Giorgetta 1980). In this era, firms were only focusing on production and engineering and
they were not concerned with marketing. The researcher‘s articles and speeches were only discussing
factory productivity and technology (Sheldon and Arens 1976).

In the same era when manufacturing with higher output and productivity was considered as marvelous
success, inspection was considered as a quality control activity in measuring the product quality.
Frederick W. Taylor in production shops regarded inspection as an authentic activity to measure the
quality. Effective Management of the manufacturing shop can be done by application of Inspection.
Radford in 1922 (Radford 1922) developed a formal link between the Inspection and Quality
Management and argued that quality assurance can be performed with management responsibility and
commitment. After manufacturing, the inspection of products with accepted and rejected samples was
regarded as a formal quality control activity. The early thought of marketing started to raise questions
related to the role of intermediaries and distribution in creating value (Vargo and Morgan 2005). Shaw in
1912 (Shaw 1912) argued that the industry is concerned with the application of movement in changing the
form and place of matter i.e. production and distribution.

1.1. Formalized Marketing Thought (1920 – 1960s)

Wilkie and Moore (Wilkie and Moore 2012) argued that the second era of Marketing thought
development is from 1920 – 1950 which should be named as the formalization of Marketing Field. In this
era, marketing thought has been converted into a formalized and structured field due to some insightful
changes in the society. The United States of America went through an economic boom in 1920s but
reached to the great depression in 1930s and then stroke of World War II caused major societal changes
and shifts in the approaches of academia researches and business entities.

The functional approaches were identified in this era, which falls under the three categories i.e. supplying
to the markets physically, creating more opportunities and methods for the exchange of products, and the
creation and identification of new functional benefits associated with this exchange. Shepherd and
Shepherd in 1947 argued that marketing is a function of production, creating a utility for consuming. He
regarded change of form as production activity, change of time as an agricultural activity, change of place
as a distribution activity, and possession of utility as a formal marketing activity.

In this era, Quality was regarded as a scientific method and important aspect of production of goods. In
this era when mass production is considered as the most focused area of industries, the quality control
focus must be on a mass scale productivity, most effective and efficient use of raw materials, minimum
defected items, and minimum inspection cost (Shewhart 1931). The marketing discipline and field
flourished in a way that can help the managers in pursuing the marketing management effectively. The
field started to discuss the issues with the perspective of marketing managers to help them with their jobs
in managing marketing activities.
The activities of marketing become more formalized and operational oriented in this era. Due to this shift
of marketing thought into the managerial perspective, the courses of marketing management were
designed to prepare students for special jobs of marketing managers. The texts, concepts, and topics of
‗Market segmentation as a managerial Strategy‘ were described and explained by Wendell Smith in
1956‘, ‗The Marketing Concept‘ by John Mckitterick in 1957. The concept of 4p‘s introduced during this
era by E. Jerome McCarthy in 1960, The Marketing management as analysis, planning and control by
Philip Kotler in 1967, were the creations during this era. The marketing field was regarded as a Science
when science disciplines were started to be used by embedding mathematics, statistics, and computer
technology for the sake of research, decision making and analysis.

Paradigm Shift to Services Orientation (1950s)

After the economic crisis of 1929, the thought of political and social welfare started to be re-evaluated
and revisited. The role of government increased in the form of regulations and rules on the businesses.
The societal change causes the employments to shift towards services (Vargo and Morgan 2005). The
thought of Marketing during the 1930s continued to develop within its product-functional-institutional
framework, but answered the changes of the economic and social environment. The development of new
towns and the wind of consumer rights, needs, and wants the traditional thought of distribution shifted
towards the consumer oriented distribution activities, keeping in view the new social values and controls.
The primary objective of any marketing activity was started to be focused on consumer interests and
solving different consumer oriented market problems (Bartels 1962). The marketing field started to have
multiple facets due to the wind of Globalization and entry of different scholars, practitioners in this field
from all over the world. As well as scholarly publishing is concerned, there were a number of Journals
came on the scene such as Journal of Retailing, Journal of personal selling and Sales management,
Marketing Science, Journal of consumer marketing, International journal of marketing research, etc. The
field of marketing were growing and evolving in a way that is moving from the centralized system of
control and command towards the free market-based systems (Wilkie and Moore 2012).

After 1950s, during economic expansion, the marketing thought began to shift towards the role of
marketing in the whole process of exchange. The two important thoughts evolved i.e. consumer behavior
and Marketing Management by Sheth and Gross (Sheth and Gross 1988). Both of these views were
grounded in the marketing, having objective to address the profitability and sales of firms with the goal of
satisfying the consumers‘ desires. Consumer behavior emerged taking the idea from psychology and
began to address the habits of consumers, consumer choices, acquisition of information, consumer
insights, happiness, and the behaviors of purchasing.

The second field grounded in Marketing, the marketing management, emerged talking about the product
differentiation, segmentation of markets, market strategies, and penetration into markets, Internal
Marketing, and relationship marketing. Services were considered part of marketing thought, but they were
described as support activities to the production and marketing of goods. The services thought was
present but just focused on providing aid to production and distribution goods to markets (Fisk, Brown,
and Bitner 1993). The examples of existence of services thought can be studied from the book by Grether
in 1930 (Grether 1930) in which the chapter of selling and marketing of intangible services was written,
and in broad definition of services was elaborated that all those nonphysical and intangible activity
performed for which consumer spend money in exchange.
The heterogeneity nature of services is discussed in this text with the focus on marketing approaches
associated with the marketing of services. Breyer in 1931 (Breyer 1931) also discussed the marketing of
telephone and electricity services as intangibles. The issues related to the distribution of special services
of telephone and electricity to the consumers was elaborated differently as compared to tangible goods.
There is not a definite one reason that can be given to prove the basis of emergence of services as a core
area of Interest; however, some reasons can be given. First, the rapid growth of behavioral aspect
movements of consumers and the recognition that consumer choice is just not concerned with the utility
benefits and performance of the goods. Secondly, the increased trend of writings about services in
academic and popular literature, talking about the conversion of goods economies into service economies.
Thirdly, the increased focus of practitioners on human relations aspects of marketing to create
differentiation for their products (Berry and Parasuraman 1993). The year of 1953 contains an interesting
beginning of services orientation and marketing literature out of which, most of them were published in
1970s. There are 120 publications regarding services management that were conducted within these 27
years of span. The distinct writers of this era are Christian Grönroos, Stephen Brown, Pierre Eiglier,
Leonard Berry, Eric Langeard, William George, Christopher Lovelock, Eugene Johnson etc. Their
contributions to the services marketing research are remarkable (Brown, Fisk, and Bitner 1994). Services
were not taken as a discipline, previously, before 1950s. That is the reason that early history of marketing
deal with the selling of agricultural goods and services are just considered as the activities provide aid to
the selling of goods, not a formalized discipline of study. Banking, Insurance, Transportation,
Accounting, others are considered to provide support to the selling of goods (Bartels 1988).

The most of the scholars who were involved in studying and exploring service marketing in the 1950s and
1960s did the research by their dissertation research. McDowell in 1953 and Parker in 1958 conduct
researches on services marketing. Johnson in 1969 (E.M 1969) was the first scholar who studied the
differences between products and services in 1969 due to the difference in their nature. Regan in 1963
(Regan 1963) discussed that services are activities and satisfactions that are offered for sale or can be
provided associated with the sale of goods. He asserted that growing sale of commodities and goods
require the system of services due to awareness of consumers and their more demanding behaviors. Judd
in 1964(Judd 1964)also descriptively proposed the definitions of services. Rathmell in 1966 (Rathmell
1966) described very innovatively the properties and characteristics of services as compared to goods and
goods orientation. No doubt, even in the case when services are to support the goods marketing, the
service orientation needs to be seen in the deeper context of consumer satisfaction that was lacking
before. It was asserted in this study that services contribute to the 30% - 40% of the total expenditures of
the consumer, if we observe the whole economic activity. It is asserted that services thinking and culture
are necessary to satisfy the consumer intrinsic needs. The services can be categorized into three types; (1)
services in which goods are rented out (2) services in which ownership of goods are transferred (3)
services in which goods are not provided just the activities are performed. Services are said to be a verb,
an action, while good is said to be a noun and object. Now, to deliver some service different tangible
objects provides aid to make it useful, while, to deliver some products services support to make it useful.

In the same way, Blois, Weinberger, Shostack, Gronroos, (Blois 1974) performed substantial research in
the field of services and pave the new ways of services research in 70s. The prominent breakthrough
improvements before 1980s were the description of differences between the product and services. The
major area of focus was the demarcation of differences of characteristics of services than products such
as, Intangibility, Inseparability, heterogeneity, and perishability (Brown, Fisk, and Bitner 1994).
Wyckham, Fitzroy and Mandry in 1975 (Wyckham, Fitzroy, and Mandry 1975) criticized the
categorization of services characteristics in all situations and conditions. It is argued in this study that
services require classifications and principles having a number of dimensions keeping in view the
different market situations, conditions, characteristics, and organizational strategy of marketing. Dan R.E.
(Dan R.E 1978) argued in 1978 that services marketing require different Strategies and strategic
approaches than products. Lovelock in 1979 (Lovelock 1979) and Berry in 1980 (Berry 1980) conducted
research and argued about the differences of Services Marketing approaches than Product Marketing.

1.2. Services Management: a structured Field (1980s)

Brown and his companions (Brown, Fisk, and Bitner 1994) in 1994 gave the name of ‗Scurrying About‘
to the era of 1980 to 1985 for services. Starting from 1980 the foundations of services management began
to be developed and strong. The new entrants and intense rivalry in services sector encouraged the
researchers, consultants, and managers to come together and study the services management with specific
to the service industries and companies, such as, Financial Services, Transportation, health care and
telecommunications. Mills, Chase and Margulies (Mills, Chase, and Margulies 1983) argued that
customers and clients should be taken as a partial employee in services management for achieving
maximum productivity because of customer involvement in the process of services delivery, when service
provider and service consumer are in the situation of high interaction and contact.

Lovelock in 1983 (Lovelock 1983) investigated that the managerial activities and practices in services.
Different services types have been investigated in this article and substantial strategic insights of
marketing practices were provided for each nature of services. It is argued that services marketing will be
better executed if services are classified not with respect to the industrial sectors but with respect to the
nature of services having related marketing characteristic.

Gronroos in 1984 argued (Grönroos 1984) that performance could be studied by interrelating it with the
customer expectation; it is argued in this study that actual service performance or technical functions
delivered by the service are very important to meet the customer expectations. Berry, Zeithaml and
Parasuraman found the determinants of service quality from a qualitative analysis by using focus group
interviews. The focus group identified the determinants; Reliability, Responsiveness, Access, Courtesy,
Communication, credibility, Security, Understanding, and Tangibles (Berry, Zeithaml, and Parasuraman
1985).

Zeithaml, Parasuraman, and Berry in 1985 (Zeithaml, Parasuraman, and Berry 1985) elaborated the
unique service features, marketing problems associated with these features, and marketing strategies to
solve these problems. Parasuraman and his fellows in 1985 (Parasuraman, Zeithaml, and Berry 1985)
developed the conceptual model of Service Quality, in which the service quality gaps were explored and
investigated. It is argued that the concept of quality is emerging from the goods or product quality. Taking
the same basis of quality i.e. fitness for use, the Japanese concept of zero defect, expectations and
performance, it can be said that the difference of expectations for services and the actual service delivery
is the quality gap. Service Quality is the measure of the difference of customer expectation of service and
the actual service experienced by the consumer. The five gaps identified in this conceptual model
revolutionized the quality assessment and measurement of services. Some other contributions of
researchers include Berry, Booms & Bitner, Gronroos, Zeithaml, (Berry 1995), (Booms and Bitner 1981),
(Grönroos 1981), (Zeithaml 1981) in the services research.
The contributions of literature published in Harvard Business Review also substantially improve the
service management; (Levitt 1981) Levitt in 1981 argued that service management approaches can be said
to be different if the area of focus is differences on the basis of tangibles and intangibles. There are also
some similarities between marketing of tangibles and intangibles. It is argued that in any marketing
activity even in product marketing, there is delivery of intangibles, care, trust, value and they make the
offers more attractive.

(Ja 1983) JA in 1983 argued that quality is more than making a good product. It involved new and
innovative approaches of services delivery such as education to customers, education to employees,
efficiency in the delivery, standardization of service response, effective pricing policy, outsourcing and
subcontracting to make your offering a quality offering. Shostack (Shostack 1984) described about
service designing before delivering by elaborating the importance of blueprinting of services process.
Some contributions towards retailing of services also came on the scene like Berry, Kelly and George
(Berry 1979; Kelly and George 1982).

The stage when services management had become formalized and structured discipline started to be
taught in every business school is the period started from 1985. The specific areas and topics of services
management started to be researched during this period are i.e. Service Quality, Service consumption
experiences, Design of Services, customer relationship marketing, and Internal Marketing. The
philosophy of total quality management and customer satisfaction linked with services management is the
fundamental base of service quality. The roots of service quality came from the study of Gronroos and
Shostack in 1983, Lehtinen and Lehtinen in 1982 (Grönroos and Shostack 1983; Lehtinen and Lehtinen
1982). Customer satisfaction concept came from the study of Oliver in 1980 (Oliver 1980) and Brown,
Fisk and Bitner in 1994. Service Quality (Fisk, Brown, and Bitner 1993) with relation to the service
satisfaction are explored by Bitner in 1990 and Berry in 1995 (Berry 1995; Bitner 1990; Bitner, Booms,
and Tetreault 1990). In these researches, the role of service experiences and customer expectations are
discussed, and customer satisfaction issues related to quality of service delivery are addressed. In the
stream of service management with one of the major streams of study is the study of service consumption
experience, a situation, when customers and service providers interact with each other. During the service
encounter, as the services are heterogeneous, the service quality management is very much concerning.
The roots of service encounter management thought emerged from the studies of Carizon, Czepiel in 80s
(Carizon 1987; Czepiel, Solomon, and Surprenant 1985). Lewis and Entwistle argued about the role of
employees in the service execution and customer experience (Lewis and Mitchell 1990). Solomon and his
fellow researchers in 1985 elaborated the critical issues emerge during customer and service provider
interactions (Solomon et al. 1985). The involvement and role of customer in the services delivery is also
an important concern in services management thought investigated by Goodwin, Kelley, Larsson and
Bowen 1 in this decade (Goodwin 1988; Kelley, Donnelly, and Skinner 1990; Larsson and Bowen 1989).

As well as, service operations are concerned; it involves the service process management. Total Quality
Management as a philosophy of process improvement provides support in the service operational
designing. Shostack in 1987 (Shostack 1987) argued about the structural engineering of the services
operations as fundamental bases for service satisfaction, quality, and deliverables. It is argued that the
service - positioning strategy is the service itself. Services operations as the basis for the service quality
is also described by Kingman in 1989. Services blueprinting is regarded (Kingman-Brundage 1989) as
different from simple service operations. The role of customer and activities in which customer is
involved is regarded as service blueprinting (Brown, Fisk, and Bitner 1994). Some very important
contributions towards exploring the relationship of service deign, process mapping on service quality
have been contributed in the beginning of 90s (Baum 1990; George and Gibson 1991; Johnston 1987;
Scheuing and Johnson 1989). The role of technology in service designing is investigated by Quinn and
Paquette (Quinn and Paquette 1990).

1.3. Perceived Service Quality measurement and Scaling

A service Quality scale is developed by Parasuraman in 1988, (Parasuraman, Zeithaml, and Berry 1988),
which is taken as a remarkable contribution towards the Service Quality assessment (Berry, Parasuraman,
and Zeithaml 1988). Berry in 1988 investigated organizational factors which can cause problems in
service delivery. One of the important studies under the umbrella of Service Quality is the study
conducted by Zeithaml in the same year (Zeithaml, Berry, and Parasuraman 1988) in which it is argued
that service quality management concern is the issue on which organizational profitability is very much
dependent, but it is most difficult issue to be addressed and managed. The factors were identified in the
study that can influence positively and negatively the four gaps of the service quality model. One factor is
the control and communication system implemented within the service providing organization and second
factor is the outcome of that control and communication system, including the clarity of roles and
responsibilities of the employees.

In services execution and processing, a major input is the customer involvement in the service execution
process. There may be the number of uncertainties in this input of customer participation in services
operations. There is client employee interaction during service production unlike product consumption,
which can be called as co-production. The service system design can be influenced by the different
conditions and variations of coproduction of services (Larsson and Bowen 1989). In the same year, 1989,
an empirical investigated is conducted by Woodside (Woodside, Frey, and Daly 1989) in which Service
Quality, Customer Satisfaction and behavioral intentions are analyzed and link of these constructs with
each other is tested. It is argued that service delivered by actions lead towards the service quality
perception of customer that leads to customer satisfaction and then intention of consumer behaviors come
outside as a result. Brown and Swartz conducted a study on gap analysis of professional services and
explored service quality concept of professional services in medical services environment (Brown and
Swartz 1989). The gaps identified were the differences between the services experience expectations and
the actual service encounter. Empirical investigation is performed between the expectations of patients as
customers and physicians as service providers.

The Service Quality Management continued to evolve during and after 1990; binding the different
streams of services management, involving management disciplines such as Operations Management,
Human Resource Management, Total Quality Management, Marketing, Organizational behavior and
studying its implications in different sectors, Industries, organizations.

One of the important contributions towards the service quality assessment was the investigation by Berry
in early 90s (Berry, Zeithaml, and Parasuraman 1990) in which five imperatives for improving Service
Quality were discussed. It is argued that there are five determinants of Service Quality Tangibles,
Assurance, Empathy, Responsiveness, and Reliability. Further to this, a synthesized model of service
quality is presented by Brogowicz and fellow researchers (Brogowicz, Delene, and Lyth 1990) which
include dimensions of service quality having implications for managerial roles of services development ,
execution and control. This research is focused on the debate of quality assurance in services related to
the particular managerial activities. This model is developed based on service quality thoughts presented
by Nordic School of thought and North American School of thought. The synthesized model developed
by Brogowicz argued that company mission and objectives, planning, implementation and control
activities, service offerings specifications and service offerings will play the role of input for perceived
service quality, while, the environmental influences, the company image and reputation and traditional
marketing activities will play the role of input for Service Quality expectations. The difference or gap
which will emerge between expectations and perceived services will be regarded as Service Quality Gap.

Bolton and Drew in 1991 developed a model (Bolton and Drew 1991) of service quality and investigated
the relationship of previous experiences and expectation about services with the service performance,
service quality and value received by the service provider. The two approaches to have service quality
assessment and the dimensions of service quality are presented in 1991. First approach discusses about
(Lehtinen and Lehtinen 1991) the dimensions of physical quality, interactive quality, and the corporate
quality, which is regarded as three dimensional quality approaches and the second approach deals with
process quality and output quality, to which the name of two dimensional quality approach is given. In
this research, these dimensions are explored, explained, and empirically tested in a restaurant.

Reinvestigation is performed to measure the service quality by Cronin and Taylor in 1992 (Cronin Jr and
Taylor 1992) and the relationship of service quality, customer satisfaction and purchase intentions is
explored. Critiquing the Service Quality measure of ‗SERVQUAL‘ developed in Parasuraman study as a
measure of the gap between expectations and perceived services is not an adequate measure, a model of
Service Quality with the perspective of performance is developed in this study, to which the name of
‗SERVPERF‘ is given. In the same way, Parasuraman, Boulding and Berry in the mid 90s (Berry,
Parasuraman, and Zeithaml 1994; Boulding et al. 1993; Parasuraman, Berry, and Zeithaml 1993;
Parasuraman, Zeithaml, and Berry 1994a; Parasuraman, Zeithaml, and Berry 1994b) contributed in
thought of service quality, service quality assessment and its dimensions.

(Cronin Jr and Taylor 1992) argued that service quality can be the better measured by the performance
based measurement constructs which have relationship with customer satisfaction (Cronin Jr and Taylor
1994). Cronin and Taylor put an effort and reconciled the concepts of ‗SERVQUAL‘ and ‗SERVPERF‘
related to service quality and argued it is not articulated that SERVQUAL model is not a measure of
Service Quality but the argument is the inadequacy as compared to SERVPERF. The inadequacy can be
reduced by relating the performance factor with purchase intentions, value and customer satisfaction
influence more as compared to Service Quality. (Johnston 1995) Johnston in 1995 initiated five debates
on Service Quality and identified the determinants of service quality. It is argued that satisfaction is the
result of a service encounter and Service Quality is the measure of the overall impression and image of
the service.

Zeithaml, Berry and Parasuraman developed a conceptual model bases on the concept that behavioral
intentions of the consumer towards the service provider is the outcome of overall service quality
provided, and superior service quality leads to favorable intentions of consumers, which leads to higher
profitability for service provider organizations (Zeithaml, Berry, and Parasuraman 1996). Asubonteng
performed a critical review on SERVQUAL scale as a measure of service quality. It is argued that the
dimensions of service quality, based on which this instrument were developed give an idea of general
service quality of the service firm. It is argued that sector specific dimensions of service quality needed to
develop and incorporate for the sake of service quality assessment. The sector settings and environment
specific factors demand more research and theoretical development in identification of service quality
dimensions, to have the better assessment of Service Quality in that particular industry.

Schneider in 1998 investigated (Schneider, White, and Paul 1998) the link of Service Climate with
Service Quality perception of customers. It is argued that to achieve customer satisfaction and retaining
customers, the higher perceived service quality is needed and it is attainable by creating an environment
and climate of service within the organization. It is argued that internal activities, tasks, processes, goals
and rewards should be managed in a way which result into service culture and behavioral intentions that
promote the better perceived service quality. The service climate refers to be the perception of service
providing employees that the tasks, activities, processes, policies and procedures, behaviors related to the
delivery of services. In the year of 1998, some more researchers related to Service Quality emerged. The
factors of culture linking with Service Quality (Donthu and Yoo 1998),the concept of service fairness
(Seiders and Berry 1998), the relationship of perceived service quality, service loyalty, and switchingcost
(De Ruyter, Wetzels, and Bloemer 1998) are explored. The debate on service loyalty relating with the
service quality investigated and explored by Bloemer in 1999. The empirical study is conducted in four
different types of service industries and the dimensions of service loyalty are identified; the word of
mouth, complaining, purchase intentions, and price sensitivity (Bloemer, De Ruyter, and Wetzels 1999).

1.4. Diversification in Services Quality

With the emergence of the 21st century, the service quality assessment and measurement started to be
more diversified with the debate of validation of dimensions of service quality in different service sectors.
One of the important studies in this regard came in the literature, (Lee, Lee, and Yoo 2000), in which it is
argued that determinant of service quality; tangibles is the most influential dimension in services which
are based on equipments and facilities, and responsiveness is dominant in services which are people
based. In the same year, another conceptual study of diversifying and fragmenting the Service Quality
thought is conducted (Zeithaml 2000) by combining the debates of different researchers in this article
entitled with ‘Service quality, profitability, and the economic worth of customers: what we know and what
we need to learn’. In this article, the literature is examined with the viewpoint of analyzing the offensive
and defensive effects of Service Quality on profits, the relationship of perceived service quality and
purchases intensions, the impact of selecting profitable customers and customer segments, the key drivers
of service quality, customer retention, and profits.

During these early years of 21st Century, some important additions in the service quality assessment
literature were; Comprehensive framework of Service Quality (Dabholkar, Shepherd, and Thorpe 2000),
New thoughts of conceptualizing Perceived Service Quality (Brady and Cronin Jr 2001), in which the
dimensions of outcome, interaction and environmental quality are empirically proved to be the
dimensions included in service quality assessment. Gronroos in 2001 (Grönroos 2001) compared the
product marketing models and service marketing models and argued that products are things, while
services are processes and activities. It is described that result of product marketing is ‗outcome
consumption‘ and services consumption are regarded as ‗process consumption‘. The articles entitled with
‗Performance-only measurement of service quality: a replication and extension (Brady, Cronin Jr, and
Brand 2002); ‗Service quality delivery through web sites: a critical review of extant
knowledge‘(Zeithaml, Parasuraman, and Malhotra 2002), ‗Service loyalty: the effects of service quality
and the mediating role of customer satisfaction (Caruana 2002)are the prominent researches in Service
Quality Research. In the Journal of Academy of Management Executive, a research brief is published
(Schneider 2004), focused on service quality management thought, in which it is argued that Services
Quality Management is a multidisciplinary field which is integrated with the disciplines of Services
Marketing, Services Operations, Services Human Resource Management, Services Quality. Finally, after
the research of years of development of Service Quality Measurement, a breakthrough objective 22 items
customer perceived service quality scale is developed by the same North American School of Thought
(Parasuraman, Zeithaml, and Berry 2004) who developed the conceptual model of SERVQUAL. The 22
items scale constitutes the five dimensions of service quality; Tangibles, Empathy, Assurance,
Responsiveness, and Reliability.

The concept of Relationship Services Marketing, with marketing models are investigated by Rust and
Chung in 2006 (Rust and Chung 2006) and some important studies from the Literature were identified
related to topics of strong relationships with customers in service settings to have better perceived service
delivery and quality. In the context of service relationships, the concepts of customization and privacy are
explored. Another research in 2007 (Caceres and Paparoidamis 2007) studied the constructs of
relationship quality, trust, commitment B2B loyalty with relation to the overall Service Quality. Sector
specific service quality models were investigated (Ladhari 2008)to elaborate the issues related to the
development of sector specific Service Quality measurement instruments. It is argued that there are
different conceptual and empirical issues in service quality assessment scales, when particular industry
implications are concerned. The comparative and contrasting study of different service quality
instruments is conducted in this article.

A very prominent study (Eisingerich and Bell 2008) of customer education and knowledge with relation
to the perceived service quality and trust is conducted and it is argued that customers‘ service knowledge
and education provided have the significant effect on customers‘ trust building and relationship with the
service provider, which in result increase perceived technical and functional service quality. Another
important latest research related to the issues in assessment of service quality and its strategic importance
were addressed by Jemmasi in 2011 (Jemmasi, Strong, and Taylor 2011). It is argued that SERVPERF;
importance and performance comparison scale is a better tool for measuring the service quality, especially
for strategic planners of service industries, as compared to SERVQUAL; an expectation and perception
comparison scale.

In 2012, a new research perspective on service quality thought emerged (Calabrese 2012) related to the
comparison of Service Productivity and Service Quality. It is explored that based on the manufacturing
oriented productivity concept, the comparison of output and Input is regarded as efficiency. Efficient
manufacturing system is regarded as most productive system and has a manageable effect on the quality
of products. However, in services, often productivity and service quality cannot be achieved
simultaneously, as, for higher productivity in services causes the perceive service quality to be
compromised. The balance between productivity and service quality in services is needed to be very
important for the sake of customer satisfaction. In this study, the new perspective of service quality
research is provided for future research that can be further explored, studied, and tested in organizations.
One of the latest researches, published in 2013, (Yee et al. 2013) related to Service Performance argued
that as the employees in high customer contact services, the employees attitudes, personality traits,
learning goal orientation, performance goal orientation , top management commitment, Leadership styles,
motivational factors have influence on service quality and performance of those employees who actually
deliver the services.

2. Methodology
This study is a historical discourse analysis using the content analysis method to trace and summarize the
development of service quality management and comparative analysis between production orientation and
service orientation in research and practice. The paradigm shift from production orientation to service
orientation is analyzed by going through from some dominant text, literature, and studies available on
differences in approaches of service and product marketing and on service quality assessment. The
literature is selected in a historical order from the beginning of the 20th century to present having
dominance in the knowledge. The history of events, thoughts, investigations, ideas, conceptual studies,
empirical studies, critical investigations, related to service quality, marketing and management, are
identified, referred with their interpretations as past events and facts. The literature included in this study
consists of research articles, books and some dissertations.

3. Discussion
Services management includes services quality management, services marketing, services encounter,
services operations and process, services designing, customer expectations‘ management, services
recovery management in case of service failure, services after service deliveries, management of service
delivery, management of attitude of employees (Human behavioral management), managing cultures etc.
Effective service management, which can lead to the wellbeing of consumers and society demands to
manage issues and constructs related to these areas. The dimensions of service quality with the objective
of consumer satisfaction cannot be generalized if specific, diversified, customized and knowledge based
services are concerned. However, overall and general services assessment can be done using general
dimensions of service quality. Service orientation, climate, and culture influence the service performance
and require different approaches and strategies than product performance. The dependence of perceived
service quality on consumer attitude, behaviors, values, beliefs, norms and culture is also one of the
distinct features in services management.

4. Conclusion
Service delivery is regarded as an exchange of actions, knowledge, awareness, attitude, behaviors,
activities, culture, consumer satisfaction, value, wellbeing between service provider and customer. These
intangibles are equally important for providers having core business model designed for products. Product
and manufacturing focused thinking will not be able to develop the sustainable competitive advantage.
The service thinking and behaviors are needed to be the strategic intent of companies. Services thinking
help the companies to serve their customer with more closed interpersonal and technical behaviors which
in turn yield customer satisfaction and loyalty. The companies‘ business model success has now become
very dependent on services delivery with equal focus on service quality management, either it is a
manufacturing concern or services concern organization. The paradigm has been shifted to service
orientation with globalization and customer awareness.
The service quality dimensions cannot be restricted to particular dimensions especially in case of pure
services like lawyer, instructor, teacher, doctors, and professional consultancy services. Secondly, as
services encounters or experiences are interactions between service provider and consumer, so, services
are very much dependent on employees or service providers and consumers. In interaction intensive and
high contact services the services dimensions cannot be limited to a certain extend. The dimensions of
service quality will be keep evolving and emerging in nature. The service provider and service consumer
relationship, quality parameters will vary according to the situations and conditions during service
encounter. Service Quality standardized dimensions, no doubt provide help in service management but in
case when we are concerned with controlling general basis of service quality. Therefore, when we see
services specifically with the viewpoint of consumers‘ different state of mind perceptions of service
quality, it will depend on certain types of extraordinary activities, actions, and intangible deliveries that
will be explored, emerged, and evolved. The service quality dimensions; tangibles, assurance, empathy,
reliability, responsiveness are the valuable dimensions provide basis for service quality assessment and
management but with these the delivery of superior services requires more dimensions. Service Quality
dimensions will vary with relation to the consumers‘ cultural backgrounds. Service deliveries for ultimate
benefits and well-being of society require transformational leaders in the role of service providers, who
can transform the consumers‘ attitude and cognitive behaviors, and it cannot happen, with just viewing
services with respect to these certain dimensions.

Initially, with the advent of marketing thought service delivery was not the strategic focus of firms either
providing pure services or manufactured goods. Now, service planning, delivery, service recovery,
behavioral intentions of service providers, the relationship dynamics between consumers and suppliers are
the strategic issues, and phenomena need to be addressed with almost same importance in pure services,
as well as manufacturing concern companies. The paradigm of production and product manufacturing
focus exclusive of service management has been shifted to strategic service management. Customers
decide to re-buy the products and services based on the suppliers‘ strategic service orientation in the
shape of service delivery rather than just on the base of product quality perception. The perceptual
orientation of customers has been upgraded and enhanced.

5. Limitations and Future Directions

There are many studies and literature written on services science, services management, and service
quality, which may not be included in this study. Another limitation is that it does not include any
empirical evidence related to the paradigm shift of services orientation. Based on this study, there may be
the unending debate and research on services management issues and areas. Service management in the
context of different sectors, nature of services, human interactions, knowledge and information
management, leadership, cultures, service climates, well being, societal development, quality of life,
spiritual development, etc can be studied and explored. The service quality research is specifically related
to a service encounter, service climate, productivity and service delivery objectives, service designing,
service processes, operations, societal service marketing, knowledge based services and services quality
management after service delivery can be taken into research and exploration. Service Quality assessment
concepts, dimensions, parameters, of pure services can be further explored. Service quality in relation to
the different cultural values and beliefs can be explored and studied. There is a strong need in determining
the dimensions of service quality of professional services. The services management research demands
the interdisciplinary contributions with relation to services science.
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