Service Quality can also be defined according to both the
what and how a product or service is delivered. Gronroos distinguished between Technical quality and Functional quality. Technical Quality is concerned with the outcome of the delivered service. Customers use service quality dimensions/attributes such as reliability, competence, performance, durability, etc. to evaluate technical quality. Functional Quality is more to do with how the technical quality is transferred to the customer. Service quality attributes such as responsiveness and access would measure functional quality of the service transaction.
2 CONTINUUM OF SERVICES Defining quality for Services is more difficult than for products because of the intangible, variable nature of service characteristics. Unlike product quality, customers frequently lack the necessary information to evaluate service quality. In assessing service quality, the services are viewed along a continuum ranging from pre-sale to post-sale activities. 3 Pre-sale Services Post-sale Services Transaction Services DIMENSIONS OF SERVICE QUALITY Reliability perform promised service dependably and accurately Responsiveness - willingness/readiness to provide prompt service Competence - possess knowledge and skill to perform the service Access - approachability and ease of contact of service personnel Courtesy - politeness, consideration, and friendliness of service personnel 4 UNCONDITIONAL SERVICE GUARANTEE: MANAGEMENT VIEW A Guarantee forces you to focus on customers A Guarantee sets clear Standards A Guarantee generates feedback A Guarantee forces you to demand why you fail A Guarantee builds customer loyalty 5 CUSTOMER SATISFACTION All customers want to be satisfied.
Customer loyalty is only due to lack of better alternatives.
Giving customers some extra value by exceeding their expectations will delight them and ensure their return. 6 CUSTOMER FEEDBACK AND WORD- OF-MOUTH The average business only hears from 4% of their customers who are dissatisfied with their products or services. Of the 96% who do not bother to complain, 25% of them have serious problems. The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers. About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly.
7 CUSTOMER FEEDBACK AND WORD- OF-MOUTH A dissatisfied customer will tell between 10 and 20 other people about their problem.
A customer who has had a problem resolved by a company will tell about 5 people about their situation.