Service Quality

Learning Objectives
 Describe

the 5 dimensions of service

quality.  Use the SERVQUAL gap model to diagnose quality problems for a service firm.  Develop unconditional service guarantees.  Plan for service recovery.

Moments of Truth
 Each customer contact is

called a moment of

truth.
 You

have the ability to either satisfy or dissatisfy them when you contact them.

A

service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.

5 Dimensions of Service Quality (RATER)



Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day. Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer. Tangibles : Physical facilities and facilitating goods. Example: cleanliness. Empathy: Ability to be approachable (e.g. being a good listener) Responsiveness: Willingness to help customers promptly. E.g. Avoid keeping customers waiting for no apparent reason.

Perceived Service Quality

Word of mouth Personal needs Past experience

5 Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles

Expected service

Service Quality Assessment 1. Expectations exceeded ES<PS (Quality surprise) 2. Expectations met ES~PS (Satisfactory quality) 3. Expectations not met ES>PS (Unacceptable quality)

Perceived service

Gaps in Service Quality

Word -of-mouth communications Personal needs Past experience

Customer Expected service

GAP 5

Perceived service
Service delivery (including pre- and post-contacts) External communications to consumers

GAP 1

GAP 3
Translation of perceptions into service quality specifications

GAP 4

Provider

GAP 2
Management perceptions of consumer expectations

Costs of Service Quality

Failure costs External failure: Customer complaints Warranty charges Liability insurance Legal judgments Loss of repeat service Detection costs Process control Peer review Supervision Customer comment card Inspection Prevention costs Quality planning Training program Quality audits Data acquisition and analysis Preventive maintenance Supplier evaluation Recruitment and selection

Internal failure: Scrap, Rework Recovery: Expedite, Labor and materials

Customer Satisfaction
 All

customers want to be satisfied.

 Customer

loyalty is only due to the lack of a better alternative customers some extra value will delight them by exceeding their expectations and insure their return

 Giving

Expressing Dissatisfaction
Public Action Action Dissatisfaction occurs
Seek redress directly from the firm Take legal action Complaint to business, private, or governmental agencies

Private Action
Stop buying the product or boycott the seller

No Action

Warn friends about the product and /or seller

Making Customers into Champions

easy Walking wounded Could complain but dont; not happy but repurchase
How easy customers feel it is to contact British Airways

Champions Active in providing British Airways with information on quality of its services; loyal Remain Loyal Defect

Missing in action Defected; non-complaining not easy dont complain

Detractors Defected; vocally critical complain

Propensity to contact British Airways

Topics for Discussion

 How

do the five dimensions of service quality differ from those of product quality?  Why is measuring service quality so difficult?  Illustrate the four components in the cost of quality for a service.  Why do service firms hesitate to offer a service guarantee?  How can recovery from a service failure be a blessing in disguise?