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SERVICE QUALITY
Presented by: Brenda Marak
Flora Biswas
Nayanika Deori
Krishna Ch. Sagar
Silvester Topno
SERVICE QUALITY
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What is it ?
Service quality involves a comparison of expectations with
performance. According to Lewis and Booms (1983) service
quality is a measure of how well a delivered service matchesthe customers expectations.
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The main reason to focus on quality is to meet customer needs
while remaining economically competitive in the same time. This
means satisfying customer needs is very important for the
enterprises to survive.
The outcome of using quality practices is:
Understanding and improving of operational processes.
Identifying problems quickly and systematically.
Establishing valid and reliable service performance measures. Measuring customer satisfaction and other performance outcomes.
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Service quality is a business administration's term and describes
the degree of achievement of an ordered service.
In this connection, objective and subjective service quality can be
distinguished. Objective service quality is the concrete measurable conformity
of a working result with the previous defined benefit; since the
measurability is remarkable dependent on the definition's
accuracy, a measurable quality criterion easily can turn out as a
subjective one. Subjective service quality is the customers perceived conformity
of the working result with the expected benefit; this perception is
overlayed with the customers original imagination of the service
and the service providers talent to present his performance as a
good one.
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Characteristics of service quality :
Word-of-mouth, personal needs and past experience create an
expected Competency: Possession of the required skills and knowledge to
perform the service.
Courtesy: Politeness, respect, consideration and friendliness of
the contact personnel.
Credibility: Trustworthiness, believability and honesty. Itinvolves having the customer's best interest at heart: company
name, company reputation.
Security: Freedom from danger, risk or doubt: physical safety,
financial security, confidentiality.
Access:Approachability and ease of contact: Service is easilyaccessible.
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LINK BETWEEN SERVICE QUALITY AND
PRODUCTIVITY
Source of Gain First StepImprovement
Second StepImprovement
Final Result
Service Quality up Image/Perception of company
is up.
Better price can be charged or
price yield is better.
Productivity and profitability
improvement.
Volume is built up because of
the service/product
preference.
Economies of scale accrue due
to higher volume. Per unit
cost of production decreases.
Inspection and testing needs
are less elaborate due to
built-in improved Quality.
Costs of inception and testing
including employee costs are
reduced.
Rework and scrap are reduced
by getting the product or
service right the very firsttime.
Cost of scrap and cost of
reworking are reduced
considerably.
Complaints and warranty
claims are considerably
reduced.
The cost of providing special
service in the case of failures
in the field is very high. This
cost is drastically reduced by
claims reduction.
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MEASURINGSERVICE QUALITY
SERVQUAL
44 Item scale that measures customerexpectations and perceptions regarding
five service quality dimensions
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THE TANGIBLES DIMENSION
The SERVQUAL assessment of a
firms ability to manage its tangibles
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Tangibles Expectations
E1: excellent companies will have modern looking equipment.
E2: the physical facilities at excellent companies will be visually appealing.
E3: employees of excellent companies will be neat in appearance.
E4: materials associated with the service will be visually appealing in an excellent
company.
Tangibles Perceptions
P1: XYZ has modern looking equipment.
P2: XYZs physical facilities are visually appealing.
P3: XYZs employees are neat in appearance.
P4: materials associated with the service are visually appealing at XYZ.
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THE RELIABITY DIMENSION
the SERVQUAL assessment of a firmsconsistency and dependability in service
performance
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Reliability Expectations
E5: when excellent companies promise to do something by a certain time, they will do so.
E6: when customers have a problem, excellent companies will show a sincere interest in
resolving it.
E7: excellent companies will perform the service right the first time.
E8: excellent companies will provide their services at the time they promise to do so.
E9: excellent companies will insist on error-free records.
Reliability Perceptions
P5: when XYZ promises to do something by a certain time, it does so.
P6: when you have a problem, XYZ shows a sincere interest in solving it.
P7: XYZ performs the service right the first time.
P8: XYZ provides its services at the time it promises to do so.
P9: XYZ insist on error-free records.
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THE RESPONSIVENESS DIMENSION
the SERVQUAL assessment of a firmscommitment to provide its services in a timely
manner
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Responsiveness Expectations
E10: employees of excellent companies will tell customers exactly when services
will be performed.
E11: employees of excellent companies will give prompt services to customers.
E12: employees of excellent companies will always be willing to help customers.
E13: employees of excellent companies will never be too busy to respond tocustomers requests.
Responsiveness Perception
P10:
employees of XYZ
tell you exactly when services will be performed.
P11: employees of XYZ give you prompt services.
P12: employees of XYZ are always willing to help you.
P13: employees of XYZ are never too busy to respond to your request.
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THE ASSURANCE DIMENSION
the SERVQUAL assessment of a firmscompetence, courtesy to its customers, and
security of its operations.
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Assurance Expectations
E14: the behavior of employees of excellent companies will instill confidence in
customers.
E15: customers of excellent companies will feel safe in their transactions.
E16: employees of excellent companies will be consistently courteous with
customers.
E17: employees of excellent companies will have the knowledge to answer
customer questions.
Assurance Perceptions
P14: the behavior of employees of XYZ instills confidence in customers.
P15: you feel safe in your transactions with XYZ.
P16: employees of XYZ are consistently courteous with you.
P17: employees of XYZ have the knowledge to answer your questions.
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THE EMPATHY DIMENSION
the SERVQUAL assessment of a firms ability to
put itself in its customers place.
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The Gaps Model ofService Quality
Introduce a framework, called the gaps model ofservice quality.
Demonstrate that the most critical service quality
gap to close is the customer gap, the differencebetween customer expectations and perceptions.
Show that four gaps that occur in companies,which we call provider gaps, are responsible for the
customer gap. Identify the factors responsible for each of the four
provider gaps.
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Gaps Model ofService Quality
CustomerGap:
difference between customer expectations and perceptions
Provider Gap 1 (The Knowledge Gap):
not knowing what customers expect Provider Gap 2 (The Service Design & Standards Gap):
not having the right service designs and standards
Provider Gap 3 (The Service Performance Gap):
not delivering to service standards
Provider Gap 4 (The Communication Gap):
not matching performance to promises
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The Customer Gap
Expectedservice
Perceivedservice
Customer Gap
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Key Factors Leading
to the Customer Gap
Provider Gap 1: Not knowing what customers expect
Provider Gap 2: Not selecting the right service designs and standards
Provider Gap 3: Not delivering to service standards
Provider Gap 4: Not matching performance to promises
Customer
Expectations
CustomerPerceptions
Customer
Gap
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Customer Expectations
Company Perceptions of CustomerExpectations
Inadequate marketing research orientationInsufficient marketing researchResearch not focused on service qualityInadequate use of market research
L
ack of upward communicationLack of interaction between management and customersInsufficient communication between contact employees and managersToo many layers between contact personnel and top management
Insufficient relationship focusLack of market segmentationFocus on transactions rather than relationshipsFocus on new customers rather than relationship customers
Inadequate service recoveryLack of encouragement to listen to customer complaintsFailure to make amends when things go wrongNo appropriate recovery mechanisms in place for service failures
Key Factors Leading to Provider Gap 1Key Factors Leading to Provider Gap 1
Gap
1
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Customer-Driven Service Designs
and Standards
Management Perceptions ofCustomer Expectations
Poor service designUnsystematic new service development process
Vague, undefined service designsFailure to connect service design to service positioning
Absence of customer-driven standardsLack of customer-driven service standards
Absence of formal process for setting service quality goals Inappropriate physical evidence and servicescape
Failure to develop tangibles in line with customer expectationsServicescape design that does not meet customer and
employee needsInadequate maintenance and updating of the servicescape
Key Factors Leading to Provider Gap
2
Key Factors Leading to Provider Gap
2
Gap
2
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Service Delivery
Customer-Driven Service Designsand Standards
Deficiencies in human resource policiesIneffective recruitmentRole ambiguity and role conflictInappropriate evaluation and compensation systems
Lack of empowerment, perceived control, and teamwork Customers who do not fulfill roles
Customers who lack knowledge of their roles and responsibilitiesCustomers who negatively impact each other
Problems with service intermediariesChannel conflict over objectives and performanceDifficulty controlling quality and consistencyTension between empowerment and control
Failure to match supply and demandFailure to smooth peaks and valleys of demand
Key Factors Leading to Provider Gap
3
Key Factors Leading to Provider Gap
3
Gap
3
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Service Delivery
Lack of integrated services marketing communicationsTendency to view each external communication as independentAbsence of strong internal marketing program
Ineffective management of customer expectations
Absence of customer expectation management through all forms ofcommunication
Lack of adequate education for customers Overpromising
Overpromising in advertisingOverpromising in personal sellingOverpromising through physical evidence cues
Inadequate horizontal communicationsInsufficient communication between sales and operationsInsufficient communication between advertising and operationsDifferences in policies and procedures across branches or units
External Communications to
Customers
Key Factors Leading to Provider Gap
4
Key Factors Leading to Provider Gap
4
Gap
4
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Perceived
Service
Expected Service
CUSTOMER
COMPANY
Customer
Gap
Gap 1
Gap 2
Gap 3
External
Communications toCustomersGap 4
Service
Delivery
Customer-Driven ServiceDesigns and Standards
Company Perceptions ofConsumer Expectations
Gaps Model ofService QualityGaps Model ofService Quality
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MEASUREMENT OF
SERVICE QUALITY
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What is measurement of service
quality ?
To recap, service
quality focuses onthe needs andexpectations ofcustomers to
improve productsand/or services.
The measurementof service quality
measures the gapbetween the
customers level ofexpectation and
how well theyrated theservice(s).
Measuring service
quality in librariescan be both a
specific project aswell as a continual
process toenhance and
improve services.
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Why measure service quality?
It helps to identify where services needimprovement.
It helps in providing services that are moreclosely aligned with the expectations of thecustomers.
It helps institutions in an effort to developbenchmarks.
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TEN DETERMINANTS OF SERVICE
QUALITY
Access - the ease andconvenience of
accessing the service(s).
Competence - havingthe skills and knowledgeto provide the service(s).
Communication -
keeping your usersinformed; listening to
your users.
Courtesy - politeness,respect, consideration,and friendliness of staff
at all levels.
Credibility - trustworthiness,reputation and image.
Reliability - providingconsistent, accurate anddependable service(s);
delivering the service that waspromised.
Security - physical safety;financial security;
confidentiality.
Responsiveness - beingwilling and ready to
provide service(s) whenneeded.
Tangibles - the physicalaspects of the servicesuch as equipment,facilities, resources.
Understanding thecustomer - knowingindividual customer
needs.
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MEASU
REMEN
TS
Company-defined
standards ofservicequality.
Benchmarking
Customers-defined
standards
Complaintssolicitation
and analysis
Lost customeranalysis
Criticalincidentstudy.
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CONCLUSIONThe customer-defined quality standards are
superior to the company-defined standards. Hard
standards are preferable to soft standards of
quality. Benchmarking plays a vital role if acompany has to stay on the top of the
competition. Complaint solicitation and lost
customer analysis are pro-active ways of
obtaining a customer feedback
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References:
Govind Apte,Services Marketing 4thEdition
2006,page 209-232.
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THANKYOU