Date post: | 15-Jan-2017 |
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Service Quality
Dimensions of Service Quality Reliability
◦ Perform promised service dependably and accurately. Examples: delivered home heating oil on schedule, correct diagnosis and treatment of a medical problem.
Responsiveness◦ Willingness to help customers promptly. Example: avoid keeping
customers waiting for no apparent reason. Assurance
◦ Knowledge and courtesy of employees. Ability to convey trust and confidence. Example: being polite and showing respect for customer.
Empathy◦ Providing caring, individualized attention to customers. Example:
being a good listener. Tangibles
◦ Physical facilities and facilitating goods. Example: cleanliness.
Perceived Service Quality
Word of mouth
Personal needs
Past experience
Expectedservice
Perceivedservice
Service Quality Dimensions
ReliabilityResponsiveness
AssuranceEmpathyTangibles
Service Quality Assessment1. Expectations exceeded ES<PS (Quality surprise)2. Expectations met ES~PS (Satisfactory quality)3. Expectations not met ES>PS (Unacceptable quality)
Service Quality Gap Analysis
Customer
Perceptions
Customer
Expectations
Service
Delivery
Service Standards
ManagementPerceptions of Customer Expectations
Managing the Evidence
Conformance Service Design
Understanding the Customer
Customer Satisfaction GAP 5
Customer / Marketing Research
GAP 1
Conformance GAP 3
Communication GAP 4
Design GAP 2
Quality Service by Design Quality in the Service Package
◦ Supporting facility◦ Facilitating goods◦ Information◦ Explicit services◦ Implicit services
Taguchi methods (robust design) Poka-yoke (fail-safing)
◦ Example: Height bar at amusement park
Quality Function Deployment◦ House of Quality
Walk-Through Audit
Quality Service by DesignExercise How can healthcare services be redesigned to jointly optimize safety, effectiveness,
and cost?
Currently, malpractice law is intended to ensure doctors provide appropriate care and incompetent doctors are weeded out. It has the unintended consequence of incentivizing doctors to "over-service" patients to minimize liability.
◦ Some statistics - over 90% of medical malpractice cases are decided in favor of the doctor, 20%-30% of tests and procedures are done primarily to minimize the doctor's liability risk, 15% of initial diagnoses are incorrect.
Issues to address:◦ What is the service concept (i.e., how is value being created for the patient)?
◦ Quality of care vs. quality of service◦ How does a gap analysis inform the healthcare services design process? (Patients are
good at assessing the quality of service but less so the quality of care.)◦ How can expectations be better managed?
Achieving Service QualityCost of Quality
Cost Categories (in order of cost increase)◦ Prevention (to prevent failures from occurring)◦ Detection (to determine the condition of a service and whether it
conforms to standards)◦ Internal Failure (costs incurred to correct problems prior to delivery to
the customer)◦ External Failure (costs incurred to correct problems after delivery to
the customer)
Tradeoff between prevention/detection and internal failure/external failure costs goal is to minimize sum of these costs
Examples in healthcare services?
Achieving Service QualityStatistical Process Control
Statistical process control (SPC) is implemented via control charts that are used to monitor the output of the process over time and indicate the presence of problems requiring further action.
A control chart consists of a centerline based on the process average and two control limits to indicate whether action needs to be taken. It is intended to reflect only common (random) causes of variation in order to detect special (assignable) causes of variation.
The control limits are set to strike a balance between the following competing priorities:◦ Usually detect when the process has gone out of control (narrow
control limits work better), but increases producer’s risk◦ Usually not overreact to random variation (wider control limits work
better), but increases consumer’s risk
Control Chart Example
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Date
Aver
age
num
ber o
f err
ors
Sample Mean Low er Control Limit Upper Control Limit
Achieving Service QualityUnconditional Service Guarantee:Customer View
Unconditional (L.L. Bean)
Easy to understand and communicate (Bennigan’s)
Meaningful (Domino’s Pizza)
Easy to invoke (Cititravel)
Easy to collect (Bennigan’s and Domino’s)
Achieving Service QualityUnconditional Service Guarantee:Management View
Focuses on customers (British Airways)
Sets clear standards (FedEx)
Guarantees feedback (Manpower)
Promotes an understanding of the service delivery system (Bug Killer)
Builds customer loyalty by making expectations explicit
Approaches to Service Recovery Case-by-case addresses each customer’s complaint
individually but could lead to perception of unfairness. Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating.
Early intervention attempts to fix problem before the customer is affected.
Substitute service allows rival firm to provide service but could lead to loss of customer.
Service Recovery Framework
PatronageLoyaltySatisfactionRetention
SeverityOf
Failure
PerceivedServiceQuality
Psychological-empathy
-apology
Tangible -fair fix-value add
Psychological-apology-show interest
Follow-upService
Recovery
Tangible-small token
ServiceRecoveryExpectations
ServiceRecovery
CustomerLoyalty
ServiceGuarantee
Speed of Recovery
FrontlineDiscretion
ServiceFailure Occurs
ProviderAware ofFailure
Fair Restitu-
tionPre-recoveryPhase
ImmediateRecovery Phase
Follow-UpPhase