measurement of service quality

8/3/2019 Measurement of Service Quality

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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


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


3


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


4


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

measurement of service quality

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