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New Ways of Listening to Library Users: New Tools for Measuring Service Quality A. Parasuraman University of Miami Washington, DC November 4, 2005

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Page 1: Servqual (Zeithaml Parasuraman Berry

New Ways of Listening to Library Users: New Tools for Measuring Service Quality

A. Parasuraman

University of Miami

Washington, DC

November 4, 2005

Page 2: Servqual (Zeithaml Parasuraman Berry

Defining, Assessing, and Measuring Service Quality: A Conceptual Overview

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 2

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Multi-Phase, Multi-Sector, Multi-Year Program of Research to Address the

Following Issues

• How do customers perceive and evaluate service quality?

• What are managers’ perceptions about service quality?

• Do discrepancies exist between the perceptions of customers and those of managers?

• Can customers’ and managers’ perceptions be combined into a general model of service quality?

• How can service organizations improve customer service and achieve excellence?

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 3

Page 4: Servqual (Zeithaml Parasuraman Berry

Determinants of Perceived Service Quality

ExpectedService

PerceivedService

ServiceQuality

Gap

PerceivedServiceQuality

Word ofMouth

PersonalNeeds

PastExperience

External Communication

to Customers

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 4

Page 5: Servqual (Zeithaml Parasuraman Berry

A “GAPS” MODEL OF SERVICE QUALITY

Customers’ Service

Expectations

CUSTOMER SERVICE ORGANIZATION

Service Quality

Gap

Customers’ Service

Perceptions

GAP 5

Organization’s Understanding of

Expectations

Organization’s Service Standards

Organization’s Service

Performance

Organization’s Communications to

Customers

Market Information

Gap

Service Performance

Gap

Internal Communication

Gap

Service Standards

Gap

GAP 1

GAP 2

GAP 3

GAP 4

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 5

Page 6: Servqual (Zeithaml Parasuraman Berry

POTENTIAL CAUSES OF POTENTIAL CAUSES OF INTERNAL SERVICE GAPSINTERNAL SERVICE GAPS

[GAPS 1 - 4][GAPS 1 - 4]

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 6

Page 7: Servqual (Zeithaml Parasuraman Berry

GAP 1

CustomerExpectations

Key Factors:

• Insufficient marketing research• Inadequate use of marketing research• Lack of interaction between management and customers• Insufficient communication between contact employees and managers

ManagementPerceptions of

Customer Expectations

Lack of “Upward

Communication”

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 7

Page 8: Servqual (Zeithaml Parasuraman Berry

GAP 2

Key Factors:

• Inadequate management commitment to service quality• Absence of formal process for setting service quality goals• Inadequate standardization of tasks• Perception of infeasibility -- that customer expectations cannot be met

ManagementPerceptions of

Customer Expectations

ServiceQuality

Specifications

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 8

Page 9: Servqual (Zeithaml Parasuraman Berry

GAP 3

Key Factors:

• Lack of teamwork• Poor employee - job fit• Poor technology - job fit• Lack of perceived control (contact personnel)• Inappropriate evaluation/compensation system• Role conflict among contact employees• Role ambiguity among contact employees

ServiceQuality

Specifications

ServiceDelivery

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 9

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GAP 4

Key Factors:

• Inadequate communication between salespeople and operations• Inadequate communication between advertising and operations• Differences in policies and procedures across branches or departments• Puffery in advertising & personal selling

ServiceDelivery

ExternalCommunications

to Customers

Lack of “Horizontal

Communication”

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 10

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SUGGESTIONS FOR CLOSING SUGGESTIONS FOR CLOSING INTERNAL SERVICE GAPSINTERNAL SERVICE GAPS

[GAPS 1 - 4][GAPS 1 - 4]

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 11

Page 12: Servqual (Zeithaml Parasuraman Berry

Suggestions for Closing the Market Information Gap

• Conduct systematic marketing research

• Make senior managers interact with customers

• Make senior managers occasionally perform customer-contact roles

• Encourage upward communication from customer-contact employees

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 12

Page 13: Servqual (Zeithaml Parasuraman Berry

Suggestions for Closing the Service Standards Gap

• Make a blueprint of the service and standardize as many components of it as possible

• Institute a formal, ongoing process for setting service specifications

• Eliminate “perception of infeasibility” on the part of senior managers

• Make a true commitment to improving service quality

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 13

Page 14: Servqual (Zeithaml Parasuraman Berry

Suggestions for Closing the Service Performance Gap

• Invest in ongoing employee training

• Support employees with appropriate technology and information systems

• Give customer-contact employees sufficient flexibility

• Reduce role conflict and role ambiguity among customer-contact employees

• Recognize and reward employees who deliver superior service

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 14

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Suggestions for Closingthe Internal Communication Gap

• Facilitate effective horizontal communication across functional areas (e.g., marketing and operations)

• Have consistent customer-related policies and procedures across branches or departments

• Resist the temptation to promise more than the organization can deliver

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 15

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Process Model for Continuous Measurement and Improvement of Service Quality

Do your customers perceiveyour offerings as meeting

or exceeding their expectations?

Do you have an accurate understanding of

customers’ expectations?

Are there specificstandards in place to meetcustomers’ expectations?

Do your offerings meet orexceed the standards?

Is the informationcommunicated to customers

about your offerings accurate?

Continue to monitorcustomers’ expectations

and perceptions

YES

NO

YES

YES

YES

YES

Take corrective action

Take corrective action

Take corrective action

Take corrective action

NO

NO

NO

NO

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 16

Page 17: Servqual (Zeithaml Parasuraman Berry

SERVQUAL: Development, Refinement, and Empirical Findings

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 17

Page 18: Servqual (Zeithaml Parasuraman Berry

Determinants of Perceived Service Quality

Dimensions of Service Quality

1. Access

2. Communication

3. Competence

4. Courtesy

5. Credibility

6. Reliability

7. Responsiveness

8. Security

9. Tangibles

10. Understanding/Knowing the Customer

ExpectedService

PerceivedService

ServiceQuality

Gap

PerceivedServiceQuality

Word ofMouth

PersonalNeeds

PastExperience

External Communication

to Customers

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 18

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Correspondence between SERVQUAL Dimensions and Original Ten Dimensions for Evaluating Service Quality

Original Ten Dimensions for

Evaluating ServiceQuality

TANGIBLESRELIABILITYRESPONSIVENESSCOMPETENCE

COURTESY

CREDIBILITY

SECURITY

ACCESS

COMMUNICATION

UNDERSTANDING/ KNOWING THECUSTOMER

TANGIBLES RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY

SERVQUAL Dimensions

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 19

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Definitions of the SERVQUAL Dimensions

• Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials.

• Reliability: Ability to perform the promised service dependably and accurately.

• Responsiveness: Willingness to help customers and provide prompt service.

• Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence.

• Empathy: Caring, individualized attention the firm provides its customers.

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 20

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Relative Importance of Service Dimensions When Respondents

Allocate 100 Points [Study 1]

TANGIBLES 11%

EMPATHY 16%

RELIABILITY 32%

ASSURANCE 19%

RESPONSIVENESS

22%

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 21

Page 22: Servqual (Zeithaml Parasuraman Berry

Relative Importance of Service Quality Dimensions [Study 2]Mean Number of Points Allocated out of 100 Points

37

9

1318

23

29

12

17

19

23

28

12

18

20

23

33

11

1519

23

32

14

1518

21

Computer Manufacturer All Companies Retail Chain

Auto Insurer Life InsurerReliability Responsiveness Assurance Empathy Tangibles

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 22

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1.00

0.00

-1.00

-2.00Tangibles Reliability Responsive-

nessAssurance Empathy

Mean SERVQUAL Scores by Service Dimension [Study 1]

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 23

Page 24: Servqual (Zeithaml Parasuraman Berry

Nature of Service Expectations

Desired Service

Zoneof

Tolerance

Adequate Service

Level Customers Believe Can and Should Be

Delivered

Minimum Level Customers Are Willing

to Accept

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 24

Page 25: Servqual (Zeithaml Parasuraman Berry

Measure of ServiceAdequacy (MSA)

Measure of ServiceSuperiority (MSS)

=

=

PerceivedService

PerceivedService

-

-

AdequateService

DesiredService

The Two Levels of Expectations Imply Two Corresponding Measures of GAP 5:

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 25

Page 26: Servqual (Zeithaml Parasuraman Berry

TWO APPROACHES FOR MEASURING MSA AND MSS

• Two-Column Format Questionnaire–Direct measures of MSA and MSS

• Three-Column Format Questionnaire–Difference-score measures of MSA and MSS

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 26

Page 27: Servqual (Zeithaml Parasuraman Berry

TWO-COLUMN FORMAT

Please think about the quality of service ________ offers compared to the two different levels ofservice defined below:

MINIMUM SERVICE LEVEL - the minimum level of service performance you consider adequate.

DESIRED SERVICE LEVEL - the level of service performance you desire.

For each of the following statements, please indicate: (a) how ______’s performance compareswith your minimum service level by circling one of the numbers in the first column; and (b) how______’s performance compares with your desired service level by circling one of the numbersin the second column.

Compared to My Minimum Compared to My Desired Service Level ____’s Service Level ____’s Service Performance is: Service Performance is:

The No The No

When it comes to … Lower Same Higher Opin- Lower Same Higher Opin-ion ion

1. Prompt service 1 2 3 4 5 6 7 8 9 N 1 2 3 4 5 6 7 8 9 Nto policyholders

2. Employees who are 1 2 3 4 5 6 7 8 9 N 1 2 3 4 5 6 7 8 9 Nconsistently courteous

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 27

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THREE-COLUMN FORMAT

We would like your impressions about ________’s service performance relative to your expectations. Please thinkabout the two different levels of expectations defined below:

MINIMUM SERVICE LEVEL - the minimum level of service performance you consider adequate.

DESIRED SERVICE LEVEL - the level of service performance you desire.

For each of the following statements, please indicate: (a) your minimum service level by circling one of the numbersin the first column; and (b) your desired service level by circling one of the numbers in the second column; and (c)your perception of ___________’s service by circling one of the numbers in the third column.

My Minimum My Desired My Perception Service Service of ____’s Service Level is: Level is: Performance is:

No

When it comes to … Low High Low High Low High Opin- ion

1. Prompt service 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 N

to policyholders

2. Employees who are 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 N

consistently courteous

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 28

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Measurement Error: Percent of Respondents Answering Incorrectly

Two-ColumnFormat

Three-ColumnFormat

ComputerManufacturer 8.6% 0.6%

Retail Chain 18.2% 1.8%

Auto Insurer 12.2% 1.6%

Life Insurer 9.9% 2.7%

Type of Company

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 29

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Mean Service Quality Scores (Combined Across All Companies)

TWO-COLUMN FORMATQUESTIONNAIRE

THREE-COLUMN FROMATQUESTIONNAIRE

MSA Scores MSS Scores MSA Scores MSS Scores

Reliability 6.8 5.9 0.2 -1.0

Responsiceness 6.7 5.7 0.3 -1.1

Assurance 6.8 5.9 0.4 -0.9

Empathy 6.5 5.6 0.2 -1.2

Tangibles 7.1 6.4 1.1 -0.2

SERVQUAL Dimensions

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 30

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Revised SERVQUAL Items

Reliability

1. Providing services as promised

2. Dependability in handling customers' service problems

3. Performing services right the first time

4. Providing services at the promised time

5. Keeping customers informed about when services will be performed

Responsiveness

6. Prompt service to customers

7. Willingness to help customers

8. Readiness to respond to customers' requests

Assurance

9. Employees who instill confidence in customers

10. Making customers feel safe in their transactions

11. Employees who are consistently courteous

12. Employees who have the knowledge to answer customer questions

Empathy

13. Giving customers individual attention

14. Employees who deal with customers in a caring fashion

15. Having the customer's best interest at heart

16.Employees who understand the needs of their customers

Tangibles

17. Modern equipment

18. Visually appealing facilities

19. Employees who have a neat, professional appearance

20. Visually appealing materials associated with the service

21. Convenient business hours

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 31

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Service Quality Perceptions Relative to Zones of Tolerance by Dimension

Computer Manufacturer

0

1

2

34

56

7

8

9

Reliability Responsiveness Assurance Empathy Tangibles

Zone of Tolerance S.Q. Perception

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 32

Page 33: Servqual (Zeithaml Parasuraman Berry

Service Quality Perceptions Relative to Zones of Tolerance by Dimension

Computer Manufacturer

0

1

2

34

56

7

8

9

Reliability Responsiveness Assurance Empathy Tangibles

Zone of Tolerance S.Q. Perception

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 33

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Service Quality Perceptions Relative to Zones of Tolerance by Dimension

On-Line Services

0

1

2

34

5

6

7

8

9

Reliability Responsiveness Assurance Empathy Tangibles

Zone of Tolerance S.Q. Perception

6.8 7.06.7 6.7

7.07.0

8.38.4

6.8

8.4

6.8

8.3

5.7

7.5

6.8

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 34

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Service Quality Perceptions Relative to Zones of Tolerance by Dimension

Tech-Support Services

0

1

2

34

5

6

7

8

9

Reliability Responsiveness Assurance Empathy

Zone of Tolerance S.Q. Perception

8.5

6.9

8.4

6.16.6

6.7

8.1

6.46.3

8.3

6.3

6.8

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 35

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LIBQUAL+: An Adaptation of SERVQUAL

36© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

© Association of Research Libraries, Washington DC (2003)

Page 37: Servqual (Zeithaml Parasuraman Berry

MULTIPLE METHODS OF LISTENING TO CUSTOMERS

• Transactional surveys* • Mystery shopping• New, declining, and lost-customer surveys• Focus group interviews• Customer advisory panels• Service reviews• Customer complaint, comment, and inquiry capture • Total market surveys*• Employee field reporting• Employee surveys• Service operating data capture

*A SERVQUAL-type instrument is most suitable for these methods

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 37

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The Role Of Technology In Service Delivery: Electronic Service Quality (e-SQ) and Technology

Readiness (TR)

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 38

Page 39: Servqual (Zeithaml Parasuraman Berry

Technology’s Growing Role in Marketing to and Serving Customers: Pyramid Model

Company

Employees Customers

Technology

Internal Marketing

Interactive Marketing

External Marketing

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 39

Page 40: Servqual (Zeithaml Parasuraman Berry

Ongoing Research on e-Service Ongoing Research on e-Service Quality: Conceptual Framework and Quality: Conceptual Framework and

Preliminary FindingsPreliminary Findings

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 40

Page 41: Servqual (Zeithaml Parasuraman Berry

Research Phases and Questions

PHASE 1:• What is good service on the Web?• What are the underlying dimensions of superior

electronic service quality (e-SQ?)• How can e-SQ be conceptualized?

PHASE 2:• How do these dimensions compare to those of

traditional service quality?• How can e-SQ be measured and thereby

assessed?

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 41

Page 42: Servqual (Zeithaml Parasuraman Berry

Definition of e-Service Quality (e-SQ)

e-SQ is the extent to which a Website facilitates efficient and effective shopping, purchasing and delivery of products and services

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 42

Page 43: Servqual (Zeithaml Parasuraman Berry

Dimensions of e-Service Quality from Focus Groups

• Access• Ease of Navigation• Efficiency• Customization/

Personalization• Security/Privacy

• Responsiveness• Assurance/Trust• Price Knowledge• Site Aesthetics• Reliability• Flexibility

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 43

Page 44: Servqual (Zeithaml Parasuraman Berry

Reliability

SAMPLE ATTRIBUTES• Site does not crash• Accurate billing• Accuracy of order• Accuracy of account

information• Having items in stock• Truthful information• Merchandise arrives

on time

DEFINITION

Correct technical functioning of the site and the accuracy of service promises, billing and product information.

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 44

Page 45: Servqual (Zeithaml Parasuraman Berry

Efficiency

SAMPLE ATTRIBUTES• Site is well organized• Site is simple to use• Site provides

information in reasonable chunks

• Site allows me to click for more information if I need it

DEFINITION

The site is simple to use, structured properly, and requires a minimum of information to be input by the customer.

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 45

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Means-End Model

SPECIFIC/CONCRETE

ABSTRACT

DimensionsHigher-levelAbstractions

PerceptualAttributes

ConcreteCues

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 46

Page 47: Servqual (Zeithaml Parasuraman Berry

Ease ofNavigation

Easy to Maneuverthrough Site

Easy to FindWhat I Need

Speed of Checkout

Search Engine

One-click Ordering

Tab Structuring

Site Map

Means-End Model of e-Service Quality

DimensionsHigher-LevelAbstractions

PerceptualAttributes

ConcreteCues

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 47

Page 48: Servqual (Zeithaml Parasuraman Berry

Perceivede-ServiceQuality

Security/Privacy

PriceKnowledge

Assurance/Trust

Responsive-ness

SiteAesthetics

Reliability

Flexibility

Efficiency

Ease ofNavigation

Personali-zation

Access

DimensionsHigher-LevelAbstractions

PerceptualAttributes

Concrete Cues

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 48

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Means-End Model of e-Service Quality

PerceivedValue

PerceivedConvenience

PerceivedControl

Perceivede-ServiceQuality

PerceivedPrice

Dimensions

Higher-Level Abstractions

PerceptualAttributes

ConcreteCues

Behaviors

Purchase

Loyalty

W.O.M

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 49

Page 50: Servqual (Zeithaml Parasuraman Berry

Customer Web site

Requirements

Perceivede-SQ

PerceivedValue

Purchase/Repurchase

Management’s Beliefs

about Customer Requirements

Design and Operation

of the Web site

Marketingof the

Web site

DesignGap

InformationGap

Conceptual Model for Understanding and Improving e-Service QualityCustomer

Company

CommunicationGap

FulfillmentGap

Customer Web site

Experiences

50© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

Page 51: Servqual (Zeithaml Parasuraman Berry

Dimensions of e-SQCore Dimensions

[E-S-QUAL]• Efficiency• Fulfillment• System Availability• Privacy

Recovery Dimensions

[E-RecS-QUAL]• Responsiveness• Compensation• Contact

Source: Parasuraman, Zeithaml, and Malhotra, “E-S-QUAL: A Multiple-Item Scale for Assessing Electronic Service Quality,” Journal of Service Research, February 2005.

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 51

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Definitions of e-SQ Dimensions E-S-QUAL Dimensions

Efficiency: The ease and speed of accessing and using the site.

Fulfillment: The extent to which the site’s promises about order delivery and item availability are fulfilled.

System Availability: The correct technical functioning of the site.

Privacy: The degree to which the site is safe and protects customer information.

E-RecS-QUAL Dimensions

Responsiveness: Effective handling of problems and returns through the site.

Compensation: The degree to which the site compensates customers for problems.

Contact: The availability of assistance through telephone and online representatives.

Source: Parasuraman, Zeithaml, and Malhotra, “E-S-QUAL: A Multiple-Item Scale for Assessing Electronic Service Quality,” Journal of Service Research, February 2005.© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 52

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An Important Implication of the Pyramid Model

An organization’s ability to use technology effectively in marketing to and serving customers critically depends on the technology readiness of its customers and employees

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 53

Page 54: Servqual (Zeithaml Parasuraman Berry

What is Technology Readiness [TR]?

TR refers to “people’s propensity to embrace and use new technologies for accomplishing goals in home life and at work”

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 54

Page 55: Servqual (Zeithaml Parasuraman Berry

Multinational Research Studies on Technology Readiness

• Began in 1997 in the USA and still ongoing• Being conducted in collaboration with Charles Colby,

President, Rockbridge Associates• Have thus far involved several qualitative and

quantitative studies• Completed studies include three “National

Technology Readiness Surveys” in the USA [NTRS 1999, 2000, 2001, 2002 and 2004]

• National studies also have been done or are underway in Austria, Chile, Germany, Singapore and Sweden

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 55

Page 56: Servqual (Zeithaml Parasuraman Berry

Key Insights from Qualitative Research Studies

• TR doesn’t just refer to possessing technical skills; TR is much more a function of people’s beliefs and feelings about technology

• People’s beliefs can be positive about some aspects of technology but negative about other aspects

• The relative strengths of the of positive and negative beliefs determine a person’s receptivity to technology

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 56

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Receptive toTechnology

NeutralResistant toTechnology

Technology-Beliefs Continuum

57© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

Page 58: Servqual (Zeithaml Parasuraman Berry

Link between Technology Beliefs and Technology Readiness

High

Receptive toTechnology

NeutralResistant toTechnology

Low

Medium

Tec

hn

olo

gy

Rea

din

ess

Technology-Beliefs Continuum© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 58

Page 59: Servqual (Zeithaml Parasuraman Berry

Quantitative Survey Methodology

• Each NTRS in the U.S. included a random sample of adults:– 1000 respondents 1999 & 2000 and 500

respondents in 2001, 2002 & 2004

• Data collected via computer-assisted telephone interviewing

• Survey included questions about technology beliefs, demographics, psychographics, and technology-related behaviors and preferences

59© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

Page 60: Servqual (Zeithaml Parasuraman Berry

Key Insights from Quantitative Research Studies

• TR consists of four facets or dimensions that are fairly independent of one another

• People’s ratings on a set of belief statements about technology can be combined to create a reliable and valid measure of TR -- i.e., a “Technology Readiness Index” [TRI]

• The TRI is a good predictor of people’s technology-related behaviors and preferences

• A meaningful typology of customers can be created based on their TR scores on the four dimensions

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 60

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Drivers of Technology Readiness

Technology Readiness

Discomfort InsecurityInhibitors

Contributors InnovativenessOptimism

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 61

Page 62: Servqual (Zeithaml Parasuraman Berry

Definitions of the TR Drivers

• Optimism: Positive view of technology; belief that it offers increased control, flexibility and efficiency

• Innovativeness: Tendency to be a technology pioneer and thought leader

• Discomfort: Perceived lack of control over technology and a feeling of being overwhelmed by it

• Insecurity: Distrust of technology and skepticism about its working properly

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 62

Page 63: Servqual (Zeithaml Parasuraman Berry

• Optimism 10 items

• Innovativeness 7 items

• Discomfort 10 items

• Insecurity 9 items

The TRI: A 36-Item, 4-Dimensional Scale to Measure TR

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 63

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• Example of Optimism: “Technology gives people more control over their daily lives”

% of respondents agreeing: 61% in 199968% in 200065% in 200165% in 200267% in 2004

• Example of Innovativeness: “You keep up with the latest technological developments in your areas of interest”

% of respondents agreeing: 68% in 199969% in 200065% in 200159% in 200260% in 2004

Customer Beliefs About Technology

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 64

Page 65: Servqual (Zeithaml Parasuraman Berry

• Example of Discomfort: “It is embarrassing when you have trouble with a high-tech gadget while people are watching”

% of respondents agreeing: 52% in 199954% in 200055% in 200151% in 200246% in 2004

• Example of Insecurity: “Any business transaction you do electronically should be confirmed later with something in writing”

% of respondents agreeing: 87% in 199988% in 200082% in 200182% in 200278% in 2004

Customer Beliefs About Technology

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 65

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OPT. TRIINS.DIS.INN.

Mean TRScores

TR Scores by Dimension and Overall TRI

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1999 2000 2001 20042002

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 66

Page 67: Servqual (Zeithaml Parasuraman Berry

Online Acitivities of High and Low TR Customers (NTRS 2004)

0 20 40 60 80 100

Bought stocksApplied for credit card

Did business w ith govt.

Bought items > US$100Booked travel

Checked bank acct infoRead newspaper

Low TRHigh TR

%

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 67

Page 68: Servqual (Zeithaml Parasuraman Berry

3.032.83

3.133.01

2.852.68

3.032.96

2.77

3.142.88

2.83

2.4 2.5 2.6 2.7 2.8 2.9 3 3.1 3.2

Male Female

18-33 years34-47 years48-59 years60-88 years

College Grad or MoreSome College

High School or Less

$75K or More$40K to $75K

Less than $40K

TRI Scores by Demographics (NTRS 2004)

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 68

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Predicted Change in TR of Age Cohorts over Time

TR

Age Cohort 1

Age Cohort 2

Age Cohort N

Age Cohort X

Age Cohort Y

Year 1-5

Age Cohort 1

Age Cohort 2

Age Cohort N

Age Cohort X

Age Cohort Y

Age Cohort 1

Age Cohort 2

Age Cohort N

Age Cohort X

Age Cohort Y

Age Cohort 1

Age Cohort 2

Age Cohort N

Age Cohort X

Age Cohort Y

Age Cohort 1

Age Cohort 2

Age Cohort N

Age Cohort X

Age Cohort Y

Age Cohort 1

Age Cohort 2

Age Cohort N

Age Cohort X

Age Cohort Y

Year 6-10 Year 11-15 Year 16-20 Year 21-25 Year 26-30 Time

Age RangeCovered inTR Surveys

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Page 70: Servqual (Zeithaml Parasuraman Berry

Five TR-Based Customer Segments

Optimism Innovative-ness

Discomfort Insecurity

Explorers High High Low Low

Pioneers High High High High

Skeptics Low Low Low Low

Paranoids High Low High High

Laggards Low Low High High

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0

5

10

15

20

25

30

%

Typology of Technology Customers: Percent of Population in Each Segment

1999 2000 2001 20042002

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Page 72: Servqual (Zeithaml Parasuraman Berry

TR Segments and Technology Adoption

High

Low

Tec

hn

olo

gy

Rea

din

ess

Time of Adoption of New Technologies

Explorers

Pioneers

Skeptics

Paranoids

Laggards

Early Late

72© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

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New Customer Composition by Age of Techno-Based Product/Service

Early

Late

Fir

st-

tim

e U

se

rs Laggards

Paranoids

Skeptics

Pioneers

Explorers

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 73

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High-Tech versus High-Touch Customer Service

High

Low

Ap

pe

al o

f H

igh

-Tec

h

Se

rvic

e C

ha

nn

els

Appeal of High-Touch Service Channels

Explorers

Pioneers

Skeptics

Paranoids

Laggards

Low High

74© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

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In Conclusion, to Deliver Superior Service in Library Environments:

• Understand customers’ service expectations and how well those expectations are being met

• Work systematically to remove organizational barriers that lead to poor customer service -- offline and online

• Recognize and capitalize on the increasing role of technology in serving customers, but …

• Be cognizant of customers’ and employees’ readiness to embrace technology-based services

• Recognize that e-service quality as perceived by customers involves much more than having a state-of-the-art website

• Put in place a solid behind-the-scenes infrastructure -- information systems, logistics, and human resources -- to deliver what a website’s façade promises.

• Continuously monitor customers’ and employees’ reactions to and experiences with your electronic interfaces

75© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

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Thank You!

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 77