WordPress.com



SERVICE QUALITY

In today's competitive environment examining service quality is considered an important strategy. Service quality is an important determinant of success in attracting repeat business. While the reasons for the initial visit to a firm may be due to factors partly outside the control of management, the ability to create a satisfactory experience for the customers will rest, to a considerable degree, within the hands of both management and staff.

The five dimensions of service quality were identified as:

Today’s consumer has become increasingly demanding. They not only want high quality products but they also expect high quality customer service. Even manufactured products such as cars, mobile phones and computers cannot gain a strategic competitive advantage through the physical products alone.  From a consumer’s point of view, customer service is considered very much part of the product

* Dimensions of service quality

Service quality dimensions refer to the psychological dimensions that form the basis of a

customer.’s perceived quality of a service. While numerous marketing researchers have attempted

to define the specific dimensions of service quality, Parasuraman, Berry, and Zeithaml (1985)

introduced the definition in their presentation of the Gap Model of Service Quality. They

proposed that five specific dimensions of service quality exist and apply regardless of the service

industry: reliability, responsiveness, assurance, empathy, and tangibles.

The most important service quality dimension to customers is reliability .

Reliability is defined as the ability to perform the promised service dependably and

accurately. In other words, it means doing what you say you will do. Customers have

consistently stated that a company.’s ability to deliver promises is the most vital factor to

providing service quality. Having a room ready upon check-in is an example of the

reliability dimension.

Responsiveness is the willingness to help customers and to provide prompt service.

Customers judge a company.’s responsiveness by assessing the amount of time it takes

and the attentiveness that is offered in response to their requests, questions, complaints,

and problems. Companies that use automated phone systems, regularly put customers on

hold, or consistently have long wait times or long lines tend to be rated low on the

responsiveness dimension. Responding quickly to requests or complaints leads to a

higher rating on this dimension.

The third dimension of service quality is assurance . Assurance is defined as employees.’

knowledge and courtesy and the ability of the firm and its employees to inspire trust

and confidence. The assurance dimension is particularly important in service industries

offering high levels of credence qualities, such as auto repair and medical services. The

importance of the assurance dimension increases in proportion to the risk, and the

greater the inability for a customer to evaluate the service. The expertise of an endorser

or a particular service provider for a cruise vacation may affect the level of confidence

and trust a customer has toward that service.

Empathy is defined as the caring, individualized attention the firm provides its

customers. Customers perceive the level of a company.’s empathy by the degree of

personalized service offered. Customers want to be known on an individual basis and

feel that the company understands and addresses their individual needs. When competing

with companies that enjoy economies of scale, small companies can earn greater market

shares by focusing on empathy. Showing concern for a guest whose luggage is lost is a

way to improve the overall perceived service quality.

The final dimension of service quality is tangibles . Tangibles are defined as the

appearance of physical facilities, equipment, personnel and communication materials.

Service industries such as hotels and restaurants rely heavily on tangibles. Guests often

judge the quality of a hotel experience on the quality of the physical environment and

tangible amenities.

Each time they experience a service, guests are evaluating the hospitality organization. These

customers judge the overall service quality by looking at its five dimensions during all

interactions with service providers. Companies need to perform well on all dimensions of service

quality to insure a positive overall evaluation.

Gaps in Service Quality

One of the greatest challenges for many service companies, is closing the gap between

what customers expect to get -- beforehand -- and what they perceive they got – afterward. Customers have expectations for service experiences and they use them to measure

against the perceived service performance in their judgment of service quality. It is

essential, then, that managers determine what those expectations are when designing the

service. The first gap in service quality occurs when management fails to accurately

identify customer expectations.

The IKEA Example

Bitner points to the world's largest furniture retailer -- Sweden-based IKEA -- as an example of a company that, despite a meticulous customer-service approach, was still missing the mark with many customers.

Here's the story: before IKEA opened its Chicago store, a marketing whiz suggested asking groups of customers at other IKEA stores to describe their ideal shopping experience. So nine groups, each made up of a dozen IKEA customers, were invited to switch into "wish mode" and share their interior thoughts about the "ideal experience" they might wish for at IKEA.

About the ideal experience, they said things like, "I never feel disoriented because I always know exactly where I am in relation to every department," and "If I am buying one item, all of the other items that go with it are nearby." Another said, "shopping is a pleasant, relaxing experience."

The feedback surprised company execs, who thought they already understood their customers' needs. Wisely, they funneled wish-mode results to everyone connected to the Chicago project, from building designers to the register clerks. Then these wishes were actually incorporated into the new store

For instance, the building was designed differently, as a multi-story, octagon with a central atrium that functions as a sort of shopper home-base. Items were grouped on aisles and displayed so that related purchases were close to each other. On the top floor, a café serving Swedish food offered a place to rest and recharge. 

The experiment was a smashing success. Shoppers returned more often and spend about an hour longer than at other IKEA stores, and an amazing 85 percent of customers polled rated it "very good" or "excellent.”

This model clearly outlines gaps that can exist.

[pic]

• Gap 1

• Managers are essentially misinformed, and maybe targeting/providing their service inaccurately. The service maybe positioned as too upmarket or downmarket - this isn't necessarily communicated through price but every aspect of the service. For example, this may result in managers creating pushing frontline staff to be too formal, e.g. a service that stands mid market, trying to present itself a a luxury offering and vice versa.

• Gap 2

As managers aren't on the frontline, they maybe misinformed by what they believe to be a correct service offering for the organisation's clients. Management need to correctly understand the perceptions that consumers hold, and not guess based upon their own perceptions. Gap 2 is about combining management ideas into service specifications, and must be informed by reliable market research, and internal collaboration by staff upon all levels. For example, private medical organisation need to assess the exact amount of knowledge that a patient needs/wants before an operation, missing the right amount could lead to severe consequences for the organisation and the patient.

• Gap 3

This gap refers to how the service provided lives up to the organisation specification of that service. The organisation will need to internally audit staff performance against the outline specification of the service. For example, an airline may audit frontline staff, and look for service quality dimensions such as competence (how much do they know about the flights, or the destinations) courtesy (how polite are they in dealing with customer enquiries) tangibles (are they wearing the correct uniform, are they using branded stationary).

Gap 4

This gap places focus upon the promotional element of services, and is the gap between what the organisation says the service will do and how it communicates against the actual service delivered. For example, Ryan Air communicates very cheap flights, however they aren't always cheap after administration charges have been applied, hampering their credibility. Another example is an advert that shows good customer service, with delighted customers and helpful staff is likely to generate a significant gap if the customer doesn't share the same experience.

Gap 5

What customers expect from a service is very important, and is not only shaped by the organisations promotional efforts - word of mouth, personal needs and past experience are factors that will influence a customers expected service. The expected service and perceived service will influence these factors heavily and will make the difference between retention of a customer, and attrition.  To manage this gap it is necessary to implement SERVQUAL style surveys at the point of service delivery. For example, an airline could offer customers a short feedback questionnaire at check-in. The best way to manage this gap, is by managing the other four first, which should help to reduce service heterogeneity

Service Quality Gap.

Indicates the difference between the service expected by customers and the service they actually receive. For example, customers may expect to wait only 20 minutes to see their doctor but, in fact, have to wait more than thirty minutes.

Management Understanding Gap.

Represents the difference between the quality level expected by customers and the perception of those expectations by management. For example, in a fast food environment, the customers may place a greater emphasis on order accuracy than promptness of service, but management may perceive promptness to be more important.

Service Design Gap.

This is the gap between management's perception of customer expectations and the development of this perception into delivery standards. For example, management might perceive that customers expect someone to answer their telephone calls in a timely fashion. To customers, "timely fashion" may mean within thirty seconds. However, if management designs delivery such that telephone calls are answered within sixty seconds, a service design gap is created.

Service Delivery Gap.

Represents the gap between the established delivery standards and actual service delivered. Given the above example, management may establish a standard such that telephone calls should be answered within thirty seconds. However, if it takes more than thirty seconds for calls to be answered, regardless of the cause, there is a delivery gap.

Communication Gap.

This is the gap between what is communicated to consumers and what is actually delivered. Advertising, for instance, may indicate to consumers that they can have their cars's oil changed within twenty minutes when, in reality, it takes more than thirty minutes.

Case Study:

• provides books, movies, music and games along with electronics, toys, apparel, sports, tools, groceries and general home and garden items. Amazon is a good example of an online business that tries to close the service gaps in order to thoroughly meet consumer expectations.

• Understanding Customer Needs

From the time the consumer starts to shop at Amazon’s online store, Amazon will attempt to understand their expectations. From when a customer first makes a product selection Amazon creates a consumer profile and attempts to offer alternative goods and services that may delight the consumer. The longer the consumer shops at Amazon, the more the company attempts to identify their preferences and needs.

• Customer Defined Standards

When a consumer buys a product from Amazon they selects the mode of delivery and the company tells them the expected number of days it will take to receive their merchandise.

For example: standard shipping is three to five days but shipping in one or two days is also available. The company has set standards for how quickly customers are informed when a product is unavailable (immediately), how quickly customers are notified whether an out of print book can be located (three weeks), how long customers are able to return items (30 days) and whether they pay return shipping costs.

These standards exist for many activities at Amazon from delivery to communication to service recovery.

• Service Performance

Apart from defining their service delivery, Amazon goes one step further and delivers on its promises. Amazon performs! Orders often arrive ahead of the promised dates; orders are accurate and are in excellent condition because of careful shipping practice.

Customers can track packages and review previous orders at any time. Amazon also makes sure that all its partners who sell used and new books and other related items meet Amazon’s high standards. The company verifies the performance of each purchase by surveying the customer and posting scores that are visible to other customers.

Managing promises is handled by clear and careful communication on the website. Every page is very easy to understand and to navigate.

For example the page dealing with returns eliminates customer misunderstanding by clearly spelling out what can be returned. The page describes how to repack items and when refunds are given. The customer account page shows all previous purchases and exactly where every ordered item is in the shipping process

Amazon strategy has been well received by its customers and the Amazon brand is known worldwide.

• Conclusion

Effective product management is a complex undertaking which includes many different strategies, skills and tasks. Product managers plan for creating the best products and operational excellence to maximize customer satisfaction, loyalty and retention. Recognising and closing gaps offers high quality customer service to the consumer and helps them to achieve their goal whilst maximising market position, market share and financial results through customer satisfaction. It also helps managers to identify areas of weakness and make improvements to a company’s service delivery.

Student Discussion

List the five ‘Gaps’ that could cause unsuccessful service delivery for

a) A fitness Centre

b) A restaurant

c) A wedding planner

d) Hotel

e) Auto Repair

QUALITY SERVICE BY DESIGN

Quality can neither be inspected into a product nor somehow added on, and this same observation applies to services. A concern for quality begins with the design of the service delivery system. How can quality be designed into a service? One approach is to focus on the four dimensions of the service package that we explored in Chapter 2, The Nature of Services.

Incorporation of Quality in the Service Package

Consider the example of a budget hotel competing on overall cost leadership:

1, Supporting facility. Architecturally, the building is designed to be constructed of materials that are maintenance-free, such as concrete blocks. The grounds are watered by an automated underground sprinkler system. The air-conditioning and heating system is decentralized by using individual room units to confine any failure to just one room.

2. Facilitating goods. Room furnishings are durable and easy to clean (e.g., bed side tables are supported from the wall to facilitate carpet cleaning). Disposable plastic cups are used instead of glass, which is more expensive, requires cleaning, and, thus, would detract from the budget image.

3. Explicit services. Maids are trained to clean and make up rooms in a standard manner. Every room has the same appearance, including such "trivial" matters as the opening of the drapes.

4. Implicit services. Individuals with a pleasant appearance and good interpersonal skills are recruited as desk clerks. Training in standard operating procedures (SOPs) ensures uniform and predictable treatment for all guests. Anon-line computer tracks guest billing, reservations, and registration processing. This system allows guests to check out quickly and automatically

notifies the cleaning staff when a room is free to be made up.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download