Unit 3 service quality
- 2. Quality Quality must provide goods and services that completely satisfy the needs of both internal and external customers. Quality serves as the "bridge" between the producer of goods or services and its customer. -(Johnson & Weinstein)
- 3. Quality Quality in service product is not what you put into it, it is what the client or customer gets out of it. - Peter F. Drucker
- 4. What is a Service?What is a Service? “A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.” “Services are deeds, processes, and performances”. - Valarie Zeithaml & Mary Jo Bitner
- 5. Examples of ServiceExamples of Service IndustriesIndustries Health Care hospital, medical practice, dentistry, eye care Professional Services accounting, legal, architectural Financial Services banking, investment advising, insurance Hospitality restaurant, hotel/motel, ski resort, rafting Travel airlines, travel agencies, theme park Others: hair styling, plumbing, lawn maintenance, counseling services, health club
- 7. The Nature of A Service A service firm, unlike a manufacturing firm It does not manufacture but rather performs something for the customer. It delivers an experience that is intangible, variable, inseparable and imperishable in nature.
- 8. Characteristics of ServicesCharacteristics of Services
- 9. s
- 10. Difference between physical goods and services Physical goods Services tangible intangible homogeneous heterogeneous Production and distribution are separated from consumption Production, distribution and consumption are simultaneous processes A thing An activity or process Core value processed in factory Core value produced in the buyer-seller interaction Customers do not participate in the production process Customers participate in production Can be kept in stock Cannot be kept in stock Transfer of ownership No transfer of ownership
- 11. Service Quality Service quality is relatively a newer phenomenon. The service is defined as “a set of quality requirements on the collective behavior of one or more objects".
- 12. Cont…….. Customers also form perceptions of quality during the service transaction - how effectively and efficiently the service was delivered and the speed and convenience of completing the transaction Finally, customers evaluate support activities that occur after the transaction, that is post-sale services.
- 13. Cont…… Service quality brings forth (onwards) the following issues: Evaluation of service quality is more difficult as compared to goods quality. Service quality is a comparison between expectation and performance.
- 14. Cont….. Service quality evaluations involve outcomes and processes: It discussed three different dimensions of service performance: Physical quality, which includes the physical aspects of the service (e.g. equipment or building), Corporate quality, which involves the company’s image or profile, and Interactive quality, which derives from the interaction between contact personnel and customers as well as between some customers and other customers.
- 15. Types of Service Quality Objective service quality Subjective service quality
- 16. Service Quality Dimensions 1. Reliability: involves consistency of performance and dependability. 2. Responsiveness: employee readiness to provide service. 3. Competence: 4. Access: 5. Courtesy:
- 17. Cont…… 6. Communication: it means keeping customers informed in language they can understand and listening to them. 7. Credibility: it involves having the customer’s best interests at heart. 8. Security: is the freedom from danger, risk, or doubt. 9. Understanding/knowing the customer 10.Tangibles
- 18. Cont….. Parasuraman et al. (1988) further refined the above list of determinants and reduced it to five dimensions. This new list had the following dimensions: Assurance: ability of the employees to inspire trust and confidence. Example: being polite and showing respect for customer Empathy: caring, individualized attention the firm provides to its customers. Example: being a good listener
- 19. Cont…… Reliability: ability to perform the promised service dependably and accurately. Example: receive mail at same time each day. Responsiveness: willingness to help customers and provide prompt service Example: avoid keeping customers waiting for no apparent reason Tangibles: appearance of physical facilities, equipment, personnel, and communication materials. Example: cleanliness
- 20. Advantages of Service Quality Sustaining the customers’ confidence in a service provider’s service delivery, Maximizing a company’s profits Attracting more new customers and increasing business with existing clients, Reducing dissatisfied customers with fewer mistakes, and Increasing customer satisfaction.
- 21. Seven Service Quality Gaps Customer experience relative to expectations Advertising and sales promises Customer interpretation of communications 1. Knowledge Gap 2. Standards Gap 3. Delivery Gap 5. Perceptions Gap 7. Service Gap Customer needs and expectations Management definition of these needs Translation into design/delivery specs Execution of design/delivery specs Customer perceptions of product execution 6. Interpretation Gap 4. I.C.Gap MANAGEMENT CUSTOMER
- 22. Prescriptions for Closing Service Quality Gaps Knowledge: Learn what customers expect--conduct research, feedback. Standards: Specify SQ standards that reflect expectations. Delivery: Ensure service performance matches specs-- consider roles of employees, equipment, customers Internal communications: Ensure performance levels match marketing promises Perceptions: Educate customers to see reality of service delivery. Interpretation: Pretest communications to make sure message is clear and unambiguous
- 23. Shubhra singhal