Service Quality Concepts

1
Service Quality Concepts Dimensions

• TIM 303
• Dan Spears, Ph.D.

2
Overview

• Customer Expectations
• Service standards
• Perceived service performance
• Dimensions of Service Quality
• Objectives of Service
• Continuum of Service
• Before, during and after
• Total Service Commitment
• Development of service plans and procedures
• Commitment from service providers employees
• Assessment of effectiveness

3
Dimensions of Service Quality

• Dimensions of Service Quality
• A variety of factors have been identified as
  contributing to service quality
• Parasuraman, Zeithaml, Berry (1998, 1994a) are
  among the most recognized researchers in the area
  of service quality
• They developed the SERVQUAL battery which is a
  generic measurement of service quality through
  the examination of 22 service items, which factor
  into five basic dimensions, which include
• Reliability reflects the service providers
  ability to perform service dependably and
  accurately doing it right the first time
  error free
• Tangibles consist of the appearance of
  physical facilities, equipment, personnel, and
  communication materials
• Responsiveness represents the willingness to
  help customers and provide prompt service time
  is a critical component of service quality
• Assurance reflects knowledge and courtesy of
  employees and their ability to inspire trust and
  confidence Reassuring the guest
• Empathy involves the caring , individualized
  attention the firm provides its customers
• Many researches have adapted the SERVQUAL battery
  to their specific industry, product, and target
  markets (see text)

4
Customer Expectations

• Customer expectations
• Guests are the judges of service quality!
• Their experiences are greatly influence their
  resulting level of satisfaction
• It is much easier to please guests with lower
  expectations than those of higher expectations
  (e.g. President)
• An understanding of of guests expectations is
  critical
• Lewison (1997) categorizes service expectations
  in three levels
• Essential are those services which are the
  essence of the service business. Theses service
  meet the fundamental requirements to continue
  operations (e.g. maintaining reasonable business
  hours, informing guests about service details,
  and acknowledging complaints)
• Expected are those services which guests assume
  the service provider should offer in order to
  provide adequate service. Can offer an
  competitive advantage when expectations are
  exceeded. However, it must be mentioned that when
  additional services are added they become
  commonplace (or expected) and can create a more
  demanding customer
• Optional Other services are considered optional
  or desired. Guests consider these services an
  added bonus that enhances the value of their
  visit. Optional services can also add to the
  operations competitive advantage.

5
Customer Expectations

• Service standards
• Appropriate service standards depend on the
  mission of the organization
• Achieving standards depend on two basic factors
• The service policies of the organization
• The actual performance of the service provider
• Service providers establish policies that are
  deemed comparable to their image and appropriate
  to their target market
• Service standards set the standards for the
  provision of guest services in the organization
• Service standards are only as good as the
  resultant performance

6
Customer Expectations

• Perceived service performance
• Various approaches have been undertaken to study
  the difference between guests expectations and
  actual service performance
• The subjective disconfirmation conceptual model
  has been cited as most influential in determining
  customer satisfaction (Dion et. al., 1998
  Oliver, 1993)
• In this model, a better-than/worse than
  comparison between expectations and actual
  services results in a positive or negative
  outcome
• Typically, guests consider services performed to
  be exceptional when the expected services have
  been surpassed by quality and quantity
• If guests expectations are sufficiently met with
  the services provided, they will assess the
  service as adequate
• The worst-case scenario occurs when services
  performed do not measure up to guest expectations
• Poor service leaves a guest unimpressed,
  discouraged, and unsatisfied
• Also, these scenarios represent a service
  recovery strategy that can be employed to retain
  the guests
• Although, many guests let their dissatisfaction
  be know, many do not
• According to a American Express Travel index
  study on dissatisfied customers
• 14 of leisure travelers do nothing and 4 never
  return
• In another study (Technical Assistance Research
  Corporation) dissatisfied customers told 9 to 10
  people about their unpleasant experience, while
  satisfied customers only told 4 to 5 people

7
Objectives of Service

• Objectives of Service
• Improve guest convenience many services
  contribute to the guests sense of confidence,
  comfort, and well being. The key to getting
  closer to customers is making it easier for them
  to do business with the service provider.
• Enhance service providers image the number and
  quality of services offered establishes the image
  of the service provider (e.g. limited vs. full
  service hotels)
• Ensure customer security multiple services
  reinforce a guests sense of security. Services
  such as lighting, security staff, emergency
  medical facilities, room locks, fire sprinklers,
  and clearly marked exits instill confidence in
  your guest.
• Generate traffic quality service has the
  potential to generate increased traffic/business
  for the service provider. Satisfied guests will
  more likely extent their stay, return, and
  recommend your service to friends, family,
  co-workers, etc.
• Establish a competitive advantage beyond the
  basic services that are expected by your guests,
  establish and develop creative ideas based upon
  guest needs and desires and implement them into
  existing service strategies. Make this a
  continual process among the service organization
• Customer demand by providing specific services,
  organizations can generate demand among certain
  target markets. Cater to your various target
  markets based upon their specific needs and wants
  and continually seek out new markets and build
  upon their requirements

8
Continuum of Service

• Continuum of Service
• Overall perception of service quality results
  from a variety of experiences with the service
  provider over a period of time
• Consequently, service providers need to assess
  the various elements in the continuum of service
  (Figure 3.1), which include
• Before entrance
• How does the customer obtain information about
  the service product (e.g. television, paper,
  radio, magazine ads, web pages, etc.)
• During the service encounter
• Moment of Truth face-to-face interactions
  occurs. All employees are part of this equation
  (front back of the house). Effect of targeted
  services to specific target markets (critical)
• After the service encounter after leaving the
  physical facility, the service experience is
  still not complete. Use of guest follow-up and
  feedback evaluates the types of services provided
  during their stay. Importance of frequent guest
  incentive programs.

9
Total Service Commitment

• Development of service plans and procedures
• Service commitment begins with the establishment
  of service policies and procedures
• Policies must be developed that are consistent
  with the service image and target markets
• Development of customer-driven policies and
  procedures that incorporate input received from
  customers and employees who are in direct contact
  with each other
• Policies and procedures must be consistent,
  effective, and efficient and must address all of
  the important dimensions of service quality in
  order to be understood by those delivering the
  service

10
Total Service Commitment

• Commitment from service providers employees
• Quality service requires a commitment on several
  levels
• Whether it is the manager making policy decisions
  or an employee addressing guests concerns
• Service must be projected on a unified front
• Service providers must seek feedback and
  incorporate innovative ideas from all of their
  staff from each department in an effort to
  provide service quality
• Effects of empowerment and teams on
  organizational employees and service quality
• Management must provide necessary leadership in
  the development, implementation, and maintenance
  of service quality strategies and initiatives
• Development of a service oriented staff
  (management HR roles)

11
Total Service Commitment

• Assessment of effectiveness
• A total service commitment requires regular and
  continual assessment and improvement strategies
• Effective measures of performance must be
  developed, implemented, maintained and
  continually adapted to meet customer requirements
  and to maintain the integrity of the service
  quality commitment established by
  leaders/management
• Effective measurement must be broad based and
  focused on the dimensions of service quality
• Continuous evaluation, adaptation/adoption,
  improvement is key to successful service quality
  strategies and initiatives!