SERVICE QUALITY

By: Bikash Ranjan Debata

The objective of this lesson is
to have an insight into:

 Developing service quality

 Features of service quality
 Gaps is service quality
Service Quality:-
There are many definitions of quality, and in
many senses quality is subjective. The best
way to discuss about service quality is to
distinguish service quality measurement from
customer satisfaction measurement.
To many people, quality implies luxury or
excellence; a Rolls Royce rather than a Ford;
cordon bleu instead of fast food. However,
quality can also be measured in terms of
fitness for purpose, and a Ford Escort is
regarded by many owners as a quality family
car, while McDonalds provide a quality fast
food service.
Developing service quality:-
why developing and delivering a quality service
is so important, it can be broken down into three
main areas:
 Organizations with a reputation for consistently high
quality can sustain an enviable competitive
advantage in the service marketplace.

 Quality is 'free' - that is to say getting it right first

time costs far less than providing remedies when
services fail to meet the customer's required
standard.

 Better quality services can attract premium prices.

Consumers are prepared to pay a higher price for
services that fulfill all their expectation criteria.
Features of service quality:-
 Customer participation - Customers are
frequently active participants in the service
process - they co-produce the service.

 Intangibility - Highly intangible services

may be based on philosophical or
conceptual elements. This abstract nature
of some services makes them difficult for
the service provider to describe, and for the
customer to evaluate.
 The service encounter - Services are
often comprised of a number of component
parts, and it is the sum of these, or the
overall experience of the service
encounter, which the customer will use to
form judgments.

 Inseparability - Many specialized services

are inseparable - the characteristics of the
service provider in terms of expert
knowledge or skill, for example, are a
constituent part of the service quality.
Gaps is service quality:-

Formal means of gaps in service

quality to identify and correct gaps
between desired levels and actual
levels of performance.
Service quality focuses on the
customer’s cumulative attitude,
which is collected by the consumer
from number of successful and
unsuccessful service experience.
 Service Quality Gap Model

Customer Customer Satisfaction Customer

GAP 5
Perceptions Expectations

Managing the Customer / Understanding

Evidence Marketing Research the Customer
Communication
GAP 4 GAP 1

Management
Service
Perceptions
Delivery of Customer
Expectations
Conformance
Design GAP 2
GAP 3
Conformance Service Design
Service
Standards
Before the firm close the service gap,
the firm must close on narrow down 4
other gaps namely:-

 Knowledge gap
 Standard gap

 Delivery gap

 Communication gap
 Knowledge Gap- Difference
between customer expectation of
service and management perception
of customer’s expectation.
 Standard Gap- Difference
between management perception of
customer expect and standard
specification set for service.
 Delivery Gap- Standard
specification set for service delivery
Vs actual quality of service delivery.
 Communication gap- Actual
quality of service delivery Vs quality
of service described in the firm’s
external communication
Factor influencing knowledge gap:

 Research orientation
 Upward communication
 Level of management
Factor influencing Delivery gap:

 Willingness to perform.
 Employee job-fit
 Role conflict.
Factor influencing Communication
gap:
 Over promising
 Horizontal communication.
 SERVQUAL
“Measuring service Quality”
SERVQUAL:
A frequently used and highly debated
measure of service quality is known as
servqual scale.
It is also a diagnostic tool that uncover
firm’s broad weakness and strength in the
area of service quality. The service
instrument is based on five service quality
dimensions which are obtained from
highly extensive focus group interview
with the customers.
Five Dimensions of Service Quality:

 The tangible dimension.

 The reliability dimension.
 The responsiveness dimension.
 The assurance dimension.
 The empathy dimension.
 Tangibles dimension:
(Physical facilities and facilitating goods) The
tangible dimension of servqual compares the
customer’s expectation and firm’s performance
regarding the firm’s ability to manage its
tangible. Example: cleanliness.
consequently the tangible component in
SERVQUAL has 2 dimensions:
 One focus on the equipment and facilities
 Other focuses on personnel and
communication materials.
The tangible component of SERVQUAL is
obtained from four customer expectation
Continued…..
Questions ( E1-E2) and four customer
perception questions (P1-P2). Keep in
mind that the customer expectation
questions apply to the excellent firm’s
within the particular industry, while the
customer perception questions apply to the
specific firm under investigation.
Comparing the customer expectation score
with customer perception score provides a
numeric variable that indicates the tangible
gap. The smaller the numer,the smaller the
gap and the closer customer perception to
expectation.
Tangible perceptions:

P1: XYZ has modern looking equipment.

P2: XYZ’s physical facilities are visually
appealing.
P3: XYZ’s employee are neat in appearance.
P4: materials associated with the service
( such as pamphlets on statements) are
visually appealing at XYZ.
Tangible Expectation:

E1: Excellent firm will have modern looking

equipment.
E2: The physical facilities of excellent firm will

be visually appealing
E3: Excellent firm’s employee will be neat in
appearance.
E4: Materials associated with service (such
as pamphlets on statements) for excellent
firm will be visually appealing
Reliability dimension:
(Perform promised service dependably and
accurately.) The reliability dimension reflect
the consistency and dependability of the
firm’s performance. Does the firm provide the
same level of service from time to time on
there is a drastic variation in each service
encounter. Does the firm keep its promises,
does the billing procedure is accurate, keep
the accurate record, etc. Nothing can be
more frustrating for the customer than
unreliable services providers. Example:
receive mail at same time each day.
Reliability expectation:
E5: when excellent firm 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 company will insist on error-free
records.
Reliability Perceptions:

P5: When XYZ promise to do something by a

certain time, they will do 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 the services at the time
they promise to do so.
P9: XYZ insists on error free records.
Responsiveness dimension:
(Willingness to help customers promptly.)
Responsiveness reflects a service firm’s
commitment in providing it service in a timely
manual. As such, the responsive dimension
of SERVQUAL concern with the willingness
and/or readiness of employee to provide
service. Occasionally, customer may
encounter a situation in which employees are
engage in their own conversation with one
another while ignoring the need of customer.
Example: avoid keeping customers waiting
for no apparent reason.
Responsive Expectation:
E10: Employees of excellent companies will
tell customers exactly when services will
be performed.
E11: Employees of excellent companies will
give prompt service 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 to customer
request.
Responsive Perception:

P10: Employees of XYZ tell you exactly when

services will be performed.
P11: Employees of XYZ give you prompt
service.
P12: Employees of XYZ are always willing to
help you.
P13: Employees of XYZ are never too busy to
respond to your requests.
Assurance Dimension:

(Ability to convey trust and confidence.)

The assurance dimension of SERVQUAL
address the competence of the firm, the
courtesy extended to its customer and the
security of its operation. Competence
pertain to firm’s knowledge and skills in
performing its service. Courtesy refers to
firm’s employees interaction with the
customer. Example: being polite and
showing respect for customer.
Assurance Expectation:

E14: The behavior of employees of excellent

firms will instill confidence in customers.
E15: Customers of excellent companies will
feel safe in their transaction customers.
E16: Employees of excellent firms will be
consistency courteous with customers.
E17: Employees of excellent firms will have
the knowledge to answer customer’s
questions
Assurance Perception:

P14: The behavior of employees of XYZ

instills confidence in customers.
P15: You feel safe in your transaction with
XYZ.
P16: Employees of XYZ are consistently
courteous with you.
P17: Employees of XYZ have the knowledge
to answer your questions.
Empathy dimension:

(Ability to experience another’s

feelings as one’s own.)
The Empathy dimension of
SERVQUAL address the ability to
put itself in its customer’s place.
Empathetic fimr understand the need
of the customers of make their
services assessable to their
customers.
Empathy Expectation

E18: Excellent firms will give customer

individual attention.
E19: Excellent companies will have operating
hours convenient to all their customer.
E20: The employees of excellent firm give
customer personal attention.
E21: Excellent firms will have customer best
interest at heart.
E22: The excellent of firms will understand
the specific needs of the customers.
Empathy Perception

P18: XYZ gives you individual attention.

E19: XYZ has operating hours convenient to
all its customer.
E20: XYZ employees give customer personal
attention.
E21: XYZ has best interest at heart.
E22: Employees of XYZ understand the
specific needs.