• Companies rated higher on service quality perform better in terms of market share growth • Big gap exists between the expectations of the customers and the level of the service they get Real barriers while matching expected and perceived service levels of customers CONT……………………………… • Does not understand customer requirements: Misconception barriers arise when companies misunderstand customer expectations
• No resources: A company may understand
customer expectations but is unwilling to provide resources to meet them
• Bad delivery: The company is not able to deliver
the expected service CONT…………………………
• Management’s will: A management eager
to improve quality is able to do it
• Exaggerated expectations: Exaggerated
promises may become a problem SERVICE PRODUCTIVITY • Managing service productivity • Measure of relationship between the various types of inputs that are required to produce the service and the service output • Conflict between improving service productivity and raising service quality • Technology can be used to improve productivity and service quality simultaneously CONT……………………………. • Customer involvement in production can be increased • Important to balance supply and demand • By smoothing demand or increasing flexibility of supply, both productivity and service quality can be achieved