TRI/SERVQUAL/LibQUAL+TM

A. Parasuraman University of Miami Library Assessment and Benchmarking Institute (LAB 2002) Monterey, CA September 13, 2002

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Defining, Assessing, and Measuring Service Quality: A Conceptual Overview

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Multi-Phase, Multi-Sector, Multi-Year Program of Research to Address the Following Issues

How do customers perceive and evaluate service quality? What are managers perceptions about service quality? Do discrepancies exist between the perceptions of customers and those of managers? Can customers and managers perceptions be combined into a general model of service quality? How can service organizations improve customer service and achieve excellence?
A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Determinants of Perceived Service Quality

Word of Mouth Personal Needs Past Experience

Expected Service Service Quality Gap Perceived Service

External Communication to Customers Perceived Service Quality

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

A GAPS MODEL OF SERVICE QUALITY

CUSTOMER Market Information Gap SERVICE ORGANIZATION Organizations Understanding of Expectations Service Standards Gap Organizations Service Standards

Customers Service Expectations Service Quality Gap Customers Service Perceptions

GAP 1 GAP 2

GAP 5
GAP 3 GAP 4

Service Performance Gap Organizations Service Performance

Organizations Communications to Customers

Internal Communication Gap

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

PROCESS MODEL FOR CONTINUOUS MEASUREMENT AND IMPROVEMENT OF SERVICE QUALITY

DO YOUR CUSTOMERS PERCEIVE YOUR OFFERINGS AS MEETING OR EXCEEDING THEIR EXPECTATIONS? NO DO YOU HAVE AN ACCURATE UNDERSTANDING OF CUSTOMERS EXPECTATIONS? YES ARE THERE SPECIFIC STANDARDS IN PLACE TO MEET CUSTOMERS EXPECTATIONS? YES DO YOUR OFFERINGS MEET OR EXCEED THE STANDARDS? NO NO NO

YES

CONTINUE TO MONITOR CUSTOMERS EXPECTATIONS AND PERCEPTIONS

TAKE CORRECTIVE ACTION

TAKE CORRECTIVE ACTION

TAKE CORRECTIVE ACTION

YES

NO
IS THE INFORMATION COMMUNICATED TO CUSTOMERS ABOUT YOUR OFFERINGS ACCURATE? YES A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission TAKE CORRECTIVE ACTION

SERVQUAL: Development, Refinement, and Empirical Findings

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Determinants of Perceived Service Quality

Dimensions of Service Quality 1. Access 2. Communication 3. Competence 4. Courtesy 5. Credibility 6. Reliability 7. Responsiveness 8. Security 9. Tangibles 10. Understanding/Knowing the Customer
Word of Mouth Personal Needs Past Experience

Expected Service

External Communication to Customers

Service Quality Gap

Perceived Service Quality

Perceived Service
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A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Correspondence between SERVQUAL Dimensions and Original Ten Dimensions for Evaluating Service Quality
Original Ten Dimensions for Evaluating Service Quality TANGIBLES RELIABILITY RESPONSIVENESS COMPETENCE COURTESY CREDIBILITY SECURITY ACCESS COMMUNICATION UNDERSTANDING/ KNOWING THE CUSTOMER
A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

SERVQUAL Dimensions
TANGIBLES RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY

Definitions of the SERVQUAL Dimensions

Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials. Reliability: Ability to perform the promised service dependably and accurately. Responsiveness: Willingness to help customers and provide prompt service. Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence. Empathy: Caring, individualized attention the firm provides its customers.
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Relative Importance of Service Dimensions When Respondents Allocate 100 Points [Study 1]
RELIABILITY 32%

TANGIBLES 11%

RESPONSIVENESS 22% EMPATHY 16%

ASSURANCE 19%
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Relative Importance of Service Quality Dimensions [Study 2]

Mean Number of Points Allocated out of 100 Points 37
33 11 23 15
All Companies

32

23
18 13

21

14 15

Computer Manufacturer

19

Retail Chain

18

29 12 23 17
Auto Insurer
Reliability Responsiveness Assurance

28 12 23 18
Life Insurer
Empathy Tangibles
12

19

20

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Mean SERVQUAL Scores by Service Dimension [Study 1]

1.00

0.00

-1.00

-2.00 Tangibles Reliability Responsive- Assurance ness

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Empathy

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Nature of Service Expectations

Level Customers Believe Can and Should Be Delivered

Desired Service

Zone of Tolerance
Adequate Service
Minimum Level Customers Are Willing to Accept
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The Two Levels of Expectations Imply Two Corresponding Measures of GAP 5:

Measure of Service Adequacy (MSA)

Perceived Service

Adequate Service

Measure of Service Superiority (MSS)

Perceived Service

Desired Service

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TWO APPROACHES FOR MEASURING MSA AND MSS

Two-Column Format Questionnaire
Direct measures of MSA and MSS

Three-Column Format Questionnaire

Difference-score measures of MSA and MSS

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TWO-COLUMN FORMAT
Please think about the quality of service ________ offers compared to the two different levels of service defined below:

MINIMUM SERVICE LEVEL - the minimum level of service performance you consider adequate. DESIRED SERVICE LEVEL - the level of service performance you desire.

For each of the following statements, please indicate: (a) how ______s performance compares with your minimum service level by circling one of the numbers in the first column; and (b) how ______s performance compares with your desired service level by circling one of the numbers in the second column.

Compared to My Minimum Service Level ____s Service Performance is:

Compared to My Desired Service Level ____s Service Performance is: The Same No Opinion

When it comes to

Lower

The Same

No Higher Opinion

Lower

Higher

1. 2.

Prompt service to policyholders

1 2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8 9

Employees who are 1 2 3 4 5 6 7 8 9 consistently courteous

1 2 3 4 5 6 7 8 9

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THREE-COLUMN FORMAT
We would like your impressions about ________s service performance relative to your expectations. Please think about the two different levels of expectations defined below:

MINIMUM SERVICE LEVEL - the minimum level of service performance you consider adequate. DESIRED SERVICE LEVEL - the level of service performance you desire.

For each of the following statements, please indicate: (a) your minimum service level by circling one of the numbers in the first column; and (b) your desired service level by circling one of the numbers in the second column; and (c) your perception of ___________s service by circling one of the numbers in the third column.

My Minimum Service Level is:

My Desired Service Level is:

My Perception of ____s Service Performance is: No High Opinion

When it comes to

Low

High

Low

High

Low

1. 2.

Prompt service to policyholders

1 2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8 9 Employees who are consistently courteous

1 2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8 9

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Measurement Error: Percent of Respondents Answering Incorrectly

Type of Company
Computer Manufacturer Two-Column Format Three-Column Format

8.6%

0.6%

Retail Chain

18.2%

1.8%

Auto Insurer

12.2%

1.6%

Life Insurer

9.9%

2.7%
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A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Mean Service Quality Scores (Combined Across All Companies)

TWO-COLUMN FORMAT QUESTIONNAIRE MSA Scores MSS Scores 6.8 6.7 6.8 6.5 7.1 5.9 5.7 5.9 5.6 6.4 THREE-COLUMN FROMAT QUESTIONNAIRE MSA Scores 0.2 0.3 0.4 0.2 1.1 MSS Scores -1.0 -1.1 -0.9 -1.2 -0.2

SERVQUAL Dimensions

Reliability Responsiceness Assurance Empathy Tangibles

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Revised SERVQUAL Items

Reliability 1. Providing services as promised 2. Dependability in handling customers' service problems 3. Performing services right the first time 4. Providing services at the promised time 5. Keeping customers informed about when services will be performed

Responsiveness
6. Prompt service to customers 7. Willingness to help customers 8. Readiness to respond to customers' requests Assurance 9. Employees who instill confidence in customers 10. Making customers feel safe in their transactions 11. Employees who are consistently courteous 12. Employees who have the knowledge to answer customer questions Empathy 13. Giving customers individual attention 14. Employees who deal with customers in a caring fashion 15. Having the customer's best interest at heart 16.Employees who understand the needs of their customers Tangibles 17. Modern equipment 18. Visually appealing facilities 19. Employees who have a neat, professional appearance

20. Visually appealing materials associated with the service

21. Convenient business hours

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Service Quality Perceptions Relative to Zones of Tolerance by Dimension Computer Manufacturer

9
8 7 6 5 4 3

2
1 0 Reliability Responsiveness Assurance Empathy Tangibles Zone of Tolerance S.Q. Perception
22

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Service Quality Perceptions Relative to Zones of Tolerance by Dimension Computer Manufacturer

9
8 7 6 5 4 3

2
1 0 Reliability Responsiveness Assurance Empathy Tangibles Zone of Tolerance S.Q. Perception
23

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Service Quality Perceptions Relative to Zones of Tolerance by Dimension On-Line Services

9 8 7 6 5
6.8 8.4 7.0 7.0 8.3 7.0 6.7 8.4 6.8 8.3 6.7 6.8 7.5 6.8 5.7

4 3
2 1

0
Reliability Responsiveness Assurance Empathy Tangibles

Zone of Tolerance

S.Q. Perception
24

A. Parasuraman, University of Miami; not to be reproduced or disseminated without the authors permission

Service Quality Perceptions Relative to Zones of Tolerance by Dimension

Tech-Support Services
9 8 7 6 5
6.6 6.1 8.5 6.9 8.4 6.7 6.3 6.4 6.3 8.3 6.8

8.1

4 3
2 1

0
Reliability Responsiveness Assurance Empathy

Zone of Tolerance

S.Q. Perception
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LIBQUAL+: An Adaptation of SERVQUAL

Source: http://www.arl.org/newsltr/212/libqual.jpg
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MULTIPLE METHODS OF LISTENING TO CUSTOMERS

Transactional surveys* Mystery shopping New, declining, and lost-customer surveys Focus group interviews Customer advisory panels Service reviews Customer complaint, comment, and inquiry capture Total market surveys* Employee field reporting Employee surveys Service operating data capture *A SERVQUAL-type instrument is most suitable for these
methods
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The Role Of Technology In Service Delivery: Electronic Service Quality (e-SQ) and Technology Readiness (TR)

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Technologys Growing Role in Marketing to and Serving Customers: Pyramid Model

Company
Internal Marketing External Marketing

Employees
Interactive Marketing

Customers

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Ongoing Research on e-Service Quality: Conceptual Framework and Preliminary Findings

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Research Phases and Questions

PHASE 1: What is good service on the Web? What are the underlying dimensions of superior electronic service quality (e-SQ?) How can e-SQ be conceptualized? PHASE 2: How do these dimensions compare to those of traditional service quality? How can e-SQ be measured and thereby assessed?
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Definition of e-Service Quality (e-SQ)

e-SQ is the extent to which a Website facilitates efficient and effective shopping, purchasing and delivery of products and services.
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Dimensions of e-Service Quality from Focus Groups

Access Ease of Navigation Efficiency Customization/ Personalization Security/Privacy Responsiveness Assurance/Trust Price Knowledge Site Aesthetics Reliability Flexibility

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Reliability
DEFINITION Correct technical functioning of the site and the accuracy of service promises, billing and product information.
SAMPLE ATTRIBUTES Site does not crash Accurate billing Accuracy of order Accuracy of account information Having items in stock Truthful information Merchandise arrives on time
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Efficiency
DEFINITION
SAMPLE ATTRIBUTES
Site is well organized The site is simple to use, Site is simple to use structured properly, Site provides and requires a information in minimum of reasonable chunks information to be input by the customer. Site allows me to click for more information if I need it

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Means-End Model

Concrete Cues

Perceptual Attributes

Dimensions

Higher-level Abstractions

SPECIFIC/ CONCRETE

ABSTRACT

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Means-End Model of e-Service Quality

Concrete Cues Perceptual Attributes Higher-Level Abstractions

Dimensions

Tab Structuring Site Map Search Engine

Easy to Maneuver through Site Easy to Find What I Need Speed of Checkout

Ease of Navigation

One-click Ordering

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Concrete Cues

Perceptual Attributes

Dimensions
Access Ease of Navigation Efficiency Flexibility Reliability Personalization Security/ Privacy Responsiveness

Higher-Level Abstractions

Perceived e-Service Quality

Assurance/ Trust
Site Aesthetics Price Knowledge
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Means-End Model of e-Service Quality

Behaviors Higher-Level Abstractions
Purchase Loyalty Perceived Convenience Perceived e-Service Quality Perceived Control Perceived Value W.O.M

Dimensions Perceptual Attributes

Concrete Cues

Perceived Price
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Conceptual Model for Understanding and Improving e-Service Quality

Customer

Customer Web site Requirements

Customer Web site Experiences

Perceived e-SQ

Perceived Value

Purchase/ Repurchase

Company

Information Gap

Marketing of the Web site

Communication Gap

Design and Operation of the Web site Design Gap

Managements Beliefs about Customer Requirements

e-Service Quality vs. Traditional SQ

Several dimensions are the same, but specific attributes underlying them are different e-SQ involves some new dimensions Empathy -- and other hi-touch oriented attributes -- do not seem to be as critical for e-SQ except when customers experience problems; preliminary insights from Phase 2 suggest differences between regular and recovery e-SQ Key drivers of regular e-SQ relate to efficiency, fulfillment, reliability, and privacy Key drivers of recovery e-SQ relate to responsiveness, real-time access to help, and compensation
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An Important Implication of the Pyramid Model

An organizations ability to use technology effectively in marketing to and serving customers critically depends on the technology readiness of its customers and employees
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What is Technology Readiness [TR]?

TR refers to peoples propensity to embrace and use new technologies for accomplishing goals in home life and at work
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Key Insights from Qualitative Research Studies

TR doesnt just refer to possessing technical skills; TR is much more a function of peoples beliefs and feelings about technology Peoples beliefs can be positive about some aspects of technology but negative about other aspects The relative strengths of the of positive and negative beliefs determine a persons receptivity to technology
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Technology-Beliefs Continuum

Resistant to Technology

Neutral

Receptive to Technology

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Link between Technology Beliefs and Technology Readiness

High

Technology Readiness

Medium

Low Resistant to Technology

Neutral

Receptive to Technology

Technology-Beliefs Continuum
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Major Quantitative Research Studies

Three National Technology Readiness Surveys [NTRS] in the USA:
January 1999 February 2000 November 2001 November 2002 [being planned]

Austrian Technology Readiness Surveys

February 2001 October 2002 [being planned]

Swedish Technology Readiness Survey

July/August 2002 [data collected; analysis underway]

Key Insights from Quantitative Research Studies

TR consists of four facets or dimensions that are fairly independent of one another Peoples ratings on a set of belief statements about technology can be combined to create a reliable and valid measure of TR -- i.e., a Technology Readiness Index [TRI] The TRI is a good predictor of peoples technology-related behaviors and preferences A meaningful typology of customers can be created based on their TR scores on the four dimensions
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Drivers of Technology Readiness

Contributors

Optimism

Innovativeness

Technology Readiness

Inhibitors

Discomfort

Insecurity

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Definitions of the TR Drivers

Optimism: Positive view of technology; belief that it offers increased control, flexibility and efficiency Innovativeness: Tendency to be a technology pioneer and thought leader Discomfort: Perceived lack of control over technology and a feeling of being overwhelmed by it Insecurity: Distrust of technology and skepticism about its working properly
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TR Scores by Dimension and Overall TRI

4,5 4 3,5 3 2,5 2 1,5 1 0,5 0
1 2 3

*
*
4 5

Mean TR Scores

OPT.

INN.

DIS.

INS.

TRI

US 1999

US 2000

US 2001

Austria 2001

*Austrian and US scores are signifcantly different

Characteristics of Technology Segments

Optimism InnovativeDisness comfort Insecurity

Explorers High Pioneers High

Low Paranoids High Laggards Low

Skeptics

High High Low Low Low

Low High Low High High

Low High Low High High

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The Five TR Segments Differ on Technology Usage..

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Greater than 50% Ownership/Usage of Technology-Based Products/Services (as of 1999)

Explorers: Computers, cell phones, caller ID, ATMs, online services, telephone banking Computers, cell phones, caller ID, ATMs, online services Computers, ATMs ATMs None
54

Pioneers:

Skeptics: Paranoids: Laggards:

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Pace of Technology Adoption

Timing of 10% penetration rate for Internet access within each customer segment
Skeptics Explorers Pioneers

Laggards

Paranoids

7/95

10/96

5/97

1/98

9/98

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New Customer Composition by Age of TechnoBased Product/Service

First-time Users

Laggards Paranoids Skeptics Pioneers Explorers

ly

Ea r

La

te

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In Conclusion, to Deliver Superior Service in Library Environments:

Understand customers service expectations and how well those expectations are being met Work systematically to remove organizational barriers that lead to poor customer service -- offline and online Recognize and capitalize on the increasing role of technology in serving customers, but Be cognizant of customers and employees readiness to embrace technology-based services Recognize that e-service quality as perceived by customers involves much more than having a state-of-the-art website Put in place a solid behind-the-scenes infrastructure -- information systems, logistics, and human resources -- to deliver what a websites faade promises. Continuously monitor customers and employees reactions to and experiences with your electronic interfaces
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Sources of Information about TR and e-SQ

Parasuraman and Colby, Techno-Ready Marketing: How and Why Your Customers Adopt Technology, New York: The Free Press, 2001. Parasuraman, Technology Readiness Index (TRI): A Multiple-Item Scale to Measure Readiness to Embrace New Technologies, Journal of Service Research, May 2000, pp. 307-320. Zeithaml, Parasuraman, and Malhotra, A Conceptual Framework for Understanding e-Service Quality: Implications for Future Research and Managerial Practice, MSI Monograph, 2000 (Report # 00-115).

Thank You!

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