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Service Quality

Service Quality

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Published by Nâumân Khalid

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Published by: Nâumân Khalid on Oct 02, 2011
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07/22/2013

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Service Quality

Learning Objectives
 Describe

the five dimensions of service quality.  Use the service quality gap model to diagnose quality problems.  Illustrate how Taguchi methods and poka-yoke methods are applied to quality design.  Perform service quality function deployment.  Construct a statistical process control chart.  Develop unconditional service guarantees.  Plan for service recovery.  Perform a walk-through audit (WtA)

service recovery is satisfying a previously dissatisfied customer and making them a loyal customer. have the ability to either satisfy or dissatisfy them when you contact them.  You A .Moments of Truth  Each customer contact is called a moment of truth.

.  Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.Dimensions of Service Quality  Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day.

Dimensions of Service Quality  Assurance: Ability to convey trust and confidence. Example: cleanliness.  Tangibles: Physical facilities and facilitating goods. Example: being polite and showing respect for customer.  Empathy: Ability to be approachable. Example: being a good listener. .

Expectations exceeded ES<PS (Quality surprise) 2. Expectations not met ES>PS (Unacceptable quality) . Expectations met ES~PS (Satisfactory quality) 3.Perceived Service Quality Word of mouth Personal needs Past experience Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles Expected service Perceived service Service Quality Assessment 1.

Service Quality Gap Model Service Quality Gap Model Customer Customer Perceptions Managing the Evidence Customer Satisfaction GAP 5 Expectations Understanding the Customer Communication GAP 4 Customer / Marketing Research GAP 1 Service Delivery Conformance GAP 3 Management Perceptions of Customer Expectations Design GAP 2 Conformance Service Standards Service Design .

Quality Service by Design  Quality in the Service Package Budget Hotel example  Taguchi Methods (Robustness) Notifying maids of rooms for cleaning  Poka-yoke (fail-safing) Height bar at amusement park  Quality Function Deployment House of Quality .

Classification of Service Failures with Poka-Yoke Opportunities Server Errors Task: Doing work incorrectly Treatment: Failure to listen to customer Tangible: Failure to wear clean uniform Customer Errors Preparation: Failure to bring necessary materials Encounter: Failure to follow system flow Resolution: Failure to signal service failure .

House of Quality Relationships * O O O Strong Medium Weak Informatiion Equipment 5 2 Capacity Training Attitude Customer Expectations Reliability Responsiveness Assurance Empathy Tangibles 9 7 6 4 2 Comparison with Volvo Dealer Weighted score Improvement difficulty rank Relati ve Servic e Elements Im po rta nc e 8 3 5 2 * * Customer Perc eptions o Village Volvo + Volvo Dealer 1 2 3 4 5 + o o 5 9 9 7 3 6 + o o o + + 3 + + o o o o o _ 127 82 4 5 63 102 1 3 65 2 .

Achieving Service Quality  Cost of Quality (Juran) Process Control Process Control (Deming)  Service  Statistical  Unconditional Service Guarantee .

Costs of Service Quality (Bank Example) Failure costs External failure: Loss of future business Negative word-of-mouth Liability insurance Legal judgments Interest penalties Internal failure: Scrapped forms Rework Recovery: Expedite disruption Labor and materials Detection costs Process control Peer review Supervision Customer comment card Inspection Prevention costs Quality planning Training program Quality audits Data acquisition and analysis Recruitment and selection Supplier evaluation .

Service Process Control Customer input Service concept Customer output Resources Service process Take corrective action Identify reason for nonconformance Monitor conformance to requirements Establish measure of performance .

Control Chart of Departure Delays Percentage of flights on tim e 100 90 80 70 60 1998 1999 expected Lower Control Limit p (1  p UCL  p  3 n p (1  p LCL  p  3 n .

Unconditional Service Guarantee: Customer View  Unconditional (L.L. Bean)  Easy to understand and communicate (Bennigan’s)  Meaningful (Domino’s Pizza)  Easy to invoke (Cititravel)  Easy to collect (Manpower) .

Unconditional Service Guarantee: Management View  Focuses on customers (British Airways)  Sets clear standards (FedEx)  Guarantees feedback (Manpower)  Promotes an understanding of the service delivery system (Bug Killer)  Builds customer loyalty by making expectations explicit .

 Customer loyalty is only due to the lack of a better alternative customers some extra value will delight them by exceeding their expectations and insure their return  Giving .Customer Satisfaction  All customers want to be satisfied.

A customer who has had a problem resolved by a company will tell about 5 people about their situation. A dissatisfied customer will tell between 10 and 20 other people about their problem. About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly. The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers. Of the 96% who do not bother to complain.Customer Feedback and Word-of-Mouth  The average business only hears from 4% of their customers who are dissatisfied with their products or services. 25% of them have serious problems.     .

 Customer impression of service influenced by use of all senses.  Need detailed service audit from a customer’s perspective.  Service managers lose sensitivity due to familiarity. .Walk-Through-Audit  Service delivery system should conform to customer expectations.

Severity Of Failure Service Failure Occurs Perceived Service Quality Psychological -empathy -apology Provider Aware of Failure Tangible -fair fix -value add Fair Restitution Psychological -apology -show interest Patronage Service Recovery Expectations Service Recovery Follow-up Service Recovery Loyalty Satisfaction Retention Customer Loyalty Service Guarantee Speed of Recovery Frontline Discretion Tangible -small token Pre-recovery Phase Immediate Recovery Phase Follow-up Phase Service Recovery Framework .

Approaches to Service Recovery addresses each customer’s complaint individually but could lead to perception of unfairness.  Early intervention attempts to fix problem before the customer is affected.  Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating.  Case-by-case .  Substitute service allows rival firm to provide service but could lead to loss of customer.

 What are the limitations of “benchmarking”.  Why do service firms hesitate to offer a service guarantee?  How can recovery from a service failure be a blessing in disguise? .Topics for Discussion  How do the five dimensions of service quality differ from those of product quality?  Why is measuring service quality so difficult?  Compare the philosophies of Deming and Crosby.  Illustrate the four components in the cost of quality for a service.

. Return to class and discuss what has been learned about service quality. Each group identifies the worst service experience and the best service experience that any member has had.Interactive Exercise The class breaks into small groups.

3. Critique the letter of Gail Pearson in reply to Dr. Briefly summarize the complaints and compliments in Dr. 4. Loflin’s letter. Loflin.The Complaint Letter 1. 2. What are the strengths and weaknesses of the letter? Prepare an “improved” response letter from Gail Pearson What further action should Gail Pearson take in view of this incident? .

How can the servicescape help in selfselecting customers and employees? .The Museum of Art and Design 1. Could there be other explanations for the gaps? Make recommendations for closing the gaps found in the WtA. Critique the WtA gap analysis. 2. 3.

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