SESSION 30-31

Defining and Measuring Service Quality

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 What Is Service Quality?

• Service quality: an attitude formed by a long-term,

overall evaluation of the firm’s performance
• Customer satisfaction
– A short-term, transaction-specific measure
• The two concepts are intertwined but their relationship is
unclear
– Does customer satisfaction lead to perceived service quality
or
– Does service quality lead to customer satisfaction?

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Conceptual Model of Service Quality

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Diagnosing Failure Gaps
in Service Quality
• Gap 1: The knowledge gap
– Influenced by the firm’s:
• Research orientation
• Upward communication
• Levels of management

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Diagnosing Failure Gaps
in Service Quality (cont’d)
• Gap 2: The standards gap
– Influenced by:
• Perceptions of feasibility
• Management’s commitment to the delivery of service quality
vs. cost reduction and short-term profits
• No culture for service quality
• Insufficient methods of measuring quality or converting those
measurements into standards
• Difficulties in attempts to write specifications for particular
employee behaviors

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Diagnosing Failure Gaps
in Service Quality (cont’d)
• Gap 3: The delivery gap
– Influenced by:
• Willingness to perform
• Employee-job fit
• Role conflict
• Role ambiguity
• Dispersion of control
– Learned helplessness
• Inadequate support

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Diagnosing Failure Gaps
in Service Quality (cont’d)
• Gap 4: The communications gap
– Influenced by the:
• Propensity of overpromising
• Amount of horizontal communication

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Measuring Service Quality: The
SERVQUAL Measurement Scale
• A diagnostic tool that uncovers a firm’s broad
weaknesses and strengths in the area of service quality
• Consists of two sections of questions
– The first section is comprised of 22 questions that ask
respondents to record their expectations of excellent firms in the
specific service industry
– The second section of questions is comprised of 22 matching
questions that assess consumer perceptions of a particular
company in that service industry

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Measuring Service Quality: The
SERVQUAL Measurement Scale (cont’d)

• When the mean expectation score is subtracted from the

mean perception score, a “gap score” is created
– Positive gap scores reflect situations where perceptions exceed
expectations and customers are happy
– Negative gap scores exist where perceptions that are less than
expectations reflect unsatisfactory situations and customer
unhappiness
– When the gap score equals zero, customer perceptions have met
customer expectations, and consumers are satisfied

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Measuring Service Quality: The
SERVQUAL Measurement Scale (cont’d)

• A 44-item scale that measures customer

expectations and perceptions regarding
five service quality dimensions

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Measuring Service Quality: The
SERVQUAL Measurement Scale (cont’d)

The Tangibles Dimension

The Reliability Dimension

The Responsiveness Dimension

The Assurance Dimension

The Empathy Dimension

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 SERVQUAL:
The Tangibles Dimension
• Tangibles expectations
E1: Excellent companies will have modern-looking equipment
E2: The physical facilities at excellent companies will be visually appealing
E3: Employees of excellent companies will be neat in appearance
E4: Materials associated with the service (such as pamphlets or statements)
will be visually appealing in an excellent company
• Tangibles perceptions
P1: XYZ has modern-looking equipment
P2: XYZ’s physical facilities are visually appealing
P3: XYZ’s employees are neat in appearance
P4: Materials associated with the service (such as pamphlets or statements)
are visually at XYZ

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 SERVQUAL:
The Reliability Dimension
• Reliability expectations
E5: When excellent companies keep a 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 solving it
E7: Excellent companies will perform the service right the first time
E8: Excellent companies will provide their services at the time they promise to do so
E9: Excellent companies will insist on error-free records
• Reliability perceptions
P5: When XYZ promises to do something by a certain time, it does 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 its services at the time it promises to do so
P9: XYZ insists on error-free records

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 SERVQUAL:
The Responsiveness Dimension
• Responsiveness expectations
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
requests
• Responsiveness perceptions
P10: Employees of XYZ tell you exactly when service 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

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 SERVQUAL:
The Assurance Dimension
• Assurance expectations
E14: The behavior of employees of excellent companies will instill confidence in
customers
E15: Customers of excellent companies will feel safe in their transactions
E16: Employees of excellent companies will be consistently courteous with customers
E17: Employees of excellent companies will have the knowledge to answer customer
questions
• Assurance perceptions
P14: The behavior of employees of XYZ instills confidence in customers
P15: You feel safe in your transactions with XYZ
P16: Employees of XYZ are consistently courteous with you
P17: Employees of XYZ have the knowledge to answer your questions

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 SERVQUAL:
The Empathy Dimension
• Empathy expectations
E18: Excellent companies will give companies individual attention
E19: Excellent companies will have operating hours convenient for all their customers
E20: Excellent companies will have employees who give customers personal attention
E21: Excellent companies will have the customer’s best interest at heart
E22: The employees of excellent companies will understand the specific needs of their
customers
• Empathy perceptions
P18: XYZ gives you individual attention
P19: XYZ has operating hours convenient to all its customers
P20: XYZ has employees who give you personal attention
P21: XYZ has your best interests at heart
P22: Employees of XYZ understand your specific needs

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Criticisms of SERVQUAL

• Length of the questionnaire

– Expectation and perception questions seem
redundant
– What’s the value of including the expectation
section?
• The validity of the five dimensions
– The five proposed dimensions of service
quality do not hold up under statistical scrutiny
– Measurement issues

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 The Diagnostic Advantage of
SERVQUAL Scores

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Relative Importance of SERVQUAL Dimensions
as Reported by Consumers

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 SERVQUAL: Some Final Thoughts

• Contact personnel is important

• Process is as important as outcome
• Consumer perceptions are unpredictable
• Despite its critics, SERVQUAL remains an
often-used instrument to assess service
quality

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Service Quality Information Systems

• Solicitation of customer complaints

– Primary objectives of soliciting customer complaints:
• Identify unhappy customers
• Identify weaknesses in the firm’s service delivery system and take the
correction actions necessary to minimize future occurrences of the same
problem
• After-sales surveys
– A more proactive approach to assessing customer satisfaction than
solicitation of complaints
– Attempts to contact every customer and take corrective action if a
customer is less than satisfied with his or her purchase decision
– The survey is taken while the encounter is fresh on the customer’s mind

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Service Quality
Information Systems (cont’d)
• Customer focus group interviews
– Participants are encouraged to express their views and comment
on suggestions made by others in the group
– Other forms of research are generally necessary to confirm that
the groups’ ideas reflect the feelings of the broader segment of
consumers
• Mystery shopping
– Measures individual employee behavior
– Aids the firm in coaching, training, evaluating, and formally
recognizing its employees

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Service Quality
Information Systems (cont’d)
• Employee surveys
– Employee satisfaction with the firm directly corresponds to
customer satisfaction
– Employee surveys should examine morale, attitudes, and
perceived obstacles
• Total market service quality surveys
– Assesses the firm’s service quality and its competitors’ perceived
service quality
– Provide a firm with information about needed improvements in the
service delivery system and measure the progress the firm has
been making in previously identified areas of need

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Service Quality
Information Systems (cont’d)
• Listening
– Quality is defined by the customer
– Conformance to company specifications is not quality;
conformance to customers’ specifications is
• Reliability
– The core of service quality
– Little else matters to a customer when a service is unreliable
• Basic service
– Deliver the basics first; the frills can come later

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Service Quality
Information Systems (cont’d)
• Service design
– Design flaws can reduce the perception of quality
• Recovery
– Firms that do not respond effectively to customer complaints
compound the service failure
• Surprising customers
– Exceeding customer expectations
• Fair play
– Customers expect to be treated fairly and will become resentful
and mistrustful if treated otherwise

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner
 Service Quality
Information Systems (cont’d)
• Teamwork
– Service team building should not be left to chance
• Employee research
– Is as important to service improvement as customer
research
• Servant leadership
– Leadership must serve the servers—inspiring,
coaching, and enabling them to achieve

*Slides are based on content of Services Marketing -K.D.Hoffman & J.E.G.Bateson and Services Marketing by V.A.Zeitmal & M.J.Bitner