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Services Marketing - Service Quality Dimensions
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Significance of Service quality is very important for the success of a service company : ...

Significance of Service quality is very important for the success of a service company :
1. To win credibility & get repeat customers : If a company offers quality service consistently, It enjoys repeat business, i.e., customers visit it repeatedly. They may even refer it to their friends & relatives and provide positive word-of-mouth publicity to the quality service offered by the company.
2. To charge premium price : When a company offers superior quality service, compared to its competitors, customers who value quality will always prefer this company to other players in the market. So, the company will be in a position to charge a premium price from customers.
According to Berry & A Parasuraman, service quality is determined by customers using various criteria like credibility, security, access, communications, tangibles, responsiveness, reliability, competence, courtesy, tangibles, understanding, etc. Gronoos also suggested another list of criteria as professionalism & skills, attitude & behaviour, accessibility & flexibility, reliability & trustworthiness, reputation & credibility, and recovery. Since some of these factors are similar or overlapping, the authors have consolidated these into five distinct dimensions,
These dimensions represent how consumers organise information about service quality in their minds. These five dimensions were found relevant for banking, insurance, appliances repair, & maintenance, securities brokerage, long distance tele-service, auto repair service, & others. The dimensions are also applicable to retail & business services. This can be logically extended to internal services as well.

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Services Marketing - Service Quality Dimensions Presentation Transcript

  • 1. SERVICES MARKETING CHAPTER - 6 SERVICE QUALITY DIMENSIONS & SERVQUAL 1
  • 2. Service Quality • According to David Gravin, the Service Quality can be defined from different perspectives – (1) User based, (2) Product based, (3) Manufacturing based, (4) Value based & (5) Transcendent view. 2
  • 3. User Based Approach : • This approach suggests that quality should be defined from the customer’s prospective. • A service offering that meets the customer need & wants to his complete satisfaction is quality service. • This approach also recognises that different customers have different needs, because of which it becomes difficult for the service provider to satisfy every customer’s needs. 3
  • 4. Product Based Approach : • This approach suggests that the service offered by a firm falls short of the quality standard only when a certain attribute or aspect of service is left out or distorted. • This view is totally objective, and hence it fails to account for differences in customers. 4
  • 5. Operations Based Approach : • This approach suggests that the quality of a service depends on the efficiency of the operations involved in service design & delivery. • It emphasises cost effectiveness & productivity rather than customers’ needs & preferences. 5
  • 6. Value Based Approach : • This approach seeks to define quality as the value offered in return for the price paid by the customer. • In other words it suggests that the higher the price charged from the customer, the more should be the benefits offered by the service provider. 6
  • 7. Transcendent View Of Quality : • This view suggests that a person can assess the quality of service accurately only when he is exposed to it repeatedly. • This implies that consistency in maintaining quality standard is important. 7
  • 8. SIGNIFICANCE OF QUALITY Following are the two basic reasons why quality is significant for the success of a service company : To win credibility & get repeat customers : • If a company offers quality service consistently, It enjoys repeat business, i.e., customers visit it repeatedly. • They may even refer it to their friends and relatives and provide positive word-of-mouth publicity to the quality service offered by the company. 8
  • 9. SIGNIFICANCE OF QUALITY To charge premium price : • When a company offers superior quality service, compared to its competitors, customers who value quality will always prefer this company to other players in the market. • So, the company will be in a position to charge a premium price from customers. 9
  • 10. The Outcomes Of Quality • Service providers evaluate certain components of a service to determine its quality. • On the other hand, ultimately, consumers judge of the service on the basis given below: • (1) on their perceptions of the technical outcome provided & • (2) on how the outcome was delivered. According to Christian Gronoos, any service has two important components – technical & functional. 10
  • 11. The Outcomes Of Quality 1.Technical : This component refers to the actual output of the service operation. The technical component of service is easier to evaluate than the functional component. 2.Functional or Process : This component involves interaction between the customer & the service personnel. 3.Some Marketing experts consider the Image / Reputation of a company having a direct & strong effect in the customer’s perception of quality. 11
  • 12. SERVICE QUALITY DIMENSIONS According to L L Berry, A Parasuraman & V A Zeithaml service quality is determined by customers using various criteria like : • credibility, security, • access, communications, • tangibles, responsiveness, • reliability, competence, • courtesy, understanding, etc. 12
  • 13. SERVICE QUALITY DIMENSIONS Christian Gronoos also suggested another list of criteria as • professionalism & skills, • attitude & behaviour, • accessibility & flexibility, • reliability & trustworthiness, • reputation & credibility, and recovery. • Since some of these factors are similar or overlapping, the authors have consolidated these into five distinct dimensions, as given below : 13
  • 14. SERVICE QUALITY DIMENSIONS 1.Reliability : Ability to perform the promised service dependably & accurately. 2.Responsiveness : Willingness to help customers & provide prompt service. 3.Assurance : Employees’ knowledge & courtesy and their ability to inspire trust & confidence. 4.Empathy : (understanding & sensitive) Caring individualised attention given to customers. 5.Tangibles : Appearance of physical facilities,14
  • 15. SERVICE QUALITY DIMENSIONS • These dimensions represent how consumers organise information about service quality in their minds. • These five dimensions were found relevant for banking, insurance, appliances repair & maintenance, securities brokerage, long distance tele-service, auto repair service, & others. • The dimensions are also applicable to retail & business services. 15
  • 16. SERVICE QUALITY DIMENSIONS • This can be logically extended to internal services as well. • Sometimes customers will use all of the dimensions to determine service quality perceptions, at other times, not. • (Ex., in a remote encounter such as ATM, empathy is not relevant, and in a phone encounter such as scheduling a repair call, tangibles are not relevant.) 16
  • 17. Reliability : Delivering on Promises : • Reliability is defined as the ability to perform the promised service dependably & accurately. • In its broadest sense, reliability means that the company delivers on – Its promises about delivery, – Service provision, problems resolution – And finally pricing. 17
  • 18. Reliability : • Customers want to do business with companies that keep their promises, particularly their promises about the core service attributes. • All firms need to be aware of customer expectation of reliability. • Firms that don’t provide the core service the customers think they are buying, fail or frustrate their customers in the most direct way. 18
  • 19. Responsiveness : Being Willing to Help : • Responsiveness is the willingness to help customers & provide prompt service. • These dimensions emphasise attentiveness & promptness in dealing with customer requests, questions, complaints, & problems. • Responsiveness is communicated to customers by the length of time they have to wait for assistance, answers to questions, or attention to problems. 19
  • 20. • Responsiveness also captures the notion of flexibility & ability to customise the service to customer needs. • To excel on the dimension of Responsiveness, a company must be certain to view the process of service delivery the handling of requests from the customer’s point of view, rather than from the company’s point of view. 20
  • 21. Assurance : Inspiring Trust & Confidence : Assurance is defined as employees’ knowledge & courtesy and the ability of the firm & its employees to inspire trust & confidence. • This dimension is likely to be particularly important for services that the customer perceives as involving high risk and/or about which they feel uncertain about their ability to evaluate outcomes. 21
  • 22. 22 • Ex., Insurance, Banking, Mutual Fund, Brokerage, Medical & Legal Services. • Trust & confidence may be incorporated in the person who links the customer to the company. • Ex., Security brokers, Insurance agents, Lawyers, Counsellors. • In such service context the company seeks to build trust & loyalty between key contact people & individual customers.
  • 23. 23 • In other situations, trust & confidence are embodied in the organisation itself. • In the early stages of relationship, the customer may use tangible evidence to assess the assurance dimensions. • Ex., visible evidence of degrees, honours, & awards and special certification may give a new customer confidence in a professional service provider.
  • 24. Empathy : Treating Customers as Individuals : • Empathy denotes a deep emotional understanding of another's feelings or problems; while sympathy is more general and can apply to small annoyances or setbacks. • Sympathy means the stimulation in a person of feelings that are similar in kind to those that affect another person; empathy means a mental or affective projection into the feelings or state of mind of another person. 24
  • 25. 25 • Empathy is defined as the caring, individualised attention the firm provides its customers. • The essence of empathy is conveying thro’ personalised or customised service, that customers are unique & special. • Customers want to feel understood by and important to firms that provide service to them. • Personnel at small service firms often know customers by name & build relationships that reflect their personal knowledge of customer requirements & preferences.
  • 26. 26 • When such a small firm competes with larger firms, the ability to be empathetic may give the small firm a clear advantage. • In business to business services, customers want supplier firms to understand their industries & issues. • Many small computer consulting firms successfully compete with large vendors by positioning themselves as specialists in particular industries.
  • 27. Tangibles : Representing the Service Physically : • Tangibles are defined as the appearance of physical facilities, equipment, personal, & written communication materials. • All of these provide physical representation or image of the service that customers, particularly new customers, will use to evaluate quality. • Service industries that emphasise tangibles in their strategic include hospitality services where the customer visits the establishment to receive the service, such as restaurants, hotels, retail stores, &27
  • 28. 28 • While tangibles are often used by service companies to enhance their image, provide continuity, & single quality to customers, most companies combine tangibles with another dimension to create a service quality strategy for the firm. • In contrast, firms that don’t pay attention to the tangible dimension of the service strategy can confuse & even destroy an otherwise good strategy.
  • 29. SERVQUAL - Introduction : • A good service marketing research programme includes several types of research study. The composite of studies & types of research will differ by company because the range of use for service quality research – from employee performance assessment to advertising campaign development to strategic planning – requires a rich, multi- dimensional flow of information. 29
  • 30. Relationship & Servqual Surveys • One category of surveys could appropriately be named relationship surveys because they pose questions about all elements in the customers’ relationship with the company (including service, product, & price). • This comprehensive approach can help a company diagnose its relationship strengths & weaknesses. 30
  • 31. 31 • These surveys typically monitor & track service performance annually with an initial survey providing a base line. • Relationship surveys are also effective in comparing company performance with that of competitors, often focusing on the best competitor’s performance as a benchmark. The following are the salient features :
  • 32. Feature - 1 • Unlike goods quality, which can be measured objectively by such indicators (as durability, & no. of defects), service quality is abstract & is best captured by surveys that measure customers’ evaluations of service. • One of the first measures to be developed specifically to ensure service quality was the SERVQUAL SURVEY as devised by Parasuraman, Zeithaml, & 32
  • 33. Feature - 2 • The SERVQUAL scale involves a survey containing over 21 service quality attributes grouped into the five service quality dimensions (discussed earlier) of reliability, responsiveness, assurance, empathy, & tangibles. • The survey sometimes asks customers to provide two different rating on each attribute – 33
  • 34. 34 a.Reflecting the level of service they would expect from excellent companies in a sector, & b.Reflecting their perception of the service delivered by a specific company in the same sector. • The difference between the expectation & perception ratings constitutes a qualified measure of service quality.
  • 35. Feature - 3 • Data gathered thro’ a SERVQUAL survey can be used for a variety of purposes as given below : – To determine the average gap score (between customer perceptions & expectations), for each service attribute. – To assess a company’s service quality along each of the five SERVQUAL dimensions. – To track customers’ expectation & perception (on individual service attributes and/or the SERVQUAL dimensions) over time. 35
  • 36. 36 – To compare a company’s SERVQUAL score against those of competitors. – To identify & examine customer segments those differ significantly in their assessments of a company’s service performance. – To assess internal service quality (i.e., the quality of service rendered by one department or division of a company to others within the same company).
  • 37. Feature - 4 • Several published studies have used SERVQUAL & its adaptations in a variety of context : • Real estate brokers, physicians in private practice, public recreation programmes, dental schools, business school placement centres, tyre stores, motor carrier companies, accounting firms, discount & department stores, gas & electric utility companies, hospitals, banking, pest control, dry cleaning, fast food, higher education, etc. 37
  • 38. Feature - 5 • SERVQUAL has also been productively used in multiple contexts, cultures, & countries for measuring service quality in as well as public sector firms. • Many of the findings are confidential, unpublished, & proprietary. • One general application sample is presented here. 38
  • 39. Sample SERVQUAL Survey : • The SERVQUAL scale was fist devised in 1988, and since then it has undergone several changes. The scale currently uses about 21 attributes distributed across the five service dimensions. Each statement has two ratings – • 1) for the Expectation of the customer, & • (2) for the Perception of the customer. • The ratings from 1 to 7 are ranged from “Strongly Disagree” to “Strongly Agree”. 39
  • 40. 40 No Perception Statements in Reliability Dimension 1 to 7 1 When X company promises to do something by a certain time, it does so. 2 When you have a problem, X company shows a sincere interest in solving it. 3 X company performs the service right the first time. 4 X company provides its service at the time it promises to do so. 5 X company insists on error-free records.
  • 41. 41 No. Perception Statements in Responsiveness Dimension 1 - 7 1 X company keeps customers informed about when services will be performed. 2 Employees in X company give you prompt service. 3 Employees in X company are always willing to help you. 4 Employees in X company are never too busy to respond to your request.
  • 42. 42 No. Perception Statements in Assurance Dimension 1 - 7 1 The behaviour of employees in X company instils confidence in you. 2 You feel safe in your transactions with X company. 3 Employees in X company are consistently courteous with you. 4 Employees in X company have the knowledge to answer your questions.
  • 43. 43 No Perception Statements in Empathy Dimension 1 - 7 1 X company gives you individual attention. 2 X company has employees who give you personal attention. 3 X company has your best interest at heart. 4 Employees of X company understand your specific needs. 5 X company has operating hours that are convenient to all its customers.
  • 44. 44 No Perception Statements in Tangibles Dimension 1 - 7 1 X company has modern looking equipment. 2 X company’s physical facilities are visually appealing 3 X company’s employees appear neat & clean. 4 Materials associated with the service (such as pamphlets or statements) are visually appealing at X company.
  • 45. The GAPS Model • The Gaps arising thus in each statement ratings are considered individually for assessment & designs for reducing them thro’ the Gaps Model. Note : The Gaps or GAPS Model of Service Quality Dimensions is the subject matter of another Presentation by the same Author. Please see that. 45
  • 46. Post-Transaction Surveys or Trailer Calls : • The purpose of SERVQUAL surveys is usually to gauge the overall relationship with the customer. • The purpose of transaction surveys is to capture information about one or all of the key service encounters with the customers. • Some call it a short-cut or abridged SERVQUAL survey. 46
  • 47. Transaction / Short-Cut Servqual Survey • In this method customers are asked a short list of questions immediately after a particular transaction or encounter (hence the name trailer calls) about their satisfaction with the transaction & contact personal with whom they interact. • It takes less time, effort & cost & hence very effective. 47
  • 48. Thank You END of SM Chapter - 6 © Himansu S M / 02-08-2013 48