The document discusses key concepts around service quality and customer satisfaction. It defines service as an intangible offering that does not result in ownership. Service quality is measured by comparing customer expectations to actual performance. There are various definitions of quality, including those based on products, users, manufacturing, and value. Service quality dimensions include reliability, responsiveness, assurance, empathy, and tangibles. Customer satisfaction results from meeting or exceeding expectations through good or excellent service, while bad service provides treatment below expectations. The main reason customers leave is due to poor service according to surveys.

1. Presented by
IRSHAD P
S3 , SMBS11-Dec-15 Service quality & Customer satisfaction

2. SERVICE
Intangible kind of product or offering.
According to Philip Kotler :
“Service as an act or performance that one party can offer to
another that is essentially intangible and does not result in the
ownership of anything. Its production may or may not be tied to a
physical product”.
Pure services – Software,mobile,teaching,banking.etc..
Complementary services – Customer services
(Demonstration,installation,Guarantee & warranty,repair,etc..).
11-Dec-15 Service quality & Customer satisfaction

3. SERVICE QUALITY
Service quality is a comparison of expectations with performance.
Standards for services
90% of phone calls must be answered with in 30 seconds of the
bell ringing.
In a hotel with restaurant ,the number of food-related complaints
can’t exceed 3% of the total complaints.
Staff-related complaints in a hotel or an agency can’t exceed 1%
of all the complaints.
In the case of an airline at least 80% of flights must be either on
time or depart with in 15 minutes of the scheduled time.
11-Dec-15 Service quality & Customer satisfaction

4. TYPES OF DEFINITIONS OF QUALITY
Product-based: Measurable quantities are used to define
quality.
User-based: Quality is in the eyes of the holder.
Manufacturing-based: Conformance to requirements.
Value-based: A balance between conformance or performance
quality and an acceptable price to the customer.
11-Dec-15 Service quality & Customer satisfaction

5. HARD AND SOFT MEASURES FOR SERVICE
QUALITY
Hard measures - refer to standards and measures that can be
counted, timed or measured through audits.
Typically operational processes or outcomes.
e.g. how many trains arrived late?
Soft measures - refer to standards and measures that cannot
easily be observed and must be collected by talking to customers,
employees or others
e.g. Surveys, and customer advisory panels
11-Dec-15 Service quality & Customer satisfaction

6. 11-Dec-15 Service quality & Customer satisfaction
DIAMENSIONS OF SERVICE QUALITY
Reliability: Perform promised service dependably and accurately
Example: Federal express – timely delivery (99.5%)
Responsiveness: Willingness to help customers promptly
Example: avoid keeping customers waiting for no apparent reason
Assurance: Ability to convey trust and confidence
Example: Getting feedback from old customers to convey trust
Empathy: Ability to be approachable customer
Example: Arrange a seat to a passenger(who carry a child)
Tangibles: Physical facilities and facilitating goods
Example: cleanliness,certificate of doctor…

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CUSTOMER SATISFACTION
All customers want to be satisfied.
Customer loyalty is only due to the lack of a better alternative
Giving customers some extra value will delight them by
exceeding their expectations and in sure their return
Example : Discount, offer,…
Consumer delight leads to brand loyalty

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Customer satisfaction by nature of services…
Good service
Bad service
Excellent service

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Good Customer Service
Good service is when the customer gets
treatment that meets his/her expectations.
Customer
Expectation
What Customer
receives

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Bad Customer Service
Bad Service is when customer gets treatment
which is less than his/her expectations
Customer
Expectation
What Customer
receives

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Excellent Customer Service
When the customer gets a little more than what
he/she expected, Good Service becomes Excellent
Service
Customer
Expectation
What Customer
receives
+

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Expressing Dissatisfaction
Dissatisfaction
occurs
Action
No Action
Public Action
Private Action
Seek redress directly from
the firm
Take legal action
Complaint to business, private,
or governmental agencies
Stop buying the product or
boycott the seller
Warn friends about the product
and /or seller

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Poor service 69%
Others, 9%
Better prices
elsewhere, 9%
Product
dissatisfaction,
13%
WHY CUSTOMERS LEAVE ?

15. 11-Dec-15 Service quality & Customer satisfaction