HoffmanPP Ch11 Final

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    2010 Cengage Learning, Inc.

    Chapter 11

    Defining and measuringservice quality

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    Chapter objectives

    Contrast service quality as it compares to customer

    satisfaction.

    Identify the gaps that influence consumer perceptions of

    service quality and discuss factors that influence the size

    of each service quality gap.

    Understand the basic concepts of SERQUAL.

    Describe the components of a service quality informationsystem.

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    Opening vignette: the ACMAmonitoring telephone service

    The Australian

    Communications and

    Media Authority (ACMA)

    checks and reports how

    telephone companies are

    meeting their requirements.

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    Service quality:

    long-run overall evaluation of the firms

    performance

    looks at how firms should perform

    measures a higher standard of service delivery

    expectations drive service quality perceptions.

    Customer satisfaction:

    short-term, transaction specific measure.

    What is service quality?

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    What is service quality?

    Customer satisfaction and service quality are

    intertwined, however the relationship is unclear.

    Does customer satisfaction lead to perceived

    service quality?

    Or does service quality lead to customer

    satisfaction?

    The relationship between customer satisfaction and

    service quality and how it relates to purchasingbehaviour remains largely unexplained.

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    Conceptual model of service quality

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    Service gap:

    The distance between a customers expectations of a

    service and perception of the service actually

    delivered.

    Diagnosing failure gaps

    in service quality

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    Gap 1: The knowledge gap

    research orientation

    upward communication

    levels of management.

    Diagnosing failure gaps

    in service quality

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    Gap 2: The standards gap

    perceptions of feasibility commitment to service

    quality vs. cost reduction

    and short-term profits

    no culture or goal setting

    for services:

    timeliness, accuracy,

    responsiveness.

    Diagnosing failure gaps

    in service quality

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    Gap 3: The delivery gap

    willingness to perform

    employee-job fit

    role conflict

    role ambiguity

    dispersion of control learned helplessness

    inadequate support.

    Diagnosing failure gaps

    in service quality

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    Gap 4: The communication gap

    propensity ofover-promising

    flow of horizontal

    communication within an

    organisation.

    Diagnosing failure gaps

    In service quality

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    Diagnostic tool used to determine gap scores.

    The larger the gap, the lower the service qualityevaluation.

    SERVQUAL is a 44 item scale that measures

    customer expectations and perceptions regarding

    five service quality dimensions.

    Measuring service

    quality: SERVQUAL

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    Measuring servicequality: SERVQUAL

    The tangibles dimension

    The reliability dimension

    The responsiveness dimension

    The assurance dimension

    The empathy dimension

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    A firms ability to manage its tangibles.

    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 inappearance.

    E4: Materials associated with the service (such aspamphlets or statements) will be visually appealing inan excellent company.

    SERVQUAL:The tangible dimension

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    Tangibles perceptions:

    P1: XYZ has modern-looking equipment.

    P2: XYZs physical facilities are visually appealing.

    P3: XYZs employees are neat in appearance.

    P4: Materials associated with the service are visually

    appealing at XYZ.

    SERVQUAL:The tangible dimension

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    Reflects the consistency and dependability of the firmsperformance.

    Reliability expectations:

    E5: When excellent companies 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 resolving it.

    E7: Excellent companies will perform the service right the firsttime.

    E8: Excellent companies will provide their services at the timethey promised to do so.

    E9: Excellent companies will insist on error-free records.

    SERVQUAL:The reliability dimension

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    The willingness or readiness of employees to provide

    the service.

    Responsiveness expectations:

    E10: Employees of excellent companies will tell customersexactly 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.

    SERVQUAL:The responsiveness dimension

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    Reflects the competence of the firm, the courtesy extendedto its customers, and the security of its operations.

    Assurance expectations:

    E14: The behavior of employees of excellent companies willinstil confidence in customers.

    E15: Customers of excellent companies will feel safe in theirtransactions.

    E16: Employees of excellent companies will be consistently

    courteous to customers.E17: Employees of excellent companies will have the

    knowledge to answer customer questions.

    SERVQUAL:The assurance dimension

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    The ability to experience anothers feelings as ones own.

    Empathy expectations:

    E18: Excellent companies will give customers individualattention.

    E19: Excellent companies will have operating hours convenientto all their customers.

    E20: Excellent companies will have employees who givecustomers personal attention.

    E21: Excellent companies will have the customers best interestat heart.

    E22: The employees of excellent companies will understand thespecific needs of their customers.

    SERVQUAL:The empathy dimension

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    Length of the questionnaire:

    expectation and perception questions seemredundant

    whats the value of including the expectation set?

    Validity of the five dimensions:

    questions need to be adjusted to fit the specificindustry under examination

    measurement issues.

    Predictive power:

    ability to predict consumer purchase intentions.

    Criticisms of SERVQUAL

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    The diagnostic advantage

    of SERVQUAL scores

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    Solicitation of customer complaints:

    identify unhappy customers

    identify weaknesses in the firms service delivery

    system.

    After-sales surveys:

    more pro-active approach to assessing customer

    satisfaction than above

    survey taken while the encounter is fresh in the

    customers mind.

    Service quality information systems

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    Customer focus group interviews:

    group interaction provides ideas

    other forms of research are needed to confirm the

    groups ideas.

    Mystery shopping:

    measures individual employee behavior

    aids in coaching, training and evaluating.

    Service quality information systems

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    Employee surveys:

    employee satisfaction is directly related to

    customer satisfaction

    employee surveys should examine morale,attitudes and perceived obstacles.

    Total market service quality surveys:

    assess the firm and its competitors satisfactionratings.

    Service quality information systems

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    Key components that need to be built into every service

    quality system include:

    Listening:

    quality is defined by the customer

    expectations are a rising bar

    Reliability:

    little else matters when the service is unreliable

    Basic service:

    deliver the basics first, the frills can come later.

    Service quality information systems

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    Service design:

    design flaws hinder the basic service

    Recovery:

    firms that do not respond to customer complaintsescalate the service failure

    Surprising customers

    exceeding customers expectations requires the

    element of surprise

    Fair play:

    be careful of the squeaky wheel.

    Service quality information systems

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    Teamwork:

    service team building should not be left to

    chance

    Employee research: employee needs are as important as customer

    needs

    Servant leadership:

    leadership must serve the services, inspiringand enabling them to achieve.

    Service quality information systems