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SERVICE QUALITY Presented by: Faisal Hayat and Muhammad Zia R.#: 01, 04 BS.c (Hons.) Food Science & Technology Institute Of Food Science & Nutrition University Of Sargodha, Sargodha 2

CONTENTS  Definition of quality  Definition of service  Definition of service quality  Definition of service quality management  Customer’s requirements  Factors influencing customers satisfaction  Types of customers  Ten service quality principle  Objective of service quality 3

CONTENTS…continue  Dimensions of service quality  Universal processes of service quality  Ultimate purpose of service quality  Service quality assessment  Difference between(bad service, good service and excellent service)  Service quality gap  Service quality gap model  Classification of service failure  Service quality recovery  Service quality inspection 4

 Definition  The processes by which the products and services are made or offered throughout an organization, in order to improve the products and services which are sold to customers  Voice of customers QUALITY? 5

SERVICE?  Intangible commodity Service Ability to provide a level of care to customers which meets or exceeds their expectation  It involves their  Needs and  Demands 6

SERVICE QUALITY? Service quality Customer’s judgment of overall excellence of the service provided in relation to the quality that was expected  Perception  It is the way a person interprets reality or quality 7

SERVICE QUALITY MANAGEMENT  Definition “Continuously meeting agreed customer requirements at the lowest cost, by releasing the potential of all employees.” 8

CUSTOMER REQUIREMENTS  Speed of delivery  Conformance to specifications  Reliability of service  Responsiveness to queries  Low Cost  Consistency of product and service 9

Factors Influencing Customer Satisfaction  Product quality  Service quality  Price  Specific product features  Personal factors  Situational factors 10

TYPES OF CUSTOMERS  Two types  1. External customers  Outside of organization  2. Internal customers  Within the organization 11

SERVICE QUALITY PRINCIPLES 1. Customer focus 2. Leadership 3. Involement of people 4. Process approach 5. System approach to management 6. Approach to decision making 7. Mutual beneficial suppliar relationship 8. Continual improvement 12

DIMENSIONS OF SERVICE QUALITY Service Quality Service Quality Reliability Responsiveness Assurance Empathy Tangibles 13

 Reliability  Dependability  Accuracy Provide services at promised time dependably and accurately Perform services right the first time Example: receive mail at same time each day DIMENSIONS OF SERVICE QUALITY Get it right the first time! 14

DIMENSIONS OF SERVICE QUALITY  Responsiveness  Promptness  Helpfulness Willingness to help customers promptly Readiness to respond to customer’s request Example: avoid keeping customer’s waiting. and on time! 15

 Assurance  Credibility  Security Ability to convey trust and confidence Give a feeling that customers best interest is in your heart Example: being polite and showing respect for customer DIMENSIONS OF SERVICE QUALITY I feel safe 16

DIMENSIONS OF SERVICE QUALITY  Empathy  Good communication  Customer understanding  Personalised attention Ability to be approachable, caring, understanding and relating with customer needs Example: being a good listener They listen to me 17

DIMENSIONS OF SERVICE QUALITY  Tangibles  Physical evidence Appearance of physical facilities, Equipment and communication material. Example: cleanliness of employee People look smart 18

Relative Importance of Service Dimensions When Respondents Allocate 100 Points 19 TANGIBLES 11% EMPATHY 16% RELIABILITY 32% ASSURANCE 19% RESPONSIVENESS 22%

UNIVERSAL PROCESSES OF SERVICE QUALITY  Service quality planning  Setting goals for customer delivery  Service quality control  Controlling service flows by measuring for success  Service quality management  Involving the employees  Service quality improvement  Consistent improvement of service/product 20

PURPOSE OF SERVICE QUALITY Improved Service Performance Increased Market Share Improved Customer Satisfaction Increased Profitability Improved Customer Retention 21

 To meet assessed needs  To concentrate on service users  To work for the complete dignity & wellbeing of service users.  To ensure that we are fit to provide service.  To provide the highest quality comprehensive service to all customers  To work with customers to enhance the quality of their daily life OBJECTIVES OF SERVICE QUALITY 22

Word of mouth Personal needs Past experience Expected service Perceived service Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles Service Quality Assessment 1. Expectations not met ES>PS (Unacceptable quality) 2. Expectations met ES~PS (Satisfactory quality) 3. Expectations exceeded ES<PS (Quality surprise/excellent) SERVICE QUALITY ASSESSMENT 23

DIFFERENCE BETWEEN ……… Unacceptable quality Surprise Quality Satisfactory quality Bad service Excellent service Good service 24

Bad Service Bad Service is when customer gets treatment which is less than his/her expectations ES>PS (Unacceptable service quality) Customer Expectation What Customer receives 25

Good Service Good service is when the customer gets treatment that meets his/her expectations ES~PS (Satisfactory service quality) Customer Expectation What Customer receives 26

Excellent Service When the customer gets a little more than what he/she expected, Good Service becomes Excellent Service ES<PS (Quality surprise) Customer Expectation What Customer receives + 27

DETERMINANTS OF PERCEIVED SERVICE QUALITY Dimensions of service quality 1. Access 2. Communication 3. Competence 4. Courtesy 5. Credibility 6. Reliability 7. Responsiveness 8. Security 9. Tangibles 10.Understanding/knowing the customer Expected Service Perceived Service Quality Gap Perceived Service Quality Word of Mouth Personal Needs Past Experience External Communication to Customers 28

SERVICE QUALITY GAP MODEL GAP model is a tool to diagnose problems in service design and delivery. Service gap is the most critical 29

GAP1: MARKET RESEARCH GAP Customer’s expectations Company’s perceptions of customer expectations  Inadequate marketing research orientation  Lack of upward communication  Insufficient relationship focus  Inadequate service recovery Reasons for provider gap I 30

SOLUTION OF GAP 1  Learn what customers expect  Increase direct interactions between managers and customers  Improve upward communications  Act on information and insights  Improve market research  Reduce the number of levels of management that distance the customer listen to customers 31

GAP 2: DESIGN GAP Translation of perceptions into service quality specifications Management perceptions of customer expectations  Poor service design  Absence of customer-defined service standards  Inappropriate physical evidence and services  Inadequate standardization of tasks Reasons for provider gap 2 32

SOLUTION OF GAP 2  Establish the right service quality standards  Top management commitment to providing service quality  Establish challenging and realistic service quality goals  Train managers to be service quality leaders  Develop new ways to deliver service quality  Measure performance of service standards and provide regular feedback  Setting goals and standardizing service delivery tasks Service quality award 33

GAP 3: CONFORMANCE GAP  Poor human resource policies  Lack of teamwork  Poor employee  Poor technology  Failure to match supply and demand  Problems with service Service delivery Customer-driven service designs and standards Reasons for provider gap 3 34

SOLUTION OF GAP 3 Actual delivery of service cannot meet the specifications set by management  Ensure that service performance meets standards  Attract the best employees  Select the right employees  Develop and support employees  Train employees  Provide appropriate technology & equipment  Encourage and build teamwork  Internal marketing Can I take your order? 35

SOLUTION OF GAP 3…continue  Retain good employees  Measure and reward service quality achievements  Develop equitable and simple reward systems You are a Star Service Provider 36

GAP 4: COMMUNICATION GAP External communications to consumers Service delivery  Lack of integration of marketing communications  Inadequate management of customer expectations  Overpromising  Inadequate communications Reasons for provider gap 4 37

SOLUTION OF GAP 4  Ensure that delivery matches promises  Lack of information provided by contact personnel  Gain communications between sales, operations and customers  Internal marketing programs  In advertising, focus on service characteristics that are important to customers  Reality’ advertising  Real employees, real customers, real situations Why do we always have to wait? 38

GAP 5: CUSTOMER EXPECTATIONS AND PERCEPTIONS GAP  Not knowing what customers expect  Not selecting the right service standards and designs  Not delivering to service standards  Not matching performance to promised Customer expectations Customer perceptions Reasons for provider gap 5 39

SOLUTION OF GAP 5  Customer satisfaction is difficult but not impossible  Surveys of customers  Resolve customer complaints  Employee surveys  Focus on a special groups of customers  Competitive market surveys – benchmark  Try to measure the gap between expected service and perceived service  Customer satisfaction depends on minimizing the four gaps that are associated with service delivery 40

CLASSIFICATION OF SERVICE FAILURES Server Errors Doing work incorrectly Doing work not required Doing work in the wrong order Doing work too slowly Failure to listen to customer Failure to react appropriately Failure to clean facilities Failure to wear clean uniform Customer Errors Failure to understand role Failure to engage in correct service Failure to remember steps in process Failure to follow system flow Failure to follow instructions Failure to learn from experience Failure to adjust expectations 41

SERVICE QUALITY RECOVERY  Disasters can be turned into loyal customers by proper and rapid service recovery  Frontline workers, therefore, need to be properly trained  Measure the costs  Break the silence and listen closely for complaints  Act fast  Empower the front line  Train employees 42

SERVICE QUALITY INSPECTION  Opinion surveys - about quality of service  100 percent inspection - every unit is checked  First article inspection - usually after the process is set up  Acceptance sampling - based on statistical sampling table, a random or stratified sample from a larger lot  If the sample is within the acceptable quality level, the lot passes inspection 43

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