Service Quality The S E R V Q U A L Model Reliability Assurance Tangibles Empathy Responsive-ness

Introduction Service quality is an approach to manage business processes in order to ensure full satisfaction of the customers & quality in service provided. SERVQUAL is a service quality framework, developed in the eighties by Zeithaml, Parasuraman & Berry, aiming at measuring the scale of Quality in the service sectors. SERVQUAL was originally measured on 10 aspects of service quality: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding the customer, and tangibles, to measure the gap between customer expectations and experience.

SERVQUAL as a Measuring Tool In 1988 the 10 components were collapsed into five dimensions (RATER). Reliability, tangibles and responsiveness remained distinct, but the remaining seven components collapsed into two aggregate dimensions, assurance and empathy. Parasuraman et al. developed a 22-scale instrument with which to measure customers’ expectations and perceptions (E and P) of the five RATER dimensions. Four or five numbered items are used to measure each dimension. The instrument is administered twice in different forms, first to measure expectations and second to measure perceptions. Dimensions Scale Reliability 4 Assurance 5 Tangibles Empathy Responsiveness

The Key Service Dimensions The five SERVQUAL dimensions are: R-A-T-E-R: RESPONSIVENESS - Willingness to help customers and provide prompt service ASSURANCE - Knowledge and courtesy of employees and their ability to convey trust and confidence TANGIBLES - Appearance of physical facilities, equipment, personnel, and communication materials EMPATHY - Caring, individualized attention the firm provides its customers RELIABILITY - Ability to perform the promised service dependably and accurately

Conceptual Model of Service Quality GAP 1: Not knowing what customers expect GAP 2: wrong service quality standards GAP 3: The service performance gap GAP 4: promises do not match actual delivery GAP 5: The difference between customer perception and expectation

The SERVQUAL Gaps Gap 1 Commonly known as the management perception gap Gap 1 results from a difference between what customers expect and what management perceives these expectations to be. It indicates a problem with the understanding of the market. This can occur, as a result of insufficient research or communication failures.

Gap 2 The SERVQUAL Gaps Commonly known as quality specification gap. Gap 2 results from a difference between management perceptions of what customers expect and the specifications that management draws up when detailing the service quality delivery actions that are required. Service design and performance standards are pre-requisites for bridging this gap.

Gap 3 The SERVQUAL Gaps Commonly known as the Service delivery gap. Gap 3 results from a mismatch between the service delivery specifications required by management and the actual service that is delivered by front line staff. Managers need to audit the customer experience that their organization currently delivers in order to make sure it lives up to the expected level. E.g. : Usually, all restaurants need to attend to every request and orders of the customers. But very often when customers place orders, they either do not receive the orders at all or the waiter has confused it with that of another customer.

Gap 4 The SERVQUAL Gaps Commonly known as market communication gap. This is the gap between the delivery of the customer experience and what is communicated to customers, i.e. the discrepancy between actual service and the promised one E.g. A company commercialising slimming products boasts that customers may lose up to 4-5 kgs/week. But they do not specify that a strict diet and regular exercise must accompany the treatment for it to have the desired effect.

The SERVQUAL Gaps Gap 5 Commonly known as the perceived service quality gap. Gap 5 may be identified as the overall difference between the expected service and the perceived service experienced. Gap 5 results from the combination of Gaps 1 to 4 Customers' expectations have been shaped by word of mouth, their personal needs and their own past service experiences. Unless Gap 5 is kept under check, it may result in lost customers, bad reputation, negative corporate image.

Causes for the Gaps GAP 1 - not knowing what customers expect Causes: Lack of a marketing orientation to quality Poorly interpreted information about customer’s expectations Research not focused on demand quality Too many layers between the front line personnel & top level management

Causes for the Gaps GAP 2 - The wrong service quality standards inadequate commitment to service quality lack of perception of feasibility the absence of goal setting Insufficient planning of procedures

Causes for the Gaps GAP 3 - The service performance gap Causes: Poor employee or technology fit - the wrong person or wrong system for the job Deficiencies in human resource policies such as ineffective recruitment, role ambiguity, role conflict Failure to match demand and supply Too much or too little control Lack of teamwork within the organisation

Causes for the Gaps GAP 4 - When promises do not match actual delivery Over-promising in external communication campaign Failure to manage customer expectations Failure to perform according to specifications given to customers

Causes for the Gaps GAP 5 - The difference between customer perception of service and the expectation they hadUsually the cause is the occurrence of the 4 other Gaps, which results in a difference between customer perception and the expectation they had. Ultimately the groom’s experience was way too far from what he had expected, and thus results in dissatisfaction. Other causes can be: cultural background, family lifestyle, personality, demographics, advertising, experience with similar service information available online

Solution for the Gaps No Solutions as such, but rather, measures that can be taken to minimize the gaps Gap Definitions Measures 1 Customers’ expectations versus management perceptions Use of good Customer Relationship Management Techniques to profile & know customer’s expectations, tastes and needs E.g: XYZ Events Ltd should conduct sample surveys to know what customers expect nowadays 2 Management perceptions versus service specifications Managers need to make sure the organization is defining the level of service they believe is needed. E.g.: XYZ Events Ltd could have offered pre-set wedding packages at different prices with different services set. 3 Service specifications versus service delivery Managers need to audit the customer experience that their organization currently delivers in order to make sure it lives up to the expected level. E,g.: XYZ Events Ltd needs to ask customers to give their post experience feedbacks 4 Service delivery versus external communication: Use of good Communication skills and avoid ambiguous or fraudulent terms to confuse or mislead the customer. E.g.: XYZ Events Ltd should clearly inform the customer about something that will not be possible to implement 5 The discrepancy between customer expectations and their perceptions of the service delivered Application of all the above measures to make sure the service delivered meets the expectations of the customer

Advantages of SERVQUAL Disadvantages of SERVQUAL Enables assessing service quality from the customer’s perspective We can track customer expectations and perceptions over time, together with the discrepancies between them Servqual enables comparison to competitors on common aspects We can assess the expectations and perceptions of internal customers – e.g. other departments or services we deal with. The uniform applicability of the method for all service sectors is difficult. The use of expectations in measuring service quality has currently come under a lot of criticism. Does not measure service outcome perceptions.

Methodology of SERVQUAL The method essentially involves conducting a sample survey of customers so that their perceived service needs are understood. For measuring their perceptions of service quality for the organization in question, customers are asked to answer numerous questions within each dimension that determines: The relative importance of each attribute. A measurement of performance expectations that would relate to an “excellent” company. This provides an assessment of the gap between desired and actual performance. This allows an organization to focus its resources where necessary and to maximize service quality whilst costs are controlled

Uses of SERVQUAL To assess a company's service quality along each of the 5 SERVQAL dimensions. To track customer's expectations and perceptions over time To compare a company's SERVQUAL scores against competitors. E.g.: XYZ Events Ltd wants to compare its score against that of 1570 Events Ltd to see who is the best. To assess internal service quality (interdepartmental comparison)

Applications of SERVQUAL Service quality has become an important research topic because of its apparent relationship to costs, profitability, customer satisfaction, and customer retention Some of the published studies include : Hotels ,travel and tourism Car servicing, business schools Accounting firms, architectural services Airline catering Mobile Telecommunications in Macedonia

Conclusions The simplified RATER model however is a simple and useful model for qualitatively exploring and assessing customers' service experiences It is an efficient model in helping an organization shape up their efforts in bridging the gap between perceived and expected service SERVQUAL is used to track customer's expectations and perceptions over time to compare the company's SERVQUAL scores against competitors.