Service Quality FM : Anis Gunawan,MM anisg@pmbs.ac.id Sincere congratulations to the entire Wolverine team! 17 consecutive quarter of record revenue and earnings per share is no small feat. Your brand portfolio is strong and covers much competitive space. the company has not been content with its success; and is looking to leverage its brands beyond food rather than across apparel and accessories. You have set ambitious goals for the future.

Moments of Truth Each customer contact is called a moment of truth. SAS Each customer contact is called a moment of truth. You have the ability to either satisfy or dissatisfy them when you contact them. A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.

Interactive marketing The services marketing triangle Company External marketing (Making promises) Internal marketing (Enabling promises) Moments of truth. Providers Interactive marketing (Keeping promises) Customers

Dimensions of Service Quality DHL Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day. Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.

Costs of Service Quality (Bank Example) Failure costs Detection costs Prevention costs External failure: Process control Quality planning Loss of future business Peer review Training program Negative word-of-mouth Supervision Quality audits Liability insurance Customer comment card Data acquisition and analysis Legal judgments Inspection Recruitment and selection Interest penalties Supplier evaluation Internal failure: Scrapped forms Rework Recovery: Expedite disruption Labor and materials

Dimensions of Service Quality 3.Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer. 4.Empathy: Ability to be approachable . Example: being a good listener. 5.Tangibles: Physical facilities and facilitating goods. Example: cleanliness.

Relative Importance of Pengukuran Kualitas Services Relative Importance of SERVICE QUALITY Ability to perform the promised service dependability and accurately Knowledge and courtesy of employees and their ability to convey trust and confidence 1.Assurance 2.Reliability 5.Tangibles 3.Empathy Appearance of physical facilities ; equipment, personnel, communication materials Caring, individualized attention the firm provides its customers 4.Responsiveness Willingness to help customers and provide prompt service Importance : 5 = Essential; 4 = very importance ; 3 = neutral ; 2 = not very importance; 1 = Irrelevant Satisfaction : 5= Highly Satisfied ; 4 = Satisfied; 3 = Neutral ; 2 = Dissatisfied ; 1 = highly dissatisfied.

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

Force ranking : Bobot penting Jasa rental Gen.set ………………………… Total 5 4 3 2 1 Tangibility Responsive- ness Empathy Reliability Assurance

Jasa Sewa Gen. set……………………………. Tangibility Empathy Responsiveness Assurance Reliability Importance Servqual Satisfaction Gap Importance : 5 = Essential; 4 = very importance ; 3 = neutral ; 2 = not very importance; 1 = Irrelevant Satisfaction : 5= Highly Satisfied ; 4 = Satisfied; 3 = Neutral ; 2 = Dissatisfied ; 1 = highly dissatisfied. 4.5 4.7 Total

Prio- Sasaran ritas perbaikan Reliability Assurance Responsiveness Action plan Tangibility Empathy Responsiveness Assurance Reliability Servqual Sasaran perbaikan Prio- ritas : Jasa Rental Gen.set……………………………………..

Service Quality Gap Model

Quality Service by Design BH Quality in the Service Package Budget Hotel example Poka-yoke (fail-safing) Height bar at amusement park Quality Function Deployment House of Quality

Classification of Service Failures Server Errors Task: Doing work incorrectly Treatment: Failure to listen to customer Tangible: Failure to wear clean uniform Customer Errors Preparation: Failure to bring necessary materials Encounter: Failure to follow system flow Resolution: Failure to signal service failure

Achieving Service Quality Cost of Quality (Juran) Statistical Process Control (Deming) Unconditional Service Guarantee D7D

Control Chart of Departure Delays SQ expected Lower Control Limit 1998 1999

Unconditional Service Guarantee: Customer View Unconditional (L.L. Bean) Easy to understand and communicate (Bennigan’s) Meaningful (Domino’s Pizza) Easy to invoke (Cititravel) Easy to collect (Manpower)

Unconditional Service Guarantee: Management View Focuses on customers (British Airways) Sets clear standards (FedEx) Guarantees feedback (Manpower) Promotes an understanding of the service delivery system (Bug Killer) Builds customer loyalty by making expectations explicit

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 insure their return

Customer Feedback and Word-of-Mouth The average business only hears from 4% of their customers who are dissatisfied with their products or services. Of the 96% who do not bother to complain, 25% of them have serious problems. The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers. About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly. A dissatisfied customer will tell between 10 and 20 other people about their problem. A customer who has had a problem resolved by a company will tell about 5 people about their situation.

Walk-Through-Audit Service delivery system should conform to customer expectations. Customer impression of service influenced by use of all senses. Service managers lose sensitivity due to familiarity. Need detailed service audit from a customer’s perspective.

Approaches to Service Recovery Case-by-case addresses each customer’s complaint individually but could lead to perception of unfairness. Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating. Early intervention attempts to fix problem before the customer is affected. Substitute service allows rival firm to provide service but could lead to loss of customer.