Quality Management Lecture 2. Quality of Services

HIPI principles Heterogenity (variability in the quality of service because services are provided by people, and people perform inconsistently) Intangibility (there is no specimen ) Perishability (vary in demand can occur e difficulty in supply) Inseparability (good service can’t be separated from bad service)

10 quality dimensions of services Reliability - service is performed on a high level of standards again and again, with high accuracy Responsiveness - the willingness of employees to provide the service and how fast the service is provided Competence - possession of required skills, and knowledge Access - approachability and ease of contact Courtesy -comprises politeness, respect, friendliness Communication - informing the customers in an understandable way and listening to them Credibility - trustworthiness and honesty Security - physical and financial safety Understanding the customer - steps to know customer better Tangibles - all physical products that are involved in service delivery

SERVQUAL Valid for number of service situation Reliable (different readers interpret the same questions similarly) Short Standardized procedure

RATER model Reliability - service provider perform the promised service dependably and accurately. Assurance – Involves knowledge and courtesy of employees and their ability to inspire trust and confidence Tangibles – equipment, the personnel and communication materials. Empathy – Which is caring, individualized or customized attention the organization provides its customers Responsiveness – willingness to be helpful and prompt in providing service (waiting time ) It is an efficient model in helping an organization shape up their efforts in bridging the gap between perceived and expected service.

DimensionQuestion Tangibles1-4 Reliability5-9 Responsiveness10-13 Assurance14-17 Empathy18-22

GAP model customers’ requirements are affected by: –needs –Earlier experience –Word of mouth –Service provider’s communication Expected service  perceived service quality

EXPECTED SERVICE PERCIEVED SERVICE GAP 5 Service delivery External communication s to the customer Translation of perceptions into service quality specifications Management perceptions of the customers expectations GAP 3 GAP 2 GAP 4 GAP 1 Customer Service provider Influenced by many factors GAP MODEL

GAP model GAP 1 (Knowledge Gap) – the difference between guest’s expectation and management perceptions of those expectations, i. e. not knowing what consumer expect GAP 2 (Standards Gap) – difference between managements perceptions of guest’s expectations and service quality specifications, i.e. improper service quality standards GAP 3 (Delivery Gap) – difference between service quality specifications and service actually delivered, i.e. the service performance gap GAP 4 (Communication Gap) – difference between service delivery and the communications to the guests about service delivery, i.e. whether promises match delivery? GAP 5 (Overall Gap) – the difference between guests expectation and perceived service.

Improve service quality Service Blueprinting – flow chart isolates potential fail points Moments of Truth – fail points, when customers expect something to happen  define fail-safes and procedures (welcome customer when enter the restaurant) Poka-Yoke – fail-safes, ensure that certain errors never occur –Warning methods (beeper - ATM) –Physical contact methods (placement of equipments, goods) –Visual contact methods (lamps – „On air”, above cash register)

Blueprinting of shoe-shine process Brush shoesApply polishbuff Collect payment 30 sec 45 sec15 sec Fail point Clean shoes 45 sec Materials (polish, cloth) Select and purchase supplies Seen by customer Not seen by customer Standard time: 2 min Total accaptable time: 5 min 1. Identify process step 2. Identify fail point 3. Establish time frame 4. Analyze profit

Services Transaction analysis Identifying those transactions, when customers encounter businessperson, and evaluating them from the customers’ perspective –Service process must be selected –Mystery shoppers walk through the process –Rate each transaction in the process with either „+”, „0”, or „-”

Thank you for your attention!