Chapter 6. Service Quality

如何做顧客滿意度調查 1. 定義 2. 衡量：不滿意，滿意，非常滿意…… Customer Satisfaction Index (CSI), SERVQUAL, CSI, SSI (J. D. Power) 2. 後果：顧客忠誠 3. 前因：服務績效，成本績效，關係績效

Learning Objectives 1. Measuring service quality: five dimensions 2. Diagnose SQ problems: service quality gap model 3. Service design methods: Taguchi, Poka-Yoke, House of quality 4. Achieving SQ: cost of quality, statistical process control, unconditional service guarantees 5. Service recovery

Moments of Truth 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.

1. Dimensions of Service Quality (1) Reliability: Perform promised service dependably and accurately. e.g. receive mail at same time each day. (2) Responsiveness: Willingness to help customers promptly. e.g. avoid keeping customers waiting for no apparent reason.

Dimensions of Service Quality (3) Assurance: Ability to convey trust confidence. E.g. being polite and showing respect. (4) Empathy: Ability to be approachable. e.g. being a good listener. (5) Tangibles: Physical facilities and facilitating goods. E.g. cleanliness. Measurement: SERVQUAL (p.112,113)

Perceived Service Quality Word of mouth Personal needs Past experience Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles 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) Expected service Perceived service

2. Gaps in Service Quality Word -of-mouth communications Personal needs Past experience Customer Expected service GAP 5 Perceived service Service delivery (including pre- and post-contacts) External communications to consumers GAP 3 GAP 1 GAP 4 Translation of perceptions into service quality specifications GAP 2 Provider Management perceptions of consumer expectations

3. Quality Service by Design (1) Quality in the Service Package Budget Hotel example (2) Taguchi Methods Notifying maids of rooms for cleaning (3) Poka-yoke Height bar at amusement park (4) Quality Function Deployment House of Quality (5) Walk-through Audit

(1) Service Package Supporting facility: air-conditioning system is decentralized. Facilitating goods: furnishings are durable. Information: online computer tracks. Explicit service: maids are trained. Implicit service: good interpersonal skills.  日租式捷運小套房

(2) 田口二次式損失函數

(3) Poka-Yoke checklist 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

(4) House of Quality * * * + + + + + + + _ Relationships Strong Medium Weak O O Relative * * Customer Perceptions Service Elements o Village Volvo Importance Informatiion + Equipment Volvo Dealer Training Attitude Capacity Customer Expectations 1 2 3 4 5 Reliability 9 8 5 5 + o Responsiveness 7 3 9 3 2 o + Assurance 6 5 9 6 + o Empathy 4 7 + o Tangibles 2 2 3 + o + o o Comparison with Volvo Dealer o o _ o Weighted score 127 82 63 102 65 Improvement difficulty rank 4 5 1 3 2

4. Achieving Service Quality (1) Cost of Quality (Juran) (2) Statistical Process Control (Deming) (3) Unconditional Service Guarantee

(1) Costs of Service Quality: 越早越低 Failure costs Detection costs Prevention costs External failure: Process control Quality planning Customer complaints Peer review Training program Warranty charges Supervision Quality audits Liability insurance Customer comment card Data acquisition and analysis Legal judgments Inspection Preventive maintenance Loss of repeat service Supplier evaluation Internal failure: Scrap, Rework Recruitment and selection

(3) Control Chart: Departure Delays 100 expected Lower Control Limit expected 90 Lower Control Limit 80 Percentage of flights on time 70 60 1998 1999 n p UCL - + = 1 ( 3 n p LCL - = 1 ( 3

(4) Unconditional Service Guarantee : Customer View Unconditional (L.L. Bean) Easy to understand and communicate (定食八) Meaningful (Domino’s Pizza) Easy to invoke (屈臣氏) Easy to collect (Manpower) 不好吃不要錢？

(4)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 奧客？

5. Service Recovery 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.

5. Customer Feedback and Word-of-Mouth The average business hears from 4% of their customers who are dissatisfied with their products/services. 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 10~20 other people. A customer who has had a problem resolved by a company will tell about 5 people about their situation.

5. 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. Service Benchmarking: FedEx, AT&T, Ritz-Carlton, Merrill Lynch, Xerox

5. Expressing Dissatisfaction Public Action Seek redress directly from the firm Action Take legal action Dissatisfaction occurs Complaint to business, private, or governmental agencies Private Action Stop buying the product or boycott the seller No Action Warn friends about the product and /or seller

5. 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.

The Complaint Letter (p.138) Briefly summarize the complaints and compliments in Dr. Loflin’s letter. Critique the letter of Gail Pearson in reply to Dr. Loflin. What are the strengths and weaknesses of the letter? Prepare an “improved” response letter from Gail Pearson What further action should Gail Pearson take in view of this incident?

Interactive Exercise The class breaks into small groups. Each group identifies the worst service experience and the best service experience that any member has had. Return to class and discuss what has been learned about service quality.

Service Recovery Framework Severity Of Failure Perceived Service Quality Psychological -empathy -apology Tangible -fair fix -value add Psychological -apology -show interest Patronage Loyalty Satisfaction Retention Service Recovery Expectations Follow-up Service Recovery Service Recovery Customer Loyalty Service Guarantee Speed of Recovery Frontline Discretion Tangible -small token Service Failure Occurs Provider Aware of Failure Fair Restitution Pre-recovery Phase Immediate Recovery Phase Follow-up Phase