1. Delivering Service Quality and Guaranteeing Services

2. Copyright © Houghton Mifflin Company. All rights reserved.10 - 2 Customer Delight significantlyOccurs when customer expectations are significantly exceeded.

4. Copyright © Houghton Mifflin Company. All rights reserved.10 - 4 What Is Service Quality? Provider’s perspective degree to which the service’s features conform to the organization’s specifications and requirements. Customer’s perspective how well the service meets or exceeds expectations.

6. Copyright © Houghton Mifflin Company. All rights reserved.10 - 6 How Customers Evaluate Service Quality Services quality is more difficult to evaluate than goods quality. Service quality perceptions result from a comparison of consumer expectations with actual service performance. Quality evaluations are not made solely on the outcome of a service also involve evaluations of the process of service delivery.

7. Copyright © Houghton Mifflin Company. All rights reserved.10 - 7 SERVQUAL A scale designed to measure customer perceptions of service quality along five key dimensions: Tangibles Reliability Responsiveness Assurance Empathy of the service provider.

10. Copyright © Houghton Mifflin Company. All rights reserved.10 - 10 Service Quality – Diagnostics and Management Measure gaps between customers / frontline / managers. Delivering as promised? Blueprint for fail points. Manage customer expectations. Guarantee your promises. Frontline empowerment? Customer service and service recovery. Expose managers to the trenches.

11. Copyright © Houghton Mifflin Company. All rights reserved.10 - 11 Changing Service Expectations Pre-existing Expectations Service Encounter New Expectations Knowledge Involvement Direct Experience Secondary Experience

12. Copyright © Houghton Mifflin Company. All rights reserved.10 - 12 Zone of Tolerance Desired Service Expectations Adequate Service Expectations The Zone of Tolerance Perceived Performance Delight Satisfaction Dissatisfaction

13. Copyright © Houghton Mifflin Company. All rights reserved.10 - 13 Service Guarantee A promise to compensate customers if the service delivery fails to meet established standards.

14. Copyright © Houghton Mifflin Company. All rights reserved.10 - 14 Why a Service Guarantee Works Forces the company to focus on customers. Sets standards for employees and customers. Generates feedback. Builds loyalty and discourages switching behavior. - Hart (1988)

15. Copyright © Houghton Mifflin Company. All rights reserved.10 - 15 How to Design a Service Guarantee Three major decisions: Degree of explicitness Scope of what is covered Conditions of coverage

16. Copyright © Houghton Mifflin Company. All rights reserved.10 - 16 What Makes an Extraordinary Service Guarantee? Unconditional Easy to understand and communicate Meaningful Simple to invoke Easy and quick to collect on - Hart (1988)