1. Defining and Measuring Service Quality
Chapter 12
Defining and Measuring Service Quality

2. Chapter Objectives
Discuss the differences and the similarities between service quality and customer satisfaction.
Identify the gaps that influence consumer perceptions of service quality and discuss factors that influence the size of each of the service quality gaps.
Understand the basic concepts of the SERQUAL measurement scale and how “gap scores” are calculated.
Describe the variety of customer and noncustomer research approaches a service firm can use to construct a service quality information system.
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. Opening Vignette: Pimalai Resort and Spa
Epitomizes the five dimensions of service quality
Tangibles, reliability responsiveness, assurance, and empathy
Has been recognized for:
Environmental protection
Providing an authentic local experience
Giving back to the community
Cultural commitment
Ninety percent of the flora and fauna found on the resort are indigenous to the area
Indigenous wildlife live in harmony within the resort
Flying dragon lizards, monkeys, and monitor lizards
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4. What Is Service Quality?
Service quality: an attitude formed by a long-term, overall evaluation of the firm’s performance
Customer satisfaction
A short-term, transaction-specific measure
The two concepts are intertwined but their relationship is unclear
Does customer satisfaction lead to perceived service quality or
Does service quality lead to customer satisfaction?
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5. Figure 12.1: Conceptual Model of Service Quality
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6. Diagnosing Failure Gaps in Service Quality
Gap 1: The knowledge gap
Influenced by the firm’s:
Research orientation
Upward communication
Levels of management
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7. Diagnosing Failure Gaps in Service Quality (cont’d)
Gap 2: The standards gap
Influenced by:
Perceptions of feasibility
Management’s commitment to the delivery of service quality vs. cost reduction and short-term profits
No culture for service quality
Insufficient methods of measuring quality or converting those measurements into standards
Difficulties in attempts to write specifications for particular employee behaviors
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8. Diagnosing Failure Gaps in Service Quality (cont’d)
Gap 3: The delivery gap
Influenced by:
Willingness to perform
Employee-job fit
Role conflict
Role ambiguity
Dispersion of control
Learned helplessness
Inadequate support
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

9. Diagnosing Failure Gaps in Service Quality (cont’d)
Gap 4: The communications gap
Influenced by the:
Propensity of overpromising
Amount of horizontal communication
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10. Measuring Service Quality: The SERVQUAL Measurement Scale
A diagnostic tool that uncovers a firm’s broad weaknesses and strengths in the area of service quality
Consists of two sections of questions
The first section is comprised of 22 questions that ask respondents to record their expectations of excellent firms in the specific service industry
The second section of questions is comprised of 22 matching questions that assess consumer perceptions of a particular company in that service industry
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11. Measuring Service Quality: The SERVQUAL Measurement Scale (cont’d)
When the mean expectation score is subtracted from the mean perception score, a “gap score” is created
Positive gap scores reflect situations where perceptions exceed expectations and customers are happy
Negative gap scores exist where perceptions that are less than expectations reflect unsatisfactory situations and customer unhappiness
When the gap score equals zero, customer perceptions have met customer expectations, and consumers are satisfied
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12. Measuring Service Quality: The SERVQUAL Measurement Scale (cont’d)
A 44-item scale that measures customer expectations and perceptions regarding five service quality dimensions
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13. Measuring Service Quality: The SERVQUAL Measurement Scale (cont’d)
The Tangibles Dimension
Measuring Service Quality: The SERVQUAL Measurement Scale (cont’d)
The Reliability Dimension
The Responsiveness Dimension
The Assurance Dimension
The Empathy Dimension
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14. SERVQUAL: The Tangibles Dimension
Tangibles expectations
E1: Excellent companies will have modern-looking equipment
E2: The physical facilities at excellent companies will be visually appealing
E3: Employees of excellent companies will be neat in appearance
E4: Materials associated with the service (such as pamphlets or statements) will be visually appealing in an excellent company
Tangibles perceptions
P1: XYZ has modern-looking equipment
P2: XYZ’s physical facilities are visually appealing
P3: XYZ’s employees are neat in appearance
P4: Materials associated with the service (such as pamphlets or statements) are visually at XYZ
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15. SERVQUAL: The Reliability Dimension
Reliability expectations
E5: When excellent companies keep a promise to do something by a certain time, they will do so
E6: When customers have a problem, excellent companies will show a sincere interest in solving it
E7: Excellent companies will perform the service right the first time
E8: Excellent companies will provide their services at the time they promise to do so
E9: Excellent companies will insist on error-free records
Reliability perceptions
P5: When XYZ promises to do something by a certain time, it does so
P6: When you have a problem, XYZ shows a sincere interest in solving it
P7: XYZ performs the service right the first time
P8: XYZ provides its services at the time it promises to do so
P9: XYZ insists on error-free records
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16. SERVQUAL: The Responsiveness Dimension
Responsiveness expectations
E10: Employees of excellent companies will tell customers exactly when services will be performed
E11: Employees of excellent companies will give prompt service to customers
E12: Employees of excellent companies will always be willing to help customers
E13: Employees of excellent companies will never be too busy to respond to customer requests
Responsiveness perceptions
P10: Employees of XYZ tell you exactly when service will be performed
P11: Employees of XYZ give you prompt service
P12: Employees of XYZ are always willing to help you
P13: Employees of XYZ are never too busy to respond to your requests
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17. SERVQUAL: The Assurance Dimension
Assurance expectations
E14: The behavior of employees of excellent companies will instill confidence in customers
E15: Customers of excellent companies will feel safe in their transactions
E16: Employees of excellent companies will be consistently courteous with customers
E17: Employees of excellent companies will have the knowledge to answer customer questions
Assurance perceptions
P14: The behavior of employees of XYZ instills confidence in customers
P15: You feel safe in your transactions with XYZ
P16: Employees of XYZ are consistently courteous with you
P17: Employees of XYZ have the knowledge to answer your questions
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

18. SERVQUAL: The Empathy Dimension
Empathy expectations
E18: Excellent companies will give companies individual attention
E19: Excellent companies will have operating hours convenient for all their customers
E20: Excellent companies will have employees who give customers personal attention
E21: Excellent companies will have the customer’s best interest at heart
E22: The employees of excellent companies will understand the specific needs of their customers
Empathy perceptions
P18: XYZ gives you individual attention
P19: XYZ has operating hours convenient to all its customers
P20: XYZ has employees who give you personal attention
P21: XYZ has your best interests at heart
P22: Employees of XYZ understand your specific needs
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19. Criticisms of SERVQUAL
Length of the questionnaire
Expectation and perception questions seem redundant
What’s the value of including the expectation section?
The validity of the five dimensions
The five proposed dimensions of service quality do not hold up under statistical scrutiny
Measurement issues
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20. Figure 12.2: The Diagnostic Advantage of SERVQUAL Scores
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21. Figure 12.3: Relative Importance of SERVQUAL Dimensions as Reported by Consumers
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22. SERVQUAL: Some Final Thoughts
Contact personnel is important
Process is as important as outcome
Consumer perceptions are unpredictable
Despite its critics, SERVQUAL remains an often-used instrument to assess service quality
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23. Service Quality Information Systems
Solicitation of customer complaints
Primary objectives of soliciting customer complaints:
Identify unhappy customers
Identify weaknesses in the firm’s service delivery system and take the correction actions necessary to minimize future occurrences of the same problem
After-sales surveys
A more proactive approach to assessing customer satisfaction than solicitation of complaints
Attempts to contact every customer and take corrective action if a customer is less than satisfied with his or her purchase decision
The survey is taken while the encounter is fresh on the customer’s mind
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24. Service Quality Information Systems (cont’d)
Customer focus group interviews
Participants are encouraged to express their views and comment on suggestions made by others in the group
Other forms of research are generally necessary to confirm that the groups’ ideas reflect the feelings of the broader segment of consumers
Mystery shopping
Measures individual employee behavior
Aids the firm in coaching, training, evaluating, and formally recognizing its employees
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25. Service Quality Information Systems (cont’d)
Employee surveys
Employee satisfaction with the firm directly corresponds to customer satisfaction
Employee surveys should examine morale, attitudes, and perceived obstacles
Total market service quality surveys
Assesses the firm’s service quality and its competitors’ perceived service quality
Provide a firm with information about needed improvements in the service delivery system and measure the progress the firm has been making in previously identified areas of need
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26. Service Quality Information Systems (cont’d)
Listening
Quality is defined by the customer
Conformance to company specifications is not quality; conformance to customers’ specifications is
Reliability
The core of service quality
Little else matters to a customer when a service is unreliable
Basic service
Deliver the basics first; the frills can come later
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27. Service Quality Information Systems (cont’d)
Service design
Design flaws can reduce the perception of quality
Recovery
Firms that do not respond effectively to customer complaints compound the service failure
Surprising customers
Exceeding customer expectations
Fair play
Customers expect to be treated fairly and will become resentful and mistrustful if treated otherwise
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28. Service Quality Information Systems (cont’d)
Teamwork
Service team building should not be left to chance
Employee research
Is as important to service improvement as customer research
Servant leadership
Leadership must serve the servers—inspiring, coaching, and enabling them to achieve
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.