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 service quality gap.
Understand the basic concepts of SERQUAL.
Describe the components of a service quality information system.
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3. Opening Vignette: The Malcolm Baldrige National Quality Award
Over the last 10 years through the joint efforts of the American Society for Quality, the University of Michigan’s Business School, and CFI Group USA LLC.
The American Customer Satisfaction Index (ACSI) covers 10 economic sectors, 41 industries and more than 200 companies and federal or local government agencies.
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4. What is Service Quality?
long-run overall evaluation of the firm’s performance
looks at how firms should perform
measures a higher standard of service delivery
expectations drive service quality perceptions
Customer Satisfaction
short-run, transaction specific measure
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5. Figure 12.1: Conceptual Model of Service Quality
Gap 1
Customer
expectations
Knowledge Gap
Management perceptions
of customer expectations
Gap 2
Standards Gap
Gap 5
Retailer
communications
about services
Standards specifying
service to be
delivered
Service Gap
Gap 3
Delivery Gap
Gap 4
Communication Gap
Actual
service
delivered
Customer
perception of
service
Source: Adapted from A. Parasuraman, Valerie Zeithaml, and Leonard Berry, “A Conceptual Model of Service Quality and Its Implications for Service Quality Research,” Journal of Marketing 49 (Fall 1985), pp

6. Diagnosing Failure Gaps in Service Quality
Gap 1: The Knowledge Gap
research orientation
upward communication
levels of management
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7. Diagnosing Failure Gaps in Service Quality
Gap 2: The Standards Gap
perceptions of feasibility
commitment to service quality vs. cost reduction and short-term profits
No culture or goal setting for services
timeliness, accuracy, responsiveness
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8. Diagnosing Failure Gaps in Service Quality
Gap 3: The Delivery Gap
willingness to perform
employee-job fit
role conflict
role ambiguity
dispersion of control
Learned helplessness
inadequate support
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9. Diagnosing Failure Gaps in Service Quality
Gap 4: The Communication Gap
Propensity of over promising
Amount of horizontal communication
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10. Measuring Service Quality: SERVQUAL
Diagnostic tool used to determine “gap scores”
The larger the gap, the lower the service quality evaluation
44 Item Scale the Compares “Should” to Perceptions
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11. Measuring Service Quality: SERVQUAL
The Tangibles Dimension
Measuring Service Quality: SERVQUAL
The Reliability Dimension
The Responsiveness Dimension
The Assurance Dimension
The Empathy Dimension
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12. SERVQUAL: The Tangible Dimension
Firm’s ability to manage its tangibles
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-appearing
E4: Materials associated with the service (such as pamphlets or statements) will be visually appealing in an excellent company
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13. SERVQUAL: The Tangible Dimension
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 are visually appealing at XYZ
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14. SERVQUAL: The Reliability Dimension
Reflects the consistency and dependability of the firm’s performance
E5: When excellent companies 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 promised to do so.
E9: Excellent companies will insist on error-free records.
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15. SERVQUAL: The Responsiveness Dimension
The willingness or readiness of employees to provide the service
E10: Employees of excellent companies will tell customers exactly what 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.
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16. SERVQUAL: The Assurance Dimension
Reflects the competence of the firm, the courtesy extended to its customers, and the security of its operations
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.
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17. SERVQUAL: The Empathy Dimension
The ability to experience another’s feelings as one’s own E18:Excellent companies will give customers individual attention. E19:Excellent companies will have operating hours convenient to 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.
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18. Criticism of SERVQUAL Length of the Questionnaire
Expectation and perception questions seem redundant
What’s the value of including the expectation set?
Validity of the Five Dimensions
Questions need to be adjusted to fit specific industry under examination
Measurement issues
Predictive Power
Ability to predict consumer purchase intentions
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19. Figure 12.2: The Diagnostic Advantage of SERVQUAL Scores
Dimension
Perception Scores
SERVQUAL Scores
Tangibles
5.3
0.0
Reliability
4.8
-1.7
Responsiveness
5.1
-1.0
Assurance
5.4
-1.5
Empathy
-1.1
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20. Service Quality Information System
Solicitation of customer complaints
Identify unhappy customers
Identify weaknesses in the firm’s service delivery system
After-sale surveys
More active approach than above
Survey taken while the encounter is fresh on the customer’s mind
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21. Service Quality Information System
Customer focus group interviews
Group interaction provides ideas
Other forms of research are needed to confirm the group’s ideas
Mystery shopping
Measures individual employee behavior
Aids in coaching, training, and evaluating
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22. Service Quality Information System
Employee surveys
Employee satisfaction is directly related to customer satisfaction
Employee surveys should examine morale, attitudes, and perceived obstacles
Total market service quality surveys
Assesses the firm’s and its competitors’ satisfaction ratings
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23. Service Quality Information System
Key Components
Listening
quality is defined by the customer
expectations are a rising bar
Reliability
little else matters when the service is unreliable
Basic service
deliver the basics first, the frills can come later
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24. Service Quality Information System
Service design
design flaws hinder the basic service
Recovery
firms that do not respond to customer complaints escalate the service failure
Surprising customers
Fair play
be careful of the “squeaky wheel”
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25. Service Quality Information System
Teamwork
service team building should not be left to chance
Employee research
employee needs are as important as customer needs
Servant Leadership
leadership must serve the servers, inspiring and enabling
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26. Copyright © 2011 Cengage Learning.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2011 Cengage Learning.  
©2011 Cengage Learning. All rights reserved.