1. The Dimensions of Service Quality: The Original European Perspective Revisited By: Gerhard Mels, Christo Boshoff and Deon Nel Presented By: Jason Garnica

2. Objectives To investigate the empirical factor structure of SERVQUAL data from five separate samples of clients who evaluated the services of their banks, insurance brokers, motor vehicle repair service stations, an electrical repair service company and a life assurer. To use the findings of the first step to propose a restricted factor analysis model for SERVQUAL. To assess empirically this model by means of confirmatory factor analysis.

3. Methodology The SERVQUAL instrument was given out to different groups to evaluate the service quality the different fields. Then computer programs were used to analyze the data to factor solution ranges when two to six empirical factors were considered.

4. The Results As the original five-factor structure could not be replicated for any of the samples, alternative solutions were considered. Solutions ranged from two-factors solutions to as many as six. A careful study suggested that a two-factor solution is the most interpretable structure for all five samples. Reliability, Responsiveness, Assurance and Empathy items of SERVQUAL represent “intrinsic service quality” or functional quality. Tangible items of SERVQUAL represent “extrinsic service quality” or technical quality.

6. A Restricted Factor Analysis Model for SERVQUAL The restricted factor analysis model for SERVQUAL suggests that extrinsic service quality is gauged by an instrument which consists of 18 individual measurements.

7. Summary of the Study The results obtained suggest that the empirical factor structure consisting of the five factors (tangibles, reliability, responsiveness, assurance and empathy) could not be replicated for any of the data sets analyzed in the study. The most interpretable factor structure consists of the factors intrinsic and extrinsic service quality.

8. What About Three Dimensions? The developers of the SERVQUAL instrument conceded that there may be some overlap among the items measuring responsiveness, assurance, and empathy. Suggested that a third dimension “re- assurance” may be appropriate. From the study no set of items load consistently on a third dimension thus concluded that a two-factor solution is more interpretable and therefore superior.

9. Conclusions of the Study The SERVQUAL instrument consists of two empirical factors (intrinsic and extrinsic service quality) not of five factors as suggested by Parasuraman et al. Intrinsic service quality shows that almost all of the items refer directly to the actions of employees (responsiveness, assurance and empathy) or indirectly (reliability). Extrinsic service quality refers to the tangible aspects of service delivery. According to Gronroos it’s “what the customer is left with, when the production process and buyer-seller interactions are over.”

10. Managerial Applications The results of this study suggest that the SERVQUAL instrument should be used with the utmost care. Otherwise the quality of decision-making based on a SERVQUAL research project may seriously be compromised.