Service Marketing - Delivering Quality Services - Notes - Business Management , Study notes of Business Administration

Download Service Marketing - Delivering Quality Services - Notes - Business Management and more Study notes Business Administration in PDF only on Docsity! DELIVERING QUALITY SERVICES Introduction: Service quality is very important for customers as well as service providers. To achieve competitive advantage, the service organizations are focusing more on the quality. The concept of quality has drawn massive attention in academic and business circles. There are many definitions of quality. The word quality means different things to different people. To address such issues as the measurement of service quality, the identification of causes for shortfall in service quality and the design and implementation of corrective actions, it is essential for the service providers to have a common understanding of the concept of quality. David Garvin identifies five perspectives on quality: 1. The transcendent view of quality is synonymous with innate excellence; a mark of uncompromising standards and high achievements. This view point is often applied to the performing and visual arts. It argues that people learn to recognize quality only through the experience gained from repeated exposure. From a practical stand point, however, suggesting that managers or customers will know quality when they see it is not very helpful. 2. The product-based approach sees quality as a precise and measurable variable. Differences in quality it argues, reflects differences in the amount of an ingredient or attribute possessed by the product. Because this view is totally objective, it fails to account for difference in the tastes, needs, and preferences of individual customers. 3. The premise that quality lies in the eyes of the beholder is the basis for user- based definitions. These definitions equate quality with maximum satisfaction. This demand-oriented, subjective perspective recognizes that the wants and needs of each customer is different. 4. The manufacturing oriented approach is basically supply based and is concerned with engineering and manufacturing practices. The manufacturing based approach focuses on conformance to internally develop0ed specifications, which are often driven by productivity and cost- containment objectives. 5. Quality is defined in terms of value and price by value-based definitions. Quality comes to be defined as ‗affordable excellence‘ by considering the trade off between performance and price. These views of David Garvin help us to explain the conflicts that arise between managers in different functional areas. In many senses quality is subjective. For many people quality implies excellence or luxury. Quality can also be measured in terms of fitness for purpose. In seeking quality service, customer needs and Generic Dimensions Customers Use to Evaluate Service Quality: me 4 ‘ ‘ Freedom from danger, risk, or doubt Approachability and case of contact Listening to customers and keeping them informed in language they can understand Making the effort to know customers and their needs Ability to perform the promised service and accurately Willingness to help customers and provide prompt service Possession of the skills and knowledge required to perform the service and Expectations (New York: The Pree Press, 1990). . Definition Examples of Customers’ Questions ‘Trustworthiness, believability, honesty of Does the hospital have a good reputation? the service provider Ce ee to Does the repair firm guarantee its work? Is it safe for me to use the bank's ATMs at night? Lo Can 6600s hegmphinnaince policy peoviles complete coverage? How easy is it for me to talk to a supervisor when Thave a problem? Does the airline have a 24-hour toll-free phone number? Is the hotel conveniently located? When I have a complaint, is the manager willing to listen to me? Does my doctor avoid using technical jargon? Does the electrician call when unable to keep a scheduled appointment? Does someone in the hotel recognize me as a regular customer? ‘Does my stockbroker try to determine my specific financial objectives? Is the moving company willing to accommodate my schedule? Are the hotel's facilities attractive? Is my accountant dressed appropriately? Is my bank statement easy to understand? Does my lawyer call me back when promised? Is my telephone bill free of errors? Is my television repaired right the first time? When there's a problem, does the firm resolve it quickly? Is my stockbroker willing to answer my questions? Is the cable TV company willing to give me a ‘specific time when the installer will show up? ‘Can the bank teller process my transaction without fumbling around? Is my travel agent able to obtain the information Laced when | call? Does the dentist appear competent? Does the flight attendant have a pleasant demeanor Does the plumber take off muddy shoes before stepping on my carpet? ¢ Adapted from Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry, Delivering Quality Service: Balancing Customer Valarie and her associates developed a survey research instrument called ―S ERVQUAL‖ to measure customer satisfaction with different aspects of service quality. This instrument is based on the assumption that the customers can measure a firm‘s service quality by comparing their perceptions of its service with their own expectations. ―SERVQUAL‖ can be applied across a broad spectrum of service industries as a generic measurement tool. Reflecting the five important dimensions of service quality such, Tangibles, Reliability, responsiveness, Assurance & Empathy, the scale contains 21 perception items in its basic form and a series of expectation items. On a wide range of specific service characteristics the respondents complete a series of scales that measure their expectations of companies in a particular industry. Respondents are subsequently asked to record their perceptions, using those same characteristics of a specific company whose services they have used. When perceived performance ratings are lower than expectations, this is a sign of poor quality. The reverse indicates good quality. The Tangibles Dimension: In forming the evaluations the consumers often rely on the tangible evidence that surrounds the service because of the absence of a physical product. The tangibles dimension of ‗SERVQUAL‘ compares consumer expectations with the firm‘s performance regarding the firm‘s ability to manage its tangibles. A firm‘s tangibles consist of a variety of objects such carpeting, desks, lighting, wall colours, Reliability perceptions: P5—When firm ABC promises to do something by a certain time, it does so. P6—Firm ABC shows a sincere interest in solving your problem whenever you have a problem. P7—Firm ABC performs the service right the first time. P8—Firm ABC provides its services at the time it promises to do so. P9—Firm ABC insists on error-free records. The Responsiveness dimension: A Service firm‘s commitment to provide its services in a timely manner is reflected in responsiveness. The concern of the responsiveness dimension of ―SERVQUAL‘ is the willingness &/or readiness of personnel to provide a service. Sometimes the customers may face a situation in which the employees are busy in their own talk with their other colleagues while ignoring the needs of the customers. This is an example of unresponsiveness. The preparedness of the firm to provide the service is reflected in responsiveness. The ‗SERVQUAL‘ expectation and perception items that address the responsiveness gap are given below: Responsiveness Expectations: E10—Employees of excellent firms will inform the customers exactly when services will be performed. E11—Employees of excellent firms will give genuine service to customers. E12— Employees of excellent firms will always be willing to help customers. E13—Employees of excellent firms will never be too busy to respond to customer requests. Responsiveness perceptions: P10—Employees of ABC firm will inform their customers when the service will be performed. P11--Employees of ABC firm will give prompt & genuine service to customers. P12— Employees of ABC firm are always willing to help customers. P13—Employees of ABC firm are never too busy to respond to customer requests. The Assurance Dimension: The competence of the firm, the courtesy it extends to its customers and the security of its operatives are addressed by the assurance dimension of ‗SERVQUAL‘. Competence in this context is the firm‘s knowledge & skill in performing its service The Empathy dimension: The ability to experience another‘s feelings as one‘s own is called as empathy. Empathetic firms have not lost touch with what it is like to be a customer of their own firm. Empathetic firms understand the needs of their customers and make the services accessible to their customers. Firms that do not provide their customers individualized attention and that offer operating hours convenient to the firm and not to its customers fail to demonstrate empathetic behaviour. The empathy dimension of ‗SERVQUAL‘ addresses the empathy gap in the following manner. Empathy expectations: E18—Excellent firms will give individual attention to its customers. E19—Excellent firms will have operating hours convenient to al their customers. E20—Excellent firms will have personnel who give customers personal attention. E21—Excellent firms will have the customers‘ best interest at heart. E22—The specific needs of the customers will be understood by the employees of excellent firms. Empathy perceptions: P18—Firm ABC gives individual attention to customers. P19—Firm ABC has operating hours convenient to all its customers. P20— Employees of firm ABC give personal attention to all its customers. P21—Firm ABC has customers‘ best interest at heart. P22—Employees of firm ABC understand their customer‘s specific needs. Limit at ion s of ‗ S ERVQUAL‘ : ‗SERVQUAL‘ is an excellent instrument for measuring service quality is not free from several limitations. The service providers must be well versed with the limitations of the instrument and also the gap theory methodology on which it is based. The major limitations of the ‗SERVQUAL‘ instrument are discussed below: 1. The ‗SERVQUAL‘ measures the expectations of the customers in an ideal firm in a particular service industry. This may or may not be relevant to the capabilities of a particular service firm or the group of service firms available to a customer.