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Service Quality Concepts
Learning Objectives
• To understand the basis of service quality
• To understand the role of expectations in service quality
• To understand the role of service experience in service quality
• To understand the service sequence
The Quality Problem
Service as Process
Intangibility
Simultaneity
Perishability
Service Providing Outcome
Customer as Participant
(Co-producer)
Heterogeneity
Variability, Complexity
How to Determine Quality in this Situation?
i.e. How do I measure a good quality haircut?
The Basis of Service Quality
The perception of the customer determines the
quality of a service(In short: “did I get what I expected – or better?”)
i.e. Is the haircut what I expected?
The Basis of PerceptionPerception is based on Experience of Service
compared against Expectation of Service
If experience matches expectations, then quality is good
If experience exceeds expectations, then quality is great
If expectations exceed experience, then quality is poor
Experience Expectation
ExperienceExpectation
ExperienceExpectation
Expectations vs Experience
Expectation Experience
Process Process
Outcome Outcome
Experience and Expectation of Service have a Process and an Outcome aspect
Getting Something
Experiencing Something
Can you Rely on the Outcome?
Expectation Experience
Process Process
OutcomeOutcome
Superior Outcome may not compensate for poor Process (or vice versa)
Example: Outcome Most Important“They were rude but at least they fixed my car properly”
“They were polite but my car broke down again”
Example: Process Most Important“The concert was great but
the t-shirts were terrible”
“The concert was bad but they sold great t-shirts”
Example: Both are Important“The food was great but
the staff were rude”
“The staff were polite but the food was terrible”
Part 2: How Expectations Work
What Affects Expectations
Expectation
Sales/ Marketing Information
Corporate Brand & Image
What Other Customers Say
Past Experience with Service
Relationship with Service Provider
Experiences with Other Services
The advent of Social Media has magnified the audience for dissatisfied customers
Process
Outcome
Realistic Explicit
Types of Expectations
ExpectationFuzzy
Implicit
Unrealistic Explicit
Make explicit
Mak
e ex
plici
tM
ake
realistic Process
OutcomeDefine
Expectations
Examples of ExpectationsExplicit Unrealistic: “make
me look like Brad Pitt”
Fuzzy: “make me look like a rockstar”
Explicit Realistic: “Short back and sides”
Implicit: “why didn’t you ask me first?”
Make
expli
cit
Make realistic
Make explicit
Part 3: How Experiences Work
What Affects Experience
Experience
Experience is built up through a series of:
SERVICE ENCOUNTERS
also known as
MOMENTS OF TRUTH
also known as
ACTS
Process
Outcome
Service Relationship
SequenceSequence
Episode
The Basis of a Relationship
Experience
Act
Act
Act
Episode
Act
Act
Act
Episode
Act
Act
Act
Episode
Act
Act
Act
Source: Holmlund, Perceived Quality in Business Relationships
The cumulative effect of these Acts defines the overall Service Experience and therefore the
Service Relationship
Process
Outcome
Part 4: The Service Sequence
Example of a Service Sequence
12
3
4
56
7
8 9Expected Service
Above expectation (great service)
Below expectation (poor service)
Zone of Tolerance
A conceptual map of the customer’s experience
New Zone of Tolerance
The Dangers of Delighting Customers
1
2
3
4
5
6 7 8 9
Expected Service
Above expectation (great service)
Below expectation (poor service)
Old Zone of Tolerance
It becomes very difficult to continually delight customers as they come to expect delight as part
of the service. The zone of tolerance shifts.
Final Word on Service Quality
• What the customer thinks is critical to service quality
• The outcome and the process need to meet expectations
• What you do defines quality as much as what you say
• Getting expectations right is important
• Service Quality is dynamically built up over a period of time through a series of Acts.