Chapter 12 Defining and Measuring Service Quality

Chapter 12Defining and Measuring

Service Quality

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Chapter Objectives

©2011 Cengage Learning. All rights reserved.

• 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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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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• 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

What is Service Quality?


Management perceptions of customer expectations

Standards specifying

service to bedelivered

Actualservice

delivered

Customerexpectations

Retailercommunicationsabout services

Customerperception 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.41-50.

Knowledge Gap

Standards Gap

Delivery Gap

Communication Gap

Serv

ice G

ap

Figure 12.1: Conceptual Model of Service Quality

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Gap 1

Gap 4

Gap 5

Gap 3

Gap 2

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Diagnosing Failure Gaps in Service Quality


Gap 1: The Knowledge Gap

research orientation

upward communication

levels of management

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Gap 2: The Standards Gap

perceptions of feasibilitycommitment to service quality vs. cost

reduction and short-term profitsNo culture or goal setting for services

timeliness, accuracy, responsiveness


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Gap 3: The Delivery Gap

willingness to perform employee-job fit role conflictrole ambiguitydispersion of control

Learned helplessnessinadequate support

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Gap 4: The Communication Gap

Propensity of over promising

Amount of horizontal communication


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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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Measuring Service Quality: SERVQUAL

The Tangibles DimensionThe Tangibles Dimension

The Reliability DimensionThe Reliability Dimension

The Responsiveness DimensionThe Responsiveness Dimension

The Assurance DimensionThe Assurance Dimension

The Empathy DimensionThe Empathy Dimension


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SERVQUAL:The Tangible Dimension

Firm’s ability to manage its tangiblesE1: Excellent companies will have modern looking

equipmentE2: The physical facilities at excellent companies will

be visually appealingE3: Employees of excellent companies will be neat-

appearingE4: Materials associated with the service (such as

pamphlets or statements) will be visually appealing in an excellent company


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SERVQUAL:The Tangible Dimension

P1: XYZ has modern-looking equipmentP2: XYZ’s physical facilities are visually

appealingP3: XYZ’s employees are neat in

appearanceP4: Materials associated with the service

are visually appealing at XYZ


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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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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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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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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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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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Figure 12.2: The Diagnostic Advantage of SERVQUAL Scores

Dimension Perception ScoresSERVQUAL Scores

Tangibles 5.3 0.0

Reliability 4.8 -1.7

Responsiveness 5.1 -1.0

Assurance 5.4 -1.5

Empathy 4.8 -1.1


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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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• 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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• 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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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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• 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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• 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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Copyright © 2011 Cengage Learning.


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Chapter 12 Defining and Measuring Service Quality