Dimensions of Service Quality

Reliability: Perform promised service dependably and accurately. Example receive mail at same time each day.

Responsiveness: Willingness to help customers promptly. Example avoid keeping customers waiting for no apparent reason.

Dimensions of Service Quality (cont.)

Assurance: Ability to convey trust and confidence. Example is being polite and showing respect for customer.

Empathy: Ability to be approachable. Example is individualized attention.

Tangibles: Physical facilities and facilitating goods. Example is cleanliness.

Perceived Service Quality

Word of mouth

Personal needs

Past experience

Expectedservice

Perceivedservice

Dimensions of Service Quality

ReliabilityResponsiveness

AssuranceEmpathyTangibles

Perceived Service quality1. Expectations exceeded ES<PS (Quality surprise)2. Expectations met ES~PS (Satisfactory quality)3. Expectations not met ES>PS (Unacceptable quality)

Gaps in Service Quality

Word -of-mouthcommunications

Personal needs Past experience

Expected service

External communications to consumers

Perceived service

Service delivery (includingpre- and post-contacts)

Translation of perceptions intoservice quality specifications

Management perceptions of consumer expectations

GAP 5

GAP 3

GAP 2

GAP 1 GAP 4

Customer

Marketer

Quality Service by Design

Service Concept (Blueprinting)

Taguchi Methods (Robustness)

Poka-Yoke Methods (Shigeo Shingo)

Quality Function Deployment (House of Quality)

Achieving Service Quality

Cost of Quality (Juran)

Statistical Process Control (Deming)

Fishbone Charts (Ishikawa)

Pareto Analysis (80/20 rule)

Costs of Service Quality

Failure costs Detection costs Prevention costs

External failure: Process control Quality planning

Customer complaints Peer review Training program

Warranty charges Supervision Quality audits

Liability insurance Customer comment card Data acquisition and analysis

Legal judgments Inspection Preventive maintenance

Loss of repeat service Supplier evaluation

Recruitment and selection

Internal failure:

Scrap

Rework

Recovery:

Expedite

Labor and materials

Service Process Control

Resources

Identify reasonfor

nonconformance

Establish measure of performance

Monitorconformance torequirements

Take corrective

action

Service concept

Customer input

Customer output

Service process

Control Chart of Departure Delays

60

70

80

90

100

Per

cen

tag

e o

f fl

igh

ts o

n

tim

e

1983target

1983 lower limit

1982 1983

Flight Departure Delay Fishbone Chart

Equipment Personnel

Procedure

Material

Other

Aircraft late to gateLate arrival

Gate occupied

Mechanical failuresLate pushback tug

WeatherAir traffic

Late food serviceLate fuel

Late baggage to aircraft

Gate agents cannot process passengers quickly enoughToo few agents

Agents undertrainedAgents undermotivated

Agents arrive at gate late

Late cabin cleaners

Late or unavailable cockpit crewsLate or unavailable cabin crews

Poor announcement of departuresWeight an balance sheet late

Delayed checkin procedureConfused seat selection

Passengers bypass checkin counterChecking oversize baggage

Issuance of boarding pass

Acceptance of late passengersCutoff too close to departure time

Desire to protect late passengersDesire to help company’s income

Poor gate locations

DelayedFlightDeparture

Pareto Analysis of Flight Departure Delay

All stations, except hub Newark Washington(national)

Percentage Percentage Percentage

of Cumulative of Cumulative of Cumulative

incidences percentage incidences percentage incidences percentage

Late 53.3 53.3 Late 23.1 23.1 Late 33.3 33.3

passengers passengers passengers

Waiting for 15.0 68.3 Waiting for 23.1 46.2 Waiting for 33.3 66.6

pushback pushback pushback

Waiting for 11.3 79.6 Waiting for 23.1 69.3 Late weight 19.0 85.6

fueling fueling and balance

sheet

Late weight 8.7 88.3 Cabin 15.4 84.7 Waiting for 9.5 95.1

and balance cleaning and fueling

sheet supplies

Programs for Service Quality Improvement

Marriott Personnel Programs

Zero Defects (Crosby)

Deming’s 14 Point Program

Unconditional Service Guarantee

Malcolm Baldrige Quality Award

Unconditional Service Guarantee: Customer View

Unconditional (L.L. Bean) Easy to understand and communicate

(Bennigan’s) Meaningful (Domino’s Pizza) Easy to invoke (Cititravel) Easy to collect (Manpower)

Unconditional Service Guarantee: Management View

Focuses on customers (British Airways) Sets clear standards (FedEx) Guarantees feedback (Manpower) Promotes an understanding of the service

delivery system (Bug Killer) Builds customer loyalty

Customer Satisfaction

All customers want to be satisfied.

Customer loyalty is only due to the lack of a better alternative

Giving customers some extra value will delight them by exceeding their expectations and insure their return

Moments of Truth

Each customer contact is called a moment of truth.

You have the ability to either satisfy or dissatisfy them when you contact them.

A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.

Making Customers into Champions easy

Walking wounded Champions

Could complain but don’t; Active in providing

not happy but repurchase British Airways with

information on quality

of its services; loyal

Remain Loyal

Defect

Missing in action Detractors

Defected; Defected;

noncomplaining vocally critical

not easy

don’t complain complain

Propensity to contact British Airways

How

eas

y cu

stom

ers

feel

it is

to

cont

act B

riti

sh A

irw

ays

Expressing Dissatisfaction

Dissatisfactionoccurs

Action

No Action

Public Action

Private Action

Seek redress directly from the firm

Take legal action

Complaint to business, private,or governmental agencies

Stop buying the product or boycott the seller

Warn friends about the productand /or seller

Customer Feedback and Word-of-Mouth

The average business only hears from 4% of their customers who are dissatisfied

with their products or services. Of the 96% who do not bother to complain, 25% of them have serious problems.

The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers.

About 60% of the complainers would stay as customers if their problems was resolved and 95% would stay if the problem was resolved quickly.

A dissatisfied customer will tell between 10 and 20 other people about their problem.

A customer who has had a problem resolved by a company will tell about 5 people about their situation.

The Complaint Letter

Briefly summarize the complaints and compliments in Dr. Loflin’s letter.

Critique the letter of Gail Pearson in reply to Dr. Loflin. What are the strengths and weaknesses of the letter?

Prepare an “improved” response letter from Gail Pearson

What further action should Gail Pearson take in view of this incident?