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Service Quality
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Perspectives on Service Quality
Transcendental:
Product-Based:
User-Based:
ManufacturingBased:
Value-Based:
Quality = excellence. Recognized only through
experience
Quality is precise and measurable
Quality lies in the eyes of the beholder
Quality is conformance to the firms developedspecifications
Quality is a trade-off between price and value
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Dimensions of Service Quality
Tangibles
Reliability
Responsiveness
Assurance competence,
courtesy
credibility
security
Empathy
access
communication
understanding of customer
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Capturing the Customers Perspective
of Service Quality
SERVQUAL A research
instrument developed to
measure customer satisfaction
ith different aspects of
service quality by ValarieZeithaml
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Seven Service Quality Gaps
Customer experiencerelative to expectations
Advertising and
sales promises
Customer interpretation
of communications
1. Kno ledge Gap
2. Standards Gap
3. Delivery Gap
5. Perceptions Gap
7. Service Gap
Customer needs
and expectations
Management definitionofthese needs
Translation into
design/delivery specs
Execution ofdesign/delivery specs
Customer perceptions
of product execution
6. Interpretation Gap
4. I.C.Gap
MANAGEMENT
CUSTOMER
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Prescriptions for Closing Service
Quality Gaps Kno ledge: Learn hat customers expect--conduct
research, dialogue, feedback
Standards: Specify SQ standards that reflect expectations
Delivery: Ensure service performance matches specs--consider roles of employees, equipment, customers
Internal communications: Ensure performance levelsmatch marketing promises
P
erceptions: Educate customers to see reality of servicedelivery
Interpretation: Pretest communications to make suremessage is clear and unambiguous.
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Hard and Soft Measures of Service
Quality Hard measures refer to standards and measures
that can be counted, timed or measured throughaudits typically operational processes or outcomes
e.g. ho many trains arrived late?
Soft measures refer to standards and measures thatcannot easily be observed and must be collected bytalking to customers, employees or others
e.g. SERVQUAL, surveys, and customer advisory panels. Control charts are useful for displaying
performance over time against specific qualitystandards.
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Hard Measures of Service Quality
Control charts to
monitor a singlevariable
Service quality indexes
Root cause analysis
(fishbone charts)
Pareto analysis
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Tools to Address Service Quality
Problems
Fishbone diagrams: A cause-and-effect diagram to
identify potential causes of problems.
Pareto charts: Separating the trivial from the
important. Often, a majority of problems is caused
by a minority of causes i.e. the 80/20 rule.
Blueprinting: A visualization of service delivery. It
allo s one to identify fail points in both the
frontstage and backstage.
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Cause and Effect Chart for
Airline Departure Delays (Fig. 14.3)
Aircraft late to
gate
Late food
service
Late fuel
Late cabin
cleanersPoor announcement of
departures
Weight and balance sheet
late
Delayed
Departures
Delayed check-in
procedure
Acceptance of latepassengers
Facilities,
EquipmentFront-StagePersonnel
Procedures
Materials,Supplies
Customers
Gate agents cannot
process fast enough
Late/unavailable
airline cre
Arrive late
Oversized bags
Weather
Air traffic
Frontstage
Personnel
Procedure
Materials,
Supplies
Backstage
Personnel
Information
Customers
OtherCauses
Mechanical
Failures
Late pushback
Late baggage
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Analysis ofCauses of
Flight Departure Delays (Fig. 14.4)
Late passengers
Waiting for pushback
Waiting for fueling
Late eight and balance sheet
Late cabin cleaning / supplies
Other
Ne ark
All stations, excluding
Chicago-Mid ay Hub
Washington Natl.
23.1%23.1%
23.1%15.3%
15.4%
53.3%
15%
11.3%
8.7%11.7%
33.3%
33.3%19%
9.5%
4.9
%
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Return on Quality (ROQ)
ROQ approach is based on four assumptions:
Quality is an investment
Quality efforts must be financially accountable Its possible to spend too much on quality
Not all quality expenditures are equally valid
Implication: Quality improvement efforts may benefit
from being related to productivity improvement
programs
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Overcoming Customers Reluctance to
Accept Changes in Environment and
Behavior Develop customer trust
Understand customers habits and expectations
Pretest ne procedures and equipment
Publicize the benefits
Teach customers to use innovations and
promote trial
Monitor performance, continue to seek
improvements
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Six Sigma Methodology to Improve
and RedesignC
ustomer ServiceProcesses
Process Improvement Process Design/Redesign
Define
Measure
Analyze
Improve
Control
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Process Improvement Process Design/Redesign
Define Identify the problemDefine requirementsSet goals
Identify specific or broadproblems
Define goal/change visionClarify scope & customer
requirements
Measure Validate problem/processRefine problem/goalMeasure key steps/inputs
Measure performance torequirements
Gather process efficiency
dataAnalyze Develop causal hypothesis
Identify root causesValidate hypothesis
Identify best practicesAssess process designRefine requirements
Improve Develop ideas to measure root causesTest solutions
Measure results
Design ne processImplement ne process,
structures and systemsControl Establish measures to maintain
performanceCorrect problems if needed
Establish measures &revie s to maintainperformance
Correct problems if needed