Chapter 3: The Management Of Service Quality Flashcards
Define the concept of quality
Quality is meeting or exceeding customer expectations. Essentially satisfying the needs of customers
What are the perspectives on quality
- product features
A design using only the best finishes such as exotic leather top of the line security features and excellent service - production perspective
This refers to the extent to which the product meets the design specifications that fulfill all the expectations that are customers - value perspective
That is offering conditions of product use or service that meet or exceed customers expectations yet are still affordable
Explain the relevance of quality
Quality is relevant because it plays an important role in the buying decision of customers and establishing brand loyalty. Failing to satisfy customers demand for quality can lead to loss of sales
What are the implications of producing poor quality products
- loss of sales
- an increase in costs as a result of customer complaints, product liability, redoing of defective work and the scrapping of products
- a threat to society, affects the general quality of human life
What approaches can be used to assess quality
- The transcendent approach
- it is not easy to define and is primarily feelings about something for example this makeup makes me look beautiful - The product-based approach
- it is not about how the customer feels about the product but rather how well the product performs or works - The manufacturing based approach
- this is from a supplier side and focuses on conforming to requirements, every service must meet a number of specific requirements - The user-based approach
- the customer’s judgment is always right, it is about how the product fulfills the customers needs or meets their expectations - The value based approach
- considers quality in relation to cost and price, quality is only considered good if the price is acceptable for the quality delivered
What are the differences between product quality and service quality
From a product perspective of what constitutes quality, such as performance, durability, conforming with specifications, features, reliability, serviceability and fit and finish can be specified and measured.
The same cannot be done for services since services are intangible & inseparable, customers cannot see or feel them prior to purchase. This makes it hard to provide and maintain high quality standards
Define service quality
Service quality can be determined by three variables namely:
- what was delivered > technical quality (describes what service is provided for example repairing cars)
- how it was delivered > functional quality (describes how the service was delivered, call repair was delivered in a reliable and friendly manner)
- the image of the service organization
What is the distinction between service quality and customer satisfaction
Service quality is an attitude, while satisfaction is an encounter- specific assessment. Therefore making service quality a prerequisite for customer satisfaction. If customer expectations are not met that implies poor service quality.
Explain desired service
Level of service quality a customer actually wants from a service, and is often an ideal expectation
Explain adequate service
Refers to the level of service quality a customer is willing to accept
Explain sufficient service
This refers to the level of service quality a customer is willing to accept
True or False
The differences between the desired service and adequate service level is called the zone of tolerance.
True
Explain zone of tolerance
It is the extent to which customers recognize and are willing to accept heterogeneity(variety) in service delivery
What are expectations
They are beliefs about the level of service that will be delivered by a provider. These expectations are based on sources like past experiences, word of mouth and advertising
Factors considered when managing service quality expectations
- listening > consumers define quality
- reliability > live up to standards that have been set & deliver
- basic service > consumers expect the basics to be right
- service design > organizations should function as a system
- recovery > resolve customer problems as soon as possible, no delays
- consumers > should aim to exceed consumers expectations
Name the 3 customer defined standards (pg 70)
- Hard customer-defined standards > do it right the first time, be reliable
- Soft customer-defined standards > based on opinion, helping to give employees feedback and Direction
- One-time fixes > feedback from customers may indicate a need for a once off fix
What are the steps involved in developing customer defined standards (pg 70)
step 1: identifying existing or desired service encounter sequence
step 2: translating customer expectations into behaviors and actions for each service encounter
step 3: selecting behaviors and actions standards
step 4: deciding whether hard or soft standards are appropriate
step 5: developing feedback mechanisms for measurement to standards
step 6: establishing measures and target levels
step 7: tracking measures against standards
step 8: providing feedback about performance to employees
step 9: updating target levels and measures
futher explain step 8, on what the feedback should be focused on
- efficiency. How efficiently inputs are used to produce outputs
- effectiveness. The extent to which the objectives have been met
- utilization. The percentage of time that resources are used
- productivity. The ratio between inputs and outputs
Explain the role of customer perceptions
Perceptions are the processes by which individuals select, organize and interpret information they receive from the environment. Perception is influenced by customer characteristics, what they already know and feel about a service.
What is a gap
When performance falls short of expectations, a negative score will be the result. A negative score is also referred to as a gap
Name the service quality dimensions
- tangibles
- reliability
- responsiveness
- empathy
- assurance
read more
What is the value of SERVQUAL
- customers are used to establish a benchmark as they provide relevant and reliable information
- relevant and reliable information regarding the company’s performance levels as perceived by its customers is obtained
- detailed information about customer commands and suggestions is obtained
- a valuable insight is obtained into employees impressions of customers expectations and satisfaction
What are the criticisms of SERVQUAL
- it is only suitable for use by service organizations not suitable for organizations that offer tangible products
- suitable for the measurement of customer perceptions of service quality but not for measurement of customer expectations
- more useful in measuring satisfaction after a transaction has taken place than it is in measuring customers original satisfaction with a service
What are the two alternative measures to service quality (pg 77)
- performance only approach > measures the perceived performance of service but not the service quality expectations. It’s model simply allows customers to rate the service they have received based on a five point scale
- importance performance approach > a customer can rate each attribute on a performance scale
What are the GAPS model of service quality
gap 1- the knowledge gap
gap 2 - the standards gap
gap 3 - the delivery gap
gap 4 - the communication gap
gap 5 - the service gap
