Chapter 3: The Management Of Service Quality

Question 1

Define the concept of quality

Answer 1

Quality is meeting or exceeding customer expectations. Essentially satisfying the needs of customers

Question 2

What are the perspectives on quality

Answer 2

• 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

Question 3

Explain the relevance of quality

Answer 3

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

Question 4

What are the implications of producing poor quality products

Answer 4

• 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

Question 5

What approaches can be used to assess quality

Answer 5

1. The transcendent approach
   - it is not easy to define and is primarily feelings about something for example this makeup makes me look beautiful
2. The product-based approach
   - it is not about how the customer feels about the product but rather how well the product performs or works
3. 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
4. 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
5. 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

Question 6

What are the differences between product quality and service quality

Answer 6

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

Question 7

Define service quality

Answer 7

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

Question 8

What is the distinction between service quality and customer satisfaction

Answer 8

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.

Question 9

Explain desired service

Answer 9

Level of service quality a customer actually wants from a service, and is often an ideal expectation

Question 10

Explain adequate service

Answer 10

Refers to the level of service quality a customer is willing to accept

Question 11

Explain sufficient service

Answer 11

This refers to the level of service quality a customer is willing to accept

Question 12

True or False
The differences between the desired service and adequate service level is called the zone of tolerance.

Answer 12

True

Question 13

Explain zone of tolerance

Answer 13

It is the extent to which customers recognize and are willing to accept heterogeneity(variety) in service delivery

Question 14

What are expectations

Answer 14

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

Question 15

Factors considered when managing service quality expectations

Answer 15

• 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

Question 16

Name the 3 customer defined standards (pg 70)

Answer 16

1. Hard customer-defined standards > do it right the first time, be reliable
2. Soft customer-defined standards > based on opinion, helping to give employees feedback and Direction
3. One-time fixes > feedback from customers may indicate a need for a once off fix

Question 17

What are the steps involved in developing customer defined standards (pg 70)

Answer 17

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

Question 18

futher explain step 8, on what the feedback should be focused on

Answer 18

• 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

Question 19

Explain the role of customer perceptions

Answer 19

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.

Question 20

What is a gap

Answer 20

When performance falls short of expectations, a negative score will be the result. A negative score is also referred to as a gap

Question 21

Name the service quality dimensions

Answer 21

• tangibles
• reliability
• responsiveness
• empathy
• assurance

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Question 22

What is the value of SERVQUAL

Answer 22

• 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

Question 23

What are the criticisms of SERVQUAL

Answer 23

• 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

Question 24

What are the two alternative measures to service quality (pg 77)

Answer 24

• 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

Question 25

What are the GAPS model of service quality

Answer 25

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