chapter 3. service delivery & quality management
TRANSCRIPT
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Service Delivery &
Quality Management
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Service Delivery
Service Delivery is an essential condition for success in theemerging, keenly competitive, global Service markets. Whilethe future importance of delivering quality service is easy to
discern and to agree on, doing so presents some difficult andintriguing management issues.
Eg. Ritz Carlton, British Airways, Audi, etc.
Customers have different expectations of servicesor
expected serviceDesired servicecustomer hopes to receive
Adequate servicethe level of service the customer mayaccept.
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Consumer Behavior in Services
Overview the generic differences in consumer behavior
between services and goods
Introduce the aspects of consumer behavior that amarketer must understand in five categories of consumer
behavior:
Information Search
Evaluation of service alternatives
Service purchase and consumption
Post purchase evaluation
Role of culture
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Consumer Evaluation Processes for Services
Search Qualities
Attributes a consumer can determine prior to purchase
of a productExperience Qualities
Attributes a consumer can determine after purchase (or
during consumption) of a product
Credence Qualities
Characteristics that may be impossible to evaluate even
after purchase and consumption
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Continuum of Evaluation for Different
Types of Products
Difficult to evaluateEasy to evaluate
High in search
qualities
High in experience
qualities
High in credence
qualities
Most
Goods
Most
Services
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Categories in ConsumerDecision-Making and Evaluation of Services
Information Search Evaluation of
Alternatives
Purchase andConsumption
Post-PurchaseEvaluation
Use of personal sources
Perceived riskEvoked set
Emotion and mood
Service provision as drama
Service roles and scripts
Compatibility of customers
Attribution of dissatisfaction
Innovation diffusion
Brand loyalty
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Categories in Consumer Decision-Making
& Evaluation of Services
Information Search Evaluation of
Alternatives
Purchase andConsumption
Post-PurchaseEvaluation
Use of personal sources
Perceived risk
Evoked set
Emotion and mood
Service provision as drama
Service roles and scripts
Compatibility of customers
Attribution of dissatisfaction
Innovation diffusion
Brand loyalty
CultureValues and attitudesManners and customs
Material cultureAesthetics
Educational and social
institutions
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Information search
In buying services consumers rely more onpersonal sources.
Personal influence becomes pivotal as productcomplexity increases
Word of mouth important in delivery of services
With service most evaluation follows purchase
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Perceived Risk
More risk would appear to be involved withpurchase of services (no guarantees)
Many services so specialised and difficult toevaluate (How do u know whether the Electrician/Auto Technician has done a good job?)
Therefore a firm needs to develop strategies toreduce this risk, e.g, training of employees,standardisation of offerings
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Evoked Set
The evoked set of alternatives likely to be smaller withservices than goods
If you would go to a shopping centre you may only findone dry cleaner or single brand
It is also difficult to obtain adequate prepurchaseinformation about service
The Internet may widen this potentialConsumer may choose to do it themselves, e.g. gardenservices
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Emotion and Mood
Emotion and mood are feeling states that
influence peoples perception and evaluation of
their experiencesMoods are transient
Emotions more intense, stable and pervasive
May have a negative or positive influence
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Service Provision as Drama
Need to maintain a desirable impression
Service actors need to perform certain routines
Physical setting important, smell, music, use of
space, temperature, cleanliness, etc.
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The Service Encounter
is the moment of truth
occurs any time the customer interacts with the firm
can potentially be critical in determining customer satisfaction & loyalty
types of encounters:
remote encounters
phone encounters
face-to-face encountersis an opportunity to: build trust reinforce quality build brand identity
increase loyalty
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Service encounters are building blocks of quality service.
How can hospitality businesses manage them more
effectively? A two step process in the evaluation of a
service chain.First, Service Managers should identify each encounter in
the Service chain that they wish to take apart, & then single
out those that are of operational or strategic significance.
Second, apply what we have called the 6 Ss to improving
these critical encounters through effective redesign
The Service Encounter
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An initial management task is to understand a service
encounter by discerning and dealing with those attributes that
are most important to the clients. In doing so, pertinent
questions must be raised about the specific serviceencounter(s) under consideration. With respect to service
encounter, Service Managers might raise questions like:oExactly what happened?
oWhat were the guest/client reactions?oShould it be done differently?
oWhat resources would assure optimal performance?
oWhat changes should be made?
oHow can such changes best be put into effect?
The Service Encounter
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Service Mapping/Blueprinting
A tool for simultaneously depicting the service process,
the points of customer contact, and the evidence of
service from the customers point of view.
Service
Mapping
Process
Points of Contact
Evidence
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Service Blueprint Components
CUSTOMER ACTIONS
line of interaction
ONSTAGE CONTACT EMPLOYEE ACTIONS
line of visibility
BACKSTAGE CONTACT EMPLOYEE ACTIONSline of internal interaction
SUPPORT PROCESSES
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The specific encounter(s) under consideration
will, of course, indicate the kinds of questions
that should be pursued. It is important to obtainadequate information to understand the situation
thoroughly. Determining the context of a
situation relating to a Service encounter that has
gone wrong establishes parameters forimprovement.
The Service Encounter
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Analysis of service encounters
All this is part of the second step. With the information at
hand hospitality managers can organize,& analyze the
data & it is here that the 6S approach can help. These are:
1.Specification
2.Staff
3.Space4.System
5.Support
6.Style
The Service Encounter
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Which are the encounters that really matter?
- Those that add significant value to the guest
- Those that cost in time or money,
- Those that help to differentiate the business from
its competitors
- Those where significant innovation is possible or
occurring.
The Service Encounter
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Check-In
Request Wake-Up Call
Checkout
Bellboy Takes to Room
Restaurant Meal
A Service Encounter
Cascade for a Hotel Visit
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Sales Call
Ordering Supplies
Billing
Delivery and Installation
Servicing
Service Encounter Cascadefor an Industrial Purchase
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Critical Service Encounters Research
GOAL - understanding actual events and behaviors
that cause customer dis/satisfaction in service
encounters
METHOD - Critical Incident Technique
DATA - stories from customers and employees
OUTPUT - identification of themes underlyingsatisfaction and dissatisfaction with service
encounters
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Sample Questions for Critical
Incidents Technique Study
Think of a time when, as a customer, you had a
particularly satisfying (dissatisfying)interaction with an
employee of .When did the incident happen?
What specific circumstances led up to this situation?
Exactly what was said and done?What resulted that made you feel the interaction was
satisfying (dissatisfying)?
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Common Themes in Critical
Service Encounters Research
Recovery: Adaptability:
Spontaneity:Coping:
Employee Responseto Service Delivery
System Failure
Employee Responseto Customer Needs
and Requests
Employee Responseto Problem Customers
Unprompted andUnsolicited EmployeeActions and Attitudes
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Recovery
Acknowledge problem
Explain causesApologize
Compensate/upgrade
Lay out optionsTake responsibility
Ignore customer
Blame customerLeave customer to fend
for him/herself
DowngradeAct as if nothing is
wrong
DO DONT
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Adaptability
Recognize the
seriousness of the needAcknowledge
Anticipate
Attempt to accommodate
Explain rules/policiesTake responsibility
Exert effort to
accommodate
Promise, then fail to follow
throughIgnore
Show unwillingness to try
Embarrass the customer
Laugh at the customerAvoid responsibility
DO DONT
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Spontaneity
Take time
Be attentiveAnticipate needs
Listen
Provide information (even
if not asked)Treat customers fairly
Show empathy
Acknowledge by name
Exhibit impatience
IgnoreYell/laugh/swear
Steal from or cheat a
customerDiscriminate
Treat impersonally
DO DONT
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Coping
ListenTry to accommodate
Explain
Let go of the customer
Take customersdissatisfaction
personally
Let customers
dissatisfaction affectothers
DO DONT
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Factors Influencing Customer Satisfaction
Product/service quality
Product/service attributes or features
Consumer Emotions
Attributions for product/service success or failure
Equity or fairness evaluations
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Outcomes of Customer Satisfaction
Increased customer retention
Positive Word-of-mouth communications
Increased Revenues
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Relationship between Customer Satisfaction
& Loyalty in Competitive Industries
0%
20%
40%
60%
80%
100%
Very
dissatisfied
Dissatisfied Neither
satisfied nor
dissatisfied
Satisfied Very
satisfied
Satisfaction measure
Loyalty
(reten
tion)
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Service Quality
Service Quality is a Global judgment or attitude relating to
the overall superiority of the service.
Service quality is being increasingly perceived as a tool to
increase value for the consumer; and as a means ofpositioning in a competitive environment to ensure consumer
satisfaction, retention, and patronage.
Existing research indicates that consumers satisfied with
the service quality are most likely to remain loyal. However,
despite its strategic importance, Indian Service Industry do
not have an appropriate and established instrument to
measure service quality.
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Service Quality
In an age of thin profit margin, corporations are diligently
looking for ways to differentiate themselves from the
competitors, to beat the competition, to expand market
share, to create quality differences, and even to achievezero quality defects.
The customers judgment of overall excellence of the
service provided in relation to the quality that wasexpected.
Process and outcome quality are both important.
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Measuring Service Quality
Any exercise to measure service quality must take into
account two kinds of factors: those pertaining to the industry
in general and those pertaining to the service provider under
consideration in specific. The economy of the country as awhole must also be measured. These factors must be
weighted according to importance to measure their impact
on the ultimate effect on service quality.
The most popular tool used to measure service quality is
SERVQUAL, a general instrument used to measure the
service quality gap and measuring general expectations
across service industries
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SERVQUAL Methodology
SERVQUAL Methodology. Originally developed by leading
customer satisfaction researchers Valarie Zeithaml, A.
Parasuraman and Leonard Berry.
SERVQUAL Methodology is an invaluable tool for companiesto better understand what customers value and how well
they are meeting the needs and expectations of customers.
SERVQUAL provides a benchmark based on customeropinions of an excellent company, on a particular company,
on the importance ranking of key attributes, and on a
comparison to what your employees believe customers feel.
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SERVQUAL METHODOLOGY
It provides detailed information about:
customer perceptions of service (a benchmark
established by your own customers);
your performance levels as perceived by customers;
customer comments and suggestions;
impressions from employees with respect to
customers expectations and satisfaction.
SERVQUAL has proven to be a simple yet effective tool
for many organizations.
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SERVQUAL was originally measured on 10 aspects of service
quality:
1. Reliability: Ability to perform the promised service dependably and
accurately
2. Responsiveness: Willingness to help customers and provide prompt
service
3. Competence: Possession of required skill and knowledge to
perform service
4. Access: Approachable and ease of contact
5. Courtesy: Politeness, respect, consideration, friendliness of contact
personnel
SERVQUAL METHODOLOGY
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6. Communication: Listens to customers and acknowledges
their comments. Keeps customers informed in a language
which they can understand
7. Credibility: Trustworthiness, believability, honesty of theservice provider
8. Security: Freedom from danger, risk or doubt
9. Understanding: Making the effort to know the customer and
their needs
10. Tangibles: Appearance of physical facilities, equipment,
personnel and communication materials
SERVQUAL METHODOLOGY
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The Five Dimensions of Service Quality
Ability to perform the promised servicedependably and accurately.
Knowledge and courtesy of employeesand their ability to convey trust andconfidence.
Physical facilities, equipment, and
appearance of personnel.Caring, individualized attention the firmprovides its customers.
Willingness to help customers andprovide prompt service.
Tangibles
Reliability
Responsiveness
Assurance
Empathy
By the early 90s, the authors had reduced it to the useful acronym RATER:
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Service Quality
Perceived Service Quality
Word of
mouth
Personal
needs
Past
experience
Expectedservice
Perceivedservice
Service Quality
Dimensions
Reliability
ResponsivenessAssurance
Empathy
Tangibles
Service Quality Assessment
1. Expectations exceeded
ESPS (Unacceptable quality)
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The Customer Gap
Expected
Service
PerceivedService
GAP
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Gaps Model of Service Quality
Gaps in Service Quality
Word -of-mouth
communicationsPersonal needs Past experience
Expected service
External communicationsto consumers
Perceived service
Service delivery (includingpre- and post-contacts)
Translation of perceptions intoservice quality specifications
Management perceptions ofconsumer expectations
GAP 5
GAP 3
GAP 2
GAP 1 GAP 4
Customer
Provider
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Gaps Model of Service Quality
There are five major gaps in the service quality concept.
Gap1: Customers expectations versus Mgmt perceptions:
as a result of the lack of a marketing research orientation,
inadequate upward communication & too many layers of Mgmt.
Gap2: Management perceptions versus service
specifications: as a result of inadequate commitment to
service quality, a perception of unfeasibility, inadequate taskstandardisation & an absence of goal setting.
Gap3: Service specifications versus service delivery: as a
result of role ambiguity and conflict, poor employee-job fit and
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poor technology-job fit, inappropriate supervisory control
systems, lack of perceived control and lack of teamwork.
Gap4: Service delivery versus external communication:
as a result of inadequate horizontal communications andpropensity to over-promise.
Gap5: The discrepancy b/n customer expectations & their
perceptions of the service delivered: as a result of theinfluences exerted from customer side & shortfalls (gaps) on
thepart of the service provider. In this case, customer
expectations are influenced by the extent ofpersonal needs,
word of mouth recommendation & past service experiences.
Gaps Model of Service Quality
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Thank You !!!