Service QualityService Quality

QualityQuality

‘‘There is no limit to the There is no limit to the quality that can be quality that can be produced, even in the most produced, even in the most menial job’ menial job’

Dave Thomas quoted in D Bone and Dave Thomas quoted in D Bone and R Griggs, 1989, R Griggs, 1989, Quality at WorkQuality at Work, , London: Kogan Page.London: Kogan Page.

QualityQuality

‘‘Quality is a perfection standard Quality is a perfection standard

to be practised at all times; it is a to be practised at all times; it is a

continual effort to improve’continual effort to improve’

D. Bone and R . Griggs, 1989, D. Bone and R . Griggs, 1989, Quality at Quality at WorkWork, London: Kogan Page, p. 13., London: Kogan Page, p. 13.

Defining Service QualityDefining Service Quality

“ “ A service industry is A service industry is vulnerable at its weakest vulnerable at its weakest point. If you go to a point. If you go to a restaurant the food can be restaurant the food can be magnificent but if the magnificent but if the service is lousy the chances service is lousy the chances are you will never go back are you will never go back again. That’s the crux of it.” again. That’s the crux of it.”

(G. Cuthbert, Head of Sales British Airways)(G. Cuthbert, Head of Sales British Airways)

Berry’s Quality Factors Berry’s Quality Factors for Service Industries (1985)for Service Industries (1985)

ReliabilityReliability - Punctual - Punctual ResponsivenessResponsiveness - Speed of service - Speed of service CompetenceCompetence - Skilled personnel - Skilled personnel AccessAccess - Easy to find or obtain - Easy to find or obtain CourtesyCourtesy - Polite and helpful - Polite and helpful CommunicationCommunication - Clear, sufficient detail - Clear, sufficient detail CredibilityCredibility - Trust and dependability - Trust and dependability SecuritySecurity - Confidentiality, safety - Confidentiality, safety UnderstandingUnderstanding - Meeting customers - Meeting customers

individual needsindividual needs knowing the customerknowing the customer TangiblesTangibles - Pleasing appearance etc - Pleasing appearance etc

Perceptions of Service QualityPerceptions of Service Quality

““Customers perceptions of service Customers perceptions of service quality results from a comparison of quality results from a comparison of their expectations before they receive their expectations before they receive service to their actual experience of the service to their actual experience of the service.” service.” (Berry 1985)(Berry 1985)

Quality perceptions are derived from Quality perceptions are derived from the the

service process as well as from theservice process as well as from theservice outcomes.service outcomes.

Service quality is of two types, normal Service quality is of two types, normal and exceptional.and exceptional.

The Concept of the Q-MatchThe Concept of the Q-Match

The Q-Match idea is a quick and The Q-Match idea is a quick and useful way to compare what you useful way to compare what you do (and what others do) to a pre-do (and what others do) to a pre-set standard set standard Diane Bone & Rick Griggs (1989) “Quality at Work”, London, Kogan PageDiane Bone & Rick Griggs (1989) “Quality at Work”, London, Kogan Page

Q-Match says that;Q-Match says that;

Quality = Quality = MMeeteetAAgreegreeTTerms anderms andChChangesanges

Thoughts on Service QualityThoughts on Service Quality

““Service companies waste Service companies waste

anywhere from 30 - 35% of their anywhere from 30 - 35% of their

operating cost by not doing things operating cost by not doing things

right” right” (Hutton 1988)(Hutton 1988)

““Good Quality may not always Good Quality may not always

save money, but poor quality save money, but poor quality

always costs and usually wastes always costs and usually wastes

money"money"(Carruthers & Holland 1991)(Carruthers & Holland 1991)

Moment of TruthMoment of Truth

Each customer contact is called Each customer contact is called a moment of truth.a moment of truth.

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

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

Dimensions of Service QualityDimensions of Service Quality

Five principle dimensions that customers use Five principle dimensions that customers use to judge service quality. These dimensions to judge service quality. These dimensions are listed in order of declining relative are listed in order of declining relative importance to customers.importance to customers.

ReliabilityReliability

ResponsivenessResponsiveness

AssuranceAssurance

EmpathyEmpathy

TangiblesTangibles

Service QualityService Quality

ReliabilityReliability

            DependabilityDependability

            AccuracyAccuracy

            ReliabilityReliability

  

ResponsivenessResponsiveness

            Promptness of servicePromptness of service

            Service failureService failure

Service QualityService Quality

AssuranceAssurance

            Knowledge and courtesyKnowledge and courtesy

            CompetenceCompetence

            Politeness and respectPoliteness and respect

            Effective communicationEffective communication

            Server attitudeServer attitude

Service QualityService Quality

EmpathyEmpathy

·      Caring individualised attention·      Caring individualised attention

·      Approachability·      Approachability

·      Sense of security·      Sense of security

·      Understanding customers needs·      Understanding customers needs

TangiblesTangibles

  ·      Physical facilities·      Physical facilities

Kano’s Model of Kano’s Model of Customer RequirementsCustomer Requirements

Customer Customer SatisfactionSatisfaction

Customer Customer DissatisfactionDissatisfaction

Don’t fulfil Don’t fulfil expectationsexpectations

Do fulfil Do fulfil expectationsexpectations

Normal Normal requirementsrequirements

Expected Expected requirementsrequirements

Exciting Exciting requirementsrequirements

Unconditional Service GuaranteeUnconditional Service Guarantee

Customer ViewCustomer View

Service guarantees have five importance featuresService guarantees have five importance features

1. 1. UnconditionalUnconditional

2. 2. Easy to understand and communicateEasy to understand and communicate

3. 3. MeaningfulMeaningful

4. 4. Easy to invokeEasy to invoke

5. 5. Easy to collectEasy to collect

Unconditional Service GuaranteeUnconditional Service Guarantee

Management ViewManagement View

A service guarantee promotes organisation effectivenessA service guarantee promotes organisation effectiveness

in several ways:in several ways:

1. Focuses on customers1. Focuses on customers

2. Sets clear standards2. Sets clear standards

3. Guarantees feedback3. Guarantees feedback

4.4. Promotes an understanding of the service delivery Promotes an understanding of the service delivery system system 

5. Builds customer loyalty5. Builds customer loyalty

Customer SatisfactionCustomer Satisfaction

All customers want to be All customers want to be satisfied. satisfied.

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

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

Expressing DissatisfactionExpressing Dissatisfaction

DissatisfactionDissatisfactionoccursoccurs

ActionAction

No ActionNo Action

Public ActionPublic Action

Private ActionPrivate Action

Seek redress directly from Seek redress directly from the firmthe firm

Take legal actionTake legal action

Complaint to business, private,Complaint to business, private,or governmental agenciesor governmental agencies

Stop buying the product or Stop buying the product or boycott the sellerboycott the seller

Warn friends about the productWarn friends about the productand /or seller and /or seller

Customer Feedback Customer Feedback & Word of Mouth& Word of Mouth

The average business only hears The average business only hears from 4% of their customers who are from 4% of their customers who are dissatisfied with their products or dissatisfied with their products or services. Of the 96% who do not services. Of the 96% who do not bother to complain, 25% of them bother to complain, 25% of them have serious problems.have serious problems.

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

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

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

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

Customer Feedback Customer Feedback & Word of Mouth& Word of Mouth

Number of people told based on Number of people told based on level of Dissatisfactionlevel of Dissatisfaction

Average number of people told

0

5

10

15

20

25

30

Slight

dissatisfaction

Annoyed Very

annoyed

Extremely

annoyed

Absolutely

furious

Action Taken Based on the Action Taken Based on the Level of DissatisfactionLevel of Dissatisfaction

0

20

40

60

80

100

Slightlydissatisfied

Annoyed Veryannoyed

Extremelyannoyed

Absolutelyfurious

Tell friends

Complain

Make a fuses

Not use again

Dissuade others

Complain against

Percent of customers that take action