tri/servqual/libqual+ tm a. parasuraman university of miami library assessment and benchmarking...

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TRI/SERVQUAL/LibQUAL+ TM A. Parasuraman University of Miami Library Assessment and Benchmarking Institute (LAB 2002) Monterey, CA September 13, 2002 © A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

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TRI/SERVQUAL/LibQUAL+TM

A. Parasuraman

University of Miami

Library Assessment and Benchmarking Institute (LAB 2002)

Monterey, CA

September 13, 2002

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

Defining, Assessing, and Measuring Service Quality: A Conceptual Overview

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 2

Multi-Phase, Multi-Sector, Multi-Year Program of Research to Address the

Following Issues

• How do customers perceive and evaluate service quality?

• What are managers’ perceptions about service quality?

• Do discrepancies exist between the perceptions of customers and those of managers?

• Can customers’ and managers’ perceptions be combined into a general model of service quality?

• How can service organizations improve customer service and achieve excellence?

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 3

Determinants of Perceived Service Quality

ExpectedService

PerceivedService

ServiceQuality

Gap

PerceivedServiceQuality

Word ofMouth

PersonalNeeds

PastExperience

External Communication

to Customers

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 4

A “GAPS” MODEL OF SERVICE QUALITY

Customers’ Service

Expectations

CUSTOMER SERVICE ORGANIZATION

Service Quality

Gap

Customers’ Service

Perceptions

GAP 5

Organization’s Understanding of

Expectations

Organization’s Service Standards

Organization’s Service

Performance

Organization’s Communications to

Customers

Market Information

Gap

Service Performance

Gap

Internal Communication

Gap

Service Standards

Gap

GAP 1

GAP 2

GAP 3

GAP 4

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 5

PROCESS MODEL FOR CONTINUOUS MEASUREMENT AND IMPROVEMENT OF SERVICE QUALITY

DO YOUR CUSTOMERS PERCEIVEYOUR OFFERINGS AS MEETING

OR EXCEEDING THEIR EXPECTATIONS?

DO YOU HAVE AN ACCURATE UNDERSTANDING OF

CUSTOMERS’ EXPECTATIONS?

ARE THERE SPECIFICSTANDARDS IN PLACE TO MEETCUSTOMERS’ EXPECTATIONS?

DO YOUR OFFERINGS MEET OREXCEED THE STANDARDS?

IS THE INFORMATIONCOMMUNICATED TO CUSTOMERS

ABOUT YOUR OFFERINGS ACCURATE?

CONTINUE TO MONITORCUSTOMERS’ EXPECTATIONS

AND PERCEPTIONS

YES

NO

YES

YES

YES

YES

TAKE CORRECTIVE ACTION

TAKE CORRECTIVE ACTION

TAKE CORRECTIVE ACTION

TAKE CORRECTIVE ACTION

NO

NO

NO

NO

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 6

SERVQUAL: Development, Refinement, and Empirical Findings

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 7

Determinants of Perceived Service Quality

Dimensions of Service Quality

1. Access

2. Communication

3. Competence

4. Courtesy

5. Credibility

6. Reliability

7. Responsiveness

8. Security

9. Tangibles

10. Understanding/Knowing the Customer

ExpectedService

PerceivedService

ServiceQuality

Gap

PerceivedServiceQuality

Word ofMouth

PersonalNeeds

PastExperience

External Communication

to Customers

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 8

Correspondence between SERVQUAL Dimensions and Original Ten Dimensions for Evaluating Service Quality

Original Ten Dimensions for

Evaluating ServiceQuality

TANGIBLESRELIABILITYRESPONSIVENESSCOMPETENCE

COURTESY

CREDIBILITY

SECURITY

ACCESS

COMMUNICATION

UNDERSTANDING/ KNOWING THECUSTOMER

TANGIBLES RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY

SERVQUAL Dimensions

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 9

Definitions of the SERVQUAL Dimensions

• Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials.

• Reliability: Ability to perform the promised service dependably and accurately.

• Responsiveness: Willingness to help customers and provide prompt service.

• Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence.

• Empathy: Caring, individualized attention the firm provides its customers.

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 10

Relative Importance of Service Dimensions When Respondents

Allocate 100 Points [Study 1]

TANGIBLES 11%

EMPATHY 16%

RELIABILITY 32%

ASSURANCE 19%

RESPONSIVENESS

22%

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 11

Relative Importance of Service Quality Dimensions [Study 2]Mean Number of Points Allocated out of 100 Points

37

9

1318

23

29

12

17

19

23

28

12

18

20

23

33

11

1519

23

32

14

1518

21

Computer Manufacturer All Companies Retail Chain

Auto Insurer Life InsurerReliability Responsiveness Assurance Empathy Tangibles

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 12

1.00

0.00

-1.00

-2.00Tangibles Reliability Responsive-

nessAssurance Empathy

Mean SERVQUAL Scores by Service Dimension [Study 1]

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 13

Nature of Service Expectations

Desired Service

Zoneof

Tolerance

Adequate Service

Level Customers Believe Can and Should Be

Delivered

Minimum Level Customers Are Willing

to Accept

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 14

Measure of ServiceAdequacy (MSA)

Measure of ServiceSuperiority (MSS)

=

=

PerceivedService

PerceivedService

-

-

AdequateService

DesiredService

The Two Levels of Expectations Imply Two Corresponding Measures of GAP 5:

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 15

TWO APPROACHES FOR MEASURING MSA AND MSS

• Two-Column Format Questionnaire–Direct measures of MSA and MSS

• Three-Column Format Questionnaire–Difference-score measures of MSA and MSS

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 16

TWO-COLUMN FORMAT

Please think about the quality of service ________ offers compared to the two different levels ofservice defined below:

MINIMUM SERVICE LEVEL - the minimum level of service performance you consider adequate.

DESIRED SERVICE LEVEL - the level of service performance you desire.

For each of the following statements, please indicate: (a) how ______’s performance compareswith your minimum service level by circling one of the numbers in the first column; and (b) how______’s performance compares with your desired service level by circling one of the numbersin the second column.

Compared to My Minimum Compared to My Desired Service Level ____’s Service Level ____’s Service Performance is: Service Performance is:

The No The No

When it comes to … Lower Same Higher Opin- Lower Same Higher Opin-ion ion

1. Prompt service 1 2 3 4 5 6 7 8 9 N 1 2 3 4 5 6 7 8 9 Nto policyholders

2. Employees who are 1 2 3 4 5 6 7 8 9 N 1 2 3 4 5 6 7 8 9 Nconsistently courteous

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 17

THREE-COLUMN FORMAT

We would like your impressions about ________’s service performance relative to your expectations. Please thinkabout the two different levels of expectations defined below:

MINIMUM SERVICE LEVEL - the minimum level of service performance you consider adequate.

DESIRED SERVICE LEVEL - the level of service performance you desire.

For each of the following statements, please indicate: (a) your minimum service level by circling one of the numbersin the first column; and (b) your desired service level by circling one of the numbers in the second column; and (c)your perception of ___________’s service by circling one of the numbers in the third column.

My Minimum My Desired My Perception Service Service of ____’s Service Level is: Level is: Performance is:

No

When it comes to … Low High Low High Low High Opin- ion

1. Prompt service 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 N

to policyholders

2. Employees who are 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 N

consistently courteous

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 18

Measurement Error: Percent of Respondents Answering Incorrectly

Two-ColumnFormat

Three-ColumnFormat

ComputerManufacturer 8.6% 0.6%

Retail Chain 18.2% 1.8%

Auto Insurer 12.2% 1.6%

Life Insurer 9.9% 2.7%

Type of Company

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 19

Mean Service Quality Scores (Combined Across All Companies)

TWO-COLUMN FORMATQUESTIONNAIRE

THREE-COLUMN FROMATQUESTIONNAIRE

MSA Scores MSS Scores MSA Scores MSS Scores

Reliability 6.8 5.9 0.2 -1.0

Responsiceness 6.7 5.7 0.3 -1.1

Assurance 6.8 5.9 0.4 -0.9

Empathy 6.5 5.6 0.2 -1.2

Tangibles 7.1 6.4 1.1 -0.2

SERVQUAL Dimensions

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 20

Revised SERVQUAL Items

Reliability

1. Providing services as promised

2. Dependability in handling customers' service problems

3. Performing services right the first time

4. Providing services at the promised time

5. Keeping customers informed about when services will be performed

Responsiveness

6. Prompt service to customers

7. Willingness to help customers

8. Readiness to respond to customers' requests

Assurance

9. Employees who instill confidence in customers

10. Making customers feel safe in their transactions

11. Employees who are consistently courteous

12. Employees who have the knowledge to answer customer questions

Empathy

13. Giving customers individual attention

14. Employees who deal with customers in a caring fashion

15. Having the customer's best interest at heart

16.Employees who understand the needs of their customers

Tangibles

17. Modern equipment

18. Visually appealing facilities

19. Employees who have a neat, professional appearance

20. Visually appealing materials associated with the service

21. Convenient business hours

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 21

Service Quality Perceptions Relative to Zones of Tolerance by Dimension

Computer Manufacturer

0

1

2

34

56

7

8

9

Reliability Responsiveness Assurance Empathy Tangibles

Zone of Tolerance S.Q. Perception

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 22

Service Quality Perceptions Relative to Zones of Tolerance by Dimension

Computer Manufacturer

0

1

2

34

56

7

8

9

Reliability Responsiveness Assurance Empathy Tangibles

Zone of Tolerance S.Q. Perception

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 23

Service Quality Perceptions Relative to Zones of Tolerance by Dimension

On-Line Services

0

1

2

34

5

6

7

8

9

Reliability Responsiveness Assurance Empathy Tangibles

Zone of Tolerance S.Q. Perception

6.8 7.06.7 6.7

7.07.0

8.38.4

6.8

8.4

6.8

8.3

5.7

7.5

6.8

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 24

Service Quality Perceptions Relative to Zones of Tolerance by Dimension

Tech-Support Services

0

1

2

34

5

6

7

8

9

Reliability Responsiveness Assurance Empathy

Zone of Tolerance S.Q. Perception

8.5

6.9

8.4

6.16.6

6.7

8.1

6.46.3

8.3

6.3

6.8

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 25

Source: http://www.arl.org/newsltr/212/libqual.jpg

LIBQUAL+: An Adaptation of SERVQUAL

26© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

MULTIPLE METHODS OF LISTENING TO CUSTOMERS

• Transactional surveys* • Mystery shopping• New, declining, and lost-customer surveys• Focus group interviews• Customer advisory panels• Service reviews• Customer complaint, comment, and inquiry capture • Total market surveys*• Employee field reporting• Employee surveys• Service operating data capture

*A SERVQUAL-type instrument is most suitable for these methods

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 27

The Role Of Technology In Service Delivery: Electronic Service Quality (e-SQ) and Technology

Readiness (TR)

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 28

Technology’s Growing Role in Marketing to and Serving Customers: Pyramid Model

Company

Employees Customers

Technology

Internal Marketing

Interactive Marketing

External Marketing

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 29

Ongoing Research on e-Service Ongoing Research on e-Service Quality: Conceptual Framework and Quality: Conceptual Framework and

Preliminary FindingsPreliminary Findings

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 30

Research Phases and Questions

PHASE 1:• What is good service on the Web?• What are the underlying dimensions of superior

electronic service quality (e-SQ?)• How can e-SQ be conceptualized?

PHASE 2:• How do these dimensions compare to those of

traditional service quality?• How can e-SQ be measured and thereby

assessed?

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 31

Definition of e-Service Quality (e-SQ)

e-SQ is the extent to which a Website facilitates efficient and effective shopping, purchasing and delivery of products and services.

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 32

Dimensions of e-Service Quality from Focus Groups

• Access• Ease of Navigation• Efficiency• Customization/

Personalization• Security/Privacy

• Responsiveness• Assurance/Trust• Price Knowledge• Site Aesthetics• Reliability• Flexibility

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 33

Reliability

SAMPLE ATTRIBUTES• Site does not crash• Accurate billing• Accuracy of order• Accuracy of account

information• Having items in stock• Truthful information• Merchandise arrives

on time

DEFINITION

Correct technical functioning of the site and the accuracy of service promises, billing and product information.

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 34

Efficiency

SAMPLE ATTRIBUTES• Site is well organized• Site is simple to use• Site provides

information in reasonable chunks

• Site allows me to click for more information if I need it

DEFINITION

The site is simple to use, structured properly, and requires a minimum of information to be input by the customer.

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 35

Means-End Model

SPECIFIC/CONCRETE

ABSTRACT

DimensionsHigher-levelAbstractions

PerceptualAttributes

ConcreteCues

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 36

Ease ofNavigation

Easy to Maneuverthrough Site

Easy to FindWhat I Need

Speed of Checkout

Search Engine

One-click Ordering

Tab Structuring

Site Map

Means-End Model of e-Service Quality

DimensionsHigher-LevelAbstractions

PerceptualAttributes

ConcreteCues

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 37

Perceivede-ServiceQuality

Security/Privacy

PriceKnowledge

Assurance/Trust

Responsive-ness

SiteAesthetics

Reliability

Flexibility

Efficiency

Ease ofNavigation

Personali-zation

Access

DimensionsHigher-LevelAbstractions

PerceptualAttributes

Concrete Cues

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 38

Means-End Model of e-Service Quality

PerceivedValue

PerceivedConvenience

PerceivedControl

Perceivede-ServiceQuality

PerceivedPrice

Dimensions

Higher-Level Abstractions

PerceptualAttributes

ConcreteCues

Behaviors

Purchase

Loyalty

W.O.M

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 39

Customer Web site

Requirements

Perceivede-SQ

PerceivedValue

Purchase/Repurchase

Management’s Beliefs

about Customer Requirements

Design and Operation

of the Web site

Marketingof the

Web site

DesignGap

InformationGap

Conceptual Model for Understanding and Improving e-Service QualityCustomer

Company

CommunicationGap

FulfillmentGap

Customer Web site

Experiences

e-Service Quality vs. Traditional SQ

• Several dimensions are the same, but specific attributes underlying them are different

• e-SQ involves some new dimensions • Empathy -- and other ‘hi-touch’ oriented attributes --

do not seem to be as critical for e-SQ except when customers experience problems; preliminary insights from Phase 2 suggest differences between regular and recovery e-SQ

• Key drivers of regular e-SQ relate to efficiency, fulfillment, reliability, and privacy

• Key drivers of recovery e-SQ relate to responsiveness, real-time access to help, and compensation

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 41

An Important Implication of the Pyramid Model

An organization’s ability to use technology effectively in marketing to and serving customers critically depends on the technology readiness of its customers and employees

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 42

What is Technology Readiness [TR]?

TR refers to “people’s propensity to embrace and use new technologies for accomplishing goals in home life and at work”

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 43

Key Insights from Qualitative Research Studies

• TR doesn’t just refer to possessing technical skills; TR is much more a function of people’s beliefs and feelings about technology

• People’s beliefs can be positive about some aspects of technology but negative about other aspects

• The relative strengths of the of positive and negative beliefs determine a person’s receptivity to technology

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 44

Receptive toTechnology

NeutralResistant toTechnology

Technology-Beliefs Continuum

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 45

Link between Technology Beliefs and Technology Readiness

High

Receptive toTechnology

NeutralResistant toTechnology

Low

Medium

Tec

hn

olo

gy

Rea

din

ess

Technology-Beliefs Continuum© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 46

Major Quantitative Research Studies

• Three “National Technology Readiness Surveys” [NTRS] in the USA:

– January 1999– February 2000– November 2001– November 2002 [being planned]

• Austrian Technology Readiness Surveys– February 2001– October 2002 [being planned]

• Swedish Technology Readiness Survey– July/August 2002 [data collected; analysis underway]

Key Insights from Quantitative Research Studies

• TR consists of four facets or dimensions that are fairly independent of one another

• People’s ratings on a set of belief statements about technology can be combined to create a reliable and valid measure of TR -- i.e., a “Technology Readiness Index” [TRI]

• The TRI is a good predictor of people’s technology-related behaviors and preferences

• A meaningful typology of customers can be created based on their TR scores on the four dimensions

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 48

Drivers of Technology Readiness

Technology Readiness

Discomfort InsecurityInhibitors

Contributors InnovativenessOptimism

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 49

Definitions of the TR Drivers

• Optimism: Positive view of technology; belief that it offers increased control, flexibility and efficiency

• Innovativeness: Tendency to be a technology pioneer and thought leader

• Discomfort: Perceived lack of control over technology and a feeling of being overwhelmed by it

• Insecurity: Distrust of technology and skepticism about its working properly

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 50

OPT. TRIINS.DIS.INN.

Mean TRScores

TR Scores by Dimension and Overall TRI

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

1 2 3 4 5

US 1999 US 2000 US 2001 Austria 2001

* **

*Austrian and US scores are signifcantly different

Characteristics of Technology Segments

Optimism Innovative- Dis- Insecu- ness comfort

rity

Explorers High High Low Low

Pioneers High High High High

Skeptics Low Low Low Low

Paranoids High Low High High

Laggards Low Low High High

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 52

The Five TR Segments Differ on Technology

Usage…..

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 53

Greater than 50% Ownership/Usage of Technology-Based Products/Services

(as of 1999)

• Explorers: Computers, cell phones, caller ID, ATMs, online services, telephone banking

• Pioneers: Computers, cell phones, caller ID, ATMs, online services

• Skeptics: Computers, ATMs• Paranoids: ATMs• Laggards: None

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 54

Pace of Technology Adoption

7/95 10/96 5/97 1/98 9/98

Explorers Pioneers

Skeptics

Paranoids

Laggards

Timing of 10% penetration rate for Internet access within each customer segment

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 55

New Customer Composition by Age of Techno-Based Product/Service

Early

Late

Fir

st-

tim

e U

se

rs Laggards

Paranoids

Skeptics

Pioneers

Explorers

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 56

In Conclusion, to Deliver Superior Service in Library Environments:

• Understand customers’ service expectations and how well those expectations are being met

• Work systematically to remove organizational barriers that lead to poor customer service -- offline and online

• Recognize and capitalize on the increasing role of technology in serving customers, but …

• Be cognizant of customers’ and employees’ readiness to embrace technology-based services

• Recognize that e-service quality as perceived by customers involves much more than having a state-of-the-art website

• Put in place a solid behind-the-scenes infrastructure -- information systems, logistics, and human resources -- to deliver what a website’s façade promises.

• Continuously monitor customers’ and employees’ reactions to and experiences with your electronic interfaces

57© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission

Sources of Information about TR and e-SQ

Parasuraman and Colby, Techno-Ready Marketing: How and Why Your CustomersAdopt Technology, New York: The FreePress, 2001.

Parasuraman, “Technology Readiness Index (TRI): A Multiple-Item Scale to Measure Readiness to Embrace New Technologies,” Journal of Service Research, May 2000, pp. 307-320.

•Zeithaml, Parasuraman, and Malhotra, “A Conceptual Framework for Understanding e-Service Quality: Implications for Future Research and Managerial Practice,” MSI Monograph, 2000 (Report # 00-115).

Thank You!

© A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 59