Managing the Service Quality

7/29/2019 Managing the Service Quality

1/26

Calvin & Hobbes


2/26

Communications to

ICustomers

Expected

Services

Perceived

Services

Service Delivery

Service Quality

Specifications

Management Perceptions of

Customer Expectations

Gap 2

Customer

Service Provider Gap 4

Gap 3

Gap 1

Service Quality Gap Model(Adapted from Zeithaml et al, 1990; Kettinger & Lee, 1995)

Gap 1:Not knowing what the customer expects

Gap 2:Not selecting the right service designs

and standards

Gap 3:Not delivering to the service standards

Gap 4:Not matching performance to promises

Gap 5: Service Quality

Satisfaction Measure Gap


3/26

Managing the Service QualityThe role of CUSTOMER expectations

M S Balaji

Icfai Business School

Class 8


4/26

Preamble

A critical reason why services fail is because the service providers

has failed to:

understandcustomer expectations

accurately capture customer expectations

manage changing expectations

delivera service product that meets customer expectations

In short, the reason why services may often fail to meet customer

satisfaction, is simple because serv ice provider does no t

understand expectat ions.


5/26

Introduction

Some companies . . . . more than just competitive advantage in

customer service. . . . . they have unwavering customer loyalty.

How do they do it? The key to providing superior service is understanding and

responding to CUSTOMER EXPECTATIONS.

By responding appropriately to the customer expectations,

managers/ service providers can be on their way to developing

customerfranchise


6/26

Some questions to ponder up on

What is the nature ofcustomers service expectations? Are there different types

of expectations?

What factors influence the formation of expectations?

How stable are these expectations? Do they change over time? Do they remain

same across service industries, service situations and customers?

How can companies manage customer expectations so that the perceptions can

be enhanced?

What do companies do to exceed expectations?


7/26

What are Expectations?

An expectation is the subjective probability that a behavior will be followed by a

particular outcome.

More broadly, expectations reflect an individuals subjective probabilities about the

current or future existence of a particular state of affairs.

Expectations can be predictive or normative.

Predictive expectations - predictions made by customers about what is likely to

happen during an impending transaction or exchange. Normative expectations - represent what customers ideally want .

These two perspectives are often used interchangeably in discussions of service

quality making it difficult to interpret results.


8/26

ExpectationsWhat do customers expect (Dimensions)

Reliability, Responsiveness, Assurance/Trust, Empathy, Tangibles(Zeithaml et al., 1990; Kettinger et al., 1994; Pitt et al., 1995)

Types (Levels) of expectations (Zeithaml et al., 1990; Pitt et al., 1995)

Desired, Adequate, Ideal

Zone of Tolerance (Desired

Adequate)

What influences (informs) customer expectations (Determinants)(Zeithaml et al., 1993; Pitt et al., 1995; Ryker et al., 1997) .


9/26

Consumer expectations . . . .

Zone

of

Tolerance

Ideal Service

Desired Service

Adequate Service

Predicted Service


10/26

Zone of Tolerance

Customers do not notice service production process.

A customers desired service expectation is same for all service

providers within a category

Adequate service expectation level varies for different firms within

a category.

Zone of tolerance expands or contracts for a customer from time to

time.

Zone of tolerance varies for different customers.

Zone of tolerance varies for service dimensions. E.g. unreliability

will be least tolerated.

Zone of tolerance varies for first time & recovery service.


11/26

Characteristics & Evaluation Outcomes(Zeithaml et al., 1991; Oliver 1980)

Adequate

Desired

Zone of

Tolerance

higher-end, stable

lower-end, temporal

Confirmation(Neutral, Indifferent state)

Negative Disconfirmation(Disappointment)

Positive Disconfirmation(Delight)

Outcomes of Performance Evaluations

Adjustment


12/26

Service Levels/Levels of Expectations

High

Ideal expectations ordesires

Normative should

expectations

Everyone says they are the best

there is

Since it costs this much, they ought

to deliver excellent service

Minimum tolerable

expectations

Acceptable

expectations

I expect terrible service but I use

them because theyre cheap

I expect the service will be adequate

Experience-based

Norms

Most times they are good, but

when they are busy you have to

wait a while

Source: Zeithaml et al., 2004

Low


13/26


14/26

Antecedents of consumer expectations

Expectations are often conceptualized as combining both customer wants

and customer beliefs about what the service is capable of providing.

Individuals form expectations/beliefs on the basis of direct observation or

experience with a situation (descriptive beliefs), information provided by

others (informational beliefs), or through various inference processes

(inferential beliefs).

A customer who was treated in a courteous manner last week by a particular

airline ticket agent would hold a descriptive belief, an expectation that the

same ticket agent would behave in a similar fashion this week.


15/26

Contd.

Inferential and informational beliefs are those that go beyond those events that are

directly observed. With inferential beliefs, the connection between object and

attribute results from an inference drawn from a prior belief.

If, for example, on the basis of a courteous ticket agent, a passenger comes to

believe (an expectation) that the flight attendant will also be courteous, the result is

an inferential belief.

Informational beliefs are those in which the connection between an object and

attribute is first made by another source.


16/26

Contd

The airplane pilot who states that we will arrive on schedule has made the link

between an event (arrival) and an attribute (timely) and, by accepting that link

as stated, the individual creates an informational belief.

Lacking physical referents, the service customer may develop a cognitive

script which specifies expectations about the overall service event.

This script is a predetermined, stereotyped sequence of actions that defines a

well known situation


17/26

Cues to influence expectations

On entering any delivery system, the customer is subject to a potentially vast

number of cues that may influence his/her assessment of the ongoing

process.

These cues may be such things as peripheral components of the core service,

observations of others experiencing aspects of the service, or initial personal

experience of the core service.

Some of these cues may be planned, i.e. interventions by the organizationspecifically to influence the expectation process, while others are unplanned

resulting from interactions with various aspects of the delivery system.


18/26

Strategies to influence expectations

ExpectationsDescriptive

Informational

Inferential

Influenced by

Cues

Strengthen Expectations

Weaken Original Expectations

Form New Expectations

Maintain the old Expectations

Perceived Service

Delivery

Met

Unmet

Customer

Satisfaction


19/26

What do Customers Expect?Dimensions of Service Quality

Reliability: Consistency of performance and dependability

Responsiveness: Willingness/readiness of employees to provide service in timely manner

Competence: Possession of required skills to perform service

Access: Approachability and ease of contact

Courtesy: Politeness, respect, consideration, friendliness

Communications: Keeping customers informed in language they understand

Credibility: Trustworthiness, believability, honesty

Security: Freedom from danger, risk, doubt

Understanding/Knowing the Customer: Making effort to understand customers needs

Tangibles: Physical evidence of service


20/26

Predicted

Service

Expected Service

Perceived

Service

Adequate

Service

Desired

Service

Zone of

Tolerance

Gap 5

Service Quality Gap: Determinants of Expected Service(Zeithaml et al, 1990)

Enduring Service

Intensifiers

Personal Needs

Communications

Word of Mouth

Past Experience

Transitory ServiceIntensifiers

Perceived Service

Alternatives

Self-Perceived

Service Role Situational Factors


21/26

How to measure customers expectations

These expectations can be based on visible or hidden needs, and as well as

on perception about the company.

There are some methods organizations can use to identify customer

expectations and needs.

Surveys - customer insight and what the customers feel about the product or

service and the organization. Companies need to use this insight to see the

world through the eyes of the customer.

Zaltman Metaphor Elicitation Technique (ZMET)

Voice of customer (VOC) Technique


22/26

Customer satisfaction

Customer = Your Performance

Satisfaction Customer expectations

However it is not as simple as it says

Customer satisfaction is influenced by a complex interplay of factors, such as past

experience, changing priorities, management demands, communication

preferences, provider competency, the urgency of the need, and whether the toast

got burned this morning.

An additional factor revolves around the psychology of dissatisfaction: When

customers become dissatisfied with a service attribute thats particularly important

to them, they are likely to also become dissatisfied with aspects of the service that

might otherwise remain below their anger threshold.


23/26

Customers expect basic service

Customers expect service companies to do what they are supposed to do.

They expect fundamental, not fancies; performance not empty promises.

Insurance companies customers . . . . . Provide expertise and pay up

Hotel customers . . . . Clean and secure room and a smile

Repair customers . . . . . Competent technicians

in short, customers want service companies to play fair. When dont play fair

customers show resentment and mistrust.

Companies have a significant opportunity to improve their service reputations

simply by delivering a higher percentage of the time the basic service

customers think they are buy.


24/26

When I'm a Customer, I Want . . .

Honesty

To be informed of the options

Feedback

Not to be passed around

Professional service

To be listened to (and heard)

Empathy

Dedicated attention

Respect

To be taken seriously

Knowledgeable help

Competent, efficient service

Friendliness

Anticipation of my needs

To be kept informed

Explanations in my terms

Follow-through

Basic courtesies


25/26

Case Analysis

Scandinavian Airline System

1. To improve profitability, SAS was forced to reduce its workforce by over 1000 employees. How

might such reductions affect the ideal, desired and adequate levels of service? Can the company

adjust consumers zones of tolerance in order to cope with staff reductions?

2. Identify the antecedent expectations of people intending to book airline flights. What factors play

an important role in their decisions? How can SAS improve its firm-related factors in order to

attract customers?


26/26

THANK YOU

Documents

Managing the Service Quality