Customer Relationship

3rd Module

• Service Quality: Concept of Quality, Meaningand Definition of Service Quality

• Factors influencing customer expectation andperception

• Types of Service Quality, Service Quality Dimensions

• Service Quality Gaps• Measuring Service Quality• Service Quality measurement Scales

Service Quality SERVICE

Service is something which is intangible, heterogeneous, perishable and inseparable.

QUALITY

Something which has Zero defects–doing it right the first time.

Issues in Service Quality

• Evaluation of service quality is more difficultas compared to goods quality.

• Service quality is comparison between expectations and performance.

• Service quality evaluation involve outcomes and processes.

Definition• Parasuraman describes Service quality as

“the ability of an organization to meet or exceed customer’s expectations.”

• Lloyd-Walker and Chueng said that “service quality is considered not only to meet but to exceed customer expectations, and should include a continuous improvement process.”

Types of Service Quality

Objective Service Quality

Concrete measurable conformity ofaworking with

resultthe

previous definedbenefits.

Subjective Service Quality

Customers’ perceived conformity of the working result with the customer ‘s original imagination of the service.

Dimensions f Service Quality

• As per Parasuraman (1985) 10 determinantswere identified which are as follows:

Service Quality Dimensions

Reliability

Tangibles

Understanding Security Credibility Communication

Courtesy

AccessCompetenceResponsiveness

Parasuraman further modified the list in 1988

Customer Relationship Management By: Mayank Pandey

Dimensions of Service

Quality

Assurance

Tangibles

Responsiveness

Empathy

Reliability

Service Quality

Gap

Customer Relationship Management By: Mayank Pandey

Service Quality Gap• There are seven major gaps in the service quality concept,

which are shown in Figure above·• Gap1: Customers’ expectations versus management

perceptions: as a result of the lack of a marketing research orientation, inadequate upward communication and too many layers of management.

• Gap2: Management perceptions versus service specifications: as a result of inadequate commitment to service quality, a perception of unfeasibility, inadequate task standardisation and an absence of goal setting.

• Gap3: Service specifications versus service delivery: as a result of role ambiguity and conflict, poor employee-job fit and 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 and propensity to over-promise.

• Gap5: The discrepancy between customer expectations and their perceptions of the service delivered: as a result of the influences exerted from the customer side and the shortfalls (gaps) on the part of the service provider. In this case, customer expectations are influenced by theextent of personal needs, word of mouthrecommendation and past service experiences.

• Gap6: The discrepancy between customer expectations and employees’ perceptions: as a result of the differences in the understanding of customer expectations by front- line service providers.

• Gap7: The discrepancy between employee’s perceptions and management perceptions: as a result of the differences in the understanding of customer expectations between managers and service providers.

Measure For Bridging Service Quality Gap

Gap1: Customers’ expectations versusmanagement perceptions

• Have better understanding of customers’ need and expectations.

• By facilitating and increasing directinteraction managers and customers.

• By improving upward communication .• By using and turning insights into action.

Gap2: Management perceptions versus service

specifications:

Customer Relationship Management By: Mayank Pandey

• By insuring that top management displays ongoing commitments.

• By getting the middle management to set, communicate and reinforce customer oriented service standard.

• By training managers.• By standardizing repetitive work task to ensure consistency

and reliability.• By establishing clear service quality goal.• By clarifying to employees to which tasks have biggest

impact on quality.• Measuring performance.• Rewarding managers and employees for attaining quality

goals.

Gap3: Service specifications versus service

delivery:

Customer Relationship Management By: Mayank Pandey

• By clarifying employees goal.• By ensuring that all employee understand how their job

contribute to customer satisfaction.• By matching employees to job.• By providing employees with the technical training.• By developing innovative recruitment and retaining

method.• By teaching employees about customers’ expectations.• By eliminating role conflicts among employees.• By training employees in priority setting and time

management.• By building teamwork• By treating customer as partial employee and clarifying their

role in service delivery.

Gap4: Service delivery versus external

communication:• By seeking input from operations persons when new

advertisement program are being created.• By developing advertisements that feature real employee

performing their job.• By allowing service provider to preview the

advertisement.• By getting sales staff to involve operation staff in face-to-

face meeting with the customer.• By getting internal educational, motivational and advertising

campaigns.• By ensuring that consistent standards of service are

delivered across multiple locations.

Gap5: The discrepancy between customer

expectations and their perceptions of the

service delivered:• By Keeping customer informed.• By briefing the customer at the end of service delivery.• By offering tangibles evidence to the customers to assure

them.• By taking customer into confidence about the service

beingoffered.

Gap6: The discrepancy between customerexpectations and employees’ perceptions:

Gap7: The discrepancy between employee’s perceptions and management perceptions:

Service Quality Measurement Scale

• Proposed by Parasuraman:• Identified 22 variables:• 22 Variables of Service Quality Measurement

Scale1. Modern Looking Equipments2. Physical Facility is visually appealing3. Employees are dressed and neat appearing4. Material and tolls are visually appealing5. Promise is always kept6. Show great concern for solving problem7. Perform better service right from the first time

• Provide service at the time agreed on• Tell the exact time of service delivery• Error free records• Provide prompt service to the customers.• Employees always willing to help the customers• Employee never be busy to help the customer• Impressive behaviour of the employees• Customers feeling about safety• Employees friendly and courteous nature• Knowledge to answer question of the customer• Individual attention on customer• Opening and closing hours• Employees personal attention on each other• Customers best interest at heart• Understanding needs of their customers

Customer Relationship Management By: Mayank Pandey

Mayank Pandey