Transcript Service Quality

Service Quality
Quality
‘There is no limit to the
quality that can be
produced, even in the most
menial job’
Dave Thomas quoted in D Bone and
R Griggs, 1989, Quality at Work,
London: Kogan Page.
Quality
‘Quality is a perfection standard
to be practised at all times; it is a
continual effort to improve’
D. Bone and R . Griggs, 1989, Quality at
Work, London: Kogan Page, p. 13.
Defining Service Quality
“ A service industry is
vulnerable at its weakest
point. If you go to a
restaurant the food can be
magnificent but if the service
is lousy the chances are you
will never go back again.
That’s the crux of it.”
(G. Cuthbert, Head of Sales British Airways)
Berry’s Quality Factors
for Service Industries (1985)
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Reliability - Punctual
Responsiveness - Speed of service
Competence - Skilled personnel
Access - Easy to find or obtain
Courtesy - Polite and helpful
Communication - Clear, sufficient detail
Credibility - Trust and dependability
Security - Confidentiality, safety
Understanding - Meeting customers
individual needs
knowing the customer
Tangibles - Pleasing appearance etc
Perceptions of Service Quality
“Customers perceptions of service
quality results from a comparison of
their expectations before they receive
service to their actual experience of the
service.”
(Berry 1985)
Quality perceptions are derived from the
service process as well as from the
service outcomes.
Service quality is of two types, normal
and exceptional.
The Concept of the Q-Match
The Q-Match idea is a quick and
useful way to compare what you
do (and what others do) to a preset standard
Diane Bone & Rick Griggs (1989) “Quality at Work”, London, Kogan Page
Q-Match says that;
Quality = Meet
Agree
Terms and
Changes
Thoughts on Service Quality
“Service companies waste
anywhere from 30 - 35% of their
operating cost by not doing things
right”
(Hutton 1988)
“Good Quality may not always
save money, but poor quality
always costs and usually wastes
money"
(Carruthers & Holland 1991)
Moment of Truth
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Each customer contact is called
a moment of truth.
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You have the ability to either
satisfy or dissatisfy them when
you contact them.
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A service recovery is satisfying a
previously dissatisfied customer
and making them a loyal
customer.
Dimensions of Service Quality
Five principle dimensions that customers use
to judge service quality. These dimensions
are listed in order of declining relative
importance to customers.
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Service Quality
Reliability
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Dependability
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Accuracy
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Reliability
Responsiveness
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Promptness of service
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Service failure
Service Quality
Assurance
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Knowledge and courtesy
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Competence
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Politeness and respect
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Effective communication
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Server attitude
Service Quality
Empathy
·
Caring individualised attention
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Approachability
·
Sense of security
·
Understanding customers needs
Tangibles
·
Physical facilities
Kano’s Model of
Customer Requirements
Customer
Satisfaction
Normal
requirements
Exciting
requirements
Don’t fulfil
expectations
Do fulfil
expectations
Expected
requirements
Customer
Dissatisfaction
Unconditional Service Guarantee
Customer View
Service guarantees have five importance features
1.
Unconditional
2.
Easy to understand and communicate
3.
Meaningful
4.
Easy to invoke
5.
Easy to collect
Unconditional Service Guarantee
Management View
A service guarantee promotes organisation effectiveness
in several ways:
1. Focuses on customers
2. Sets clear standards
3. Guarantees feedback
4. Promotes an understanding of the service delivery
system
5. Builds customer loyalty
Customer Satisfaction
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All customers want to be
satisfied.
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Customer loyalty is only due to
the lack of a better alternative
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Giving customers some extra
value will delight them by
exceeding their expectations
and insure their return
Expressing Dissatisfaction
Public Action
Action
Seek redress directly from
the firm
Take legal action
Dissatisfaction
occurs
Complaint to business, private,
or governmental agencies
Private Action
Stop buying the product or
boycott the seller
No Action
Warn friends about the product
and /or seller
Customer Feedback
& Word of Mouth
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The average business only hears
from 4% of their customers who are
dissatisfied with their products or
services. Of the 96% who do not
bother to complain, 25% of them
have serious problems.
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The 4% complainers are more likely
to stay with the supplier than are the
96% non-complainers.
Customer Feedback
& Word of Mouth
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About 60% of the complainers would
stay as customers if their problem
was resolved and 95% would stay if
the problem was resolved quickly.
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A dissatisfied customer will tell
between 10 and 20 other people
about their problem.
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A customer who has had a problem
resolved by a company will tell about
5 people about their situation.
Number of people told based on
level of Dissatisfaction
Average number of people told
30
25
20
15
10
5
0
Slight
Annoyed
dissatisfaction
Very
annoyed
Extremely Absolutely
annoyed
furious
Action Taken Based on the
Level of Dissatisfaction
Percent of customers that take action
100
Tell friends
80
Complain
60
Make a fuses
40
Not use again
Dissuade others
20
Complain against
0
Slightly
Annoyed
dissatisfied
Very
annoyed
Extremely Absolutely
annoyed
furious