Models of service quality
The evolution of
service quality




Disconfirmation of expectations
The Nordic model
The three component model
The Gaps model of service quality &
SERVQUAL
Disconfirmation of expectations (Oliver 1980)
Frequently Asked Questions
About Customer Expectations

Should a company aim to ‘delight’ the customer?

How does a company exceed customer service expectations?

Do customer service expectations continually escalate?

Is it a better strategy to under-promise and over-deliver?

How does a service company stay ahead of competition in meeting
customer expectations?
The Nordic model
(Gronroos 1990)




Represents the service experience on the basis of
functional and technical elements
Technical quality refers to what the customer
receives from the service
Functional quality refers to service delivery
Model emphasises companies must be careful what
they promise
The three-component model Rust &
Oliver (1994)
Source: Rust & Oliver, 1994. p. 11
Customer expectations of service


Types of expectations customers hold for
service performance
Sources of customer expectations
Possible Levels of Customer Expectations
Dual customer expectations levels and the
Zone of Tolerance
Desired Service
Zone of
Tolerance
Adequate Service
Zones of Tolerance for Different
Service Dimensions
Desired Service
Level
of
Expectation
Zone
of
Tolerance
Desired Service
Adequate Service
Zone
of
Tolerance
Adequate Service
Reliability
Tangibles
Source: L. L. Berry, A. Parasuraman, and V. A. Zeithaml, “Ten Lessons for Improving Service Quality,”
Marketing Science Institute, Report No. 93-104 (May 1993).
Factors That Influence Desired Service
Lasting Service
Intensifiers
Desired Service
Personal Needs
Zone
of
Tolerance
Adequate Service
Factors That Influence Adequate Service
Temporary Service
Intensifiers
Desired Service
Perceived Service
Alternatives
Self-Perceived
Service Role
Situational
Factors
Zone
of
Tolerance
Adequate Service
Predicted
Service
Factors That Influence Desired
and Predicted Service
Explicit Service
Promises
Implicit Service
Promises
Word-of-Mouth
Desired Service
Zone
of
Tolerance
Adequate Service
Past Experience
Predicted
Service
Customer perceptions




Factors which influence consumers’
perceptions
Factors which influence satisfaction
Dimensions of service quality
Service encounters
Customer Perceptions of Quality and
Customer Satisfaction
Factors Influencing
Customer Satisfaction
 Product/service
quality
 Specific product or service features
 Consumer emotions
 Attributions for service success or failure
Factors Influencing
Customer Satisfaction




Perceptions of equity or fairness
Other consumers, family members, and
coworkers
Price
Personal factors


the customer’s mood or emotional state
situational factors
Outcomes of
Customer Satisfaction
 Increased
customer retention
 Positive word-of-mouth communications
 Increased revenues
Service Quality
 The
customer’s judgment of overall excellence
of the service provided in relation to the quality
that was expected.
 Service quality assessments are formed on
judgments of:
outcome quality
 interaction quality
 physical environment quality

The SERVQUAL dimensions
– Perceived Service Quality
(Parasuraman, Zeithaml & Berry 1988)




Reliability (dependability, accurate performance)
Assurance (competence, courtesy, credibility & security)
Tangibles (appearance of physical elements)
Empathy (easy access, good communications & customer
understanding)

Responsiveness (promptness & helpfulness)
The Five Dimensions of
Service Quality
Reliability
Ability to perform the promised service
dependably and accurately.
Assurance
Knowledge and courtesy of employees
and their ability to inspire trust and
confidence.
Tangibles
Physical facilities, equipment, and
appearance of personnel.
Empathy
Caring, individualized attention the firm
provides its customers.
Responsiveness
Willingness to help customers and
provide prompt service.
Exercise to
Identify Service Attributes
In groups of five, choose a services industry and spend 10 minutes
brainstorming specific requirements of customers in each of the five
service quality dimensions. Be certain the requirements reflect the
customer’s point of view.
Reliability:
Assurance:
Tangibles:
Empathy:
Responsiveness:
RELIABILITY
SERVQUAL Attributes
Providing service as promised
Dependability in handling customers’
service problems
Performing services right the first time
Providing services at the promised time
Maintaining error-free records





EMPATHY



RESPONSIVENESS




Keeping customers informed as to
when services will be performed
Prompt service to customers
Willingness to help customers
Readiness to respond to customers’
requests
ASSURANCE




Employees who instill confidence in
customers
Making customers feel safe in their
transactions
Employees who are consistently courteous
Employees who have the knowledge to
answer customer questions


Giving customers individual attention
Employees who deal with customers in a
caring fashion
Having the customer’s best interest at heart
Employees who understand the needs of
their customers
Convenient business hours
TANGIBLES




Modern equipment
Visually appealing facilities
Employees who have a neat,
professional appearance
Visually appealing materials associated
with the service
The Service Encounter
 is
the “moment of truth”
 occurs any time the customer interacts with
the firm
 can potentially be critical in determining
customer satisfaction and loyalty
 types of encounters:

 is
remote encounters, phone encounters, face-to-face encounters
an opportunity to:
build trust
 reinforce quality
 build brand identity
 increase loyalty

A Service Encounter Cascade
for a Hotel Visit
Check-In
Bellboy Takes to Room
Restaurant Meal
Request Wake-Up Call
Checkout
A Service Encounter
Cascade for an Industrial Purchase
Sales Call
Delivery and Installation
Servicing
Ordering Supplies
Billing
Critical Service Encounters Research
 GOAL:

understanding actual events and behaviors that
cause customer dis/satisfaction in service
encounters
 METHOD:

Critical Incident Technique
 DATA:

stories from customers and employees
 OUTPUT:

identification of themes underlying satisfaction and
dissatisfaction with service encounters
Sample Questions for Critical Incidents
Technique Study

Think of a time when, as a customer, you had a particularly satisfying
(dissatisfying) interaction with an employee of ______________.

When did the incident happen?

What specific circumstances led up to this situation?

Exactly what was said and done?

What resulted that made you feel the interaction was satisfying
(dissatisfying)?
Common Themes in Critical
Service Encounters Research
Recovery:
Adaptability:
employee response
to service delivery
system failure
employee response
to customer needs
and requests
Coping:
Spontaneity:
employee response
to problem customers
unprompted and
unsolicited employee
actions and attitudes
Recovery
DO
 Acknowledge
problem
 Explain causes
 Apologize
 Compensate/upgrade
 Lay out options
 Take responsibility
DON’T
 Ignore
customer
 Blame customer
 Leave customer to fend
for him/herself
 Downgrade
 Act as if nothing is
wrong
 “Pass the buck”
Adaptability
DO
 Recognize
the
seriousness of the need
 Acknowledge
 Anticipate
 Attempt to accommodate
 Adjust the system
 Explain rules/policies
 Take responsibility
DON’T
 Ignore
 Promise,
but fail to follow
through
 Show unwillingness to try
 Embarrass the customer
 Laugh at the customer
 Avoid responsibility
 “Pass the buck”
Spontaneity
DON’T
DO
 Take
time
 Be attentive
 Anticipate needs
 Listen
 Provide information
 Show empathy
 Exhibit
impatience
 Ignore
 Yell/laugh/swear
 Steal
from customers
 Discriminate
Coping
DON’T
DO
 Listen
 Try
to accommodate
 Explain
 Let go of the customer
 Take
customer’s
dissatisfaction
personally
 Let customer’s
dissatisfaction affect
others
Evidence of Service from the
Customer’s Point of View
 Operational flow of
activities
People



Contact employees
Customer him/herself
Other customers
 Steps in process
 Flexibility vs.
standard
 Technology vs.
human
Process
Physical
Evidence
 Tangible
communication
 Servicescape
 Guarantees
 Technology
Source: From “Managing the Evidence of Service” by M. J. Bitner from The Service Quality Handbook,
eds. E. E. Scheuing and W. F. Christopher (1993), pp. 358-70.
 Website
UNDERSTANDING
CUSTOMER
REQUIREMENTS
Provider Gap 1
CUSTOMER
Expected
Service
COMPANY
Listening
Gap
Company
Perceptions of
Consumer
Expectations
Part 3 Opener
Listening to customers through market
research






Using Marketing Research to Understand
Customer Expectations
Elements in an Effective Services Marketing
Research Program
Analyzing and Interpreting Marketing Research
Findings
Model Services Marketing Research Programs
Using Marketing Research Information
Upward Communication
Objectives for Chapter 6:
Listening to Customers through Research
 Present
the types of and guidelines for
marketing research in services.
 Show
how marketing research information can
and should be used for services.
 Describe
the strategies by which companies
can facilitate interaction and communication
between management and customers.
 Present
ways that companies can and do
Common Research Objectives
for Services
 To
discover customer requirements or expectations
for service.
 To monitor and track service performance.
 To assess overall company performance compared
with that of competition.
 To assess gaps between customer expectations
and perceptions.
 To identify dissatisfied customers, so that service
recovery can be attempted.
 To gauge effectiveness of changes in service
delivery.
 To appraise the service performance of individuals
and teams for evaluation, recognition, and rewards.
 To determine customer expectations for a new
Criteria for an Effective
Service Research Program
 Includes
both qualitative and quantitative
research
 Includes both expectations and perceptions of
customers
 Balances the cost of the research and the
value of the information
 Includes statistical validity when necessary
 Measures priorities or importance of attributes
 Occurs with appropriate frequency
 Includes measures of loyalty, behavioral
Stages in the Research Process
 Stage
1 : Define Problem
 Stage
2 : Develop Measurement Strategy
 Stage
3 : Implement Research Program
 Stage
4 : Collect and Tabulate Data
 Stage
5 : Interpret and Analyze Findings
 Stage
6 : Report Findings
Portfolio of Services Research
Research Objective
Type of Research
Identify dissatisfied customers to attempt recovery;
identify most common categories of service failure for
remedial action
Customer Complaint
Solicitation
Assess company’s service performance compared to
competitors; identify service-improvement priorities;
track service improvement over time
“Relationship” Surveys
Obtain customer feedback while service experience is
fresh; act on feedback quickly if negative patterns develop
Post-Transaction Surveys
Use as input for quantitative surveys; provide a forum
for customers to suggest service-improvement ideas
Customer Focus Groups
Measure individual employee service behaviors for use
in coaching, training, performance evaluation,
recognition and rewards; identify systemic strengths
and weaknesses in service
“Mystery Shopping” of
Service Providers
Measure internal service quality; identify employeeperceived obstacles to improve service; track
employee morale and attitudes
Employee Surveys
Determine the reasons why customers defect
Lost Customer Research
Forecast future expectations of customers; develop
and test new service ideas
Future Expectations Research