How can we improve service quality?

DESIGNING & MANAGING SERVICES

The service quality of a firm is tested at each service encounter.

If the employees are bored, cannot answer simple questions, or are visiting each other while customers are waiting, customers will

avoid doing business there again.

Factors Leading to

Customer-Switching

Behaviour

Pricing -high price -unfair pricing -deceptive pricing

Core Service Failure

-service mistakes -billing errors -service catastrophe

Service encounter failures

-Uncaring -Impolite -Unknowledgable

Inconvenience -location/hours -wait for appointment -wait for service

Response to Service Failure

-negative response -no response -reluctant response

Involuntary Switching

-customer moved -provider closed

Ethical problems -cheat -hard sell -unsafe

Competition -found better service

Managing Customer

Expectations

There are 5 gaps that cause unsuccessful delivery

1) Gap between consumer expectation and management perception.

2) Gap between management perception and service-quality perception.

5) Gap between perceived service and expected service.

3) Gap between service-quality specifications and service delivery.

4) Gap between service delivery and external communication.

-Providing service as promised -Dependability in handling problems -Performing services right first time -Maintaining error-free records -Providing services at promised time

Reliability

-Keeping customer informed as to when services will be performed -Prompt service -Willingness to help customers -Readiness to respond to customers’ requests.

Responsiveness

-Employees who install confidence in customers -Making customers feel safe in their transactions -Employees who are consistently courteous

Assurance

-Giving customers individual attention -Employees who deal with customers in caring fashion -Having customers’ best interests at heart -Employees who understand the needs of their customers

Empathy

-Modern equipment -Visually appealing facilities -Employees who have a neat, professional appearance -Visually appealing materials associated with the service

Tangibles

Created by Anngad Singh, Delhi Technological University,

during an internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com