Quality of Service Josef Spurný PA181 Services - Systems, Modeling and Execution How good your service is? • •When there is some service, how good this service is? Learning Objectives q Recognize the importance of service quality q Describe the five dimensions of service quality q Develop a service measurement survey q Service quality gap identification q Closing the gap to improve service quality Why is Service Quality Important? q SQ positively correlates with organization‘s financial performance q q Dissatisfied customers are likely to share their experience with more than 3 other people q q Six times more people hear about negative service experience than about positive one q q Customers‘ service expectations are constantly rising, while their tolerance for poor service is declining q Customers often lack specialized knowledge; therefore, it is not easy for them to assess IT service quality, even after delivery • communication with a customer is essential! (T-Shaped profile) q IT Service Quality is a mediating factor between communication and buildup of trust with the customer Source: Park, Lee, Lee & Truex (2012). Exploring the impact of communication effectiveness on service quality, trust and relationship commitment in IT services. Comparison in real life Comparison in real life 3rd Party Authority = Objective comparison Own comparison criteria = marketing / persuasion Service Quality or Quality of Service Scope of Service Quality q View quality from five perspectives • Content – are standard procedures being followed? • Process – is the sequence of events in the service process appropriate? • Structure – are the physical facilities and organizational design adequate for the service? • Outcome – what change in the status has the service caused? Is the consumer satisfied? • Impact – what is the long-term effect of the service on the consumer? • Information Systems Success Theory, DeLone and McLean (2002) Position of Service Quality Data quality – format, accuracy, reliability, completeness… SW engineering [Focus of this lecture] Evaluation of Service Quality •Metrics/Criteria/Dimensions SERVQUAL: The Five Key Service Dimensions Dimension No. of Items in Questionnaire Definition Reliability 5 The ability to perform the promised service dependably and accurately Assurance 5 The knowledge and courtesy of employees and their ability to convey trust and confidence Tangibles 4 The appearance of physical facilities, equipment, personnel and communication materials Empathy 5 The provision of caring, individualized attention to customer Responsiveness 4 The willingness to help customers and to provide prompt service Source: Based on Parasuraman, A, Ziethaml, V. and Berry, L.L., "SERVQUAL: A Multiple- Item Scale for Measuring Consumer Perceptions of Service Quality' Journal of Retailing, Vol. 62, no. 1, 1988 SERVQUAL Model Dimensions of Service Quality q Reliability: •Perform promised service dependably and accurately. •Example: receive mail at same time each day. q Assurance: •Ability to convey trust and confidence. •Give a feeling that customer’s best interest is in your heart •Example: being polite and showing respect for customer. • q • Dimensions of Service Quality q Tangibles: •Physical facilities and facilitating goods. •Example: cleanliness. q Empathy: •Ability to be approachable, caring, understanding and relating with customer needs. •Example: being a good listener. q Responsiveness: •Willingness to help customers promptly. •Example: avoid keeping customers waiting for no apparent reason. •Quick recovery if service failure occurs • §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 §Keeping customers informed as to when services will be performed §Prompt service to customers §Willingness to help customers §Readiness to respond to customers’ requests RELIABILITY RESPONSIVENESS §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 ASSURANCE §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 EMPATHY §Modern equipment §Visually appealing facilities §Employees who have a neat, professional appearance §Visually appealing materials associated with the service TANGIBLES SERVQUAL Attributes 17 SERVQUAL Example for University Services SurveyLegend ® | What are Likert-Type Scale Responses | Scale definition, Research methods, Coding summer camp Likert scale An example of a 5-point and 7-point Likert Scale. | Download Scientific Diagram RATER – Tool for SERVQUAL Remarks for Service Quality q We can assess service quality from the customer’s perspective q q We can track customer expectations and perceptions over time and the discrepancies between them q q We can compare a set of Servqual scores against those of competitors or best practice examples Word of mouth Personal needs Past experience Expected service Perceived service Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles Service Quality Assessment 1. Expectations exceeded ESPS (Unacceptable quality) Service Quality Assessment Conceptual Model of Service Quality Word-of-mouth Communications Personal Needs Past experience Expected Service Perceived Service Service Delivery External Communications To Customers Service Quality Specs Management Perceptions of Customer Expectations CUSTOMER PROVIDER Gap 1 Gap 2 Gap 3 Gap 4 Gap 5 What are the Servqual Gaps? •Gap 1: The difference between management perceptions of what customers expect and what customers really expect • •Gap 2: The difference between management perceptions and service quality specifications - the standards gap What are the Servqual Gaps? •Gap 3: The difference between service quality specifications and actual service delivery - are standards consistently met? • •Gap 4: The difference between service delivery and what is communicated externally - are promises made consistently fulfilled? What are the Servqual Gaps? •Gap 5: The difference between what customers expect of a service and what they actually receive • •expectations are made up of past experience, word-of-mouth and needs/wants of customers • •measurement is on the basis of two sets of statements in groups according to the five key service dimensions Problems with Gaps in Service Quality ØGap1: Market research gap üManagement may not understand how customers formulate their expectations from past experience, advertising, communication with friends vImprove market research vFoster better communication between employees and its frontline employees vReduce the number of levels of management that distance the customer Ø ØGap 2: Design gap üManagement is unable to formulate target level of service to meet customer expectations and translate them to specifications vSetting goals and standardizing service delivery tasks can close the gap Problems with Gaps in Service Quality ØGap 3: Conformance gap üActual delivery of service cannot meet the specifications set by management vLack of teamwork vPoor employee selection vInadequate training vInappropriate job design Ø ØGap 4: Communication gap üDiscrepancy between service delivery and external communication vExaggerated promises in advertising vLack of information provided to contact personnel to give customers • Problems with Gaps in Service Quality ØGap 5: Customer expectations and perceptions gap üCustomer satisfaction depends on minimizing the four gaps that are associated with service delivery • Ø Monitoring Service Quality time servqual servqual Improvement A D I T Conclusion ü Recognize the importance of service quality ü Describe the five dimensions of service quality ü Develop a service measurement survey ü Service quality gap identification ü Closing the gap to improve service quality •