1 2 SERVICE QUALITY Presented by Faisal Hayat

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2 SERVICE QUALITY Presented by: Faisal Hayat and Muhammad Zia R. #: 01, 04 BS. c (Hons. ) Food Science & Technology Institute Of Food Science & Nutrition University Of Sargodha, Sargodha

3 CONTENTS q. Definition of quality q. Definition of service quality management q. Customer’s requirements q. Factors influencing customers satisfaction q. Types of customers q. Ten service quality principle q. Objective of service quality

4 CONTENTS…continue q Dimensions of service quality q Universal processes of service quality q Ultimate purpose of service quality q Service quality assessment q Difference between(bad service, good service and excellent service) q Service quality gap model q Classification of service failure q Service quality recovery q Service quality inspection

5 QUALITY? q. Definition v The processes by which the products and services are made or offered throughout an organization, in order to improve the products and services which are sold to customers v Voice of customers

6 SERVICE? q. Intangible commodity Service Ability to provide a level of care to customers which meets or exceeds their expectation q. It involves their v Needs and v Demands

7 SERVICE QUALITY? Service quality Customer’s judgment of overall excellence of the service provided in relation to the quality that was expected q. Perception v. It is the way a person interprets reality or quality

8 SERVICE QUALITY MANAGEMENT q. Definition “Continuously meeting agreed customer requirements at the lowest cost, by releasing the potential of all employees. ”

9 CUSTOMER REQUIREMENTS v. Speed of delivery v. Conformance to specifications v. Reliability of service v. Responsiveness to queries v. Low Cost v. Consistency of product and service

10 Factors Influencing Customer Satisfaction q. Product quality q. Service quality q. Price q. Specific product features q. Personal factors q. Situational factors

11 TYPES OF CUSTOMERS q. Two q 1. types External customers v. Outside q 2. of organization Internal customers v. Within the organization

12 SERVICE QUALITY PRINCIPLES 1. Customer focus 2. Leadership 3. Involement of people 4. Process approach 5. System approach to management 6. Approach to decision making 7. Mutual beneficial suppliar relationship 8. Continual improvement

13 DIMENSIONS OF SERVICE QUALITY Reliability Responsiveness Assurance Empathy Tangibles Service Quality

14 DIMENSIONS OF SERVICE QUALITY q. Reliability v. Dependability Get it right the first time! v. Accuracy ü Provide services at promised time dependably and accurately ü Perform services right the first time Example: receive mail at same time each day

15 DIMENSIONS OF SERVICE QUALITY q. Responsiveness q. Promptness q. Helpfulness ü Willingness ü Readiness to help customers promptly to respond to customer’s request Example: avoid keeping customer’s waiting. and on time!

16 DIMENSIONS OF SERVICE QUALITY q. Assurance v. Credibility v. Security ü Ability ü Give I feel safe to convey trust and confidence a feeling that customers best interest is in your heart Example: being polite and showing respect for customer

17 DIMENSIONS OF SERVICE QUALITY q. Empathy v. Good communication v. Customer understanding v. Personalised attention They listen to me ü Ability to be approachable, caring, understanding and relating with customer needs Example: being a good listener

18 DIMENSIONS OF SERVICE QUALITY q. Tangibles v. Physical evidence People look smart ü Appearance of physical communication material. Example: cleanliness of employee facilities, Equipment and

19 Relative Importance of Service Dimensions When Respondents Allocate 100 Points RELIABILITY 32% TANGIBLES 11% RESPONSIVENESS EMPATHY 16% 22% ASSURANCE 19%

20 UNIVERSAL PROCESSES OF SERVICE QUALITY q Service quality planning v Setting q goals for customer delivery Service quality control v Controlling q Service quality management v Involving q service flows by measuring for success the employees Service quality improvement v Consistent improvement of service/product

21 PURPOSE OF SERVICE QUALITY Improved Service Performance Improved Customer Satisfaction Increased Profitability Improved Customer Retention Increased Market Share

22 OBJECTIVES OF SERVICE QUALITY q. To meet assessed needs q. To concentrate on service users ¨To work for the complete dignity & wellbeing of service users. q. To ensure that we are fit to provide service. q. To provide the highest quality comprehensive service to all customers q. To work with customers to enhance the quality of their daily life

23 SERVICE QUALITY ASSESSMENT Word of mouth Personal needs Past experience Service Quality Assessment Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles Expected service Perceived service 1. Expectations not met ES>PS (Unacceptable quality) 2. Expectations met ES~PS (Satisfactory quality) 3. Expectations exceeded ES<PS (Quality surprise/excellent)

24 DIFFERENCE BETWEEN ……… Unacceptable quality Satisfactory quality Surprise Quality Bad service Good service Excellent service

25 Bad Service is when customer gets treatment which is less than his/her expectations ES>PS (Unacceptable service quality) Customer Expectation What Customer receives

26 Good Service Good service is when the customer gets treatment that meets his/her expectations ES~PS (Satisfactory service quality) Customer Expectation What Customer receives

27 Excellent Service When the customer gets a little more than what he/she expected, Good Service becomes Excellent Service ES<PS (Quality surprise) + Customer Expectation What Customer receives

28 DETERMINANTS OF PERCEIVED SERVICE QUALITY Dimensions of service quality 1. Access 2. Communication 3. Competence 4. Courtesy 5. Credibility 6. Reliability 7. Responsiveness 8. Security 9. Tangibles 10. Understanding/knowing the customer Word of Mouth Personal Needs Expected Service Quality Gap Perceived Service Past Experience External Communication to Customers Perceived Service Quality

29 SERVICE QUALITY GAP MODEL GAP model is a tool to diagnose problems in service design and delivery. Service gap is the most critical

30 GAP 1: MARKET RESEARCH GAP Customer’s expectations Reasons for provider gap I q Inadequate marketing research orientation q Lack of upward communication q Insufficient relationship focus q Inadequate service recovery Company’s perceptions of customer expectations

31 SOLUTION OF GAP 1 ¨Learn what customers expect ¨Increase direct interactions between managers and customers ¨Improve upward communications ¨Act on information and insights ¨Improve ¨Reduce market research the number of levels of management that distance the customer listen to customers

32 GAP 2: DESIGN GAP Translation of perceptions into service quality specifications Reasons for provider gap 2 q Poor service design q Absence of customer-defined service standards q Inappropriate physical evidence and services q Inadequate standardization of tasks Management perceptions of customer expectations

33 SOLUTION OF GAP 2 q Establish the right service quality standards q Top management commitment to providing service quality q Establish challenging and realistic service Service quality award quality goals q Train managers to be service quality leaders q Develop new ways to deliver service quality q Measure performance of service standards and provide regular feedback q Setting goals and standardizing service delivery tasks

34 GAP 3: CONFORMANCE GAP Customer-driven service designs and standards Reasons for provider gap 3 q q q Poor human resource policies Lack of teamwork Poor employee Poor technology Failure to match supply and demand Problems with service Service delivery

35 SOLUTION OF GAP 3 ü Actual delivery of service cannot meet the specifications set by management v. Ensure that service performance meets standards Can I take v. Attract the best employees your order? v. Select the right employees v. Develop and support employees v. Train employees v. Provide appropriate technology & equipment v. Encourage and build teamwork v. Internal marketing

36 SOLUTION OF GAP 3…continue q Retain good employees You are a v Measure and reward service quality achievements v Develop equitable and simple reward systems Star Service Provider

37 GAP 4: COMMUNICATION GAP External communications to consumers Reasons for provider gap 4 q Lack of integration of marketing communications q Inadequate management of customer expectations q Overpromising q Inadequate communications Service delivery

38 SOLUTION OF GAP 4 q Ensure that delivery matches promises q Lack of information provided by contact personnel q Gain communications between sales, operations and customers Why do we always have q Internal marketing programs to wait? q In advertising, focus on service characteristics that are important to customers q Reality’ advertising v Real employees, real customers, real situations

39 GAP 5: CUSTOMER EXPECTATIONS AND PERCEPTIONS GAP Customer expectations Reasons for provider gap 5 q Not knowing what customers expect q Not selecting the right service standards and designs q Not delivering to service standards q Not matching performance to promised Customer perceptions

40 SOLUTION OF GAP 5 q Customer satisfaction is difficult but not impossible q Surveys of customers q Resolve customer complaints q Employee surveys q Focus on a special groups of customers q Competitive market surveys – benchmark q Try to measure the gap between expected service and perceived service q Customer satisfaction depends on minimizing the four gaps that are associated with service delivery

41 CLASSIFICATION OF SERVICE FAILURES Server Errors Doing work incorrectly Doing work not required Doing work in the wrong order Doing work too slowly Customer Errors Failure to understand role Failure to engage in correct service Failure to remember steps in process Failure to listen to customer Failure to follow system flow Failure to react appropriately Failure to follow instructions Failure to clean facilities Failure to learn from experience Failure to wear clean uniform Failure to adjust expectations

42 SERVICE QUALITY RECOVERY Ø Disasters can be turned into loyal customers by proper and rapid service recovery Ø Frontline workers, therefore, need to be properly trained ¨ Measure the costs ¨ Break ¨ Act the silence and listen closely for complaints fast ¨ Empower ¨ Train the front line employees

43 SERVICE QUALITY INSPECTION ØOpinion Ø 100 surveys - about quality of service percent inspection - every unit is checked ØFirst article inspection - usually after the process is set up ØAcceptance sampling - based on statistical sampling table, a random or stratified sample from a larger lot ØIf the sample is within the acceptable quality level, the lot passes inspection

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