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Service Quality. Learning Objectives. Describe the five dimensions of service quality. Use the service quality gap model to diagnose quality problems. Illustrate how Taguchi methods and poka-yoke methods are applied to quality design. Perform service quality function deployment.

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learning objectives
Learning Objectives
  • Describe the five dimensions of service quality.
  • Use the service quality gap model to diagnose quality problems.
  • Illustrate how Taguchi methods and poka-yoke methods are applied to quality design.
  • Perform service quality function deployment.
  • Construct a statistical process control chart.
  • Develop unconditional service guarantees.
  • Plan for service recovery.
  • Perform a walk-through audit (WtA)
moments of truth
Moments of Truth
  • Each customer contact is called a moment of truth.
  • You have the ability to either satisfy or dissatisfy them when you contact them.
  • A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.
dimensions of service quality
Dimensions of Service Quality
  • Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day.
  • Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.
dimensions of service quality1
Dimensions of Service Quality
  • Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer.
  • Empathy: Ability to be approachable. Example: being a good listener.
  • Tangibles: Physical facilities and facilitating goods. Example: cleanliness.
perceived service quality
Perceived Service Quality

Word of

mouth

Personal

needs

Past

experience

Service Quality

Dimensions

Reliability

Responsiveness

Assurance

Empathy

Tangibles

Service Quality Assessment

1. Expectations exceeded

ES<PS (Quality surprise)

2. Expectations met

ES~PS (Satisfactory quality)

3. Expectations not met

ES>PS (Unacceptable quality)

Expected

service

Perceived

service

quality service by design
Quality Service by Design
  • Quality in the Service Package Budget Hotel example
  • Taguchi Methods (Robustness) Notifying maids of rooms for cleaning
  • Poka-yoke (fail-safing) Height bar at amusement park
  • Quality Function Deployment House of Quality
classification of service failures with poka yoke opportunities
Server Errors

Task:

Doing work incorrectly

Treatment:

Failure to listen to customer

Tangible:

Failure to wear clean uniform

Customer Errors

Preparation:

Failure to bring necessary materials

Encounter:

Failure to follow system flow

Resolution:

Failure to signal service failure

Classification of Service Failureswith Poka-Yoke Opportunities
achieving service quality
Achieving Service Quality
  • Cost of Quality (Juran)
  • Service Process Control
  • Statistical Process Control (Deming)
  • Unconditional Service Guarantee
costs of service quality bank example
Costs of Service Quality(Bank Example)

Failure costs Detection costs Prevention costs

External failure: Process control Quality planning

Loss of future business Peer review Training program

Negative word-of-mouth Supervision Quality audits

Liability insurance Customer comment card Data acquisition and analysis

Legal judgments Inspection Recruitment and selection

Interest penalties Supplier evaluation

Internal failure:

Scrapped forms

Rework

Recovery:

Expedite disruption

Labor and materials

service process control
Service Process Control

Customer

input

Service

concept

Customer

output

Resources

Service

process

Take

corrective

action

Monitor

conformance to

requirements

Establish

measure of

performance

Identify reason

for

nonconformance

control chart of departure delays
Control Chart of Departure Delays

expected

Lower Control Limit

1998

1999

unconditional service guarantee customer view
Unconditional Service Guarantee: Customer View
  • Unconditional (L.L. Bean)
  • Easy to understand and communicate (Bennigan’s)
  • Meaningful (Domino’s Pizza)
  • Easy to invoke (Cititravel)
  • Easy to collect (Manpower)
unconditional service guarantee management view
Unconditional Service Guarantee: Management View
  • Focuses on customers (British Airways)
  • Sets clear standards (FedEx)
  • Guarantees feedback (Manpower)
  • Promotes an understanding of the service delivery system (Bug Killer)
  • Builds customer loyalty by making expectations explicit
customer satisfaction
Customer Satisfaction
  • All customers want to be satisfied.
  • Customer loyalty is only due to the lack of a better alternative
  • Giving customers some extra value will delight them by exceeding their expectationsand insure their return
customer feedback and word of mouth
Customer Feedback andWord-of-Mouth
  • 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.
  • The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers.
  • About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly.
  • A dissatisfied customer will tell between 10 and 20 other people about their problem.
  • A customer who has had a problem resolved by a company will tell about 5 people about their situation.
walk through audit
Walk-Through-Audit
  • Service delivery system should conform to customer expectations.
  • Customer impression of service influenced by use of all senses.
  • Service managers lose sensitivity due to familiarity.
  • Need detailed service audit from a customer’s perspective.
approaches to service recovery
Approaches to Service Recovery
  • Case-by-caseaddresses each customer’s complaint individually but could lead to perception of unfairness.
  • Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating.
  • Early intervention attempts to fix problem before the customer is affected.
  • Substitute service allows rival firm to provide service but could lead to loss of customer.
topics for discussion
Topics for Discussion
  • How do the five dimensions of service quality differ from those of product quality?
  • Why is measuring service quality so difficult?
  • Compare the philosophies of Deming and Crosby.
  • What are the limitations of “benchmarking”.
  • Illustrate the four components in the cost of quality for a service.
  • Why do service firms hesitate to offer a service guarantee?
  • How can recovery from a service failure be a blessing in disguise?
interactive exercise
Interactive Exercise

The class breaks into small groups. Each group identifies the worst service experience and the best service experience that any member has had. Return to class and discuss what has been learned about service quality.

the complaint letter
The Complaint Letter
  • Briefly summarize the complaints and compliments in Dr. Loflin’s letter.
  • Critique the letter of Gail Pearson in reply to Dr. Loflin. What are the strengths and weaknesses of the letter?
  • Prepare an “improved” response letter from Gail Pearson
  • What further action should Gail Pearson take in view of this incident?
the museum of art and design
The Museum of Art and Design
  • Critique the WtA gap analysis. Could there be other explanations for the gaps?
  • Make recommendations for closing the gaps found in the WtA.
  • How can the servicescape help in self-selecting customers and employees?