1. 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.

2. Dimensions of Service Quality (cont.)
Assurance: Ability to convey trust and confidence. Example is being polite and showing respect for customer.
Empathy: Ability to be approachable. Example is individualized attention.
Tangibles: Physical facilities and facilitating goods. Example is cleanliness.

3. Perceived Service Quality
Word of
mouth
Personal
needs
Past
experience
Dimensions of
Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Perceived Service quality
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

4. Gaps in Service Quality
Word -of-mouth
communications
Personal needs
Past experience
Customer
Expected service
GAP 5
Perceived service
Marketer
Service delivery (including
pre- and post-contacts)
External communications
to consumers
GAP 3
GAP 1
GAP 4
Translation of perceptions into
service quality specifications
GAP 2
Management perceptions of
consumer expectations

5. Quality Service by Design
Service Concept (Blueprinting)
Taguchi Methods (Robustness)
Poka-Yoke Methods (Shigeo Shingo)
Quality Function Deployment (House of Quality)

6. Achieving Service Quality
Cost of Quality (Juran)
Statistical Process Control (Deming)
Fishbone Charts (Ishikawa)
Pareto Analysis (80/20 rule)

7. Costs of Service Quality
Failure costs Detection costs Prevention costs
External failure: Process control Quality planning
Customer complaints Peer review Training program
Warranty charges Supervision Quality audits
Liability insurance Customer comment card Data acquisition and analysis
Legal judgments Inspection Preventive maintenance
Loss of repeat service Supplier evaluation
Recruitment and selection
Internal failure:
Scrap
Rework
Recovery:
Expedite
Labor and materials

8. 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

9. Control Chart of Departure Delays
1983
target
1983 lower limit
1982
1983

10. Flight Departure Delay Fishbone Chart
Equipment
Personnel
Gate agents cannot process passengers quickly enough
Too few agents
Aircraft late to gate
Agents undertrained
Late arrival
Agents undermotivated
Gate occupied
Agents arrive at gate late
Other
Mechanical failures
Late cabin cleaners
Late pushback tug
Weather
Late or unavailable cabin crews
Air traffic
Late or unavailable cockpit crews
Delayed
Flight
Departure
Poor announcement of departures
Weight an balance sheet late
Delayed checkin procedure
Late baggage to aircraft
Confused seat selection
Late fuel
Passengers bypass checkin counter
Late food service
Checking oversize baggage
Issuance of boarding pass
Acceptance of late passengers
Cutoff too close to departure time
Desire to protect late passengers
Material
Desire to help company’s income
Poor gate locations
Procedure

11. Pareto Analysis of Flight Departure Delay
All stations, except hub Newark Washington(national)
Percentage Percentage Percentage
of Cumulative of Cumulative of Cumulative
incidences percentage incidences percentage incidences percentage
Late Late Late
passengers passengers passengers
Waiting for Waiting for Waiting for
pushback pushback pushback
Waiting for Waiting for Late weight
fueling fueling and balance
sheet
Late weight Cabin Waiting for
and balance cleaning and fueling
sheet supplies

12. Programs for Service Quality Improvement
Marriott Personnel Programs
Zero Defects (Crosby)
Deming’s 14 Point Program
Unconditional Service Guarantee
Malcolm Baldrige Quality Award

13. 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)

14. 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

15. 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 expectations and insure their return

16. 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.

17. Making Customers into Champions
easy
Walking wounded Champions
Could complain but don’t; Active in providing
not happy but repurchase British Airways with
information on quality
of its services; loyal
Remain Loyal
Defect
Missing in action Detractors
Defected; Defected;
noncomplaining vocally critical
not easy
don’t complain complain
Propensity to contact British Airways
How easy customers feel it is to
contact British Airways

18. Expressing Dissatisfaction
Public Action
Seek redress directly from
the firm
Action
Take legal action
Dissatisfaction
occurs
Complaint to business, private,
or governmental agencies
Private Action
Stop buying the product or
boycott the seller
No Action
Warn friends about the product
and /or seller

19. Customer Feedback and Word-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 problems 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.

20. 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?