1. A Four-phased Model for the Systematic Design of Quality Service (1) Phase 1: Idea evaluation and concept development Customers are the most important external source of new service ideas Demanding and competent customers should be included A preliminary description and evaluation of the service concept and a commercial evaluation concerning revenue and costs are carried out Employees, suppliers, and customers evaluate the new service idea together

2. A Four-phased Model for the Systematic Design of Quality Service (2) Phase 2: Customer and competitor analysis for concept evaluation and specification A more comprehensive analysis of consumer needs, wishes and expectations is carried out. It includes: detailed description and analysis of consumer needs, detailed analysis of competing services, detailed analysis of the core and support services in relation to consumer needs and expectations a commercial evaluation of the service concept

3. A Four-phased Model for the Systematic Design of Quality Service (3) Phase 3: Designing the servuction system Phase 4: Detail design of the servuction process Design of the servuction system and the servuction process must go hand in hand The first includes specification of resources based on the service concept, thorough evaluation of the resources in the existing servuction system, and detailed description of the design of the new servuction system The second includes specification of activities that are to be utilised to produce the service, clarification of the role of the customer and constructing a flowchart of how the service is produced

4. Conceptual Model of Service Quality Based on exploratory research by Parasuraman, et al. (1991) Customer expectation Management perception SQ specifications Service delivery External communication Gap 4 Gap5 = Expected Service (ES) - Perceived Service (PS) Gap5 = f (Gap1, Gap2, Gap3, Gap4) Gap 3Gap 2Gap 1 ESPS

5. GAP 1 = Customer expectation - Management perception Managers may not always understand: What features connote high quality to customers What features a service must have in order to meet customer needs What level of performance on those features are needed to deliver high quality service

6. GAP 2 = Management perception - SQ specifications Knowledge of customer expectation exists, but the perceived means to deliver expectations apparently do not The absence of total management commitment to SQ

7. GAP 3 = SQ specification - Service delivery Service provider’s employees exert a strong influence on the SQ perceived by customers, and that employee performance cannot always be standardised Although formal standards exist, firms under investigation reported difficulty adhering to these standards because of variability in employee performance

8. GAP 4 = Service delivery - External communication Do not promise more in communication than it can deliver in reality Making customers aware of not readily apparent service related standards may improve SQ perception External communication can affect not only customer expectations about service but also customer perceptions of the delivered service

9. Conceptual Model of Service Quality SQ as perceived by customers depends on the size and direction of Gap 5, which depends on the nature of the gaps associated with the design, marketing and delivery of services The key to ensuring good SQ is meeting or exceeding customer expectation Judgements of high and low SQ depend on how customers perceive the actual service performance in the context of what they expected

10. Concluding Remarks Practitioners see the generic differences between the task of developing physical products and that of developing services Service providers feel the need for a more systematic way of developing new services Service providers often express the problem of controlling the new service development process from a holistic point of view

11. TERIMA KASIH