The Servqual Model SERVICE QUALITY

The Servqual Model The SERVQUAL approach is the most common method for measuring service quality. Service quality defined- the difference between customer expectations of service and perceived service. If expectations are greater than performance, then perceived quality is less than satisfactory and hence customer dissatisfaction occurs (Parasuraman et al ., 1985; Lewis and Mitchell, 1990).

Conceptual Model of Service Quality the three important gaps, which are more associated with the external customers are: Gap1, Gap5 and Gap6; (they have a direct relationship with customers.)

What are the Servqual Gaps? Gap 1: The difference between management perceptions of what customers expect and what customers really do expect (as a result of the lack of a marketing research orientation, inadequate upward communication and too many layers of management.)

What are the Servqual Gaps? Gap 2: The difference between management perceptions and service quality specifications - the standards gap- as a result of inadequate commitment to service quality, a perception of unfeasibility, inadequate task standardisation and an absence of goal setting.

What are the Servqual Gaps? Gap 3: The difference between service quality specifications and actual service delivery - are standards consistently met? as a result of role ambiguity and conflict, poor employee-job fit and poor technology-job fit, inappropriate supervisory control systems, lack of perceived control and lack of teamwork.

What are the Servqual Gaps? Gap 4: The difference between service delivery and what is communicated externally - are promises made consistently fulfilled? as a result of inadequate horizontal communications and propensity to over-promise.

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 Gap 6: The discrepancy between customer expectations and employees’ perceptions:  Gap 7: The discrepancy between employee’s perceptions and management perceptions: 

What are the Servqual Gaps? Gap 6: The discrepancy between customer expectations and employees’ perceptions. As a result of the differences in the understanding of customer expectations by front-line service providers.  examples

What are the Servqual Gaps? Gap 7: The discrepancy between employee’s perceptions and management perceptions. as a result of the differences in the understanding of customer expectations between managers and service providers.   examples Gap 7:

Reasons for the Gaps GAP 1 Not knowing what customers expect GAP 2 The wrong service quality standards GAP 3 The service performance gap GAP 4 When promises do not match actual delivery GAP 5 The difference between customer perception and expectation GAP 6 The discrepancy between customer expectations and employees’ perceptions GAP 7 The discrepancy between employee’s perceptions and management perceptions

The 5 SERVQUAL Dimensions Every company owner wants to get loyal customers which add to repeating purchases and of cause increasing their maximum revenue. But to get there they need to know about the 5 Service Quality Dimensions. Many actually think that service is just a little part of the marketing mix, but it is actually a very important part of both the 4 and 7 P's Each of the 5 Service Quality Dimensions makes an extra addition to the level and quality of service which the company offers their customers. It also makes the service far more unique and satisfying.

Definitions of the SERVQUAL Dimensions Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials. Reliability: Ability to perform the promised service dependably and accurately. Responsiveness: Willingness to help customers and provide prompt service. Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence. Empathy: Caring, individualized attention the firm provides its customers.

Descriptions of the SERVQUAL Dimensions

The Five Key Service Dimensions TANGIBLES - the appearance of physical facilities, equipment, personnel and information material In other words, the tangible dimension is about creating first hand impressions. A company should want all their customers to get a unique positive and never forgetting first hand impression, this would make them more likely to return in the future.

The Five Key Service Dimensions RELIABILITY - the ability to perform the service accurately and dependably Reliability is just as important as a good first hand impression, because every customer wants to know if their supplier is reliable and able to fulfill the set requirements with satisfaction.

The Five Key Service Dimensions RESPONSIVENESS - the willingness to help customers and provide a prompt service Providing them with a good, quality and fast service. This is also a very important dimension, because every customer feels more valued if they get the best possible quality in the service.

The Five Key Service Dimensions ASSURANCE - refers to the company's employees. Are the employees skilled workers which are able to gain the trust and confidence of the customers? If the customers are not comfortable with the employees, there is a large chance that the customers will not return to do further business with the company. Assurance refers to a combination of the following Competence - having the requisite skills and knowledge Courtesy - politeness, respect, consideration and friendliness of contact staff Credibility - trustworthiness, believability and honesty of staff Security - freedom from danger, risk or doubt

The Five Key Service Dimensions EMPATHY - refers to how the company cares and gives individualized attention to their customers, to make the customer feel extra valued and special. This is actually a combination of the second, third and fourth dimension to a higher level. If the customers feel they get individualized and quality attention there is a good chance that they will return to the company to do continued business. It is a combination of the following: Access (physical and social) - approachability and ease of contact Communication - keeping customers informed in a language they understand and really listening to them Understanding the customer - making the effort to get to know customers and their specific needs

Determinants of Perceived Service Quality Expected Service Perceived Quality Gap Word of Mouth Personal Needs Past Experience External Communication to Customers 20

Believe Can and Should Be Nature of Service Expectations Desired Service Zone of Tolerance Adequate Service Level Customers Believe Can and Should Be Delivered Minimum Level Customers Are Willing to Accept 21

Servqual Data - How Useful is it? We can assess service quality from the customer’s perspective We can track customer expectations and perceptions over time and the discrepancies between them We can compare a set of Servqual scores against those of competitors or best practice examples

Servqual Data - How Useful is it? We can compare the expectations and perceptions of different customer groups - this is particularly useful in the public sector We can assess the expectations and perceptions of internal customers - eg other departments or services we deal with