Two Approaches to Service Quality Dimensions By Uolevi Lethinen & Jarmo Lehtinen Paper # 7 by Nancy Nguyen

Purpose ► To examine and determine two approaches to the analysis of service quality and its dimensions  Three Quality Dimensions vs. Two Dimensions

Previous studies that have influenced this case ► Explicit service quality discussion was mainly Scandinavian (Leivo Lehtinen and Akkanen, 1975) ► Later it moved onto “Perceived service quality viewpoint” discussed by Lewis & Booms 1983; Zeithml and Parasuraman, 1985, et..) ► Physical Quality in the Three Dimensional Approach is related to Gronroos technical and functional quality

Three Dimensional Quality Approach ► Physical Quality  The dimension of quality originating in the physical elements of service (Covers both the quality of materials and facilities). It is broken down into two parts: ► Physical Product  Good/Goods consumed during the service production process ► Physical Support  Framework which enables or facilitates the production of service

(Con’t Three Dimensional Quality) ► Interactive  The dimension of quality originating in interaction between the customer and interactive elements of the service organization ► Interactive Persons vs. Interaction equipment  Bank teller vs. ATM machines

(Con’t Three Dimensional Quality) ► Corporate Quality  Dimension of quality developing during the history of the service organization ► Therefore a new company will not have any corporate quality because of its recency  Concerns how customers (Current and potential) view the company

Two Dimensional Quality Approach ► Process Quality  Customers’ personal and subjective judgment on their participation in the process  Based on how customers see the production process and how well they feel fitting into the process ► Output Quality  Consumers evaluation regarding the results of a service production process ► This approach deals with the intensity of customer participation

Methodology ► Hermeneutical Learning Process  The data was based on in-depth interviews  Then analyzed and interpreted by researchers  Observations of the interviewer would also be used ► The purpose of this approach: Give management a better understanding of customers expectations

(Con’t Methodology) ► Two different studies were done: the first one focused on the Qualitative aspect and the second study focused on the Factors used to analyzed what’s considered “Quality” to a customer ► In the first study that focused on Qualitative three restaurants located in medium sized town in Finland were studied (A pub-10 people, disco -15 people & lunch restaurant – 15 people)  This study will use the Three Dimensional Approach as well as the Two Dimensional Approach ► This study was done by asking the customers open ended questions ► The second which focused on “Factors” study took place in three different dance restaurants in a large city in Finland (20 customers were interviewed in each place)  This study was conducted by asking customers to rate 41 characteristics on what they want in an ideal restaurant.

Results Using Three Dimensional Quality ► ► Disco (15 people interviewed)   Customers were broken down into 3 groups (Dancers, Bar People and Medium Participant): ► ► Dancers   More concerned with the quality of the Physical Support dimensions (they were there to dance)   Interactive Quality – the dancers paid a lot of attention to the “quality” of other customers, because they were looking to meet and connect with new people   Corporate Quality – Dancers based their judgment on the age and participation style of other customers   Thus Interactive and Corporate Quality are very connected for this group

(Con’t results for Bar People using Three Dimensional Approach) ► ► (Con’t Disco )   Bar people ► ► Corporate Quality – evaluated the business's image based on other customer’s age and participation level ► ► Interactive Quality – Very important for this group as they are there to socialize with other people   Their contact with the staff was also noted (were the wait staff friendly etc) ► ► Physical Quality – Drinks were more often mentioned, but food consumption was limited

(Con’t results for Medium Participants under Disco using Three Dimensional Approach) ► ► Medium Participants   Interactive Quality – Considered the place more or less a place where they can talk and get together   Physical Quality and Corporate Quality ► ► Was not mentioned   This particular group was considered more passive than the Dancers or Bar people. Medium Participants liked to observe others more than actually participating

(Con’t results for Lunch Restaurant using Three Dimensional Approach ) ► ► Lunch Restaurant (15 people interviewed)   They were broken into 2 groups based on how often they visit and their reasons why ► ► Heavy users (The customer’s resident or work was nearby   Physical Quality – Main consideration (Variety of dishes, as well as location)   Interactive Quality –Many wanted a quiet place to have a meal with their clients   Corporate Quality – Many considered the place to be cosy and peaceful ► ► Light users   Don’t visit often because of price, therefore not a lot of data could be gathered for this group

Results for Pub Restaurant using Three Dimensional Approach ► ► Pub Restaurant 10 people were interviewed (Divided into 3 groups: Eating Customers (heavy users) Drinking Customers (heavy users), and Occasional Customers)   Physical Quality – Location was very important as well as having a nice atmosphere   Interactive Quality – Interaction with the staff was viewed more important for eating customers (than drinking customers) because they to order food. ► ► Drinking Customers viewed the place as a spot for socializing or to meet friends ► ► Occasional Customers- had the same positive things to say as drinking customers and eating customers   Corporate Quality ► ► Occasional Customers – had a vaguer image of the business than Drinking or Eating Customers

( Results for Disco using Two Dimensional Approach) ► ► Disco   Process Quality – Very important and most evident for Dancers than Bar People or Medium Participants.   Output Quality – Can not be determined, but the study deduce that since the business was visited often especially by dancers, that this indicates a high output quality

Results for Lunch Restaurant using Two Dimensional Approach ► ► Heavy users   Process Quality – Paid great attention to the process ► ► Faster service was one of the important factors   Self service was very favorable amongst this group, because they could control the pace   Output Quality – Repeated business indicates a high output quality ► ► Light Users   Did not frequent the place enough due to price, therefore not a lot of info was gathered for this group

Results for Pub Restaurant using Two Dimensional Approach ► ► Process Quality   The experience was more clearly evident in the comments for customers who were eating as oppose to those who were occasional or drinking customers. ► ► Output Quality   A high output quality was more evident in Eating Customers

Second study regarding “Factors” that are taken into consideration when dealing with Quality ► Out of the 41 characteristics that were asked to be rated by customers on 3 dance restaurants 6 characteristics consistently ranked very high on the list  1. Pleasantness  2. Chasing/Flirting (Popular? Place to be seen…)  3. Pertinence (Cutlery clean, competent staff…)  4. Food  5. Dancing (Music, dance floor…)  6. Passive Participation (Fast service, possible to observe others..)

Conclusion ► Using the Three Dimensional and Two Dimensional Approach can best be categorized into the intensity and level of participation that customers have to take part in. The higher the participation and intensity level, the more results the study will yield.  STUDY NEEDS TO BE “SITUATION-AND-TIME SPECIFIC” TO CUSTOMERS! ► These approaches makes it possible to understand customers’ expectations however they are time consuming and data collected are difficult to interpret ► Quality service analysis is useful for segmenting customers to target a specific group