Services Marketing

Chapter 8: Customer Satisfaction and Service Quality

Contents

Service Quality Role of HR and Internal Marketing in Service Quality SERVQUAL and GAP model Customer Satisfaction Monitoring and Measuring Customer Satisfaction Handling Complaints Effectively Service Failure and Recovery

What is Service Quality

Service Quality is defined as the ability of the service provider to satisfy customer needs. Quality of Service delivery results in customer satisfaction and their retention as it reinforces the perception that the value of the service received is greater than the price paid for it.

Why is Quality Service required

Competitive marketing environment Customers are well aware of the services and processes Two Third Customers will not complain. They will just switch to other brands.

Hence it is very important for the organization to provide quality service by training and empowering the employees to deliver quality

5 Dimensions of Service Quality

RATER Consideration to following dimensions will add to service quality.

Reliability Ability to perform the promised service dependably and accurately Assurance Knowledge and accuracy of employees and their ability to convey trust and confidence Tangibles Appearance of physical facilities, equipments, personnel and communication materials Empathy Caring, individualized attention the firm provides to its customers Responsiveness Willingness to help customers and provide prompt services

5 Dimensions of Service Quality Airline Industry

Reliability Keeping flights to published schedule Assurance Trusted name, High performance levels and experienced staff Tangibles Aircraft, clean waiting lounges, uniformed employee Empathy Understanding and anticipating problems and needs of the customers Responsiveness Prompt and speedy handling of ticketing, check in

GAP Model Parshuram, Ziethaml, Berry (PZB Model)

GAP model claims that consumers evaluate service quality experience as the outcome of gap between the expected and perceived quality. Expected Quality Quality of service expected by the customer. Perceived Quality Quality of service perceived by the Provider.

Gap 1: Lack of understanding Gap between customer expectation of service and management perception of service Not knowing what customers expect in a service. Eg: Newspaper in hotel rooms is a expectation by guests but perceived as not imp by the management of Hotel.

GAP Model Parshuram, Ziethaml, Berry (PZB Model)

Gap 2: Lack of Development Gap between management perception and service quality specification. Management is aware of the customer expectation but does not fulfill the same.

Gap 3: Poor Delivery Gap between Service quality specifications and service quality delivery

Poor employee performance due to lack of training or service orientation

GAP Model Parshuram, Ziethaml, Berry (PZB Model)

Gap 4: Unrealistic expectations Gap between service delivery and external communication Promotional campaign states different expectations but does not deliver it. Eg: Free Home delivery promised by a Hotel but not fulfilled

Gap 5: Gap between perceived service and delivered service

Perceived service could be different than delivered service due to gap in any of the 4 given gaps

GAP Model Parshuram, Ziethaml, Berry (PZB Model)

Marketing Communication Personal Needs Past Experience

Expected Service
GAP 5 Customer Perceived Service GAP 4 External Communication to Customers

Marketer GAP 1

Service Delivery

GAP 3 Translation of Perception into Service Quality Specification GAP 2 Management Perception of Consumer Expectation

Measuring Service Quality - SERVQUAL

In service quality focus is on quality, TQM and Customer Satisfaction in Business SERVQUAL has 22 items allocated to the 5 quality dimensions

Reliability 5 Items Assurance 4 Items Tangibles 4 Items Empathy 5 Items Responsiveness 4 Items

Measuring Service Quality - SERVQUAL

Reliability 5 Items When promise is made by Co it is kept When customer complains the Co shows great concern to solving them Co will perform the service right the first time Co will provide the service at all time agreed on Co will assist on error free records Assurance - 4 Items Employee behavior will impress customers and instill reliability of service Customer will feel safe and confident while dealing with employees Employee will always be friendly and courteous Employees will have adequate knowledge and skills to answer customer queries

Measuring Service Quality - SERVQUAL

Tangibles 4 Items Co will have modern looking equipments Physical facilities will be appealing to customers Employees will be well dressed Materials and tools related to service will be appealing Empathy- 5 Items Co will pay attention to customers individually Co will have operating hrs that are convenient to all customers Employees will give personal attention to each customer Co will have customers best interest at heart Employees will understand the specific needs of their customers

Measuring Service Quality - SERVQUAL

Responsiveness 4 Items Employees will keep the customers informed of the exact time of service delivery Employees will give prompt service Employees will always be willing to help Employees will never be busy to help customers immediately

Use of SERVQUAL Helps to determine the gap between customer expectation and perception for each service attribute Helps assess Co service quality with respect to each of the 5 SD Helps analyze the total service score of each service attribute Track customer expectations and perceptions over a period Compare SERVQUAL score with competitors Assess internal service quality

Customer Service

Activities involved to ensure that products or services are delivered to customers on time and in correct quantities Relationship between customer and staff Provision of after sales service Complaints handling and redressal Pre Transaction Elements Transaction Elements Post Transaction Elements

Factors affecting Customer Satisfaction

Product Sales Activities After Sales Service Culture

Tips to provide Customer Delight Limit Options Make it easy for customers to find their way to facility Have established sequence of serving all customers Make it easy for guests to interact with associates Put customers at ease Make the waiting a delightful experience Train associates to sell Anticipate guest needs Improve service Delivery by practice
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Customer Complaint
Only 4 out of 10 dissatisfied customers complain A unsatisfied customer does go empty handed but not empty headed. He will spread the bad word of mouth and the impact of this will be twice the impact of advertising. What do unhappy customers want? Customers want what they were promised Customers want personal attention Customers want decent apology Customers want they should be treated as a King

Service Recovery - Process of Handling Irate Customer

Step 1: Apologize for the inconvenience caused to client Step 2: Listen, Empathize Stay Calm and Listen to customer Express Concern - Avoid admitting any liability at this stage Do not interrupt Let the customer complete his story Step 3: Offer a fair fix to the problem Collate the facts Find the exact problem and what customer wants Identify the appropriate action Step 4: Offer some value added service as a compensation Take Action Tell the customer the solution and time taken to complete the same Step 5: Keep your promise Record all happenings Step 6: Follow up Follow up till client is satisfied with the solution
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