Service Quality

L i Obj i Learning Objectives

Describethefivedimensionsof servicequality Describe the five dimensions of service quality.
Use the service quality gap model to diagnose
qualityproblems quality problems.
Illustrate how Taguchi methods and poka-yoke
methodsareappliedtoqualitydesign methods are applied to quality design.
Perform service quality function deployment.
C i i l l h Construct a statistical process control chart.
Develop unconditional service guarantees.
Plan for service recovery.
Perform a walk-through audit (WtA) g
M f T h Moments of Truth
Each customer contact is called a moment
of truth. of truth.
Y h h bili i h i f You have the ability to either satisfy or
dissatisfy them when you contact them.
A service recovery issatisfyinga A service recovery is satisfying a
previously dissatisfied customer and
ki th l l t making them a loyal customer.
Di i f S i Q li Dimensions of Service Quality
Reliability: Perform promised service
dependablyandaccurately. Example: dependably and accurately. Example:
receive mail at same time each day.
R i Willi h l Responsiveness: Willingness to help
customers promptly. Example: avoid
keeping customers waiting for no apparent
reason. e so .
Di i f S i Q li Dimensions of Service Quality
Assurance: Ability to convey trust and
confidence. Example: beingpoliteand confidence. Example: being polite and
showing respect for customer.
E h Abili b h bl Empathy: Ability to be approachable.
Example: being a good listener.
Tangibles: Physical facilities and
facilitatinggoods Example: cleanliness facilitating goods. Example: cleanliness.
P i dS i Q li Perceived Service Quality
Word of
mouth
Personal
needs
Past
experience mouth needs experience
E d Expected
service
Service Quality
Dimensions
Reliability
Responsiveness
Service Quality Assessment
1. Expectations exceeded
ES<PS (Quality surprise)
2 Expectations met
Perceived
service
Responsiveness
Assurance
Empathy
Tangibles
2. Expectations met
ES~PS (Satisfactory quality)
3. Expectations not met
ES>PS (Unacceptable quality)
g
S i Q li G M d l
Service Quality Gap Model
Service Quality Gap Model
Customer
Perceptions
Customer
Expectations
Customer Satisfaction
GAP 5
Perceptions Expectations
Managing the
Understanding
theC stomer
Customer /
Service
Management
Evidence
the Customer
Marketing Research
GAP 1
Communication
GAP 4
Service
Delivery
g
Perceptions
of Customer
i Expectations
Conformance
GAP 3
Design GAP 2
Service
Standards
Conformance
Service Design
Standards
Q li S i b D i Quality Service by Design
Quality in the Service Package
Budget Hotel example Budget Hotel example
Taguchi Methods (Robustness)
N if i id f f l i Notifying maids of rooms for cleaning
Poka-yoke (fail-safing) y ( g)
Height bar at amusement park
Q lit F ti D l t Quality Function Deployment
House of Quality
Classification of Service Failures
i hP k Y k O i i with Poka-Yoke Opportunities
Server Errors
Task:
Customer Errors
Preparation:
Doing work incorrectly
Treatment:
p
Failure to bring necessary
materials
Failure to listen to customer
Tangible:
Encounter:
Failure to follow system flow
g
Failure to wear clean uniform
Resolution:
Failure to signal service
failure
Houseof Quality House of Quality
*
Strong
Relationships
R
e
O O
O Weak
Medium
*
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Customer Perceptions
o Village Volvo
+ Volvo Dealer
Service Elements
* *
a
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c
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1 2 3 4 5
Customer Expectations
Reliability
Responsi eness
9
9
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8
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5 5
3 3 2
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Volvo Dealer
Responsiveness
Assurance
Empathy
Tangibles
9
9
7
7
6 6 5
4
3 3
3
2
2 2
+
+
+
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Comparison with Volvo Dealer
+
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Weighted score
Improvement difficulty rank
5 4 3 2
127 82 63 102 65
1
A hi i S i Q li Achieving Service Quality
Cost of Quality (J uran)
Service Process Control
Statistical Process Control (Deming) ( g)
U diti l S i G t Unconditional Service Guarantee
Costs of Service Quality
(Bank Example)
Failure costs Detection costs Prevention costs
External failure: Process control Quality planning
Lossof futurebusiness Peer review Trainingprogram Loss of future business Peer review Training program
Negative word-of-mouth Supervision Quality audits
Liability insurance Customer comment card Data acquisition and analysis
Legal judgments Inspection Recruitment and selection
Interest penalties Supplier evaluation
Internal failure:
Scrapped forms
Rework
RRecovery:
Expedite disruption
Labor and materials
S i P C l Service Process Control
Service
concept
Customer
input
Resources
concept
Customer
output
Service
process
Establish Monitor Take
p
Establish
measure of
performance
Monitor
conformance to
requirements
Take
corrective
action
Identify reason
for
nonconformance
l h f l Control Chart of Departure Delays
100
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90
g
h
t
s

o
n
expected
80
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f

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t
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Lower Control Limit
70
c
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a
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t
60
P
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1998 1999
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Unconditional Service Guarantee:
i Customer View
Unconditional (L.L. Bean)
Easytounderstandandcommunicate Easy to understand and communicate
(Bennigans)
Meaningful (Dominos Pizza)
Easytoinvoke(Cititravel) Easy to invoke (Cititravel)
Easy to collect (Manpower)
Unconditional Service Guarantee:
i Management View
Focuses on customers (British Airways)
Setsclear standards(FedEx) Sets clear standards (FedEx)
Guarantees feedback (Manpower)
Promotes an understanding of the service
deliverysystem(BugKiller) delivery system (Bug Killer)
Builds customer loyalty by making
expectations explicit
C S i f i Customer Satisfaction
All customers want to be satisfied.
Customer loyalty is only due to the lack of
b l i a better alternative
Giving customers some extra value will
delight thembyexceedingtheir delight them by exceeding their
expectationsand insure their return
Customer Feedback and
W d f M h Word-of-Mouth
Th b i l h f 4% f th i t h 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 problem
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.
W lk Th h A di Walk-Through-Audit
Service delivery system should conform to
customer expectations. p
Customer impression of service influenced
byuseof all senses by use of all senses.
Service managers lose sensitivity due to
familiarity familiarity.
Need detailed service audit from a
customers perspective.
Severity
Of
Failure
Perceived
Service
Quality
Psychological
-empathy
-apology
Tangible
-fair fix
-value add
Psychological
-apology
-show interest
Service
Failure
Provider
Aware of
Fair
Restitution
F ll
Failure
Occurs
Aware of
Failure
Restitution
Patronage
Loyalty
Satisfaction
Retention
Follow-up
Service
Recovery
Service
Recovery
Expectations
Service
Recovery
Tangible
-small token
Customer
Loyalty
Service
Guarantee
Speed of
Recovery
Frontline
Discretion
Pre-recovery Phase Immediate Recovery Phase Follow-up Phase
S i R F k Service Recovery Framework
A h S i R Approaches to Service Recovery
Caseby caseaddresseseachcustomers Case-by-caseaddresses each customer s
complaint individually but could lead to
perceptionof unfairness perception of unfairness.
Systematic responseuses a protocol to handle
l i t b t d i id tifi ti f complaints but needs prior identification of
critical failure points and continuous updating.
Early interventionattempts to fix problem before
the customer is affected.
Substitute serviceallows rival firm to provide
service but could lead to loss of customer.
T i f Di i Topics for Discussion
Howdothefivedimensionsof servicequality How do the five dimensions of service quality
differ from those of product quality?
Whyismeasuringservicequalitysodifficult? Why is measuring service quality so difficult?
Compare the philosophies of Deming and Crosby.
What arethelimitationsof benchmarking What are the limitations of benchmarking.
Illustrate the four components in the cost of
qualityfor aservice quality for a service.
Why do service firms hesitate to offer a service
guarantee? guarantee?
How can recovery from a service failure be a
blessingindisguise? blessing in disguise?
I i E i Interactive Exercise
The class breaks into small groups. Each
groupidentifiestheworst service group identifies the worst service
experience and the best service experience
that anymember hashad Returntoclass that any member has had. Return to class
and discuss what has been learned about
i li service quality.
Th C l i L The Complaint Letter
1. Briefly summarize the complaints and
compliments in Dr. Loflins letter.
2. Critique the letter of Gail Pearson in reply to Dr.
Loflin. What are the strengths and weaknesses
f h l ? of the letter?
3. Prepare an improved response letter from Gail
PPearson
4. What further action should Gail Pearson take in
i f thi i id t? view of this incident?
Th M f A dD i The Museum of Art and Design
1. Critique the WtA gap analysis. Could
therebeother explanationsfor thegaps? there be other explanations for the gaps?
2. Make recommendations for closing the
f di h WA gaps found in the WtA.
3. How can the servicescape help in self- p p
selecting customers and employees?