Download Service Quality

Service Quality
Toronto Dominion
1
An Illustration
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
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Federal Express
• How do you create dissatisfaction? Consider Fedex
– calls
• abandonment (1)
– pick-up
• miss package (10)
– transport and delivery
• lost (10), damaged (10), etc.
– invoice
• adjustment (1)
– customer service
• complaint reopened (5)
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
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Federal Express (contd.)
Pickup
Calls
•Abandoned
calls (1)
•Missed
pick-up
(10)
Transport
&
Delivery
Calls
•Lost (10)
•Adjustment (1)
•Damaged (10)
•Wrong late (5)
•Overgoods
(lost & found) (5)
•Right day late (1)
•Missing proof of
delivery (1)
•International
(composite index)
Calls
•Complaint
reopened (5)
•Traces
(not answered)
(1)
 (occurence s x weighti ng factor)  Service Quality Index
12
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Services Marketing – Professor V. Padmanabhan
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Operational Efficiency and Customer Satisfaction
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Services Marketing – Professor V. Padmanabhan
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Service Quality
• Service Quality
– expectation (expected service)
– performance (perceived service)
• SERVQUAL
– Dimensions:
• Tangibles,
• Reliability,
• Responsiveness,
• Assurance, and,
• Empathy.
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
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A Conceptual Model of Service Quality
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Services Marketing – Professor V. Padmanabhan
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Consumer Expectations Revisited
• Almost all the SERVQUAL type instruments focus on consumer’s making a
point estimate of quality, satisfaction, etc.,
• What if
– consumer has a prior distribution about the average quality of a brand?
– consumer care not just about the outcome (on average), but also about the
distribution of possible outcomes?
– consumer updates beliefs over time?
• Implications
– It is not necessary to exceed expectations (reducing variance in quality
alone can raise future preference)
– If customer expects bad quality and receives it, he/she will not reduce
preference for that brand (matching expectations reduces risk!)
– Given two equally priced options, customers will not necessarily choose the
one with the higher expected quality
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
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Commerce Bank: Service Quality Does Not Mean
Automation
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Services Marketing – Professor V. Padmanabhan
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Service Quality & Organizational Performance
• An Application of Service Quality Methodology
– Gerrad & Cunningham, “Bank Service Quality: A Comparison
between a Publicly Quoted and Govt. Bank in Singapore,” Journal
of Financial Services Marketing, 2001.
• Oliva & Sterman, “Cutting Corners and Working Overtime,”
Management Science, 2001.
– Characteristics of service = inseparability, intangibility and labor
intensity
– Rising Financial Pressures on Performance implies Focus on
Driving Productivity
– Consequence = Employees Drop Time Spent on Consumers at
Expense of Service Quality
– Result = Rework, Reduced Loyalty, High Turnover
– Data: NatWest Bank, U.K.
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Services Marketing – Professor V. Padmanabhan
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