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Transcript
Services Quality Management MANAGING SERVICE QUALITY The service quality of a firm is tested at each service encounter. Customer Expectations A) Customers form service expectations from many sources: Past experiences. Word-of-mouth. Advertising MANAGING SERVICE QUALITY B) In general, customers compare the perceived service with the expected service. If the perceived service falls below the expected service customers are disappointed. If the perceived service meets or exceeds their expectations they are apt to use the provider again. C) Successful companies add benefits to their offering that not only satisfy customers but also surprise and delight them. D) Delighting customers is a matter of exceeding expectations. MANAGING SERVICE QUALITY Parasuraman, Zeithaml, and Berry formulated a service-quality model that highlights the main requirements for delivering high service quality that identifies five gaps that cause unsuccessful delivery: MANAGING SERVICE QUALITY Gap model satisfaction Gap 1: Not Knowing What Customers Want, Unwillingness or un-preparedness to ask Gap 2: Inability to Set Right Standards, Absence of QC Goals or Vague Design Gap 3: Not Delivering to Set Standards,Problems of Empowerment or Training Gap 4: Mismatch Between Promises and Delivery, Over Promises The provider gap are underlying causes behind the customer gap Not knowing what customer expect Not selecting the right service design and standards. Not delivering to service standards. Not matching performance to promises Key Factors Leading to the Customer Gap Provider gap 1-not knowing what customers expect Provider gap 2-not selecting the right service design and standards Provider gap 3-not delivering to service standards Provider gap 4-not matching performances to promises Customer perception Key factors Leading to Provider Gap1 Customer Expectations 1. Inadequate marketing research orientation-insufficient marketing research, research not focused on service quality, inadequate use of market research 2. Lack of upward communication-lack of interaction between management and customer; insufficient communication between contact personnel and top management, too many layers between contact personnel and top management. 3. Insufficient relationship focus-lack of market segmentation, focus on transaction rather than relationship; focus on new customers 4. Inadequate service recovery Key factors Leading to Provider Gap-2 Customer-driven service designs and standards Poor service design- unsystematic process vague, undefined service designs Absence of customer –defined standardsabsence of process management to focus on customer requirements, absence of formal process for setting service quality goalsInappropriate physical evidence and servicescape Management perception of customer expectation Key factors Leading to Provider Gap-3 not delivering to service standards Service Delivery Deficiency in human resource policiesineffective recruitment; role ambiguity and role conflict; poor employee-technology job fit; inappropriate evaluation and compensation systems, lack of empowerment, perceived control and teamwork Failure to match demand and supplyinappropriate customer mix Customers not fulfilling roles Problems with service intermediaries Customer-driven service designs and standards Key factors Leading to Provider Gap-4 Service Delivery Lack of integrated services marketing communications Ineffective management of customer expectations Over promising-in advertising, personal selling, over promising through physical evidence cues Inadequate horizontal communicationsinsufficient communication between sales and operations, advertising and operations. External communication to customers In a perfect world expectation and perception would be identical Customers expectations are the standards or the reference points for performance against which the service experiences are compared. The sources of customer expectations consists of –pricing advertising and sales promises as well as innate personal need, word of mouth communications, and competitive offerings. Gaps Model of Service Quality The model focuses on strategies and processes that firm can employ to drive service excellence while maintaining a focus on customers. It is the model that can drive strategies as well as implementation decisions. Services search Vs experience Vs credence properties Search qualities, attributes that consumer can determine before purchasing a product E.g.. Color, style, price, fit, feel etc. Experise qualities, attribute that a consumer can be discerned only after purchase or during consumption Figure 13.4 shows the service quality model. Gap between consumer expectations and management perception. Gap between management perception and service-quality specification. Gap between service-quality specifications and service delivery. Gap between service delivery and external communications. Gap between perceived service and expected service. MANAGING SERVICE QUALITY Based upon this service-quality model, researchers have identified the following five determinants of service quality, in order of importance: Reliability. Responsiveness. Assurance. Empathy. Tangibles. Credence qualities, includes characteristics that consumer may find impossible to evaluate even after purchase and consumption. For e.g. an appendix operations Experience and credence qualities dominates in services Marketing of Services Continuum of evaluation for different types of Products