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Service Quality

Service Quality. Quality. ‘There is no limit to the quality that can be produced, even in the most menial job’ Dave Thomas quoted in D Bone and R Griggs, 1989, Quality at Work , London: Kogan Page. Quality. ‘Quality is a perfection standard to be practised at all times; it is a

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Service Quality

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  1. Service Quality

  2. Quality ‘There is no limit to the quality that can be produced, even in the most menial job’ Dave Thomas quoted in D Bone and R Griggs, 1989, Quality at Work, London: Kogan Page.

  3. Quality ‘Quality is a perfection standard to be practised at all times; it is a continual effort to improve’ D. Bone and R . Griggs, 1989, Quality at Work, London: Kogan Page, p. 13.

  4. Defining Service Quality “ A service industry is vulnerable at its weakest point. If you go to a restaurant the food can be magnificent but if the service is lousy the chances are you will never go back again. That’s the crux of it.” (G. Cuthbert, Head of Sales British Airways)

  5. Berry’s Quality Factors for Service Industries (1985) • Reliability - Punctual • Responsiveness - Speed of service • Competence - Skilled personnel • Access - Easy to find or obtain • Courtesy - Polite and helpful • Communication - Clear, sufficient detail • Credibility - Trust and dependability • Security - Confidentiality, safety • Understanding - Meeting customers individual needs • knowing the customer • Tangibles - Pleasing appearance etc

  6. Perceptions of Service Quality “Customers perceptions of service quality results from a comparison of their expectations before they receive service to their actual experience of the service.” (Berry 1985) Quality perceptions are derived from the service process as well as from the service outcomes. Service quality is of two types, normal and exceptional.

  7. The Concept of the Q-Match The Q-Match idea is a quick and useful way to compare what you do (and what others do) to a pre- set standard Diane Bone & Rick Griggs (1989) “Quality at Work”, London, Kogan Page Q-Match says that; Quality = Meet Agree Terms and Changes

  8. Thoughts on Service Quality “Service companies waste anywhere from 30 - 35% of their operating cost by not doing things right” (Hutton 1988) “Good Quality may not always save money, but poor quality always costs and usually wastes money" (Carruthers & Holland 1991)

  9. Moment of Truth • Each customer contact is called a moment of truth. • You have the ability to either satisfy or dissatisfy them when you contact them. • A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.

  10. Dimensions of Service Quality Five principle dimensions that customers use to judge service quality. These dimensions are listed in order of declining relative importance to customers. Reliability Responsiveness Assurance Empathy Tangibles

  11. Service Quality Reliability ·Dependability ·Accuracy ·Reliability Responsiveness ·Promptness of service ·Service failure

  12. Service Quality Assurance ·Knowledge and courtesy ·Competence ·Politeness and respect ·Effective communication ·Server attitude

  13. Service Quality Empathy ·      Caring individualised attention ·      Approachability ·      Sense of security ·      Understanding customers needs Tangibles  ·      Physical facilities

  14. Customer Satisfaction Normal requirements Exciting requirements Don’t fulfil expectations Do fulfil expectations Expected requirements Customer Dissatisfaction Kano’s Model of Customer Requirements

  15. Unconditional Service Guarantee Customer View Service guarantees have five importance features 1. Unconditional 2. Easy to understand and communicate 3. Meaningful 4. Easy to invoke 5. Easy to collect

  16. Unconditional Service Guarantee • Management View • A service guarantee promotes organisation effectiveness • in several ways: • 1. Focuses on customers • 2. Sets clear standards • 3. Guarantees feedback • Promotes an understanding of the service delivery system  • 5. Builds customer loyalty

  17. Customer Satisfaction • All customers want to be satisfied. • Customer loyalty is only due to the lack of a better alternative • Giving customers some extra value will delight them by exceeding their expectationsand insure their return

  18. Expressing Dissatisfaction Public Action Seek redress directly from the firm Action Take legal action Dissatisfaction occurs Complaint to business, private, or governmental agencies Private Action Stop buying the product or boycott the seller No Action Warn friends about the product and /or seller

  19. Customer Feedback & Word of Mouth • 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.

  20. Customer Feedback & Word of Mouth • 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.

  21. Average number of people told 30 25 20 15 10 5 0 Slight Annoyed Very Extremely Absolutely annoyed annoyed furious dissatisfaction Number of people told based on level of Dissatisfaction

  22. Action Taken Based on the Level of Dissatisfaction Percent of customers that take action 100 Tell friends 80 Complain 60 Make a fuses Not use again 40 Dissuade others 20 Complain against 0 Slightly Annoyed Very Extremely Absolutely dissatisfied annoyed annoyed furious

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