Service Quality

1. Service Quality

2. Learning Objectives • Describe the five dimensions of service quality. • Use the service quality gap model to diagnose quality problems for a service firm. • Illustrate how Taguchi methods and poka-yoke methods are applied to service design. • Perform service quality function deployment. • Construct a statistical process control chart. • Develop unconditional service guarantees. • Plan for service recovery.

3. Moments 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 recoveryis satisfying a previously dissatisfied customer and making them a loyal customer.

4. Dimensions of Service Quality(1) • Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day. • Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.

5. Dimensions of Service Quality(2) • Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer. • Empathy: Ability to be approachable. Example: being a good listener. • Tangibles: Physical facilities and facilitating goods. Example: cleanliness.

6. Perceived Service Quality Word of mouth Past experience Personal needs Expected service Service Quality Assessment 1. Expectations exceeded ES<PS (Quality surprise) 2. Expectations met ES~PS (Satisfactory quality) 3. Expectations not met ES>PS (Unacceptable quality) Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles Perceived service

7. Gaps in Service Quality Past experience Word -of-mouth communications Personal needs Customer Expected service GAP 5 Perceived service External communications to consumers Service delivery (including pre- and post-contacts) GAP 1 GAP 4 GAP 3 Translation of perceptions into service quality specifications Provider GAP 2 Management perceptions of consumer expectations

8. Service Process Control Customer input Service concept Customer output Resources Service process Take corrective action Monitor conformance to requirements Establish measure of performance Identify reason for nonconformance

9. 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

10. 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

11. Customer Feedback and 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. • 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.

12. Number of People Told Based on Level of Dissatisfaction

13. Action Taken Based on Level ofDissatisfaction

14. Approaches to Service Recovery • Case-by-caseaddresses each customer’s complaint individually but could lead to perception of unfairness. • Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating. • Early intervention attempts to fix problem before the customer is affected. • Substitute service allows rival firm to provide service but could lead to loss of customer.

15. Making Customers into Champions easy Walking wounded Champions Could complain but don’t; Active in providing not happy but repurchase British Airways with information on quality of its services; loyal Remain Loyal Defect Missing in actionDetractors Defected; Defected; non-complaining vocally critical not easy don’t complain complain Propensity to contact British Airways How easy customers feel it is to contact British Airways

16. Taguchi Methods(1) • 田口式品質工程( Taguchi Methods)以最迅速最經濟的實驗方法(直交表)使系統(產品設計或製程改善)在不增加成本(甚至降低成本)情況下，突破設計瓶頸或改善生產製程，應用於技術開發、產品開發，能發揮立即有效的成果。中國生產力中心自1988年引進「田口式品質工程」以來，除敦聘田口博士(Dr. Tanguchi)協助台灣企業推動田口方法，並積極與國外田口方法推展應用單位進行經驗交流。十年來有數百家企業參與並完成進千件成功案例，因此擬透過本課程，提供業界一個最快速的技術突破管道，進而提高技術競爭力。

17. Taguchi Methods(2) • －Six Sigma步驟---Six Sigma之ＤＭAIC的實施方法與步驟說明－ＦＭＥＡ製作與應用---設計FMEA與製程FMEA的製作---FMEA的應用、實務演練－DOE實驗設計---變異數分析(anova)、直交表的規劃實驗---直交表實驗的分析、電腦應用軟體介紹與實例演練

18. Taguchi Methods(3) • －Taguchi Methods靜態特性(望大、望小、望目)---Taguchi Methods與DOE的差異、靜態特性SN比---實際應用案例演練、靜態特性電腦應用－Taguchi Methods動態特性(機能最佳化)---動態特性的工程意義、動態特性SN比---實際應用案例演練、動態特性電腦應用－DMAIC的整合應用---ＦＭＥＡ、ＤＯＥ與Taguchi Methods整合應用

19. Poka-Yoke • Poka-Yoke，源自日語，意即防錯，是精益方案中特別為杜絕錯誤而設的工具。經Shigeo Shingo努力推廣，防錯法的目標是透過設立簡單的裝置，防止錯誤演化成錯失。 • 是日本一種用來檢驗製品是否為良品的工具，它可用來預防不良品的發生或是檢驗製品，它具有成本低的優點。

20. The Measurement and Management of Service Quality in Dental Healthcare Dayananda Palihawadana and Bradley R. Barnes (2004), Health Service Management Research, 17(2), 229-236.

21. Outline • Abstract • Introduction • Service Quality measurement in Healthcare • Service Quality Measurement and SERVQUAL • The Study • Results and Discussion • Expectations • Perceptions • Service Quality Gaps • Conclusions and Implications