Service Delivery & Quality Management

Service Delivery
Service Delivery is an essential condition for success in the emerging, keenly competitive, global Service markets. While the future importance of delivering quality service is easy to discern and to agree on, doing so presents some difficult and intriguing management issues. Eg. Ritz Carlton, British Airways, Audi, etc. Customers have different expectations of services or expected service Desired service customer hopes to receive Adequate service the level of service the customer may accept.

Consumer Behavior in Services

Overview the generic differences in consumer behavior between services and goods Introduce the aspects of consumer behavior that a marketer must understand in five categories of consumer behavior: Information Search Evaluation of service alternatives Service purchase and consumption Post purchase evaluation Role of culture

Consumer Evaluation Processes for Services

Search Qualities Attributes a consumer can determine prior to purchase of a product Experience Qualities Attributes a consumer can determine after purchase (or during consumption) of a product Credence Qualities Characteristics that may be impossible to evaluate even after purchase and consumption

Continuum of Evaluation for Different Types of Products

Most Goods Most Services

Easy to evaluate

Difficult to evaluate

High in search High in experience High in credence qualities qualities qualities

Categories in Consumer Decision-Making and Evaluation of Services

Information Search
Use of personal sources Perceived risk

Evaluation of Alternatives
Evoked set Emotion and mood

Purchase and Consumption

Service provision as drama Service roles and scripts Compatibility of customers

Post-Purchase Evaluation
Attribution of dissatisfaction Innovation diffusion Brand loyalty

Categories in Consumer Decision-Making & Evaluation of Services

Information Search
Use of personal sources Perceived risk

Evoked set Emotion and mood

Evaluation of Alternatives

Values and attitudes

Culture

Manners and customs Material culture Aesthetics Educational and social

institutions

Service provision as drama Service roles and scripts Compatibility of customers

Purchase and Consumption

Attribution of dissatisfaction Innovation diffusion Brand loyalty

Post-Purchase Evaluation

Information search
In buying services consumers rely more on personal sources. Personal influence becomes pivotal as product complexity increases Word of mouth important in delivery of services With service most evaluation follows purchase

Perceived Risk
More risk would appear to be involved with purchase of services (no guarantees) Many services so specialised and difficult to evaluate (How do u know whether the Electrician /Auto Technician has done a good job?) Therefore a firm needs to develop strategies to reduce this risk, e.g, training of employees, standardisation of offerings

Evoked Set
The evoked set of alternatives likely to be smaller with services than goods If you would go to a shopping centre you may only find one dry cleaner or single brand It is also difficult to obtain adequate prepurchase information about service The Internet may widen this potential Consumer may choose to do it themselves, e.g. garden services

Emotion and Mood

Emotion and mood are feeling states that influence peoples perception and evaluation of their experiences Moods are transient Emotions more intense, stable and pervasive May have a negative or positive influence

Service Provision as Drama

Need to maintain a desirable impression Service actors need to perform certain routines Physical setting important, smell, music, use of space, temperature, cleanliness, etc.

The Service Encounter

is the moment of truth occurs any time the customer interacts with the firm can potentially be critical in determining customer satisfaction & loyalty types of encounters: remote encounters phone encounters face-to-face encounters is an opportunity to: build trust reinforce quality build brand identity increase loyalty

The Service Encounter

Service encounters are building blocks of quality service. How can hospitality businesses manage them more effectively? A two step process in the evaluation of a service chain. First, Service Managers should identify each encounter in the Service chain that they wish to take apart, & then single out those that are of operational or strategic significance. Second, apply what we have called the 6 Ss to improving these critical encounters through effective redesign

The Service Encounter

An initial management task is to understand a service encounter by discerning and dealing with those attributes that are most important to the clients. In doing so, pertinent questions must be raised about the specific service encounter(s) under consideration. With respect to service encounter, Service Managers might raise questions like:
oExactly what happened? oWhat were the guest/client reactions? oShould it be done differently? oWhat resources would assure optimal performance? oWhat changes should be made? oHow can such changes best be put into effect?

Service Mapping/Blueprinting
A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customers point of view.
Process

Service Mapping

Points of Contact Evidence

Service Blueprint Components

CUSTOMER ACTIONS line of interaction ONSTAGE CONTACT EMPLOYEE ACTIONS line of visibility BACKSTAGE CONTACT EMPLOYEE ACTIONS line of internal interaction SUPPORT PROCESSES

The Service Encounter

The specific encounter(s) under consideration will, of course, indicate the kinds of questions that should be pursued. It is important to obtain adequate information to understand the situation thoroughly. Determining the context of a situation relating to a Service encounter that has gone wrong establishes parameters for improvement.

The Service Encounter

Analysis of service encounters All this is part of the second step. With the information at hand hospitality managers can organize,& analyze the data & it is here that the 6S approach can help. These are: 1.Specification 2.Staff 3.Space 4.System 5.Support 6.Style

The Service Encounter

Which are the encounters that really matter? Those that add significant value to the guest Those that cost in time or money, Those that help to differentiate the business from its competitors Those where significant innovation is possible or occurring.

A Service Encounter Cascade for a Hotel Visit

Check-In Bellboy Takes to Room Restaurant Meal Request Wake-Up Call Checkout

Service Encounter Cascade for an Industrial Purchase

Sales Call

Delivery and Installation

Servicing Ordering Supplies

Billing

Critical Service Encounters Research

GOAL - understanding actual events and behaviors that cause customer dis/satisfaction in service encounters METHOD - Critical Incident Technique DATA - stories from customers and employees OUTPUT - identification of themes underlying satisfaction and dissatisfaction with service encounters

Sample Questions for Critical Incidents Technique Study

Think of a time when, as a customer, you had a particularly satisfying (dissatisfying) interaction with an employee of . When did the incident happen? What specific circumstances led up to this situation? Exactly what was said and done? What resulted that made you feel the interaction was satisfying (dissatisfying)?

Common Themes in Critical Service Encounters Research

Recovery:
Employee Response to Service Delivery System Failure

Adaptability:
Employee Response to Customer Needs and Requests

Coping:
Employee Response to Problem Customers

Spontaneity:
Unprompted and Unsolicited Employee Actions and Attitudes

Recovery
DO Acknowledge problem Explain causes Apologize Compensate/upgrade Lay out options Take responsibility DONT Ignore customer Blame customer Leave customer to fend for him/herself Downgrade Act as if nothing is wrong

Adaptability
DO
Recognize the seriousness of the need Acknowledge Anticipate Attempt to accommodate Explain rules/policies Take responsibility Exert effort to accommodate

DONT
Promise, then fail to follow through Ignore Show unwillingness to try Embarrass the customer Laugh at the customer Avoid responsibility

Spontaneity
DO
Take time Be attentive Anticipate needs Listen Provide information (even if not asked) Treat customers fairly Show empathy Acknowledge by name

DONT Exhibit impatience Ignore Yell/laugh/swear Steal from or cheat a customer Discriminate Treat impersonally

Coping
DO

DONT Take customers dissatisfaction personally Let customers dissatisfaction affect others

Listen Try to accommodate Explain Let go of the customer

Factors Influencing Customer Satisfaction

Product/service quality Product/service attributes or features Consumer Emotions Attributions for product/service success or failure Equity or fairness evaluations

Outcomes of Customer Satisfaction

Increased customer retention Positive Word-of-mouth communications Increased Revenues

Relationship between Customer Satisfaction & Loyalty in Competitive Industries

100%

Loyalty (retention)

80% 60% 40% 20% 0%

Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Very satisfied

Satisfaction measure

Service Quality
Service Quality is a Global judgment or attitude relating to the overall superiority of the service. Service quality is being increasingly perceived as a tool to increase value for the consumer; and as a means of positioning in a competitive environment to ensure consumer satisfaction, retention, and patronage. Existing research indicates that consumers satisfied with the service quality are most likely to remain loyal. However, despite its strategic importance, Indian Service Industry do not have an appropriate and established instrument to measure service quality.

Service Quality
In an age of thin profit margin, corporations are diligently looking for ways to differentiate themselves from the competitors, to beat the competition, to expand market share, to create quality differences, and even to achieve zero quality defects. The customers judgment of overall excellence of the service provided in relation to the quality that was expected. Process and outcome quality are both important.

Measuring Service Quality

Any exercise to measure service quality must take into account two kinds of factors: those pertaining to the industry in general and those pertaining to the service provider under consideration in specific. The economy of the country as a whole must also be measured. These factors must be weighted according to importance to measure their impact on the ultimate effect on service quality. The most popular tool used to measure service quality is SERVQUAL, a general instrument used to measure the service quality gap and measuring general expectations across service industries

SERVQUAL Methodology
SERVQUAL Methodology. Originally developed by leading customer satisfaction researchers Valarie Zeithaml, A. Parasuraman and Leonard Berry. SERVQUAL Methodology is an invaluable tool for companies to better understand what customers value and how well they are meeting the needs and expectations of customers. SERVQUAL provides a benchmark based on customer opinions of an excellent company, on a particular company, on the importance ranking of key attributes, and on a comparison to what your employees believe customers feel.

SERVQUAL METHODOLOGY
It provides detailed information about: customer perceptions of service (a benchmark established by your own customers); your performance levels as perceived by customers; customer comments and suggestions; impressions from employees with respect to customers expectations and satisfaction.
SERVQUAL has proven to be a simple yet effective tool for many organizations.

SERVQUAL METHODOLOGY
SERVQUAL was originally measured on 10 aspects of service quality: Reliability: Ability to perform the promised service dependably and accurately Responsiveness: Willingness to help customers and provide prompt service Competence: Possession of required skill and knowledge to perform service Access: Approachable and ease of contact Courtesy: Politeness, respect, consideration, friendliness of contact personnel

1.

2.
3. 4. 5.

SERVQUAL METHODOLOGY
6. Communication: Listens to customers and acknowledges their comments. Keeps customers informed in a language which they can understand 7. Credibility: Trustworthiness, believability, honesty of the service provider 8. Security: Freedom from danger, risk or doubt 9. Understanding: Making the effort to know the customer and their needs 10. Tangibles: Appearance of physical facilities, equipment, personnel and communication materials

The Five Dimensions of Service Quality

By the early 90s, the authors had reduced it to the useful acronym RATER:

Reliability Assurance Tangibles Empathy Responsiveness

Ability to perform the promised service dependably and accurately. Knowledge and courtesy of employees and their ability to convey trust and confidence. Physical facilities, equipment, and appearance of personnel. Caring, individualized attention the firm provides its customers. Willingness to help customers and provide prompt service.

Service Quality
Perceived Service Quality
Word of mouth Personal needs Past experience

Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles

Expected service

Perceived 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)

The Customer Gap

Expected Service
GAP

Perceived Service

Gaps Model of Service Quality

Gaps in Service Quality
Word -of-mouth communications Customer Expected service Personal needs Past experience

GAP 5
Perceived service

Service delivery (including pre- and post-contacts)

External communications to consumers

GAP 1

GAP 3
Translation of perceptions into service quality specifications

GAP 4

Provider

GAP 2
Management perceptions of consumer expectations

Gaps Model of Service Quality

There are five major gaps in the service quality concept. Gap1: Customers expectations versus Mgmt perceptions: as a result of the lack of a marketing research orientation, inadequate upward communication & too many layers of Mgmt. Gap2: Management perceptions versus service specifications: as a result of inadequate commitment to service quality, a perception of unfeasibility, inadequate task standardisation & an absence of goal setting. Gap3: Service specifications versus service delivery: as a result of role ambiguity and conflict, poor employee-job fit and

Gaps Model of Service Quality

poor technology-job fit, inappropriate supervisory control systems, lack of perceived control and lack of teamwork. Gap4: Service delivery versus external communication: as a result of inadequate horizontal communications and propensity to over-promise. Gap5: The discrepancy b/n customer expectations & their perceptions of the service delivered: as a result of the influences exerted from customer side & shortfalls (gaps) on the part of the service provider. In this case, customer expectations are influenced by the extent of personal needs, word of mouth recommendation & past service experiences.

Thank You !!!