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MANAGING
SERVICE
QUALITY
DIWAKAR KUMAR
CONTENT
 Service quality
 Customer Expectations
 SERVICE-QUALITY MODEL
 Determinants of service quality
 Best practices of service-quality
  management
 Conclusion
SERVICE QUALITY

Service quality refers to a number of inter-related factors
including

the way in which individuals are treated by providers,
the scope of services and options available to clients,
the quality of the information provided to the clients and
quality of the counselling skills,
the promotion of individual choice,
the technical competence of providers, and
the accessibility and continuity of services.
CUSTOMER EXPECTATIONS
 Customer      forms service expectations from many
 sources

     PAST                WORD OF
                                             ADVERTISING
  EXPERIENCES             MOUTH

 In general, customer compare
                                    PERCIEVED
                                     SERVICE

  EXPECTED               FALLS     CUSTOMER DISAPPOINTED
                 V/S
   SERVICE

                         ABOVE       CUSTOMER MAY BE
                          mark     SATISFIED OR DELIGHTED
SERVICE-QUALITY MODEL

 The  service-quality model highlights
  the main requirements for delivering high
  service quality
 It identifies 5 gaps that causes unsuccessful
  delivery.
Figure showing
SERVICE-QUALITY MODEL
5 DETERMINANTS
or FACTORS OF SERVICE QUALITY
 Itis based on the service-quality model
  1. Reliability- The ability perform the promised
  service dependably and accurately.
  2. Responsiveness- The willingness to help customers
  and to provide prompt service.
  3. Assurance- The knowledge and courtesy of
  employees and their ability to convey trust and
  confidence.
  4. Empathy- The provision of caring, individualized
  attention to customers.
  5. Tangibles- The appearance of physical
  facilities, equipment, personnel, and
  communication materials.
Best Practices of
Service-Quality Management
A well-managed service companies share the
 following common practices:
                      2.                                 4.
    1.                                 3.
                     Top                           Self-Service
Strategic                             High
                  management                      Technologies
concept                            Standards
                  commitment                          (SSTs),




                          6.         7.
         5.
                      Satisfying     Satisfying
     Monitoring
                      Customer       Employees as well
      Systems
                     Complaints      as Customers
1. STRATEGIC CONCEPT
                   TOP SERVICE COMPANIES

      CUSTOMER                    CLEAR SENSE OF
      OBSESSED            TARGET CUSTOMERS & THEIR NEEDS

              DEVELOPE DISTINCTIVE STRATEGY

Example-
A BROKERAGE FIRM stays close to customers by assigning a
single FINANCIAL ADVISIOR & one ADMINISTRAITOR to each of
their branch offices.
2.TOP MANAGEMENT
COMMITMENT
 Organizations  like- McDonald’s, Apollo Hospitals,
  Infosys,& Wipro have a thorough commitment to
  service quality.
 Managements look not only at financial
  performance but also at service performance.
 Example-
  McDonald’s top management continually
  measures each outlet on the basis of
  “QSCV” -
  Quality, Service, Cleanliness, & Value.
3.HIGH STANDARDS
    BEST SERVICE         SET            HIGH SERVICE –
                                            QUALITY
     PROVIIDERS                           STANDARDS



Example-
                       CITY BANK
                   REPLY TO CUSTOMER




       CALLS                              LETTERS
 WITHIN 10 SECONDS                     WITHIN 2 DAYS
4-SELF SERVICE
TECHNOLOGIES(SST’s)
 Consumer   value convenience in service.
                    REPLACED
     PERSON –TO-       BY          SELF –SERVICE
   PERSON SERVICE                 TECHNOLOGIES

 Examples  of SST’s-
 1. Vending machine
 2. ATM’S
 3. Self pumping at gas station
 4. self checkout at hotels
 5. On Internet-
    Ticket purchasing, Trading, Customization of
 product
5. MONITORING
SYSTEMS:
                           AUDIT               OWN
      TOP FIRMS           SERVICE
                       PERFORMANCE         COMPETITORS

   To PROBE customers SATISFIERS & DISSATISFIERS they
    use-
      CUSTOMER       SUGGESTION &
                                       SERVICE AUDIT
       SURVEYS        COMPLAINTS
                                          TEAMS
                        FORMS

     COMPARISION
                    MYSTERY SHOPPING
      SHOPPING

   Ex- Fast-food-chains, use mystery shopper to
    pinpoint & fix customer-service problems.
6- SATISFYING
CUSTOMER COMPLAINTS
 “Every   complaints is a gift if handled well’’
                        CUSTOMER
                       COMPLAINTS




     REMEDY OF
                                        NO REMEDY
      SITUATION




   HIGH REVENUE                         LOW REVENUE
   GREATER PROFIT                       LESSER PROFIT
7. SATISFYING
EMPLOYEES AS WELL AS CUSTOMERS

   POSITIVE    WILL PROMOTE     STRONGER
  EMPLOYEE                      CUSTOMER
   ATTITUDE                      LOYALTY




 REWARDS FOR
                              CUSTOMER VISITS
     GOOD
                               SELLER AGAIN
 PERFORMANCE
CONCLUSION
 Customers  expectations play a critical role in their
  service experiences and evaluations.
 Companies must manage service quality by
  understanding the effects of each service
  encounter.
REFERENCES
 MARKETING   MANAGEMENT
  ( A SOUTH ASIAN PERSPECTIVE ), 13TH EDITION-
  by
  PHILIP KOTLER et al.
 Service quality -
  http://erc.msh.org/mainpage.cfm?file=2.2.3s.htm
  &module=gmt&language=English
THANKS 4 LISTENING
    ANY Q’S

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Managing Service Quality: A Guide to Best Practices

  • 2. CONTENT  Service quality  Customer Expectations  SERVICE-QUALITY MODEL  Determinants of service quality  Best practices of service-quality management  Conclusion
  • 3. SERVICE QUALITY Service quality refers to a number of inter-related factors including the way in which individuals are treated by providers, the scope of services and options available to clients, the quality of the information provided to the clients and quality of the counselling skills, the promotion of individual choice, the technical competence of providers, and the accessibility and continuity of services.
  • 4. CUSTOMER EXPECTATIONS  Customer forms service expectations from many sources PAST WORD OF ADVERTISING EXPERIENCES MOUTH In general, customer compare PERCIEVED SERVICE EXPECTED FALLS CUSTOMER DISAPPOINTED V/S SERVICE ABOVE CUSTOMER MAY BE mark SATISFIED OR DELIGHTED
  • 5. SERVICE-QUALITY MODEL  The service-quality model highlights the main requirements for delivering high service quality  It identifies 5 gaps that causes unsuccessful delivery.
  • 7. 5 DETERMINANTS or FACTORS OF SERVICE QUALITY  Itis based on the service-quality model 1. Reliability- The ability perform the promised service dependably and accurately. 2. Responsiveness- The willingness to help customers and to provide prompt service. 3. Assurance- The knowledge and courtesy of employees and their ability to convey trust and confidence. 4. Empathy- The provision of caring, individualized attention to customers. 5. Tangibles- The appearance of physical facilities, equipment, personnel, and communication materials.
  • 8. Best Practices of Service-Quality Management A well-managed service companies share the following common practices: 2. 4. 1. 3. Top Self-Service Strategic High management Technologies concept Standards commitment (SSTs), 6. 7. 5. Satisfying Satisfying Monitoring Customer Employees as well Systems Complaints as Customers
  • 9. 1. STRATEGIC CONCEPT TOP SERVICE COMPANIES CUSTOMER CLEAR SENSE OF OBSESSED TARGET CUSTOMERS & THEIR NEEDS DEVELOPE DISTINCTIVE STRATEGY Example- A BROKERAGE FIRM stays close to customers by assigning a single FINANCIAL ADVISIOR & one ADMINISTRAITOR to each of their branch offices.
  • 10. 2.TOP MANAGEMENT COMMITMENT  Organizations like- McDonald’s, Apollo Hospitals, Infosys,& Wipro have a thorough commitment to service quality.  Managements look not only at financial performance but also at service performance.  Example- McDonald’s top management continually measures each outlet on the basis of “QSCV” - Quality, Service, Cleanliness, & Value.
  • 11. 3.HIGH STANDARDS BEST SERVICE SET HIGH SERVICE – QUALITY PROVIIDERS STANDARDS Example- CITY BANK REPLY TO CUSTOMER CALLS LETTERS WITHIN 10 SECONDS WITHIN 2 DAYS
  • 12. 4-SELF SERVICE TECHNOLOGIES(SST’s)  Consumer value convenience in service. REPLACED PERSON –TO- BY SELF –SERVICE PERSON SERVICE TECHNOLOGIES  Examples of SST’s- 1. Vending machine 2. ATM’S 3. Self pumping at gas station 4. self checkout at hotels 5. On Internet- Ticket purchasing, Trading, Customization of product
  • 13. 5. MONITORING SYSTEMS: AUDIT OWN TOP FIRMS SERVICE PERFORMANCE COMPETITORS  To PROBE customers SATISFIERS & DISSATISFIERS they use- CUSTOMER SUGGESTION & SERVICE AUDIT SURVEYS COMPLAINTS TEAMS FORMS COMPARISION MYSTERY SHOPPING SHOPPING  Ex- Fast-food-chains, use mystery shopper to pinpoint & fix customer-service problems.
  • 14. 6- SATISFYING CUSTOMER COMPLAINTS  “Every complaints is a gift if handled well’’ CUSTOMER COMPLAINTS REMEDY OF NO REMEDY SITUATION HIGH REVENUE LOW REVENUE GREATER PROFIT LESSER PROFIT
  • 15. 7. SATISFYING EMPLOYEES AS WELL AS CUSTOMERS POSITIVE WILL PROMOTE STRONGER EMPLOYEE CUSTOMER ATTITUDE LOYALTY REWARDS FOR CUSTOMER VISITS GOOD SELLER AGAIN PERFORMANCE
  • 16. CONCLUSION  Customers expectations play a critical role in their service experiences and evaluations.  Companies must manage service quality by understanding the effects of each service encounter.
  • 17. REFERENCES  MARKETING MANAGEMENT ( A SOUTH ASIAN PERSPECTIVE ), 13TH EDITION- by PHILIP KOTLER et al.  Service quality - http://erc.msh.org/mainpage.cfm?file=2.2.3s.htm &module=gmt&language=English
  • 18. THANKS 4 LISTENING ANY Q’S