Page 58 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 3: Services and their Characteristics

A consumer may enjoy a particular brand because of its unusual taste or features; and yet he may Notes
regard some other brand as being of higher quality e.g. you may enjoy Dosa at Karnataka
Restaurant but still feel that the one at Sagar Ratna is the best. This highlights that customers
make judgments about the quality of service delivery process as well as the final outcome. The
independent businessman might assess the quality of the consultant’s work not only on the final
appearance of the techno-economic feasibility report but also on the way the employees of the
organization respond to the queries and the speed with which the work is being performed.

A service is made up of tangible and intangible components. Researchers have made attempts to
define service quality and in the process have made distinction between objective measures of
quality and subjective measures of quality. According to Gronroos, a service can be broken
down into two components, namely technical quality and functional quality; both the dimensions
are relevant to customers. For a service provider, it is the starting point to know how quality is
judged by customers and what are perceptual processes of this judgment towards the quality of
service experienced.

Table 3.1: Two Dimensions of Quality

Component Definition Example
Technical Quality Relates to quantifiable aspects of In case of repair of car, customer may
service i.e. ‘what’ is being done. look at the equipment and machinery
This aspect can be accurately being used to repair the car.
measured.
Functional Quality Relates to ‘how’ technical quality is The general attitude, behavior,
being delivered to consumer. This appearance, dress code of the
aspect cannot be as accurately employee may be instrumental for
measured. functional quality being delivered.

Whatever approach we may take to define quality, most researchers are of the view that it is the
customer who defines quality.

Task How is it possible to manage quality of service for a firm, which has wider and
deeper service mix? Take the case of a multiple service provider like ICICI Bank and
explain various service levels.

Self Assessment

Fill in the blanks:
8. In …………………approach, customers try to judge the product’s conformance to
standardized requirements, which have been set by reference to what company managers
think the failure point is.
9. Service providers are giving increasing emphasis on creating reputation for good quality
of service as this provides a …………………..for their organization.
10. Quality management involves deciding on quality standards and implementing a method
of ……………on performance level of the staff and the facilities.
11. ………………..approach starts from the premise that quality “lies in the eyes of the beholder”.

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