Page 60 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 3: Services and their Characteristics

Figure 3.5: Dimensions of Service Quality Notes

Influencing Expectations

Word of Mouth Personal Needs Past Experiences External

Communication Communications

Perceived Service Quality

Dimensions of

Service Quality Expected 1. Expectations exceeded

Services
ES>PS (Quality Surprise)

 Reliability

 Responsiveness 2. Expectations MET

 Assurance
ES=PS (Satisfactory Quality)
 Empathy

 Tangibles Perceived 3. Expectations not met
Services
ES<PS (Unacceptable Quality)

There are various issues involved in the quality of service productivity. The managerial task is
Dimensions of Service Quality
to transform the service inputs into outputs, to bring a balance between the productivity and

quality of services. If the productivity increases then there is a chance that the quality might be

compromised. Whether technology is the issue related to delivery of services or the quality of
manpower; the service provider will decide the perception of the service. Productivity helps to
keep the costs down as lowering prices helps in building the market and competing better.
Higher productivity helps in generating additional revenue, which helps in enhancing marketing
budget and rising profits, which in turn, helps in investing in innovative service management
programs.
Quality helps in gaining competitive advantage through services in a commodity market. It
also helps in increasing customer value, which contributes towards improving the bottom line.
The service quality is measured using three parameters - efficiency, effectiveness and productivity.
Efficiency is a comparison to a standard, which is usually a time-based phenomenon that explains
how long the employee takes to perform a service function. Effectiveness is the degree to which
the firm meets its goals whereas productivity is the financial evaluation of output to input i.e.
consistent delivery of output desired by customers should command higher price.
3.4.1 Gaps in Service Quality Delivery
Leading service and consumer durable companies measure the gap between the customer’s
service expectations against the perceived services as a routine feedback process. Zeithaml,
Parasuraman and Berry developed a model which suggest that customers become dissatisfied
when their perceptions about service performance don’t match their expectations and the model
explains five gaps that can lead to customer dissatisfaction. Expectations are affected by four
factors – customer’s personal need, past experience with the service providers, word of mouth
communication with other customers and communications from service firm and its competitors.
What the service provider promised and what he ultimately delivered affect the perceptions of
the quality of services. This model identifies five gaps as mentioned in the Box 3.3.

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