Page 212 - DMGT522_SERVICES MANAGEMENT

Unit 10: Service Quality

10.1.2 Zero Defects vs. Zero Defections Notes

Ron Zemke has identified ten important differences in total quality marketing to be identified
by the service firms when compared to manufacturing firms. The required shift in the philosophy
of service firms against manufacturing firms:

Table 10.1: Zero Defects vs. Zero Defections
Zero Defects Zero Defections
(Manufacturing Firms) (Service Firms)
1. Technical quality Customer quality.
2. Treating errors as mortal sins Treating errors as opportunities to excel
3. Precise standards and performance. Transactions that delight customers.
4. Minimizing the human element. Capitalizing on the human element.
5. Creating standards and protocols for every Standards for technical quality.
aspect of transaction. Empowerment and recover, strategies for
customer quality.
6. No surprises standard operating procedures, Speed, flexibility, and ability to respond,
rote and drill. Reliability for unique standards.
7. Production quality Performance quality
8. Developing satisfactory and mutually Building lasting, creative customer
beneficial relationship relationship.
9. Customer satisfaction. Customer retention.
10. Reworking every policy and procedure to Experimenting, leap frogging the
perfection, creating absolutely seamless competition, taking measured risks and
performance. learning from them.

Zero defects are the target quality standards for the manufacturing firms. The product, which
does to stand to the quality standards, will be rejected at the points of quality check. However,
the total quality management concept that has been widely followed by many manufacturing
organisations; Provides that there should not be any defects in the performance and the goal
should be to achieve 100 per cent perfection right at the first time. In the case of services,
customers are sold promises first. If the service firm does not fulfill the promise it is called a
defection. Therefore, zero defections should be the goals service firms; Zemke’s suggested
change in orientation would certainly provide better insights to the service firms to ensure total
quality services marketing.
10.1.3 Research on Service Quality

Service firms can obtain information through research in service quality. The following are
some of the research approaches through which service firms can have useful information on
general or specific issues relating to service quality.
Regular customer surveys: Under this approach customer survey is a regular activity.
Either census study or sample studies will be conducted on regular intervals.

Use of consumer panel: Consumer panels are constituted with selected customers and
specific feed back information will be solicited from them. The panels also will be given
freedom to suggest on various issues to the organisation for further improvement.
Transactional analysis: Many times service organisations encounter with grievous
customers. With the use of transactional analysis, real reasons for dissatisfaction can be
traced and also valuable suggestions can be obtained. However, this approach has a limited
application to get information from market, as very few can be interacted through this
approach. In the case of employees, this approach is of immense use to unfold the reasons
for the problems and to take measures to correct them.

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