Thursday, 20 May 2021

Service quality (Service Marketing 20.05.2021)

Service quality generally refers to a customer's comparison of service expectations as it relates to a company's performance. A business with a high level of service quality is likely capable of meeting customer needs while also remaining economically competitive in their respective industry.

 

The components of excellent service quality

1. Great service climate is a key to excellent service quality.

2. Service Strategy.

3. Service Performance.

4. Customer Results.

 

The main characteristics of service quality are as follows:

(i) Clients are a direct part of the process, bringing perceptions and expectations to the transaction that become part of their interaction with you.

 

(ii) Unlike a manufactured product, which can be made, inspected, and controlled for quality before it is released to the client, service quality cannot be inspected before delivery.

 

(iii) Because clients participate fully in the transaction, they are concerned both with the output or result of the transaction, and the process for delivering that outcome.

 

(iv) In a production environment, eliminating variance is critical to making high-quality goods. In delivering service, satisfying clients depends not on eliminating variance, but rather on personalizing the service delivery to the unique circumstances of each transaction. Applying certain principles consistently rather than providing an identical response to each transaction, is the key to delivering quality service.

 

(v) Client satisfaction is subjective. It is made up of two essential ingredients—expectations and perceptions of delivery. Clients have unique expectations based on their individual experience and needs. They have their own perception of what they received. Any difference between what they expected to get and what they perceive they got, will affect their satisfaction.

 

Objectives of Service Quality:

The subject of service quality has aroused considerable recent interest among businesspeople and academics. Of course, buyers have always been concerned with quality, but the increasing competitive market for many services has led consumers to become more selective in the services they choose. Conceptualising the quality for services is more complex than for goods. Because of the absence of tangible manifestations, measuring service quality can be difficult but there are possible research approaches.

 

Comprehensive models of service quality and their limitations can be studied. Understanding just what dimensions of quality are of importance to customers is not always easy in their evaluation process. It is not sufficient for companies to set quality standards in accordance with misguided assumptions of customers’ expectations.

 

A further problem in defining service quality lies in the importance which customers often attach to the quality if the service provider is distinct from its service offers – the two cannot be separated as readily as in the case of goods. Finally, issues relating to the setting of quality standards and implementation of quality management should be studied.

 

Important Attributes of Service Quality

The process used for goods in evaluating services differs from the process used by consumers. Goods tend to be high in search qualities whole services tend to be high in accepted quality and experience.

 

1. Search Qualities:

Search qualities are attributes that consumers can evaluate prior to purchasing a service or good. Items such as colour, style, fit, feel, smell, and price, are found included in the search qualities. Some products such as shoes, jeans, washing machines, cars are high in search qualities.

 

Raw materials, component parts, and office supplies (business goods) also tend to be high in search qualities. Consumers can easily evaluate the quality of goods prior to purchase since they are high in search qualities.

 

2. Experience Qualities:

Experience qualities are attributes that consumers can evaluate only during or after the consumption process. Food, catering services, meals, entertainment, and cosmetic surgery are services high in experience qualities. Under the business services, some services which are high in experience include lawn services, delivery services etc. Only after the service has been consumed or during the process of consumption, evaluation takes place. For example, a meal at a restaurant can only be evaluated once it is eaten and not before.

 

3. Credence Qualities:

Credence qualities are attributes that consumers have difficulty evaluating even after the consumption is complete. Consumer services such as accountant services, funeral services, education, and veterinarian care are examples of services high in credence qualities.

 

Examples in the business sector would include financial advice, and advertising services. Few consumers have the medical knowledge or tax knowledge to judge if the service provider performed the service properly. The same is true for a business trying to evaluate consulting or advertising services. Clearly, evaluating services high in credence qualities is difficult.

 

Service Quality – 6 Important Strategies for Enhancing the Quality of Service Offered to Customers

It is not too difficult for companies to improve service quality. What is required is the right strategy to do it and the commitment by all members of the organisation.

 

1. A service provider should aim at achieving zero-defects or error-free service. This can be achieved by having a management that believes in 100% perfection, providing the necessary infrastructure that facilitates error-free service, and by testing and retesting service processes at various stages to eliminate any loopholes. This will also help them improve continuously to set and achieve new standards.

 

For example, DHL set up a separate express terminal spread over 26,500 sq. feet, using state-of-the-art technology, at Indira Gandhi International Airport, Delhi. As the customs’ staff work round-the-clock at this site, the process of clearance of customers’ consignments have been speeded up, enabling DHL to deliver consignments faster to customers.

 

2. Internal communication promotes better understanding among employees of each other’s tasks and responsibilities, and the difficulties involved, and enhances cooperation and coordination which eventually results in better service to customers. Also, organisations should be equipped with modem training equipment and techniques to simulate real work environment and train employees to deliver quality service.

 

UTI (Unit Trust of India), which saw its scale of operations and number of employees increase significantly, implemented an advanced communication system with the help of Wipro, to facilitate effective communication among its scattered branches and employees.

 

3. Service providers should always test a service prior to launching it in the marketplace. If possible, a new service should be introduced in a few select places for test marketing. This will allow sometime for the management to obtain customer feedback. In case customers report problems, the management can take corrective action.

 

Another approach to prevent problems is to develop a service blueprint to identify all the activities that lead to final service delivery, identify problem areas and train employees to handle the problems. Service providers should also test the service after launching it. Setting higher service quality goals and striving to achieve them should be an on-going process as any complacency will render the service out-dated in a competitive market.

 

4. Sometimes, service providers fail to deliver the service despite all the precautions they take to prevent a failure. At such times, customers’ perception of service quality depends on the service provider’s ability to resolve the problem immediately. To enable effective service recovery and regain customers’ confidence, service providers should train employees in recovery techniques and empower them to resolve the problem immediately. Also, they should reward employees who take the initiative and resolve the problem quickly.

 

5. The management should extend support to employees by setting up the necessary information system and other infrastructure that enables employees to identify and rectify errors with ease. Further, organisations should encourage teamwork among employees. By having an effective service recovery system in place, service providers can assure customers that they care for them.

 

6. Trained employees will be prepared to face problems and, therefore, can resolve them as soon as they occur and sometimes even before the customer can perceive the error.

 

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