Chapter 6 Learning Objectives Describe and illustrate dimensions of service quality Use the service quality gap model to diagnose quality problems Apply poka yoke methods to a service Perform service quality function deployment ID: 536819
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Service Quality
Chapter 6Slide2
Learning Objectives
Describe and illustrate dimensions of service quality.
Use the service quality gap model to diagnose quality problems.
Apply
poka-yoke methods to a service.Perform service quality function deployment.Construct a statistical process control chart for a service operation.Describe unconditional service guarantees.Perform a walk-through audit (WtA).Explain the concept of service recovery.
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Moments of Truth
Each customer contact is called a moment of truth.
You have the ability either to satisfy or dissatisfy customers when you contact them.
A
service recovery is satisfying a previously dissatisfied customers and making them loyal customers.6-3Slide4
Dimensions of Service Quality
Reliability: Perform promised service dependably and accurately. Example
: receive mail at same time each day.
Responsiveness
: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason. 6-4Slide5
Dimensions of Service Quality
Assurance: Ability to convey trust and confidence, e.g., being polite and showing respect for customer
Empathy
: Ability to be approachable, e.g., being a good listener
Tangibles: Physical facilities and facilitating goods, e.g., cleanliness. 6-5Slide6
Perceived Service Quality
Word of
mouth
Personal needsPast experienceExpectedservicePerceivedservice
Service Quality
Dimensions
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Service Quality Assessment
1. Expectations exceeded
ES<PS (Quality surprise)
2. Expectations met
ES~PS (Satisfactory quality)
3. Expectations not met
ES>PS (Unacceptable quality)
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Service Quality Gap Model
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Walk-Through-Audit
Service delivery system should conform to customer expectations.
Customer impression of service is influenced by use of all senses.
Service managers lose sensitivity owing
to familiarity.A detailed service audit from a customer’s perspective is needed. 6-8Slide9
Quality Service by Design
Quality in the Service Package Budget Hotel example
Poka-yoke (fail-safing)
Height bar at amusement park
Quality Function Deployment House of Quality 6-9Slide10
Taguchi’s Cost of Quality Function
Taguchi quadratic
cost function
(internal quality)
Customer cost function (no loss within limits)6-10Slide11
Classification of Service
Failures
Server Errors
Task
: Doing work incorrectlyTreatment: Failure to listen to customerTangible: Failure to wear clean uniformCustomer ErrorsPreparation: Failure to bring necessary materialsEncounter: Failure to follow system flowResolution:
Failure to signal service failure
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House of Quality
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Achieving Service Quality
Cost of Quality (Juran)Statistical Process Control (Deming)
Unconditional Service Guarantee
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Costs of Service Quality
(Bank Example)
Failure costs Detection costs Prevention costs
External failure: Process control Quality planning Loss of future business Peer review Training program Negative word-of-mouth Supervision Quality audits Liability insurance Customer comment card Data acquisition and analysis Legal judgments Inspection Recruitment and selection Interest penalties Supplier evaluation Internal failure: Scrapped forms Rework Recovery:
Expedite disruption
Labor and materials
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Control Chart of Departure Delays
expected
Lower Control Limit
1998
1999
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Unconditional Service
Guarantee: Customer View
Unconditional (L.L. Bean)
Easy to understand and communicate (Bennigan’s)
Meaningful (Domino’s Pizza)Easy to invoke (Cititravel)Easy to collect (Manpower)6-16Slide17
Unconditional Service
Guarantee: Management View
Focuses on customers (British Airways)
Sets clear standards (FedEx)
Guarantees feedback (Manpower)Promotes an understanding of the service delivery system (Bug Killer)Builds customer loyalty by making expectations explicit6-17Slide18
Customer Satisfaction
All customers want to be satisfied.
Customer loyalty is due only to the lack of a better alternative
Giving customers some extra value will
delight them by exceeding their expectations and insure their return 6-18Slide19
Customer Feedback
and Word-of-Mouth
The average business hears only from 4% of their customers who are dissatisfied with their products or services. Of the 96% who do not bother to complain, 25% of them have serious problems.
The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers.
About 60% of the complainers would stay as customers if their problem were resolved and 95% would stay if the problem were resolved quickly.A dissatisfied customer will tell between 10 and 20 other people about the problem.A customer who has had a problem resolved by a company will tell about 5 people about the situation.6-19Slide20
Service Recovery Framework
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Approaches to Service
Recovery
Case-by-case
approach addresses each customer’s complaint individually but could lead to perception of unfairness.Systematic response approach uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating.Early intervention approach attempts to fix a problem before the customer is affected.Substitute service approach allows rival firm to provide service but could lead to loss of customer.6-21Slide22
Topics for Discussion
How do the five dimensions of service quality differ from those of product quality?
Why is measuring service quality so difficult?
Illustrate the four components in the cost of quality for a service.
Why do service firms hesitate to offer a service guarantee?How can recovery from a service failure be a blessing in disguise?6-22Slide23
The Complaint Letter
1. Briefly summarize the complaints and compliments in Dr. Loflin’s letter.
2. Critique the letter of Gail Pearson in reply to Dr. Loflin. What are the strengths and weaknesses of the letter?
3. Prepare an “improved” response letter from Gail Pearson.
4. What further action should Gail Pearson take in view of this incident?6-23Slide24
The Helsinki Museum of Art and Design
1. Critique the WtA gap analysis. Could there be other explanations for the gaps?
2. Make recommendations for closing the gaps found in the WtA.
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Interactive Exercise
The class breaks into small groups. Each group identifies the worst service experience and the
best
service experience that any member has had. Return to class and discuss what has been learned about service quality.
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