DIMENSIONS/DETERMINANTS OF SERVICE QUALITY: (Nov 2019

Meaning :
It refers to process quality as judged by the consumers during a service delivery and the quality
of output judged after a service is performed.Parasuraman, Zeithamel and Berry (1985) defined
five dimensions for service quality.

They were consolidated into five broad dimensions.

1. Reliability:
It is the capacity to deliver the promised service accurately on time. The milkman who delivers
milk on a regular basis in time is reliable.
2. Assurance:
It means that the knowledge which the provider possess which enables him to perform the
services competently. It also includes courtesy aspects such asdence, politeness and respect for
our customers.
3. Tangibles:
Tangibles are those factors which the consumer can feel, hear and touch. Tangibles are used
while assessing the physical qualities and before the service is experienced.
4. Empathy:
It means the power of understanding the customer's feelings and needs that enables the server to
take care of the customer and provide personal attention. It is described as human touch.
5. Responsiveness:
It refers to the willingness to help customers and provide prompt service. Responsiveness is an
important dimension for those customers who require some extra service over and above that is
usually provided.
Conclusion :
Service quality is a multifaceted concept that encompasses various dimensions, each playing a
critical role in shaping the overall customer experience. By focusing on tangibility, reliability,
responsiveness, assurance, and empathy, service providers can enhance customer satisfaction and
build long-term loyalty.

SERVQUAL MODEL GAP ANALYSIS/SERVICE QUALITY GAP/SERVICE GAP

MODEL: (Oct. 18; May; Nov. 19)

Meaning :
In order to develop a greater understanding of the nature of service quality and how it is achieved
in an organisation, a service quality model is shown below. It was developed by Parasuraman in
1985. The model clearly indicates that the consumers' quality perceptions are influenced by a
series of five distinct gaps occurring in the organisation.

Gap 1: Knowledge Gap

The knowledge gap is the difference between the customer's expectations of the service and the
company's provision of that service. There are a number of reasons this could happen, including:
● Lack of management and customer interaction.
● Lack of communication between service employees and management.
● Insufficient market research.
● Insufficient relationship focus.
● Failure to listen to customer complaints,
Gap 2: The Policy Gap
The policy gap is the difference between management's understanding of the customer needs and
the translation of that understanding into service delivery policies and standards.
There are a number of reasons why this gap can occur;
● Poorly defined service levels.
● Failure to regularly update service level standards.
Gap 3: The Delivery Gap
The delivery gap is the difference between service delivery policies and standards and the actual
delivery of the service.
This gap can occur for a number of reasons:
● Deficiencies in human resources policies.
● Failure to match supply to demand.
● Employee lack of knowledge of the product.
● Lack of cohesive teamwork to deliver the product or service.
Gap 4: The Communication Gap
The communication gap is the gap between what gets promised to customers through advertising
and what gets delivered. Again, there are a number of reasons why this can happen:
● Overpromising.
● Viewing external communications as separate to what's going on internally.
● Insufficient communications between the operations and advertising teams.
Communication gaps lead to customer dissatisfaction. This happens because what they receive
isn't what they were promised. In the worst case, it may cause them to turn to an alternative
supplier.
Gap 5: Perception Gap:
The difference between customer expectations of service quality and their perception of the
service received. This is the ultimate gap that determines customer satisfaction. This gap is
crucial because it directly influences customer satisfaction or dissatisfaction. If customers
perceive the service they received as meeting or exceeding their expectations, they are likely to
be satisfied.

PRESCRIPTIONS FOR CLOSING SERVICE GAPS: (Oct. 18; May 19)

Gap 1 Prescription: Learn what customer expects:

Get a better understanding of customer expectation through research, complaint analysis,
consumer panel etc. Increase direct interactions between managers and customers to improve
understanding.
Gap 2 Prescription: Establish the Right Quality Standards:
Ensure that the top management displays ongoing commitments to quality as defined from the
customer's point of view. Get middle management to set, communicate and reinforce
customer-oriented service standards for their work units. Train managers in skills needed to lead
employees to deliver quality service. Clarify to employees which job tasks have the biggest
impact on quality and should receive the highest priority.
Gap 3 Prescription: Ensure that performance meets standards:
Clarify employer's role. Ensure that all employees understand how their jobs contribute to
consumer satisfaction. Match employees' to jobs by selecting for the abilities and skills needed to
perform each job well. Provide employees' with technical training needed to perform the
assigned task effectively.
Gap 4 Prescription: Ensure that delivery matches promises:
Seek inputs from operation personnel when new advertising programs are being created.
Develop advertising that features real employees performing their jobs. Allow service providers
to preview advertisements before customers are exposed to them. Get sales staff to involve
operators' staff in face-to-face meetings with customers.

SERVQUAL Model with reference to Airline industry: (Oct. 18)

SERVQUAL takes into account the perceptions of customers of the relative importance of
service attributes. This allows an organization to prioritize. And to use its resources to improve
the most critical service attributes.
The methodology is originally based around 5 key dimensions:
(1) Tangibles: Appearance of physical facilities, equipment, personnel, and communication
materials. In case of airline industry the following attributes will be considered:
➤ In-flight modern and clean facilities.
➤ Variety and quality of in-flight meals.
➤ Variety and choices of in-flight entertainment facilities.
➤ Providing visually appealing equipment.

(2) Reliability: Ability to perform the promised service dependably and accurately.
➤ Efficiency of the check-in process.
➤ Transfer service and efficiency at departure airport.
➤ On-time performance of scheduled flights.
➤ Remedial procedures for delayed or missing baggage.

(3) Responsiveness:
➤ Willingness to help customers and provide prompt service.
➤ Capable to response to emergency situations.
➤ Prompt attention to passenger specific needs.
➤ Understanding the specific needs of passengers.
(4) Assurance: Knowledge and courtesy of employees and their ability to convey trust and
confidence.
➤ Sincerity and patience in dissolving passengers problems.
➤ Probability of flight breakdowns.
➤ Safety performance of a line.
➤ Knowledgeable and skilful provision of services.

(5) Empathy: The firm provides care and individualized attention to its customers.
➤ Numerous, easy to use ticketing channels.
➤ Convenient flight scheduling.
➤ Spontaneous care and concern for passengers needs.
➤ Frequently been service announced by flight attendants.

Improving Service Quality in Banking Services using SERVQUAL Model:

1. Tangibles:
Excellent banks will have:
● Modern equipment.
● Visually appealing physical facilities.
● Neat, well dressed employees.
● Visually appealing materials are associated with the service
2. Reliability:
● Carry out what they promise to do.
● Show sincere interest in solving problems.
● Perform well right from the first time.
● Insist on error free records.
3. Responsiveness: Employees of excellent banks will:
● Tell customers exactly when the service will be performed.
● Give prompt service to customers.
● Always be willing to help customers.
4. Assurance: Employees of excellent banks will:
● Instill confidence in customers.
● Be consistently courteous to customers.
● Have the answer to customers questions.
5. Empathy: do Excellent banks will:
● Give individual attention to customers.
● Have convenient operating hours for all their customers.
● Understand the specific needs of their customers.
BENCHMARKING:

Benchmarking is the competitive edge that allows organizations to adapt, grow, and thrive
through change. Benchmarking is the process of measuring key business metrics and practices
and comparing them within business areas or against a competitor, industry peers, or other
companies around the world to understand how and where the organization needs to change in
order to improve performance.

Types / Levels of Benchmarking:

1. Internal Benchmarking:
Internal benchmarking involves comparing performance, processes, or practices within different
departments, divisions, or units of the same organization. It aims to identify best practices and
opportunities for improvement by leveraging internal expertise and resources.
2. Competitive Benchmarking:
Competitive benchmarking involves comparing an organization's performance, processes, or
practices against direct competitors within the same industry or sector. It helps organizations
understand their competitive position, strengths, weaknesses, and areas for differentiation.
3. Functional Benchmarking:
Functional benchmarking involves comparing specific functions, processes, or practices across
different industries or sectors. It allows organizations to gain insights from best practices in
unrelated industries that may have relevance or applicability to their own operations.
4. Strategic Benchmarking:
Strategic benchmarking involves comparing overall strategies, business models, and
performance metrics across industries or sectors. It focuses on understanding how top-
performing organizations achieve strategic objectives and competitive advantage, enabling
organizations to identify strategic opportunities and challenges.
5. Process Benchmarking:
Process benchmarking involves comparing specific processes, workflows, or procedures within
an organization or across industries. It aims to identify inefficiencies, bottlenecks, and
opportunities for process improvement by analyzing best practices and performance metrics.
6. Performance Benchmarking:
Performance benchmarking involves comparing key performance indicators (KPIs), metrics, or
financial ratios against industry benchmarks, standards, or peer group averages. It helps
organizations assess their performance relative to industry norms and identify areas for
performance improvement.
7. Best-in-Class Benchmarking:
Best-in-class benchmarking involves comparing performance, processes, or practices against
top-performing organizations within a specific industry or sector. It focuses on identifying and
adopting best practices and strategies from industry leaders to achieve superior performance

Process of Benchmarking:

1. Identify Objectives and Scope:

Define the objectives of the benchmarking initiative and the scope of the comparison. Determine
what aspects of performance, processes, or practices you want to benchmark and the criteria for
selection.
2. Select Benchmarking Partners:
Identify potential benchmarking partners, which could include internal departments, external
organizations within the same industry, or companies in unrelated industries with relevant best
practices.
3. Gather Data and Information:
Collect relevant data and information related to the performance, processes, or practices to be
benchmarked. This may include financial metrics, operational data, process documentation, and
qualitative insights.
4. Analyze Performance Metrics:
Analyze the collected data and performance metrics to understand current performance levels,
Identify areas of strength and weakness, and determine opportunities for improvement.
5. Identify Best Practices:
Research and analyze best practices employed by benchmarking partners or Industry leaders.
Identify Innovative strategies, processes, or practices that contribute to superior performance or
outcomes,
6. Perform Gap Analysis:
Compare your organization's performance, processes, or practices against benchmarking partners
or industry benchmarks. Identify performance gaps and areas where improvements can be made
to align with best practices.
7. Develop Action Plan:
Based on the findings of the benchmarking analysis, develop a comprehensive action plan
outlining specific initiatives, strategies, and timelines for improvement. Assign responsibilities
and resources for implementing the action plan.
8. Implement Improvements:
Implement the identified improvements and Initiatives as outlined in the action plan. This may
involve process redesign, technology adoption, organizational changes, or training and
development programs.
9. Monitor and Measure Progress
Continuously monitor and measure progress against the established benchmarks and
performance targets. Track key performance Indicators (KPIs), metrics, and outcomes to assess
the effectiveness of implemented improvements.
10. Review and Iterate:
Regularly review benchmarking results, performance metrics, and outcomes to evaluate the
effectiveness of implemented improvements. Identify further opportunities for refinement,
iteration, and continuous Improvement
11. Repeat Benchmarking Process:
Periodically repeat the benchmarking process to ensure ongoing performance improvement and
to stay aligned with industry standards, market trends, and evolving best practices.
Advantages of Benchmarking (2017,2018)

Performance Enhancement:
Benchmarking enables organisations to compare their practices, processes, and performance
metrics against industry leaders or competitors. This analysis highlights areas for improvement,
allowing organisations to implement best practices and enhance their operational efficiency,
product quality, customer satisfaction, and overall performance.
Competitive Edge:
By benchmarking, organisations can identify unique strategies and practices that provide a
competitive advantage. Learning from the successes of others and incorporating industry-leading
approaches enables organisations to differentiate themselves in the market and stay ahead of
competitors.
Fostering Innovation and Learning:
Benchmarking nurtures a culture of continuous improvement, learning, and innovation within
organisations. By studying best practices and emerging trends, businesses can generate fresh
ideas, drive innovation, and improve their processes and products.
Informed Strategic Decision-Making:
Benchmarking provides objective data and insights that inform strategic decision-making. It
helps organisations allocate resources effectively, prioritize process improvement initiatives, and
position themselves in the market based on industry best practices.
Customer Focus:
Benchmarking allows organisations to understand customer expectations and evaluate their
performance in delivering products or services. By benchmarking customer service practices and
satisfaction levels, organisations can identify areas for improvement and enhance the overall
customer experience, leading to increased loyalty.
Collaboration and Networking:
Benchmarking often involves collaboration and networking with external organisations. By
engaging in benchmarking initiatives, organisations can build valuable networks, establish
partnerships, and share knowledge with industry peers. Such collaborations foster innovation and
provide insights through shared experiences.
Driving Organisational Change:
Benchmarking challenges the status quo and promotes a culture of continuous improvement
within organisations. It encourages organisational change by presenting tangible evidence and
demonstrating the benefits of adopting new practices or processes.
Improving Service Quality and Productivity

Improving Service Quality

1. Customer satisfaction and customer focus
Companies are acknowledging that unless customer needs are taken into account in designing
and delivering both services and goods, all the technical superiority in the world will not bring
success.
2. Value
Another key competitive factor defining the way services are bought and sold is value. In the
words of the business observer, the marketing of value has "gone from a ground swell to a tidal
wave." Value reflects the growing customer concern of getting more for money, time, and effort
invested.
3. Total Quality Management and Service Quality
Total quality management (TQM) is the term widely used to capture the movement, although this
concept is used in a myriad of ways. TQM has most often been defined as a management
philosophy or way of doing business based on continuous quality improvement. TQM has
subsumed a diverse group of quality techniques and strategies, among them statistical process
control, process management, employee participation, management commitment and leadership,
empowerment, and team building.
4. Emphasis on Service as a Key Differentiator in Manufacturing Firms
Competitive parity has been reached in many manufactured goods (such as personal computers,
video cassette recorders, and other electronic products, to name just a few) meaning that product
quality alone no longer differentiates one producer from another. Goods firm in industries such
as automobiles; computers and most industrial firms are heavily focusing on service.
5. New Measurement Systems that Link Customer Satisfaction with Financial Goals and
Operational Measurements
Focusing on customers' priorities led the company to many changes, one of the most important
being a company- wide measurement effort emphasizing customer satisfaction. When
committing resources to improve service quality, company executives, want to be sure that these
investments will pay off. To document the payoff, many organizations have put in place
measures that capture both the costs and gains of service quality.
6. Internationalization of Services
At one time-and indeed, not so long ago-the potential for services to be provided on a global
basis was limited by the belief that services cannot be transported. That time is now past, for the
internationalization of services has become a reality. Probably the most dramatic examples of
global service markets are in the airline and financial services industries.
Improving Productivity

Meaning :
Improved productivity must, therefore, take into account effectiveness as well as efficiency.
Productivity improvements in the service sector are possible and a number of ways of improving
service productivity are suggested.
1. Improving Staff
One way is through improving the knowledge, skills, attitudes and behaviour of existing and new
staff involved in service delivery and performance through better systems of recruitment,
training, development and motivation. Productivity bargaining schemes with considered
measures of output and formulae for sharing gains can be operated to provide incentives for
improved productivity.
2. Introducing Systems and Technology
Service organizations can reap productivity improvements if they become more systems and
technology oriented. The systems approach looks at the task as a whole. It attempts to identify
key operations to be undertaken, examines alternative ways of performing them, devises
alternative methods, removes wasteful practices and improves co-ordination within the system as
a whole.
3. Reducing Service Levels
Productivity can also be improved by reducing the quantity of service and/or the quality of
service (e.g. doctors could give less time to each patient). There are dangers in these approaches
particularly where a service organization has promised to deliver a higher level of service in the
past. Also competitors can differentiate their services by broadening and upgrading their service
quantity and quality.
4. Substituting Products for Services
Productivity can be improved by providing a product substitute for the service (e.g. new data
transfer technology has removed the need for the telegram service).
5. Introducing New Services
It is possible to design a more effective service that eliminates or reduces the need for the less
effective service. For example, transatlantic travel by air has largely replaced transatlantic travel
by sea; the credit card has replaced the former system for obtaining overdefts.
6. Customer interaction
It is possible to change the way in which customers interact with service providers. This is
particularly possible with 'high contact' services. Using the consumer more in the production
process demands greater understanding of consumer behaviour and its underlying causes. Ways
have to be found to hardness consumers or to change the behaviour through education and
persuasion for the benefit of service delivery.

7. Reduce the Mismatch between Supply and Demand

A significant feature of many service organizations is the mismatch that often exists between
supply of the service and demand for it. A major goal in marketing services is to get greater
control over supply and demand and to obtain a better balance between the two.

DEMAND SITUATIONS:

Negative Demand:
Negative demand occurs when a significant portion of the potential market dislikes a product or
service, often to the extent that they would pay to avoid it. This situation arises when consumers
have a strong aversion to a particular product, either due to negative perceptions, poor past
experiences, or other unfavorable associations.
No Demand:
This situation exists either due to unawareness, insufficient information about the service, or due
to consumers in difference. Marketers should focus on promotional campaign and
communicating the right reason for preferring service offered by the firm. One of the popular
strategies used to face the no demand situation in the market is service differentiation.
Latent Demand:
It is not possible to have a set of products that are capable of offering total satisfaction to all the
needs and wants of the society. Thus latent demand is nothing but the gap between desirability
and availability. Latent demand is a business opportunity and the service firms should prepare
themselves to identify such opportunities and exploit them at the right time.
Seasonal Demands:
Some services only have demand during a particular season. Seasonal demand creates many
problems to service organisations. These include idling the capacity, fixed cost and excess
expenditure on promotion. One of the strategies that the service firms generally follow is to
nurture the service consumption habit of the customers in order to make the demand unseasonal
TOPICS FOR INTERNAL

● Determinants of Service Quality

● GAP Analysis Model
● Types Of Benchmarking
● Advantages of BenchMarking
● Demand Situations