Lecture 10 - Service Quality, Feedback and Complain

What is the definition of service quality?

The high standard of performance that consistently meets or exceeds customer expectations.

Why is service quality harder to evaluate than product quality?

Because services are;

• intangible

• variable,

• often subjective to each customer

What are the 2 components used to evaluate service quality?

1. The process of service delivery

2. The outcome of the service.

Define service productivity.

• How efficiently a service business turns its resources (like time, staff, and money) into useful services for customers

• Getting more done with less effort while still keeping customers happy.

Name 3 generic strategies to improve service productivity

1. Cost Control - minimise waste eg; extra staff

2. Employee Development - Train staff

3. Process Redesign - reviewing, analysing and reshaping delivery processes to ensure seamless CX eg: call salons Vs book online

What is the Gaps Model in service quality?

A framework identifying the differences (gaps) between what customers expect and what they actually get.

What is Gap 1 in the Gaps Model?

Knowledge gap – the difference between what management thinks customers expect and what they actually expect.

What is Gap 6 in the Gaps Model?

The service quality gap – the difference between what customers expect and what they perceive was delivered.

What does SERVQUAL measure?

5 dimensions of service quality:

1. reliability,

2. assurance,

3. tangibles,

4. empathy,

5. responsiveness.

What are soft service quality measures?

Subjective, emotional, and interpersonal aspects of service

eg: empathy, friendliness, attentiveness, and communication.

What are hard service quality measures?

Quantifiable data like error rates, wait times, or service completion rates.

What is the Fishbone Diagram used for in service marketing?

Identifying and categorising root causes of service failures.

What does Pareto Analysis, by the Italian Economist, suggest in service failure diagnosis?

80% of problems stem from 20% of the root causes.

What is blueprinting in service marketing?

A tool to identify fail points - understand where exactly the problem is caused in service process

What are the key goals of customer feedback systems?

• Benchmarking - Comparing performance to others — see how well you're doing and where you can improve.

• Organisational learning - Customer feedback helps a business learn from customers and improve over time.

• Customer-centric culture.

Name 3 customer feedback collection tools.

1. Surveys

2. Focus Groups

3. Online Reviews

What are the 3 types of customer actions to service failure?

1. Public action (complaining) - Complaining to service firm, take legal action

2. Private action (switching) - Switching providers and Negative WOM

3. No action

What are the 3 dimensions of fairness in service recovery?

1. Procedural justice

2. Interactional justice

3. Outcome justice.

What is the Service Recovery Paradox?

Customers more loyal to business after they have experienced a service failure, than if it had never happened in the first place.

Why is complaint handling essential in service marketing?

It retains customers, prevents negative word-of-mouth, and provides data for improvement.

Kind People Do Care, Please Smile

Knowledge, policy, delivery, communications, perception and service quality

Define Procedural Justice

Refers to policies and rules that any customer has to go through to seek service recovery.

Define Interactional justice

• Involves employees of firm who provide service recovery

• Employee’s behaviour towards customer (online and in person)

Define Outcome Justice

The compensation customer receives as result of losses/inconveniences caused by service failure.

What are 3 fairs Qs for Justice

1. Is the process fair?

2. Did they treat you with respect?

3. Was the result fair?