April 8, 2023

Services Marketing

An InsightAn Insight

Characteristics & Evaluation Outcomes

(Zeithaml et al., 1991; Oliver 1980)

Adequate

Desired

Zone of Tolerance

higher-end, stable

lower-end, temporal

Confirmation(Neutral, Indifferent state)

Negative Disconfirmation(Disappointment)

Positive Disconfirmation(Delight)

Outcomes of Performance Evaluations

Adjustment

Expectations What do customers expect

(Dimensions) • Reliability• Responsiveness• Assurance/Trust• Empathy• Tangibles

April 8, 2023

Measuring Service Quality: SERVQUAL

• Satisfaction compares perceptions to what Satisfaction compares perceptions to what consumers consumers would would normally expect.normally expect.

• Service quality compares perceptions to what Service quality compares perceptions to what a consumer a consumer shouldshould expect from a firm that expect from a firm that delivers high-quality services.delivers high-quality services.

• SERVQUAL: A 44-item scale that measures SERVQUAL: A 44-item scale that measures customer expectations and perceptions customer expectations and perceptions regarding five service quality dimensions.regarding five service quality dimensions.

April 8, 2023

Measuring Service Quality: SERVQUAL

• Five dimensions include tangibles, Five dimensions include tangibles, reliability, responsiveness, assurance and reliability, responsiveness, assurance and empathy which provide basis for service empathy which provide basis for service quality.quality.

• SERVQUAL instruments consists of two SERVQUAL instruments consists of two sections: 22-items record customer sections: 22-items record customer expectations of excellent firms and 22-items expectations of excellent firms and 22-items measure customer perceptions.measure customer perceptions.

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SERVQUAL• Results from two sections are then compared Results from two sections are then compared

to arrive at “gap scores” for each of five to arrive at “gap scores” for each of five dimensions.dimensions.

• Larger gap, further consumer perceptions are Larger gap, further consumer perceptions are from expectations, lower the service quality from expectations, lower the service quality evaluation.evaluation.

• Customer expectations are measured on a 7-Customer expectations are measured on a 7-point scale with anchor labels.point scale with anchor labels.

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SERVQUAL

• Anchor labels include,”not at all essential” Anchor labels include,”not at all essential” and “absolutely essential.”and “absolutely essential.”

• Customer perceptions are measured on Customer perceptions are measured on another 7-point scale with anchor labels of another 7-point scale with anchor labels of “strongly agree” and “strongly disagree.”“strongly agree” and “strongly disagree.”

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Tangibles Dimensions

• SERVQUAL assessment of firm’s ability to SERVQUAL assessment of firm’s ability to manage its tangibles.manage its tangibles.

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Tangibles Dimensions

• Tangibles Expectations:Tangibles Expectations:– Excellent companies will have modern-looking Excellent companies will have modern-looking

equipment.equipment.– Physical facilities at excellent companies will be Physical facilities at excellent companies will be

visually appealing.visually appealing.– Employees of excellent companies will be neat in Employees of excellent companies will be neat in

appearance.appearance.– Materials associated with services will be visually Materials associated with services will be visually

appealing in an excellent company.appealing in an excellent company.

April 8, 2023

Tangibles Dimensions

• Tangibles Perceptions:Tangibles Perceptions:– XYZ has modern-looking equipment.XYZ has modern-looking equipment.– XYZ’s physical facilities are visually appealingXYZ’s physical facilities are visually appealing– XYZ’s employees are neat in appearance.XYZ’s employees are neat in appearance.– Materials associated with the service are Materials associated with the service are

visually appealing at XYZ.visually appealing at XYZ.

April 8, 2023

Reliability Dimension

• SERVQUAL assessment of firm’s SERVQUAL assessment of firm’s consistency and dependability in service consistency and dependability in service performance.performance.

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Reliability Expectations• When excellent companies promise to do something When excellent companies promise to do something

by a certain time, they will do so.by a certain time, they will do so.• When customers have problems, excellent When customers have problems, excellent

companies will show a sincere interest.companies will show a sincere interest.• Excellent companies will perform service right the Excellent companies will perform service right the

first time.first time.• Excellent companies will provide their service at any Excellent companies will provide their service at any

time they promise.time they promise.• Excellent companies will have error-free records.Excellent companies will have error-free records.

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Reliability Perceptions• When XYZ promises to do something, it does When XYZ promises to do something, it does

so.so.• When you have problem, XYZ shows When you have problem, XYZ shows

sincerity.sincerity.• XYZ performs service right first time.XYZ performs service right first time.• XYZ provides its services at time it promises.XYZ provides its services at time it promises.• XYZ insists on error-free records.XYZ insists on error-free records.

April 8, 2023

Responsiveness Dimension

• SERVQUAL assessment of firm’s SERVQUAL assessment of firm’s commitment to provide its services in a commitment to provide its services in a timely manner.timely manner.

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Responsiveness Expectations

• Employees of excellent companies will tell Employees of excellent companies will tell customers when services will be performed.customers when services will be performed.

• Employees of excellent companies will give Employees of excellent companies will give prompt service to customers.prompt service to customers.

• Employees of excellent companies will always Employees of excellent companies will always be willing to help customers.be willing to help customers.

• Employees of excellent companies will never Employees of excellent companies will never be too busy to respond to customers.be too busy to respond to customers.

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Responsiveness Perceptions• Employees of XYZ tell you exactly when Employees of XYZ tell you exactly when

service will be performed.service will be performed.• Employees of XYZ give you prompt service.Employees of XYZ give you prompt service.• Employees of XYZ are always willing to Employees of XYZ are always willing to

help youhelp you• Employees of XYZ are never too busy to Employees of XYZ are never too busy to

respond to your requests.respond to your requests.

April 8, 2023

Assurance Dimension

• SERVQUAL assessment of a firm’s SERVQUAL assessment of a firm’s competence, courtesy to its customers, and competence, courtesy to its customers, and security of its operations.security of its operations.

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Assurance Expectations

• Behavior of employees of excellent companies Behavior of employees of excellent companies will instill confidence in customers.will instill confidence in customers.

• Customers of excellent companies will feel Customers of excellent companies will feel safe in their transactions.safe in their transactions.

• Employees of excellent companies will be Employees of excellent companies will be consistently courteous with customers.consistently courteous with customers.

• Employees of excellent companies will have Employees of excellent companies will have knowledge to answer customers.knowledge to answer customers.

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Assurance Perceptions

• Behavior of employees of XYZ instills Behavior of employees of XYZ instills confidence in customers.confidence in customers.

• You feel safe in your transactions with XYZ.You feel safe in your transactions with XYZ.• Employees of XYZ are consistently Employees of XYZ are consistently

courteous with you.courteous with you.• Employees of XYZ have knowledge to Employees of XYZ have knowledge to

answer your questions.answer your questions.

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Empathy Dimension• Excellent companies will give customers individual Excellent companies will give customers individual

attention.attention.• They will have operating hours convenient to all They will have operating hours convenient to all

their customerstheir customers• They will have employees who give customers They will have employees who give customers

personal attention.personal attention.• They will have customer’s best interest at heart.They will have customer’s best interest at heart.• Employees will understand specific needs of their Employees will understand specific needs of their

customers.customers.

April 8, 2023

Empathy Perceptions• XYZ gives you individual attention.XYZ gives you individual attention.• XYZ has operating hours convenient to all its XYZ has operating hours convenient to all its

customers.customers.• XYZ has employees who give you personal XYZ has employees who give you personal

attention.attention.• XYZ has your best interest at heart.XYZ has your best interest at heart.• Employees of XYZ understand your specific Employees of XYZ understand your specific

needs.needs.

The SERVQUAL Questionnaire

USA General Sample [1990]USA General Sample [1990] Dimension Weight Perceptions Expectations GapDimension Weight Perceptions Expectations Gap────────────────────────────────────────────────────────────────────────────────────────────────────────────────Tangibles 0.11 5.54 5.16 +0.38Tangibles 0.11 5.54 5.16 +0.38Reliability 0.32 5.16 6.44 -1.28Reliability 0.32 5.16 6.44 -1.28Responsiveness 0.22 5.20 6.36 -1.16Responsiveness 0.22 5.20 6.36 -1.16Assurance 0.19 5.50 6.50 -1.00Assurance 0.19 5.50 6.50 -1.00Empathy 0.16 5.16 6.28 -1.12Empathy 0.16 5.16 6.28 -1.12────────────────────────────────────────────────────────────────────────────────────────────────────────────────Weighted averages [n=1936] 5.28 6.27 -0.99Weighted averages [n=1936] 5.28 6.27 -0.99  ((SourceSource: calculated from from Zeithaml, Parasuraman and Berry [1990] ): calculated from from Zeithaml, Parasuraman and Berry [1990] )

The SERVQUAL Questionnaire

East Midlands, UK OutpatientsEast Midlands, UK Outpatients[July 1995][July 1995]Dimension Weight Perceptions Expectations GapDimension Weight Perceptions Expectations Gap────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────Tangibles 0.13 5.21 5.24 -0.03Tangibles 0.13 5.21 5.24 -0.03Reliability 0.26 5.52 6.31 -0.79Reliability 0.26 5.52 6.31 -0.79Responsiveness 0.21 5.88 6.17 -0.29Responsiveness 0.21 5.88 6.17 -0.29Assurance 0.20 5.98 6.39 -0.41Assurance 0.20 5.98 6.39 -0.41Empathy 0.20 5.66 6.16 -0.50Empathy 0.20 5.66 6.16 -0.50────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────Weighted averages [n= 72] 5.67 6.15 -0.48Weighted averages [n= 72] 5.67 6.15 -0.48

The SERVQUAL Questionnaire

Vaasa,Finland OutpatientsVaasa,Finland Outpatients [Jan-Feb 1996] [Jan-Feb 1996]Dimension Weight Perceptions Expectations GapDimension Weight Perceptions Expectations Gap──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────Tangibles 0.18 5.64 6.03 -0.38Tangibles 0.18 5.64 6.03 -0.38Reliability 0.21 5.51 6.04 -0.54Reliability 0.21 5.51 6.04 -0.54Responsiveness 0.20 5.73 6.12 -0.39Responsiveness 0.20 5.73 6.12 -0.39Assurance 0.22 5.83 6.23 -0.40Assurance 0.22 5.83 6.23 -0.40Empathy 0.19 5.74 6.08 -0.35Empathy 0.19 5.74 6.08 -0.35──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────Weighted averages [n= 135] 5.72 6.14 -0.41Weighted averages [n= 135] 5.72 6.14 -0.41

April 8, 2023

Criticisms of SERVQUAL

• Major criticisms of instrument involve Major criticisms of instrument involve length of questionnaire, validity of five length of questionnaire, validity of five service quality dimensions, and predictive service quality dimensions, and predictive power of instrument to subsequent power of instrument to subsequent consumer purchases.consumer purchases.

April 8, 2023

Length of Questionnaire

• Opponents of SERVQUAL instrument Opponents of SERVQUAL instrument argue that 44 items are highly repetitive and argue that 44 items are highly repetitive and unnecessarily increase questionnaire’s unnecessarily increase questionnaire’s length.length.

• Opponents further argue that expectations Opponents further argue that expectations section is of no real value and perceptions section is of no real value and perceptions section should be utilized alone to assess section should be utilized alone to assess service quality.service quality.

April 8, 2023

Validity of Five Dimensions

• Five proposed dimensions of service quality Five proposed dimensions of service quality do not hold up under statistical scrutiny.do not hold up under statistical scrutiny.

• Opponents question validity of the different Opponents question validity of the different dimensions.dimensions.

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Predictive Power of SERVQUAL• Pertains to instrument's ability to predict Pertains to instrument's ability to predict

consumer purchase intentions.consumer purchase intentions.• Performance section alone of SERVQUAL Performance section alone of SERVQUAL

scale is better predictor of purchase scale is better predictor of purchase intentions than combined expectations minus intentions than combined expectations minus perceptions instrument.perceptions instrument.

• Satisfaction has more significant effect on Satisfaction has more significant effect on purchase intentions than does service quality.purchase intentions than does service quality.

April 8, 2023

Importance of Contact Personnel and Process

• SERVQUAL instrument highlights several SERVQUAL instrument highlights several points that service providers should consider points that service providers should consider when examining service quality.when examining service quality.

• Customer perceptions of service are heavily Customer perceptions of service are heavily dependent on attitudes and performance of dependent on attitudes and performance of contact personnel.contact personnel.

• Ways customers judge service depends as Ways customers judge service depends as much on service process as outcome.much on service process as outcome.

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Importance of Contact Personnel and Process

• How service is delivered is as important as How service is delivered is as important as frequency and nature of service.frequency and nature of service.

• Customer satisfaction depends on Customer satisfaction depends on production of services as well as their production of services as well as their consumption.consumption.

April 8, 2023

Key Components Built into Service Quality

• ListeningListening: Customer defined quality is : Customer defined quality is conformance to customers’ specifications.conformance to customers’ specifications.

• ReliabilityReliability: Little else matters to customer : Little else matters to customer when service is unreliable.when service is unreliable.

• Basic ServiceBasic Service: Customers want basics; they : Customers want basics; they expect fundamentals, not fanciness.expect fundamentals, not fanciness.

• Service DesignService Design: Design flaws in service : Design flaws in service system can reduce perceptions of quality.system can reduce perceptions of quality.

April 8, 2023

Key Components Built into Service Quality

• RecoveryRecovery: Companies that do not respond : Companies that do not respond effectively to customer complaints compound effectively to customer complaints compound service failure, thereby failing twice.service failure, thereby failing twice.

• Surprise CustomersSurprise Customers: If company can’t : If company can’t surprise customers then they are not excellent.surprise customers then they are not excellent.

• Fair PlayFair Play: Customers expect to be treated : Customers expect to be treated fairly.fairly.

April 8, 2023

Key Components Built into Service Quality

• TeamworkTeamwork:Presence of teammates is an :Presence of teammates is an important dynamic in sustaining server’s important dynamic in sustaining server’s motivation.motivation.

• Employee Research:Employee Research: Important to service Important to service improvement.improvement.

• Servant LeadershipServant Leadership:Leadership must serve :Leadership must serve servers, inspiring and enabling them to servers, inspiring and enabling them to achieve. achieve.