Customer Expectations and Service Quality

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Questions and Answers

What is the primary function of actual service?

To set service standards and design

To determine the customer gap

To bridge the gap between expected and perceived service (correct)

To measure the provider gap

What are the sources of customer expectations?

Pricing, advertising, and word of mouth communications

Innate personal needs, competitive offerings, and sales promises

Service quality, reliability, and responsiveness

All of the above (correct)

What is the primary cause of the customer gap?

Not knowing what customer expects

Not selecting the right service design and standards

Not delivering to service standards

All of the above (correct)

What is the difference between search qualities and expertise qualities?

Search qualities are attributes that can be determined before purchase, while expertise qualities are attributes that can be determined after purchase Signup and view all the answers

What is the primary determinant of service quality?

All of the above Signup and view all the answers

What is the relationship between quality and profit or cost?

Quality can be either a profit or a cost, depending on the context Signup and view all the answers

What is the primary goal of Total Quality Management (TQM) in an organization?

To excel on all dimensions of products and services that are important to the customer Signup and view all the answers

What is the primary driver of Return on Quality (ROQ)?

Customer-set parameters and marketer-selected quality improvements Signup and view all the answers

What is the primary cause of dissatisfaction in service quality?

Misalignment of company and customer service quality specifications Signup and view all the answers

What is the 'will expectation' in customer expectation management?

The average level of quality that is predicted based on all known information Signup and view all the answers

What type of quality definition focuses on measurable quantities?

Product-based Signup and view all the answers

What is the primary test of a firm's service quality?

Each service encounter Signup and view all the answers

What do customers use to form their service expectations?

Past experiences, word-of-mouth, and advertising Signup and view all the answers

What happens when the perceived service falls below the expected service?

Customers are disappointed Signup and view all the answers

What do successful companies add to their offering to delight customers?

Benefits that not only satisfy but also surprise and delight customers Signup and view all the answers

What is the primary focus of the SERVQUAL model?

Comparing customer expectations with their experience of the service Signup and view all the answers

What is reliability in the context of service quality?

The consistency of performance and dependability Signup and view all the answers

What is the primary goal of exceeding customer expectations?

To delight customers Signup and view all the answers

Study Notes

Service Quality Management

The provider gap is the difference between the expected service and the service delivered, with underlying causes including not knowing customer expectations, not selecting the right service design and standards, not delivering to service standards, and not matching performance to promises.

Customer Expectations

Customers form service expectations from various sources, including past experiences, word-of-mouth, and advertising.
Customers compare their perceived service with their expected service, and if the perceived service falls below their expectations, they are disappointed.
Successful companies add benefits to their offerings to not only satisfy customers but also surprise and delight them.

Determinants of Service Quality

Reliability: Consistency of performance and dependability.
Responsiveness: The willingness or readiness of employees to provide service.
Assurance: The knowledge, competence, and courtesy of service employees and their ability to convey trust and confidence.
Empathy: The caring and individual attention provided to customers.
Tangibles: Physical evidence of the service.

Service Quality Specifications

Company specifications: Standard operating procedures.
Customer specifications: Personal expectations.
Misalignment of company and customer specifications can lead to dissatisfaction, highlighting the importance of effective communication.

Defining Expectations

Will expectation: The average level of quality that is predicted based on all known information.
Should expectation: What customers feel they deserve from the transaction.
Ideal expectation: What would happen under the best of circumstances, useful as a barometer of excellence.
Minimally acceptable level: The threshold at which mere satisfaction is achieved.

Types of Definitions of Quality

Transcendent: Innate excellence that can be recognized only through experience.
Product-based: Measurable quantities are used to define quality.
User-based: “Quality is in the eyes of the beholder.”
Manufacturing-based: Conformance to requirements.
Value-based: A balance between conformance or performance quality and an acceptable price to the customer.

SERVQUAL Model

Compares customer expectations with their experience of the service that was actually delivered.
Discrepancies are “gaps” in service quality.
The model focuses on strategies and processes that firms can employ to drive service excellence while maintaining a focus on customers.

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Description

Learn about how customers form expectations from past experiences, word-of-mouth, and advertising. Understand how perceived service quality compares to expected service quality and its impact on customer satisfaction.