SERVQUAL Model for Measuring Service Quality – MBA Knowledge Base

Quality is the key to achieving customer satisfaction. Quality is a dynamic state associated with products, services, people and environments that meets or exceeds expectations. Quality is also rapidly embracing the nature or degree of impact an organization has of its stakeholders, environment and society.

In the service industry, definitions of service quality tend to focus on meeting customers needs and requirements and how well the service delivered meets their expectations. In order to deliver and maintain service quality, an organization must first identify what it is that constitutes quality to those whom it serves. The key to ensuring good service quality is meeting or exceeding what customers expect from the service. It was clear to us that judgements of low and high quality service depend on how customers expect from the service. It was clear to us that judgments of high and low service quality depend on how customers perceive the actual service performance in the context of what they expected. Service quality as perceived by customers can be defined as the extent of discrepancy between customer’s expectations or desires and their perceptions. Service delivery is concerned with where, when and how the service product is delivered to the customer.

Moreover, service quality is a perceived judgment resulting from an evaluation process where customers compare their expectations with the service they have received. While service quality is an overall attitude towards a service firm, customer satisfaction is specific to an individual service encounter. Therefore, it is very difficult to come to a consensus as to a definition of service quality. We can however conclude that service quality is about providing something intangible in a way that pleases the consumer and that preferably gives some value to that consumer.

The SERVQUAL Instrument

The SERVQUAL instrument developed by Parasuraman (1991) has proved popular, being used in many studies of service quality. This is because it has a generic application and is a practical approach to any area. A number of researchers have applied the SERVQUAL model to measure service quality in the hospitality industry with modified constructs to suit specific hospitality situations.

Parasuraman (1985) developed the gap model and the subsequent SERQUAL instrument designed to identify and measure the gaps between customers’ expectations and perceptions of the service received. Service quality from the consumer’s perspective depends on the direction and degree of difference between the expected service and the perceived service. Thus by comparing customer’s expected service with customer’s perceived service, hotels, for example can determine whether its service standard is appropriate. The gap between expectations and perceptions of performance determines the level of service quality from a customer’s perspective.

The servqual instrument consists of 22 statements for assessing consumer perceptions and expectations regarding the quality of a service. Respondent are asked to rate their level of agreement or disagreement with the given statements. Consumer’s perceptions are based on the actual service they receive while consumer’s expectations are based on past experiences and information received. The statements represent the determinants or dimensions of service quality.

The five dimensions of service quality measured by the SERVQUAL Instrument

The SERVQUAL Instrument measures the five dimensions of Service Quality. These five dimensions are: tangibility, reliability, responsiveness, assurance and empathy.

1. Tangibility – Since services are tangible, customers derive their perception of service quality by comparing the tangible associated with these services provided. It is the appearance of the physical facilities, equipment, personnel and communication materials.
2. Reliability – It is the ability to perform the promised service dependably and accurately. Reliability means that the company delivers on its promises-promises about delivery, sevice provision, problem resolutions and pricing. Customers want to do business with companies that keep their promises, particularly their promises about the service outcomes and core service attributes. All companies need to be aware of customer expectation of reliability. Firms that do not provide the core service that customers think they are buying fail their customers in the most direct way.
3. Responsiveness – It is the willingness to help customers and provide prompt service. This dimension emphasizes attentiveness and promptness in dealing with customer’s requests, questions, complaints and problems. Responsiveness is communicated to customers by length of time they have to wait for assistance, answers to questions or attention to problems. Responsiveness also captures the notion of flexibility and ability to customize the service to customer needs.
4. Assurance – It means to inspire trust and confidence. Assurance is defined as employees’ knowledge of courtesy and the ability of the firm and its employees to inspire trust and confidence. This dimension is likely to be particularly important for the services that the customers perceives as involving high rising and/or about which they feel uncertain about the ability to evaluate. Trust and confidence may be embodied in the person who links the customer to the company, for example, the marketing department. Thus, employees are aware of the importance to create trust and confidence from the customers to gain competitive advantage and for customers’ loyalty.
5. Empathy – It means to provide caring individualized attention the firm provide its customers. In some countries, it is essential to provide individual attention to show to the customer that the company does best to satisfy his needs. Empathy is an additional plus that the trust and confidence of the customers and at the same time increase the loyalty. In this competitive world, the customer’s requirements are rising day after day and it is the companies’ duties to their maximum to meet the demands of customers, else customers who do not receive individual attention will search elsewhere.