Service Marketing Unit-2 PDF – PDFCOFFEE.COM
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Definition of Service Quality Philip Kotler (1997) defined service as ‘an action or an activity which can be offered by a party to another party, which is basically intangible and can not affect any ownership. Service may be related to tangible product or intangible product’ On the other hand, Zeithaml and Bitner mentioned that, ‘Service quality is a focused evaluation that reflects the customer’s perception of specific dimensions of service namely reliability, responsiveness, assurance, empathy, tangibles.’ Based on the assessment of service quality provided to the customers, business operators are able to identify problem quickly, improve their service and better assess client expectation. Dimensions of Service Quality: SERVQUAL Model According to A. Parasuraman, V.A.Zeithaml, and L.L.Berry, it is during the service delivery that the quality of services is assessed and the contact with each customer implies as a chance to satisfy or dissatisfy the customer, a moment of truth. They defined customer satisfaction with regards to service as ‘by comparing perceptions of service received with expectations of service desired.’ They also mentioned that an excellent quality of service is perceived when expectations are exceeded and on the other hand, service quality is considered as unacceptable when expectations are not met. Lastly, quality is satisfactory when perceived service confirmed expectations.
In addition, Parasuraman, Zeithaml, and Berry (PZB’s1988) introduced five dimensions which led to the development of SETVQUAL, these dimensions are as follows: Tangibles: These include the appearance of employees, physical facilities being offered and equipment which form part of service experience. Reliability: The way the service is being delivered, that is, the ability to deliver the promised service precisely and consistently. Responsiveness: Willingness to help customers, respond to their queries and also to provide rapid service to them. Assurance: Understanding and courtesy of staffs and their capability to inspire trust and confidence. Empathy: Helpful, care about the customers’ requirements and the firm provides individualised attention to its customers with compassion. ‘A conceptual model of service quality with the dimensions of service quality’ was developed by A. Parasuraman, V.A.Zeithaml, and L.L.Berry. They based their research on several different service categories like for example retail banking, long distance telephone service, credit card companies. Thus, they identified that tangibles, reliability, responsiveness, assurance and empathy were the five main dimensions used by customers to judge service quality.
Perceived Service Quality:1. Expectation Exceeds ESPS (Unacceptable Quality) Dimensions of Service Quality:1. Reliability 2. Responsiveness 3. Assurance 4. Empathy 5. Tangibles 6. Word of Mouth 7. Personal 8. Needs 9. Perceived 10.Service (PS) 11.Expected Service (ES) 12.Past 13.Experience Gap model of service quality The Gap model of service quality was developed by Parasuraman, Berry and Zeithaml (1985), and more recently described in Zeithaml and Bitner (2003). It has served as a framework for research in services marketing, including hospitality marketing, for over two decades. The model identifies four specific gaps leading to a fifth overall gap between customers’ expectations and perceived service.
The five gaps 1. Customers have expectations for service experiences and they use them to measure against the perceived service performance in their judgment of service quality. It is essential, then, that managers determine what those expectations are when designing the service. The first gap in service quality occurs when management fails to accurately identify customer expectations. It is referred to as the knowledge gap. Specifically, it is the difference in customer expectations and management’s perception of customer expectations. Hotel managers, for instance, must know and understand what their guests expect from their stay, including all tangibles (the room, amenities, lobby features) and intangible components (availability of additional services, ease of check-in and check-out procedures). The size of the gap is dependent on: i. the extent of upward communication (from customers to top management), ii. the number of layers of management, iii. the size of the organization, iv. and most importantly, the extent of marketing research to identify customer expectations. 2. The second gap is referred to as the design gap. It is measured by how well the service design specifications match up to management’s perception of customer expectations. The extent of this gap is dependent on management’s belief that service quality is important and that it is possible, as well as the resources that are available for the provision of the service. A restaurant manager may understand customer expectations for being served within 20 minutes of ordering, but may not have the resources or the appropriate number of staff to insure that speed of service.
3. Gap 3 represents the variation in service design and service delivery. Known as the performance gap, its extent is a function of many variables involved in the provision of service. Since individuals perform the service, the quality may be affected by such factors as skill level, type of training received, degree of role congruity (agreeability) or conflict, and job fit. Some service providers (i.e. waiters, front-desk staff) do not have a high service inclination, despite training. Service recovery efforts along with extent of responsibility and empowerment also affect the size of this gap. The process is further complicated by the customer’s participation in the service encounter. A customer may make a special request for a room type different from the one originally reserved, or request a menu item after the initial order has been completed, making it more difficult to perform the service as intended. 4. The fourth gap is called the communications gap. It is the difference between what is promised to customers, either explicitly or implicitly, and what is being delivered. Hospitality companies use advertising, personal selling, and sales promotion to inform, persuade, and remind guests about its products and services. Showing beautifully appointed hotel rooms, refreshing swimming pools, and luxurious lobby areas in an advertisement communicates to the target customers. The extent of communications between the company and the advertising agencies will affect the size of the gap. Over-promising is commonly responsible for the communication gap. Each gap has a cumulative effect from the preceding gaps. 5. Gap 5 customer gap is the total accumulation of variation in Gaps 1 through 4 and represents the difference between expectations and perceived service. Furthermore, consumers evaluate perceived service along five quality dimensions.
The 7 P’s of Services Marketing
The first four elements in the services marketing mix are the same as those in the traditional marketing mix. However, given the unique nature of services, the implications of these are slightly different in case of services. 1. Product: In case of services, the ‘product’ is intangible, heterogeneous and perishable. Moreover, its production and consumption are inseparable. Hence, there is scope for customizing the offering as per customer requirements and the actual customer encounter therefore assumes particular significance. However, too much customization would compromise the standard delivery of the service and adversely affect its quality. Hence particular care has to be taken in designing the service offering. 2. Pricing: Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into account the raw material costs, in case of services attendant costs – such as labor and overhead costs – also need to be factored in. Thus a restaurant not only has to charge for the cost of the food served but also has to calculate a price for the ambience provided. The final price for the service is then arrived at by including a mark up for an adequate profit margin. 3. Place: Since service delivery is concurrent with its production and cannot be stored or transported, the location of the service product assumes importance. Service providers have to give special thought to where the service would be provided. Thus, a fine dine restaurant is better located in a busy, upscale market as against on the outskirts of a city. Similarly, a holiday resort is better situated in the countryside away from the rush and noise of a city. 4. Promotion: Since a service offering can be easily replicated promotion becomes crucial in differentiating a service offering in the mind of the consumer. Thus, service providers offering identical services such as airlines or banks and insurance companies invest heavily in advertising their services. This is crucial in attracting
customers in a segment where the services providers have nearly identical offerings. We now look at the 3 new elements of the services marketing mix – people, process and physical evidence – which are unique to the marketing of services. 5. People: People are a defining factor in a service delivery process, since a service is inseparable from the person providing it. Thus, a restaurant is known as much for its food as for the service provided by its staff. The same is true of banks and department stores. Consequently, customer service training for staff has become a top priority for many organizations today. 6. Process: The process of service delivery is crucial since it ensures that the same standard of service is repeatedly delivered to the customers. Therefore, most companies have a service blue print which provides the details of the service delivery process, often going down to even defining the service script and the greeting phrases to be used by the service staff. 7. Physical Evidence: Since services are intangible in nature most service providers strive to incorporate certain tangible elements into their offering to enhance customer experience. Thus, there are hair salons that have well designed waiting areas often with magazines and plush sofas for patrons to read and relax while they await their turn. Similarly, restaurants invest heavily in their interior design and decorations to offer a tangible and unique experience to their guests.
