Service quality

Service quality involves two parts: the service provider's delivery and the client's expectation and perception of the transaction. Business managers strive to improve service and prevent problems in order to build or maintain their client base and increase their business. Depending upon the company and service provided, quality may be measured by conformity to specifications or by customer satisfaction. However, whether it is an urgent care facility or the company cafeteria, service always involves properties that customers value.

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While the simplest service quality situation is one in which a service provider simply meets the expectations of the customer, there are other scenarios that can occur. Good service quality results in satisfied customers, a positive reputation, and overall growth of the business.

Customer Satisfaction

Customers purchasing a service generally have certain expectations regarding their needs and compare their expectations to the overall service experience. Sometimes expectations are more closely related to aspects of the transaction or the market within which it is found rather than to the service itself. Customers may have compared features, prices, time frames of delivery, quality, and online reviews before requesting a service. In some cases, especially where basic elements such as quality and speed of service are similar, customers may perceive smaller details as relevant. For example, if several competing cleaning companies provided equally efficient service, the customer's perception of satisfaction might fall to one company's professional-looking uniforms or the lingering scent of a pleasant air freshener.

Customer expectations may be confirmed, disconfirmed negatively, or disconfirmed positively to various degrees. If service quality meets expectations within a certain zone of tolerance, the customer's confidence in the company is confirmed. If he or she is pleasantly surprised to find the service beyond what was anticipated, then the customer has positively disconfirmed the expectations. On the other hand, if the service is found to be below expectations, it has negatively disconfirmed the customer's beliefs. Some service providers are content to meet expectations rather than trying to exceed them, which could raise future expectations and thus lower the likelihood of further confirmation.

While meeting expectations is mainly determined by tangible details and judgment, satisfaction, an emotional response, results in the confirmation or positive disconfirmation of service. For example, a customer who decides to change to a new phone service expects that it will be faster and cheaper, as advertised, but dreads the chore of arranging the setup. However, when she contacts the phone company, she is delighted to find that her call is picked up immediately. The customer service representative is friendly and helpful, clearly explaining the details of the service. The setup requires only three simple steps and does not inconvenience the customer at all. As a result, her expectations are positively disconfirmed and the result is genuine satisfaction.

Measuring Service Quality

While comparing customers' expectations to perceived value may confirm their satisfaction, there are additional ways to measure service quality. Some methods, such as rating scales, not only measure customer satisfaction but also are able to track information regarding trends, customer types, individual store performance, and competitors. Systems such as the RATER model are used to measure various aspects of quality, including reliability, assurance, tangibles, empathy, and responsiveness, in addition to the actual service. Customer questionnaires provide feedback that allows the organization to respond to discrepancies between customer expectations and the reality of the service. Also, customer satisfaction is only one factor to be examined. Communication, managers' perceptions, and customer experiences also need to be considered, as do process, degree of expectation, and whether the customer evaluated the service before or after the service was completed.

Measuring service quality is complicated by the numerous ways in which customers can access service in some businesses. Many retail stores have online shopping sites and a presence in social media in addition to brick-and-mortar locations. Banks offer on-site and independent automated teller machines (ATMs) in addition to online banking, telephone, and in-person service. Each choice offers distinctive features that must be measured in different ways. For example, service from a bank teller includes human factors, such as listening, friendliness, and competence, in addition to the efficiency and accuracy that are experienced through an ATM. Features such as extended hours, especially on weekends, also may affect perceptions of service quality.

Benefits of Service Quality

A reputation for service quality helps businesses in numerous ways, especially in highly competitive markets. First, because of its relationship to customer satisfaction, service quality is a key factor in customer retention. Satisfied customers are more likely to provide word-of-mouth endorsements to other potential buyers, and studies show that personal recommendations are important in attracting new customers. In addition, existing customers are more likely to increase their use of the service when quality is high.

However, service quality also is important to employee retention. Companies that reward workers who deliver high service quality and provide training and support to newer, less experienced employees have less turnover. Training ensures accurate representation of company policies, and trained workers are more likely to handle customer interaction in a professional manner that benefits the company and satisfies the customer.

Service quality contributes to business growth. With more satisfied customers, revenue increases and the company reputation thrives. In the end, high service quality benefits not only customers and business owners but also employees and shareholders.

Bibliography

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Capozzi, Catherine. "The Relationship Between Employee Retention, Employee Skill & Service Quality." Houston Chronicle. Hearst Newspapers. Web. 8 Apr. 2015. http://smallbusiness.chron.com/relationship-between-employee-retention-employee-skill-service-quality-18120.html

Danaher, Peter J., and Roland T. Rust. "Indirect Financial Benefits from Service Quality." Quality Management Journal 3.2 (1996): 63–75. ASQ. Web. 8 Apr. 2015. http://asq.org/qic/display-item/?item=12093

Estepon, Meredith. "Top 10 Benefits of Quality Customer Service." Unitiv. Unitiv, Inc., 5 Aug. 2014. Web. 8 Apr. 2015. http://www.unitiv.com/intelligent-help-desk-blog/bid/103541/top-10-benefits-of-quality-customer-service

Hernon, Peter, et al. Assessing Service Quality: Satisfying the Expectations of Library Customers. 3rd ed., American Library Association, 2015.

Johnston, Robert. "Service Quality." The Blackwell Encyclopedia of Management. 2nd ed. Vol. 10. Ed. Nigel Slack and Michael Lewis. Malden: Blackwell, 2005. 293–296. Print.

Lewis, Barbara L. "Service Quality Measurement." The Blackwell Encyclopedia of Management. 2nd ed. Vol. 9. Ed. Dale Littler. Malden: Blackwell, 2005. 341–343. Print.

"The RATER Model – Service Quality Dimensions." University of Wisconsin Superior. The Board of Regents of the University of Wisconsin System. Web. 7 Apr. 2015. http://www.uwsuper.edu/cipt/exsite/upload/RATER‗Model‗table.pdf