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Week 2 Chapter 3

The document discusses improving service quality and productivity. It covers the relationship between service quality, customer satisfaction, and profitability. There are also discussions on defining and measuring service quality using various models and perspectives. Methods for collecting and analyzing customer feedback to identify service quality issues are provided. The document also addresses defining and measuring productivity in services as well as strategies for improving both service quality and productivity.

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Chipp chip
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33 views6 pages

Week 2 Chapter 3

The document discusses improving service quality and productivity. It covers the relationship between service quality, customer satisfaction, and profitability. There are also discussions on defining and measuring service quality using various models and perspectives. Methods for collecting and analyzing customer feedback to identify service quality issues are provided. The document also addresses defining and measuring productivity in services as well as strategies for improving both service quality and productivity.

Uploaded by

Chipp chip
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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IMPROVING SERVICE QUALITY AND PRODUCTIVITY

LO1: EXPLAIN THE RELATIONSHIP BETWEEN SERVICE QUALITY AND PROFITABILITY

Quality focuses on the benefits created for customers;


Productivity addresses financial costs incurred by firm
Service quality -> satisfaction -> profitability
Productivity -> reducing costs -> profitability
The relationship between productivity and service quality is more complex
The general notion of a service productivity customer satisfaction trade-off

LO2: BE FAMILIAR WITH THE DIFFERENT PERSPECTIVES OF SERVICE QUALITY


What is service quality?
- Service quality is high standards of performance that consistently meets or exceeds customer
expectations.

LO3: DEMONSTRATE HOW TO USE THE GAPS MODEL FOR DIAGNOSING AND
ADDRESSING SERVICE QUALITY PROBLEMS.

The Gaps model in Service Design and Delivery


Gap 1: The knowledge gap is the difference between what senior management believes customers expect
and what customers actually expect and news
Gap 2: The policy gap is the difference between the management’s understanding of customers’ expectation
and the service standard they set for service delivery.
Gap 3: The delivery gap is the difference between specified service stands and the service delivetty teams’
actual performance on these standards.
Gap 4: the communications gap is the difference between what the company communicates and what the
customer understands and subsequently experiences.
+ The internal communications gap:
+ External communications gap:
Gap 5: The perception gap is the differences between what is actually delivered and what customers feel
they have received because they are unable to judge service quality accurately.
Gap 6: The service quality gap is the difference between what customer expect to receive and their
perception of the service that is actually delivered.
In this model,gap 1,5,6 represent external gaps and 2,3,4 are internal gap

LO 4: DIFFERENTIATIE BETWEEN HARD AND SOFR MEASURES OF SERVICE QUALITY.


Soft and Hard Service Quaity Measures
- Soft standards and their measures are tose that cannot be easily observed and are typically collected
by talking to customer.
- Hard standards and measure are typically process activities and outcomes that can be counted, timed,
or measures.

LO 5: EXPLAIN THE COMMON OBJECTIVES OF EFFECTIVE CUSTOMER FEEDBACK


SYSTEMS

The objectives of customer feedback Systems are typically fall in the the following three main categories:
1, Assessment and benchmarking of service quality and performance. The objective is to answer the
question, “How satisfied are our customers?”
2, Customer - Driven Learning and improvements. The objective is to answer the question, “What makes
our customers happy or unhappy?” “What are our strengths and weakness?”
3, Creating a Customer-Oriented Service Culture. This objective is concerned with bringing the “voice of
the customer” into the organization

LO 6: USE A MIX OF CUSTOMER FEEDBACK COLLECTION TOOLS:


Toval market survey and annual survey typically measure satisfaction with all major customer service
processes and products.
Transactional surveys also called intercept surveys, are typically conducted after customers have completed
a specific transaction.
Service Feedback Cards, online and Mobile messages.
Mystery shopping Service businesses often use “mystery shoppers” to determine whether font-line stadd
displays desired behaviors.
Unsolicited Customer Feedback. These kinds of feedback can be used to monitor quality and highlight
necessary improvements to the service design and delivery.
Focus Group Discussion and Service Reviews
Online Reviews and Discussions.

LO 7: HARD MEASURES OF SERVICE QUALITY


Targeted customer satisfation surveys
Online customer feedback survey
Customer Service
Ad Hoc Research

LO 8 : TOOLS TO ANALYZE AND ADDRESS SERVICE QUALITY PROBLEMS


The fishbone Diagram
The possible reason that migh cause a specific problem are grouped into one of five categoriex - Equipment,
Manpower (or People), Material, Procedures, and Other on a cause-and-effect chart.

Parento Analysis
Identifies the main causes of the observed outcome. It separates the important from the trivial and helps a
service form to focus its improvement efforts on the most important problem areas. This type of analysis
underlies the so-called 80/20 rule because it often reveals that around 80% of the value of one variables is
caused by only 20% of the causal variable.
Blueprinting
Blueprinting allows us to probe further and identify where exactly in the service process the problem was
caused.
LO 9: RETURN ON QUALITY
Some firms recognised for server quality efforts have sometimes run into financial difficulties. This is partly because
they spent too lavishly on quality improvements that customers did not value or even recognize. Hence, expenditures
on quality improvement must be related to the anticipated increase in profitability

Determine the optimal level of reliability


A company with poor service quality can often achieve big jumps in reliability with relatively modest
investments in improvements (14.17)
If the cost of service recovery is lower than the cost of an unhappy customer. The firms should increase
reliability up to the point at which the incremental improvement equals the cost of service recovery.
LO 10 DEFINING AND MEASURING PRODUCTIVITY
Defining productivity in a service context
Productivity measures the amount of output produced relative to the amount of input used.
Measuring productivity.

LO 11: SERVICE PRODUCTIVITY, EFFICIENCY, AND EFFECTIVENESS


Efficiency is a measure of how well you do things ans involves comparison to a standard that is usually
time-based.
Effectiveness can be defined as the degree to which n organization meets its goals and derided outcomes,
which would typically include customer satisfaction.
“ Efficiency is doing the thing right, effectiveness is doing the right thing.

LO 12: IMPROVING SERVICE PRODUCTIVITY


Generic productivity improvement strategies:
- Controlling costs carefully at every step in the progress
- Reducing the waste of materials and labor
- Training and motivating employees to do things faster, better, and more efficiently
- Broadening the variety of tasks that a service worker can perform
- Improving capacity utilization through better matching of supply and demand and/or matching productive
capacity to average levels of demand rather than peak levels.
- Using machines, equipment technology, and data that enable employees to work faster and/ or achieve a higher
level of quality
- Installing expert systems that allow paraprofessionals to take on work previously performed by more
experienced individuals earning higher salaries.
- Replacing service employees with automated machines
- Tiering service levels
- Outsourcing
Marketing managers should be thinking about the marketing strategies that may be used to influence customer to
behave in more productive ways:
- Change the Timing of Customer Demand
- Encourage Use of Lower-cost service Delivery Channels and Self-Service
- Ask the customer to use third parties

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