UNIT 2

Services scenario in India

In India, the service sector plays a significant role in the economy, contributing a substantial portion of
the country's GDP and employing a large segment of the workforce. Several service scenarios are
prevalent in India, reflecting the diverse needs of its population and the growing demand for various
services. Here are some key service scenarios in India:

• Information Technology (IT) and Business Process Outsourcing (BPO):

India has emerged as a global hub for IT services and BPO operations. Major cities like Bangalore,
Hyderabad, Pune, and Chennai host numerous IT companies and BPO firms, providing services such as
software development, IT consulting, application maintenance, and back-office support to clients
worldwide.

• Financial Services:

The financial services sector in India encompasses banking, insurance, asset management, and fintech.
With the expansion of the banking network and the penetration of digital payment solutions, financial
services are increasingly accessible to both urban and rural populations.

• Healthcare Services:

India's healthcare sector offers a wide range of services, including hospitals, clinics, diagnostic centers,
telemedicine, and medical tourism. The country is known for its advanced medical facilities and skilled
healthcare professionals, attracting patients from within India and abroad.

• Education and Training:

India has a vast education sector comprising schools, colleges, universities, coaching institutes, and
vocational training centers. With a large and young population, there is a growing demand for quality
education and skill development services to meet the needs of students and professionals.

• Retail and E-commerce:

The retail sector in India is evolving rapidly, driven by increasing consumer spending and the growth
of e-commerce platforms. Traditional retail markets coexist with online marketplaces, offering a wide
range of goods and services to consumers across urban and rural areas.

• Hospitality and Tourism:

India's rich cultural heritage, diverse landscapes, and historical monuments attract tourists from
around the world. The hospitality sector includes hotels, resorts, restaurants, tour operators, and
transportation services, catering to the needs of domestic and international travelers.

• Telecommunications and Digital Services:

India has witnessed a telecommunications revolution, with widespread access to mobile and internet
services. Telecom companies offer voice, data, and value-added services, while digital service providers
offer entertainment, streaming, and online content platforms.
 • Transportation and Logistics:

With a vast and diverse geography, transportation and logistics services are crucial for connecting
people and goods across the country. This includes road transport, railways, air cargo, shipping,
warehousing, and supply chain management services.

• Real Estate and Construction:

The real estate sector in India encompasses residential, commercial, and industrial properties, as well
as construction and infrastructure development projects. Urbanization and economic growth drive
demand for housing, office spaces, retail outlets, and infrastructure facilities.

• Professional Services:

Legal, accounting, consulting, advertising, and other professional services are in demand across
various sectors of the economy. These services support businesses in compliance, strategy, marketing,
and other areas of operation.

Overall, the service sector in India is dynamic and diverse, offering a wide range of opportunities for
businesses, entrepreneurs, and service providers to cater to the needs of a growing and evolving
market.

Difference between Product and Service,

The primary difference between a product and a service lies in their tangible versus intangible nature:

1. Tangibility:

Product: A product is tangible; it's a physical item that can be seen, touched, and felt. Examples include
smartphones, cars, clothing, and household appliances.

Service: A service is intangible; it's an activity or performance provided by one party to another.
Services cannot be held, touched, or stored. Examples include healthcare, education, banking,
consulting, and transportation.

2. Ownership:

Product: When you purchase a product, you acquire ownership of the physical item. You can possess
it, use it, and dispose of it as you see fit.

Service: Services are consumed or experienced rather than owned. You may pay for a service, but you
do not own it in the same way you own a product.

3. Production and Delivery:

Product: Products are typically manufactured or produced in advance and then sold to customers.
They can be stored in inventory before being sold and delivered to customers.

Service: Services are often produced and consumed simultaneously. They are performed or delivered
at the point of sale and cannot be stored for future use in the same way as products.
 4. Customization:

Product: Products can be standardized and mass-produced, although customization options may exist,
such as choosing product features or configurations.

Service: Services can be highly customizable to meet the specific needs and preferences of individual
customers. Personalized service experiences are often a key aspect of service offerings.

5. Evaluation:

Product: The quality of a product can often be evaluated before purchase through attributes such as
design, features, durability, and performance.

Service: The quality of a service is often evaluated after it has been experienced. Factors such as
responsiveness, reliability, competence, and empathy of service providers contribute to customer
perceptions of service quality.

6. Inseparability:

Product: Products can be separated from the production process and sold independently of the
manufacturer.

Service: Services are often inseparable from the service provider. The service delivery process typically
involves direct interaction between the service provider and the customer.

Despite these differences, products and services are often complementary, with many businesses
offering both to meet the diverse needs of customers. Additionally, advancements in technology and
business models have led to the emergence of hybrid offerings, such as product-service systems,
where physical products are combined with value-added services.

Characteristics of Services

Services possess several unique characteristics that differentiate them from tangible products.
Understanding these characteristics is essential for service providers to effectively manage and deliver
their offerings. Here are the key characteristics of services:

1. Intangibility:

• Services lack physical form and cannot be touched, seen, tasted, or smelled before
they are consumed. This intangibility makes it challenging for customers to evaluate
services before purchase, as they cannot inspect them in the same way they would
with physical products.

2. Inseparability:

• Services are often produced and consumed simultaneously, meaning that the service
provider and the customer are typically present during the service delivery process.
This inseparability implies a direct interaction between the service provider and the
customer, which can influence the quality of the service experience.
 3. Variability:

• Services are highly variable in nature due to factors such as human involvement,
customer preferences, and environmental conditions. Variability can lead to
inconsistencies in service delivery, making it challenging for service providers to
ensure uniform quality across all customer interactions.

4. Perishability:

• Services are perishable and cannot be stored or inventoried like physical products.
They are often time-sensitive, and any unused capacity or downtime represents lost
revenue opportunities for service providers. Managing perishability requires effective
capacity planning and demand forecasting to match supply with demand.

5. Heterogeneity:

• Services exhibit heterogeneity or variability in quality, even when delivered by the

same service provider. This variability can arise from differences in employee skills,
customer expectations, service delivery processes, and environmental factors. Service
providers must strive to minimize heterogeneity to deliver consistent service
experiences.

6. Customer Involvement:

• Customers play an active role in the service delivery process and may contribute to
the outcome of the service experience. Unlike products, where production and
consumption are often separate, customers often participate in the creation of value
during service delivery through their interactions with service providers.

7. Non-ownership:

• Unlike tangible products, which can be owned and possessed by customers, services
are typically consumed or experienced rather than owned. Customers may pay for
services, but they do not take physical possession of them in the same way they do
with products.

8. Time-Based Performance:

• Services are often evaluated based on their timeliness and responsiveness in meeting
customer needs. Time is a critical factor in service delivery, and delays or inefficiencies
can affect customer satisfaction and perceptions of service quality.

Understanding and effectively managing these characteristics is essential for service providers to meet
customer expectations, deliver high-quality service experiences, and achieve competitive advantage
in the marketplace.
Classification of services

Services can be classified in various ways based on different criteria. Here are some common
classifications of services:

1. By Nature of Service Process:

• People-Based Services: These services rely heavily on human interaction and

expertise in their delivery. Examples include healthcare, education, consulting, and
hospitality.

• Equipment-Based Services: These services involve the use of specialized equipment

or machinery in their delivery. Examples include transportation services,
telecommunications, and utilities.

2. By Tangibility:

• Pure Services: These services are entirely intangible and do not involve the transfer of
any physical goods. Examples include consulting, education, and healthcare.

• Mixed Services: These services involve a combination of tangible elements (e.g.,

physical products) and intangible elements (e.g., expertise, advice). Examples include
restaurants (food is tangible, but the dining experience and service are intangible) and
hotels (accommodation is tangible, but the hospitality and service are intangible).

3. By Customer Relationship:

• B2C (Business-to-Consumer) Services: These services are targeted at individual

consumers. Examples include retail, healthcare, entertainment, and personal finance
services.

• B2B (Business-to-Business) Services: These services are targeted at other businesses

and organizations. Examples include consulting, IT services, logistics, and professional
services.

4. By Degree of Customization:

• Standardized Services: These services are highly standardized and offer little room for
customization. Examples include public transportation, utilities, and basic banking
services.

• Customized Services: These services are tailored to meet the specific needs and
preferences of individual customers. Examples include personalized financial
planning, customized software development, and bespoke travel experiences.

5. By Service Process Complexity:

• High-Contact Services: These services require a high degree of interaction between

service providers and customers. Examples include healthcare, education, and
personal training.
 • Low-Contact Services: These services involve minimal or no direct interaction
between service providers and customers. Examples include online banking, self-
service kiosks, and automated car washes.

6. By Industry Sector:

• Healthcare Services: Services related to medical care, wellness, and healthcare

facilities.

• Financial Services: Services related to banking, insurance, investment, and financial

management.

• Hospitality and Tourism Services: Services related to accommodation, dining, travel,

and tourism.

• Professional Services: Services provided by professionals such as lawyers,

accountants, consultants, and architects.

These classifications provide a framework for understanding the diverse range of services offered in
various industries and sectors. Depending on the context, services may fall into multiple classification
categories simultaneously.

Product and service design are critical components of the development process, whether you're
creating a physical product or designing an intangible service. Here's an overview of each:

Product Design:
1. Conceptualization: This stage involves generating ideas and concepts for the product,
considering factors such as market needs, technological feasibility, and business objectives.

2. Research and Analysis: Conduct market research to understand customer preferences,

industry trends, and competitive landscape. Analyse technical requirements and constraints
to inform the design process.

3. Specification Development: Define the product's specifications, including features,

performance criteria, materials, and manufacturing processes.

4. Design Development: Create detailed designs and prototypes of the product, considering
aspects such as aesthetics, ergonomics, functionality, and user experience.

5. Testing and Validation: Test prototypes to evaluate performance, durability, safety, and user
satisfaction. Gather feedback from stakeholders and iterate on the design as necessary.

6. Design for Manufacturing (DFM): Optimize the design for efficient and cost-effective
manufacturing, considering factors such as production scalability, material selection, and
assembly processes.

7. Documentation and Communication: Create comprehensive documentation, including

engineering drawings, specifications, and user manuals, to guide manufacturing and assembly
processes.
Service Design:
1. Understanding Customer Needs: Conduct research to understand customer needs, behaviors,
and pain points. Identify opportunities to create value and improve the service experience.

2. Mapping the Service Blueprint: Develop a service blueprint to visualize the service delivery
process, including touchpoints, interactions, and backend processes.

3. Defining Service Elements: Define the service elements, including service offerings, features,
pricing, and service delivery channels (e.g., in-person, online, mobile).

4. Prototyping and Testing: Create prototypes or mock-ups of the service experience to test with
users and stakeholders. Gather feedback to refine the service design and address any issues
or shortcomings.

5. Employee Training and Service Delivery: Train employees and service providers to deliver the
service effectively, ensuring consistency and quality in service delivery.

6. Integration of Technology: Leverage technology to enhance the service experience, streamline

processes, and improve customer engagement. This may include implementing digital
platforms, automation, or IoT devices.

7. Measuring and Monitoring Performance: Establish key performance indicators (KPIs) to

measure the success of the service design, such as customer satisfaction, service efficiency,
and business impact. Continuously monitor performance and make adjustments as needed.

Both product and service design processes involve iteration, collaboration, and a focus on meeting
user needs and business objectives. While the specific methods and tools may vary, the ultimate goal
is to create offerings that are desirable, feasible, and viable in the marketplace.

Factors Affecting of Service Design:

Service design is influenced by various factors that impact the creation and delivery of services.
Understanding these factors is crucial for designing services that meet customer needs, align with
business objectives, and deliver value effectively. Here are some key factors affecting service design:

1. Customer Needs and Expectations:

• Understanding customer preferences, behaviors, and expectations is fundamental to

service design. Services should be designed to address specific customer needs,
preferences, and pain points.

2. Market Demand and Trends:

• Market demand, industry trends, and competitive dynamics influence service design
decisions. Keeping abreast of market developments helps in identifying opportunities
and staying ahead of competitors.

3. Business Objectives and Strategy:

• Service design should align with the overall business objectives, goals, and strategic
direction of the organization. Considerations such as differentiation, cost efficiency,
and revenue generation shape service design choices.
 4. Regulatory and Legal Requirements:

• Compliance with regulatory standards, industry regulations, and legal requirements is

essential in service design. Services must adhere to applicable laws and regulations to
ensure legality, safety, and ethical conduct.

5. Technological Capabilities and Infrastructure:

• Technology plays a significant role in service design, enabling innovation, automation,

and improved efficiency. Consideration should be given to the organization's
technological capabilities, infrastructure, and readiness for adopting new
technologies.

6. Resource Availability and Constraints:

• Service design is influenced by resource availability, including human resources,

financial resources, and physical infrastructure. Constraints such as budget limitations,
staffing levels, and operational capacity need to be taken into account.

7. Service Delivery Channels:

• The choice of service delivery channels (e.g., in-person, online, mobile) impacts
service design. Different channels offer unique opportunities and challenges, and the
design should be tailored to each channel's requirements and user expectations.

8. Service Interactions and Touchpoints:

• Service interactions and touchpoints represent the moments of contact between

customers and the service provider. Designing these interactions to be seamless,
intuitive, and memorable is essential for delivering a positive service experience.

9. Employee Skills and Training:

• The skills, knowledge, and training of frontline employees and service providers
influence service design. Investing in employee training and development ensures that
they are equipped to deliver high-quality service experiences.

10. Cultural and Social Factors:

• Cultural norms, values, and societal trends influence service design considerations.
Services should be culturally sensitive and inclusive, taking into account diversity and
social dynamics.

11. Environmental Sustainability:

• Increasingly, environmental sustainability is a factor in service design. Designing

services with minimal environmental impact and promoting sustainable practices can
enhance brand reputation and customer loyalty.

Considering these factors holistically allows organizations to design services that are customer-centric,
operationally feasible, and strategically aligned with business objectives. Flexibility and adaptability
are also essential, as service design may need to evolve in response to changing market conditions and
customer needs over time.
service designing process
The service design process involves a systematic approach to creating and improving services to meet
customer needs and deliver value effectively. While specific methodologies and frameworks may vary,
the following steps provide a general overview of the service design process:

1. Understand User Needs and Context:

• Conduct research to gain insights into user needs, behaviors, and pain points. Use
methods such as interviews, surveys, observations, and customer journey mapping to
understand the customer's perspective and context.

2. Define Service Objectives and Scope:

• Clearly define the objectives and scope of the service design project. Establish goals,
target outcomes, and success criteria to guide the design process and measure its
effectiveness.

3. Generate Ideas and Concepts:

• Brainstorm and ideate potential solutions to address user needs and achieve service
objectives. Encourage creativity and collaboration among team members to generate
diverse ideas and concepts.

4. Create Service Blueprints:

• Develop service blueprints to visualize the end-to-end service delivery process. Map
out customer interactions, touchpoints, service components, and backend processes
to identify opportunities for improvement and innovation.

5. Prototype and Test:

• Create prototypes or mock-ups of the service experience to test with users and
stakeholders. Use iterative testing and feedback loops to refine the service design and
address any issues or shortcomings.

6. Design Service Elements and Touchpoints:

• Design the various elements of the service, including service offerings, features,
pricing, and delivery channels. Pay attention to service touchpoints and interactions
to ensure a seamless and engaging customer experience.

7. Integrate Technology and Automation:

• Leverage technology to enhance the service experience, streamline processes, and

improve efficiency. Explore opportunities for automation, digitalization, and
integration of digital platforms to deliver innovative and convenient services.

8. Train Employees and Service Providers:

• Provide training and support to frontline employees and service providers to ensure
they are equipped to deliver the service effectively. Foster a customer-centric culture
and empower employees to address customer needs and preferences.
 9. Implement and Launch:

• Implement the finalized service design and launch it to the market. Coordinate with
cross-functional teams and stakeholders to ensure a smooth transition and successful
rollout of the service.

10. Monitor and Iterate:

• Continuously monitor the performance of the service and gather feedback from users
and stakeholders. Use metrics and KPIs to measure service effectiveness, identify
areas for improvement, and iterate on the design as needed.

11. Scale and Evolve:

• As the service matures, explore opportunities to scale and expand its reach. Adapt the
service design to evolving customer needs, market trends, and business objectives to
maintain relevance and competitive advantage.

By following a structured and iterative process, organizations can design services that are customer-
centric, operationally efficient, and strategically aligned with business goals. Collaboration, flexibility,
and a focus on continuous improvement are key to successful service design.

Service blueprinting
Service blueprinting is a visual representation or diagram that illustrates the end-to-end customer
journey and the behind-the-scenes processes that support the delivery of a service. It provides a
detailed and holistic view of the service, including all the touchpoints, interactions, and activities
involved, both visible to customers (frontstage) and hidden from customers (backstage).

A service blueprint typically consists of several layers or sections that capture different aspects of the
service experience:

1. Customer Actions: This layer represents the customer's interactions, activities, and steps
involved in engaging with the service. It outlines the sequence of touchpoints and the actions
customers take at each stage.

2. 2.Frontstage: The frontstage elements depict the visible aspects of the service experience,
such as physical or digital interfaces, customer interactions with service staff, and self-service
interactions. This layer focuses on the customer's perspective and their interactions with the
service.

3. 3.Backstage: The backstage elements highlight the behind-the-scenes processes, systems, and
resources necessary to deliver the service. It includes the actions and tasks performed by
employees, supporting technologies, and operational procedures that enable the service to
be delivered effectively.

4. 4.Support Processes: This layer captures the supporting processes and activities that facilitate
the delivery of the service. It includes functions like training, maintenance, logistics, and other
internal processes that contribute to the overall service experience.
 5. 5.Physical Evidence: Physical evidence refers to the tangible elements that customers
encounter during the service journey, such as signage, brochures, packaging, or any other
physical artifacts that shape the customer's perception of the service.

Service capacity planning involves determining the optimal level of resources, such as staff,
equipment, infrastructure, and facilities, required to meet the demand for a service while maintaining
a satisfactory level of performance. It is a crucial aspect of service management that aims to balance
customer expectations, operational efficiency, and cost-effectiveness.

Here are some key points to consider regarding service capacity planning:

1. Demand Forecasting: Capacity planning starts with understanding the demand patterns and
predicting future demand for the service. Historical data, market trends, customer surveys,
and other analytical methods can help forecast demand accurately. It is essential to consider
both short-term variations and long-term growth projections.

2. Capacity Analysis: Once the demand is forecasted, a thorough analysis of existing capacity is
conducted. This involves assessing the available resources, their utilization levels, and any
potential constraints or bottlenecks. Capacity analysis helps identify gaps between demand
and current capacity, indicating the need for adjustments.

3. Determining Capacity Requirements: Based on the demand forecast and capacity analysis,
the required level of capacity is determined. This includes estimating the number of staff
members, equipment, infrastructure, and other resources necessary to handle the expected
demand. Factors like service level agreements, desired response times, and quality standards
influence the capacity requirements.

4. Scalability and Flexibility: Service capacity planning should consider scalability and flexibility
to accommodate fluctuations in demand. This can be achieved through strategies such as
cross-training staff, implementing flexible work schedules, or having access to additional
resources during peak periods. Scalability ensures that the service can handle sudden spikes
or unexpected variations in demand without compromising performance.

5. Resource Allocation: Once the capacity requirements are established, resources are allocated
accordingly. This involves assigning staff to different shifts, optimizing equipment utilization,
and ensuring that infrastructure and facilities can support the anticipated workload. Effective
resource allocation aims to balance service efficiency, customer satisfaction, and cost
optimization.

6. Monitoring and Adjustment: Service capacity planning is an ongoing process that requires
continuous monitoring and adjustment. Key performance indicators (KPIs) such as service level
agreements, waiting times, and utilization rates are monitored to assess the effectiveness of
capacity planning. If discrepancies or bottlenecks are identified, adjustments can be made to
optimize capacity and meet changing demand.

7. Technology and Automation: In today's digital landscape, technology plays a crucial role in
service capacity planning. Automation, analytics, and predictive modeling tools can help
analyze data, identify patterns, and optimize resource allocation. Technology-driven solutions
can improve accuracy, efficiency, and responsiveness in capacity planning processes.
 Service capacity planning is essential for ensuring that a service can meet customer demand
efficiently and maintain a high level of service quality. By effectively managing capacity,
organizations can avoid service disruptions, long waiting times, and dissatisfied customers. It
enables businesses to allocate resources strategically, minimize costs, and maximize
operational efficiency while providing a positive customer experience.

Dimensions of quality in services

The dimensions of service quality provide a framework for assessing and evaluating the quality of
service delivery from the customer's perspective. These dimensions help organizations understand the
key factors that influence customer perceptions of service excellence and identify areas for
improvement. One of the most widely recognized models for measuring service quality is the
SERVQUAL model, which identifies five dimensions of service quality. Here are the dimensions of
service quality:

1. Reliability:

• Reliability refers to the ability of the service provider to perform the promised service
accurately and dependably. It involves delivering services consistently and on time,
meeting customer expectations and requirements. Reliability encompasses factors
such as service consistency, dependability, accuracy, and trustworthiness.

2. Assurance:

• Assurance relates to the confidence and trust that customers have in the service
provider's ability to deliver high-quality services. It involves demonstrating
competence, professionalism, and expertise in service delivery. Assurance
encompasses factors such as employee knowledge, courtesy, credibility,
responsiveness, and communication skills.

3. Responsiveness:

• Responsiveness refers to the willingness and promptness of the service provider to

respond to customer needs, inquiries, and requests. It involves being proactive,
attentive, and flexible in addressing customer concerns and resolving issues promptly.
Responsiveness encompasses factors such as promptness, attentiveness, willingness
to help, and flexibility in service delivery.

4. Empathy:

• Empathy involves understanding and empathizing with the customer's feelings, needs,
and concerns. It involves demonstrating compassion, empathy, and personalized
attention to individual customers. Empathy encompasses factors such as
understanding customer preferences, listening actively, showing empathy, and
providing personalized service experiences.

5. Tangibles:

• Tangibles refer to the physical and tangible aspects of the service environment that
contribute to the overall service experience. It involves the appearance, cleanliness,
 and attractiveness of physical facilities, equipment, and materials. Tangibles
encompass factors such as facility appearance, equipment condition, cleanliness, and
visual appeal.

These dimensions collectively represent the key aspects of service quality that influence customer
perceptions and satisfaction. Organizations can use these dimensions as a framework for assessing and
improving service quality, identifying strengths and weaknesses in service delivery, and implementing
strategies to enhance the overall customer experience. By focusing on these dimensions, organizations
can build stronger customer relationships, increase loyalty, and gain a competitive advantage in the
marketplace.

service quality gap

The service quality gap refers to the disparity between customer expectations of service quality and
their perceptions of the actual service delivered. This concept is central to understanding customer
satisfaction and identifying areas for improvement in service delivery. The service quality gap model,
proposed by A. Parasuraman, Valarie Zeithaml, and Leonard Berry in the SERVQUAL framework,
outlines several gaps that contribute to differences between customer expectations and perceptions:

1. Gap 1: Customer Expectations vs. Management Perceptions:

• This gap occurs when there is a disconnect between customer expectations of service
quality and management's understanding of those expectations. It may result from
inadequate market research, insufficient customer feedback mechanisms, or
misalignment between customer needs and organizational goals.

2. Gap 2: Management Perceptions vs. Service Quality Specifications:

• This gap arises when management fails to translate customer expectations into
specific service quality specifications or standards. It may occur due to unclear
communication, inadequate resources, or a lack of understanding of customer
requirements.

3. Gap 3: Service Quality Specifications vs. Service Delivery:

• This gap occurs when there is a discrepancy between the service quality specifications
established by management and the actual service delivered to customers. It may
result from operational inefficiencies, resource constraints, or inconsistencies in
service delivery processes.

4. Gap 4: Service Delivery vs. External Communications:

• This gap refers to differences between the service delivered to customers and the
service promised through external communications such as advertising, marketing,
and branding. It may occur due to overpromising, misleading advertising, or a lack of
alignment between marketing messages and actual service delivery.
 5. Gap 5: Perceived Service vs. Expected Service:

• This final gap represents the disparity between customers' perceptions of the service
received and their initial expectations. It is the result of the cumulative effect of the
previous gaps and reflects the customer's overall satisfaction or dissatisfaction with
the service experience.

Closing the service quality gap requires organizations to address each of these gaps systematically by:

• Conducting thorough market research to understand customer expectations.

• Establishing clear service quality standards based on customer needs and expectations.

• Aligning internal processes and resources to meet service quality specifications.

• Ensuring consistency between service delivery and external communications.

• Monitoring and continuously improving the service delivery process to enhance customer
satisfaction.

By identifying and addressing these gaps, organizations can improve service quality, enhance customer
satisfaction, and build stronger relationships with their customers.

SERVQUAL Model
Introduction

 Service quality is an approach to manage business processes in order to ensure full satisfaction
of the customers & quality in service provided. It works as an antecedent of customer
satisfaction.

 If expectations are greater than performance, then perceived quality is less than satisfactory
and hence customer dissatisfaction occurs.

 The model identifies the principal dimensions (or components) of service quality; proposes a
scale for measuring service quality (SERVQUAL) and suggests possible causes of service quality
problems through gap model.

 SERVQUAL is a service quality framework, developed in the eighties by Zeithaml, Parasuraman

& Berry, aiming at measuring the scale of Quality in the service sectors.

 SERVQUAL was originally measured on 10 aspects of service quality: reliability, responsiveness,

competence, access, courtesy, communication, credibility, security, understanding the
customer, and tangibles, to measure the gap between customer expectations and experience.
Gap 5 is the service quality gap and is the only gap that can be directly measured.

1. Reliability: the ability to perform the promised service dependably and accurately

2. Assurance: the knowledge and courtesy of employees and their ability to convey trust and
confidence

3. Tangibles: the appearance of physical facilities, equipment, personnel and communication

materials

4. Empathy: the provision of caring, individualized attention to customers

5. Responsiveness: the willingness to help customers and to provide prompt service