managing service quality

1.0 IntroductionIn the increasingly competitive market, companies pay more and more attention to managing service quality, rather than internal performance. (Bateson, et. al.,1999) Because, nowadays consumers` demand become higher and higher. They not only require products with high quality, but also expect high quality customer service. Therefore, managing service quality properly to gain consumers satisfaction is the key to win in the competition.The purpose of this essay is discuss how to manage service quality and the use of service gap model. It contains three parts which process as follows: firstly, a brief review of service gap model. Next, using as an example evaluate how they use service gap model to manage their service quality. Finally, the explanation about SERVQUAL theory is the supplement theory of service gap model will be given.2.0 Service quality gaps modelService quality is regarded as the level of discrepancy between customers’ service perception and expectations. (Lamb, et. al.,2009) In order to better manage service quality, in 1985, Parasuraman, Zeithalm and Berry developed the service quality gaps model which identifies five different gaps between customers’ service perception and expectations. (Baron and Harris, 2003)Figure 1 Service quality gaps model(Souse:Bateson & Hoffman, 1999)As Figure 1 shows the five gaps are: (1) the distance between consumers expected service and managers think customers` expect; (2) this gap is about have or not delivery a correct translation of service quality specification to employees; (3) degrees of firm`s service quality standard be complied; (4) gap4 is between what is communicated to consumers and what actually be offered;(5) the gap between what service quality customers expect and what quality they thought they have gain. (Bateson & Hoffman, 1999)According to Fogli (2006) service quality gap model is a method which can be used to manage and keep company service quality. The narrower distance of gaps, the more customer satisfaction can be get. (Lovelock & Chew, 2009) Asame point of view in (Palmer, 2008) in ideal world, the distances of service quality would be zero. In another words, service quality gap model considers about all elements or situations would influence good service delivery. Thus, the key of improve the customer service is closing the gaps by through strategies implement.3.0 managing service quality use gaps model Jeffrey P. Bezos, president of : seeks to be one of the most customer-centric firm in the world. senior vice president Jeffrey M. Blackburn: no just sells books, sports, tools, toys, apparel, groceries or computers, but also provide high quality service as far as possible to meet customers` expectation. ( offical homepage, 2012) Amazon company is a good example, in e-business, which do their best to narrow each of the service quality gaps, in order to satisfy customers` expectation.3.1 Gap 1: Gap between Consumer Expectation and Management PerceptionManagers error surmise customers need and expectation to lead this gap. This situation shows that manager have not understand or they misunderstand customers expectation about services or products.(Zeithaml, et. al., 1990) In another words, the firm is trying to satisfy wrong or non-existing consumer demands. Mudie & Cottam (1993) opinion, the key of reduce this gap is trying to know about customers' needs. Obviously, market research may be the best way to solve the problem. For example, each quarter, Amazon would design different market survey questionnaire, which includes satisfaction survey from last quarter and management recommendations for the next quarter. It would be posted on the company`s website, as well as e-mail it toloyal customers. ( offical homepage, 2012)3.2 Gap 2: Gap between Management Perception and Service Quality SpecificationAccording to Fogli (2006), this gap reflects management may not set or may not translate correctly the service policy into employees. A firm does need a rules or guidelines to build the trust with customers. (Lovelock, et. al.,2009). A poor service quality specification may involve: lack of service standardization, failure to retain and update the provision of service quality. (Zeithaml and Berry, 1990) The gap manifested in customers disappoint at service quality which the company provide and finally leads customer loyalty lost. Hence, a set of special customer service standards are developed in the Amazon, which even detail in the delivery service. Customer can defined standards when they shop in the . The company would tell them the expected number of delivery days and they can select such as standard shipping (three to five days) or express shipping (one to two days). In addition, rules like 30 days customers can return items, 3 weeks can get the out of print book or immediately customer can know a product has out of stock and so on, which are be set. Amazon`s customers are able to obtain the so clearly and personalized service. Thereby, a good service quality specification is important which can increase customers confident, and benefit for building and maintaining customers relationship. ( offical homepage, 2012)3.3 Gap 3: Gap between Service Quality Specification and Service DeliveryThis gap usually because employees error or poor human resource management, which can bring a company failing to achieve service quality specifications. (Mudie & Cottam,1993) Some experience shows the gap are: employees lack of ability to solve customer questions and complains; employees have a poor knowledge of products; a loose team spirit inorganization. (Fogli, 2006) As a result, employees training is necessary, in order to guide the service staffs back to the service quality specifications` processes. One hand, Amazon company organizes staff training regularly, including team work, complains management or products knowledge. On the other hand, they goes one step further, the company guarantee a accurate service delivery. For instance, second-hand suppliers have been made sure meet Amazon’s high standards.The firm also use the customer experience record to make sure service delivery going the right way. ( offical homepage, 2012) Overall, these strategies just want to make sure service can be accurately offered to customers, rather than fail due to human error.3.4 Gap 4: Gap between Service Delivery and External Communications The external communications different from real service provide. (Bateson & Hoffman, 1999) The emergence of this gap often due to companies excessively increased expectations through diverse medias. And finally disappoint their customers, because customers think the company lying to them. The trust and loyalty of customer will be lost at the same time. (Lovelock & Chew, 2009) Therefore, exaggerate service quality is a wrong strategy, the result will lead to harm firm/ brand image. However, service quality promise clearly and honestly communicate to consumers in the . It reflected in the design of web pages which are easy to understand and navigate. For instance, pages guide customer refund or items repack; customer account page records every ordered item and its delivery process. Thus, by through these clear communication ways, customers misunderstanding can probably be prevented. ( offical homepage, 2012)3.5 Gap 5: Gap between Expected Service and Perceived ServiceThis gap means that customer's perception of the service experience does notmatch up with their initial imagine. Different customers have different service expectation or requirement, due to they are affected by diverse personality, cultural background, lifestyle and identity. (Fogli, 2006) As the result, their perception are almost totally subjective. According to Zeithaml, et. al., (1990) customers` perception is based on satisfied customers` needs of service or product. Thereby, understanding customers requirements and expectation may be the best way to bridge this gap. For example, Amazon`s customer orientated strategy. The firm collects customer information as well as creates personal information database for each customer. One hand, having a clear understanding of the target markets can more accurate judging and offering a satisfied service for a specific product to different customers. On the other hand, Amazon try to delight consumers by through identifying their preferences and needs then making a products` suggestion. ( offical homepage, 2012) Overall, Amazon collects customers information and attempts to understand customers expectations, in order to close the gap between customers expectation and their perceived service.From 1995 to 2012 the vision of Amazon still is: “Earth’s biggest selection and to be Earth’s most customer-centric company." ( offical homepage, 2012) It shows how much attention the firm pays into service quality management. Amazon as an example here, which successfully uses service quality gaps model to manage their service quality. And obtain lots of successful results: 2004 gained the highest score ever recorded in American Customer Satisfaction Index (score of 88 ) (Amazon Press Releases, 2005); from ( 2008) Amazon annual report, the company was the top 100 global brand with more than 76 million active customers accounts. These results show that service quality gaps model is effective for Amazon company. Of course, the final aim of managing service quality is achieving customer loyalty and repeat buying, which in order to getting more competitive advantage and further develop the company. The following data has record Amazon has a good development trend and its obviously competitive advantage, which further prove the usefulness of service quality gaps model. See Figure 2, directed by the customer-centric strategic vision, Amazon generates nearly 5x more revenue Per user than eBay globally in 2011. (Chaffey, 2012)Figure 2(Source: Chaffey, 2012)4.0 SERVQUAL theory supplements Service Quality Gaps modelFrom the discussion above, Service Quality Gaps model is a good method to help firms managing the service quality. The model build in 1985 by Parasuraman, Zeithalm and Berry. (Bateson & Hoffman,1999) Until 1988, the same authors created a survey research instrument for Gaps model, which called SERVQUAL. (Fogli, 2006) SERVQUAL methodology is a measurement tool use to research the expectations and perceptions of customers. It helps to: first, check the implementation of Gaps model; second, identify the causes of service quality shortfall; third, compare service quality score with competitors. (Lovelock, et. al., 2009) Hence, SERVQUAL`s development not only based on Service Quality Gaps model, but also supplements Service Quality Gaps model. The questionnaire design of SERVQUAL need to involve 22 items ofquestions and cover five dimensions of service quality. (Mudie & Cottam, 1993) These are all help to better managing service quality use Service Quality Gaps model.5.0 ConclusionService quality is an important concepts for companies. It can increase customers satisfaction, build and maintain customer relationship and gain loyal customers, which are helping company win in the competition. Management service quality is a complex job, however Service Quality Gaps model provides a way to firms can be more easier to handle it. Service Quality Gaps model thinks identifying and closing service gaps in different stage of service delivery can help customers achieve their expectation, through maximize customer satisfaction to better managing service quality.。