MSB
Service Quality and Satisfaction
Part 1: Definitions and dimensions
Marketing Services 4
Different perspectives
Quality is determined by the customer and is the extent to which the offering serves their needs and expectations
Quality is conformance to internally-specified standards
What is service quality?
The discrepancy [gap] between consumers’ perceptions of services offered by a particular firm and their expectations about firms offering such services
(Parasuraman, Zeithaml, and Berry, 1988)
Dimensions of service quality
| Reliability (delivering on promises) | Dependable and accurate performance. Firm meets its promises (on delivery, price, problem resolution, service provision) |
| Assurance (inspiring trust and confidence) | Competent, courteous, credible, offering security |
| Tangibles (representing the firm physically) | Appearance of physical elements (inanimate and animate) |
| Empathy (treating customers as individuals) | Good communication, customer understanding, and caring individualised attention |
| Responsiveness (being willing to help) | Prompt and helpful employees |
Examples of dimensions
| Reliability | Responsiveness | Assurance | Empathy | Tangibles | |
| Car repair | Problem fixed first time and ready when promised | No waiting. Responds to requests | Knowledgeable mechanics | Acknowledges customer by name. Remembers previous problems | Waiting area. Uniforms |
| Architecture | Delivers plans when promised and within budget | Returns telephone calls. Modifies designs when asked | Credentials and reputation. Knowledge and skills | Understands client’s industry (B2B). Friendly | Office area, plans, invoices, dress |
Alternative view
Grönroos (1984) says quality has two dimensions:
Technical or outcome dimension (‘what’)
Functional or process dimension (‘how’)
Excellent performance in one does not necessarily make up for failings in another.
Integrated model
Brady and Cronin (2001) attempted to combine previous models:
Interaction
Quality
Employee attitude
Employee behaviour
Employee expertise
Physical Environment Quality
Ambient conditions
Design
Social factors
Outcome
Quality
Waiting time
Tangibles
Valence
Service
Quality
E-service quality
E-service quality
Efficiency
Reliability
Responsive
Support
Security
Accessibility
What is satisfaction?
Satisfaction is the consumer’s fulfilment response. It is a judgement that a product or service provided a pleasurable level of consumption-related fulfilment
(Oliver, 1997)
Satisfaction is not an absolute. It is relative
Can have transaction-specific satisfaction and cumulative satisfaction.
Expectancy disconfirmation model
Performance/ experience exceeds expectations
Satisfaction or delight
Positive disconfirmation
Performance/
experience
lower than
expectations
Dissatisfaction
Negative disconfirmation
Performance/
experience meets expectations
Confirmation (zero disconfirmation)
Satisfaction
Based on Oliver (1981)
Satisfaction and service quality
Satisfaction
Service Quality
Service Quality
Satisfaction
Satisfaction
Service Quality
OR
OR
Satisfaction and service quality
Confusion because service quality and satisfaction both conceptualised as a comparison of what is received with what was expected
Prevailing view (e.g. Cronin and Taylor, 1992; Grönroos, 2007) is that service quality is a cognitive judgement that contributes to satisfaction
Satisfaction is influenced by both cognitive judgments of performance, but also emotions that result from the service experience (e.g. pleasure, surprise, relief)
Satisfaction and service quality
Service Quality
Product Quality
Value
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Satisfaction
Emotional response
Why is satisfaction important?
Satisfaction or delight
Loyalty and/or positive WOM
Dissatisfaction
Switching and/or negative WOM
‘Leaders who do not actively work to increase customer satisfaction will be responsible for damaging their companies’ future earnings and shareholder value’
(Hart, 2007)
Satisfaction and retention
On average, 65-85% of customers who ‘defect’ to competitors claim they were satisfied with their previous service provider.
Reichheld (1996) says we fall into the ‘satisfaction trap’, thinking that satisfaction is the end in itself. What really matters is loyalty.
Delight
Customer delight means delivering what is unexpected by the customer (Oliver et al., 1997)
Delight means surprise, excitement, pleasure
However, once customers have been delighted, their expectation levels are raised
Results in extra effort and cost to the firm
The strategy of under-promising to over-deliver (UPOD) can backfire. Some customers may go elsewhere because the quality level signalled by the firm is below what they consider adequate (Topaloglu and Fleming, 2017)
Delight
Surprise
Joy
Employee effort
Employee expertise
Tangibles
Delight
Barnes et al. (2016)
Expectations
Customer expectations are beliefs about service delivery that serve as standards or reference points against which performance is judged
Zeithaml et al. (1993) distinguish two levels of expectation:
Desired Service Level
The level of service the customer hopes to receive, consisting of a blend of what the customer believes can and should be delivered
Adequate Service Level
The level of service the customer will accept. The minimum service that can be delivered and still meet a customer’s basic needs
Zone of tolerance
Zone of tolerance is the difference between desired and adequate service levels
Zone of tolerance expands and contracts across customers and even within the same customer (depending on the situation)
When service falls below the adequate level customers will be frustrated. When it is higher than the desired level, customers will be delighted
Desired Service
(ideal expectation)
Adequate Service
(minimum expectation)
Zone of tolerance
Factors influencing expectations
Predicted service expectations:
Provider promises
WOM
Past experience
Personal needs
Situational factors
Perceived alternatives
References
Barnes, D., Collier, J., Howe, V., and Hoffman, D. (2016) Multiple paths to custoerm delight. Journal of Services Marketing. 30 (3), 277-289.
Brady, M. and Cronin, J. (2001) Some new thoughts on conceptualising perceived service quality. Journal of Marketing. 65 (3), pp. 34-49.
Cronin, J. and Taylor, S. (1992) Measuring service quality: a re-examination and extension. Journal of Marketing. 56 (3), pp. 55-68.
Grönroos, C. (2007) Service Management and Marketing. 3rd ed. Chichester; Wiley.
Grönroos, C. (1984) A service quality model and its implications. European Journal of Marketing. 18 (4), pp. 36-44
Hart, C. (2007) Beating the market with customer satisfaction. Harvard Business Review. 85 (3), pp. 30-32.
Oliver, R. (1981) Measurement and evaluation of satisfaction processes in retail settings. Journal of Retailing. 57 (Fall), pp. 25-48.
Oliver, R. (1997) Satisfaction: A Behavioural Perspective on the Consumer. New York: McGraw-Hill.
Oliver, R., Rust, R. and Varki, S. (1997) Customer delight. Journal of Retailing. 73 (3), pp. p. 311-336.
Parasuraman, A., Zeithaml, V., and Berry, L.L. (1988) SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing. 64 (1), pp. 12-40.
Reichheld, F. (1996) The Loyalty Effect. Boston: Harvard Business School Press.
Topaloglu, O. and Fleming, D. (2017) Under-promising and over-delivering: Pleasing the customer or strategic blunder? Journal of Services Marketing. 31 (7), pp. 720-732.
Wilson, A., Zeithaml, V., Bitner, MJ., Gremler, D. (2012) Services Marketing. 2nd ed. Maidenhead: McGraw-Hill.
Zeithaml, V., Berry, L., and Parasuraman, A. (1993) The nature and determinants of customer expectations of service. Journal of the Academy of Marketing Science. 12 (1) pp. 1-12.