Managing for Service

Excellence

Week 3
 Agenda
• Last week highlights
• Homework
• Learning outcome and Rationale
• Service Quality and its Dimensions
• Detailed Explanation of the SERVQUAL
Model
• Servqual elements
• Class activity: Shopee or Lazada?
• The summary
 • Factors shaping customers' expectations: personal
needs/past experience/ word of mouth & online reviews/
marketing communications
• Kano Model: Basics Factors/ Performance Factors/
Excitement Factors

Last week • Unmet expectations/ Customer dissatisfaction

Highlights • Exceeding Expectations and Building Loyalty

• Leadership’s Role in Embracing a Culture of Service
Excellence
• Customer expectation:

1. To feel heard, appreciated, and valued

2. For the process to feel easy and without friction
3. To see action being taken regarding the request or issue
4. For an action to be relatively quick
5. For all communication to happen on a channel that is
 Homework

• Go to Trip Advisor and find examples

of venues who did not meet
customers' expectations.
• Share, explain why and what part of
the customer journey was missed?
• Few of you will present their findings
next week
• Post on the discussion: screen shot of
the review and write your comments
 Learning Outcomes:
1. Comprehend the dimensions of service quality
as outlined in the SERVQUAL model.
2. Analyze real-world examples of how
organizations meet or fail to meet service quality
dimensions.
3. Evaluate service quality across different
Service industries using the SERVQUAL framework.
Quality and Rationale:
its • Service quality is a cornerstone of service
Dimensions excellence.
• This week emphasizes the different dimensions
of service quality and how they contribute to
customer satisfaction.
• By applying the SERVQUAL model to real-world
examples, students will develop a deeper
understanding of how service quality can be
assessed and improved.
Video: How would you feel as a customer?
 The SERVQUAL model was developed
by Parasuraman, Zeithaml, and Berry
(1988) to measure service quality by
Detailed comparing customer expectations with
their perceptions of the actual service
explanation received.
of the The model identifies five key
Servqual dimensions of service quality, each
representing a critical aspect of the
model customer experience.
 • Definition: Reliability refers to the ability of the
service provider to deliver the promised
service accurately and dependably. This
dimension emphasizes consistency in
performance and dependability in fulfilling
service commitments.
• Importance: Reliability is often considered the
most important dimension of service quality
Reliability because it directly impacts customer trust and
confidence. If customers can rely on a service
provider to deliver on their promises, they are
more likely to remain loyal.
• Example: In the context of an airline, reliability
would mean consistently on-time departures
and arrivals, as well as accurately delivering the
services promised during booking (e.g.,
baggage handling, seating arrangements).
 • Definition: Responsiveness refers to the
willingness and ability of service
providers to help customers and provide
prompt service. This dimension focuses
on the timeliness of the service and the
service provider's ability to address
customer needs quickly.
• Importance: In today's fast-paced world,
customers expect quick responses to
Responsiven their inquiries and issues. A service
provider's responsiveness can
ess significantly impact customer
satisfaction, especially in situations
where immediate assistance is required.
• Example: In a restaurant setting,
responsiveness would be reflected in
how quickly the staff takes orders,
delivers food, and addresses customer
requests or complaints.
 • Definition: Assurance encompasses the
knowledge, competence, and courtesy of
employees, as well as their ability to
convey trust and confidence to
customers. This dimension is closely
related to the professionalism and
demeanor of service staff.
• Importance: Assurance is particularly
important in industries where customers
Assurance may perceive a high level of risk or
uncertainty, such as healthcare or
financial services. Customers need to
feel confident that they are in capable
hands.
• Example: In a banking context, assurance
is demonstrated when a financial advisor
clearly explains investment options,
addresses customer concerns, and
provides accurate information that
instills confidence in the customer.
 • Definition: Empathy refers to the service
provider's ability to provide caring, individualized
attention to customers. This dimension highlights
the importance of understanding and addressing
the unique needs and concerns of each customer.
• Importance: Empathy is crucial for building strong
relationships with customers. When customers
Empathy feel that they are valued and understood, they are
more likely to have a positive experience and
remain loyal to the service provider.
• Example: In a healthcare setting, empathy is
demonstrated when a doctor takes the time to
listen to a patient's concerns, explains treatment
options in a way that is easy to understand, and
shows genuine care for the patient's well-being.
 • Definition: Tangibles refer to the physical aspects of
the service, including the appearance of facilities,
equipment, personnel, and communication materials.
This dimension addresses the tangible elements that
customers can see and touch.
• Importance: While tangibles may not be the most
important dimension in every service context, they
still play a significant role in shaping customers'
Tangibles perceptions of service quality. Clean, well-maintained
facilities and professional-looking staff can create a
positive first impression and contribute to overall
satisfaction.
• Example: In a hotel, tangibles would include the
cleanliness and appearance of guest rooms, the
condition of amenities (e.g., gym, pool), and the
presentation of staff uniforms.
 The Gap Model of Service Quality identifies five gaps that can cause
issues between customer expectations and actual service delivered.
1. Knowledge Gap:
The difference between what customers expect and what
management thinks they expect.
Example: A hotel chain assumes that customers value cost savings

The above all else and focuses on discounts, while customers actually
prioritize cleanliness and safety.

service 2. Policy Gap:

The difference between management’s perception of expectations
quality and the service standards set by the company.

gaps Example: A restaurant sets long preparation times, thinking

customers don’t mind waiting for quality food, but customers expect
quicker service, especially at lunch.
3. Delivery Gap:
The gap between service standards and the actual service provided.
Example: A fast-food chain has a policy of serving customers within 5
minutes, but due to understaffing, orders frequently take longer.
 4. Communication Gap:
The difference between what is promised in marketing
and what is actually delivered.
Example: A hotel advertises free Wi-Fi, but upon arrival,
The guests find that the Wi-Fi is limited to public areas only.

service 5. Perception Gap: The difference between customers'

perceived service and their actual experience.
quality Example: A customer perceives their restaurant
gaps experience as poor due to a minor error (e.g., cold
food), even though all other service elements were
excellent.
Key Insight:
Understanding these gaps allows businesses to identify
areas for improvement and to better align service
delivery with customer expectations.
 Measuring Customer Expectations vs. Perceptions:
The SERVQUAL model is used to measure the gap between
customer expectations (what they hope to receive) and
perceptions (what they actually experience).
Rating Scale: Customers rate service quality on a Likert scale
(e.g., 1 = very dissatisfied, 5 = very satisfied).
How to measure
Examples of Airline Services:
Quality using
• A passenger on Emirates Airlines expects high-quality in-
Servqual? flight service (e.g., attentive staff, prompt meal service,
comfortable seating).
If their expectation is high (5) but their perception of the
meal service is lower (3), this creates a service gap.
• With Singapore Airlines, where customers consistently
rate their service highly across all five SERVQUAL
dimensions.
The airline is known for delivering service that matches or
exceeds customer expectations, leaving little to no gaps.
Key Insight:
By measuring both expectations and perceptions, businesses
can identify specific service areas that need improvement
 The impact of Service Failure and Recovery
Service Failures:
Service failures occur when a company fails to meet customer expectations, leading to dissatisfaction.
Types of Failures:
1. Process Failures: Delayed service or long wait times.
2. Human Errors: Staff mistakes or poor behavior.
3. Product Failures: Incorrect or damaged products.
Service Recovery:
Effective service recovery can turn a negative experience into a positive one, boosting customer loyalty. Offering a
genuine apology, resolving the issue quickly, and providing compensation (if appropriate) are key strategies.
Example:
Service Failure: A family on vacation at a Ritz-Carlton hotel accidentally left their child’s favorite stuffed toy
behind.
Service Recovery: Not only did the staff find and return the toy, but they also went the extra mile by taking
photos of the toy enjoying a "vacation" at the hotel, creating a fun and memorable experience for the family. This
not only restored trust but turned a potential negative into a delightful surprise.
Key Insight:
Service recovery provides an opportunity to exceed customer expectations and build long-term loyalty. How an
organization responds to failure can often leave a more lasting impression than the failure itself.
Kaizen
 Importance of Feedback:
• Continuously improving service quality requires
regularly gathering and analyzing customer
feedback to understand evolving expectations and
service gaps.
• Feedback tools include surveys, comment cards, and online reviews, which
provide insight into how customers perceive the service.

Continuous Example: based on feedback about long drive-thru wait times, McDonald's
introduced dual-lane drive-thru to reduce bottlenecks and improve service
Improvement speed, particularly during peak hours.
Tools for Continuous Improvement:
in Service • Customer Satisfaction Surveys: Regularly measure satisfaction using
Quality SERVQUAL dimensions (reliability, tangibles, etc.).
• Employee Training: Ongoing training programs to keep staff updated on best
practices for customer service and responsiveness.
• Trend Monitoring: Businesses like Amazon consistently monitor customer
feedback and implement tech solutions to address evolving expectations
(e.g., faster shipping, personalized recommendations).
Key Insight:
Service excellence is an ongoing process. Regularly collecting and acting on
customer feedback enables businesses to stay competitive and consistently
meet or exceed customer expectations.
 Activity:
Shopee or Lazada?

• Which company do you believe deliver the

best service?
• Why according to the Servqual model?
Objective:
• Students will analyze how Shopee and
Lazada perform across the five dimensions
of the SERVQUAL model.
• They will examine real customer reviews,
company policies, and service processes to
evaluate the companies' strengths and areas
for improvement.
Group activity: 1 hour
(30min search/30min
presentation)
Process:
Reliability: assess each company’s ability to
consistently deliver on promises, such as on-
time delivery and accurate order fulfillment.
Responsiveness: analyze how quickly and
effectively Amazon's customer service team
responds to inquiries and resolves issues.
Assurance: evaluate how each company instills
confidence in customers through its secure
payment systems, clear communication, and
knowledgeable support staff.
Empathy: examine examples of each
company's personalized service, such as
recommendations based on past purchases
and tailored customer interactions.
Tangibles: The analysis will also consider the
appearance of each's website, packaging, and
delivery materials, and how these contribute
Summary
Q&A