Total Quality Management: Core Principles and Effective Implementation
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The document examines the principles of Total Quality Management (TQM), focusing on customer-centric approaches, employee involvement, and continual improvement to enhance customer satisfaction. It discusses the five dimensions of service quality: reliability, responsiveness, assurance, empathy, and tangibles, which influence customer perceptions and expectations. Additionally, it addresses service encounter dynamics and recovery strategies essential for maintaining positive customer relationships.
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Total Quality Management: Core Principles and Effective Implementation
- 3. TQM PRINCIPLES Customer Centric Approach Employee Involvement Continual Improvement Strategic Approach to Improvement Integrated System Decision Making Communications
- 4. Factors Influencing Customer Satisfaction • Product quality • Service quality • Price • Specific product or service features • Consumer emotions • Attributions for service success or failure • Perceptions of equity or fairness • Other consumers, family members, and coworkers • Personal factors • Situational factors
- 5. Customer Perceptions of Quality and Customer Satisfaction
- 6. Customer Perceptions Customer Expectations Service Delivery Service Standards Management Perceptions of Customer Expectations Managing the Evidence Conformance Service Design Understanding the Customer Customer Satisfaction GAP 5 Customer / Marketing Research GAP 1 Conformance GAP 3 Communication GAP 4 Design GAP 2
- 7. How Customers Judge the Five Dimensions of Service Quality
- 8. BOTTOM 3 BOXES Neutral to Very Dissatisfied (7%) Overall Satisfaction with XYZ (% of customers) = = = TOP BOX Very Satisfied (64%) SECOND BOX Somewhat Satisfied (29%) Definitely Will Repurchase from XYZ 96% 52% 7% All Customers Top Box Scores – A Higher Standard 44-point drop = = = Definitely Would Recommend XYZ 91% 36% 4% 55-point drop
- 9. Customer Perception of Quality • Offer Prompt Attention • Have a helpful Patient Attitude • Listen and Acknowledge: • Resolve Problems Rather than Placing Blame • Set Accurate Expectations: • Show Appreciation
- 10. The Five Dimensions of Service Quality Ability to perform the promised service dependably and accurately. Knowledge and courtesy of employees and their ability to inspire trust and confidence. Physical facilities, equipment, and appearance of personnel. Caring, individualized attention the firm provides its customers. Willingness to help customers and provide prompt service. Tangibles Reliability Responsiveness Assurance Empathy
- 11. Providing service as promised Dependability in handling customers’ service problems Performing services right the first time Providing services at the promised time Maintaining error-free records Keeping customers informed as to when services will be performed Prompt service to customers Willingness to help customers Readiness to respond to customers’ requests RELIABILITY RESPONSIVENESS Employees who instill confidence in customers Making customers feel safe in their transactions Employees who are consistently courteous Employees who have the knowledge to answer customer questions ASSURANCE Giving customers individual attention Employees who deal with customers in a caring fashion Having the customer’s best interest at heart Employees who understand the needs of their customers Convenient business hours EMPATHY Modern equipment Visually appealing facilities Employees who have a neat, professional appearance Visually appealing materials associated with the service TANGIBLES SERVQUAL Attributes
- 12. Sales Call Ordering Supplies Billing Delivery and Installation Servicing A Service Encounter Cascade for an Industrial Purchase
- 13. Objectives for Chapter 5: Consumer Perceptions of Service • Provide a solid basis for understanding what influences customer perceptions of service and the relationships among customer satisfaction, service quality, and individual service encounters. • Demonstrate the importance of customer satisfaction—what it is, the factors that influence it, and the significant outcomes resulting from it. • Develop critical knowledge of service quality and its five key dimensions: reliability, responsiveness, empathy, assurance, and tangibles. • Show that service encounters or the “moments of truth” are the essential building blocks from which customers form their perceptions.
- 14. Service Quality • The customer’s judgment of overall excellence of the service provided in relation to the quality that was expected. • Service quality assessments are formed on judgments of: – outcome quality – interaction quality – physical environment quality
- 15. The Five Dimensions of Service Quality Ability to perform the promised service dependably and accurately. Knowledge and courtesy of employees and their ability to inspire trust and confidence. Physical facilities, equipment, and appearance of personnel. Caring, individualized attention the firm provides its customers. Willingness to help customers and provide prompt service. Tangibles Reliability Responsiveness Assurance Empathy
- 16. Common Themes in Critical Service Encounters Research Recovery: Adaptability: Spontaneity: Coping: employee response to service delivery system failure employee response to customer needs and requests employee response to problem customers unprompted and unsolicited employee actions and attitudes
- 17. DO DON’T Recovery • Acknowledge problem • Explain causes • Apologize • Compensate/upgrade • Lay out options • Take responsibility • Ignore customer • Blame customer • Leave customer to fend for him/herself • Downgrade • Act as if nothing is wrong
- 18. DO DON’T Adaptability • Recognize the seriousness of the need • Acknowledge • Anticipate • Attempt to accommodate • Explain rules/policies • Take responsibility • Exert effort to accommodate • Promise, then fail to follow through • Ignore • Show unwillingness to try • Embarrass the customer • Laugh at the customer • Avoid responsibility
- 19. DO DON’T Spontaneity • Take time • Be attentive • Anticipate needs • Listen • Provide information (even if not asked) • Treat customers fairly • Show empathy • Acknowledge by name • Exhibit impatience • Ignore • Yell/laugh/swear • Steal from or cheat a customer • Discriminate • Treat impersonally
- 20. DO DON’T Coping • Listen • Try to accommodate • Explain • Let go of the customer • Take customer’s dissatisfaction personally • Let customer’s dissatisfaction affect others