Contents
1. Introduction.............................................................................................................................................2
2. Definition of Service Quality....................................................................................................................3
3. Factors determining Service Quality........................................................................................................3
4. Relationship between service quality and customer satisfaction............................................................5
5. Service quality models.............................................................................................................................7
I. Nordic Model............................................................................................................................................7
II. SERVQUAL model.....................................................................................................................................8
III. Hierarchical model..................................................................................................................................9
Conclusion.................................................................................................................................................11
People factor in the service sector............................................................................................................12
References:................................................................................................................................................14
1
,(I) Literature review of Service Quality.
1. Introduction
Service quality is determined by the differences between customers' expectations of service
provider's performance and their evaluation of the services they received. In this way, the
association between service quality and customer satisfaction has emerged as a topic of
significant and strategic concern (e.g. Bolton and Drew, 1991; Cronin and Taylor, 1992). In
general, research in this area suggests that service quality is an important indicator of customer
satisfaction. Service quality is also attractive to retail banks as a competitive differentiator
(Newman, 2001). On the other hand, researchers also focused that there has been considerable
debate regarding the basic dimensions of service quality as well as the measurement of these
dimensions. A number of researchers have provided lists o f quality determinants. Johnston
(1997, p 111) also mentioned: “Probably, the best- known determinants of service quality come
from two groups of researchers, Parasuraman and colleagues in the USA and Johnston and
colleagues in the UK”. In order for a company’s offer to reach the customers there is a need for
2
, services. These services depend on the type of product and it differs in the various organizations.
Service can be defined in many ways depending on which area the term is being used.
2. Definition of Service Quality.
Service quality is defined as a comparison of customer expectations with service performance.
The organizations with high service quality meet the customer needs and also remain most
economical in terms of competition as improved service quality also makes the firm more
competitive. High service quality is achieved by knowing operational process through
identifying problems in service and defining measures for service performances & outcomes as
well as level of customer satisfaction. An author defines service as “any intangible act or
performance that one party offers to another that does not result in the ownership of anything”
(Kotler & Keller, 2009, p.789). In all, service can also be defined as an intangible offer by one
party to another in exchange of money for pleasure. Quality is one of the things that consumers
look for in an offer, which service happens to be one (Solomon 2009, p. 413). Quality can also
be defined as the totality of features and characteristics of a product or services that bear on its
ability to satisfy stated or implied needs (Kotler et al., 2002, p. 831). It is evident that quality is
also related to the value of an offer, which could evoke satisfaction or dissatisfaction on the part
of the user. Service quality in the management and marketing literature is the extent to which
customers' perceptions of service meet and/or exceed their expectations for example as defined
by Zeithaml et al. (1990), cited in Bowen & David, 2005, p. 340) Thus service quality can intend
to be the way in which customers are served in an organization which could be good or poor.
Parasuraman defines service quality as “the differences between customer expectations and
perceptions of service” (Parasuraman, 1988). They argued that measuring service quality as the
difference between perceived and expected service was a valid way and could make
management to identify gaps to what they offer as services
3. Factors determining Service Quality
3
1. Introduction.............................................................................................................................................2
2. Definition of Service Quality....................................................................................................................3
3. Factors determining Service Quality........................................................................................................3
4. Relationship between service quality and customer satisfaction............................................................5
5. Service quality models.............................................................................................................................7
I. Nordic Model............................................................................................................................................7
II. SERVQUAL model.....................................................................................................................................8
III. Hierarchical model..................................................................................................................................9
Conclusion.................................................................................................................................................11
People factor in the service sector............................................................................................................12
References:................................................................................................................................................14
1
,(I) Literature review of Service Quality.
1. Introduction
Service quality is determined by the differences between customers' expectations of service
provider's performance and their evaluation of the services they received. In this way, the
association between service quality and customer satisfaction has emerged as a topic of
significant and strategic concern (e.g. Bolton and Drew, 1991; Cronin and Taylor, 1992). In
general, research in this area suggests that service quality is an important indicator of customer
satisfaction. Service quality is also attractive to retail banks as a competitive differentiator
(Newman, 2001). On the other hand, researchers also focused that there has been considerable
debate regarding the basic dimensions of service quality as well as the measurement of these
dimensions. A number of researchers have provided lists o f quality determinants. Johnston
(1997, p 111) also mentioned: “Probably, the best- known determinants of service quality come
from two groups of researchers, Parasuraman and colleagues in the USA and Johnston and
colleagues in the UK”. In order for a company’s offer to reach the customers there is a need for
2
, services. These services depend on the type of product and it differs in the various organizations.
Service can be defined in many ways depending on which area the term is being used.
2. Definition of Service Quality.
Service quality is defined as a comparison of customer expectations with service performance.
The organizations with high service quality meet the customer needs and also remain most
economical in terms of competition as improved service quality also makes the firm more
competitive. High service quality is achieved by knowing operational process through
identifying problems in service and defining measures for service performances & outcomes as
well as level of customer satisfaction. An author defines service as “any intangible act or
performance that one party offers to another that does not result in the ownership of anything”
(Kotler & Keller, 2009, p.789). In all, service can also be defined as an intangible offer by one
party to another in exchange of money for pleasure. Quality is one of the things that consumers
look for in an offer, which service happens to be one (Solomon 2009, p. 413). Quality can also
be defined as the totality of features and characteristics of a product or services that bear on its
ability to satisfy stated or implied needs (Kotler et al., 2002, p. 831). It is evident that quality is
also related to the value of an offer, which could evoke satisfaction or dissatisfaction on the part
of the user. Service quality in the management and marketing literature is the extent to which
customers' perceptions of service meet and/or exceed their expectations for example as defined
by Zeithaml et al. (1990), cited in Bowen & David, 2005, p. 340) Thus service quality can intend
to be the way in which customers are served in an organization which could be good or poor.
Parasuraman defines service quality as “the differences between customer expectations and
perceptions of service” (Parasuraman, 1988). They argued that measuring service quality as the
difference between perceived and expected service was a valid way and could make
management to identify gaps to what they offer as services
3. Factors determining Service Quality
3
