SERVQUAL - Marketing and Management Models

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SERVQUAL


Helen Strong

SERVQUAL: Purpose

All organizations live or die by the quality of service provided to their customers. And of course, if the organization is observing the marketing concept (consumer is the center of the universe), then all employees need to be conscious of their role in surprising and exciting their customers.

This model should be applied when the level of consumer complaints or observation of a breakdown in service delivery indicates that there is a problem.

As a quality control measure, it would be wise to use the model at regular intervals to audit the alignment of service delivery with customer expectations. Such an audit would also be indicated a short while after any changes in processes or people.


SERVQUAL: Structure and Description

Developers of the SERVQUAL model (Parasuraman, Zeithami, and Berry 1985) observed that the quality of service is defined by the gap between performance delivery and expectations. In formulating this model, they spoke to both executives and consumers.

The model (Figure 29.1) examines internal company factors responsible for setting service levels and managing their implementation. It also assesses customer needs and their expectations that are built on organizational communications and their experience with the company.

Five gaps were identified that contribute to the ability of the organization to deliver good quality service.


Zeithami and Parasuraman’s SERVQUAL model

Figure 29.1 SERVQUAL: Zeithami and Parasuraman’s SERVQUAL model

Source: Translated and reproduced by permission from Wikimedia Commons (2007) © by Creative Commons license

    Management perception (Gap 1)
Starting with the basics: Assume management is unaware of the target market service delivery requirements. In this case, it would be entirely by chance whether customers receive service as per their expectations. Management would also not build the level of service into the product or systems.

Peoples’ attitudes and preferences are shaped by the information that they receive from multiple sources (Figure 29.2).

    Quality specification (Gap 2)
Even if management is aware of the target market wants and needs, it is possible that the specification of that level of quality is not made part of the standard operating procedures (Figure 29.3).

    Service delivery (Gap 3)
The potential for loss of delivery lies with the employees who are delivering the service. They can be unaware of the requirements or ignore the delivery standard specifications as they interact with customers (Figure 29.4).


SERVQUAL First gap

Figure 29.2 First gap


SERVQUAL Second gap

Figure 29.3 Second gap


SERVQUAL Third gap

Figure 29.4 Third gap


SERVQUAL Fourth gap

Figure 29.5 Fourth gap


    Marketing communication (Gap 4)
Communications directed to customers can create the wrong impressions of the company’s level of service. This can happen if marketing are unaware of service delivery procedures, or if they exaggerate the level of service that can be obtained by customers.

One must realize that communication is not limited to media, but includes the personal service received by the consumer. For example, if a sales person speaks in an offhand way, this tells the consumer that he or she is not valued by the organization (Figure 29.5).


SERVQUAL Fifth gap

Figure 29.6 Fifth gap


• Perceived service quality (Gap 5)
This element of the model emphasizes that perception is reality. Consumers interpret the level of service they receive against their expectations. For example, if they are expecting a parcel to be delivered within 24 hours and receive it 36 hours later, they will consider this to be dreadful service. In these circumstances, they will not be at all grateful to the employee who worked overtime to make sure that the parcel was delivered 12 hours earlier than the 48-hour (normal) turnaround time (Figure 29.6).


SERVQUAL: Strategic Implications

The organization needs to manage service level expectations and align service delivery to those expectations. If superior service is one of the distinguishing features of the brand or product, then it is vital to know how service is rated, and be aware of every facet of the organization’s operations that affect the way in which service is delivered.

If, for whatever reason service levels are not going to be five-star, then customers need to know where service is going to be compromised. For example, sometimes the convenience of late closing of a shop is not worth the extra money paid to staff for overtime. Then customers need to know the shop will close at 5:00 p.m., and that they should make plans accordingly.

It is critical that all staff in the organization are aware of their obligation to provide good customer service and that they:
  • Know customers judge them on perception, not reality
  • Understand and apply company policies and procedures
  • Have the will and the resources to implement the right level of service

SERVQUAL: Implementation

Researchers need to establish what is meant by service quality within the industry that they operate. Parasuraman, Zeithaml, and Berry (1985) identified 10 determinants of service quality within their model (Table 29.1).

Their 1985 article points out that the importance of the factors may change from industry to industry, and that in some instances it can be difficult to reach an objective measurement of the element. The factors apply both to the organization (and its systems) and the people who are interacting with the customer.

To evaluate service level performance, researchers therefore need to:

1.    Understand what the customers mean by service and how they judge the quality of serviceCR (expectations). Within this model one particularly investigates the influence on service attitudes and needs of past experience, word-of-mouth, and personal needs.

2.    Ensure that management:
        Are aware of and correctly interpret customer requirements
        Clarify business objectives and related service levels.

3.    Review organizational operating procedures and policies to check whether service level specifications are aligned to business objectives.

4.    Review the training and communication procedures that inform the entire organization about service level policies and their authority to implement them.

5.    Review the marketing mix elements are aligned to service level specifications.

6.    Conduct regular research into service delivery (e.g., mystery shopper and customer satisfaction surveys).

At this stage, the research is concerned with the differences between ideal service levels and that which the customer perceives he or she is receiving. Naturally, the reasons for service level requirements should be established within all consumer research.

7.    Build a feedback loop into the process to monitor changes in the environment that could influence consumer and organizational needs.


Table 29.1 SERVQUAL determinants of service quality

1. Reliability
2. Responsiveness
3. Competence
4. Access
5. Courtesy
6. Communication
7. Credibility
8. Security
9. Knowing, understanding the customer, or both
10. Tangibles

Source: Parasuraman, Zeithaml, and Berry 1985


SERVQUAL: Conclusions

This model provides a formal structure to guide evaluation of service levels and of the gap between consumer expectations and their perception of delivery. One needs to recognize that the reasons for service level expectations can be impacted by competitive and other environmental influences.

There needs to be a system in place to address and correct any flaws found in the service delivery process. This corrective action should concentrate on improving the quality of service, identifying training and motivational needs so that employees do not feel threatened or reluctant to bring service failures to the attention of the management.


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