Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
A Conceptual Model of Service Quality and Service Satisfaction
The distinction between service quality and customer satisfaction
Introduction about service quality
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Service Quality
Service quality is frequently defined as the consumer’s judgement about a firm’s overall excellence or superiority, similar in many ways to the consumer’s general attitude toward the firm ( Parasurman, Zeithaml, and Berry 1988: Zeithaml 1987: Bitner 1988). Service quality plays a key role influencing the perception of the customers either in negative/ positive way, as its one of the intangible means of delivering the firm’s service in right way to the hands of customer’s toward standing competitive in the cluster of the market. Customer-perceived service quality is viewed as the result of two generic types of quality: technical (or output) quality and functional (or process) quality ( Grönroos 1984: Lehtinen 1985). Apparently,
…show more content…
(Parasuraman, Zeithaml, & Berry (1985) identified ten determinants of service quality that may relate to any service: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding, knowing the customer, and tangibles. Later these were boiled down to five: tangibles, reliability, responsiveness, assurance & empathy (Parasuraman, Zethaml & Berry 1988) .
Customer Satisfaction
In service management literature customer satisfaction is viewed as the result of a customer’s perception of the value received in a transaction or relationship – where value equals perceived service quality relative to price and customer acquisition costs (Heskett et al., 1990) – relative to the value expected from transactions or relationships with competing vendors (Zeithaml et al., 1996). Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Gaining high levels of customer
…show more content…
First, loyalty is an attitude. Different feelings create an individual’s overall attachment to a product, service, or organization. These feelings define the individual’s (purely cognitive) degree of loyalty. The second definition of loyalty is behavioural. Examples of loyalty behaviour include continuing to purchase services from the same supplier, increasing the scale and or scope of a relationship, or the act of recommendation (Yi, 1990). Customer loyalty is developed over a period from a consistent record of meeting, and sometimes even exceeding customer expectations (Teich, 1997). Kotler et al. (1999) asserted that the cost of attracting a new customer may be five times the cost of keeping a current customer happy. Furthermore, Gremler and Brown (1996) noted that the degree to which a customer exhibits repeat purchasing behavior from a service provider, possesses a positive attitudinal disposition toward the provider, and considers using only this provider when a need for this service exists. Bloemer & Kasper (1995) hold a contrary view about customer loyalty. According to the authors, Loyalty may be interpreted as true loyalty rather than repeat purchasing behavior, which is the actual re-buying of a brand, regardless of commitment. Zeithaml et al. (1996) states loyalty is a multi-dimensional construct and includes both positive and negative responses. However, a loyal customer may not necessarily be a satisfied
Zeithaml, Valarie A, Berry, Leonard L, & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31. Retrieved April 1, 2011, from ABI/INFORM Global. (Document ID: 9401886).
Measuring this satisfaction is an important element of providing better, more effective and efficient services. When customers are not satisfied with a service as provided, the service is neither effective nor efficient and can result in a loss of business. Why do we measure customer satisfaction? The level of customer satisfaction with services is an important factor in developing a system of service provisions such as the 7P's: § Product § People § Price § Physical Evidence § Place § Processes § Promotion Theses areas of any business are responsive to the customers needs while minimising costs and time requirements and maximising the impact of the services on target populations.
Customer satisfaction is what makes a customer come back again for another experience. The customers know the kind of treatment they are going to receive before they enter the store.
This is first and important step to any organization is maintaining good quality which meets the needs and expectations of consumers. A good service with an excellent quality is the critical factor and continuous monitory effort to a business successful.
Loyalty, it comes in different shapes and is generally seen as a highly regarded human trait. It is defined as a commitment to consistently purchase preferred products or services over and over again (Oliver’s, 1999 p.34). A Loyalty Program (LP) is a marketing exercise designed to reward returning buyers (using discount cards; points cards; club cards / discounts; gifts and exclusive services). Some argue that LPs are only made to make consumers dependent on specific brands. This essay provides evidence that LPs mean to deliver benefits to consumers covering a multitude of their needs beyond mere financial advantage. Further, the paper argues that the choice to join or leave LP ultimately rests with the end users. Frequently multiple brands within one category of products are supported simultaneously.
Williams, P. & Naumann, E. 2011, "Customer satisfaction and business performance: a firm-level analysis", The Journal of Services Marketing, vol. 25, no. 1, pp. 20-32.
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
According to this research the customer satisfaction and service quality is vary from different sectors. If dimension are different but customer satisfaction is same for all services and products. In this report I want to draw a conclusion to point out how relationship is different in different sectors. Here we are dealing with different organization of the same sector, the customer satisfaction is depends upon the services, product quality, delivery time etc.
According to Business Studies ‘’Customer service is one of the most important ingredients of the marketing mix for products and services. High quality customer service helps to create customer loyalty. Customers today are not only interested in the product they are being offered but all the additional elements of service that they receive from the greeting they receive when they enter a retail outlet, to the refund and help that they receive when they have a complaint about a faulty product that they have paid for’’ (Business Studies, n.d).
Many scholars believe that customer satisfaction has a crucial role in the success of a business, and is pivotal in increasing the overall profitability of the business (Kotier, 1991). Customer value is gained through the experience they receive from the goods or purchases they have obtained from a certain business. Customer value has various definitions and concepts, Holbrook (1999) stated that it is a kind of “interactive, mutual, and preferred experience”; but simply said, “the term customer value has many meanings.”
Customer satisfaction is a key ingredient to the success of any business.It is the most important factor that creates repeated customers. Some people know it but do not realize its importance. If a customer of yours is satisfied with one of your products or services, chances are this customer will purchase more of your products or services, which will increase your revenue. Therefore, in order to have your new or existing customers buy more from you, you will have to follow techniques that work. Customer satisfaction takes a very important place in Marketing. As much as you think that your marketing strategies should help you generate sales, think about how the same marketing strategies could help you achieve Customer satisfaction. There are a lot of elements involved with Customer satisfaction.
Service Quality: This dimension is the last and final factor of the value it appears when the customer has made up his mind to purchase a product or service. Service quality decides the relationship between the customer and the store.
The dimensions of service quality refer to the attributes which contribute to consumer expectations and perceptions of service quality, thus serving as the determinants of consumers’ quality assessment (Rowley, 1998). The most well-known, commonly used service quality scale is the SERVQUAL, a general instrument for measuring service quality developed by Parasuraman et al., (1988). It includes five dimensions of service quality: (1) tangibles: appearance of physical facilities, equipment, personnel and communication materials; (2) reliability: ability to perform the promised services dependably and accurately; (3) responsiveness: willingness to help customers and provide prompt service; (4) assurance: knowledge and courtesy of employees and their ability to convey trust and confidence; and (5) empathy: caring, individualized attention that a firm provides its
Service quality can be divided into two components namely technical quality and functional quality (Gronroos, 1984: Parasuraman et al., 1985: Lewis and Mitchel, 1990). Technical quality is defined on the basis of procedures and technical accuracy. Functional quality is defined as the manner in which the delivery of service is made to the customer. In health care industries, patients generally consider the functional aspects such as facilities, cleanliness, hospital personnels attitudes etc., rather than the technical aspects (Babakus and Boller, 1991).
we would be tempted to believe that is a simple, linear relation between satisfaction and loyalty. According the research of (Jones & Sasser Jr., 1995) , relation satisfaction and loyalty is different according to time and circumstances. Unless they are totally satisfied, there is always a chance you will see your customers be lured away (Jones & Sasser Jr., 1995).