Quality issues in Services sector are important

Quality is very important in today's scenario

1. Quality Issues in Marketing Batch: MBA in HM 6 th Trimester Subject: Strategies for Competitive Advantage (MHM5SCAI) Faculty: Dr. Ansuman Samal Online Lecture Series No: 03

2. Quality Quality at its basic form explain it as Conformance to the Standards ( Philip Crosby) It can also be defined as the Fitness for intended use . (Joseph Juran ) The totality of features of a product or service that bears on its ability to satisfy a stated or implied need. (American Society of Quality ) The most famous and approved definition can be given as the difference between the expectation and perception of customers, before and after availing a product or services ( Parasuraman , Zeithamal & Berry)

3. Benefits of Quality Improved Quality can provide various benefits like Higher productivity Strengthened competitive position Elimination of defects and waste ( Reduced costs and better cost management) Improved and innovative processes Enhanced Image of the company Employee participation, teamwork that will improve the working relationships Increased customer satisfaction, loyalty and retention Employee satisfaction, loyalty and retention Communication Higher amount of sales will ensure increase in Profitability , Market share, and stock price performance

4. Dimensions of Quality (Products) 1. Performance : primary product characteristics, e.g. picture brightness in TV. 2. Features: secondary characteristics, added features, e.g. remote control, picture-in-picture. 3. Usability: Ease of use with minimum training. 4. Conformance: meeting specifications, industry standards,. (E.g. ISI specs., emission norms). 5. Reliability: consistency of performance over a specified time period under specified conditions. 6. Durability: extent of useful life, sturdiness. 7. Maintainability/Serviceability: ease of attending to maintenance, repairs. 8. Efficiency: ratio of output to input. E.g. mileage, braking distance, processing time. 9. Aesthetics: sensory characteristics, e.g. appearance, exterior finish, texture, color, shape, etc. 10. Reputation: subjective assessment based of past performance, brand image, industry ranking. 11. Safety: in items like pressure cookers, electrical items, toys, cranes, etc.

5. Dimensions of Quality (Services) 1. Time: how much time a customer must wait / undergo service. 2. Timeliness: whether service will be performed when promised. 3. Completeness: whether all items in the order are included. 4. Consistency: consistent service every time, and for every customer. Reliability of service. 5. Accessibility/Convenience: ease of obtaining the service. 6. Accuracy: absence of mistakes. 7.Responsiveness: quick response, resolution of unexpected problems. 8. Courtesy: cheerful, friendly service. 9. Competency/Expertise: In professions like doctors, lawyers, mechanics, etc.

6. Principles of Services Quality Receiving a high level of service is important to consumers but understanding how to evaluate the service quality received is more difficult. Two customers receiving the same level of quality may evaluate the quality delivered from their angles and they can differentiate between them. The process used by consumers in evaluating services differs from the process used for goods. Services tend to be high in experience and credence qualities while goods tend to be high in search qualities. Search qualities are attributes that consumers can evaluate prior to purchasing a service or good. Experience qualities are attributes that consumers can evaluate things only during or after the consumption process. Credence qualities are attributes that consumers have difficulty evaluating even after consumption is over. The examples are given below: Quality Definition Consumer Examples Business Examples Search Qualities These qualities can be evaluated prior to purchase like color, style, fit, feel, smell and price. Shoes, Jeans, Refrigerators, Mobile phones etc. Raw materials, Components parts, office supplies, tools janitorial services.. etc Experience Qualities These qualities can be evaluated only during or after the good or service has been consumed. Foods, Catering services, entertainments and Cosmetic surgery. Lawn service, Delivery service, Repair Service etc. Credence Qualities These are difficult to evaluate even after the service or good is consumed. Accountant services, Funeral services, Education, Veterinarian Consulting services, Financial services, Advertising, Services etc.

7. Measurement of Services Quality GAPs To evaluate the quality of the service, consumers normally compare the service, they received with the service they expected. If service quality were to be calculated mathematically, the formula would be P-E where P = Consumer’s perceived level of service received and E = Consumer’s expectation prior to the service expectations. A positive figure indicates about the fact that the perception scores are lower than the expectation scores where as the negative number indicates consumer’s expectations were exceeded. Five gaps are indetified between what consumers expect and what they receive. Gap 5 is the sum of gaps from 1 to 4 and is equal to the difference between what consumers receive and what they expected for the service. Gap 5 is affected both by the direction and magnitude of gaps one through four

8. GAP Model

9. The 5 GAPs Gap 1 ; It is the difference between what customers expect from a service and what management believes customers expect from a service. Gap 2 : It is the difference between management’s perception on consumer’s expectations of a service and the service quality specifications. Gap 3 : It is the difference between the service quality specifications for a service and the delivery of those specifications by the service providers. Gap 4 : It is the difference between the service that was delivered and the external communications of the firm. Gap 5; Sum of Gap 1 to Gap 4, i.e. the overall comparison of what consumers expected from the service provider and their perceptions of the service they received from the service provider.

10. GAP 1: The difference between what customers expect from a service and what management believes customers expect from a service Reasons for the GAP 1 Strategies to reduce the GAP 1 Miscommunication ( Absence of upward communication) Not attentive to the front line Staffs Inability to take care of feedbacks   Communicating with the customers Conducting Market research. Encouraging upward communications. Decreasing the layers in the management so that the top management can get the real feedback and information.

11. GAP 2: It is the difference between management’s perception on consumer’s expectations of a service and the service quality specifications Reasons for the GAP 2 Strategies to reduce the GAP 2 Resource Constraints Market Conditions Management Indifference   Commitment by the top management. Develop service quality goals. Standardization of tasks. Address feasibility of customer’s expectations.

12. GAP 3: It is the difference between the service quality specifications for a service and the delivery of those specifications by the service providers Reasons for the GAP 3 Strategies to reduce the GAP 3 The employees are not aware of the specifications. The employees are aware of the specifications, but they lack the skills to perform them. The employees are aware of the specifications and they have the required skills to perform the tasks, but they don’t want to perform them. Firms must recruit and select potentially fit candidates for the job. Firms need to encourage proper teamwork and proper T&D. Ensure a good employee-job fit. Empower the employees. Provide the employees some control on how they can perform the service and power to modify the service to meet consumer’s requests. Develop supervisory control system that rewards employees for providing service according to specifications. Reduce employee-role conflict and ambiguity.

13. GAP 4: It is the difference between the service that was delivered and the external communications of the firm Reasons for the GAP 4 Strategies to reduce the GAP 4 Poor or lack of communication, between service personnel and what is promised by advertising, marketing communication and sales people. Over promising by sales staff and other means of marketing communication Increase horizontal communication between the marketing department and service personnel. Avoid the tendency of over promising to obtain a sale. Inform service personnel of promises made by the sales people and marketing communication.

14. GAP 5: It is the difference between the perception scores about services that were delivered and the expectation scores before availing them Reasons for the GAP 5 Strategies to reduce the GAP 5 Sum of Reasons 1 + Reason 2 + Reason 3 + Reason 4 Strategies to fill up Gap 1 + Strategies to fill up Gap 2 + Strategies to fill up Gap 3 + Strategies to fill up Gap 4

15. General Strategies to reduce the Gaps Reliability  Involves consistency of performance and dependability. Accuracy in billing. Keeping the records correctly. Performing the service at the designated time. Responsiveness  Concerns with the willingness or readiness of employees to provide the service. Mailing a transaction-ship immediately. Calling the customer back quickly. Giving prompt service. Competence  Subject wise Knowledge Means possession of the required skills and knowledge to perform the service. Knowledge and skill of the contact personnel. Knowledge and skills of the operational support personnel. Research capability of the organization. Access  Involves approachability and ease of contact. Service is easily accessible by telephone. Waiting time to receive service. Convenient hours of operation. Convenient location of service facility .

16. Courtesy  It involves politeness, respect, consideration and friendliness of contact personnel including that of the receptionists, telephonic operators etc. Consideration for consumer’s property. Clean and neat appearance of public contact personnel. Communication  Keeping customers informed in language that they can understand and listen to them. Explaining the service itself. Explain how much a service will cost. Explain the tradeoff between the service and cost. Assuring the consumer that a service will be handled. Credibility  It involves trustworthiness, honesty, and believability like company’s name, company’s reputation, personal characteristics of the contact personnel General Strategies to reduce the Gaps

17. Security  It is the freedom from danger like physical safety, financial safety and confidentiality etc. Understanding  The customer involves making the efforts to understand the customer’s needs. Learning the customer’s specific requirements. Providing individualized attention. Recognizing the regular customers . Tangibles  It includes physical evidence of service like physical facilities, appearance of personnel, tools & equipments used to provide the service. General Strategies to reduce the Gaps

18. Quality Management process in Hospitality Industry Sl. No Attributes Implication for Hotel Industry 1 Reliability   Ability to deliver the promised service Hotel equipment if always functioning 2 Responsiveness   Hotel Staffs are always willing to Help the guests Promptness of Room service 3 Assurance       Guests feel safe and secure while staying in the hotel Hotel staff are knowledgeable to answer guests Guests feel that the hotel services are provided at a competitive and affordable price Hotel staff have the proper skill to perform requested services 4 Empathy   Hotel staff pay attention to guests’ specific needs Hotel staff take guests’ best interest at heart 5 Tangibles Hotel has good looking furniture, soft furnishings and fittings Hotel has comfortable beds, furniture and fittings Hotel’s equipment and facilities appear clean and shiny Everything in the room works and is easy to use Hotel has a well dressed staff Hotel ambiance is attractive and has variety 6 Competence Employees knowledge about local place of interest 7 Access Accessibility of the service provider 8 Courtesy   Politeness and respect of the staff to customer Behavior of the staff 9 Communication modes         Phone (long distance and international line) Quality of communication (Voice Clarity) Availability of Wi-Fi in hotel room Fax facility Scanner and printer availability

19. Quality Management process in Hospitality Industry Sl. No Attributes Implication for Hotel Industry 10 Credibility Trustworthiness of service provider Honesty of the service provider 11 Security       Alarm provided for Danger Fire proof arrangements Accidental Facilities General Safety 12 Understanding & knowing the Customers Efforts by the service provider to know the customer 13 Food, Amenities and Entertainment       Quality of food Choice of food Restaurant amenities Entertainment facility like T.V. & DVD

20. Thank You Queries can be cleared vide email: [email protected] Or Whatsapp number : 9437858200