Definition of Service Quality
“ameasureofhowwelltheservicelevel
deliveredmatchescustomerexpectations.
Deliveringqualityservicemeansconforming
tocustomerexpectationsonaconsistent
basis.”LewisandBooms
“aformofattitude,relatedbutnotequivalent
tosatisfaction,thatresultsfromthe
comparison of expectationswith
performance.”BoltonandDrew
Five Approaches to Quality
Transcendent approach (psychology)
Product based approach (economics)
User based approach (marketing and
operational management)
Manufacturing based approach (operational
management)
Value based approach
Transcendent Approach
Pirsigs approach –quality cannot
always be defined. We learn to
recognise quality only through
experience -Sports
Product based Approach
Thisapproach maintainsthat
differencesinqualityarecausedbythe
quantityoffeaturesorattributesofa
product.Thisapproachviewsquality
asameasurablevariableandtherefore
asanobjectiveandabsoluteterm.
User based Approach
In this approach quality is defined by
the customer. Therefore quality is
subjective to a large extent because
every user has different thoughts and
ideas about what quality is. This
approach corresponds with Juran’s
definition: “Quality is fitness for use”
Value based Approach
In this approach quality is considered in
relation to cost and price. The concept
reflects the point that customers seek
value for money. “What do I get for the
sacrifices I make?”
Quality Dimensions for
Pharmaceutical Product
A. QUALITY FROM THE PRODUCT VIEWPOINT
1. Performance
2. Secondary features
3. Durability
B. QUALITY FROM THE PATIENT VIEWPOINT
4. Aesthetics
5. Perceived quality
6. Service
C. QUALITY FROM THE PROCESS VIEWPOINT
7. Conformance
8. Reliability
Service Quality
The customer’s judgment of overall
excellence of the service provided in
relation to the quality that was expected.
Process and outcome quality are both
important. (Bitner and Zeithaml)
The problems with using a
subjective view of Quality
How should widely divergent individual
wants be linked up to create a workable
concept of quality?
How should a distinction be made
between attributes leading to quality
and attributes leading to higher
customer satisfaction?
Impact of the characteristics of
Service
Intangibility
–Difficult to measure and assess
Inseperability
–The role of people in the service transaction has
an influence on quality levels
Heterogeneity
–A service is almost never exactly repeated
Perishability
–May lead to customer dissatisfaction (no tickets)
These result in consumers facing a higher
perceived risk in the consumption of services
A Final Definition
“Quality is the extent to which the
service, the service process and the
service organisation can satisfy the
expectations of the user.”
(Kasper et al, 1999)
Therefore quality is a subjective issue
as the actual output of the service is
judged by the customer in terms of their
expectations of the outcome or benefit.
Developing Service Quality
Reasons
–Organisations with a reputation for
consistently high quality can sustain a
competitive advantage in the service
marketplace
–Quality is “free”
–Better quality services can attract premium
prices
Relationship between Customer Satisfaction and
Loyalty in Competitive Industries0%
20%
40%
60%
80%
100%
Very
dissatisfied
DissatisfiedNeither
satisfied nor
dissatisfied
Satisfied Very
satisfied
Satisfaction measure
Loyalty (retention)
Service
Encounter
Quality
Service Design
Service
Organisation
and Culture
Service
Productivity
Perceived
Service
Expected
Service
CUSTOMER
COMPANY
Customer
Gap
GAP 1
GAP 2
Gaps Model of Service Quality
GAP 3
External
Communications
to CustomersGAP 4
Service Delivery
Customer-Driven Service
Designs and Standards
Company Perceptions of
Consumer Expectations
Gaps Model of Service Quality
•Customer Gap:
•difference between expectations and
perceptions
•Provider Gap 1:
•not knowing what customers expect
•Provider Gap 2:
•not having the right service designs and
standards
•Provider Gap 3:
•not delivering to service standards
•Provider Gap 4:
•not matching performance to promises
The Customer Gap
Expected
Service
Perceived
Service
GAP
Dimensions of Service Quality
Tangibles
Reliability
Responsiveness
Competence
Courtesy
Credibility
Security
Access
Communication
Understanding the
Customer
Servqual criteria
Tangibles –appearance of physical facilities,
equipment and communication materials
Reliability –the ability to perform the
promised service dependably and accurately
Responsiveness –the willingness to help
customers and provide prompt service
Assurance –knowledge and courtesy of
employees and their ability to inspire trust
and confidence
Empathy –caring, individualised attention the
firm provides to its customers
Customer Perceptions of Service
Quality and Customer Satisfaction
Service
Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Product
Quality
Price
Personal
Factors
Customer
Satisfaction
Situational
Factors
Problems with the Gap model
and Servqual
Expectations should be based on experience
norms –what consumers should expect
given their experience with that specific type
of service organisation.
Satisfaction is a transaction-specific measure
whereas Service Quality is a long-run overall
evaluation
The link between service quality, customer
satisfaction and purchase intentions has
never been empirically tested
The Three R’s of Marketing
The establishment and maintenance of
long term customer relationships
The development of programmes that
will lead to the retentionof customers
for extended periods.
The establishment of procedures to
ensure that the company can recover
from mistakes that are made.
The Cost of Service Quality (Xerox)
The costs of conformity
–Prevention and appraisal
The costs of non-conformity
–Failure to meet customer requirements
before and after delivery
The costs of lost opportunities
Total customer benefits model
Type of
Benefit
Monetary Non-
monetary
AllocatableCurrent sales
Historic Sales
Customer
satisfaction
WOM
revenues
Not allocatableReferrals
Repeat
business
Sales growth
Loyalty
Corporate
image
Positioning
Service quality costs model
Type of CostMonetary Non-
monetary
AllocatableDiscounts
Samples
Direct
remuneration
Time spent
with customers
Specific errors
Not allocatableTraining
Recruiting
Time
General errors
Loss of
goodwill
Service Quality must be understood
and managed
–Dimensions of Service Quality
Determinants of SQ
–Benefits and costs of SQ
–The limitations and uses of Servqual
Definitions
NationalAssociationofQualityAssurance
Professionalsdescribedqualityas“thelevelof
excellenceproducedanddocumentedinthe
processofpatientcare,basedonthebest
knowledgeavailableandachievableataparticular
facility.”
theCommunityHealthAccreditationProgram
definedqualityas“thedegreetowhichconsumers
progresstowardadesiredoutcome”
Fitness for
use
Dimensions of Quality
Technical competence
Access to service
Effectiveness
Efficiency
Amenities
Interpersonal relations
Continuity
Safety
Quality of Care
Qualityofcareas“thedegreetowhich
healthservicesforindividualsand
populationsincreasethelikehoodof
desiredhealthoutcomesandare
consistentwithcurrentprofessional
knowledge”[IOM,1990]
Dimensions of quality of care
Effectiveness of Care
Access to Care
Patient Satisfaction with Care
Quality care problems
Undertreatment
Overtreatment
Five elements to measure
Quality of care
1.The purpose of quality measurement
2.The population
3.The timing of measurement
4.The source of patient information
5.The setting in which care is to be measured.
Quality of care measures are often established
through a peer review process by professional
societies and often government agencies.
APPROACHES OF QUALITY
Quality Control (QC)
Total Quality Management (TQM)
Quality Assurance (QA)
Continuous Quality Improvement (CQI)
Quality Control
Quality control in health care organization
refers to activities that evaluate, monitor or
regulate services rendered to consumers.
Observe
•The process
Identify
•Variable characteristics
Track
•Variables through statistical methods
Quality Control Process
It is an eight-step process for monitoring and evaluating
performance. It must include the following steps:
Establish control criteria.
Identify the information relevant to the criteria.
Determine ways to collect the information.
Collect and analyze the information.
Compare collected information with the established
criteria.
Make a judgment about quality.
Provide information and if necessary, take corrective
action regarding finding to appropriate source.
Determine when there is a need for re-evaluation.
Total Quality Management (TQM)
A way to continuously improve performance at
every level of operation in every functional area
of on organization using all available human and
capital resources.
Aim to reduce the waste and cost of poor quality.
The main elements of TQM are three:
-the customer, whose needs are paramount to the
determination of quality,
-the teamwork as a mean of achieving quality,
-the scientific approach to decision-making based on data
collection and analysis.
Quality Assurance
All of the activities that make it possible to
define standards, to measure and
improve
the performance of services and health
providers so that care is as effective as
possible
Quality Assurance
defined as “the process for objectively and
systematically monitoring and evaluating the
quality and appropriateness of patient care, for
pursuing opportunities to improve patient care for
resolving identified problem”.
The focus of quality assurance is the discovery
and correction of errors. These activities are
carried out by, quality assurance personnel or
department personnel.
Quality Assurance
Standards, norms,
guidelines)
One cannot measure that
which one has not defined
Define
Quality
•The variation in standards
One cannot improve that
which one has not
measured
Measure
Quality
•Comply with norms
Improve
Quality
Continuous Quality Improvement
(CQI)
CQI is a cyclical process.
It involves identifying an area where there is
an opportunity for improvement then outline
the sequence of activities that should occur in
order to solve that problem, and
implementing them.
Once the cycle is completed it has to be
determined whether the problem has been
solved.
If the problem continues, the cycle should be
repeated.
Continuous Quality Improvement
Cycle (CQIC)
There are seven steps involved in implementing
CQI cycle:
Step 1identify an areawhere opportunities for
improvement exists.
Step 2define a problemwithin that area, and
outline the sequence of activities(the process)
that should occur in that problem area.
Step 3establish the desired outcomesof the
process and the requirementsneeded to achieve
them.
Continuous Quality Improvement
Cycle (CQIC) cont.
Step 4select specific stepsin the process,
and for each step list the factors that prevent
the achievement of desired outcome.
Step 5collect and analyze data about the
factors that are preventing the achievement
of the desired outcomes of the desired steps.
Step 6take corrective actionto improve the
process.
Step 7monitorthe results of the action
taken