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SERVICE QUALITY & CUSTOMER SATISFACTION P.V. BALAMURALI
Primary Business Objectives Maximize profits Minimize cost
How to maximize Profit? Satisfied /Loyal Customers Increase Sales
What is most important? Product or Buying experience
SERVQUAL Model developed by Parasuraman, Zeithaml and Berry in 1985
SERVQUAL DIMENSIONS DEFINITION EXAMPLES •Reliability Courier Service Physical facilities, equipment, and appearance of personnel. Tangibility Hospital Facilities Willingness to help customers and provide prompt service. Responsiveness Flight Attendant in Emergencies Knowledge and courtesy of employees and their ability to inspire trust and Confidence. Assurance Pilot or Addidas Empathy Caring individualized attention to customers Doctors
CUSTOMER EXPECTATIONS • Brand / Image • Product attributes • Tangibles • Reliability • Responsiveness • Competence • Courtesy • Credibility • Security • Access • Communication • Understanding the customer
SERVICE QUALITY ASSESSMENT Word of mouth Personal / Business needs Past Experience Service Quality Assessment Expected Service Tangibility Reliability Responsiveness Assurance Empathy 1) Expectations Exceeded PS > ES = Quality Surprise 2) Expectations met PS – ES = Quality Satisfactory 3) Expectations not met PS < ES = Unacceptable Quality Perceived Service
• Repeat purchase • Recommendation • Product / process Performance improvement • Awards & rewards to staff • Boost staff motivation • Boost Supplier’s confidence • 360 degree satisfaction • Improves company image • Improves company profile in the stock market • More investments • Expansions • More revenue.. OUTCOME Customer Satisfaction