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Definition of Services Unit 4

The document defines services as intangible activities or benefits offered for sale, highlighting their characteristics such as intangibility, inseparability, variability, perishability, and heterogeneity. It discusses service quality as a critical factor for customer satisfaction, outlining dimensions of quality that customers evaluate, including competence, courtesy, understanding, access, communication, credibility, and security. Additionally, it introduces the Service Quality Gap model, which identifies five gaps that organizations must address to align customer expectations with perceptions of service received.

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10 views12 pages

Definition of Services Unit 4

The document defines services as intangible activities or benefits offered for sale, highlighting their characteristics such as intangibility, inseparability, variability, perishability, and heterogeneity. It discusses service quality as a critical factor for customer satisfaction, outlining dimensions of quality that customers evaluate, including competence, courtesy, understanding, access, communication, credibility, and security. Additionally, it introduces the Service Quality Gap model, which identifies five gaps that organizations must address to align customer expectations with perceptions of service received.

Uploaded by

tiwaridivyanshu805
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Definition of Services

•According to American Marketing Association


services are defined as “activities, benefits or
satisfactions which are offered for sale or provided in
connection with the sale of goods.”

•According to Philip Kotler and Bloom services is


defined as “any activity or benefit that one party can
offer to another that is essentially intangible and does
not result in the ownership of anything. Its production
may or may not be tied to a physical product.”
Characteristics of Services
• Intangibility – Services are cannot be touched or hold, they are intangible in
nature. For example – you can touch your Smartphone. But, you cannot hold
or touch the services of your telecom service provider.

• Inseparability – In case of services the production, distribution, and


consumption takes place simultaneously. These three functions cannot be
separated.

• Variability – It is impossible to provide similar service every time. You’ll


experience some change every time you buy a particular service from a
particular service provider. For example

• Perish-ability – You can store goods, but it is not so in the case of services.
Services get perished immediately.

• Heterogeneity- Not in Uniform


Difference Between Product And Service
Service Quality
•Service quality is an approach to manage business
processes in order to ensure full satisfaction of the
customers & quality in service provided. It works as
an antecedent of customer satisfaction.

•From the viewpoint of business administration, service


quality is an achievement in customer service. It reflects at
each service encounter. Customers form service expectations
from past experiences, word of mouth and marketing
communications. In general, customers compare perceived
service with expected service, and if the former falls short of
the latter the customers are disappointed.
Dimensions Of Quality In Services
The dimension of service quality is listed below that are used by
customers to evaluate service quality.
1. Competence:
•The actual technical expertise of the service provider, e.g. Is the doctor
really qualified to perform heart surgery? Does the financial adviser
have sufficient knowledge of all the relevant tax regulations?

2. Courtesy:
•The attitude of the service provider and manner adopted by the server,
e.g.. Is the receptionist friendly, helpful and polite? Does the doctor treat
the patient as an inferior being?

3. Understanding:
•How well the provider of the service understands the client’s needs e.g. .Does the
bank recognize that most clients cannot get to the bank in working hours? Are
there mirrors positioned in the hotel bathrooms which allow guests to see the back
of their hair?

4. Access:
•How easy is it to reach the service provider, geographically or by phone, e.g Are
there car parking facilities close to the solicitor’s office? Does it always take five
5. Communication:
•The clarity and understandability of the information given to
the client, e.g. Does the doctor take the time to explain in
terms the patient can understand, what is going to happen
next? Does the solicitor explain clearly what the legal jargon
means?

6. Credibility:
•The trustworthiness of the service provider, e.g. Does the
newspaper reporter report all the facts or only those which
support his/her argument? Does the financial adviser present
all the options or only those which earn him/her the most
commission?

7. Security:
•The physical safety of the customer or privacy of client
information, e.g. Are the medical records of patients kept
confidential?
Service Quality Gap
•The Service Quality Gap is a framework which
can help us to understand customer satisfaction.

•The model shows the five major satisfaction


gaps that organizations must address when
seeking to meet customer expectations. The
model was first proposed by A. Parasuraman,
Valarie Zeithaml, and Leonard L. Berry in 1985.
Service Quality Gap
In the Gap Model of Service Quality, customer satisfaction is
largely a function of perception. If the customer perceives that
the service meets their expectations then they will be satisfied.
If not, they’ll be dissatisfied. If they are dissatisfied then it will
be because of one of the five customer service “gaps”
CUSTOMER EXPECTATION VS CUSTOMER
PERCEPTION

Customer Expectation represents the actual expected


service & Customer Perception revels the actual received
service.

Service
Customer GAP Customer
Expectation Perception
(Actually
(Expected
Received
Service)
Service)
MODEL
Word of Mouth Personal Needs Past Experiences

Consumer
Expected Service

Gap 5

Perceived Service

Gap 4 External
Service Delivery Communications
Gap 3
Gap 1 Translation of Perceptions into
Service Quality
Specifications
Gap 2

Management Perceptions of
Consumer Expectations
Marketer
Service Quality Gap
The five gaps that organizations should measure, manage and
minimize:
Gap 1 is the distance between what customers expect and what managers think they expect
–

Gap 2 is between management perception and the actual specification of the customer
experience - Managers need to make sure the organization is defining the level of
service they believe is needed.

Gap 3 is from the experience specification to the delivery of the experience - Managers
need to audit the customer experience that their organization currently delivers in
order to make sure it lives up to the spec.

Gap 4 is the gap between the delivery of the customer experience and what is
communicated to customers –

Finally, Gap 5 is the gap between a customer's perception of the experience and the
customer's expectation of the service - Customers' expectations have been shaped by
word of mouth, their personal needs and their own past experiences.

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