Managing Service Quality

This report is for the Chartered Quality Institute (CQI), to help identify how to achieve service success through the service encounter.

It could be argued that in a perfect world a customer should continuously have positive encounters when using any organisation, however that is not always the case and many customers may experience a negative encounter which could influence their consumer choices in the future(Clarke David, N.D).

In this report, there will be an analysis of how significant the importance of customer satisfaction and loyalty is in today’s competitive market. This will be identified by examining what service quality measurement tools can be utilized and if they are used for the management or consumers benefits. By using a large chain UK (United Kingdom) airline (BA) British Airline to identify the current service offerings within the hospitality and tourism industry. There will be an outline of the positive and negative factors that advancements in these markets create and how the organisations need to adapt their customer service encounters to stand out from the competition.

Furthermore, the significance of superb complaint communication in a service organisation is likewise viewed which indicates the notion of how vital the element is in having great power over the influence of consumers choices.

INTRODUCTION

Creating or retaining client devotion in today’s market is considered as one of the most imperative promoting procedures for creating competitive differences in demanding and rapidly developing business world (Raab.G et al. 2016). Building or holding client devotion, one needs to centre on improving the client relationship by guaranteeing excellence when delivering their services which would be the exact requirements and desire the shoppers want. This is done by companies utilizing marketing methods in order to gain an understanding as to where the improvements are needed within their service encounters to ultimately better their service delivery given, however there are many arguments that some service management modules are not sufficient enough to consider both the managers and customer’s needs.

Numerous service organisations convey quality services to sustain great client relations, yet they neglect to comprehend approaches to keep up client loyalty (Noone, 2009). A critical examination of service marketing academic journal uncovers that the nature of service experience mirrors the genuine level of client loyalty for service organization (Paul Hague and Nicholas Hague, 2018).

Consumer loyalty is a crucial tool for progress, particularly in a service offering organisation (Saini and Singh, 2020). Examining a service quality framework by employing a ‘service blueprint’ process can provide numerous advantages as it encourages reflection through fragile territories of service conveyance, internal and external interactions making this method more transparent (Hossain, Enam and Farhana, 2017). After recognizing the more fragile regions, progressions should be possible for guaranteeing that practices are not repeated which would prompt higher benefits and expanded client dedication (Baranishyn, Cudmore and Fletcher, 2010).

For services, the calculation of quality is made during the service delivery process. Every client contact is a chance to fulfil or dissatisfy the client’s expectations. Client satisfaction with a service can be defined by contrasting observations and desires of service. When desires are not met, administration quality is considered unsuitable and dissatisfaction happens. At the point when expectations are affirmed by apparent assistance, quality is palatable(Morris, 1999).

MEASUREMENT METHODS

It is a requirement of the ISO 9001 standard that all organisations measure customer satisfaction (Richard Keen, 2019). It is argued that utilizing the correct measurement method for individual businesses is crucial in identifying a company’s employee and customers satisfaction (Gonzalez and Santamaria, 2008). Below are some of the most utilized service quality measurement methods.

(Illustrated below in figure 1) SERVQUAL or RATER model an analytic tool developed from the study of Zeithaml, Parasuraman and Berry in 1895 with ten dimensions of service quality were dependability, approachability, access, expertise, communication, trustworthiness, security, awareness/knowing the consumer and the tangibles of the service provider (Arash, 2011). This model is the most utilized by promoting specialists and researchers, despite the fact that it is an exploratory investigation and does not offer a reasonable estimation strategy for gaps at various levels. This model has been refined during the years and some accept that lone exhibition should have been estimated as SERVPERF model to discover impression of service quality (Cronin and Taylor, 1994).

(Illustrated below in figure 2) 7 Ps of Booms and Bitner marketing tool technique broadens the original marketing mix devised by marketing professor Jerome McCarthy which involves four basic components from Boom and Bitner’s version, these elements are product, price, promotion and place. As services have distinctive characteristics for example heterogeneity, inseparability, perish-ability and intangibility, this method can provide an idiosyncratic look into service qualities within differentiating companies (Vliet Van Vincent, Nd).

More recently a new approach to measuring and managing service encounters has been created (illustrated below in figure 3) The Human Sigma (Asplund and Fleming, 2007). According to (Sutton, 2014), this approach is said to have played a major part in the distancing from segregated employee and consumer satisfaction measurements. Dr Sutton described this method as “a more powerful and emotional dimension of engagement” which ultimately could help businesses remain competitive when enticing and obtaining both consumers and employees.

THE HUMAN SIGMA

(Batra Madan, 2016)

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DISCUSSION: WHAT WORKS AND WHY

Parasuraman, ZeithamI, and Berry (1985), exhibited that service quality is characterized in the model as the distinction between purchaser desires and observations, which thusly relies upon the focus and size of the four gaps related to the conveyance of service quality on the marketers side (Mauri, Minazzi and Muccio, 2013).

Moreover, Brown and Bond (1995) expressed that the calculation of service quality likewise called the expectation – perception gap model is the greatest received and highly heuristically important factor to the service literature. The model recognizes the key inconsistencies or holes identifying with administrative views of service quality, and undertakings related with service conveyance to clients (Brown and Bond III, 1995).

(Goi, 2009) suggests that some key marketing policies have changed considerably. In a journal by (Virender Sanghvi, 2014) it is argued that pricing is considered to be the most crucial marketing strategy although in a survey done by (Udell G Jon, 1964) pricing was only ranked sixth in importance. The service profit chain (illustrated in figure 4) can establish the relationship between profitability, customer loyalty and staff satisfaction, loyalty and productivity (Voudouris Christos, 2008). (Udell, 1968) discovered that effort in sales were rated the most important, closely followed by product efforts, pricing and delivery. Product related measures where found to be the most crucial by LaLonde (1977) followed by delivery, price and marketing. It could be argued that from the examinations made that business executives do not actually look on the four P’s as being as important as one another, however, do consider price and product components to be the most vital (Bert J. Kellerman et al 1995).

According to Popovic (2006) the theory of 4P’s has been disparaged as being more production focused definition of marketing and not consumer driven. Lauterborn (1990) argued that each key variable should also include the consumers perspectives. This transition is achieved by successfully adapting products into consumer solutions, place into convenience , price into cost and publicity into communication, also known as the 4C’s. In a publication by Moller (2006) there where 4 key condemnations given in regard to the Marketing Mix Strategy:

• The framework does not contemplate consumer behaviour and is internally orientated.
• The framework considers consumers as inert; it does not allow communication and cannot obtain a connection.
• The method has no theoretical content; it works predominantly as a simplistic method that is management focused.
• Does not offer help for characterization of marketing activities.

(Oliver, 1980) argues that customer satisfaction is efficiently catering the consumers expectations and it is the overall satisfaction a customer is left with after using the merchandise or service (Evans, Martin (Martin J. ), Jamal and Foxall, 2009).

The lean measuring tool gives five estimations of service quality including responsiveness, reliability, quality, compassion and affirmation: utilizing a five-point scale. This standard assists analysts with finding the estimations of administration quality by resembling the uniqueness in the midst of customers’ expectations in real life experiences. In any case, this distinguished service quality tool has been condemned on both methodological and hypothetical grounds (Babakus and Boller 1992). Likewise, scientists have questioned in favour of exploring service quality through various levels with both essential and sub-measurements, as customers form expectations in service quality through different assessments (Rafiq, Lu and Fulford, 2012).

Kwateng (2017) also stated that retailers selling have minimal offerings baring their services, consequently associations ought to guarantee and offer great quality services. In the travel industry and hospitality industry Briggs, Sutherland and Drummond (2007) suggest that there is an irregularity in data between service providers and consumers which makes it hard for clients to have adequate comprehension of the qualities and charges provided to them by service providers and it seems that consumers only find out the reality after they have made a purchase.

With fast advancements in the travel industry clients have a vaster scope of specialist organizations to browse than previously, this makes the adequate execution of the guidelines for service quality to be extremely critical. As indicated by Sutherland (2007) the quick increment in mobile technology service providers , will prompt inconsistency in the quality given to consumers.

BRITISH AIRLINES

As the airline production continues to rapidly increase and advance, the present airline leaders such as BA, are met with the preliminary of matching long-haul strategies with momentary answers. Consumer satisfaction has grown extensively in significance for airlines main focuses and as a result service satisfaction plays a vital part in this sectors growth (Ringle, Sarstedt and Zimmermann, 2011). According to Phamvan Vincent (2018) using Lean principles can assist companies in becoming more efficiently customer-focused and give a more competitive advantage.

During the time Margret Thatcher was part of office, the government made the decision to privatize the main British companies. BA was the main company chosen to be sold to the public, as BA had one of the worst reputations for customer service standards within the travel and hospitality industry, so the government wanted to try enhance BA,s value before stock became available for sale. BA. Marshall who was in control of this enhancement process soon discovered that an attitude shift was essential due to the fact that in the 70s and 80s BA employees thought that they where doing the public a “favour” by letting them fly on their plans, they made sure the public knew this by their content and there body language and tone of voice when addressing a consumer. Due to this a program was developed called; Putting People First, that would hopefully make the 36,500 BA employees improve their approach to service encounters. After completion of this BA began to invest time on the complaints handling procedures as this was a major floor within there service encounter process. They introduced a $6.7 million computer analyses program to help analyse customer preferences with the main aim to help them retain customers for life. BA argued that 67% of there passengers would fly with them again if their complaint was handled efficiently. However, has time has gone on according to Hussain Amar (2020) British Airways still suffer from an inadequate customer service approach and have been struggling to keep up with competition from more low-cost carriers. They still face wide arrays of complaints including poor customer service and unexplained fees and refund issues, Customer services are said to not reply to any of there social media complaints pages leaving customers more frustrated.

CONCLUSION

In conclusion , the challenge and adequacy with which a complaint is dealt with is seen as an indispensable part of accomplishing great service successes through the service encounter. As per Sutton and Rafaeli (1988); Lovelock (1983) expressed that buyers are regularly ready to exchange of the instant factor with personalisation. Every one of these components are incredibly regarded by the customers when weighing out a negative service encounter and the recuperation of that service.

As indicated by Mulki et al (2007) the primary obligation of representatives is to draw on the impacts made by the changed arrangement of hierarchical workers so as to make valued offers for clients. As confirmed by Ustuner and Godes (2006) to be productive, representatives need 'access to the correct data, the capacity to distribute it to the perfect individuals, and the ability to facilitate endeavours of groups of individuals to convey value to the consumer.'

Subsequently to have fulfilled clients, the organization should likewise have content representatives cooperating for them. As stated by Parasuraman, Leonard, Berry and Becker (1992) 'Internal advertising is enticing, creating, persuading and retaining qualified workers through occupation products that fulfil their necessities. It is the way of thinking of regarding workers as clients, furthermore it is the technique of forming work items to fit human needs.' Grönroos, (1998) states that internal marketing helps management to realize and make adjustments in the mentality and behaviour of the employees toward their occupations and the consumers and helps to accomplish a more client-oriented service encounter.

According to many literature reviews that have been identified within this report, the key to having a successful service encounter is efficiently utilizing the organisations strengths and considering at all times not only the individual consumers desires but also the employees. This will make staff feel important and needed ultimately giving them the drive to deliver superb customer service giving the consumer an excellent service encounter which in turn will make them feel valued and respected and enable the organisation to

• stand out from competition.
• Increase customer loyalty.
• Increase the amount of money each consumer spends.
• oIncrease how often a customer makes purchases.
• Generate a positive repour and create future possible consumers.