PRODUCT/SERVICES AND QUALITY
P2, S3, T1
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Introduction
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Products and services that meet or exceed customer expectations result incustomer satisfaction.quality is theforeseenproduct/service being performed. Before a customer makes a purchase (changes money for a product/service) he does a mental calculation: “Is the value of the product/service (as I perceive and expect it) equal to the money I am about to exchange?”
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Products/services that are produced and manufactured to specifications appropriate to the price (money given in exchange to the customer) of the product/service is an operational or manufacturing view of quality. Here, the customer receives the value he expects, since operations have incorporated quality standards into the product. An operational view of quality is a common view of the concept of quality.
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However, quality is a function of how the customer views the product/service they receive. Customer insight always compares what the customer expects with what the customer actually receives, regardless of how operations view quality. How do customers meet their expectations?
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Marketing, especially sales, has a huge effect on how the customer views quality. As mentioned above, customer satisfaction is based on receiving the actual product/service as expected.When marketing and sales enthusiastically promise a product/service that manufacturing or operations (in the case of a hospitality service) cannot deliver, expectations are not met, the customer is dissatisfied, and quality (in the eyes of customers) suffers. .
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Quality is not an absolute to be determined byoperationsor manufacturing The variables that affect quality are: (a)Customer expectations(gained from marketing and sales as well as word of mouth and past experience), (b) actual product/service received (how operational staff perform a service and actual tangible goods received (cold food for example). The following templates explain these basic concepts.
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Discussion
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What is quality?
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There are two perspectives and lenses through which to view quality: Tangible product orientationmiGuidance on the provision of intangible services. Both are necessary, however the latter is more important as hospitality products become more tangible.
Guidance for tangible products.Here the focus is on the product itself, but from two other perspectives (Kotler, Bowen and Makens, 1996):
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1. Product/service characteristics.The product/service is seen as a set of features that increase customer satisfaction. While this may or may not be customer-focused (depending on whether the customer actually asked what product improvements they want), in reality, the focus is on adding additional features in hopes of creating customer satisfaction. This approach increases the cost of the product. The justification for these additional features must be paid for by additional customer spending or by earning a return from the organization due to increased customer loyalty.
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Company image, word of mouth, and marketing/sales (promotion and price levels) shape customer expectations. A hotel guest staying at the Ritz paying $300 a night will have very different expectations than a Motel 6 guest paying $45 a night. Therefore, both the Motel 6 guest and the Ritz guest can conclude after their stay that they received quality rooms. Why do both Motel 6 and Ritz offer a quality room? Because the rooms at the Ritz and the Motel 6 don't compare to each other. In each case, the customers' expectations were met with the room they received for the price (which is a variable that signals expectations) they paid.
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The quality of product features is related to customer expectations.
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2. Disability Free.In the example above, the rooms at the Ritz and Motel 6 must be clean and the beds must be made every day. NOTE: Is there a price level below which even these deficiencies ARE acceptable, eg a cheap run down motel?
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Seriously, the products shouldto work. At a basic level, they must operate as they should or the customer will determine that the quality is inadequate.
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Guidance on the provision of intangible services.Here the focus is on the service delivery process. This involves two basic components: (a) Technical quality – the means to deliver the service and (b) Functional quality – how to deliver the service.
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1. Technical Quality.This includes the systems and infrastructure designed and built to organize the provision of services. For example: computerized systems, technical solutions of machines and know-how.
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2. Functional Quality. The hospitality customer goes through many interactions with employees to create and deliver a hospitality experience. A successful meeting is the result of allfunctionalareas of a hotel synchronized and focused to create a beautiful symphony. Technical quality must exist to facilitate this coordination and allow employees to work together. Functional quality includes employees: attitudes, behavior, service mindset, appearance, accessibility, internal relations, and customer contacts.
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quality models
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Models help us understand the complexity ofQuality of service🇧🇷 First, we'll discuss an early start template: The perceived service Quality ModelDeveloped by Christian Gronroos in 1982. Second, we will discuss an evolutionary form of the Gronroos model, theGap Analysis Modeldeveloped by V. A. Zeithaml, A. Parasuraman and L. L. Berry in 1988. This latest model, currently packaged as theSERVQUALmodel, is widely used in the hotel industry to understand and improve the quality of hospitality service.
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Perceived service quality model (Figure 1)
In 1982, Christian Gronroos of the Swedish School of Economics, Helsinki, Finland, presentedThe perceived service quality model(see Figure 1). According to Gronroos, the service quality studies and the subsequent development of the model were based from the beginning on what customers perceive as quality. In other words, the quality of the service is a consequence of the marketing concept; customer focus. What matters is what the customer perceives as quality, not what the designers or operations people think is good or bad quality.
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Customer buying behavior theories have strongly influenced many models of service quality. The notion that a customer's post-purchase perception is a function of their pre-purchase expectations is the foundation of the confirm/disconfirm concept of service quality. The concept of confirmation/disconfirmation is the fundamental concept of the Gronroos Perceived Service Quality Model of 1982 and the well-known (1988) Gap Analysis and SERVQUAL models by V. A. Zeithaml, A. Parasuraman and L. L. Berry (Gronroos, 1991).
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According to the Perceived Service Quality model (Figure 1), the quality of a service, as perceived by the customer, is the result of a comparison between the customer's expectations and their real-life experiences.If the "experienced quality" exceeds the "expected quality", the "total perceived quality" is positive. If expectations are not met by actual performance or experience, perceived quality is low. There are multiple clients in an internship program: students, internship providers, and sponsoring entities, for example. Ultimate success depends on initial expectations compared to actual performance.
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Figure 1
The perceived service quality model
Source: Gronroos, C. (1991). “Quality comes to service”, inThe service quality manual.
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The five-gap model of service quality (Figure 2)
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Another widely used service quality model is known as the five gaps model (Kotler, Bowen and Makens, 1996, pp. 357-361). Knowing what customers expect is the first, and possibly the most critical, step in providing quality service. Therefore, the organization/marketing must know what customers expect in order to provide services that customers perceive as excellent.This is an extension of the marketing concept and consultative selling approach that: (a) you first learn through in-depth questions (read extensive market research) what the customer needs and wants (the customer problem you want to solve) and (b) second, it delivers the benefits of the product/service that will solve the problem (satisfy needs/wants).
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Figure 2
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The service quality gap analysis model
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Fuente: Adapted from Kotler , P , Bowen , J and Makens ,J . (1996).Marketing for hospitality and Turismo. Upper Saddle River, Nueva Jersey: Prentice Hall, p. 358.
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Gap 1: Consumer Expectations vs. Management perceptions
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Hospitality managers often do not understand what customers expect from the product/service offered. And that includes understanding what (product) features are needed to deliver a high-quality service.Laguna 1occurs when this breakdown of understanding occurs. For example, a manager might develop a system to ensure that all guests wait no more than 15 minutes to check in. If the hotel guest is upset after waiting 10 minutes, then Gap 1 exists.
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Hospitality companies often initially survey customers to understand their expectations. However, over time, these customer expectations change (change happens all the time). If the product/service does not adapt to these changes, Gap 1 is widened.
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Ongoing research is essential to stay informed about changing customer expectations. Formal research plus informal research (managers walking around and talking to guests, for example) is one source of information.The sales force, especially for complex business groups, is a vital source for changing customer expectations.
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Laguna 2: Management perception versus service quality specifications
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hospitality managerssablewhat customers expect BUT cannot or will not develop products/services and systems to deliver it, solaguna 2occurs. Several reasons for Gap 2 are:
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1. Inadequate commitment to service quality,
2. Lack of perception of the feasibility of meeting customer expectations
3. Inadequate standardization of tasks (within the hotel organization)
4. Lack of setting management goals and inability to gain buy-in from employees.
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The hotel industry has been accused of being short-term oriented. Short-term gains and an unwillingness to invest in human resources and technological tools and equipment almost always cause quality problems in service delivery.
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Laguna 3: Quality of service specifications vs. provision of service
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hospitality managerssablewhat customers expect AND have developed products/services, systems and specifications to deliver them BUT employees are unable or unwilling to deliver the service, sospace 3occurs. Several reasons for Gap 3 are:
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1. Employees are not given the tools and working conditions to do the job.
2. Employees are not properly selected, trained and motivated.
3. The employees are not properly"drove"by managers (Are managers really “leaders?”)
Laguna 4: Provision of Services vs. External Communications
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When hotel management (represented by marketing and sales executives) promises more in its external communications than it can deliver (operations), thenlaguna 4occurs. External communications include, but are not limited to, advertising, public relations, pricing messages, and personal selling.
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Hospitalitymerchantsyou must make sure thatoperationscan deliver what marketing (external communication) promises.General managers must thoroughly understand the marketing/sales process, as well as the operational processes. Why? Because it is obvious that the two areas must work together "24/7" to meet customer expectations.
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Laguna 5: Expected service vs. Perceived Service
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space 5It's where "the rubber meets the road." The size of Gap 5 depends on all the other spaces.
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1. expected serviceit is what the client expects to receive from the hotel organization.
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2. Perceived Serviceit is what the customer believes or perceives that he actually received from the hotel organization (after the service experience).
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3. Gap 5 is the differenceamong the first. Customer satisfaction and quality depend on reducing or eliminating this gap. The hotel management is responsible for managing the absence or presence of this gap.
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Summary of models.
The two previous quality models significantly affect the service industry. These models provide ways for management to think about how they manage service quality. instead of the ineffectivebandages of exhortationsTo make employees "smile," managers rely on these models to guide real structural changes that, if implemented, will be effective and efficient.
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Benefits of Quality of Service
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The hospitality industry has a reputation for being short term oriented. Often in this rapidly evolving industry, a great deal of "fire putting out" takes place. When problems seem to completely engulf the hospitality manager, survival is key. So just deal with the problem and move on to the next is the activity pattern. Long-term planning and serious thinking often seem to get overlooked.
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Ancient wisdom continually reminds man that "if you don't know where you are going, any road will take you" (the Cheshire Cat told Alice inthrough the looking glass by Lewis Carroll writing in 1800). The same can be said for effective planning and implementation by thoughtful hotel leadership. The hospitality industry offers products and services that are often "me too" and similar to undifferentiated commodities like salt or gasoline. Anyone can spend money to build a beautiful hotel, but not everyone can produce superior services. And meeting customer expectations, as we saw earlier, translates into quality of service.
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Hotel organizations that provide quality of service escape the "commoditization" of the hotel industry:They “stand out” from their competitors. This differentiation leads to a competitive advantage, as well as other benefits. Some of the key benefits of providing quality of service are:
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1. retain customers– That stands for “repeat business”.
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2. References – Happy customers are happy to generate positive word of mouth.
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3. Avoid “price” competition– If customers view your organization as equal to others, then your product/service is essentially undifferentiated or commodity-like. As mentioned above, differentiation is a strategy to compete effectively. Pricing strategy is another way to compete, but it is not always possible or desirable. Obtaining quality in the service makes it possible to compete based on a differentiation strategy.
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4. Good employee retention– Employees enjoy working for a “quality” organization.
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5. Costs reduction– When quality is achieved, the costs of fixing problems (after they occur) are reduced. As the focus on quality emphasizes preventive maintenance, these costs are reduced. Of course, many other costs are reduced, such as reduced employee turnover and the cost of motivating uninspiring employees (Kotler, Bowen, & Makens, 1996, pp. 362-364).
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Resume
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Services are unique to the extent that they are intangible and therefore customers must have trust.beforethey buy. in prevailing saleservicesAs in the hospitality industry, quality and the perception of quality are essential. Service quality has many benefits, including the organization's ability to compete with a "differentiation" strategy in a world of "similar" hospitality products/services.
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The good news is that hospitality managers have service quality models that can guide them in planning and implementing service quality systems. And these systems are almost guaranteed to provide a "competitive advantage."
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References
Berry, L.L. y Parasuraman, A. (1991).Marketing Services: Compete Through Quality.New York: The Free Press.
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Godfrey, AB and Kammerer, EG. (1991). “Service quality versus manufacturing quality: Five myths explodedThe service quality manualScheuing, E.E. and Christopher, W.F. (ed.). New York City: American Management Association.
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Grönros, C. (1990).Service Management and Marketing: Managing Moments of Truth in Service Competence. Lexington, MA: Free Press.
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Grönros, C. (1991). "Quality Comesto Service", inThe service quality manualScheuing , E.E and Christopher , W.F. (ed.). New York City: American Management Association.
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Kotler, P, Bowen, J and Makens, J. (1996).Marketing for hospitality and Turismo. Upper Saddle River, Nueva Jersey: Prentice Hall.
Copyright ©2000 by Richard G. McNeill ALL RIGHTS RESERVED
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FAQs
What are the 3 levels of service quality? ›
The study highlights that service quality factors in formal procurement contracts can be related to three interdependent management levels: the rhetorical level, the strategic level, and the operational level, in each of which the factors are described differently.
What is service quality and product quality? ›Quality of the product is determined by the customer while the quality of a service is determined by the provider. A product can be stored for future use or sale and it can be returned to the buyer if the need arises. However, a service can be consumed the moment it is offered and cannot be stored for future use.
What are the 5 service quality? ›The five service quality dimensions are tangibility, reliability, responsiveness, assurance, and empathy.
What are the six main steps of service quality? ›- Connect with your customer. This is critical. ...
- Discover what they want. ...
- Know what you can do. ...
- Do it. ...
- Follow-up. ...
- Thank them.
The three Cs of customer satisfaction: Consistency, consistency, consistency. It may not seem sexy, but consistency is the secret ingredient to making customers happy. However, it's difficult to get right and requires top-leadership attention.
What are the 7 Elements of service? ›Seven Ps of Service Marketing: product (service), price, place (distribution), promotion, people, physical evidence, and process. Marketers work on creating a proper blending of these seven Ps to satisfy the needs of consumers in the service sector.
What are the 3 basic types of service? ›Services are diversified in three groups; Business services, social services and personal services.
What are the 4 types of quality? ›What are the four types of Quality Control? The four types of quality control are process control, control charts, acceptance sampling, and product quality control.
What are the 3 levels of product and service? ›Philip Kotler, also known as the father of modern marketing, states that product planners should think about products and services on three levels. Each level adds more customer value: core product, actual product and augmented product.
What are the 5 characteristics of a quality product? ›- Reliability.
- Safety.
- Quality of design.
- Proper Storage.
- Quality Conformance.
- Efficient marketing.
- Great positioning.
What are examples of products and services? ›
A product is a tangible object that has been put out for consumption or possession, such as a drink bottle or a pen, whereas a service is an intangible item where the customer is being sold something that can't be touched, such as accounting or coaching services.
What are 5 examples of goods and services? ›Examples of goods are automobiles, appliances, and clothing. Examples of services are legal advice, house cleaning, and consulting services. The output of a business can lie somewhere between these two concepts. For example, a landscaping company could sell a homeowner a tree (goods) and also mow the lawn (a service).
How do you describe your products and services? ›A clear and compelling description provides potential customers with details about features, problems that can be solved, and answers questions. It highlights the value, describes benefits, and showcases the unique selling points that make the product or service stand apart from competitors.
What are the 4 pillars of service? ›Gartner, the world's leading research and advisory company, breaks customer service down into four pillars: Getting Connected, Process Orchestration, Knowledge & Insight, and Resource Management.
What are 10 determinants of service quality? ›(1985) provided a list of ten determinants of service quality as a result of their focus group studies with service providers and customers: access, communication, competence, courtesy, credibility, reliability, responsiveness, security, understanding and tangibles.
What are the 10 things you can do to improve service quality? ›- Understand customer needs. ...
- Seek and promote customer feedback. ...
- Set and communicate clear service standards. ...
- Delight your customers by exceeding their expectations. ...
- Capture and share examples of great service. ...
- Create easy and effortless customer service. ...
- Personalise your customer service.
The eight elements of service marketing are place, people, knowledge, value, relationships, problem-solving, specialization and product.
What are the 5 A's in customer service? ›The 5 A's: Apologize, Acknowledge, Appreciate, Act, Audit. Apologize to the customer: If the customer is calling and they are upset, the first thing you should do is apologize.
How do you ensure good service quality? ›- Know your product. ...
- Maintain a positive attitude. ...
- Creatively problem-solve. ...
- Respond quickly. ...
- Personalize your service. ...
- Help customers help themselves. ...
- Focus support on the customer. ...
- Actively listen.
A - Acknowledge that their concerns are valid. A - Align with the customer, agreeing that you would feel the same were you in their shoes. A - Assure the customer that you will be able to solve their problem to their satisfaction.
What are the three 3 most important components of providing high quality customer service? ›
Essentially, the 3 important qualities of customer service center around three “p”s: professionalism, patience, and a “people-first” attitude. Although customer service varies from customer to customer, as long as you're following these guidelines, you're on the right track.
What are the 7 P's product? ›These seven are: product, price, promotion, place, packaging, positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace.
What are the 8 characteristics of a service good? ›Features of Services – Top 8 Features: Intangibility, Heterogeneity, Simultaneity, Quality Measurement, Nature of Demand and a Few More. Services have some salient features which necessitate a new vision, a distinct approach and a world-class professional excellence to market effectively and profitably.
What are the 3 P of service marketing? ›Instead, we're going to talk about the three often forgotten P's of marketing which apply specifically to service businesses: people, process and physical environment.
What are the two types of service qualities? ›Technical quality: What the customer receives as a result of interactions with the service firm (e.g. a meal in a restaurant, a bed in a hotel) Functional quality: How the customer receives the service; the expressive nature of the service delivery (e.g. courtesy, attentiveness, promptness)
What is the best definition of service? ›noun. an act of helpful activity; help; aid. to do someone a service. the supplying or supplier of utilities or commodities, as water, electricity, or gas, required or demanded by the public.
What are the 7 pillars of quality? ›1. The quality of care is a concept that has many components, which may be grouped under the following seven headings: efficacy; effectiveness; effi ciency; optimality; acceptability; legiti macy; and equity.
What are the 7 key principles of quality? ›- Engagement of people.
- Customer focus.
- Leadership.
- Process approach.
- Improvement.
- Evidence-based decision making.
- Relationship management.
7 key quality management principles—customer focus, leadership, engagement of people, process approach, improvement, evidence-based decision making and relationship management.
What are the 5 phases of product and service development? ›Five phases guide the new product development process for small businesses: idea generation, screening, concept development, product development and, finally, commercialization.
What are the 4 general types of product? ›
There are four types of products and each is classified based on consumer habits, price, and product characteristics: convenience goods, shopping goods, specialty products, and unsought goods.
What are the 3 types of products? ›Types of Products – 3 Main Types: Consumer Products, Industrial Products and Services. There are a number of useful ways of classifying products.
What are the 4 steps of quality control? ›When broken down, quality control management can be segmented into four key components to be effective: quality planning, quality control, quality assurance, and quality improvement.
What makes a good quality product? ›Conclusion. Good products must have a solid value proposition and solve a real problem, be understandable by users, perform their task as easily and efficiently as possible, and become better and harder to part with the more they are used.
What is the example of product quality? ›Examples include free drinks on a plane flight, permanent press as well as cotton cycles on a washing machine, and automatic tuners on a color television set. In many cases, the line separating primary product characteristics (performance) from secondary characteristics (features) is difficult to draw.
What are 5 examples of products? ›- Magazines.
- Toothpaste.
- Food.
- Candy.
- Laundry detergent.
- Shampoo.
- doctor's visits.
- haircuts.
- pedicures.
- legal advice.
- surgery.
- house cleaning.
- babysitting.
- therapy sessions.
Basic rights are fulfilled (and human security provided) through the provision of basic goods, those goods and services that meet objective human needs. Basic goods include nutritious food, clean water, sanitation, health services, education services, housing, electricity, and human security services.
What are the 4 major differences between goods and services? ›| Basis of Comparison | Goods | Services |
|---|---|---|
| Transfer of Ownership | Possible | Not Possible |
| Separable | Goods can be separated from the seller | Services cannot be separated from the service provider |
| Storage | Goods can be stored | Services cannot be stored |
| Perishable | Not all goods are perishable | Services are perishable |
- SERVQUAL.
- Post-service ratings.
- Follow-up surveys.
- In-app surveys.
- Mystery shopping.
- Documentation analysis.
- Customer effort score (CES)
- First contact resolution ratio.
How do you measure quality of a product? ›
- Defect Rate. ...
- Test Automation. ...
- Mean Time to Green. ...
- Speed of Development. ...
- Defect Rate in relation to Automated Tests. ...
- Quality of Acceptance Criteria.
- It has great user onboarding.
- It looks good.
- It has a good price for value.
- The time-to-master is short.
- It is marketed efficiently with clear value proposition.
- It solves a problem.
- It has great positioning / product-market fit.
- The time-to-value is short.
- Fitness for use.
- Features that meet consumer needs and give customer satisfaction.
- Freedom from deficiencies or defects.
- Conformance to standards.
- Value or worthiness for money.
- Reliable and dependable.
- Quality of design.
- Quality conformance to needs and regulations.
Technical quality: What the customer receives as a result of interactions with the service firm (e.g. a meal in a restaurant, a bed in a hotel) Functional quality: How the customer receives the service; the expressive nature of the service delivery (e.g. courtesy, attentiveness, promptness)
What are the 7 steps of quality? ›- Step 1: People.
- Step 2: Problem.
- Step 3: Aim.
- Step 4: Measures.
- Step 5: Change ideas.
- Step 6: Tests of change.
- Step 7: Spread. Now you have cracked the formula think about who else could benefit from your wisdom. Who might be facing a similar problem? Share your learning and knowledge.
It has four main components: quality planning, quality assurance, quality control and quality improvement.
What are the 5 steps of quality? ›- Assessment (planning & context) Provide clarity of the current business while defining the context of the business to enable top management to plan. ...
- Design (framework) ...
- Implement (do & establish) ...
- Certification (recognition) ...
- Improve (as measured, as needed)
Product quality refers to how well a product satisfies customer needs, serves its purpose and meets industry standards. When evaluating product quality, businesses consider several key factors, including whether a product solves a problem, works efficiently or suits customers' purposes.
What are the types of product quality? ›- Performance,
- Features,
- Reliability,
- Conformance,
- Durability,
- Serviceability,
- Aesthetics,
- Perceived Quality.
Eight dimensions of quality include performance, features, reliability,conformance, durability, serviceabilty, aesthetics, and perceived quality.