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CHAPTER 2 LITERATURE REVIEW

2.1 SERVICE QUALITY

The service quality is an issue, which is being concerned by managers in the context of recent business. A product of good quality is not really selected by customers if accompanying services are not rated highly.

Recently, there are some definitions of the service quality, but generally, the service quality is what the customer feels about. Each customer has his or her own perception and individual demand, so his or her feeling about the service quality is also different.

According to Juran (1988) “the quality is suitable with the demand”.

According to Feigenbaum (1991), “the quality is customer’s choice which is based on his or her experience of the service or the product, is measured based on customer’s demand.

This demandcould be showed or not showed, could be a perception or a feeling, personal or professional.Moreover, they are always representative of a moving target in a competitive market.”

Russell (1999) defined that “the quality reflects the superiority of goods and service, especially, the level of quality can satisfy all the needs and customers.”

Lehtinen & Lehtinen (1982) suggested that the service quality must be assessed on two aspects, (1) the process of service delivery and (2) the results of the service. Grönroos (1984) also suggested two dimensions of the service quality, such as (1) the technical quality and (2) the functional quality. Technical quality refers to the outcome and the functional quality refers to the manner in which the service is delivered or how it is delivered.

However, perhaps Parasuraman & CTG (1985, 1988) were pioneers in studying the service quality in the marketing in a specific and detailed way. According to Parasuraman &

CTG, the service quality is a comprehensive evaluation of attitudes towards the excellence of the service.

2.1.2 CHARACTERISTICS OF THE SERVICE

Service has some characteristics that help to distinguish it from other tangible goods.

People recognize somecharacteristics of service as follows:

Intangibility: means the nature that cannot be touched or captured and there is no specific shape as a tangible product.

Heterogeneity: It refers to the difference in the level of service performance. It means 6

that servicecan be ranked from very poor level to excellent level. The essential issues and service quality may vary depending on the waiter, customer perception and serving time. The variability in service is also likely to occur and occur more frequently than the nonconformity of the tangible products because service has high level of human interaction.

Inseparability: This feature is about the difficulty in distinguishing between how to create the service and how to use it. A service cannot be separated into creating period and using period. They are both happened at the same time.

2.1.3 THE GAP IN THE PERCEPTION ABOUT THE SERVICE QUALITY

Perceived quality of customers has influence on the comparison between customer expectation of the service and their experience of the service they have received before.

However,perhaps Parasuraman & ctg (1985, 1988) are persons who introduced thefive-gapmodelof the service quality, which are approved and applied widely.

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Figure 2.1: Model of service quality

(Source: Parasuraman & ctg (1985:44, cited as Nguyen Dinh Thi & ctg 2003)

Gap 1 appears when there is a difference in the customer expectation of service quality and the service administrator perception about customer expectation. The service company does not understand all characteristics of its service quality as well as the transferring manner to customers to make them please. It is the basic of the difference.

Gap 2 shows up when the service company gets trouble to transfer its perception about Expectedservice

Perceived service

Transferredservice

Transfer perception of company to be criteria for quality

Company’s perception about customer

expectation

Information to customer

MARKETER

GAP

Gap 5

Gap 3

Gap 2

Gap 4

CUSTOMER

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customer expectation into characteristics of service quality. In some cases, the company can transfer customer expectation. However, the company does not always transfer these expectations into specific characteristics of servicein line with the expectation of customers.

The main reason comes from the professional ability of staffs as well as too much change of the service demand. Sometimes, service demand is too high for the company to afford it.

Gap 3 occurs when service staff cannot transfer the service to customers as defined requirements. In the field of service, staffs can directly contact customers and have the very important role in the process of creating the quality. However, not all staffs can complete the tasks according to these requirements at all times.

For Gap 4, advertisements, media and information also affect the customer expectation of the service quality. All offers from promotion programs or advertisements could increase the expectation of customers, but could decrease the quality perceived by customers if the service is not as exact as what they are offered.

Gap 5 occurs when there is a difference between the expected quality and the perceived quality of customers. The service quality depends on the gap 5.Once customers see no difference between the expected quality and the perceived quality, it is a good service.

Parasuraman & ctg (1985) suggested that the service quality is a function of the gap 5.

This gap isdependent on previous gaps (gap 1, 2, 3 and 4). Thus, to shorten the gap 5 or to increase the service quality, service administrations should do the best to make other gaps be shortened. According to researchers, the service quality model could be performed as below:

CLDV= F{KC_5= f (KC_1, KC_2, KC_3, KC_4)

In which, CLDV stands for service quality and KC_12345 is quality gaps 1,2,3,4 and5, respectively.

2.1.4 MEASUREMENT OF THE SERVICE QUALITY

Nowadays, there are many difference measurementscales to measure and value the service quality. These are appropriate for each serviceand all of themshare a common thing that is the expression of the satisfaction level of customers.

However,Parasuraman& ctg (1985) possibly defined factors of the service quality to design a measurement scale. These researchers showed that, in any kind of service, there are 10 factors expressing the service quality through the feeling of customers:

1. Reliability is an ability to implement a suitable and on-time service for the first time.

2. Responsiveness is the desire and enthusiasm of staffs to provide the service for 9

customers.

3. Competence is the qualification to do the service. It is necessary for staff when they directly contact customers, directly implement the service and update the relevant information.

4. Access is to facilitate every conditionfor customers to approach the service such as making short of waiting time, providing convenient serving place and opening time.

5. Courtesy is friendly, respectful and warm attitude towards customers.

6. Communication refers to the communication, discussion and talking to customers in a simple way and listening to them to explain the service, the fee and the question.

7. Credibility is an ability to get the trust from customers. This ability is described through name and reputation of the company and personality of the service personnel who communicate directly with customers.

8. Security is an ability to ensure the safety of customers, which is expressed through the physical, financial safety and information security.

9. Understanding/knowing the customer expresses the ability to understand the demand of customers through finding out their requirements, caring and identifying each of individual customers.

10. Tangible isexpressed through looks, outfit of staffs and serving equipment.

This above 10 components model has an advantage that is to cover all features of a service. However, its disadvantage is thecomplicatednessin measuring. Moreover,this model is just theoretical; it can contain some components that do not get differential value. Thus, researchers have tested this model for many times and have concluded that it contains fivebasic components as below:

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