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CHAPTER 2 LITERATURE REVIEW

2.2 THEORETICAL FOUNDATION AND RESEARCH MODEL

2.2.2 Service quality

Service will be performed differently in different types. For example, services that are provided in tourism are different from the one provided for the library.

Inseparability

Services production and consumption occur simultaneously and the interaction between the provider and recipient of the services may affect the service quality.

2.2.2 Service quality 2.2.2.1 Definition

Currently, there are many different definitions of service quality. However, in general, the definition of service quality is what the customers perceive. Each customer will have different perception as well as needs. Thus, their perception of the service quality is also different.

According to Joseph Juran & Frank Gryna, “quality is the conformity to demands”.

According to Armand Feigenbaum, “quality is the customer decision, which replies on practical experience of the product or service. It is measured on the ground of customer requirements, which may be specified or not, be conscious or be simply felt, be entirely subjective or be professional in nature. In addition, it always represents the moving target in a competitive market”.

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According American Society for Quality, “Quality shows the superiority of goods and services, especially to the extent of satisfying all the needs and customer satisfaction”.

According to Peter Senge et al., “quality is a transition in a manner in which wethink and work together, we assess and give in the way we measure success. All of us work together to design and operate value-added system together with quality testing, customer services, process improvement and good relationships with suppliers and good relationship with community that we are serving and within the community in which we operate at an optimum level for a common purpose”.

2.2.2.2 Types of service quality gap

On the ground of interview results of the management group and customer group on the service quality, A.Parasunaman, Valarie A. Zeithaml & Leonard L. Berry (1985) presented the general service quality model with five gaps to measure the service quality.

GAP 1: It is the gap between the customer expectation and the perception of the manager. The research results show that, managers do not always understand the customer perception of service quality, necessary factors to satisfy the demands of customers as well as the implementation level to get the qualified service. The bad understanding of these could affect the judgment about the quality of customers.

GAP 2: The gap between the perception of managers and what is interpreted into the criteria for service quality. This gap exists because managers can understand the customers’ expectation. However, sometimes, managers cannot get that information to make appropriate service criteria. For example, managers want food to be served at the table within 10 minutes after the customers order food (as fast as possible). Nevertheless, they also know that customers want their food in just 5 minutes. This means that managers have realized what customers want, but sometimes cannot meet.

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GAP 3: It is the gap between the criteria for service quality and the provision of service. When managers realize the customers’ expectation, they design the service standards to meet customers’ requirements (regulation of the time for customer service as fast as expected by the customers). However, in the implementation process, the employees do not comply with the proposed standards. Poor skills or employees’

unwillingness to provide service dedicatedly create this gap.

GAP 4: It is the gap between providing serviceand information to the outside (to the customers). Advertising on public media and other relationships of enterprise may affect customers’ expectations. If expectationplays an important role in the assessment on the quality of customer service, then the enterprises should make sure notto make big promise onadvertisement because it generates a high expectation from customers. Information to the outside can not only affect the expectations of customers, but also get the judgmentsof customersabout service received.

GAP 5: It is the gap between the expected service (expectation) and perceived service (perception). It seems that the low and high rating for the service quality depends on the judgment of the customersabout the actual service performance and customers’ expectations about services. The service quality that a customerperceivesis a function of the width and the magnitude of the gap between expected service and perceived service.

2.2.2.3 Service quality model

The results from interviews with group of managers and customer groups are considered as the foundation for a brief model regarding nature and factors that influence theservice quality judged by the customers. The foundation of this model is a sequence of gaps that are discussed above and shown in Figure 1.1. Service qualityjudged by the customers depends on the size and direction of GAP 5. Service quality model can be described as follows:

GAP 5 = f (GAP 1, GAP 2, GAP 3, GAP 4)

Gap model in service quality concept is one of the models that is well received for its

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contribution and has best value in the literature on services (Brown and Bond, 1995, adapted from Arsah Shahin).

2.2.2.4 Evaluation of the service quality

According to Bui Nguyen Hung and Vo Khanh Toan (2005), currently, there are many tools to measure service quality; nevertheless, there are two common models, which are used to evaluate the quality of services. Firstly,the model ofGronroos (1984b) suggested that service quality is evaluated on two aspects: (1) the technical quality and (2) functional quality. Secondly,the model Parasuraman et al.

(1985) which service quality is evaluated on the ground of fivegaps. However, perhaps, the model of Parasuraman et al. is more commonly used thanks to the materiality, detail and evaluation tools that aretested and updated by authors and colleagues.

According to Danuta A. Nitecki (1997), among the most popular tools for quality assessment of service quality is the service quality scale (SERVQUAL) of Parasuraman et al. He introduced the SERVQUAL 5 gap scale and measurement measured service quality by the calculation of the heterogeneity between expectation and perception of the customers. A marketing research group, which includes Berry, Parasuraman and Zeithaml, designed this tool. Through many qualitative researches, they developed a measurement set that includes five factors. Customers evaluate them as the most significantfactors for the quality of services, no matter what service sectors. They are:

• Tangibles: It is the appearance of the facilities, equipment, human resources, instruments, and communication materials.

• Reliability: It is the ability to perform services accurately and reliably.

• Responsiveness: It is the willingness to help customers and provide services quickly.

• Assurance: It is the knowledge and politeness of staffs and the ability to create confidence and trust of staffs to customers.

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• Empathy:It is the general and individual concern about each customer.

SERQUAL measurement scale helps service providers clearly understand the customers’ expectations and customers’ reviews for specific types of services, as well as the improvement in service quality over time. Measurement scale also helps to orient specific service factorsthat should be improved and opportunities for training and retraining staffs. Being analyzed at the level of detail, the data provided through the application of the measurement scale has very high practical significance for service managers in measuring customer satisfaction.

Being developed in 1988, the SERQUAL measurement scale has consistently been used in research on many service sectors such as health care, banking, equipment repair and other professional sectors.

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