SERVQUAL
(Zeithaml Parasuraman Berry)

Comparing service quality performance with customer service quality needs. Explanation of SERVQUAL Methodology of Zeithaml, Parasuraman, and Berry. ('88)

What is SERVQUAL? Description

The SERVQUAL method from Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry is a technique that can be used for performing a gap analysis of an organization's service quality performance against customer service quality needs.

SERVQUAL is an empirically derived method that may be used by a services organization to improve service quality. The method involves the development of an understanding of the perceived service needs of target customers. These measured perceptions of service quality for the organization in question, are then compared against an organization that is "excellent". The resulting gap analysis may then be used as a driver for service quality improvement.

SERVQUAL takes into account the perceptions of customers of the relative importance of service attributes. This allows an organization to prioritize. And to use its resources to improve the most critical service attributes.

The data are collected via surveys of a sample of customers. In these surveys, these customers respond to a series of questions based around a number of key service dimensions.

The methodology was originally based around 5 key dimensions:

Tangibles. Appearance of physical facilities, equipment, personnel, and communication materials.
Reliability. Ability to perform the promised service dependably and accurately.
Responsiveness. Willingness to help customers and provide prompt service.
Assurance. Knowledge and courtesy of employees and their ability to convey trust and confidence.
Empathy. The firm provides care and individualized attention to its customers.

This has been adapted later by some to cover:

Tangibles. Appearance of physical facilities, equipment, personnel, and communication materials.
Reliability. Ability to perform the promised service dependably and accurately.
Responsiveness. Willingness to help customers and provide prompt service.
Competence. Possession of required skill and knowledge to perform service.
Courtesy. Politeness, respect, consideration and friendliness of contact personnel.
Credibility. Trustworthiness, believability, honesty of the service provider.
Feel secure. Freedom from danger, risk, or doubt.
Access. Approachable and easy of contact.
Communication. Listens to its customers and acknowledges their comments. Keeps customers informed. In a language which they can understand.
Understanding the customer. Making the effort to know customers and their needs.

Origin of SERVQUAL. History

The authors conducted a qualitative study, from which they concluded that customers ranked the importance of two SERVQUAL dimensions consistently. Regardless of service industry. Reliability is the most important contributing factor to service quality and tangibles is the least important.

Usage of SERVQUAL. Applications

SERVQUAL is widely used within service industries to understand the perceptions of target customers regarding their service needs. And to provide a measurement of the service quality of the organization.
SERVQUAL may also be applied internally to understand employees' perceptions of service quality. With the objective of achieving service improvement.

Steps in SERVQUAL. Process

The method essentially involves conducting a sample survey of customers so that their perceived service needs are understood. And for measuring their perceptions of service quality for the organization in question.

Customers are asked to answer numerous questions within each dimension that determines:

The relative importance of each attribute.
A measurement of performance expectations that would relate to an "excellent" company.
A measurement of performance for the company in question.

This provides an assessment of the gap between desired and actual performance, together with a ranking of the importance of service criteria. This allows an organization to focus its resources. To maximize service quality whilst costs are controlled.

Strengths of SERVQUAL. Benefits

Most users would agree that a comprehensive and thorough examination of service needs and service quality provides an invaluable approach to improving service quality. SERVQUAL provides detailed information about:

Customer perceptions of service (a benchmark established by your own customers)
Performance levels as perceived by customers
Customer comments and suggestions
Impressions from employees with respect to customers expectations and satisfaction

Limitations of SERVQUAL. Disadvantages

There have been a number of studies that doubt the validity of the 5 dimensions. And of the uniform applicability of the method for all service sectors. According to an analysis by Thomas P. Van Dyke, Victor R. Prybutok, and Leon A. Kappelman, it appears that the use of difference scores in calculating SERVQUAL contributes to problems with the reliability, discriminant validity, convergent validity, and predictive validity of the measurement. These findings suggest that caution should be exercised in the use of SERVQUAL scores and that further work is needed in the development of measures for assessing the quality of information services.

Assumptions of SERVQUAL. Conditions

The results of market surveys are accurate. The validity of the model is based around the results of empirical studies. A number of academics have since performed further empirical studies that appear to contradict some of the original findings.
Customer needs can be documented and captured, and they remain stable during the whole process.

Book: Zeithaml Parasuraman Berry - Delivering Quality Service: Balancing Customer Perceptions and Expectations. -

Journal: Parasuraman, Berry, and Zeithaml (1988) - SERVQUAL: A multiple-item scale for measuring customer perceptions of service quality - Journal of retailing 64 (1) Spring. 12-40 -

Journal: Parasuraman, Berry, and Zeithaml (1991) - Refinement and reassessment of the SERVQUAL scale - Journal of retailing 67 (4) Winter. 420-450 -

Journal: Parasuraman, Zeithaml, and Berry (1985) - A conceptual model of service quality and its implications for future research - Journal of marketing 49 (4) Fall. 41-50 -

Journal: Parasuraman, Zeithaml, and Berry (1994) - Alternative scales for measuring service quality: A comparative assessment based on psychometric and diagnostic criteria - Journal of marketing 70 (3) Fall. 201-230 -

SERVQUAL Forum (31)

Explanation of the SERVQUAL Gaps
"Parasuraman et al., 1985, (p.41-50) developed a conceptual model of service quality where they identified five gaps that could impact the consumer’s evaluation of service quality in four different industries (retail banking, credit card, securities brokerage and product repair and maintenance). These gaps were:
Gap 1: Consumer expectation - management perception gap
Service firms may not always understand what features a service must have in order to meet consumer needs and what levels of performance on those features are needed to bring deliver high quality service. This results to affecting the way consumers evaluate service quality.
Gap 2: Management perception - service quality specification gap
This gap arises when the company identifies want the consumers want but the means to deliver to expectation does not exist. Some factors that affect this gap could be resource constraints, market conditions and management indifference. These could affect service quality perception of the consumer.
Gap 3: Service quality specifications – service delivery gap
Companies could have guidelines for performing service well and treating consumers correctly but these do not mean high service quality performance is assured. Employees play an important role in assuring good service quality perception and their performance cannot be standardised. This affects the delivery of service which has an impact on the way consumers perceive service quality.
Gap 4: Service delivery – external communications gap
External communications can affect not only consumer expectations of service but also consumer perceptions of the delivered service. Companies can neglect to inform consumers of special efforts to assure quality that are not visible to them and this could influence service quality perceptions by consumers.
Gap 5: Expected Service – perceived service gap
From their study, it showed that the key to ensuring good service quality is meeting or exceeding what consumers expect from the service and that judgement of high and low service quality depend on how consumers perceive the actual performance in the context of what they expected."

How to analyze a Supply Chain Using SERVQUAL Model?
"Can I use the SERVQUAL to analyze the interfaces in a supply chain? For example the interface between supplier-farmer or between retailer-customer. I am researching this for the organic supply chain in Badulla district in Sri Lanka.
How should I go about this? Any tips are appreciated, thanks..."

Impact of Service Delivery on Strategy
"I need your guide to justify why service delivery is important for strategy:
- Why should we put service delivery as a consideration of the company's long-term plan?
- Wat are the necessary initiatives to be available in the strategic plan to ensure that service delivery is met at all standards?"

Customer Service is an Opportunity to Differentiate your Business
"I am constantly amazed at the low standards of customer service here in Queensland. There are obviously a lot of people who are working in customer service positions who do not enjoy interacting with people.
In today's business world, great customer service will make you stand out. Many larger businesses advertise how customer service-orientated they are, but the difference between their marketing hype and reality is quite often very significant.
With the internet threatening traditional models, sincere customer service is now even more important for traditional businesses that want to stay around for the long term."

SERVQUAL in Public Services
"Has anybody done a study on application of SERVQUAL in administrative services, especially in the government sector? If yes, please let me know. It would be a very good reference for my research."

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