17 May 2011
School
Department
Course
Professor
Characteristics of Services Compared to Goods:
•Intangibility – Can’t touch
oServices can’t be inventoried
oServices can’t be easily patented
oServices can’t be readily displayed or communicated
oPricing is difficult
•Heterogeneity – Diverse (everything is different)
oService delivery and customer satisfaction depends on the employee and
customer actions
oService quality depends on many uncontrollable factors
oThere is no sure knowledge that the service delivered matched what was
planned and promoted
•Simultaneous Production and Consumption
oCustomers participate in and affect the transaction
oCustomers affect each other
oEmployees affect the service outcome
oDecentralization may be essential
oMass production is difficult
•Perishable
oIt is difficult to synchronize supply and demand with service
oServices cannot be returned or resold
Service Quality:
•More difficult for consumers to evaluate
•A comparison between expectations and performance
•An evaluation of outcomes & processes
The Nordic Model:
Technical Quality What?
Functional Quality How?Perceived ServicePerceived Service Quality
Expected Service
The SERVQUAL Model:
Reliability
Responsiveness
Empathy
Assurances
Tangible
Perceived Service
Perceived Service Quality
Expected Service
The three-component Model:Service Quality
Service ProductService DeliveryService Environment
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