Top Quality

Perception of service quality: The complaining customer

Quality issues:

Carr et al. (1995) said that, quality is an objective that is important and widely recognised through the world, but that low quality service providers are unlikely to survive due to increasing customer demand and the removal of trade barriers. A second perspective is Oakland (2000, cited in Douglas and Connor, 2003) described quality as a way of managing business processes to satisfy customers both internally and externally at every stage.  Reference to the case study, presto cleaner did not identify customer needs in order to match their expectations to the organisation objectives. This can be assumed to be the beginning of the problems, for example, a new computer system was installed to generally increase efficiency. However, customers' have to fill out a preference card although this is to happen once. Then, customers' will have to pay for special bags anytime they visit the laundry which cost $3. In addition, they still have to wait in-line and a counterperson is needed just like the previous system. This shows lack of analysis and variation on the benefit of the new system before it was installed. This raises the question of quality planning by quality guru Juran who believes that quality does not happen by accident, it must be planned (Carr et al., 1995). Juran sees quality planning as part of a trilogy which are: quality control, quality planning and quality improvement.

 

Furthermore, the theorem identifies elements such as determining the needs of customers, developing a process which is able to produce the product or services and optimising the process as vital to organisations (Peterson, 1999). Presto cleaner could have avoided the quality problems only, if the new system was verified to the needs of the customers. Although, the complaining customer acknowledged the friendliness of the counter staff, but his expectations were not met. Carr et al. (1995) said that Juran's quality trilogy concept is vital to implement an organisation wide strategic planning. Palmer (1998, cited in Douglas and Connor, 2003) said that customers are more than ever eager to complain to transfer their allegiances to service providers.  The customer leaves his shirt to be cleaned and collected but this did not happen on the agreed date as it was given to another customer. Again, this raises concerns of service delivery in relation to quality chain, quality gap model and SERVQUAL.

Below is a of the gap model:

Figure: 1 GAP MODEL

 

Source: Parasuraman et al. (1994)

It is clear from the diagram above that perceptions form the basis for this conceptual model created by Parasuraman et al. (1985). Samson and Parker (1994) explained that, the gaps between service providers and customers is in fact based on expectations and perceived results of the model. Reference to the case study, the company could have avoided quality problems such as dislocating a customer's laundry. The gap model would enable the company have appropriate service standards to meet customers expectations'. Samson and Parker (1994) added that, the service quality model measures five gaps in perceptions, including gaps within the service provider and customers' (see figure 1).

There is issue of customer complaint handling, which according to the case study it practically does not exist. Mr Shelton's items where discovered missing from August 10th which was known to the counterperson but unknown to customer complaint officer (Mr Hoffner). In this case, the service gap model can be applied in terms of communication with customers and their expected needs. Also SERVQUAL can be seen as vital at this stage because the customer is measuring these issues as a perception of service quality (Brogowicz et al., 1990). Presto cleaner should understand that, each customer contact is known as a moment of truth. This is an opportunity for a company to satisfy or dissatisfy the customer. Customer satisfaction with a service can be defined by comparing perceptions of service received with expectations of service desired. In relation to the Mr Shelton, his expectations were not met and by this the service quality is unacceptable.

Equally important, the Deming cycle can be applicable in terms of the company quality programmes and their measures. Deming's subsequent message is beyond statistical methods and he introduced the Japanese to a systematic problem solving known as PDCA cycle. Although, his work has previously been management-based with his 14 points management to enable individuals understand and implement total transformation on Western management (Carr et al., 1995). However, the cycle can ensure that Presto cleaner plan, do, check and act (PDCA) their quality approaches. The normal tendency imposed by the cycle without discipline is to skimp on the planning and checking phases and concentrate on the doing element (Carr et al., 1995).  

What's more, Dr Armand Feigenbaum concept of total quality control can be raised in the quality problem of the company (see table. pg3). Unlike Deming's approaches, Feigenbaum (1990, cited in Carr et al., 1995) concepts extend the administrative function to include the measurement and control of quality at every stage and that quality is "what the customer says it is".  Deming (1986, cited in Enriquez and Bosch, 2005) believe that, failures in service resulting to complaints are inevitable due to the number of variables and perceptions involved in service transactions. Reference to the case study, the counterperson was unable to deal with matters directly with the customer (basically no idea about complaints procedures). Dr Ishikawa, a Japanese quality guru diagram known as the cause-and-effect diagram or fishbone can be raised in this scenario (to identify causes of variation) (Carr et al., 1995). The theorem sees this diagram as a device to assist groups or quality circles in quality improvement. Furthermore, Ishikawa's seven tools of quality are used by the circle and either any solution to problems identified is presented to management for authorisation before implementation or the team has authority to implement directly (Carr et al., 1995).

Clearly there has been impassivity and disinterestedness in the customer view on the service problems which at a point resulted to the customer decision to take his business to the competitor "Kwik N Klean". According to Parasuraman et al. (1994, cited in Chiao and Bei 2006) conceptual model suggested that, customer satisfaction is influenced at the same instant by service quality, product quality and price. Chiao and Bei (2006) describe customer satisfaction as the attitude of a person (customer) towards a subject affecting future intensions. Lee (1998, cited in Chaio and Bei 2006) undertook a study on gas stations to identify the relationships between customer satisfaction and customer loyalty. The results showed that customer' perceptions of the products and services had a positive effect on customer satisfaction as well as repeat purchase behaviour. Below is the satisfaction model:

Figure 1: Customer satisfaction and loyalty

 

Perceived product quality

Perceived service   quality

Perceived price fairness

Customer satisfaction

Customer loyalty

 

Source: Parasuraman, Zeithaml and Berry (1994)

This diagram illustrates that, perceived service quality, product quality and price fairness has a major impact on customer satisfaction and loyalty. The case study proved that, Mr Shelton was a loyal customer with Preston Cleaner with business worth $1,000. In this case, expressing dissatisfaction model can be applied. Stauss et al. (2006) said that, dissatisfaction is the result of a negative assessment of a customer experience. Furthermore, it can be assumed that dissatisfaction leads to a reduction of customer loyalty in terms of decreased willingness to engage in repeat purchases and word-of-mouth recommendations. Reference to the case study, the customer expresses his anger by writing a letter with a tone of frustration and dissatisfaction.

Berkowitz (1989, cited in Stauss et al., 2006) defined frustration as an act triggered by incidents. Mr Shelton was frustrated by the uncertainty of the company's policy, lack of trust from the customer complaint officer (Mr Hoffner: told the customer to provide receipts of the missing clothes). Consequently, the customer is aiming to seize business with the company but also express is dissatisfaction to others in his workplace. Needham (2008) describes word of mouth (WOM) as the communication from one person to another; this could be positive or negative. A study by CMO council reveals that, 38% of the senior major marketers say that their companies have no programs in place to track positive WOM, and only 29% are highly rated in their ability to handle customer complaints. Furthermore, only 12% are using WOM platform to drive on-line marketing advocacy, 74% receive customer feedback through the email but only 23% measure the reasons for the messages. MC (2009)   

 Stauss et al. (2005) said that, loyalty programs are gaining considerable attention in academic in the context of customer retention. What's more, the managerial objectives of this program are to reward loyal customers with special services or rebate, and this would enable a long-term economic benefits and relationship between the business and customers. In this case, it can be assumed that, the customer expects ultimate responsiveness, the best possible service and commitment from the company due to their loyalty. However, O'Neill and Palmer (2003) suggested that, there are theoretical reasons for changes in perception of service delivery with passage over time. A scenario is the increasingly preferred service through what is known as the rose-tinted spectacles. This is consistent based on Festinger (1957, cited in O'Neill and Palmer, 2003) literature on cognitive dissonance. The theories suggest that, customers are likely to rationalise away poor service delivery overtime and gradually improve their rating. An alternative view by (Boulding et al., 1993, cited in O'Neill and Palmer, 2003) is that individuals tend to forget experiences with passage of time and their perceptions will be influenced by related stimuli.

Gupta and Chen (1995) described service quality as one of the major issues facing managers today. Services nowadays accounts for majority of gross national products (GNP) and total employment in developed countries, for example in Switzerland 71% were employed in service sectors in 2002 (Bundesamt Fur Statistic, 2003 cited in Bamert and Wehrli, 2005).  However, not a single US company met the minimum quality standard established during the first two years which the renowned Malcolm Baldrige National Quality Awards were given to US companies. However, recently Federal Express, a service company, was given the Malcolm Baldrige National Quality Award (Gupta and Chen, 1995).

Gupta and Chen (1995) identified services as three dimensions: pure service (customers must be present for service production i.e restaurant), mixed service (this is a face-to-face as well as back office contact with the customer) and quasi manufacturing (there is no face-to-face contact with the customer i.e credit cards). Presto Cleaner can be classified as a mixed service because customers evaluate the outcome of the service as well as the service delivery. An example of mixed service is Ryanair (commercial airline), the company present itself as the number one customer service on-time statistics. The data showed 86% of over 40,000 of Ryanair flights arrived on-time, complaints by 1,000 pax was up from 0.59 to 0.78 from 2008 to 2009 respectively. However, the complaints answered with seven days were 99% for both 2008 and 2009 (Ryanair, 2009). A recent survey by the Institute for customer services showed that, tourism and retail food sectors where the top scorers is satisfying customers based on professionalism, quality and efficiency and problem solving (CSI, 2009). It can be said that, satisfying customer needs and expectations is beyond the products, it involves the process of services and the transaction. According to the case study, the company failed the customer which resulted to a compliant requesting for full refund and an apology. The customer requirements and expectations were not met, for this purpose the below Kano model of customer requirement can be applied:

Figure 2: Customer requirement

 

Source: Kano (1984)

The model above is widely used in operations management CQM (1993, cited in Zhao and Dholakia 2009). The perspective of this model is the relationship between customer satisfaction and customer dissatisfaction and the attributes that influences customer satisfaction such as exciting requirement and customer dissatisfaction when expected requirement is not fulfilled (Zhao and Dholakia, 2009). Equally important, there is a question of "internal communication" within the company. For example, when the customer reached customer complaint officer after two weeks, he was total unaware of the situation. It can be assumed that, this contributed to the customer frustrating expressions and dissatisfaction with the company. Furthermore, there was no promptness in dealing with the customer's complaints, for example, the claim form did not arrive at the customers expected time because it was not sent out immediately. So, the customer judges the service quality based on five principle dimensions. Parasuraman et al. (1988) identified five quality dimensions that link specific service characteristics (Berry, 1985) to consumers' expectations of quality these include: tangibles (physical facilities and equipment), reliability (ability to perform the promised service dependably and accurately, responsiveness (provide prompt service), assurance (knowledge and courtesy) and empathy (caring) (Parasuraman et al., 1988).

Wankhade and Dabade (2006) believe that, the perception of quality is a complex phenomenon involving social, cultural, economic and technical aspects. It was suggested that, system dynamics is a suitable technique for modelling and analysis of quality perception. As a general perspective, it is obvious that there are issues in the production cycle (supply chain) and also in customer handling issues. Therefore, this relates to supply chain and quality chain models. Sterman (2000, cited in Wankhade & Dabade 2006) describe supply chain as a set of structures and processes that a company uses to deliver an output to customers. Supply chain ambit covers a variety of issues such as physical product, resources including skilled labour, services and product design.

Summary and concluding thoughts:

Clearly there are quality issues at Presto cleaners, but quality guru's raised with this concerns all have one fact in common and that is customer satisfaction. Customers use Berry 1985 dimensions namely reliability, responsiveness, assurance, empathy and tangibles to judge service quality based on the comparison between expected and perceived quality and the satisfaction is either positive or negative. To avoid these quality problems, it is vital that Presto cleaner understand the needs of its customers. First, they could improve the production cycle. At this stage, the gap and SERVQUAL model is considered. The SERVQUAL model will enable the company ascertain the level of service quality based on five gaps: Gap 1 the positioning gap, Gap 2 the specification, Gap 3 the delivery, Gap 4 communication and Gap 5 which is the perception gap (Douglas and Connor, 2003). Furthermore, the company should look into the concept of the Q-match, this idea is about a useful and quick method to compare what the company is doing from others (for example, Presto Cleaner comparing with Kwik N Klean) (Bone and Griggs, 1989). The latter added that quality is to meet, agree, terms and changes, the company did not meet the pick-up agreement with Mr Shelton (Svensson, 2006), organisations should address and evaluate the sustainability of their values, tools and techniques used in the marketplace and the society. Therefore, sustainable quality management should be on the agenda of Presto cleaner.

 

References

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