Module 5- Service Quality, Customer Satisfaction,
and Value: An Examination of Their Relationships
Unit I-SERVICES MANAGEMENT
Dela Carzada
Dupingay
Inocencio
Larona
Learning Objectives
At the end of the module, learners are expected to:
Differentiate the service quality, customer satisfaction, and value relationship
Explain the relationship among the service quality, customer satisfaction and
value
Describe service quality, customer satisfaction, and value
Service Quality
Service quality and customer satisfaction are closely related. The research by
Sureshchandar et al. also shows, however, that service quality and customer
satisfaction are closely related, and that an increase in one is likely to lead to a rise
in the other.1 July 2002
Customer satisfaction is defined as a measurement that determines how happy
customers are with a company's products, services, and capabilities. Customer
satisfaction information including surveys and ratings, can help a company
determine how to best improve or changes is products and services
An organization's main focus must be to satisfy its customers. This applies to retail
and wholesale businesses, government bodies, service companies, nonprofit
organizations and every subgroup within an organization.
Perceived Customer
quality complaints
Perceived Customer
value satisfaction
Customer Customer
expectations loyalty
Customer Satisfaction Model
Supplier-customer relationship examples
WHO ARE THE
Supplier Customer Product or Service
CUSTOMERS?
Automobile manufacturer Individual customers Cars
Customers include
anyone the Automobile manufacturer Car dealer Sales literature
organization supplies
with products or Bank Checking account holders Secure check handling
services. The table
below illustrates some High school Students and parents Education
supplier-customer
relationships Hospital Patients Healthcare
Hospital Insurance company Data on patients
Note: that many
organizations are both
Insurance company Hospital Payment for services
customers and
suppliers
Steel cutting department Punch press department Steel sheets
Punch press department Spot weld department Shaped parts
All departments Payroll department Data on hours worked
WHAT DOES IT TAKE TO SATISFY THE CUSTOMER?
Organizations should not assume they know what the customer wants. Instead it is important to understand the
voice of the customer, using tools such as customer surveys, focus groups, and polling. Using these tools,
organizations can gain detailed insights as to what their customers want and better tailor their services or products
to meet or exceed customer expectations.
2. Investigate
issue
3. corrective
1. Issue reported
action
9. customer 4. customer
survey follow-up
5. root cause
analysis
8. verification of
effectiveness
6. preventive
action
7. customer
follow-up
CUSTOMER SATISFACTION RESOURCES
R. L. Polk & Co.: Making Every Issue the Only Issue (PDF) Annual customer surveys for R. L. Polk &
Co. identified opportunities for improvement in customer contact and issue resolution. By following the
same steps for every issue and performing full root cause analysis for 100% of issues, Polk increased
operational excellence and improved customer satisfaction.
Move from Product to Customer Centric (Quality Progress) 'Customer centricity is about listening to
your customers, with a focus on collecting, understanding and acting on customer feedback and
providing tools for easy access to this information.
Don't Measure Customer Satisfaction (Quality Progress) Customer percent value is a better
alternative to traditional customer satisfaction measurements.
Linking Customer Satisfaction to Product Design: A Key to Success for Volvo (Quality
Management Journal) A framework for bridging the quality satisfaction gap at Volvo integrates quality
function deployment and customer satisfaction modeling
1
Thank you!