Service quality : customer expectations and relationship perspectives

Abstract

Quality is an elusive construct. It is pursued by business because it is considered conducive to profitability. It is requested by customers, whether they truly know what it represents or not, as inherent to what they are purchasing. Services provide intangible and heterogeneous performances to the customer and quality problems are intensified. Furthermore, service quality problems vary with the level of involvement of the customer in the service itself. Focusing on a high involvement insurance service provider as a case study, this dissertation identifies the unique characteristics of services and the specific problems these cause to service marketing, delivery and quality. The literature on service quality is broadly reviewed. Particular emphasis is placed on the SERVQUA L service quality model, its applications and limitations, and the customer expectations perspective of the model. This dissertation also highlights further quality problems caused when the particular service business is managed through intermediary organisations. The research indicates that customers expect relationships with their service providers, relationships managed as though the customer and service provider were partners. Strong relational quality in these terms tends to be considered high service quality. The firm should, however, implement measures to ensure that this relationship is developed with the firm, not with individual contact personnel. Applying the customer expectations battery of the SERVQUAL model to the case firm management, intermediary organisations through which it does business, and clients, no notable distinctions were identified in management and intermediary perceptions of customer expectations, presumably due to the firm's business operations directly with its own customer base.