Challenges to provision of quality customer service in business organization

By : Asharul Akhmal Bin Md. Jamil (2014424562)

Abstract

The aim of this article is to analyze the challenges to provision of quality customer service in business organization. A sound association is found between customer satisfaction and the quality of service provided by the companies. In business world customers are the source of profit and revenue for the service organizations and improvements in service quality leads to customer loyalty. The study investigates the effect of quality on satisfaction by focusing on the relationship between service quality and customer satisfaction and how quality can be improved in the service firms.

Keywords Customer service, Business, Service quality, Customer Satisfaction

Introduction

The current business environment is becoming competitive and challenging than before. With multidimensional challenges and demand of globalization, the organizations are forced to reengineer their products and systems to improve the service quality and remain competitive. ( Yasin et al., 2010; Rodie and Martin, 2010).

Customer service is considered as an integral part of any facet of industry and it defines the future of any organization. The rapid advances in technology based systems related to internet are leading to fundamental ways in how different organizations interact. This applies same for relation of an organization with its customer. In different services industries the relationship between customer satisfaction and service attributes have been difficult to identify because services nature is intangible ( Hong, Goo et al., 2008; Nguyen and Leblanc, 2009).

Due to intangible nature of services it is difficult for the firms to analyse how the customers perceive and evaluate the desired outcome of the service quality ( Zeithaml,1981). As customer evaluate their level of satisfaction by experimenting the service quality, satisfaction with services is related to conformation or disconfirmation of expectations ( Smith and Houston 2007). The issue of highest priority today involves understanding the impact of service quality on profit and other financial outcomes of the organization ( Zeithaml et al., 2010).

As Organizations are increasingly becoming customer focused and are driven by customer demands. It is becoming equally challenging to satisfy and retain customer loyalty. Research by Oliver (2009) suggests that both service quality and customer satisfaction are two distinct but related constructs. It is particularly true for the services firms where increased level of customer satisfaction results in profit maximization.

Therefore experts say that customer satisfaction should be the fundamental principle of all the service firms as it is the key indicator of firm’s performance. As said by Sakthivel et al., (2005) Customer loyalty and satisfaction is proved to be the major determinant for long term survival and financial performance of the company (Jones and Sasser,2015) also customers are considered as final judges to judge the quality level of product and services offered.

So it can be said that the improvements in quality standards bring positive outcomes for the firm. When service firms well understand this fact that continuous improvements in service quality and offerings effects the satisfaction level of customers, they can better allocate resources to attain quality standards in order to meet their client’s expectations. This research mainly focuses on those improvements and processes to manage the process of quality services delivered to the final consumers and examines the relationship between service quality and customer satisfaction.

Defining Customer Satisfaction

The concept of customer satisfaction has drawn the attention of practioners and academics from last several years based on the fact that customers are the primary source of Profit for most of the firms operating in the market (Tam, 2012).

According to Churchill and Surprenant (2010) “customer satisfaction is an outcome of purchase and use resulting from the buyers' comparison of the rewards and costs of the purchase in relation to the anticipated consequences”. It is also defined in terms of an emotional state that usually arises in response of evaluating a particular service (Westbrook, 2011). The former concept highlights the fact that satisfaction is determined through a cognitive procedure by comparing what customers give up to get a service( cost) and what they receive in response ( reward) however the later concept takes satisfaction as a emotional feeling that results during the process of evaluation (Tam, 2004). Consistent with this concept, we can say that “customer satisfaction is defined as an emotional response, which results from a cognitive process of evaluating the service received against the costs of obtaining the service” (Woodruff et al. 2015).

Customer satisfaction facilitates the measure of how service and products provided by company meet customer expectation. It is a key performance indicator in business terms. Typically, service firms monitor and examine the satisfaction level of customers on an ongoing base by using different scales like, to measure the level of customer satisfaction which is mainly based on service encounter experienced on their last visit (Peterson and Wilson, 1992).

Effect of service quality on customer satisfaction

To obtain products and service a consumer spends both money and resources in the form of time, energy and effort (Zeithaml et al., 2010). Service or product quality and customer satisfaction both have long been considered crucial for success and survival in today’s competitive market. But it is also important to understand what contributes to customer satisfaction that could be a key to achieve competitive advantage.

Consumers are now demanding higher quality in products than ever before (Leonard and Sasser, 2014). The search for quality is arguably the most important consumer trend of the 2000 ( Rabin, 2012). The important feature of service firms is to focus on quality, the way it is produced and being offered to the final customer. It is seen that continuous improvements in the quality of services perceived according to the consumer expectations positively affects the satisfaction level and customer’s perceptions about the company.

However, it is worth noting that there are several distinct conceptualizations of quality. Just as current quality is expected to have a positive influence on overall customer satisfaction (Anderson et al., 2015). So we can say that, the effect of expectations of quality on customer satisfaction is positive and significant (Anderson et al., 2015). Delivering quality service is considered an essential strategy for success and survival in today’s competitive environment (Dawkins and Reichheld, 2010). The primary emphasis of both academic and managerial effort focused on determining what service quality meant to customers (Zeithaml et al., 2010).

Service quality is a determinant of whether a customer ultimately remains with or defects from a company (Zeithaml et al., 2010). In marketing management literature service quality takes a prominent position. It is usually defined as customer’s impression of relative inferiority or superiority of service provide and its service. Also it is often considered similar to overall attitude of customer towards company.

It is also observed that the increased interest in service quality by the firms is due to the fact that service quality is proved to be beneficial to maintain bottom line performance of the firm. Both Service quality and Customer satisfaction terms is being widely used by researchers interchangeably (Sureshchandar et al., 2014).

Studies show that the overall experience with the service quality results in customer satisfaction which leads to customer loyalty. Where the overall service quality is viewed as a combination of core and relational aspects. In the service literature, core and relational quality are the most basic elements of services. Where core is “what is delivered” and relational is “how it is delivered” (McDougall and Levesque, 2014).

The Challenging can be improved in the business organizations?

Providing excellent services require continuous improvements in the organizational culture, a culture in which people are challenged to give their best and are rewarded and recognized in the company to perform to their full potential.

A firm can improve the quality of its services by developing the service improvement strategy in the organization which requires several steps and measures to trigger improvements in the internal environment. Leonard, Parasuraman et al.,(2008) has explained some steps for managers through which company can improve the service quality. In the following pages (p24-p26) some of the steps from Leonard, Parasuraman & Zeithmal (2009) research are discussed.

Listening

Generally, quality is defined by the customers and it should be improved according to customer specifications not the company. Listening, understanding and spending wisely on customer’s expectations and perceptions can bring improvements in the services of the company as the way customers required and expect. The most common mistake in service improvement that companies do is to spend money in a way that does not improve the services at all. Research shows that company’s strengths and weaknesses from service perspective are better explained by those who have experienced it. In order to improve the service, companies should install an ongoing research system that provides timely and relevant data. Also there is a need to develop service quality information system in the company. The service quality information system basically provides the following information. Leonard, Parasuraman & Zeithmal (2009)

 Identify Dissatisfied Customers & frequent service failure causes

 Collect customer feedback on continuous basis

 Create customer forums to get ideas of further improvements

 Improve internal service quality by focusing on employee issues and concerns

 Improve customer services by measuring individual employee behaviour to use in trainings, performance evaluations and rewards

 Analyze the company’s service performance compared with competitors to identify strengths and weaknesses.

Reliability

The five dimensions of services reliability, responsiveness, assurance, empathy, tangibles are used as criteria to judge the quality of the services. Also these dimensions help service providers to understand about customers’ expectations regarding service offerings. Research reveals that among these five dimensions Reliability is the most important one to judge the quality of the service. When firms are failed to deliver the promise and make frequent mistakes in service delivery, customer loses its confidence on the firm’s ability to provide timely and accurate service at the first end. Leonard, Parasuraman & Zeithmal (2009)

Service Design

Reliability in service delivery as expected by the customers depends on how the various elements in the service system work well together. These elements include people who perform the service, equipments that required performing the particular service and the physical environment in which service is actually performed or delivered. Flaws in any part of this service system affect the quality level. Usually people who are delivering the services are blamed for poor quality however the real problem lies in the service system design.

Service mapping is considered a way to improve the quality of services. Service mapping is the pattern of performances that makes a service system design. Leonard, Parasuraman & Zeithmal (2009)

Service Recovery

When a customer face a service problem, either service firms makes things better with the customer or make it worse sometimes. Three things happen when a customer experience any problem, they remain dissatisfied and do not voice their complains, they complain and become satisfied or become dissatisfied if company does not response well.

Generally customers are reluctant to complain and company should take following steps in such situations,

Encourage customers to voice their complaints and make it easy for them by providing toll free numbers or comment cards.

Problem resolution system needs to be developed very effectively in the service firms.

Response quickly to customer complaints because quick response makes a customer feel that company is concerned about his/her interests. Leonard, Parasuraman & Zeithmal (2009)

Surprise Customers

Customers evaluate the service dimension during the delivery process and it is very difficult to go beyond customer’s expectations by providing the reliable services only. Therefore managers must consider the “WOW” factor in their service offerings. To go beyond expectations and delight the customer demands, firms should offer some surprising elements in their service offerings like grace, courtesy, uncommon swiftness, understanding and commitment. Leonard, Parasuraman & Zeithmal (2009)

Fair Play

The customer expectation lies under the concept of fairness. As customers expect from the service providers to treat them fairly, fulfil the promises made and be trustworthy. Mainly customer’s expect companies to provide quick services( responsiveness), to offer comfortable service facilities and communication channels ( Tangibles), to fulfil the commitments (Reliability) to offer personal attention and polite dealing ( Empathy) and should provide considerable and competent services( Assurance). Also should provide the guarantee demonstrate fairness towards service offerings. It gives the customer a right to evoke the service and charge the compensation if he becomes dissatisfied. Leonard, Parasuraman & Zeithmal (2009)

Servant Leadership

Delivering high service quality demands an excellent leadership often known as “Servant Leadership”. These leaders believe in people capacity to view their own roles as standard of excellence and a direction to achieve their goals by providing necessary equipments, tools and proper freedom to achieve their tasks. These Leaders believe in investing people by listening to their concerns, providing them trainings, coaching, and teach them how to inspire and compete in order to boost company’s productivity and quality standards. Leonard, Parasuraman & Zeithmal (2009)

Conclusion

The relationship in this research is explained in terms of customer expectations and perceptions about the quality of services and the way it is performed/delivered, together with the influence of word of mouth /personal needs and the factors affecting the both constructs.

It’s show that needs and word of mouth affect the level of customer expectations and perception about the quality of service which leads to overall customer satisfaction/ dissatisfaction. A need drive the customer to buy whereas word of mouth has the power to change customer perception and expectations regarding the service. It was found that Service performance and (negative) word of mouth has the strongest impact on customer decision regarding continue or discontinue the relationship with the particular service provider.

Findings revealed that quality of service has significant contribution towards customer satisfaction because there are other factors as well. Those factors are brand or company image, customer experience, service delivery/ performance (fast or slow) the behaviour and appearance of the service providers effect the most. It can be concluded that customers demand the quality of service together with all factors that directly or indirectly effect the services to make him satisfied.

References

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