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Ten Lessons for Improving Service QualityLeonard Berry, A. Parasuraman, and Valarie Zeithaml, 2003 03-104Between 1983 and 1993, Berry, Parasuraman, and Zeithaml conducted a comprehensive, five-phase study of service quality in America under the sponsorship of the Marketing Science Institute. They have published a series of MSI monographs, journal articles, and several books based on this research. They reflected on their research journey in an MSI commentary that was published in 1993 and republished i/mtk/1905.html n 1994 by the Academy of Management Executive, and is now reprinted here. In the preface below they re-visit their reflections of ten years ago. PrefaceQuality service helps a company to maximize benefits and minimize burdens for customersthe essence of delivering value. Because it is important to most customers and defies imitation by competitors, quality service offers a key competitive advantage. Indeed, firms in every industry have demonstrated the differentiating power of excellent service. Yet, despite this, price competition seems to dominate company efforts to provide value. The meteoric growth of Wal-Mart Storesand the tendency of many firms to lower prices as a first response to softening demandhas focused so much marketing energy on price competition that it has become difficult not to assume that customers care only about price. A singular focus on price competition means that the firm is competing only on the “burden” component of value and ignoring the “benefit” component. Rather than investing in quality service to “decommoditize” the business, firms are emphasizing low price which serves to further “commoditize” the business. Service in America would be much improved if managers would embrace one central operating principle: the tougher the price competition in our industry, the more important quality service is to our companybecause superb service gives customers non-price reasons to do business with us. In 1993, our purpose in writing a commentary was to consider our research findings and experience holistically as a foundation for offering guidelines to managers on improving service. We presented our guidance in the form of service quality “lessons,” identifying ten that applied across service industries and were essential to service improvement. They are as follows: 1.Lesson of listening und/mtk/1905.html rstand what customers really want through continuous learning about the expectations and perceptions of customers and noncustomers ( e.g.by means of a service quality information system).2.Lesson of reliabilityreliability is the single most important dimension of service quality and must be a service priority. 3.Lesson of basic serviceservice companies must deliver the basics and do what they are supposed to dokeep promises, use common sense, listen to customers informed, and be determined to deliver value to customers.4.Lesson of service designdevelop a holistic view of the service while managing its many details.5.Lesson of recoveryto satisfy customers who encounter a service problem, service companies should encourage customers to complain ( and make it easy for them to do so), respond quickly and personality, and develop a problem resolution system.6.Lesson of surprising customersalthough reliability is the most important dimension in meeting customers service expectations, process dimensions( e.g. assurance responsiveness, and empathy) are most important in exceeding customer expectations, for example, by surprising them with uncommon swiftness, grace, courtesy, competence, commitment, and understanding.7.Lesson of fair play service companies must make special efforts to be fair and to demonstrate fairness to customers and employees.8.Lesson of teamworkteamwork is what enable large organizations to deliver service with care and attentiveness by improving employee motivation and capabilities.9.Lesson of employee researchconduct research with employees to reveal why service problems occur and what companies must do to solve problems.10.Lesson of servant leadershipquality service comes from inspired leadership throughout the organization; from the effective use of information and technology; and from a slow-to-change, invisible, all-powerful, internal force called corporate culture. In our view, these ten lessons represented the foundation for se/mtk/1905.html vice improvement. The potential for service improvement is diminished if even one of these ten essentials is missing. In our view, these ten lessons represented the foundation for service improvement. The potential for service improvement is diminished if even one of these ten essentials is missing. After ten years, the question of course is, Are the lessons still relevant? Do they still apply to American firms? We believe they do and wish more businesses had heeded them during the past ten years. Indeed, these lessons have stood the test of time; our regret is that so many firms have ignored them. Read, for example, the “Fair Play” section and ask yourself, Would the major airlines be in such financial distress today had they paid more attention to fundamental fairness? Many point to the September 11, 2001 terrorist attack as the beginning of the airline industrys troubles. In fact, the airlines began alienating frequent business travelers long before that, with anti-consumer policies that took advantage of business travelers inability to plan their travel weeks in advance. An industry that charges one customer $300 and another $1,300 for seats in the same class on the same flightwith the only difference the timing of the reservationcannot and will not earn the confidence and loyalty of customers. As we write in the paper, “Customers expect service companies to play fair, and they become resentful and mistrustful when they perceive unfairness.” If we were rewriting our paper today, we would emphasize the significance of quality service to all companies. We would argue that all companies are service companies in that all companies create customer value through services. Some firms create value strictly through services and others through goods and services, but all stake their future on the quality of their service. We would stress even more than we did the importance of service reliability to earn the customers confidence and the importance of pleasant surprise to exceed customers expectations and establish strong relationships. We would stress the role of service quality in creating a differentiated brand; in services, the company is the brand and nothing is more powerful than customers actual experiences with the service in creating the brand. We also would stress the role of quality service in improving the qua/mtk/1905.html lity of work life. Service excellence requires building an achievement culture in the organization, and achieving in ones work is energizing and satisfying. Excellen
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