Social Innovation

De La Salle University[pic 1][pic 2]

Ramon V. del Rosario College of Business

Basic Research for IBS (RES-IBS)- K31

Literature Review

Submitted to:

Mr. Rey A. Mones

Submitted by:

Celis, Patricia Camille T.

Diro, Farizzha A.

Remiter, Nicole C.

Submitted on:

January 26, 2017

1. Service Quality

Problem Statement: To what extent have existing companies given importance to service quality over product development?

In the business industry, ensuring and maintaining the service quality is a vital component in assuring a business success. In this part of the research paper, the authors have gathered existing literature to support the concept of service quality, as well as, to provide the reader a background on the said topic.

        Intangibility, heterogeneity, and inseparability of service are the characteristics that service possesses. Services can be distinguished from goods in three categories based on the classification of properties, namely, search properties, experience properties, and credence properties. (Riberio, 1993)

        The word “quality” has been given different denotations or definitions. Nonetheless, it all seems to boil down to one central meaning. As presented in the Cambridge encyclopedia, W. Edwards Deming defined quality as “Good quality means a predictable degree of uniformity and dependability with a quality standard suited to the customer.” Quality guru, Philip Crosby, stated that “Quality is conformance to requirements”.

Having said that, the definition of “service quality” can be aligned from the statements above. As specified by A. Parasuraman, service quality means “global evaluation or attitude of overall excellence of services”. As for Danuta Nitecki, service quality is “meeting or exceeding customer expectations or as the difference between customer perceptions and expectations of service.” (Wang & Shieh, 2006)

        Terry Grapentine (n.d.) recounts the history of service quality in a journal article entitled “The History and Future of Service Quality Assessment”. According to A. Parasuraman, a professor and an editor, service quality dates back to the years 1983-1985. Parasuraman, together with his co-scholars Berry and Zeithaml, has determined five service quality gaps:

• Gap 1: Difference between consumer expectations and management perceptions of consumer expectations.
• Gap 2: Difference between management perceptions of consumer expectations and service quality specifications.
• Gap 3: Difference between service quality specifications and the service actually delivered.
• Gap 4: Difference between service delivery and what is communicated about the service to consumers.
• Gap 5: Difference between consumer expectations and perceptions.

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Figure 1. Conceptual Model of Service Quality

        Similar with Grapentine’s report, Dr. Arash Shahin presented the model of service quality gaps. Contrast to the previous report, Shahin’s report presents a total of seven gaps.

• Gap 6: The discrepancy between customer expectations and employees’ perceptions.
• Gap 7: The discrepancy between employee’s perceptions and management perceptions.

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Figure 2. Conceptual Model of Service Quality Gaps

Also, Shahin introduced to his readers the SERVQUAL model by Parasuraman et al. The said model is utilized in order to measure service quality. Tangibles, Reliability, Responsiveness, Assurance, and Empathy are the five generic dimensions used as SERVQUAL instruments.