Customer Satisfaction Area ( Olive, 1980 )

The Gaps Model of Service Quality was originally developed for application in the financial service sector. The model was

Perceived service quality as customer-based performances measure is also known as SERVQUAL Model. This study empirically examines organizational barriers to delivering high-quality service performance as measured by customer perceptions and expectations. Using the extended service-quality model developed by Zeithaml, Berry, and Parasuraman (Journal of Marketing, 52, 35-48) as a conceptual framework, five specific propositions implied by the model and by earlier studies contributing to its development were tested. Such testing required a complex research design involving five service companies as well as samples of customers, contact employees, and managers from each company. The results have

Source : Adapted from A. Parasuraman, Valerie Zeithaml, and Leonard Berry, “A Conceptual Model of Service Quality and Its Implications for Future Research,” Journal of Marketing, 49 (Fall 1985)

Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in

Obviously, from a Best Value point of view the measuring of service quality in the service segment ought to consider client desires of service and also impression of service. Be that as it may, as Robinson (1999) postulated that: "It is clear that there is little agreement of supposition and much contradiction about how to gauge service quality". One service quality estimation show that has been widely used is the SERVQUAL model created by Parasuraman et al . (1985, 1986, 1988, 1991, 1993, 1994; Zeithaml et al. , 1990). SERVQUAL as the frequently utilized tool for measuring service quality has been to look at clients ' desires before an service experience and their impression of the real service conveyed

Palmer (2011) notes that factors like the building design, signage, sensory cues and processes create a holistic perception on the quality of the service environment. It is from this perception that a customer creates a ‘behavioural and emotional response’ and evaluates the quality they may receive from the service. A dentist may seem more approachable when compared to a possible competitor due to its furnishing, spaciousness, cleanliness and appearance of staff. This is because within the service industry, first impressions are essential and it’s the service environment which creates the first step towards the interaction of a service. Managers can use this understanding of consumer behaviour in order to understand service quality specifications, which is what gap 2 is based on. However Kelemen (2003) notes that a customer’s expectation are diverse and cannot be generalised or predicted with confidence. One customer may be attracted to hedonic displays whereas the other may be more suited to utilitarian displays; it is all quite subjective and is essentially based on the interpretation of the consumer. Gap 2 can also be critiqued due to the need of managers having to reduce doubt and set clear standards. Because of this management ideas have to be based on quality tools that appeal to the masses instead of the niche.

This construct is the judgment and perception of consumers about the excellence and global superiority of a good or service, compared to other competitors. Unlike objective quality, which are meant to standardize parameters and full functioning (that leads to consumer satisfaction), perceived quality is an attitudinal element, linked to the perception of significance (Parasuraman et al., 1988) . Fullerton (2005) indicates that relationships are built with perceived quality as the foundation. This construct is even stronger when inserted in the service sector, where Kandampully (1998), Hougaard and Bjerre (2003) point out the superiority of the companies where quality is superior.

Service quality is thought to be a critical measurement of competitiveness. Providing excellent service quality and high customer satisfaction is the vital issue and challenge facing the modern service industry. Service quality is an important subject in both the public and private sectors, in business and service industries (Zahari et al., 2008). It is the degree to which a service meets or exceeds customer needs and expectations that is important. During the past two decades, service quality has become a major area of consideration to practitioners, managers and researchers because of its strong influence on business performance, lower costs, and return on investment, customer satisfaction, customer loyalty and gaining advanced profit (Ostrowski & O 'Brien, 1993).

Service quality represents a fundamental aspect of delivery, which strongly influences consumer satisfaction and, as a result, loyalty. In today’s global market a customer’s service expectation has to be met and exceeded eventually in order to retain customers as well as achieve success. Perceived quality of a product or a service is becoming one of the major competitive factors in the business world and has led to the innovation of the ‘Quality Era’ (Peeler, 1996). In simple words, the comparison of customer expectations with service performance is service quality. On the other hand, customer satisfaction is defined as a pleasurable fulfilment response toward a good, service, benefit, or reward (Oliver, 1997). Both of these

Keeping above points in context, Guo et al attempts to determine if there is there is an immediate or lagged effect on profitability. Following hypothesis are formulated:

According to previous studies, it shows that customer satisfaction is important to company because customer satisfaction will lead to customer loyalty which will result to company profitability (Hallowell, 1996).

This report is the outcome of a research created with the purpose of determining what impacts on customers’ satisfaction and expectation of service, as well as to study the relationship between the service nature, service quality, service failure, service recovery strategies and service guarantee. Evidence of how effective the service quality measurement models, such as SERVQUAL and SERVPREF, is also shown. The focus of this research is to show the main components of services, how

From plentiful literatures we can see customer satisfaction is related to the quality both of product and service. According to Regan (1963), he is one of the first to draw the relation between service quality and customer satisfaction, and since that time service industry research has flourished for a long time. Specifically, practitioners and academicians have been interested in how consumers conceptualize service quality.

Service quality, in terms of customers’ perception, arises from a comparison of what customers expect that companies should offer with the companies’ service performance they perceive (Parasuraman et al, 1988). In order to maximise customer satisfaction, companies need to know what service components are important in customers’ perception and try to deliver good service quality with suitable proportions of those components.

Manfred et al(2006) defines service quality in terms of customers expectation and perception of service provided. Zeithaml(1998) considers service quality