Modern Management Challanges

Service quality is referred to a valuation of how good a delivered service meets the customer’s expectation. Upper management

To Matthew and Nicholas, students of business, and Meghan, a student of the arts. G. F.

Carman, J. M. (1990). Consumer perceptions of service quality: An assessment of the SERVQUAL dimensions. Journal of Retailing, 66 (1), 33-55.

This chapter discusses literature review of theories and models and conceptual framework which is evidence of the study variables - Quality of service and customer satisfaction. The definition of Service, quality, customer satisfaction, the concept of quality of service, and the relationship between service quality and customer satisfaction is briefly discussed.

The dimensions of service quality are listed in the text as reliability, responsiveness, assurance, empathy, and tangible.

Hung, Y. H., Huang, M. L., & Chen, K. S. (2003). Service quality evaluation by service quality performance matrix. Total Quality Management and Business Excellence.

Global competitiveness is the ability and performance of an entity to sell and supply goods and services in a global market in relation to the ability of other entities in the same market.  It was the conclusion that globalization would open a broader marketplace to sell goods and service as well as creating more options for

Therefore, measuring this service quality will lead to the customer satisfaction through measuring quality dimension to evaluate the services and to measure the gap between customer perceptions and expectations, any bank that fails to surpass customer expectations and meet customer satisfaction will not be able to compete with other banks. It is the most difficult challenge for a bank that its customers transfer their accounts to rival banks because of better services. Five dimensions of SERVQUAL have been developed for the service sectors: assurance, empathy, reliability, responsiveness and tangibility (Van Iwaarden et al.,

Service quality has become a main idea for student academic to study in many industries especially in hospitality industry. In Wilson et al (2008), service can be discussed in the terms of below four characteristics:

There are two main aspects that describe and affect both service quality; the actual service customers expected (expected service) and services perceived (perceived service). Fitzsimmons & Fitzsimmons (2001) explains that the creation of customer satisfaction for a service can be identified through a comparison between service perceptions with service expectation, see Figure 1.

There are different models used to measure customer satisfaction that are dependent upon the particular information desired. Models can focus on value, quality, performance, and expectations. Models are needed to analyze the validity of measurements for customer satisfaction.

Quality of the service is the degree of conformance of all the relevant features and characteristics of service to all the aspects of the consumers’ needs limited by the price and delivery s/he will accept. Quality can be viewed from two perspectives:

Generally speaking, the perceived service quality is a subjective term that captures the overall superiority of a product comparing with other products that satisfy the similar needs (Holbrook & Corfman, 1985). Sometimes, service quality interchanges with overall attitude whose definition is “a learned predisposition to respond to an object in a consistently favorable or unfavorable way” (Allport, 1935), and they are perceived as two similar terms to some researchers (Bitner, 1990; Zeithaml et al., 1988). Actually, either definition captures the subjective element in service quality. In the late 1980s and the early 1990s, some researchers argued that perceived service quality is based on the expectations and the actual service delivery (Boulding, Kalra, Staelin, & Zeithaml, 1993; Parasuraman et al., 1985), similar to the gap model in the customer satisfaction area (Olive, 1980). Specifically, expectations are customers’ subjective beliefs of the likely outcomes that a service provides (Oliver & Winer, 1987) while the actual service delivery is the objective factors that a service really provides (Boulding et al., 1993). The subjective nature of expectation and the subjective process in evaluating actual service delivery determine that service quality is a subjective term. Therefore, because of the heterogeneity (Edgett and Parkinson, 1993; Zeithaml et al., 1985), perceive service quality is difficult to improve with traditional quality control in service industry. In this

A service deemed to be of high quality when the customer’s expectations are corroborated by subsequent service delivery. Service quality is important and strategic aspect in

Peter Spurgeon and Robert Cragg (2007) contend the current attention paid to the importance of leadership has diminished the value and contribution of management. The discussion concerning leadership and management, at the most extreme, is inclined to portray leadership as 'good' and management as 'bad'. These constraints are rooted in the proposition that people do not want to be managed, with its connotations of bureaucracy and control, but are happy to follow a leader toward a vision. At the core of this perception is the belief that leaders are concerned with the future and with the people in the system, while managers are focused upon greater efficiency and immediate results.