SGAR CHOUHAN 

WHAT IS SERVQUAL? DESCRIPTION

The SERVQUAL method from Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry is a
technique that can be used for performing a gap analysis of an organization's service quality
performance against customer service quality needs.

SERVQUAL is an empirically derived method that may be used by a services organization to

improve service quality. The method involves the development of an understanding of the
perceived service needs of target customers. These measured perceptions of service quality for
the organization in question, are then compared against an organization that is "excellent". The
resulting gap analysis may then be used as a driver for service quality improvement.

SERVQUAL takes into account the perceptions of customers of the relative importance of service
attributes. This allows an organization to prioritize. And to use its resources to improve the most
critical service attributes.

The data are collected via surveys of a sample of customers. In these surveys, these customers
respond to a series of questions based around a number of key service dimensions.

The methodology was originally based around 5 key dimensions:

1. Tangibles. Appearance of physical facilities, equipment, personnel, and
communication materials.
2. Reliability. Ability to perform the promised service dependably and accurately.
3. Responsiveness. Willingness to help customers and provide prompt service.
4. Assurance. Knowledge and courtesy of employees and their ability to convey
trust and confidence.
5. Empathy. The firm provides care and individualized attention to its customers.
This has been adapted later by some to cover:
1. Tangibles. Appearance of physical facilities, equipment, personnel, and
communication materials.
2. Reliability. Ability to perform the promised service dependably and accurately.
3. Responsiveness. Willingness to help customers and provide prompt service.
4. Competence. Possession of required skill and knowledge to perform service.
5. Courtesy. Politeness, respect, consideration and friendliness of contact
personnel.
6. Credibility. Trustworthiness, believability, honesty of the service provider.
7. Feel secure. Freedom from danger, risk, or doubt.
8. Access. Approachable and easy of contact.
9. Communication. Listens to its customers and acknowledges their comments.
Keeps customers informed. In a language which they can understand.
10. Understanding the customer. Making the effort to know customers and their
needs.
ORIGIN OF SERVQUAL. HISTORY
The authors conducted a qualitative study, from which they concluded that customers ranked the
importance of two SERVQUAL dimensions consistently. Regardless of service industry.
Reliability is the most important contributing factor to service quality and tangibles is the least
important.

USAGE OF SERVQUAL. APPLICATIONS

 • SERVQUAL is widely used within service industries to understand the
perceptions of target customers regarding their service needs. And to provide a
measurement of the service quality of the organization.
• SERVQUAL may also be applied internally to understand employees'
perceptions of service quality. With the objective of achieving service improvement.
STEPS IN SERVQUAL. PROCESS
The method essentially involves conducting a sample survey of customers so that their perceived
service needs are understood. And for measuring their perceptions of service quality for the
organization in question.

Customers are asked to answer numerous questions within each dimension that determines:
• The relative importance of each attribute.
• A measurement of performance expectations that would relate to an "excellent"
company.
• A measurement of performance for the company in question.
This provides an assessment of the gap between desired and actual performance, together with a
ranking of the importance of service criteria. This allows an organization to focus its resources.
To maximize service quality whilst costs are controlled.

STRENGTHS OF SERVQUAL. BENEFITS

Most users would agree that a comprehensive and thorough examination of service needs and
service quality provides an invaluable approach to improving service quality. SERVQUAL
provides detailed information about:
• Customer perceptions of
service (a benchmark established by
your own customers)
• Performance levels as
perceived by customers
• Customer comments and
suggestions
• Impressions from employees
with respect to customers expectations
and satisfaction
LIMITATIONS OF SERVQUAL.
DISADVANTAGES
There have been a number of studies that doubt
the validity of the 5 dimensions. And of the
uniform applicability of the method for all
service sectors. According to an analysis by
Thomas P. Van Dyke, Victor R. Prybutok, and
Leon A. Kappelman, it appears that the use of
difference scores in calculating SERVQUAL
contributes to problems with the reliability,
discriminant validity, convergent validity, and
predictive validity of the measurement. These
findings suggest that caution should be
exercised in the use of SERVQUAL scores and
that further work is needed in the development of measures for assessing the quality of
information services.

ASSUMPTIONS OF SERVQUAL. CONDITIONS

 • The results of market surveys are accurate. The validity of the model is based
around the results of empirical studies. A number of academics have since performed
further empirical studies that appear to contradict some of the original findings.
• Customer needs can be documented and captured, and they remain stable during
the whole process.

n Grönroos' Perceived Service Quality model, expectations are a function of market

communications, image, word of mouth, and consumer needs and learning, whereas experience is
a product of a technical and functional quality, which is filtered through the image.

Grönroos' Perceived Service Quality model

Grönroos more clearly shows the existence of a perception gap, although there is no suggestion of
"delighting" only of narrowing the gap. However the model has more practical application as it
shows factors that contribute to each side of the gap. It demonstrates that the supplier can affect
both sides of the gap – most notably by managing customer expectations. In addition it illustrates
that the customer experience is a product of the image of supplier quality, not just the actuality.
Clearly marketing as well as process and technical quality has an effect on the perception gap.

Nonprofit organizations (NPOs) are an important part of our modern

society. Although it may seem counter-intuitive, in the United States
these organizations contribute significantly to the national economy.
Since the early part of the 21st century, jobs in the nonprofit sector have
grown at a faster rate than those in the for-profit sector (Bilzor, 2007),
currently making up almost 11% of the total workforce. While the
individual nonprofit employee tends to make less than his or her forprofit counterpart, the
nonprofit sector overall paid out more in total
wages in 2004 than the utility, wholesale trade, and construction sectors
combined (Bilzor, 2007). Furthermore, NPOs contribute billions of dollars
to the economy every year in products and services—products and
services that our state, local, and federal governments are relieved from
supplying. In four counties in western Michigan alone, NPOs had an economic impact of $3.4
billion in 2006 (Community Research Institute, 2007). The number of NPOs in the United States
has grown tremendously in the last three decades. This has created more competition for the
limited amount of funds available to NPOs from individual donors, the government, corporations,
and foundations (Clark & Mount, 2000; Gwin, 2000; Katz, 2005; Peloza & Hassay, 2007). This
in turn has resulted in greater interest from the nonprofit sector in marketing and in the
importance of the marketing profession overall (Clarke & Mount, 2000; Katz, 2005). In general,
NPOs did not use marketing techniques until the ‘‘late 1960s and early 1970s,’’ but it is now a
well accepted—if often misunderstood—practice (Wenham et al., 2003). While there is general
agreement that NPOs have a greater need for marketing than they did 30 years ago, there is little
agreement on how NPOs should approach marketing. The goal of traditional marketing efforts at
forprofit firms is most often improving the company’s bottom line. An example of a common
definition of marketing states that it is ‘‘the management process responsible for identifying,
anticipating and satisfying customer requirements profitably’’ (Smith & Saker, 1992, p. 6). For
NPOs, this type of definition is problematic. A Michigan ‘‘nonprofit corporation’’ is one that is
incorporated for any lawful purpose ‘‘not involving pecuniary profit or gain’’ for its directors,
officers, shareholders or members (Michigan Compiled Laws 450.2108(3)1993). This creates a
disjoint between traditional marketing and the need for NPOs to do marketing. So, to assist local
NPOs in western Michigan in improving their marketing and planning efforts, we have begun the
development of a model nonprofit marketing strategy. The first steps in this process were to
determine how NPOs viewed marketing and to identify real and perceived challenges and
obstacles to these current NPO marketing efforts Nonprofit organizations have grown
tremendously in the last three decades. With this growth has come a greater interest from the
nonprofit sector in the importance of marketing. Nonprofits did not apply marketing techniques
until 1960–1970, but it is now a well accepted practice. Traditional marketing strategies do not
work for nonprofit organizations, and this study proposes the development of a new marketing
strategy specifically for this sector. Through the use of interviews and surveys, the authors
examine issues of marketing strategy that are distinct for nonprofits. Unlike previous studies, this
study examines these issues from the viewpoint of the nonprofit organization. The perception of
marketing is different in nonprofit organizations, and the strategic implications of this finding are
discussed.
Hospital marketing is a specialized field that deals with connecting patients, physicians,
and hospitals in mutual relationships.Many people ask, "How can you 'market' a hospital?" But
marketing a hospital or health system is no different than "marketing" any other non-profit organization
like the American Red Cross or your local charity. There are audiences. There are needs. There is a mission
statement. Plus, historically, medicine in America has always been a business. In today's insurance and
reimbursement environment, health care and hospital marketing is more needed than ever to ensure
continuing viability of American medicine on the local level and to provide the high quality of individual
health care that Americans have come to demand.

Marketing strategies for product software assist software firms to determine the type of market
analysis that is needed for decision-making. Two general strategies that are well known in the marketing
discipline are:
  marketing mix; and
 relationship marketing.

"Marketing mix" is the typical strategy for traditional mass marketers of product software in competitive
markets. Structured market research, and agility in reacting to sales, are characteristic of their product
development process (Alajoutsijarvi et al., 2000). An example would beElectronic Arts, with their various
home computer software games, which are advertised on television and sold in many electronic stores.

"Relationship marketing", (closely associated to CRM), is used by product software companies who focus
on long-term customer relationships (Alajoutsijarvi et al., 2000). An example of this is SAP, which
offers enterprise resource planning systems, along with support (since the software is complicated to
install). Maintaining customer relationships helps sell additional modules and future upgrades.

Broethers and van't Kruis explain two other strategies that are important to the growth of software firms:

 a service-based strategy; and

 a different marketing channels strategy.

Information about customer preferences, observations of customer reactions, and knowledge of past
mistakes are important for the "service-based strategy". "Different marketing channels strategy" tries to
discover non-traditional marketing channels to help increase distribution of software products to
other target markets that take advantage of positional differences. "Alliance-based strategies", on the other
hand, are helpful at providing knowledge exchanges, opening previously inaccessible markets (such as
export markets), and an overall larger market access (1997).

Besides helping with current strategies, market analysis can improve future planning and growth strategies
that are helpful in product roadmapping decisions. It also helps discover areas where
"complementary product development" and "diversification strategies" can be profitable. Complementary
goods can be in the form of other software products, hardware, or services, such as consultancy, user
training, and customization (Rao & Klein, 1994). The development of these goods increases the
opportunities for companies in the software market (Sengupta, 1998). Even complementary products from
other vendors can lead to an increase in the value of the original product, while reducing the time to market
(Messerschmitt & Szyperski, 2004).

The complementary product strategy adds value by showing innovation, and creates a multiplier effect on
the original product (Sengupta, 1998). Investing in other products and services aids in diversification,
which can increase the overall customer base, and helps decrease the risks of being overly specialized (Rao
& Klein, 1994). Diversification can, therefore, increase the financial health of the company. An example of
this is Microsoft, which has increased the sales of its primary operating system software by offering
products, such as word processing, and media player software.tip le tip le sab mera :D sagar

See also Marketing mix for product software.

here are insurance marketing strategies that can take any insurance agency from mediocre to success when
utilized correctly. Breaking into a new business climate and finding customers is hard work, but when
equipped with innovative ideas and proven techniques, financial markets sales personnel can become
extremely successful. Getting an education and training is very important in every industry, sales is
certainly no exception. Those selling insurance will want begin their careers with the very best tools of the
trade and those with already established businesses that are in need of a motivational push will also gain
great benefits by researching and learning new insurance marketing tips. This article serves to give a few
helpful hints and to encourage those in this career to seek further and find the right system or push for their
business.

Key insurance marketing strategies will always include an in-depth review of the a value of follow-up. All
successful sales agents understand that consumers need to be contacted again and again in order to make a
vital connection. Also, great follow-up protocol lets the potential customer know that good, solid customer
service will be part of the over-all package. Follow-up says to a consumer that they are important, thought
of, and that their business would be greatly appreciated. The consumer today not only wants a product at a
great price, they also want a personal relationship, especially when it comes to financial system sales, such
as various insurances. Letters and phone calls are gentle reminders that the salesperson intends to serve
with his or her whole heart. And, once a sale is secured, a thank you call is strongly advised.

Those in this industry will also want to keep constant contact with existing customers, too. The competition
is fierce today, and no one wants to loose a customer to the next guy or service to come along. Clients that
have had no contact for a period of time loose loyalty. Keep birthday and anniversary postcards going into
the home on a regular basis. Keeping a name before a consumer will keep a name in their conscience. A
small gift or token of appreciation is also a means for keeping customers loyal. Christmas goody packages
or dinner out certificates will leave lasting impressions on consistent customers.

Consumers today value information. We live in the information age, and the savvy, faithful customer is one
that has knowledge about the products and services offered. The next most valuable insurance marketing
tips include the salesperson being the source of financial information for the client. Newsletters, email
updates, and notifications will keep customers informed about issues surrounding insurance and other
financial programs. There are creative ways to approach these insurance marketing strategies. Newsletters
could include contests, special interest areas for kids, safety concerns, and economic updates. There could
even be an area for customer spotlights, or encouraging testimonies of how the customers were helped
through the office. Of course, all new products and services should be showcased in any informative hard
copy or e-mail communication.

Community marketing is another great way to get advertising and name recognition. Successful networkers
join local community agencies, such as the local Chamber of Commerce, and sign up to help in activities.
This is a great way to get name and photographs listed in newspaper articles and other media avenues.
Also, charity work cannot only be greatly beneficial to the community and those served, but may also open
doors to communicating with other volunteers, who could be potential clients. People enjoy using services
extended by like-minded providers. Creating a sense of community is extremely important to insurance
pmarketing strategies.

There are other insurance marketing tips and resources available and insurance agents may find
investigating several options to be beneficial. Many marketing support companies offer email or
publication updates, sharing information and techniques that are proven to bring in success. Agents may
want to browse the Internet and find a few different insurance marketing tips programs to choose from. Not
only will these resources help keep salespersons abreast of the latest strategies, but these support programs
can also create a sense of community and an opportunity for agents to share their own struggles and
challenges with others in the field.

Perhaps the most important insurance marketing tips are tips that speak of integrity and honest business
dealings. There are so many scams in various industries today, consumers are looking for products and
services that they can trust. It is of the upmost importance that Christian insurance agents conduct their
businesses as unto the Lord, himself. God's Word is extremely clear about how He feels when there is
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