Service quality, profitability, and the economic worth of customers: What we know and what we need to learn

In the past, expenditures on quality have not been explicitly linked to profits because costs and savings were the only variables on which information was available. More recently, evidence about the profit consequences of service quality stemming from other sources has been found. This article synthesizes recent evidence and identifies relationships between service quality and profits that have been and need to be examined. The article views the literature in six categories: (1) direct effects of service quality on profits; (2) offensive effects; (3) defensive effects; (4) the link between perceived service quality and purchase intentions; (5) customer and segment profitability; and (6) key service drivers of service quality, customer retention, and profitability. In each category, the author identifies what is known and then suggests an agenda of relationships needing validation and questions needing answers. The article is organized around a conceptual framework linking the six topics

Customer metrics and their impact on financial performance

The need to understand the relationships among customer metrics and profitability has never been more critical. These relationships are pivotal to tracking and justifying firms’ marketing expenditures, which have come under increasing pressure. The objective of this paper is to integrate existing knowledge and research about the impact of customer metrics on firms’ financial performance. We investigate both unobservable or perceptual customer metrics (e.g., customer satisfaction) and observable or behavioral metrics (e.g., customer retention and lifetime value). We begin with an overview of unobservable and observable metrics, showing how they have been measured and modeled in research. We next offer nine empirical generalizations about the linkages between perceptual and behavioral metrics and their impact on financial performance. We conclude the paper with future research challenges

E-S-QUAL: A multiple-item scale for assessing electronic service quality

Using the means-end framework as a theoretical foundation, this article conceptualizes, constructs, refines, and tests a multiple-item scale (E-S-QUAL) for measuring the service quality delivered by Web sites on which customers shop online. Two stages of empirical data collection revealed that two different scales were necessary for capturing electronic service quality. The basic E-S-QUAL scale developed in the research is a 22-item scale of four dimensions: efficiency, fulfillment, system availability, and privacy. The second scale, E-RecS-QUAL, is salient only to customers who had nonroutine encounters with the sites and contains 11 items in three dimensions: responsiveness, compensation, and contact. Both scales demonstrate good psychometric properties based on findings from a variety of reliability and validity tests and build on the research already conducted on the topic. Directions for further research on electronic service quality are offered. Managerial implications stemming from the empirical findings about E-S-QUAL are also discussed

Alternative scales for measuring service quality: A comparative assessment based on psychometric and diagnostic criteria

Service quality measurement is an area of growing interest to researchers and managers. It is also an area characterized by debate concerning the need for measuring customer expectations and how they should be measured. Building on a synthesis of the extant literature on customer expectations and service quality measurement, this article identifies unresolved issues and develops three alternative questionnaire formats to address them. It then discusses an empirical study that evaluated the three formats in four different sectors. The article concludes with practical implications and directions for further research stemming from the study's findings

The nature and determinants of customer expectations of service

A conceptual model articulating the nature and determinants of customer expectations of service is proposed and discussed. The model specifies three different types of service expectations: desired service, adequate service, and predicted service. Seventeen propositions about service expectations and their antecedents are provided. Discussion centers on the research implications of the model and its propositions

Research Note: More on improving service quality measurement

In this note we respond to Brown, Churchill, and Peter's (1993) critique of SERVQUAL's difference-score conceptualization. We demonstrate that the claimed psychometric superiority of the alternative non-difference score conceptualization is debatable. We also argue that the SERVQUAL conceptualization offers richer diagnostics

Dimensions of treatment quality most valued by adolescent substance users and their caregivers.

Professional psychologists are increasingly encouraged to document and evaluate the quality of the treatment they provide. However, there is a significant gap in knowledge about the extent to which extant definitions of treatment quality converge with patient perceptions. The primary goal of this study was to examine how adolescent substance users (ASU) and their caregivers perceive treatment quality. The secondary goal was to determine how these perceptions align with expert-derived definitions of ASU treatment quality and dimensions of perceived quality used frequently in other service disciplines. Focus groups and individual interviews were conducted with 24 ASU and 29 caregivers to explore how participants conceptualize a quality treatment experience. Content analysis identified three major dimensions of perceived treatment quality, each of which contained three sub-dimensions: Therapeutic Relationship (i.e., Acceptance, Caring, Connection), Provider Characteristics (i.e., Experience, Communication Skills, Accessibility), and Treatment Approach (i.e., Integrated Care, Use of Structure, and Parent Involvement). Results revealed modest convergence between patient perceptions and existing definitions of quality, with several meaningful discrepancies. Most notably, the Therapeutic Relationship was the most important dimension to ASU and their caregivers, while expert-derived definitions emphasized the Treatment Approach. Implications for practicing psychologists to enhance training and supervision, quality improvement, and health education initiatives are discussed

Customer contributions and roles in service delivery

Focuses on the roles of customers in creating quality and productivity in service experiences. Presents two conceptual frameworks to aid managerial understanding and focus research efforts on customer participation. The first framework captures levels of customer participation across different types of services. The second discusses three major roles of customers in the service delivery process. Two examples of the concepts are presented ‐ one in a weight loss context and the other in a mammography screening setting. Both are based on empirical research and illustrate specific applications of customers’ roles in creating the service experience

Recommendation of an integrated index for the quality of educational services using multivariate statistics

In this work, the analysis of the surveys was carried out through a factorial analysis, which facilitates the evaluation of the validity of the selected construct for the case under study, as well as evaluating the quality of the service for each factor, with a view to determining the level of quality of the educational service, for which it integrates elements of descriptive and multivariate statistics with the management of the quality of the educational service. They are used as fundamental statistical techniques, descriptive analysis, factor analysis and analysis of variance. As a final result, it was concluded that the students of five UNITEC careers evaluated the educational service they receive as very satisfactory (4 points), highlighting the tangible elements as the most weighted factor. A significant aspect is that there are no significant differences in the perceptions of students from different careers and different sections