Service Quality

The service sector has assumed greater economic importance over the past decade. The latest statistics show that the sector accounts for 60 per cent of the value added in the European Economic Community (EEC). It is estimated that “doing things wrong” typically accounts for between 30 and 40 per cent of a service organization’s operating costs. The elimination of this waste and meeting customer expectations are the major challenges facing managers in the service sector. This is why quality improvement is a vital concern for many service organizations. Despite the significance of the service sector and the importance of quality‐related matters to the sector, there is a paucity of research and publications dealing with service quality. Furthermore, there is significant misunderstanding of the various aspects of service quality. Examines the salient features of service quality and its determinants and describes and discusses several service quality models. Each model represents a different approach to quality improvement. The primary aims are to enhance understanding of “service quality” and to identify models that managers in the service industry can employ to improve quality.