The Quality Challenge

Defining Quality

“Conformance to requirements” (Crosby). A subjective response by customers to the adequacy of product or service quality in meeting their expectations/needs/requirements. There is a national trophy for quality in the United States that means prestige and lots of free media exposure for winners: the Malcolm Baldrige National Quality Award. 

Five Types of Product Quality

1.      Transcendent Quality: Inherent value or innate excellence apparent to the individual
2.      Product-Based Quality: The presence or absence of a given product attribute
3.      User-Based Quality: The ability of the product to meet the user’s expectations
4.      Manufacturing-Based Quality: How well the product conforms to its design specification or blueprint
5.      Value-Based Quality: How much value each customer separately attributes to the product in calculating his/her personal cost-benefit ratio

Unique Challenges for Service Providers

Strategic Service Challenge

To anticipate and exceed customer’s expectations

Distinctive service characteristics: Customers participate directly in the production process. Services are consumed immediately and cannot be stored. Services are provided where and when the customer desires. Services tend to be labor-intensive. Services are intangible.

Defining Service Quality

Five service quality dimensions (RATER)

1.      Reliability (most important)

2.      Assurance

3.      Tangibles

4.      Empathy

5.      Responsiveness