A Critical Evaluation of the Service Quality Strategies at Abc Holdings, Sri Lanka

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The conclusion of this research will be important for ABC Holding as well as other real estate development business organizations to make an in- depth analysis about their existing strategies for service quality, identify the gaps for better service quality practice with existing practice and identify new strategies for better service quality. The dependability of real estate development industry mainly relies on the service quality. To build better customer retention rates, the business service quality is an important aspect like in any other industry. The research gap will help answer the research problem of “What service quality management is significant for ABC Holing to satisfy their customers?” The researcher has used deductive research approach as quantitative as well as qualitative research tools used to analysis the primary collected data via case study and survey method.

This research report consists of six chapters. Chapter two has been provided a literature review and a case study background to identify the theoretical and applied context of the study. Chapter three includes a comprehensive methodology for data collection as well as an analysis section. Key findings have been presented through chapter four. Chapter five focuses on key implications and recommendations. The final chapter concludes the paper.

2.0 Orientation

2.1 Literature review

Customer is the cornerstone of a successful business. Service quality should be maintained to keep the customer satisfied. If the customer is satisfied about the service quality among other things, they will keep returning for future transactions. Modern customers are exposed and aware about the service quality that they should expect as much as they are aware about the quality of physical products (Peppers et al., 1995). Although the complex nature of customers make it difficult to understand their behavior in the market place, high service quality remains a common factor to ensure customer satisfaction. The fact that a customer cannot experience a service based on the nature of the product such as apartment purchase which is sold off the plan, it is important for a service company to live up to the expected quality standards from the beginning of the purchasing process itself (Dick et al,, 1994).

Gronroos proposed the technical and functional quality model (1984) to understand the customer expectation and perception (Seth, Deshmukh & Vrat, 2005). He introduced three qualities of dimensions: functional, technical and image (Gronroos, 1984). Technical quality means what customer receives from “his/her interaction with the service firm and is important to him/her and to his/ her evaluation of the quality of service” (Seth et al, 2005). Functional quality means how the customer gets the above mentioned technical outcome. I mage is made up of technical and functional factors as well as company “traditions, ideologies, word of mouth, pricing and public relationships” (Seth et al, 2005).

Parasuraman, Zeithaml and Berry (1985) identified functional dimension in more detailed manner in ten service quality determinants: access, courtesy, communication, responsiveness, competence, credibility, reliability, understanding, security and tangibility. The following list was extracted from A Conceptual Model of Service Quality and Its Implications for Future Research by Parasuraman et al (1984):

- Reliability- involves consistency of performance and dependability. It means that the firm performs the service right the first time; it also means that the firm honours its promises.

- Responsiveness- concerns the willingness or readiness of employees to provide service. It involves timeliness of service.

- Competence- means possession of the required skills and knowledge to perform the service.

- Access- involves approachability and ease of contact.

- Courtesy- involves politeness, respect, consideration, and friendliness of contact personnel.

- Communication- means keeping customers informed in language they can understand and listening to them. It may mean that the company has to adjust its language for different consumers—increasing the level of sophistication with a well-educated customer and speaking simply and plainly with a novice.

- Credibility- involves trustworthiness, believability, honesty. It involves having the customer's best interests at heart.

- Security- the freedom from danger, risk, or doubt.

- Understanding/knowing the customer- involves making the effort to understand the customer's needs.

- Tangibles- include the physical evidence of the service such as physical facilities and appearances.

Parasuraman et al (1985) proposed that “service quality is a function of the differences between expectation and performance along the quality dimensions” (Seth et al, 2005). The team came up with a model that is known as SERVQUAL as well as the gaps model. According to them, there are five gaps that exist when the expectations and perceptions of service quality are not matched.

- Gap between consumer expectation and management perception

- Gap between management perception and service quality specification

- Gap between service quality specification and service delivery

- Gap between ervice delivery and external communication

- Gap between expected service and experienced service (Parasuraman et al, 1984)

Customer relationship management considers it important to build relationships with the customers for a longer period of time. Customers concern themselves with failures and reliability of the product. They compare the cost with the satisfaction (utility) they receive from consumption of the product or services. However, it should be noted that factors affecting purchase decisions might be different to each other with the nature of product they purchase, industry and time (Peppers et al, 1995). On the other hand quality is un-measured, as different aspects will be affected to determine the quality of a product or service. It can be defined the quality management as a total organizational approach that makes quality of service as perceived by the customer, the number one driving force for the operation of the business (Barber and Goodman 2011).

The difference of manufacturing business