REVIEW QUESTIONS

LECTURE NO. 2: Service Quality and Customer Satisfaction

1. Explain what is meant by service quality and why it is important for businesses to measure it.
SOLUTION
Service quality refers to the level of satisfaction that customers experience when they interact
with a business's services. It is important for businesses to measure service quality because it
directly impacts customer satisfaction, loyalty, and retention. In addition, high levels of service
quality can lead to positive word-of-mouth recommendations and increased profits. Measuring
service quality can help businesses identify areas where they need to improve and make
necessary changes to meet customer expectations and enhance the overall customer experience.

2. a) How can businesses use the SERVQUAL model to improve service quality? (10
Marks)
b) Provide two examples of how the model could be applied in a real-world business setting.
(10 Marks)
SOLUTIONS
1. a) Businesses can use the SERVQUAL model to improve service quality by measuring and
evaluating five dimensions of service quality: tangibles, reliability, responsiveness,
assurance, and empathy. This model allows businesses to identify specific areas where
they need to improve and make necessary changes to meet customer expectations and
enhance the overall customer experience.
b) Two examples of how the SERVQUAL model could be applied in a real-world business
setting are:
1. A hotel chain uses the SERVQUAL model to measure the quality of its services. Through
customer surveys, the hotel identifies that customers rate the tangibles dimension (e.g.,
physical appearance of hotel, cleanliness, and comfort of rooms) lower than the other
dimensions. Based on this feedback, the hotel makes necessary changes such as
upgrading its furniture and fixtures, improving housekeeping standards, and enhancing
the overall appearance of the hotel to meet customer expectations and improve service
quality.
2. A telecommunications company uses the SERVQUAL model to measure the quality of
its customer service. The company identifies through customer surveys that customers
rate the responsiveness dimension (e.g., promptness in answering customer queries, speed
of service delivery) lower than the other dimensions. Based on this feedback, the
company makes necessary changes such as hiring more customer service representatives,
implementing better training programs, and improving its response time to customer
queries to meet customer expectations and improve service quality.
3. a) Critically evaluate the strengths and weaknesses of the SERVQUAL model. (10
Marks)
b) What are some of the limitations of using this model to measure service quality? (10
Marks)
SOLUTION
Q3: a) The SERVQUAL model is a widely used tool for measuring service quality, and it has
several strengths and weaknesses. One of the strengths of the model is its ability to
measure service quality from the perspective of customers, which can provide valuable
insights for businesses looking to improve their services. The model also identifies five
dimensions of service quality (tangibles, reliability, responsiveness, assurance, and
empathy), which can help businesses identify specific areas where they need to improve.
However, the SERVQUAL model also has some weaknesses. For example, it is based on
the assumption that customers have clear expectations about service quality, which may
not always be the case. Additionally, the model relies heavily on survey data, which may
not always accurately reflect customers' true perceptions of service quality.
b) Some of the limitations of using the SERVQUAL model to measure service quality
include the potential for response bias in survey data, the difficulty of comparing service
quality across different industries, and the fact that the model does not take into account
the unique characteristics of different types of services

4. a) Explain the role of information technology (IT) in service marketing. (6

Marks)
b) Why is it important for businesses to leverage IT in their service marketing strategies?
(10
Marks)
SOLUTION
Q4: a) Information technology (IT) plays a crucial role in service marketing, as it can be used to
enhance customer experiences, improve operational efficiency, and facilitate
communication between businesses and their customers. IT can be used to automate
processes, create personalized experiences for customers, and provide real-time feedback
on service performance.
b) It is important for businesses to leverage IT in their service marketing strategies because
it can help them stay competitive in an increasingly digital world. By using IT to enhance
customer experiences, businesses can differentiate themselves from their competitors and
build stronger customer relationships. Additionally, IT can help businesses improve their
 operational efficiency, reduce costs, and increase revenue by enabling them to deliver
services more effectively and efficiently.

5. a) Discuss the benefits and challenges of using social media as a tool for service
marketing. (8
Marks)
b) How can businesses use social media effectively to engage with customers and promote
their services? (10
Marks)