In business and marketing products marketed by a company may be classified broadly as goods and services.
The quality of goods is generally defined in terms of the physical characteristics of the product or the goods marketed.
Companies guarantee the quality of the product by providing free repair warranty.
However, it is not possible to define quality of services in terms of physical characteristics alone.
Quality of service is judged by the customers on many different dimensions in addition to the physical characteristics associated with the service.
There are five aspects or dimensions of service which are found to be very important in determining customer perception of service quality.
These are:
Reliability: The extent to which the service performed matches implicit or explicit promises made by the service provider regarding the nature of service.
Responsiveness: The willingness to help the customer promptly in case of special and unforeseen requirements.
Assurance: The extent to which the service provider and the staff is able to inspire trust and confidence
Empathy: This is being able to understand the needs of the customer as an individual and meet the special requirements of the customer.
Tangibles: This refers to the physical characteristics of facilities, equipment and consumable goods.
The company are actively working with the claims of customers.
It costs much less to keep an existing customer than to win a new customer, so retaining existing customers is more profitable for business.