Thursday 29 December 2011

Assessing Service Quality Dimensions of Standard Chartered Bank

Service Quality:
The service quality means to customer’s satisfaction, which leads to customer loyalty, considerable practitioner interest has focused on programs to improve service quality. Service quality involves a comparison of expectations with performance. Service quality is a measure of how well a delivered service matches the customers’ expectations.

"Service quality is a focused evaluation that reflects the customer's perception of specific dimensions of service: reliability, responsiveness, assurance, Empathy, tangibles. Service quality affects customer satisfaction by providing performance. For example, if consumers believe they have entered the McDonald's restaurant, they will get food, service, high quality everywhere the same, no matter the location of the restaurant.

Service Quality Dimensions:
Customers do not perceive quality in a unidimensional way. The dimensions of service quality have been identified through the pioneering research of Parsu Parasuraman, Valarie zeithaml, and leonard Berry. After extensive research, they found five dimensions that customers use when evaluating service quality. They named their survey instrument SERVQUAL.

Providers get the SERVQUAL dimensions right, customers will hand over the keys to their loyalty. Because they’ll have received service excellence. Each of the 5 Service Quality Dimensions makes an extra addition to the level and quality of service which the company offers their customers. It also makes the service far more unique and satisfying.

The five SERVQUAL dimensions are:
o Reliability: Ability to perform the promised service dependably and accurately.
o Responsiveness: Willingness to help customers and provide prompt services.
o Assurance: Employees knowledge and courtesy and their ability to inspire trust and confidence.
o Empathy: caring, individualized attention given to customers.
o Tangibles: appearance of physical facilities, equipment, personnel, and written materials.

Customers’ expectations and perceptions are measured across these five dimensions. These five dimensions help to better visualize and analyze the services provided to customers. They make the term “service” less ambiguous.
Dimension 1- Reliability; Delivering on promises
Reliability is defined as the ability to perform the promised service dependably and accurately. In broadest sense, reliability means that the company delivers on its promises- promises about delivery, service provision, problem resolution and pricing. Customers want to do business with companies that keep their promises, particularly their promises about the service outcomes and core services attributes. Reliability is just as important as a goof first hand impression, because every customer want to know if their supplier is reliable and fulfill the set requirements with satisfaction.
Dimension 2- Responsiveness; Being willing to help
The responsiveness Service Quality Dimension refers to the willingness of the company to help its customers in providing them with a good, quality and fast service. This dimension emphasizes attentiveness and promptness in dealing with customer requests, questions, complaints and problems. Responsiveness also captures the notion of flexibility and ability to customize the service to customer needs. This is also a very important dimension, because every customer feels more valued if they get the best possible quality in the service.
Dimension 3- Assurance; Inspiring trust and confidence
Assurance is defined as employees’ knowledge and courtesy and the ability of the firm and is employees to inspire trust and confidence. This dimension is likely to be particularly important for services that customers perceive as high risk or for services of which they feel uncertain about their ability to evaluate outcomes- for example; banking, insurance, brokerage, medical and legal services. If the customers are not comfortable with the employees, there are a rather large chance that the customers will not return to do further business with the company.
Dimension 4- Empathy; treating customers as individuals
The empathy Service Quality Dimension refers to how the company cares and gives individualized attention to their customers, to make the customers feeling extra valued and special. The essence of empathy is conveying, through personalized or customized services, that customers are unique and special and that their needs are understood. Customers want to feel understood by and important to firms that provide service to them. Personnel at small services firm often know customers by name and build relationships that reflect their personal knowledge of customer requirements and preferences. When such a small firm competes with large firms, the ability to be empathetic may give the small firma clear advantage.
Dimension 5- Tangibles; representing the service physically
The tangible Service Quality Dimension refers to the appearance of the physical surroundings and facilities, equipment, personnel and the way of communication. Tangible provide physical representations or images of the service that customers, particularly new customers, will use to evaluate quality. Service industries that emphasize tangibles in their strategies include hospitality services in which the customer visits the establishment to receive the service, such as restaurants and hotels, retail stores and entertainment companies. In other words, the tangible dimension is about creating first hand impressions. A company should want all their customers to get a unique positive and never forgetting first hand impression, this would make them more likely to return in the future.

Service Quality Dimensions of Standard Chartered Bank:
Organizational Background
Standard Chartered Bank has a history of over 150 years in banking and is in many of the world’s fastest growing markets. It has an extensive global network of over 1,200 branches (including subsidiaries, associates, and joint ventures) in 56 countries in the Asia Pacific Region, Africa, the United States and the United Kingdom. As one of the world’s most international banks, Standard Chartered employs over 44,000 people, representing 89 nationalities, worldwide.

Standard Chartered Bank started its business in Bangladesh in 1948, operating its first branch in the port city of Chittagong. The bank increasingly invested in people, technology and premises as its business grew in relation to the country’s thriving economy. AT the bank have 6 offices in Dhaka, Chittagong, and Sylhey. Extensive knowledge of the market and essential expertise in a wide range of financial services underline strength to build business opportunities for corporate and institutional clients at home and abroad.

Service Quality dimensions:
Customer perception is very important factor to measure service quality. Quality of service is the main determinant factor when clients consider a bank’s standard. Standard Chartered bank, the top banking service provider in Bangladesh provide customers different dimensions of service quality such as responsiveness, tangibility, assurance, empathy, reliability and other service quality. Serving both consumer and wholesale banking customers, the bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award winning solutions. Standard Chartered Bank is committed to be the right partner to all the stakeholders by living its values in its approach to managing its people, exceeding expectations of its customers, making a difference in the communities that operate in and working with its regulators. The bank is trusted across its network for its standard of governance and corporate responsibility.

Reliability:
The reliability Service Quality Dimension refers to how the company are performing and completing their promised service, quality and accuracy within the given set requirements between the company and the customer. Standard Chartered Bank act accordingly to promises. The bank should deliver the statements, solvency certificates, debit cards and other documents at the promised time and date. They always sincere in problem solving and perform the services at time promised.

Responsiveness:
A bank service can also be measured by the willingness and readiness of service availability. The greater the bank employees responsiveness, the higher will be satisfaction. Standard Chartered Bank helps its customers by prompt and quick service, quick response to customer requests. They informed clients about various services and reduced waiting time. The banks with highly responsive employees facilitate to create strong customer bondage. If the customers find any difficulties, employees are always willing to help them. They have 24- hour contact center to help customers and provide them quick services.

Assurance:
Assurance denotes the ability of bank to make the clients assured about their deposit and transaction. It includes employees’ knowledge, courtesy and ability to convey trust and confidence to the clients and all concerned parties. Standard Chartered bank provides assurance, empathy and offer secured atmosphere for their clients enhance customer satisfied. Their employees’ behaviors inspire customers and they feel safe in transactions. Employees have the knowledge to answer customers’ questions. The bank encourages those employees who have the ability to inspire trust and confidence to build long term relationships with customers.

Empathy:
This dimension refers to the level of caring and individual attention to special customers’ concerns. Dealing with care and giving special attention make customers bonded with a bank. Standard Chartered Bank gives customers special attention; their employees understand the customers’ specific need. The bank has also suitable operating hours and place for customers.

Tangibles
This includes modern equipment, appealing decoration, employee tables and professional, well-dressed employees. It refers to the visible elements of bank and its surroundings. Standard chartered Bank use modern looking equipment. They have also smart and well dressed employees. Their well-decorated office affects the perception of clients. Customers used lounge for waiting area.

1 comment:

  1. hiii

    nice blog and good conten

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