Skip to main content
Log in

A measurement model for service capability from the customer perspective

  • Theoretical article
  • Published:
Service Business Aims and scope Submit manuscript

Abstract

This study develops a model to construct three quantitative indices for service capabilities from the customer perspective. The concept is derived from process capability indices which have been widely used to measure process capability and performance in manufacturing. This model expands their use in services by incorporating Taguchi’s quadratic loss function, zone of tolerance, and three-factor theory. To demonstrate the efficacy of the proposed indices, a case study of a telecom business was performed to assist the case firm in realizing the service capability of key factors for improving future service quality.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

References

  • Anderson J, Gerbing D (1988) Structural equation modeling in practice: a review and recommended two-step approach. Psychol Bull 103(3):411–423

    Article  Google Scholar 

  • Anderson EW, Mittal V (2000) Strengthening the satisfaction-profit chain. J Serv Res 3(2):107–120

    Article  Google Scholar 

  • Berman B (2005) How to delight your customers. Calif Manag Rev 48(1):129–151

    Article  Google Scholar 

  • Berry LL, Parasuraman A (1991) Marketing services: competing through quality. The Free Press, New York

    Google Scholar 

  • Bhattacharya SK, Rahman Z (2004) Capturing the customer’s voice, the centerpiece of strategy making: a case study in banking. Eur Bus Rev 16(2):128–138

    Article  Google Scholar 

  • Brandt DR (1988) How service marketers can identify value-enhancing service element. J Serv Mark 2(3):35–41

    Article  Google Scholar 

  • Chen CY (2008) A study on process capability index applied to banking service. J Am Acad Bus Camb 14(1):77–85

    Google Scholar 

  • Chen KS, Huang ML, Li RK (2001) Process capability analysis for an entire product. Int J Prod Res 39(17):4077–4087

    Article  Google Scholar 

  • Chuang PT (2000) The application of quality function to evaluate quality performance for domestic airline services. Commer Manage Q 1(1):1–16 (in Chinese)

    Google Scholar 

  • Eng TY (2008) E-customer service capability and value creation. Serv Ind J 28(9):1293–1306

    Article  Google Scholar 

  • Fuller J, Matzler K (2008) Customer delight and market segmentation: an application of the three-factor theory of customer satisfaction on life style groups. Tour Manage 29(1):116–126

    Article  Google Scholar 

  • Fynes B, Deburca S (2005) The effects of design quality on quality performance. Int J Prod Econ 96(1):1–14

    Article  Google Scholar 

  • Hafeez K, Zhang YB, Malak N (2002) Determining key capabilities of a firm using the analytic hierarchy process. Int J Prod Econ 76(1):39–51

    Article  Google Scholar 

  • Hallowell R, Schlesinger LA, Zornitsky J (1996) Internal service quality, customer and job satisfaction: linkages and implications for management. Hum Resour Plan 19(2):20–31

    Google Scholar 

  • Herzberg F, Mausner B, Snyderman BB (1959) The motivation to work. Wiley, New York

    Google Scholar 

  • Heskett JL, Jones TO, Loveman GW, Sasser WE, Schlesinger LA (1994) Putting the service-profit chain to work. Harv Bus Rev 72(2):164–174

    Google Scholar 

  • Johnston R (1995) The zone of tolerance: exploring the relationship between service transactions and satisfaction with the over-all service. Int J Serv Ind Manag 6(2):46–61

    Article  Google Scholar 

  • Kano N, Seraku N, Takahashi F, Tsuji S (1984) Attractive quality and must-be quality. Hinshitsu J Jpn Soc Qual Control 14(2):39–48 (in Japanese)

    Google Scholar 

  • Kennedy JR, Thirkell PC (1988) An extended perspective on the antecedents of satisfaction. J Consumer Satisf Dissatisfaction Complain Behav 1:2–9

    Google Scholar 

  • Kethley RB, Waller BD, Festervand TA (2002) Improving customer service in the real estate industry: a property selection model using Taguchi loss functions. Total Qual Manag 13(6):739–748

    Article  Google Scholar 

  • Kline RB (1998) Principles and practice of structural equation modeling. Guilford Press, New York

    Google Scholar 

  • Kureková E (2001) Measurement process capability—trends and approaches. Meas Sci Rev 1(1):43–46

    Google Scholar 

  • Lai KH (2004) Service capability and performance of logistics service providers. Transp Res E 40(5):385–399

    Article  Google Scholar 

  • Leung BPK, Spiring FA (2004) Some properties of the family of inverted probability loss functions. Qual Technol Quant Manage 1(1):125–147

    Google Scholar 

  • Li MH (2003) Quality loss functions for the measurement of service quality. Int J Adv Manuf Technol 21(1):29–37

    Article  Google Scholar 

  • Liang SK, Hung YH, Chen KS (2001) Using the signal-to-noise ratio to evaluate the tellers’ performance in the banking system. Adv Appl Stat 1(2):133–148

    Google Scholar 

  • Linn R, Tsung F, Ellis LWC (2006) Supplier selection based on process capability and price analysis. Qual Eng 18(2):123–129

    Article  Google Scholar 

  • Liu WH, Zhang W (2009) A study on the supply chain’s service process capability index based on service blueprinting. Int Conf Inf Manage Innov Manage Ind Eng 4:568–571

    Google Scholar 

  • Lobo AC (2009) Zone of tolerance as an effective management tool to assess service quality in Singapore’s stockbroking industry. Serv Mark Q 30(1):39–53

    Article  Google Scholar 

  • Lovelock CH (1996) Service marketing, 3rd edn. Prentice-Hall, Englewood Cliffs

    Google Scholar 

  • Lu CS, Yang CC (2010) Logistics service capabilities and firm performance of international distribution center operators. Serv Ind J 30(2):281–298

    Article  Google Scholar 

  • Matzler K, Hinterhuber HH (1998) How to make product development projects more successful by integrating Kano’s model of customer satisfaction into quality function deployment. Technovation 8(1):25–38

    Article  Google Scholar 

  • Matzler K, Sauerwein E (2002) The factor structure of customer satisfaction: an empirical test of the importance grid and the penalty-reward-contrast analysis. Int J Serv Ind Manage 13(4):314–332

    Article  Google Scholar 

  • Matzler K, Hinterhuber HH, Bailon F, Sauerwein E (1996) How to delight your customers. J Product Brand Manag 5(2):6–18

    Article  Google Scholar 

  • Matzler K, Bailom F, Hinterhuber HH, Renzl B, Pichler J (2004) The asymmetric relationship between attribute-level performance and overall customer satisfaction: a reconsideration of the importance-performance analysis. Ind Mark Manage 33(4):271–277

    Article  Google Scholar 

  • Morash EA, Lynch DF (2002) Public policy and global supply chain capabilities and performance: a resource-based view. J Int Mark 10(1):25–51

    Article  Google Scholar 

  • Nadiri H (2011) Customers’ zone of tolerance for retail stores. Serv Bus 5(2):113–137

    Article  Google Scholar 

  • Nadiri H, Kandampully J, Hussain K (2009) Zone of tolerance for banks: a diagnostic model of service quality. Serv Ind J 29(11):1547–1564

    Article  Google Scholar 

  • Nie W, Kellogg DL (1999) How professors of operations management view service operations. Prod Oper Manage 8(3):339–355

    Article  Google Scholar 

  • Nunnally JC (1978) Psychometric theory, 2nd edn. McGraw-Hill, New York

    Google Scholar 

  • Oliver RL (1997) Satisfaction: a behavioral perspective on the customer. McGraw-Hill, New York

    Google Scholar 

  • Palmer K, Tsui KL (1999) A review and interpretations of process capability indices. Ann Oper Res 87(1):31–47

    Article  Google Scholar 

  • Pan JN, Kuo TC (2010) Development of a new key performance index and its interval estimation for measuring service quality. Ind Manage Data Syst 110(6):823–840

    Article  Google Scholar 

  • Parasuraman A, Zeithaml VA, Berry LL (1985) A conceptual model of service quality and its implications for future research. J Mark 49(4):41–50

    Article  Google Scholar 

  • Parasuraman A, Zeithaml VA, Berry LL (1994) Reassessment of expectations as a comparison standard in measuring service quality: implications for further research. J Mark 58(1):111–124

    Article  Google Scholar 

  • Ray G, Barney JB, Muhanna WA (2004) Capabilities, business processes, and competitive advantage: choosing the dependent variable in empirical tests of the resource-based view. Strateg Manag J 25(1):23–37

    Article  Google Scholar 

  • Rogério PL, Pereira ZL (2007) Process capability in services. Int J Qual Reliab Manage 24(8):800–812

    Article  Google Scholar 

  • Taguchi G (1986) Introduction to quality engineering. Asian Productivity Organization, Tokyo

    Google Scholar 

  • Taner T, Antony J (2006) Applying Taguchi methods to health care. Leadersh Health Serv 19(1):26–35

    Article  Google Scholar 

  • Tian Y, Jia Y, Sun H, Li D, Yang Y, Malik SA (2012) The moderating effect of service capability on the relationship between service delivery and business performance of manufacturing companies. Afr J Bus Manage 6(6):2169–2180

    Google Scholar 

  • Ting SC, Chen CN (2002) The asymmetrical and non-linear effects of store quality attributes on customer satisfaction. Total Qual Manag 13(4):547–569

    Article  Google Scholar 

  • To WM, Tam JFY, Cheung MFY (2012) Explore how Chinese consumers evaluate retail service quality and satisfaction. Serv Bus 1–22. doi:10.1007/s11628-012-0149-7

  • Vanniarajan T, Gurunathan P (2009) Service quality and customer loyalty in cellular service market: an application of SEM. J Mark Commun 5(2):45–54

    Google Scholar 

  • Venter PF, Dhurup M (2005) Consumer perceptions of supermarket service quality: scale development and validation. S Afr J Econ Manag Sci 8(4):424–436

    Google Scholar 

  • Walker J, Baker J (2000) An exploratory study of a multi-expectation framework for services. J Serv Mark 14(5):411–431

    Article  Google Scholar 

  • Wang FK, Du T (2007) Applying capability index to supply chain network. Total Qual Manag Bus Excel 18(4):425–434

    Article  Google Scholar 

  • Zeithaml VA, Berry LL, Parasuraman A (1988) Communication and control processes in the delivery of service quality. J Mark 52(2):35–48

    Article  Google Scholar 

  • Zeithaml VA, Berry LL, Parasuraman A (1993) The nature and determinants of customer expectations of service. J Acad Mark Sci 21(1):1–12

    Article  Google Scholar 

  • Zhao M, Droge C, Stank TP (2001) The effects of logistics capabilities on firm performance: customer-focused versus information-focused capabilities. J Bus Logist 22(2):91–107

    Article  Google Scholar 

  • Zhao FN, Tang SL, Yang F, Xu QL (2007) Telecommunication service process capability index. J Beijing Univ Posts Telecommun 30(6):126–130 (in Chinese)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Kun-Tzu Yu.

Appendix

Appendix

Questionnaire used for the case study

This survey ascertains your perception of service performance of the ISP relative to your expectations. Please consider the two different levels of expectations as follows:

  • Adequate service level the minimum level of service performance acceptable to you.

  • Desired service level the level of service performance you desire.

For each of the following service items, please indicate

(a):

Your adequate service level by checking one of the numbers in the first column;

(b):

Your desired service level by checking one of the numbers in the second column;

(c):

Your perception of ISP service performance by checking one of the numbers in the third column

Service factors

My adequate service level

My desired service level

My perception of service performance

Low High

Low High

Low High

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Tangibles Physical facilities, equipment, appearance of personnel

 Q1: Maintain stable quality web function

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q2: Receptionists have a neat appearance

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q3: Provide online service that is user friendly

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q4: Provide a comfortable environment for waiting customers in service counter

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

Reliability Ability to perform the promised service consistently and accurately

 Q5: Personnel working on your problem were able to understand it clearly even though not able to resolve it immediately

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q6: Perform the services correctly the first time

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q7: Provide consistent services

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q8: Clearly explain charges related to service

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q9: Provide quality service based on my needs

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

Responsiveness Willingness to help customers and provide prompt service

 Q10: Employees have high adaptability

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q11: Provide prompt service

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q12: Follow up service questions regarding personal satisfaction with problem resolution

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q13: Provide convenient service hours

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

Assurance Knowledgeable and courteous employees and their ability to inspire trust and confidence

 Q14: Fully understand my demands

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q15: Employees have knowledge to answer my questions

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q16: Inform me when services will be performed

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q17: Assure users of confidentiality of personal information

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

Empathy Caring, individualized attention given to customers

 Q18: Provide individual service according to my demands

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q19: Courteous manners while managing complaints

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 Q20: Provide recommendations based on my interests

□ □ □ □ □

□ □ □ □ □

□ □ □ □ □

 In general, how satisfied are you with overall service performance?

  

□ □ □ □ □

Rights and permissions

Reprints and permissions

About this article

Cite this article

Yu, KT. A measurement model for service capability from the customer perspective. Serv Bus 7, 563–582 (2013). https://doi.org/10.1007/s11628-012-0180-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11628-012-0180-8

Keywords

Navigation