ABSTRACT

The challenge of evaluating service quality has been motivated by recent research that has demonstrated the significance of service quality as a central factor in business success. Service quality has consequently become a focus for any marketing strategy and high levels of service are seen as a means for an organization to achieve a competitive advantage and position itself more effectively in the market place (Lewis, 1993). Customers are also becoming more aware and critical of the alternatives on offer and rising standards of services, prompted by competitive trends, have increased customer expectations (Lewis and Mitchell, 1991). Research shows that the benefits of good service quality relate to customer loyalty and attraction of new customers, positive word-of-mouth communication, employee satisfaction and commitment, enhanced corporate image, reduced costs, and increased business performance. It has also long 140been recognized that it is particularly important for a company to understand its customers' feelings towards its services since most unsatisfied customers will not come back and, more importantly, those consumers will rarely report their complaint. Moreover a satisfied customer will usually spread the news to four customers while an unsatisfied customer will tell on average ten people. It is therefore crucial for managers to undertake studies and surveys to identify potential faults in their services.