Liqui-Gas Enjoys a Lesson in Service Quality Case - Leadership Assignment Help

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Case  

There was a puzzled look on the face of Jan Smeets, European Marketing Manager for Liqui-Gas Gmbh, who  was pondering the latest market research report to arrive from their research agency. In addition to the regular  report on the state of the market – size, growth rate, segment size, competitor market shares and so on –  at the urging of the Global Marketing Director, Jan had specially commissioned the agency to do a service  quality report for Liqui-Gas. Liqui-Gas concentrates on the industrial market for liquefied petroleum gas (LPG).  Jan’s major customers were in the manufacturing, construction and agricultural industries. LPG is used in  these industries for such things as welding, space heating, fruit and grain drying, and manufacturing aerosols.  Jan had never previously given a great deal of thought to whether these customers were concerned about  customer service. They were, after all, business-people, and Jan assumed that they would be concerned  about the price, the quality and the delivery arrangements for the product, but not much else. Indeed, if they  got the right quality of product, at the right price, in the right place and at the right time, Jan had thought that  was about all he had to worry about. However, his research agency seemed to think there was more to it than  that. Jan continued to read the report.  

The methodology we have applied to understand customers’ beliefs about the service quality they are  receiving from Liqui-Gas is the SERVQUAL approach. This is the best-established approach to service  quality measurement, having originally been developed by American professors Parasuraman, Zeithaml  and Berry in the 1980s and successfully applied to the measurement of service quality in a wide range  of industries since then. The basic principle of the SERVQUAL approach is to measure service quality as  the gap between customer perceptions of a company’s actual performance and customer expectations of  the company’s performance. Simply, service quality is defined as customer perceptions of service minus  customer expectations of service. Service quality is usually measured along five dimensions.  

• Reliability: the ability to deliver a promised service dependably and promptly.  

• Assurance: the knowledge and courtesy of employees, and their ability to inspire trust and  confidence.  

• Tangibles: physical aspects of service delivery, such as equipment and facilities.

• Empathy: providing caring and individual attention to customers.  

• Responsiveness: the willingness to help the customer and provide prompt service.  

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