Service Quality Analysis: Theories, Appraisal, and Feedback Framework

This report delves into the multifaceted realm of service quality, commencing with a foundational definition and emphasizing its paramount importance in contemporary service organizations. It meticulously explores various theories and principles underpinning effective service quality management, offering a comprehensive guide for organizations seeking to enhance their practices. The report then undertakes a critical appraisal of service quality management within the context of The Park Avenue Hotel, a 4-star establishment in London, examining its service delivery practices and their impact on staff motivation and engagement. Furthermore, it culminates in the development of a customer feedback system (CFS) framework, recognizing the pivotal role of customer feedback in analyzing current service quality and guiding future improvements. The report also highlights the significance of measuring service quality to align customer expectations with actual performance, identifying key dimensions like responsiveness, assurance, tangibles, empathy, and reliability. It underscores the impact of effective service quality management on customer retention, satisfaction, and competitive advantage, while also addressing potential gaps between customer expectations and management perceptions. The report concludes with a critical appraisal of service quality management in the hotel industry, emphasizing the importance of employee engagement and the impact of service quality on guest satisfaction.

Service quality
1

Table of Contents
INTRODUCTION...........................................................................................................................3
2. Critical appraisal of management of service quality for service and its impact on current
service delivery practices on motivation and engagement of staff..............................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
2

INTRODUCTION
Service quality can be defined as comparison that customers undertake in expected quality
of services with actual performance of the service. This means what customers perceive and
expect regarding quality of service and what quality they are provided by the service
provider and comparison in this is known as service quality. Service quality in recent times
has become more important and considered subject by the service organisation, because this
has become important consideration of customers when it comes to compare service and
qualities of two or more service organisations. In order to ensure effective service quality
organisations need to maintain and manage services effectively. This report will also discuss
about service quality and different elements of service quality. This report will discuss about
different theories and principles of service quality because these can guide and suggests
organisations regarding what practices they should undertake in order to maintain and
manage quality of service. Followed by this report will also undertake appraisal of
management of service quality The Park Avenue Hotel, 4 star hotel operating in central
London. The hotel has 100 modern stylish en-suite rooms. They also have conference and
banqueting suite of three event venue spaces which are suitable for hosting conferences,
meetings, weddings and other functions. This analysis and appraisal will be followed by
producing a customer feedback system (CFS) framework. This is because feedback of
customers can play important role in analysing current service quality and what they should
do in future in order to ensure effective service quality. In tourism industry there are various
types of services which is offered to people. the services varies from business to business.
Moreover, there are various standards as well of services which is followed in delivering it.
thus, the standard vary depending on type and nature of services. they are followed in
delivering to ensure that service quality is maintained. However, on basis of those standards
outcomes are measured and then changes are made into it. besides that, there are different
theories and principles as well which of managing service quality. These theories differ
from each other. Furthermore, principles applied are different as well. they provide a
framework that how service quality needs to be maintained in delivering them.
Moreover, it is necessary to measure service quality so that it is identified whether standards
are followed in it or not. Also, it gives overview of what standards are applied and in which
stage. Usually, service quality refers to expectation of customer with comparison to company
3

performance. The organisation having high level of service quality is likely to retain customers
and gain their satisfaction. they also gain competitive advantage in market by providing high
quality services to customers.
Every consumer have their own perception of what the organization shall cater for, foremost
to the major objective of many firms; to minimize the gap between the guest perception and
expectation thus leading to the satisfied customer. It is stated that quality is an important
component of customer’s selection of hotel services. Hence, in order to maximize customer
satisfaction need to tend towards no complaint while striving to satisfy all customers. But for no
complaint it requires continuous improvement of service delivery. In this there are various
factors which are analysed and evaluated such as where the intangibility, variability and
inseparability.
1. Theory and principles of managing service quality and importance of measuring service
quality.
Management theories are consider as a concept that involves tools such as guidelines and
framework that can applied within modern firms. As professionals will also depends on the
theory called management theory, also introduced several new concepts from several
management theories. It is best suit their employees as well as firm’s culture. In quality
management leaders are the one who can establishes unity of direction as well as purpose of the
firm. It maintains as well as clears the internal environment where people can also becomes fully
involved within achieving the firm’s objective’s. Leaders are the one who can establishes
direction as well as creates the condtions where people are more engaged them to achieve the
quality objectives of the firms . leadership is the one that can provides the role model behaviours
regularly with values of the entites. Here the internal environment also includes climate,
culture ,trust, motivation management style and support. Here the leaders also consider all the
requirements of the parties that are interested such as consumers, employees, owners, local
communities, financiers and many more.
4

Principles of the management theory are as follow
To meet the requirements of the consumer is quality management as well as to strive the
consumer expectations. It can be achieved when a firm attracts as well as retains confidence of
consumers as well other interested parties on whom it can rely. Each and every aspect of
consumer interaction gives an opportunity to create more values for the consumers. Its benefit is
an increase within the consumer loyalty. It also improves consumer base.
Leadership- At all levels leaders establish unity for direction and purpose as well as create
condtions where people are engaged within accomplishing the objectives of the firm. It improves
the communication among the functions and levels of the firms. It also improves as well as
develops the ability of the firm as well as its people to deliver the desired outcomes.
Evidence based decisions making – Decisions that are relied on analysis as well as evualation of
the information and data are more likely to produce outcomes.
Decision making is one of the complex process as well as always includes several uncertainity. It
also includes sources of inputs. It is vital to understand to effect and cause the impact the
relationship as well as potential results. Infact data analysis, facts as well as evidence leads to the
greater objectivity as well as confidence within decision made. One of the benefit is that
decision making process as well as improves the efficeicncy as well as effectiveness. It also leads
to the demonstrate the effectiveness of the decisions that are made in the past.
Engagement of People
It is essential for the organization that all people are competent, empowered and
engaged in delivering value. Competent, empowered and engaged people throughout
the organization enhance its capability to create value.
Process Approach
Consistent and predictable results are achieved more effectively and efficiently when
activities are understood and managed as interrelated processes that function as a
coherent system
5 – Improvement
5

Improvement is essential for an organization to maintain current levels of
performance, to react to changes in its internal and external conditions and to create
new opportunities.
– Evidence-based Decision Making.
Decisions based on the analysis and evaluation of data and information are more
likely to produce desired results.
Decision-making can be a complex process, and it always involves some uncertainty.
It often involves multiple types and sources of inputs, as well as their interpretation,
which can be subjective. It is important to understand cause and effect relationships
and potential unintended consequences. Facts, evidence and data analysis lead to
greater objectivity and confidence in decisions made.
Relationship Management
For sustained success, organizations manage their relationships with interested parties,
such as suppliers.
Interested parties influence the performance of an organization. Sustained success is
more likely to be achieved when an organization manages relationships with its
interested parties to optimize their impact on its performance. Relationship
management with its supplier and partner network is often of particular importance
Importance of measuring service quality
There is great importance of measuring service quality. This is because it enables in finding out
customer expectations with service perception. Through that it becomes easy to identify whether
service is able ot meet expectations of customer or not. Besides that, service performance is also
analysed in it. Alongside there are several types of gaps which is identified in it. They are
defined as below
Tangible products are the one that have particular objective ways through which it can measure.
6

But when it comes to about service than there are various challenges. There were two vital
aspects that can be considered such as consumer's perception and consumer's
Expectations. Also the performance can also be analysed through five demensions that are
mention below..
Responsiveness- it focuses on the how promptly the service is capable to respond the
requirements of the consumers.
Assurance is considered as the level of the confidence of the consumer that can perform the
service more adequately.
Tangible focuses on the physical aspects that includes within rendering of the service, includes
equipment, facility that are capable of performing the services.
Empathy that can be considered as the service provider sense of understanding as well as caring
the needs of the consumer.
Reliability is considered as the capacity of the service provider to regularly gives service more
accurately and dependably
As compared to the what it was actually promised.
As these are the five dimensions that focuses on the dimensions of the service quality framework
and also provided it's importance.
In order for the service provider it needs to understand the consumer's expectations as well as
communicate more effectively with consumers all over the whole process. The expectations of
the consumer will be impacted by the communication through other external factors also.
There is also gap remains between consumer expectations as well as manager's understanding
that can also arise because of insufficient market research.
Service quality gap- here this gap refers to analyse of expected with received performance. Also,
it is identified that during whole process customer expectations were met or not
Management perception gap- here it is identified gap between customer expectations and
management understanding of that. This gap is identified by doing market research and gathering
data from customer
Quality specification gap- in this it is gap between management understanding of expectations
of customer and specifications of service quality. This enables in finding out what standards
were not followed in it.
7

Service delivery gap- here it is identified about standard of service and what actually service is
delivered.
Marketing communication gap- this occurs due to actual and promised service delivery standard.
That how communication is done in offering of services.
Perceive service quality gap- the gap between expected and perceived level of service. Thus,
these all gap are measured and identified in it. With that it becomes easy to improve it by taking
effective measures. In addition, the actual standard are measured with what is being delivered to
customers. So, it makes things easy to analyse and develop strategy that how to improve and
maintain service quality level in organization. Therefore, it gives insight about what changes are
required in service quality. In this way customer satisfaction is gained and it enables in gaining
competitive advantage within industry. If quality is not properly maintained then it will led to
decrease in customer retention and creating a poor image of firm in the market.
2. Critical appraisal of management of service quality for service and its impact on current
service delivery practices on motivation and engagement of staff
In an hotel industry the main operations is based on services. On basis of that hotel is
able to attract customer and gain customer satisfaction. Here, main purpose and goal of hotel is
to maintain quality of services so that guest needs are fulfilled. Also, the services needs to be
delivered on time so that guest satisfaction is gained and there is positive feedback from them.
However, for a manager the main role is to manage services within hotel. This needs to be done
so that its quality is maintained. Along with it, the quality is service needs to be maintained as
well. if service quality is not maintained then it results in dissatisfaction among guests and rise
in complaints as well. so, in order to do so it requires proper planning and organizing. With
that it becomes easy to ensure that service quality is maintained. However, there is inter
relationship between service quality and employee motivation. This can be said that if service
quality is high and maintained in effective way then guest gives good and positive reviews about
it. it also lead to gaining of their satisfaction and retaining of them. thus, it creates a positive
environment in hotel and enhances staff efficiency. The staff is responsible for maintaining and
delivery of service to guest. Thus, if their motivation is high then they will be able to ensure
8

service quality is maintained. But if motivation is low then it directly impact on service quality
level.
Likewise, in case study it has been stated that Park Avenue hotel operate in London since
2005. They are having 100 rooms and suites. Apart from it, in 2007 hotel started offering
conference and banqueting services as event. There are various other services which is being
offered by hotel such as gym, bar, swimming pool, etc . basically target customer is business and
leisure people. There has been a refurbishment done in hotel and it is observe that there is rise
in 100% room booking and suites. Many event are taking place in it.
Moreover, it has been analysed that the service quality management of hotel is poor.
This can be seen that there is increase in customer complaints. They are complaining about poor
service, waiting time, no apology made by staff, etc. due to that it has led to decrease in guest
and profits. Furthermore, it is stated that the manager only review complaint once in month.
Alongside, in management team is unaware about thing that customer are complaining also on
facebook page. Therefore, with rise in bookings team is not able to respond to customer
problems. Besides that, there is negative impact on poor quality service on staff. It is found that
staff turnover has increased. In addition, Park Avenue hotel hotel service culture focus on
valuing guest experience but there has been no ownership of it. this means that management
team is not accountable for customer complaint or poor service quality. However, within hotel
standards related to service quality are not properly followed. it is found that personalized
approach of calling guest 15 minute after check in to find out whether he or she is satisfied with
room allocated or not. But with rise in bookings there is no focus on applying these standards.
Also, management team is not able to enforce is in effective way. It means that these standards
are completely being ignored.
However, it is found that there has been negative impact on current delivery practices in
staff motivation. This can be identified that there is no reward scheme for staff on basis of
which reward are given to them. Also, there performance is not analysed nor they are allowed
take part or get engage in management decision making process. Besides that, there is no
empowerment of staff as they are not being valued by management. It has been evaluated that
there is only 50% staff which are employed on part time basis. The supervisors and management
team is on full time contract basis. Therefore, there is increase in staff turnover as well. in
9

addition to it, due to increase in booking there is complaints as well about minimum wage
given to them.
There is negative impact on employee morale as well because in Park Avenue hotel
bureaucratic style of management is followed. here, staff are allowed to follow specific rules and
regulations which directly impact on their working. They are not having any other option but
are bounded to follow those rules and order given by management. So, they are not allowed to
do work freely and in flexible way. Furthermore, it is stated that there is lack of empowerment
within staff.. due to that they are not allowed to engage with supervisors and management team.
So, there is negative impact on their motivation. Other than this it is found that in recruitment
there is no proper plan and method to recruit them. they employees are hired on ad hoc basis.
Here, only for particular purpose they are hired and then after attaining of it they leave. This
creates chaos and impact on staff motivation. Additionally, in context of training it is stated
found that staff is only trained of 1 week by supervisor. Besides, on the job training is given
which makes it difficult for them to understand how to perform tasks and what their job role is.
Thus, they are not given any proper theoretical knowledge about their job role and what they
have to do.
Hence, it is analysed that the current service delivery practices are not effective enough
in Park Avenue hotel. There is no proper system for booking of event and rooms. Besides, hotel
does not have a systematic way of solving complaints of guest and reviewing it so that area can
be identified where improvement is required. In addition, management team is not able to deal
with such rise in bookings and this is making them difficult to organize staff and maintain
service quality. So,, in order to complete event staff is hired on ad hoc basis and they are not
properly trained as well. thus there is no awareness as well to management team regarding what
reviews are being posted on trip advisor and facebook. So, these all have led to impact on staff
motivation. Moreover, it is stated that due to lack of workers and ineffective training provided to
them they are not able to work in effective way. Due to it service quality standards are not
followed as well. it is found that in Park Avenue hotel there is no particular method of
measuring service quality. In hotel as there was no proper service quality management thus it
affected on current service delivery practices. It has to be taken into consideration for Park
Avenue hotel so that service delivery practices are improved and quality is ensured. Moreover, it
is necessary to minimize the impact of current practices on motivation of staff. It is because it
10

will enable management team and hotel to organize bookings properly and reducing complaints
of customers. They will also be to make sure that all services standards are followed in delivery
of services. It can be seen that due to improper management of services there is negative impact
on staff motivation. They were not being valued and were hired on contract basis. Also, no
proper training was given to them on basis of their job role and training was only for 1 week.
Therefore, from case study it is analysed that there management of Park Avenue hotel is not
concerned towards service quality. They are focusing on completion of event and hotel revenue.
Furthermore, it is stated that there is lack of empowerment within staff.. due to that they are not
allowed to engage with supervisors and management team. Other than this it is found that in
recruitment there is no proper plan and method to recruit them. they employees are hired on ad
hoc basis.
Therefore, in order to improve service management Park Avenue hotel can follow
servqual model. It will enable in providing framework of how quality can be enhanced and
maintained.
The SERVQUAL instrument items consist of the following the five dimensions and are
explained below:
Reliability. This dimension denotes the potential to perform the service reliably and accurately.
Responsiveness. This dimension represents the willingness to help guests while providing
prompt service.
Tangibles. This dimension refers to the visual factors that is Physical facilities, equipment, and
appearance of employees.
Assurance. This dimension refers to employees’ awareness/knowledge of the service in addition
to courtesy and their ability to communicate trust and confidence.
Empathy. This dimension refers to the extent to which the employees care and provide personal
attention to his customers.
Create a Feedback System (CFS) framework for hotel
Customer feedback system refers to those systems with help of which organisations can
collect feedback from the customers. Companies and service organisations including hospitality
organisations now days are giving significant importance to feedbacks because they contribute in
giving knowledge about what customers are willing and expecting about services of the
organisation.
11

In order to develop and create customer Feedback System and Framework for this it is important
for The Park Avenue Hotel, why gather customers’ feedback (Priuttc, 2017). This also involves
objectives and problems that The Park Avenue Hotel is expecting to achieve by gathering
customers feedback.
A framework for customer feedback for The Park Avenue Hotel is as follows-
A.C.A.F. Customer Feedback System and Framework, this means-
 Ask customers for feedback
 Categorise the Feedback
 Act on Feedback
 Follow up with the customers who shared the feedback
Ask customers for feedback
This is one of the most important step while producing the framework for feedback
system. This involves determining what to ask customers. This involves asking questions to
customers that are related to goals of The Park Avenue Hotel. This means understanding overall
trends in customers’ satisfaction over time (Warren and Coghlan, 2017). Popular ways to
measure overall customer satisfaction involve-
Net Promoter Score
Customers in this question will ask, that are-
How likely are you to recommend The Park Avenue Hotel to a friend or colleagues?
1 2 3 4 5 6 7 8 9 10
Customer Satisfaction Score
How satisfied were you with services of The Park Avenue Hotel?
 Excellent
 Great
 Good
 Fair
12

 Poor
Collection and gathering of feedback along with determination of questions it is
important to determine method of collecting feedback. This means that through which method
The Park Avenue Hotel will collect the feedback of the customers. This means gathering
feedback and ensuring that methods and questions for feedback are accessible to customers. This
means if The Park Avenue Hotel collect feedback through form of feedback they should provide
it to customers and if they collect it through digital mediums customers should be made aware
with ways through which they can give feedback to The Park Avenue Hotel.
Categorise the Feedback
In previous step The Park Avenue Hotel has gathered responses of customers by asking
feedbacks to them through different ways. This step is concerned with developing system to
categorise feedbacks. The Park Avenue Hotel in this step needs to identify different categories to
categorise the feedback. This categorisation can be on the basis of different issues in relation
with the feedback (Omisakin, Bandara and Kularatne, 2020). The Park Avenue Hotel is a
hospitality organisations and this is why their categories are-
 Feedback related to Product (This means accommodation and food that is product for
customers). This can be further categorised in accommodation and food and any other
product offering of The Park Avenue Hotel.
 Services to customers (Hospitality and related services). This can be further categorised
in different types of services such as services, cleaning, payments, customer complaint
handling.
 Feedback related to difficulties faced by customers (this involves any kind of difficulty
that customer experienced while booking, or in connecting with the hotel).
Acting on Customers’ Feedback
This is another important step in customer feedback system. This is because collecting
and categorising customer’s feedback is only valuable when The Park Avenue Hotel acts on
these feedbacks. In order to ensure that The Park Avenue Hotel is able to effectively act on these
feedbacks, they need to create teams on the basis of different categories of the feedbacks. The
Park Avenue Hotel needs to create teams for product, service and for customer service and
13

management. Once teams have been created The Park Avenue Hotel needs to ensure that teams
can access the rights feedbacks of customers that are related to their work area. This will help
them in creating and developing strategies and planning to address these feedbacks and improve
customer satisfaction.
Following-Up on the Feedback
This means listening to responding to customers who gave feedback (Urk, 2019). This
enhances and improves trust of the customers that their feedback is considered by The Park
Avenue Hotel. This contributes in their satisfaction and loyalty of customers for The Park
Avenue Hotel. Some of the elements that improve by follow-up of the feedbacks, customers
believe that it is easy for customers to give feedback to the hotel. This also help in contributing
that voice of the customers is being heard and valued. This increases and enhances respect of the
customers towards The Park Avenue Hotel.
14

CONCLUSION
From the above it had been concluded that Service quality can be defined as comparison that
customers undertake in expected quality of services with actual performance of the service. This
means what customers perceive and expect regarding quality of service and what quality they are
provided by the service provider and comparison in this is known as service quality. Moreover,
there are various standards as well of services which is followed in delivering it. thus, the
standard vary depending on type and nature of services. they are followed in delivering to ensure
that service quality is maintained. However, on basis of those standards outcomes are measured
and then changes are made into it. besides that, there are different theories and principles as
well which of managing service quality. Moreover, it is necessary to measure service quality so
that it is identified whether standards are followed in it or not. Also, it gives overview of what
standards are applied and in which stage. Each and every aspect of consumer interaction gives an
opportunity to create more values for the consumers. Its benefit is an increase within the
consumer loyalty. It also improves consumer base. Moreover, it has been analysed that the
service quality management of hotel is poor. This can be seen that there is increase in customer
complaints. They are complaining about poor service, waiting time, no apology made by staff,
etc. However, it is found that there has been negative impact on current delivery practices in
staff motivation. This can be identified that there is no reward scheme for staff on basis of
which reward are given to them. Also, there performance is not analysed nor they are allowed
take part or get engage in management decision making process. Customer feedback system
refers to those systems with help of which organisations can collect feedback from the
customers. Companies and service organisations including hospitality organisations now days
are giving significant importance to feedbacks because they contribute in giving knowledge
about what customers are willing and expecting about services of the organisation. The Park
15

Avenue Hotel will collect the feedback of the customers. This means gathering feedback and
ensuring that methods and questions for feedback are accessible to customers.
16

17

REFERENCES
Books and journals
Omisakin, O.M., Bandara, C. and Kularatne, I., 2020. Designing a Customer Feedback Service
Channel Through AI to Improve Customer Satisfaction in the Supermarket
Industry. Journal of Information & Knowledge Management. p.2050015.
Priuttc, E., 2017. Elaboration of an external customer feedback system in a restaurant.
Urk, N., 2019. Why Customers Leave Feedback on Online Platforms: a master thesis on how to
influence the extrinsic motivation of customers to leave feedback on online
platforms (Master's thesis, University of Twente).
Warren, C. and Coghlan, A., 2017. Can the hospitality sector ask customers to help them become
more sustainable?. Progress in Responsible Tourism. p.98.
18