The Service-Profit Chain: Creating External Service Quality by Managing Internal Service Quality

Tjahyadi, Rully Arlan and Kristiawan, Allen (2008) The Service-Profit Chain: Creating External Service Quality by Managing Internal Service Quality. In: Konferensi Nasional Forum Manajemen Indonesia "Manajemen: Up 2 Date), 10 November 2008, Surabaya.

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Competition intensity has led many service business to seek profitable ways in achieving competitive advantage. One of strategy in getting service business success is the delivery of high service quality. The obstacle which is faced by service business is the absence of objective dimensions in measuring service quality. Indeed, service quality measurement different with goods quality measurement. In goods, quality can be measured objectively by such indicator as durability. Unlike service, quality is measured by customers’ perceptions. The criteria used by customers in assessing service quality is model SERVQUAL, which include tangibility, reliability, responsiveness, assurance, and empathy. High commitment in delivering service quality based in those five dimensions can eliminate quality gaps and can influence customer satisfaction, customer loyalty, and profitability. This model is more concentrated to execellent service performance parameter or measurement. In delivering execellent service performance, firm has to put the service into a system by managing internal customer, i.e. employee. This concept is known as service-profit chain that explain the relationship between employee satisfcation by increasing internal service quality and profitability by developing customer loyalty. This paper type is conceptual paper that explain the importance of managing internal service quality as foundation in delivering execellent external service quality.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Service-Profit Chain; External Service Quality; Internal Service Quality; Quality Gaps; Five Dimensions of Service Quality
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Depositing User: Perpustakaan Maranatha
Date Deposited: 19 Feb 2018 07:56
Last Modified: 16 Oct 2018 09:00

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