Service Quality

Customer Perceived value (Actual performance) - Customer Expectations

If the actual performance of the firm is more than the Expectations of customer indicated a positive sign..Firm move towards growth

If the actual performance of the firm didn't meet the expectations of the customer, indicated a negative sign, Customer switch over to other firm.

RATER Scale:

A Tool to measure the service quality

R Reliability

A Assurance

T Tangible

E Empathy

R Responsiveness

A Story to understand

X and Y running a tea stall,

X - Tea stall : Characteristics

#open the tea stall daily 5 a.m and close by night 9 p.m,

# Tasty Tea

# Give a smiling face towards the customers

# Reasonable pricing

# Helping Mind

Y - Tea stall Characteristics

# open and close the shop any time of their own,

# Taste not good always

# Different Price for different people

# Always Shouting

Now RATER scale used to measure the Service Quality

R Reliability - customer trust upto 9 p.m the tea available,

A Assurance - Customer confidential about the taste

T Tangible - Physical evidence, Tea Quantity and Quality

E Empathy - Respect and give importance to people ( smiling face)

R Responsiveness - customer believe that the immediate response from the service provider

Based on the RATER Scale results X stall get more customers..