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e is delivered. ? Expectations and Perceptions – Customers‘ prior expectations (generalized and specific service experiences) and their perception of service performance affect their satisfaction with a service. ? Satisfaction = (Perception of Performance) – (Expectation) Total Quality Management TQM Customer’s expectations concerning a product or service Customer’s perceptions concerning the product or service Previous Experience Word of mouth munications Image of product or service Customer’s own specification of quality Management’s concept of the product or service anization’s specification of quality The actual product or service Gap 1 Gap 2 Gap 3 Gap 4 A “Gap” model of Quality Source: Parasuraman, Zeithman and Berry. 1985 Total Quality Management TQM Continuous Improvement ? Philosophy that seeks to make neverending improvements to the process of converting inputs into outputs. ? Kaizen: Japanese word for continuous improvement. Total Quality Management TQM Implementing TQM ? Successful Implementation of TQM –Requires total integration of TQM into daytoday operations. ? Causes of TQM Implementation Failures –Lack of focus on strategic planning and core petencies. –Obsolete, outdated anizational cultures. Total Quality Management TQM Obstacles to Implementing TQM ? Lack of a panywide definition of quality. ? Lack of a formalized strategic plan for change. ? Lack of a customer focus. ? Poor interanizational munication. ? Lack of real employee empowerment. ? Lack of employee trust in senior management. ? View of the quality program as a quick fix. ? Drive for shortterm financial results. ? Politics and turf issues. Total Quality Management TQM Some criticisms of TQM 1. Blind pursuit of TQM programs 2. Programs may not