Applying Systems Thinking to a Strategic Simulation of Service Quality

While service quality is important, it remains an abstract construct that is difficult to define and measure. In this paper, we propose that service quality be viewed as the final outcome of intertwined service delivery processes that involve the interactions of complex non-linear service sub-systems. Various sub-systems were first identified and a simulation model was subsequently developed to allow a detailed examination of the effects of their interactions. The model shows that the systems thinking methodology is effective for capturing and understanding the complex nature of service quality. Many of the criticisms of the prevalent service quality measure, SERVQUAL, are due to the inherent delays and feedback loops. Because of an embedded reinforcing loop, the only equilibrium state for the service delivery system is when the customer’s expectation equals to perception. This has interesting implications since much of the literature advocate the need for service providers to outperform their customers ’ expectations. In spite of the growing importance of service quality (Qualls & Rosa, 1995), it remains an abstract and elusive construct that is difficult to define and measure. It