Track: Operations Management

Abstract

In the service industry, service quality is used by organisations to differentiate themselves from other organisations that are competing for the same purpose or goal. This however in the end will result in the increase of competition. Gaining a competitive advantage is what all organisations want to achieve. And there are ways to achieve competitive which will be discussed and explained in this research. Organisations need to understand the relationships linked to services quality, for example the relationship between service quality and customers satisfaction and the relationship between service quality, customer satisfaction and customer loyalty. Organisations need to make sure that their employees are satisfied with the work that they doing as this result in these employees being productive and motivated which is the key for achieving profitability and success in the organisation. In order to satisfy employees, managers of any organisation should improve their internal customers first by focusing on communication, reward and recognition, leadership support and factors that will keep employees satisfied. This will result in better quality services provided to the external customer. This will create a sustainable competitive advantage and lead to profitability.