The aim of this essay is to review the problems faced with the measurement of quality in the services industry and to suggest strategies an operations manager could employ to resolve these issues.
             The essay starts by focusing on the definitions and dimensions of service quality. Drawing on the wealth of service quality research, it identifies the inherent problems that hamper the assessment of service quality. Some of the techniques that are used to measure service quality are discussed, while attempting to highlight possible strategies to overcome these problems. The essay concludes with a summary of the main issues and suggestions towards resolving these problems facing the measurement of service quality.
             IMPORTANCE OF SERVICE QUALITY MEASUREMENT
             Improving service quality is of paramount importance to many organizations for a number of reasons. It is seen to be the answer in gaining a competitive edge, (Parasuraman, 1995; O'Neill et al, 2001), assisting in increasing profitability (Phillip and Hazlett, 1997a) and is viewed as a major strategic variable in developing and maintaining fruitful and prosperous relationships in different areas of marketing. Further, service quality measurement also facilitates inter-personal, intra-organizational and inter-organizational service encounters (Svensson, 2002). Indeed, in the intensifying competition faced by many businesses in today's changing global environment, superior quality is seen as a profitable way of achieving efficiency and competitive differentiation (Mei et al, 1999) as well as gaining and maintaining market leadership (Kandampully and Manguc, 2000). Measurement of service quality also enables effective decision making by providing the necessary information (Webster and Hung, 1994), boosts repeat business by positive word of mouth (Wirtz, 2001), and is viewed as a criterion for market entry (Galloway, 1998).
             However, despite the apparent importance placed on service qual...