next, Gronroos presented another fa

next, Gronroos presented another famous service quality model in 1982. He defined two types of
service quality: technical and functional. Technical quality is what a customer is receiving from a
service. He adds that the customer is interested not only in the result of service process, but also
in a process itself. Thus, functional quality is a manner in which the service is delivered, or how
a customer receives technical quality. In addition, there is image quality, i.e. corporate image (for
example, an image of a local office, how the customers perceive the service provider). Both
technical and functional quality aspects contribute to image quality. In addition, such factors as
word-of-mouth, ideology as well as marketing activities influence image quality. These types of
service quality are identical to ones Lehtinen & Lehtinen (1982) suggested. Based on these,
Gronroos (1982) presents the following model (Figure 2):

Figure 2 Perceived service quality model (Gronroos, 1982)
In the model, Gronroos (1982) defines perceived quality of a service as the outcome of an
evaluation process, where the consumer compares his/her expectations with the service he/she
perceives he/she has received (quote). Furthermore, in his later study Gronroos (1993) suggests
that measuring customer experiences provides close approximation of service quality. In 2001,
Gronroos criticizes his own concept of perceived service quality by insisting that he has never
meant for service quality to be measured, and it should not be measured at all. Instead, he claims
that in his model word service should be replaced with the word feature, i.e. there would be

technical and functional features of service, which would help to avoid a discussion about the
relationship between service quality and customer satisfaction.
Another approach to measuring service quality is systems approach by Johnson et al. (1995).
Here, a measure of overall service quality should include judgments of all dimensions of service:
inputs, processes and outputs (Figure 3), all of which play important roles in a company’s
operations. Evaluating services with systems approach is different from evaluating products as
because of service characteristics, then, in addition to outputs, a customer is exposed to and is
affected by a company’s inputs and processes.

Johnson et al. (1995) suggest that service quality depends on quality of each three dimensions:
quality of inputs, quality of processes and quality of outputs. Input quality refers to e.g.
equipment that is up-to-date, waiting areas are clean and comfortable, service personnel has
skills and knowledge and is appropriately attired. Next, process quality is a quality of interaction
between provider and customer. Often, customers are directly affected by service production
process; thus, accessibility, availability and service provider’s willingness to help are parts of
process quality. Output quality refers to the result of service provision and includes both tangible
results and intangible benefits; it means changes in the customer’s physical/mental state or a
change in something that the customer possesses. By testing systems approach, Johnson et al.
(1995) conclude that the consumers evaluate quality by considering various aspects of output,
process and input, with output being most important and input almost insignificant. Process was
important in e.g. transportation industry.

The three above-mentioned models have been revised for the purposes of this study. Moreover,
such models as SERVPERF (a variation of SERVQUAL) and Service Attribute-Process Matrix
by Gliatis and Minis (2007) were considered but are not included to this research. All the models
present a different view to service quality; however, Gronroos’s model and SERVQUAL possess
some similarities. Both of them claim that expected quality depends on a variety of factors such
as prior experiences, personal needs, word of mouth, and marketing campaigns. Moreover, both
identify perceived service quality as a gap or a difference between expected service and
perceived service. Systems approach views service quality differently, by claiming that inputs,
outputs as well as service process affect the service quality. It adds an understanding of the
importance of service components in the delivery of services. To some extent, service
expectations can be managed by a company, which will be discussed in the next chapter. All
three models is that they view service as multidimensional concept.
The perception of service quality greatly depends on the expectations the user has of the services.
Despite that several models on service quality exist, subjectivity is the bottom dimension of
service quality. Although the discussed models can offer structure to the concept of service
quality by dividing it into components and identifying the gaps between how the service is
perceived by the supplier and the customer, as such the models do not offer clear guidance in
how service quality can be measured. However, as Chang & Yeh (2002) suggest, one way to
measure service quality is to define a number of distinctive attributes to measure expected and
perceived service separately and thus identify the gap between them (expected service –
perceived service gap, according to Parasumaran et al., 1985). This approach will be used in this
study.
3.3.
Managing Customer Satisfaction and Expectations
The key aspect of customer satisfaction is to know customer expectations. Thus, Parasumaran et
al. (1991) claim that all the customers expect is the basic service that service provider is
promising to deliver, i.e. fundamental service. For example, hotel visitors expect a clean and
secure room and polite staff. Airline customers want to travel to their destination safely and

without delays. Price often raises customer expectations, and if the customers pay more than
average price, they want more and better services, so as the authors discuss, the price should
match the level of service that is delivered.
Furthermore, Parasumaran et al. (1991) categorize customer service expectations into five
service dimensions: reliability, tangibles, responsiveness, assurance and empathy. Reliability is
concerned with an outcome of a service, whereas the rest of dimensions are concerned with
service process. The authors note that while reliability is a key in meeting customer expectations
(i.e. deliver the result as promised, such as clean hotel room or timely flight to destination),
process dimensions are a key in exceeding customer expectations. Here, it can be argued that
whereas such carriers like Finnair and Ryanair provide the same service (air transportation) and
the same service outcome is expected (a customer reaches final destination), the process of
delivering a service is completely different. Finnair balances higher price with more and better
services (as a full-network carrier, as discussed in chapter 2.2.1), whereas Ryanair charges
significantly less but provides only the minimum number of services, balancing the expectations
with the price (low cost carrier). Service quality in those airlines will be perceived differently as
well as the customer expectations and perceptions will differ. Such dual nature of service quality
can influence its understanding and management.
Service experience is perception of reality, with prior experiences being essential (Chang & Yeh,
2002, also Gronroos, 1982 and Parasumaran et al., 1985). Thus, customer attitude towards the
services depends on the following (Chang & Yeh, 2002):
Their beliefs about the features (or attributes) that they associate with the service
(previous experiences, beliefs),
Weight of attributes (relative importance of each attribute).
In addition, Jones & Sasser (1995) identify the following service quality elements:
basic elements of a product or a service (core element, what customers expect to be
delivered from all service providers),
basic support services (e.g. customer assistance or tracking of an order),