Service quality (SQ), in its contemporary conceptualisation, is a comparison of perceived expectations (E) of a service with perceived performance (P), giving rise to the equation SQ = P − E.[1] This conceptualistion of service quality has its origins in the expectancy-disconfirmation paradigm.[2]
A business with high service quality will meet or exceed customer expectations whilst remaining economically competitive.[3] Evidence from empirical studies suggests that improved service quality increases profitability and long term economic competitiveness. Improvements to service quality may be achieved by improving operational processes; identifying problems quickly and systematically; establishing valid and reliable service performance measures and measuring customer satisfaction and other performance outcomes.[3]