Prestige Institute of Management, Galior.
The premise of ‘quality of service’ as the competitive edge in gaining market leadership has been well recognized both in academic research and by leading service organizations. However, it has become increasingly important for organizations to find ways, not only to reach the top, but to maintain that leadership in an ever increasing competitive market-place. In order to protect their long-term interest, service organizations are seeking ways to forge and to maintain an on-going relationship with their customers. This paper presents the changing focus of service quality from a mere competing instrument to that of the basic core of the service concept in meeting and exceeding customer expectations. It is argued that long-term superiority of a service firm is dictated by the organization's ability to maintain their relationship with the customer by offering ‘service loyalty’: a demonstration of the organization's commitment to maintain the service promise. This paper outlines how a firm's service employees develop the service, which leads to exceptional service and the ability to exceed customer expectations.