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How are quality related characteristics different for products and services?  Quality can mean free of deficiencies or the characteristics that satisfy customer needs. In a product focused business your product has a measureable set of characteristics such as being: 

• reliable, meaning it doesn’t break down often or at all; 
• serviceable, easy to repair; and 
• durable, lasting a long time.

We are very used to hearing about product quality.  These characteristics however do not directly apply in a service focused business, i.e., banking, selling insurance or financial advice.  And some businesses like restaurants are a mix of both product and service, i.e .the product/food must be good and the service must be excellent. 

Quality related service characteristics include 

• Reliability - your service is consistently performed well, your processes are repeatable by all employees each and every time 
• Tangibles - equipment, personnel, location of the service performed all support customer satisfaction with your service
• Responsiveness - prompt willingness to give good service by all employees  
• Assurance - courteous, trustworthy, and knowledgeable providers of the service
• Empathy - satisfactory problem resolution

So in a service focused business how does quality/customer satisfaction link to profit?

We will use a chain metaphor and see that a chain of events, links, leads a quality service organization to profit and growth. 

• “The first step in the service–profit chain is internal service quality, or treatment employees receive from a company’s internal service providers (i.e., management, human resources, etc.). When employees are given responsibility and authority, they are more satisfied with their jobs. 
• In turn, satisfied employees are more apt to respect customers and treat them well. Treating customers well, the hallmark of high-quality service, leads to customer satisfaction and loyalty. 
• When customers continually come back to do business with a service provider, this leads to long-term profits and growth.”

If your business is a service provider and you wish to improve customer satisfaction and loyalty think about how to implement the quality related service characteristics discussed above.

Reference: The information in this article is discussed in depth in Chapter 18 of the textbook: MGMT 12; Williams, 2022, 2019, 12th  Edition, South-Western Cengage Learning, Boston, MA.