A measurement model for service capability from the customer perspective

This study develops a model to construct three quantitative indices for service capabilities from the customer perspective. The concept is derived from process capability indices which have been widely used to measure process capability and performance in manufacturing. This model expands their use in services by incorporating Taguchi’s quadratic loss function, zone of tolerance, and three-factor theory. To demonstrate the efficacy of the proposed indices, a case study of a telecom business was performed to assist the case firm in realizing the service capability of key factors for improving future service quality.