What aspect of service quality does SERVQUAL measure?

SERVQUAL is a widely recognized tool specifically designed to measure service quality by assessing the gap between customer expectations and their perceptions of the actual service received. This model operates on the premise that service quality is a critical factor in customer satisfaction and loyalty.

By focusing on the expectations of customers regarding service performance and then contrasting those expectations with their perceptions after receiving the service, SERVQUAL helps businesses identify areas for improvement. The five dimensions that SERVQUAL evaluates—tangibles, reliability, responsiveness, assurance, and empathy—further illustrate how this method gauges the overall effectiveness and quality of service delivery from the customer's point of view.

The other options do not align with the primary focus of SERVQUAL. For instance, only measuring price and cost ignores the comprehensive nature of service quality. Product design and development, while important, does not relate to service quality measurements. Lastly, market demand and supply pertain more to economic factors rather than the qualitative assessment of service delivery. Understanding this distinction aids in recognizing the importance of SERVQUAL in enhancing customer satisfaction and service excellence.