Through qualitative and empirical research, the authors find that the service quality construct conforms to the structure of a third-order factor model that ties service quality perceptions to distinct and actionable dimensions: outcome, interaction, and environmental quality. In turn, each has three subdimensions that define the basis of service quality perceptions. The authors further suggest that for each of these subdimensions to contribute to improved service quality perceptions, the quality received by consumers must be perceived to be reliable, responsive, and empathetic. The authors test and support this conceptualization across four service industries. They consider the research and managerial implications of the study and its limitations.

The authors respond to concerns raised by Parasuraman, Zeithaml, and Berry (1994) about the relative efficacy of performance-based and perceptions-minus-expectations measures of service quality. They demonstrate that the major concerns voiced by these authors are supported neither by a critical review of their discussion nor the emerging literature. Several research issues relative to service quality measurement and strategic decision making also are identified.

The authors investigate the conceptualization and measurement of service quality and the relationships between service quality, consumer satisfaction, and purchase intentions. A literature review suggests that the current operationalization of service quality confounds satisfaction and attitude. Hence, the authors test (1) an alternative method of operationalizing perceived service quality and (2) the significance of the relationships between service quality, consumer satisfaction, and purchase intentions. The results suggest that (1) a performance-based measure of service quality may be an improved means of measuring the service quality construct, (2) service quality is an antecedent of consumer satisfaction, (3) consumer satisfaction has a significant effect on purchase intentions, and (4) service quality has less effect on purchase intentions than does consumer satisfaction. Implications for managers and future research are discussed.

In Study 1, the authors find that people are more satisfied with a service experience when they choose to participate in the provider's voluntary green program (e.g., recycling)—an effect mediated by the “warm glow” of participation. The downside, however, is that this same mechanism decreases satisfaction among people who choose not to participate. In Study 2, analysis of data from the J.D. Power Guest Satisfaction Index suggests that incentivizing the program (i.e., compensating the program participants) paradoxically increases satisfaction for those who do not participate but decreases satisfaction among those who do. Studies 3 and 4 explore how manipulating incentive characteristics might enable managers to maximize satisfaction for both groups. Study 3 indicates that, compared with no incentive, an “other-benefiting” incentive increases warm glow and satisfaction for green program participants but decreases them among nonparticipants. Study 4, however, suggests that mixed incentive bundles (i.e., providing both self-benefiting and other-benefiting options) maximize warm glow and satisfaction for both groups—the ideal outcome for managers.