Services may be difficult to identify because they are so closely associated with a good. In fact, most products have an element of service in them. An example of this is when you go to a restaurant. Your wait staff provides you with both a good and a service; your food, and your experience (e.g., friendliness, attentiveness), respectively.
So how do you know? When you buy services, no transfer of possession or ownership takes place; services cannot be stored or transported, are instantly perishable, and only come into existence at the time they are bought or consumed.
So, back to the original question, what is Service Quality? Service Quality is the comparison of a customers’ perceived expectations of a service, with the perceived performance (i.e., SQ=P-E). Organizations that are successful in consistently providing a high level of service quality have mastered the ability to anticipate and manage customers’ expectations, ensuring their staff are aware and aligned with how these expectations are to be managed, thereby ensuring the experiences they create through the delivery of services will meet or exceed the customers’ expectations.