IJMSS Vol.04 Issue-10, (October, 2016) ISSN: 2321-1784 International Journal in Management and Social Science (Impact Factor- 6.178) A Monthly Double-Blind Peer Reviewed Refereed Open Access International Journal - Included in the International Serial Directories International Journal in Management and Social Science http://www.ijmr.net.in email id- irjmss@gmail.com Page 169 A COMPARATIVE ASSESSMENT OF THE PREDICTIVE POWER AND DIAGNOSTIC ABILITY OF THE SERVQUAL AND SERVPERF SCALES IN THE HIGHER EDUCATION CONTEXT OF TANZANIA AMANI M.G. TEGAMBWAGE 1 AND AHMED M. AME 2 1 Department of Marketing & Entrepreneurship, College of Business and Law, School of Business Studies and Economics, The University of Dodoma, Tanzania 2 Department of Management Science, College of Business and Law, School of Business Studies and Economics, The University of Dodoma, Tanzania ABSTRACT The debate over which instrument is a better measure of service quality, between the disconfirmation-based SERVQUAL scale and the performance-based SERVPERF scale, is not over yet. While a number of studies have attempted to compare the two scales, and have concluded that the SERVPERF is a better measure of service quality, these studies have mostly focused on psychometric properties of the two alternative scales. The comparison of predictive power and the diagnostic ability of the two scales have not received adequate attention. Since the ideal service quality measuring instrument is one that is not only psychometrically sound, but is also diagnostically robust enough to identify specific service quality flaws for improvement, this study assesses and compares predictive power and diagnostic ability of the two scales in the higher education context of Tanzania. Based on the sample of 500 university students, the study concludes that, the SERVPERF scale is a superior scale in terms predictive power, while the SERVQUAL scale is superior in terms of diagnostic ability. It is recommended that, when the interest is only to assess the overall service quality, the SERVPERF scale should be preferred. On the other hand, when the interest is to identify service quality shortfalls for improvement, the SERVQUAL scale should be employed. KEYWORDS Diagnostic Ability, Higher Education, Predictive Power, Service Quality, SERVQUAL, SERVPERF. 1.0 INTRODUCTION In recent years, higher education environment has undergone dramatic changes all over the world, Tanzania being no exception. Higher education institutions are currently facing an increased competition, both in the home country and globally (Hoe, 2005). This is due to the fact that, more new programmes are offered, new delivery means of existing programmes are introduced (distance learning or e-learning), new institutions are established (both public and private), internationalization of higher education, as well as a reduction in government funding (Faganel, 2010). Given the current environmental trends, higher education institutions must realize that they are entities competing for resources and students, both in the local and international market (Paswan and Ganesh, 2009). Thus, they must strive to deliver superior service quality and satisfy their students in order to achieve a sustainable competitive advantage (DeShields et al., 2005). In other words, higher education institutions must address service quality as a core business just like any other business organizations. In order to achieve superiority in service quality and realize its benefits, higher education institutions must have the means to measure it. Two of the most valid and reliable measurement instruments used in the evaluation of service quality are the SERVQUAL and SERVPERF scales. Despite the wide application of these scales for measuring service quality across different service sectors, controversy continues to exist as to which one of these more accurately measures service quality