28947233 the-gap-model-of-service-quality
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service marketing pptTRANSCRIPT
THE GAP MODEL OF SERVICE QUALITY
Service Quality
Quality of the service is the degree of conformance of all the relevant features and characteristics of service to all the aspects of the consumers’ needs limited by the price and delivery s/he will accept.
Quality can be viewed from two perspectives:
Internal quality based on conformance to specifications
External quality based on customer-perceived quality
Importance Of Quality For Service Marketers
Gain competitive advantage, maintain loyaltyIncrease value (may permit higher margins)Improve profits
The Gaps Model of Service Quality
Gaps Model of Service QualityGaps Model of Service Quality
PerceivedService
Expected Service
CUSTOMER
COMPANY
CustomerGap
Gap 1
Gap 2
Gap 3
External Communications
to CustomersGap 4ServiceDelivery
Customer-Driven Service Designs and
Standards
Company Perceptions of Consumer Expectations
Customer Expectations
Company Perceptions of Customer Expectations
Not Knowing What Customers Expect
Gap1 •Inadequate marketing
research orientation•Lack of upward communication•Insufficient relationship focus•Inadequate service recovery
Customer-Driven Service Designs and Standards
Management Perceptions of Customer Expectations
Not Selecting The Right Service Designs And Standards
Gap2
• Poor service design• Absence of customer-driven standards • Inappropriate physical evidence and services gap
Service Delivery
Customer-Driven Service Designs and Standards
Not Delivering To Service Designs And Standards
Gap3
•Deficiencies in human resource policies•Customers who do not fulfill roles•Problems with service intermediaries• Failure to match supply and demand
Service Delivery
External Communications to Customers
Not Matching Performance To Promises
Gap4
•Lack of integrated services marketing communications.•Ineffective management of customer expectations.•Overpromising.•Inadequate horizontal communications.
Focus on the consumer – Customer Gap
Gaps Model of Service QualityGaps Model of Service Quality
PerceivedService
Expected Service
CUSTOMER
COMPANY
CustomerGap
Gap 1
Gap 2
Gap 3
External Communications
to CustomersGap 4ServiceDelivery
Customer-Driven Service Designs and
Standards
Company Perceptions of Consumer Expectations
The central focus of the gaps model is the customer gap, the difference between customer expectations and perceptions.
Expectations are the reference points customers have coming in to a service experience.
Perceptions reflect the service as actually received.
Most goods
Easy toevaluate
Most services
Difficult toevaluate
High in credenceproperties
High in experienceproperties
High in searchproperties
Clo
thin
g
Jew
elry
Fur
nitu
re
Hou
ses
Aut
omob
il es
Res
tau r
ant
mea
l s
Vac
atio
n
Hai
rcut
s
Chi
ld c
are
Tele
visi
on r
epai
r
Lega
l ser
vice
s
Roo
t ca
nal
Aut
o re
pair
Med
ical
dia
gnos
is
How Consumers Evaluate Goods and Services
Consumer Choice
Customer Expectation Of Service
ZONE OF TOLERANCE
Desired Service
Adequate Service
Dual customer expectations levels and the Zone of Tolerance
ZONE OF TOLERANCE
Desired Service
Adequate Service
ZONE OF TOLERANCE
Desired Service
Adequate Service
Reliability Tangibles
Level OfExpectation
ZONE OF TOLERANCE
Desired Service
Adequate Service
Lasting Service
Intensifiers
Personal Needs
ZONE OF TOLERANCE
Desired Service
Adequate Service
Lasting Service
Intensifiers
Personal Needs
Temporary Service
Intensifiers
Perceived Service
Alternatives
Self Perceived Service Role
Situational Factors
Predicted Service
ZONE OF TOLERANCE
Desired Service
Adequate Service
Lasting Service
Intensifiers
Personal Needs
Temporary Service
Intensifiers
Perceived Service
Alternatives
Self Perceived Service Role
Situational Factors
Predicted Service
Explicit Service
Promises
Implicit Service
Promises
Word – Of –Mouth
Past Experience
Customer Satisfaction
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation.
It is seen as a key performance indicator within business.
Customer Loyalty
"Customer loyalty is when an organization receives the ultimate reward for the way it interacts with its customers. “
Although customer loyalty is often achieved through offers, discount coupons, rebates and other kinds of rewards, long-term customer loyalty can only be created by making your customers feel that they are your number one priority.
Customer Satisfaction vs.Customer Loyalty
Customer satisfaction measures how well a customer’s expectations are met.
Customer loyalty measures how likely customers are to return and their willingness to perform partner shipping activities for the organization.
Customer satisfaction is a requisite for loyalty.
Customer Perceptions of Quality and Customer Satisfaction
What determines Customer Satisfaction?
Product/service features. Consumer emotions.Attributions for service success or failure.
Perceptions of equity or fairness.Other consumers, family members.Price.
Outcomes of Customer Satisfaction
Increased customer retention.Positive word-of-mouth communications.
Increased revenues.
Dimensions of Service Quality
Reliability: Delivering on promises. Example: receive mail at same time each day.
Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.
Dimensions of Service Quality
Assurance: Inspiring trust and confidence. Example: Insurance, medical services, etc..
Empathy: Treating customers as individuals. Example: being a good listener.
Tangibles: Representing the service physically.
Example: Food.
The Service Encounter – The Moment Of Truth
Occurs any time the customer interacts with the firm.
Can potentially be critical in determining customer satisfaction and loyalty.
Is an opportunity to: build trust reinforce quality build brand identity increase loyalty
Types of encounters
Remote Encounters Phone Encounters Face-to-face Encounters
A Service Encounter Cascadefor a Hotel Visit
Check-InCheck-In
Request Wake-Up CallRequest Wake-Up Call
CheckoutCheckout
Bellboy Takes to Room Bellboy Takes to Room
Restaurant MealRestaurant Meal
A Service Encounter Cascade for an Industrial Purchase
Sales CallSales Call
Ordering SuppliesOrdering Supplies
BillingBilling
Delivery and Installation Delivery and Installation
ServicingServicing
Service Encounters Themes
Recovery: Adaptability:
Spontaneity:Coping:
employee responseto service delivery
system failure
employee responseto customer needs
and requests
employee responseto problem customers
unprompted andunsolicited employeeactions and attitudes
Evidence of Service from theCustomer’s Point of View
People
Process PhysicalEvidence
Contact employees Customer him/herself Other customers
Operational flow of activities
Steps in process
Flexibility vs. standard
Technology vs. human
Tangible communication
Servicescape
Guarantees
Technology
Website
Understanding Customer Requirement
Provider Gap 1
Gaps Model of Service QualityGaps Model of Service Quality
PerceivedService
Expected Service
CUSTOMER
COMPANY
CustomerGap
Gap 1
Gap 2
Gap 3
External Communications
to CustomersGap 4ServiceDelivery
Customer-Driven Service Designs and
Standards
Company Perceptions of Consumer Expectations
Provider Gap 1
Company Perceptions of Consumer Expectations
Expected Service
CUSTOMER
COMPANYListening
Gap
How to close the Gap 1?
Listen to customers through research.
Cover company strategy to retain and strengthen the relationship.
Service recovery.
Listening to customers through research
By formal and informal method. Surveys. Critical incident studies. Complaint solicitation.
Objectives
To identify dissatisfied customers. To discover customer requirements or
expectations. To monitor and track service performance. To assess overall company performance
compared to competition. To assess gaps between customer
expectations and perceptions. To appraise service performance of
individuals and teams for rewards. To determine expectations for a new
service. To monitor changing expectations in an
industry. To forecast future expectations.
Stages in research finding
Stage 1 : Define ProblemStage 2 : Develop Measurement
StrategyStage 3 : Implement Research
ProgramStage 4 : Collect and Tabulate
DataStage 5 : Interpret and Analyze
FindingsStage 6 : Report Findings
Service Quality Perceptions Relative to Zones of Tolerance by Dimensions
Retail Chain
9
8
7
6
5
4
3
2
1
0Reliability Responsiveness Assurance Empathy Tangibles
OO OO
Zone of Tolerance S.Q. Perception
O
O
Importance/Performance Matrix
HIGH
HIGH
LOWPerformance
Imp
ort
an
ce
Attributes to Improve Attributes to Maintain
HighLeverage
Attributes to De-emphasize
Attributes to Maintain
LowLeverage
Building Customer Relationship
The Evolution of CustomerRelationship
Strangers
Acquaintances
Friends
Partners
Customer Goals of Relationship Marketing
Acquiring
Satisfying
Retaining
Enhancing
Platinum
Gold
Iron
Lead
Most Profitable Customers
Least Profitable Customers
The Customer PyramidWhat segment spends more with us over time, costs less to maintain, and spread positive word of mouth?
What segment costs us in time, effort, and money yet does not provide the return we want? What segment is difficult to do business with?
Excellent
Serviceand
Value
I. Financial Bonds
II. Social Bonds
IV. Structural Bonds
III. Customization
Bonds
Volume and Frequency Rewards
Bundling and Cross Selling
Stable Pricing
Social Bonds Among Customers
Personal Relationships
Continuous Relationships
Customer Intimacy
Mass Customization
Anticipation/ Innovation
SharedProcesses and Equipment
Joint Investments
Integrated Information Systems
Levels of Relationship Strategies
Relationship Challenges
The Customer is not always right
The Wrong Segment
Not Profitable in Long Term
Difficult Customers
Service Recovery
Expressing Dissatisfaction
Service Failure
Do NothingTake Action
Stay with ProviderSwitch Providers
Complain to Provider
Complain to Family & Friends
Complain to Third Party
Stay with ProviderSwitch Providers
Service Recovery Strategies
Learn from
Recovery Experiences Treat C
ustom
ers F
airly
Learn
from
Lost
Cu
sto
mers
Welcome and Encourage
Complaints
Fail
Safe th
e Serv
iceA
ct
Qu
ickly
Service Recovery Strategies
Provider Gap 2Service Development and Design
Gaps Model of Service QualityGaps Model of Service Quality
PerceivedService
Expected Service
CUSTOMER
COMPANY
CustomerGap
Gap 1
Gap 2
Gap 3
External Communications
to CustomersGap 4ServiceDelivery
Customer-Driven Service Designs and
Standards
Company Perceptions of Consumer Expectations
Risks in Service description through words alone
Oversimplification
Incompleteness
Subjectivity
Biased Interpretation
• Service design and testing• Process and system design and testing• Marketing program design and testing• Personnel training• Service testing and pilot run• Test marketing
People
Technology Systems
Services
Full Launch Development
Design Analysis
Org
aniz
atio
nal
Con
text Team
s
Tools
Enablers
• Formulation of new services objective / strategy• Idea generation and screening• Concept development and testing
• Business analysis• Project authorization
• Full-scale launch• Post-launch review
Types Of New Services
Radical Innovations - Major Innovation. Example: amazon.com.
Start-up Business: new service for existing market. Example: online banking.
New Services for the Market Presently Served: new services to customers of an organization. Example: health club offering nutrition classes.
Types Of New Services
Service Line Extensions: augmentation of existing service line. Example: Airline offering new routes.
Service Improvements: changes in features of currently offered service. Example: Trains.
Style Changes: modest visible changes in appearances. Example: Videocon.
Service Blueprinting
A service blueprint is a picture or a map that accurately portrays the service system so that the different people involved in providing it can understand and deal with it objectively regardless of their roles or their individual point of view.
Process
Points Of
Contacts
Evidence
Service Bluepri
nt
SU
PPO
RT P
RO
CESS
CO
NTA
CT P
ER
SO
N
(Back
Sta
ge)
(On S
tage)
CU
STO
MER
HotelExteriorParking
Cart for Bags
DeskRegistrationPapersLobbyKey
ElevatorsHallwaysRoom
Cart for Bags
RoomAmenitiesBath
Menu DeliveryTrayFoodAppearance
Food
BillDeskLobbyHotelExteriorParking
Arriveat
Hotel
Give Bagsto
BellpersonCheck in
Go toRoom
ReceiveBags
SleepShower
CallRoom
Service
ReceiveFood
EatCheck out
andLeave
Greet andTakeBags
ProcessRegistration
DeliverBags
DeliverFood
ProcessCheck Out
Take Bagsto Room
TakeFoodOrder
RegistrationSystem
PrepareFood
RegistrationSystem
PH
YSIC
AL
EV
IDEN
CE
Building a Blueprint
Add evidence
of service at each customer action
step
Link contact
activities to
needed support
functions
Map contact employe
e’s actions, onstage
and backstage, and/or technolo
gy actions
Map the process
from customer’s point of view
Identify the
customer or the custome
r segment
Identify the
process to be
blueprinted
Customer Defined Service Standard
1. Identify Existing or Desired Service Encounter Sequence
2. Translate Customer Expectations Into Behaviors/Actions
4. Set Hard or Soft Standards
5. Develop FeedbackMechanisms
5. Develop FeedbackMechanisms
7. Track Measures Against Standards
Measure byAudits or
Operating DataHard Soft
Measure byTransaction-
Based Surveys
3. Select Behaviors/Actions for Standards
6. Establish Measures and Target Levels
8. Update Target Levels and Measures
Physical Evidence and the Servicescape
Elements of Servicescape
Servicescape Other Tangibles
Facility Exterior Business Cards
• Exterior Design • Stationery
• Signage • Billing Statements
• Parking • Reports
• Landscape • Employee Dress
• Surrounding Environment • Uniforms
• Brochures
Facility Interior • Internet/ Web Pages
• Interior Design
• Equipment
• Signage
• Layout
• Air/ Quality Temperature
Provider Gap 3Delivering and Performing Service
Gaps Model of Service QualityGaps Model of Service Quality
PerceivedService
Expected Service
CUSTOMER
COMPANY
CustomerGap
Gap 1
Gap 2
Gap 3
External Communications
to CustomersGap 4
ServiceDelivery
Customer-Driven Service Designs and
Standards
Company Perceptions of Consumer Expectations
Employees’ Roles In Service Delivery.
Service Employees
Who are they? “boundary spanners”
What are these jobs like? emotional labor many sources of potential conflict
▪ person/role▪ organization/client▪ interclient▪ quality/productivity
Boundary Spanners Interact with Both Internal and External Constituents
Internal Environment
External Environment
Sources of Conflict for Boundary-Spanning Workers
• Person vs. Role
• Organization vs. Client
• Client vs. Client
• Quality vs. Productivity
Figure 11-5 Human Resource Strategies for Closing GAP 3
Customer-oriented Service Delivery
Hire theRight People
ProvideNeeded Support
Systems
Retain theBest
People
DevelopPeople toDeliverServiceQuality
Compete
for
the B
est
People
Hire for Service
Competencies and Service
Inclination
Provide Supportive Technology
and Equipment
Treat
Em
plo
yee
s a
s
Cu
sto
mer
s
Em
pow
er
Em
plo
yees
Be the
Preferred
Employer Train
for
Technical
and
Interactive
Skills
Prom
ote
Team
wor
k
Measure
Intern
al
Service
Quality
Develop Service-
oriented Internal
Processes
Measu
re
and R
ew
ard
Str
ong
Serv
ice
Pro
viders
Inclu
de
Em
plo
yees
in th
e
Com
pany’s
Visio
n
Customers’ Roles In Service Delivery.
Importance of Other Customers in Service Delivery
Other customers can detract from satisfaction
▪ disruptive behaviors▪ excessive crowding▪ incompatible needs
Other customers can enhance satisfaction
▪ mere presence▪ socialization/friendships▪ roles: assistants, teachers, supporters
How Customers Widen Gap 3
Lack of understanding of their roles Not being willing or able to perform their
roles No rewards for “good performance” Interfering with other customers Incompatible market segments
Define Customer’s Jobs• Clarify level of participation• Indentify specific roles• Understand implications for productivity & quality
Recruit, Educate & Reward Customers• Identify & recruit appropriate segment• Educate customers for their roles• Provide reasons to participate• Reward customer performance
Define Customer’s Jobs• Clarify level of participation• Indentify specific roles• Understand implications for productivity & quality
Effective Customer
Participation
Strategies for Enhancing Customer Participation
Delivering Service Through Intermediaries
Management and demand capacity
Strategies for Shifting Demand to Match Capacity
Use signage to communicate busy days and times
Offer incentives to customers for usage during non-peak times
Take care of loyal or regular customers first
Advertise peak usage times and benefits of non-peak use
Charge full price for the service--no discounts
• Use sales and advertising to increase business from current market segments
• Modify the service offering to appeal to new market segments
• Offer discounts or price reductions
• Modify hours of operation• Bring the service to the
customer
Demand Too High Demand Too LowShift Demand
Strategies for Adjusting Capacity to Match Demand
Stretch time, labor, facilities and equipment
Cross-train employees Hire part-time employees Request overtime work from
employees Rent or share facilities Rent or share equipment Subcontract or outsource activities
• Perform maintenance renovations
• Schedule vacations• Schedule employee training• Lay off employees
Demand Too High Demand Too LowAdjust Capacity
Services Marketing Communication Mix & Communication Strategies
Provider GAP 4
Gaps Model of Service QualityGaps Model of Service Quality
PerceivedService
Expected Service
CUSTOMER
COMPANY
CustomerGap
Gap 1
Gap 2
Gap 3
External Communications
to Customers
Gap 4
ServiceDelivery
Customer-Driven Service Designs and
Standards
Company Perceptions of Consumer Expectations
Need for coordination in marketing communication
A number of media sources are used for service marketing communication.
Need is to ensure that customers receive unified & consistent messages & promises.
Communications and the Services Marketing Triangle
Internal Marketing Vertical Communications
Horizontal Communications
Interactive Marketing Personal Selling
Customer Service Center Service Encounters
Services capes
External Marketing
Communication Advertising Sales Promotion Public Relations
Direct Marketing
Company
CustomersEmployees
ManageService Promises
Approaches for Integrating Services Marketing Communication
Goal:Delivery
greater than or equal to promises
Improve CustomerEducation
ManageCustomer
Expectations
ManageInternal
MarketingCommunication
Reasons for service communication challenges
Discrepancies b/w service delivery & external communications in the form of exaggerated promises & the absence of information about service delivery aspects intended to serve customers well can powerfully affect consumer perceptions of service quality.
Inadequate management of service promises.
Inadequate management of customer expectations.
Inadequate customer education. Inadequate internal marketing
communications.
Categories of strategies to match service promises with delivery
Approaches for Managing Service Promises
Goal:Delivery
greater than or equal to promises
OfferService
Guarantees
Create EffectiveServices
Communications
Coordinate External
Communication
MakeRealisticPromises
MANAGING SERVICE PROMISES
Create Tiered-ValueOfferings
NegotiateUnrealistic
Expectations
Offer Choices
Approaches forManaging Customer Expectations
Goal:Delivery
greater than or equal to promises
Communicate Criteria for Service Effectiveness
MANAGE INTERNAL MARKETING COMMUNICATION
Create effective vertical communication.
Create effective horizontal communication.
Align back office & support personnel with external customers.
Create cross functional teams.
Goal:Delivery
greater than or equal to promises
Create EffectiveVertical
Communications
Align Back Office Personnel
w/ External Customers
Create EffectiveHorizontal
Communications
Approaches for ManagingInternal Marketing Communications
CreateCross-Functional
Teams
Source: http://www.newdhl.com/advertising.asp?cid=dhlbt1hmpg1
DHL’s Integrated Marketing Campaign
DHL’s Outdoor Advertising
DHL’s Print Advertising
INDIAN LOGISTICS INDUSTRY : AN OVERVIEW
• Fastest growing industry.
• Dominated by unorganized market.
• Logistics cost is over 13% of GDP.
GATI – Ahead In Reach
Among the top 5 players in the country.
Best domestic logistics company award.
Network reaches up to 580 districts out of 590 districts.
International operations.
Customer needs &expectations
Management definitionOf these needs
Translation into design/Delivery specs
Execution of design/delivery specs
Advertising & sales promises
Customer perceptions of product execution
Customer interpretation of communication
Customer experience relative to expectations
CUSTOMER
Knowledge Gap (1)
Standard Gap (2)
Delivery Gap (3)
Internal Communication Gap (4)
Perception Gap (5) Interpretation Gap (6)
Service Gap (7)
(4)
SERVICE
GA P
MODEL
Key Factors Leading to
KNOWLEDGE
GAP
Customer needs & Expectations
Management definition of these needs
Improper field level Information.
Business Intelligence not available for decision making at all levels.
Least attention paid to small customers.
GATI’S SOLUTION:
Customer’s information is collected through feedback forms.
Appointment of executives to cater all types of customers.
Key Factors Leading to Standard Gap
STANDARD
GAP
Translation into Design
No proper service design for customers.
Fluctuation in fuel prices.
No Insurance for goods.
Improper allocation of funds.
GATI’S SOLUTION:
Sharing the burden of increasing fuel prices.
Insurance for goods.
Management definition of these needs
Key Factors Leading to Delivery Gap
DELIVERY
GAP
Execution of Design
Poor employee-technology job fit.
Delay in delivering the service.
Over pricing to match demand.
GATI’S SOLUTION:
Employees are properly trained.
Promptness in delivery.
Translation into Design
Key Factors Leading to Communication Gap
COMMUNICATION
GAP
Execution of Design
Improper horizontal communication.
Customer enquiry constraints. Absence of strong internal marketing.
Lack of adequate education for customer.
GATI’S SOLUTION:
Toll Free Number available to provide information to the customers.
Gati.net.
Advertising And Sales Promises
Key Factors Leading to Perception Gap
PERCEPTION
GAP
Execution of Design
Indifferent attitude towards customers.
Improper design leading to negative perception.
Improper information transparency to their supply chain partners to maintain competitiveness.
GATI’S SOLUTION:
Should have a positive attitude towards the customer.
Proper market research to change design accordingly.
Customer Perceptions of product execution
Key Factors Leading to Interpretation Gap
INTERPRETATION
GAP
Advertising And Sales Promises
Overpromise, under delivery.
Main customers - Corporate customers. Hence interpretation of a local customer varies differently.
GATI’S SOLUTION:
Should focus on B to C advertising apart from B to B advertising.
Provide services as promised .
Customer interpretation of communication
Key Factors Leading to Service Gap
SERVICE
GAP
Customer perceptionsOf product execution
Value added services.
Ware housing facility.
Reverse logistics.
GATI’S SOLUTION:
Started giving value added services in some areas.
Customer Interpretation of communications
Customer experienceRelative to expectations
SERVICE RECOVERY
Poor service recovery in the logistics industry.
Effects customer loyalty.
It should be Pro-active, Planned, Trained & Empowered
GATI : SERVICE RECOVERY PARADOX
Undertaking Service Recovery Seriously.
Thank You…