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  • 8/9/2019 Gap Models Service Management

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    The Gaps

    The Key ServiceDimensions

    Causes & Solutions toGaps

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    The Five Key Service Dimensions

    TANGIBLES - the appearance ofphysical facilities, equipment,personnel and information material

    RELIABILITY - the ability to performthe service accurately and dependably

    RESPONSIVENESS - the willingness to

    help customers and provide a promptservice

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    The Five Key Service Dimensions

    ASSURANCE - a combination of the following

    Competence - having the requisite skillsand knowledge

    Courtesy - politeness, respect,consideration and friendliness of contactstaff

    Credibility - trustworthiness, believability

    and honesty of staff Security - freedom from danger, risk or

    doubt

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    The Five Key Service Dimensions

    EMPATHY - a combination of thefollowing: Access (physical and social) -

    approachability and ease of contact

    Communication - keeping customersinformed in a language they understandand really listening to them

    Understanding the customer - making theeffort to get to know customers and theirspecific needs

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    The Make-up of Servqual

    GAPS

    P-ES

    CORESQUESTIONNAIRES

    DIMENSIONS

    WEIGH

    TING

    S

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Conceptual Model of ServiceQuality

    Word-of-mouth

    CommunicationsPersonal Needs Past experience

    Expected Service

    Perceived Service

    Service

    Delivery

    External

    Communications

    To Customers

    Service Quality

    Specs

    Management

    Perceptions of

    Customer Expectations

    CUSTOMER

    PROVIDER

    Gap 1

    Gap 2

    Gap 3

    Gap 4

    Gap 5

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Servqual Gaps 1

    Gap 1: The difference between

    management perceptions of whatcustomers expect and what customersreally do expect

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Reasons Gap 1

    GAP 1 - not knowing what customersexpect lack of a marketing orientation

    inadequate upward communication (fromcontact staff to management)

    too many levels of management

    Insufficient relationship focus Lack of market segmentation

    Focus on transactions rather than relationship

    Focus on new customers rather than relationshipcustomers

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Gap 2: The difference betweenmanagement perceptions and servicequality specifications - the standardsgap

    Servqual Gap - 2

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Reasons for the Gap - 2

    GAP 2 - the wrong service quality standards inadequate commitment to service quality lack of perception of feasibility - it cannot be done inadequate task standardisation the absence of goal setting

    Poor service design Unsystematic new service development process Vague, undefined service designs Failure to connect service design to service positioning

    Absence of customer defined standards Lack of customer defined service standards

    Absence of process management to focus on customer requirements Absence of formal process for setting service quality goals Inappropriate physical evidence and services cape

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Gap 3: The difference between

    service quality specifications andactual service delivery - arestandards consistently met?

    Servqual Gap - 3

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Reasons for Gap - 3

    GAP 3 - the service performance gap

    role ambiguity and role conflict - unsure ofwhat your remit is and how it fits with others

    poor employee or technology fit - the wrongperson or system for the job

    inappropriate supervisory control or lack ofperceived control - too much or too little

    control lack of teamwork

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Gap 4: The difference between servicedelivery and what is communicatedexternally - are promises madeconsistently fulfilled?

    Servqual Gap - 4

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Reasons for Gap - 4

    GAP 4 - when promises made do not match actualdelivery inadequate horizontal communication - between

    departments or services Insufficient communication between sales and operations

    Insufficient communication between advertising andoperations

    Differences in policies and procedure across branches orunits

    a propensity to over promise

    Over promising in advertising Over promising in personal selling

    Over promising though physical evidence cues

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Gap 5: The difference between whatcustomers expect of a service and whatthey actually receive

    expectations are made up of past experience, word-of-mouth and needs/wants of customers

    measurement is on the basis of two sets ofstatements in groups according to the five keyservice dimensions

    An Example of Logistic Industry

    Servqual Gap - 5

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Servqual Data - How Useful is it?

    We can assess service quality fromthe customers perspective

    We can track customer expectationsand perceptions over time and thediscrepancies between them

    We can compare a set of Servqual

    scores against those of competitorsor best practice examples

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Servqual Data - How Useful is it?

    We can compare the expectations andperceptions of different customergroups - this is particularly useful inthe public sector

    We can assess the expectations andperceptions of internal customers - eg

    other departments or services wedeal with

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Servqual Data - What can we dowith it?

    We can use data on customer priorities tofeed into the House of Quality (QFD)

    Customer priorities and their ranked order

    of importance can become the WHATS These WHATS can then be compared with

    the HOWS (key business processes) andrelationships matched to check service

    design and provision according to keyrequirements

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Any Questions??

    Kindly Highlight GAPS if any inour Services module??

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    INDIAN LOGISTICS INDUSTRY : ANOVERVIEW

    Fastest growing industry.

    Dominated by unorganized market.

    Logistics cost is over 13% of GDP.

    Expected market size by 2010-$125

    billion.

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    GATI Ahead In Reach

    Among the top 5 players in thecountry.

    Best domestic logistics companyaward.

    Network reaches up to 580districts out of 590 districts.

    International operations.

    CUSTOMER

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Customer needs &

    expectations

    Management definition

    Of 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)

    SER

    VICE

    GAP

    MODE

    L

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Key Factors Leading to Knowledge Gap

    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.

    GATIS SOLUTION:

    Customers information is collected through feedback forms.

    Appointment of executives to cater all types of customers.

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    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.

    GATIS SOLUTION:

    Sharing the burden of increasing fuel prices.

    Insurance for goods.

    Management definition of these needs

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    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.

    GATIS SOLUTION:

    Employees are properly trained.

    Promptness in delivery.

    Translation into Design

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    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.

    GATIS SOLUTION:

    Toll Free Number available to provide information to the customers.

    Gati.net.

    Advertising And Sales Promises

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    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.

    GATIS SOLUTION:

    Should have a positive attitude towards the customer.

    Proper market research to change design accordingly.

    Customer Perceptions of product execution

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    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.

    GATIS SOLUTION:

    Should focus on B to C advertising apart from B to B advertising.

    Provide services as promised .

    Customer interpretation of communication

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    Key Factors Leading to Service Gap

    SERVICE

    GAP

    Customer perceptions

    Of product execution

    Value added services.

    Ware housing facility.

    Reverse logistics.

    GATIS SOLUTION:

    Started giving value added services in some areas.

    Customer Interpretation

    of communications

    Customer experience

    Relative to expectations

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    Faculty -: Jasmeet Singh, Thakur Institute of Management Studies & Research, Mumbai

    SERVICE RECOVERY

    Poor service recovery in the logistics industry.

    Effects customer loyalty.

    It should be Pro-active, Planned, Trained & Empowered

    GATI : SERVICE RECOVERYPARADOX

    Undertaking Service Recovery Seriously.