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    ChapterChapter

    The Gaps Model of Service Quality

    The Customer Gap

    The Provider Gaps:

    Gap 1 not knowing what customers expect

    Gap 2 not having the right service designs and

    standards

    Gap 3 not delivering to service standards Gap 4 not matching performance to promises

    Putting It All Together: Closing the Gaps

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    2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    The gaps model of service qualityThe gaps model of service quality

    Effective services marketing is complex and involves many

    different strategies, skills and tasks.

    The customer gap is the difference between customer

    expectations and perceptions. Customer expectations are standards or reference points

    that customers bring in to the service experience,

    Whereas customer perceptions are subjective assessment

    of actual service experiences. Closing the gap between what customers expect and what

    they perceive is critical to delivering service quality.

    It forms the basis for service quality.

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    2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    Why service quality?Why service quality?

    Because customer satisfaction and customer focus is

    critical to competitiveness of firms.

    Delivery of service quality involves clear understanding of

    companys customers. It becomes very difficult for large organizations in which

    managers are not in direct contact with customers.

    The sources of customer expectations are marketer-

    controlled factors such as pricing, advertising, salespromises as well as others such as competitive offerings.

    Word-of-mouth communications, innate needs of

    customers.

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    2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    PerceivedService

    Expected

    ServiceCUSTOMER

    COMPANY

    Customer

    Gap

    Gap 1

    Gap 2

    Gap 3

    ExternalCommunications

    to CustomersGap 4Service

    Delivery

    Customer-DrivenService Designs and

    Standards

    Company Perceptionsof ConsumerExpectations

    Figure 2.6

    Gaps Model of Service QualityFigure 2.6

    Gaps Model of Service Quality

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    2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    Gaps Model of Service QualityGaps Model of Service Quality

    Customer Gap:

    difference between customer expectations and perceptions

    Provider Gap 1 (The Knowledge Gap):

    not knowing what customers expect

    Provider Gap 2 (The Service Design & Standards Gap):

    not having the right service designs and standards

    Provider Gap 3 (The Service Performance Gap):

    not delivering to service standards

    Provider Gap 4 (The Communication Gap):

    not matching performance to promises

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    2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    Expected

    service

    Perceivedservice

    Customer Gap

    Figure 2.1

    The Customer GapFigure 2.1

    The Customer Gap

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    2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    Provider Gap 1: Not knowing what customers expect

    Provider Gap 2: Not selecting the right service designs and standards

    Provider Gap 3: Not delivering to service standards

    Provider Gap 4: Not matching performance to promises

    Customer

    Expectations

    CustomerPerceptions

    Key Factors Leading

    to the Customer Gap

    Key Factors Leading

    to the Customer Gap

    Customer

    Gap

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    2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    Customer Expectations

    Company Perceptions of

    Customer Expectations

    Inadequate marketing research orientationInsufficient marketing researchResearch not focused on service quality

    Inadequate use of market research Lack of upward communication

    Lack of interaction between management and customersInsufficient communication between contact employees and managersToo many layers between contact personnel and top management

    Insufficient relationship focusLack of market segmentationFocus on transactions rather than relationshipsFocus on new customers rather than relationship customers

    Inadequate service recoveryLack of encouragement to listen to customer complaintsFailure to make amends when things go wrongNo appropriate recovery mechanisms in place for service failures

    NOT KNOWINGWHATCUSTOMERSEXPECT-the knowledge gap

    Key Factors Leading to ProviderGap 1NOT KNOWINGWHATCUSTOMERSEXPECT-the knowledge gap

    Key Factors Leading to ProviderGap 1

    Gap

    1

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    2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    Customer-Driven Service

    Designs and Standards

    Management Perceptions of

    Customer Expectations

    Poor service designUnsystemati new servi e devel ment process

    Vague, undefined service designsFailure to connect service design to service positioning Absence of customer-driven standards

    Lack of customer-driven service standardsAbsence of process management to focus on customer

    requirementsAbsence of formal process for setting service quality goals

    Inappropriate physical evidence and servicescapeFailure to develop tangibles in line with customer expectationsServicescape design that does not meet customer and

    employee needsInadequate maintenance and updating of the servicescape

    NOT SELECTINGTHERIGHT SERVICEDESIGNS AND STANDARDS-gap

    Key Factors Leading to ProviderGap 2NOT SELECTINGTHERIGHT SERVICEDESIGNS AND STANDARDS-gap

    Key Factors Leading to ProviderGap 2

    Gap

    2

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    2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    Service Delivery

    Lack e a e se v ces a ke c ca s Tenden to vie ea he te nal co unicationa independentNot includinginte active ma etingin communication planAb enceo stronginternal marketingprogram

    Ine ec ve ana e ent ofc stome ex ectationsAbsenceo customere pectation management throughall forms of

    communicationLack ofadequateeducation for customers

    Ove omisingOverpromisinginadvertisingOverpromisinginpersonal sellingOverpromising throughph sicalevidence cues

    Ina e ate horizonta communicationsInsufficient communicationbetween sales andoperationsInsufficient communicationbetweenadvertisingandoperationsDifferences inpolicies andprocedures across branches orunits

    Externa Communications to

    Customers

    NOTMATCHINGPERFORMANCESTOPROMISES- the communicationgap

    KeyFactors Leading toProviderGap4NOTMATCHINGPERFORMANCESTOPROMISES- the communicationgap

    KeyFactors Leading toProviderGap4

    Gap

    4