Professional Documents
Culture Documents
SERVICE QUALITY
Service Quality
Expected
Service
CUSTOMER
Customer
Gap
Perceived
Service
Customer Expectations
Gap
1 •Inadequate marketing
research
orientation
•Lack of upward
communication
•Insufficient
relationship focus
•Inadequate service
Company Perceptions of
recovery
Customer Expectations
Not Selecting The Right Service
Designs And Standards
Customer-Driven Service
Designs and Standards
Gap
2 • Poor service design
• Absence of customer -
driven standards
• Inappropriate physical
evidence and services gap
Management Perceptions of
Customer Expectations
Not Delivering To Service Designs
And Standards
Customer-Driven Service
Designs and Standards
External Communications to
Customers
Focus on the consumer –
Customer Gap
Gaps Model of Service Quality
Expected Service
CUSTOMER
Customer
Gap
Perceived
Service
COMPANY
Service External
Communications
Gap 1 Delivery Gap 4 to Customers
Gap 3
Customer-Driven
Service Designs and
Standards
Gap 2
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.
How Consumers Evaluate
Goods and Services
Easy to Difficult to
evaluate evaluate
Restaurant meals
Medical diagnosis
Legal services
Automobiles
Jewelry
Television repair
Clothing
Houses
Furniture
Vacation
Auto repair
Child care
Root canal
Haircuts
LOW
Dual customer expectations
levels and the Zone of
Tolerance
Desired Service
ZONE OF TOLERANCE
Adequate Service
Desired Service
Level Of
Expectation
Adequate Service
Reliability Tangibles
Lasting Service Intensifiers
Desired Service
Personal
Needs
ZONE OF TOLERANCE
Adequate Service
Lasting Service Intensifiers
Desired Service
Personal
Needs
ZONE OF TOLERANCE
emporary Service Intensifiers
Situational Factors
Explicit Service Promises
Lasting Service Intensifiers
Desired Service
Implicit Service Promises
Personal
Needs
Word – Of –Mouth
ZONE OF TOLERANCE
emporary Service Intensifiers
Past Experience
Situational Factors
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
Attributes
■Providing service as promised
■Dependability in handling
customers ’ service problems
■Performing services right the EMPATHY
first time ■Giving customers individual attention
■Providing services at the promised
■Employees who deal with customers in a
time caring fashion
■Maintaining error - free records
■Having the customer ’ s best interest at
heart
RESPONSIVENESS ■Employees who understand the needs of
their customers
■Convenient business hours
■Keeping customers informed as to
when services will be performed
■Prompt service to customers TANGIBLES
■Willingness to help customers ■Modern equipment
■Readiness to respond to ■Visually appealing facilities
customers ’ requests ■Employees who have a neat ,
professional appearance
■Visually appealing materials
ASSURANCE associated with the service
■Employees who instill confidence in
customers
■Making customers feel safe in their
transactions
■Employees who are consistently
courteous
■Employees who have the knowledge to
answer customer questions
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.
E-Service Quality
Efficiency
Fulfillment
Reliability
Privacy
Responsiveness
Compensation
Contact
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
Cascade
for a Hotel Visit
Check
Check--In
In
Bellboy
Bellboy Takes
Takes to
to Room
Room
Restaurant
Restaurant Meal
Meal
Request
Request Wake
Wake--Up
Up Call
Call
Checkout
Checkout
A Service Encounter
Cascade for an Industrial
Purchase
Sales
Sales Call
Call
Delivery
Delivery and
and Installation
Installation
Servicing
Servicing
Ordering
Ordering Supplies
Supplies
Billing
Billing
Service Encounters
Themes
Recovery : Adaptability :
employee response employee response
to service delivery to customer needs
system failure and requests
Coping : Spontaneity :
employee response unprompted and
to problem customers unsolicited employee
actions and attitudes
Recovery
DO DON ’ T
Acknowledge Ignore customer
problem Blame customer
Explain causes Leave customer to
Apologize fend for him/herself
Compensate/upgrad Downgrade
e Act as if nothing is
Lay out options wrong
Take responsibility “Pass the buck”
Adaptability
DO DON ’ T
Recognize the Ignore
seriousness of the Promise, but fail to
need follow through
Acknowledge Show unwillingness to
Anticipate try
Attempt to Embarrass the
accommodate customer
Adjust the system Laugh at the
Explain rules/policies customer
Take responsibility Avoid responsibility
“Pass the buck”
Spontaneity
DO DON ’ T
Take time Exhibit impatience
Be attentive Ignore
Anticipate needs Yell/laugh/swear
Listen Steal from customers
Provide information Discriminate
Show empathy
Coping
DO DON ’ T
Listen Take customer’s
Try to accommodate dissatisfaction
Explain personally
Let go of the Let customer’s
customer dissatisfaction
affect others
Evidence of Service from
the
Customer’s Point of View
l Contact employees
l Customer
him / herself
lOperational flow l Other customers
of activities People
lSteps in process
lFlexibility vs .
standard
lTechnology vs .
human lTangible
communication
Physical
Process Evidence
lServicescape
lGuarantees
lTechnology
lWebsite
P ro v id e r G a p 1
Understanding
Customer Requirement
Gaps Model of Service Quality
Expected Service
CUSTOMER
Customer
Gap
Perceived
Service
Listening
COMPANY Gap
Company
Perceptions
of Consumer
Expectations
How to close the Gap 1?
Retail Chain O
Zone of Tolerance S.Q.
Perception
Importance/Performance
Matrix
HIGH
l l
High
Leverage
Attributes to Attributes to
Improve Maintain
l
Importance
l l l
l
Low l
l Leverage
l
Attributes to Attributes to De -
Maintain emphasize
LOW
HIGH
Performance
Building Customer
Relationship
The Evolution of Customer
Relationship
Customer Goals of
Relationship Marketing
Enhancing
Retaining
Satisfying
Acquiring
The Customer Pyramid
What segment spends more with us
over time, costs less to
Most maintain, and spread positive
Profitable word of mouth?
Customers
Stable
Volume and Pricing
Frequency Bundling and
Rewards Cross
Selling
Integrated I. Continuous
Information Financial Relationships
Systems Bonds
IV . Excellent
II .
Joint Structural Service Social Personal
Investments Bonds and Relationships
Value Bonds
Anticipati Customer
on/ Intimacy
Innovation Mass
Customization
Relationship Challenges
Service Failure
Complain to Provider
Complain to Family & Complain
Friends to Third Party
Act Quickly
Service Recovery Strategies
Learn from
Lost Custom
ers
y
airl
F
s
Le er
Re arn f om
co ro
ve m ust
ry t C
Ex ea
pe Tr
ri e
nc
es
Provider Gap 2
S e rv ice D e v e lo p m e n t
a n d D e sig n
Gaps Model of Service Quality
Expected
Service
CUSTOMER
Customer
Gap
Perceived
Service
Gap 2
Company Perceptions of Consumer Expectations
Risks in Service
description through words
alone
Oversimplification
Incompleteness
Subjectivity
Biased Interpretation
•Full-scale launch
•Post-launch
review
l
of new services
nte ona
objective / strategy
Co iz ati
People
xt
Tea
•Idea generation
m
and screening
ga
s
Or
•Concept
development and
Services testing
Technology Systems
Tools
•Service design
and testing Design Analysis
•Process and system
design and testing •Business analysis
•Marketing program •Project
design and testing authorization
•Personnel training
•Service testing and
pilot run
•Test marketing
hBusiness Strategy Development or Review
Front End
Planning hIdea Generation
hBusiness Analysis
hMarket Testing
Implementation
Test service and other marketing-mix elements
hCommercialization
hPostintroduction Evaluation
MARKETS
OFFERINGS
Current Customers New Customers
RadicalInnovations - Major
Innovation. Example: amazon.com.
Start-upBusiness: 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
Types Of New Services
Customer Admission/
Arrive Entranc Intervie Submission of
Actions at Enquir e
y w Documents
Institut Exam
Line of e
Interaction
On Stage
Contact Receptionist Examiner Directo
Person r
Line of
Visibility Administration
Backstage Staff
Peons
Contact Person
Line of Internal
Interaction
Support Online/site Process of checking Registratio
Process Application Documents n
System
Bill
Desk
EVIDENCE
PHYSICAL
Hotel Cart for Desk Elevators Cart for Room Menu Delivery Food Lobby
Exterior Bags Registration Hallways Bags Amenities Tray Hotel
Parking Papers Room Bath Food Exterior
Lobby Appearance Parking
Key
CUSTOMER
Greet and
CONTACT PERSON
Take
Take Bags Food
to Room Order
SUPPORT PROCESS
Measure by Measure by
Audits or Transaction -
Hard 55. . Develop
Develop Feedback
Feedback Soft Based Surveys
Operating Data
Mechanisms
Mechanisms
• Parking • Reports
• Brochures
• Interior Design
• Equipment
• Signage
• Layout
Cognitive
Emotional
Physiological
Individual Behaviors
Employee Responses
Ambient Conditions
Space/Function Perceived Social Interactions between and among customer an
Servicescape
ns, Symbols, and Artifacts
Customer Responses
Individual Behaviors
Cognitive
Emotional
Physiological
Provider Gap 3
Delivering and Performing
Service
Gaps Model of Service Quality
Expected
Service
CUSTOMER
Customer
Gap
Perceived
Service
Service
COMPANY Delivery
External
Gap 4 Communications
to Customers
Gap 3
Gap 1 Customer-Driven Service Designs and Standards
Gap 2
Company Perceptions of Consumer Expectations
Employees’ Roles In Service
Delivery.
Service Employees
Internal Environment
Sources of Conflict for
Boundary-Spanning Workers
Hire for
Service
r Competencies
fo Pr Be
t and Service Em efe the
e te es Inclination
B pl rr
o mp e ple oy ed
C th eo er
P
St war and
Tr chn nd iv
Te a act s
Hire the
ai ic
In Sk
d
n
Re ure
Pr erv ong
te il
Right People
s
id e
fo l
er
ov ic
r l
as
S r
r
a
Me
e
Develop
Employees
People to
Retain the
Empower
Employees
Customers
Customer- Deliver
Treat
Best Service
oriented Service Delivery
as
People Quality
Em
wo e
In oyee
pl he ny’s
rk
am ot
Provide
cl s
Co Visi
Te rom
Needed Support
t
ud in
mp on
P
e
Systems
a
D
Se evel e
or rv op ur al
In ien ice- s
a n
Me ter ice
Pr ter ted Provide
oc na
es l Supportive In erv ity
se S al
s Technology Qu
and
Equipment
Customers’ Roles In Service
Delivery.
Importance of Other
Customers in Service Delivery
e fin e C u sto m e r ’ s Jo b s
larify level of participation
ndentify specific roles
nderstand implications for productivity & quality
to Match Demand
Demand Too High Adjust CapacityDemand Too Low
Stretch time, labor, facilities
and equipment
Cross-train employees
•Perform maintenance
Hire part-time employees renovations
Request overtime work
from employees •Schedule vacations
Rent or share facilities
Rent or share equipment
•Schedule employee training
Subcontract or outsource
activities
•Lay off employees
Provider GAP 4
Services Marketing
Communication Mix &
Communication Strategies
Gaps Model of Service Quality
Expected
Service
CUSTOMER
Customer
Gap
Perceived
Service
Gap 4
COMPANY Service External Communications to Cus
Delivery
Gap 3
Gap 1 Customer-Driven Service Designs and Standards
Gap 2
Manage
Customer
Expectations
Goal :
Manage Delivery Improve
Service greater than Customer
Promises or equal to Education
promises
Manage
Internal
Marketing
Communication
Reasons for service
communication challenges
Promises
•
MANAGING SERVICE PROMISES
Goal :
Create Delivery
Coordinate Make Offer greater than
Effective External Service
Services Realistic or equal to
Communication Promises Guarantees promises
Communications
Approaches for
Managing Customer
Expectations
Offer Choices
Negotiate
Unrealistic
Expectations
Goal :
Delivery
greater than
or equal to
promises
MANAGE INTERNAL
MARKETING COMMUNICATION
Create
effective vertical
communication.
Create
effective horizontal
communication.
Alignback office & support
personnel with external customers.
Create cross functional teams.
Approaches for Managing
Internal Marketing
Communications
Goal :
Delivery
greater than
or equal to
promises
Create Effective
Vertical
Communications
Create Effective
Horizontal
Communications
Align Back
Office Personnel
w / External
Customers
Create
Cross - Functional
Teams
DHL’s Integrated Marketing
Campaign
Source: http://www.newdhl.com/advertising.asp?cid=dhlbt1hmpg1
DHL’s Outdoor
Advertising
DHL’s Print Advertising
INDIAN LOGISTICS INDUSTRY : AN OVERVIEW
•
•
GATI – Ahead In Reach
GATI’S SOLUTION:
GATI’S SOLUTION:
Execution of Design
GATI’S SOLUTION:
GATI’S SOLUTION:
GATI’S SOLUTION:
GATI’S SOLUTION:
q Reverse logistics.
Customer experience
Relative to expectations
GATI’S SOLUTION:
Ø
SERVICE RECOVERY
ØPoor service recovery in the logistics industry.
Ø
Ø
ØEffects customer loyalty.
Ø
Ø
ØIt should be Pro-active, Planned, Trained & Empowered
Ø
Ø
Ø
ØGATI : SERVICE RECOVERY PARADOX
Ø