The Gaps Model of Service Quality

Gaps Model of Service Quality

CUSTOMER
Customer Gap

Expected Service

Perceived Service
Service Delivery
External Communications GAP 4 to Customers

COMPANY
GAP 1 GAP 3

Customer-Driven Service Designs and Standards

GAP 2
Company Perceptions of Consumer Expectations

Seven Service Quality Gaps

(Lovelock and Wirtz)

Customer needs and expectations 1. Knowledge Gap Management definition of these needs 2. Standards Gap Translation into design/delivery specs

CUSTOMER MANAGEMENT

3. Delivery Gap
Execution of design/delivery specs 5. Perceptions Gap Customer perceptions of service execution 7. Service Gap Customer experience relative to expectations 4.

4. Internal Communications Gap Advertising and sales promises 6. Interpretation Gap Customer interpretation of communications

The Customer Gap

Expected Service
GAP

Perceived Service

Provider GAP 1
CUSTOMER

Expected Service

GAP 1 Company Perceptions of Consumer Expectations

COMPANY

Key Factors Leading to the Customer Gap

Customer GAP

Customer Expectations

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 Perceptions

Key Factors Leading to Provider Gap 1

Customer Expectations

GAP 1

Inadequate Marketing Research Orientation

Insufficient marketing research Research not focused on service quality Inadequate use of market research

Lack of Upward Communication

Lack of interaction between management and customers Insufficient communication between contact employees and managers Too many layers between contact personnel and top management

Insufficient Relationship Focus

Lack of market segmentation Focus on transactions rather than relationships Focus on new customers rather than relationship customers

Inadequate Service Recovery

Company Perceptions of Customer Expectations

Key Factors Leading to Provider Gap 2

Customer-Driven Service Designs and Standards

GAP 2

Poor Service Design Unsystematic new service development process Vague, undefined service designs Failure to connect service design to service positioning Absence of Customer-Driven Standards Lack of customer-driven service standards Absence of process management to focus on customer requirements Absence of formal process for setting service quality goals Inappropriate Physical Evidence and Servicescape

Management Perceptions of Customer Expectations

Key Factors Leading to Provider GAP 3

Customer-Driven Service Designs and Standards

GAP 3

Deficiencies in Human Resource Policies

Ineffective recruitment Role ambiguity and role conflict Poor employee-technology job fit Inappropriate evaluation and compensation systems Lack of empowerment, perceived control and teamwork

Failure to Match Supply and Demand

Failure to smooth peaks and valleys of demand Inappropriate customer mix Over-reliance on price to smooth demand

Customers Not Fulfilling Roles

Customers lack knowledge of their roles and responsibilities Customers negatively impact each other

Problems with Service Intermediaries

Channel conflict over objectives and performance Channel conflict over costs and rewards Difficulty controlling quality and consistency Tension between empowerment and control

Service Delivery

Key Factors Leading to Provider GAP 4

Service Delivery

GAP 4

Lack of Integrated Services Marketing Communications Tendency to view each external communication as independent Not including interactive marketing in communications plan Absence of strong internal marketing program Ineffective Management of Customer Expectations Not managing customer expectations through all forms of communication Not adequately educating customers Overpromising Overpromising in advertising Overpromising in personal selling Overpromising through physical evidence cues Inadequate Horizontal Communications Insufficient communication between sales and operations Insufficient communication between advertising and operations Differences in policies and procedures across branches or units

External Communications to Customers

Gaps Model of Service Quality

CUSTOMER
Customer Gap

Expected Service

Perceived Service
Service Delivery
External Communications GAP 4 to Customers

COMPANY
GAP 1 GAP 3

Customer-Driven Service Designs and Standards

GAP 2
Company Perceptions of Consumer Expectations

Prescriptions for Closing the Seven Service Quality Gaps (1)

1. Knowledge gap: Learn what customers expect
Understand customer expectations (thru market research: Surveys, customer panels;Quality functions deployment, structured brainstorming and service quality gap analysis) Improve communication between frontline staff and management Relationship focus Effective service recovery systems

Prescriptions for Closing the Seven Service Quality Gaps (2)

2. Standards gap: Specify SQ standards that reflect expectations
Set, communicate, and reinforce customer-oriented service standards for all work units Use service blueprints Effectively design physical evidence & servicescape to meet customer expectations

Prescriptions for Closing the Seven Service Quality Gaps (3)

3. Delivery gap: Ensure service performance meets standards

Appropriate recruitment and selection Clarify employee roles Train employees in priority setting and time management Develop good reward system Managing Demand and supply gap Motivating intermediaries to meet company standards and goals Managing customers to performs their roles appropriately

Prescriptions for Closing the Seven Service Quality Gaps (4)

4.Internal communications gap: Ensure that communications promises are realistic Seek comments from frontline employees and operations personnel about proposed advertising campaigns Get sales staff to involve operations staff in meetings with customers Ensure that communications sets realistic customer expectations

Prescriptions for Closing the Seven Service Quality Gaps (5) 5. Perceptions gap: Educate customers to see reality
of service quality delivered Keep customers informed during service delivery and debrief after delivery Provide physical evidence

6. Interpretation gap: Pretest communications to

make sure message is clear and unambiguous Present communication materials to a sample of customers in advance of publication

Prescriptions for Closing the Seven Service Quality Gaps (6)

7.Service gap: Close gaps 1 to 6 to meet customer
expectations consistently

Integrated Services Marketing Triangle

The Services Marketing Triangle

Company (Management incl. OPERATIONS MANAGEMENT)
Internal Marketing
enabling promises

External Marketing
setting promises

Employees

Interactive Marketing
keeping promises

Customers

Communications and the Services Marketing Triangle

Company
Internal Marketing
Vertical Communications Horizontal Communications

External Marketing Communication

Advertising Sales Promotion Public Relations Direct Marketing

Employees

Interactive Marketing
Personal Selling Customer Service Center Service Encounters Servicescapes

Customers