Gaps Model of Service Quality

By Prof. Ashok Kumar Patnaik Head Marketing and Communication-AIMS

Prof. Ashok Patnaik

What is GAP
‡ The customer gap is the difference between customer expectations and perceptions. ‡ For e.g. when you buy an expensive car/ buy a business class ticket you expect a high level of service, considerably superior to the other cheaper options available.

Prof. Ashok Patnaik

Five Dimensions of Service Quality
‡ ‡ ‡ ‡ Reliability: Delivering on promise Responsiveness: Being willing to help Assurance: Inspiring trust and confidence Empathy: Treating customers as individuals ‡ Tangibles: Representing the service physically
Prof. Ashok Patnaik

remembers previous problems and preferences ‡ Repair facility. no waiting.Example: Car repair ‡ Problem fixed at the first time and ready when promised ‡ Accessible. uniforms. waiting area. equipment Prof. responds to requests ‡ Knowledgeable & skilled mechanics ‡ Acknowledges customer by name. Ashok Patnaik .

uniforms Prof. departure and arrival on schedule ‡ Prompt and speedy system of ticketing. Ashok Patnaik . competent employees ‡ Understands special individual needs.Example: Airline ‡ Flights to promised destination. good safety record. ticketing counters. anticipate customer needs ‡ Aircraft. inflight baggage handling ‡ Trusted name. baggage area.

The customer gap Expected Service Customer Gap Perceived Service Prof. Ashok Patnaik .

superior quality ingredients) Customer Gap Perceived Service (experience you get at the end of the day) Prof. temperature. Ashok Patnaik . service style.The customer gap (Restaurant) Expected Service (hygiene.

Basis for Gaps model ‡ Closing the gap between what customers expect and what they perceive is critical to delivering quality service. Ashok Patnaik . Prof. ‡ It aims at understanding the customer better and better than any thing else as customer is the critical component of services marketing.

The provider gaps ‡ These gaps occur within the organisation providing the service: ± Gap1: Not knowing what customers expect ± Gap2: Not selecting the right service designs and standards. ± Gap3: Not delivering to service designs and standards ± Gap4: Not matching performance to promises Prof. Ashok Patnaik .

Ashok Patnaik . Few Reasons: ± Managers don¶t interact with customers directly ± They may be unwilling to ask about expectations ± They may be unprepared to address them Prof.Not knowing what customer expect ‡ It is the difference between customer expectations of service and company understanding of those expectations.

Key factors leading to providers gap-1A ‡ Inadequate marketing research orientation ± Insufficient marketing research ± Research not focused on service quality ± Inadequate use of market research Prof. Ashok Patnaik .

Key factors leading to provider gap-1B ‡ Lack of upward communication ± Lack of interaction between management and customers ± Insufficient communication between contact employees and managers ± Too many layers between contact personal and top management Prof. Ashok Patnaik .

Key factors leading to provider gap-1C ‡ Insufficient relationship focus ± Lack of market segmentation ± Focus on transactions rather than relationships ± Focus on new customers rather than relationship with existing customers Prof. Ashok Patnaik .

Key factors leading to provider gap-1D ‡ Inadequate service recovery ± Lack of encouragement to listen to customer complaints ± Failure to make amends when things go wrong ± No appropriate recovery mechanism in place to service failures Prof. Ashok Patnaik .

Prof. Ashok Patnaik . ‡ Another perquisite is the presence of service designs and performance standards that reflect those accurate perceptions.Not having the right service quality designs and standards ‡ Accurate perceptions of customer¶s expectations are necessary but not sufficient for delivering superior quality service.

Prof.Not having the right service quality designs and standards ‡ Customer driven standards are different from the conventional performance standards that companies establish for service. Ashok Patnaik . ‡ There are operations standards set to correspond to customer expectations and priorities rather than company concern s such as productivity or efficiency.

Ashok Patnaik . undefined service designs ± Failure to connect service design to service positioning Prof.Not having the right service quality designs and standards ‡ Poor service design ± Unsystematic new service development process ± Vague.

Ashok Patnaik .Not having the right service quality designs and standards ‡ Absence of customer driven standards ± Lack of customer driven standards ± Absence of process management to focus on customer requirements ± Absence of formal process for setting service quality goals Prof.

Ashok Patnaik .Not having the right service quality designs and standards ‡ Inappropriate physical evidence and service escape ± Failure to develop tangibles in line with customer expectations ± Servicescape design that does not meet customer and employee needs ± Inadequate maintenance and updating of the servicescape Prof.

Not delivering to service designs and standards ‡ Deficiencies in human resource policies ± Ineffective recruitment ± Role ambiguity and role conflict ± Poor employee technology job fit ± Inappropriate evaluation and compensation systems ± Lack of employment. Ashok Patnaik . perceived control and teamwork Prof.

Not delivering to service designs and standards ‡ Customers who do not fulfill roles ± Customers who lack knowledge of their roles and responsibilities ± Customers who negatively impact each other Prof. Ashok Patnaik .

Ashok Patnaik .Not delivering to service designs and standards ‡ Problems with service intermediaries ± Channel conflict over objectives and performance ± Difficulty controlling quality and consistency ± Tension between employment and control Prof.

Ashok Patnaik .Not delivering to service designs and standards ‡ Failure to match supply and demand ± Failure to smooth peaks and valleys of demand ± Inappropriate customer mix ± Over-reliance on price to smooth demand Prof.

Ashok Patnaik .Not matching performance to promises ‡ Lack of integrated services marketing communications ± Tendency to view each external communication as independent ± Absence of interactive marketing in communication plans ± Absence of strong internal marketing programme Prof.

Not matching performance to promises ‡ Ineffective management of customer expectations ± Absence of customer expectation management through all forms of communication ± Lack of adequate education for customers Prof. Ashok Patnaik .

Ashok Patnaik .Not matching performance to promises ‡ Over promising ± Over promising in advertising ± Over promising in personal selling ± Over promising through physical evidence cues Prof.

Ashok Patnaik .Not matching performance to promises ‡ Inadequate horizontal communications ± Insufficient communication between sales and operations ± Insufficient communication between advertising and operations ± Differences in policies and procedures across branches or units Prof.

CUSTOMER Expected Service Customer gap Perceived Service COMPANY Gap3 Service Delivery Gap4 Customer Driven Service Designs and Standards External Communication to Customers Gap1 Gap2 Company perceptions of Consumer Expectations Prof. Ashok Patnaik .

Factors that influence service expectations Personal needs Explicit and implicit service promises Word of mouth past experience Beliefs about What is possible Desired services ZONE OF TOLERANCE Perceived services Adequate services Predicted service Situational factors Prof. Ashok Patnaik .

Ashok Kumar Patnaik Prof. Ashok Patnaik .Consumer Behaviour in Services By Prof.

Ashok Patnaik .Daniel Bethamy Prof.³Memorable are experiences and not gadgets´ .

Ex Chairman.Companies doing business in India need to capture the differences in consumers¶ needs and aspirations and the barriers and triggers to change´ ± Keki Dadiseth.Consumer behaviour in service settings ‡ ³For companies who want to successfully enter the Indian market.. HLL India Prof. there is no substitute for a deep understanding of the Indian consumer«. Ashok Patnaik .

The purchase process of services Awareness of Need Information search Evaluation of alternative service suppliers Request service from chosen supplier Service delivery Evaluation of service performance Prof. Ashok Patnaik Future Intentions .

friends.Pre-purchase stage ‡ Seeking information from respected personal sources (family. peers) ‡ Relying on a firm that has a good reputation ‡ looking for guarantees and warranties ‡ Visiting service facilitates or trying aspects of the service before purchasing ‡ Asking knowledgeable employees about competing services ‡ Examining tangible cues or other physical evidence ‡ Using the internet to compare service offerings Prof. Ashok Patnaik .

An understanding of CB lies at the heart of services marketing ‡ Why do customers buy one service and not the other? ‡ Who or what influences their decisions and their brand preferences? ‡ What criteria do they evaluate possible alternatives? ‡ Why do they buy this type of service when a different type of service might have provided a better solution to their needs? ‡ What drives these needs in the first place? Prof. Ashok Patnaik .

Perceived risks in purchasing and using services-2 ‡ Physical risk (personal injury or damage to possessions) ‡ Psychological risk (personal fears and emotions) ‡ Social risk (how others think and react) ‡ Sensory risk (unwanted impacts on any of the five senses) Prof. Ashok Patnaik .

Ashok Patnaik .Customer decision making and evaluation of services Need reorganization Information search Evaluation of alternatives Purchase Consumer Experience Post experience evaluation Prof.

‡ Self actualization involves self-fulfillment and enriching experiences. protection and security. accomplishment and self-esteem. Ashok Patnaik .Need recognition ‡ Physiological needs are such as biological needs such as food. Prof. ‡ Ego needs are for prestige. water and sleep. friendship and acceptance. ‡ Safety and security needs include shelter. success. ‡ Social needs are for affection.

Information search ‡ Personal and non-personal sources ‡ Perceived risk Prof. Ashok Patnaik .

Ashok Patnaik .Understanding user costs for services ‡ Price and other financial expenditure ± ± ± ± ± Search costs Purchase and use costs After costs Operating costs Incidental expenses ‡ Non-financial outlays and burdens ± ± ± ± Time expenditures Physical effort Psychological burdens Sensory burdens Prof.

Perceived risks in purchasing and using services-1 ‡ Functional risk (unsatisfactory performance outcomes) ‡ Financial risk (monetary loss. consequences of delays) Prof. unexpected costs) ‡ Temporal risk (wasting time. Ashok Patnaik .

Understanding difference among consumers ‡ The role of culture ± Values and attitudes differ across culture ± Manners and customs ± Material culture ± Aesthetics ± Educational and social institutions Prof. Ashok Patnaik .

Ashok Patnaik .Understanding difference among consumers ‡ Group decision making ± Households ± Organisations ‡ ‡ ‡ ‡ ‡ The initiator The gatekeeper The decider The buyer The user Prof.

Consumer expectations of service Prof. Ashok Patnaik .

Prof. through knowledge about customer expectations is critical to service matters.Customer expectation ‡ It is the beliefs about service delivery that serve as standards or reference points against which performance is judged. ‡ Customers compare their perceptions of performance with these reference points when evaluating service quality. Ashok Patnaik .

‡ Normative ³should´ expectation: As expensive as this restaurant is. it ought to have excellent food and service. Ashok Patnaik . Prof.Types of service expectations ‡ Ideal expectations or desire: Every one says this restaurant is as good as one in France and I want to go somewhere very special for my birthday.

but when it gets busy the service is slow.Types of service expectations ‡ Experience based norms: Most times this restaurant is very good. ‡ Acceptable expectations: I expect this restaurant to service me in an adequate manner. ‡ Minimum tolerable expectations: I except terrible service from this restaurant but come because the price is low. Prof. Ashok Patnaik .

Ashok Patnaik .Sources of adequate service expectations ‡ ‡ ‡ ‡ Temporary service intensifiers Perceived service alternatives Self-perceived service role Situational factors Prof.

Issues in customer service expectations
‡ What does a service marketer do if customer expectations are unrealistic¶? ‡ Should a company try to delight the customer? ‡ How does a company exceed customer service expectations? ‡ Do customer service expectations continually escalate? ‡ How does a service company stay ahead of competition in meeting customer expectations? Prof. Ashok Patnaik

Customer perception of service

Prof. Ashok Patnaik

Consumer perception
‡ Satisfaction vs service quality ‡ Transaction vs cumulative perception

Prof. Ashok Patnaik

family members and co-workers Prof. Ashok Patnaik .Determinants of customer satisfaction ‡ ‡ ‡ ‡ ‡ Product and service features Consumer emotions Attributes for service success or failure Perceptions of equity or fairness Other consumers.

railway ticket from internet) ± Phone encounters (customer service. Ashok Patnaik . ticket counter.) Prof. food and beverage services etc.Service encounters ‡ Types of service encounters ± Remote encounters (interaction to bank through ATM. general enquiry and order booking) ± Face-to-face encounters (maintenance personal.

employee response to service delivery failures ‡ Adaptability.Pleasure and displeasure in service encounters ‡ Recovery.employee response to customer needs and requests ‡ Spontaneity-unprompted and unsolicited employee actions ‡ Coping ±employee response to problem customers Prof. Ashok Patnaik .

Listening to customer through research ‡ Companies think that they believe they know customers should want and deliver that. ‡ Listening to customers uses marketing research to understand customers and their requirements fully. rather than finding out what they do want. Prof. Ashok Patnaik .

so that service recovery can be attempted Prof.Research objectives for services ‡ To discover customer requirement or expectation for service ‡ To monitor and track service performance ‡ To assess overall company performance compared with that of competition ‡ To assess gaps between customer expectations with perception ‡ To identify dissatisfied customers. Ashok Patnaik .

and rewards ‡ To determine customer expectations for a new service ‡ To monitor and forecast changing customer expectation in an industry Prof.Research objectives for services ‡ To gauge service effectiveness changes in service delivery ‡ To appraise the service performance of individuals and teams for evaluation. recognition. Ashok Patnaik .

Ashok Patnaik . behavioral intentions or actual behavior Prof.Criteria for an effective service research programme ‡ Includes both qualitative and quantitative research ‡ Includes both expectations and perceptions of customers ‡ Balances the cost of the research and the value of the information ‡ Includes statistical validity when necessary ‡ Measures priorities or importance of attributes ‡ Occurs with appropriate frequency ‡ Includes measurement of loyalty.

Ashok Patnaik .Complaint soliciation ‡ To identify /attend to dissatisfied customers ‡ To identify common service failures Prof.

Critical incident studies ‡ To identify best practices at transaction level ‡ To identify customer requirements as input for quantitative studies ‡ To identify common service failure points ‡ To identify systemic strength and weaknesses in customer contact services Prof. Ashok Patnaik .

Requirement research ‡ To identify customer requirements as input for quantitative research Prof. Ashok Patnaik .

Ashok Patnaik .Relationship surveys ‡ To monitor and track service performance ‡ To assess overall company performance ‡ To determine links between satisfaction and behavioural intentions ‡ To assess gaps between customer expectations and perceptions Prof.

Ashok Patnaik .Trailer calls ‡ To obtain immediate feedback on performance of service transactions ‡ To measure effectiveness of changes in service delivery ‡ To assess service performance of individuals and teams ‡ To use as input for process improvements ‡ To identify common service failure points Prof.

Ashok Patnaik .Service expectation meetings and reviews ‡ To create dialogue with important customers ‡ To identify what individuals large customers expect and then to ensure that it is delivered ‡ To close the loop with important customers Prof.

Process checkpoint evaluations ‡ To determine customer perceptions of long term professional service during service provision ‡ To identify service problems and solve them early in the service relationship Prof. Ashok Patnaik .

Ashok Patnaik .Market oriented ethnography ‡ To research customers in natural settings ‡ To study customers from culture other than India in an unbiased way Prof.

Mystery shopping ‡ To measure individual employee performance for evaluation. reorganization and reward ‡ To identify systematic strengths and weaknesses in customer contact services Prof. Ashok Patnaik .

Ashok Patnaik .Customer panel ‡ To monitor changing customer expectations ‡ To provide a forum for customer expectations Prof.

Lost customer research ‡ To identify reasons for customer defections ‡ To assess gaps between customer expectations and perceptions Prof. Ashok Patnaik .

Ashok Patnaik .Future expectations research ‡ To forecast future expectations of customers ‡ To develop and test new service ideas Prof.

Data base marketing research ‡ To identify the individual requirements of customers using information technology and database information Prof. Ashok Patnaik .

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