Assignment: ‘Gap Model for BASIC Bank LTD’

Course name: Service Marketing

Course code: MKT-6302

Submitted to:
Dr. Mohammad Abdullah Mahfuz
Professor
MBA(Professional)
Department of Marketing
Jagannath University

Submitted by:
Samia Alam
ID: M 22010204189
Section: B
Department of Marketing
Jagannath University

Date of Submission:17th June, 2023

 Contents
Introduction ............................................................................................................................... 1
Company Overview................................................................................................................... 1
Service and Products of BASIC Bank ...................................................................................... 1
Gap Analysis Model of BASIC Bank ....................................................................................... 2
Managerial Implications and Recommendation ........................................................................ 5
Reference ................................................................................................................................... 7
 Title: ‘GAP Model of Service Quality for BASIC Bank Limited’

Introduction
The economy of a country is largely dependent on banking sector. In this case, Bangladesh is
not exceptional. BASIC Bank is playing a great role to develop the economy of Bangladesh.
Client expectations are increasing day by day from this bank. That is why; managers in BASIC
Bank are under increasing pressure to demonstrate that their services are customer-focused and
that continuous performance improvement is being delivered. In spite of having resource
constraints, the banks must concentrate whether the customer expectations are properly
understood and measured. They will also focus on whether any gaps from client point of view
are identified. This information then assists a manager in identifying cost-effective ways of
closing service quality gaps and of prioritizing which gaps to focus on—a critical decision
given scarce resources. One of the aims of this assignment is to use of service gap model in
order to ascertain any actual or perceived gaps between customer expectations and perceptions
of the service offered.

Company Overview
BASIC Bank Limited One of the stated owned commercial bank in Bangladesh. The main
purpose of Established this bank to invested in small industries in Bangladesh. But nowadays
BASIC Bank expands their activities and invests not only small industry also medium
and large manufacturing industries. BASIC Bank Limited (Bangladesh Small Industries and
Commerce Bank Limited) registered under the Companies Act 1913 on the 2nd of August,
1988, started its operations from the 21st of January, 1989. Itis governed by the Banking
Companies Act 1991. The Bank was established as the policy makers of the country felt the
urgency for a bank in the private sector for financing small scale Industries (SSIs). At the
outset, the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent
shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The
BCC Foundation being nonfunctional following the closure of the BCCI, the Government of
Bangladesh took over 100 percent ownership of the bank on 4th June 1992. Thus the Bank is
state-owned. However, the Bank is not nationalized; it operates like a private bank as before
(Limited, About Bank, 2010).

Service and Products of BASIC Bank

As a new generation private commercial bank of the country, BASIC Bank Limited provides
all conventional services to the clients. They deliver Retail Banking, Cards, Corporate
Banking, Islamic Banking, SME Banking, International Banking, and Online Banking Service.
The Retail Banking of BASIC Bank Limited is segmented in two main areas regarding Deposit
Products and Loan Products. Deposit products are:

Savings Bank (SB) Account

• Current Account
• Short Term Deposit
• Fixed Deposit Receipts
• Shanchay Plus
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• Monthly Benefit Plus
• Double Growth Deposit Scheme
• Triple Benefit Plus

Loan Products under Retail banking are:

• Auto loan
• Personal Loan
• Any Purpose Loan
• House Finance
• Senior Citizen Support
• Education loan
• Unsecured Personal Loan
• Loan for Professionals
One of the major fields of Credit Banking of BASIC Bank Limited is Corporate Banking.
Under this it concentrates on the following: Spinning, Textile, Garments, Transport, Real
Estate, Telecommunication and so forth. At present the Bank has real-time e-banking branches
in both Urban and Rural areas. The online banking has the following facilities of:
• Internet Banking
• Mobile Banking
• Express Cash
• SMS Banking

Gap Analysis Model for BASIC Bank

Conceptual model of services quality was first introduced in 1985 by presenting a concept
called service quality gap in terms of “gap analysis” model by Parasuraman et al. They defined
services quality as the distance/gap between customers' expectations from their services and
their understandings from the qualities received. Gap analysis model is the cooperation
between the organizations’ activities and the link between these activities and the satisfactory
level of the quality offered from the standpoint of the customers.

Among these links, the gaps are investigated, the existence of gap and their process prevents
reaching satisfactory level of service quality. In this model, existing gap between the effective
factors on service quality and customer’s satisfaction after investigating them. Before
customers buy a service, they have expectations about service quality based on personal needs,
previous expectations, suggestions heard and the advertisements of the service previous
institute. After buying and consuming services, customer compare the quality expected with
what they have really received. If offerings the service is in the tolerance range, they would
feel that the service is suitable, but if the real quality is lower than proper services level being
different from customer expectation, there would be a gap between the performance of the
service provider and customer expectations.

Reducing the customer's distance through the delivery of high-quality services is a challenging
task requiring a variety of organizational roles and staff members with different skill sets. On
decision-making level, managers tend to provide a frame with the help of which the presented
services quality to the customers can be investigated accordingly. For a long time, the
managers of the servicing organizations have been confused in the field of encountering with
how to cope with organized performance of this issues.
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 Fig.: The relationship between customers' expectations, satisfaction and understanding from services quality.

Gap-1: The Difference Between Customers' Expectations and Management's Conclusion

from Customers' Needs: This gap is due to lack of sufficient knowledge of the management
of the organization in relation to customers' expectations. If managers who have complete
responsibility and empower in policy-making and determining the trend of the organization do
not have correct customers' expectations in relation to their services, chain selection of
improper decisions results in non-optimum devote of resources and facilities of the
organization whose logical results is non-satisfaction of customers from the security of services
offered.
According to the secondary data of BASIC Bank, the GAP between their customer expectation
& perception is low, which means most of customers get what most of the customers expect.
However, the GAP is low because most of the consumers do not have the highest expectation.
Again, the GAP between customer expectation & perception is low, which does not necessarily
mean BASIC Bank Ltd.’s service facility is top notch, rather the expectation is lower.

Gap-2: Non-agreement of Quality Specifications of the Products Presented with

Customers' Expectations from Services Quality: Gap 2 assumes that the management of the
organization has a correct understanding of customer's expectations. Now if managers cannot
transform their conclusions into proper performance standards, customer's satisfaction

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inevitably would not be obtained. On the other hand, many managers believe that determining
performance standards in relation to customer's expectations is almost impossible for which
many reason are offered. For example, in many cases customers' expectations are irrelative or
illogical or various, but the main reason of making this gap is the lack of previous commitment
of the management for offering quality services.

To bridge this gap BASIC Bank focus on gathering regular customer feedback to update and
improve its service design and establish customer-driven service standards. It also reviews and
update its physical evidence and services cape to ensure that they align with customer
preference and expectation. By doing so, Basic Bank can deliver a more satisficing and relevant
customer experience.

Gap-3: Lack of Reaching Service Criteria: The third gap is the difference between service
quality specification and the service actually delivered. This is of great importance to service
where the delivery system relies heavily on people. It is extremely hard to ensure that quality
specifications are when a service involves immediate performance and delivery in the presence
of the client. This is the case in many service industries: for example, a medical practice is
depending on all the administrative, clerical and medical staff performing their tasks according
to certain standards.
To remove this gap, BASIC Bank focus on aligning its human resource policies and practices
with delivering high-quality customer service, ensuring that customers understanding and
fulfill their roles in the service delivery process, improving the performance of service
intermediaries, and ensuring that supply and demand are matched effectively. By doing so, it
can improve the perceived and actual service performance experienced by customers.

Gap-4: Non-agreement of Performance and Commitments and Promises: The fourth

gap is the difference between service delivery intention and what is communicated about the
service to customers. These established expectations within the customer may not be met.
Often this is the result of inadequate communication by the service provider. This gap can arise
due to a lack of integrated service marketing communications, ineffective management of
customer expectations, overpromising, inadequate horizontal communications and
inappropriate pricing.

 Lack of integrated services marketing communications: The organization may not be

effectively integrating its various marketing communication channels, such as advertising,
sales promotions, and public relations, leading to inconsistencies in the messages being
communicated to customers.
 Ineffective management of customer expectations: The organization may not be managing
customer expectations effectively, leading to customer dissatisfaction when the actual
service performance does not meet their expectations.
 Overpromising: The organization may be overpromising what it can deliver to customers,
leading to unrealistic expectations and dissatisfaction when these expectations are not met.
 Inadequate horizontal communications: There may be inadequate communication and
coordination between different departments within the company, leading to gaps in service
delivery and customer dissatisfaction.
 Inappropriate pricing: Their pricing may not be aligned with the value delivered to
customers, leading to customer dissatisfaction with the perceived value of the service.

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To bridge this gap, BASIC Bank focus on integrating its marketing communication channels,
managing customer expectations effectively, avoiding over promising, improving
communication and coordination between departments, and aligning its pricing with the value
delivered to customers. By doing so, this organization can improve the consistency of its
messaging, meet customer expectations, deliver value to customers, and improve overall
customer satisfaction.

Gap #5: The Difference Between Customers' Expected Services and the Presented Ones:
It is obvious that each of the four above-mentioned gaps leads to the nonsatisfaction of the
customer or the fifth gap. The fifth gap is indeed the result of the existence of gaps No. 1-4
such that the fifth gap decreases or is eliminated with decreasing or eliminating each of the
four gaps. Therefore, the management of the organization can decrease the fifth gap by trying
to decrease or eliminate each of the gaps 1-4 improving the quality of the products of the
organization. An active management knows that eliminating gap #5 is not possible; since
customers' needs change repeatedly and on the other hand, the quality services presented by
the competitors become better and better day by day.

Therefore, first the management of BASIC Bank should identify the reasons of the non-
satisfaction of its customers trying to conform customers' needs to quality specifications of the
products presented. In addition, this process must be performed repeatedly by the manager
whose result is continuous improvement which is undoubtedly one of the important reasons in
the success of leading organizations throughout the world.

Managerial Implications and Recommendation

From this study, I can learn that there exist some gaps in service providing process. To remove
this gap, the overall organizational system should be changed and improved. Following criteria
are recommended from clients’ viewpoint to reduce the service gaps and increase customer
satisfaction.
 The bank’s mission should include a focus on customers.
 Training and motivational programmers should be introduced to improve the employee
skill.
 The bank should take steps to minimize the operation time.
 The bank has to be more conscious of building customer relationship. To do this, the
bank can consider “Customer Involvement Program.”
 The bank management should ensure that all employees possess skill and quality.
 Employees have to express solidarity with the customer.
 Employees have to be aware of customer expectations.
 As this is the largest commercial bank of country, more employees have to be engaged
here to serve the customers properly.
 Every client should be focused individually.
 More modern equipment’s have to be introduced here to provide better service.
 E-banking facilities of this bank have to be more improved.
 The concerned authority should remove this problem immediately

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Conclusion
BASIC Bank Limited is a state owned bank. It is committed to provide high quality financial
services / products to contribute to the growth of GDP of the country through stimulating trade
and commerce, accelerating the pace of industrialization, boosting up export, creating
employment opportunity for the educated youth, poverty alleviation, raising standard of living
of limited income group and overall sustainable socio-economic development of the country.
BASIC Bank has made a strong position through its varies activities. Its number of clients,
amount of deposit and investment money increases day by day. This bank already has shown
impressive performance in investment. Consumer are more or less satisfied with the present
services of the bank now should think to start new services and take different types of
marketing strategy to get more customers in this competition market of banking. If they found
gap could be removed from the process the level of satisfaction would be even greater. At last
it can be said that BASIC Bank Ltd. is growing fast and its contribution in our economy is also
considerable.

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Reference
1. TEXT BOOK: Service Marketing by Valarie A. Zeithaml / Mary Jo Bitner / Dwayne D.
Gremler
2. https://www.basicbanklimited.com/
3. Khan, F. (2012). An Analysis of the Service Gap of Advertising Agencies in Bangladesh:
An Empirical Study on Ad Agency Clients. Bangladesh Research Publications Journal,
3(4), 1171-118

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