Expected Service Service is not as good as expected Perceived Service

The Gaps Model of Service Quality

Not knowing what customers expect

Not matching performance to promises Service Delivery Not meeting designs and standards Customer Service Standards

Company Communications to Customers

Company Perceptions of Consumer Expectations

Selecting wrong service designs and standards

GAP 1 ‡ The difference between actual customer expectations and management s idea or perception of customer expectations M a na ge m e nt e rc e p ti n s f st m e r p e c ta ti n s p e c te d S e r ic e .

2. Unwilling to know customers expectations. Lack of Co. Inadequate marketing research orientation Managers may not interact directly with customers. Lack of upward communication. strategies to retain customers and CRM 4. 3.GAP1 ‡ Reasons 1. Lack of service recovery .

‡ Encourage upward communication. . ‡ Conduct marketing research to learn customers expectations. of layers of management. ‡ Decrease the no.Strategies to reduce Gap1 ‡ Communicate with customers about what they expect.

GAP 2 Mismatch between manager s perception of customers expectations of service quality and translation of these expectations into correct service specifications S e r ic e Q u a lit S p e c ific a t i n s M anagem ent e rc e p t i n s f ust m er p e c ta ti n s .

Market conditions-a) Competitive parity-firms translate cust. Managements belief about customers expectationsunrealistic and unreasonable 2. expectations into matching competitive offerings b)Monopoly market c) Management differences-Short term succeeding strategies .GAP 2 Reasons 1. Resource Constraints 3.

a)Hard technology Replacing man by machines b) Soft technology-training and standardization of processes ‡ ‡ .Proposed Actions to reduce Gap 2 ‡ Commitment of Top management to provide service quality Rewards and promotions based on improving and enhancing quality Involvement of customers in setting quality goals Task standardization.

GAP 3 Poor delivery of service quality Service Delivery Service Quality Specifications .

As role ambiguity increases . Wrong employees Inappropriate compensation and recognition 2. 4.GAP 3 ‡ 1. Reasons Even when guidelines exist high quality service performance is not a certainty. not trained to provide specified services Employees do not understand their roles clearly. See conflict between Top Management and Customers.role conflict increases &job satisfaction decreases.-Unawareness towards the specifications. not able or skilled. . 3. 5.

Low employee moral. Challenges in delivering quality through service intermediaries 8. Failure to match demand and supply because of perishable nature of services. Customers not fulfilling their own role in service delivery 9.6. .employees dislike towards specific customers 7.

Strategies to reduce Gap3 ‡ Enhance Teamwork among the employees ‡ Ensure there is a good employee-job fit. . ‡ Reward the employees for providing service according to specifications. ‡ Perceived employee control-Allow employees some flexibility and control in service processes. ‡ Reduce employee role conflict.

GAP 4 Differences between service delivery and external communication with customer S e rv ice D e liv e ry E x te rn a l u n ica ti n s to C u sto e rs .

Poor or lack of communication between service personnel and what is promised by advertising.` 3. 2.GAP 4 ‡ Reasons 1. Over promising by sales staff and other means of marketing communication. Increased customers expectations through media advertising .

Increase horizontal communication between marketing department and service personnel. Avoid the propensity to over promising. 3.Strategies to reduce Gap 4 1. . Inform sales personnel of promises made by salespeople and marketing communication. 2.

GAP 5 Overall differences between Expected and Perceived Quality E x p e c te d S e rv ic e P e rc e iv e d S e rv ic e .

ROQ ‡ Return on Quality : Financial payoff expected from an investment in a service quality program ‡ UPS.United Parcel Service ‡ AT&T .

Search. Experience and Credence Properties .

. Offerings high in search properties can be readily evaluated before the purchase.Search properties ‡ Physical evidence (anything that can be seen.touched. felt or otherwise evaluated before an offering is consumed) might be considered a search property.

. Offerings high in experience properties cannot be evaluated before the purchase but can be readily evaluated after they are experienced or consumed.Experience properties ‡ Such qualities as responsiveness and courtesy are experience properties because they have to be experienced to be judged.

Credence properties ‡ Offerings high in credence properties. . such as expertise. may be difficult for buyers to evaluate even after they have consumed them. Complex IT strategy or business process transformation consulting are examples of services high in credence properties.

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