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The Gaps Model of Service Quality• Introduce a framework, called the gaps model of service quality.• Demonstrate that the most critical service quality gap to close is the customer gap, the difference between customer expectations and perceptions.• Show that four gaps that occur in companies, which we call provider gaps, are responsible for the customer gap.• Identify the factors responsible for each of the four provider gaps.
Gaps Model of Service Quality• Customer Gap: – difference between customer expectations and perceptions• Provider Gap 1 (The Knowledge Gap): – not knowing what customers expect• Provider Gap 2 (The Service Design & Standards Gap): – not having the right service designs and standards• Provider Gap 3 (The Service Performance Gap): – not delivering to service standards• Provider Gap 4 (The Communication Gap): – not matching performance to promises
The Customer Gap Expected service Customer Gap Perceived service
Key Factors Leading to the Customer Gap Customer ExpectationsCustomer Gap 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 Inadequate marketing research orientation Gap Insufficient marketing research Research not focused on service quality 1 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 Lack of encouragement to listen to customer complaints Failure to make amends when things go wrong No appropriate recovery mechanisms in place for service failures Company Perceptions of Customer Expectations
Key Factors Leading to Provider Gap 2 Customer-Driven Service Designs and Standards Gap Poor service design 2 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 formal process for setting service quality goals Inappropriate physical evidence and servicescape 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 Management Perceptions of Customer Expectations
Key Factors Leading to Provider Gap 3 Customer-Driven Service Designs and Standards Gap Deficiencies in human resource policies Ineffective recruitment 3 Role ambiguity and role conflict Inappropriate evaluation and compensation systems Lack of empowerment, perceived control, and teamwork Customers who do not fulfill roles Customers who lack knowledge of their roles and responsibilities Customers who negatively impact each other Problems with service intermediaries Channel conflict over objectives and performance Difficulty controlling quality and consistency Tension between empowerment and control Failure to match supply and demand Failure to smooth peaks and valleys of demand Service Delivery
Key Factors Leading to Provider Gap 4 Service Delivery Lack of integrated services marketing communications Gap Tendency to view each external communication as independent Absence of strong internal marketing program Ineffective management of customer expectations 4 Absence of customer expectation management through all forms of communication Lack of adequate education for 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 Expected ServiceCUSTOMER Customer Gap Perceived Service ExternalCOMPANY Service Communications to Delivery Gap 4 Customers Gap 3 Gap 1 Customer-Driven Service Designs and Standards Gap 2 Company Perceptions of Consumer Expectations
Service Quality: The Parasuraman, Berry and Zeithaml ModelsParasuraman, Zeithaml, and Berry, professors at variousAmerican business schools- built a conceptual model ofservice quality, developed a questionnaire called SERVQUALwhich measures service quality, and conceptualised a modelfor shortfall in service quality called the Gaps Model. We willdiscuss their work, as it forms an important part of theliterature on services marketing. 10
Contd…Service QualityThese three authors contend that the customer is the bestjudge of service quality. They identified five criteria thatcustomers use to evaluate service quality. These were- Tangibles Reliability Responsiveness Assurance Empathy 11
Definitions of the SERVQUAL Dimensions• Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials.• Reliability: Ability to perform the promised service dependably and accurately.• Responsiveness: Willingness to help customers and provide prompt service.• Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence.• Empathy: Caring, individualized attention the firm provides its customers. 12
Determinants of Perceived Service QualityDimensions of Service Quality Word of Personal Past1. Access Mouth Needs Experience2. Communication3. Competence4. Courtesy External5. Credibility Expected Communication Service to Customers6. Reliability7. Responsiveness8. Security Service Perceived Quality Service9. Tangibles Gap Quality10. Understanding/Knowing the Customer Perceived Service 13
Correspondence between SERVQUAL Dimensions and Original Ten Dimensions for Evaluating Service Quality Original Ten SERVQUAL Dimensions Dimensions for Evaluating Service Quality TANGIBLES RELIABILITY RESPONSIVENESS ASSURANCE EMPATHYTANGIBLESRELIABILITYRESPONSIVENESSCOMPETENCECOURTESYCREDIBILITYSECURITYACCESSCOMMUNICATIONUNDERSTANDING/KNOWING THECUSTOMER 14
The Five Key Service Dimensions• ASSURANCE - a combination of the following – Competence - having the requisite skills and knowledge – Courtesy - politeness, respect, consideration and friendliness of contact staff – Credibility - trustworthiness, believability and honesty of staff – Security - freedom from danger, risk or doubt
The Five Key Service Dimensions• EMPATHY - a combination of the following: – Access (physical and social) - approachability and ease of contact – Communication - keeping customers informed in a language they understand and really listening to them – Understanding the customer - making the effort to get to know customers and their specific needs
Framework for isolating differences in evaluation of quality • Search Properties : attributes which a consumer determine prior to purchasing a product. – Ex colour, style, price, fit, feel, hardness, and smell • Experience Properties : attributes which can only be discerned after purchase or during consumption – Ex taste, wearability, and dependability.
• Credence properties : Characteristics which the customer may find impossible to evaluate even after purchase and consumption.• These aspects of service quality can be categorized into the 10 service quality determinants and can be arrayed along a continuum ranging from easy to evaluate to difficult to evaluate
Figure 5.1Customer Perceptions of Quality and Customer Satisfaction
Factors Influencing Customer Satisfaction• Product/service quality• Specific product or service features• Attributions for service success or failure• Perceptions of equity or fairness• Other consumers, family members, and coworkers• Price• Personal factors – the customer’s mood or emotional state – situational factors
Service Quality• The customer’s judgment of overall excellence of the service provided in relation to the quality that was expected.• Service quality assessments are formed on judgments of: – outcome quality – interaction quality – physical environment quality