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GAPS MODEL OF SERVICE QUALITY
Objectives
GAPS model of service quality Useful framework for understanding
service quality in an organization Critical service quality gap-
customer gap- diff b/w customer expectations and perceptions
Zeithmal/berry/parasuraman gaps model
CUSTOMER GAP It is the difference
b/w customer expectations and perceptions
Customer expectations are stds or ref pts that customers bring into service experience. often consist of what a customer believes should or will happen
Customer perceptions are subjective assessments of actual service experiences
Eg service levels at diff types of hotels
Expected Service
Perceived Service
Customer Gap
Closing gap b/w what customers expect and what they perceive is
critical to delivering service quality- forms basis for GAPS model
CUSTOMER GAP
Customer satisfaction and focus- are critical to competitiveness of firm- any firm wishing to deliver quality service must begin with clear understanding about its customers
PROVIDER GAPS
The Listening
Gap
The Service Design and
Standards Gap
The Service Performance
Gap
The Communicat
ion GapOccur within the org providing the service- need
to be closed
PROVIDER GAPS
The Listening Gap
LISTENING GAP
It is the difference b/w customer expectations of service and company understanding of those expectations
Main cause of not meeting Customer expectations is that firm lacks accurate understanding as to what expectations are
Why companies are unaware: no direct interaction with customers, are unwilling to ask or unprepared to address them
This leads to bad decisions and suboptimal resource allocation
Changing org- empowered teams
Customer expectations
Company perceptions of
customer expectations
Gap 1
Customer Expectations
Company Perceptions of Customer Expectations
Inadequate marketing research orientation Insufficient marketing research Research not focused on service quality Inadequate use of market research, need to remain in touch with cust- interviews, panels and surveys
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 co. strategy to cust retention- relationship mktg
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
Key Factors Leading to Provider Gap 1
Gap1
THE PROVIDER GAP 2
The Service Design and
Standards Gap
THE SERVICE DESIGN AND STANDARDS GAP
Presence of service designs and performance stds which reflect accurate perceptions- are imp
Service cos- main difficulty is to translate customer expectations into service quality specifications that their employees can understand and execute
this gap is the difference b/w company understanding of customer expectations and development of customer driven service designs and stds
Customer driven stds are operation stds set to correspond to customer expectations and priorities rather than co concerns such as productivity or efficiency
Mgt feels customer stds are unrealistic /unreasonable
Technology changes and improvements are useful in closing this gap
Customer driven service stds and
designs
Management perceptions of
customer expectations
Gap 2
Customer-Driven Service Designs and Standards
Management Perceptions of Customer Expectations
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 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
Key Factors Leading to Provider Gap 2
Gap2
THE PROVIDER GAP 3
The Service Performance
Gap
THE SERVICE PERFORMANCE GAP
Is the discrepancy b/w development of customer driven service stds and actual service performance by company employees
Inspite of guidelines and designs exist –high quality service performance is not certain
Stds must be backed by suff resources: people, systems and technology and also must be enforced to be effective
Employees must be measured and compensated on basis of performance along these stds
Thus if co fails to provide support for this stds-facilitate,encourage or support these stds- stds do no good
When level of service delivery falls short of stds,it falls short of what customers expect as well
Thus narrowing the performance gap- by ensuring that all resources needed to achieve stds are in place- will narrow this gap
Customer driven service stds and
designs
Service delivery
Gap 3
Service Delivery
Customer-Driven 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 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 Inappropriate customer mix Overreliance on price to smooth demand
Key Factors Leading to Provider Gap 3
Gap3
THE PROVIDER GAP 4
The Communicati
on Gap
THE COMMUNICATION GAP
Is the difference b/w service delivery and service providers external communications
Promises made by the org thro media, advt,sales force etc may raise customer expectations ,the stds against which customers assess service quality.
Thus discrepancy b/w actual and promised service will widen the customer gap
Broken promises: overpromises in advt or personal selling, inadequate coordination b/w operations and mktg and diff in policies and procedures across service outlet
Service delivery
External communication to
customers
Gap 3
Service Delivery
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 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
Key Factors Leading to Provider Gap 4
Gap4
PerceivedService
Expected Service
CUSTOMER
COMPANY
CustomerGap
Gap 1
Gap 2
Gap 3
External Communicatio
ns to Customers
Gap 4ServiceDelivery
Customer-Driven Service Designs and Standards
Company Perceptions of
Consumer Expectations
Gaps Model of Service Quality
SEVEN SERVICE QUALITY GAPS7 GAPS MODEL BY CHRISTOPHER LOVELOCK
7 GAPS MODEL
7 GAPS MODEL
• is the difference b/w what the service providers believe customers expect and customers actual needs and expectations
The Knowledge Gap
• is the difference b/w management perceptions of customer expectations and quality stds expected for service delivery
The Standards Gap
• is the difference b/w specified delivery stds and the service providers actual performance on this stds
The Delivery Gap
• Is the difference b/w what the company`s advt and sales personnel think are the products features, performance, and service quality level and what the company is actually able to deliver
The internal communications
Gap
7 GAPS MODEL
• is the difference b/w what is in fact delivered and what customers perceive they received
The Perceptions
Gap
• is the difference b/w what service providers communication efforts (in advance of service delivery) actually promise and what customer thinks was promised by these communications
The Interpretation
Gap
• is the difference b/w what customers expect to receive and their perceptions of the service that is actually delivered
The Service Gap
7 GAPS MODEL
Knowledge, perceptions, interpretation and service gap : represent the external gap b/w customer and organization
The standards, delivery and internal communication gap : internal gaps that occur b/w various functions and depts within the organisation
The service gap is the most critical gap : ultimate goal is to close this gap
Core strategies to address service quality gapsPrescriptions for closing the seven service quality gaps
Gap 1- Knowledge gapRx: Learn what customers expect
Sharpen market research procedures, including questionnaire and interview design, sampling, and field implementation, and repeat research studies periodically.
Implement an effective customer feedback system that includes satisfaction research, complaint content analysis, and customer panels.
Increase interactions between managers (middle and top management) and customers.
Facilitate and encourage communication between front-line employees and management.
Gap 2- Standards gapRx:Establish the Right Service Processes and Specify Standards
Get the customer service processes right: Use a rigorous, systematic, and customer-centric process for designing and redesigning customer service processes.
Standardize repetitive work tasks to ensure consistency and reliability by substituting hard technology for human contact and improving work methods (soft technology).
Set, communicate, and reinforce measurable customer-oriented service standards for all work units:
Establish for each step in service delivery a set of clear service quality goals that are challenging, realistic, and explicitly designed to meet customer expectations.
Ensure that employees understand and accept goals, standards, and priorities.
Gap 3- Delivery gapRx: Ensure That Performance Meets Standards
Ensure that customer service teams are motivated and able to meet service standards
Improve recruitment with a focus on employee-job fit; select employees for the abilities and skills needed to perform their job well.
Train employees on the technical and soft skills needed to perform their assigned tasks effectively, including interpersonal skills, especially for dealing with customers under stressful conditions.
Clarify employee roles and ensure that employees understand how their jobs contribute to customer satisfaction; teach them about customer expectations, perceptions, and problems.
Gap 3- Delivery gapRx: Ensure That Performance Meets Standards
Build cross-functional service teams that can offer customer-centric service delivery and problem resolution.
Empower managers and employees in the field by pushing decision-making power down the organization.
Measure performance, provide regular feedback, and reward customer service team performance as weII as individual employees and managers for attaining quality goals .
Gap 3- Delivery gapRx: Ensure That Performance Meets Standards
Install the right technology, equipment, support processes, and capacity:
Select the most appropriate technology and equipment for enhanced performance.
Ensure that employees working on internal support jobs provide good service to their own internal customers, the front-line personnel.
Balance demand against productive capacity. Manage customers for service quality: Educate customers so that they can perform their roles
and responsibilities in service delivery effectively. Educate, control, or terminate jay customers who
negatively affect other customers, employees, service processes, or facilities.
Gap 4- The internal communications gapRx: Ensure that communications promises are realistic Educate managers responsible for sales and marketing
communications about operational capabilities: Seek inputs from front-line employees and operations
personnel when new communications programs are being developed.
Let service providers preview advertisements and other communications before customers are exposed to them.
Get sales staff to involve operations staff in face-to-face meetings with customers.
Develop internal educational and motivational advertising campaigns to strengthen understanding and integration among the marketing, operations, and human resource functions, and to standardize service delivery across different locations.
Ensure that communications content sets realistic customer expectations.
Gap 5- The perceptions gapRx:Tangibilize and Communicate the Service Quality Delivered
Develop service environments and physical evidence cues that are consistent with the level of service provided.
For complex and credence services, keep customers informed during service delivery on what is being done, and give debriefings after the delivery so that customers can appreciate the quality of service they received.
Provide physical evidence (e.g., for repairs, show customers the damaged components that were removed).
Gap 6- The interpretations gapRx: Be Specific with Promises and Manage Customers' Understanding of Communication Content
Pretest all advertising, brochures, telephone scripts, and web site content prior to external release, to determine if the target audience interprets them as the firm intends (if not, revise and retest):
Ensure that advertising content accurately reflects those service characteristics that are most important to customers.
Let customers know what is and is not possible-and the reasons why.
Offer customers different levels of service at different prices, explaining the distinctions. identify and explain in real time the reasons for shortcomings in service performance, highlighting those that cannot be controlled by the firm. Document precisely: Upfront, what tasks and performance guarantees are included in an agreement or contract. Afterward, what work was performed in relation to a specific billing statement.
Gap 7- The service gapRx: Close Gaps 1 to 6 to Meet Customer Expectations Consistently
Gap 7 is the accumulated outcome of all preceding open gaps. It will be closed when Gaps 1 through 6 have been addressed.