Understanding Service Failure

Learning Objectives

• To understand the Service Provider’s responsibility for managing service quality

• To understand the interdependence between marketing/sales, service delivery and the customer

• To understand some of the quality gaps that cause service failures

What is Service Failure?

12

34

56

7 8 9

Expected Service

Above expectation (great service)

Below expectation (poor service)

Zone of Tolerance

Service Failure is the process of NOT keeping promises

Failed service

1

23

4

56 7 8 9

Causes of Service Failure

The equipment

Actions (& inactions) of staffThe systems

The process

Actions of the customer

Actions of other customers

The facilities and environment

The expectations

The Service Provider needs to manage

these as well.

What Needs to be Managed?

The equipment

Actions (& inactions) of staffThe systems

The process

Actions of the customer

Actions of other customers

The facilities and environment

The expectations

If something can affect the service then the Service

Provider becomes responsible for managing it

The Service Provider needs to manage

these as well.

Managing CustomersWe limit their

choices

We restrict their movement

We tell them what to do

Managing Other CustomersWe make them

wait

We choose which customers to serve

The Promises Model

Basic Service Promises Model

CustomerService Provider

A Service consists of Two Things:

1. Someone making a promise (also known as a Sale)

2. Someone keeping a promise (also known as Delivery)

Delivering a Promise

Making a Promise

Normal Service Promises Model

Delivery Customer

Marketing/ Sales

Making Prom

ises

Keeping Promises

Service Provider

In a large organisation promises can be made and delivered by different groups

This can complicate things…

Keeping Promises

Making Prom

ises

“This is pest control, how may I help

you?”

Promises Model of Service Delivery

Delivery Customers

Marketing/ Sales

Making Prom

ises

Enab

ling

Prom

ises

Keeping PromisesSource: Parasuraman, Zeithaml, Berry, SERVQUAL: a multi-item scale for measuring consumer perceptions of service quality

The three groups are linked and interdependent

Service Delivery need to understand the service

and be able to provide it.

Service Failure: Understanding Gaps

Perceived service quality gap

Gaps Cause Service Failures

Delivery Customers

Marketing/ Sales

Making Prom

ises

Enab

ling

Prom

ises

Keeping Promises

Market comms gap

Service delivery gap

Management perception gap

Quality specification gap

Management Perception Gap

Perceived service quality gap

Delivery Customers

Marketing/ Sales

Making Prom

ises

Enab

ling

Prom

ises

Keeping Promises

Market comms gap

Service delivery gap

Management perception gap

Quality specification gap Management has an

inaccurate understanding of quality expectations

Quality Specification Gap

Perceived service quality gap

Delivery Customers

Marketing/ Sales

Making Prom

ises

Enab

ling

Prom

ises

Keeping Promises

Market comms gap

Service delivery gap

Management perception gap

Quality specification gap Service quality specifications

do not match management expectations

Service Delivery Gap

Perceived service quality gap

Delivery Customers

Marketing/ Sales

Making Prom

ises

Enab

ling

Prom

ises

Keeping Promises

Market comms gap

Service delivery gap

Management perception gap

Quality specification gap Quality specifications and

not met by service delivery

Market Communications Gap

Perceived service quality gap

Delivery Customers

Marketing/ Sales

Making Prom

ises

Enab

ling

Prom

ises

Keeping Promises

Market comms gap

Service delivery gap

Management perception gap

Quality specification gap Messages from marketing

do not match the service experience

Perceived Service Quality Gap

Perceived service quality gap

Delivery Customers

Marketing/ Sales

Making Prom

ises

Enab

ling

Prom

ises

Keeping Promises

Market comms gap

Service delivery gap

Management perception gap

Quality specification gap The experienced service

does not match expected service

Final Word on Service Failure

• The Service Provider is responsible for managing the service – this includes managing the customer

• Gaps in the interactions between the groups create service failures

• Once a service failure occurs, the service provider needs to initiate a service recovery process