The Customer 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

Expectations

Customer Perceptions

Key Factors Leading

to the Customer Gap

Customer

Gap

Gaps Model of Service Quality

Customer Gap:

difference between customer expectations and perceptions

Provider Gap 1 (Knowledge Gap):

not knowing what customers expect

Provider Gap 2 (Service Design & Standards Gap):

not having the right service designs and standards

Provider Gap 3 (Service Performance Gap):

not delivering to service standards

Provider Gap 4 (Communication Gap):

not matching performance to promises

Company Perceptions of Consumer Expectations

Expected Service

CUSTOMER

COMPANY

Gap 1:

The Listening Gap

Provider Gap 1

Perceived Service

Key Factors Leading to Provider Gap 1

CUSTOMER

COMPANY

Gap 2: The Design and Standards Gap

Customer-Driven Service Designs and Standards

Company Perceptions of Consumer Expectations

Provider Gap 2

Key Factors Leading to Provider Gap 2

CUSTOMER

COMPANY Service Delivery

Gap 3: The Performance Gap

Customer-Driven Service Designs and Standards

Provider Gap 3

Key Factors Leading to Provider Gap 3

CUSTOMER

COMPANY External Communications to Customers

Gap 4: The Communication Gap

Provider Gap 4

Service Delivery

Key Factors Leading to Provider Gap 4

Gaps Model of Service Quality

Ways to Use Gap Analysis

Overall Strategic Assessment:

How are we doing overall in meeting or exceeding

customer expectations?

How are we doing overall in closing the four company

gaps?

Which gaps represent our strengths and where are our

weaknesses?

Hong Kong Disneyland

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Objectives for Case:

Hong Kong Disneyland

Provide an example of a carefully designed operating concept and service delivery system that has produced good results

Illustrate the benefit that can accrue from specializing in one service and focusing on a narrow market segment

Examine capacity planning and utilization for a service with high demand

Consider how elements from the services marketing mix (people, process, physical evidence) have an impact on service quality

Current Holdings of the Walt Disney Company

How Disneys Assets and Practices Recontextualize to

Japan and France

Annual Visitor Arrivals in Hong Kong

Visitor Arrivals by Country/Territory of Residence

Case Discussion Questions

Hong Kong Disneyland had mechanisms in place to adapt to local Hong Kong culture, yet these means appeared to be ineffective. Why?

What areas, in terms of culture adaptation, still need further improvement?

Chinese guests often do not know norms of international behavior when traveling abroad, which creates a special problem for Hong Kong Disneyland. What can Hong Kong Disneyland do to alleviate this problem?

Case Discussion Questions

Identify two issues challenging Hong Kong Disneylands current operations, and propose corresponding solutions.

What would be some of the foreseeable challenges for the Walt Disney Company if it chooses to enter the China market?

How can experience gained from running Hong Kong Disneyland help the Walt Disney Companys intended expansion into the China market?

Behavior of Chinese Guests

Education to make guests aware of both undesirable and desirable

behavior through advertisements or videos

Health ambassador to promote desirable behavior direct (face-to-face) to

guests

Penalty give initial warnings, then cash penalties, to those who

engage in undesirable behavior

a difficult issue, as this could negatively affect customers service experience and reduce interest in returning in the future

Hong Kong Disneyland Challenges Guest

Attendance

Low attendance typically occurs on weekdays; park is

overcrowded during weekends and holidays

Strategies are needed to smooth out demand:

identify special holidays

maintain tight control over sale of non-dated admission

tickets

improve communication and coordination with travel

agencies

develop comprehensive contingency plans in response to

unforeseeable overcrowding

Hong Kong Disneyland Challenges Negative

Publicity

Media reports have tended to be negative regarding Hong Kong Disneyland: guests irresponsible behavior; parks small size; limited variety of

attractions; chaotic incidents at the park

Strategies are needed to uphold a positive image: organize more special events as a means for compensating for the small

size of the park

embed some educational elements into certain park events e.g., an introduction tour

initiate activities demonstrating corporate social responsibility to improve image of the park e.g., donations to charitable organizations, environmental protection

programs

develop connections with related businesses to stimulate more visits to Hong Kong Disneyland e.g., cable cars on Lantau Island, exhibition centers

Challenges in Entering the China Market

Cultural leap

Limited brand awareness

Sluggish negotiation progress with government

officials

Lessons Learned from Hong Kong Disneyland in

Expanding into China

Awareness of behavioral characteristics of Chinese

guests

would be helpful in designing appropriate product offerings

and marketing strategies

The vibrant side of Chinese guests

highlights the importance of contingency planning and the

necessity to carefully manage customer expectations

Human resource management of cast members

provides a better understanding of employee behavior and

work attitudes

Hong Kong Disneyland Update

As of early 2007, Hong Kong Disneyland was still struggling

In a carefully worded statement on May 9, 2007, the park stated: Hong Kong Disneyland recognizes the attendance and

guest spending have fallen short of initial expectations.

Attendee complaints: the park is too small

the ticket prices are too high

In same May 9, 2007 statement, Disney unveiled an expansion plan in hopes of improving attendance