28947233 the-gap-model-of-service-quality

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  • http://www.scribd.com/doc/7278538/3-Gaps-Modelhttp://www.ebooknetworking.net/ebooks/services-marketing-by-zeithaml.html
  • SERVQUAL or RATER is a service-quality framework that has been incorporated into customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer[5]) to indicate the gap between customer expectations and experience.
  • Loyal customers buy more, buy longer and tell more people - that's true customer loyalty.“
  • Personal factorsthe customer’s mood or emotional statesituational factors
  • Physical facilities and facilitating goods.
  • They are the serviceThey are the firm in the customer’s eyesThey are marketers
  • They are the serviceThey are the firm in the customer’s eyesThey are marketers
  • Direct delivery.Delivery through intermediaries.
  • MANAGE customer expectation :-Expectation is made by company waya adv, personal selling, other external communication.So making unrealistic expectation is harmful for the company That’s why company have to make the realistic promises which they can provide Improve customer education :-It is difference between service delivery and promisesAlso accurse when co. don't educate there customer
  • Expectation is made by company waya adv, personal selling, other external communication.So making unrealistic expectation is harmful for the company
  • Diff between good and services. In terms of goods promises is made after preparation of goods but in service promises is first and after that co. employee perform it. Goods are homogeneous but service can be in every delivery. 1 create effective service comm.:- Communication means advertising, its in the hand of company eg. Vodafone kutta provide clear information, use narratives to demonstrate actual service experience, focus on tangibles etc.2 coordinate external communication :-advertising, websites, sales promotion, public relations, personal selling, direct marketing3. Make realistic promises:-Same expectation is based on the advertisement of the services higher the expectation higher the quality they expects from the services.4. Offer service guaranty
  • Offer choices: provide custome choice of services in terms of service compare to price or service compare to price and time etc.Eg. Pool table u can play 1 table for 15 min rs. 100 but can play 30 mint. Table for rs. 150. Create tiered value offerings:- service as per the specifications of the consumer basically it means different version of there products as per there customer eg credit card company Communicate critrea for service effectiveness : by reaserch
  • Knowledge Gap
  • 28947233 the-gap-model-of-service-quality

    1. 1.  Quality of the service is the degree of conformance of all the relevant features and characteristics of service to all the aspects of the consumers’ needs limited by the price and delivery s/he will accept. Quality can be viewed from two perspectives: Internal quality based on conformance to specifications External quality based on customer-perceived quality
    2. 2. Gain competitive advantage, maintain loyaltyIncrease value (may permit higher margins)Improve profits
    3. 3. Expected ServiceCUSTOMER Customer Gap Perceived ServiceCOMPANY External Service Communications Delivery Gap 4 to Customers Gap 3 Gap 1 Customer-Driven Service Designs and Standards Gap 2 Company Perceptions of Consumer Expectations
    4. 4. Customer ExpectationsGap 1 •Inadequate marketing research orientation •Lack of upward communication •Insufficient relationship focus •Inadequate service recovery Company Perceptions of Customer Expectations
    5. 5. Customer-Driven Service Designs and StandardsGap • Poor service design 2 • Absence of customer-driven standards • Inappropriate physical evidence and services gap Management Perceptions of Customer Expectations
    6. 6. Customer-Driven Service Designs and StandardsGap •Deficiencies in human resource 3 policies •Customers who do not fulfill roles •Problems with service intermediaries • Failure to match supply and demand Service Delivery
    7. 7. Service DeliveryGap •Lack of integrated services marketing communications. 4 •Ineffective management of customer expectations. •Overpromising. •Inadequate horizontal communications. External Communications to Customers
    8. 8. Expected ServiceCUSTOMER Customer Gap Perceived ServiceCOMPANY External Service Communications Gap 1 Delivery Gap 4 to Customers Gap 3 Customer-Driven Service Designs and Standards Gap 2 Company Perceptions of Consumer Expectations
    9. 9.  The central focus of the gaps model is the customer gap, the difference between customer expectations and perceptions. Expectations are the reference points customers have coming in to a service experience. Perceptions reflect the service as actually received.
    10. 10. Most goods Most servicesEasy to Difficult toevaluate evaluate High in search High in experience High in credence properties properties properties
    11. 11. Desired ServiceZONE OF TOLERANCE Adequate Service
    12. 12. Desired ServiceLevel OfExpectation ZONE OF Desired Service TOLERANCE ZONE OF Adequate Service TOLERANCE Adequate Service Reliability Tangibles
    13. 13. Lasting Service Intensifiers Desired Service Personal Needs ZONE OF TOLERANCE Adequate Service
    14. 14. Lasting Service Intensifiers Desired Service Personal NeedsTemporary Service ZONE OF TOLERANCE IntensifiersPerceived Service Alternatives Predicted Adequate Service Service Self Perceived Service RoleSituational Factors
    15. 15. Explicit ServiceLasting Service Promises Intensifiers Desired Service Implicit Service Promises Personal Needs Word – Of – MouthTemporary Service ZONE OF TOLERANCE Intensifiers Past ExperiencePerceived Service Alternatives Predicted Adequate Service Service Self Perceived Service RoleSituational Factors
    16. 16.  Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business.
    17. 17.  "Customer loyalty is when an organization receives the ultimate reward for the way it interacts with its customers. “ Although customer loyalty is often achieved through offers, discount coupons, rebates and other kinds of rewards, long-term customer loyalty can only be created by making your customers feel that they are your number one priority.
    18. 18.  Customer satisfaction measures how well a customer’s expectations are met. Customer loyalty measures how likely customers are to return and their willingness to perform partner shipping activities for the organization. Customer satisfaction is a requisite for loyalty.
    19. 19.  Product/service features. Consumer emotions. Attributions for service success or failure. Perceptions of equity or fairness. Other consumers, family members. Price.
    20. 20.  Increased customer retention. Positive word-of-mouth communications. Increased revenues.
    21. 21.  Reliability: Delivering on promises. Example: receive mail at same time each day. Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.
    22. 22.  Assurance: Inspiring trust and confidence. Example: Insurance, medical services, etc.. Empathy: Treating customers as individuals. Example: being a good listener. Tangibles: Representing the service physically. Example: Food.
    23. 23.  Occurs any time the customer interacts with the firm. Can potentially be critical in determining customer satisfaction and loyalty. Is an opportunity to:  build trust  reinforce quality  build brand identity  increase loyalty
    24. 24.  Remote Encounters Phone Encounters Face-to-face Encounters
    25. 25. Check-In Bellboy Takes to Room Restaurant Meal Request Wake-Up Call Checkout
    26. 26. Sales Call Delivery and Installation Servicing Ordering Supplies Billing
    27. 27. Recovery: Adaptability:employee response employee response to service delivery to customer needs system failure and requests Coping: Spontaneity: employee response unprompted andto problem customers unsolicited employee actions and attitudes
    28. 28.  Contact employees  Customer him/herself Operational flow of  Other customersactivities People Steps in process Flexibility vs. standard Technology vs. human  Tangible communication Physical Process  Servicescape Evidence  Guarantees  Technology  Website
    29. 29. Expected ServiceCUSTOMER Customer Gap Perceived ServiceCOMPANY External Service Communications Delivery Gap 4 to Customers Gap 3 Gap 1 Customer-Driven Service Designs and Standards Gap 2 Company Perceptions of Consumer Expectations
    30. 30. CUSTOMER Expected Service Listening GapCOMPANY Company Perceptions of Consumer Expectations
    31. 31.  Listen to customers through research. Cover company strategy to retain and strengthen the relationship. Service recovery.
    32. 32.  By formal and informal method. Surveys. Critical incident studies. Complaint solicitation.
    33. 33.  To identify dissatisfied customers. To discover customer requirements or expectations. To monitor and track service performance. To assess overall company performance compared to competition. To assess gaps between customer expectations and perceptions. To appraise service performance of individuals and teams for rewards. To determine expectations for a new service. To monitor changing expectations in an industry. To forecast future expectations.
    34. 34. : Define Problem: Develop Measurement Strategy: Implement Research Program: Collect and Tabulate Data: Interpret and Analyze Findings: Report Findings
    35. 35. 987 O O O6 O O543210 Reliability Responsiveness Assurance Empathy TangiblesRetail Chain Zone of Tolerance O S.Q. Perception
    36. 36. HIGH High   Leverage Attributes to Improve Attributes to Maintain     Importance  Low   Leverage  Attributes to Maintain Attributes to De-emphasizeLOW HIGH Performance
    37. 37. Partners Friends AcquaintancesStrangers
    38. 38. EnhancingRetainingSatisfying Acquiring
    39. 39. The Customer Pyramid What segment spends more with usMost Profitable over time, costs less to maintain, and spread positive word of mouth?Customers Platinum Gold Iron What segment costs us in time, effort, and money yet does not provide the return we want? What segment is difficult to do Lead business with?LeastProfitableCustomers
    40. 40. Stable Volume and Pricing Frequency Bundling and Rewards Cross Selling Integrated I. Financial Continuous Information Bonds Relationships Systems Excellent IV. Service II.Joint Structural Personal and SocialInvestments Bonds Relationships Value Bonds Shared Social Bonds Processes III. Customization Among and Bonds Customers Equipment Anticipation/ Customer Innovation Intimacy Mass Customization
    41. 41.  The Customer is not always right The Wrong Segment Not Profitable in Long Term Difficult Customers
    42. 42. Service Failure Take Action Do Nothing Switch Providers Stay with ProviderComplain to Complain to Complain to Provider Family & Friends Third Party Switch Providers Stay with Provider
    43. 43. ServiceRecoveryStrategies
    44. 44. Expected ServiceCUSTOMER Customer Gap Perceived ServiceCOMPANY External Service Communications Delivery Gap 4 to Customers Gap 3 Gap 1 Customer-Driven Service Designs and Standards Gap 2 Company Perceptions of Consumer Expectations
    45. 45.  Oversimplification Incompleteness Subjectivity Biased Interpretation
    46. 46. • Full-scale launch • Post-launch review Full Launch Enablers Development • Formulation of new services People objective / strategy • Idea generation and screening • Concept Services development and testing Technology Systems Tools• Service design and testing Design Analysis• Process and system design and testing • Business analysis• Marketing program • Project design and testing authorization• Personnel training• Service testing and pilot run• Test marketing
    47. 47.  Radical Innovations - Major Innovation. Example: amazon.com. Start-up Business: new service for existing market. Example: online banking. New Services for the Market Presently Served: new services to customers of an organization. Example: health club offering nutrition classes.
    48. 48.  Service Line Extensions: augmentation of existing service line. Example: Airline offering new routes. Service Improvements: changes in features of currently offered service. Example: Trains. Style Changes: modest visible changes in appearances. Example: Videocon.
    49. 49.  A service blueprint is a picture or a map that accurately portrays the service system so that the different people involved in providing it can understand and deal with it objectively regardless of their roles or their individual point of view.
    50. 50. Process Service Points OfBlueprint Contacts Evidence
    51. 51. Bill Desk EVIDENCE Hotel Cart for Desk Elevators Cart for Room Menu Delivery Food Lobby PHYSICAL Exterior Bags Registration Hallways Bags Amenities Tray Hotel Parking Papers Room Bath Food Exterior Lobby Appearance Parking Key CUSTOMER Arrive Give Bags Call Check out Go to Receive Sleep Receive at to Check in Room Eat and Room Bags Shower Food Hotel Bellperson Service Leave (On Stage) Greet and Process Deliver Deliver ProcessCONTACT PERSON Take Registration Bags Food Check Out Bags (Back Stage) Take Take Bags Food to Room Order SUPPORT PROCESS Registration Prepare Registration System Food System
    52. 52. Map contact Map the employee’s AddIdentify the Identify the Link contact process actions, evidence of process to customer or activities to from onstage and service at be the needed customer’s backstage, eachblueprinted customer support point of and/or customer segment functions view technology action step actions
    53. 53. 1. Identify Existing or Desired Service Encounter Sequence 2. Translate Customer Expectations Into Behaviors/Actions 3. Select Behaviors/Actions for Standards 4. Set Hard or Soft Standards Measure by Measure by Audits or Hard 5. Develop Feedback Transaction- SoftOperating Data Mechanisms Based Surveys 6. Establish Measures and Target Levels 7. Track Measures Against Standards 8. Update Target Levels and Measures
    54. 54. Servicescape Other TangiblesFacility Exterior Business Cards• Exterior Design • Stationery• Signage • Billing Statements• Parking • Reports• Landscape • Employee Dress• Surrounding Environment • Uniforms • BrochuresFacility Interior • Internet/ Web Pages• Interior Design• Equipment• Signage• Layout• Air/ Quality Temperature
    55. 55. Delivering and Performing Service
    56. 56. Expected ServiceCUSTOMER Customer Gap Perceived Service Service ExternalCOMPANY Delivery Gap 4 Communications to Customers Gap 3 Gap 1 Customer-Driven Service Designs and Standards Gap 2 Company Perceptions of Consumer Expectations
    57. 57.  Who are they?  “boundary spanners” What are these jobs like?  emotional labor  many sources of potential conflict ▪ person/role ▪ organization/client ▪ interclient ▪ quality/productivity
    58. 58. External EnvironmentInternal Environment
    59. 59. • Person vs. Role• Organization vs. Client• Client vs. Client• Quality vs. Productivity
    60. 60. Hire for Service Competencies and Service Inclination Hire the Right People Develop Customer-Employees as Employees Empower People to Customers Retain the oriented Treat Deliver Best Service Service People Delivery Quality Provide Needed Support Systems Provide Supportive Technology and Equipment
    61. 61.  Other customers can detract from satisfaction ▪ disruptive behaviors ▪ excessive crowding ▪ incompatible needs Other customers can enhance satisfaction ▪ mere presence ▪ socialization/friendships ▪ roles: assistants, teachers, supporters
    62. 62.  Lack of understanding of their roles Not being willing or able to perform their roles No rewards for “good performance” Interfering with other customers Incompatible market segments
    63. 63. Strategies for Enhancing Customer ParticipationDefine Customer’s Jobs• Clarify level of participation• Indentify specific roles• Understand implications for productivity& qualityRecruit, Educate & Reward Customers Effective• Identify & recruit appropriate segment• Educate customers for their roles Customer• Provide reasons to participate Participation• Reward customer performanceDefine Customer’s Jobs• Clarify level of participation• Indentify specific roles• Understand implications for productivity& quality
    64. 64. Demand Too High Shift Demand Demand Too Low  Use signage to communicate busy • Use sales and advertising to days and times  Offer incentives to customers for increase business from current usage during non-peak times market segments Take care of loyal or regular  customers first • Modify the service offering to  Advertise peak usage times and appeal to new market segments benefits of non-peak use  Charge full price for the service--no • Offer discounts or price discounts reductions • Modify hours of operation • Bring the service to the customer
    65. 65. Demand Too High Adjust Capacity Demand Too Low  Stretch time, labor, facilities and  equipment Cross-train employees • Perform maintenance  Hire part-time employees renovations  Request overtime work from employees • Schedule vacations   Rent or share facilities Rent or share equipment • Schedule employee training  Subcontract or outsource activities • Lay off employees
    66. 66. Expected ServiceCUSTOMER Customer Gap Perceived Service Gap 4COMPANY Service External Communications Delivery Gap 3 to Customers Gap 1 Customer-Driven Service Designs and Standards Gap 2 Company Perceptions of Consumer Expectations
    67. 67.  A number of media sources are used for service marketing communication. Need is to ensure that customers receive unified & consistent messages & promises.
    68. 68. CompanyInternal Marketing Vertical External MarketingCommunications Horizontal Communication Communications Advertising Sales Promotion Public Relations Direct Marketing Employees Interactive Marketing Personal Customers Selling Customer Service Center Service Encounters Services capes
    69. 69. Manage Customer Expectations Goal:Manage Delivery Improve Service greater than CustomerPromises or equal to Education promises Manage Internal Marketing Communication
    70. 70.  Discrepancies b/w service delivery & external communications in the form of exaggerated promises & the absence of information about service delivery aspects intended to serve customers well can powerfully affect consumer perceptions of service quality.
    71. 71.  Inadequate management of service promises. Inadequate management of customer expectations. Inadequate customer education. Inadequate internal marketing communications.
    72. 72. Approaches for Managing Service Promises MANAGING SERVICE PROMISES Goal: Create Coordinate Offer Delivery Effective Make greater than External Realistic Service Services Communication Guarantees or equal toCommunications Promises promises
    73. 73. Offer Choices Create Tiered-Value OfferingsCommunicate Criteria for Service Effectiveness Negotiate Unrealistic Expectations Goal: Delivery greater than or equal to promises
    74. 74.  Create effective vertical communication. Create effective horizontal communication. Align back office & support personnel with external customers. Create cross functional teams.
    75. 75. Goal: Delivery greater than or equal to promises Create Effective Vertical Communications Create Effective Horizontal Communications Align Back Office Personnelw/ External Customers Create Cross-Functional Teams
    76. 76. Source: http://www.newdhl.com/advertising.asp?cid=dhlbt1hmpg1
    77. 77. INDIAN LOGISTICS INDUSTRY : AN OVERVIEW • Fastest growing industry. • Dominated by unorganized market. • Logistics cost is over 13% of GDP.
    78. 78.  Among the top 5 players in the country. Best domestic logistics company award. Network reaches up to 580 districts out of 590 districts. International operations.
    79. 79. S CUSTOMERE Customer needs & expectationsR Knowledge Gap (1)V Management definitionI Of these needsC Standard Gap (2)E Translation into design/ Delivery specs InternalG Delivery Gap (3) Communication Gap (4)A Execution of design/delivery (4) Advertising & salesP specs promises Perception Gap (5) Interpretation Gap (6)MO Customer perceptions of product execution Customer interpretation of communicationDE Service Gap (7)L Customer experience relative to expectations
    80. 80. Customer needs & Expectations  Improper field level Information. KNOWLEDGE  Business Intelligence not available for decision GAP making at all levels.  Least attention paid to small customers. Management definition of these needsGATI’S SOLUTION:  Customer’s information is collected through feedback forms.  Appointment of executives to cater all types of customers.
    81. 81. Management definition of these needs  No proper service design for customers. STANDARD  Fluctuation in fuel prices. GAP  No Insurance for goods.  Improper allocation of funds. Translation into DesignGATI’S SOLUTION:  Sharing the burden of increasing fuel prices.  Insurance for goods.
    82. 82. Translation into Design  Poor employee-technology job fit. DELIVERY  Delay in delivering the service. GAP  Over pricing to match demand. Execution of DesignGATI’S SOLUTION:  Employees are properly trained.  Promptness in delivery.
    83. 83. Execution of Design  Improper horizontal communication. COMMUNICATION  Customer enquiry constraints. GAP  Absence of strong internal marketing.  Lack of adequate education for customer. Advertising And Sales PromisesGATI’S SOLUTION:  Toll Free Number available to provide information to the customers.  Gati.net.
    84. 84. Execution of Design  Indifferent attitude towards customers. PERCEPTION GAP  Improper design leading to negative perception.  Improper information transparency to their supply chain partners to maintain competitiveness. Customer Perceptions of product executionGATI’S SOLUTION:  Should have a positive attitude towards the customer.  Proper market research to change design accordingly.
    85. 85. Advertising And Sales Promises  Overpromise, under delivery. INTERPRETATION  Main customers - Corporate customers. Hence GAP interpretation of a local customer varies differently. Customer interpretation of communicationGATI’S SOLUTION:  Should focus on B to C advertising apart from B to B advertising.  Provide services as promised .
    86. 86. Customer perceptions Customer Interpretation Of product execution of communications  Value added services. SERVICE  Ware housing facility. GAP  Reverse logistics. Customer experience Relative to expectationsGATI’S SOLUTION:  Started giving value added services in some areas.
    87. 87. SERVICE RECOVERYPoor service recovery in the logistics industry.Effects customer loyalty.It should be Pro-active, Planned, Trained & Empowered GATI : SERVICE RECOVERY PARADOX Undertaking Service Recovery Seriously.

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