Service Quality and Encounter Management
Gap Model of Service Quality
Gap Model of Service Quality
• Gap refers to any deviations
• Gaps are the leakages which takes place during the service
delivery process
A] Customer Gap
• It is the difference between customer expectations and
perceptions Expected Service
Perceived Service
B. Provider Gap
1. The Listening Gap
• It is the difference between customer expectations of service
and company understanding of those expectations
• Reasons
• Inadequate customer research orientation
• Lack of upward communication
• Insufficient relationship focus
• Inadequate service recovery
Customer Expectation
Company Perceptions
Of Customer
Expectations
G
a
p
1
Strategies to Reduce Listening Gap
• Environmental scanning and monitoring
• Collect accurate information about customer’s expectation
• Developing a system to acquire continuous information from the
service employees
• Implementing relationship marketing
• Developing a well-defined complaint handling system
• Empowerment of employees
2. Service Design and Standard Gap
• It occurs when service provider fails to design and provide
service as per the standard.
• Difficulty experienced in translating customer expectations
into service quality specifications that employees can
understand and execute.
• Reasons
• Poor Service Design
• Absence of customer driven standards
• Inappropriate physical evidence and service scape
Customer Driven
Designs and Standards
Management
Perceptions of
Customer Expectations
G
a
p
2
Strategies to reduce service design and standard gap
• Identification of customer preferences
• Clearly designing the service
• Develop service blueprinting
3. The service Performance Gap
• It is the discrepancy between the development of customer-driven
service standards and actual service performance by company
employees
• Reasons
• Deficiencies in human resource policies
• Failure to match supply and demand
• Customers not fulfilling roles
• Problems with service intermediaries
Customer-driven
service designs and
standards
Service Delivery
G
a
p
3
Strategies to minimize service performance gap
• Select and train the service employees
• Top and middle management’s continuous support to
employees
• Proper management of service environment
• Empowerment of employees
• Focus on internal marketing
4. The Communication Gap
• It illustrates the difference between service delivery and the
service provider’s external communication
• Reasons
• Lack of integrated services marketing communications
• Ineffective management of customer expectations
• Overpromising
• Inadequate horizontal communications
• Inappropriate pricing
Service Delivery
External
communications to
customers
G
a
p
4
Strategies to minimize the communication gap
• Educate customers to receive services
• Manage word-of-mouth
• Train, educate and motivate staffs to involve in service delivery
process
• Integrated service marketing communications
Measurement of Service Quality: The
SERVQUAL Instrument
• Simply, SERVQUAL is a questionnaire or a measurement scale
that is designed to measure the quality of service
• SERVQUAL is a multi-dimensional research instrument,
designed to capture consumer expectations and perceptions of
a service along the five dimensions that are believed to
represent service quality
• The scale consists 21 perception items that are distributed
throughout the five service quality dimensions
Uses of SERVQUAL Survey
• To determine the average gap score for each service attributes
• To assess a company’s service quality along each of the five
SERVQUAL dimensions
• To track customers’ expectations and perceptions over time
• To compare a company’s SERVQUAL scores against those of
competitors
• To identify and examine customer segments that differ
significantly in their assessments of a company’s service
performance
Service Encounters (Moment of Truth)
• It is duration of interaction of customers with firms internal
employees and technology
• Service encounters are building blocks for customer
perceptions
• Also called real time marketing
• Service encounters are where promises are kept or broken
• Some services have few encounters where other have many
Importance of Encounters
• Determines the consumption of service
• Multiple encounters are significant in shaping the composite
image of the company
• Determines the retention of customers
Types of Service Encounters
Remote encounters
Technology-mediated encounters
Face to face encounters
A. By Zeithaml (2001)
Remote Encounter
• Can occur without direct human contact
• E.g. ATM system in banks, retail purchasing through internet,
airlines ticketing, etc.
• Tangible evidence of service and the quality of the technical
processes and system become the primary basis for judging
quality
Technology-Mediated Encounters
• Encounter occurs via mediation of technology like telephone,
live chat, social networking medium, etc.
• It has better prospect to improve encounter than remote
encounter
• E.g. insurance companies, utilities and telecommunications
companies
Face to Face Encounter
• Occurs in direct personal contact
• Verbal and non-verbal communication play significant role
• E.g. in hospitals with doctors, teaching, Lawer, etc
B. Service Encounters on the Basis of Process
• People Processing
• Customers involve physically
• E.g. trekking, travelling, body building, etc
• Possession Processing
• Services are provided to the assets/possession of customers
• E.g. bicycle servicing, painting a house, laptop maintenance
• Mental Stimulus Processing
• Involves services that interact with peoples mind
• Mental attention of the customer is vital
• E.g. education service, news and information, psychological counseling
• Information Processing
• Information is processed and provided to customers
• Information may be provided through letters, books, CDs, etc
• E.g. Banking, Accounting, Legal Services, etc
Main Drivers of Service Quality
• People
• Process
• Service Product
Service quality & encounter management

Service quality & encounter management

  • 1.
    Service Quality andEncounter Management
  • 2.
    Gap Model ofService Quality
  • 3.
    Gap Model ofService Quality • Gap refers to any deviations • Gaps are the leakages which takes place during the service delivery process A] Customer Gap • It is the difference between customer expectations and perceptions Expected Service Perceived Service
  • 4.
    B. Provider Gap 1.The Listening Gap • It is the difference between customer expectations of service and company understanding of those expectations • Reasons • Inadequate customer research orientation • Lack of upward communication • Insufficient relationship focus • Inadequate service recovery Customer Expectation Company Perceptions Of Customer Expectations G a p 1
  • 5.
    Strategies to ReduceListening Gap • Environmental scanning and monitoring • Collect accurate information about customer’s expectation • Developing a system to acquire continuous information from the service employees • Implementing relationship marketing • Developing a well-defined complaint handling system • Empowerment of employees
  • 6.
    2. Service Designand Standard Gap • It occurs when service provider fails to design and provide service as per the standard. • Difficulty experienced in translating customer expectations into service quality specifications that employees can understand and execute. • Reasons • Poor Service Design • Absence of customer driven standards • Inappropriate physical evidence and service scape Customer Driven Designs and Standards Management Perceptions of Customer Expectations G a p 2
  • 7.
    Strategies to reduceservice design and standard gap • Identification of customer preferences • Clearly designing the service • Develop service blueprinting
  • 8.
    3. The servicePerformance Gap • It is the discrepancy between the development of customer-driven service standards and actual service performance by company employees • Reasons • Deficiencies in human resource policies • Failure to match supply and demand • Customers not fulfilling roles • Problems with service intermediaries Customer-driven service designs and standards Service Delivery G a p 3
  • 9.
    Strategies to minimizeservice performance gap • Select and train the service employees • Top and middle management’s continuous support to employees • Proper management of service environment • Empowerment of employees • Focus on internal marketing
  • 10.
    4. The CommunicationGap • It illustrates the difference between service delivery and the service provider’s external communication • Reasons • Lack of integrated services marketing communications • Ineffective management of customer expectations • Overpromising • Inadequate horizontal communications • Inappropriate pricing Service Delivery External communications to customers G a p 4
  • 11.
    Strategies to minimizethe communication gap • Educate customers to receive services • Manage word-of-mouth • Train, educate and motivate staffs to involve in service delivery process • Integrated service marketing communications
  • 12.
    Measurement of ServiceQuality: The SERVQUAL Instrument • Simply, SERVQUAL is a questionnaire or a measurement scale that is designed to measure the quality of service • SERVQUAL is a multi-dimensional research instrument, designed to capture consumer expectations and perceptions of a service along the five dimensions that are believed to represent service quality • The scale consists 21 perception items that are distributed throughout the five service quality dimensions
  • 13.
    Uses of SERVQUALSurvey • To determine the average gap score for each service attributes • To assess a company’s service quality along each of the five SERVQUAL dimensions • To track customers’ expectations and perceptions over time • To compare a company’s SERVQUAL scores against those of competitors • To identify and examine customer segments that differ significantly in their assessments of a company’s service performance
  • 17.
    Service Encounters (Momentof Truth) • It is duration of interaction of customers with firms internal employees and technology • Service encounters are building blocks for customer perceptions • Also called real time marketing • Service encounters are where promises are kept or broken • Some services have few encounters where other have many
  • 18.
    Importance of Encounters •Determines the consumption of service • Multiple encounters are significant in shaping the composite image of the company • Determines the retention of customers
  • 19.
    Types of ServiceEncounters Remote encounters Technology-mediated encounters Face to face encounters A. By Zeithaml (2001)
  • 20.
    Remote Encounter • Canoccur without direct human contact • E.g. ATM system in banks, retail purchasing through internet, airlines ticketing, etc. • Tangible evidence of service and the quality of the technical processes and system become the primary basis for judging quality
  • 21.
    Technology-Mediated Encounters • Encounteroccurs via mediation of technology like telephone, live chat, social networking medium, etc. • It has better prospect to improve encounter than remote encounter • E.g. insurance companies, utilities and telecommunications companies
  • 22.
    Face to FaceEncounter • Occurs in direct personal contact • Verbal and non-verbal communication play significant role • E.g. in hospitals with doctors, teaching, Lawer, etc
  • 23.
    B. Service Encounterson the Basis of Process • People Processing • Customers involve physically • E.g. trekking, travelling, body building, etc • Possession Processing • Services are provided to the assets/possession of customers • E.g. bicycle servicing, painting a house, laptop maintenance • Mental Stimulus Processing • Involves services that interact with peoples mind • Mental attention of the customer is vital • E.g. education service, news and information, psychological counseling
  • 24.
    • Information Processing •Information is processed and provided to customers • Information may be provided through letters, books, CDs, etc • E.g. Banking, Accounting, Legal Services, etc
  • 25.
    Main Drivers ofService Quality • People • Process • Service Product