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MANAGING SERVICE QUALITY & GAPSDefinition of serviceBerry define service as act, deeds, & performance.

Aerican Mkt Association define service as activities, benefits or satisfaction that are offered for sale, or provided in connection with the sale of goods.Performed by..People, machine, people withmachineService isanactivityDeed,PerformanceEfforts. Directed at.people andBusiness usersRendered byprofit,Non profitService What is qualityIn the words of crosby:-Quality is conformance to requirements American Society Quality C Define:- Quality is the totality of features and characteristics of a product, or service that bear on its ability to satisfy stated or implied needs.Fully satisfy customer requirements at the lower cost.Anassessment of how well adelivered service conforms to theclient's expectations.Service business operators often assess the service quality provided to theircustomers inorder toimprove their service, to quickly identifyproblems, and to better assess clientsatisfaction.

What is service quality?What is service quality?Expected servicePerceived serviceService qualityCustomersatisfactionCustomerloyaltyGAPS MODEL OF SERVICE QUALITYThe Customer Gap

The Gaps Model was proposed by A Parasuraman, Valarie Zeithaml and LL Berry in 1985 in the Journal Of Marketing

Professor A. Parasuraman

Dr. Valarie Zeithaml

Dr. Leonard L. BerryCustomer gap:Difference between expectations and perceptions

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

Provider gap 5:Not matching performance to assumption

Company Perceptions of Consumer ExpectationsExpected ServiceCUSTOMERCOMPANYGAP 1Provider Gap 1GAP 1Inadequate marketing research orientationLack of upward communicationInsufficient relationship focusInadequate service recoveryReasons for ProviderGapICustomer ExpectationsCompany Perceptions of Customer Expectations

Key Factors Leading to Provider Gap 1

GAP1GAP 2CUSTOMERCOMPANYGAP 2Customer-Driven Service Designs and StandardsCompany Perceptions of Consumer ExpectationsProvider Gap 2GAP 220Poor service designAbsence of customer-defined service standardsInappropriate physical evidence and services capeReasons for provider gap 2Customer-Driven Service Designs and StandardsManagement Perceptions of Customer Expectations

Key Factors Leading to Provider Gap 2

GAP2CUSTOMERCOMPANYService DeliveryGAP 3Customer-Driven Service Designs and StandardsProvider Gap 3GAP 324Poor human resource policiesFailure to match supply and demandCustomer not fulfilling their rolesProblems with service intermediariesReasons for provider gap 3Service DeliveryCustomer-Driven Service Designs and Standards

Key Factors Leading to Provider Gap 3

GAP3Provider Gap 4CUSTOMERCOMPANYExternal Communications to CustomersGAP 4Service DeliveryGAP 428Lack of integration of marketing communicationsInadequate management of customer expectations Overpromising Inadequate horizontal communicationsReasons for Provider Gap 4Service Delivery

External Communications to CustomersKey Factors Leading to Provider Gap 4

GAP4Provider Gap 5Perceived ServiceExpected ServiceCUSTOMERCOMPANYGAP 5 GAP 532Lack of communications between service provider & customerManagement is busy in providing service Reasons for Provider Gap 5The Services Marketing TriangleInternal MarketingInteractive MarketingExternal MarketingCompany(Management)CustomersEmployeesenabling thepromisedelivering the promisesetting thepromiseGaps Model of Service QualityPerceivedServiceExpected ServiceCUSTOMERCOMPANYCustomerGap 5Gap 1Gap 2Gap 3External Communications to CustomersGap 4Service DeliveryCustomer-Driven Service Designs and StandardsCompany Perceptions of Consumer ExpectationsClosing the gapsGap 1: Learn what customers expectGap 2: Establish the right service quality standardsGap 3: Ensure that service performance meets standardsGap 4: Ensure that delivery matches promises Gap 5: Establish good Communication system

36Use research, complaint analysis, customer panels Increase direct interactions between managers and customers Improve upward communicationsAct on information and insights

listen to customers37Top management commitment to providing service qualitySet, communicate, and reinforce customer-oriented service standardsEstablish challenging and realistic service quality goalsTrain managers to be service quality leadersBe receptive to new ways to deliver service qualityStandardise repetitive tasks38Prioritise tasksGain employee acceptance of goals and prioritiesMeasure performance of service standards and provide regular feedbackReward managers and employees for achievement of quality goals

Service Quality Awards39Attract the best employeesSelect the right employeesDevelop and support employeestrain employees provide appropriate technology & equipmentencourage and build teamworkempower employees internal marketing

Can I take your order?40Retain good employeesmeasure and reward service quality achievementsdevelop equitable and simple reward systems

You are a Star Service Provider

41Seek input from operations personnel on what can be doneReality advertisingreal employees, real customers, real situationsSeek input from employees on advertisingGain communications between sales, operations and customersInternal marketing programs42Ensure consistent standards in multi-site operationsIn advertising, focus on service characteristics that are important to customersManage customers expectationsWhat are realistic expectations?Explain industry realitiesTiered service optionsOffer different levels of service - user pays

Why do we always have to wait?43Inform the patients

Be Communicative with patient and relatives

44Brief Summary Gaps in Service QualityGapProblemCause(s)1. Consumer expectation mgmt. perceptionThe service features offered dont meet customer needsLack of marketing research; inadequate upward communication; too many levels between contact personnel and management2. Management perception service quality specificationThe service specifications defined do not meet managements perceptions of customer expectationsResource constraints; management indifference; poor service design3. Service quality specification service deliverySpecifications for service meet customer needs but service delivery is not consistent with those specificationsEmployee performance is not standardized; customer perceptions are not uniform4. Service delivery external communicationThe service does not meet customer expectations, which have been influenced by external communicationMarketing message is not consistent with actual service offering; promising more than can be delivered5. Expected Service Perceived ServiceThe service provided but customer assumptions differcommuncation

Key Factors Leading to Provider Gap 1

Key Factors Leading to Provider Gap 2

What is Internal Marketing?With an internal marketing strategy, employees are treated as internal customers who must be convinced of a company's vision and worth just as aggressively as external customers. The goal of internal marketing is to align every aspect of a companys internal operations to ensure they are as capable as possible of providing value to customers.

If a company can operate in a coordinated and standardized way, that company can provide a more consistent experience to their customers.

Internal marketing is based on the idea that customers attitudes toward a company are based on their entire experience with that company, and not just their experience with the companys products.

Any time a customer interacts with an employee, it affects their overall satisfaction. Everyone from a sales clerk to an over-the-phone tech support specialist helps to shape that customer's experience. Therefore, customer satisfaction is deeply dependent on the performance of a company's staff. What is Internal Marketing?For example, Apple has a unique organizational culture that emphasizes innovation, creativity, and expertise. In order to promote this culture, they are highly selective when they recruit employees and extremely thorough when they train them.

Apple realizes that the best way to promote the image of their brand is for every employee, particularly the ones who work with customers, to accurately represent that image. Anyone who has been to an Apple store knows that the employees are experts in the products they sell and are willing to answer an endless number of questions. They are smart, accessible, and knowledgeable, positively reflecting the company company as a whole.

Human resources professionals typically spearhead internal marketing campaigns. Since internal marketing focuses on leveraging the value of employees, strong communication between the company and the employees is crucial. Their primary responsibility will be to disseminate information about the company's goals and strategies, and to provide training and support to help employees achieve those goals. Inadequate Marketing Research OrientationInsufficient marketing research

Research not focused on service quality

Inadequate use of market research

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 market segmentation

Focus on transactions rather than relationships

Focus on new customers rather than relationship customers

* Inadequate Service RecoveryLack of encouragement to listen to customer complaints

Failure to make amends when things go wrong

No Appropriate recovery mechanism in place of service failures. Poor Service Design

Unsystematic new service development process

Vague, undefined service designs

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 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

Failure to Match Supply and Demand

Failure to smooth peaks and valleys of demand

Inappropriate customer mix

Over-reliance on price to smooth demand

Customers Not Fulfilling Roles

Customers lack knowledge of their roles and responsibilities

Customers negatively impact each other

Problems with Service Intermediaries

Channel conflict over objectives and performance

Channel conflict over costs and rewards

Difficulty controlling quality and consistency

Tension between empowerment and control 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 ExpectationsNot managing customer expectations through all forms of communication

Not adequately educating 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