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THE GAPS MODEL OF SERVICE QUALITY

3 Gaps Model

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Page 1: 3 Gaps Model

THE GAPS MODEL OF SERVICE QUALITY

Page 2: 3 Gaps Model

The Gaps Model of Service Quality

A third model for addressing services challenges is the gaps model of services quality.

The model focuses on strategies and process that firms can employ to drive service excellence.

It is a model that can be used to drive strategy as well as implementation decisions.

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Expected Service

Customer

Perceived Service

Service DeliveryExternal

Communicationto customers

Customer drivenService designs and

standards

Company Perception of Consumer expectation

Company

Gap 1

Gap 2

Gap 3

Gap 4

Customer Gap

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THE CUSTOMER GAP 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

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THE CUSTOMER GAP The firms will like to close this gap –

between what is expected and what is received – to satisfy their customers and to build long term relationships with them.

To close this all-important customer gap, the model suggests that four other gaps – the provider gaps – need to be closed.

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THE PROVIDER GAPS The provider gaps are the underlying

causes behind the customer gap: Gap 1: Not knowing what customers

expect

Gap 2: Not selecting the right service designs and standards

Gap 3: Not delivering to service standards Gap 4: Not matching performance to

promises.

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THE PROVIDER GAPS Gap 1: Not knowing what customers

expect

A primary cause in many firms for not meeting customers’ expectations is that the firm lacks accurate understanding of exactly what those expectations are.

A gap exist between company perceptions of customers’ expectations and what customers actually expect.

We will try to explore why this gap occurs and develop strategies for closing it.

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THE PROVIDER GAPS Gap 2: Not selecting the right

service designs and standards

Even if a firm does have a clear understanding of its customers’ expectations, there still have problems if that understanding is not translated into customer-driven service designs and standards

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THE PROVIDER GAPS Gap 3: Not delivering to service

standards Once service designs and standards

are in place, the firm is on its way to delivering high-quality services. But this is not enough.

There must be systems, processes, and people in place to ensure that service delivery actually matches (or is even better than) the designs and standards in place.

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THE PROVIDER GAPS

Gap 4: Not matching performance to promises.

Finally with everything in place to effectively meet or exceed customer expectations, the firm must ensure that what is promised to customers matches what is delivered.

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CLOSING THE CUSTOMER GAP The gaps model says that a service

marketer must first close the customer gap.

To do so, the provider must close the four provider gaps, or discrepancies within the organization that inhibit delivery of quality service.

The gaps model focuses on strategies and processes that firms can employ to drive service excellence.

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CLOSING THE CUSTOMER GAP

The figure corresponds to two concepts – CUSTOMER EXPECTATIONS and CUSTOMER PERCEPTIONS

It plays a major role in services marketing.

Expected Service

Perceived Service

CUSTOMER GAP

Customer Gap

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CLOSING THE CUSTOMER GAP Customer Perceptions are subjective

assessments of actual service experiences.

Customer Expectations are the standard of or reference points for performance against which service experiences are compared and are often formulated in terms of what a customer believes should or will happen.

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CLOSING THE CUSTOMER GAP The sources of customer

expectations consist of Marketer-controlled factors (price,

advertising, sales promises etc.) and Factors which marketer has limited

ability to affect (word-of-mouth communication, competitive offerings etc)

The goal of services marketing is to bridge this gap.

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CONSUMER BEHAVIOUR IN SERVICES

Consumer problem: Time Deficiency The Solution: Services

Changing family structure and job profile, dual career couple, single, atomic family etc. are realising consumer burning need: TIME.

The antidote to time deficiency? New Services/Innovative features: Wedding

consultants & arrangement, executive meeting organizer, presentation preparation, home delivery (retailer, banks, etc.).

Extending working hours to suit consumer schedules

Outsourcing various services

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CONSUMER BEHAVIOUR IN SERVICES Primary objective of producers and

marketers is identical: to develop and provide offerings that satisfy consumer needs and expectations.

Other words, marketers need to be able to close the customer gap.

Therefore it is also important to understand consumer evaluation process/ decision process for selection of a service

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SERVICES: Search Vs Experience Vs Credence Properties

Categories of properties of consumer products: Search qualities: attributes that can be

determined before purchasing of a product. Ex. Clothing, Jewelry, Furniture, Houses etc.

Experience qualities: attributes that can be identified after purchase or during purchase. Meals, Vacation, Hair Cut etc.

Credence qualities: characteristics that consumer may find difficult/impossible to evaluate even after purchase and consumption. Ex. Medical Diagnosis

Difficult to evaluate

Easy to evaluate

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CONSUMER BEHAVIOUR IN SERVICES

Normally the decision process for goods purchase:

1. Need Recognition2. Information search3. Evaluation of alternatives4. Purchase5. Purchase outcome or feedback

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CONSUMER BEHAVIOUR IN SERVICES

In purchase of services: Information Search Evaluation of alternatives Purchase and consumption Post Purchase Evaluation

These do not occur in sequence

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CONSUMER BEHAVIOUR IN SERVICES

INFORMATION SEARCH•Use of Personal sources

•Perceived Risk

EVALUATION OF ALTERNATIVES•Evoked set

•Emotion and mood

POST PURCHASE EVALUATION•Attribution of dissatisfaction

•Innovation diffusion•Brand Loyalty

PURCHASE & CONSUMPTION•Service provision as drama

•Service roles & scripts•Compatibility of customers

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Information Search Use of Personal Sources

Friends, experts etc. Use of Non-personal Sources

Mass or selective media Non-personal sources may not be available if

small, local vendors Perceived Risk

Some degree of risk perceived in all transactions Dissatisfied customers may not or rarely come back

if alternatives are available They use the strategies to reduce the perceived risk.

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Evaluation of Service Alternatives Evoked Set

Set of alternatives - acceptable options in a given product category

Smaller set as two brands of services are rarely provided in a single institution (bank, dry cleaner, hair salon etc.)

Faced with the task of collecting & evaluation experience qualities, consumer may select the first one.

Emotion & Mood It influence people (customers) perceptions

and evaluations of their experiences.

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Purchase and Consumption

Service Provision as Drama Both aim to create and maintain a desirable impression before

an audience and required to manage the actors and the physical setting of their behaviour.

Service Roles & Scripts Each player (both employees & customers) having a role to

perform Employees need to perform their role as per the expectations of

customers Customers are to be informed and educated about the

expectations and requirements of service. Compatibility of Customers

Role of other customers (Restaurants, dances, bars, spectator sports, movie hall etc.)

Customers can be incompatible due to many reasons: difference in beliefs, values, experiences, abilities to pay, age, health etc.

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Post Purchase Evaluation Attribution of Dissatisfaction

May attribute to different sources, producers, retailers, or themselves

Customers own decision making error Innovation Diffusion

Rate of diffusion depends on consumer perception of innovation

Compatible to existing norms, values, and behaviours – more easily diffuse

Ex. Novel Day Care Center: providing breakfast to the employee’s children

Brand Loyalty Committed to particular brands depends on many factor:

switching cost, availability of substitutes, perceived risk, degree of satisfaction in the past

ROLE OF CULTURE: Values, attitudes, manners, customs etc