GAP MODEL OF SCHOOL OF BUSINESS

Assignment under subject: MKT 662 Services Marketing Strategy

Submitted To

Balaram Bhattarai

Lecturer

Services Marketing

School of Business

Pokhara University, Nepal

Submitted By

Bishnu Prasad Neupane

MBA - 4th Trimester

R. N. 007/2010 Batch

July 2011

Table of Content

Contents Page Number

1. Background/ Introduction 1

2. Theory of the Gaps Model in Service Marketing

2.1 History of the Gaps Model 1

2.2 Theory of the Gaps Model 2

2.3 Applications of the Gaps Model 4

3. School of Business, Pokhara University

3.1 Introduction 6

3.2 Four Gaps in School of Business, Pokhara University 7

3.3 Student Gap 9

3.4 GAP Model in School of Business 10

4. Conclusion and Recommendation 11

1. Background/ Introduction:

Service marketing is inherently different from product or goods marketing. Services

are distinctively characterized by their intangible, heterogeneous, inseparable and

perishable nature. A service marketer builds his marketing strategies on five service

quality dimensions to attain and sustain customer loyalty and zero defections. In

marketing dictionary, it is known as RATER:

•Reliability refers to the ability to perform the service accurately and dependably.

•Assurance relates to knowledge and accuracy of employees and their ability to

convey trust and confidence to the customers.

•Tangibles refer to the appearance of physical facilities, equipments, personnel and

communication materials i.e. physical evidence of facilities.

•Empathy refers to dealing with customers in a caring and individualized manner.

•Responsiveness is the willingness to help customers and provide prompt service.

If a service marketer hesitatingly on any of these grounds, it creates service quality

gaps in an organization. Service quality is essentially perception of service, minus

expectation of service by the customer.

Service Quality Gap Model Zeithaml, and Berry (1985) constructed the famous

Service Quality Gap Model to determine and analyze gaps between expected and

actual levels of service performance.

2. Theory of the Gaps Model in Service Marketing

2.1 History of the Gaps Model

The gaps model of service quality was first developed by a group of authors,

Parasuraman, Zeithaml, Berry, at Texas A&M and North Carolina Universities, in

1985 (Parasuraman, Zeithaml & Berry). Based on exploratory studies of service such

as executive interviews and focus groups in four different service businesses the

authors proposed a conceptual model of service quality indicating that consumers’

perception toward a service quality depends on the four gaps existing in organization

– consumer environments. They further developed in-depth measurement scales for

service quality in a later year (Parasuraman, Zeithaml, Berry, 1988).

2.2 Theory of the Gaps Model

Perceived service quality can be defined as, according to the model, the difference

between consumers’ expectation and perceptions which eventually depends on the

size and the direction of the four gaps concerning the delivery of service quality on

the company’s side (Fig. 1; Parasuraman, Zeithaml, Berry, 1985).

Customer Gap = f (Gap 1, Gap 2, Gap 3, Gap 4)

The magnitude and the direction of each gap will affect the service quality. For

instance, Gap 3 will be favourable if the delivery of a service exceeds the standards of

service required by the organization, and it will be unfavourable when the

specifications of the service delivered are not met.

Fig. 1: The Integrated Gaps Model of Service Quality

(Parasuraman, Zeithaml, Berry 1985)

The key points for each gap can be summarized as follows:

Customer gap: The difference between customer expectations and perceptions

The service quality gap:

Gap 1:

The difference between what customers expected and what management

perceived about the expectation of customers.

Gap 2:

The difference between management’s perceptions of customer expectations and

the translation of those perceptions into service quality specifications and designs.

Gap 3:

The difference between specifications or standards of service quality and the

actual service delivered to customers.

Gap 4:

The difference between the service delivered to customers and the promise of the

firm to customers about its service quality.

2.3 Applications of the Gaps Model

First of all the model clearly determines the two different types of gaps in service

marketing, namely the customer gap and the provider gaps. The latter is considered as

internal gaps within a service firm. This model really views the services as a

structured, integrated model which connects external customers to internal services

between the different functions in a service organization. Important applications of the

model are as follows:

Fig. 2: The 10 determinants of service quality (Parasuraman, Zeithaml, Berry, 1985).

1. The gaps model of service quality gives insights and propositions regarding

customers’ perceptions of service quality.

2. Customers always use 10 dimensions to form the expectation and perceptions

of service quality (Fig. 2).

3. The model helps predict, generate and identify key factors that cause the gap

to be unfavourable to the service firm in meeting customer expectations.

The model provides a conceptual framework for academic and business researchers to

study the service quality in marketing.

3. School of Business, Pokhara University

3.1 Introduction

The School of Business (SOB) was established in 1999 with the vision of developing

into a premier institution to prepare youth to face the growing challenges of the

business world, as well as to become creative and productive individuals.

Within the School, there are two Bachelor’s programs ; the Bachelor’s of Business

administration (BBA) and the Bachelor’s of Business Administration in Banking and

Insurance (BBA-BI) and one graduate program, the Trimester Master’s degree in

Business Administration (MBA).

Both the BBA and the BBA-BI undergraduate programs are designed to produce

professionals for entry-level managerial positions. The curriculum provides students

with both a sound conceptual foundation and the practical skills needed in various

areas of business, as well as in the non-business sectors.

Master’s Degree in Business Administration:

The School’s MBA program develops distinguished managers/entrepreneurs through

a rigorous management curriculum taught by case method and a variety of

instructional approaches in the classroom, as well as through internships in various

fields. The degree provides students with a number of options in which to specialize,

such as Finance, Management Science, Marketing, Human Resource Management,

and General Management. Throughout the trimester MBA program, students learn

management competencies and innovative approaches that are valuable to any

organization, be it in the business or non-profit realm.

While the School of Business Administration maintains its strong focus on teaching

and learning, it is gradually emerging into a well-managed research-based institution

that effectively prepares students for ongoing advanced study. The School is proud of

its graduates, as well as its successful record in placing its students in positions in the

leading organizations around the country and abroad.

The researcher is focusing mainly on the gap model of provider’s commitments and

MBA student’s perceptions.

3.2 Four Gaps in School of Business, Pokhara University

Gap 1 – Not knowing what the students expect

This gap occurs when services expected by students do not match with PUSOB’s

perception of student’s expectation.

Or Student’s expectation - PUSOB’s perception of student’s expectation.

Causes for Gap 1

I Inadequate research on market research on what the student, and society need and

want from PUSOB.

I Even if there is any research on this objective, it is not focused on quality of the

services offered in the PUSOB campus.

I Lack of interaction between College and students, and between college and

corporate world.

I Insufficient communication between students and professors, professors and

administration, and student and administration.

I Too many procedural layers between the front –end employees and board of

management.

I Lack of CRM (Customer relationship management) with the students.

Gap 2 – Not selecting the right service design and standards –

College’s perception of student expectation does not match with student – driven

service design and standards.

Causes for Gap 2

I Lack of student driven standards.

I Vague, undefined design of the services to be provided to students and teachers.

I Absence of process (delivery of service) management to focus on student

requirements.

I Absence of formal system for setting service quality.

I Inadequate administration commitment towards the services.

I No systematic process for the development of new courses and placements to be

offered so as to sustain the competition from other established colleges.

Gap 3 – Not delivering to service standards – Student– driven service design do

not match with service delivery.

Causes for Gap 3

I Ineffective recruitment and selection of faculties and non-teaching staff.

I Role ambiguity and role conflict among faculties.

I Inappropriate evaluation and compensation system for faculties.

I Lack of empowerment, teamwork, collaborative research etc.

I Failure to smooth peaks and valley of demand for certain courses.

I Lack of knowledge in students regarding their role and responsibilities.

Gap 4– Not matching performance to promises – Service delivery does not match

with external communication to students.

Causes for Gap 4

I Ineffective CRM to manage students’ expectations about services from the

PUSOB.

I Failure to educate students about their role and responsibilities.

I Insufficient communication between teaching and non-teaching staff.

I Failure to give placements to all students.

I Differences in policies and procedures and their implications.

3.3 Student Gap

This gap occurs due to not knowing what the PUSOB delivers and Students’

expectations of service do not match with student perceptions of service.

Causes for students GAP

I The first impression that the students get while interacting administration and

faculties over phone or in person during admission in to the campus.

I Response of faculties and administration to their failure in service delivery to

students needs and request to problematic students and spontaneity in delivering

memorably good or poor services to students.

3.4 GAP Model in School of Business:

Fig.3 GAP Model of School of Business

4. Conclusion and Recommendation

The gap model of service quality is an important customer-satisfaction framework. It

plays a very important role in improving the quality of School of Business.

Educational process issues can be grouped into main 8 categories, all affect the

teaching process:

1- Teaching methods

2- Workload/ teaching loads

3- Working conditions

4- Staff promotion, performance assessment and accountability

5- Academic staff responsibilities

6- Use of modern educational technology

7- Research development

8- Student activities

Feedback from students regarding the quality of teaching is obtained mostly by filling

the questionnaire that has to be attached to the documents of evaluating the instructor,

for future promotion or upgrading of his/her skills. The students complete

anonymously a survey form. The collected responses are interpreted and the results

delivered to the teachers and the Dean. The feedback from students is an important

part in evaluating teachers as well as in improving the overall quality of the teaching

process.

Strengths of applying quality on the study process are (Recommendations):

1. A great demand for business professionals should be satisfied with producing

skilled, competent and potential students. School should focus in this direction.

2. Highly qualified and professional teaching staff, motivated to further their

knowledge and skills are required.

3. The teaching staff should include practitioners who are experts in their field.

4. Constant student-feedback should be taken, including evaluation of the quality of

teaching.

5. Good contact with corporate sector, training placement reports also provide

feedback for curriculum development.

6. System of individual student counseling helps to advance academic progress and to

motivate learners and this trend minimizes the gap between a student and the School.