Integrated Gaps Model

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  • MKTG/HTM 386 -- Hospitality Services Marketing

    Spring 2001

    James Madison University - College of Business 1

    The Integrated Gaps Model of Service Quality

    MKTG/HTM 386

    Why is the Gaps Model of Service Quality Important?

    Customer Gapn Chp 2 Consumer Behavior in Servicesn Chp 3 Customer Expectations of Servicen Chp 4 Consumer Perceptions of Service

    Gap 1 Not Knowing What the Customer Expectsn Chp 5 Understanding Customer Expectations

    Through Marketing Researchn Chp 6 Building Customer Relationshipsn Chp 7 Service Recovery

  • MKTG/HTM 386 -- Hospitality Services Marketing

    Spring 2001

    James Madison University - College of Business 2

    Why is the Gaps Model of Service Quality Important?

    Gap 2 Not Having the Right Service Quality Designs and Standardsn Chp 8 Service Development and Designn Chp 9 Customer-Defined Service

    Standardsn Chp 10 Physical Evidence and the

    Servicescape

    Why is the Gaps Model of Service Quality Important?

    Gap 3 Not Delivering to Service Standardsn Chp 11 Employees Roles in Service Deliveryn Chp 12 Customers Roles in Service Deliveryn Chp 13 Delivering Services Through

    Intermediaries and Electronic Channelsn Chp 14 Managing Demand and Capacity

    Gap 4 Not Matching Performance to Promisesn Chp 15 Integrating Services Marketing

    Communicationsn Chp 16 Pricing of Services

  • MKTG/HTM 386 -- Hospitality Services Marketing

    Spring 2001

    James Madison University - College of Business 3

    PerceivedService

    Expected Service

    CUSTOMER

    COMPANY

    CustomerGap

    GAP 1

    GAP 2

    Gaps Model of Service Quality

    GAP 3

    External Communications

    to CustomersGAP 4Service Delivery

    Customer-Driven Service Designs and Standards

    Company Perceptions of Consumer Expectations

    Figure 18-1

    l Provider Gap 1: Not knowing what customers expect

    l Provider Gap 2: Not selecting the right service designs and standards

    l Provider Gap 3: Not delivering to service standards

    l Provider Gap 4: Not matching performance to promises

    Customer Expectations

    Customer Perceptions

    Figure 18-2

    Key Factors Leading to the Customer Gap

    CustomerGap

  • MKTG/HTM 386 -- Hospitality Services Marketing

    Spring 2001

    James Madison University - College of Business 4

    Customer Expectations

    Company Perceptions of Customer Expectations

    q Inadequate Marketing Research OrientationInsufficient marketing researchResearch not focused on service qualityInadequate use of market research

    q Lack of Upward CommunicationLack of interaction between management and customersInsufficient communication between contact employeesand managersToo many layers between contact personnel and topmanagement

    q Insufficient Relationship FocusLack of market segmentationFocus on transactions rather than relationshipsFocus on new customers rather than relationshipcustomers

    q Inadequate Service Recovery

    GAP1

    Figure 18-3

    Key Factors Leading to Provider Gap 1

    Customer-Driven Service Designs and Standards

    Management Perceptions of Customer Expectations

    q Poor Service Design Unsystematic new service development process Vague, undefined service designs

    Failure ot connect service design to servicepositioning

    q Absence of Customer-Driven StandardsLack of customer-driven service standardsAbsence of process management to focus oncustomer requirementsAbsence of formal process for setting servicequality goals

    q Inappropriate Physical Evidence and Servicescape

    GAP2

    Figure 18-4Key Factors Leading to Provider Gap 2

  • MKTG/HTM 386 -- Hospitality Services Marketing

    Spring 2001

    James Madison University - College of Business 5

    Service Delivery

    Customer-Driven Service Designs and Standards

    Key Factors Leading to Provider GAP 3Figure 18-5

    q Deficiencies in Human Resource PoliciesIneffective recruitmentRole ambiguity and role conflictPoor employee-technology job fitInappropriate evaluation and compensation systemsLack of empowerment, perceived control and teamwork

    q Failure to Match Supply and DemandFailure to smooth peaks and valleys of demandInappropriate customer mixOver-reliance on price to smooth demand

    q Customers Not Fulfilling RolesCustomers lack knowledge of their roles and responsibilitiesCustomers negatively impact each other

    q 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

    GAP3

    Service DeliveryKey Factors Leading to Provider GAP 4

    Figure 18-6

    q 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

    q Ineffective Management of Customer ExpectationsNot managing customer expectations through all forms ofcommunicationNot adequately educating customers

    q OverpromisingOverpromising in advertisingOverpromising in personal sellingOverpromising through physical evidence cues

    q Inadequate Horizontal CommunicationsInsufficient communication between sales and operationsInsufficient communication between advertising and operationsDifferences in policies and procedures across branches or units

    GAP4

    External Communications to Customers

  • MKTG/HTM 386 -- Hospitality Services Marketing

    Spring 2001

    James Madison University - College of Business 6

    Team Discussion Questions

    If you were a manager of a service organization and wanted to apply the gaps model to improve service, which gap would you start with? Why? In what order would you proceed to close the gaps?Can provider gap 4 be closed prior to closing any of the other three provider gaps? How?Which of the four provider gaps do you believe is the hardest to close? Why?