Gap model

1. The Gaps Model of Service Quality Introduce a framework, called the gaps model of service quality. Demonstrate that the most critical service quality gap to close is the customer gap, the difference between customer expectations and perceptions. Show that four gaps that occur in companies, which we call provider gaps, are responsible for the customer gap. Identify the factors responsible for each of the four provider gaps.

2. Gaps Model of Service Quality Customer Gap: difference between customer expectations and perceptions Provider Gap 1 ( The Knowledge Gap ): not knowing what customers expect Provider Gap 2 ( The Service Design & Standards Gap ): not having the right service designs and standards Provider Gap 3 ( The Service Performance Gap ): not delivering to service standards Provider Gap 4 ( The Communication Gap ): not matching performance to promises

3. The Customer Gap Expected service Perceived service Customer Gap

4. Key Factors Leading to the Customer Gap Customer Expectations Customer Perceptions Customer Gap

5. Customer Expectations Company Perceptions of Customer Expectations Key Factors Leading to Provider Gap 1 Gap 1

6. Customer-Driven Service Designs and Standards Management Perceptions of Customer Expectations Key Factors Leading to Provider Gap 2 Gap 2

7. Service Delivery Customer-Driven Service Designs and Standards Key Factors Leading to Provider Gap 3 Gap 3

8. Service Delivery External Communications to Customers Key Factors Leading to Provider Gap 4 Gap 4

9. Perceived Service Expected Service CUSTOMER COMPANY Customer Gap Gap 1 Gap 2 Gap 3 External Communications to Customers Gap 4 Service Delivery Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations Gaps Model of Service Quality

10. 10 Service Quality: The Parasuraman , Berry and Zeithaml Models Parasuraman, Zeithaml, and Berry, professors at various American business schools- built a conceptual model of service quality, developed a questionnaire called SERVQUAL which measures service quality, and conceptualised a model for shortfall in service quality called the Gaps Model. We will discuss their work, as it forms an important part of the literature on services marketing.

11. 11 Contd …Service Quality These three authors contend that the customer is the best judge of service quality. They identified five criteria that customers use to evaluate service quality. These were- Tangibles Reliability Responsiveness Assurance Empathy

12. Definitions of the SERVQUAL Dimensions Tangibles : Appearance of physical facilities, equipment, personnel, and communication materials. Reliability : Ability to perform the promised service dependably and accurately. Responsiveness : Willingness to help customers and provide prompt service. Assurance : Knowledge and courtesy of employees and their ability to inspire trust and confidence. Empathy : Caring, individualized attention the firm provides its customers. 12

13. Determinants of Perceived Service Quality Dimensions of Service Quality 1. Access 2. Communication 3. Competence 4. Courtesy 5. Credibility 6. Reliability 7. Responsiveness 8. Security 9. Tangibles 10. Understanding/Knowing the Customer Expected Service Perceived Service Service Quality Gap Perceived Service Quality Word of Mouth Personal Needs Past Experience External Communication to Customers 13

14. Correspondence between SERVQUAL Dimensions and Original Ten Dimensions for Evaluating Service Quality Original Ten Dimensions for Evaluating Service Quality TANGIBLES RELIABILITY RESPONSIVENESS COMPETENCE COURTESY CREDIBILITY SECURITY ACCESS COMMUNICATION UNDERSTANDING/ KNOWING THE CUSTOMER TANGIBLES RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY SERVQUAL Dimensions 14

15. The Five Key Service Dimensions ASSURANCE - a combination of the following Competence - having the requisite skills and knowledge Courtesy - politeness, respect, consideration and friendliness of contact staff Credibility - trustworthiness, believability and honesty of staff Security - freedom from danger, risk or doubt

16. The Five Key Service Dimensions EMPATHY - a combination of the following: Access (physical and social) - approachability and ease of contact Communication - keeping customers informed in a language they understand and really listening to them Understanding the customer - making the effort to get to know customers and their specific needs

17. Framework for isolating differences in evaluation of quality Search Properties : attributes which a consumer determine prior to purchasing a product. Ex colour, style, price, fit, feel, hardness, and smell Experience Properties : attributes which can only be discerned after purchase or during consumption Ex taste, wearability, and dependability.

18. Credence properties : Characteristics which the customer may find impossible to evaluate even after purchase and consumption. These aspects of service quality can be categorized into the 10 service quality determinants and can be arrayed along a continuum ranging from easy to evaluate to difficult to evaluate

19. Figure 5.1 Customer Perceptions of Quality and Customer Satisfaction

20. Factors Influencing Customer Satisfaction Product/service quality Specific product or service features Attributions for service success or failure Perceptions of equity or fairness Other consumers, family members, and coworkers Price Personal factors the customer’s mood or emotional state situational factors

21. Service Quality The customer’s judgment of overall excellence of the service provided in relation to the quality that was expected. Service quality assessments are formed on judgments of: outcome quality interaction quality physical environment quality