Post on 25-Nov-2014
transcript
Prof. Ashok Patnaik
Gaps Model of
Service Quality
By
Prof. Ashok Kumar Patnaik
Head Marketing and Communication-AIMS
Prof. Ashok Patnaik
What is GAP
• The customer gap is the difference between customer expectations and perceptions.
• For e.g. when you buy an expensive car/ buy a business class ticket you expect a high level of service, considerably superior to the other cheaper options available.
Prof. Ashok Patnaik
Five Dimensions of Service Quality
• Reliability: Delivering on promise
• Responsiveness: Being willing to help
• Assurance: Inspiring trust and confidence
• Empathy: Treating customers as individuals
• Tangibles: Representing the service physically
Prof. Ashok Patnaik
Example: Car repair • Problem fixed at the first time and ready
when promised• Accessible; no waiting; responds to
requests• Knowledgeable & skilled mechanics• Acknowledges customer by name;
remembers previous problems and preferences
• Repair facility; waiting area; uniforms; equipment
Prof. Ashok Patnaik
Example: Airline • Flights to promised destination; departure
and arrival on schedule• Prompt and speedy system of ticketing, in-
flight baggage handling• Trusted name; good safety record;
competent employees• Understands special individual needs;
anticipate customer needs • Aircraft; ticketing counters; baggage area;
uniforms
Prof. Ashok Patnaik
The customer gap
Customer Gap
Expected Service
Perceived Service
Prof. Ashok Patnaik
The customer gap (Restaurant)
Customer Gap
Expected Service(hygiene, temperature, service style, superior quality ingredients)
Perceived Service (experience you get at the end of the day)
Prof. Ashok Patnaik
Basis for Gaps model
• Closing the gap between what customers expect and what they perceive is critical to delivering quality service.
• It aims at understanding the customer better and better than any thing else as customer is the critical component of services marketing.
Prof. Ashok Patnaik
The provider gaps
• These gaps occur within the organisation providing the service:– Gap1: Not knowing what customers expect– Gap2: Not selecting the right service designs
and standards.– Gap3: Not delivering to service designs and
standards– Gap4: Not matching performance to promises
Prof. Ashok Patnaik
Not knowing what customer expect
• It is the difference between customer expectations of service and company understanding of those expectations.
Few Reasons:– Managers don’t interact with customers directly– They may be unwilling to ask about expectations– They may be unprepared to address them
Prof. Ashok Patnaik
Key factors leading to providers gap-1A
• Inadequate marketing research orientation– Insufficient marketing research– Research not focused on service quality – Inadequate use of market research
Prof. Ashok Patnaik
Key factors leading to provider gap-1B
• Lack of upward communication– Lack of interaction between management and
customers– Insufficient communication between contact
employees and managers– Too many layers between contact personal
and top management
Prof. Ashok Patnaik
Key factors leading to provider gap-1C
• Insufficient relationship focus– Lack of market segmentation– Focus on transactions rather than
relationships– Focus on new customers rather than
relationship with existing customers
Prof. Ashok Patnaik
Key factors leading to provider gap-1D
• Inadequate service recovery – Lack of encouragement to listen to customer
complaints– Failure to make amends when things go
wrong– No appropriate recovery mechanism in place
to service failures
Prof. Ashok Patnaik
Not having the right service quality designs and standards
• Accurate perceptions of customer’s expectations are necessary but not sufficient for delivering superior quality service.
• Another perquisite is the presence of service designs and performance standards that reflect those accurate perceptions.
Prof. Ashok Patnaik
Not having the right service quality designs and standards
• Customer driven standards are different from the conventional performance standards that companies establish for service.
• There are operations standards set to correspond to customer expectations and priorities rather than company concern s such as productivity or efficiency.
Prof. Ashok Patnaik
Not having the right service quality designs and standards
• Poor service design– Unsystematic new service development
process– Vague, undefined service designs– Failure to connect service design to service
positioning
Prof. Ashok Patnaik
Not having the right service quality designs and standards
• Absence of customer driven standards– Lack of customer driven standards– Absence of process management to focus on
customer requirements– Absence of formal process for setting service
quality goals
Prof. Ashok Patnaik
Not having the right service quality designs and standards
• Inappropriate physical evidence and service escape – Failure to develop tangibles in line with
customer expectations– Servicescape design that does not meet
customer and employee needs– Inadequate maintenance and updating of the
servicescape
Prof. Ashok Patnaik
Not delivering to service designs and standards
• Deficiencies in human resource policies – Ineffective recruitment– Role ambiguity and role conflict– Poor employee technology job fit – Inappropriate evaluation and compensation
systems– Lack of employment, perceived control and
teamwork
Prof. Ashok Patnaik
Not delivering to service designs and standards
• Customers who do not fulfill roles– Customers who lack knowledge of their roles
and responsibilities– Customers who negatively impact each other
Prof. Ashok Patnaik
Not delivering to service designs and standards
• Problems with service intermediaries– Channel conflict over objectives and
performance– Difficulty controlling quality and consistency– Tension between employment and control
Prof. Ashok Patnaik
Not delivering to service designs and standards
• Failure to match supply and demand– Failure to smooth peaks and valleys of
demand– Inappropriate customer mix– Over-reliance on price to smooth demand
Prof. Ashok Patnaik
Not matching performance to promises
• Lack of integrated services marketing communications– Tendency to view each external
communication as independent – Absence of interactive marketing in
communication plans– Absence of strong internal marketing
programme
Prof. Ashok Patnaik
Not matching performance to promises
• Ineffective management of customer expectations– Absence of customer expectation
management through all forms of communication
– Lack of adequate education for customers
Prof. Ashok Patnaik
Not matching performance to promises
• Over promising – Over promising in advertising – Over promising in personal selling– Over promising through physical evidence
cues
Prof. Ashok Patnaik
Not matching performance to promises
• Inadequate horizontal communications– Insufficient communication between sales and
operations– Insufficient communication between
advertising and operations– Differences in policies and procedures across
branches or units
Prof. Ashok Patnaik
Service Delivery External
Communication to Customers
Perceived Service
Expected Service
Customer Driven Service Designs and Standards
Company perceptions of Consumer Expectations
CUSTOMER
COMPANY
Customergap
Gap1
Gap4Gap3
Gap2
Prof. Ashok Patnaik
Factors that influence service expectations
Personal needs
Beliefs about What is possible
Situational factors
Perceived services
Adequate services
Desired services
Predicted service
Explicit and implicit service promises Word of mouth past experience
ZONE OF
TOLERANCE
Prof. Ashok Patnaik
Consumer Behaviour in Services
By
Prof. Ashok Kumar Patnaik
Prof. Ashok Patnaik
“Memorable are experiences and not gadgets”
- Daniel Bethamy
Prof. Ashok Patnaik
Consumer behaviour in service settings
• “For companies who want to successfully enter the Indian market, there is no substitute for a deep understanding of the Indian consumer…..Companies doing business in India need to capture the differences in consumers’ needs and aspirations and the barriers and triggers to change”– Keki Dadiseth, Ex Chairman, HLL India
Prof. Ashok Patnaik
The purchase process of services Awareness of Need
Future Intentions
Information search
Evaluation of alternative service suppliers
Request service from chosen supplier
Service delivery
Evaluation of service performance
Prof. Ashok Patnaik
Pre-purchase stage• Seeking information from respected personal
sources (family, friends, peers)• Relying on a firm that has a good reputation• looking for guarantees and warranties• Visiting service facilitates or trying aspects of
the service before purchasing• Asking knowledgeable employees about
competing services• Examining tangible cues or other physical
evidence• Using the internet to compare service offerings
Prof. Ashok Patnaik
An understanding of CB lies at the heart of services marketing
• Why do customers buy one service and not the other?
• Who or what influences their decisions and their brand preferences?
• What criteria do they evaluate possible alternatives?
• Why do they buy this type of service when a different type of service might have provided a better solution to their needs?
• What drives these needs in the first place?
Prof. Ashok Patnaik
Perceived risks in purchasing and using services-2
• Physical risk (personal injury or damage to possessions)
• Psychological risk (personal fears and emotions)
• Social risk (how others think and react)
• Sensory risk (unwanted impacts on any of the five senses)
Prof. Ashok Patnaik
Customer decision making and evaluation of services
Need reorganization
Information search
Evaluation of alternatives
Purchase
Consumer Experience
Post experience evaluation
Prof. Ashok Patnaik
Need recognition • Physiological needs are such as biological
needs such as food, water and sleep.• Safety and security needs include shelter,
protection and security.• Social needs are for affection, friendship
and acceptance.• Ego needs are for prestige, success,
accomplishment and self-esteem.• Self actualization involves self-fulfillment
and enriching experiences.
Prof. Ashok Patnaik
Information search
• Personal and non-personal sources
• Perceived risk
Prof. Ashok Patnaik
Understanding user costs for services
• Price and other financial expenditure – Search costs– Purchase and use costs– After costs– Operating costs– Incidental expenses
• Non-financial outlays and burdens – Time expenditures – Physical effort– Psychological burdens– Sensory burdens
Prof. Ashok Patnaik
Perceived risks in purchasing and using services-1
• Functional risk (unsatisfactory performance outcomes)
• Financial risk (monetary loss, unexpected costs)
• Temporal risk (wasting time, consequences of delays)
Prof. Ashok Patnaik
Understanding difference among consumers
• The role of culture – Values and attitudes differ across culture– Manners and customs– Material culture – Aesthetics– Educational and social institutions
Prof. Ashok Patnaik
Understanding difference among consumers
• Group decision making– Households– Organisations
• The initiator• The gatekeeper• The decider• The buyer• The user
Prof. Ashok Patnaik
Consumer expectations of service
Prof. Ashok Patnaik
Customer expectation
• It is the beliefs about service delivery that serve as standards or reference points against which performance is judged.
• Customers compare their perceptions of performance with these reference points when evaluating service quality, through knowledge about customer expectations is critical to service matters.
Prof. Ashok Patnaik
Types of service expectations
• Ideal expectations or desire: Every one says this restaurant is as good as one in France and I want to go somewhere very special for my birthday.
• Normative “should” expectation: As expensive as this restaurant is, it ought to have excellent food and service.
Prof. Ashok Patnaik
Types of service expectations
• Experience based norms: Most times this restaurant is very good, but when it gets busy the service is slow.
• Acceptable expectations: I expect this restaurant to service me in an adequate manner.
• Minimum tolerable expectations: I except terrible service from this restaurant but come because the price is low.
Prof. Ashok Patnaik
Sources of adequate service expectations
• Temporary service intensifiers
• Perceived service alternatives
• Self-perceived service role
• Situational factors
Prof. Ashok Patnaik
Issues in customer service expectations
• What does a service marketer do if customer expectations are unrealistic’?
• Should a company try to delight the customer?
• How does a company exceed customer service expectations?
• Do customer service expectations continually escalate?
• How does a service company stay ahead of competition in meeting customer expectations?
Prof. Ashok Patnaik
Customer perception of service
Prof. Ashok Patnaik
Consumer perception
• Satisfaction vs service quality
• Transaction vs cumulative perception
Prof. Ashok Patnaik
Determinants of customer satisfaction
• Product and service features
• Consumer emotions
• Attributes for service success or failure
• Perceptions of equity or fairness
• Other consumers, family members and
co-workers
Prof. Ashok Patnaik
Service encounters
• Types of service encounters– Remote encounters (interaction to bank
through ATM, railway ticket from internet)– Phone encounters (customer service, general
enquiry and order booking)– Face-to-face encounters (maintenance
personal, ticket counter, food and beverage services etc.)
Prof. Ashok Patnaik
Pleasure and displeasure in service encounters
• Recovery- employee response to service delivery failures
• Adaptability- employee response to customer needs and requests
• Spontaneity-unprompted and unsolicited employee actions
• Coping –employee response to problem customers
Prof. Ashok Patnaik
Listening to customer through research
• Companies think that they believe they know customers should want and deliver that, rather than finding out what they do want.
• Listening to customers uses marketing research to understand customers and their requirements fully.
Prof. Ashok Patnaik
Research objectives for services
• To discover customer requirement or expectation for service
• To monitor and track service performance• To assess overall company performance
compared with that of competition• To assess gaps between customer
expectations with perception• To identify dissatisfied customers, so that
service recovery can be attempted
Prof. Ashok Patnaik
Research objectives for services
• To gauge service effectiveness changes in service delivery
• To appraise the service performance of individuals and teams for evaluation, recognition, and rewards
• To determine customer expectations for a new service
• To monitor and forecast changing customer expectation in an industry
Prof. Ashok Patnaik
Criteria for an effective service research programme
• Includes both qualitative and quantitative research
• Includes both expectations and perceptions of customers
• Balances the cost of the research and the value of the information
• Includes statistical validity when necessary• Measures priorities or importance of attributes• Occurs with appropriate frequency • Includes measurement of loyalty, behavioral
intentions or actual behavior
Prof. Ashok Patnaik
Complaint soliciation
• To identify /attend to dissatisfied customers
• To identify common service failures
Prof. Ashok Patnaik
Critical incident studies
• To identify best practices at transaction level
• To identify customer requirements as input for quantitative studies
• To identify common service failure points
• To identify systemic strength and weaknesses in customer contact services
Prof. Ashok Patnaik
Requirement research
• To identify customer requirements as input for quantitative research
Prof. Ashok Patnaik
Relationship surveys
• To monitor and track service performance
• To assess overall company performance
• To determine links between satisfaction and behavioural intentions
• To assess gaps between customer expectations and perceptions
Prof. Ashok Patnaik
Trailer calls
• To obtain immediate feedback on performance of service transactions
• To measure effectiveness of changes in service delivery
• To assess service performance of individuals and teams
• To use as input for process improvements
• To identify common service failure points
Prof. Ashok Patnaik
Service expectation meetings and reviews
• To create dialogue with important customers
• To identify what individuals large customers expect and then to ensure that it is delivered
• To close the loop with important customers
Prof. Ashok Patnaik
Process checkpoint evaluations
• To determine customer perceptions of long term professional service during service provision
• To identify service problems and solve them early in the service relationship
Prof. Ashok Patnaik
Market oriented ethnography
• To research customers in natural settings
• To study customers from culture other than India in an unbiased way
Prof. Ashok Patnaik
Mystery shopping
• To measure individual employee performance for evaluation, reorganization and reward
• To identify systematic strengths and weaknesses in customer contact services
Prof. Ashok Patnaik
Customer panel
• To monitor changing customer expectations
• To provide a forum for customer expectations
Prof. Ashok Patnaik
Lost customer research
• To identify reasons for customer defections
• To assess gaps between customer expectations and perceptions
Prof. Ashok Patnaik
Future expectations research
• To forecast future expectations of customers
• To develop and test new service ideas
Prof. Ashok Patnaik
Data base marketing research
• To identify the individual requirements of customers using information technology and database information