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Gaps Model of Service Quality
   Customer gap:
       Difference between expectations and perceptions
   Provider gap 1:
       Not knowing what customers expect
   Provider gap 2:
       Not selecting the right service designs and
        standards
   Provider gap 3:
       Not delivering to service standards
   Provider gap 4:
       Not matching performance to promises
Provider Gap 1

  CUSTOMER
                       Expected
                        Service



             GAP 1

                       Company
  COMPANY            Perceptions of
                       Consumer
                      Expectations
Provider Gap 2
 CUSTOMER




  COMPANY            Customer-Driven
                    Service Designs and
                         Standards

            GAP 2
                        Company
                      Perceptions of
                        Consumer
                       Expectations
Provider Gap 3
  CUSTOMER




  COMPANY                Service Delivery
                 GAP 3
                          Customer-Driven
                         Service Designs and
                              Standards
Provider Gap 4
  CUSTOMER




  COMPANY    Service Delivery               External
                                        Communications
                                GAP 4    to Customers
Gaps Model of Service Quality
   CUSTOMER                Expected
                            Service
              Customer
                Gap
                           Perceived
                            Service
                                                              External
  COMPANY
                       Service Delivery           Gap 4
                                                          Communications
                                                           to Customers
     Gap 1     Gap 3
                        Customer-Driven Service
                         Designs and Standards

               Gap 2
                         Company Perceptions of
                         Consumer Expectations
Key Factors Leading to the Customer Gap
                             Customer
Customer                    Expectations
  Gap


            Provider Gap 1: Not knowing what customers expect

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

            Provider Gap 3: Not delivering to service standards

            Provider Gap 4: Not matching performance to promises




                               Customer
                              Perceptions
Key Factors Leading to Provider Gap 1
                     Customer
                    Expectations
GAP
            Inadequate Marketing Research Orientation
 1
        

              Insufficient marketing research
              Research not focused on service quality
              Inadequate use of market research
           Lack of Upward Communication
              Lack of interaction between management and customers
              Insufficient communication between contact employees
              and managers
              Too many layers between contact personnel and top
              management
           Insufficient Relationship Focus
              Lack of market segmentation
              Focus on transactions rather than relationships
              Focus on new customers rather than relationship
              customers

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

GAP      Poor Service Design
 2         Unsystematic new service development
            process
           Vague, undefined service designs
         Absence of Customer-Driven Standards
           Lack of customer-driven service standards
           Absence of process management to focus
           on customer requirements
           Absence of formal process for setting
           service quality goals
         Inappropriate Physical Evidence and
          Servicescape

             Management Perceptions
                  of Customer
                  Expectations
Key Factors Leading to Provider Gap 3
                 Customer-Driven Service
                  Designs and Standards
GAP        Deficiencies in Human Resource Policies
 3           Ineffective recruitment
             Role ambiguity and role conflict
             Poor employee-technology job fit
             Inappropriate evaluation and compensation systems
             Lack of empowerment, perceived control and teamwork
           Failure to Match Supply and Demand
             Failure to smooth peaks and valleys of demand
             Inappropriate customer mix
             Over-reliance on price to smooth demand
           Customers Not Fulfilling Roles
             Customers lack knowledge of their roles and responsibilities
             Customers negatively impact each other
           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

                  Service Delivery
Key Factors Leading to Provider Gap 4
                   Service Delivery

GAP      Lack of Integrated Services Marketing Communications
             Tendency to view each external communication as
              independent
 4           Not including interactive marketing in communications plan
             Absence of strong internal marketing program
         Ineffective Management of Customer Expectations
            Not managing customer expectations through all forms of
            communication
            Not adequately educating customers
         Overpromising
            Overpromising in advertising
            Overpromising in personal selling
            Overpromising through physical evidence cues
         Inadequate Horizontal Communications
            Insufficient communication between sales and operations
            Insufficient communication between advertising and operations
            Differences in policies and procedures across branches or units

             External Communications to
                      Customers
Causes Behind Service Switching

Pricing
•   High Price
•   Price Increases                      Response to Service Failure
•   Unfair Pricing                       • Negative Response
•   Deceptive Pricing                    • No Response
                                         • Reluctant Response
Inconvenience
• Location/Hours                         Competition
• Wait for Appointment
• Wait for Service
                              Service    • Found Better Service

                             Switching   Ethical Problems
Core Service Failure
• Service Mistakes           Behavior    •
                                         •
                                             Cheat
                                             Hard Sell
• Billing Errors                         •   Unsafe
• Service Catastrophe                    •   Conflict of Interest

Service Encounter Failures               Involuntary Switching
•   Uncaring
                                         • Customer Moved
•   Impolite
                                         • Provider Closed
•   Unresponsive
•   Unknowledgeable

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Gap model

  • 1. Gaps Model of Service Quality  Customer gap:  Difference between expectations and perceptions  Provider gap 1:  Not knowing what customers expect  Provider gap 2:  Not selecting the right service designs and standards  Provider gap 3:  Not delivering to service standards  Provider gap 4:  Not matching performance to promises
  • 2. Provider Gap 1 CUSTOMER Expected Service GAP 1 Company COMPANY Perceptions of Consumer Expectations
  • 3. Provider Gap 2 CUSTOMER COMPANY Customer-Driven Service Designs and Standards GAP 2 Company Perceptions of Consumer Expectations
  • 4. Provider Gap 3 CUSTOMER COMPANY Service Delivery GAP 3 Customer-Driven Service Designs and Standards
  • 5. Provider Gap 4 CUSTOMER COMPANY Service Delivery External Communications GAP 4 to Customers
  • 6. Gaps Model of Service Quality CUSTOMER Expected Service Customer Gap Perceived Service External COMPANY Service Delivery Gap 4 Communications to Customers Gap 1 Gap 3 Customer-Driven Service Designs and Standards Gap 2 Company Perceptions of Consumer Expectations
  • 7. Key Factors Leading to the Customer Gap Customer Customer Expectations Gap  Provider Gap 1: Not knowing what customers expect  Provider Gap 2: Not selecting the right service designs and standards  Provider Gap 3: Not delivering to service standards  Provider Gap 4: Not matching performance to promises Customer Perceptions
  • 8. Key Factors Leading to Provider Gap 1 Customer Expectations GAP Inadequate Marketing Research Orientation 1  Insufficient marketing research Research not focused on service quality Inadequate use of market research  Lack of Upward Communication Lack of interaction between management and customers Insufficient communication between contact employees and managers Too many layers between contact personnel and top management  Insufficient Relationship Focus Lack of market segmentation Focus on transactions rather than relationships Focus on new customers rather than relationship customers Company Perceptions of Customer Expectations
  • 9. Key Factors Leading to Provider Gap 2 Customer-Driven Service Designs and Standards GAP  Poor Service Design 2 Unsystematic new service development process Vague, undefined service designs  Absence of Customer-Driven Standards Lack of customer-driven service standards Absence of process management to focus on customer requirements Absence of formal process for setting service quality goals  Inappropriate Physical Evidence and Servicescape Management Perceptions of Customer Expectations
  • 10. Key Factors Leading to Provider Gap 3 Customer-Driven Service Designs and Standards GAP  Deficiencies in Human Resource Policies 3 Ineffective recruitment Role ambiguity and role conflict Poor employee-technology job fit Inappropriate evaluation and compensation systems Lack of empowerment, perceived control and teamwork  Failure to Match Supply and Demand Failure to smooth peaks and valleys of demand Inappropriate customer mix Over-reliance on price to smooth demand  Customers Not Fulfilling Roles Customers lack knowledge of their roles and responsibilities Customers negatively impact each other  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 Service Delivery
  • 11. Key Factors Leading to Provider Gap 4 Service Delivery GAP  Lack of Integrated Services Marketing Communications Tendency to view each external communication as independent 4 Not including interactive marketing in communications plan Absence of strong internal marketing program  Ineffective Management of Customer Expectations Not managing customer expectations through all forms of communication Not adequately educating customers  Overpromising Overpromising in advertising Overpromising in personal selling Overpromising through physical evidence cues  Inadequate Horizontal Communications Insufficient communication between sales and operations Insufficient communication between advertising and operations Differences in policies and procedures across branches or units External Communications to Customers
  • 12. Causes Behind Service Switching Pricing • High Price • Price Increases Response to Service Failure • Unfair Pricing • Negative Response • Deceptive Pricing • No Response • Reluctant Response Inconvenience • Location/Hours Competition • Wait for Appointment • Wait for Service Service • Found Better Service Switching Ethical Problems Core Service Failure • Service Mistakes Behavior • • Cheat Hard Sell • Billing Errors • Unsafe • Service Catastrophe • Conflict of Interest Service Encounter Failures Involuntary Switching • Uncaring • Customer Moved • Impolite • Provider Closed • Unresponsive • Unknowledgeable