CUSTOMER SATISFACTION AND SERVICE QUALITY

(GAP MODEL)

PRESENTATION OVERVIEW

Measuring service qualityServQual model

Gaps model of service qualityReasons for the gapsStrategies for closing the gaps

Measure customer satisfaction

What is service quality?

What do we mean when we speak of service quality? Company personnel need a common understanding in order to be able to address such issues as the measurement of service quality, the identification of causes of service quality shortfalls, and the design and implementation of corrective actions.

Perspectives on service quality

The word quality means different things to people according to the context. DEVID GARVIN identifies five perspectives on quality-

1. The transcendent view of quality is synonymous with innate excellence: a mark of uncompromising standards and high achievement.

2.The product-based approach sees quality as a precise and measurable variable.

Perspectives on service quality

3.User-based definitions start with the premise that quality lies in the eyes of the beholder. these definitions equate quality with maximum satisfaction.

4.The manufacturing based approach is supply based and is concerned primarily with engineering and manufacturing practices.

5.Value-based definitions define quality in terms of value and price.

Measuring service quality: SERVQUAL Model

(Parasuraman, Zeithaml & Berry 1985, 1988)

ServiceQuality

ServiceQuality

ReliabilityReliability

ResponsivenessResponsiveness

AssuranceAssurance

Empathy

TangiblesTangibles

Servqual Dimensions

1. RELIABILITY

DependabilityDelivering on promisesAccuracyConsistency

Get it right the first time!

Servqual Dimensions

2. RESPONSIVENESS

PromptnessHelpfulness

Servqual Dimensions

3. ASSURANCE

competence courtesy credibility security

I feel safe

Servqual Dimensions

4. EMPATHY

Easy accessGood communicationCustomer understandingPersonalised attention

Servqual Dimensions

5. TANGIBLES

Physical evidenceMaterial (e.g., brochures or statements)

People look smart

The gaps model of service quality

Where are things going wrong?What leads to poor service quality

Gaps model of service qualityCustomer gap

difference between customer’s expectations and perceptions of performance

Four provider gapseach may lead to the customer gap

Customer Needs And Expectations

Management Definition Of These Needs

Translation Into Design /Design Specs

Execution Of Design/Delivery Specs

Customer Perceptions Of Product Execution

Customer Experience Relative To Expectations

Advertising And Sales Promises

Customer Interpretation Of Communications

1.The knowledge Gap

4.The internal communication Gap

6.The interpretation Gap

2. The standards Gap

3.The delivery Gap

5.the perception Gap

7.The service Gap

CUSTOMER

MANAGEMENT

THE GAPS MODEL OF SERVICE QUALITY

4

1.THE KNOWLEDGE GAP

Is the difference between what service providers believe customers expect and customers actual needs and expectations.

2. THE STANDARDS GAP

Is the difference between management’s perceptions of customer expectations and the quality standards established for service delivery.

3.THE DELIVERY GAP

Is the difference between specified delivery standards and the service provider’s actual performance on these standards.

4.THE INTERNAL COMMUNICATION GAP

Is the difference between what the company’s advertising and sales personnel think are the products features, performance, and service quality level and what the company is actually able to deliver.

5.THE PERCEPTION GAP

Is the difference between what is, in fact, delivered and what customers perceive they received (because they are unable to accurately evaluate service quality).

6.THE INTERPRETATION GAP

Is the difference between what the service communication efforts (in advance of service delivery) promise and what a customer thinks was promised by these communications.

7.THE SERVICE GAP

Is the difference between what customer expect to receive and their perceptions of the service that is delivered.

Customer’s expectationsCustomer’s expectations

Company’s perceptions of customer expectations

Company’s perceptions of customer expectations

Inadequate marketing research orientation

Lack of upward communication

Insufficient relationship focus

Inadequate service recovery

Reasons for

providergap

I

Reasons for

providergap

I

Translation of perceptions into service quality specifications

Translation of perceptions into service quality specifications

Management perceptions of customer expectations

Management perceptions of customer expectations

Poor service design

Absence of customer-defined service standards

Inappropriate physical evidence and servicescape

Reasons for

provider gap

2

Reasons for

provider gap

2

Poor human resource policies Failure to match supply and demand Customer not fulfilling their roles Problems with service

intermediaries

Service deliveryService delivery

Customer-driven service designs and standards

Customer-driven service designs and standards

Reasons for

provider gap

3

External communications to consumersExternal communications to consumers

Service deliveryService delivery

Lack of integration of marketing communications

Inadequate management of customer expectations

Overpromising

Inadequate horizontal communications

Reasons for

provider gap 4

Reasons for

provider gap 4

• Not knowing what customers expect

• Not selecting the right service standards and designs

• Not delivering to service standards

• Not matching performance to promised

Customer expectations

Customer expectations

Customer perceptions Customer perceptions

Reasons for

Customer Gap 5

Reasons for

Customer Gap 5

CLOSING THE GAPS

Gap 1: Learn what customers expectGap 2: Establish the right service quality standards

Gap 3: Ensure that service performance meets standards

Gap 4: Ensure that delivery matches promises

Closing gap 1: Learn what customers expect

Use research, complaint analysis, customer panels

Increase direct interactions between managers and customers

Improve upward communicationsAct on information and insights

listen to customers

Closing gap 2: Establish the right service quality standardsTop management commitment to providing service quality

Set, communicate, and reinforce customer-oriented service standards

Establish challenging and realistic service quality goals

Train managers to be service quality leadersBe receptive to new ways to deliver service quality

Standardise repetitive tasks

Prioritise tasksGain employee acceptance of goals and priorities

Measure performance of service standards and provide regular feedback

Reward managers and employees for achievement of quality goals

Service Quality Awards

Closing gap 3: Ensure that service performance meets standards

Attract the best employeesSelect the right employeesDevelop and support employees train employees provide appropriate technology &

equipmentencourage and build teamworkempower employees internal marketing

Can I take your

order?

Retain good employeesmeasure and reward service quality achievements

develop equitable and simple reward systems

You are a

Star Service

Provider

Closing gap 4: Ensure that service delivery matches promises

Seek input from operations personnel on what can be done

‘Reality’ advertising real employees, real customers, real situations

Seek input from employees on advertisingGain communications between sales, operations and customers

Internal marketing programsEnsure consistent standards in multi-site operations

In advertising, focus on service characteristics that are important to customers

Manage customer’s expectationsWhat are realistic expectations?Explain industry realities

Tiered service optionsOffer different levels of service - user

pays

Why do we always have to wait?

Service Satisfaction Information System

Customer Complaints Surveys Employee Surveys Focus Groups ‘Mystery shopping’ research Competitive market surveys - benchmark

Measuring Satisfaction

Qualitative Research Understand key drivers / determinants Questionnaire design Data analysis Service performance index (SPI) Importance - performance analysis

CONCLUSION

Just as the SERVQUAL model is extensively used to assess external service quality, the instrument can also be modified to assess the quality of the internal service provided by departments and divisions within a company to employees in other departments and division.