the gap model of service quality

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THE GAP MODEL OF SERVICE QUALITY

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Page 1: The Gap Model of Service Quality

THE GAP MODEL OF SERVICE QUALITY

Page 2: The Gap Model of Service Quality

Service Quality

Quality of the service is the degree of conformance of all the relevant features and characteristics of service to all the aspects of the consumers’ needs limited by the price and delivery s/he will accept.

Quality can be viewed from two perspectives:

Internal quality based on conformance to specifications

External quality based on customer-perceived quality

Page 3: The Gap Model of Service Quality

Importance Of Quality For Service Marketers

Gain competitive advantage, maintain loyaltyIncrease value (may permit higher margins)Improve profits

Page 4: The Gap Model of Service Quality

The Gaps Model of Service Quality

Page 5: The Gap Model of Service Quality

Gaps Model of Service QualityGaps Model of Service Quality

PerceivedService

Expected Service

CUSTOMER

COMPANY

CustomerGap

Gap 1

Gap 2

Gap 3

External Communications

to CustomersGap 4ServiceDelivery

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Page 6: The Gap Model of Service Quality

Customer Expectations

Company Perceptions of Customer Expectations

Not Knowing What Customers Expect

Gap1 •Inadequate marketing

research orientation•Lack of upward communication•Insufficient relationship focus•Inadequate service recovery

Page 7: The Gap Model of Service Quality

Customer-Driven Service Designs and Standards

Management Perceptions of Customer Expectations

Not Selecting The Right Service Designs And Standards

Gap2

• Poor service design• Absence of customer-driven standards • Inappropriate physical evidence and services gap

Page 8: The Gap Model of Service Quality

Service Delivery

Customer-Driven Service Designs and Standards

Not Delivering To Service Designs And Standards

Gap3

•Deficiencies in human resource policies•Customers who do not fulfill roles•Problems with service intermediaries• Failure to match supply and demand

Page 9: The Gap Model of Service Quality

Service Delivery

External Communications to Customers

Not Matching Performance To Promises

Gap4

•Lack of integrated services marketing communications.•Ineffective management of customer expectations.•Overpromising.•Inadequate horizontal communications.

Page 10: The Gap Model of Service Quality

Focus on the consumer – Customer Gap

Page 11: The Gap Model of Service Quality

Gaps Model of Service QualityGaps Model of Service Quality

PerceivedService

Expected Service

CUSTOMER

COMPANY

CustomerGap

Gap 1

Gap 2

Gap 3

External Communications

to CustomersGap 4ServiceDelivery

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Page 12: The Gap Model of Service Quality

The central focus of the gaps model is the customer gap, the difference between customer expectations and perceptions.

Expectations are the reference points customers have coming in to a service experience.

Perceptions reflect the service as actually received.

Page 13: The Gap Model of Service Quality

Most goods

Easy toevaluate

Most services

Difficult toevaluate

High in credenceproperties

High in experienceproperties

High in searchproperties

Clo

thin

g

Jew

elry

Fur

nitu

re

Hou

ses

Aut

omob

il es

Res

tau r

ant

mea

l s

Vac

atio

n

Hai

rcut

s

Chi

ld c

are

Tele

visi

on r

epai

r

Lega

l ser

vice

s

Roo

t ca

nal

Aut

o re

pair

Med

ical

dia

gnos

is

How Consumers Evaluate Goods and Services

Page 14: The Gap Model of Service Quality

Consumer Choice

Page 15: The Gap Model of Service Quality
Page 16: The Gap Model of Service Quality

Customer Expectation Of Service

Page 17: The Gap Model of Service Quality

ZONE OF TOLERANCE

Desired Service

Adequate Service

Dual customer expectations levels and the Zone of Tolerance

Page 18: The Gap Model of Service Quality

ZONE OF TOLERANCE

Desired Service

Adequate Service

ZONE OF TOLERANCE

Desired Service

Adequate Service

Reliability Tangibles

Level OfExpectation

Page 19: The Gap Model of Service Quality

ZONE OF TOLERANCE

Desired Service

Adequate Service

Lasting Service

Intensifiers

Personal Needs

Page 20: The Gap Model of Service Quality

ZONE OF TOLERANCE

Desired Service

Adequate Service

Lasting Service

Intensifiers

Personal Needs

Temporary Service

Intensifiers

Perceived Service

Alternatives

Self Perceived Service Role

Situational Factors

Predicted Service

Page 21: The Gap Model of Service Quality

ZONE OF TOLERANCE

Desired Service

Adequate Service

Lasting Service

Intensifiers

Personal Needs

Temporary Service

Intensifiers

Perceived Service

Alternatives

Self Perceived Service Role

Situational Factors

Predicted Service

Explicit Service

Promises

Implicit Service

Promises

Word – Of –Mouth

Past Experience

Page 22: The Gap Model of Service Quality

Customer Satisfaction

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation.

It is seen as a key performance indicator within business.

Page 23: The Gap Model of Service Quality

Customer Loyalty

"Customer loyalty is when an organization receives the ultimate reward for the way it interacts with its customers. “

Although customer loyalty is often achieved through offers, discount coupons, rebates and other kinds of rewards, long-term customer loyalty can only be created by making your customers feel that they are your number one priority.

Page 24: The Gap Model of Service Quality

Customer Satisfaction vs.Customer Loyalty

Customer satisfaction measures how well a customer’s expectations are met.

Customer loyalty measures how likely customers are to return and their willingness to perform partner shipping activities for the organization.

Customer satisfaction is a requisite for loyalty.

Page 25: The Gap Model of Service Quality

Customer Perceptions of Quality and Customer Satisfaction

Page 26: The Gap Model of Service Quality

What determines Customer Satisfaction?

Product/service features. Consumer emotions.Attributions for service success or failure.

Perceptions of equity or fairness.Other consumers, family members.Price.

Page 27: The Gap Model of Service Quality

Outcomes of Customer Satisfaction

Increased customer retention.Positive word-of-mouth communications.

Increased revenues.

Page 28: The Gap Model of Service Quality

Dimensions of Service Quality

Reliability: Delivering on promises. Example: receive mail at same time each day.

Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.

Page 29: The Gap Model of Service Quality

Dimensions of Service Quality

Assurance: Inspiring trust and confidence. Example: Insurance, medical services, etc..

Empathy: Treating customers as individuals. Example: being a good listener.

Tangibles: Representing the service physically.

Example: Food.

Page 30: The Gap Model of Service Quality

The Service Encounter – The Moment Of Truth

Occurs any time the customer interacts with the firm.

Can potentially be critical in determining customer satisfaction and loyalty.

Is an opportunity to: build trust reinforce quality build brand identity increase loyalty

Page 31: The Gap Model of Service Quality

Types of encounters

Remote Encounters Phone Encounters Face-to-face Encounters

Page 32: The Gap Model of Service Quality

A Service Encounter Cascadefor a Hotel Visit

Check-InCheck-In

Request Wake-Up CallRequest Wake-Up Call

CheckoutCheckout

Bellboy Takes to Room Bellboy Takes to Room

Restaurant MealRestaurant Meal

Page 33: The Gap Model of Service Quality

A Service Encounter Cascade for an Industrial Purchase

Sales CallSales Call

Ordering SuppliesOrdering Supplies

BillingBilling

Delivery and Installation Delivery and Installation

ServicingServicing

Page 34: The Gap Model of Service Quality

Service Encounters Themes

Recovery: Adaptability:

Spontaneity:Coping:

employee responseto service delivery

system failure

employee responseto customer needs

and requests

employee responseto problem customers

unprompted andunsolicited employeeactions and attitudes

Page 35: The Gap Model of Service Quality

Evidence of Service from theCustomer’s Point of View

People

Process PhysicalEvidence

Contact employees Customer him/herself Other customers

Operational flow of activities

Steps in process

Flexibility vs. standard

Technology vs. human

Tangible communication

Servicescape

Guarantees

Technology

Website

Page 36: The Gap Model of Service Quality

Understanding Customer Requirement

Provider Gap 1

Page 37: The Gap Model of Service Quality

Gaps Model of Service QualityGaps Model of Service Quality

PerceivedService

Expected Service

CUSTOMER

COMPANY

CustomerGap

Gap 1

Gap 2

Gap 3

External Communications

to CustomersGap 4ServiceDelivery

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Page 38: The Gap Model of Service Quality

Provider Gap 1

Company Perceptions of Consumer Expectations

Expected Service

CUSTOMER

COMPANYListening

Gap

Page 39: The Gap Model of Service Quality

How to close the Gap 1?

Listen to customers through research.

Cover company strategy to retain and strengthen the relationship.

Service recovery.

Page 40: The Gap Model of Service Quality

Listening to customers through research

By formal and informal method. Surveys. Critical incident studies. Complaint solicitation.

Page 41: The Gap Model of Service Quality

Objectives

To identify dissatisfied customers. To discover customer requirements or

expectations. To monitor and track service performance. To assess overall company performance

compared to competition. To assess gaps between customer

expectations and perceptions. To appraise service performance of

individuals and teams for rewards. To determine expectations for a new

service. To monitor changing expectations in an

industry. To forecast future expectations.

Page 42: The Gap Model of Service Quality

Stages in research finding

Stage 1 : Define ProblemStage 2 : Develop Measurement

StrategyStage 3 : Implement Research

ProgramStage 4 : Collect and Tabulate

DataStage 5 : Interpret and Analyze

FindingsStage 6 : Report Findings

Page 43: The Gap Model of Service Quality

Service Quality Perceptions Relative to Zones of Tolerance by Dimensions

Retail Chain

9

8

7

6

5

4

3

2

1

0Reliability Responsiveness Assurance Empathy Tangibles

OO OO

Zone of Tolerance S.Q. Perception

O

O

Page 44: The Gap Model of Service Quality

Importance/Performance Matrix

HIGH

HIGH

LOWPerformance

Imp

ort

an

ce

Attributes to Improve Attributes to Maintain

HighLeverage

Attributes to De-emphasize

Attributes to Maintain

LowLeverage

Page 45: The Gap Model of Service Quality

Building Customer Relationship

Page 46: The Gap Model of Service Quality

The Evolution of CustomerRelationship

Strangers

Acquaintances

Friends

Partners

Page 47: The Gap Model of Service Quality

Customer Goals of Relationship Marketing

Acquiring

Satisfying

Retaining

Enhancing

Page 48: The Gap Model of Service Quality

Platinum

Gold

Iron

Lead

Most Profitable Customers

Least Profitable Customers

The Customer PyramidWhat segment spends more with us over time, costs less to maintain, and spread positive word of mouth?

What segment costs us in time, effort, and money yet does not provide the return we want? What segment is difficult to do business with?

Page 49: The Gap Model of Service Quality

Excellent

Serviceand

Value

I. Financial Bonds

II. Social Bonds

IV. Structural Bonds

III. Customization

Bonds

Volume and Frequency Rewards

Bundling and Cross Selling

Stable Pricing

Social Bonds Among Customers

Personal Relationships

Continuous Relationships

Customer Intimacy

Mass Customization

Anticipation/ Innovation

SharedProcesses and Equipment

Joint Investments

Integrated Information Systems

Levels of Relationship Strategies

Page 50: The Gap Model of Service Quality

Relationship Challenges

The Customer is not always right

The Wrong Segment

Not Profitable in Long Term

Difficult Customers

Page 51: The Gap Model of Service Quality

Service Recovery

Page 52: The Gap Model of Service Quality

Expressing Dissatisfaction

Service Failure

Do NothingTake Action

Stay with ProviderSwitch Providers

Complain to Provider

Complain to Family & Friends

Complain to Third Party

Stay with ProviderSwitch Providers

Page 53: The Gap Model of Service Quality

Service Recovery Strategies

Learn from

Recovery Experiences Treat C

ustom

ers F

airly

Learn

from

Lost

Cu

sto

mers

Welcome and Encourage

Complaints

Fail

Safe th

e Serv

iceA

ct

Qu

ickly

Service Recovery Strategies

Page 54: The Gap Model of Service Quality

Provider Gap 2Service Development and Design

Page 55: The Gap Model of Service Quality

Gaps Model of Service QualityGaps Model of Service Quality

PerceivedService

Expected Service

CUSTOMER

COMPANY

CustomerGap

Gap 1

Gap 2

Gap 3

External Communications

to CustomersGap 4ServiceDelivery

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Page 56: The Gap Model of Service Quality

Risks in Service description through words alone

Oversimplification

Incompleteness

Subjectivity

Biased Interpretation

Page 57: The Gap Model of Service Quality

• Service design and testing• Process and system design and testing• Marketing program design and testing• Personnel training• Service testing and pilot run• Test marketing

People

Technology Systems

Services

Full Launch Development

Design Analysis

Org

aniz

atio

nal

Con

text Team

s

Tools

Enablers

• Formulation of new services objective / strategy• Idea generation and screening• Concept development and testing

• Business analysis• Project authorization

• Full-scale launch• Post-launch review

Page 58: The Gap Model of Service Quality

Types Of New Services

Radical Innovations - Major Innovation. Example: amazon.com.

Start-up Business: new service for existing market. Example: online banking.

New Services for the Market Presently Served: new services to customers of an organization. Example: health club offering nutrition classes.

Page 59: The Gap Model of Service Quality

Types Of New Services

Service Line Extensions: augmentation of existing service line. Example: Airline offering new routes.

Service Improvements: changes in features of currently offered service. Example: Trains.

Style Changes: modest visible changes in appearances. Example: Videocon.

Page 60: The Gap Model of Service Quality

Service Blueprinting

A service blueprint is a picture or a map that accurately portrays the service system so that the different people involved in providing it can understand and deal with it objectively regardless of their roles or their individual point of view.

Page 61: The Gap Model of Service Quality

Process

Points Of

Contacts

Evidence

Service Bluepri

nt

Page 62: The Gap Model of Service Quality

SU

PPO

RT P

RO

CESS

CO

NTA

CT P

ER

SO

N

(Back

Sta

ge)

(On S

tage)

CU

STO

MER

HotelExteriorParking

Cart for Bags

DeskRegistrationPapersLobbyKey

ElevatorsHallwaysRoom

Cart for Bags

RoomAmenitiesBath

Menu DeliveryTrayFoodAppearance

Food

BillDeskLobbyHotelExteriorParking

Arriveat

Hotel

Give Bagsto

BellpersonCheck in

Go toRoom

ReceiveBags

SleepShower

CallRoom

Service

ReceiveFood

EatCheck out

andLeave

Greet andTakeBags

ProcessRegistration

DeliverBags

DeliverFood

ProcessCheck Out

Take Bagsto Room

TakeFoodOrder

RegistrationSystem

PrepareFood

RegistrationSystem

PH

YSIC

AL

EV

IDEN

CE

Page 63: The Gap Model of Service Quality

Building a Blueprint

Add evidence

of service at each customer action

step

Link contact

activities to

needed support

functions

Map contact employe

e’s actions, onstage

and backstage, and/or technolo

gy actions

Map the process

from customer’s point of view

Identify the

customer or the custome

r segment

Identify the

process to be

blueprinted

Page 64: The Gap Model of Service Quality

Customer Defined Service Standard

Page 65: The Gap Model of Service Quality

1. Identify Existing or Desired Service Encounter Sequence

2. Translate Customer Expectations Into Behaviors/Actions

4. Set Hard or Soft Standards

5. Develop FeedbackMechanisms

5. Develop FeedbackMechanisms

7. Track Measures Against Standards

Measure byAudits or

Operating DataHard Soft

Measure byTransaction-

Based Surveys

3. Select Behaviors/Actions for Standards

6. Establish Measures and Target Levels

8. Update Target Levels and Measures

Page 66: The Gap Model of Service Quality

Physical Evidence and the Servicescape

Page 67: The Gap Model of Service Quality

Elements of Servicescape

Servicescape Other Tangibles

Facility Exterior Business Cards

• Exterior Design • Stationery

• Signage • Billing Statements

• Parking • Reports

• Landscape • Employee Dress

• Surrounding Environment • Uniforms

• Brochures

Facility Interior • Internet/ Web Pages

• Interior Design

• Equipment

• Signage

• Layout

• Air/ Quality Temperature

Page 68: The Gap Model of Service Quality

Provider Gap 3Delivering and Performing Service

Page 69: The Gap Model of Service Quality

Gaps Model of Service QualityGaps Model of Service Quality

PerceivedService

Expected Service

CUSTOMER

COMPANY

CustomerGap

Gap 1

Gap 2

Gap 3

External Communications

to CustomersGap 4

ServiceDelivery

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Page 70: The Gap Model of Service Quality

Employees’ Roles In Service Delivery.

Page 71: The Gap Model of Service Quality

Service Employees

Who are they? “boundary spanners”

What are these jobs like? emotional labor many sources of potential conflict

▪ person/role▪ organization/client▪ interclient▪ quality/productivity

Page 72: The Gap Model of Service Quality

Boundary Spanners Interact with Both Internal and External Constituents

Internal Environment

External Environment

Page 73: The Gap Model of Service Quality

Sources of Conflict for Boundary-Spanning Workers

• Person vs. Role

• Organization vs. Client

• Client vs. Client

• Quality vs. Productivity

Page 74: The Gap Model of Service Quality

Figure 11-5 Human Resource Strategies for Closing GAP 3

Customer-oriented Service Delivery

Hire theRight People

ProvideNeeded Support

Systems

Retain theBest

People

DevelopPeople toDeliverServiceQuality

Compete

for

the B

est

People

Hire for Service

Competencies and Service

Inclination

Provide Supportive Technology

and Equipment

Treat

Em

plo

yee

s a

s

Cu

sto

mer

s

Em

pow

er

Em

plo

yees

Be the

Preferred

Employer Train

for

Technical

and

Interactive

Skills

Prom

ote

Team

wor

k

Measure

Intern

al

Service

Quality

Develop Service-

oriented Internal

Processes

Measu

re

and R

ew

ard

Str

ong

Serv

ice

Pro

viders

Inclu

de

Em

plo

yees

in th

e

Com

pany’s

Visio

n

Page 75: The Gap Model of Service Quality

Customers’ Roles In Service Delivery.

Page 76: The Gap Model of Service Quality

Importance of Other Customers in Service Delivery

Other customers can detract from satisfaction

▪ disruptive behaviors▪ excessive crowding▪ incompatible needs

Other customers can enhance satisfaction

▪ mere presence▪ socialization/friendships▪ roles: assistants, teachers, supporters

Page 77: The Gap Model of Service Quality

How Customers Widen Gap 3

Lack of understanding of their roles Not being willing or able to perform their

roles No rewards for “good performance” Interfering with other customers Incompatible market segments

Page 78: The Gap Model of Service Quality

Define Customer’s Jobs• Clarify level of participation• Indentify specific roles• Understand implications for productivity & quality

Recruit, Educate & Reward Customers• Identify & recruit appropriate segment• Educate customers for their roles• Provide reasons to participate• Reward customer performance

Define Customer’s Jobs• Clarify level of participation• Indentify specific roles• Understand implications for productivity & quality

Effective Customer

Participation

Strategies for Enhancing Customer Participation

Page 79: The Gap Model of Service Quality

Delivering Service Through Intermediaries

Page 80: The Gap Model of Service Quality

Management and demand capacity

Page 81: The Gap Model of Service Quality

Strategies for Shifting Demand to Match Capacity

Use signage to communicate busy days and times

Offer incentives to customers for usage during non-peak times

Take care of loyal or regular customers first

Advertise peak usage times and benefits of non-peak use

Charge full price for the service--no discounts

• Use sales and advertising to increase business from current market segments

• Modify the service offering to appeal to new market segments

• Offer discounts or price reductions

• Modify hours of operation• Bring the service to the

customer

Demand Too High Demand Too LowShift Demand

Page 82: The Gap Model of Service Quality

Strategies for Adjusting Capacity to Match Demand

Stretch time, labor, facilities and equipment

Cross-train employees Hire part-time employees Request overtime work from

employees Rent or share facilities Rent or share equipment Subcontract or outsource activities

• Perform maintenance renovations

• Schedule vacations• Schedule employee training• Lay off employees

Demand Too High Demand Too LowAdjust Capacity

Page 83: The Gap Model of Service Quality

Services Marketing Communication Mix & Communication Strategies

Provider GAP 4

Page 84: The Gap Model of Service Quality

Gaps Model of Service QualityGaps Model of Service Quality

PerceivedService

Expected Service

CUSTOMER

COMPANY

CustomerGap

Gap 1

Gap 2

Gap 3

External Communications

to Customers

Gap 4

ServiceDelivery

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Page 85: The Gap Model of Service Quality

Need for coordination in marketing communication

A number of media sources are used for service marketing communication.

Need is to ensure that customers receive unified & consistent messages & promises.

Page 86: The Gap Model of Service Quality

Communications and the Services Marketing Triangle

Internal Marketing Vertical Communications

Horizontal Communications

Interactive Marketing Personal Selling

Customer Service Center Service Encounters

Services capes

External Marketing

Communication Advertising Sales Promotion Public Relations

Direct Marketing

Company

CustomersEmployees

Page 87: The Gap Model of Service Quality

ManageService Promises

Approaches for Integrating Services Marketing Communication

Goal:Delivery

greater than or equal to promises

Improve CustomerEducation

ManageCustomer

Expectations

ManageInternal

MarketingCommunication

Page 88: The Gap Model of Service Quality

Reasons for service communication challenges

Discrepancies b/w service delivery & external communications in the form of exaggerated promises & the absence of information about service delivery aspects intended to serve customers well can powerfully affect consumer perceptions of service quality.

Page 89: The Gap Model of Service Quality

Inadequate management of service promises.

Inadequate management of customer expectations.

Inadequate customer education. Inadequate internal marketing

communications.

Page 90: The Gap Model of Service Quality

Categories of strategies to match service promises with delivery

Approaches for Managing Service Promises

Goal:Delivery

greater than or equal to promises

OfferService

Guarantees

Create EffectiveServices

Communications

Coordinate External

Communication

MakeRealisticPromises

MANAGING SERVICE PROMISES

Page 91: The Gap Model of Service Quality

Create Tiered-ValueOfferings

NegotiateUnrealistic

Expectations

Offer Choices

Approaches forManaging Customer Expectations

Goal:Delivery

greater than or equal to promises

Communicate Criteria for Service Effectiveness

Page 92: The Gap Model of Service Quality

MANAGE INTERNAL MARKETING COMMUNICATION

Create effective vertical communication.

Create effective horizontal communication.

Align back office & support personnel with external customers.

Create cross functional teams.

Page 93: The Gap Model of Service Quality

Goal:Delivery

greater than or equal to promises

Create EffectiveVertical

Communications

Align Back Office Personnel

w/ External Customers

Create EffectiveHorizontal

Communications

Approaches for ManagingInternal Marketing Communications

CreateCross-Functional

Teams

Page 94: The Gap Model of Service Quality

Source: http://www.newdhl.com/advertising.asp?cid=dhlbt1hmpg1

DHL’s Integrated Marketing Campaign

Page 95: The Gap Model of Service Quality

DHL’s Outdoor Advertising

Page 96: The Gap Model of Service Quality

DHL’s Print Advertising

Page 97: The Gap Model of Service Quality
Page 98: The Gap Model of Service Quality

INDIAN LOGISTICS INDUSTRY : AN OVERVIEW

• Fastest growing industry.

• Dominated by unorganized market.

• Logistics cost is over 13% of GDP.

Page 99: The Gap Model of Service Quality

GATI – Ahead In Reach

Among the top 5 players in the country.

Best domestic logistics company award.

Network reaches up to 580 districts out of 590 districts.

International operations.

Page 100: The Gap Model of Service Quality

Customer needs &expectations

Management definitionOf these needs

Translation into design/Delivery specs

Execution of design/delivery specs

Advertising & sales promises

Customer perceptions of product execution

Customer interpretation of communication

Customer experience relative to expectations

CUSTOMER

Knowledge Gap (1)

Standard Gap (2)

Delivery Gap (3)

Internal Communication Gap (4)

Perception Gap (5) Interpretation Gap (6)

Service Gap (7)

(4)

SERVICE

GA P

MODEL

Page 101: The Gap Model of Service Quality

Key Factors Leading to

KNOWLEDGE

GAP

Customer needs & Expectations

Management definition of these needs

Improper field level Information.

Business Intelligence not available for decision making at all levels.

Least attention paid to small customers.

GATI’S SOLUTION:

Customer’s information is collected through feedback forms.

Appointment of executives to cater all types of customers.

Page 102: The Gap Model of Service Quality

Key Factors Leading to Standard Gap

STANDARD

GAP

Translation into Design

No proper service design for customers.

Fluctuation in fuel prices.

No Insurance for goods.

Improper allocation of funds.

GATI’S SOLUTION:

Sharing the burden of increasing fuel prices.

Insurance for goods.

Management definition of these needs

Page 103: The Gap Model of Service Quality

Key Factors Leading to Delivery Gap

DELIVERY

GAP

Execution of Design

Poor employee-technology job fit.

Delay in delivering the service.

Over pricing to match demand.

GATI’S SOLUTION:

Employees are properly trained.

Promptness in delivery.

Translation into Design

Page 104: The Gap Model of Service Quality

Key Factors Leading to Communication Gap

COMMUNICATION

GAP

Execution of Design

Improper horizontal communication.

Customer enquiry constraints. Absence of strong internal marketing.

Lack of adequate education for customer.

GATI’S SOLUTION:

Toll Free Number available to provide information to the customers.

Gati.net.

Advertising And Sales Promises

Page 105: The Gap Model of Service Quality

Key Factors Leading to Perception Gap

PERCEPTION

GAP

Execution of Design

Indifferent attitude towards customers.

Improper design leading to negative perception.

Improper information transparency to their supply chain partners to maintain competitiveness.

GATI’S SOLUTION:

Should have a positive attitude towards the customer.

Proper market research to change design accordingly.

Customer Perceptions of product execution

Page 106: The Gap Model of Service Quality

Key Factors Leading to Interpretation Gap

INTERPRETATION

GAP

Advertising And Sales Promises

Overpromise, under delivery.

Main customers - Corporate customers. Hence interpretation of a local customer varies differently.

GATI’S SOLUTION:

Should focus on B to C advertising apart from B to B advertising.

Provide services as promised .

Customer interpretation of communication

Page 107: The Gap Model of Service Quality

Key Factors Leading to Service Gap

SERVICE

GAP

Customer perceptionsOf product execution

Value added services.

Ware housing facility.

Reverse logistics.

GATI’S SOLUTION:

Started giving value added services in some areas.

Customer Interpretation of communications

Customer experienceRelative to expectations

Page 108: The Gap Model of Service Quality

SERVICE RECOVERY

Poor service recovery in the logistics industry.

Effects customer loyalty.

It should be Pro-active, Planned, Trained & Empowered

GATI : SERVICE RECOVERY PARADOX

Undertaking Service Recovery Seriously.

Page 109: The Gap Model of Service Quality

Thank You…