Chapter 11 GAPS MODEL OF SERVICE QUALITY The customer gap: The central focus of this model.

. The difference between customer expectation and perception. Expectations are reference point customers have coming in to the service experience. Perceptions reflect the service as actually received. To close this all-important customer gap, the model suggests that four other gaps need to be closed. The provider gaps (causes behind the customer gap) Gap 1: Not knowing what customer expects A gap exists between company perception of customer expectations and what customer actually expects. Gap 2: Not selecting the right service designs and standards Even if a firm does clearly understand its customers expectations, there still may be problems if that understanding is not translated into customer-driven service design and standard. Gap 3: Not delivering to service standard. There must be systems, process, and people in place to ensure that service delivery actually matches (or is even better than) the designs and standard in place.

Chapter 11 (Service Marketing)

Gap 4: Not matching performance as promises. With everything in place to effectively meet or exceed customer expectation, the firm must ensure that what is promised to customers matches what is delivered. Even when customer expectations are well understood (gap 1) And services have been designed and specified to conform to those expectations (gap 2), There may still be discontinuities in service quality when the service is not delivered as specified (gap 3). The failure to deliver services as designed and specified can result from a number of employee and human performance factors: Ineffective recruitment of service oriented employees Role ambiguity and role conflict among contact employees Poor employee-technology-job fit Inappropriate evaluation and compensation systems Lack of empowerment, perceived control and teamwork.

Chapter 11 (Service Marketing)

The critical importance of service employee The People element of the marketing mix, as all of the human actors who play a part in service delivery and thus influence the buyers perceptions: the firms personnel, the customer, and other customers in the service environment. They are the service In many cases, the contact employee is the service. The offering is the employee. Thus investing in the employee to improve the service parallels making a direct investment in the improvement of a manufactured product. They are the organization in the customers eyes Even if the contact employee doesnt perform the service entirely, she or he may still personify the firm in the customers eyes. They are the brand Even off-duty employees reflect on the organizations they represent. They are marketers Because contact employees represent the organization and can directly influence customer satisfaction, they perform the role of marketers. They physically embody the product and are walking billboards from a promotional standpoint.

Chapter 11 (Service Marketing)

THE SERVICE TRIANGLE It shows the three interlinked groups that work together to develop, promote, and deliver services. Figure 11.2 On the right side of the triangle are the external marketing efforts that the firm engages in to set up its customers expectations and make promises to customers regarding what is to be delivered. Interactive or real-time marketing is the one where promises are kept or broken by the firms employees, subcontractors or agents. Internal marketing consists of activities that management engages in to aid the providers in their ability to deliver on the service promise: recruiting, training, motivating, rewarding and providing equipment and technology. All three sides of the triangle are essential to complete the whole and the sides of the triangle should be aligned. EMPLOYEE SATISFACTION, CUSTOMER SATISFACTION, AND PROFITS There is concrete evidence that satisfied employees make for satisfied customers. Unless service employees are satisfied in their jobs, customer satisfaction will be difficult to achieve. Both a climate for service and a climate for employee well being are highly correlated with overall customer perceptions of service quality. Employees who fell they are treated fairly by the organization will treat customers better, resulting in greater customer satisfaction.

Chapter 11 (Service Marketing)

 The service profit chain suggests that there are critical linkages among internal service quality; employee satisfaction/productivity; the value of services provided to the customer; and ultimately customer satisfaction, retention and profit. Figure 11.3 The model does not suggest causality that is employee satisfaction does not cause customer satisfaction; rather the two are interrelated and feed off each other. Service quality dimensions are driven by employee behaviors Delivering the service as promised reliability is often totally within the control of front line employees. When services fail or errors are made, employees are essential for setting things right and using their judgment to determine the best course of action for service recovery. Front-line employees directly influence customer perceptions of responsiveness through their personal willingness to help and their promptness in serving customers. The assurance dimension of service quality is highly dependent on employees ability to communicate their credibility and to inspire trust and confidence. For startup or relatively unknown organizations, credibility, trust and confidence will be tied totally to employee actions. Empathy implies that employees will pay attention, listen, adapt, and be flexible in delivering what individual customers need. Employee appearance and dress are important aspects of the tangibles dimension of quality along with many other factors that are independent of service employees (the service facility, dcor, brochures, signage and so on).

Chapter 11 (Service Marketing)

Boundary spanning roles The front line service employees are referred to as boundary spanners because they operate at the organizations boundary. Figure 11.4 Boundary spanners provide a link between the external customer and environment and the internal operations of the organization. They serve a critical function in understanding, filtering, and interpreting information and resources to and from the organization and its external constituencies. In some industries, they are the least skilled, lowest paid employees in the organization. In other industries, they are well paid, highly educated professionals. In addition to mental and physical skill, this position requires extraordinary level of emotional labor, frequently demand an ability to handle interpersonal and interorganizational conflict. Emotional labor The labor that goes beyond the physical or mental skills needed to deliver quality service. It means delivering smiles, making eye contact, showing sincere interests, and engaging in friendly conversation with people who are essentially strangers and who may or may not ever be seen again. A front line service employee who is having a bad day or isnt feeling just right is still expected to put on the face of the organization when dealing with customers. Strategies to deal with realities of emotional labor: carefully select people who can handle emotional stress Train employees needed skills (listening and problem solving)
Chapter 11 (Service Marketing)

 Teaching and giving coping abilities and strategies (via job rotation, scheduled breaks, teamwork etc.)

Chapter 11 (Service Marketing)