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Marketing of

Services
Service Quality-integrated Gaps Model of Service quality. Dimensions of service quality,
Prescriptions for closing service quality gaps.
Going back to basics….

What is Services ???


Service is

Berry define service as act, deeds, & performance.

AMA define service as activities, benefits or


satisfaction that are offered for sale, or provided
in connection with the sale of goods.
Performed
by People;
Machine;
People with
Machine

Services is
an Activity , Rendered by
Deed,
Performance
Services profit and
Non Profit
, Effort

Direct to
People and
Business
What is Quality???
Quality is
In the words of crosby:-Quality is conformance to
requirements

ASQC Define:- Quality is the totality of features and


characteristics of a product, or service that bear on it’s
ability to satisfy stated or implied needs.

Fully satisfy customer requirements at the lower cost .


Service Quality
An assessment of how well a delivered service conforms
to the client's expectations.
Service business operators often assess the service
quality provided to their customers in order to improve
their service, to quickly identify problems, and to better
assess client satisfaction.
Understanding Service Quality

Expected Service

Customer
Service Quality Customer Loyalty
Satisfaction

Perceived Service
Customer Satisfaction
Ensuring customer satisfaction
• Customer satisfaction is the individual customer’s perception of the performance
of the product or service in relation to his or her expectations.
• Customer satisfaction is a function of customer expectations.

Perceived Performance = Expectation = Satisfaction

Perceived Performance < Expectation = Dissatisfaction

Perceived Performance > Expectation = Consumer Delight


Satisfaction effect on consumer
will be
Positive Negative
• Loyalists : Completely satisfied • Mercenaries : Satisfied but have no real
loyalties with the company and who may
customers who keep purchasing defect at a lower price elsewhere or on
impulse
• Apostles : Delighted customers • Defectors : They feel neutral or merely
who provide word of mouth about the satisfied and are just as likely to stop doing
company to others business with the company
• Terrorists : They have had negative
experiences with the company and who
spread negative word of mouth
• Hostages : Unhappy customers who stay
with the company because of a monopolistic
environment or low prices and who are
difficult to deal with because of their
frequent complaints
Company’s aim should be to
• Create and Increase
 Loyalist and Apostles

• Decrease
 Defectors and Mercenaries try to satisfy them

• Avoid
 Terrorist and Hostages
Service Gap Models

Parsu' Parasuraman, Valarie Zeithaml and Len Berry


• Demonstrate that the gap model is a useful framework for
understanding service quality in an organization.
• Demonstrate that the most critical service quality gap to close is
the customer gap, the difference between customer expectations
and perceptions.
• Show that four gaps that occur in companies, which we call
provider gaps, are responsible for the customer gap.
• Identify the factors responsible for each of the four provider gaps.
The Customer Gap
Customer Expectations:
Standard/ reference point that the
Expected customer brings to the services
Service experience. It is what customers
belief should be delivered as idol
services

Customer Gap
Customer Perception:
Subjective assessment of a
service experience. Perceived
What customers feels after Service
comparing services with their
expectations

Difference between customer expectations and perceptions


What Key Factors
Can Lead to the
Customer Gap ???
Key Factors Leading to the
Customer Gap
Customer
Expectations

 Provider Gap 1: Not knowing what customers expect

Customer  Provider Gap 2: Not selecting the right service designs and standards
Gap
 Provider Gap 3: Not delivering to service standards

 Provider Gap 4: Not matching performance to promises

Customer
Perceptions
The Provider Gaps (Knowledge
Gap)
Gap 1 – The Listening Gap
• not knowing what customers expect

Gap 2 – The Design and Standards Gap


• not having the right service designs and standards

Gap 3 – The Performance Gap


• not delivering to service standards

Gap 4 – The Communication Gap


• not matching performance to promises
Provider Gap 1

CUSTOMER Expected
Service

Perceived
Service
Gap 1:
COMPANY The Listening/
Knowledge Gap

Company
Perceptions of
Consumer
Expectations
Key Factors Leading to Provider Gap 1:
Listening Gap
Putting Customer in a
Wish Mode
Dream your ideal IKEA Shopping Experience
• If all IKEA stores had been destroyed and that new ones had
to be designed from the scratch.
 How would the new stores look like?
 What would be the shopping experience be like?
 Customers were ask to draw the designs of their ideal IKEA stores
that would satisfy their needs

Few responses:-
“ I never feel disoriented because I always know exactly where I am
in relation to every department”
“If I am buying one item, all other items that go with it are nearby”
“shopping is a pleasant, relaxing experience”
Incorporating the
insights

• The company incorporated these expectations into the service


design for the store.

• Designers created a multistory octagonal building with an hall in


the center that formed a home base for shoppers, addressing their
concern about being able to find items easily.

• In keeping with another customer expectation, items were grouped


together with related products

• When shoppers were tired or hungry, they could go to the cafeteria-


style restaurant on the upper floor that served Swedish food.
As a Result…
• As a result
 IKEA had a highest rating in customer
satisfaction
 85% of customer rated it as “excellent” or very
good”
 And spent on an average more than an hour
longer in IKEA then any other store
Provider Gap 2

CUSTOMER

COMPANY
Customer-Driven
Service Designs
and Standards
Gap 2: The Design and
Standards Gap
Company
Perceptions of
Consumer
Expectations
To Avoid Provider’s Gap 2
It is important to clearly Design
Service without oversimplification,
incompleteness, subjectivity, and bias
Key Factors Leading to Provider Gap 2 :
The Service Design and Standards Gap
Provider Gap 3
CUSTOMER

COMPANY Service Delivery


Gap 3:The Performance Gap
Customer-Driven
Service Designs
and Standards
The company must have systems,
processes, and people in place to
insure right service delivery and
avoid Provider Gap 3
Key Factors Leading to Provider Gap 3:
The Service Performance Gap
Provider Gap 4
CUSTOMER

Gap 4: The Communication Gap


External
COMPANY Service Delivery Communications
to Customers
Key Factors Leading to Provider Gap 4:
The Communication Gap
Gaps Model of Service Quality
Consider the “Wish Mode” of IKEA.
Think about a service that you
receive regularly and put yourself in
the wish mode. How would you
change the service and the way it is
provided?