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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Conceptual Framework of the Book: The Gaps Model of Service Quality 2 2-2 Variations of the Gaps Model Five Service Quality Gaps Variations of the Gaps Model Six Service Quality Gaps Variations of the Gaps Model 13 Service Quality Gaps (Gaps Model gone wild) Chapter Conceptual Framework of the Book: The Gaps Model of Service Quality ? The Customer Gap ? (Sometimes referred to as Gap 5) 2 ? The Provider Gaps: ? Gap 1 – The Listening Gap ? not knowing what customers expect Gap 2 – The Service Design and Standards Gap ? not having the right service designs and standards ? Gap 3 – The Service Performance Gap ? not delivering to service standards ? Gap 4 – The Communication Gap ? not matching performance to promises ? Putting It All Together: Closing the Gaps 2-6 Chapter Conceptual Framework of the Book: The Gaps Model of Service Quality 2 • The Customer Gap Chapter 3 – Customer Expectations of Service Chapter 4 – Customer Perceptions of Service 2-7 Chapter Conceptual Framework of the Book: The Gaps Model of Service Quality 2 Gap 1 – Not Knowing What Customers Expect (The Knowledge Gap) Chapter 5 – Listening to Customers through Research Chapter 6 – Building Customer Relationships Chapter 7 – Service Recovery 2-8 Chapter Conceptual Framework of the Book: The Gaps Model of Service Quality 2 • Gap 2 – Not Having the Right Service Quality Designs and Standards (The Service Design and Standards Gap) Chapter 8 – Service Innovation and Design Chapter 9– Customer-Defined Service Standards Chapter 10 – Physical Evidence and the Servicescape 2-9 Chapter Conceptual Framework of the Book: The Gaps Model of Service Quality 2

Gap 3 – Not Delivering to Service Standards (The Service Performance Gap) Chapter 11 – Employees’ Roles in Service Delivery Chapter 12 – Customers’ Roles in Service Delivery Chapter 13 – Managing Demand and Capacity 2-10 Chapter Conceptual Framework of the Book: The Gaps Model of Service Quality 2 Gap 4 – Not Matching Performance to Promises (The Communication Gap) Chapter 14 – Integrated Service marketing Communications Chapter 15 – Pricing of Services 2-11 Objectives for Chapter 2: The Gaps Model of Service Quality ? Introduce the framework, called the gaps model of service quality, used to organize this textbook. Demonstrate that the gaps 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. 2-12 Gaps Model of Service Quality 2-13 The Customer Gap Think about a service you receive. Is there a gap between your expectations and perceptions of that service?

What do you expect that you do not receive? 2-14 Key Factors Leading to the Customer Gap Customer Gap Customer Expectations ? 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 2-15 Gaps Model of Service Quality ? Customer Gap: ? difference between customer expectations and perceptions ? Provider Gap 1 (Listening Gap): ? not knowing what customers expect ? Provider Gap 2 (Service Design & Standards Gap): not having the right service designs and standards ? Provider Gap 3 (Service Performance Gap): ? not delivering to service standards ? Provider Gap 4 (Communication Gap): ? not matching performance to promises 2-16 Provider Gap 1 CUSTOMER Customer expectations Perceived Service COMPANY Gap 1: The Listening Gap Company perceptions of customer expectations 2-17 Key Factors Leading to Provider Gap 1 2-18 Provider Gap 2 CUSTOMER COMPANY Customer-driven service designs and standards Gap 2: The Service Design and Standards Gap Company perceptions of customer expectations 2-19 Key Factors Leading to Provider Gap 2 2-20 Provider Gap 3 CUSTOMER

COMPANY Service delivery Customer-driven service designs and standards Gap 3: The Service Performance Gap 2-21 Key Factors Leading to Provider Gap 3 2-22 Provider Gap 4 CUSTOMER COMPANY Gap 4: The Communication Gap External Service delivery communications to customers 2-23 Key Factors Leading to Provider Gap 4 2-24 Gaps Model of Service Quality 2-25 Gaps Model of Service Quality 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? 2-26 Gaps Model of Service Quality Think about a service that you receive regularly and put yourself in the wish mode.

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How would you change the service and the way it is provided? • I wish my oil change service could be done at my home, or where I work, so that I would not have to drive to a specific location and wait in line. • I wish my dry cleaning service would pick up clothes from my home and deliver them to my home. • I wish my bank would allow me to make additional mortgage payments (or, student loan payments) online rather than having to physically go into the bank and execute a teller-assisted transaction. • I wish my gas station would check under the hood of my car like they used to do many years ago. -27 Gaps Model of Service Quality • If you were the manager of a service organization and wanted to apply the gaps model to improve service, which gap would you start with? • Why? • In what order would you proceed to close the gaps? 2-28 Gaps Model of Service Quality If you were the manager of a service organization and wanted to apply the gaps model to improve service, which gap would you start with? Why? In what order would you proceed to close the gaps? The most efficient way to use the gaps model is to begin with provider gap 1, determining what customer expectations are.

This allows the company to concentrate on the factors that will have the greatest impact on improving service quality. Following the gap 1 with gap 2, then gap 3 is the best progression. Gap 2 ideally would result in service design and service standards that are based on gap 1’s findings about customer expectations. Then gap 3, the most complicated gap to close, would be informed by what is found in the first two gaps. 2-29 Gaps Model of Service Quality • Can provider gap 4, the communication gap, be closed prior to closing any of the other three provider gaps? • How? 2-30 Gaps Model of Service Quality

Can provider gap 4, the communication gap, be closed prior to closing any of the other three provider gaps? How? Gap 4, which deals with lowering customer expectations, can be closed at any time. While the first three gaps are concerned with raising company performance to meet expectations, gap 4 aims to lower customer expectations to meet perceptions. The two approaches to closing the customer gap operate on different principles and therefore can occur independently. Incidentally, closing gap 4 can be more economical than closing the other gaps. 2-31 Gaps Model of Service Quality Which of the four provider gaps do you believe is hardest to close? • Why? 2-32 Gaps Model of Service Quality Which of the four provider gaps do you believe is hardest to close? Why? Gap 3 is the hardest to close because it requires coordination of all of the human resources issues in a company—training, incentives, communication, hiring, teamwork, and empowerment. Changing any one of these is difficult but changing them all, and getting them coordinated with each other, is extremely challenging. In addition to the employee factors that must be considered in closing gap 3, the customer must be managed. -33 DETERMINANTS OF PERCEIVED SERVICE QUALITY Ways to Use Gap Analysis ? Overall Strategic Assessment: ? How are we doing overall in meeting or exceeding customer expectations? ? How are we doing overall in closing the four company gaps? ? Which gaps represent our strengths and where are our weaknesses? 2-35 Ways to Use Gap Analysis ? Specific Service Implementation ? Who is the customer? What is the service? ? Are we consistently meeting/exceeding customer expectations with this service? ? If not, where are the gaps and what changes are needed? (Examine gaps 1-4 for this particular service. ) 2-36

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