Lecture 1 Flashcards
Five gaps to perceived service quality
Gap 1: companies perceptions of consumer expectations to expected service
Gap 2:company perception of consumers expectation to customer driven service designs and standards
Gap 3: Customer driven service designs and standards to service delivery
Gap 4: Service delivery to external communications to customers
Gap 5: Perceived service to expected service
Provider gap 1
Not knowing what customer expects
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
Key factors leading to gap 1
Inadequate marketing research orientation (insuficcient marketing research, research not focused on service quality, inadequate use of market research)
Lack of upward communication
(lack of interaction between management and customer, insufficient communication between contact employees and managers, too many layers between contact personnel and top management)
Insufficient relationship
(lack of market segementation, focus on transactions rather than relationships, focus on new customers rather than relationship customers)
Inadequate service recovery
Key factors leading to gap 2
Poor service design
(unsystematic new service development process, vague and undefined service design, failure to connect service design to service positioning)
Absence of customer-driven standards
(lack of customer -driven service standards, absence of process management to focus on customer requirements, absence of formal process for setting service quality goals)
Inappropriate physical evidence and servicescape
Key factor leading to gap 3
Deficiencies in human resource policies
(ineffective recruitment, role ambiguity and role conflict, poor employee-technology job fit, inappropriate evaluation and compensation systems, lack ofempowerment and teamwork)
Failure to match supply and demand
(failure to smooth peaks and valleys of demand, inappropriate customer mix and overreliance on price to smooth demand)
customers not fulfilling roles
(customers lack knowledge of their roles and responsibilities, customers negatively impact each other)
Problems with service intermediaries
(channel conflict over objectives and performance, channel conflict over costs and rewards, difficulty controlling quality and consistency, tension between empowerment and control)
Key factors leading to gap 4
Lack of integrated services marketing communications
(tendency to view each external communication as independent, not including interactive marekting in communications plan, absence of strong internal marketing program)
Ineffective management of customer expectations
(not managing customer expectations through all forms of communication, not adequately educating customers)
overpromising (in advertising etc.)
Inadequate horizontal communications
(insufficient comunication between sales and operations, insufficient communication between advertising and operations)
Definition of a service
A change in the condition of a person or of a good belonging to some economic unit which is brought about as a result of the activity of some other economic unit, with the prior agreement of the former person or economic unit.
Deeds processes and performances
Services process matrix:
Low degree of labor intensity and low degree of interatcion: Service factory (airlines, trucking or hotel)
Low degree of labor intensity and high degree of interatcion: service shop (Hospitals or auto repair)
high degree of labor intensity and low degree of interatcion: mass service (retailing wholesaling university)
high degree of labor intensity and high degree of interatcion: professional service (doctors, lawyers or accountants)
Challenges for managers:
Low interaction/customization
(marketing, attention to physical surroundings, standardization of operations)
Low labor intensity (capital decisions, technological advances, peaks)
High labor intensity (hiring, training, employee welfare)
High interaction/customization (fighting costs, maintainging quality, reacting to customer intervention
Differences between goods and services
Intangibility, heterogeneity (being diverse in quality or content), simultaneous production, perishability
Characteristics of services Intangible
Not possible to keep in stock, no patents, not visible and difficult pricing
Characteristics of services (perishable)
not possible to keep in stock
Restricted in time and place
