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SERVICES MARKETING SERVICES MARKETING Gaps Model of Gaps Model of Service Quality Service Quality

7 Sm Gaps Model

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Page 1: 7 Sm Gaps Model

SERVICES MARKETINGSERVICES MARKETING

Gaps Model ofGaps Model ofService QualityService Quality

Page 2: 7 Sm Gaps Model

The Gaps Model was proposed by

A Parasuraman, Valarie Zeithaml and

LL Berry in 1985 in the

Journal Of Marketing

Page 3: 7 Sm Gaps Model

Expected service

Perceived service

Service delivery

Customer drivenservice design &

standards

Company perceptions ofcustomer expectations

Externalcommunications

to customers

Customer

Serviceprovider

Gap 5

Gap 3

Gap 2

Gap 4Gap 1

Customer Gap

Page 4: 7 Sm Gaps Model

Gap 5

The difference between customer expectationsfrom the service

and customer perceptions ofthe delivered service.

Customer perceptions aresubjective assessments of service experiences.

Customer expectations are the standardsagainst which service experiences

are compared.

Page 5: 7 Sm Gaps Model

Gap 5

Customer expectations – from marketer controlled

factors as well as factors outside the control of the

marketer or service provider such as personal

needs, word of mouth and past experiences

The aim is to reduce Gap 5 by suitable strategic

and tactical actions in marketing, sales,

operations and communications

Unique characteristics of services – intangibility,

heterogeneity, inseparability & perishability

contribute to Gap 5

Page 6: 7 Sm Gaps Model

Provider Gap 1

The difference between customer

expectations of service standards &

quality

and

the service provider’s understanding of

these expectations

Page 7: 7 Sm Gaps Model

Expected service

Perceived service

Service delivery

Customer drivenservice design &

standards

Company perceptions ofcustomer expectations

Externalcommunications

to customers

Customer

Serviceprovider

Gap 5

Gap 3

Gap 2

Gap 4Gap 1

Customer Gap

Page 8: 7 Sm Gaps Model

Provider Gap 1 – Reasons

Inadequate marketing research, research not focussed on service quality, research findings not used properly

Lack of upward communication from customers & frontline employees, too many layers

Insufficient relationship focus, lack of market segmentation, focus on transactions & customer acquisition rather than on building relationships

Inadequate service recovery

Page 9: 7 Sm Gaps Model

Provider Gap 2

The difference between service provider’s

understanding of customer expectations

and

development of customer-driven

service design & standards

Page 10: 7 Sm Gaps Model

Expected service

Perceived service

Service delivery

Customer drivenservice design &

standards

Company perceptions ofcustomer expectations

Externalcommunications

to customers

Customer

Serviceprovider

Gap 5

Gap 3

Gap 2

Gap 4Gap 1

Customer Gap

Page 11: 7 Sm Gaps Model

Provider Gap 2 – Reasons

Poor / vague / undefined service design,

unsystematic new service development process,

failure to match service design to service positioning

Lack of customer defined standards, lack of focus on

customer requirements, absence of formal process

for setting service quality goals & standards

Lack of attention to physical evidence – the

servicescape – the packaging of the service

Page 12: 7 Sm Gaps Model

Provider Gap 3

The discrepancy between development of

customer-driven service standards

and

actual service delivery or performance

Page 13: 7 Sm Gaps Model

Expected service

Perceived service

Service delivery

Customer drivenservice design &

standards

Company perceptions ofcustomer expectations

Externalcommunications

to customers

Customer

Serviceprovider

Gap 5

Gap 3

Gap 2

Gap 4Gap 1

Customer Gap

Page 14: 7 Sm Gaps Model

Provider Gap 3 – Reasons

Deficiencies in HR policies – wrong recruitment, role

ambiguity / conflict, poor employee / technology fit,

evaluation / compensation schemes, empowerment etc

Supply demand gaps, over reliance on pricing strategies

to close gaps

Customers not fulfilling roles (ignorance?) or otherwise

From intermediaries – conflicts re objectives,

performance, rewards, empowerment, control etc

Page 15: 7 Sm Gaps Model

Provider Gap 4

The difference between service provider’s

external (marketing) communications

and

service delivery

Page 16: 7 Sm Gaps Model

Expected service

Perceived service

Service delivery

Customer drivenservice design &

standards

Company perceptions ofcustomer expectations

Externalcommunications

to customers

Customer

Serviceprovider

Gap 5

Gap 3

Gap 2

Gap 4Gap 1

Customer Gap

Page 17: 7 Sm Gaps Model

Provider Gap 4 – Reasons

Absence of integrated marketing communications, lack of interactive marketing in communications plan, inadequate internal marketing programme

Over promising – physical cues, personal contacts, advertising etc

Gaps in horizontal communications between sales, marketing and operations

Ineffective management of customer expectations

Page 18: 7 Sm Gaps Model

Current thinking: More Gaps

An extension of the Gaps Model has been put forward by Dr Arash Shahin.

Two more gaps have been proposed.

These centre around

“Employees’ Perceptions of Customers’

Expectations”

Page 19: 7 Sm Gaps Model

Gap 6

The discrepancy between customers’

expectations

and

employees’ perceptions of customers’

expectations

Page 20: 7 Sm Gaps Model

Gap 7

The discrepancy betweenemployees’ perceptions of customers’

expectationsand

management (or company) perceptions ofcustomers’ expectations

Page 21: 7 Sm Gaps Model

Expected service

Perceived service

Service delivery

Customer drivenservice design &

standards

Company perceptions ofcustomer expectations

Externalcommunications

to customers

Customer

Serviceprovider

Gap 5

Gap 3

Gap 2

Gap 4Gap 1

Customer Gap

Employee perceptions ofcustomer expectations

Gap 7

Gap 6