1. GAPs Model of Service Quality (Service Management)
March 9, 2017

2. Thanks to Boston University Professor who has visited Donghua University (2004) provided parts of this PPT

3. Assignment
From your personal experience, to write three cases related with services: 1. An excellent service case, to show your perception in detail. 2. A poor service experience that you have met, and try to make an analysis to it. 3. One new service that you feel never meet before, describe its content and process and result with your personal comments.

4. Contents 1, Service Enhancement Manufacturing Enterprises
2,Gaps model of service quality
3, Customer service, satisfaction
4, Case of The Ritz-Carlton Hotel Company

5. Service Enhancement Manufacturing Enterprises1

6. Service Augmentation Core Product
14% of people switch because of dissatisfaction with product quality
66% of people switch because they found the sales people indifferent
or unhelpful

7. Service Enhancement Manufacturing Enterprises
Product Enhancement Service Enterprises
Service and product are closely related each other.
Augmentation

8. Service augmentation Augmentation means to increase something.
Eg: Augmentation of armament
Let customers feel better with the services, such as help, assistant, explain or information offered together with the products.

9. Customer Satisfaction
Perceived Performance = Expectations
Delight = Perceived Performance > Expectations
Disappointment = Perceived Performance < Expectations

10. GAPs Model of Service Quality
Its development and application
广东蔡纯孝，上海王方华，复旦龚一鸣，上大陈祝平

11. PZB
P- Parasuraman
Z- Zeithaml Prof. Duck University
B- Leonard Berry

12. The GAPS Model of Service Quality
Two kind of GAPs:
The customer gap;
the company gap
Five gaps:
Gap1: not knowing what customers expect
Gap2:Not selecting the right service designs and standards
Gap3:Not delivering to service standards
Gap4:Not matching performance to promises
Gap5: The difference between customer perceptions and Expectations

13. The GAPS Model of Service Quality
The customer Gap:
Customer perceptions are subjective assessments of actual service experiences.
Customer expectations are the standards of or reference points for performance against which service experiences are compared, and are often formulated in terms of what a customer believes should or will happen.

14. The key to closing the customer gap
The key to closing the customer gap is to close gaps 1 through 4 and keep them closed. Start by understanding customer expectations( provider gap1), establish customer-driven standards to address key priorities(provider gap2), and then align service performance with customer-driven standards(provide gap3), provider gap4, which involves matching promises with service performance, follows.

15. Key factors leading to the provider Gaps GAP1
1, Inadequate marketing research orientation
insufficient marketing research
research not focused on service quality
inadequate use of market research
The fail of Italian Shanghai Mart
Mr.Zhu’s experience

16. Key factors leading to the provider Gaps GAP1
2，lack of upward communication
lack of interaction between management and customers
insufficient communication between contact employees and managers
too many layers between contact personnel and top management

17. Key factors leading to the provider Gaps GAP1
3 Insufficient relationship focus
lack of market segmentation
focus on transactions rather than relationships
focus on new customers rather than relationship customers

18. Key factors leading to the provider Gaps GAP2
1 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

19. Key factors leading to the provider Gaps GAP2
2 Inadequate service leadership
Perception of in-feasibility
Inadequate management commitment
3 Poor service design
Unsystematic new service development process
Vague, undefined service design
Failure to connect service design to service positioning

20. Key factors leading to the provider Gaps GAP3
1 Deficiencies in human resource policies
Ineffective recruitment
Role ambiguity and role conflict
Poor employee-technology job fit
Inappropriate evaluation and compensation systems
Lack of empowerment, perceived control, and teamwork

21. Key factors leading to the provider Gaps GAP3
2 Failure to match supply and demand
Failure to smooth peaks and valleys of demand
Inappropriate customer mix
Over-reliance on price to smooth demand
3 Customers not fulfilling roles
Customers lacking knowledge of their roles and responsibilities
Customers negatively impacting each other

22. Key factors leading to the provider Gaps GAP4
1 Ineffective management of customer expectations
Failure to manage customer expectations through all forms of communication
Failure to educate customers adequately

23. Key factors leading to the provider Gaps GAP4
2 Over-promising
Over-promising in advertising
Over-promising in personal selling
Over-promising through physical evidence cues

24. Key factors leading to the provider Gaps GAP4
3 Insufficient communication between sales and operations
Insufficient communication between sales and operations
Insufficient communication between advertising and operations
Differences in policies and procedures across branches or units.

25. Gap 1 Does Management understand what consumers want?
Service Quality
Consumer
Word of Mouth
Personal needs
Past Experience
Communications
Expected Service
Gap 5
Perceived Service
Marketer
Service Delivery
Gap 4
External
(including pre/post contacts)
Communications
to Consumers
Gap 3
Gap 1
Translation of Perceptions
into Service Quality Specifications
Gap 2
Management Perceptions of
Consumer Expectations
Zeithaml
et al 1990
Gap 1 Does Management understand what consumers want?
Gap 2 Does management set service quality standards to deliver
what customers expect?
Gap 3 Do employees deliver to management’s standards?
Gap 4 Do advertising and other external communications
realistically portray the service delivered to the customer?
Gap Do your customers get what they expect?

26. Marketing Research Orientation Gap 1
Upward Communication
Does management understand what consumers want?
Levels of Management
Management Commitment to
Service Quality
Does management set service quality standards to deliver what customers expect?
Goal Setting
Tangibles
Gap 2
Task Standardization
Reliability
Perception of Feasibility
Do your customers get what they expect?
Gap 5
(Service
Quality)
Responsiveness
Teamwork
Employee-Job Fit
Assurance
Technology-Job Fit
Gap 3
Empathy
Perceived Control
Do employees deliver to management’s standards?
Supervisory Control Systems
Role Conflict
Do advertising and other external communications
realistically portray the service delivered to the customer?
Role Ambiguity
Horizontal Communication
Gap 4
Propensity to Overpromise

27. Customer Satsfaction

28. Service and Satisfaction

29. Objective of Customer Service is Customer Satisfaction

30. Operational Rule #1 for Customer Satisfaction
Do It Right The First Time
DIRFT

31. Quick recovery: Do it right the second time.
Operational Rule #2 for Customer Satisfaction
If not DIRFT, then DIRST.
Quick recovery: Do it right the second time.

32. Discussion
What specific examples can you give for the key factors responsible for gap 1?
What specific examples can you give for the key factors responsible for gap 2?
What specific examples can you give for the key factors responsible for gap 3?
What specific examples can you give for the key factors responsible for gap 4?

33. Excellent Case in Service Industry 优秀服务企业案例
The Ritz-Carlton Hotel Company

34. Malcolm Baldrige National Quality Award 1992 Winner The Ritz-Carlton Hotel Company
The Ritz-Carlton Hotel Company aims to succeed in one of the most logistically complex service businesses. Targeting primarily industry executives, meeting and corporate travel planners, and affluent travelers, the Atlanta-based company manages 25 luxury hotels that pursue the distinction of being the very best in each market. It does so on the strength of a comprehensive service quality program that is integrated into marketing and business objectives.

35. " to move heaven and earth" to satisfy customers
Hallmarks of the program include participatory executive leadership, thorough information gathering, coordinated planning and execution, and a trained workforce that is empowered "to move heaven and earth" to satisfy customers. Of these, committed employees rank as the most essential element. All are schooled in the company's "Gold Standards," which set out Ritz-Carlton's service credo and basics of premium service.

36. Leadership
Quality planning begins with President and Chief Operating Officer Horst Schulze and the other 13 senior executives who make up the corporate steering committee. This group, which doubles as the senior quality management team, meets weekly to review the quality of products and services, guest satisfaction, market growth and development, organizational indicators, profits, and competitive status. Each year, executives devote about one-fourth of their time to quality-related matters.

37. Research, System and Documentation
The company's business plan demonstrates the value it places on goals for quality products and services. Quality goals draw heavily on consumer requirements derived from extensive research by the travel industry and the company's customer reaction data, focus groups, and surveys. The plan relies upon a management system designed to avoid the variability of service delivery traditionally associated with hotels. Uniform processes are well defined and documented at all levels of the company.

38. Ritz-Carlton Gold Standards
Key product and service requirements of the travel consumer have been translated into Ritz-Carlton Gold Standards, which include a credo, motto, three steps of service, and 20 "Ritz-Carlton Basics." Each employee is expected to understand and adhere to these standards, which describe processes for solving problems guests may have as well as detailed grooming, housekeeping, and safety and efficiency standards. Company studies prove that this emphasis is on the mark, paying dividends to customers and, ultimately, to Ritz-Carlton.

39. "ladies and gentlemen serving ladies and gentlemen."
The corporate motto is "ladies and gentlemen serving ladies and gentlemen." To provide superior service, Ritz-Carlton trains employees with a thorough orientation, followed by on-the-job training, then job certification. Ritz-Carlton values are reinforced continuously by daily "line ups," frequent recognition for extraordinary achievement, and a performance appraisal based on expectations explained during the orientation, training, and certification processes.

40. Customer First
To ensure problems are resolved quickly, workers are required to act at first notice -- regardless of the type of problem or customer complaint. All employees are empowered to do whatever it takes to provide "instant pacification." No matter what their normal duties are, other employees must assist if aid is requested by a fellow worker who is responding to a guest's complaint or wish.

41. Ritz-Carlton Hotel
The company trains each of its employees to note guest likes and dislikes and record these into a computerized guest history profile.
Customer satisfaction 92-97%,
57 percent satisfaction rating for the nearest competitor.
Ritz-Carlton maintains a 10 percent performance gap over the next best competitor out of those hotels rated four or five stars by the Mobile Travel Guide.

42. Shanghai Auto Shop Case 上海雷克萨斯专卖店
一般满意和非常满意大不相同。
坐飞机送零件维修。
大水后，帮助从车库内拖出车辆。
高百分比的回头客。
高标准的卫生间。
没有购车，记住生日，送礼物，客人介绍自己的朋友购车。

43. Class Exercise
Please make a figure of GAPs model of service quality with a simple explanation.