1. Improving Service Quality and Productivity
Chapter 14

2. Improving Service Quality
The GAP Model is: A Conceptual Tool to Identify and Correct Service Quality Problems

3. The Gaps Model of Service Quality
The gaps model is a useful framework for understanding service quality in an organization.
It demonstrate that the most critical service quality gap to close is the customer gap, the difference between customer expectations and perceptions.
The model shows four gaps that occur in companies, which we call provider gaps, are responsible for the customer gap.
It identifies the factors responsible for each of the four provider gaps.

4. The Gaps Model – Figure 14.3

5. Key Factors Leading to the Customer Gap
Customer Expectations
Customer
Perceptions
Gap

6. Key Factors Leading to Gap 1
Inadequate marketing research orientation
Lack of upward communication
Insufficient relationship focus
Inadequate service recovery

7. Key Factors Leading to Gap 2
Poor service design
Absence of customer-driven standards
Inappropriate physical evidence and servicescape

8. Key Factors Leading to Gap 3
Deficiencies in human resource policies
Customers who do not fulfill roles
Problems with service intermediaries
Failure to match supply and demand

9. Key Factors Leading to Gap 4
Lack of integrated services marketing communications
Over promising
Ineffective management of customer expectations
Inadequate horizontal communications

10. The Gaps Model – Figure 14.3

11. The Customer Gap – Gap 5 & 6

12. Handling Consumer Gaps

13. Learning from Customer Feedback

14. Customer Feedback Collection Tools
Total market surveys
Annual surveys
Transactional surveys
Service feedback cards
Mystery shopping
Unsolicited customer feedback
Focus group discussions
Service reviews

15. Evaluating Feedback Methods

16. Video – Mystery Shopper

17. Analysis, Reporting and Dissemination of Customer Feedback
Choosing the relevant feedback tools and collecting customer feedback is meaningless if the information is not passed back to the relevant parties to take action
Reporting system needs to deliver feedback to frontline staff, process owners, branch/department managers and top management
Three types of performance reports:
Monthly Service Performance Update
Quarterly Service Performance Review
Annual Service Performance Report

18. Customer-driven ways to Improve Service Productivity
Change timing of customer demand
By shifting demand away from peaks, managers can make better use of firm’s productive assets and provide better service
Encourage use of lower cost channels
Get customers to self-serve
Encourage customers to obtain information and buy from firm’s corporate Websites
Ask customers to use third parties
Delegate delivery of supplementary service elements to intermediary organizations

19. Productivity Improvements and Quality
Front-stage productivity enhancements are especially visible in high contact services
Some improvements only require passive acceptance, while others require customers to change behavior
Must consider impacts on customers and address customer resistance to changes
Backstage changes may impact customers
Keep track of proposed backstage changes, and prepare customers for them