Definition

A services is a act or performance offered by one party to another. Although the process may be tied to a physical product , the performance is transitory , often intangible in nature & does not normally result in ownership of any of the factors of production. Services can be described as something that can bought & sold but which can not be dropped on your foot.

Characteristics of services
Intangibilit y
It cannot be seen ,tested, felt, heard or smelled before purchase Variabilit

Inseparabili ty
It cannot be separated from its provider

y
Quality of service depends on who provides

Perishabili ty
Can not be stored for later sale

The Gaps Model of Service Quality(SERVQUAL)

SERVQUAL model is framework for understanding & improving service delivery

The key concepts, strategies and decisions in services marketing are extracted on the basis of a conceptual model called The Gaps Model of service quality.
The gaps model of service quality serves as a framework for service organizations attempting to improve quality service.

SERVQUAL Model
Word -of-mouth communications Customer Personal needs Past experience Expected service

GAP 5

Perceived service

Service delivery (including pre- and post-contacts)

External communications to consumers

GAP 1

GAP 3Translation of perceptions into GAP 4

service quality specifications

Provide r

GAP 2 Management perceptions of

consumer expectations

Two broad types of gaps are shown there. These include the customer gap and the provider gap. The Customer Gap The customer gap is the difference between customer expectations and perceptions. Expectations are the reference points customers have come into the service experiences. Perceptions reflect the service actually received. The Provider Gap The provider gaps are the underlying causes behind the customer gap. Four types of provider gap are there.

Expected service

Custome r gap Perceived Service

The Provider Gap

There are 4 provider gaps Gap1: Not knowing what customers expect:
The providing firm may lack accurate understanding of exactly what customers expectations are. That is a gap may exists between company perceptions of customers expectations and what customers actually expect.

Provider gap 01
Customer Expectations
In adequate marketing research orientation Lac of upward communication Insufficient relationship focus Inadequate service recovery

Company perceptions of customer expectations

Provider gap
Gap 2: Not selecting /having the right service quality designs and standards: Even is a firm does clearly understanding of its customers expectations, still its understanding may not be translated into customer driven service designs and standards.

Provider gap 02

Customer-driven service designs & standards

Poor service design Absence of customer-driven standards Inappropriate Physical evidence & servicescape

Management perceptions of customer expectations

Provider gap
Gap 3: Not delivering to service designs & standards: Once service designs and standards are in the place, the firm is likely to deliver high quality services. But the systems, people and process may not ensure that service delivery actually matches the designs and standards.

Provider gap 03
Customer-driven service designs & standards

Deficiencies in human resource policies

Customer who do not fulfill roles Failure to match supply & demand

Service delivery

Provider gap
Gap 4: Not promises: matching performances to

With everything in place to effectively meet customer expectations, the firm must ensure that what is promised to customers matches what is delivered.

Provider gap 04
Service delivery

Lack of integrated services marketing communications Ineffective management of customer satisfaction Overpromising Inadequate horizontal communications

External communications to customers

Prescriptions for closing the Gap 1:

Learn what customers expect

Closing gap 1
1.Understand customer expectations through research , complaint analysis ,customer panels etc. 2.Increase direct interactions between managers & customers to improve understanding 3.Improve upward communication from contact personnel to management 4.Turn information & insights into action

Prescriptions for closing the Gap 2:

Establish the right service quality standards

Closing gap 2
1.Set, communicate & reinforce customer oriented service standards for all work units 2.Clarify which job tasks have the biggest impact on quality & should receive the highest priority 3.Train managers in the skills needed to lead employees to deliver quality service 4.Reward managers & employees for attaining quality goals

Prescriptions for closing the Gap 3:

Ensure That Service Performance Meets Standards

Closing Gap3
1.Ensure that all employees understand how their jobs contribute to customer satisfaction 2.Provide employees with the technical training needed to perform their assigned tasks effectively 3.Enhance performance by selecting the most appropriate & reliable technology & equipment 4.Teach employees about customer expectations, perceptions & problems 5.Empower managers & employees in the field by pushing decision-making power down the organization; allow them greater discretion in the methods they use to reach goals

Prescriptions for closing the Gap 4:

Ensure that communication promises are realistic

Closing Gap 4
1.Seek inputs from operational personnel when new advertising programs are being created 2.Allow service providers to preview advertisements before customers exposed to them 3.Develop internal educational, motivational & advertising campaigns to strengthen links among marketing, operations & human resource departments 4.Offer customers different levels of service at different prices, explaining the distinctions