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THE GAP MODEL OF

SERVICE QUALITY
Service Quality

 Quality of the service is the degree of


conformance of all the relevant features
and characteristics of service to all the
aspects of the consumers’ needs limited by
the price and delivery s/he will accept.

 Quality can be viewed from two perspectives:
Internal quality based on conformance to
specifications
External quality based on customer-perceived
quality
Importance Of Quality For
Service Marketers

Gain competitive advantage, maintain


loyalty
Increase value (may permit higher
margins)
Improve profits
The Gaps Model of Service
Quality
Gaps Model of Service Quality

Expected
Service
CUSTOMER
Customer
Gap
Perceived
Service

COMPANY Service External


Communications
Delivery Gap 4 to Customers
Gap 3
Gap 1 Customer-Driven
Service Designs and
Standards
Gap 2
Company Perceptions
of Consumer
Expectations
Gaps Model of Service
Quality
 Customer Gap:
 difference between customer expectations and
perceptions
 Provider Gap 1 (The Knowledge Gap):
 not knowing what customers expect, want, need
 Provider Gap 2 (The Service Design &
Standards Gap):
 not having the right service designs and
standards
 Provider Gap 3 (The Service Performance
Gap):
 not delivering to service standards
 Provider Gap 4 (The Communication Gap):
 not matching performance to promises
Not Knowing What Customers
Expect

Customer Expectations
Gap
1 •Inadequate marketing
research
orientation
•Lack of upward
communication
•Insufficient
relationship focus
•Inadequate service
Company Perceptions of
recovery
Customer Expectations
Not Selecting The Right Service
Designs And Standards
Customer-Driven Service
Designs and Standards

Gap
2 • Poor service design
• Absence of customer -
driven standards
• Inappropriate physical
evidence and services gap

Management Perceptions of
Customer Expectations
Not Delivering To Service Designs
And Standards
Customer-Driven Service
Designs and Standards

Gap •Deficiencies in human


3 resource
policies
•Customers who do not
fulfill roles
•Problems with service
intermediaries
• Failure to match supply
and
demand
Service Delivery
Not Matching Performance To
Promises
Service Delivery

•Lack of integrated services


Gap marketing communications .
4 •Ineffective management of
customer expectations .
•Overpromising .
•Inadequate horizontal
communications .

External Communications to
Customers
Focus on the consumer –
Customer Gap
Gaps Model of Service Quality

Expected Service

CUSTOMER
Customer
Gap

Perceived
Service
COMPANY

Service External
Communications
Gap 1 Delivery Gap 4 to Customers
Gap 3
Customer-Driven
Service Designs and
Standards
Gap 2
Company Perceptions
of Consumer
Expectations
 The central focus of the gaps model
is the customer gap, the difference
between customer expectations
and perceptions.
 Expectations are the reference
points customers have coming in to
a service experience.
 Perceptions reflect the service as
actually received.
How Consumers Evaluate
Goods and Services

Most goods Most services

Easy to Difficult to
evaluate evaluate
Restaurant meals

Medical diagnosis
Legal services
Automobiles
Jewelry

Television repair
Clothing

Houses
Furniture

Vacation

Auto repair
Child care

Root canal
Haircuts

High in search High in experience High in credence


properties properties properties
Consumer Choice
Customer Expectation
Of Service
HIGH

LOW
Dual customer expectations
levels and the Zone of
Tolerance
Desired Service

ZONE OF TOLERANCE

Adequate Service
Desired Service
Level Of
Expectation

ZONE OF TOLERANCE Desired Service

Adequate Service ZONE OF TOLERANCE

Adequate Service

Reliability Tangibles
Lasting Service Intensifiers

Desired Service

Personal
Needs

ZONE OF TOLERANCE

Adequate Service
Lasting Service Intensifiers
Desired Service

Personal
Needs

ZONE OF TOLERANCE
emporary Service Intensifiers

erceived Service Alternatives


Predicted Service
Adequate Service

Self Perceived Service Role

Situational Factors
Explicit Service Promises
Lasting Service Intensifiers
Desired Service
Implicit Service Promises
Personal
Needs
Word – Of –Mouth

ZONE OF TOLERANCE
emporary Service Intensifiers
Past Experience

erceived Service Alternatives


Predicted Service
Adequate Service

Self Perceived Service Role

Situational Factors
Customer Satisfaction

 Customer satisfaction,
a business term, is a measure of
how products and services supplied
by a company meet or surpass
customer expectation.
 It is seen as a key performance
indicator within business.
Customer Loyalty

 "Customer loyalty is when an


organization receives the ultimate
reward for the way it interacts with
its customers. “
 Although customer loyalty is often
achieved through offers, discount
coupons, rebates and other kinds
of rewards, long-term customer
loyalty can only be created by
making your customers feel that
Customer Satisfaction vs.
Customer Loyalty
 Customer satisfaction measures how
well a customer’s expectations are
met.

 Customer loyalty measures how
likely customers are to return and
their willingness to perform partner
shipping activities for the
organization.

 Customer satisfaction is a requisite
Quality and Customer
Satisfaction
What determines Customer
Satisfaction?
 Product/service features.
 Consumer emotions.
 Attributions for service success or
failure.
 Perceptions of equity or fairness.
 Other consumers, family members.
 Price.

Outcomes of Customer
Satisfaction
 Increased customer retention.
 Positive word-of-mouth
communications.
 Increased revenues.

Service Quality

 The customer’s judgment of overall


excellence of the service provided in
relation to the quality that was
expected.
 Service quality assessments are
formed on judgments of:
 outcome quality
 interaction quality
 physical environment quality

SERVQUAL
RELIABILITY

Attributes
■Providing service as promised
■Dependability in handling
customers ’ service problems
■Performing services right the EMPATHY
first time ■Giving customers individual attention
■Providing services at the promised
■Employees who deal with customers in a
time caring fashion
■Maintaining error - free records
■Having the customer ’ s best interest at
heart
RESPONSIVENESS ■Employees who understand the needs of
their customers
■Convenient business hours
■Keeping customers informed as to
when services will be performed
■Prompt service to customers TANGIBLES
■Willingness to help customers ■Modern equipment
■Readiness to respond to ■Visually appealing facilities
customers ’ requests ■Employees who have a neat ,
professional appearance
■Visually appealing materials
ASSURANCE associated with the service
■Employees who instill confidence in
customers
■Making customers feel safe in their
transactions
■Employees who are consistently
courteous
■Employees who have the knowledge to
answer customer questions
Dimensions of Service
Quality
 Reliability:
Delivering on promises.
• Example: receive mail at same
time each day.

 Responsiveness: Willingness to help
customers promptly. Example:
avoid keeping customers waiting
for no apparent reason.

Dimensions of Service
Quality
 Assurance: Inspiring trust and
confidence. Example: Insurance,
medical services, etc..

 Empathy: Treating customers as
individuals. Example: being a good
listener.

 Tangibles:Representing the service
physically.
E-Service Quality

 Efficiency
 Fulfillment
 Reliability
 Privacy
 Responsiveness
 Compensation
 Contact
The Service Encounter –
The Moment Of Truth
 Occurs any time the customer
interacts with the firm.
 Can potentially be critical in
determining customer satisfaction
and loyalty.
 Is an opportunity to:
 build trust
 reinforce quality
 build brand identity
 increase loyalty


Types of encounters

Remote Encounters
Phone Encounters
Face-to-face Encounters

A Service Encounter
Cascade
for a Hotel Visit
Check
Check--In
In

Bellboy
Bellboy Takes
Takes to
to Room
Room

Restaurant
Restaurant Meal
Meal

Request
Request Wake
Wake--Up
Up Call
Call

Checkout
Checkout
A Service Encounter
Cascade for an Industrial
Purchase
Sales
Sales Call
Call

Delivery
Delivery and
and Installation
Installation

Servicing
Servicing

Ordering
Ordering Supplies
Supplies

Billing
Billing
Service Encounters
Themes

Recovery : Adaptability :
employee response employee response
to service delivery to customer needs
system failure and requests

Coping : Spontaneity :
employee response unprompted and
to problem customers unsolicited employee
actions and attitudes
Recovery

DO DON ’ T
 Acknowledge  Ignore customer
problem  Blame customer
 Explain causes  Leave customer to
 Apologize fend for him/herself
 Compensate/upgrad  Downgrade
e  Act as if nothing is
 Lay out options wrong
 Take responsibility  “Pass the buck”
Adaptability

DO DON ’ T
 Recognize the  Ignore
seriousness of the  Promise, but fail to
need follow through
 Acknowledge  Show unwillingness to
 Anticipate try
 Attempt to  Embarrass the
accommodate customer
 Adjust the system  Laugh at the
 Explain rules/policies customer
 Take responsibility  Avoid responsibility
 “Pass the buck”
Spontaneity

DO DON ’ T
 Take time  Exhibit impatience
 Be attentive  Ignore
 Anticipate needs  Yell/laugh/swear
 Listen  Steal from customers
 Provide information  Discriminate
 Show empathy
Coping

DO DON ’ T
 Listen  Take customer’s
 Try to accommodate dissatisfaction
 Explain personally
 Let go of the  Let customer’s
customer dissatisfaction
affect others
Evidence of Service from
the
Customer’s Point of View
l Contact employees
l Customer
him / herself
lOperational flow l Other customers
of activities People
lSteps in process
lFlexibility vs .
standard
lTechnology vs .
human lTangible
communication
Physical
Process Evidence
lServicescape
lGuarantees
lTechnology
lWebsite
P ro v id e r G a p 1
Understanding
Customer Requirement
Gaps Model of Service Quality

Expected Service

CUSTOMER
Customer
Gap
Perceived
Service

COMPANY Service External


Communications
Delivery Gap 4 to Customers
Gap 3
Gap 1 Customer-Driven
Service Designs and
Standards
Gap 2
Company Perceptions of Consumer Expectations
Provider Gap 1
CUSTOMER
Expected
Service

Listening
COMPANY Gap
Company
Perceptions
of Consumer
Expectations
How to close the Gap 1?

 Listento customers through


research.
 Cover company strategy to retain
and strengthen the relationship.
 Service recovery.

Listening to customers
through research
 By formal and informal method.
 Surveys.
 Critical incident studies.
 Complaint solicitation.
Objectives

 To identify dissatisfied customers.


 To discover customer requirements or
expectations.
 To monitor and track service performance.
 To assess overall company performance
compared to competition.
 To assess gaps between customer
expectations and perceptions.
 To appraise service performance of
individuals and teams for rewards.
 To determine expectations for a new
service.
 To monitor changing expectations in an
Stages in research
finding
 Stage 1 : Define Problem
 Stage 2: Develop Measurement
Strategy
 Stage 3: Implement Research
Program
 Stage 4: Collect and Tabulate
Data
 Stage 5 : Interpret and Analyze
Findings
 Stage 6: Report Findings
Service Quality Perceptions
Relative to Zones of
Tolerance by Dimensions
9
8
7 O
6 O O
O O
5
4
3
2
1
0

lity Responsiveness Assurance Empathy

Retail Chain O
Zone of Tolerance S.Q.
Perception
Importance/Performance
Matrix
HIGH
l l
High
Leverage
Attributes to Attributes to
Improve Maintain
l
Importance

l l l
l

Low l
l Leverage
l
Attributes to Attributes to De -
Maintain emphasize

LOW
HIGH
Performance
Building Customer
Relationship
The Evolution of Customer
Relationship
Customer Goals of
Relationship Marketing

Enhancing

Retaining

Satisfying

Acquiring
The Customer Pyramid
What segment spends more with us
over time, costs less to
Most maintain, and spread positive
Profitable word of mouth?
Customers

What segment costs us in


time, effort, and money
yet does not provide the
return we want? What
segment is difficult to
do business with?
Least
Profitable
Customers
Levels of Relationship
Strategies

Stable
Volume and Pricing
Frequency Bundling and
Rewards Cross
Selling

Integrated I. Continuous
Information Financial Relationships
Systems Bonds

IV . Excellent
II .
Joint Structural Service Social Personal
Investments Bonds and Relationships
Value Bonds

Shared Social Bonds


Processes III . Among
and Customization Customers
Equipment Bonds

Anticipati Customer
on/ Intimacy
Innovation Mass
Customization
Relationship Challenges

 The Customer is not always right



 The Wrong Segment

 Not Profitable in Long Term

 Difficult Customers
Service Recovery
Expressing Dissatisfaction

Service Failure

Take Action Do Nothing

Switch Stay with


Providers Provider

Complain to Provider
Complain to Family & Complain
Friends to Third Party

Switch Stay with


Providers Provider
Service Recovery
Strategies We
lco
me
an
e d
ic En
rv co
Se u rag
e eC
th
e om
S af pla
i l i n ts
Fa

Act Quickly
Service Recovery Strategies
Learn from
Lost Custom
ers

y
airl
F
s
Le er
Re arn f om
co ro
ve m ust
ry t C
Ex ea
pe Tr
ri e
nc
es
Provider Gap 2
S e rv ice D e v e lo p m e n t
a n d D e sig n
Gaps Model of Service Quality

Expected
Service
CUSTOMER
Customer
Gap
Perceived
Service

COMPANY Service External


Communications
Delivery Gap 4 to Customers
Gap 3
Gap 1 Customer-Driven Service Designs and Standards

Gap 2
Company Perceptions of Consumer Expectations
Risks in Service
description through words
alone
 Oversimplification

 Incompleteness

 Subjectivity

 Biased Interpretation
•Full-scale launch
•Post-launch
review

Full Launch Enablers Development


•Formulation

l
of new services

nte ona
objective / strategy

Co iz ati
People

xt

Tea
•Idea generation

m
and screening

ga

s
Or
•Concept
development and
Services testing

Technology Systems

Tools
•Service design
and testing Design Analysis
•Process and system
design and testing •Business analysis
•Marketing program •Project
design and testing authorization
•Personnel training
•Service testing and
pilot run
•Test marketing
hBusiness Strategy Development or Review

hNew Service Strategy Development

Front End
Planning hIdea Generation

Screen ideas against new service strategy

hConcept Development and Evaluation


Test concept with customers and employees

hBusiness Analysis

Test for profitability and feasibility

hService Development and Testing

Conduct service prototype test

hMarket Testing
Implementation
Test service and other marketing-mix elements
hCommercialization

hPostintroduction Evaluation
MARKETS
OFFERINGS
Current Customers New Customers

Existing Services Share Building Market Development

New Services Service Development Diversification


Types Of New Services

 RadicalInnovations - Major
Innovation. Example: amazon.com.

 Start-upBusiness: new service for
existing market. Example: online
banking.

 New Services for the Market
Presently Served: new services to
customers of an organization.
Example: health club offering
Types Of New Services

 Service Line Extensions:


augmentation of existing service
line. Example: Airline offering new
routes.

 ServiceImprovements: changes in
features of currently offered
service. Example: Trains.

 Style
Changes: modest visible
changes in appearances. Example:
Service Blueprinting

A service blueprint is a picture or a


map that accurately portrays the
service system so that the different
people involved in providing it can
understand and deal with it
objectively regardless of their roles
or their individual point of view.
S e rv ice
B lu e p ri
nt
Interview Paperwork/
Physical Campus Receptio Classroom Hall Documents
Evidence n

Customer Admission/
Arrive Entranc Intervie Submission of
Actions at Enquir e
y w Documents
Institut Exam
Line of e
Interaction
On Stage
Contact Receptionist Examiner Directo
Person r
Line of
Visibility Administration
Backstage Staff
Peons
Contact Person

Line of Internal
Interaction
Support Online/site Process of checking Registratio
Process Application Documents n
System
Bill
Desk
EVIDENCE
PHYSICAL
Hotel Cart for Desk Elevators Cart for Room Menu Delivery Food Lobby
Exterior Bags Registration Hallways Bags Amenities Tray Hotel
Parking Papers Room Bath Food Exterior
Lobby Appearance Parking
Key
CUSTOMER

Arrive Give Bags Call Check out


at to Go to Receive Sleep Room Receive and
Check in Room Bags Shower Eat
Hotel Bellperson Service Food Leave
(On Stage)

Greet and
CONTACT PERSON

Take Process Deliver Deliver Process


Bags Registration Bags Food Check Out
(Back Stage)

Take
Take Bags Food
to Room Order
SUPPORT PROCESS

Registration Prepare Registration


System Food System
Building a Blueprint
Customer Defined
Service Standard
1. Identify Existing or Desired Service Encounter Sequence

2 . Translate Customer Expectations Into Behaviors / Actions

3 . Select Behaviors / Actions for Standards

4. Set Hard or Soft Standards

Measure by Measure by
Audits or Transaction -
Hard 55. . Develop
Develop Feedback
Feedback Soft Based Surveys
Operating Data
Mechanisms
Mechanisms

6 . Establish Measures and Target Levels

7. Track Measures Against Standards

8. Update Target Levels and Measures


Physical Evidence and
the Servicescape
Elements of
Servicescape
Servicescape Other Tangibles
Facility Exterior Business Cards
• Exterior Design • Stationery

• Signage • Billing Statements

• Parking • Reports

• Landscape • Employee Dress

• Surrounding Environment • Uniforms

• Brochures

Facility Interior • Internet/ Web Pages

• Interior Design

• Equipment

• Signage

• Layout

•Air/ Quality Temperature


PHYSICAL HOLISTIC INTERNAL BEHAVIOR
ENVIRONMENTAL ENVIRONMENT RESPONSES
DIMENSIONS

Cognitive
Emotional
Physiological

Individual Behaviors

Employee Responses

Ambient Conditions
Space/Function Perceived Social Interactions between and among customer an
Servicescape
ns, Symbols, and Artifacts

Customer Responses

Individual Behaviors

Cognitive
Emotional
Physiological
Provider Gap 3
Delivering and Performing
Service
Gaps Model of Service Quality

Expected
Service
CUSTOMER
Customer
Gap
Perceived
Service

Service
COMPANY Delivery
External
Gap 4 Communications
to Customers
Gap 3
Gap 1 Customer-Driven Service Designs and Standards

Gap 2
Company Perceptions of Consumer Expectations
Employees’ Roles In Service
Delivery.
Service Employees

 Who are they?


 “boundary spanners”
 What are these jobs like?
 emotional labor
 many sources of potential conflict
▪ person/role
▪ organization/client
▪ interclient
▪ quality/productivity

Boundary Spanners Interact with Both Internal

and External Constituents


External Environment

Internal Environment
Sources of Conflict for
Boundary-Spanning Workers

•Person vs. Role



•Organization vs. Client

•Client vs. Client

•Quality vs. Productivity
Figure 11-5
Human Resource Strategies for Closing GAP 3

Hire for
Service
r Competencies
fo Pr Be
t and Service Em efe the
e te es Inclination
B pl rr
o mp e ple oy ed
C th eo er
P
St war and

Tr chn nd iv
Te a act s
Hire the

ai ic
In Sk
d

n
Re ure

Pr erv ong

te il
Right People
s
id e

fo l
er
ov ic

r l
as

S r

r
a
Me

e
Develop

Employees
People to
Retain the

Empower
Employees
Customers

Customer- Deliver
Treat

Best Service
oriented Service Delivery
as

People Quality
Em

wo e
In oyee
pl he ny’s

rk
am ot
Provide
cl s
Co Visi

Te rom
Needed Support
t

ud in
mp on

P
e

Systems
a

D
Se evel e
or rv op ur al
In ien ice- s
a n
Me ter ice
Pr ter ted Provide
oc na
es l Supportive In erv ity
se S al
s Technology Qu
and
Equipment
Customers’ Roles In Service
Delivery.
Importance of Other
Customers in Service Delivery

 Other customers can detract from


satisfaction
▪ disruptive behaviors
▪ excessive crowding
▪ incompatible needs
 Other customers can enhance
satisfaction
▪ mere presence
▪ socialization/friendships
▪ roles: assistants, teachers, supporters

How Customers Widen Gap 3

 Lack of understanding of their roles


 Not being willing or able to perform their
roles
 No rewards for “good performance”
 Interfering with other customers
 Incompatible market segments
trategies for Enhancing Customer Participatio

e fin e C u sto m e r ’ s Jo b s
larify level of participation
ndentify specific roles
nderstand implications for productivity & quality

Recruit , Educate & Reward Customers


•Identify & recruit appropriate segment
Effective Customer Participatio
•Educate customers for their roles
•Provide reasons to participate
•Reward customer performance

efine Customer ’ s Jobs


Clarify level of participation
Indentify specific roles
Understand implications for productivity & quality
Delivering Service
Through
Intermediaries
Management and
demand capacity
Strategies for Shifting Demand to
Match Capacity

Demand Too High Shift Demand Demand Too Low

 Use signage to •Use sales and advertising to


communicate busy days increase business from current
and times
 Offer incentives to market segments
customers for usage
during non-peak times
•Modify the service offering to
 Take care of loyal or regular appeal to new market segments

customers first
Advertise peak usage times •Offer discounts or price
and benefits of non-peak reductions
use
 Charge full price for the •Modify hours of operation
service--no discounts •Bring the service to the customer
Strategies for Adjusting Capacity

to Match Demand
Demand Too High Adjust CapacityDemand Too Low
 Stretch time, labor, facilities

and equipment
Cross-train employees
•Perform maintenance
 Hire part-time employees renovations
 Request overtime work
from employees •Schedule vacations


Rent or share facilities
Rent or share equipment
•Schedule employee training
 Subcontract or outsource
activities
•Lay off employees
Provider GAP 4
Services Marketing
Communication Mix &
Communication Strategies
Gaps Model of Service Quality

Expected
Service
CUSTOMER
Customer
Gap
Perceived
Service
Gap 4
COMPANY Service External Communications to Cus
Delivery
Gap 3
Gap 1 Customer-Driven Service Designs and Standards

Gap 2

Company Perceptions of Consumer Expectations


Need for coordination in
marketing communication

A number of media sources are used


for service marketing
communication.
 Need is to ensure that customers
receive unified & consistent
messages & promises.
Communications and the
Services Marketing Triangle
Company

Internal Marketing External


Vertical Communications Marketing
Horizontal Communications Communication
Advertising
Sales
Promotion
Public Relations
Direct Marketing

Employees Interactive Marketing Customers


Personal Selling
Customer Service Center
Service Encounters
Services capes
Approaches for Integrating
Services Marketing
Communication

Manage
Customer
Expectations

Goal :
Manage Delivery Improve
Service greater than Customer
Promises or equal to Education
promises

Manage
Internal
Marketing
Communication
Reasons for service
communication challenges

 Discrepancies b/w service delivery &


external communications in the
form of exaggerated promises &
the absence of information about
service delivery aspects intended
to serve customers well can
powerfully affect consumer
perceptions of service quality.
 Inadequate management of service
promises.
 Inadequate management of
customer expectations.
 Inadequate customer education.
 Inadequate internal marketing
communications.
Categories of strategies to
match service promises with
delivery
Approaches for Managing Service

Promises

MANAGING SERVICE PROMISES
Goal :
Create Delivery
Coordinate Make Offer greater than
Effective External Service
Services Realistic or equal to
Communication Promises Guarantees promises
Communications
Approaches for
Managing Customer
Expectations
Offer Choices

Create Tiered - Value


Offerings

Communicate Criteria for


Service Effectiveness

Negotiate
Unrealistic
Expectations

Goal :
Delivery
greater than
or equal to
promises
MANAGE INTERNAL
MARKETING COMMUNICATION

 Create
effective vertical
communication.

 Create
effective horizontal
communication.

 Alignback office & support
personnel with external customers.

 Create cross functional teams.
Approaches for Managing
Internal Marketing
Communications
Goal :
Delivery
greater than
or equal to
promises

Create Effective
Vertical
Communications

Create Effective
Horizontal
Communications

Align Back
Office Personnel
w / External
Customers

Create
Cross - Functional
Teams
DHL’s Integrated Marketing
Campaign

Source: http://www.newdhl.com/advertising.asp?cid=dhlbt1hmpg1
DHL’s Outdoor
Advertising
DHL’s Print Advertising
INDIAN LOGISTICS INDUSTRY : AN OVERVIEW

• Fastest growing industry.



• Dominated by unorganized market.

• Logistics cost is over 13% of GDP.



GATI – Ahead In Reach

 Among the top 5 players in the country.




 Best domestic logistics company award.


 Network reaches up to 580 districts out of 590
districts.


 International operations.

S
CUSTOMER
E Customer needs &
expectations
R
Knowledge Gap (1)
V
I Management definition
Of these needs
C
E Standard Gap (2)

Translation into design/


G Delivery specs
Internal
A Delivery Gap (3)
Communication Gap
(4)
P
Execution of design/delivery (4) Advertising & sales
specs promises
M
Perception Gap (5) Interpretation Gap (6)
O
D Customer perceptions of Customer interpretation of
product execution communication
E
L Service Gap (7)
Customer experience
relative to expectations
Key Factors Leading
to Customer needs & Expectations

qImproper field level Information.


q
KNOWLEDGE q
qBusiness Intelligence not available for decision
GAP
making at all levels.

qLeast attention paid to small customers.

Management definition of these needs

GATI’S SOLUTION:

ØCustomer’s information is collected through feedback forms.


Ø
Ø Appointment of executives to cater all types of customers.
Ø
Key Factors Leading to Standard Gap
Management definition of these needs

qNo proper service design for customers.

STANDARD qFluctuation in fuel prices.


q
GAP q No Insurance for goods.

qImproper allocation of funds.

Translation into Design

GATI’S SOLUTION:

ØSharing the burden of increasing fuel prices.


Ø
Ø Insurance for goods.
Ø
Key Factors Leading to Delivery Gap
Translation into Design

qPoor employee-technology job fit.


q
q
DELIVERY
qDelay in delivering the service.
GAP

qOver pricing to match demand.

Execution of Design

GATI’S SOLUTION:

ØEmployees are properly trained.


Ø
Ø Promptness in delivery.
Ø
Key Factors Leading to Communication
Gap
Execution of Design

qImproper horizontal communication.


q
COMMUNICATION
qCustomer enquiry constraints.

GAP qAbsence of strong internal marketing.

qLack of adequate education for customer.

Advertising And Sales Promises

GATI’S SOLUTION:

ØToll Free Number available to provide information to the


customers.
Ø
Ø Gati.net.
Ø
Key Factors Leading to Perception Gap
Execution of Design

q Indifferent attitude towards customers.


q
PERCEPTION q
q Improper design leading to negative perception.
GAP
q
qImproper information transparency to their supply
chain partners to maintain competitiveness.
q

Customer Perceptions of product execution

GATI’S SOLUTION:

ØShould have a positive attitude towards the customer.


Ø
ØProper market research to change design accordingly.
Ø
Key Factors Leading to Interpretation Gap
Advertising And Sales Promises

qOverpromise, under delivery.


q
INTERPRETATION
q
q Main customers - Corporate customers. Hence
GAP interpretation of a local customer varies differently.

Customer interpretation of communication

GATI’S SOLUTION:

Ø Should focus on B to C advertising apart from B to B advertising.


Ø
Ø Provide services as promised .
Ø
Key Factors Leading to Service Gap
Customer perceptions Customer Interpretation
Of product execution of communications

q Value added services.


q
q
SERVICE q Ware housing facility.
GAP

q Reverse logistics.

Customer experience
Relative to expectations
GATI’S SOLUTION:

ØStarted giving value added services in some areas.


Ø

Ø
SERVICE RECOVERY
ØPoor service recovery in the logistics industry.
Ø
Ø
ØEffects customer loyalty.
Ø
Ø
ØIt should be Pro-active, Planned, Trained & Empowered
Ø
Ø
Ø
ØGATI : SERVICE RECOVERY PARADOX
Ø

Undertaking Service Recovery Seriously.


Thank You…