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and
Consumers of Services
Dr Declan P Bannon
Copyright © 2017
Hospitality – conferences, meetings, awards
ceremonies, travel, tourism, airports,
hotels, bars, restaurants, taxis, etc.
Banking, financial advisors and insurance.
Personal services
e.g. personal trainers, coaches, private tutors,
mentors, dietitians. hairdressing, gardening,
cleaning etc.
Professional services e.g. legal, accountancy, medical
etc.
Charities
Public services
Service
high service - low physical content
FMCG
high physical content - low service
Characteristics of Service Markets
• Intangible
• Lack of ownership
• Perishability
• Heterogeneity
- each service experience is likely to be
different.
• Inseparability
– production and consumption are usually
together
Services are about People
People
–Capability (ability, resources,
support and training).
–Availability (service levels and
motivation to provide the service).
–Effectiveness (perception/reality).
–Customer interaction/interface
Physical evidence
CUSTOMER Expected
Service
Customer
Gap
Perceived
Service
External
Service Delivery Communications
GAP 4 to Customers
GAP 1 GAP 3
Customer-Driven Service
Designs and Standards
GAP 2
Company Perceptions of
COMPANY Consumer Expectations
Customer Expectation
Gap 1
Consumer Expectation – Management Perception
Communication
Understanding customer expectation
Ability to lower expectations
Pre-empting customer disappointment
Adequate skill and scope to resolve and
compensate customers, conflict resolution.
Over promising - the ‘Fray Bentos Gap’
Source: Bannon, 1994.
• In advertising
• Personal selling
• Physical evidence clues
Gap 4
• Inadequate horizontal communications
• Communications between sales and
operations management
• Communication between advertising and
operations management
• Standardising among branches and individual
members of staff.
Gap 5
Expected Service – Perceived Service Gap
Gap5 = f( Gap1+Gap2+Gap3+Gap4)
Provider Gap 1:
not knowing what customers expects
Provider Gap 2:
not having the right service designs and
standards
Provider Gap 3:
not delivering to service standards
Provider Gap 4:
not matching performance to promise
Ten facts of Customer Retention
-Thanks!
Summary
Customer care is a core element to all
business and management training courses.