6 Gap 1
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PROVIDER GAP 1
PROVIDER GAP 1 • Not knowing what customers expect is one of the root causes of not delivering to customer expectations. • Provider gap 1 is the gap between customer expectations and company understanding of those expectations. • Company – Anyone in the organization who has the responsibility and authority to create or change service policies, procedures and standards.
PROVIDER GAP 1 Custome r
Expected Service
Gap 1
Compan y
Company Perception of Consumer expectation
PROVIDER GAP 1 • Why does this provider gap occur? • Many reasons like – No direct interaction with customers, – Unwillingness to ask about expectations, – Unpreparedness to address them
PROVIDER GAP 1 • If do not fully understand customer’s need, may trigger a chain of bad decisions and suboptimal resource allocations – Ex. Spending far too much money on buildings and appearance, while customer are more concerned with how convenient, comfortable the facilities are? – Training of doctors on latest machines but forget to educate them about patient’s need for care and concern.
PROVIDER GAP 1 • The necessary first step in improving service quality is to acquire accurate information about customers’ expectations. – Various formal and informal methods of market research, customer visits, survey research, complaint systems, brain storming, customer meets, mystery shopping, future expectation research etc.
PROVIDER GAP 1 – Also segmenting the market of customers sharing similar requirements, expectations and demographic and psychographic profiles. – Another strategies is to retain customers and strengthen relationships with them. Ex. Frequent flier, frequent buyers program etc. Done through Relationship marketing.
PROVIDER GAP 1 – In service sector, sometimes service failure is inevitable. Many firms recognize that customers who complain are best friends. Knowing why people complain, what they expect when they complain and how to develop effective service recovery strategies
Market Research for Services • Market research is a key vehicle for understanding customer expectations and perceptions of services. • Some common research objectives in services marketing are:
– To identified dissatisfied customers – To discover customer requirements or expectations – Monitor and track service performance – Monitor changing customer expectation in an industry – Forecast future expectations of customers etc.
Market Research for Services • These research objectives are similar to the physical products but some additional elements that require specific attention in case of services are – Services research must continually monitor and track service performance because performance is subject to human variability and heterogeneity. – Services research needs to consider and monitor the gap between expectations and perceptions. This gap is dynamic. Does the gap exist because performance declining or because expectations are escalating?
PROVIDER GAP 1 • Not knowing what customers expect is one of the root causes of not delivering to customer expectations. • Provider gap 1 is the gap between customer expectations and company understanding of those expectations. • Company – Anyone in the organization who has the responsibility and authority to create or change service policies, procedures and standards.
PROVIDER GAP 1 Custome r
Expected Service
Gap 1
Compan y
Company Perception of Consumer expectation
PROVIDER GAP 1 • Why does this provider gap occur? • Many reasons like – No direct interaction with customers, – Unwillingness to ask about expectations, – Unpreparedness to address them
PROVIDER GAP 1 • If do not fully understand customer’s need, may trigger a chain of bad decisions and suboptimal resource allocations – Ex. Spending far too much money on buildings and appearance, while customer are more concerned with how convenient, comfortable the facilities are? – Training of doctors on latest machines but forget to educate them about patient’s need for care and concern.
PROVIDER GAP 1 • The necessary first step in improving service quality is to acquire accurate information about customers’ expectations. – Various formal and informal methods of market research, customer visits, survey research, complaint systems, brain storming, customer meets, mystery shopping, future expectation research etc.
PROVIDER GAP 1 – Also segmenting the market of customers sharing similar requirements, expectations and demographic and psychographic profiles. – Another strategies is to retain customers and strengthen relationships with them. Ex. Frequent flier, frequent buyers program etc. Done through Relationship marketing.
PROVIDER GAP 1 – In service sector, sometimes service failure is inevitable. Many firms recognize that customers who complain are best friends. Knowing why people complain, what they expect when they complain and how to develop effective service recovery strategies
Market Research for Services • Market research is a key vehicle for understanding customer expectations and perceptions of services. • Some common research objectives in services marketing are:
– To identified dissatisfied customers – To discover customer requirements or expectations – Monitor and track service performance – Monitor changing customer expectation in an industry – Forecast future expectations of customers etc.
Market Research for Services • These research objectives are similar to the physical products but some additional elements that require specific attention in case of services are – Services research must continually monitor and track service performance because performance is subject to human variability and heterogeneity. – Services research needs to consider and monitor the gap between expectations and perceptions. This gap is dynamic. Does the gap exist because performance declining or because expectations are escalating?
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