Service Quality Dilemma

Service Quality Dilemma… Presented By: Faizan Ahmad and Gaurav Datta Institute of Management Studies Lal Quan Ghaziabad

CORE AND SUPPLEMENTARY SERVICES Branding : importance of company reputationProcesses : methods used to process policies and claims

Features : period of policy, flexibility, benefits Tangibles payable : brochures, INSURANCE Accessibility: whether policy available direct documents or through insurance other benefits Quality :Level brokers including Of Customer advice services service offered

CORE BENEFIT : Security against uncertainity Source: Christian Dussart

Quality Control: The Service Quality Model Personal Needs

Past Experience

Expected Service GAP 5 Perceived Service

GAP 1

SERVICE BUSINESS

CONSUMER

Word-of-mouth Communications

Service Delivery

(including contacts)

GAP 4

External Communications To Consumers

GAP 3 Translation of Perceptions into Service Quality Specifications GAP 2 Management Perceptions of Consumer Expectations

Source: Zeithaml and Bitner

SERVQUAL Model Gaps • Gap 1 – The difference between actual customer expectations and management’s idea or perception of customer expectations M a na ge m e nt P e r c e p t io n s o f C u s to m e r E x p e c t a t io n s

E x p e c te d S e r v ic e

7

SERVQUAL Model Gaps • Gap 2 – Mismatch between manager’s expectations of service quality and service quality specifications

S e r v ic e Q u a lit y S p e c ific a t io n s

M an ag em en t P e r c e p t io n s o f C u s to m e r E x p e c t a t io n s

8

SERVQUAL Model Gaps • Gap 3 – Poor delivery of service quality

S e r v ic e D e liv e r y

S e r v ic e Q u a lit y S p e c ific a t io n s 9

SERVQUAL Model Gaps • Gap 4 – Differences between service delivery and external communication with customer

S e r v ic e D e liv e r y

E x te rn a l C o m m u n ic a t io n s to C u s to m e rs 10

SERVQUAL Model Gaps • Gap 5 – Differences between Expected and Perceived Quality

E x p e c te d S e r v ic e

P e r c e iv e d S e r v ic e 11

Accessing the GAP’s

Gap 1

• Market Research -Not Focused. -Inadequate Research • Problems with Communication -Low Interaction -Less Communication -Decreasing Flexibilty

• Relationship Management -No bonding between Customers and Management with no value for long term relationships. -Unable to upgrade -Service Recovery

GAP 2 Expectations -Customer Driven Standards. -Physical Standards -Poor Service design

GAP 3 • Discrepancy -Deficiencies in HR Policies -Supply and Demand -Service Intermediaries problems.

GAP 4 -Over Promising. -Inadequate Horizontal Communication -Bad Management of Customer Expectation.

Recommendations • Process Approach

• Adequate Training

Process Approach Approach to Fill the Gaps. – – – – –

Systematic Management Resource Realization Analytical

Integration CUSTOMER

STRATEGY

FINANCE

MARKETING

OPERATIONS

EXTERNAL ENVIRONMENT

COMPETITION