8/14/2019 Marketing 161
1/45
1
Presentation by
E-TEAM
8/14/2019 Marketing 161
2/45
2
Who is a customer..?
CUSTOMER IS THE KINGCUSTOMER IS THE KING
A customer is not dependent on us. We aredependent on him. A customer is not aninterruption of our work, he is the purpose of it.We are not doing a favor by serving him. He isdoing us a favor by giving an opportunity to do so.A customer is not some one to argue. No one has
won an argument with a customer.A customer is a person who brings us his wants. Itis our job to handle them profitably to him and toourselves.
CUSTOMER IS ALWAYS RIGHTCUSTOMER IS ALWAYS RIGHT
8/14/2019 Marketing 161
3/45
3
Aspects of Service QualityService: it is what provided by
organization to its Customers.
Quality : it means what customer wants
(a) within a given time
(b) at a price
(c) what he/she is willing to pay
8/14/2019 Marketing 161
4/45
4
Why Quality ?The drivers of quality are:
To Survive
Customer is demanding Competition
Profitability
Strive for excellence
8/14/2019 Marketing 161
5/45
5
Five principles of QualityFocus on Customer
Do it Right
Communicate & EducateMeasure & Record
Do it together
8/14/2019 Marketing 161
6/45
6
What is Service Quality?Customer satisfaction with service qualitycan be measured by comparing the
perceptions of service received, withservice expected.
Service Expected Service Received =Service Expected Service Received = Customer SatisfactionCustomer Satisfaction
When, S.R > S.E = Service is of excellent qualityWhen, S.R > S.E = Service is of excellent qualityS.R = S.E = Service is satisfactoryS.R = S.E = Service is satisfactory
S.R < S.E = Service is unsatisfactoryS.R < S.E = Service is unsatisfactory
8/14/2019 Marketing 161
7/457
Quality is an attitude..
Attitude is what differentiatesbetween excellence and mediocrity.Positive attitude leads to highquality and vice-versa.
8/14/2019 Marketing 161
8/458
Common attitudinal blocks to
Quality1. We tried it before, I know it wont work
2. It wont work, the way you think
3. It may work in Japan, but not in this country
4. It is a good idea, but we dont have the budget for it
5. Everybody knows it, what is new in it?
6. If you introduce this idea, it will create some other
problems7. Why do you want to change it ? Now we are ok
8. Let us discuss it some other day
9. These ideas are more complicated than what you
understand.
8/14/2019 Marketing 161
9/459
Dimensions of Service
Quality
Word of Mouth Personal Needs Past Needs
Expected Service
Perceived Service
Reliability
Assurance
Empathy
Responsiveness
Tangible
Quality DimensionPerceived Service
Quality
E.S >P.S (Surprise)
E.S = P.S
(Satisfactory)
E.S
8/14/2019 Marketing 161
10/4510
Reliability This refers to the ability to perform thepromised service independently and
accurately. Reliability means, every timethe service has to be accomplished ontime and in the same manner withouterrors.
8/14/2019 Marketing 161
11/4511
Responsiveness
This refers to the willingness to help customers toprovide prompt service,without keeping the
customer waiting for no apparent reasons. Thiscreates negative perceptions of quality.
In the event of service failure, the ability to
recover quickly with professionalism, can create avery positive perception of quality
E.g Roller Discs from NEC
8/14/2019 Marketing 161
12/4512
AssuranceThis refers to the courtesy of employeesand their ability to convey trust and
confidence. i.e. competence to performthe service, politeness and respect for thecustomer, effective communication withthe customer , and general attitude
E.g Efficiency v/s Effectiveness
8/14/2019 Marketing 161
13/45
13
Empathy
This refers to caring and individualizing
attention to the customer.
Empathy includes approachability, senseof security and efforts to understand
customer needs.
8/14/2019 Marketing 161
14/45
8/14/2019 Marketing 161
15/45
15
How do customers asses your
Quality?
Tangibles Appearance of physical facilities, Equipment,Communication material
Reliability Dependability & Accuracy
Responsiveness Willingness o help customers and provide service
Competence Possessing the required knowledge and skills toperform the service
Courtesy Politeness, Respect, Friendliness
Credibility Trustworthiness, believability, honesty of serviceprovider
Access The case of contact and approachability
Communication Keeping customers informed in a language they know
8/14/2019 Marketing 161
16/45
16
Service Quality Model
Word of Mouth Personal Needs Past Experience
Expected Service
Perceived Service
Delivering the Service
Service Quality Specification
Management Perception of Customer Expectation
External
Communication
to CustomersGap 3
Gap 4
Gap 1
Gap 5
Gap 2
8/14/2019 Marketing 161
17/45
17
GAP 1 CausesGap between Customer ExpectationsGap between Customer Expectations
and Management Perception ofand Management Perception of
Customer ExpectationCustomer Expectation
Inadequate market research Lack of interaction between
management and customers Inadequate upward communicationToo many levels
8/14/2019 Marketing 161
18/45
18
Market Research No MR is done
MR is done but not made use of
Concentrating on Day to Day Operations
In MR Data regarding customer expectations not collected Data regarding customer perceptions not collected Complaint made by customer neglected Even if findings are available-not made use of because
of the following reasonsToo busy Research are very complex Research is too technical Lack of confidence in research
8/14/2019 Marketing 161
19/45
19
Inadequate Upward
Communication Personal Customer Contact v/s Top
Management Inadequate upward communication
Upward communication blocked
8/14/2019 Marketing 161
20/45
20
Too many levels Acts as an impediment to upward
communication
At various levels information getsdistorted
8/14/2019 Marketing 161
21/45
21
Remedies to close GAP 1
Collect data regarding expectations and perceptionof the customers.
Improve upward communication have aperiodical meeting between management andcustomer contact staff; informal or formal
Direct interaction by the top management with
customer wherever possible Reduce levels helps in faster decision making
8/14/2019 Marketing 161
22/45
22
GAP 2 CausesGap between Management PerceptionGap between Management Perception
of Customer Expectation and Serviceof Customer Expectation and Service
Quality SpecificationQuality Specification Inadequate management
commitment to service quality
Perception of infeasibility Absence of goal setting
8/14/2019 Marketing 161
23/45
23
Lack of Commitment Operation orientation
Lack of support from middlemanagement due to lack ofmotivation and incentive
Middle management attitudewhatis in it for me
8/14/2019 Marketing 161
24/45
24
Perception of Infeasibility It involves finance
Our personnel may not be capable of
delivering customer expectations -shortage of skills required (9 blocks)
Lack of technology available
8/14/2019 Marketing 161
25/45
25
Absence of Goal Setting Goals are not set
Set goals are not clear
SMART Goal setting
8/14/2019 Marketing 161
26/45
26
Remedies to close GAP 2 Mind set:
Remove the mind block open mindedness;Can Do attitude
Willingness to investing money to buytechnology;spend time with employees tosatisfy customer requirements
Middle Management to be involved all the
more in Quality programmes Train the employees Lack of time concept should be converted
to enough time by following the principlesof time management
8/14/2019 Marketing 161
27/45
27
Contd Absence of goal setting
Most goals on quality should be based
on : Customer requirement Specific Acceptable to employees
Realistic Designed to meet customer specifications Should not become a pious intention Have a proper feedback system
8/14/2019 Marketing 161
28/45
28
GAP 3 CausesGap between Service QualityGap between Service Quality
Specification and Service DeliverySpecification and Service Delivery
Role ambiguity Role conflict
Job fit
Inappropriate supervisory control system
Lack of perceived control
Lack of team work
8/14/2019 Marketing 161
29/45
29
Role Ambiguity Lack of information from the top
Lack of training to perform the job
Uncertainty about superiorsexpectations
Method of evaluation by superiors
8/14/2019 Marketing 161
30/45
30
Role Conflict Conflict between role expectations and
perceptions
Personal attention requirement from customervis-a-vis time limit from employee side
Management constraints and customerexpectations
Varied customer demands
8/14/2019 Marketing 161
31/45
31
Job Fit Making job psychograph v/s individual
psychograph
Hiring of people qualified for the job Do management spend enough time and
resources on hiring the best people who are indirect contact with customer?
Skills required for the job v/s existingemployee skills
8/14/2019 Marketing 161
32/45
32
Inappropriate Supervisory Control
System
Do the employees know what aspect of theirjob will be stressed more in performanceevaluation?
Are employees evaluated on how will theyinteract with customers?
Do employees who make special efforts to servethe customer receive increased financial rewardof recognition?
Do employees get a word of appreciation fortheir contribution?
8/14/2019 Marketing 161
33/45
33
Lack of Perceived Control Are employees given the freedom to make the
individual decision to satisfy the customer
needs? Are employees required to get approval from
another department before delivering theservice to the customer?
Are they encouraged to learn new ways ofservicing the customer better?
8/14/2019 Marketing 161
34/45
34
Lack of Team Work
Do managers and employees contribute a teameffort in servicing the customer?
Do employees of other departments providegood service to customer contact employees?
Are there any competition amongst employeesto impress some one at the cost of team work?
Do they help each other than pulling each otherto reach a goal?
8/14/2019 Marketing 161
35/45
35
Remedies to close GAP 3 Improve communication Train the employee in time management
Train the employee in prioritizing the task
Top management must spend enough time inhiring and selection of employees
Hire and use appropriate technology
Pushing down decision to lower levels
Avoid too many people in decision making
Encourage team work concept of internalcustomer
Job rotation and job training
8/14/2019 Marketing 161
36/45
36
GAP 4 CausesGap between Service Delivery and ExternalGap between Service Delivery and External
Communication to CustomerCommunication to Customer
Inadequate horizontal communication
Differences in policies and procedures acrossbranches or departments
Over promising
8/14/2019 Marketing 161
37/45
37
Inadequate Horizontal
Communication Coordination between Marketing & HR
Corporate Advertising & Operations
Advertisement & Public Relations
In general this refers to the internalcommunication between departments
8/14/2019 Marketing 161
38/45
38
Over Promising Time Dimensions
Quantity Dimensions
When promise do not match delivery, theservice quality suffers
8/14/2019 Marketing 161
39/45
39
Remedies to close Gap 4 Opening channels of communication between
advertising and operations
Opening channels of communication betweensales and operations
Opening channels of communication betweenHR, Marketing and Operations
Providing consistent service across branchesor outlets
Developing appropriate and effectivecommunications about service quality
8/14/2019 Marketing 161
40/45
40
Communications on Service
Quality Emphasize primary quality
determinants
Managing customers expectations Customer role in service delivery
8/14/2019 Marketing 161
41/45
41
The Service Struggle
4 1
3 2
Unwillingness
to Serve
Willingnessto Serve
Inability
to Serve
Ability
to Serve
8/14/2019 Marketing 161
42/45
42
Getting Started
Get ready to work hard Base decisions on Data
Use a portfolio of research methods Do on going research Do employee research Share findings with employees
Organize for change Create service improvement rules Create an integrative mechanism Develop a statement of direction Involve many and emphasis teamwork Think evolution rather than revolution
8/14/2019 Marketing 161
43/45
43
Getting Started contd
Leverage the freedom factor
Symbolize service quality
Promote the right people tomanagement positions Identifying leaders
The footprints-in-the-sand test
The stand-for-something test
8/14/2019 Marketing 161
44/45
44
Challenges Ahead
Designing quality into service Service blue-printing Hard but worthwhile work
Making technology as a servant Combining high tech with high touch Use technology to support the service strategy Focus technology on the customer
Attacking the labor shortfall Mismatch Need for innovative approaches
Raising our service aspirations
8/14/2019 Marketing 161
45/45
Thank You