😄Identifying a Service Quality Gap

In the realm of service quality management, one of the most critical concepts is understanding
and addressing service quality gaps. These gaps represent the disparities between customer
expectations and perceptions of the service provided by an organization. By identifying and
bridging these gaps, businesses can enhance customer satisfaction and loyalty. One of the
prominent service quality gaps is Gap 3, which pertains to the discrepancy between service
quality specifications set by management and the actual service delivered to customers.

Service Quality Gap 3: Communication Gap

Gap 3, also known as the communication gap, occurs when there is a disconnect between what
management believes customers want in terms of service quality and what is actually provided
on the front lines. This misalignment can lead to unmet customer expectations, dissatisfaction,
and ultimately, loss of business. Let’s delve into an example to illustrate this concept:

Hypothetical Example: XYZ Airlines

XYZ Airlines prides itself on offering top-notch customer service as part of its brand promise.
Management conducts market research and sets service quality standards that emphasize
timely departures, friendly staff interactions, and efficient baggage handling. However, due to
poor internal communication or inadequate training programs, frontline employees may not
fully understand or prioritize these service standards.

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Now imagine a situation where a passenger arrives at the airport for a flight with XYZ Airlines.
The check-in process is slow, staff members appear disinterested or rude, and there are delays
in baggage handling. In this scenario, there is a clear communication gap between what
management intended in terms of service quality and what the customer experiences firsthand.

As a result of this gap:

The passenger’s expectations are not met.

The perceived service quality falls short of what was promised.
Customer satisfaction decreases.
There is a risk of losing that customer’s future business and receiving negative word-of-
mouth publicity.

To address Gap 3 in this context, XYZ Airlines would need to improve internal communication
channels, provide comprehensive training to frontline staff on service standards, and regularly
monitor performance to ensure alignment with customer expectations.

By recognizing and rectifying communication gaps like Gap 3, organizations can deliver on their
service promises more effectively, leading to enhanced customer experiences and long-term
loyalty.

🥰One of the service quality gaps identified in the SERVQUAL model is the "Gap 3: Service
Performance Gap," which occurs when there is a discrepancy between the service quality
specifications set by the management and the actual service delivered to customers. This can
happen due to a variety of reasons, such as inadequate training, lack of resources, or
misalignment between customer expectations and service delivery.

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Hypothetical Example:

Let's consider a hypothetical scenario at a car dealership. The management of the dealership
sets high standards for customer service, emphasizing prompt responses to inquiries,
personalized attention, and efficient handling of customer concerns. However, due to a lack of
proper training for the sales team and service staff, the actual service provided falls short of
these expectations.

A customer, Mr. Smith, visits the dealership looking to purchase a new car. He expects to be
greeted warmly, provided with detailed information about different models, and given a test
drive. However, the salesperson assigned to him is not well-trained and fails to engage with Mr.
Smith effectively. The salesperson appears disinterested, provides incomplete information, and
rushes through the process.

As a result, Mr. Smith feels frustrated and unappreciated, leading to a negative experience. The
gap between the service quality standards set by the dealership management and the actual
service performance results in dissatisfied customers and potential loss of business.

Real-Life Example:

In a real-life example, a popular fast-food chain may have a reputation for delivering quick and
efficient service to customers. However, due to understaffing or inadequate training at a
particular location, customers experience long wait times, incorrect orders, and poor customer
service.

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For instance, a customer orders a meal through the drive-thru and expects it to be ready within
a few minutes. However, due to staffing shortages and inefficiencies in the kitchen, the order
takes much longer than anticipated. The customer receives the wrong items in their order and
encounters unfriendly staff members who do not address their concerns promptly.

In this case, the gap between the service quality standards expected by customers based on the
chain's reputation and the actual service performance at that specific location results in
customer dissatisfaction and a negative perception of the brand.

By addressing Gap 3 through improved training, resource allocation, and alignment of service
delivery with customer expectations, organizations can bridge the service performance gap and
enhance overall service quality

😂Career Guide

Career developmentWhat Is the Gap Model of Service Quality? (With Examples)

What Is the Gap Model of Service Quality? (With Examples)

Updated March 11, 2023

A smiling employee in a yellow blazer hands a gift bag to a customer in a store

Quality customer service can help companies retain their current customers, increase revenue
and grow their businesses. Many companies use the gap model of service quality to identify
areas where they can improve the customer experience. If you work as a manager for a
company that provides customer service, you might benefit from learning about the gap model
to evaluate customer satisfaction.

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In this article, we explain the gap model of service quality, list five types of gaps this tool can
help you identify, and share three examples to help you get started.

Related: How To Conduct a Thorough Internal Analysis

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What is the gap model of service quality?

The gap model of service quality is a framework professionals use to analyze customer
satisfaction and identify areas for improvement. Most companies, regardless of whether they
are sales- or service-focused, involve some component of customer service. Some industries
that use this tool include retail, food, hospitality and health care.

Also known as the five gaps model or the customer service gap model, this tool addresses the
most common communication challenges that can cause a gap between customers'

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expectations of service and the service they actually receive. The model also helps managers
better understand their customers to meet their needs.

Related: How To Use a Gap Analysis To Increase Performance

5 types of gaps

The gap model of service quality addresses five gaps that the framework addresses. Each gap is
a difference between an expectation and a deliverable. The five gaps that the framework
examines are:

1. Gap between management perception and customer expectation

This gap measures what customers expect and what management thinks they want. This can
occur when management doesn't have enough information about their customers'
expectations. For example, managers at a supermarket may think shoppers want more brand-
name items and self-checkout stations. However, shoppers are more concerned about the
store's cleanliness and employee friendliness.

Market research and feedback can help you better understand your customers before you
make significant changes to your products or services. Consider hosting customer panels and
interviews, implementing satisfaction surveys or conducting comprehensive studies to ensure
your perception of what your customers want is correct.

2. Gap between management perception and service quality specification

This gap examines the difference between management's perception of quality service and the
steps it takes to provide that level of service. Managers may understand what their customers
expect but haven't established the necessary training or standards to meet these expectations.
For example, managers at a fast-food restaurant may tell staff members to fill orders quickly
without specifying the acceptable amount of time.

Managers need to define the level of service they want their customers to experience to
diminish the potential for miscommunication. Develop standard operating procedures for your

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team and establish SMART goals that are specific, measurable, actionable, relevant and timely.
Addressing each area can help you create parameters that are easy to understand and
empower your team to complete tasks successfully.

Related: Quality Management: What It Is and Why It's Important

3. Gap between service quality specification and service delivery

This gap assesses the difference between what level of service management tells expects from
staff and what type of service the customer actually receives. Customers may receive lower-
quality service than managers want if team members can't meet expectations. At this stage,
managers might audit the customer experience to identify areas for improvement. Often, in this
type of situation, the team may benefit from receiving additional training. In some situations,
management may need to review their hiring practices to select both capable and willing
candidates to provide quality customer service.

A few areas you can consider when analyzing this gap include team members' aptitude, health,
attitude and cultural factors. For example, managers at a call center may have specific
standards for how many calls a representative completes each hour. If they see that many find
it challenging to meet the goal, managers may decide to provide more training. They may also
revisit their hiring practices to ensure candidates are comfortable speaking with customers over
the phone.

Related: Service Quality: Definition, Importance and Implementation

4. Gap between service delivery and external communication

This gap analyzes the difference between the service a company tells customers it provides and
the service they actually receive. It measures whether the company advertises and shares
information about its services accurately instead of exaggerating its claims. Advertisements and
company statements significantly impact customer expectations, so managers need to ensure
claims are honest.

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For example, a hotel's website and brochures might feature clean and modern-looking rooms,
but if the staff doesn't properly maintain the rooms between guests, there may be a gap
between what customers expect and what they receive. Reviewing advertising materials
regularly can help you accurately depict the services you provide customers.

Related: Customer Experience Marketing: Definition and Tips

5. Gap between expected service and experienced service

This gap addresses the difference between the level of service customers expect and the level
they perceive. This can occur when the company's claims are honest but misinterpreted by the
customer. Interactions with other customers and previous experiences with your company may
also influence the type of experience that customers expect.

For example, a sales associate at a boutique clothing store may welcome guests, ask if they
need help finding anything, offer to prepare a dressing room and check on them to ensure the
clothes fit properly. While the sales associate may be providing the company's expected quality
of service, customers may perceive this service as overwhelming based on experiences
shopping at other stores. Collecting regular customer feedback can help you identify this gap.
Consider implementing transactional surveys to assess how customers perceive the quality of
the service they receive.

Related: Customer Experience Management: Definition and Tips

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3 examples of the gap model of service quality

Here are three examples of how managers can use the gap model to identify opportunities to
improve the service their customers receive:

Example 1

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Here's an example of how managers at an online retail store may use the gap model to improve
customer reviews:

Hygge Home Retail sells a variety of household consumer goods online. Management plans to
expand product offerings to include more outdoor products for gardens and patios because
they believe customers want more options. Before they launch this new product line,
management decides to use the gap model of service quality to identify any other opportunities
to improve the customer experience.

After reading customer reviews carefully, they realize customers are happy with the selection
but feel that shipping costs are too high. There's a clear gap between management perception
and customer expectation in this situation. Management uses this information to find ways to
decrease shipping costs. They see a significant increase in online orders over the next quarter.

Example 2

Here's an example of how a restaurant manager can use the gap model to improve
communication with their customers:

Chives is a new fine dining restaurant that serves seafood, steak and craft cocktails. Since the
restaurant is new, the manager doesn't have photos of the dishes yet, so he uses stock images
for the menu. He also uses these stock images to promote food specials on social media. When
customers receive their meals, they're disappointed that the food on their plates doesn't look
like the photos.

The manager listens to this feedback and realizes there's a gap between the type of food Chives
advertised and the food the customers actually received. He contacts a local photographer to
take photos of each dish and drink and uses these images to update the menu and create posts
for social media.

Example 3

Here's an example of how managers at a cleaning company can use the gap model to elevate
the level of service their customers receive:

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Happy House Cleaners provides residential cleaning services. Before staff members finish
cleaning a house, they fill out a digital checklist to ensure they complete each cleaning task that
management expects them to perform. However, management continues to receive customer
feedback that the cleaning services don't meet their expectations.

Management shadows several staff members and realizes that while performing the specified
cleaning tasks on the checklist, many lack the proper techniques to clean these areas
effectively. In this situation, there's a gap between the service quality specification and the
service quality delivery. Management implements a new onboarding and training program to
teach staff members how to deep clean each area, improving service.

❤️1. Provide a comparative analysis of promotion mix elements and promotion budgeting
techniques. Suppose you are the promotion manager of Commercial Bank of Ethiopia
(CBE), which promotion mix element should you use for the specified objectives (you make
the objectives and associate the promotion mix element with it)?

Introduction

When considering the promotion mix elements and promotion budgeting techniques, it is
essential to understand how these two aspects work together to create effective marketing
strategies.

The promotion mix elements are the various tools and methods that marketers use to
communicate with their target audience, while promotion budgeting techniques involve

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allocating financial resources to these different elements based on specific objectives and
constraints. In this learning we will see each definition of promotion mix elements and
promotion budgeting techniques.

Objects

Up on completing this assignment we will have to:

 Explain promotion mix elements

 Describe the promotion budgeting method
 What should we use from promotion mix elements and promotion budgeting techniques if we
become the promotion manager of Commercial Bank Of Ethiopia.

Comparative Analysis of Promotion Mix Elements and Promotion Budgeting Techniques:

1.1 Promotion Mix Elements

The promotion mix is a critical component of a marketing strategy, and it consists of various
elements that a company can use to communicate with its target audience. The elements of the
promotion mix include advertising, personal selling, sales promotion, direct marketing, and
public relations. Each element has its unique benefits and can be used to achieve specific
objectives.

1. Advertising

Advertising is a non-personal form of communication that is paid for by an identified sponsor. It

is a mass communication tool that allows organizations to reach a large audience through
various media channels such as television, radio, print, and online platforms. Advertising can be
used to create brand awareness, promote new products, and enhance the company’s image.

2. Personal Selling

Personal selling is a direct communication between a salesperson and a potential customer. It is

a highly effective way of promoting complex products or services that require explanation and
demonstration. Personal selling can be used to build relationships with customers, close sales,
and gather customer feedback.

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3. Sales Promotion

Sales promotion involves short-term incentives such as discounts, coupons, and special offers
aimed at encouraging customers to make immediate purchases. It can be used to increase sales
volume, clear out inventory, or attract new customers. Sales promotion can be an effective tool
for achieving tactical objectives, but it should be used judiciously as it can erode profits and
undermine brand value.

4. Public Relations

Public relations involves managing the organization’s reputation and relationships with
stakeholders such as customers, investors, and the media. It involves creating and sharing
positive stories about the organization through various channels such as press releases, social
media, and events. Public relations can be used to enhance the company’s image, build trust
with customers, and protect the organization’s reputation in times of crisis.

Direct Marketing: Direct marketing allows businesses to interact directly with customers using data-
driven approaches such as email marketing, phone calls, social media campaigns based on customer
information collected by the company. This method eliminates intermediaries and gives firms more
control over the sales process.

1.2 Promotion Budgeting Techniques

Promotion budgeting is the process of allocating resources to various promotional activities.

There are several techniques for budgeting for promotions, including:

1. Percentage of Sales Method

The percentage of sales method involves allocating a fixed percentage of sales revenue to
promotional activities. This method is easy to implement and ensures that the promotion
budget increases or decreases in line with sales revenue. However, it does not take into
account the specific promotional needs of the organization.

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2. Affordability Method

The affordability method involves allocating a portion of the organization’s budget to

promotional activities based on what it can afford. This method is often used when there are
limited resources available for promotions. However, it may not provide sufficient funds to
support effective promotional activities.

3. Competitive Parity: With this method, the promotional budget is set in line with competitors’
spending levels in the industry. It helps maintain competitiveness but may not reflect actual
needs

4. Objective and Task Method

The objective and task method involves determining the specific objectives of the promotional
activities and estimating the costs associated with achieving those objectives. This method
ensures that the promotion budget is aligned with the organization’s goals and objectives but
requires careful planning and estimation of costs.

Implementing the objective and task approach is somewhat more involved. The manager must
monitor this process throughout and change strategies depending on how well objectives are
attained. This process involves several steps:

1. Isolate objectives
2. Determine task required
3. Estimate required expenditures
4. Monitor
5. Reevaluate objectives

Which promotional mix elements should you use for specified objectives if you are the
promotional manager of Commercial Bank Of Ethiopia (CBE)?

As the promotion manager of Commercial Bank of Ethiopia (CBE), my objectives may include
increasing brand awareness, attracting new customers. increasing the number of new account
openings among young professionals.

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By utilizing advertising through various media channels, the bank can reach a large audience
and effectively communicate our services and benefits to potential customers. This can help in
increasing brand visibility, creating a positive image, and attracting new customers to the bank.

Additionally, advertising can be cost-effective and can be tailored to specific target markets to
maximize its effectiveness.

Conclusion

In conclusion, both promotion mix elements and promotion budgeting techniques are essential
for developing a successful promotion strategy. While promotion mix elements involve the
tools and strategies used to promote products or services, promotion budgeting techniques
involve the allocation of resources to these elements. By effectively combining the right mix of
promotion elements with a strategic budgeting approach, companies can create a
comprehensive and effective promotion strategy that reaches their target audience and
achieves their marketing objectives.

References:

 Principles of Marketing by Philip T Kotler

 Marketing Management by Kevin Lane Keller
 Advertising & IMC: Principles & Practice by Sandra Moriarty

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