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Understanding Service Failure
Learning Objectives

• To understand the Service Provider’s
  responsibility for managing service quality

• To understand the interdependence between
  marketing/sales, service delivery and the
  customer

• To understand some of the quality gaps that
  cause service failures
What is Service Failure?
  Service Failure is the process
   of NOT keeping promises
 Above
 expectation
 (great service)
                           4
 Expected          2                           Zone of
                       3
 Service    1                                  Tolerance
                               5
 Below                             6
 expectation                           7   8         9
 (poor service)




                                                   Failed service
Causes of Service Failure
                                                    The facilities and
                                                      environment
                             The expectations


                                                                            Actions (&
              The systems
                                                                         inactions) of staff
                                          4
                                2
                                     3
The process
                                                5
                         1
                                                       6
                                                            7      8      9




              Actions of the        Actions of other
                customer                                                 The equipment
                                      customers
What Needs to be Managed?
                                                 The facilities and
                                                   environment
                            The expectations


                                                                         Actions (&
                 The systems
                                                                      inactions) of staff


The process                         If something can affect the
                                      service then the Service
                                         Provider becomes
The Service Provider
 needs to manage                    responsible for managing it
   these as well.




               Actions of the      Actions of other
                 customer                                             The equipment
                                     customers
Managing Customers
We limit their
 choices

                    We restrict their
                     movement


                                        We tell them
                                         what to do
Managing Other Customers
We make them
    wait
                We choose which
               customers to serve
The Promises Model
Basic Service Promises Model
 A Service consists of Two Things:
 1. Someone making a promise (also known
    as a Sale)
 2. Someone keeping a promise (also known
    as Delivery)

                 Making a Promise
     Service
                                       Customer
     Provider

                Delivering a Promise
Normal Service Promises Model
  In a large organisation promises can be
  made and delivered by different groups
                Service Provider

                     Marketing/
                      Sales




     Delivery                       Customer
                 Keeping Promises
This can complicate things…

                           “This is pest
                           control, how
                            may I help
                              you?”




        Keeping Promises
Promises Model of Service Delivery
                        The three groups are linked and
                                interdependent
       Service Delivery need to
        understand the service
       and be able to provide it.                  Marketing/
                                                    Sales




                             Delivery                                        Customers
                                            Keeping Promises
Source: Parasuraman, Zeithaml, Berry, SERVQUAL: a multi-item scale for measuring consumer perceptions of service quality
Service Failure: Understanding Gaps
Gaps Cause Service Failures
                   Management
                  perception gap



      Quality                                      Market comms
  specification gap            Marketing/              gap
                                Sales

                                                          Perceived service
                                                             quality gap
  Service
delivery gap



                Delivery                      Customers
                           Keeping Promises
Management Perception Gap
                             Management
                              perception
                                 gap




         Quality
    specification gap                          Marketing/
                                                 Sales
                                                                      Market comms
                                                                           gap
                                                                                                   Management has an
                                                                                               inaccurate understanding of
                                                                           Perceived service
                                                                              quality gap
  Service
delivery gap




                        Delivery

                                           Keeping Promises
                                                              Customers


                                                                                                   quality expectations
Quality Specification Gap
                             Management
                              perception
                                 gap




         Quality
    specification gap                          Marketing/
                                                 Sales
                                                                      Market comms
                                                                           gap
                                                                                               Service quality specifications
                                                                                                do not match management
                                                                           Perceived service
                                                                              quality gap
  Service
delivery gap




                        Delivery

                                           Keeping Promises
                                                              Customers


                                                                                                       expectations
Service Delivery Gap
                             Management
                              perception
                                 gap




         Quality
    specification gap                          Marketing/
                                                 Sales
                                                                      Market comms
                                                                           gap
                                                                                               Quality specifications and
                                                                                               not met by service delivery
                                                                           Perceived service
                                                                              quality gap
  Service
delivery gap




                        Delivery                              Customers

                                           Keeping Promises
Market Communications Gap
                             Management
                              perception
                                 gap




         Quality
    specification gap                          Marketing/
                                                 Sales
                                                                      Market comms
                                                                           gap
                                                                                               Messages from marketing
                                                                                               do not match the service
                                                                           Perceived service
                                                                              quality gap
  Service
delivery gap




                        Delivery

                                           Keeping Promises
                                                              Customers


                                                                                                      experience
Perceived Service Quality Gap
                             Management
                              perception
                                 gap




         Quality
    specification gap                          Marketing/
                                                 Sales
                                                                      Market comms
                                                                           gap
                                                                                               The experienced service
                                                                                               does not match expected
                                                                           Perceived service
                                                                              quality gap
  Service
delivery gap




                        Delivery

                                           Keeping Promises
                                                              Customers


                                                                                                        service
Final Word on Service Failure
• The Service Provider is responsible for
  managing the service – this includes managing
  the customer

• Gaps in the interactions between the groups
  create service failures

• Once a service failure occurs, the service
  provider needs to initiate a service recovery
  process

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Understanding Service Failure

  • 2. Learning Objectives • To understand the Service Provider’s responsibility for managing service quality • To understand the interdependence between marketing/sales, service delivery and the customer • To understand some of the quality gaps that cause service failures
  • 3. What is Service Failure? Service Failure is the process of NOT keeping promises Above expectation (great service) 4 Expected 2 Zone of 3 Service 1 Tolerance 5 Below 6 expectation 7 8 9 (poor service) Failed service
  • 4. Causes of Service Failure The facilities and environment The expectations Actions (& The systems inactions) of staff 4 2 3 The process 5 1 6 7 8 9 Actions of the Actions of other customer The equipment customers
  • 5. What Needs to be Managed? The facilities and environment The expectations Actions (& The systems inactions) of staff The process If something can affect the service then the Service Provider becomes The Service Provider needs to manage responsible for managing it these as well. Actions of the Actions of other customer The equipment customers
  • 6. Managing Customers We limit their choices We restrict their movement We tell them what to do
  • 7. Managing Other Customers We make them wait We choose which customers to serve
  • 9. Basic Service Promises Model A Service consists of Two Things: 1. Someone making a promise (also known as a Sale) 2. Someone keeping a promise (also known as Delivery) Making a Promise Service Customer Provider Delivering a Promise
  • 10. Normal Service Promises Model In a large organisation promises can be made and delivered by different groups Service Provider Marketing/ Sales Delivery Customer Keeping Promises
  • 11. This can complicate things… “This is pest control, how may I help you?” Keeping Promises
  • 12. Promises Model of Service Delivery The three groups are linked and interdependent Service Delivery need to understand the service and be able to provide it. Marketing/ Sales Delivery Customers Keeping Promises Source: Parasuraman, Zeithaml, Berry, SERVQUAL: a multi-item scale for measuring consumer perceptions of service quality
  • 14. Gaps Cause Service Failures Management perception gap Quality Market comms specification gap Marketing/ gap Sales Perceived service quality gap Service delivery gap Delivery Customers Keeping Promises
  • 15. Management Perception Gap Management perception gap Quality specification gap Marketing/ Sales Market comms gap Management has an inaccurate understanding of Perceived service quality gap Service delivery gap Delivery Keeping Promises Customers quality expectations
  • 16. Quality Specification Gap Management perception gap Quality specification gap Marketing/ Sales Market comms gap Service quality specifications do not match management Perceived service quality gap Service delivery gap Delivery Keeping Promises Customers expectations
  • 17. Service Delivery Gap Management perception gap Quality specification gap Marketing/ Sales Market comms gap Quality specifications and not met by service delivery Perceived service quality gap Service delivery gap Delivery Customers Keeping Promises
  • 18. Market Communications Gap Management perception gap Quality specification gap Marketing/ Sales Market comms gap Messages from marketing do not match the service Perceived service quality gap Service delivery gap Delivery Keeping Promises Customers experience
  • 19. Perceived Service Quality Gap Management perception gap Quality specification gap Marketing/ Sales Market comms gap The experienced service does not match expected Perceived service quality gap Service delivery gap Delivery Keeping Promises Customers service
  • 20. Final Word on Service Failure • The Service Provider is responsible for managing the service – this includes managing the customer • Gaps in the interactions between the groups create service failures • Once a service failure occurs, the service provider needs to initiate a service recovery process

Notas do Editor

  1. Title Slide
  2. The customer’s experience can be mapped through a service sequence. This is an abstract map showing how the perceived quality of service can be affected by the different acts. The customer may have had some great service (service encounter 4) but the final four service encounters will have left the impression of poor service.
  3. There are a number of things that can affect the quality of the service.
  4. If something can affect the quality of the service, then the service provider becomes responsible for managing it. Service providers are therefore responsible for managing the customer as well as managing other customers.
  5. Example of Managing CustomersMenus limit customers to a certain selection of options at a restaurant.Role lanes ensures that customers go the right way.Clear instructions and signposts at airports direct customers to the right place.
  6. Example of Managing Other CustomersWe make them wait away from the service area.We limit which customers we allow in to be served.
  7. Title Slide
  8. Simply, you promise something to a customer (in exchange for money)then you give it to the customer.
  9. Sales/Marketing may make the promises and the Delivery will keep the promise
  10. Sales/Marketing may make the promises and the Delivery will keep the promise
  11. Marketing and Sales make promises to customers.Marketing/Sales also need to ensure that the Delivery arm is enabled to keep those promises.Delivery need to understand what promises have been made and deliver on these to keep the promises.
  12. Title Slide
  13. Management Perception GapThere is a disconnect between what managers believe that customers want and what those customers really want.Quality Specification GapThe specification of the service’s quality is deficient meaning that the service delivered is not as expected. The service delivery groups are therefore unable to deliver services to the desired quality.Service Delivery GapThe service delivery groups have the ability to deliver service but do not manage to do so.MarketComms GapThe marketing (or sales) material oversells the service. The customers expectations are set too high and exceed the capability of the service delivery groups.Perceived Quality GapThe customers’ expectations exceed the service provided.
  14. Management Perception GapThere is a disconnect between what managers believe that customers want and what those customers really want.Quality Specification GapThe specification of the service’s quality is deficient meaning that the service delivered is not as expected. The service delivery groups are therefore unable to deliver services to the desired quality.Service Delivery GapThe service delivery groups have the ability to deliver service but do not manage to do so.MarketComms GapThe marketing (or sales) material oversells the service. The customers expectations are set too high and exceed the capability of the service delivery groups.Perceived Quality GapThe customers’ expectations exceed the service provided.
  15. Management Perception GapThere is a disconnect between what managers believe that customers want and what those customers really want.Quality Specification GapThe specification of the service’s quality is deficient meaning that the service delivered is not as expected. The service delivery groups are therefore unable to deliver services to the desired quality.Service Delivery GapThe service delivery groups have the ability to deliver service but do not manage to do so.MarketComms GapThe marketing (or sales) material oversells the service. The customers expectations are set too high and exceed the capability of the service delivery groups.Perceived Quality GapThe customers’ expectations exceed the service provided.
  16. Management Perception GapThere is a disconnect between what managers believe that customers want and what those customers really want.Quality Specification GapThe specification of the service’s quality is deficient meaning that the service delivered is not as expected. The service delivery groups are therefore unable to deliver services to the desired quality.Service Delivery GapThe service delivery groups have the ability to deliver service but do not manage to do so.MarketComms GapThe marketing (or sales) material oversells the service. The customers expectations are set too high and exceed the capability of the service delivery groups.Perceived Quality GapThe customers’ expectations exceed the service provided.
  17. Management Perception GapThere is a disconnect between what managers believe that customers want and what those customers really want.Quality Specification GapThe specification of the service’s quality is deficient meaning that the service delivered is not as expected. The service delivery groups are therefore unable to deliver services to the desired quality.Service Delivery GapThe service delivery groups have the ability to deliver service but do not manage to do so.MarketComms GapThe marketing (or sales) material oversells the service. The customers expectations are set too high and exceed the capability of the service delivery groups.Perceived Quality GapThe customers’ expectations exceed the service provided.
  18. Management Perception GapThere is a disconnect between what managers believe that customers want and what those customers really want.Quality Specification GapThe specification of the service’s quality is deficient meaning that the service delivered is not as expected. The service delivery groups are therefore unable to deliver services to the desired quality.Service Delivery GapThe service delivery groups have the ability to deliver service but do not manage to do so.MarketComms GapThe marketing (or sales) material oversells the service. The customers expectations are set too high and exceed the capability of the service delivery groups.Perceived Quality GapThe customers’ expectations exceed the service provided.