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GAP MODEL OF SCHOOL OF BUSINESS
Assignment under subject: MKT 662 Services Marketing Strategy
Submitted To
Balaram Bhattarai
Lecturer
Services Marketing
School of Business
Pokhara University, Nepal
Submitted By
Bishnu Prasad Neupane
MBA - 4th Trimester
R. N. 007/2010 Batch
July 2011
Table of Content
Contents Page Number
1. Background/ Introduction 1
2. Theory of the Gaps Model in Service Marketing
2.1 History of the Gaps Model 1
2.2 Theory of the Gaps Model 2
2.3 Applications of the Gaps Model 4
3. School of Business, Pokhara University
3.1 Introduction 6
3.2 Four Gaps in School of Business, Pokhara University 7
3.3 Student Gap 9
3.4 GAP Model in School of Business 10
4. Conclusion and Recommendation 11
1. Background/ Introduction:
Service marketing is inherently different from product or goods marketing. Services
are distinctively characterized by their intangible, heterogeneous, inseparable and
perishable nature. A service marketer builds his marketing strategies on five service
quality dimensions to attain and sustain customer loyalty and zero defections. In
marketing dictionary, it is known as RATER:
•Reliability refers to the ability to perform the service accurately and dependably.
•Assurance relates to knowledge and accuracy of employees and their ability to
convey trust and confidence to the customers.
•Tangibles refer to the appearance of physical facilities, equipments, personnel and
communication materials i.e. physical evidence of facilities.
•Empathy refers to dealing with customers in a caring and individualized manner.
•Responsiveness is the willingness to help customers and provide prompt service.
If a service marketer hesitatingly on any of these grounds, it creates service quality
gaps in an organization. Service quality is essentially perception of service, minus
expectation of service by the customer.
Service Quality Gap Model Zeithaml, and Berry (1985) constructed the famous
Service Quality Gap Model to determine and analyze gaps between expected and
actual levels of service performance.
2. Theory of the Gaps Model in Service Marketing
2.1 History of the Gaps Model
The gaps model of service quality was first developed by a group of authors,
Parasuraman, Zeithaml, Berry, at Texas A&M and North Carolina Universities, in
1985 (Parasuraman, Zeithaml & Berry). Based on exploratory studies of service such
as executive interviews and focus groups in four different service businesses the
authors proposed a conceptual model of service quality indicating that consumers’
perception toward a service quality depends on the four gaps existing in organization
– consumer environments. They further developed in-depth measurement scales for
service quality in a later year (Parasuraman, Zeithaml, Berry, 1988).
2.2 Theory of the Gaps Model
Perceived service quality can be defined as, according to the model, the difference
between consumers’ expectation and perceptions which eventually depends on the
size and the direction of the four gaps concerning the delivery of service quality on
the company’s side (Fig. 1; Parasuraman, Zeithaml, Berry, 1985).
Customer Gap = f (Gap 1, Gap 2, Gap 3, Gap 4)
The magnitude and the direction of each gap will affect the service quality. For
instance, Gap 3 will be favourable if the delivery of a service exceeds the standards of
service required by the organization, and it will be unfavourable when the
specifications of the service delivered are not met.
Fig. 1: The Integrated Gaps Model of Service Quality
(Parasuraman, Zeithaml, Berry 1985)
The key points for each gap can be summarized as follows:
Customer gap: The difference between customer expectations and perceptions
The service quality gap:
Gap 1:
The difference between what customers expected and what management
perceived about the expectation of customers.
Gap 2:
The difference between management’s perceptions of customer expectations and
the translation of those perceptions into service quality specifications and designs.
Gap 3:
The difference between specifications or standards of service quality and the
actual service delivered to customers.
Gap 4:
The difference between the service delivered to customers and the promise of the
firm to customers about its service quality.
2.3 Applications of the Gaps Model
First of all the model clearly determines the two different types of gaps in service
marketing, namely the customer gap and the provider gaps. The latter is considered as
internal gaps within a service firm. This model really views the services as a
structured, integrated model which connects external customers to internal services
between the different functions in a service organization. Important applications of the
model are as follows:
Fig. 2: The 10 determinants of service quality (Parasuraman, Zeithaml, Berry, 1985).
1. The gaps model of service quality gives insights and propositions regarding
customers’ perceptions of service quality.
2. Customers always use 10 dimensions to form the expectation and perceptions
of service quality (Fig. 2).
3. The model helps predict, generate and identify key factors that cause the gap
to be unfavourable to the service firm in meeting customer expectations.
The model provides a conceptual framework for academic and business researchers to
study the service quality in marketing.
3. School of Business, Pokhara University
3.1 Introduction
The School of Business (SOB) was established in 1999 with the vision of developing
into a premier institution to prepare youth to face the growing challenges of the
business world, as well as to become creative and productive individuals.
Within the School, there are two Bachelor’s programs ; the Bachelor’s of Business
administration (BBA) and the Bachelor’s of Business Administration in Banking and
Insurance (BBA-BI) and one graduate program, the Trimester Master’s degree in
Business Administration (MBA).
Both the BBA and the BBA-BI undergraduate programs are designed to produce
professionals for entry-level managerial positions. The curriculum provides students
with both a sound conceptual foundation and the practical skills needed in various
areas of business, as well as in the non-business sectors.
Master’s Degree in Business Administration:
The School’s MBA program develops distinguished managers/entrepreneurs through
a rigorous management curriculum taught by case method and a variety of
instructional approaches in the classroom, as well as through internships in various
fields. The degree provides students with a number of options in which to specialize,
such as Finance, Management Science, Marketing, Human Resource Management,
and General Management. Throughout the trimester MBA program, students learn
management competencies and innovative approaches that are valuable to any
organization, be it in the business or non-profit realm.
While the School of Business Administration maintains its strong focus on teaching
and learning, it is gradually emerging into a well-managed research-based institution
that effectively prepares students for ongoing advanced study. The School is proud of
its graduates, as well as its successful record in placing its students in positions in the
leading organizations around the country and abroad.
The researcher is focusing mainly on the gap model of provider’s commitments and
MBA student’s perceptions.
3.2 Four Gaps in School of Business, Pokhara University
Gap 1 – Not knowing what the students expect
This gap occurs when services expected by students do not match with PUSOB’s
perception of student’s expectation.
Or Student’s expectation - PUSOB’s perception of student’s expectation.
Causes for Gap 1
I Inadequate research on market research on what the student, and society need and
want from PUSOB.
I Even if there is any research on this objective, it is not focused on quality of the
services offered in the PUSOB campus.
I Lack of interaction between College and students, and between college and
corporate world.
I Insufficient communication between students and professors, professors and
administration, and student and administration.
I Too many procedural layers between the front –end employees and board of
management.
I Lack of CRM (Customer relationship management) with the students.
Gap 2 – Not selecting the right service design and standards –
College’s perception of student expectation does not match with student – driven
service design and standards.
Causes for Gap 2
I Lack of student driven standards.
I Vague, undefined design of the services to be provided to students and teachers.
I Absence of process (delivery of service) management to focus on student
requirements.
I Absence of formal system for setting service quality.
I Inadequate administration commitment towards the services.
I No systematic process for the development of new courses and placements to be
offered so as to sustain the competition from other established colleges.
Gap 3 – Not delivering to service standards – Student– driven service design do
not match with service delivery.
Causes for Gap 3
I Ineffective recruitment and selection of faculties and non-teaching staff.
I Role ambiguity and role conflict among faculties.
I Inappropriate evaluation and compensation system for faculties.
I Lack of empowerment, teamwork, collaborative research etc.
I Failure to smooth peaks and valley of demand for certain courses.
I Lack of knowledge in students regarding their role and responsibilities.
Gap 4– Not matching performance to promises – Service delivery does not match
with external communication to students.
Causes for Gap 4
I Ineffective CRM to manage students’ expectations about services from the
PUSOB.
I Failure to educate students about their role and responsibilities.
I Insufficient communication between teaching and non-teaching staff.
I Failure to give placements to all students.
I Differences in policies and procedures and their implications.
3.3 Student Gap
This gap occurs due to not knowing what the PUSOB delivers and Students’
expectations of service do not match with student perceptions of service.
Causes for students GAP
I The first impression that the students get while interacting administration and
faculties over phone or in person during admission in to the campus.
I Response of faculties and administration to their failure in service delivery to
students needs and request to problematic students and spontaneity in delivering
memorably good or poor services to students.
3.4 GAP Model in School of Business:
Fig.3 GAP Model of School of Business
4. Conclusion and Recommendation
The gap model of service quality is an important customer-satisfaction framework. It
plays a very important role in improving the quality of School of Business.
Educational process issues can be grouped into main 8 categories, all affect the
teaching process:
1- Teaching methods
2- Workload/ teaching loads
3- Working conditions
4- Staff promotion, performance assessment and accountability
5- Academic staff responsibilities
6- Use of modern educational technology
7- Research development
8- Student activities
Feedback from students regarding the quality of teaching is obtained mostly by filling
the questionnaire that has to be attached to the documents of evaluating the instructor,
for future promotion or upgrading of his/her skills. The students complete
anonymously a survey form. The collected responses are interpreted and the results
delivered to the teachers and the Dean. The feedback from students is an important
part in evaluating teachers as well as in improving the overall quality of the teaching
process.
Strengths of applying quality on the study process are (Recommendations):
1. A great demand for business professionals should be satisfied with producing
skilled, competent and potential students. School should focus in this direction.
2. Highly qualified and professional teaching staff, motivated to further their
knowledge and skills are required.
3. The teaching staff should include practitioners who are experts in their field.
4. Constant student-feedback should be taken, including evaluation of the quality of
teaching.
5. Good contact with corporate sector, training placement reports also provide
feedback for curriculum development.
6. System of individual student counseling helps to advance academic progress and to
motivate learners and this trend minimizes the gap between a student and the School.