MANAGEMT7104 Marketing Management

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MANAGEMT7104 Marketing Management

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MANAGEMT7104 Marketing Management

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Course Code: MANAGEMT7104
University: The University Of Adelaide

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Country: Australia

Question:

Critically evaluate how research based on the gap model of service quality has evolved over time , and how it is useful in in understanding customer relationships with organisations. Illustrate your answer with real life examples.As a guide you should:1. Review the academic literature on the gap model of service quality.2. Review what is meant by customer relationships using academic literature.3. Evaluate the connections between the gap model and customer relationships using academic literature.4. Illustrate throughout your answer the theory of gap model and customer relationships using examples.

Answer:
1. Literature Review for SERVQUAL gap Model over the years
Shahin.A(2010). Developing the Models of Service Quality Gaps: A Critical Discussion. Business Management and Studies, Macrothink Institute. Viewed on Aug 16, 2018. https://pdfs.semanticscholar.org/4c7a/0af8d73395a9621dcc6fba0981bcfaaf5f95.pdf
Stakeholders participating in the process of delivering and receiving services play a crucial role. The Traditional gap models including the SERVQAL models can leave some dark areas, says Arash Shahin (2010). This essay also explores the SERVQUAL model beyond the traditional components like knowledge gap, standard gap, delivery gap, communication gap and finally the service gap. 
The service quality strategy and planning plays a crucial role in the implementation of the SERVQUAL gap model (Crefeld, 2011). This piece of literature advocates the implementation of some quality improvement plans on consistent intervals where they can keep a check and balance on certain gaps that might occur during the course of the implementation of the primary plan.
This paper also presents an account of various functional service gap models that were developed during the last two decades. In the terms of capturing the history of the evolution of SERVQUAL gap model, we can see a list of conceptual models that made an entry because of an increase in the customer expectation levels and straight line communication protocols between the makers and the last mile users. 
Yarimoglu.E. A Review on Dimensions of Service Quality Models. Journal of Marketing & Management ARIPD. Viewed on 14th August. https://jmm-net.com/journals/jmm/Vol_2_No_2_June_2014/5.pdf
Author Emel Yarimoglu addressed various issues connected to the gap models from its very core. It is the area where a company or a produced declare their commitment for the quality. This piece of the literature covers the journey of gap models like SERVQUAL and others with the help of a change in the method of measuring the quality perception.
During the era of the 70’s security, consistency, physical quality of the product, interactive qualities of the service providers and the training of the service providers were the key components to ascertain the gaps. However, with a passage of time SERVQUAL experts and other gap model experts started using the metrics of Technical Quality, Functional Quality and Corporate image.
Marketing can be termed as the fountainhead of the exercise of service quality models. It all starts with a promise and ends on delivering the same promise. The arrival of the terms like the corporate image in the vocabulary of gap models like SERVQAL and others is a significant evolution in the active history of the gap model implementations (Ali, 2016).
Nargunde.A. Service Gaps. International Journal of Management. Viewed on 14th August. https://www.iaeme.com/MasterAdmin/uploadfolder/IJM_07_05_011/IJM_07_05_011.pdf
Associate professor Dr. Amarja Nargunde( 2016) says that after the arrival of direct communication channels most of the gap models, SERVQUAL precisely saw a simplification in their approach. Now we can divide stakeholders connected to the maintenance of the service into two brackets. First, we have active service providers playing a key role. Second, we have passive service providers taking care of the easy tasks associated with the process. Registering a complaint and forwarding it to the right department is an easy task. Rectifying the complaint and winning excellent feedback is a tough job (Bryson, 2016).
 
(Image source: https://sidlaurea.com/2014/10/24/gaps-with-cultural-twist/)
According to Dr. Amarja Nargunde, it is a simple chain that starts with the perception and expectations and ends on customer loyalty. The gap between external communication between the customer and the expected services are of paramount importance in this case.  Gap 2 and Gap 3 are manageable with the help of a check and balance exercise. However, the gap 4 and gap 5 may demand the services of a specialized campaigner. On the scale of SERVAQUAL, empathy and responsiveness are two items that become crucial in this case. The sum of empathy and responsiveness adds to the total of the reliability (Zeithami, 2010).
Manna.R, Singh.A, Bhargva.M. Assessing service quality gap and customer satisfaction for predicting the success of customer Reference.  AIMA Journal of Management and Research. Viewed on 14th August. https://apps.aima.in/ejournal_new/articlesPDF/5397_assessing_service.pdf
The success or the failure of SERVQUAL or any other gap model can be measured in the terms of the referrals that a company wins after winning the loyalty of a customer. The author of this piece of literature signifies the importance of the Parasuraman gap model. It is a composite gap model that can be applied with a mathematical precision of various systems and establishments practicing the theories of gap model (Lalit Wankhede, 2010).
Management’s alignment with the customers’ expectations plays a vital role. This alignment ensures a consistent flow of quality services to the customers. For the management, it translates into a kind of brand loyalty in the end.
The method of SERVAQAUAL has its shortcomings when we check it in many industry sectors where the tangibility of the products is high. Tangibility or the intangibility of the products set some dimensions for the exercise of an accessing the services with the help of gap models. For instance, the creation of some tangible means to attain the intangible dimensions of care and attention can make a difference (Lau, 2013). If a regular bank offers you excellent sitting facility while you are waiting for your order. During this span, if they offer you tea or coffee. Then it is an example of showing care with the help of tangible means.
Ali. M, Raza.S. Measurement of Service Quality Perception and Customer Satisfaction in Islamic Banks of Pakistan: Evidence from Modified SERVQUAL Model. MPRA. Viewed on 14th August. https://mpra.ub.uni-muenchen.de/64039/1/MPRA_paper_64039.pdf
SERVAQUAL model has a versatile framework to address various types of requirements when it comes to judging any given service gap present in a system. The case of Islamic banks is an interesting case. Due to the religious restrictions, Islamic banks cannot promise anything that can raise a standard for consumer satisfaction. It is the same with the deliverance of the services. However, in the absence of standard metrics of measuring satisfaction levels, certain new terms like  Mubarah ( Profit Sharing), Wadiah ( safekeeping) and  Murahba ( cost plus) become the metrics of consumer satisfaction. 
According to the study done by Muhammad Ali (2015) and S Raza( 2015). The six dimension model of SERVQUL is applicable in this case. Customers will never show their displeasures with the services offered by an Islamic bank, however, we can judge their views on certain indirect tools like Likert scale. As a gap measurement model SERVQUAL accommodates such findings with ease deliver great results.
2. Customer Relationship under the purview of various literary works
In the current business environment where communication between the customer and the producer has become easier, terms like customer relationship have found a new meaning for them. When we check the new definition ahead of the service gap models then we find two new keywords. These keywords are Customer relationship management and wheel of loyalty (Jochen, 2016).
Let’s check the dimensions of a SERVQUAL model all again. Under the new theories, this dimension emphasizes more on the importance of the corporate image of the brand. Unlike many other wheels, big corporate houses don’t want a shift in the wheel of the loyalty. The wheel of the loyalty directly corresponds to the changing needs of the customers (Borges, 2009).
Service Gap Models like SERVQAL and others are playing a crucial role in this exercise. The chain dealing with the customer feedbacks and other issue has become an important part of the marketing exercise now. While keeping a check on the inflow of the complaints of the customer’s many companies are finding great opportunities to convert their customers into repeat customers.
Dr. Mallika Srivastva ( 2012), in her research paper” Customer Relationship Management (CRM): A Technology-Driven Tool” mentions that the exercise of the service gap finding and the removal of these gaps have become an exercise equivalent to the marketing or advertising efforts. CRM has become a technology-driven tool. The technological edge clubbed together with old practices like SERVAQUAL solutions are now forming a component that can easily be accommodated in a marketing mix (Srivastva, 2012).
The application of SEVAQUAL model in the case of Nokia was a failure because it was not corresponding to the changing weathers of the market. There are two very important factors that one has to keep in the mind. First, the expectations of the customers are changing drastically. They are exposed to information like never before. The reach of the gap management models should accommodate customers as the partners for the development of the next line of the products and the services surrounding them (Garcia, 2014). Models like SERVQUAL may go for a paradigm shift in this scenario. The findings of the literature review in the previous section give us interesting keywords like technology quality, functional quality, and corporate image. These three keywords can play a crucial role in the terms of generating brand loyalty and fix the movement of consumer loyalty wheel quite considerably (Wong, 2014).
Author D.Sinha ( 2016) does not fulfil many attributes of academic writing in his source, however, we are mentioning him as a bridge to support the evidence that we are presenting in this study. The gap in knowledge is an important dimension in any given SSERVQUAL or any other service gap measurement model. The precise definition says that this dimension corresponds to the flow of knowledge in the pipeline which is connecting all the stakeholders and the gap areas in the model. Author D.Sinha( 2016) with the help of the case of Nokia brings in a different picture in front of us. This picture says that the dimension of the gap management should be extended to an upper layer where consumers should be motivated to talk with the help of openly ended feedbacks. 
3. Formation of an explicit relationship between the gap model of service quality and Relationship marketing
The marketplace is changing, after the arrival of big data solutions; new metrics of CRM based indicators and new standards of service quality as defined by the external market reports and internal feedback system (Wang, 2016). It is implied that the relationship between these three streams is getting cordial in the terms of the effective results and complex in the terms of calculating or the processing. While having a look at the CRM related literature we figured out that CRM experts are recommending the findings of the gap model of service quality as another indicator in the formation of the marketing mix (Chan, 2014).
Most of the mobile companies are launching upgraded versions of their mobiles, under the current markets where the culture of the repairs is almost over. Most of these companies are ready to exchange old faulty phones with upgraded versions. Sometimes their phones may fall short on the scale of the performance; even then if the service quality given by the company is good then the customers are happy to retain the products from the same services. On a subconscious level company is presenting a deal to the customer that is catering to his future needs. This practice of retaining an old customer with the help of an upward integration is becoming the next big strategy in the market of CRM or customer relations management (Raymond P Fisk, 2013).
Many companies are now coming up with some business models where they are planning to introduce customer as the partner in the process of the business. On a theoretical level, it seems that we are declining the traditional definition of the partnerships. However, this new arrangement is defining new roles for the service gap measurement models like SERVQUAL and others. Under this new role, they have to identify the customers under a new light.
The summation of this argument also gives us two important points of views. The history says that removing or minimizing the gaps is a positive exercise for the retention of the customer. The current theories say that corporate image covers one-third of the pie when we break down the lists of the causative factors connected to consumer satisfaction (Lamb, 2012).
4. We need to understand the new pipeline of the marketing from a different perspective. Under this pipeline, CRM is playing an important role because it is closest to the planning of the product and marketing mix. It is dictating the tasks and the guidelines to the other departments. This department is sharing its major burden with Service Quality gap models. The reason is visible, service quality is the closest experience that a consumer can feel and frame an opinion about the corporate image associated with the product (Gaurav Gupta, 2012). We cannot undermine the role of the big data in this new responsibility matrix. Big data is playing the role of bricks in the foundation of the process. Under an ideal setup, companies are changing their data collection variables in accordance with the internal feedbacks of the customer satisfaction levels and external feedbacks of the CRM machinery (Urban, 2010).
Under the light of the new practices and the theories, they have to keep a check on the priorities of the customers and treat their priorities as a constantly changing variable. Models like SERVQUAL and others have this capacity to accommodate the competition which is changing the equations connected to the consumer demands. It is not anymore an internal design anymore. For instance, we can take the example of Nokia. It was working fine. Consumers were happy because the products were delivering what they were promising. However, the company failed in the end because the market and the needs of the customers were changing (Sinha, 2016).
During the course of an essay, we gave the example of Islamic bank in Pakistan. This example can be the best vehicle to understand the importance of service gap measurement models and CRM. Islamic bank cannot raise expectations of the customers. Any attempt to lure the customers will be considered as a sin. However, as a banking institution working in an economy, they are bound to make a profit. Even the religious doctrines also instruct them to make a profit. They are required to invest money in some proposals where they can make money. However, they cannot publicize this fact. Their customers cannot question the profits and the privileges that they are going to gain out of it.
The presence of a model like SERVQUAL and others with the help of Likert scale tells us the importance of the exercise. Another example that we would like to bring out this essay is about the tangibility connected with some intangible metrics. For instance, offering a coffee in a waiting lounge shows that you care for your customers. This simple sense of caring can add a new tangent in the customer experience when they are on board with you and expecting something more they what they have promised to you (Kurniati, 2011).
On the bottom line, we can say that finding and removing service gaps has become a marketing based exercise. It has a deeper meaning in the process of customer retention. The current business models are certainly seeking for an active participation of the models like SERVQUAL and others. The institution is in a constant demand for such types of solutions. The introduction of the big data machinery in the process is making it a continuous process for the organizations.
Bibliography
Ali, G. (2016). Marketing in the Cyber Era: Strategies and Emerging Trends: Strategies and Trends. Hershey USA: IGI Global.
Ali. M, Raza.S. Measurement of Service Quality Perception and Customer Satisfaction in Islamic Banks of Pakistan: Evidence from Modified SERVQUAL Model. MPRA. Viewed on 14th August. https://mpra.ub.uni-muenchen.de/64039/1/MPRA_paper_64039.pdf
Borges, B. (2009). Marketing 2.0: Bridging the Gap Between Seller and Buyer Through Social. Tuscon: Wheatmark.Inc.
Bryson, J. (2016). Managing Information Services: An Innovative Approach. Abingdon: Routledge.
Chan, J. O. (2014). Big Data Customer Knowledge Management. Communication of the IIMA Vol 14, Viewd on 15th August. https://core.ac.uk/download/pdf/55334441.pdf.
Crefeld, D. (2011). Identifying and Correcting Service Quality Problems by Applying the GAP Model. Munich: GRIN Verlag.
Garcia, R. (2014). Creating and Marketing New Products and Services. Florida: CRC.
Gaurav Gupta, H. A. (2012). Improving Customer Relationship Management using data mining. International journal of machine learning and computing. Viewed  14th August. https://www.ijmlc.org/papers/256-L40070.pdf.
Jochen, W. (2016). Winning In Service Markets: Success Through People, Technology And Strategy. Singapore: World Scientific.
Kurniati, R. (2011). The Effect of Customer Relationship Marketing (CRM) and Service Quality to Corporate Image, Value, CustomerSatisfaction, and Customer Loyalty. European Journal of Business and management, Vol 7, Viewed  14th August. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.735.5130&rep=rep1&type=pdf.
Lalit Wankhede, B. d. (2010). Quality Uncertainty and Perception: Information Asymmetry and Management of. New York: Springer.
Lamb, C. W. (2012). Marketing. Boston: Cengage Learnings.
Lau, M. M. (2013). Measuring Service Quality in the Banking Industry: A Hong. Contemporary Management Research Vol 9, 263-282.
Manna.R, Singh.A, Bhargva.M. Assessing service quality gap and customer satisfaction for predicting the success of customer Reference.  AIMA Journal of Management and Research. Viewed on 14th August. https://apps.aima.in/ejournal_new/articlesPDF/5397_assessing_service.pdf
Nargunde.A. Service Gaps. International Journal of Management. Viewed on 14th August. https://www.iaeme.com/MasterAdmin/uploadfolder/IJM_07_05_011/IJM_07_05_011.pdf
Shahin. A ( 2010). Developing the Models of Service Quality Gaps: A Critical Discussion. Business Management and Studies, Macrothink Institute. Viewed on Aug 16, 2018. https://pdfs.semanticscholar.org/4c7a/0af8d73395a9621dcc6fba0981bcfaaf5f95.pdf
Raymond P Fisk, S. J. (2013). Services Marketing Interactive Approach. Boston: Cengage Learning.
Sinha, D. (2016). India Reloaded: Inside India’s Resurgent Consumer Market. Berlin : Springer .
Srivastva, M. (2012). Customer Relationship Management (CRM): A Technology-Driven Tool. Research Papers 2 Volume 4, viewed 14th August.https://www.sibm.edu/assets/pdf/customerrelationshipmanagement.pdf.
Urban, W. (2010). Service quality gaps and their role in service enterprises development. Technological and Economic Development of Economy,Viewed 14th August. https://www.tandfonline.com/doi/pdf/10.3846/1392-8619.2009.15.631-645.
Wang, L. (2016). The New Trend and Application of Customer Relationship Management under Big Data. Modern Economy, Scientific Research Publishing, viewed 14th August. https://file.scirp.org/pdf/ME_2016072613221735.pdf.
Wong, K. K. (2014). Approved Marketing Plans for New Products and Services. Bloomington: Iuniverse .
Yarimoglu.E. A Review on Dimensions of Service Quality Models. Journal of Marketing & Management ARIPD. Viewed on 14th August. https://jmm-net.com/journals/jmm/Vol_2_No_2_June_2014/5.pdf
Zeithami, V. A. (2010). Delivering Quality Service. New York: Simon & Schuster.

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