HARVARD SAMPLE Marketing And Services Management

Marketing and Services Management 1

Marketing and Services Management

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Marketing and Services Management 2

Marketing and Services Management

Introduction

Service provision and goods production are the two forms in which businesses take place.

Goods can be subjected to various processes to determine the quality of output. On the contrary,

there are minimal ways of establishing the quality of services offered. One of the primary

techniques of analyzing the quality of service provided is the service quality or gap model

commonly (SERVQUAL). When dealing with services, customer satisfaction is usually a critical

issue. A cordial relationship between clients and the organization plays a crucial role in

enhancing satisfaction. Customer relationships (CR) defines how a company connects to its

clients. When these relationships are managed correctly, it becomes possible for both parties to

benefit. For instance, customers would get value for their money as the company enjoys a higher

profit margin due to increase in sales. The connection between gap model and CR is highlighted

in the paper. The strength and weaknesses of SERVQUAL are also elaborated.

The Gap Model of Quality Service

In recent years, service quality has garnered attention amongst many researchers and

managers because of its strong effect on organizational presentation, customer contentment and

loyalty, and the subsequent profit margins. An accurate and valid measure of service quality is

beneficial in every business since it evaluates performance and hence an opportunity to adopt

corrective techniques when necessary. The Service quality or gap model commonly abbreviated

as SERVQUAL is acknowledged as an essential technique for analyzing service quality. It was

wished-for that service quality is a role of the differences between expectation and performance

regarding value (Parasuraman, Zeithmal and Berry, 1985, p. 43). The writers identified ten

Marketing and Services Management 3

primary attributes of service eminence including reliability, responsiveness, competence, access,

courtesy, communication, credibility, security, understanding and other tangibles (Seth and

Deshmukh 2005, p. 917). Three years later, in a sequel scale, the ten components were merged

into five significant dimensions including reliability, assurance, tangibles, empathy, and

responsiveness. The SERVQUAL model is based on perceptions and expectations, that is,

consumers assess service quality by comparing what they expect to how it is provided. In this

regard, high-quality services mean a high degree of conformity to customers’ expectations on a

regular basis. To measure quality service, it is necessary to compare consumers’ before-service

expectations and their service experience. Based on the approach’s conceptualization of service

quality, a scale was developed that evaluates expectations and perceptions of experience

concerning 22 items that represent the five core service quality dimensions.

Service quality can also be considered as a means of “closing the gap” that exists

between expectations and perceptions of service provided. Research showcases several gaps that

underline consumer expectations and perceptions (Parasuraman, Zeithmal and Berry 1985, p.

43). The first gap is the knowledge gap that indicates the differentiation between clients’

expectations and supervision view of what customers expect as not knowing consumer

preferences creates a gap. The second gap relates to the difference between managers’

perception of consumers’ expectations and service quality terms which often illustrate improper

service-quality standards, for instance, an ambiguous service design. The third gap is linked with

the delivery of the service values often due to distinctive variations’ between the specification

and what is delivered. The fourth gap indicates the mismatch of promises and delivery, whether

the organization offers whatever it communicated to the consumers. The fifth gap is related to

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the four and entails not delivering the perception that is perceived by the consumers the basis of

the model.

Digital marketing is one of the most influential concepts in the businesses across the

globe since the dawn of the 21st century. Some of the primary forms of digital marketing that

are utilized by most corporations include social media platforms, the internet, and electronic

billboards. The first gap in the SERVQUAL model can be explained using digital marketing. In

real life, companies use the digital marketing platforms to achieve an extra goal of filling the gap

between consumers’ expectations and the firms’ ability to meet the preferences. For instance,

through social media and companies’ websites, it is possible for the management to follow up on

what the clients expect and also get responses regarding the failure to meet these needs.

Therefore, it becomes possible for the administration to adjust and work towards achieving the

customer preferences. The third gap that relates to the variations in specifications of the service

standards and the actual delivery can also get an illustration from the digital marketing world.

For example, electronic billboards are widely used in malls and company offices to enlighten the

public on the specific services provided. Through this platform, the standards of the services are

highlighted, and the immediate response from the consumers portrays the actual delivery.

Strength and Weaknesses of SERQUAL

Strength

In the current society, there are various models used for ranking the levels of service

quality. Despite the apparent options, practitioners value SERVQUAL, and it has been a

significant generic model. SERVQUAL can be used as often as necessary to monitor customer

perceptions of service quality of a specific organization as compared to other models of

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measuring service quality. Additionally, once the data has been analyzed, it can be quickly

presented virtually in efforts to identify the firm’s current strengths and weaknesses. As

mentioned, the model has five core components including reliability, assurance, tangibles,

empathy, and responsiveness (Shahin and Samea 2010, p. 6). These aspects provide an

opportunity for the analysis of a organization’s service value performance on the center of

specific dimensions in addition to the overall results achieved by the accumulation of each

component. Furthermore, the scale was designed to measure an individual consumer’s

expectations and perception of experience. Therefore, it allows the classification of consumers in

a market into different segments depending on their own scores.

SERQUAL can be applied in different service industry settings since it outlays a

fundamental structure that can be modified to varied specifications of a particular firm. Indeed,

research indicates the gap model is applicable in different empirical context and diverse cultural

backgrounds (Wang and Tang 2003, p. 23). Moreover, the approach is not only logical, but it is

also straightforward since it analyzes the difference between two concepts that have been

acknowledged to drive business performance. Concerning digital marketing, using SERQUAL

allows a company to investigate the customers’ expectations through social media. It also gauges

if the firm is responding to clients’ demands appropriately when they give feedback.

Another fundamental strength associated with the model is its reliability and validity.

SERVQUAL is an approach that has been tried and tested and is often used comparatively with

other service quality models for benchmarking purposes. Undeniably, SERVQUAL benefits

from being a statistically valid instrument due to the extensive research, practical testing and

refinement of the past three decades.

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Weaknesses

Despite the extensive use of SERVQUAL, several theoretical and operational criticism

has been put forth. One of the limitations of the model is its applicability to the service industry

only hence not appropriate for firms that deal with tangible products. In the modern world,

digital marketing has enabled both service providers and merchants who deal with goods to

advertise on the same online platforms. For example, fashion houses and motor vehicle dealers

display their products on their web pages and even on social media. Therefore, there is also need

for more models that analyze quality in the goods production industry. Indeed, SERQUAL

concentrates on service provision rather than physical technologies associated with digitalization.

Theoretically, critics question the rationality of the model as a general service quality

analysis across various companies in the service sector (Wang and Tang 2003, p. 27). The

revisions and fine-tuning of the SERVQUAL is not sufficient for the task of measuring service

eminence transversely on varied service situations. Additionally, the conceptualization that

consumers’ access service quality by the difference between perception and expectation (P-E) is

questionable since it is evident that expectations often override reality. Critic insists that the main

donor to the effectiveness of the model is the perception of experience due to the generalized

tendency to rate expectations high (Wang and Tang 2003, p. 27). Moreover, consumers often

formulate expectations on the basis of past experiences hence with time past perceptions

reducing validity heavily influences their expectations.

With the modern digital marketing, it is quite apparent that companies will always strive

to create the best impression of what clients should expect to fight the stiff competition.

Technology enables firms to use various editing techniques to create a picture of what to expect

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in the customers’ minds. Unfortunately, the reality barely matches what is received in the long

run due to the excess effort channeled to marketing in this digital error.

SERVQUAL tends to concentrate on the process of service delivery and to an extent

ignores the service encounter while it would be beneficial to use both process and encounter to

assess consumers choices rather than focusing on one or the other. Another problem associated

with the model relates to the five dimensions which are not universal hence the high probability

of inter-correlation between and amongst the components since items do not always fit into the

prescribed factors.

Operationally, critics indicate that the term expectation is not consistent with the concept

of consumption since consumers determine service quality based on standards rather than

expectations (Parasuraman, Zeithmal and Berry 1985, p. 41). The model uses two administration

based on the dimensions and the 22 item scale which results in imperial data quality.

Additionally, the wording in the 22 scale causes reversed polarization which results in a

respondent error. In the 22 items, 13 statements are positive while the nine are negatively

worded. Item wording affects data quality hence creates doubt about the validity of the approach.

Moreover, the 22 items apply the seven-point Likert Scale which has several weaknesses which

have an indirect adverse effect on SERVQUAL.

Customer Relationships

Customer relationships (CR) is defined as the continuous connection between a firm and

its clients. CR entails customer service, marketing communication, and sales support. According

to this model, the relationship between the customers and the company is measured based on the

level of client fulfillment. The cycle of purchases and the subsequent receipt of services or other

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products helps in determining the satisfaction the clients attain. Understanding customer

relationship management and customer relationship marketing assist in comprehending what CR

entails.

Customer Relationship Management (CRM)

CRM is a concept that aims at building a secure connection between businesses and the

clients while the profitability of the firm is enhanced. According to Prachi Juneja (2018),

customer relationship management seeks to achieve this goal through lowered costs and

enhanced productivity. He also notes that the best system of such a management technique is one

that centralizes the organization’s data to provide a real-time representation of client information.

The notion relates to digital marketing in various ways. For example, online marketing platforms

give the updated preferences of customers in real life situations. Therefore, in such cases firms

can enjoy the benefit of having real-time customer demands and preferences which are essential

when making choices for service provision and goods production.

The Components of CRM

Some components define customer relationship management. According to Margaret

Rouse (2018), some critical components of this system include marketing automation, sales force

automation, geolocation technology, analytics, and human resource management. Marketing

automation is a crucial tool since it seeks to automate activities within the business that are

normally repeated so as to make it possible to advertise at various levels. Most forms of digital

marketing can be utilized in this aspect. For example, an organization can opt to use online

purchasing options which would send advertising links to a customer’s email when buying from

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the site. In this regard, a one-time client can be turned into a loyal customer who entirely uses

products from the business.

Geolocation technology is another tool that is critical to creating a good relationship

between customers and companies. In this case, technology is usually utilized to develop

advertisements that rhyme to the physical location of clients. In this modern digital world of

business, GPS applications are employed to create geographically oriented marketing. For

example, social media sites such as Instagram give users the option of turning their locations on

while using the platform thus making it possible for interested firms to note the locality of their

prospective buyers.

Other vital techniques that Rouse (2018) suggest include human resource management

and analytics. Rouse notes that an effective customer relationship management system would

trail information of employees such as performance reviews and contacts to enable the company

make its workforce productively connect with customers. With regards to analytics, a perfect

analysis of the details of the system users aids in structuring a reliable client satisfaction ratings

(Rouse 2018). In real life, companies can analyze the reviews given by their customers on the

digital marketing platforms to determine the level of satisfaction of these clients.

Aspects of Customer Relationship Oriented Marketing

The primary goal of the CR system is to create a good relationship between the clients

and companies through quality production and provision, while also maintaining a significant

profit margin for the business. Therefore, marketing comes in as a critical point when talking

about CR since it acts a bridge between the providers and the buyers. Parachi Juneja (2018)

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highlights some vital digital marketing aspects based on CR. Some of the techniques he notes

include web marketing, emails, and analysis of online buying habits of customers.

The current trend of businesses developing websites has boosted the rate at which online

transactions are done. Today, most sales entailing supplies and purchases are shifting to the

online platform since most of the details can be handled on company websites (Jeneja 2018).

Online shopping has also become rampant with firms such as Amazon and E-Bay becoming

famous due to their online deals. The inexpensiveness and the broadness of web marketing make

it a reliable technique for enhancing customer satisfaction and company profitability.

The use of emails presents another form of digital marketing. According to Jeneja (2018),

this form of advertising is more effective yet affordable comparatively. He compares emailing to

phone calls and posting of mails which are expensive especially when a pool of prospective

buyers are targeted. Additionally, emails are considered a form of direct marketing where it is

nearly guaranteed that the intended population receives the information sent. It is also highly

reliable because it is not subjected to alterations as it is the case in some channels.

Analyzing the online buying habits of clients is another key aspect of marketing utilized

in the customer relationships management systems. The analysis would enable a corporation to

determine the brands that specific clients or a particular group of customer tend to buy in

particular rates as presented by the outcome of the analysis (Jeneja 2018). For example, digital

marketing sites such social media and company websites can be studied to check the products

that particular buyers purchase and thus help in making a statistical preview. According to Jeneja

(2018), the history of a client is a useful tool in establishing the probability of the future buying

patterns. In the long-run, a company would satisfy its customers’ demands by producing and

providing the exact quality that is expected in the market.

Marketing and Services Management 11

Connections between Gap Model and Customer Relationships

The first key area where the gap model of quality service connects to customer

relationships is concerning the goals of the both. The SERVQUAL model’s key objectives

include customer satisfaction and enhancement of organizational performance. The models

attributes include reliability, responsiveness, competence, access, courtesy, communication,

credibility, security, understanding and other tangibles (Seth and Deshmukh 2005, p. 917). On

the other hand, customer relationships (CR) also seek to improve how companies relate to their

clients while enhancing the profit margins. Therefore, the two have a similar objective of

satisfying both the buyers and providers of the services or goods.

Secondly, the SERVQUAL seeks to determine the expectations of the clients as it needs

this information when defining satisfaction. From the other end, customer relationship

management offers a platform where existing and prospective customers can express what they

expect. For example, potential buyers can post a message on the company’s website regarding

their needs. Indeed, the two models operate at the same level as they both seek to establish

expectations of customers.

The customer relationship management system has an end objective of enhancing the

firm’s productivity as well as improving the experience of the clients. Prachi Juneja (2018) notes

that the system seeks to achieve this goal through lowered costs and enhanced productivity. On

the other hand, the SERVQUAL model also needs to determine the customer service experience

for measuring the quality provided. Parasuraman, Zeithmal and Berry (1985, p. 43) argue that the

variation between expectations and understanding presents the level of quality of the service

provided. CR provides the management with the real-life experiences of customers, while

SERVQUAL uses these findings to establish the rate of quality of the service.

Marketing and Services Management 12

Conclusion

The gap model has been a useful technique for measuring the quality of service that

businesses offer to clients. It works with the notion that the difference between the expectations

of buyers and the actual experiences determines the rate of service quality. This model,

commonly referred to as SERVQUAL, has the strength of fitting in various industries given that

it is presented in a basic structure. However, it also faces a common challenge of the fact that it

is presumed that in most cases expectations would overshadow what real-life situations offer.

Customer relationships (CR), on the other hand, plays a fundamental responsibility of connecting

clients to the company in a productive way for both parties. The invention of digital marketing

has made it easier to adopt both the gap model and customer relationship management since such

tools create a platform where real-time reactions and responses are recorded. SERVQUAL and

CR are both fundamental elements for a business to strive in the service provider industry.

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References

Juneja, P., 2018. Customer relationship management (CRM) and marketing. [Online] Available

at: https://www.managementstudyguide.com/crm-marketing.htm [Accessed 05/03/2018].

Parasuraman, A., Zeithmal, V. A. & Berry, L., 1985. A Conceptual Model of Service Quality

and its Implications for Future Research. Journal of Marketing, Volume 49, pp. 41-50.

Parasuraman, A., Zeithmal, V. A. & Berry, L., 1988. SERVQUAL: A Multiple Scale for

Measuring Consumer Perceptions Of Service Quality. Journal of Retailing, 64(1), pp. 12-

40.

Rouse, M., 2018. Customer relationship management. [Online] Available at:

http://searchcrm.techtarget.com/definition/CRM [Accessed 05/03/2018].

Seth, N. & Deshmukh, S. G., 2005. Service Quality Models: A Review. International Journal of

Quality and Reliability Management, 22(9), pp. 913-949.

Shahin, A. & Samea, M., 2010. Developing the Models of Service Quality Gaps: A Critical

Discussion. Business Management and Strategy, 1(1), pp. 1-11.

Wang, Y.-S. & Tang, T., 2003. Assessing Customer Perception of Website Service Quality in

Digital Markrting Environments. International Journal of End-User Computing, 15(3),

pp. 14-31.

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