Today’s Agenda Course Plan Review Why Study Services? Gap Model – Structure of the Course

Why Study Services Marketing? Services dominate the global economy Most new jobs are generated by services Understanding services offer personal competitive advantage

Why Study Services Marketing? While we live in a service driven economy most business schools continue to teach marketing from a manufacturing perspective Services Dominate the Economy in Most Nations – Nepal GDP - composition by sector agriculture: 36.8% industry: 14.5% services: 48.7% (2014 est.) US GDP - composition by sector agriculture: 1.12% industry: 19.1% services: 79.7% (2014 est.)

Why Study Services Marketing? Most New Jobs are Generated by Services Since the service sector is growing so rapidly in virtually all countries around the world, new job creation comes mainly from services Some of the fastest growth is expected in knowledge-based industries – such as professional and business services, education and health services.

Why Study Services Marketing? Understanding Services Offer a Personal Competitive Advantage The probability is high that you’ll spend most of your working life in service organizations (or as a volunteer or board member in non-profit organization) so in-depth understanding of the subject will give you a personal competitive advantage. May be the knowledge gained from studying this book will even stimulate you to think about STARTING YOUR OWN SERVICE BUSINESS Products today have a higher service component than in previous decades. This is referred to as the servitization of products.

The Gaps Model of Service Quality

The Gaps Model of Service Quality The Customer Gap The Provider Gaps: Gap 1 – The Listening Gap not knowing what customers expect Gap 2 – The Design and Standards Gap not having the right service designs and standards Gap 3 – The Performance Gap not delivering to service standards Gap 4 – The Communication Gap not matching performance to promises Putting It All Together: Closing the Gaps

The Customer Gap

Key Factors Leading to the Customer Gap Customer Expectations Customer Perceptions

Company Perceptions of Consumer Expectations Provider Gap 1 CUSTOMER Expected Service Perceived Service COMPANY Gap 1: The Listening Gap Company Perceptions of Consumer Expectations

Key Factors Leading to Provider Gap 1

Provider Gap 2 CUSTOMER COMPANY Customer-Driven Service Designs and Standards Gap 2: The Design and Standards Gap Company Perceptions of Consumer Expectations

Key Factors Leading to Provider Gap 2

Service Designs and Standards Provider Gap 3 CUSTOMER Service Delivery COMPANY Gap 3: The Performance Gap Customer-Driven Service Designs and Standards

Key Factors Leading to Provider Gap 3

Gap 4: The Communication Gap External Communications to Customers Provider Gap 4 CUSTOMER Gap 4: The Communication Gap External Communications to Customers COMPANY Service Delivery

Key Factors Leading to Provider Gap 4

Gaps Model of Service Quality

Five Questions to Think Over for Next Class Discussion Is Nepal already in the service economy? Yes or No Justify your answer with data. Do you normally consider the service of private institutions in Nepal good or bad? What is the reason behind it? What is your service experience with the public institution of Nepal? Why things are happening that way? What to you think about Nepali service culture? Can service culture be taught, if yes how? Think from organizational perspective and our general life perspective. Can service be the differentiating factor in an organization? What is its contribution in brand building? Do proper research to answer these questions, substantiate with data and examples. Don’t give random answers.

Thank you!