Page 27 - MARKETING & PUBLIC RELATIONS EBOOK IC88

 Costs are often made an excuse for neglecting quality. It costs too much is normally
considered a valid finality, without asking how much is too much? Achieving quality
may be costly, but bad quality could be more costly.
 The cost of not satisfying a customer is difficult to measure? Loss of customer due to
poor service can rapidly erode the bottom lie
 In insurance the law prescribes maximum levels of permissible expenditure. Well
managed companies operate at much lower costs.

(c) The five gaps to be managed
1 There are five critical gaps that may occur affecting the quality of service, which, as stated
earlier, is the difference between expectations and experienced as perceived.

 Gap 1 is between the management’s perception of customer’s expectation and
customer’s expectations.
 Gap 2 is between MCE and the product benefits as designed. The management tries
to incorporate into the service product elements that would meet the needs as
understood.
 Gap 3 is between DPB and the actual product benefits as delivered. This happens
because of incompatibility between different parts of systems, modifications, and
errors dring actual rendering of service.
 Gap 4 is between APB and the communicaton of the service benefits to customers.
 Gap 5 is between the perception of actual experience (pae) and Ce.

E. Responsibility for quality

(a) Senior management responsible
 Often there is a tendency to say that quality has to be managed by those out there
at the front
 Even for the remaining 20% or less caused by people at cntact npoints
 An agent represents the insurer. The management has to take responsibility for
what the agent says and does at the premises of the prospect.
 Training for an agent doesnot consists of only communication of the technical
details of the policy contract.

(b) Keeping customer out
 In the case of service, the customer is very much part of the process of making the
product.
 Avoidance of customers out from the process has to be balanced with his needto
know – the factor of being informed or communication

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