Assignment

On

Companies providing best and

worst service quality and
relationship marketing

Subject: Service Marketing

Submitted to:

Submitted by:

Dr. Siddharth Bhardwaj

Ashita singla

Roll no. 17

Mba (f) Sec-A

1.Service quality

Service quality generally refers to a customer’s comparison of service expectations as it relates to

a company’s performance. A business with a high level of service quality is likely capable of
meeting customer needs while also remaining economically competitive in their respective
industry. Successful businesses who remain competitive and relevant in the marketplace work
proactively to obtain information from their current or potential customer base so they can ensure
they are meeting their needs.

2.Model for service quality assessment

I am using GAP model for the assessment of best and worst service providing companies. The
model is basically divided into the business and customer perspective and takes also the
influence of branding and communication into account.
Gap 1: Listening Gap
The listening gap is the difference between customer expectations of the service and company
understanding of those expectations.
Gap 2: Service Design and Standards Gap
Service design and standards gap is the difference between company understanding of customer
expectations and development of customer-driven service designs and standards.

Gap 3: Service Performance Gap

Service performance gap is the discrepancy between development of customer-driver service
standards and actual service performance by company employees.
Gap 4: Communication Gap
Communication gap is the difference between service delivery and the service provider’s
external communications.

3.RELATIONSHIP MARKETING

Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-

term engagement. It is designed to develop strong connections with customers by providing them
with information directly suited to their needs and interests and by promoting open
communication. I adopt Berry’s (1995) labels of financial, social, and structural relationship
marketing programs.

1. Financial Relationship Marketing Programs: These programs include discounts, free

products, or other financial benefits that reward customer loyalty.
2. Social Relationship Marketing Programs: These include meals, special treatment,
entertainment, and personalized information. The resultant social bonds are difficult to
duplicate and may lead customers to reciprocate via repeat sales and recommendations, and
by ignoring competitive offers.
3. Structural Relationship Marketing Programs: These programs increase productivity or
efficiency (or both) for customers through investments that customers would probably not
make themselves.
4.Best and worst companies in service quality and relationship
marketing

Through my knowledge and experience the service company which has best practices is
NETFLIX and the service company proving worst services is UBER.

4.1 BEST SERVICE QUALITY PROVIDER-

ABOUT NETFLIX

Netflix is a streaming service that allows members to watch a wide variety of award-winning TV
shows, movies, documentaries, and more on thousands of internet-connected devices. Members
can watch as much as they want, anytime, anywhere, on any internet-connected screen. The
competitors are Amazon prime, Disney, Hot star etc. In the first quarter of 2020, Netflix had over
182 million paying streaming subscribers worldwide. Netflix gets over 15 million new
subscribers this year due to COVID-19 and lockdown.

Assessment of Netflix service quality with GAP model

GAP 1- LISTENING GAP

Netflix fills the listening gap because of the following reasons-

1. Netflix does customer research and gather customer insights. It uses customer data and
evaluates their experience.
2. It provides with error messages at time of failure and there is live chat box in it.
3. Netflix informs about the new content through customer relationship management as it
meets their demands.
4. Netflix improves the service through 5 star rating as a feedback and personalize the
experience.
5. Netflix gives suggestions as a friend through the app notification and calls customer
through first name.
 GAP 2- STANDARD GAP

Netflix fills the Standard gap because of the following reasons-

1. Netflix is customer oriented as it provides single app use for mobiles, laptops, TV etc and
useful and desirable.
2. It could be used simultaneously on 4 devices thus financially it is good for customer as no
other streaming app do that.
3. It defines different profiles for children or other users with single subscription service.
The languages, subtitles, watch list etc are separated for each profile. Thus have
capability to design the service and are customer driven.

GAP 3- PERFORMANCE GAP

Netflix fills the performance gap because of the following reasons-

1. Netflix is easy to use and it uses technology providing same experience on any devices.
2. It offers tutorials on its YouTube page that how can you use the service and allow
customers to learn for one time and it’s done through their HR.
3. Netflix have high streaming quality
4. In the lockdown period it is continuously adding new series and movies thus matching
demand and supply.

GAP 4- COMMUNICATION GAP

Netflix fills the communication gap because of the following reasons-

1. Netflix has only intension of entertainment and positioned itself as a brand focusing on
specific goals.
2. It provides smart content to customers by Netflix originals as well as buys internet
movies through markets as well.
 3. Netflix stimulates customers to watch the content at least once due to its content selection
and quality and giving previews and ads of its new content.
4. Netflix offers its subscription as Rs. 200 for a month for mobile and also Rs.400 and
RS.800 for larger screens like laptop and TV. It gives free subscription of one month trial
period. The whole assortment is under this fee and no other charges for added services
but Amazon prime ask for other fee for added services.

Assessment of Netflix relationship marketing

1. Financial bonds:
Netflix offers free subscription for its customer for 1 month. It gives a trial month to win
customer loyalty. After a month it asks for updating by payment and reminds the
customer. The streaming service has divided the plans into: mobile (costs Rs
199/month), basic (costs Rs 499/month), standard (costs Rs 649/month), and
premium (costs Rs 799/month). It is cheapest plan of Netflix.
2. Social bonds:
Netflix offers customization through ‘my list’ option in it. Also it does research through
customer data and personalize Netflix for him. It offers different profiles for each user of
single subscription as 4 screens could be streamed at one time.
3. Structural bonds:
Netflix invests in customers for making special bonds with customers so that customers
not leave it. For example Netflix offers different subscription packs for different
countries. Also it provides different content according to countries and personalizes it.

4.2WORST SERVICE QUALITY PROVIDER-

ABOUT UBER

Uber is a platform where those who drive and deliver can connect with riders, eaters, and
restaurants. In cities where Uber is available, you can use the Uber app to request a ride. When a
nearby driver accepts your request, the app displays an estimated time of arrival for the driver
heading to your pickup location.
Assessment of UBER’s service quality with GAP model

GAP 1- LISTENING GAP

1. Uber does not provide any customization to its user as it provides some certain options
for rides. No customer research is done before giving ride to customer.
2. There is no direct conversation of the customer to the company as there involved driver
in between therefore making it less trustworthy and not any upward communication.
3. It is based upon user’s internet availability as well as driver base. If there is no internet
access it is risky. Also they provide with low food quality due to delay on ride because of
this gap.
4. Uber never focuses on service recovery. Even it charges its fee if customer is not able to
ride whether it is because of driver guilt or other reason.

GAP 2- STANDARD GAP

1. UBER has option of partner ride but it is not safe sometimes as customer don’t know
whom you are partnering with, therefore this financial aid of uber seems useless for many
people.
2. Uber has its own old designs and it takes a lot of time to make new customer driver
designs. Like for safety purpose it must add something new to its design. For disabled
persons there is nothing different.
3. It is only a mobile based application and thus only limited to it. If mobile phone is
switched off and call to driver is not happening then customer is freaked out.
4. There is no luxury in Uber. Sometimes it provides with very bad conditioned car and
driver do not on AC. Also they are not proper dressed in uniform.
GAP 3- PERFORMANCE GAP

1. There is lot of problems occur in reaching the driver. As company do not provide direct
call, there is a driver as middlemen. Thus HR policies are not very good as drivers
involved may not be safe and it also depends upon the availability of driver.
2. The driver may not be able to correctly find location of driver.
3. At the time of rush and rain, the supply do not meet the demand. There are less drivers
and it becomes very difficult to book cab and reach to it.
4. It is positioned as a more expensive option and perceived as a monopoly. Also prices
fluctuates as at the time of rush price is not affordable.
5. There is limited mode of payment and sometimes rider may not input rating for previous
trips.

GAP 4- COMMUNICATION GAP

1. The communication mix of uber is internet, coupons, press releases, websites etc and is
not using any digital and print advertising. Due to this, they lack in attracting the segment
of 49 and above.
2. Uber do not always reach on time to the customer but there occurs delay in food services
and also in reaching to riders. Thus it does overpromising.
3. The horizontal communication of uber is not good as no direct communication is there.
4. Uber has weakness of unreasonable and non transparent charges.

Assessment of UBER’s relationship marketing

1. Financial bonds:
There are discounts on uber only for some limited time. Customers can not use any
discount at a time and it keeps on changing. Also the charges fluctuate with high
differences in moments of time. The customer loyalty is difficult to achieve in this
scenario.
 2. Social bonds:
There are privacy concerns with Uber and also safety issues occur. It is easy to duplicate.
It has No personalized experience as customer have to ride with a driver and car chosen
by company and not by him.
3. Structured bonds:
uber has nothing to do with customization and making personal bonds with customer. It
is same for everyone and never priories people. It only works on charging higher price.
The ride which is easy and could make more money is taken by the company.

CONCLUSION:

Netflix is a company providing with best service quality and relationship marketing through its
personalization. This customization makes interest of people to watch the Netflix and become
loyal to it. Also due to its direct live chat there is no listening gap. It fulfills its performance gap
with high quality of streaming and new content. Also it advertises itself through previews pop
ups etc and becomes customer favorites. On the other side Uber is not providing good services to
its customer as there is high safety issues and fluctuations in price that it cannot make loyal
customers. Uber pricing is not transparent and it is confidential thus customer does not support it
as they thought they might be charging high. Therefore Uber is worst service quality provider.