206 CHAPTER11 DESIGNING ANDMANAGINGSERVICES
customers are flocking to no-fee credit cards with frequent-flier miles and other
benefits. Fighting back, Amex has launched a walletful of new products,
including the “Blue Card,” aimed at upscale 25- to 35-year-olds. And the firm has
carefully retained all of the positive things its brand stands for, such as good
service, prestige, and value, making them relevant to the young, hip, affluent
consumer.^19Managing Service Quality
Another way for a service firm to succeed is by delivering consistently higher-quality
service than that of its competitors and by exceeding customers’ expectations. These
expectations are formed by the firm’s past experiences, word of mouth, and advertis-
ing. After receiving the service, customers compare the perceived service with the
expected service. If the perceived service falls below the expected service, customers
lose interest in the provider. If the perceived service meets or exceeds their expecta-
tions, they are apt to use the provider again.
Parasuraman, Zeithaml, and Berry formulated a service-quality model that high-
lights the main requirements for delivering high service quality.^20 The model, shown
in Figure 4-7, identifies five gaps that cause unsuccessful service delivery:Figure 4-7 Service-Quality Model