MEASURING THE SERVICE: Customer Satisfaction

A customer saved is a customer earned – a saved customer can be worth up to five new customers!

Customer satisfaction enables the firm to reap rewards such as:
• Continued purchase of services
• Customers become less sensitive to price
• Customer becomes less costlier to serve – Decreased service cost
• Positive word of mouth recommendation which provides free advertising.
• Cross sell of various products
• Take less of company’s time.

The Gap Model : Servqual

GAP model framed by Zeithaml V A , Parasuraman A and Berry L L in 1985 came up with 5 GAPs:
GAP 1 : denotes GAP between Expected & Mgts perception of customer Expectation.
GAP 2 : denotes the GAP between Mgts Perception & Service Quality Specifications.
GAP 3: denotes the GAP between Quality Specifications & Service Delivery.
GAP 4 : denotes the GAP between Service delivery & External communication.
GAP 5 : detotes the GAP between Perception and Customer Expectation.
Gap 5 denotes the gap between Expected service & Perceived service of a Customer.

As stated by Parasuraman A, Zeithaml V A and Berry L L, GAP 5 denotes the service gap between the expected services and perceived, where, Expected Service (also mentioned as desired service) is the level of service that customer hopes to receive – the “wished for” level of performance.

Desired service is a blend of what the customer believes “ can be” and “ should be”. We call the threshold level of acceptable service as adequate service – the level of service the customer will accept. Adequate service represents the “minimum tolerable expectation” the bottom level of performance acceptable to the customer.

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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