Understanding service quality gaps enables companies to make targeted improvements to meet customer needs better. The Knowledge Gap arises when a company needs to understand customer expectations due to inadequate research or communication. For example, a store might assume customers prefer a wide selection of products when they value faster service. Companies should actively gather and respond to customer feedback to close this gap.

The Policy Gap occurs when a company's service policies do not meet customer expectations. This can happen if a business has complex procedures that frustrate customers seeking convenience. For instance, a bank may have lengthy processes for simple transactions. Reducing this gap requires aligning policies with customer expectations and simplifying processes.

The Delivery Gap emerges when employees fail to deliver service according to standards, often due to poor training or a lack of resources. For example, a restaurant that promises quick service but needs more staff may need help to meet this expectation. Addressing this gap involves appropriately training and supporting employees.

The Communication Gap exists when there is a mismatch between promotional promises and the service provided. For instance, an internet provider may advertise high speeds but deliver inconsistent service, disappointing customers. Companies should ensure their marketing accurately reflects their capabilities.

The Perception Gap occurs when the service delivered meets standards, but customers perceive it differently. A hotel might offer all the advertised amenities, but guests may feel the quality could be better. Managing this gap requires consistent, high-quality service and clear communication to shape customer perceptions.