First Community Bank spent a considerable amount of money updating its lobby with plush sofas, a large-screen television, and a refreshment counter with popcorn and soft drinks. However, very few customers spend time in the lobby. In fact, most customers want to be in and out of the bank, with their financial transaction completed as quickly as possible. The gap model of service quality would suggest that a gap exists between:

d.what customers want and what management thinks customers want.

Explanation:

The GAP model attempts to explain what is needed for customer satisfaction to be acheived.

It has 5 Gaps and the first Gap is being violated in the above scenario.

It deals with, The gap between Customer Expectation and Management Perception.

The First Community Bank management thought that customers wanted a relaxing space to conduct transactions whereas customers just wanted to go transact as quickly as possible and get on with their lives which points to a clear Gap between Management's perceptions of what customers want and what they actually want.