The Gaps Model is an important framework in Customer Value Management that helps organizations understand and improve service quality by identifying the differences between customer expectations and the actual service experience delivered. The model explains why customers may feel dissatisfied even when organizations provide services with good intentions. It focuses on identifying the causes of service failures and provides a systematic approach for improving customer satisfaction, loyalty, and perceived value. The Gaps Model of Service Quality was developed to analyze the relationship between customers and service providers. It suggests that service quality depends on the ability of an organization to understand customer expectations and deliver services according to those expectations. The model identifies five major gaps that can occur during the process of service design, delivery, and communication. By reducing these gaps, organizations can enhance customer value and create stronger relationships with customers. The first gap is known as the Knowledge Gap. This gap occurs when there is a difference between customer expectations and the organization’s understanding of those expectations. Organizations may fail to recognize what customers actually need, want, or value. This often happens due to insufficient market research, poor communication with customers, or a lack of customer feedback systems. For example, a company may introduce a product feature that it believes customers will appreciate, but customers may actually prefer improvements in another area. The knowledge gap is significant because understanding customer expectations is the foundation of effective customer value management. Organizations must collect customer information through surveys, feedback, interviews, and market analysis to reduce this gap