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Table of contents:
Introduction 1
Expanded marketing mix for services 2
Gap model analysis 3
Expanded marketing mix for services (cont.) 4
Gap modal analysis (cont) 4
Conclusions 6
Reference: 6
Appendix 7
Introduction
“Services are going to move in this decade to being the front edge of the industry” (Louise V.Gerstner. 2010 IBM CEO).
Research has shown that service industries generate over wot-thirds of GDP and employment. Nowadays service industry play an important part of the economy essay that cerates services rather that tangible objects.
A service encounter is a period of time during which customer interact directly with a service. It is also called as "Moment of Truth"
High quality service drives to customer satisfaction, this will lead to profit to the organisation.
A service encounter is that period of time during which the customer and the service firm interact in persona over telephone or through other media (Shostack 1985). Essentially, a service encounter has been defined as a social interaction involving one human being interacting with another (Czepiel et al.1985)
There are various aspects of service encounters have been investigated in a number of service industries, including retailing industry, hospitality industry, financial industry, insurance company, there were some “good” and “bad” experiences through the journal entries.
In this report will discuss six services encounter, has analysis the ways of provide high quality service to customer from different industry. Also the factor affect the service outcome and what are the reasons that make the service encounter successful or failed. Finally find out the way to manage the problems so that can boost customer service levels and customer satisfaction.
Customer judging service quality based on customer perceptions of the service. Service leading organisations profit some of them leading to profits through variable in the domain of marketing
High service quality can maximise retention of existing customer as well as attract new customer.
Among the six service encounter there were some good experiences: Sovereign Hill Lodge; locus cafe and RACV. According to the service journals that show their services have met the expectation of customer in different way, and customer is more likely go back to those service providers.
Expanded marketing mix for services
Services are performances; frequently produce by humans, the factor “people” participating in the delivery of a service, it influences the buyer’s perceptions of the service. (Valarie A.Zeithaml Mary Jo Bitener Dwayne D, 1996)
In hospitality industry is more likely experience-derive service. In sovereign hill lodge, customer was greeted by a warm receptionist by the time get there, and orientated with a clear instruction of the tour program and showed customer the room location on a map and available parking area.#p#分页标题#e#
The receptionist professional appearance, her behaviours and also her good knowledge of the Sovereign hill is adding value to the service quality.
The service encounter in lotus cafe: The way of waitress deliver service made the customer feel comfort even though it was the first time been there. The service was personalised and comfortable.
The service was encountered with RACV was over the telephone, but still can feel the person is care about their customer and showed sympathy on the accident.
On other hand customer can influence other customers as well. For example early in the morning was bit noisy in the hotel. This might influence other customers’ satisfaction of the service in this hotel. Suggest that the hotel should make a notice people should be quiet in public area within the hotel specially during certain time of the day.
Customer will often be looking for the tangible cue to help them understand the nature of the services experience. The environment of the deliver service can be physical evidence.
The reason I chosen sovereign hill lodge because I was search online, I was attracted by the website of this lodge. The gallery on the web attracted me. There are lot of option of accommodation in the lodge: single, double, family deluxe.
The day customer get there was more than happy with the room, the setting was properly and the room was very clean.
The lodge also provided a handy brochure, that with the map and all the facilities that close to us.
The meal was tasty, and the price is acceptable in lots cafe.
As a member customer frequently get booklet monthly about travel with a membership can get a discount etc in RACV.
Those physical evidences adding value to customer satisfaction and behavioural intentions. Also make the customer be loyalty customer.
Process is the procedure of the service deliver and operation process. It is one of the evidence on judging the service. Process will influence customer’s over all impressions of their experience.
The process of checking-in was very simple, because the room was reserved online so just showed ID. It was taking 5 mins to get done.
Simply drop off the key when client check out. The process is logic and customized.
The service that customer has experienced in lutes cafe involved there marketing mix as well.
The service encounter with RACV insurance company: the claim takes less that 10 min over the phone, it took less than too weeks to get my car fixed.
Less complicate process make the service delivered more efficient result satisfied customer perception.
Gap model analysis
Customer expectation is standard of the actual service experiences. If the perceived service not meet customer expectation it called customer gap.
There are four gaps: listening gap- not know what customers expect.
The service design and standard gap-not selecting the right designs and standards
Service performance gap-not delivering to service designs and standards#p#分页标题#e#
Communication gap-not matching performance to promises.
According the service journals six service encounter can emerge into two groups: good service and bad service.
Service provide by Sovereign Hill Lodge, RACV, Lotus cafe were met customer expectation.
To close listening gap the organisation should have good understanding of customer expectations. For example: Sovereign Hill lodge is a medium hospitality organisation this makes easer to close listening gap, the management level can directly contact with customers. So that organisation has accurate understanding of what customer expects. Also within a medium size of organisation the communication between contact employees and manager is more sufficient. The frontline people like the receptionist in the lodge, operator of RACV, and the waitress in lotus cafe, knowing a great deal about customers, and then the management should be in contact with frontline employees. Good customer service can increase the customer retentions in order to keep customer relationship: the lodge has package of the ticket of show and museum on a good deal, this would adding benefit to customer, met customer expectations; RACV give member 10% discount on house insurance.
Form the variety of options that organisation provide for example: different price range of rooms in Sovereign Hill lodge. It is a customer-driven standard so that close service design and standard gap.
According to the service journals customer satisfy the price within the three organisations, for example the price of sovereign hill lodge bit expensive but the service they provide satisfied customer. The hotel’s physical evidence cues such as the clean washroom and other settings also increase the service quality perceptions. All those factors narrows provider gap 4.
A poignant contrast, the service that customer experienced with Dell, ANZ bank and plant nursery, were not satisfied customer expectation.
Expanded marketing mix for services (cont.)
People:
The complex of fixing laptop hard drive, indicate that the employs not professional and not an expert in the field he working in.
The seller in plant nursery cannot provide professional advice on the plant.
That service provider can be crucial factor of service encounters that can cause of dissatisfaction of customer.
Process:
The actual process that customer went through during experience give customers evidence on which to judge the service. the step that customer went through with Dell company is very complex, customer has to follow a complicated steps to complete the process.
The process went through with ANZ bank, was now satisfied also, there should be a reminder so that customer noticed that the bank account have been over drawn. Especially for the customer was mistook over drawn the money for the first time.
The banking system should be very well equipped.
Gap modal analysis (cont)
Gap1 listening gap:
There are many factor that can lead organisation fail to deliver customer driven, high quality service. Basically the organisation does not know what customer expect due to variety of reasons:#p#分页标题#e#
The research not focused on service quality: as a for-profit organisation ANZ banks is likely more focus on increase benefit or market share rather than deliver high quality service. The bank is focusing on transactions rather long term customer relationship.
The recovery mechanisms for service failures not appropriate( as a customer point of view), after the customer decide to cancel the account with ANZ bank, there is no solution for the conflicts , the organisation ignore the life time value of costumers.
The communication between contact employees and managers is insufficient, the front desk trailers have better knowledge of customer expect or complains but lack of upward communication. So that manager may still not realise the problems, the organisation has a failure to make amends when things went wrong.
Suggest that the organisation’s marketing research should be sufficient make sure the organisation know what their segment market want. And also the organisation should take the complains seriously so they know what can be don't to improve the service
Gap 2 service designs and standards gap:
Once the organisation narrows gap 1 by having good understanding of customer expectation, then they should design customer driven standard service. Customer defined standards are the link between customer’s expressed expectations and company actions to deliver to those expectations. When standards of service do not meet customer expectations, that means the quality of service that customer received is more likely to be enhanced.
The experience with bonsai nursery did not result satisfied customer perceptions. The nursery is absence of customer-driven standard service, for example there was no greeting after 10min. the nursery lack of management to focus on customer requirements, customer do not have good knowledge of certain field so expect that people work in nursery can provide professional instruction of the plants.
Physical evidence can be a primary cue for setting customer expectations before purchases.
Gap3 service performance gap
Once organisation narrow service design and standards gap. Then it would likely deliver high quality service to customer, but this is still not good enough. The organisation has to make sure the actual performance by the employees matched the designs and standards.
Among the major cases of provide gap 3 is the employees not fully filling in the roles.
The human resource management department might not recruit right people for right job; the person is lack of professional knowledge in certain field. For example: the technical person did not have a good knowledge of the product in the company that he is working in. the technical person can not solve the problem sufficient. the nursery person did not have good knowledge of the plant they grow in the nursery .the customer was disappointed with the service .suggest that organisation should provide ongoing training for specific area like technical skills or interactive skills which are employee needed on the job, so that they can deliver better service performance to customer.#p#分页标题#e#
Gap 4 communication gap:
If the polices are different across different branches within one organisation this can case communication gap. (Valarie A.Zeithaml Mary Jo Bitener Dwayne D, 1996). For example: one of the ANZ bank branch’s police is different from another is indicating that the horizontal communications between branches is inadequate. This can result customer do not build trust and loyalty with the organisation. Suggest that the organisation should coordinate different branches so make sure polices are in line with organisation’s strategy and objective.
Especially in banking because it provides high risk service-dealing with finance, customers have difficulties evaluate the outcomes.
Conclusions
From the six service journals, we can easily distinguish the “good” and “bad” service among different organisations.
Customer judge the service quality on perception of service. to achieve satisfied customer perception of service the organisations should effectively communicates and delivers on the reliability dimensions (Valarie A.Zeithaml Mary Jo Bitener Dwayne D, 1996)delivery high quality service to customer as promised. The organisation should be responsible; the organisation should view the quality of service from customer’s point of view rather than from the organisation’s point of view. That means should pay more attention on help customer rather than focus on productivity and market share. The organisation should also inspire trust and confident of customer, so that customer can build trust long term relationship. To deliver customer-driven service the organisation should have sense of empathy. By having a good under standing of customer special need also can make the organisation more competitive. Last factor to achieve customer satisfaction is tangible, that is the physical evidence of service delivery Tangibles can be a cue of customer value the service quality.
In order to deliver customised service organisations have to take all factors in consideration. The customer satisfied service is benefit the organisations, and will lead to profit trough various way.
Reference:
(Valarie A.Zeithaml Mary Jo Bitener Dwayne D, 1996)
Valarie A.Zeithaml Mary Jo Bitener Dwayne D, G. (1996). Services Marketing- integrating customer focus across the firm 2006. McGraw-Hill .
Weber, B. S. (2007). service encounter.
James L. Walker, (1995) "Service encounter satisfaction: conceptualized", Journal of Services Marketing,
Appendix
SERVICE JOURNAL ENTRY FORM
Your Name: Yantong LI Student Number: 30084528
Date and Time of Service Encounter:18/09/2010 12pm
Name of Firm / Service Provider: Sovereign Hill Lodge
Type of Service (e.g., service station, bank, restaurant): Accommodation
How did the encounter take place? (e.g., in person, over the telephone, by mail?) #p#分页标题#e#
In person /web booking
What specific circumstances led up to this encounter? (eg. purpose, location, expectations, etc.)
During holiday want to experience the gold rush history in Ballarat. So booked on-line and bought the package of ticket :accommodation; visit to sovereign hill and museum.
Expect a cozy room and relax time .
Exactly what did the firm/employee say or do? Why? (include physical surroundings, if appropriate)
When we checking in the receptionist had a very clear orientation about where the room is showed me on the map . and the tour program . also remind us the time of the show that was on that night.
How would you rate your level of satisfaction with this encounter? (Circle a number corresponding to your feelings.)
Extremely dissatisfied 1 2 3 4 5 6 7 Extremely satisfied
What exactly made you feel that way?
Paid quit expensive for the package, expect high quality of service and personalised service. The room is tidy and nice, the schedule is clear and practical. Process was clear and simple.
What could the employee / firm have done to increase your level of satisfaction? What improvements need to be made to this service system?
Should note other client that should be quiet during a certain time so that no disturbing others.
How likely is it that you will go back to this service provider? (Circle a number corresponding to your feelings.)
Extremely Unlikely 1 2 3 4 5 6 7 Extremely Likely
SERVICE JOURNAL ENTRY FORM
Your Name: Yantong LI Student Number: 30084528
Date and Time of Service Encounter:12/05/2009 10am
Name of Firm / Service Provider: RACV
Type of Service (e.g., service station, bank, restaurant): insurance
How did the encounter take place? (e.g., in person, over the telephone, by mail?)
Over the telephone
What specific circumstances led up to this encounter? (eg. purpose, location, expectations, etc.)
Had a car accident at that time, RACV is my car insurance provider. claim the care accident to them over the phone.
Exactly what did the firm/employee say or do? Why? (Include physical surroundings, if appropriate)
The response was quick and didn't wait long one the phone talk to the real person rather than answering machine, the asked my member no. checked my ID and asking about the accident finally find me a close car repaired company to get my car fixed.during the conversation over the phone she showed sympathy.
How would you rate your level of satisfaction with this encounter? (Circle a number corresponding to your feelings.)
Extremely dissatisfied 1 2 3 4 5 6 7 extremely satisfied
What exactly made you feel that way?
The conversation over the phone make me feel comfortable and the satisfy the solution.
Extremely Unlikely 1 2 3 4 5 6 7 Extremely Likely
SERVICE JOURNAL ENTRY FORM
#p#分页标题#e#
Your Name: Yantong LI Student Number: 30084528
Date and Time of Service Encounter:11/12/2010
Name of Firm / Service Provider: Lutes cafe
Type of Service (e.g., service station, bank, restaurant): restaurant
How did the encounter take place? (e.g., in person, over the telephone, by mail?)
In person
What specific circumstances led up to this encounter? (eg. purpose, location, expectations, etc.)
I was looking for a place which can offer high quality food and good environment for dinning. Heard this place from friend of mine .
Exactly what did the firm/employee say or do? Why? (include physical surroundings, if appropriate)
When I got there was a waiting staff, warmly greeting me and guide me to the table handed us the menu and asking any drink to start with?
How would you rate your level of satisfaction with this encounter? (Circle a number corresponding to your feelings.)
Extremely dissatisfied 1 2 3 4 5 6 7 Extremely satisfied
What exactly made you feel that way?
When I walking into the restaurant there was some one greet me did not let me wait, and lead me to the table. the waitress pull out the chair for me. When I ordering the food the waitress has good knowledge of the meals
What could the employee / firm have done to increase your level of satisfaction? What improvements need to be made to this service system?
The restaurant should have more variety of food to meet different customer need..
How likely is it that you will go back to this service provider? (Circle a number corresponding to your feelings.)
Extremely Unlikely 1 2 3 4 5 6 7 Extremely Likely
SERVICE JOURNAL ENTRY FORM
Your Name: Yantong LI Student Number: 30084528
Date and Time of Service Encounter:08/12/2010
Name of Firm / Service Provider: Local plant Nursery
Type of Service (e.g., service station, bank, restaurant): retail plant nursery
How did the encounter take place? (e.g., in person, over the telephone, by mail?)
In person
What specific circumstances led up to this encounter? (eg. purpose, location, expectations, etc.)
I was looking for a Christmas gift for my friend who likes plants and gardening. Don't know much about the bonsai plant want get some advise for the people in nursery .
Exactly what did the firm/employee say or do? Why? (include physical surroundings, if appropriate)
The plants setting on a bench that looks mass and weedy.
There was no one greeting me when I get there I have been walking around in the nursery about 10mints, when I asking the question the person cant really answering it, finally I have to call my friend to ask what kind of plant she wants.
How would you rate your level of satisfaction with this encounter? (Circle a number corresponding to your feelings.)
Extremely dissatisfied 1 2 3 4 5 6 7 Extremely satisfied
What exactly made you feel that way?#p#分页标题#e#
留学生经济学之服务产业经济论文During the conversation shows the knowledge is not precessional.
What could the employee / firm have done to increase your level of satisfaction? What improvements need to be made to this service system?
The employee should be well trained before they give advice to customers.
How likely is it that you will go back to this service provider? (Circle a number corresponding to your feelings.)
Extremely Unlikely 1 2 3 4 5 6 7 Extremely Likely
SERVICE JOURNAL ENTRY FORM
Your Name: Yantong LI Student Number: 30084528
Date and Time of Service Encounter:08/08/2010
Name of Firm / Service Provider: ANZ BANK
Type of Service (e.g., service station, bank, restaurant): Bank
How did the encounter take place? (e.g., in person, over the telephone, by mail?)
In person
What specific circumstances led up to this encounter? (eg. purpose, location, expectations, etc.)
Review the banks statement find out I have been charged 70 dollars from the ANZ bank.
Exactly what did the firm/employee say or do? Why? (include physical surroundings, if appropriate)
I went to the bank and talk to the consultant asking the reason of charging me. She told me because I have over withdraw the money form a saving account which is not credit. I said I did not know I have over withdraw money because there is no indicate of transfer decline. Finally she cant cancel the charge, so I cancelled my ANZ account
How would you rate your level of satisfaction with this encounter? (Circle a number corresponding to your feelings.)
Extremely dissatisfied 1 2 3 4 5 6 7 Extremely satisfied
What exactly made you feel that way?
Not practical banking system: customer can over draw the money from saving account
And there is no indicate that is over the balance.
What could the employee / firm have done to increase your level of satisfaction? What improvements need to be made to this service system?
Set up the system to stop customer over withdraw money from saving account. Or decline the transfer to remind there is not available fund in account.
How likely is it that you will go back to this service provider? (Circle a number corresponding to your feelings.)
Extremely Unlikely 1 2 3 4 5 6 7 Extremely Likely
SERVICE JOURNAL ENTRY FORM
Your Name: Yantong LI Student Number: 30084528
Date and Time of Service Encounter:10/03/2009
Name of Firm / Service Provider: Dell
Type of Service (e.g., service station, bank, restaurant): tech support
How did the encounter take place? (e.g., in person, over the telephone, by mail?)
In person and over the telephone
What specific circumstances led up to this encounter? (eg. purpose, location, expectations, etc.)
New laptop break down during warranty, called customer service centre to get tech support.
Exactly what did the firm/employee say or do? Why? (include physical surroundings, if appropriate)#p#分页标题#e#
Called the customer service give then my laptop serial No. they checked its still in warranty ask the problem and instruct me over the phone wasn't working after that. Made a appointment sent technical person to my house get fixed. They find out was a hard drive problem then the next day sending someone and bring in the new hard drive for me . but the hard drive didn't fit my laptop type. Then they bring my laptop back to the company to get fixed. Take over ten day get my laptop back.
How would you rate your level of satisfaction with this encounter? (Circle a number corresponding to your feelings.)
Extremely dissatisfied 1 2 3 4 5 6 7 Extremely satisfied
What exactly made you feel that way?
The responding to the problem was quick but complex to get the problem solved.
What could the employee / firm have done to increase your level of satisfaction? What improvements need to be made to this service system?
Good knowledge of their product and physical equipment support.
留学生经济学之服务业经济论文范文-Research has shown that service industries generate over wot-thirds of GDP and employment How likely is it that you will go back to this service provider? (Circle a number corresponding to your feelings.)
Extremely Unlikely 1 2 3 4 5 6 7 Extremely Likely
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