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Gagan (13) assignment_2_mo_s

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  • 1. Management ofServicesAssignment- 2Submitted By:Gagan Pardeep; Call no.102013Submitted to:Prof. Mukesh NauhwarIndus World School of Business Greater NoidaDate: 16th Feb. 2012
  • 2. ExerciseExercise: List down your last 5 service experiences – did the company meet,exceed your expectations? What better could they have done? Were yourdemands unjustified from a company’s perspective? Have you taken a standpost the experiences? Why or why not? Customer service, especially in the shape of a call-centre - is to customers one of the most visible and significant aspects of organizational performance. To many organizations however customer service is one of the most challenging and neglected areas of management, including those with modern call-centers. For customers the quality of customer service determines whether to buy, and particularly whether to remain a customer. Here are some of my own experiences some of which are very delightful other satisfactory and some are utter failure: 1) Service Used: Mobile Network Mobile Operator: Airtel On the evening of valentine day, I called up my friend as I wanted to talk to her. We both are using Airtel as network operator. When I attempted the call first time it couldn‘t connect conveying network is busy (may be due to high network traffic in evening hours, which was understood and was somewhat acceptable to me). Then I disconnected and tried again and this time it connected me with my friend. As soon she said first world we realized that voice is cracking and none of us couldn‘t get each other. I disconnected again and made third attempt, it connected us again but with same irritating problem, somehow we managed that time by other means (by using our friend‘s mobiles). As I waited for whole day because she were in office till evening, I got so irritated that yesterday I switched to Vodafone (thanks to mobile portability) In this case minimum expectation was to make a telephonic conversation, which was not met by service provider. So service provider didn‘t meet even the minimum level of expectation which led to dissatisfaction and ultimately customer loss. My demand was very genuine as company claims to provide a very good voice and non-voice tele-services on 3G (which I was using) and they were not meeting the minimum requirement. They can do it better by analyzing the Signal Level & Signal Strength parameter recorded during the network optimization process if the call2|P ag e
  • 3. quality is consistently bad in areas from where we were located and thus doing re-optimization for these locations. I‘ve taken my stand by leaving the network provided because I knew that by calling customer care will not solve this problem. They are charging their customers for their valuable feedbacks and complaints (Rs. 0.50 for 3 minutes), which no customer will like. So I preferred to switch to other operator. 2) Service used: Technical Support Service Provider: Dell Inc. On last Monday I, with one of my friend visited Dell service center for diagnosis of her laptop as it was not getting charged. The laptop was not in guaranty cover so one of company executive explained various available options we had in order to make it working again. He explained various warranty schemes that we could opt for. The overall experience was good if we evaluate executive on various parameters like knowledge of what he was selling, product knowledge (technicalities), willingness to help (he, himself approached us as soon as we filled the entry form). The service was satisfactory. 3) Service used: Watching a Movie Service Provider: Big Cinemas On Wednesday I along with some of my friends went to watch a movie in nearby cinema hall operated under the name Big Cinema. There is only one shopping mall and only one cinema hall in proximity (so alternatives are not available). We asked for four tickets from the person attending the ticket counter. He asked us for Rs 720, but as we all are used to go for movie especially on Wednesdays due to economical prices, one of my friends enquired him about ticket prices. After my friend‘s questioning he explained the pricing, what else was included in that price which we never asked for (popcorns and cold drinks were included in that). After that he asked us for Rs. 400 (Rs 100 per ticket). Again my friend enquired him about any other ticket as we knew that there are tickets available at Rs. 80 also. Then finally he shared all information about seats available and there prices. None of us wants such experience but due to lack of alternative we have to go to him again and again. The process could be better if that attendant at ticket counter would have disclosed all the available seats and respective prices and let the customer choose depending on his preferences.3|P ag e
  • 4. Exercise: Create a survey (minimum 10 questions) for a new service offering thatyou plan to launch in the market. Service offered: Online retailing. 1. How often do you purchase products online? Extensive user Very often Moderate user Occasionally Not at all 2. What types of products do you typically buy online? ______________________________________________________________ _____________________ 3. Which online retailers do you typically use? ______________________________________________________________ _____________________ 4. What are your biggest concerns about buying products online? ______________________________________________________________ _____________________ 5. How confident are you that your personal information is secure when buying products online? Extremely Confidant Very Confidant Moderately Confidant Slightly Confidant Not at all 6. How often do privacy concerns stop you from buying products online? Always Most of the times Half of the times Once a while Never 7. How confident are you that your payment information is kept4|P ag e
  • 5. secure when purchasing online? Extremely Confidant Very Confidant Moderately Confidant Slightly Confidant Not at all 8. How often do security concerns prevent you from purchasing online? ______________________________________________________________ _____________________ 9. How comfortable are you buying products online from an uknown company? Extremely Comfortable Very Comfortable Moderately Comfortable Slightly Comfortable Not at all Comfortable 10. How comfortable are you purchasing online from an individual you dont know? Extremely Comfortable Very Comfortable Moderately Comfortable Slightly Comfortable Not at all ComfortableExercise: For each level of customer relationship discussed, identify a firm withwhich you have that level of relationship and discuss how its marketing effortsdiffer from other firms? Strangers Firm: Flipcard.com Marketing and distinguishing strategies: Cash on delivery (payment modes) 30 days replacement (providing physical evidence and thus assuring them for quality) Acquaintances Firm: Vodafone - I‘ve just started using its services.5|P ag e
  • 6. Friends Firm: Dell Marketing and distinguishing strategies: Place (channel of distribution) Customized products Partners Firm: A local Restaurant nearby our hostel (namely - Rubaab) Marketing and distinguishing strategies: world of mouth and acknowledging its loyal customers.Exercise: List down the various switching barriers you would face in switchingbanks, mobile phone providers. In case of switching bank:  Learning cost  Search Cost in terms of time and money  Uncertainty in fining good service from new provider  Benefit loss: loyalty benefits from old service provider  Monitory loss: penalties or charges for closing an account  Hassle  Personal relationship  Brand relationship  Service disruption In case of mobile services provider: Due to mobile portability now these barriers are all most blurred. However some are still in their existence like:  Uncertainty in fining good service from new provider  Benefit loss: loyalty benefits from old service provider  Monitory loss: schemes and tariff provided by Earlier in addition to these there were barriers like  Cost of sending new number to all friends and concerned individuals  Service disruption during transition periodExercise: Interview 3 people about their service recovery experiences. Whathappened and what did they expect the firm to do? Were they treated fairly bythe firm? Will they return to the company in the future?6|P ag e
  • 7. Interview 1: Service Used: Air Transportation Service provide: Jet Airways Service Failure: Flight got cancelled just before an hour from scheduled departure time due to technical reasons. Service recovery: offered one night accommodation at a five star hotel at a distance of 25 Km from airport (hotel was at CP, New Delhi) and same flight on next day. Expectation: Arrange another flight for affected passengers on same day. Firm has treated all passengers fairly (according to interviewee), they made staying arrangements in five star hotels, and they might have done this in any lower profile hotel. For interviewee (as per his requirement) they arranged cab from airport to his home in Noida. He is willing to go to firm again (might be due to his wide tolerance zone). In fact he returned by using services of the same services provider. Interview 2 Service/Product Used: Hospitality and food Service provide: 7Days Service Failure: Offering different cuisine that what was ordered and then server tried to convince customer that this is what he has ordered (not accepting the mistake was more sever that offering wrong food). Service Recovery: after a long argument, when customer asked to call manger of restaurant. Manger accepted the mistake and asked his staff to serve as per order. The experience for customer was bitter and he will not turn back to this service provider again. Interview 3 Service/Product Used: Mobile Network Service provide: Airtel Service Failure: Cracking of voice during call; not Meeting the minimum level of expectation It is my own experience as I explained earlier. There was no service recovery and ultimately I switched to another service provider.7|P ag e
  • 8. Review QuestionsQuestion: Is “Desired” and “Derived” service expectations the same? No, they are not same. Some customers are more demanding than others, having greater sensitivity to, and higher expectations for service. Some has wider tolerance band, other might have narrower depending upon various drivers. Service intensives are individual, stable factors that lead the customer to a heightened sensitivity to service. One of the most important of these factors can be called derived service expectations, which occur when customer expectations are driven by another person or group of people. For example a parent chooses a vacation for the family, a spouse selecting a home-cleaning service, an employee choosing an office for the firm – all these customers‘ individual expectations are intensified because they represent and must answer to other parties who will receive the service. Desired Service on the other hand is the level of service the 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‘. For example, consumers who sign up for a computer dating service expect to finds compatible, attractive, interesting people to date and perhaps even someone to marry. The expectation reflects the hopes and wishes of these consumers; without these hopes and wishes and the belief that they may be fulfilled, consumers would probably not purchase the dating service.Question: What are the sources of Desired Service Expectations? The two largest influences on desired service level are personal needs and lasting service intensifiers. Personal needs those states or conditions essential to the physical or psychological well-being of the customer, are pivotal factors that shape what customers desire in service. Personal needs can fall into many categories, including physical, social, psychological and functional. Some customers are more demanding than others, having greater sensitivity to, and higher expectations of, service. Lasting service intensifiers are individual, stable factors that lead the customer to a heightened sensitivity to service. One of the most important of these factors can be called derived service expectations, which occur when customer expectations are driven by another person or group of people. A niece from a big family who is planning a ninetieth birthday party for a dearest cousin is representing the entire family in selecting a8|P ag e
  • 9. restaurant for a successful celebration. Her needs are driven in part by the derived expectations from the other family members. As some customers are more demanding than others, having greater sensitivity to, and higher expectations from services. Lasting service intensifiers are individual, stable factors that lead the customer to a heightened sensitivity to service. One of the most important of these factors can be called derived service expectations, which occur when customer expectations are driven by another person or group of people. Another lasting service intensifier is personal service philosophy – the customer‘s underlying generic attitude about the meaning of service and the proper conduct of service providers. If you have ever been employed as a member of waiting staff in a restaurant, you are likely to have standards for restaurant service that were shaped by your training and experience in that role.Question: What is the difference between lasting service intensifier and personalservice philosophy? Lasting service intensifiers are individual, stable factors that lead the customer to a heightened sensitivity to service. One of the most important of these factors can be called derived service expectations, which occur when customer expectations are driven by another person or group of people, whereas, personal service philosophy is the customer‘s underlying generic attitude about the meaning of service and the proper conduct of service providers. Though it is a part of lasting service intensifier but to the extent that customers have personal philosophies about service provision, their expectations of service providers will be intensified.Question: Should service marketers work to delight their customers? Service marketers should work their best for delighting the customer because it ―raises the bar‖ of customer expectations, making it more difficult to satisfy the customer in the next purchase cycle and heighten repurchases expectations. Service provider has to do a cost benefit analysis to what extant he should please customer and at point in time it is beneficial to say sorry. Three tried and true ways to learn more about your customers:  Give them an incentive to share information about themselves, (try to make them partners)  Talk to your customers in a meaningful way (even if their demands are unrealistic say no very carefully), and  Use technology to extend your reach (it helps in consistency in services).9|P ag e
  • 10. Question: Why is it important to understand both desired and adequate serviceexpectations? It is important to understand both desired and adequate service expectations because it defines the tolerance band of customer. Tolerance band of customer is the difference between desired and adequate level of service. So as the desired and adequate level of service varies depending on various physical and mental vibrations in customer‘s stimulating environment, accordingly the zone of tolerance varies, and thus same customer can have different level of satisfaction even if offered same services at different times. For example as I described earlier (in exercise question) when I was attempting to make a call to my friend after waiting for a whole day, I wanted to talk to her immediately and my zone of tolerance was very narrow. However if I have been attempting to call may be some other person it might be possible that I haven‘t switched to another service provider. So in various scenarios adequate service expectation may vary and same is the case with desired service level. Thus it is very important to understand both desired and adequate service expectations.Question: List and define the five dimensions of service quality. The five dimensions of service, or the criteria used by customers to assess the quality of services according to SERVQUAL model: 1. Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials. 2. Reliability: Ability to perform the promised service dependably and accurately. 3. Responsiveness: Willingness to help customers and provide prompt service. 4. Assurance: Knowledge and courtesy of employees and their ability to convey trust and confidence. 5. Empathy: Caring, individualized attention the firm provides its customers.Question: Give five reasons why research objectives must be established beforemarketing research is conducted?  To discover customer requirements or expectations  Monitor & track service performance  Determine customer expectations for a new service  To forecast future expectations of customers  To monitor changing customer expectations The culmination of the problem definition process is a statement of the research objectives. These objectives are stated in terms of the precise10 | P a g e
  • 11. information necessary to address the marketing research problem/opportunity. Well-formulated objectives serve as a road map in pursuing the research project. They also serve as a standard that later will enable managers to evaluate the quality and value of the work by asking ―Were the objectives met?‖Question: What steps would you take to evolve your firm’s relationships withcustomers over time?  At initial stage customers are like strangers. Business is needed to be acquired by them by tempting them with providing the service which they would surely like to try once.  At second stage treat them as acquaintances, try to satisfy and exceed customers‘ wants.  At third stage make customers your friends in order to retain them in business.  Fourth stage is to make customers your partners to enhance relationship with them.Question: Should organizations have the concept of “Customer Segmentation”.Why or why not? Yes, organizations should follow the concept of ―Customer Segmentation‖. It is the subdivision of a market into discrete customer groups that share similar characteristics. Firms can use various parameters to segment its customers e.g. according to life time value (LTV) of customer, purchasing power of customer etc. Customer Segmentation can be a powerful means to identify unmet customer needs. Companies that identify underserved segments can then outperform the competition by developing uniquely appealing products and services. Customer Segmentation is most effective when a company tailors offerings to segments that are the most profitable and serves them with distinct competitive advantages. This prioritisation can help companies develop marketing campaigns and pricing strategies to extract maximum value from both high- and low profit customers. A company can use Customer Segmentation as the principal basis for allocating resources to product development, marketing, service and delivery programs. It also helps companies to stratify customer for various purposes like – which customer has higher preference for retention (as generally only 20% of the customers contribute to 80% of the firm‘s revenue). So there are always customers who are more profitable for firms than others.11 | P a g e
  • 12. Question: Describe the four levels of retention strategies and give example foreach type.Question: Describe the benefits to a company of having an effective servicerecovery strategy. The goal of service recovery is to identify customers with issues and then to address those issues to the customers satisfaction to promote customer retention. However, service recovery doesnt just happen. It is a systematic business process that must be designed properly and implemented in an organization. Moreover, the organizational culture must be supportive of idea that customers are important and their voice has value. In case of service failure customer wants a quick acknowledgement of the problem, speedy resolution of the problem, and -- perhaps -- compensation for his troubles. More important he wants a truly sincere apology and not some phony empathy. Thats the key value to effective service recovery and complaint handling: customer retention. One way to think about service recovery is that it is a positive approach to complaint handling. Complaint handling has serious negative connotations; whereas, service recovery has positive connotations. Service recovery has a secondary value. It creates positive word-of- mouth about your company and minimizes the bad spin that lack of service recovery practices can create. High customer retention can be attained if service recovery is as per customer requirements.Question: Should companies choose to monitor and respond to complaintsmade on Social media? Why or why not? Saying nothing when it comes to complaints or negative feedback about your business is not a good thing. Some of the complaints I saw went back a few months. Here this company is, a huge name, and there is no one monitoring their Facebook page or responding to what is being written on their wall. Why has a social media presence if you plan on not responding to customers?12 | P a g e
  • 13. There are companies who would rather delete these comments and consider it ―under rug swept‖, but that is even worse. Erasing comments after they have been placed on your social media pages looks as if company has something to hide. And it doesn‘t solve the problem at hand. If a business has social media pages, it should have someone monitoring that pages, as well as responding to comments or complaints—whether they are good or bad. Here are some ways how to respond to negative comments:  Acknowledge- the first step you must take is to acknowledge the complaint. And not defensively. Get down to the problem at hand.  Apologize- Apologizing doesn‘t mean that you admit guilt. It means that you truly do apologize for what they feel has been poor customer service, etc.  Restate- Make sure you know exactly what the problem is by restating it and making sure you are on the same page  Research- Track down the parties involved in the complaint. If the party is within your company, do your best to handle it with the employee.  Fix- Offer to discount or give a free service or item to the customer.  Make it public- Make it public so that people know that you are doing whatever it takes to satisfy the customer.13 | P a g e

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