Value-Creating Networks Issues - Case Study Example

Service/Product Analysis: Yolanda Catering Name: Tutor: Course: Date: Service Product Analysis Role of business Servicescapes in Yolanda Catering Customer’s impression formation is determined by servicescapes (physical environments) which may be positive or negative. Emotional states are preceded by cognitive states. Better service encounter entails training to increase employee performance, productivity and motivation in the catering services. It also involves good services to customers (Bei & Chiao, 2000). The objective of Yolanda catering is to increase customer satisfaction, sales and profitability. Physical environments help customers to develop immediate perceptual image and service product that offers cues to customers. Customers evaluate services based on external impression and appearance (Landroguez et al. 2011). The physical environment of Yolanda catering is determined by appearance and impression of its services and products for customers to make evaluations and judgments. Guests to the hotel are least impressed by the service agent than the physical environment. Hence, prior to experiencing the agent, customers perceive and evaluate the physical conditions of the premises dictated by physical components and environmental cues (Bernard, 2012). Cognitive and affective responses Customers evaluate the servicescapes through appraisals or satisfaction. The perception by the individual constitutes the cognitive schema. These cognitive perceptions instead stimulate affective (emotional responses) such as dominance, arousal and pleasure thus cognition comes before emotion. The perception of the parts is dominated by the whole (Burns, 2000 p. 73). For example, customers frequenting Yolanda catering lobby tend to perceive the floors, lighting, front desk, artwork, furniture, wall colors, customers and employees. Customers’ image of the lobby is also influenced by sensory inputs like scents and music. In evaluating the whole premises, Yolanda customers not only look at the exterior architecture but also the interior décor which reflect the image and style of the physical environment. Perceptions are organized in grounds and figures. Grounds are vague and hazy while figures are immediate and clear at the front of the visual scope. Individuals perceive images based on principles such as closure, symmetry, common fate, continuity, similarity and proximity. Cognitive processing involves organizing perceptual images while affective processing has to do with emotions. Yolanda catering servicescapes are not flexible but more intense (Hayes, 2008). This is because it is not connected to individual feeling of dominance but it describes power and order linked to individual’s submissive feelings. This can be used as a competitive advantage over its competitors since more customers will be drawn by submissiveness of the hotel employees and management towards their customers (Ata & Toker, 2012). This aspect of cognitive (visual and audio) as well as affective (arousal, dominance and pleasure) responses are used in current times to gain competitive advantage and has made the hotel popular and profitable. Role of Frontline service providers Frontline service providers have the set of traits for the hotel to be successful. This involves selecting and recruiting the right individuals. The providers provide distinct brand personalities, high quality and actual self-concept (Bentley, 2009). Service providers possess current knowledge on the brand image based on constituencies’’ perceptions. For example, effective and refined service providers offer a competitive advantage to Yolanda catering and customer service. They seek innovative and creative ways to beat competitors. Yolanda catering frontline service providers engages in name recall, face recognition and customer service innovation. They also provide expected and basic offerings. The innovative techniques allow for customers to embrace technology which will have a competitive edge over competitors who are slow in adopting new hospitality services. The providers will stay and scan on par with offerings from competitors (Bei & Chiao, 2000). They also implement and derive novel ideas to delight customers. New ideas engender greater returns on investment and consistency. The services are both scripted and unscripted. The moderately scripted services at Yolanda catering provide improvised encounter to service attributes. The relaxed or moderate scripting at the hotel has ensured that customers do not find any reason to perceive poor service quality. Service Quality Dimensions SERVQUAL dimension are assurance, reliability, responsive and empathy. Responsiveness of the staff ensures that customers receive best and create service within a short time. For instance, the time it takes to serve an order, respond to a query and resolve complaints. Reliability is influenced by performance and standardized services that do not change based on customers’ bases. The service is reliable if can provide consistency and accurate (Bentley, 2009). Empathy is way up understanding, caring customers’ feelings and being able to offer individualized attention. Assurance is the courtesy and knowledge possessed by Yolanda catering employees who demonstrate ability to convey confidence and trust. Customer quality, retention, perceived value and satisfaction are important elements of good customer service (Kotler & Keller, 2012). A lot of customers are coming back to keep using this catering company, and also reckon friends use it as well. This mention of testimonials and referrals is evidenced by excellent quality, perceived value and retention. Customer quality is rated by how customers perceive the quality of service and the products they received. Customer satisfaction is influenced by customer perceived value and subsequently customer loyalty. Customers with low perceived value show weaker relationships customer loyalty and satisfaction compared to customers with high perceived value. A good testimony of the positive hotel experience will likely to excite new customers who may want to try the mentioned service (Ata & Toker, 2012). Satisfaction is also seen in the increased number of referrals from contented customers. The element of customer retention is evident where the brand has high perceived value and great quality food and drinks. At Yolanda catering, all the products and services are really good which signifies a business that is committed to upholding customer quality, retention, perceived value and satisfaction. Service value is driven by basic services, competence and complementary services. When a customer establishes qualities that match with his or her ideal self-concept, they can be said to be satisfied (Burns, 2000). Customers who have stopped taking meals with Yolanda catering have a reason as to why they switched to other catering services. Core service value, relationship value, service value and customer perceived value dimensions all contribute to customer loyalty and satisfaction. Dissatisfied customers play a turn wheel which is likely to affect their perception on the hotel and hence their loyalty (Smith & Colgate, 2007). The perceived value must be high to attract a new segment of customers who may wish to change their hotel menu. There are many customers who are attracted by physical environments but when the customer service offered by staff is on a decline, customers will not be impressed by the facilities. Frontline service Providers Frontline staff is essential part of the Yolanda catering brand since they are the contact points with customers. They can enhance or damage the brand depending on their inclination to the service attributes and servicescapes. Highly trained and competent frontline employees such as cashiers, waiters and ushers influence the brand and perception of the product. Relaxed and submissive frontline staff will enhance Yolanda catering brand (Pride & Ferrell, 2010). The common source of conflict among service providers are communication breakdown, poor leadership, unequal treatment and low self-concept. Most front line staff may not be able to handle others emotions because they cannot handle their own (Kotler & Keller, 2012). Communication breakdown affects the relationships between service managers and frontline staff. For example, a manager who harasses an employee in-front of customers is most likely to be perceived as arrogant and high handed. This could also be seen as failure in the part of leadership to communicate and address issues before getting out of hand (Landroguez et al. 2011). The poor relationship between staff and managers will often contribute to conflicts. The managerial job specification is related to competence, behavior and qualification. Irregular selection and recruitment of frontline staff, is one source of conflict as many other qualified employees will sulk those who are taken as unqualified. Frequent quarrels over work plans and break down will cause delays and inefficiencies (Bei & Chiao, 2000). Emotional labor is evident in the job. A waiter can hide his or her true feelings and increase perceptions of job stress. This also increases distress and job dissatisfaction evidenced by self-focused emotional management. The waiter is expected to express positive emotions towards customers like attention, friendly attitude and smile. Partial scripting is required in this case to ensure that employees are closely monitored and regulated (Kotler & Keller, 2012). To demonstrate regulation against scripting, Yolanda catering employees can create humor and exaggeration of service to impress and delight customers. Employee empowerment Employees are empowered through training and regular salary increment. Empowerment ensures that employees meet and adjusts to the changing economic conditions. Through training, it is possible to achieve the best of hospitality service qualities such as reliability, assurance and tangibles. On-the-job training or induction of new employees is done in-house. This happens when the organization desires a culture of growth and continuity (Hayes, 2008). Motivation through rewards also empowers employees financially hence creating a stable mindset while at work. Regular and equitable remuneration has a strong impact on employee commitment and satisfaction. This level of satisfaction is reflected in the way the employees will treat their customers. Satisfied employees will often bring out delighted customers. The staff is well suited to managerial, cashier and waitress portfolios (Caruana, 2002). They don black chef uniform and regular body grooming is upheld. The selection and recruitment of individuals is based on experience, competencies and qualification in catering and hospitality services. This has given Yolanda catering a competitive advantage as it seeks to improve customer satisfaction and retention efforts over its rivals. Customer Relationships Building customer relationships is best conducted through word of mouth because most of the services are customized and customers are also drawn from within the business community. Other means are through social media where the customers are mainly reached. Word of mouth is relevant and contributes to a lasting impression on friends and family members (Malhotra, 2008). For example, a customer who makes a positive testimony to one of the family members or colleagues is likely to believe on the service. Therefore, he or she will likely be drawn to the hotel to experience what was told. Social media is one way of obtaining likes and individuals experience regarding the dishes and attributes of the staff. Word of mouth is a cheap and convenient strategy to Yolanda catering because it strikes the recipient positively (Burns, 2000). Keeping the existing customers satisfied is sufficient to create a strong customer base and long lasting relationships. The originator on the state of service has a strong bearing on the recipient. For example, a parent who has been frequenting the hotel of lunch with a small drink is likely to influence his or her children to visit the same hotel in future. Customer Service Research Yolanda catering does conduct research which is in the form of surveys on quality of food, responsiveness of staff and recommendations. The research is quantitative and is meant to appreciate the number of customers who are satisfied or dissatisfied with the services. This research will also define the relationship between service qualities and customer satisfaction. The customer service section provides interviews to its customers as they make payments (Ata & Toker, 2012). The interviews are not scheduled but memorized or captured through audio tapes or recorders. The audios are later replayed to allow for the transfer of responses to paper. An observation schedule can also be made to provide observations on the mood and feelings of customers. This can include their facial impression, body language, tone of response, and emotional balance (Landroguez et al. 2011). Regular customer service research is essential in providing a consistent and reliable feedback from customers concerning the availability of service. Current research is based on quantitative and qualitative methods which utilize various data collection instruments (Burns, 2000 p. 77). A case study on Yolanda catering is appropriately addressed through interview schedules which query the viability of the enterprise. Research in hospitality industry is very important and almost indispensable given that customers are now dynamic in tastes hence their tastes and likes need to be sought on regular basis. The use of surveymonkey.com which is an online data collection and analytical instrument is of value to hospitality services. Reference list Allee, Vale. Value-creating networks: organizational issues and challenges. Learning Organization, The, 16(2009), 427-442. Ata, Uz & Toker, Allan. The effect of customer relationship management adoption in business- to-business market. Journal of Business & Industrial Marketing, 27 (2012), 497-507. Bei, Lee & Chiao, Yen. An integrated model for the effects of perceived product, perceived service quality, and perceived price fairness on consumer satisfaction and loyalty. Journal of Consumer Satisfaction Dissatisfaction and Complaining Behavior, 14(2001) 125-140. Bentley, Ancox. Sales through service. International Journal of Customer Relationship Management, 1 (2009), 337-4. Bernard, Haroun. Social research methods: Qualitative and quantitative approaches. SAGE Publications, Incorporated. 2012. Burns, Reuben. Introduction to Research Methods (4th ed.). London: Sage Publications. 2000. Caruana, Anne. Service loyalty: The effects of service quality and the mediating role of customer satisfaction. European Journal of Marketing, 36 (2002), 811 – 828 Hayes, Ben. Measuring customer satisfaction and loyalty: survey design, use, and statistical analysis methods. ASQ Quality Press. 2008. Kotler, Peter & Keller, Kenneth. Marketing management. Harlow; Boston MA: Pearson Education.2012. Landroguez, S.M.; Castro, C.B., & Cepeda-Carrión, G. Creating dynamic capabilities to increase customer value, Management Decision, 49 (2011), 1141-1159. Malhotra, Nathan. Marketing Research: An Applied Orientation, 5/E. Pearson Education India. 2008. Pride, William & Ferrell, Oliver. Marketing express. South-Western Pub. 2010. Smith, John & Colgate, Martin. Customer value creation: A practical framework. The Journal of marketing theory and practice, 15(2007), 7-23 Read More