Service Quality and Customer Satisfaction - Case Study Example

Service marketing individual assessment Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Executive summary Efficiency in service marketing is evidently key in influencing consumers’ satisfactions and eventually the performance of a firm in the market. This is more fundamental in the contemporary services market which is characterized by extensive competition. The subsequent report explores encounters in five service companies in different sectors, namely AMP Bank Limited, Qantas Airlines, Woolworths Supermarket, Cremorne Automotive Services and Zushi. It analyzes each specific encounter and proceeds to evaluate each scenario in model perspective. Subsequently, recommendations are forwarded and a conclusion for the report. Table of Contents Executive summary………………………………………………………………………………..2 Table of Contents 3 1.0: Introduction 3 1.0: Analysis of AMP Bank Limited encounter 4 1.1: Evaluating the scenario in model perspective 5 2.0: Analysis of Qantas airlines encounter 6 2.1: Evaluating the scenario in model perspective 6 3.0: Analysis of Woolworths Supermarket encounter 8 3.1:Evaluating the scenario in model perspective 9 4.0:Analysis of Cremorne Automotive Services encounter 10 4.1:Evaluating the scenario in model perspective 10 5.0: Analysis of Zushi encounter 11 5.1:Evaluating the scenario in model perspective 12 Recommendations 12 Conclusion 13 References 13 Service marketing individual assessment 1.0: Introduction It is an apparent fact that the contemporary business environment mostly in service marketing is characterized by extensive competition. Under this phenomenon, the creation, maintenance as well as enhancement of long-term consumer relationships is perceived as a foundation of successful performance of any service provider. It has also been revealed that the tendency of any firm to increase the satisfaction of its consumers is integral in elevating the profitability of the firm, expansion of the market share as well as sustained competitive advantage. Additionally, other scholars have cited customer retention being at the core of ideal service marketing by diverse firms which has culminated in a robust advocacy for the eventual adoption of consumer retention as one of the key performance indicators (Fen & Lian, 2005). Against this backdrop, this report will analyze the service marketing encounter in five firms and subsequently evaluate these scenarios on model perspectives. 1.0: Analysis of AMP Bank Limited encounter In this encounter, it was apparent that consumer service personnel was ill equipped with the necessary information in regard to opening an ideal savings account to fit specific consumer needs. The consumer had predictive expectations that these personnel(s) would have comprehensive knowledge of the different categories of savings accounts and the interest rates which are applicable in each category to suit specific needs. Nonetheless, the unfolding scenario did not meet these expectations culminating in partial dissatisfaction with the service marketing operations of this banking institution. In actual sense, the experience epitomized a situation whereby there is a necessity for urgent intervention by the firm to address the issue of insufficiency of employees’ knowledge about the operations of this company. 1.1: Evaluating the scenario in model perspective This encounter can be assessed using the disconfirmation of expectations paradigm. In a generic sense, this model asserts that when a consumer receives services which either exceeds or matches his/her expectations, then this result in high satisfaction and satisfaction respectively. On the contrary, when the services offered to the consumer falls below the previously held expectations, then this culminates in dissatisfaction. In this case, the level of satisfaction or dissatisfaction is determined by how the expectations are confirmed or disconfirmed (Swan & Trawick, 1981). In the case of AMP Bank Limited encounter, there was disconfirmation of expectations on the knowledge level of the consumer service personnel which resulted in dissatisfaction based on the fact that the services which were offered fell below the previously held expectations about the quality of service marketing in this firm. However, it is worth noting that based on the fact that the customer service personnel was friendly and polite, this might have had an interaction value which might have a partial effect of enhancing the satisfaction of consumers and influence their future behavior in regard to returning to this banking institution to enquire about some services and maybe engage in some real transactions. As a result, the disconfirmation of expectations leading to low satisfaction levels with the services being had an influence on the future intention of the consumer in terms of partial likelihood of going back to this service provider. 2.0: Analysis of Qantas airlines encounter It is imperative to note that Qantas airlines of a highly reputed company in terms of quality on board services as well as adhering to strict flight schedules which influences the satisfaction of the consumers and the future consumer behavior in terms of loyalty in subsequent times. In this particular encounter, there were some predictive expectations in this regard and the above aspects which were efficiently met at the end of the flight. This might be credited for the high level of satisfaction at the end of this flight and possibly influence the decision to use this particular airline for future flights. However, there was a noted concern over the slight delays at the check points which have the potential of leaving some consumers disgruntled, mostly those with voluminous luggage. Nonetheless, based on the fact that I had just a small travelling bag, this slight inefficiency did not greatly affect my level of satisfaction at the end of this flight or negatively influence the likelihood of using the same airline in future. 2.1: Evaluating the scenario in model perspective This encounter is evaluated using the conceptual model of service quality model. In this framework, quality can be perceived to mean the fulfillment or exceeding the expectations of a consumer in regard to a particular service. In this regard, service quality is taken to refer to how well as consumer is served by a specific service provider, which also includes the extent to which the consumer is assisted as well as the mannerism of this assistance. Central to this model, there is the assertion that in the efforts to consistently deliver a set of experiences which are satisfactory and ensures high quality, the entire organizational set-up ought to have profound focus on the undertakings as well as quality. Moreover, the systems which are instituted ought to be designed in a manner which supports this mission (Krishundutt&Parumasur, 2003). Based on this model, Qantas airlines seems to have extensively invested into ensuring that the services which are offered to the consumers are of the highest quality and meets the expectations of the consumers. In this case, this has the overall impact of influencing the level of satisfaction among the consumers and informs their decisions to seek the services of this airline in future. Additionally, the external communications to the consumers from the marketers of the services from this airline is bound to have an effect in influencing both the perceived and the expected services which are informed by the personal needs of various consumers, for instance, high quality on board services or the need to reach their destinations at the right time. In this case, the high capacity of the airline to meet these perceived as well as expected services high level of satisfaction among the consumers. Moreover, it is worth noting that the word of mouth communication coupled with the exchanges on past experiences between the consumers is bound to inform the expected services among the current and future consumers. Based on the potential of the airline to adequately and competently provide these services not only informs the satisfaction of the consumers but also impacts on the both the short and long-term performance of the airline in terms of retaining or expanding its market share in the highly competitive airline industry in the Australian market and globally. 3.0: Analysis of Woolworths Supermarket encounter It is worth noting that this firm is engaged in selling different goods but its undertakings in facilitating online purchasing and the eventual delivery services of the purchased products forms the basis of the subsequent analysis. The effort by Woolworths Supermarket unveil virtual supermarket was perceived as a major step towards encouraging online shopping whereby the consumers can use their iPhones and the Woolworths app installed therein to purchase different products. In addition, the subsequent service of delivering these products to the doorsteps of the consumers was a key milestone towards enhancing efficiency and consumer satisfaction, not forgetting expanding the market share of this firm. In this encounter, the Woolworths app seemed to work efficiently which eased the process of purchasing the products online without having necessarily physically visiting the supermarket in person. Furthermore, there was a great expectation that the Woolworths app would be very convenient and have a wide alley of products which would be central in offering the performance (quality) value. Furthermore, apart from the Woolworths app working perfectly, there was a perceived expectation that the purchased product would be delivered in the right time without any delays and in line with the communications to the consumers about the maximum time which would be taken for the product to be delivered. However, the purchased product was delivered even within a shorter time than previously expected. In this case, the service of delivering the product exceeded the expectations which culminated in high satisfaction level. 3.1:Evaluating the scenario in model perspective This encounter can also be analyzed using the disconfirmation of expectations paradigm. As earlier mentioned, when an individual utilizes online purchasing platforms, they are bound to form a perception about the performance of this service. Moreover, they tend to consider their actual perceptions and make a comparison with their initial expectations which culminates in the development of specific levels of either satisfaction or dissatisfaction. This results in either confirmation of disconfirmation of their expectation which is central to this paradigm (Serenko & Stach, 2009). In this encounter, there was confirmation of expectations about the applicability of the Woolworths app in online shopping of products from this firm. In addition, based on the virtual of the purchased product being delivered even within a shorter time than expected, this culminated in high satisfaction, a concept which is founded in the disconfirmation of expectations paradigm. As a result, this informed the evaluation on the likelihood of using this particular service in the future based on its applicability. This fact is supported by Serenko and Stach (2009) who determined that the efficiency and applicability of using an online shopping method increases the likelihood of a consumer using it in the future and the likelihood of recommending it to other potential users can be predicted. Moreover, the level of satisfaction can be key in informing the future behavior of the consumers. Nonetheless, despite this high satisfaction, there was a noted concern that the firm ought to increase the alley of products in their online platform. This will increase the consumer choice which will elevate their satisfaction. This will be key in confirming the high expectations of the consumers on this app. 4.0:Analysis of Cremorne Automotive Services encounter It is imperative to note that this service station was recommended to me by a friend who was convinced that this firm offers not only high quality and timely services but also at a reasonable price. Of particular concern in this analysis, the latter aspect is integral in informing the satisfaction of the consumer perceived value of price. This is whereby the consumer feels that he/she has gotten the value for his/her money. In this particular encounter, I had high expectations that the service which will be offered will be at a sensible price, based on the trivial nature of the mechanical problem that my car had. On the contrary, the service provider went ahead of charging double the expected price, far higher than the other service stations I had previously been engaging. Furthermore, this service took a long time due to the limited employees in this firm. A combination of both of the above factors had the spiral effect of leaving me overly dissatisfied with the services offered and subsequently informed my decision of possibly never visiting that service station again. 4.1:Evaluating the scenario in model perspective This scenario will be assessed using the 7 Ps marketing mix model, more specifically focused on price and people. In this encounter, the price of the service being offered superseded the expectation resulting to the bitter feeling of dissatisfaction. In this case, it is worth noting that in the 7 Ps marketing mix model, the formulation of pricing strategy is highly integral in the view of influencing the target market (Kalaimani, 2009). According to the attribution theory, this inconsistency in over pricing which is a cause of high dissatisfaction can be traced back to the control of the company. This is founded on the fact that this organ has the overall mandate of checking the prices of various services and aligning them with the consumers’ expectations as well as those being charged by other service providers in the same industry. On the other hand, the people component in the 7 Ps of marketing can also be used to evaluate this encounter. In regard to this tenant, Kalaimani (2009) determined that it is fundamental to develop the human resource at the organizational level using various mechanisms, for instance, education, psychological tests as well as training among others. Moreover, incentives have the capacity of not only injecting efficiency among the employees but also motivating them towards more productive and qualitative work. Nonetheless, it was apparent from this encounter that the employees in this firm were extremely unmotivated, a phenomenon which can possibly be traced back to lack of incentives to increase their productivity and efficiency. From the attribution theory perspective, this can also be traced back to the control of the company whereby the lack of motivation mechanism and recruitment of insufficient numbers of employees can be key in informing the low motivation among these employees. 5.0: Analysis of Zushi encounter In this encounter, the expectations that this restaurant will provide the required catering services were thwarted after being informed that their schedule is fully booked. In this case, this experience generally failed to meet my expectation and culminated in a high level of dissatisfaction. 5.1:Evaluating the scenario in model perspective This is analyzed in the disconfirmation of expectations paradigm whereby the mail response I got from this firm disconfirmed my expectations about the flexibility of this company to offer the requested services. This was against the earlier assurance over the phone that the restaurant is capable of offering catering services at any time. This culminated to the evaluation of service quality being poor, a situation whereby service quality can be perceived as conforming to the expectations of the consumers on a consistent basis (Pettersson & Johnson, 1993). Additionally, the person I contacted over the phone was rather rude and arrogant which added up to my dissatisfaction. Thus, the level of dissatisfaction and the subsequent evaluation of minor likelihood of going back to this place could have been informed by the importance of the occasion being planned which was almost disrupted by the response of this restaurant. Recommendations It is recommended in this report that firms ought to institute robust mechanisms to increase the satisfaction of their consumers which will in turn inform their loyalty and the competitive advantage of the firm. Conclusion The above analysis has explored the service marketing experiences in five firms. Most of them scored high in terms consumer satisfaction and influencing positive consumer behavior, for instance, Qantas airlines and Woolworths Supermarket while others like Zushi and Cremorne Automotive Services scored low in these respects. Lastly, it has been recommended that these companies ought to institute mechanisms to elevate consumer satisfaction. References Fen, Y.S. & Lian, K.M. (2005). Service quality and customer satisfaction: Antecedents of customer’s re-patronage intentions. Sunway Academic Journal, 1: 59-73. Kalaimani, G. (2009). 7 P’s of services marketingin insurance and banking services. Journal of Management and Science, 1: 1-3. Krishundutt, M. &Parumasur, S.B. (2003). Using the conceptual model of service quality to map gaps in perceived service quality in a banking sector and hence make recommendations for improvement. International Retail and Marketing Review, 1: 41-58. Pettersson, P.G. & Johnson, L.W. (1993). Disconfirmation of expectations and the gap model of service quality: An integrated paradigm. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 6: 90-99. Serenko, A. & Stach, A., (2009). The impact of expectation disconfirmation on customer loyalty and recommendation behavior: Investigating online travel and tourism services. Journal of Information Technology Management, 20(3): 26-41. Swan, J.E. & Trawick, F. (1981). Disconfirmation of Expectation and Satisfaction with a retail service. Journal of Retailing, 57(3): 49-67. Read More