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University

satisfaction occurred when the expectation has been confirmed which equal to the performance. on the university, satisfaction occurred when the subjects are applicable for student in the future workplace and also have facilitates that can support learning process.

Delight occurred after the satisfaction, when the actual performance is way better than customer value and expectation. in university this will be when they are provided with modern high standard learning facility, and also being helped a lot to achieve good mark with very applicable material for student in the future workplace

customer retention/ loyalty will start sharply increases when delight occurred (non linear relationship between satisfaction and loyalty. for university, loyalty occurred when they prefer the same uni for their master or PhD, and also for their children in the future

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Airline

Relationship among customer satisfaction, delight and loyalty

Delight is only available when satisfaction has been achieved, therefore service providers must first make sure they are meeting all of the customer’s expectations if they want them to be delighted.

When there is mere satisfaction, it is possible that customers will be delighted. With delight, customers have satisfaction.

Customer satisfaction

Arrive on time

High quality for waiting

High quality service for first-class customers

High quality of food

Delight

Free seat upgrade for long term customers?

High quality service for economic-class customers? (offer vegetarians meals)

Arriving earlier than scheduled

Luxurious service for waiting (free wifi, food, drink, priority of boarding & charges)

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customer satisfaction and delight lead to loyalty where the consumer is less likely to switch to a competitor

Restaurant
Customer satisfaction: example if a customer asks for vegetarian food, the satisfaction would be delivering that without messing up and giving them meat instead. Satisfaction would also come from having a clean environment with good service and facilities such as having a bathroom

Delight: having exceptional service, friendly staff, complimentary items like complimentary cake on birthdays.

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Supermarket:
Customer satisfaction is what the customer want to get basically , the delight is the gap between the loyalty and the customer satisfaction.
For the supermarket:
The customer satisfaction: A customer want to buy the fresh vegetable, the satisfaction is that the supermarket provide the enough fresh vegetable.
Delight: A very helpful staff, free parking and incentive

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Health Service

Tangibles - the hygiene of the equipment used
reliability - give the right medical treatment
responsiveness - always available for scheduling and re-scheduling appointment remind the appointment schedule to the customer
assurance - doctor should be able to answer the patient problem or if they do not know, they new to recommend them to the specialist; qualified doctors
emphaty - Doctor need to focus on the patient along the appointment

listening gap: when the customer service mistakenly scheduling the customer appointment
Design Gap:
Delivery Gap: the doctor that customer want suddenly unavailabe on the day of appoinment
Communication gap: the avaiable doctor on the app (HotDoc) does not match with the real life.
Perceptions gap: the doctor still have appontment with other patient when the time of the next patient appointment

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Tangibles:
-physical facilities such as gym equipment, basketball courts
Most of equipment is in great condition

Reliability: when bookings are made, Monash sports make sure of availability and all facilities are in good conditions.

Responsiveness: Crews are well trained at Monash Sports and they are able to solve any potential issues

Assurance: students feel safe while using all facilities and when injuries happen the staff have the ability to deal with it

Empathy: free for students in monash

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On-campus housing
Tangibles: Small theatre, Laundry room, study space
Reliability: safety (in campus)
Responsiveness:
Assurance: Security door,
Empathy: Contact agent easily

Gap: Did not provide what they promise. E.G. furniture is almost  not useable
The customer did not get what they expect. The space is small then what they think.

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Library

1. Tangibles (appearance of physical elements)

Library layout

Library book quality

2. Reliability (dependable, accurate performance)

Borrowed books being returned on time so that customers on waiting lists can borrow them

3. Responsiveness (promptness and helpfulness)

Having a good computer system that accurately tells employees how many books are in stock and which ones are unavailable or on hold

4. Assurance (competence, courtesy, credibility and security)

Having receptions on the ground floor

Staff know their scripts and how to approach and help customers

5. Empathy (easy access, good communications and customer understanding)

Free wifi

Free parking

Staff availability/knowledge

Inform the opening and closing time in advance, information can be checked online

Gaps:

Communication gap: told a book would be available, but it has already been checked out.

Design gap: Expecting adequate study areas, but find that it has already reached maximum capacity.

Listening gap: Expecting a large selection of books/study area, but the library does not have either?

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Telstra
Connection problem

Equipment - technical issues, mechanical failure
Backstage- Not enough employees present to fix the problem. Holiday season - many employees are not working in.
Front stage - Employees making false promises saying the connection is strong and works everywhere at all times.
Poor information given to customers about service/connection not working
Customers- Have not updated phone for the required standard they signed up for
Other causes:
Weather

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Busy Restaurant
Information
Poor announcement regarding the waiting time
Materials, supplies
- Late food service
- Duration of preparation of food
Customer
- Waiting time for bills
- Late arrivals for booked table
Frontstage
personnel
- Lack of waiters/ waitress
- Valet
Facilities, equipment
- Tables, Glasswares, Cutleries, Chairs

Backstage personnel
Lack of chef
Other causes
- Weather
- Traffic jam

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Melbourne Metro Train

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TPG internet service
a. the slow internet, unlike what they promise for the price that i pay, it happen because the modem that they sent are not properly function. after a long phone talk they said they will change the modem but i need to pay $10 for delivery fee and send back the old modem

b.
effective complaint handling: the front line employees should take the complaints politely and ask the detail of problem to the customer

Identify service complaints: try different way to solve the problem (internet speed test, and connect directly to the network (with cable)

resolve complaint effectively: there is a problem with the modem,  TPG need to send the new modem and ask customer to send the old modem back

learn from the experience: do the quality check from every modem that they want to deliver

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Delayed shipping

Root causes:

Natural disaster

Missing package

Delayed dispatch (possibly due holidays (christmas) or promotions etc.)

Incorrect information (address etc.)

Inventory is not enough

Specific recovery strategies:

Apologise and promise will be faster deliver (acknowledge that it is your fault, don’t be defensive)

Return some part of shipping fee

Update customer on delivery progress (if item still has not been delivered)

Free shipping, reship for missing items

Provide more detailed information during waiting time (e.g. where the product right now)

Provide alternatives, e.g. pick-up in stores

A discount for next purchasing (form of compensation)

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Battery replaced for mac did not make a difference. Poor quality
Wasn't trained effectively

Respond within 2-3 days of the complaint
Offer free service(compensation)
Explain the issue
Offer in store credit

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Telstra
Broken phone within 4 days of purchasing. Had insurance but wanted to get the fee waived in good  faith.

- went to the store and the store said to call the insurance team
- called insurance team and they said to call billing to get the fee waived
- billing was rude initially but after speaking for a while she became nicer and said she would email her manager for approval for the fee to be waived
- "while she was waiting for approval"  she tried to sell broadband to to me
- ended up saying if i wouldn't buy broadband she would not help me

root cause:
- wrongly incentivised

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Car Mechanic
a) Get the car fixed, an engine problem related, they forgot to warn about temporary speed limit once the car is fixed and eventually the car get broken again

b) They apologise and gave a discount for the next service appointment

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Hairdressing

Attracting new customers:

Promotions, student discount, new customer discount

Word of mouth (Through good service)

Advertising,

Expanding business online and having a social media presence (Instagram accounts allow customers to look at your work and see how credible you are, giving them more assurance)

Encourage existing customers to purchase more units of service

Coupons? 5th haircut is free etc.

Purchasing a bundle service, save money than single service (If two people come in together you get a discount)

Get a discount for next hairdressing

Using products such as shampoo and conditioner on their hair and then having the products available for sale at the register when they pay for their service

Get a discount by a membership card (Membership cards are given based on haircut frequency)

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Flight Centre (Travel Agency)
1. Attract new customers

Offer a holiday package that is different from competitors

Offer  Additional/complimentary add ons for booking with Flight Centre

Complimentary Breakfast Included

2. Encourage existing customers to purchase more units of service

Give options for customisable trip

Exclusive deals for customers + additional discounts for returning customers

Increase discounts per trip e.g.  5th trip 20% off

Birthday discounts

Encourages customers to engage with agency

10% off during your birthday month when you sign up as a member

If they come for specific holiday destination, we can offer package bundle with another destination (e.g. china, hongkong, and macau)

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Fitness First
1. Attract new customer
- Free guest pass
- Monthly promos
- Advertisement in heavy traffic locations
- Referrals
- State wide access

3. Encourage Existing customers to purchase higher value service
- Access to all classes
- access to dietician session
- Monthly PT, with plans

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Car Mechanic
1. Attract new customers

- Offering fixes on any types/models of cars
- Supplementary services

2. Encourage existing customers to purchase higher value services
- Advising further fixing
- Educating the customers why the high quality parts are better

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Optus
1. Attract new customers
- Offer better plans
- Good quality of customer service, in-app chat
- Movie deals
- Student Discounts
- Bundled services (Wifi, Data connected)
- Vouchers
- Oscars seasons, exclusive access
- VIP trip to London fashion week
- Win free movies tickets
2. Encourage existing customer to purchase higher-value services
- Phone and Plan services
- Data pooling
- Data roaming overseas
- Efficient services
- Bundled services (Wifi, Data
connected)

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HOTEL

1.
Loyals:

people who prefer relaxation on their holiday, for them the risk to try new hotel is to big, they tend to stay on hotel that they feel comfortable with

Members - e.g; RACV club members, Marriot Members

Habituals:

Corporate travellers

Time conscious travellers

Multibrandsers:

people who search for luxury holiday, however they want to explore new view and facilities

Families searching for the best price

Switchers:

Backpackers, low- budget travellers

one off travellers - honeymooners

2.
Switchers to Loyals

provide promotions that leads to price discounts

Multibranders to Loyals

provide variety range of supplementary services to make them to stay on that hotel, because all things that they want is on that hotel

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Session 8 G3 Activity 1 Fast-food restaurant: McDonald’s 

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Session 8 G3 Activity 1 Fast-food restaurant: McDonald’s 

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Loyals

Long term customers (nostalgia)

Customers who just overly prefer one brand over others

Customers who have had bad experiences with other fast food brands (openly advocate against other brands)

Habituals

- they always choose Mcdonald’s based on habit or convenience (near their house or workplace etc)

Multibranders

-they consider Mcdonald’s or KFC, choosing based on promotions or lower prices

- customers that seek new products, will choose based on new choices (e.g. new burger)

Switchers

Customers choosing based on convenience

Customers who are very price sensitive (will go with the promotion)

No fast food preference, favours various brands equally (low perceived risk in switching)

Strategies to convert:

Switchers:

Offer deals and coupons for users (on My Maccas app, encourages consumers to use the app to check deals)

Increase convenience of purchase (eg. self-serving digital counters)

Multibranders:

Employ marketing campaigns to differentiate from competitors (Eg. Maccas Monopoly, 30 days of deals etc.)

Have all food information and value easily accessible on website

Multichannel marketing to appeal to multibranders across a range of mediums (Eg. Online, billboards, email marketing etc.)

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Department Store

Loyals:
Gold Membership cards holders

Multibranders:
-consumers who choose to shop at myer, david jones, H&m, Target, Big W,
- looking

Switchers:
- low to medium income earners who are sensitive to price and promotion
- no emotional attachment to store

Habituals:
-People that live around specific department stores
-medium to high income
-Trend followers
- looking for convenience
-looking for specific styles that the store is known for

Strategies to convert:

-Consumer reward programs.
Email Lists
-Promotions for card holders
-Events for store regulars
-Free delivery
-Discounts at partner stores for card holders
-invitations to special events
-targeted social media advert

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Airline
a) Loyals: business travellers
Multibranders: holiday goers
Habituals: traditionalists
Switchers: young travellers (uni students)

b)Create a reward system
Optimising the in-flight entertainment
Expand the variety of locations

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Clothing Store (Cotton On)
Loyals
- There are very few loyal customer (donation), excepts to those who really favour in their products, or those who have memberships/ student discounts
Habituals
- Style of the product
- Employees communication with the customer may lead them to be more keen on getting the product
- Scale of the store, attractiveness of the store because the furnitures of the stores might attract more new customer, therefore leading to more habituals customer coming into the store
- Sales of "outdated" products
- Few habituals customers as well: Convenient, casual looks, not too expensive, affordable
Multibrands
- Quality and price of the product
- Sales of "outdated" products
- Few multi brands customer: Look into cotton on for their own sake of searching for new styles/ fashion
Switchers
- Price sensitive for consumer such as students
- Few switchers: Promotion favours consumers who are seeking for lower price product

Strategies:
By changing switchers and multi branders to loyal, employees can start can start of to have communication with the purchaser, which would lead them to be more keen on looking the products, hence, leading them to have a better impression with the store itself, where loyalties would be found!

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Car Insurance Company

Functional risk: Will the insurance company be able to properly compensate me for my losses,

Financial risk: Is insurance a worthwhile investment?

Temporal risk: Time it takes to receive insurance money,

Psychological risk： after people purchase the insurance, he may not care about accidents (the insurance company may not adhere their promises)

Social risk: will my friends think it is not a reliable insurance company?

Sensory risk (not needed)

Possible ways to reduce risk:

Properly inform the customers on benefits of insurance ( e.g. advertising, informative brochures etc.

Advertising, e.g. it is a common way to invest, show successful case on the website?

Collecting feedback and giving suggestions to friends, both will gain a discount. Make changes on key feedback trends that occur (negatives).

Rely on the reputation of the firm (e.g. RACV)

If there is an accident happen this year, the car insurance company should increase the price of insurance in next year

Setting the website for the company and introduction the information

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Online Shopping (Amazon or Ebay)
1. Functional Risk: whether the goods that they buy are match they expectations
2. Financial risk: whether the shipping that they pay worth the money (express shipping faster than regular shipping?)
3. Temporal risk: whether the goods will arrive when they needed (buying gift for birthday)
4. psychological risk and Social Risk (5) : fear of rejection of using a bad product
6. Sensory Risk: receive low quality product that can harm physically

to resolve
1. advertise using the exact photo of product
2. give a shipping warranties
3. provide customer reviews on the page

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Adventure Sports
Functional risk: sae enough?
Reduction: safety certifications,
Financial risk: worth the money paid
Reduction: to show photos of people having fun
Temporal risk: waiting time
reduction: distract the customers
Psychological risk: fear of performing the sports
Reduction: safety instructions and assurances

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Legal Services

Functional:
- Concerned about the performance outcome
- Concerned about how good the legal service will be (lawyer's experience)

Financial
- Legal services very expensive
- Many legal services require you to pay whether you win or not
- consultation fees
- Concerned that they may need to pay a higher price to receive a more experienced lawyer to reduce functional risk (both functional and financial??)

Temporal
- time consuming
- time is viewed scarce resource, customers may spend time with legal services and end up with the same results without legal services

Psychological:
- Anxiety in the lead up performance outcome
- detriment to mental wellbeing if money is spent and no result is achieved

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Risks:

Functional - How can i be sure if they do the job

Financial - Will i incur unexpected expenses?

Temporal - Will it take longer than expected

Psychological - What if it hurts, to painful, i faint

Social - if i get braces how will others think of me

Sensory - will be ablen to relax in the chair, will i not be able to taste food the same for a while

Reduction:

-Certificates
-customer reviews
-ask friends, family
-look at multiple dentists
-use internet
-trust the same service
-ask employees
-calming music in waiting room
instructional videos in waiting room to ease tension about procedures

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On Campus Education Vs Online education

1.  people who prefer to interact more with people (extrovert) will prefer on campus education. on the other hand people who prefer to be alone (introvert) will prefer online education
2. people who understand and quickly absorb new technology tend to prefer online education whereas people who does not really understand technology prefer on campus education since they need the guidance
3. full time employee (have other routine activities) will prefer online education, where as full time student tend to prefer on campus education

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Restaurant dine-in vs Food delivery

Restaurant dine in characteristics (High contact)

Consumers that want to experience the full service?

Those who want to dine in for special occasions

Consumers seeks higher quality services and foods

Customers focus on health issues

Consumers want to enjoy services

Customers likes to eat foods in that atmosphere

Food delivery characteristics (low contact)

Busy consumers (no time to actually dine in)

Possibly younger customers (more open to food delivery, good at using technology?)

Not living in a safe areas, such as clayton, At late night, (too late to go out)

Consumers that look for convenience

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Retail Banking vs Online Banking
Age: youngsters prefer online, adopted the technology preferences
Nationality: internationals have a preference for online
Geographical: those who live far will have a preference for online
work schedule: those who have a busy schedule will prefer to use online banking
Degree of issues: those who have complex issues will want to go to the bank to better explain their problems

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Super Market Employees (High-contact)
- Face to face interaction
- People Processing Activity
- Assist people who prefer to make their purchases FTF
- Queries can be answered by the employees at the check out counter
- Older people prefer to make payments FTF
Self Check-out (Low-contact)
- Machine based
- Technology
- Weighing Scale being implemented into the machine itself
- Employees that helps around
- Youngsters prefers to have quick-advanced check-outs
- Queue (depending on the line)

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Airport Check in counter
- first time users
- older people
- people not confident with tech
- people not in a hurry
- higher class travellers

Self Check in
- language barriers
- low on time
- confident with using tech
- younger people
- people with social anxiety

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Costco

Ambient conditions
the ambient condition of costco is very wide space with a lot of rack filled with many goods which give an impression that you can find anything in costco, the lighting and the ambience shows inconvenience which provide information that costco is a lower end stores that only for people who wants to shop

Space/Function
the first thing that people see when enter costco is the electronic section and also the decoration station according to the event that close to that time (e.g haloween decoration around september to october), then there will be  dairy and food at the very deep of the place. the purpose of this is to attract customer with colourful decoration stuff that follow the event of that time and also the colorful electronic booth (e.g television that display movie)

Sign, symbols, and artefacts
very simple to the point sign

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Brunetti
Ambient conditions:

Constantly busy cafe - crowded

Scent of fresh baked foods

Warm colours in the store (Browns, warm lights)

Flowers on the table

Soft music

Spatial and functionality

modern, well-designed advanced structure in stores

Seating area outside the front, service bar inside, cake display near the counter

Quality cutlery and dinnerware

Signs, Symbols and artefacts

Cakes and pastries are on display near the counter, encouraging customers to order at the counter

Seating area encourages consumers to sit down and eat

encourages people to stay longer and spend more money

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The paperback bookshop
Ambient Conditions:
the smell of the books
quiet, bright

space/functionality:
bookshelf, fitting as many books in the space as possible but clear signs so people can locate what they're looking for, areas to sit down and read

Symbols and artefacts
historical: old/vintage looking, old posters, possibly offering limited edition books, old news article clippings on the wall

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Queen Victoria Market
Ambient conditions:
Smells of various fresh food, seafood, grilled, barbecues
Its really loud
Smokey air quality
Space
Quite crowded and tight
Stressful environment
Limited chairs/tables
Need to go to nearby toilets
Theres isles, like supermarkets
Limited ATMS, consumers have to line up to remove cash
Signs, Symbols, Artefacts
Street performance
No smoking signs/ no drinking beyond a point sign
Sign that points to where you can find toilets, different food
Old fashioned buildings
Sign that states NO EFTPOS so consumers can arrange cash

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LTB in Monash Uni
Ambient conditions:
number of people, interior designs (tables, chairs, wooden benches, etc), colors, food when approaching nesso, productive atmosphere

Space/Function:
tables/chairs helping students to be at ease while studying, the availability of lifts, stairs through the building

Signs, symbols and artefacts
high tech facilities, boards and signs for directions

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Theme Park
1. Engineer the customers’ experience and shape their behaviours. - fun and exiciting symbolic cues that can attract children such as shape of the building, employee's costumes, the food and they also use movie characters for their rides (e.g disneyland and movie world). these cues can provide message for customer that disneyland is the family friendly theme park and more tartgeted children and families.
2. Convey the planned image of the firm and support its positioning and differentiation strategy.
Disneyland provide the differentiation among their competitor by put their movie character as the trademark of the rides to attract more customer. moreover, the quality of the themed park also reflected by the cleanliness of the theme park and the ambience of the park compared with Luna park
3. Part of the value proposition.
the value that the want to show is fun and excitement
4. Facilitate the service encounter and enhance service quality and productivity.
Disneyland's quality is reflected on the decoration and the cleanliness of the park.

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Session 6 G3 Activity 1 department store, e.g. Myer

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Session 6 G3 Activity 1 department store, e.g. Myer

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1.     Engineer the customers’ experience and shape their behaviours.

message-creating medium

There are lots of brands in Myer, when customers saw too many brands who may think Myer is a diversification and fantastic department store.

Attention-creating medium

Considering the price, myer has a price policy that they will offer a lower price then other competitors.

Effect-creating medium

Myer has particular color and symbol, yellow/ orange

2.     Convey the planned image of the firm and support its positioning and differentiation strategy.

Myer branding is the same over all 61 of their stores in Australia. All stores have the same brand image of Myer and communicate this through advertising in store and externally. Their promotions and stores reflect Myer’s positioning strategy.

3.     Part of the value proposition.

For family time, there is a display about Christmas theme each year, not just department store.

4.     Facilitate the service encounter and enhance service quality and productivity.

They have online purchase.

Collecting feedback for customers

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Hospital (Private, high end)
1) The interior facilities of the hospital will give comfort to the consumers. Example - Good seating areas, many bathrooms.
2) Private hospitals have colors other than grey which will give consumers a better ambiance
3) More qualified doctors that personally connect with the patients - empathy , trusting environment
4) Booking appointments, shorter wait times
5) Pleasant smells - give comfort
6) Caring service, have a cafe, or employees that offer tea/coffee/water, vending machines

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Hotel (High-End)
First & Second Core Purposes:
1. Valet
2. Offering to take luggages, greets the guests
3. Decorations (high ceiling, grand piano, ambient, classical music, carpeted floor, pleasant smells, clean environment, luxurious), bell man (offers to take bags, sincere)
4. Front desk (assistance, receptions, check-ins), supplementary services (free breakfast, snacks, free drinks (champagne, fruit juice, etc))
Third Core Purposes:
5. Supplementary services: Spas, Gyms, Swimming pools, cinemas in the hotel
Fourth Core Purposes:
6. Bookings (online bookings, phone calls, self-check outs)

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Retail Bank
1. Personal assistance upon immediate arrival, guiding you to the right direction/person

2. Being promoted/ connected towards a good cause (CSR)

3. Extra residual benefits (discounts upon signing up), trust

4. Timeliness, accuracy, efficiency of services provided

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McDonald’s

Cycle of Mediocrity

Employee cycle:

Extensive training, short-term training, also with amount of part-time employees

Above average wages

Employee satisfaction, not satisfied, too much tasks with low return

High turnover rate, low employee satisfaction

High profit

Narrow design of jobs

Jobs are boring repetitive

Customer cycle:

Customer loyalty (Brand loyalty? Know what to expect?) Customers generally only loyal when discounts are on (E.g McDonald’s Monopoly game)

Customer dissatisfaction (during peak times service may take too long)

Resentment of inflexibility (low customization, generally follow script)

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Session 5 G4
Amazon
Cycle of failure
-high turnover rate
-The average employees only stays with the company for a year
-Huge demand for software programmers-demand is larger than the supply so employees are overworked.

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we choose APPLE.

Employee cycle:
-extensive training
-positive attitudes
-employee satisfaction
-high profit margins
-high service quality
-good relationship with customers

Customer cycle:
-customer loyalty
-high customer satisfaction
-low customer turnover

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Monash University Berwick Campus - Cycle of failure
- customer dissatisfaction
- partnered with FedUni
- failure to develop customer loyalty: small campus compared to Clayton
- low customer loyalty; far away, limited faculties

Employee cycle:
- monotonous; not so many students
- unattractive workplace - sharing with FedUni staff

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Apple

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Optus/Vodafone store

Frontline employees

Sale assistants

Customer service

Technical troubleshooting assistant

Role of the frontline service

To greet customers and help them make purchases through recommendations

Give advice to help customers solving IT problems

Role script

Assistant: Hi, how can I help you?

Customer: Hi, I’d like to upgrade my mobile phone plan.

Assistant: No worries, I can help you with that. What is important to you in your phone plan? What data and call requirements do you have?

Customer: *gives requirements

Assistant: *Proceeds to show options and give recommendations based on expertise

Customer: I think this option works best for me. I am happy to go ahead with it.

Assistant: Great, I can help you upgrade to this plan now.

*Purchase is made

Assistant: Is there anything else I can help you with today?

Customer: No, that is all, thank you.

Assistant: No worries, thanks for coming by and I hope you have a great day.

How to improve your frontline service

Employees paid on split wage - base and commission to increase performance and sales

Employees given thorough technical (have in-depth product knowledge)l and interpersonal training

Build a corporate culture to give employees more passion on work (employee empowerment, bonuses etc.)

Accept some honest feedback from the customer (make changes accordingly)

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	Session 5 G4 Activity 1 		                

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	Session 5 G4 Activity 1 		                

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Bunnings
1. Sales assistants

Help customers find products, greet customers, provide specialised information on products

2. Responsible for producing customer value, organisational productivity and sales

Provide advice, answer customers queries, and make the sale

3. Strategies

Personalised assistance from greeting to point of sale

Specialisation - have knowledgeable employees who know how to solve problems - consumers go to Bunnings to purchase tools and equipment

Included in ongoing training process

Have days in store where a specialist or knowledgeable person is available to assist customers with the problems

Self service machines for customers who know what they need

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High end Restaurant
(a) Frontline employees:
1. Waiters: take orders, serve customers, meeting their needs
Script: showing customers their table, making them at ease with refreshments, giving them time to order, serving them with their needs, providing them the bills
Improvement: using names, feedback, improving high quality customer service

2. Receptionists: taking reservations, allocating tables, welcoming customers
Script: taking reservations, can be on phone or online, welcoming customers, presenting them with the waiter serving them
Improvement: training for their tones

3. Doorman: welcoming customers inside the restaurant, leading them inside
Script: greeting them, opening the door, leading them their ways
Improvement: taking customers' coats

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Specsavers/ OPSM
Frontline employee:
Retail employees, optometrist, cleaners

Role of the frontline employees:
Retail: Greeting customers, helping them choosing frame (frame styles), cashier/ billing, booking appointments, inventory (restocking products)

Optometrist: Eye-check ups, prescription writing/ determining, order prescription contacts and glasses

Cleaners: Sanitises the eye-check equipment

How to improve your frontline service:
Technology (up-to-date), sales incentives for retail products, above average wages, trainings/ additional programs, feedback and recognition, social gatherings, free drinks, discounts

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CAR DEALERSHIP
frontline employee:
receptionist
salesperson
manager
mechanics
cleaners
car care consultant

role of the frontline employee:
receptionist: offer the customer with water/coffee/biscuits

salesperson: greet the customers, ask them what their looking for and make suggestions or recommendations.

manager: manage the store, make sure everyones in their position and if things are running smoothly. Deal with customers who have problems with loans and finalise paper work. asking customers if they are being handled well and if they need anything, make small conversation

mechanics: will be on call if a car needs service or repair

cleaners: responsible of keeping the dealership area clean

how to improve the frontline service:

1) reduce the waiting line by having more sales people who can attend to customers quick
2) have professional trainings for all the employees so they can be efficient
3) Having a reservation system online or on an app. The app can also have information about the different cars available to make it easier

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Family-owned Restaurant

Costs and benefits to the customer:

Customer value is most important because of high competition

Matching what consumers are willing to pay

Balance between benefit and the perceived cost

Functional benefits:

Reliability that there will be a meal and drink made for you

Hedonic benefits:

The atmosphere and experience of eating in a restaurant

Symbolic benefits:

Book a dinner for birthday, some memorable moment

Delicious food

Costs/Perceived risks:

Actual cost of the service (food)

Time and effort used to find suitable restaurant/ restaurant parking

Risk that restaurant does not meet expectations

Social implications e.g. get a like after posting the picture about the meal? Eating meat around a vegan community?

Psychological risk: customers confidence the food is fresh? Is the restaurant hygienic?

Pricing strategy

Competitive based pricing

Staying competitive by monitoring similar restaurants and what they are charging

Higher quality service, special products, e.g.limited luxury liquid,

Lower price when compared with equivalent restaurants

Specific location, e.g. near the yarra river/ near train station

Reducing time required for service (e.g. serving time)

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Session4 G4 Activity 2
Travel agency
Functional Benefit - getting a holiday package, people do not need to arrange their own itinerary
Hedonic Benefit - free gift that they can get (travel bag), fun feeling for the convenience holiday
Symbolic Benefit - They can recharge themselves with a good holiday trip
Cost Benefit
financial risk, more expensive rather than arrange their own itinerary
Time benefit - more efficient
social risk -  consider family needs
physiological risk -  whether it is a trusted agent or not

pricing strategy
Hybrid strategy between customer value and competitor since the trip must be according to customer needs and wants and they also need to consider the competitor pricing since many travel agent offer same destination trip

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Medibank/Bupa
Costs:
Financial: price of monthly insurance premium
Time and effort: Calling and speaking to sales team, waiting time, claims processing time
Functional or performance: Do you meet the conditions for a claim to be paid out?
Psychological risk: Media bashing private health insurance industry. Government reforms
Social: Who friends and family are insured with. Brand community service

Benefits:
Risk prevention: avoiding high costs of medical procedures in unknown accidents
Money back

Price strategy:
Cost: Charge based on state, age (Lifetime health cover loading), income level, family size

Competitor: BUPA uses more of a competitor based pricing as they are considered a budget private health insurer, therefore they need to be cheaper than their competitors. Medibank not budget but cannot charge too much more than competitors or no one will go with medibank.

Value to customer:
Functional/Instrumental:
Medibank value based pricing, better reputation, more reliable (more hospital agreements)

Hedonic/experiential: higher customer service at Medibank, long term members sometimes receives gifts

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beauty salon

costs:
financial- how much is the haircut

time and effort: if the location is convenient for consumer, easy to access, public transport or parking space near the salon

functional or performance risk: if the performance can meet consumer's expectations, how well can the hairdresser understand the need and demand from consumers, is the hairdresser creative or understand the trend,

psychological: service from hairdresser, hair treatment, products, problem solving and consultation

social - social approval from peer and family, fit with the consumer personality and dress, career

benefits:
confidence, self-esteem, symbolic or expressive value , hedonic or experiential value

pricing strategy :
competitor strategy: higher the cheapest option to gain profit.

consumer value based strategy: consumer pay for how much they perceived the service.

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Dental Surgery
Costs:
- Financial
- Time and effort
- Psychological (fear)
- Performance risk (medical negligences)

Benefits:
- Social benefits
- Healthy teeth
- Psychological benefits
- Physical benefits (more confident about oneself)
- Financial benefits ( no need to have more frequent visits to the dentist)
Pricing Strategy:
Price premium: health is vital so customers tend to be price insensitive

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Airlines

Physical

Basic product

Class of travel (Economy, Business class)

Seat location (window seat or aisle seat)

Possible airplane model preference?

Amenities

Included Food/entertainment

Airport pickup

Service level

Online check-in

Class of travel

Food selection (e.g. pre-ordered meals vs inflight purchases)

Non-physical

Transaction

Early bird discounts

Travel route (e.g. direct or transit) - stopover packages

Additional fees incurred (e.g. changing departure dates)

Consumption characteristics

- location of consumption-Departure location, international and domestic

- Time of departure (early mornings typically cheaper)

Buyer characteristics

Student discounts

Volume of consumption- platinum member gets discounts for loyalty

Size of customers’ group

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Physical

Difference in the type of theatre

Gold Class

IMAX

XTREME Screen

Location

3D

Distance from viewing screen

Non Physical

Transaction features

Booking type

Time of booking

Booking fees for online/app

Seasonal discounts

e.g. Valentines Day specials

Consumption features

Time

Buyer features

Membership discounts

Rewards systems

Type of consumer

Concession rates

Student/Child rates

Senior concession

Family deals

2 adults 2 children

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Restaurant
Physical:
- Size of the restaurant
- Variety of foods
- Free parking
- Cloak room
- Priority seating
- Ambience
- Playing space for kids

Non-physical:
- Time of booking or reservation/ flexibility
- Group booking discount
- Happy hours (specials)
-

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cruise ship

physical fences:
size of room, location of the room,  multiple access for entertainment facilities, decoration of the room, upgrade room for loyalty programme consumer

non-physical fences:
view of the window, local tour guide, first in first out, luggage capacity, priority seating in restaurant,  casino credit and service ,
same service pay different.
group package 10% discount
student discount, national services

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department store
*physical
department store credit card
- service level, priority wait-listing, pick up services for packages (priority shipping)
- amenities, free champagne
*non-physical
- frequency or volume of consumption, member  of a certain loyalty tier with the firm, pick up services for packages (priority shipping)
- group membership, student discount
- geographical location, tourists are being charged lower rates
- time or duration of use, early-bird special

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Session 3 Group4 Activity4
Ski Resort in Winter
1.  applied single line to multiple servers queing for ticketing
2. Apply designated lines to designated servers queing for equipment hiring (Accoring to the size and the type)
3. online reservation (e-tiket), these people do not need to queue on the ticketing line
4. online equipment hiring (including in the reservation)
5 pay more for the fast express

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Telstra Call Centre Wait Time Strategies

1. Dial-ahead menu where customers can be directed to a particular department (E.g. “If you are calling for a network server issue, please press 2”)

2. Cross-train employees so that in the case that one department has excess requests, they are able to help

3. Playing Music during waiting process

4. Use part-time employees when there are lot works (e.g. when a new product is released)

5. Having explained waiting times (e.g “You are 3rd in the queue”)

6. Extend call centre operating hours when a new product is released (or when more complaints are expected)

7. Giving customers the option to leave their number so that the company can call them back when they are ready, so customers do not have to wait on hold

8. Automated troubleshooting for common problems

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Check-in Service at Airport
- Self Check in; educate travellers how to, resulting in encouragement to do so
- Higher demand then hiring more employees
- Favouring travellers with less luggages
- VIP check in  - need to pay more

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1) Carpark is not accurate, having system to improve the indicators (red light)
2) A huge screen when entering the parking to see how many parking spots are available. Or show regions in the parking where there are spots available
3) Having an app that shows parking availability across chadstone for frequent shoppers or people that need to be quick
4) Showing the peak hours of parking on google
5) Having a car park sight a little further but having a free bus shuttle to take customers to the mall
6) Redesigning the car park to have better exit points so people can enter and exit simultaneously without making traffic worse

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Ed Sheeran live concert
Take the numbers (door number assigned to ticket)
Single lines to multiple servers
Pay a premium for the extra entrance.
Provide the water and snacks for the waiting time.

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1. Do demand levels follow a predictable cycle

More demand in the morning/night before and after working hours

Different types of sport are on at different times of the year/seasons

1. What are the underlying causes of these cyclical variations

school hours and vacations for students

Less demand for public holidays

Employee working hours (demand in morning/night)

Seasonal change influence demand, e.g. swimming and running machine?

1. Do demand levels seem to change randomly

Demand levels can change depending on the weather (e.g. a local soccer match may be called off if the weather is bad)

Demand also change when there is a natural disaster.

Healthy events, hay fever in summer

Demand change by the students’ exam timetable (different each period)

1. Can demand for a particular service over time be disaggregated by market segment to reflect components

For different part of customers, e.g. for student group, for residents group

Resident group- employed users have a high usage rate before and after working hours?

Student group- students generally have a higher usage rate during the day (class timetable hours?)

Most sporting teams/events are made up of current university students

Will the quality or quantity of equipment change the customer’s demand?

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Qantas Airline

Patterns and Determinants of Demand
1. the demand is in predictable cycle especially for traveller since they will travel on the high season such as summer holiday or school break
2. the underlying causes will be holiday season
3. the demand levels can randomly change due to the natural disaster that affect the flight such as bush fire.
4.  other segment might be dissagreetated in this case such as business traveller and retires traveller, since they can travel anytime and most likely travel when it is not holiday season

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1: Demand cycle: during a year cycle, winter demand would be higher and summer demand would be lower, but still have consumer will go hiking in summer.
Day-to-Day changes in the weather
2: Seasonal change in climate
Billing and tax payment
School hours and vacations
Public holiday
Natural cycles
3: Natural disasters
Day-to-Day changes in the weather
4: Consumer like skier in winter and someone like hiking in summer.

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Monash Library
Demand cycle:
high demand: seasonal which is within semesters, exam periods, during the day within semesters, weather conditions- rainy days
low demand: summer and winter holidays, start of the semesters, sunny days - more people outside

Determinants:
Time schedules, size of the library/university, other facilities such as cafés, transportations, weather conditions

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Seasonal dependent:
Electricity would be demanded more during winters because of more use of heaters and also because days are shorter. People tend to go out more in summers so less demand of electricity but will need air conditioning and fans.

Electricity demand is higher during school and working hours. Energy consumption lower on public holidays like christmas and easter as people travel out (mostly).

Some apartments/houses only let you pick specific companies that you can get electricity from and that can be a determinant of demand for WIN Electricity service. Price is also a determinant of demand, if people get to choose which company they can get electricity from they will compare the prices.

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Core Service: Online delivery groceries

Supplementary Service:
1. Information: the price and the term and conditions of the delivery
2. consultation: not much needed
3. Order Taking: Online order
4. Hospitality: professional
5. safekeeping: not applied
6. exceptions: the way of shipping (e.g: shipping fresh food should be on the right temperature)
7. Billing: the receipt that provide the correct price and amount of product that they buy.
8. Payment: Cash (at the time of delivery), Credit card, apple pay, etc.

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Activity 2: Childcare Centre

Information:

·      Service hours

·      Location address

·      Prices

·      Documentation – about parents and children

·      Dietary requirements

·      Emergency contact information

Order taking

·      Application

·      Enrolment

·      Reservation – seats per class, beds per class for nap time

Billing:

·      Verbal statements of amount due (per month/week/fortnight/day)

Payment:

·      Cash

·      Direct debit

·      BPAY

·      Cheque

·      Government subsidies

Consultation:

·      Meeting the carers

·      Programs/training

·      Observation – during trial period

·      Meeting other kids

Hospitality:

·      Providing certain meals

·      Transportation – pick ups

·      Waiting facilities

·      Extras amenities for kids – entertainment

Safekeeping

·      Lockers for belongings

·      Barriers/keyed entry so kids don’t run away

·      Transportation – safe transportation of the children

·      Renovations – to ensure safety

Exception:

·      Dietary requirements

·      Disability – special needs kids

·

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Core services

Seeing a doctor to get treatment/ checkup

Supplementary Services:

4. Facilitating

Information:

Informative flyers

Email reminders

Schedules/service hours

Order taking:

Making a call or online booking

Billing:

Customer invoices

Bulk billing

Payment:

Entering online credit card information

Using online fund transfer parties

4. Supporting/enhancing

Consultation:

Personal counselling

Hospitality:

Water tanks and magazines in waiting rooms, and television

Safekeeping:

Health centre car park

Exceptions:

Accessibility ramps for disability needs

Suggestions from customer feedback

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Session 2 G2 Activity 2

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Core services: The fun and experience received after visiting the park

Supplementary Services:
Safekeeping: Lockers provided to keep belongings
Hospitality: Customer service at the reception and around, from theme park employees
Order-taking: online facilities
Payment: non-cash services, online banking
Billing: if online - through email confirmation and invoices
Exceptions: discounts or special promotional deals, during holidays
Information: information about the rides, about movies, prices
Consultation: not recommended for people suffering from any medical diseases

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Session 2. G5 Activity 1