Physical fences

Non-physical fences

Buyer characteristics

Cost

Pricing strategy--Competition

– Consumers can compare firms with relatively undifferentiated services and choose the best one, which has the lowest price, more offers or good location.
- Therefore, can reduce the price to meet the competition

Frontline employee

Role of frontline

Role script

How to improve service?

Failure 

Circle of employee: 

- lack of empowerment for junior staff.

May result in NWOM from employees therefore lose potential Optus customers.

Circle of customer:

Cycle of Success

Training and empowerment of frontline personnel to control quality, training them with the communication skills, be smile and kind

Above average wages

Intensified selection effort

Extensive training for uber drivers or call support

It lead to lowered turnover, high service quality for customers, to make sure delivery food for customers on time

It earned high profit margins

It create broadened job designs

part of value proposition: it provides clinical expertise and leadership in obstetrics, neonatal, gynaecology,oncology and mental health. They foster a holistic philosophy of health, provide national leadership in health promotion and consumer health communication and the hospital is an important advocate for improvements in women's health and well-being.
Their Strategic Plan 2016-2020 was developed following extensive consultation with their people, partners, and with patients, stakeholders, and consumers. It outlines their priorities and areas of focus over the next five years
Differentiation : specialise in women care
-Abortion & contraception services

-violence and sexual assault

 

Four core purpose

As a message-creating medium, using symbolic cues to communicate nature and quality of the service experience. For example, for 5 star hotel like The Ritz-Carlton, the special design with luxury decoration in lobby shaping customers’ experiences and behaviour
Family-Friendly fun, featuring daily, destination-inspired activities, Ritz Kids engages children’s imaginations

Chinese restaurant, sauna, laundry service, business center, hairdressing room, western restaurant, coffee shop, bar, sauna, room for the disabled, massage room, clinic, shopping mall, tea room, billiards,

Holiday magic at the Ritz-Carlton, celebrate the season with exclusive package getaways festive experiences and luxurious, travel-inspired gifts.

Also, reception with approachable check in or out services

Use servicescape to enhance service offerings 

Swimming pool, restaurant, souvenir shop, 24-hour gym with brand-name equipment, Business center with meeting rooms and gratis printouts, free wifi

Room to relax, unwind with spacious layouts and decadent amenities in luxury suites and villas.

Department store - Myer

Brunetti Flinders Lane

Ambient conditions: Very old and traditional design, and the weathered stone faced outside the store is strong testament to substance comes before style - but Paperback is in indeed a place in which the substance of what's on offer is substantial. Many books are displayed in front of the window.

Clear example of this comes with the charming children’s section in a dedicated alcove with little chairs and more.

Space/functionality and signs:

The shop is tiny and near silent, with a maze of shelves maximising what little space is available. The floor peppered with piles of books unable to fit on a shelf or table.

Walking on in customers feel surrounded by paperbacks of every kind.

Symbols:

Top ten sales, price for each book, Book category(books for children, teenagers, you will find vintage wrapping paper, cutesy cards and empty journals at Paperback

Ambience: Colour has a strong impact on feelings, learning building’s colour is mainly warm, for example, the tables are made by brown woods. It creates a comfortable visual effect.

Music: no music

No scent

Noise:  depending on events, and how many students are making noise

Space and function : furnishing , layout, equipment :
wooden,  bright lighting, neutrals colours :

Layout: grouped in clusters and supported by informal learning spaces throughout the building like neighbourhoods

- Streets, courtyards, bridges, balconies and stairs are transformed into ravines, clearings, strands, perches, escarpments that are choreographed to invent a new landscape of the interior

-Made visible and accessible to the wider campus and community, rather than removed from the ground in a vertical structure.

- Innovative formal learning and teaching spaces are complemented by informal learning hubs that deliver a variety of study settings

Modern yet functional furnishing,- eg the stairs can be used as sitting area

Signs symbol and artefacts:

Monash has worked extensively to develop a new generation of navigation and building signage for its campuses in Australia. It starts with indigenous bushland, then colonial farmland, suburban subdivision and finally a university campus.
the room number in each classroom.
female, male toilet

Supermarket employees, consumers seem to prefer high-contact, people with older age groups would prefer more high contact services. People with technological anxiety would prefer this service. People with disabilities who is perceived loss of control would prefer high contact service. People who prefer high-contact service such as supermarket employee, would perceive the service to be more useful, easy and less risk when compared to self-check out

Self check-out, consumers seem to prefer low-contact, self-service characteristics is perceived in young people, higher education. It is perceived ease of use, people who use self check-out usually with lower technology anxiety. People are perceived higher technology readiness when choosing this service. Also, consumers feel that self check-out is more convenient, and they are perceived fun, especially for kids. 

Gender: would not play any significant role, or suggest one being high or low contact..

Education:
high education people prefer self-check in / lower level education prefers counter check in

Income level: would not to have a significant impact on whether high or low contact

Technology anxiety: low level of Tech anxiety will be more likely to utilise self service check in.

Technology readiness: If readiness is high the more likely they are to use self service. 
People that prefer high contact, would tend to be less technologically reliant and may not be as technology savy  as those with low-contact

Need for human interaction: low contact customer has less need to human interaction, if this is high the SSTs will be used less, as those may feel added value from interacting with a service employee.

extrovert people may prefer counter check in / introvert prefers self check in service as they like having low interaction .

High Contact - Dine-in (service employees and servicescape play important roles in shaping customer perceptions.

Low Contact - Food Delivery 

- Solution: Professional dentistry credentials by displaying certifications

, build strong reputation in their online reviews by past customers

Financial risk: Can they use insurance to cover the costs? Will they incur unanticipated additional costs? 

- Solution: Check the details in insurance document and it would be listed in it.

Temporal risk: What is waiting time for appointments? Time taken for surgeries? 

- Solution: Have a phone call to get more information from knowledgeable workers and make an appointment. There will  have the Tv screens for entertainment.

Psychological risk: Will people feel anxious about the appointment? 

- Solution: Have information online and it would have all the details.

Social risk: Will they be shy after the operation? What would my friends and family think of my appearance after the procedure

- Solution: Give out informational flyers/ social media advertising to adapt to social norms

- make them feel confident after the operation by complimenting them

Sensory risk: Will the surgery procedure have bright lighting? Is the “bed” comfortable enough for patient?

- Solution: Use special sunglasses 

- use suction technology  (saliva) 

-Invest more money to buy higher quality & good size to fit  all customers.

Potential risks:

Functional Risk:

Financial Risk:

Temporal Risk:

Psychological Risk:

Strategies to reduce risks:

Function risk: For legal Services, the functional risk would be that people are not sure about the result of court order (Will I win?)

Financial risk: money needed for the service such as money needed for a lawyer 

Temporal risk: There be a long time to wait for the decision which is made by the court

Psychological risk: what will happen if i lost the case 

Social risk: What will my friends think of me if I do not win the lawsuit?

Sensory risk

How to reduce these potential risks and improve the customers experience:

Ask knowledgeable employees;

Seek more information from internet, or friends, find more evidence to support your case.

Look for guarantees and warranties;

Performance-based pricing can reduce the function risk, financial risk that if you do not win the lawsuit, you don't need to pay any money

Fast-Food Restaurant 

Strategies to convert multibranders

Converting Switchers: 

Diamond of Loyalty

Loyals: Young girls like teenagers or adults between 15-25 aging, who love the Cotton On brand, and consider the price is cheap, also the quality of clothes is good. They will tell their friends about the brand of Cotton On

Multibranders: Consumers have little involvement with the Cotton On, they may looking for other clothing stores such as HM, ZARA or Universal, they may seek variety for their own sake

Habituals: Those consumers tend to be passive loyals, they having a look and purchase clothes based on their emotions or behaviors. They do not care for the loyals of Cotton On, and only think if it is good for them.

Switchers: Those consumers are sensitive to price and promotions for Cotton On, by comparing the price and quality of clothes to choose the best one.

B. Develop strategies

Managing loyals: keep improving product and service quality and the service experience

Managing habituals: convenience of purchase, customers can shop online or in stores.

Managing multibranders: Portfolio development and  multichannel integration and access

Managing switchers: Do more promotion and advertising to attract consumers 

section a)
Loyal: People prefer to buy products from Myer, they have the membership cards that can earn points to exchange actual money and products. If they switch to another stores, they may lose the chance to have more points and benefits.

Attract New Customers

Student discounts

Encourage existing customers to purchase a higher value services

Attract new customers:

Encouraging existing customers to purchase more units of service:

(grooming salon, facial, spa, wellbeing) 

-promotion

Referral system-  Inviting a friend and having that friend reference your name so that you receive a discount on your next treatment for facial services

-exclusive spa couple, bestfriends treatments for a certain period 

-Offer gift cards and vouchers to be purchased for their health and wellbeing classes

-Membership cards--> the 10th purchase is 50% off

- receive free sample special shampoo/ conditioner/ hair mask when they buy package deals for hair treatments

- offer free treatment after a certain amount of treatment sessions ( might encourage customers to stay for a few extra if they are thinking about to switch or terminate.

-upcoming makeup class with International Makeup Artist, Neha Hobson with MISSFOX 

-makeup trends, skincare tips, inner beauty routines, business tips and product reviews

Coupon/promotion code found on other websites, which guide potential customers to download the McDonalds App, and purchase the food with discounts

The price of the combination (include burgers and one kind of drinks) is less than buying them separately . 

Critical service failure: food being delivered late and wrong order/ food is not up to standards.

Materials and supplies: 

- Kitchen took longer to prepare the food

- Bad packaging (leakages of the food) 

- Restaurant personnel misreading orders or giving wrong meal 

- Drivers deliver food to the wrong person 

- not enough delivery person

- Lack of workers dealing with issues of wrong delivery 

- Not enough communication between restaurants and the deliveroo staffs

-Compensation/refund or repeat delivery and follow up with suppliers on mistake 

- Discount codes for future purchase 

- Keep customers informed, send them notifications about how their issue is being resolved and thank them for their feedback 

- Be careful with wording in responses via the app, email or on the phone to acknowledge the customer's feelings and not appear defensive

Root cause

Strategies to Recover

The root cause of Virgin Australia is based on customer service.

Recovery strategies:

-Applies learning from previous experiences to improve future approaches and solutions

-Seeks and provides feedback and opportunities to learn, valuing contribution of self and others

-Empowering employees is a powerful tool for effective service recovery as the workforce will be able to think for themselves and make decisions on their own for the benefit of the firm’s customers.

Reliability: On-campus housing will provide their services like air conditions, available hot and cold water, available electricity, the reliable bill of water fees and energy charge

Responsiveness: Houseparent will always be willing to help students.  

Assurance: students of excellent on-campus housing will feel comfortable and safe.

Empathy: the employees of excellent on-campus housing will understand the specific needs of different students and give students individual attention.

Gap

Listening gap: Not be able to know what students expect

Design gap: The design of On-campus housing does not meet students’ expectations

Delivery gap: The room on the picture looks good, but actually not good as picture showed, does not meet students’ expectation

Communication gap: Not living up to the levels of service performance

Perception gap: If there should be a swimming pool in the on-campus housing, but then students find there is no swimming pool when they live in.

Interpretation gap: If there is a power cut, the houseparent says there will be work in the evening, but there is none

Tangibles (appearance of physical elements)
- modern Gym equipment

-the monash sport follows their opening and closing hours excellently
 
Responsiveness (promptness and helpfulness) : 

-Monash Sports staff are quick to answer calls, very helpful if someone needs help with an exercise or how to handle gym equipments

Assurance (competence, courtesy, credibility and security) : They have security guards and professional trainners to help if any emergency occurs in sports area. - Fitness instructors are competent to handle fitness classes eg :pilates, yoga

Empathy (easy access, good communications and customer understanding)  : 

The gap in service quality:(monash sport)

4. Communication gap: The services that Monash Sports provided cannot living up to the levels of service performance.

5. Perceptions gap: difference between what is in fact delivered and what customers
perceive they received, the customers might not satisfied with the equipment, they require higher quality equipment.

6. Interpretation gap: difference between what the service provider’s communications actually promised and what the customer thought was promised, for example, customers might not satisfied with the coaching services because customers didn’t lose weight enough.

Reliability (dependable, accurate performance) 

Responsiveness (promptness and helpfulness) 

Assurance (competence, courtesy, credibility and security)

Empathy (easy access, good communications and customer understanding) 

5 Dimensions of service quality

1. Tangibles: Campus center, Monash Connect, MONSU, brochures of different courses, furniture (e.g places to sit), water, computers

2. Reliability: Whether the employees at student services are able to provide the help and need for the students. Whether they are able to give accurate information that leads to student satisfaction. 

3. Responsiveness: Whether the staff greet the students in a timely and welcomed manner, as well as being help to the student. 

4. Assurance: The amount of security around campus so students feel safe. Employees will be consistently courteous with customers. The behaviour of employees will instill great confidence in customers. Employees would have knowledge to student questions.

5. Empathy: The employees at student services will understand the specific needs for students. Opening hours is convenient to all the students.  

Gaps in Service quality

1. Listening gap: Not knowing what customers expect and not understanding those expectations.The primary cause for not meeting student’s expectations is that Student services is not accurately understanding what those expectations are.

2. Design gap: Specifying service standards that do not accurately reflect what management believes to be customers’ expectations

3. Delivery gap: Service performance that does not match specifications

4. Communication gap: Not living up to the levels of service performance. 

5. Perceptions gap: difference between what is in fact delivered and what customers perceive they received

6. Interpretation gap: difference between what the service provider’s communications actually promised and what the customer thought was promised

Quality of service from employees - Keeping an eye out for the safety of passengers, assisting passengers in their demands

Quality of the plane services - Entertainment services provided for higher priced airlines as well as higher quality (more variety in terms of movies, tv shows, games), the quality of the food and drinks (whether it is complementary or not), WIFI enabled

Quality of plane - The comfort level of the seats (material, size, leg room provided), room for carry-on luggage, size of the plane, cup holders

Satisfaction is a consumer’s post-purchase evaluation of the overall service experience (processes and outcome). Mere satisfaction implies just meeting customer expectations.

·     When a service provider delivers something of value over and above what customers expect, they are likely to be delighted.

·      Delight is only possible when satisfaction is present.

More comfortable environment (waiting room, seats and foods)

Variety of food (fresh fruit and vegetables)  

Suitable price for relevant product 

Easy to find food by yourself 

Quick to check out

Short waiting time.
Free delivery when you spend $100 or more

Delight: 

Extra discount for your favorite food

Little gift after you check out (exceed $20 shopping receipts)

Buy one get one free product

Friendly staff to help you find product

The redecoration makes the product classification clearer

Customer satisfaction occurs when the customer feels as though all their requirements have been met at an exceptional quality. It also exceeds their actual expectations. Customers then feel delighted when they have received more than what they expected. If they are happy and satisfied with the service they will keep returning to the same organisation and recommend to their friends.

Paparich express

Expectation: the taste of food and drinks to be delicious; the price to be reasonable,  the cleanness of the environment; the attitude of waiters; 

Customer satisfaction:  the taste of food meet the expectation post-purchase evaluation of the overall service experience 

Delight : If the restaurant delivers the value of food and service above the customers expect, customers are likely to be delighted. 

We are delighted because we did not expect the quality and taste of food to be very similar to authentic Malaysian food.

Customer satisfaction:

Delight: