Essential Operations Management and Service Encounter Analysis - Essay Example

Service Encounter expand each ‘box’, as required) of Service Provider (company, organisation Currys Type of Service (Profit, not-for-profit, public service, routine, rare): Profit Date, time, length, and precise location of Service Encounter: 14/3/2013 approximately 30 minutes. Located at 88 Oxford Street - London What did you choose to mystery shop this particular organisation (purpose, location, choice of provider, expectations)? The purpose of shopping this particular retailer was due to the fact that is many locations around the London area provided an ease of analysis as well as an interesting subject matter, electronics, for me to explore; while at the same time gathering information with regards to this particular project. My expectation was that due to the large level of success that this franchise has enjoyed, it would be likely that their service was above the level offered by smaller competition. Exactly what did you and the employee(s) say and do? I went to the computing section and began to browse through the different product offerings that were displayed. Although I rather expected a sales person to descend upon me and attempt to make a sale, the fact of the matter was that I spent around 5-10 minutes browsing without anyone even asking if they could assist me. After such a time, I had a legitimate question concerning the specifications of a particular laptop. However, as I tried to make eye contact and get the attention of the section salesperson, I was all but ignored. Eventually I went to the salesperson and asked if they could assist me with a few questions I had. Rather than willingly offering their help, they seemed to begrudge the fact that they had to be troubled by a customer. Although to their credit they were able to answer my question in a knowledgeable way, they did not do so with the determination or desire that I would have expected from someone whose job it was to be in such a customer service oriented position. Describe and analyse the physical location, surroundings, décor, and general atmosphere of the outlet where the encounter took place: The physical location of the store was in central London. The décor and surroundings of the internal store itself were Spartan and geared more towards a utilitarian representation of the product to the customer rather than hoping to create an ambient store atmosphere. This “big box” feeling somewhat diminished from the customer service experience due to the fact that the customer feels that they are just another face in the crowd whose sole purpose is to come, buy, and leave. What could you and/or the employee(s) have done to increase the level of satisfaction? What improvements need to be made to this Service Encounter? As a means of improving this particular service encounter, it is my belief that the situation could have greatly benefitted from hiring an individual who was both knowledgeable and interested in customer service. Although I was satisfied with the information I received, the way in which it was given was not willingly. As a means of bettering the level of customer care, the store might want to pay a closer attention to hiring better people and/or instilling a greater degree of customer care training in the future. How likely is it that you will return to this Service Provider? Although the experience was less than stellar, the store has a wide array of products and at reasonable prices. Notwithstanding the negative experience, I will likely return in the future and hope for a better representation of customer service. Identify and closely apply three (3) marketing models, theories, or concepts (or ‘parts of’ models, theories or concepts) that we have studied which are appropriate to this Service Encounter: The first of these is that of Porter’s Five Forces. As a function of this particular approach, it is the belief of this student that Currys has developed a rather arrogant approach to the customer. Due to the fact that few other firms can compete with Currys on the same large scale that this firm is able to integrate, it has developed an approach that is nearly monopolistic. Similarly, due to the fact that it is a retailer, it seeks to reduce its marketing approach to merely providing good prices and a wide array of products. As a function of this it relies heavily on its supplier power, and the barriers to entry that other firms must integrate with. The second of these models that Currys employs is the brand positioning map. This particular approach focuses upon the recognition that the individual customer makes with regards to the brand’s relative position within the market. As such, this approach seeks to place a high level of importance on perception. Currys is able to integrate with this approach in a powerful way as when one visualizes a large scale electronics and appliance retailer in the United Kingdom, Currys is one of the first names that comes to mind (Slack & Lewis, 2011). In this way, the perception drives the marketing approach and allows for Currys to maintain a dominance within the market for consumer electronics and appliances in a way that smaller lesser-known retailers cannot. The third marketing model that Currys employs is that of the segmentation, targeting and positioning model. These stages integrate with Currys model due to the fact that they revolve around the way in which the customer exists within the mind of the product offerings and directs the means by which communications strategies and marketing efforts will be modeled to integrate with the unique trends, needs, and demands of the targeted groups. How would you rate your level of satisfaction with this encounter? Surroundings 4 Decor 3 Interaction with Staff 2 Staff Knowledge 4 Overall 3 Neutral – although the information was available to me as the consumer, the level of personal attention and care that was exhibited was far less than I had hoped for as well as far less than one should expect from such a well known and reputable firm. Service Encounter 2 (expand each ‘box’, as required) Name of Service Provider (company, organisation institution): H&M Clothier Type of Service (Profit, not-for-profit, public service, routine, rare): For Profit Date, time, length, and precise location of Service Encounter: 12/3/2013 approximately 11:00 AM – for around 1 – 1 ½ hours. 234 Regent Street, London What did you choose to mystery shop this particular organisation (purpose, location, choice of provider, expectations)? I chose to shop here due to the fact that I frequently purchase clothes from this retailer and wanted to gain a further level of understanding with regards to the unique level of personal interaction I receive when in-store; due to the fact that I had never paid any close or particular attention to this before. Exactly what did you and the employee(s) say and do? The encounter began from the moment I entered to store. Firstly, unlike the previous encounter that has been described, I was greeted and asked if there was something specific that I could be assisted with. Although this is standard operating procedure in many stores, it was nonetheless a welcomed touch and helped me to fell at home during the remainder of the shopping experience; doubtless the reason why so many stores seek to employ such an approach with regards to making a positive first impression with relation to the customer’s experience upon first entering the store. As I moved through the store, the employees were able to stay out of my way yet at the same time make themselves amenable to me asking any number of questions regarding additional offerings, size requests, and dressing room needs. This added to the overall experience and provided with an exceptional customer service environment. Describe and analyse the physical location, surroundings, décor, and general atmosphere of the outlet where the encounter took place: Similarly, unlike the first “big box” retailer that has been analyzed, the experience in H&M was one in which the décor, ambiance, music, and delivery of the products had a high level of importance. This served to promote several internal/psychological factors. Firstly, due to the fact that the firm is seeking to sell fashion to the consumer, having an approach such as Currys where a wide variety of products are lain out in no particular form or fashion to be integrated with the customer would not suffice. It was necessary to integrate a degree of chiqueness and artistry into the way in which the clothes and accessories were displayed so that this would have the compound affect of promoting a sense of class and style into the shopping experience. In precisely this way, the music, décor, and ambiance of the store all aided in this mission. What could you and/or the employee(s) have done to increase the level of satisfaction? What improvements need to be made to this Service Encounter? Although it is difficult to ever be fully satisfied, the level of attention and care that the employees of this particular H&M gave was such that there is little negative comments that this shopper could elaborate upon. Although there is always room for improvement, this particular experience was so pain-free and enjoyable that I can only wish that all customer service experiences were so thorough, well thought out, and expertly engaged with. How likely is it that you will return to this Service Provider? Extremely likely Identify and closely apply three (3) marketing models, theories, or concepts (or ‘parts of’ models, theories or concepts) that we have studied which are appropriate to this Service Encounter: The first of these is necessarily that of the Loyalty Ladder. It is this student’s estimation that the Loyalty Ladder is one of the primal means by which H&M, and many other clothing retailers and brands for that matter, seek to integrate a level of repeat patronage from their customers. As such, this particular model shows the steps that a customer is required to take prior to becoming a loyal patron of a given brand or store. Ultimately, these stages can be understood within the context of prospect, customer, client, supporter, and finally advocate. Secondly, the product life cycle is something that H&M and many other clothing suppliers/brands/retailers must integrate with on a daily basis. Due to the changing pace of demand, evolution of fashion within the current context, the product life cycle is an aspect of marketing that is integrally important to H&M. This can ultimately be understood as the Introduction, Growth, Maturity, Saturation, and subsequent and final Decline. Thirdly, H&M employs brand positioning. This particular approach focuses upon the recognition that the individual customer makes with regards to the brand’s relative position within the market. As such, this approach seeks to place a high level of importance on perception. H&M is able to integrate with this approach in a powerful way as when one visualizes low-cost fashion that is still at the cutting edge of trends, H&M is one of the first firms that necessarily come to mind (Hill & Hill 2011). In this way, the perception drives the marketing approach and allows for H&M to maintain dominance within the market for clothing in a way that smaller lesser-known retailers cannot. How would you rate your level of satisfaction with this encounter? Select a number corresponding to your feelings for each section 5 – Extremely Satisfied Surroundings 5 Decor 5 Interaction with Staff 5 Staff Knowledge 5 Overall 5 Overall the experience could not be imagined to be much better than was experienced. Service Encounter 3 (expand each ‘box’, as required) Name of Service Provider (company, organisation institution): Apple Store Type of Service (Profit, not-for-profit, public service, routine, rare): Profit Date, time, length, and precise location of Service Encounter: 15/3/2013 approximately 6:00 PM for around 20 minutes. Store located at: The Piazza Covent Garden, London What did you choose to mystery shop this particular organisation (purpose, location, choice of provider, expectations)? After my less than stellar experience at Currys, I wanted to do a further level of laptop shopping and decided that that Apple Store should also be included on my list of experiences. I expected that the level of service I would receive would be greatly higher than the experience I had at Currys due to the fact that the Apple Store was more specialized and had a much higher reputation for one on one customer care and service. Exactly what did you and the employee(s) say and do? As with H&M, upon entering the store I was greeted by store personnel and asked if there was a particular level of service that they could provide me. I explained that I was in the market for a laptop and needed to discuss my needs with an associate who might assist me in determining what would be the best fit for my particular needs. The employee who asked the question was helpful however, rather than assisting me directly, they told me who I should speak with and went back to their job greeting incoming customers. I was somewhat put off by this due to the fact that I had just explained in great detail what my needs were only to be slotted in a different direction and have to repeat all of this again; however, due to the fact that the person who requested information from me was friendly and thoughtful I did not let this to be a major impediment to my shopping experience. Finally, after waiting for the individual that she had specified, I restated my needs and was directed to several models of PCs. The salesperson seemed to have a particular interest in continually showing me laptops that were out of my price range and had a great deal of ancillary capabilities from what I had specified. Although this may have been an honest mistake, it appeared as if it was an approach that he was directed to perform or one that was motivated by a percentage commission of sales. Describe and analyse the physical location, surroundings, décor, and general atmosphere of the outlet where the encounter took place: As anyone that has been to an Apple Store can attest, the décor and surrounds are perfectly manicured and designed to impress the shopper with the clean lines and utilitarian simplicity and functionalism that has become the most important aspect of Apple’s marketing strategy. As such, the atmosphere and music all coalesced to present a very sharp and yet soothing atmosphere that created a unique desire to purchase a piece of the “freedom” and chiqueness that Apple products so appropriately denote. What could you and/or the employee(s) have done to increase the level of satisfaction? What improvements need to be made to this Service Encounter? The most important aspect of improvement that can and should be made is the level of product integration that the salesperson sought to present to the shopper. Due to the fact that the salespeople feign an interest in the particular needs that the customer presents to them, it does not make a great deal of sense as to why they consistently provide more expensive models than the customer has noted that they require. Although this approach is somewhat of an annoyance, the level of expertise and knowledge that the salespeople are able to present more than makes up for this fact. It was my experience that the salespeople were able to completely understand my needs and seek to provide me with a product that could meet and exceed these. How likely is it that you will return to this Service Provider? 3 Identify and closely apply three (3) marketing models, theories, or concepts (or ‘parts of’ models, theories or concepts) that we have studied which are appropriate to this Service Encounter: The first, and perhaps most important of these, is the brand positioning map. Due to the fact that Apple knows and understands that the consumer’s visualization of the brand is of extreme importance with respect to their particular product offerings, they seek to maximize this aspect by drawing a distinctive difference between their product and those of seemingly “lesser” competitors (Janson-Boyd,2010). Accordingly, the second is that of the Loyalty Ladder. It is this student’s estimation that the Loyalty Ladder is one of the primal means by which the Apple Store seeks to integrate a level of repeat patronage from their customers. As such, this particular model shows the steps that a customer is required to take prior to becoming a loyal patron of a given brand or store. Ultimately, these stages can be understood within the context of prospect, customer, client, supporter, and finally advocate. Finally, the segmentation, targeting and positioning of the product is an approach that Apple has masterfully integrated into their product offerings. How would you rate your level of satisfaction with this encounter? Select a number corresponding to your feelings for each section 4 Surroundings 5 Decor 5 Interaction with Staff 3.5 Staff Knowledge 5 Overall 4 Analysis The customer service experiences that have been detailed above only represent one small portion of the marketing process that each of these three firms necessarily engenders. As a means of better understanding the broader approach that has been briefly elaborated upon above, this section will take a broader and more expansive look into the means by which the models, theories, and concepts which have been elaborated upon in the course lectures help to define and explain the importance of contemporary marketing with relation the growth and development of the organization. As a function of this level of analysis, all three firms will be analyzed within this framework. Firstly, a further examination and discussion into the means by which Currys utilizes Porter’s Five Forces as an integral means of engaging with its customer base can and should be analyzed. Although Porter’s Five Forces can be applied to the successful implementation of each and every one of the three firms that have been critiqued, it is this student’s belief that Currys relies almost exclusively upon this as a means to integrate their products with the customer (Trompenaas & Wooliams, 2003). As a function of the fact that Currys does not have a high degree of competition within the current model, they are able to be somewhat secure in the rivalry that is the first of Porter’s Five Forces. As a function of this, they are able to powerfully leverage the supplier power that they represent as a big box retailer of a large volume of appliances and electronics. Similarly, as a function of this relative strength, the threat of substitutes has not integrated within the firm’s business model to a noticeable degree. Due to the fact that the firm was quick to get in on the internet revolution and offer its products there as well, it has not suffered greatly from the dynamic changes that internet offerings have offered to other similar firms. Likewise, barriers to entry have all but been eroded by the powerful footprint that the company has within the given market. This only leaves the buyers power as the sole determinate that can provide a great level of impact upon the company and its profits. However, although this one aspect remains, it is vitally important for this firm, just as the others which will be elaborated upon, to seek to provide a profound level of focus upon the means by which the buyer’s power is appreciated, maximized, and furthered. It is oftentimes the case for firms that find themselves in a similar position to Currys to take their position for granted and assume that due to their pseudo-monopolistic position within the market that they can behave in a less constrained fashion due to the fact that their customers are guaranteed and something of a captive audience. However, as has been proven time and time again, this is an arrogant and irrational approach that necessarily spells the doom of the entity and the rise of a plethora of weaker yet more competitive alternatives. In order for Currys to continue to maintain its position within the current market, it will be necessary for it to seek to engage its consumers with the same level of exceptional service and marketing that vaulted it to its current position. Although it is not the belief of this author that Currys is somehow at risk of collapsing and/or indicative of a firm that has reached maturity and will experience a slow death, it is nonetheless important to emphasize, using Currys as an example, the importance of continuing and furthering the same successful models that initially led to such a high degree of success; regardless of the level of maturation of the firm/entity/organization in question. Likewise, with regards to H&M, the most salient model that has been listed and briefly enumerated upon within the preceding analysis is the role that the product life cycle plays with regards to the product offerings and marketing activities that the firm engages in. Seeking to overestimate the role that the product life cycle plays with regards to consumer goods, specifically the clothing market, is likely impossible. As such, H&M has proven to be exceptionally facile at integrating the rapid changes in fashion with populations that have limited resources to spend on their products but want to stay on the cutting edge of fashion. This necessarily integrates many other marketing forces as well, not to mention the 7 P’s; however, rather than branching out and seeking to analyze the full gamut and range of marketing activities that provides for H&M’s exceptional market dominance and penetration, it is this student’s belief that the product life cycle is the one aspect of this marketing expertise that most appropriately defines the success that the firm has realized in recent years. Finally, the most effective means of consumer marketing integration that the Apple firm employs is undoubtedly that of the so-called Loyalty Ladder. Due to the fact that Apple’s products oftentimes recruit what can only be determined as a cult following, a great portion of the firm’s marketing is promoted and affected by the very individuals that buy the products in the first place. In this way, the firm has a self-perpetuating marketing plan which integrates with the affected market in a much more cost efficient and effective way than do the other two firms which have been elaborated upon (Bowe & Martyn, 2007). Naturally it is not rational to determine what particular stage each and every one of Apple’s shareholders integrates with their products; however, it would be safe to assume that the Apple firm has a very high percentage of advocates, and supporters as opposed to many of their competitors. This is born partly from the fact that the cult following and fashionable product offerings help to endear the consumer to the product in a way that the competition’s alternatives do not. Rather than merely being a functional piece of equipment/a tool, the Apple line of products is a lifestyle choice that helps to further the marketing potential to an even greater degree. References Bowe H & Martyn K. (2007) Communication Across Cultures. Cambridge University Press. Hill A. & Hill T. (2011) Essential Operations Management Basingstoke: Palgrave Macmillan Janson-Boyd, C.V. (2010). Consumer Psychology. Maidenhead : Open University Press Slack, N. & Lewis, J. O (2011) Operations Strategy Trompenaas F & Wooliams P (2003) Business Across Cultures. Capstone. Read More