Analysis of Billabong Clothing - Research Paper Example

Table of Contents 1 1. Diary 1.1 About Me I am a twenty five year old student undertaking a Bachelor in Commerce, majoring in Marketing, at Central Queensland University, Australia, where I am doing an exchange semester. I am actually a German student, presently, am living in the US. Because of the mystery shopping, in service and relationship marketing lecture, I am commissioned to be a mystery shopper at Billabong (clothing), in an effort to quantify and qualify their service. I personally have a preference, when it comes to fashion, design and choice. 1.2 Preparations Although I am a lover of fashion, I have neither known nor visited the Billabong (clothing) at Burleigh Heads, Queensland, in Australia. Since, I was scheduled to carry out the analysis in two days time, 17th March, 2011; I decided to gather enough information about Billabong. I checked the website and found the Billabong (clothing) Website (http://www.billabonggirls.com.au/), I felt happy because, it would serve as a reliable source (Moschino 2011). However, I could not locate specific information about where exactly they are located, this even annoyed me. So I went ahead and tried to Google search map to Billabong (clothing) stores, I found one, but it never gave clear direction. Since, I didn’t have a vehicle; I was to connect the Brisbane City Council bus routes 411, which run directly from the University of Queensland to Billabong in Queensland. On the higher side, I was attracted to the products they sold. Specifically, I wanted to purchase the Perisher Chambray Shirt that was going for AU $79.99. In quality, the kind of fashion and perfumes advertised in the Website, were wonderful. They increased my pleasure to reach the store and I felt that their products were the best. . I also expect that the prices would be favourable, as indicated in the advertised products. Unfortunately, they never gave any clarification on the ingredients of the perfumes; this seemed risky to me, for I was allergic to some type of perfume ingredients. 1.3 Getting to the Store Although my journey from Brisbane City was just a few hours long, between the university and Queensland it felt like an eternity, but quite expensive, $20. I was due in the Billabong (clothing) at 7:00 pm to meet the long awaited opportunity shopping day beforehand. I figured that Billabong (clothing) shopping therapy was the best therapy for the day’s turbulence. Though excited for the days yet undertaking, i had already been disappointed by the high fare to the store. 1.4 The actual Visit On arrival, a huge white box of a building with cylindrical windows and blue awnings, grounded me straight away, with its array of $100.00 and over clothes, not to mention the biggest assortment of formal gowns I had yet experienced. It was all very intimidating, when I approached the reception I was assumed to be well versed with the shop. Moreover, the employees were not friendly at all, also, on request of a brochure to guide me on my shopping, they never bothered to give a reply. I felt annoyed, because the store seemed too big. As I walked along the corridors, clothes looked well, but not as what I had expected for an international fashion company. No employee was available to guide me on the way to go, so I regrettably went along the corridors when very exasperated. Their prices were so high even for baby clothes, which looked very simple. I never understood this which made me very infuriated even more. Most of the clothes they advertised in the Website that I expected to find were missing, yet they had indicated them to be the latest. I was not pleased because, it is among these clothes that I had chosen to buy today. Worse of it all, on comparison of the clothes price tags with those indicated in their Website, for a few that I could note, I realised that those in the Website were underpriced. At this point, I felt disappointed and misinformed. For instance, a dress going for $69 on the website was highly priced at $100 at the store. On the perfumes section, very few of them were available that I had located in the website. It was at this point that I realised, not all products are produced by Billabong (clothing) for example, there were displays of Nivea Perfumes, which increased my doubt if this was really a world class fashion company. It made me even doubt on the quality and originality of their fashion clothes. I lost my earlier pride for the Store as told by my friend Stewart. When I got to the third floor, I saw sections where I could be designed clothe, and made in an hour’s time. It was one thing that I could not wait to undertake. When I decided to get in, there was also no employee to give me direction on the procedures that I was to undertake. So I had to ask one who seemed to be busy, he reluctantly showed me the way to go. I felt out of place in this fashion store because, none of the employees seemed to be welcoming, but I had to finish my examination of their service. So on the second entry, I had to pay $450 first before it was designed, and consequently made. I was advised to get back after a few hours. Finally, I finished window shopping in the third floor, checked my watch it was 3:00 pm, so much to see, little to buy. But not waiting to leave because of their unwelcoming. When I went to pick up the designed clothe, it was very different from the initial instructions given. They advised that I could not be refunded the money unless; I wait for another four or five hours for consideration, if it would be made. I was irritated. I finally decided to leave at 3:30 pm because the window shopping had become boring. 1.5 Conclusion – Rating On average I would put Billabong (clothing) on 10 point total weighing scale, it would measure 4 points. I had actually expected to experience better quality service, but it was not as it seemed. Although I liked the store, I was disappointed on their quality of service and customer treatment. On the cost of their service, I think they are so expensive, the fare, is also very expensive. Paying an extra $5 shifts ones budget to extreme levels, hence, a customer would likely decline to buy what he/she recommended in the website. Paying $450 for the dress design, also seemed not worth it because, I was never satisfied. Since my experience was negative on the lower side, I would rather recommend a friend to another fashion store than Billabong (clothing). 2. Analysis The analysis of the shopping experience requires that one to be fully versed with the customer expectations. More importantly, is the satisfaction accrued form the quality of service expected by the customer (Keller 1993, p. 14). A Chen, Chang & Fan (2008 p. 87) suggested that a client would mostly become loyal, once he/she receives quality service as expected. If not, would lead to dissatisfaction and eventual loss of a customer. Although customer expectations vary from service of business to the other, and are changed by needs and presumptions, feelings, advertising, expectations, past experience and situational factors, it is thus increasing. In our highly technological market industries, getting more important is to not only sell services, but increase the quality of service. This is becoming very important in meeting customer experiences and expectation. On the negative disconfirmation with respect to Billabong (clothing), it is likely to be experienced by any customer (Kotler & Keller 2008). 2.1 Opportunities and Threats using the 8 ps On application of the 8P’s of service marketing, the opportunities and threats can be sorted into eight categories that give chance of further development or risk that might plunge the company into failure. This is done for services especially, as the traditional 4P’s are usually not sufficient for service marketing. They are; product, price, place and promotion, and the four service specific P’s: people, processes, physical evidence and productivity/quality (Chowdhary & Prakash 2007, p. 502). This can be illustrated in the table below: Table 1. Opportunities and threats in the 8ps (Lovelock & Wirtz 2007) P’s Opportunities Threats Product Of good design Some lack originality Price Very high prices, contracting from previously given in the website Place Located near university of Queensland with large market (students) Fare to the store is so expensive Promotion Very good advertising in the websites Lack of interflow of colours and designs People Qualified employee Unfriendly Processes Very organised No guidance to clients or customers Physical evidence Well structured building, with over five floors stocked Do signs, direction and guidance Productivity/Quality They offer a product on condition of payment without guarantee of quality work. It is thus clear that the product is strong because of the company competence in design. However, they have brought in other products that rout it of its originality. According to Stone (2001) the price is very high and contradicting from what is initially given in the website. The company is well positioned in the town centre for ease of access by customers, however, the fare to the store is very high, hence it is unlikely that one might come just for shopping, it might be a by the way (Kotler et al. 2002). Their promotions are very good but lack incorporation of colours and late designs, which might be more enticing. Although the processes might seem organised, they don’t benefit much, with the little or no information from employee guidance. They also need to put up signs, direction and guide customers with regard to the accessibility of the services in the building, with regard to the physical evidence. a) Expectations and Satisfaction The expectations developed through this kind of information, a customer is able to obtain information about a service provider through their past experiences. However, if it happens that their past experience and information is underperformed, then it brings about eventual disappointment (Swarbrooke 2001). This is so especially, when the perceived is lesser than what is experienced, or, worse, or when it is not even close. Further, Verma (2008) suggests that when a customer’s experience is as expected then, the customer accrues satisfaction. However, expectations is best for the customer, when the perceived is lesser than the experienced, in the positive in which, the customer is delighted and won by the company as a loyal and esteemed customer (Keller 1993). b) Service quality Image 1: Customer delivered value (Kotler & Keller, 2008) It is thus important to note that customer satisfaction is attached to the relationship of the cost that he/she pays for a product in relation to the value of the service delivered. Hence it is more evident that once a customer purchases a product at a cost and lacks the product value, then the customer will be dissatisfied because of the undelivered value (Kurtz et al. 2009). Customer is dissatisfied on the visit to Billabong (clothing), because the expectations exceed the perceived value. The consequence of negative disconfirmation could result in customers not returning, and discouraging other customers wishing to shop there other than recommending them (Lee, Donthu & Yoo 2000, p. 198). 3. Conclusion In conclusion , expectations is best for customers when the perceived is lesser than the experience, in the positive in which the customer is delighted and won by the company as a loyal and esteemed customer (Bilton & Cummings 2010). 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