Service Marketing: Four Encounters - Case Study Example

EXECUTIVE SUMMARY This report signifies the importance and application of various service marketing models and theories used in different encounters of service marketing. The report has been designed to illustrate four different encounters with application of four different models which are cultural analysis, three stage model of service consumption, disconfirmation of expectations model and positional analysis respectively. The report further highlights different recommendations for each encounter based on the respective service marketing theories and models. The four different encounters has been taken from four different service marketing dimensions to provide a more clear understanding of each model or theory used in the respective encounter. The first encounter relates to cultural analysis where a Chinese restaurant operating in an American city is provided with recommendations like elimination of cross-cultural differences, sensing problems and linguistic barriers to ensure higher sales and customer satisfaction. The second encounters illustrates a case study of car service station where the case illustrates the application of three stage model of service consumption and provides recommendations for future intentions in the post-purchase stage. The third encounter deals with online shopping which highlights how e-companies need to take care of the initial desire or expectation to match or exceed the actual perceived performance for ensuring a positive and higher customer satisfaction. Lastly the fourth encounter lays emphasis on positional analysis for Rose Valley Resorts to ensure proper positioning of its services in order to ensure higher future growth with sustainable development of the same. Finally a summary of recommendations for all encounters are provided to provide a theoretical and practical understanding of the entire report under study. TABLE OF CONTENTS 1.0 Introduction 3 2.0 Dining in a Chinese Restaurant 4 2.1 Description of dining in a Chinese Restaurant 4 2.2 Cultural Analysis of dining in a Chinese Restaurant 4 2.3 Recommendations on dining in a Chinese Restaurant 5 3.0 Car Service Station 5 3.1 Car service station case description 5 3.2 Three stage model of service consumption on car service station 6 3.3 Recommendations on car service station 7 4.0 Online Shopping 7 4.1 Case description of online shopping 7 4.2 Application of Disconfirmation of expectations model on online shopping 8 4.3 Recommendations on online shopping 9 5.0 Rose Valley Resorts 9 5.1 Case description of Rose Valley Resorts 9 5.2 Positional analysis of Rose Valley Resorts 10 5.3 Recommendations on Rose Valley Resorts 10 6.0 Summary of Recommendations 11 7.0 References 13 1.0 INTRODUCTION The report has been prepared to illustrate the importance of various models and theories in the field of service marketing. The report through four different encounters highlights the importance of cultural analysis, three stage model of service consumption, disconfirmation of expectations model and positional analysis respectively along with recommendations for improvement with regards to the same. The report highlights in the first encounter how cultural analysis is important for the Chinese restaurant operating in an American city. It signifies important recommendations like elimination of cross-cultural differences, sensing problems and linguistic barriers for ensuring better growth and improvement of the business in future. In the second encounter relating to car service station the report signifies the application of three stage model of service consumption which has been properly reflected in the pre-purchase stage and purchase stage, and provides recommendations to improve the post-purchase stage by focusing more on future intentions to attract new customers and uphold existing customers. The third encounters explain the disconfirmation of expectations model by citing example from online shopping. It signifies how the online companies can ensure a higher customer satisfaction by eliminating any differences or variances between the initial desire or expectation and the actual perceived performance. Lastly the fourth encounter highlights the importance of Positional analysis for Rose Valley Resorts where despite the resorts providing all comforts and luxuries lacks positioning of its services due to factors like improper segmentation and targeting strategies along with unfair pricing system. Finally the report provides a summary of recommendations for all four different encounters in a more comprehensive manner to provide a better understanding of the entire report. 2.0 DINING IN A CHINESE RESTAURANT 2.1 Description of dining in a Chinese restaurant Golden Pagoda is a Chinese restaurant in the heart of the city New York which is known for its excellent delicious Chinese food with an ambience resembling Chinese culture and popularly known as a small Chinese city in the middle of America. The restaurant is equipped with varieties of Chinese dishes and use of chopsticks instead of spoons and forks with Chinese waiters and smaller outlets inside the restaurant selling cultural Chinese products along with a feel of religious touch resembling Lord Buddha. 2.2 Cultural Analysis of dining in a Chinese restaurant Consumers are exposed to different cultures and cross-culture analysis plays an important role particularly in a consumer goods industry. The restaurant attracts a large number of customers not only from the Chinese origin but people from varied cultural differences. The ambience of the restaurant has been minutely designed by Chinese architecture to keep the feel of Chinese land intact. With Chinese waiters people encounter linguistic problems and difficultly in pronouncing the name of Chinese dishes uncommon from the American dishes usually served by other restaurants. The religious touch of Chinese culture further helps in attracting a large number of audience and the use of one of the seven wonders in the world “The Great Wall of China” has been beautifully crafted on the walls of the restaurant to provide a complete sense of Chinese feeling in the restaurant. People’s values, beliefs, customs and traditions have been specially taken care of to translate consumer’s potential wants and desires into actual needs and wants and ultimately satisfying the same (Barker & Haertel, 2004). The cultural impact of the restaurant has been designed to attract more of Chinese customers however the restaurant lacked in providing an American touch with limited or no American dishes. Language barriers, cultural differences, sensing problems and emotional and cognitive reactions are some basic elements which the restaurant needs to be highly equipped to attract more and more cross cultural customers. However the restaurant has been graded as one of the top in rankings satisfying people with delicious Chinese dishes which one can actually enjoy in a far off land of China. 2.3 Recommendations on dining in a Chinese restaurant. The restaurant has been doing well in serving the customers with Chinese flavors however, the restaurant should in no sense compromise with its cultural impact but ensure availability of some American foods. Linguistic problems of Chinese waiters should be removed by proper training and grooming of the waiters. The restaurants should look to attract not just Chinese customers but others as well to boost up its profits and service excellence. Culturally the restaurant should look to new innovations like special discounts on Chinese carnivals and bringing on more traditional Chinese dishes in its servings (Warden, Liu, Huang & Lee, 2003). Further continuous efforts are required to eliminate the cross cultural differences and sensing problems. Culture can be well groomed with hospitality, warmth of security, affection and delivering higher customer satisfaction by the Chinese restaurant operating in an American city 3.0 CAR SERVICE STATION 3.1 Car Service Station Case Description Ford is a renowned international car manufacturing company producing cars which ranges from luxury models to comfort models to general utility cars and is much known for its after sale services than its counterparts in the automobile industry. Last week on a vacation to countryside the car broke down and on search through the internet the car was taken to the nearest service station than to a local mechanic. The car was ultimately brought to good condition however the tool kit was missing which the service station denied as any of its liability. 3.2 Three stage model of service consumption on car service station The three stage model of service consumption can be appropriately applied in this case of car service station. The model consists of three different stages. 1. Pre-purchase stage This stage is characterized by activities like awareness of a need or desire, information search, evaluating the various available alternatives and finally making a purchase decision. In this encounter as the car broke down their rose an immediate need of a car service station which was ultimately solved by searching information from the internet and evaluating alternatives such as a local mechanic or an exclusive Ford car service station (Santos & Boote, 2003). The car was finally taken to the exclusive service station hence involving of a purchase decision being made. 2. Service Encounter Stage This stage is characterized by activities like understanding the service system, theater as metaphor for service delivery and the service encounter which may range from high to low based on the service provide. In the given case the manager of the service station greeted the customer and took the responsibility of broken car and acted as a metaphor in delivering the service (Santos & Boote, 2003). The car was all brought to good condition in the promised timeframe and customer was satisfied with the service provided. 3. Post-Purchase Stage This stage involves the after sale activities and specially deal with two elements which are evaluation of the service performance and future intentions to deal with the same. In the given case the customer found his car in good running condition but later came to know that the tool kit was missing for which the service station denied any liability thus negatively impacting future intentions to enjoy the service in similar circumstances (Santos & Boote, 2003). 3.3 Recommendations on Car Service Station The car service station based on three stage model of service consumption worked well during the first two stages as the service station was polite, humble and provided hospitality to its customers in delivering excellent services. However during the third stage the service station lacked future intentions as the missing tool kit was denied by the service station. On better grounds the service station lacked a proper management system which could ensure justice. The management should have taken a proper check of the car before taking the car to handle the situation in a better manner (Lovelock & Wirtz, 2007). The service station certainly lacked to convert the desire into experience for its customers which shall have a sharp hit on its sales and reputation in the longer run of business. 4.0 ONLINE SHOPPING 4.1 Case description of Online Shopping Online marketing is rapidly growing and businesses are getting a larger market place for expansion of its business. “YepMe.com” is an e-shopping hub which provides a large number of consumer commodities in categories like menswear, ladies wear, accessories etc. A100% cotton garment was recently ordered by me, which also contained an eye glass as freebie. However on delivery of goods within 7 days as promised by the seller the cotton fabric was a mix of 70% cotton and 30% polyster and the freebie eye glass was intact. 4.2 Application of Disconfirmation of Expectations Model on Online Shopping The disconfirmation of expectations model is a theory used for measuring customer satisfaction from perceived quality of a product or service. It contains two basic elements which are expectation or desire and experience or perceived performance. Expectation or desire is active before the actual purchase whereas experience or perceived performance becomes active during the post purchase session. The difference between the desire or expectation and the actual experience or perceived performance is disconfirmation or satisfaction which can range from positive to negative depending upon the satisfaction level. In this case the customer had a desire for 100% cotton fabric offered by YepMe.com along with the eye glass as a freebie which made the offer more attractive. The customer was well satisfied with the delivery of the goods within 7 days as promised by the seller which resulted in a high positive customer satisfaction. However the parcel delivered had the freebie intact but the fabric was inferior in quality as promised by the seller resulting in negative customer satisfaction or disconfirmation by the customer (Adkin & Ozanne, J2005). This shall have a major impact on the reputation of the company as the complete transaction failed to deliver an enjoyable shopping experience to its customer. On an overall basis the perceived performance was much lower to the initial desire or expectations which resulted in disconformities or negative impact on the level of customer satisfaction. 4.3 Recommendations for Online Shopping With regards to disconfirmation of expectation model, YepMe.com in this encounter was not able to gain a positive feedback and deliver higher positive customer satisfaction. Even though the company succeeded in delivering the goods within time and the freebie as promised it failed to deliver the basic goods in similar condition as promised during the pre-purchase session. The company should before making such an offer should ensure about its products quality and then actually make the order (Lauring, 2008). Or in case of wrong delivery of goods apologize for its mistakes and resend the promised goods by communicating the same to the buyer. A better management system should be in process to ensure that goods are delivered as promised and further ensure a positive confirmation or customer satisfaction as a perceived dissonance may lead to change in a person’s idea about a specific cognition. 5.0 ROSE VALLEY RESORTS 5.1 Case Description of Rose Valley Resorts Rose Valley Resorts is known for its renowned 5 star hotel services with its various resorts located on various tourist destinations and attracts a large number of tourists in expectation of luxury comforts provided by the company. Recently on a visit to one of Rose Valley Resorts during the time of Christmas carnival, the resort to my surprise has very few tourists. While staying in the resort I found the facilities to be satisfactory, however prices of every small to big services provided by the resort kept my experiences limited and eventually I could not enjoy many services due to lack of financial feasibility. 5.2 Positional Analysis of Rose Valley Resorts Positional Analysis plays an important role in the success or failure of any product or services available in the market. It is important for the marketer or service provider to understand and position its products or services by completely analyzing the factors such as who will buy the service and why will they buy the services. Positioning is important keeping in mind various factors such as competitors positioning strategy, products and services uniqueness, target market, target segments etc (Czinkota & Ronkainen, 2002). Developing positioning strategy as per company’s requirement and market environment with regular follow-ups can eventually lead to significant flourish of the company and its products and services offered. In the given case Rose Valley lacks positioning of its services which is evident from the fact that the resort has been unsuccessful in attracting customers even during the time of Christmas Carnival whereas its counterparts are running in their full capacity. The company has positioned its services by targeting only the upper segment of the society thus limiting its market size which is evident from the fact of charging high prices for its services offered. Further the management lacks regular follow-ups to check where the positioning strategy of the company needs amendments (Czinkota & Ronkainen, 2002). Similar services offered by its counterparts are more fairly priced however Rose valley is more concerned to enjoy abnormal profits without actually correctly positioning its services which has resulted in more losses than profits. 5.3 Recommendations for Rose Valley Resorts Rose Valley Resorts need to seriously draw its positioning strategies with those of its rivals. The company rather than just targeting the upper segments of customers in the customer pyramid should look to target more of middle level income groups to ensure better positioning of its services offered. The company has been equipped with a large number of entertainment facilities and the management should look to charge fair prices for the same. Further targeting the different segments of the customer pyramid shall ensure better positioning of its services and a larger market base. Marketing strategies are developed on basis of STP strategies, however Rose Valley lacks and has loopholes in its Segmentation and Targeting strategies which is clearly reflected in its Positioning strategies (Diehl & Pea, 2010). Hence the company needs a complete revolutionized change in its STP strategies to ensure better returns and positioning of its services offered. 6.0 SUMMARY OF RECOMMENDATIONS The given report study 4 different encounters in the field of service marketing and provide different recommendations for different encounters. Enlisted below is a list of different recommendations in a more comprehensive manner for providing a better understanding. The first encounter explains the importance of cultural analysis. The Chinese restaurant operating in America should look to ensure elimination of cross-cultural differences, sensing problems and linguistic barriers. The restaurant needs to look towards newer innovations to develop a more cultural touch in its surroundings. Furthermore the management should look towards a cultural theme and celebrate Chinese festivals with better offers and discounts to attract a larger base of customers and boost up sales all year round. The second encounter explains the importance of three stage model of service consumption where the case illustrates that the car service station has been doing well during the pre-purchase and purchase stage, however it lacks future intentions during the post-purchase stage. Management should rather develop strategies and focus on future intentions to uphold its existing customers and attract new customers. The third encounter explains the disconfirmation of expectation model where the online shopping company should focus and target highest customer satisfaction by eliminating any differences between the expected and perceived performances delivered. The fourth encounter explains the role of positional analysis where Rose Valley Resorts should make a complete revolutionized change to eliminate its loopholes in the Segmentation and Targeting strategies to ensure proper positioning of its services. Competitor analysis along with current market environment analysis can certainly help the company to position its services in a more comprehensive manner. 7.0 REFERENCES Adkin, N. R., & Ozanne, J. L. (2005). The Low Literate Consumer. Journal of Consumer Research, 32, 93-105 Barker, S., & Haertel, C. E. J. (2004). Intercultural service encounters: an exploratory study of customer experiences. Cross Cultural Management, 11(1), 3-14. Czinkota, R. C., & Ronkainen, L. (2002). International Marketing. Fort Worth, TX: Harcout College Publishers. Diehl, K. & Pea, C. (2010). Great Expectations?! Assortment Size, Expectations, and Satisfaction. Journal of Marketing Research 47(2), 312-322. Lauring, J. (2008). Rethinking social identity theory in international encounters: language use as a negotiated object for identity making. International Journal of Cross Cultural Management, 8, 343. Lovelock, C. & Wirtz, J. (2007). Service Marketing: People, Technology & Strategy. 6th edition, Prentice Hall Santos, J., & Boote, J. (2003). A theoretical exploration and model of consumer expectations, post purchase affective states and affective behaviour. Journal of Consumer Behaviour, 3(2), 142-156 Warden, C. A., Liu, T. C., Huang, C. T., & Lee, C. H. (2003). Service failures away from home: benefits in intercultural service encounters. International Journal of Service Industry management, 14(4), 436-457. Read More