note: this paper has already been submitted to the school mentioned, all contents of this paper reflects the views of the author. this paper is purely original, and not based from any other paper. the format was predetermined by the professor. Holy Angel University COLLEGE OF BUSINESS AND ACCOUNTANCY Department of Business Management A. Y. 2010-2011 CASE ANALYSIS Susan Munroe, Service Customer Submitted to: Mrs. Cristina Naguit Submitted by: LEADER: Fernandez, Marvin T. MEMBERS: Lansangan, Chimova Parker, Harley Mae P. Quioc, Christian Paolo
Santana, Karen F. June 29, 2010 Introduction The fast pace of advances in industrialized locations has increased the need for service, a process that creates benefits by facilitating either a change in customers, a change in their physical possessions, or a change in their intangible assets as described by wordiq. com. Though the service industry is a very lucrative venture to invest in, it is faced with quite a number of challenges. Variability in expectations and perceptions of customer and lack of homogeneity are just some of the problems.
Services are typically modified for each client or each new situation (customized). This there could be a problem of inconsistent quality. Both inputs and outputs to the processes involved providing services are highly variable, as are the relationships between these processes, making it difficult to maintain consistent quality. But the bottom-line is that every customer should be satisfied to stay competent in this industry. After all, in every business, it’s always about the customer. Background of the study
Susan Munroe is a final year business student who makes use of an array of services in a course of a single day. From basic necessities like food, up to her chores and studies, the integration of service to her lifestyle is noticeable. As a customer and business student, her expectation on the quality of service she gets from the providers she transacts with is generally high. She is very keen in observing the multi-facets of the businesses apparently due to her knowledge of what she ought to receive as a customer, which primarily is, satisfaction.
Statement of the Problem: As an unsatisfied customer, what could Susan Munroe do gain higher value from the services she avails of? Analysis of the Problem: The complete list of the services which Susan Munroe has used and has planned to use as mentioned by the case are noted below together with brief descriptions: * Weather forecast in the net (predicted rain, so she prepared by bringing an umbrella) *through the help of some modern services, consumers could prepare and prevent much hazzles caused by inevitable situations * Dropped a letter in the mailbox Rode a bus to school (used her monthly pass, driver is friendly, bus arrived on schedule, but was too full so she had to stand) * Attempted to have bagel for breakfast in a food stand (place was small but cheerfully decorated, However, no bagel is available, store still waiting for more French toast. Offered decaf, but Munroe can’t wait, class about to start. It was not the first time that it happened. *inventory management was the store’s problem in here, having said that the problem of insufficient stocks of raw materials has long been occurring in the past, the owner should have ordered more to prevent the opportunity costs due to it. Finance class (professor lectured in near monotone for 75 minutes, sometimes projects charts on screen to project calculations. she thought online lectures and dvds to be watch at leisure time would be as effective) *infrequent student participation had made the class boring, * Marketing class (which she enjoyed because of dynamic prof who encourages active dialogue in class. She participated well) *service providers vary in quality, * Ate with friends in modernized student union. In contrast with old cafeteria described as gloomy, with unappetizing food and high prices, the place is well lit, colorfully painted, offers variety of options: from local suppliers and brand name fast food chains. sandwiches, ethnic foods, salads and desserts were available. Munroe wanted a sandwich but line is long. Ended up buying hav-a-java and burger king. Place unusually crowded probably due to rain. Tables dirty due to previous users. *It was a good start for the school to improve the cafeteria. It was good that the customers were provided with more choices.
However, cueing has been an issue they failed to address because of overlooked possibilities like the crowd due to the rain . The stall keepers must devise ways on how to make the service faster to cater to all of their prospects. Furthermore, the maintenance of cleanliness is yet another issue. This should be coordinated by the administration with the stall owners. * Withdrew from atm * Called hairdresser to set appointment in preparation for job interview. (appointment made because one customer cancelled her) * Visited language lab in preparation for business Spanish class. videos of customers buying at diff types of stores. She recorded key phrases) * Visited hairdresser. (store was bright and trendy. Staff were well groomed and friendly. Cutter is running late, so she had to wait for 20 minutes. There were other customers waiting. Cutter suggested style, which she didn’t fully accept. She was pleased so she tipped) *Though the high quality of service has given the salon an edge over its competitors, time is crucial in providing service, especially that appointments were set prior to the actual consumption of service. Picked up clothes from cleaners. (place was gloomy, smelled of cleaning solvents, badly needed repainting. Her silk blouse was ready but not the coat she needed for interview. Assistant has dirty fingernails, gave her an insincere apology, no eye contact. Store was convenient, quality is quite good but staff are unfriendly and unhelpful. ) *the frontline employees in a service firm have great impact on the success or failure of the enterprise. Customer-oriented employees must be well selected out of the applicants for they are the most suited type of people in service related jobs. Planned to sched a new eye exam with optometrist. (Reminded her through letter of the need for exam. *follow-ups help a lot in creating long term relationships with consumers, which is essential in inducing customer loyalty for the success of the service enterprise * Planned to try new dry-cleaning service. (promoted through leaflets, and with discount) *Advertising and sales promotion are strategies that new service companies could use to induce “trial usage” of the service * Planned to have pizza delivered. additional services like delivery adds value for the customer, and could be used as promotional strategy to achieve an advantage over competitors Alternative courses of action: A. Munroe could give her feedback relating to her observations on the areas of poor quality of service to the front line employees or if possible, the manager or owner of the service providers she patronizes. Although some of the stated services actually provide good levels of quality, a lot of factors could still interfere with the satisfaction of customers.
Place, employees, time/duration of service and inventory management are among these factors. So to help these service providers to improve their ventures, she should tap the service providers to make them realize that there is a need for them to change in some aspects of their business to stay profitable in the service industry. This could be one of her small contributions as a business student knowledgeable enough to understand the variability of services, and erudite of ways/strategies for development.
Plus she wouldn’t have to find new providers to be satisfied the next time. B. She could find other service providers that could better satisfy her needs Just like what any other unsatisfied customer, she should not settle for anything less than good. She, as a paying customer, must gain customer she deserves to get. It wouldn’t be a loss in her part anyway if she would stop patronizing service companies that does not keep her satisfied. A lot of other companies offer the same services with better quality.
So the next time she picks her providers, she must be sure through testimonies of loyal customers of these companies could give her the what she wants or expects. Recommendations: Alternative a is strongly recommended. She must at least attempt to help these ventures first before shifting to other service providers. She is expected to understand a lot about such businesses, so suggesting some ways she thinks the companies might use to improve isn’t too much to ask for her to do.
However, if she could see that these companies are not even trying address the problems she disclosed, it would be the time for her to consider alternative b. she has done her part, and after all, companies should not be expecting the customers to always understand their shortcomings. She’s still like other customers with a level of expectation to match and a level of satisfaction to meet. Learnings * Not all services are alike, and the differences among services have important implications on the customer’s behavior. Gestures and non-verbal communication have important effects on the service encounter because it gives customers various impressions. * Customer’s expectations about what constitute a good service vary * Expectations change over time. It is influenced by both supplier controlled factors such s advertising, pricing, new technologies, inventories, service innovation, as well as social trends, and increased access to information through the media and the net. Nowadays, customers encounter services more frequently, and each encounter contribute to the customers experience which adds up to his perceptions of satisfaction, and his expectations for the next service. * A paying customer always wants quality service that could overweigh the expenses he incurred the service * Every business must know more on how the customers behave during the service encountered to make necessary amendments to turn the tables around for dissatisfied customers.