MG301 Tutorial

1. Describe a service activity and give a few examples.

Service activities are actions or tasks performed to benefit others, often without direct financial
compensation. These activities can be part of community service, volunteer work, or
professional services offered by organizations and individuals. The primary goal of service
activities is to address societal needs, support communities, and contribute positively to the
welfare of others.
Characteristics of Service Activities
Voluntary Nature: Service activities are often voluntary, meaning they are
performed out of free will rather than obligation. This distinguishes them
from paid employment or mandatory duties.
Community Focus: Many service activities aim to improve the quality of
life within a community. They address various issues such as poverty,
education, health care, and environmental conservation.
Non-Monetary Rewards: While service activities may not provide financial
compensation, they offer other rewards such as personal satisfaction, skill
development, and social recognition.
Diverse Forms: Service activities can take many forms depending on the
needs they address and the resources available. They can range from
individual acts of kindness to organized group efforts.
Impact-Oriented: The effectiveness of a service activity is often measured
by its impact on the target population or issue it aims to address.
Volunteers can participate in various service activities, such as community clean-up
initiatives, tutoring and mentorship programs, food drives and soup kitchens, healthcare
volunteering, and environmental conservation projects. These activities help maintain
cleanliness, promote sustainability, and foster cooperation among participants. They also
provide educational support, aid in homework, distribute non-perishable food items, and
support healthcare delivery. Additionally, they can participate in environmental conservation
projects, such as tree planting and wildlife protection efforts.

2. One of the reasons why service is important is because its

marketing is different from that of tangible products. Explain
Service marketing, a critical field, differs from tangible product marketing due to its
intangible nature, inseparability, variability, and perishability, presenting unique challenges
and opportunities for businesses.

Intangible services, unlike tangible products, cannot be seen, touched, or owned before
purchase. Consumers rely on online reviews, star ratings, and photographs to evaluate service
quality. Marketers must focus on creating strong brand images and reputations to convey trust
and quality, as seen in the hospitality industry.
Services are produced and consumed simultaneously, implying that service provider behavior
directly impacts customer satisfaction. Companies like Singapore Airlines prioritize
employee training programs to ensure high-quality interactions with customers, focusing on
interpersonal skills and problem-solving abilities, thereby enhancing customer experience.

Service variability can lead to inconsistent customer experiences if not managed properly.
Companies like McDonald's implement standardization processes to ensure global service
while allowing local adaptations based on regional tastes, ensuring consistent experiences for
customers.
Perishable services necessitate careful management of supply and demand, as unsold ones
represent lost revenue opportunities. Businesses use strategies like dynamic pricing and
promotions to balance supply and demand, like airlines adjusting ticket prices.

Examples Illustrating Service Marketing Strategies

1. Healthcare Services: Hospitals often market themselves through patient
testimonials and success stories rather than just listing medical equipment
available because patients value personal care experiences over technical
specifications.

2. Financial Services: Banks offer personalized financial advice sessions as

part of their marketing strategy since trust plays a significant role in choosing
financial institutions.

3. How has technology enhanced the services of a bank over the

years?
The evolution of technology has profoundly transformed the banking industry, enhancing its
services in numerous ways. This transformation can be traced back to several key
technological advancements that have reshaped how banks operate and interact with their
customers. From the introduction of ATMs to the rise of digital banking, each technological
innovation has contributed to making banking more efficient, accessible, and secure.

ATMs introduced in the late 1960s revolutionized banking services by enabling 24/7 cash
withdrawals and deposits, reducing bank teller workload, and paving the way for further
automation, leading to cost reductions and improved operational efficiency.

Online banking, introduced in the mid-1990s, revolutionized customer interactions with

banks by allowing account management from anywhere, enhancing convenience, increasing
transparency, and enhancing control over personal finances.

Mobile banking emerged in the 2000s as an extension of online banking services, offering
flexibility and accessibility through mobile apps and features like camera capture technology,
making it a critical channel for financial institutions

Blockchain technology enhances secure transactions in banks by providing a decentralized

ledger system, reducing fraud risks, and facilitating cross-border payments, trade finance, and
identity verification, transforming future banking services.
Artificial Intelligence and machine learning are transforming banking operations, providing
instant customer support and analyzing data to detect fraudulent activities. AI is also used for
personalized financial advice. Cybersecurity is a crucial aspect, with banks investing in
encryption, multi-factor authentication, and biometric verification to protect customer data.
Technology has improved accessibility, efficiency, security, and customer experience through
innovations like ATMs, online platforms, blockchain applications, AI-driven solutions, and
robust cybersecurity measures.

4. Describe customer gap with an example.

The customer gap is a significant issue in service quality and satisfaction studies, referring to
the difference between customer expectations and actual service received. It's part of the
Gaps Model of Service Quality, highlighting how discrepancies between expected and
perceived service can lead to dissatisfaction. Customer expectations are influenced by past
experiences, word-of-mouth communication, marketing communications, and personal needs.
Customer expectations are influenced by past experiences, word-of-mouth communication,
marketing communications, and personal needs. Customer perceptions are influenced by
service performance, service environment, and employee interaction. For example, a luxury
hotel chain with exceptional customer service may face a customer gap due to understaffing,
slow check-in, lack of amenities, and longer service times. To bridge this gap, businesses
should understand customer expectations, enhance service delivery, manage expectations
through communication, and continuously improve. Regular surveys, staff training, and
feedback mechanisms can help businesses reduce or eliminate the customer gap, enhancing
satisfaction and loyalty.

5. Briefly explain how the four provider gaps give rise to customer
gap.

The "Gaps Model of Service Quality" identifies service quality gaps within organizations,
contributing to the customer gap, which is the difference between customer expectations and
actual service delivery.
Gap 1: The Knowledge Gap
This gap arises when there is a discrepancy between what customers expect and what
management perceives those expectations to be. It often results from inadequate
market research, poor communication channels, or insufficient relationship focus with
customers. When management does not accurately understand customer needs and
desires, it leads to misaligned service offerings.
Gap 2: The Policy Gap
Also known as the standards gap, this occurs when there is a difference between
management’s perception of customer expectations and the service quality
specifications set by the organization. Even if management understands what customers
want, they may fail to translate these expectations into appropriate service standards
due to constraints such as cost or operational limitations.
Gap 3: The Delivery Gap
This gap emerges when there is a failure in delivering services according to established
standards. It can be attributed to deficiencies in human resources policies, lack of
employee empowerment, inadequate training programs, or ineffective internal
processes that hinder employees’ ability to meet service standards consistently.
Gap 4: The Communication Gap
This gap occurs when there is a disparity between what is promised through external
communications (such as advertising or sales promotions) and what is actually
delivered. Overpromising in marketing messages can lead to heightened customer
expectations that are difficult for the service delivery team to meet.

How Provider Gaps Lead to Customer Gap

The cumulative effect of these provider gaps results in the customer gap—the
ultimate measure of service quality from a customer’s perspective. Each provider
gap contributes uniquely:

 Knowledge Gap: Misunderstanding customer needs leads directly to unmet

expectations.
 Policy Gap: Inadequate or inappropriate standards mean even well-
understood needs are not met.
 Delivery Gap: Failure in execution ensures that even well-designed services
fall short.
 Communication Gap: Mismatched promises create unrealistic expectations
that cannot be fulfilled.

When these internal gaps are present within an organization, they manifest
externally as a perceived shortfall in service quality by customers. Addressing each
provider gap requires targeted strategies such as improving market research
techniques, aligning organizational policies with customer needs, enhancing
employee training programs, and ensuring honest communication with customers.

By systematically closing these provider gaps, organizations can significantly reduce

the customer gap, thereby enhancing overall satisfaction and loyalty.

6. using an example, explain why it is important to address the four

provider [Link] Four Provider Gaps
1. Gap 1: Knowledge Gap

 This gap arises when there is a difference between customer

expectations and management’s perception of those expectations. It
often occurs due to inadequate market research or poor
communication between frontline employees and management.

2. Gap 2: Policy Gap

 The policy gap occurs when there is a discrepancy between

management’s perception of customer expectations and the service
quality specifications set by the organization. This can be due to
resource constraints, lack of standardization, or ineffective policy
implementation.

3. Gap 3: Delivery Gap

 This gap exists when there is a difference between service quality

specifications and the actual service delivered. Factors contributing to
 this gap include employee performance issues, poor training, or lack of
proper tools and resources.

4. Gap 4: Communication Gap

 The communication gap arises when there is a mismatch between

what is promised through external communications (such as
advertising) and what is actually delivered. Overpromising in marketing
materials can lead to heightened customer expectations that are not
met.

Example: A Hotel Chain

Consider a large hotel chain aiming to improve its guest experience by addressing
these provider gaps:

Knowledge Gap
The hotel conducts comprehensive market research to better understand guest
preferences, such as room amenities or check-in processes. By aligning
management’s understanding with actual guest desires, they reduce this gap.

Policy Gap
The hotel reviews its policies on room cleanliness standards and staff-to-guest
ratios. By ensuring these policies reflect guest expectations accurately, they
minimize discrepancies that could lead to dissatisfaction.

Delivery Gap
To address this gap, the hotel invests in staff training programs focused on customer
service excellence and equips employees with necessary tools like mobile check-in
technology to streamline operations.

Communication Gap
The marketing team collaborates closely with operations to ensure promotional
materials accurately represent the services provided. They avoid exaggerated claims
about amenities or experiences that cannot be consistently delivered.

By systematically addressing each provider gap, the hotel chain enhances its overall
service quality, leading to increased guest satisfaction and repeat business.

Conclusion
Addressing the four provider gaps is essential for any organization striving for high-
quality service delivery. By understanding and mitigating these gaps, businesses can
align their operations more closely with customer expectations, thereby fostering
trust and loyalty among their clientele.

1. using a restaurant example, describe the dual customer expectations levels and
zone of tolerance.

Dual Customer Expectations Levels

Customer expectations are typically categorized into two primary levels: desired
service and adequate service. These levels represent the spectrum of what
customers anticipate when they engage with a service provider.

Desired Service
Desired service is the level of service that customers hope to receive. It represents
an ideal scenario where all aspects of the dining experience meet or exceed
customer aspirations. In a restaurant, this might include prompt seating, attentive
and knowledgeable waitstaff, high-quality food presentation, and an inviting
ambiance. Desired service is often shaped by personal needs, past experiences,
word-of-mouth recommendations, and marketing communications.

For instance, if a customer visits a fine dining restaurant expecting gourmet cuisine
and impeccable service based on its reputation or reviews, their desired level would
be set accordingly high. Achieving this level can lead to customer delight and loyalty.

Adequate Service
Adequate service refers to the minimum acceptable level of performance that
customers are willing to tolerate without feeling dissatisfied. This threshold is
influenced by situational factors such as time constraints or alternative options
available to the customer.

In a restaurant context, adequate service might involve receiving food within a

reasonable timeframe even if it lacks some finesse in presentation or flavor
complexity expected at higher-end establishments. Customers may adjust their
adequate expectations based on circumstances like peak hours or special events
when delays are more likely.

Zone of Tolerance
The zone of tolerance is the range between desired and adequate service levels
within which customers perceive variations in performance as acceptable. It acts as
a buffer zone where minor deviations from desired expectations do not necessarily
lead to dissatisfaction.
Application in Restaurants
In restaurants, the zone of tolerance can vary widely among different customers
based on individual preferences and situational factors. For example:

 Service Speed: During lunch hours when patrons may have limited time, their
zone of tolerance for speed might be narrower compared to dinner when they
expect a leisurely experience.

 Food Quality: A casual diner may have a broader zone for food quality than
someone dining at an upscale establishment where culinary excellence is
paramount.

 Ambiance: While some diners prioritize ambiance highly (narrower zone),

others may focus more on food quality or price (wider zone).

Understanding these nuances allows restaurateurs to tailor their services according

to varying customer segments’ zones while striving consistently towards meeting
desired expectations whenever possible.

Managing Expectations
Effective management involves recognizing potential gaps between actual
performance versus both desired/adequate levels across different touchpoints
throughout the dining journey—from reservation handling through post-meal
feedback collection—and taking proactive measures accordingly:

1. Training Staff: Ensuring employees understand how critical each interaction

point contributes towards shaping overall perceptions helps maintain
consistency aligned with brand promise.

2. Communication Strategies: Clear communication regarding wait times

during busy periods sets realistic anticipations upfront reducing potential
dissatisfaction stemming from unmet desires.

3. Feedback Mechanisms: Regularly soliciting guest feedback enables

identification areas needing improvement thereby narrowing any existing gaps
between current offerings versus evolving consumer demands over time.

By effectively managing these dual expectation levels alongside maintaining

awareness around individual zones’ tolerances specific contexts like restaurants
become better equipped delivering memorable experiences fostering long-term
patronage ultimately driving business success forward sustainably amidst
competitive landscapes today’s dynamic marketplace presents us all alike!

2. using an example of a medical centre, explain how ‘perceived service

alternatives’ can affect adequate service level and zone of tolerance.
3. Understanding Perceived Service Alternatives

4. Perceived service alternatives refer to the customer’s perception of other

available options for receiving similar services. In a medical center context,
this could mean other hospitals, clinics, or healthcare providers that offer
comparable medical services. The availability and perceived quality of these
alternatives can significantly influence how patients evaluate the services they
receive at a particular medical center.

5. Adequate Service Level

6. The adequate service level is defined as the minimum level of service that
customers find acceptable. It represents a threshold below which service
performance becomes unsatisfactory. This concept is dynamic and can be
influenced by several factors, including personal needs, situational factors,
and perceived service alternatives.

7. Influence of Perceived Service Alternatives on Adequate

Service Level
8. When patients perceive that there are numerous high-quality alternative
medical centers available, their adequate service level tends to rise. This
means they expect more from their current provider because they know they
have other options if their expectations are not met. For example, if a patient
knows there are several reputable hospitals nearby offering similar treatments
with shorter wait times or better facilities, their tolerance for delays or subpar
conditions at their current medical center decreases.

9. Conversely, if perceived alternatives are limited or considered inferior in

quality, patients may lower their adequate service level expectations. They
might tolerate longer wait times or less personalized care because they
perceive fewer viable options elsewhere.

10. Zone of Tolerance

11. The zone of tolerance is the range between desired service (what customers
hope to receive) and adequate service (the minimum acceptable). Within this
zone lies an area where variations in service delivery are tolerated without
leading to dissatisfaction.

12. Influence of Perceived Service Alternatives on Zone of

Tolerance
13. Perceived service alternatives can also affect the width of the zone of
tolerance. When many high-quality alternatives exist, patients’ zones of
tolerance tend to narrow because they become less forgiving of deviations
 from their desired service levels. They might quickly switch providers if their
experiences fall short since they believe better options are readily accessible.

14. On the other hand, when perceived alternatives are scarce or less appealing,
patients’ zones of tolerance may widen. They might be more lenient with
occasional lapses in service quality because switching providers is not seen
as a beneficial option.

15. Example: A Medical Center Scenario

16. Consider a scenario involving a suburban medical center surrounded by

several competing healthcare facilities within a 10-mile radius. Patients at this
center have access to multiple alternative providers known for excellent care
and modern amenities.

17. Impact on Adequate Service Level

18. Patients visiting this suburban medical center likely have higher adequate
service levels due to awareness of these competitive options. They expect
timely appointments, courteous staff interactions, clean facilities, and effective
treatments because they know similar standards exist nearby.

19. Impact on Zone of Tolerance

20. Given the competitive landscape with abundant perceived alternatives, these
patients exhibit narrower zones of tolerance. Any deviation from expected
standards—such as long waiting times or impersonal treatment—could
prompt them to consider switching providers swiftly since they believe better
experiences await elsewhere.

21. Conclusion

22. In summary, perceived service alternatives play an instrumental role in

shaping both adequate service levels and zones of tolerance within
healthcare settings like medical centers. By understanding how these
perceptions influence patient expectations and behaviors regarding
healthcare services received at specific institutions versus potential
competitors’, administrators can strategically manage operations towards
enhancing patient satisfaction while maintaining competitive advantage over
rival establishments.

4. Explain how your service expectations have escalated over the years as a bank customer.
The evolution of service expectations for bank customers has been influenced by
technological advancements, regulatory changes, and changing consumer behaviors.
The early banking services were transactional and in-person, with customers visiting
 local branches for reliability, security, and personal interaction. The introduction of
ATMs and online banking in the late 20th century led to a shift in customer
expectations towards convenience and efficiency. The mobile banking revolution saw
the rise of mobile banking applications, offering real-time notifications, peer-to-peer
payments, and budgeting tools. The rise of fintech companies has also pushed
traditional banks to innovate further, offering specialized services and maintaining
robust security measures. Today's consumers expect highly personalized experiences,
similar to tech giants like Amazon or Netflix. Additionally, there is an increasing
demand for omnichannel support and regulatory compliance, such as GDPR, which
mandates stringent data handling practices across industries. In conclusion, escalating
service expectations reflect broader societal trends towards digitization,
personalization, enhanced security, ethical governance, and rapid technological
change.

5. using an example of a bank, explain how your perception was affected by the
service encounter.

Service encounters in banking are crucial moments of interaction between customers and
service providers, affecting customer satisfaction, loyalty, and trust. The SERVQUAL
model, developed by Parasuraman, Zeithaml, and Berry, defines service quality and
customer satisfaction by five dimensions: tangibles, reliability, responsiveness, assurance,
and empathy. Tangibles refer to the physical aspects of the service environment, while
reliability involves delivering promised services reliably and accurately. Respondentness
measures how willing and prompt employees are in helping customers, while assurance
encompasses employees' knowledge and courtesy, inspiring trust and confidence.
Empathy involves personalized attention and understanding customer needs.

A positive customer perception is enhanced when all elements align with expectations,
such as timely responses, accurate information delivery, and courteous interaction.
Negative perception, such as delays or misinformation, can lead to dissatisfaction.
Consistent positive experiences across multiple encounters build trust and loyalty towards
the bank. By focusing on these dimensions, banks can significantly enhance customer
satisfaction levels and foster long-term relationships with clients.

5. Using your own examples of any service activity, describe how you assessed service quality of a
service company in terms of outcome quality, interaction quality and physical environment quality.
Outcome quality refers to the final outcome of a service, ensuring it meets the customer's
needs and fulfills its intended purpose. It includes factors like accuracy, reliability, and
timeliness. Interaction quality focuses on the interpersonal aspects of service delivery,
affecting customer satisfaction and loyalty. Key elements include empathy, responsiveness,
and communication. Physical environment quality refers to the tangible aspects of the service
setting, including cleanliness, ambiance, layout, and equipment condition. For example, a
luxury hotel's physical environment could be evaluated based on room decor, lobby design,
amenities, and cleanliness. A comprehensive evaluation across these dimensions helps
identify areas for improvement and reinforces strengths that enhance customer satisfaction.

6. Discuss the five service dimensions using your own examples.

The five service dimensions—tangibility, reliability, responsiveness, assurance, and empathy—are
essential components of service quality that help businesses understand customer expectations and
improve their offerings. Each dimension plays a unique role in shaping customer perceptions and
experiences. Below, we will discuss each dimension in detail, providing examples to illustrate their
importance.

1. Tangibility
Tangibility refers to the physical aspects of a service that customers can see or experience. This
includes the appearance of facilities, equipment, personnel, and communication materials. Tangibles
create first impressions and influence customer perceptions of quality.

Example: A high-end hotel invests in luxurious furnishings, well-maintained grounds, and

professional staff uniforms. When guests arrive, they are greeted by a beautifully designed lobby
with elegant decor and attentive staff. This polished appearance signals to customers that they can
expect high-quality service throughout their stay.

2. Reliability
Reliability is about delivering promised services dependably and accurately. It is crucial for building
trust with customers as it reflects a company’s ability to meet its commitments consistently.

Example: A food delivery service guarantees delivery within 30 minutes of placing an order. If the
company consistently meets this promise without delays or errors in orders, customers will view it as
reliable. Conversely, if deliveries frequently arrive late or incorrect orders are common, customer
trust will diminish.

3. Responsiveness
Responsiveness involves the willingness to help customers and provide prompt service. It
emphasizes how quickly and effectively a business addresses customer inquiries or issues.

Example: In a restaurant setting, staff members promptly attend to diners’ requests for additional
drinks or menu changes during busy hours. If a customer raises a concern about their meal,
responsive staff members quickly address the issue by offering replacements or apologies without
making the customer wait long.

4. Assurance
Assurance encompasses the knowledge and courtesy of employees as well as their ability to inspire
confidence in customers. It is about creating a sense of security through expertise and
professionalism.

Example: A financial advisor demonstrates assurance by clearly explaining investment options while
showcasing relevant certifications on their office wall. By being knowledgeable and approachable
during consultations, they instill confidence in clients regarding their financial decisions.

5. Empathy
Empathy refers to the personalized attention that employees provide to customers. It involves
understanding individual needs and demonstrating care throughout interactions.

Example: A healthcare provider takes time to listen to patients’ concerns during appointments
rather than rushing through them. By addressing specific worries and showing genuine interest in
patients’ well-being, the provider fosters strong relationships that encourage loyalty and trust

Wk 5: chaps 5 & 6 tutorial questions:

1. Using an example of a fast food restaurant, explain how
you can employ the services research of mystery shopping.

Mystery shopping is a valuable tool for fast food restaurants to assess and
enhance their customer service, operational efficiency, and overall guest experience.
By employing mystery shopping services, restaurants can gain insights into various
aspects of their operations from the perspective of a typical customer.

Step 1: Define Objectives

The first step in employing mystery shopping services is to clearly define the
objectives. For example, a fast food restaurant may want to evaluate:

 Service Speed: How quickly customers are served from ordering to receiving
their food.
 Order Accuracy: Whether the orders are prepared correctly according to
what was requested.
 Staff Engagement: How friendly and helpful the staff members are during the
interaction.
 Cleanliness: The overall cleanliness of the dining area and restrooms.

Step 2: Select a Mystery Shopping Provider

Choosing a reputable mystery shopping provider is crucial. Companies like
BestMark, Coyle Hospitality, or Intouch Insight specialize in restaurant evaluations
and can tailor their programs to meet specific needs. These providers typically offer:

 Customized Programs: Tailored evaluations based on the restaurant’s

unique criteria.
 Professional Evaluators: Trained mystery shoppers who blend in as regular
customers.

Step 3: Develop Evaluation Criteria

Once a provider is selected, work with them to develop specific evaluation criteria
that align with your objectives. For instance:

 Service Speed Metrics: Time taken from placing an order to receiving it.
  Order Accuracy Checklist: A list of items ordered versus what was received.
 Engagement Assessment: Specific behaviors that indicate staff friendliness
(e.g., greeting customers, making recommendations).
 Cleanliness Standards: Specific areas to be evaluated for cleanliness (e.g.,
tables, floors, restrooms).

Step 4: Conduct Mystery Shops

After establishing criteria, schedule mystery shops at various times and locations.
This helps gather diverse data reflecting different operational conditions. During
these visits, mystery shoppers will:

 Place orders as regular customers.

 Observe and document their experiences based on the established criteria.

Step 5: Analyze Results

Once the mystery shopping visits are completed, analyze the feedback provided by
the evaluators. This analysis should include:

 Performance Reports: Detailed reports highlighting strengths and

weaknesses in service delivery.
 Benchmarking Data: Comparing results against industry standards or
previous performance metrics.

Step 6: Implement Improvements

Based on the insights gained from mystery shopping reports, implement necessary
changes within the restaurant. This could involve:

 Staff Training Programs: Addressing areas where staff engagement or

service speed fell short.
 Operational Adjustments: Modifying processes to improve order accuracy
or reduce wait times.
 Cleaning Protocols: Enhancing cleaning schedules based on cleanliness
feedback.

Step 7: Monitor Progress Over Time

Finally, establish a continuous monitoring system using periodic mystery shopping
evaluations. This ongoing assessment allows for tracking improvements over time
and ensuring that high standards are maintained consistently across all locations.

In summary, employing mystery shopping services in a fast food restaurant involves

defining clear objectives, selecting a qualified provider, developing tailored
evaluation criteria, conducting thorough assessments, analyzing results for
actionable insights, implementing improvements based on findings, and continuously
monitoring progress to enhance customer satisfaction and operational efficiency. 123

2. Prepare a 5-question open-ended questionnaire for the

services research of critical incident study.

3. Open-Ended Questionnaire for

Critical Incident Study
4. 1. Can you describe a specific incident in your experience where a
service significantly impacted the outcome of a project or task? Please
provide details about the context, actions taken, and the results.

5. This question aims to elicit detailed narratives from participants about critical
incidents that had a notable effect on their work. It encourages them to reflect
on both positive and negative experiences.

6.

7. 2. What were the key factors or elements that contributed to the success
or failure of this incident? Please elaborate on any specific actions,
decisions, or interactions that played a crucial role.

8. This question seeks to identify underlying mechanisms and contextual factors

that influenced the incident’s outcome, allowing researchers to understand
what works and what doesn’t in similar situations.

9.

10. 3. How did you feel during this incident, and how did those emotions
influence your actions or decisions? Please describe any emotional
responses you experienced at different stages of the incident.

11. By focusing on emotional responses, this question helps uncover the

psychological aspects of critical incidents, providing insights into how
emotions can affect decision-making and behavior in professional settings.

12.
 13. 4. In retrospect, what would you have done differently in this situation?
Are there any lessons learned that could inform future practices or
improve service delivery?

14. This reflective question encourages participants to think critically about their
experiences and consider improvements for future incidents. It also helps
gather valuable insights for enhancing service processes.

15.

16. 5. Can you share an example of how teamwork or collaboration

influenced the outcome of this incident? What roles did different team
members play, and how did their contributions impact the overall
result?

17. This question focuses on interpersonal dynamics within teams during critical
incidents, aiming to explore how collaboration affects outcomes and
identifying best practices for teamwork in service contexts.

18.

19. These questions are designed to facilitate rich qualitative data collection
through open-ended responses, aligning with the principles of the Critical
Incident Technique (CIT).

3. Discuss how the upward communication techniques of

research on intermediate and internal customers can help
managers.

Upward communication fosters transparency, encourages employees to provide feedback,

report progress, express concerns, and suggest improvements, leading to improved morale,
increased productivity, and enhanced organizational performance.
Upward communication can be enhanced through various techniques, including feedback
mechanisms, open-door policies, regular meetings, internal customer research, and
intermediate customer analysis. Feedback mechanisms, such as suggestion boxes and
surveys, encourage employees to share their thoughts openly, identifying trends or issues that
may not be immediately apparent. Open-door policies foster a culture of openness and trust,
allowing managers to be more attuned to the needs and challenges faced by their teams.
Regular meetings provide structured opportunities for upward communication, allowing
employees to voice their opinions directly to decision-makers. Internal customer research
helps managers understand their needs, expectations, and satisfaction levels with services
provided by other departments, enabling them to streamline processes and improve
interdepartmental collaboration. Intermediate customer analysis helps identify any distortions
or barriers in communication channels. Implementing these techniques offers benefits for
managers, including enhanced decision-making, improved employee engagement, early
problem detection, increased innovation, and better alignment with organizational goals. For
example, a manufacturing company can address equipment malfunctions by implementing an
anonymous suggestion system and regular team meetings led by approachable supervisors.

4. Explain the importance of relationship marketing.

Relationship marketing is a strategic strategy that emphasizes building and maintaining long-
term customer relationships, leveraging psychology, sociology, and economics to understand
customer interactions, crucial in today's competitive business environment.
Relationship marketing is a customer-centric approach that prioritizes customer needs and
preferences, fostering trust and loyalty. It emphasizes long-term engagement, involving
consistent communication, personalized interactions, and ongoing support throughout the
customer lifecycle. Personalization, leveraging data analytics and customer insights, creates a
connection between the brand and customers, enhancing satisfaction. Trust building is a key
element in successful relationships, and relationship marketing strategies aim to build it
through transparency, reliability, and ethical practices.
Relationship marketing offers several benefits, including increased customer loyalty,
enhanced brand reputation, cost efficiency, and a competitive advantage. Loyal customers are
more likely to make repeat purchases, recommend the brand, and provide feedback, leading
to higher revenue streams. Retention strategies help reduce costs associated with advertising
campaigns and promotional efforts. In highly competitive industries, relationship-based
approaches create emotional connections between brands and consumers, which competitors
may struggle to replicate quickly.
For example, Amazon's Prime membership program, offering free shipping and exclusive
content, effectively exemplifies relationship marketing through personalized services,
fostering loyalty among millions worldwide through deep-rooted connections and
personalized offerings.

5. We should keep a track on customer profitability and focus

more on the most profitable ones. Explain this statement.

Customer profitability analysis is crucial for modern business strategy, revealing the most
significant customers' contributions to a company's bottom line. It aids in resource allocation,
marketing strategies, and customer relationships, enhancing business focus.

Tracking customer profitability is crucial for companies to efficiently allocate resources,

make strategic decisions, manage risks, enhance customer relationships, and gain a
competitive advantage. By focusing on profitable customers, businesses can improve
marketing efforts, sales personnel, and customer service, leading to increased retention rates
and a better understanding of their strengths.
Customer profitability can be analyzed using various methodologies, including Activity-
Based Costing (ABC), Customer Lifetime Value (CLV), and Segment Analysis. ABC assigns
costs based on production activities, CLV estimates revenue over a customer's entire
relationship, and segment analysis identifies profitability patterns.

Focusing on Profitable Customers

Focusing on the most profitable customers involves several strategic actions:

1. Personalization: Tailoring products and services to meet specific needs

enhances satisfaction and loyalty among high-value customers.

2. Loyalty Programs: Implementing reward systems encourages repeat

business from profitable segments.

3. Upselling and Cross-Selling: Offering additional products or services that

complement existing purchases can increase revenue per customer.

4. Feedback Mechanisms: Engaging with top-tier customers for feedback helps

refine offerings and improve overall service quality.

5. Cost Management: Reducing service costs without compromising quality

ensures that even marginally profitable customers become more lucrative
over time.

Challenges in Managing Customer Profitability

While focusing on profitable customers offers numerous benefits, it also presents

challenges:

 Data Accuracy: Ensuring accurate data collection and analysis is crucial for
reliable profitability assessments.

 Dynamic Markets: Changes in market conditions can affect customer

behavior and profitability patterns.

 Balancing Act: While prioritizing high-value clients is essential, neglecting

less profitable ones could lead to missed opportunities if they have potential
for growth.

In conclusion, tracking customer profitability is an indispensable practice for

businesses aiming to maximize efficiency and growth potential. By concentrating
efforts on nurturing relationships with their most valuable clients while strategically
managing others, companies can achieve sustainable success in competitive
markets.
 6. For relationship strategies, companies can engage in
activities to encourage customers to remain with their
company out of willingness unlike the switching barriers.
There are four levels of relationship strategies. Discuss the
best of these four levels.

7. Relationship strategies in business are crucial for fostering customer loyalty and long-
term engagement. There are four levels of relationship strategies: transactional,
reactive, accountable, and proactive. Transactional relationships focus on individual
sales, while reactive relationships respond to customer needs and feedback.
Accountable relationships ensure customer satisfaction and trust, while proactive
partnerships anticipate customer needs and offer value beyond the initial purchase.

Proactive partnerships are the most effective for building lasting relationships, as they
involve anticipating customer needs, co-creating value, personalizing experiences,
and aiming for long-term engagement. Key characteristics of proactive partnerships
include data analysis, value co-creation, personalization, and long-term engagement.
Benefits of proactive partnerships include enhanced customer loyalty, increased
lifetime value, competitive advantage, innovation opportunities, and resilience against
market changes.

In conclusion, proactive partnerships are the pinnacle of effective customer

engagement strategies due to their emphasis on anticipation, personalization, co-
creation of value, and long-term commitment.

Wk 6: chap 7 & 8 tutorial questions:

1. You are a manager of a busy pizza eatery. A customer
ordered a regular vegetarian pizza and one of your
staff took note of the order. Customer paid for the
meal and was asked to wait for 20 minutes. The order
was ready on time. However, customer noticed that it
was not vegetarian but chicken pizza and began to
complain. Explain how you as the manager will
perform the recover strategy.

In the pizza industry, customer satisfaction is crucial, and a mistake can lead to loss of trust
and loyalty. To address this, managers should acknowledge the mistake, assess and
understand the customer's concerns, offer immediate solutions, and implement follow-up
measures. These could include preparing a new order, providing compensation, and ensuring
timely delivery. Feedback requests, updating the customer database, and staff training can
also help ensure long-term satisfaction. Internal communication about the incident can help
identify patterns and improve processes. Documenting and analyzing these incidents can help
identify systemic problems contributing to errors and develop strategies for improvement.
This approach not only resolves the issue but also strengthens the establishment's reputation
for excellent customer service.

2. You are a front desk supervisor in an airline company. You

have noticed that passengers are posting negative remarks on
social media regarding your staffs’ rude behaviour when they
complain about poor services. Explain how you will go about
improving this situation.

To improve customer service and address negative feedback in an airline company, a

comprehensive strategy should be implemented. This includes understanding the root cause
of complaints, training staff in empathy and communication skills, and implementing
continuous learning opportunities. Internal communication should be improved through
regular team meetings and real-time feedback systems. Analyzing feedback trends helps
identify recurring issues and prioritize areas for improvement. Engaging with customers on
social media platforms demonstrates responsiveness and commitment to addressing concerns.
Personalized responses are crucial, as transparency builds trust among consumers.
Encouraging positive interactions online can counterbalance negative remarks and promote
brand loyalty. Progress can be evaluated through metrics such as customer satisfaction scores,
reductions in complaint volumes, and surveys targeting frequent flyers or loyalty program
members. By systematically addressing these aspects, the airline company can mitigate
existing issues and cultivate long-term improvements across its service delivery spectrum.

2. Create an outline of a service blueprint.

Outline of a Service Blueprint

A service blueprint is a comprehensive visual representation that maps out the
service process, highlighting the interactions between customers and service
providers. It serves as a tool for understanding and improving service delivery by
detailing each step of the customer journey, the roles of employees, and the
supporting processes involved. Below is an outline of a typical service blueprint:

1. Introduction to Service Blueprinting

 Definition and Purpose
  Importance in Service Design
 Historical Context and Development

2. Components of a Service Blueprint

 Customer Actions
 Steps taken by customers during the service process
 Interaction points with the service provider
 Frontstage (Visible) Interactions
 Direct interactions between customers and employees
 Physical evidence or tangible elements encountered by customers
 Backstage (Invisible) Interactions
 Employee actions not visible to customers but essential for service
delivery
 Internal processes that support frontstage activities
 Support Processes
 Systems and infrastructure that facilitate service delivery
 Role of technology in enhancing efficiency
 Lines of Interaction
 Line of Interaction: Separates customer actions from frontstage
interactions
 Line of Visibility: Distinguishes between frontstage and backstage
activities
 Line of Internal Interaction: Differentiates backstage activities from
support processes

3. Steps to Create a Service Blueprint

 Identifying Key Customer Personas and Scenarios
 Mapping Customer Journey Stages
 Detailing Each Component with Specific Actions and Processes
 Visualizing Lines of Interaction and Visibility

4. Benefits of Using Service Blueprints

 Enhancing Customer Experience through Improved Service Design
 Identifying Bottlenecks and Areas for Improvement
  Facilitating Cross-Departmental Collaboration
 Aligning Organizational Goals with Customer Needs

5. Challenges in Implementing Service Blueprints

 Complexity in Mapping Extensive Services
 Ensuring Accuracy and Relevance Over Time
 Integrating Feedback Mechanisms for Continuous Improvement

6. Case Studies and Applications

 Examples from Various Industries (e.g., Hospitality, Healthcare, Retail)
 Lessons Learned from Successful Implementations

7. Conclusion
- Summary of Key Points

- Future Trends in Service Blueprinting

4. Create a service blueprint for express mail delivery

process [a fast post].

Service Blueprint for Express Mail

Delivery Process
A service blueprint is a comprehensive visual representation that outlines the
processes involved in delivering a service. It helps organizations understand and
improve their service delivery by mapping out each step of the process, identifying
potential bottlenecks, and ensuring that all elements work together seamlessly. In
the context of express mail delivery, a service blueprint can be instrumental in
optimizing operations to ensure timely and efficient delivery.

1. Customer Actions
These are the steps taken by customers to initiate and complete the express mail
delivery process.
  Preparation: The customer prepares the item for shipment, ensuring it is
properly packaged and labeled.
 Drop-off or Pickup Request: The customer either drops off the package at a
designated location or requests a pickup from their location.
 Tracking: Customers track their package using an online tracking system
provided by the courier service.
 Receipt Confirmation: Upon delivery, customers receive confirmation that
their package has been delivered.

2. Frontstage (Visible Contact Employee Actions)

These actions are performed by employees who interact directly with customers.

 Customer Service Interaction: Employees assist customers with inquiries

about services, pricing, and packaging requirements.
 Package Acceptance: At drop-off locations, employees accept packages
from customers, verify details, and provide receipts.
 Delivery Confirmation: Delivery personnel confirm receipt of packages with
recipients upon successful delivery.

3. Backstage (Invisible Contact Employee Actions)

These actions are performed by employees who do not interact directly with
customers but support frontstage activities.

 Sorting and Routing: Packages are sorted based on destination and routed
accordingly to ensure efficient transportation.
 Transportation Coordination: Logistics teams coordinate transportation
schedules to optimize delivery routes.
 Issue Resolution: Back-office staff handle any issues related to lost or
delayed packages.

4. Support Processes
These include all internal processes that support both frontstage and backstage
activities.

 IT Systems Management: Ensuring that tracking systems and databases are

operational for real-time updates.
 Human Resources Management: Hiring, training, and managing staff to
maintain high levels of customer service.
  Quality Assurance: Regular audits of processes to ensure compliance with
standards and identify areas for improvement.

5. Physical Evidence
This refers to tangible elements that customers encounter during the service
process.

 Packaging Materials: Branded envelopes or boxes provided by the courier

service.
 Receipts/Documentation: Proof of transaction provided at drop-off or pickup
points.
 Tracking Interface: Online platforms where customers can monitor their
package's journey.

6. Line of Interaction
The line of interaction represents direct contact between customers and employees
during various stages of the process. This includes face-to-face interactions at drop-
off points or virtual interactions through customer service channels.

7. Line of Visibility
This line separates frontstage activities visible to customers from backstage activities
that are not visible but crucial for seamless operation.

8. Line of Internal Interaction

This line delineates interactions between different departments within the
organization that contribute to delivering express mail services efficiently.

By mapping out these components in a service blueprint, express mail delivery

companies can identify inefficiencies in their processes, enhance customer
satisfaction through improved service quality, and streamline operations across
various departments involved in delivering fast post services effectively.