Services Encounter Journal Report

Executive Summary

            This report offers an in-depth analysis of the present and prospective issues faced by the servicing companies in the United Kingdom. The primary method that was applied was the thorough analysis of personal service experience across different servicing companies ranging from restaurant, banks, automobile, and transport and so on. The concepts of customer’s satisfaction need, quality and loyalty are also highlighted. The report sought to analyse service encounter from a personalized perspective through the application of 3 extra Ps of service, Zone of Tolerance and service quality, satisfaction vs. loyalty. The study has proposed some viable recommendations that companies can apply to enhance customer satisfaction, loyalty and adhere to quality value. From the data collected from ten different journals, it was concluded that the satisfactory services are those that subscribe to quality and meets the needs of the customer. The study, therefore, offers strategies for maximization of service success in a comprehensive range of industries.

Introduction

The perception held by a customer regarding service is mainly reliant on the service experience. The receptiveness and assertion that is offered by the services providers is the main contributor to quality and satisfying services. Service encounter refers to one by one interaction between the workers and the employees. The importance of quality services has been asserted by the increasing focus to build on quality customer relationships across companies in different industries. However, it cannot be denied that some companies still offer very dissatisfying services that fail not only to meet the expectations of the customers but also the assertions and goals of the company. Over the past five consecutive weeks through which thorough analysis of the quality of services received was done, I realized that the personal communication with the services providers was influential in enhancing my understanding of what service quality, satisfaction, perception and customer loyalty means. Resulting from the acquired experience my knowledge of specific brands and commitment to particular services has been affected either positively or undesirable. Through the experience, I realized that the companies and the employees that offered dissatisfying services were mainly driven by profit rather than the need to create value for their customers through quality servicing.

Methods and Procedures

Primary data played a vital role in writing this report. In that throughout five weeks, I acquired for different services. The services were not exceptional as they are the ones that were enquired for on a daily basis. After the received services the data would then be recorded to determine whether the service was satisfactory or not. The criteria that were utilized in the classification involved establishing whether my expectations and needs for the services were met. Also, the delivery of the services was also considered. In other words, the manner in which the employees handled my needs and their responsiveness. Personal I expect that the service providers should find not only the raised inquiries but also my feelings. From the investigation and analysis, I realized that some companies provided terrible services with minimal or zero satisfaction by not prioritizing the customer’s need. On the other hand, there were those that exceeded my expectation through the premium services that they offered. The acquired data was summarized on a weekly basis and then synthesized through the use of coding to identify the fundamental concepts regarding satisfaction, service quality, and consumer’s loyalty. It is through this systematic analysis that conclusions for the study were drawn that offering quality services not only help in building loyalty but is also useful in enhancing the brand’s image and building a positive perception from the customers. Performance of any given organization is determined by the model that it relies on its consumers (Gera et al., 2017). Customers represent one of the most vital aspects of conducting successful businesses.

Findings and Techniques

Quality servicing to the consumers results in the increase of customer’s loyalty by creating a sense of satisfaction. In the contemporariness of the society today, it is somewhat evident that consumers are driven more quality of both the products and the service offered more than the set prices (Kiran & Diljit, 2017). It is evident that affordability plays a role but if poor services are provided the customers automatically acquire a negative perception regarding the company and the brand which leads to poor performance. Customer relation represents one of the essential tools that is being utilized by the modern businesses to retain the existing customers while attracting new ones. The significance of desirable service encounter cannot be argued as it results in loyalty and also creates a positive brand image (Kiran & Diljit, 2017). However, if the employees demonstrate somewhat unethical behaviors towards the employees, this, therefore, means that customer’s loyalty will reduce to the highest level without a doubt. A practical service experience leads to situating the company competitively in the market. It means that the servicing companies must understand the ever-changing needs of the consumers concerning quality so that the aspect of loyalty can be maximized.

From my assessment, there are several notable causes of the performance issues that I encountered in service. To begin with, some employees are not adequately trained or the lack the necessary skills that are needed to handle customers. Consumers are delicate, and they deserve to be treated as such. When the employees lack the skills required, they opt to act based on their personal feelings rather than adhering to professionalism (Zhuang & Babin, 2015). It is not that the consumers are right at all the time, but the employees must convey any information in accordance. The notion reminds me of the negative and dissatisfactory encounter that I had with East Coast Dynamics. I called the company to reserve some tickets for my friends and I, for a party that they were holding. We were assured of a reservation and constant communication to inform us of the proceeding and where we were to get the tickets from. However, it was on the eve of the party that they sent an email stating that the reservation had not gone through for some reasons that were never given. We later learned from our friend that it was a known trend that the tickets would be sold to the highest bidder (Kiran & Diljit, 2017). The experience was a bad one. It demonstrated the lack of skills among the employees as they should have informed us earlier and also provided justifiable reasons for the disappointment.

On the other hand, some companies lack a traditional culture that emphasizes customer satisfaction and quality measures. I got a somewhat appealing experience after visiting Tesco retailing supermarket some weeks back. I usually shop at the supermarket based on the services that I have acquired over the years. On that fateful day, I had forgotten my credit card, but the sales manager was so accommodating that on top of understanding my situation he asked for my details and agreed for the payments to be made later without any hesitation. All that was needed is communication to ensure that I made the amount. The quality services that are offered by the company is the rationale behind its success. The company has dominated the retailing market in the UK and globally because it has created a positive brand image. For the company quality, affordability and customer experience are its central values that it tries to guard over the years. Rather than focusing on competition the company has earned a competitive edge by ensuring that it tops in the provision of quality services. It is somewhat transparent that when a company has a steady culture that asserts on such needs, then it becomes slightly more natural for it to succeed in the market (Zhuang & Babin, 2015). The loyalty of the customers is also enhanced since from my personal experience I cannot miss acquiring the services from the company for any reason.

Figure 1: The association between Quality, Satisfaction and Loyalty

 

 

 

 

 

 

 

 

It is also worth noting that most of the companies that offer the most indigent services are those that are focused on profit maximization rather than value creation. In that due to the increased competition in the servicing industry, it is somewhat evident that the involved companies have opted to guard their revenue generation by enhancing the means to acquire profit. The companies, therefore, fail to recognize and acknowledge the needs of their consumers in general. The weak services, therefore, work to ensure that the companies are strategically located by an associate with the most mediocre performance regarding brand image and perception. In other words, this means that even though the companies have succeeded in the generation of maximum revenue, they have eventually failed to secure their future (Kiran & Diljit, 2017). For sustainability in the market to be achieved the companies must commit to the provision of satisfying services to the customers.

Desirable service encounter is an important sign of success for any servicing company. In that such feelings leads to increased loyalty from the consumers and attracts a wide range of new customers. Companies are highly influenced by the competitive environment to become customer focused. The retailing sector has acquired stability and success based on positive customer interactions (Kotler, Kartajaya, & Setiawan, 2010). It has pressured the services providers to comprehend fully the significance of optimistic service encounter as the most effective customer retaining instrument. The stiff competition in the industry had additionally attracted more concentration on the encounters of the customers as it leads to quality services which in turn leads to the highest satisfaction and the ability to retain the existing customers while attracting new ones. This is best proven by the experience that I acquired from Henry’s Esso after I took the car there for some repairs. The service provide was very warm in addition to the fact that they kept the promise of asserting quality. The service that I acquired was exceptional given that the company is very oriented on delivering the most pleasing services. The other thing that played part in developing the positive perception was the fact that communication was not only constant but effective. The employer explained everything including all the issues that the car had and also gave some tips that would be essential in maintaining the car in the best condition (Zhuang & Babin, 2015). The encounter clearly shows that the company is not oriented on the increasing of profit but to offer the best services. In addition, based on the accommodating behaviours of the employee it is evident that company has a strong culture that is focused on fulfilling the needs of the customers.

Service encounter can best be described as the moment in which the customers interact openly with the service providers and the offered services (Kotler, Kartajaya, & Setiawan, 2010). On the other hand, service encounter is the reality of the provided services. It means that the employees either feel that the facilities are inadequate or that they are satisfactory based on their anticipations. The level of the offered services determines both satisfaction and quality. Service encounters is also a form of social interaction that results in customers making a judgment of the variety of the provided services. The decision is mainly based on personal interactions among the consumers with the services. In other words, the service experience is a crucial determinant of the consumer’s response to a given function (Zhuang & Babin, 2015). It is unarguable that one or countable services experience results in dissatisfaction or approval. The organizations that understand the needs of the customers and the importance of acquiring differentiated and quality experiences provide the most satisfactory services that seek to guard their customers and their market.

Service quality can be linked to some aspects which are either touchable or feeling based. In that service experience is something that can only be felt based on whether the expectations have been met. If the customer’s perception is undesirable, this, therefore, means that the services failed to satisfy their needs. In the servicing sector, it is without a doubt that customer satisfaction is the primary determinant of the company’s performance (Demirci-Orel & Kara, 2015). By offering services that are full of quality value, this will automatically create satisfaction on the involved employees and lead to loyalty. Loyalty means that the customers are always prepared and willing to acquire the services from the company over and over without hesitation. This is not driven by cost but the feeling that the services create. Despite the fact that service quality and loyalty share a personal relationship, they are vital in determining the options that the consumers are bound to take. In that, the consumers will ultimately choose to end or continuing the relationship. If the customer wants to remain, it implies that the service created a form of value which is the thing that leads to retention as well as long-run profit maximization. The quality of the services is the impression that has been generated by the consumers (Demirci-Orel & Kara, 2015). Quality services are additionally enhanced by the responses of the workers towards the consumer. In that, if the worker appears to be arrogant, this means that the service is not a satisfactory one.

Based on the illustration, the services that I acquired after ordering food online from McDonald's was poor. The service was dissatisfying because even though I have been buying from the company, I realized that the employee fails to adhere to the value of faster delivery and quality. The food was delivered hours after I had made the order and even in that instance the quality was below my expectations (Kotler, Kartajaya, & Setiawan, 2010). Despite the fact that it was late my needs and preferences were ignored, and the food was unusually cold. I raised the feeling, but the employee did not seem to care and only made the assertion that they do not take any foods return. The quality aspect of the delivery was therefore ignored. The employee appeared to be lacking the necessary skills that were required to deal with customers as the response was an arrogant one given that my preferences had not be met. Also, the encounter best illustrates that the company only asserts on the generation of more monetary value rather than ensuring that the needs of the customers are met. The experience created unappealing impression regarding the brand which makes it hard for me to inquire about the services in the future. In other words with poor services, the ability to retain customers or attract a new segment is hard.

Extraordinary quality services is a preventative tool for the companies to thoroughly beat the current competition by increasing satisfaction (Kotler, Kartajaya, & Setiawan, 2010). Consumer satisfaction is directly related to the conduct of the employee and the impression generated. To create a positive brand, the quality of services should be at the top. But this does not necessarily imply that the cost has to be premium for such services to be provided but in general consumers deserves to acquire better treatment to share their perceptions (Demirci-Orel & Kara, 2015). In other words, high excellence services can be utilized as a significant tool for manipulating the thinking of the employees. It is widely recognized that companies can attain the highest customer satisfaction in instances that the needed skills are instilled in the employees about handing the consumers.  Therefore it is apparent that there is an authentic relationship amid quality, satisfaction and consumers loyalty. The finding shows that the satisfaction acquired from services is reliant on the current perspectives in the company and among employees regarding servicing quality.

Customer satisfaction represents an essential aspect of marketing whose consideration is vital to the success of the company. In the competitive economic world, today in the UK and globally the satisfaction of the customers is essential (Kotler, Kartajaya, & Setiawan, 2010). The perception of those being served plays a vital role in happiness. In most cases, achievement is measured by the market and the general ability to retain the customers. In this, there is a need to correct the problem for the companies that offer poor services that fail to achieve customer satisfaction. In that from such encounters only pushes the consumers a way to search for better services which means that the financial performance of the company is affected. Also, its reputation is destroyed since the consumers begin to develop a negative perception regarding the brand. In this context, it is highly beneficial to correct the situation. By offering quality services, the companies will ultimately benefit from loyalty due to enhanced satisfaction (Demirci-Orel & Kara, 2015). Through this, a positive brand can be build which means that the ability for the company to maximize its earning will be improved. The other benefit is that the company will strategically and competitively position itself in the market overall its competitors which is an essential aspect of conducting business. However, if the problem is not corrected the companies will not only be suffering from low productivity but also reduced earning and the loss of loyalty and cut earning. The company will not be able to secure its future competitive position since sustainability will not be possible. The market will also reduce giving room for the competitors to outdo the companies.

Zone of Tolerance can best be attributed to the sorts of perceptions that the customers acquire. In that, there is a level that is expected and the one that is accepted (Saxena, 2009). Thus if the services go below the range, this means that the customers will not be satisfied and the service is linked to poor quality. In some instances, the customers have an extensive tolerance range, and even though they are subjected to poor services, it is likely that they come back for the services. However, the aspect is not one to be celebrated since the tolerance will wear out at some point. For such customers, their concern regarding satisfaction of experience is low which can automatically lead to happiness even with the absence of quality (Saxena, 2009). For the most prolonged period, I tried to be patient with the poor services that I would acquire at Burger King, but my last visit destroyed all the tolerance that I ever had in general. It means that even though I was loyal the bond was broken by poor services. Therefore, to correct the performance, there is a need to adopt the most effective measure that enhances quality and focuses on the satisfaction of the consumers.

Maintaining positive customer relations is the only alternative that can help in solving the problem. The employees must understand the needs of the consumers and the ways of handling them. The companies should, therefore, invest in offering training to their workers on customer’s relations and how to evolve to a customer-centric organization. The changing costs moderate since the employees need a practice that is not so detailed to ensure that they acquire the necessary capabilities and knowledge (Demirci-Orel & Kara, 2015). The incurred cost is less when equated to the losses that the companies will get if the issue is not resolved. For these decisions to be made the managers should understand the company’s strengths and weaknesses about the provision of essential services in general. In that, the source of dissatisfaction should be established so that effective measures can be implemented to handle the situation. Acquiring direct information from the customers can be a useful tool in managing the issue. Also changing the company’s culture has proved to be effective in different industries. A company’s culture not only shapes the employee's behaviours but also acts as a guide during operations. Through this, the employees will seek to prioritize the assertions of the company mainly by focusing on the needs of the customers this will not only lead to increased satisfaction but also service quality.

3 P’s are part of the contemporary marketing process. People represent an excessively essential section of any given corporation (Wirtz, 2017). The company must own the right set of individuals so that it can grow eventually. In other words, the presence of excellent services persons is needed to support the goals of the company and its general anticipations such as maintaining the highest rate of satisfaction and fulfilling the needs of every operation. Having staffs that have the necessary knowledge is essential to growing the company in general. The process, on the other hand, refers to the strategic procedures and rules that have already been implemented regarding the firm’s products and services (Wirtz, 2017). In other words, having the necessary processes is fundamental to the marketing success. The Public needs to be informed of not only what the company provides but also the level of quality. On the other hand, physical evidence is the general branding of the products and services. It can be understood as the manner in which the services are provided. The appearance of the items is essential in generating satisfaction (Wirtz, 2017). In that, if a company has a real physical brand them, the customers get attracted to the goods due to the need to try them. Physical packaging should fully satisfy the desires and anticipations of the market. This means for instance for the food companies such as McDonald's they can improve their servicing to ensure that purchase is encouraged. Minimal adjustments on packaging are vital in enhancing the appearance of products which in turn improves the general impression of the goods. Employees are the primary determinant of the physical evidence appearance based on the manner in which they present themselves to the customers.

Service quality, customer satisfaction, and loyalty are directly linked. In other words, it is not possible to acquire loyalty in the instances that the offered services are not satisfactory to the needs of the consumers. There is the need to satisfy the customers via providing premium services for retention to be achieved. Based on the provision, it is evident that the loyalty of the customers is mainly dependent on the achieved satisfaction (Demirci-Orel & Kara, 2015). For instance based on the quality of services that were provided by Henry’s Esso I will retain my loyalty to the company because I need such reliable services. The service did not only meet my anticipations, but the employee appeared to be well trained to deal with the customers. Through the service, I was able to receive a somewhat appealing feeling.

Conclusion

In summing up, the above analysis was developed following a detailed examination of the quality, satisfaction and customer loyalty model. Given that quality is an essential force that influences the satisfaction of the consumers, in general, it is necessary for the companies involved in the servicing industry to pay attention to its provision. The comfort of the employees is not only outstanding because it leads to business stability but mainly because it enhances the competitive positioning of the company. From the experience that I got from the five weeks assessment, it is clear that some companies offer terrible service experience to their consumers mainly because they are focused on the generation of more revenue rather than the production of value for the consumers. In the modern business setting, quality has emerged to be an essential aspect of the business. In other words, consumers are more interested in the form of services that they acquire rather than the cost of the brand. To create the positive brand in the market, that is full of competition, the needs of all the customers must be accounted for directly.

Recommendations

Given that some of the companies in the servicing sector still provide services that are particularly poor. The companies should adopt more customer-centric approaches that seek to not only create superior satisfaction but also offer quality services. The primary objective is to ensure that the existing customers are retained entirely while trying to attract new ones. The sustainability of business is mainly dependent on the ability to meet the needs of the customers. Also, the employees should be enrolled in training to gain the necessary skills that seek to meet the needs of the customers. The employee’s behaviours will be shaped to enhance the experiences of the employees. Also, the companies should adjust their respective cultures to fit these needs of the employees and the consumers. The culture characters the staffs to providing services that are consumer-cantered. In turn, the perception of the consumers will be changed, satisfaction increased and retention enhanced.

 

 

ReferencesTop of FormBottom of Form

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Gera, R., Mittal, S., Batra, D. K., & Prasad, B. (2017). Evaluating the Effects of Service Quality, Customer Satisfaction, and Service Value on Behavioral Intentions with Life Insurance Customers in India. International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), 8(3), 1-20.

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