Service Quality and Customer Experience Management. Experience...Service Quality and Customer Experience Management. Case study in Restaurant ... Virgil Popa 6. 2. Service Quality

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  • SCM 4 ECR

    Service Quality and Customer

    Experience Management.

    Case study in Restaurant Industry

    Andreea Georgiana Tnasca

    Virgil Popa

    Valahia University of Trgovite

    SCM 4 ECR Conference 2013 Andreea Tnasca, Virgil Popa 1

  • Agenda

    1. Services

    2. Service quality

    3. Customer experience

    4. Restaurant Industry Study Case

    2

  • 1. Services

    Andreea Tnasca, Virgil Popa 3

  • Services

    After the managers attention was drawn to laborproductivity, costs, quality, this decade will be of service.

    It was noted that the products are purchased forservice.

    There is a strong demand for services related to theevolution of society in general and higher standards ofliving, especially.

    Andreea Tnasca, Virgil Popa 4

  • Services

    Services are activities, benefits or utilities that areoffered on the market or provided in conjunction with thesale of a good.

    Characteristics of services - intangibility,heterogeneity and inseparability material.

    General feature of services is that their provisioncoincide in time and space with their consumption.

    Andreea Tnasca, Virgil Popa 5

  • Services

    It is critical to make the distinction betweenservices and service.

    Competitors commonly offer the same services anddifferent service.

    Costumers have to expand more than money to usea service, for example, time and psychic cost.

    These costumers may be quite willing to assumemore monetary cost to reduce nonmonetary cost and toobtain stronger service.

    Andreea Tnasca, Virgil Popa 6

  • 2. Service Quality

    Andreea Tnasca, Virgil Popa 7

  • Service Quality

    Service quality is a measure of how well the servicelevel delivered matches customer expectations.

    Delivering quality service means conforming tocustomer expectations on a consistent basis.

    The difference between expectations and servicestandards / performance is the primary indicator ofoverall service quality.

    Andreea Tnasca, Virgil Popa 8

  • Service Quality

    Two types of SQ:

    1. Technical quality - what the customer is actuallyreceiving from the service (outcome);

    2. Functional quality - the manner in which the service isdelivered (process).

    Andreea Tnasca, Virgil Popa 9

  • Service Quality

    Determinants of service quality:

    1. Reliability, consistency of performance

    2. Responsiveness, willingness or readiness

    3. Competence, required skill and knowledge

    4. Access, approachability and ease of contact

    5. Courtesy, politeness, respect and friendliness

    6. Communication, keeping customers informed

    7. Credibility, trustworthiness, believability, honesty

    8. Security, freedom from danger, risk, or doubt

    9. Understanding/knowing, understand customers need

    10. Tangible, physical evidence of the service

    Andreea Tnasca, Virgil Popa 10

  • Service Quality Measurement

    1. ES>PS, perceived quality is less than satisfactory and

    will tend toward totally unacceptable quality, with

    increased discrepancy between ES and PS.

    2. ES=PS, perceived quality is a satisfactory.

    3. ES

  • 3. Customer Experience

    Andreea Tnasca, Virgil Popa 12

  • Customer Experience

    The customer experience originates from a set ofinteractions between a customer and a product, acompany, or part of its organization, which provoke areaction.

    This experience is strictly personal and implies thecustomers involvement at different levels (rational,emotional, sensorial, physical, and spiritual).

    A second and related definition is that CustomerExperience is the internal and subjective responsecustomers have to any direct or indirect contact with acompany.

    Andreea Tnasca, Virgil Popa 13

  • Andreea Tnasca, Virgil Popa

    What makes a great customer experience?

    sdsds

    EXPERIENCE Peer to Peer

    Atmosphere

    Relationship

    Social impact

    Emotional

    SERVICE

    PRODUCT

    Value for time

    Value for money

    Accesibility

    Application

    of knowledge

    Safety

    Individual

    Communication

    Reliability

    Variety/ Choice

    Caring Process

    Caring Atitude

    Supplier

    Condition

    Outcomes

    14

  • Understanding customer experience

    Andreea Tnasca, Virgil Popa

    P.C. Verhoef et.al /Journal of Retailing 85 (1,2009) 31 -41

    Conceptual Model of Customer Expereience

    15

  • Customer Experience

    The sense experience includes aesthetics andsensory qualities: sense, feel, think, act, and relate.

    The feel experience includes moods and emotions.The think experience includes convergent/

    analytical and divergent/ imaginative thinking.

    The act experience refers to motor actions andbehavioral experience.

    The relate experience refers to social experience,such as relating to a reference group.

    Andreea Tnasca, Virgil Popa 16

  • Customer Experience

    The five experience include three dimensions, thatis, Sensory Experience, Emotional Experience, and SocialExperience.

    Sensory Experience refers to the aesthetics andsensory perceptions about the shopping environment,atmosphere, products and service.

    Emotional Experience includes the moods andemotions generating during the shopping trip. Social

    Experience emphasizes the relationships withothers and society.

    Andreea Tnasca, Virgil Popa 17

  • The dimesions of experience

    Before a company can charge admission, it must design anexperience that customers judge to be worth the price. Excellentdesign, marketing, and delivery will be every bit as crucial forexperiences as they are for goods and services.

    Ingenuity and innovation will always precede growth inrevenue. Yet experiences, like goods and services, have their owndistinct qualities and characteristics and present their own designchallenges.

    One way to think about experiences is across two dimensions.The first dimension corresponds to customer participation.

    Andreea Tnasca, Virgil Popa 18

  • The dimesions of experience

    The second dimension of experience describesthe connection, or environmental relationship, that unitescustomers with the event or performance.

    Andreea Tnasca, Virgil Popa 19

  • Entertainment in Retailing

    An entertainment shopping mall does not stop merelyproviding products, services, or entertainment: rather it providesexperiences to its consumers through the products, facilities, space,and services provided.

    Andreea Tnasca, Virgil Popa 20

  • Andreea Tnasca, Virgil Popa

    Factors and attributes of entertaining shopping experiences

    Restaurant

    Product

    21

  • Andreea Tnasca, Virgil Popa

    Restaurant

    Product

    Factors and attributes of non-entertaining shopping experiences

    22

  • Andreea Tnasca, Virgil Popa 23

    Delivering a unique shopping experience enables retailers to

    achieve differentiated life-time customer relationships.

    Integrated Prescriptive Precision Relevant Continuous Deliver a smarter

    information insight marketing experience dialogue shopping experience

    Achieve differentiated lifetime

    customer relationships by consistently

    delivering on the brand promise

    Provide timely, tailored and seamless shopping

    experiences that can span multiple interactions

    within and across touch points

    Optimize marketing by channel and medium to deliver

    targeted consumer messages and offers

    Understand consumer and customer preferences, interaction history

    and motivations to determine the next best action

    Capture and consolidate product, inventory, order, market, and interaction data

    to provide a trusted view of consumer-relevant information

    maturity

    v

    alue

  • Anatomy of a Best-in-ClassShopper Solution - Principles

    1. Make the solution obvious.

    Great solutions paint a bold, vivid picture, capturing shoppersattention and helping them to visualize the value.

    Andreea Tnasca, Virgil Popa24

  • Anatomy of a Best-in-ClassShopper Solution - Principles

    2. Less is often more.

    Simple combinations of known brands or common groupingsof widely meals can serve as the basis for clever shopper solutions thatboth engage and motivate shoppers. Be wary of overly complex orheavily loaded displays, wich often do more to confuse shoppers thanmotivate them.

    Andreea Tnasca, Virgil Popa 25

  • Anatomy of a Best-in-ClassShopper Solution - Principles

    3. What is the new news.

    shoppers often report that they buy the same brands anditems because there is nothing new to consider. This surprises manybrand manufacturers, especially those with a history of new productintroductions and line extensions. Realize that shoppers may needmore overt reminders that something is truly new.

    Andreea