Delivery in day(s): 4
MKT335 Services Marketing Assignment Solution
Service marketing falls under the marketing strategies and it is broad category. Service marketing is the most common approach which is mostly used by all the organisations (Subashini and Kavitha, 2011). Service can be provided through two methods (Alston, 2007). These are business to customer (B2C) and Business to business (B2B). Present research based on the personal industry experience of service failure in recent time. Hence, the researcher has chosen recent service failure of purchasing a cable set-top-box. The researcher has bought a set-top box of cable but after a few days it was not working well but the service provider fails to provide required service. The entire scenario will be analysed along with service marketing theories and practices.
Clear description of the service delivery failure incident:
The researcher has purchased a set-top-box from local cable operators. The product was working properly but after few days it had been showing a message at the centre of the TV. The research thought it was disturbance of TV but after checking properly it was found that the message was showing through Set-top-box. Hence, the researcher called the technician of cable operators and they took away the product by saying that it would be returned within next 3 hours. After three hours when it was still not returned the researcher asked the service provider (cable operator) to know the situation of the product but got to know that it would take more time. Then the researcher requested to provide alternative product which could help to see the programme of the TV. Service provider assured that they would provide alternative product within next one hour. The researcher waited entire day but got no alternative product and service provider did not picked up call.
This is entire service failure incident which the researcher has experienced. The service failure is really major issue for the customer and this type of incidents creates a big impact upon the company service capability (Demydov et al. 2015). It was the responsibility of the service provider to look after the customer’s satisfaction and their needs carefully.
Root cause analysis in theoretical perspective:
There are four types of service delivery failure. These are service delivery system failure, customer requests and needs, unsolicited employee actions, and problematic customers (Conoley and Gutkin, 2017). Customers who have encountered service failure may dissatisfy with organisational outcomes.
1.Company service delivery system failure denotes the service is unreasonably slow or unavailability of service.
2. Customer needs and requests refer to the preferences of the customer or customers special needs
3. Unsolicited employee action denotes unusual action or cultural norms
4. Problematic customers refers breaking the rules of the company or physical or verbal abuse
Root Cause analysis:
According to the theory it has been identified that there are three types of service failure attribution (Sengupta et al. 2015). These are Lucas, Stability and Controllability.
1. Lucas:This denotes to the people who are responsible for the service failure. It can be service provider, customer or external force. This source has the main responsibility for the failure of the service. In this case service provider has the main responsibility to provide the best service to its customers. They might have neglected the researcher’s request and need for on time service and this helped to occur the service failure incident. Hence, the operator had to provide the proposed service to the researcher on time. The service provider needs to provide the customer (researcher) an alternative product which can be helpful for both of them.
2. Stability:It refers to the probability of the incident again (Tummers et al. 2015). If the incident is one time then it is Unstable and when the chances and the cause of failure likely to be happen again then it is called Stable. Undoubtedly it is true that this type of incident is the big threat for the organisation. The cable service operator needs to be very careful about the service which they are providing to the customers. In this case, the cable service provider should manage the incident and prefers unstability of such incidents.
3. Controllability:This refers to the responsible party’s control over the cause of the failure. In present case the cable operator does not has the control over cause of the failure. The description of the present case showcased that the service provider was not aware about their faults.
Through the root-cause analysis it has been identified that the cable operator has not any control over the provided service and hence they are not aware about the value about the customer satisfaction and dissatisfaction.
Service recovery programme:
The service recovery strategy helps to restore the satisfaction of the customers and customer retention. Successful service recovery business strategy can help to lead satisfaction of the customers. There are several recovery strategies. These are compensatory strategies, unresponsive strategies, restoration strategies, apologetic strategies and reimbursement strategies.
4. Compensatory strategies:Compensation is the common strategy which recovers a service failure and it can be viewed as restoring equity (Bitner et al. 1994). It can be coupons, refunds and discounts and these are always necessary for the recovery strategy. There are some debates about the compensation strategy as the equity theory observes customers who are over-rewarded can be less satisfied than those who receive equitable rewards and they feel guilty. In this case the service provider (cable operator) can provide compensation to customer (the researcher) through new set-top-box.
5. Unresponsive strategies:Unresponsive strategies denote the service provider’s careless behaviour to the customers. As per the present case, the service provider can overlook the requirement of the researcher’s need but this will not be helpful for the service recovery strategy.
6. Restoration strategies:Restoration strategy is helpful for the service provider (Parasuraman et al.1985). In present case, the researcher should get the proper response from the cable operator. It is very necessary for the service failure to restore the issue and achieve customer satisfaction.
7. Apologetic strategies:Apologetic strategy help the firm to recover the service failure and it is the most suitable strategy. For present case, the service should be apologised for their provided service to the customer (the researcher).
8. Reimbursement strategies:Reimbursement strategy is also helpful for the recovery of the service delivery failure. It can be useful for the present case also.
Service delivery failure is most sensitive issue for the organisation and it can decrease the reputation of the organisation. For the betterment of the service deliver it is necessary the organisation should understand the need of the customers. They should provide proper service according to the customer’s needs and satisfaction. Studies show that error free transaction is the most necessary part of the organisation for their delivery of services. Service delivery directly linked to the customers’ satisfaction and choices. Customers always go for the desired product and services and when they found such incidents or issues then their level of satisfaction goes down and they think twice before any purchase.
Thus it is necessary for the organisation to provide compensation or apologies to the customers who have encountered this type of service failure. They should arrange necessary steps to recover the situation. Apart from that polite behaviour and training of the staffs are also necessary for the betterment of service. Employees or staffs are most integral part of the organisation and they are the first part of the organisation who deals with the customers. Hence, it is necessary to train them properly so that they show polite behaviour to the customers. Apart from that Word of mouth is also necessary for the service delivery. Word of mouth helps to provide good behaviour and it will develop the increase the customer base. All the above recommendation is necessary for the service provider of present case.
Throughout the analysis it has been identified that service delivery failure can affect not only customers but also the organisation also. The service delivery failure is the most sensible issue which can lead the organisation to decrease its fame and trust. Hence, trust is the most important part for the service delivery of the organisation. All the above analysis and recommendation helps to show the better approaches for the better service delivery.
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