PROJECT 1 Service Encounters

Submitted To: Sir Kashir Submitted By: Sarah Cheema Muhammad Uzair Aizaz MBA 3

Table of Contents
Introduction .................................................................................................................................................. 1 Most Dissatisfied Service Encounter:............................................................................................................ 2 Most Satisfied Service Encounter: ................................................................................................................ 5 Bibliography .................................................................................................................................................. 8

Introduction
A service encounter is a phase of time at some stage in which customer interacts directly with a service. It is more commonly known as The Moment of Truth" It involves 3Ps of the Marketing Mix; People, Physical Evidence and Process. (Shostack, 1985) In this project we evaluated 10 Service providing businesses from different industries. A service providing business is one where the perceived value of the offering to the buyer is judged by not the product by rather the service that he/she undergoes. The services we encountered had different levels of intangibility. For example, our service encounter at Arena Cinema included physical evidence such as the screen, popcorn, drinks, seating area and tickets. However, with SUN TV service encounter there was no tangible aspect since it was over the telephone. The services we encountered also differentiated in the separabilty element between us, the buyers and them, the sellers or service provider. We visited Royale Hair Salon for a haircut, and it was essential for me as a buyer to be present and the hairdresser as a seller to also be present. However, when using self service such as buying clothes off the internet (STYLISTA), I did not have to be present at the same time as the seller. I could select the clothes, make the changes in size and design and place the order. I also paid online without the need of the sellers presence. The services were perishabilty element came into place was when we visited 3rd Base Caf. We had to order the sheesha and food right there to consume it. We cannot pre order or take the sheesha with us because it would not work unless within the cafe. The service cannot be stored or kept for future use hence no stock piling. (Business Dictionary, 2012) Our best service encounter was that of Arena Cinema in Bahria Town Phase 5. The worst service encounter was that of STYLISTA, an online shopping page on Facebook. In the rest of the paper we will discuss how both these services came to take their place as the best and worst and whether we would repeat our purchase or service encounter. 1

Most Dissatisfied Service Encounter:

STYLISTA is an online store functioning from the Social Media platform of Facebook. I was in dire need of a few imported shoes and I had asked a couple of friends where I could purchase these. I was told that Facebook had a couple of independent pages run by people from within the city selling imported merchandise. I was eager to follow up STYLISTA as I had heard much about it from different people. People generally talk about great services if they have gone through the service encounter themselves. It is referred to as C to C Marketing where the customer spreads the word to other Customers. (Sernovitz, 2006) I logged onto my Facebook page and searched for STYLISTA. The page had over 18,557 likes. This clearly meant it had a huge mass following it. The online webpage seemed quiet credible to me at first glance. But as I stepped into the encounter, I realized it was not quiet what I wanted. I had to navigate through very many photo albums to see what was actually available and what wasnt. Since it was not an independent website, I had to inbox the owner for price and size details. This meant a constant change of interaction with the seller. I had to wait almost a day for her reply. It would have made my service experience better if the seller had listed the prices and sizes right next to the item picture (in the description box). The element of intangibility was quiet evident here, I had to base my analysis on whether to buy item or not based on the fact that I cannot touch, see or smell the products before choosing it. My only assessment was based on other peoples past experience, word of mouth and the way the page was created and decorated. I also browsed through a few people comments and feedback to get the jest of the quality of items. I was quite worried about the perashibilty of the order as well. As the page mentioned, they would deliver item within 10 days. I presumed it meant 10 calendar days as it was not mentioned anywhere that it was 10 working days. However I received the items eventually after 24 calendar days. Overstating the delivery period was my main concern. I believe full disclosure is essential to run a good service. Full disclosure includes the price, the location, the information conveyed and the timings for the agreement. (Hemenway, 2009) 2

The wait for the delivery was very disturbing and I had to contact the seller repeatedly to check whether the items were delivered or not. After placing the order, I got no confirmation that the seller had received my order or not. I had to wait a couple of days before I contacted the seller myself to get details on the order placed. A thank you message or perhaps a pop up saying your order has been noted would have eased my anticipation. I also had to pay through western union or easypaisa as there was no option on the page where I could pay directly through my bank account (online transfer). This was a huge issue for me as I had to physically visit western Union to make the transaction on the sellers name. Having an online solution to this would have made my process of purchasing the items quite easy. I also faced the trouble in tracking my package, once it was delivered by the seller. I did not receive the code for delivery through which I could check the status of the package. I was simply told it would take 10days. I waited for 24 days before the package actually landed at my doorstep. When it came to variability, no two services will be completely identical (Business Dictionary, 2012), I felt that my experience was far worse than what others felt. I do believe some people might have enjoyed the service but in my experience, everything went wrong! The Servicescape refers to the surrounding, the ambiance, and the feel of where the service is being provided including the smells, the noises, the furniture or even the lighting. (Christopher D Hopkins, 2009) According to the Servuction Model, which analysiss and deals with the perception of the service by a consumer, I feel that STYLISTA lacked in creating a perception of a good service. Servuction Model includes 4 elements: The contact with the personnel or staff providing the service, Servicescape, other consumers and the organizational processes. (E. Langeard, 1981). SYLISTA staff was helpful but I still believe since its an online store, I would only need their help when something goes very wrong. I had to get in touch with the staff way too much since I had to check the prices, the size, whether they received the order or not and the delivery status.

STYLISTA being an online shopping experience meant it had to follow the e-Servicescape. This means the layout, the components of e-shopping such as e-cart and online ordering need to be intact. Howe ever STYLISTA lacked this in every sense. The Information such as price, size and delivery timings were not mentioned or incorrectly given. The navigation was also far below what is expected. I could not navigate well on the page as I wasnt sure what items were in stock and what wasnt. I had to check with the seller; by sending them a message on Facebook! This wasted a lot of my time and made the process very annoying. The virtual e-Servicescape of STYLISTA was not interesting or easy. It involved opening a lot of photo albums and navigating through over 100 pictures to select the one I wanted. There were no categories made and I had no option of search so I could easily access one item e.g. shoes or belts. The items were all in a mish- mash.

Dramaturgical Approach for STYLISTA was nowhere to be seen. This Approach looks at the theatrical appearance of a service- the WOW factor. STYLISTA could have obtained this by adding a better e-service experience. A thank you pop up after the order is placed or an email instantly sent to the buyers email with all the details of the purchase and what they can order next time. Service Blueprinting gives service providers a visual to express their intentions and goals while linking them to customers perceptions and needs as the service activity progresses. (Bitner, 2007) STYLISTA wasnt able to actively innovated its Blue print since it used the Social Media Facebook.
All in all, I was highly disappointed with the service encounter. I do believe STYLISTA needs to improve on its Servuction Model especially its Servicescape and Process of online shopping.

Most Satisfied Service Encounter:

After a long and a hectic week of work, I decided to plan an amusing activity which could help me freshen up for coming week. I called up my friends to find out the possible options for a hang out and surprisingly all of them had the same suggestion, which was to watch a movie. We decided to go to The Arena Cinema in Bahria Town. We checked the timing through internet and there was only one screen so only one movie timing which was at 3 PM. We all left our place 2 hours before the start of movie in order to make sure that we had ample travelling and settling down time on the venue. Keeping the concept of first impression is the last impression in mind, they had designed their entrance in the same manner with Rich Purple Velvet Walls which gave a feeling of entering into Buckingham palace. The Servicescape for Arena turned out to be phenomenal. The smell of popcorn filled the entire hall, the noise of fizzy drink dispensers felt warm and soothing. The purchasing of tickets was simple and quick. The staff was helpful and they had a blue print of the seating arrangement on the laptops in front of them. All the seats in blue were taken and green were empty. We choose our seats to our preference and the staff gave us our tickets. As a suggestion the staff even offered us a separate VIP Lounge for a negotiated price but we didnt opt for it keeping in mind that we could use it later, the staff offered us a coupon for using the VIP Lounge the next time we came. I was impressed with the staffs interaction with us- they were smiling and helpful and said their ThankYous and Good-Days to us. We felt the same experience with the staff at the food stalls. Since we were 10 people, we all had different tastes and different orders (which were hectic for us to explain to the food stall staff!) but they got it in a flash and even gave us a discount on the total amount as we were a big group of people! The ambiance was spectacular. Instead of typical waiting area, The Arena had huge sofas were we could sit and wait. All decked out in the royal purple and maroon theme. Overhead was also a chandelier to our surprise! Who would have thought of a chandelier in a cinema! The washroom too was a big deal at the Arena. Being someone who doesnt like to use public washrooms, I was hesitant initially until I 5

stepped into their washrooms and my feelings took 180 degrees turn. They had beautiful tiles along with elegant sanitary fittings. The washroom even smelled clean and fresh! Huge mirrors in the washroom were ideal for girls to make sure that they looked the best. A seating area was also created so people could wait their turn in comfort! To top it all up, there was a woman who was working continuously to clean the washrooms as soon as someone used it. Entering the Cinema, the staff welcomed us again and asked us for the tickets so we that they could guide towards the hall. We were led to our seats by the staff, the sating was comfortable and the screen was huge. I felt super excited and I didnt even care if the movie sucked, the experience of Arena blew my mind already. After the movie we all set back to our homes feeling very relaxed and happy. The service encounter was the best I had since a very long time. The Servuction Model as described above includes the Servicescape, the personnel and staff, the organization process and the consumers. The Servicescape for Arena was great, I felt like I was in the movies! The smells, the noises, the ambience and the lighting were up to the mark. These were all the intangible aspects of the service The staff was helpful and gave their own ideas too. They offered us discounts and suggestions to make our experience worthwhile. I had heard a lot about the Arena and everyone said it was spectacular. This was positive word of mouth and it had built my perception about it even before I visited it. The organizations SOPs looked promising, starting from ensuring security at the entrance, issuing fast pace ticketing to avoid long queues which could result in wasting precious time, having a wide variety of choices at the food counter to cater to different needs of different customers, to the high maintenance every minute of the washrooms. It all showcased a strong process in place.

Dramaturgical Approach for the Arena was not seen in this service encounter but I was informed from experiences of others that usually when there is a big premier of a show e.g. THE DARK KNIGHT RISES in 2012, the whole place was decorated in the Dark Knight theme and the staff was dressed in costumes and deals were given on food and tickets.
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The Service Blue print of Arena was very well laid out. First you pass through security, select your seat, make the payment, choose your meal, pay for the food, you walk up to the hall, get your ticket stub and watch the movie. The process is simple and no frill! Its to the point and makes sense. The one thing Arena could do to improve its features and functions is that it should allow us to book our seats and make our payment online. This would make the service experience much better and more efficient. We could print the ticket, get it verified at the hall entrance and watch the movie with ease. Also student discounts would be good advantage to cater to the youth.
One thing that matters the most in any service business is the customer experience. Arena tapped into this very well.

Bibliography
Bitner, M. J. (2007). A Practical Technique for Service Innovation. Service Blueprinting Business Dictionary. (2012). Business Dictainary. Retrieved 2012, from http://www.businessdictionary.com/definition/perishability.html Business Dictionary. (2012). Variability. Retrieved 2012, from http://en.mimi.hu/marketingweb/variability.html Christopher D Hopkins, S. J. (2009). Journal of Internet Commerce. Designing the e-ServiceScape , 23-43. E. Langeard, J. B. (1981). Marketing of Services: New Insights from Consumers and Managers. Cambridge, MA: Marketing Sciences Institute. Hemenway, M. (2009). Principle of Full Disclosure. Sernovitz, A. (2006). Word of Mouth Marketing. Retrieved 2012, from www.wordofmouthbook.com. Shostack. (1985). Palgrave. Retrieved 2012, from www.palgrave.com/business/baron/lecturers/SM3.ppt