UOS - SERVICE QUALITY ANSWERS EXAMPLE (Mystery Shopper), Papers of Service Management

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TLH339 SERVICE QUALITY

SUBMISSION DATE: 25TH^ APRIL 2023

UNIVERISTY OF SUNDERLAND

Table of Contents

• 1.0 Introduction
• 2.0 Service encounter
• a) Definition of service encounter as a single and sequence
• b) Importance of service encounter
• 3.0 Mystery shopper framework
• a) Exterior service scape...............................................................................................................................
• b) Interior service design
• c) Drink and food quality
• d) Quality of service
• e) Promotions and Marketing
• f) Business operations
• g) Customer Behavior and response to Experience
• 4.0 Findings
• (a) Exterior service scape
• (b) Interior service design..............................................................................................................................
• (c) Coffee and snack quality........................................................................................................................
• (d) Service quality
• (e) Marketing and Promotions
• (f) Business operations
• (g) Customer behavior and experience response
• 5.0 Comparisons
• 6.0 Recommendations
• 7.0 Conclusion
• 8.0 References
• 9.0 Appendix
  • APPENDIX 1: (Schlesinger and Heskett, 1991) CYCLES OF FAILURE AND SUCCESS
  • APPENDIX 2: Heskett et al, 1994 SERVICE PROFIT CHAIN
  • APPENDIX 3: Zeithaml et al. (1990) SEQVUAL ANALYSIS MODEL
  • APPENDIX 4: COMPLETED MYSTERY SHOPPER FRAMEWORK
  • APPENDIX 5: PROVE OF MYSTERY SHOPPER COMPLETION

2.0 Service encounter a) Definition of service encounter as a single and sequence Ford et al. (2011) service encounter is the period of interaction between an organization and a guest. The interaction, in this case, can be through various approaches, for example face to face, direct or indirect, remote, electronic, and self-service. In service encounters, three dominant players shape the interaction, including the employees, who enact a firm’s policies, the service-providing organization, which outlines the nature of services rendered; and the customers, who are pursuing satisfying their various wants and needs. On this thought, Chandon et al. (1997) propose different service encounter dimensions on a basis on which the service encounter can be assessed. In this line, from the customer’s perception, the service providers perceived listening skills, competencies, and dedication are possibly used in assessing the received services. Subsequently, from an employee’s perception, Chandon et al. (1997), customer courtesy and efficiency concerning employee satisfaction and transaction completion are mainly used in evaluating the process. When analyzing service encounters, Czepiel et al. (1985) original work identified key characteristics of service encounters that can be integrated into distinguishing elements in service encounter analysis. The characteristics indicated in the research include the connection between individual events and the dynamic nature of human interactions. Various research is inclined toward discrete service encounters; however, rising scholar research has examined different service encounters; for instance, Verhoef et al. (2004) suggest that a service encounter is a sequence of events. Specifically, the authors tested the model on how events contribute to the long-run sequence of events evaluation. The research conclusion shows that peak performances are fundamental in generating satisfaction during the interaction. This, from a managerial perspective, means that it is crucial to manage the engagement's overall performance and needs to focus on several peak performance aspects. Subsequently, Hansen and Danaher (1999) argue that performance trend is a key aspect of service sequence other than peak performance. Based on the authors' reasoning, the positivity or negativity of performances are embedded in the sequence alongside the quality of final service performance. For example, in the hotel business, the management is keen not only on the average quality engagement of guests with the different staff in the check-in process but also on the unprecedented extras which translate to perceived performance peak from the customer’s perception.

b) Importance of service encounter There are stages in which customers consume a service outlined by Tsiotsou and Wirtz (2015), which include the pre-purchase, service encounter, and post-purchase stages, which form a model viable in examining customer behavior. When a customer desires to fulfill a need arising from information acquisition of service provided through word of mouth or experience evaluation, Zeithaml et al. (1990) state that it forms the first step in examining customer behavior (see Appendix 3). Customers acquire information in different ways apart from what is outlined, for instance, the visual appearance of the coffee shop and online reviews, which is critical in reducing potential risks in the second stage. The service provider in this stage needs to provide the customer with the assurance which will fuel their intention of coming back and hence mitigate the surging competitive business environment; for instance, Starbucks focuses on product quality and differentiation example, other than coffee, the company offers hot drinks, iced and hot teas, which assures that when customers visit the coffee merchandise, they can have other products other than coffee. Based on Tsiotsou and Wirtz (2015) trilogy, service encounters the second dimension, which entails physical product consumption, generating a relationship between the employees and customers. The interaction phase can translate to indirect effects on customers regarding service engagement, for example, crowding and queuing, where other customers can hinder others’ fulfillment of their needs. As a result, Coelho et al. ( 2011 ) point out that front-line employees lack of proper training related to managing the customers can lead to a lack of balance creation. However, scholarly arguments presented in Antikainen and Valkokari ( 2016 ) research argue that the management of an organization can re-design service delivery to ensure balance creation. For instance, rather than queuing, the organization can train employees to provide similar services by introducing drive-ins and home delivery enabled by self-service technologies. Nonetheless, the inaction of drive-ins and these technologies may limit employee-customer interaction, which many customers prefer. The lack of this interaction is argued by Owusuah ( 2012 ) as a perception of poor customer service which may lead to customer dissatisfaction, leading them to seek similar services from competitors. In line with the above thought, the significant lack of customer satisfaction shows a parallel weakness in strategic management, where customer dissatisfaction leads to their placement of service encounters below the zone of tolerance outlined by Parasuraman et al. (1991). Ultimately, this gives prevalence to the ‘cycle of failure’ (see Appendix 1), coined by Schlesinger and Heskett (1991), which depicts the association between poor organizational financial performance arising from customer dissatisfaction. As outlined in the cycle, a decrease in profits

negatively impact a customer’s intent to engage with the organization, hence seeking to acquire the planned services from its competitors. b) Interior service design This section deals with environmental dimensions within the service scape model coined by Bitner ( 199 2). Concerning interior service design, for instance, furniture arrangement tends to communicate visible and invisible boundaries; again, the shop's color and furniture correlate to stimulating emotions and mood. In line with this statement, Jonnauskaite et al. (2019) explain that the human brain associates warm colors like orange, yellow, and red with feelings like comfort, power, and passion. Again, cool colors like green and purple are correlated with creating a calming environment that mitigates anxiety feelings. The interior service design also entails lighting, and researchers believe that light intensity impacts task productivity; for instance, shops with more sunlight than artificial light correlate to increased productivity. This results from Kuller ( 1986 ) logic, where lighting is associated with psychological aspects like emotional and attention processing, surpassing a place's style. Lastly, the music nature played in the shop also significantly impacts concentration; for instance, the high music volume makes customers more uncomfortable and irritable. Therefore, service providers must create an environment with pleasant sounds, cool colors, and proper lighting. c) Drink and food quality The focus on the quality of food and drinks is a critical determining factor in direct consumer behavior and parallel satisfaction with the received services. The focus on factors like freshness, taste, and visual appearance of the food and drink, according to Kuttappan et al. ( 2012 ), can influence a customer’s liking of the food and drink. d) Quality of service According to Parasuraman et al. ( 1991 ), the service level given by employees, including responsiveness, assurance, empathy, and reliability, is important in service quality, which relies on customer-employee engagement. As a result, the management must measure staff performance in comprehending how they meet customer satisfaction through their engagement, such as kindness and patience, which mirrors the company’s values.

e) Promotions and Marketing Focusing on the quality of marketing examples through social media is dominant in this domain. The increasing usage of social networks by individuals on a global scale has generated the relevance of businesses incorporating platforms to reach a wider consumer market. In addition to the lack of integrating marketing mix, Singh ( 2012 ) explains that it could limit customer-level interest, which implies that if an organization focuses on the use of social media without the use of price and product strategies, it may fail to acquire the needed audience attention, hence limiting effective market penetration. f) Business operations In pursuit of an excellent customer quality service provision, the company’s commitment to enhancing societal and environmental well-being by mitigating carbon footprints in their production illustrates a positive operation and management related to Elior’s framework. As a result, consideration of the same in the mystery shopper framework will give the company in question feedback on whether the engagement in corporate social responsibility is reflected and communicated to the customers. g) Customer Behavior and response to Experience In measuring the quality of service, Wong ( 2004 ) highlights the importance of assessing the impact on a customer’s physiological, cognitive, and emotional paradigms. This ensures that customers are satisfied with the created service scope and questions embedded in the mystery shop model, which aligns with the Russel (1980) two-dimensional arousal-valence framework presented by Schubert (1999). 4.0 Findings In reference to the completed mystery shopper framework in (appendix 4 ), the following sections are built on the findings in the framework. (a)Exterior service scape The exterior scape of the design is determined based on the information integrated into Table 1, which was acquired from the completed mystery shopper framework.

Mean average 4.5 4. Mode 5 4 The interior scored 25/35 with an average score of 4.0 and mode of 4, contrasting the expected five scores in mode and 4.5 on average. Deriving from the comments, quoted that ‘the sits in some sections were crumbled up which limited movement,’ which led to a score of 3 in this dimension. The music from the comments of the mystery shopper, ‘the music was very relaxing and calming to the ears,’ accounted for a five score in these dimensions. Regarding Ding and Lin's (2012) academic research, background music, depending on the tempo, may influence their purchasing rate. For instance, if the music makes them feel sophisticated and calm, they tend to stay longer in the shop and become repetitive customers compared to that with a high tempo. (c) Coffee and snack quality Food and drink quality Expectation score Actual score Food display cleanliness 5 4 Full inventory 4 4 Food and drink temperature 5 5 Time to be served 5 3 Appearance of food 5 4 Taste of food 4 4 Overall quality 5 4 Total 33/40=82.5% 28/40=70% Mean average score 4.9 4. Mode 5 4 Table 3: food and drink quality The results show that the food and drinks scored 4.1 out of the expected 4.9, which means that the quality of food and drinks is above average. The temperature was the highest score as the quotations ‘the coffee was made upon order and snacks were preheated before being served,

which gave them the correct temperature.’ Time to be served was the lowest score; ‘the queues, especially in the morning, are long, and few employees take orders.’ The scores in the service need improvement, as Ji et al. ( 2022 ) explain that customer service is the backbone of organizational survival in the coffee and snack industry. (d) Service quality Service quality (table 4) Expected results Actual results Staff greeting 4 3 Staff professionalism 5 3 Order Accuracy 5 4 Staff physical appearance 5 3 Customer service 4 3 Total 23/30=76.6% 16/30=53.3% Mean average 4.7 3. Mode 5 3 The results in this dimension of 1-5 at Elior show different weaknesses. Only orders scored above 3; nonetheless, physical appearance, customer service, professionalism, and greeting all scored a 3, which illustrates the lack of enough training for the staff members. According to Kuamr et al. (2011), poor customer service negatively affects a company as when consumers feel dissatisfied, they tend to go to competitors, translating to poor financial performance. (e) Marketing and Promotions Marketing and promotions (table 5) Expected score Actual results Social media visibility of the coffee shop

The coffee shop from the table’s results shows keenness on corporate social responsibility, attributed to a 4 out of 5 score. This is evidenced by additional comments like ‘the coffee shop used recyclable packaging, which contributes to reducing its carbon footprint.’ Implementing corporate social responsibility according to Abbas (2020) is important as it shows customers the commitment to social and environmental good besides economic focus. The feedback platforms scored 3 out of the expected four, which is fundamental in giving the coffee shop viable areas of improvement through comments and reviews. The efficiency in customer service performed the poorest as the response highlighted that; ‘the shop did not highlight how it will provide to its customers its services’; the lack of information gives customers uncertainties on whether the shop is reliable in effectively meeting their needs through rendered service. In line with the statements, Juanamasta et al. ( 2019 ) state that effective communication helps a business improve customer loyalty by improving commitment and trust regarding the products. (g) Customer behavior and experience response Table 7: customer experience and behavior Expected scores Actual score Behavioral responses 5 4 Customer loyalty 5 4 Tangible assets 4 3 Ambient conditions 5 4 Total 19/25=76% 15/25=60% Mean average 4.8 3. Mode 5 4 In the previous section, the environmental dimensions of a 4/5 score build the foundations of measuring service quality on mystery shoppers’ behavior and emotions. The ambient conditions, which scored 4/5, are presented by Zorfas and Leemon ( 2016 ) theoretical arguments as leading to customers having a strong desire to stay and make additional purchases. The same is reflected in behavioral responses correlated to stimulating positive cognitive schema among customers.

5.0 Comparisons In comparing all the mystery shopper’s sections altogether based on the findings presented in this section, food and drink temperature was the best service with a 5/5 score, followed by the taste of food, which scored 4/4. Based on the discussed results, the poorest performed sections include social media usage and customer service promise in the operations, service quality, and marketing and promotion dockets, where viable recommendations for improving these dockets will be discussed in the progressive section of the report. The below figures are the overall comparison of the mean average and mode of all the discussed dimensions. Figure 1: actual and expected mean score average comparison. 4.4 4. 4.9 (^) 4.

4.75 4.

4 4.1^ 3.

0 1 2 3 4 5 6 expected mean actual mean

forums like barista training to ensure employees improve their coffee service. In addition, exposing workers to soft skills training will contribute to improving their professionalism, for instance, teaching the employees ways of effectively communicating and solving problems in the workplace Ibrahim et al. ( 2017 ) highlights that may help in improving the shop’s customer service as it will show the customers that the shop is reliant in effectively meeting their coffee needs. Lastly, the need for effective communication is highlighted as a weakness in the shop. According to Juanamasta et al. ( 2019 ), communicating with customers helps them easily remember the business. This implies that when the shop communicates its strategy example through different social media platforms, it improves the mutual connection between the management, employees, and existing and potential customers. Through communicating the objectives, the employees are enabled to work hard and align their objectives with those communicated by the shop. Subsequently, when there is clarity on how the customers will receive the services or the impact of the shop’s services on the customers, it generates emotional and psychological connections, which in turn improves customers wanting to associate with the shop. For example, drawing from Schrotenboer et al. ( 2022 ) logic, if the shop highlights that the coffee will be served hot and using quality beans incorporating an Omni channel will increase customer engagement, attract the target audience, and mitigate customer acquisition costs. 7.0 Conclusion In conclusion, attributed to the rising globalization pressures, the need for service quality has escalated to maintain a competitive advantage in various businesses. As a result, many ventures have focused on findings to increase service quality to achieve independent objectives and goals. Moreover, the urgency has also been expansively stimulated by the dynamic nature of consumers, who are becoming more demanding and sophisticated. Considering these, this study has included in-depth quality service provision by incorporating the mystery shopper’s framework. As illustrated in this paper, the framework helps highlight areas needing improvement as it entails different dimensions, including the exterior-interior space, service quality, business operations, marketing and promotion, service quality, and consumer behavior and feedback. The framework is both qualitative and quantitative, as it supports the inclusion of comments alongside showing numerical scores on different factors embedded in the specified dimensions. The implementation of the framework as a quality management approach is discussed and supported by comprehensive academic literature and is viable in ensuring both

employee and customer satisfaction, which is fundamental to business survival. This research also discusses the relevance of achieving service encounters through the framework, whereby weaknesses in the Biz-R coffee shop have been identified and viable recommendations included in the construction of the paper.

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