Analysis of Service Delivery Failure Incident in Services Marketing
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This paper analyzes a service delivery failure incident in services marketing and provides recommendations for service recovery and maintaining customer loyalty.
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Running head: MKT203 Case study report Student’s Name: Student’s ID: Subject:
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1 SERVICES MARKETING Table of Contents Introduction......................................................................................................................................2 Analysis...........................................................................................................................................2 Description of service delivery failure incident...........................................................................2 Analysis of the roles and scripts of the service personnel...........................................................2 Identification of the type of complaint and root cause based on the theory................................3 Recommendations and service recovery strategy............................................................................3 Proposing a service recovery program and strategies for the incident........................................3 Recommendations for maintaining customer loyalty and retention related to the incident.........4 Conclusion.......................................................................................................................................5 References........................................................................................................................................6
2 SERVICES MARKETING Introduction The primary purpose of the paper is to analyze an incident that resulted in service delivery failure that creates a negative impact on the customers and the reputation of the company. Service delivery failure is regarded as the service performance that fails to fulfill the expectations of the consumers. As a result, the consumers will expect to be compensated in the form of apologies, discounts, credits, or refunds due to the inconvenience they faced. Therefore, based on the incident, the paper will recommend a service recovery program and strategies that will help maintain customer retention and loyalty. Analysis Description of service delivery failure incident Recently, I experienced an incident related to the failure of service delivery while traveling in flight. Due to some emergency reason, the flight attendants requested all the passengers to leave the flight as soon as possible. After hearing this, I, along with all the passengers, left the flight in order to protect ourselves. On the other hand, a 69-year-old doctor refused to leave the flight even after observing the critical situation. As the doctor denied to leave the flight, the security guards forcibly removed him from the flight. While doing so, the doctor suffered from severe injuries as the security guards knocked his teeth out, gave him a concussion, and even broke his nose (Sengupta, Balaji and Krishnan, 2015. It is difficult for any passenger to imagine such horrifying customer experience that led to physically injuring a person as he refused to leave the flight for which he has paid and booked for. It is determined to be a critical incident as it demonstrates a service delivery failure (Witellet al.,2016). Therefore, the doctor complained to the staff members and executives of the airline. Analysis of the roles and scripts of the service personnel The roles and scripts of the service personnel within the flight is to understand the significance of developing a service culture where they are responsible for facilitating high-quality service to both external and internal customers. The service personnel is also responsible for creating service quality and consumer satisfaction (Heidenreichet al.,2015). Within the boundary spanning roles, the employees are needed to recognize the inherent barriers. It is again the responsibility of the flight attendants and security guards to take appropriate actions to solve the
3 SERVICES MARKETING issue. Therefore, it is the duty of the service personnel to use resources and implement measures to provide better customer service. Identification of the type of complaint and root cause based on the theory Based on the incident, the type of complaint that has been identified is reflexive compliant where the complaints are directed within the inner aspect of the complainer. In this particular scenario, the complaint was registered by a doctor who could be considered as a problematic customer who was uncooperative with the flight attendants (Meijer, 2015). The incident took place as the doctor was not listening to the instructions of the flight attendants and refused to leave the flight. It clearly states the fact that the complaint is termed as a reflexive complaint that resulted in service delivery failure (Reim, Parida and Sjödin, 2016). Based on the theory, the root cause is locus and controllability that resulted in the occurrence of the incident related to service delivery failure. One of the root cause such as locus demonstrates the fact that the person responsible for the failure along with the source of the failure such as some external force, customer, service firm, or service provider (Kowalkowskiet al.,2015). It has been observed that the source of failure behind the incident that took place within the flight is the service provider and the customer as both of them did not cooperate with each other. On the other hand, another root cause is controllability, which monitors whether the responsible party such as the service firms and service providers have controlled the cause of the failure (Casidy and Shin, 2015). Based on the incident, it can be said that the incident took place as the flight attendants failed to control the situation. Recommendations and service recovery strategy Proposing a service recovery program and strategies for the incident In order to overcome the issue related to service delivery failure, the airline company must use the following service recovery strategies such as compensation, assistance, and apology. The following strategies are discussed below: Apology This particular strategy may be in two forms writing and verbal. Based on the incident, the air staff must use the tactical way to manage the activities during the flight time. The staff members must provide relevant information to the passengers regarding the emergency and how it could
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4 SERVICES MARKETING negatively affect them. It is recommended that the staff members must facilitate the information to the customers in written form that will be helpful for the passengers to understand the situation better (Tummerset al.,2015). The company must also respond quickly to its remorse and mistakes with a humble and full acknowledgment. In order to repair the connection with the customers, it is significant for the company to apologize correctly. Assistance It is also recommended that the airline company must assist the passengers in helping them to get out of the flight during the emergency. Thus, the air staff must use modern technologies to provide convenience to the customers. Such modern technologies will provide appropriate guidance to the customers regarding the situation rather than forcing them to leave the flight (Taoet al.,2018). Compensation It is determined to be the significant and financial form of service delivery. The company must pay compensation to the doctor as he got injured during the flight time and because of the security guards of the airport. Moreover, it is highly recommended that the company must also develop a service recovery program for air staff members. The service recovery program, such as training programs must be organized for the staff members as it helps in controlling the service delivery failure. The training programs involve effective methods of communication with the customers during the flight. It also helps the staff members to know how to deliver service without any negative effects, and based on psychological principles, it trains the employees to literate speech or uses smile that will make the customers feel free (Voorheeset al.,2017). Such training programs will help the staff members of the company to know how to cooperate with the passengers at the time of emergencies. Recommendations for maintaining customer loyalty and retention related to the incident It is strongly recommended that in order to maintain customer loyalty and retention, the airline company must be engaged into a high degree of personal communication with the staff members and passengers as miscommunication results in-service failure. The company must effectively respond to the complaint lodged by the doctor who suffered severe physical injuries. It will
5 SERVICES MARKETING significantly influence the spread of word-of-mouth, repurchase intention, and satisfaction. To understand the best way to deal with service failure, it is necessary to understand how customers respond and react to different aspects of service failure. This would help the company to reduce the negative results and retain the consumers (Waisbord, 2018). To maintain customer loyalty, the airline company must ensure customer satisfaction and improve its service recovery efforts by implementing and monitoring complaint handling systems. Moreover, frontline employees must be empowered, motivated, and trained to manage service recovery effectively. Meanwhile, the airline company must enhance the customer service message to remind staff members regarding the organizational activities. In order to build a loyal customer relationship, the airline company gives priority to the customers rather than money. In order to mitigate the issue, the company must implement service recovery strategies to make loyalty decisions for complaints lodged by the doctor, reduce the negative emotions, and improving passenger satisfaction. Therefore, it is significant for the company to track the complaints regarding service failure, learn from recovery experiences, and treat the passengers fairly, especially during emergencies. The air staff members must provide appropriate explanations to the customers regarding emergencies and act immediately (Song and Sakao, 2017). All these service recovery strategies will help the air staff members to cultivate strong and positive relationships with the customers. However, it is also recommended that the based on the incident the airline company must implement new methods of psychological behaviors within the organizational activities among the passenger and the employee. Conclusion The paper demonstrated an incident related to service delivery failure, where one of the passengers traveling in the flight suffered unfavorable customer experience. It also discussed the roles and scripts of the service personnel and also recognized the type of complaint and root cause based on the incident. It has been observed that it is a reflexive compliant, and the root causebehindtheincidentisduetolocusandcontrollability.Thepaperalsoprovided recommendations where the airline company is recommended to follow certain service delivery strategies like an apology, assistance as well as compensation. It also discussed regarding various ways that would help the company to maintain customer loyalty and retention.
6 SERVICES MARKETING References Casidy, R. and Shin, H., 2015. The effects of harm directions and service recovery strategies on customerforgivenessandnegativeword-of-mouthintentions.JournalofRetailingand Consumer Services,27, pp.103-112. Heidenreich, S., Wittkowski, K., Handrich, M. and Falk, T., 2015. The dark side of customer co- creation: exploring the consequences of failed co-created services.Journal of the Academy of Marketing Science,43(3), pp.279-296. Kowalkowski, C., Windahl, C., Kindström, D. and Gebauer, H., 2015. What service transition? Rethinkingestablishedassumptionsaboutmanufacturers'service-ledgrowth strategies.Industrial marketing management,45, pp.59-69. Meijer, A., 2015. E-governance innovation: Barriers and strategies.Government Information Quarterly,32(2), pp.198-206. Reim, W., Parida, V. and Sjödin, D.R., 2016. Risk management for product-service system operation.International Journal of Operations & Production Management,36(6), pp.665-686. Sengupta, A.S., Balaji, M.S. and Krishnan, B.C., 2015. How customers cope with service failure?Astudyofbrandreputationandcustomersatisfaction.JournalofBusiness Research,68(3), pp.665-674. Song, W. and Sakao, T., 2017. A customization-oriented framework for design of sustainable product/service system.Journal of cleaner production,140, pp.1672-1685. Tao, F., Cheng, J., Qi, Q., Zhang, M., Zhang, H. and Sui, F., 2018. Digital twin-driven product design,manufacturingandservicewithbigdata.TheInternationalJournalofAdvanced Manufacturing Technology,94(9-12), pp.3563-3576. Tummers, L.L., Bekkers, V., Vink, E. and Musheno, M., 2015. Coping during public service delivery:Aconceptualizationandsystematicreviewoftheliterature.JournalofPublic Administration Research and Theory,25(4), pp.1099-1126.
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7 SERVICES MARKETING Voorhees, C.M., Fombelle, P.W., Gregoire, Y., Bone, S., Gustafsson, A., Sousa, R. and Walkowiak, T., 2017. Service encounters, experiences and the customer journey: Defining the field and a call to expand our lens.Journal of Business Research,79, pp.269-280. Waisbord, S., 2018. Family tree of theories, methodologies, and strategies in development communication.Handbook of Communication for Development and Social Change, pp.1-40. Witell, L., Snyder, H., Gustafsson, A., Fombelle, P. and Kristensson, P., 2016. Defining service innovation: A review and synthesis.Journal of Business Research,69(8), pp.2863-2872.