ABS309 - Service Experience Model Design for Hungry Jack's Australia

This report outlines a service experience model design for Hungry Jack's, an Australian fast-food franchise. It details the service encounter, including the roles of employees and customers, the setting, and the actual service performance. The report also discusses the three stages of service consumption (pre-purchase, service encounter, and post-encounter) and how Hungry Jack's can optimize each stage. Furthermore, it explores the concept of ultimate user experience and how to achieve it through understanding user needs and brand values. The distribution strategy is analyzed, covering what, when, how, and where services are distributed. Pricing strategies, including value pricing and perceived value, are examined in the context of Hungry Jack's competitive landscape. The report concludes by emphasizing the importance of managing capacity and fostering a strong service culture to ensure customer satisfaction and loyalty. Desklib provides a platform to explore more such solved assignments.

SERVICE EXPERIENCE
MODEL DESIGN

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Service Encounter........................................................................................................................3
Three stages of service consumption...........................................................................................4
Ultimate User Experience............................................................................................................5
Service Distribution Strategy.......................................................................................................6
Pricing strategies..........................................................................................................................7
Managing and Adapt capacity.....................................................................................................8
Service Culture.............................................................................................................................8
Customer satisfaction...................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
A service model is the way that an organization offers their intangible value to the
customers (Voorhees and et.al. 2017). It is a short statement that shows the delivery process of
the services.
Hungry Jack's is an Australian fast food franchise of the Burger King. It is a wholly
owned subsidiary, privately owned by Jack Cowin. It has over 400 location across the Australia.
It employs over 19000 Aussies and serves more than 1.7 million Aussies (Hungry Jack’s, 2021).
It is the second largest franchise of Burger King in the world.
These reports show the service encounter detailing the employees, customer, the setting
and the actual service performed. It also shows the distribution strategy. It also explains the
pricing strategy of the company. And also it describes the service culture of the organization. It
also explains that how the target audience will interact with the services during the three stages
of service consumption.
MAIN BODY
Service Encounter
A service encounter is described as the moment when a customer interacts with a service
or a product for the first time (Larivière and et.al. 2017). It is the customers actual interaction
with the service company. It is identified as the key component in the current service markets. A
service encounter consists of four elements: (1) the service provider, (2) the consumer, (3) the
setting, (4) the actual performance.
1. The service provider- The service provider or the employee is one of the most crucial
element in the service encounters. The employees represent the organization and is the
force that keeps the delivery system going (Huang, 2018). For the employees, it is one of
the hundreds of encounter during a workday. At Hungry Jack's, it provides training to
their employees to develop interpersonal skills and able to look at encounters from the
customers point of view.
2. The consumer- The costumer is the most important element of the service encounter. The
ultimate objective is to provide satisfaction to the consumer. Hungry Jack's designs and
manages its service encounters with utmost care and focuses on efficient operations that

optimizes convenience of customers that helps in minimizing time and effort of the
customer that they spent for the services.
3. The setting- It consists of the equipment. Supplies, programs, procedures, processes and
rules of any service organization. Many services consist of core services and several
supplementary services. Hungry Jack's, it has designed and managed to deliver its core
services with perfection and it has added supplementary services to support and enhance
it core services.
4. The actual performance- It means the actual performance of the company with effect to
the performance period. Service encounters helps the company to find its actual
performance. In case of Hungry Jack's, with the help of the service encounters it sets a
encounter goal for the day and then take measures to achieve the goal.
Three stages of service consumption
The three stage model of consumption is a customer decision-making process of
purchasing the services. It was introduced by Lovelock & Wirtz. This approach is helpful as it
assists the manager in setting objectives and shaping the behaviour of consumers in a targeted
manner and using the resources efficiently (Sun, 2019). The three stages includes:1. Pre-Purchase Stage2. Service Encounter Stage3. Post-Encounter Stage
Pre-Purchase Stage
This is the first stage of service consumption where the customers seek solutions to
aroused needs. It is a complex process as it involves composite set of activities and factors. It
consists of various steps therefore it is very time-consuming (Hettiarachchi, 2017). The steps
involve; a need arousal triggers the customer to start searching for information and then
evaluating different alternatives and then making the final purchase. So here the Hungry Jacks,
can attract the target audience by advertising the new products that they have launched. With the
help of social media, television the can grab the attention of the targeted audience. Hungry Jack's
also uses the convenient customer service model, that is it offers services at affordable rates that
is very convenient for the customers thus increasing its target audience.
Service Encounter Stage

The second stage is the service encounter. This is the stage where the consumers are
practically involved in the services itself. It is the stage where there is actual transfer of services
to the customers. Service encounters provides the context in which customers can create, express
and enhance their engagements in a positive or a negative with the service of the firm. In order to
keep the customers engaged in the service encounter stage, the Hungry Jacks should focus on
demographics such as the gender, age, internet experience etc. and also it should focus on the
infrastructure of its restaurants as it the main element that will influence the customers to visit
their restaurant.
Post-Encounter Stage
This is the final stage of service consumption where the customers evaluate the service
performance. It involves the consumer satisfaction (Shukla, 2016). That if there will be high
level of satisfaction there are chances that consumer will repurchase the services and that will
result in increasing the loyalty of customers towards the company. But, if there is low level of
satisfaction then there are chances that the consumer may shift to different provider resulting in
the decrease of sales of the company. Here the Hungry Jack's should aim towards providing
customer satisfaction so that they can increase the loyalty of customer toward them and hence
increasing there brand image. With the help of the customer service model like self-service and
one on one contact with the customers, Hungry Jack's increases their customers satisfaction.
Ultimate User Experience
User experience means that how the consumer feels when they use a specific product or
services. It consists of variety of feeling including emotions, physical interaction and senses. For
a service to be successful it needs an ultimate user experience design so that the customers
remain satisfies and loyal to the company. So, to have an ultimate user experience Hungry Jack's
should have a UX design that firstly understands the user and the brand that is it should
understand the need and wants of the customers. With the help of the consumer theory the
company will have a better understanding of how people spend their money, the individual
preferences and budget constraints and accordingly satisfy the needs of the customers by
building a strong UX design. Secondly, it should have a well researched UX design that will
help Hungry Jack's that their services are in line with their core mission. Thirdly, Hungry Jack's
must have a proper analysed UX design that is analysing the target audience age, gender,

behaviours, needs etc. So with proper understanding, research and analyses the company can
have an ultimate user design that results in giving maximum satisfaction to its customers.
Service Distribution Strategy
Distribution is a process of making services available to the customer or user who wants
it. The distribution strategy of services are changing rapidly due to the changes in innovation.
This strategy asks the following:
 What?
 When?
 How?
 Where?
What is being distributed- In context of services, distribution does not takes place physically
like in a box packaging delivery of goods. It is interrelated with three flows:
 Information and promotion flow- It refers to distribution of information and promotion
related to the services offer. Here the objective is to get the customer interested in the
purchase of the companies services.
 Negotiation flow- It involves reaching of a configuration agreement so that the purchase
contract can be closed.
 Product Flow- It is a distribution strategy which involves development of new network of
local sites. The company can use this for information processing services, the product
flow can be through electronic channels or by employing one or more centralised sites.
Where it is being distributed- Two approaches are used to determine where the servicesw are
going to be distributed. That are:
 Strategic location considerations- It helps to identify the general types of location a
service firm should aim for. The firm should achieve a balance between the ease of
access and the convenience of their customers and also the cost of providing that access
and convenience.
 Tactical location consideration- The key factors that the Hungry Jack's should keep in
mind are population size and characteristics, convenience of access to customers,
competition on the area and availability of site locations.

How it is being distributed- This involves that how the services is going to be delivered to the
customers. It can be done in three ways:
 The customer visits the services according to their convenience and depending upon
the operating hours of the company. The hungry Jack's has flexible operating hours
therefore customers can visit at there convenience.
 The services visit the customers. Most of the company uses this option as it is more
profitable to visit the customers. The company can start online delivery food that will
help them to reach more customers.
 Customers and service firm transact remotely. It means that they both don't see each
other. The customer will receive the services via the delivery guy. The company can
also use various food delivery apps to deliver their food to their customers while not
directly interacting with the customers.
When services should be distributed- It involves that when the services are going to distributed
to the customers. It is based on the needs and wants of the customers. So accordingly with the
needs of the customers services are distributed. The Hungry Jack,s should keep in mind the
needs and want of their customer while delivering them the services.
Pricing strategies
It refers to the methodologies and processes that business uses to set prices for their
services offered. Effective pricing strategy helps in building the trust with their customers that
helps in solidifying the company's position. Ans also results in achieving the company's goals.
Different strategies are used by the Hungry Jacks which are:
 Value Pricing- It is one of the most important pricing strategy. It is a pricing strategy that
is based on the value that customer gains from the services as the base for its cost and
ignoring the cost of production (Raja and et.al. 2020). This strategy works well there is
innovation in services that can't be easily swapped. It helps in decreasing the risk of
company likes Hungry Jack's by ensuring that prices are neither to high, nor they are very
low.
 Economic Value- It consists of reference value and differentiation value. That means, the
value of the services firstly depends on the available alternatives and secondly, the
services offered in hand is differentiated from those alternatives. The total economy value

is calculated as the price of the best alternative plus the worth of whatever differentiates
the offering from those alternatives. Hungry Jack's competes with major fast food joints
like McDonald's and Wendy's. So the prices are laid out keeping in mind the competitive
pricing of the similar products.
 Perceived Value- It is defined as the value that customers are willing to pay for a
particular service based on their perception regarding that services (Konuk, 2018). It is
not based on the cost of the product but is based on the value that the customers thinks
that is deriving him from consuming that product or services. In the case of HUNGRY
Jack's, with the increase in the popularity of plant based meat alternatives across
Australia, it introduced “Rebel Whopper” that consist of meat free patty. And because
none of the other fast food joints at that time had the similar functionality. The company
was able to set a high prices because of the perceived value that to consumers were
willing to pay and thus, increasing its sales.
Managing and Adapt capacity
Most services manage capacity by attempting to match the capacity level with the
demand they expect (Wei, 2021). There are number of options for consideration like extend
operating hours, encourage employees to work hard, cross-train employees, modify facilities, etc.
 Adding Facilities- In case of Hungry Jack's, they can change the seating arrangement of
their restaurants by adding more chair and tables that is customers will not have to wait
for the seats to be free. So this will result in maintaining the demand.
 Staff- The company can encourage its staff to work harder that is processing more
customers per hour or per day. But it should also maintain its service of quality while
increasing the staff efficiency.
 Using customers as a resource- Hungry Jack's use the policy of self service that
customers serves themselves which results improved customers satisfaction, much
quicker services and thus results in increasing the demand.
Service Culture
It is defines as an environment where employees are obsessed with providing premium
customer service to their customers (Ngacha, 2017). It means going beyond the call of duty to

ensure that the customers are delighted for the services offered. Hungry Jack's should build a
service culture that results in strong relationship between the service and culture of the
organization. To build a strong service culture. Hungry Jack's will need a culture which has :
 Clearly define its mission, vision and brand promises so that great customer services can
be provided. As the Hungry Jacks knows that its vision is to serve the customers with
quality products and services, it becomes clear to the customers and the employees that
there top priority is providing excellent services.
 Hired the best employees-The company can only have a great stance on customer service
if the employees remain committed to living out the vision of the brand. Therefore,
Hungry Jack's should start its service culture by hiring the right employees for the
organization.
 Service training- Providing service training to the employees of Hungry Jack's so that the
employees engage with the service culture of the company and both the employees and
the company are on the same page.
 Setting goals- It is the most important for Hungry Jack's to set goals based on the
customer service vision and guiding principles as it will help the company to
continuously monitor whether the company is on the right path of providing customer
services or not.
Customer satisfaction
Creating exceptional customer experience is something every business strives for.
Delivering delight and putting the customer first is crucial and not very easy (Barsky, 2017).
Especially in the dynamic world, customer expectation are very high, no matter how hard a
business tries to keep the customers happy, things go wrong from time to time. So to turn the
unhappy customers to valuable customers Hungry Jack's should try to listen more to the
customers. That is it should practice active listening rather than passive listening which will
result in giving full attention towards what the customer wants. Secondly, the employees of
Hungry Jack's should apologize if there is any inconvenience caused to the customer due to
them, so the customer feel that the company truly care about them, and they are the company's
priority.

CONCLUSION
From the above report it can be concluded that service encounter is a key component in
designing the service model of an organization. It is the customers actual interaction with the
services provided by the company. Also, with the use of the three stages of consumption, it has
helped Hungry Jack's to interact with its target audience. It can be also concluded that with the
distribution and pricing strategy the company is able to identify that where and when it wants to
distribute its product and maintaining a pricing strategy keeping in mind the needs and wants of
the customers.

REFERENCES
Books and journals
Barsky, J. D., & Labagh, R. (2017). A strategy for customer satisfaction. Cornell Hotel and
Restaurant Administration Quarterly. 33(5). 32-40.
Hettiarachchi, H. A. H., Wickramasinghe, C. N., & Ranathunga, S. (2017). Social Commerce
and Consumer Decision Making: A Conceptual Model from Social Support Perspective.
Sixth International Conference on Advances in Economics, Social Science and Human
Behaviour Study (ESSHBS).
Huang, T. L. (2018). Creating a commercially compelling smart service encounter. Service
Business. 12(2). 357-377.
Konuk, F. A. (2018). The role of store image, perceived quality, trust and perceived value in
predicting consumers’ purchase intentions towards organic private label food. Journal
of Retailing and Consumer Services. 43. 304-310.
Larivière & et.al. (2017). “Service Encounter 2.0”: An investigation into the roles of technology,
employees and customers. Journal of Business Research. 79. 238-246.
Ngacha, W. J., & Onyango, F. E. V. (2017). The role of a customer-oriented service culture in
influencing customer retention in the hotel industry.
Raja, & et.al. (2020). Learning to discover value: Value-based pricing and selling capabilities for
services and solutions. Journal of Business Research. 114. 142-159.
Shukla, M. S. K., & Sevak, M. K. S. (2016). Consumer Behaviour in a Services Context: An
Empirical Study on an analysis of Pre-Purchase Stage, Service Encounter Stage and
Post-Encounter stage for Service Consumption of Health Care services in Mogri. 2. A
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Theme Hotel Based on Customer Experience. In 1st International Conference One Belt,
One Road, One Tourism (ICOBOROT 2018) (pp. 149-156). Atlantis Press.
Voorhees & et.al. (2017). Service encounters, experiences and the customer journey: Defining
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Wei, Y., Wu, S., Jiang, C., & Feng, X. (2021). Managing supply and demand of ecosystem
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Online references
Hungry Jack’s, 2021. Available through <https://hellomanly.com.au/listing/hungry-jack-s/>