Ozhouse Clean: Customer Service Issues on Group Buying Websites Report

This report examines the customer service challenges faced by Ozhouse Clean when utilizing group buying websites. It highlights issues such as customer complaints regarding voucher redemption, long waiting times, and unexpected additional charges. The report emphasizes the importance of adhering to relevant legislation, including the Competition and Consumer Act, 2010, and the Privacy Act, 1988, and the Spam Act, 2003, and clearly communicating refund and voucher policies. It analyzes the advantages and disadvantages of using group buying websites as a marketing tool, including increased brand awareness and sales versus potential profit reduction and challenges in managing demand. Recommendations include improving voucher policies, reducing waiting times, and implementing more empathetic refund policies to enhance customer satisfaction and maintain a positive brand image. The report provides valuable insights for businesses seeking to optimize their customer service strategies on group buying platforms.

Manage Quality
Customer Service

Table of Contents
Table of Contents.............................................................................................................................2
Task 3...............................................................................................................................................3
References........................................................................................................................................5

Task 3
Group buying websites are the ones which offer products and services at significantly
reduced rates on the condition of having a minimum number of buyers at the same time for
purchasing company goods and services. This is a practice used in companies so that they can
reduce their costs and provide high quality services to customers at low prices (Boonme, Han
and Prybutok, 2016). Following are the issues which are faced by Ozhouse clean due to selling
their services on group buying websites without investing the terms and conditions so that these
issues can be efficiently dealt with and similar conditions can be avoided:
 Three customers have complained against the company regarding redemption of their
vouchers.
 Two customers companied about long waiting to redeem their vouchers for introductory
clean
 One customer complained about having to pay additional $70 even after paying the
introductory clean.
From the above issues it can be said that the company is lacking on effective application of
legislations and providing correct information to customers on group buying websites which is
leading to confusion among customers. It is important that code of conduct is followed by
companies while dealing on these websites like the Competition and Consumer Act, 2010; the
Privacy Act, 1988, the Spam Act, 2003 etc. Also it is important that refund and voucher policies
are clearly and correctly mentioned on these websites, offers must be clearly mentioned, the
price, description and discount of services and products should be clearly mentioned, period for
the availability of offer, any limitations and restriction etc. should also be clearly mentioned
(Chang, 2018). Ozhouse should investigate all the legislations so that the customers can be given
efficient services and high satisfaction can be achieved.
The advantages of using group buying websites are:
 It can be used as an effective marketing tool so that brand awareness can be increased.
 Number of sales of company can be increased as many customers avail services at the
same time (Chiu and Hsu, 2018).
 The vouchers which are purchased through these sites are prepaid and valid till limited
time which helps the company in receiving huge amount of money at a time.
Disadvantages of using these sites:

 As the services and products are offered at low prices it can affect overall profits of
company.
 It can lead to increase in demand in market which might become difficult for company to
manage affecting the quality of its services.
 Existing and loyal customers may purchase multiple vouchers while the new customers
need to be attracted through more vouchers to draw their attention affecting the
profitability of company (Wang, Wang and Liu, 2016).
Recommendations:
 Ozhouse clean need to clearly mention about the policies regarding refund and use of
vouchers along with the time till which they are valid so that confusions among
customers can be avoided.
 The company need to reduce the waiting time for customers to avail services by
managing the increase in demand because of the group buying websites.
 It can also improve its refund policies and must empathise with customers so that their
satisfaction can be increased and in case if customers have paid extra amounts it is the
responsibility of company to refund the amount so that high customer satisfaction can be
achieved.

References
Books and Journals
Boonme, K., Han, B. and Prybutok, V.R., 2016. Group inference: A silent voice for the buyer’s
decision-making. Journal of Decision Systems, 25(1), pp.1-15.
Chang, C.J., 2018. The different impact of fluency and disfluency on online group-buying
conforming behavior. Computers in Human Behavior, 85, pp.15-22.
Chiu, Y.L., Chen, L.J., Du, J. and Hsu, Y.T., 2018. Studying the relationship between the
perceived value of online group-buying websites and customer loyalty: the moderating
role of referral rewards. Journal of Business & Industrial Marketing.
Wang, W.T., Wang, Y.S. and Liu, E.R., 2016. The stickiness intention of group-buying websites:
The integration of the commitment–trust theory and e-commerce success
model. Information & Management, 53(5), pp.625-642.