Service Marketing: Analyzing Customer Encounters at Starbucks

This report provides an analysis of service encounters within Starbucks coffee shops, focusing on the customer experience. It begins with an introduction highlighting the importance of client interactions in the service industry, particularly for a brand like Starbucks. The report then delves into the significance of these encounters, using a flowchart to illustrate the different processes involved in providing a positive customer experience. It examines how Starbucks can manage these encounters effectively to build a strong brand reputation. The report further explores the customer's perspective, emphasizing the impact of both positive and negative experiences on customer satisfaction and loyalty. The study then moves to the analysis of managerial implications, discussing how Starbucks can leverage service encounters to improve brand image, manage customer expectations, and potentially upsell services. The conclusion emphasizes the importance of front-line staff in creating excellent service experiences and the need for organizations to ensure positive interactions with customers. The report uses Starbucks in Australia as a case study and references various sources to support its claims.

Services marketing
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Table of Contents
Introduction..............................................................................................................................................3
Significance of service encounter.............................................................................................................4
Analysis of managerial Implications........................................................................................................6
Conclusion................................................................................................................................................8
References................................................................................................................................................8

Introduction
In all the service industries, the experience that the client has with the brand chooses its
potential. The premise on which the brand would be reviewed would be the service
experiences or the exposures of the client that they have in terms of communications with the
brand.
In this way, for any service based associations, the organization should take a gander at
enhancing the client benefits which are the main zones where there is a current
communication with the client (Coffee Shop Ruled Related Business, Gift Shop Held
Functionally Related Business, 2017).

Starbucks Operations
Failed Quality Test
Discarded
Displaying at the sales counter
Used for coffee making at the outlet (Front stage)
Back stage operations Front stage operations
Bean Assortment
Roasting
Quality testing and cooling
Blending and transportation
Packaging
Passed Quality Test
The chosen service organisation for the study is the Starbucks coffee shop in Australia.
Source: (Caudwell, 2011)
Significance of service encounter
The above flow chart shows how different processes are carried out for providing the
customer with a great servicing experience. All of these encounters would be directly
Greeting the
customer
Offering the available
coffees and other products,
with details of applicable
discounts and offers
Taking the order and asking
them to wait for the same
Billing of the order and
taking the payment
Serving the order
Cleaning the table and ask
for the feedback

including the client like taking the order, giving out the bill to him and asking for the
feedback. Starbucks has to deal with these in an effective manner so that the service
encounter becomes better. The service encounters have to designed in such a manner that
The businesses are able to change the neutral emotional encounters of clients which they have
while entering the premises, into the positive one (Ventola, 2005). It is important to have a
great service encounter so that business can build up a great reputation and on from the scene.
That Eurasian or waiting line has impact on the encounter off client and the servicing start
fasting sure that the client is made of Time taken for their order. This would make the clients
to perceive a control on the proceedings.
Every service interaction is an opportunity for Starbucks to show that their brand is the best
and each off the positive encounter reinforces the brand image. This way or that service and
counter can make Starbucks to be the favourite brand of the customer. The business has to
maximise the use of the service and counters in interaction with the clients and understanding
of the demands, wishes so that the services can be offered accordingly (Fitch, 2011). The
service and counter is important as it acts as an ideal platform to get the feedback from
clients, based on which the necessary improvisations can be made as and when required.
The experience course alludes to a progression of experiences ideal from the time a client
comes to take the service. The experience course can be vital as any experience can be basic,
as it decides consumer loyalty and dependability (Schmenner, 1995). In case it's the initial
association of the client then the underlying collaboration will be the early introduction. In
this way, these collaborations must be given significance, as they are basic and impacts
client's impression of the association. For instance, a client requiring the repair service may
change to some other organization on the off chance that he is put on hold for quite a while or
even treated impolitely. Regardless of the possibility that the specialized quality of that firm
is unrivalled, the firm may not get an opportunity to substantiate themselves before the client.

At the point when the client has had numerous communications with firm, each experience
will be essential as it will make a consolidated picture of that firm. Numerous positive
encounters will give a picture of "high calibre" and many negative encounters will speak to
an awful picture. Mix of positive and negative connections will leave the client befuddled
about the quality (Zhang, Dou and Chen, 2013).
It is proposed that not all experiences are similarly essential in building long haul relations.
For each association, certain experiences can go about as a key to consumer loyalty. For
instance, in a coffee shop setting, an investigation of clients uncovered that experiences with
the servicing staff were more critical in anticipating the consumer loyalty (Hollis, 2002). As it
is properly said "one rotten one can demolish the entire wicker bin of apples." The same
applies in this as well; one negative experience can push the client away, regardless of what
number of experiences had occurred before. So a firm needs to give a considerable measure
of significance to such experiences.
However a few experiences are more basic. For instance, a client who has been utilizing a
coffee shop services for almost 15 years is very content with the service. He has a colossal
store and many records. One fine morning, when he leaves the bank the guard approaches
AUD5 for stopping charges of his car. He goes inside the coffee shop and advises the worker
at the counter, who guides him to the officer. The officer guides him to the Manager, who
says he is vulnerable as this is another approach of the coffee shop. The client who was so
content with the coffee shop services chooses to switch to any other coffee selling outlet.
Analysis of managerial Implications
As stated above, the business must make use of the service encounters in attaining the
customers in whole. Just like other practices, the encounters in the service industry can't be
reviewed only on the basis of any method medical calculations. There are various qualitative

aspects which also influence the service encounters. The managerial implications that these
encounters can have might be straightforwardly impacting the return on investment
and market shares. This is so because the encounters have direct impact on
the clients’ decision regarding the brand. This holds good particularly in the example of
hospitality brand where the trust is important and most of the businesses are formed
on basis of word of mouth. Generally all the coffee shops of present-day are similar but they
can excel or do better then others in terms of the services being offered. The management has
to be aware of different service interactions that the clients will have while placing order or
while handling any transaction. This way the management must be clear on what all can
have impact on the clients in a negative way. The improvements have to be done to ensure
that the clients get to know of the completeness of the procedure former the time taken and
quality that would be ensured so that there is no ambiguity (Giesbrecht, Schwabe and Schenk,
2016).
This makes the management clear on what all can have impact on the clients in a negative
way. The improvements have to be done to ensure that the clients get to know of the
completeness of the procedure former the time taken and quality that would be ensured so
that there is no ambiguity (Hanser, 2012). This way the management can get assistance
in reduction of the expenses and efforts which can be there due to reworking. The lesser of
reworks and lesser of ambiguity will bring in higher satisfaction.
Starbucks can also make use of these encounters to up-sell different services that are offered
by. There has been adequate and lots of systems and checking developments by other
businesses to manage the demand and requirements of the business however very less effort
has been there for implementing the same in an effective manner. When the psychological
dimension is added to the service sector then it would increase the brand loyalty and clients
who are contented and delighted with the service will actually reference the same to

additional clients so that a great brand image can be played. Also the Internet transactions
where the clients do not have direct involvement have to be considered in order that the
complete service encounter is a great one and in an organised manner. The businesses are
nowadays putting in lots of money for promotion of the brand by different channels, in case
they manage to make their service part to be the best then they can actually do the minds of
clients with very less expenditures and that also for a huge time span.
Conclusion
For service associations the communication between front‐line work force and the client is
essential as they intend to make superb service experiences (Svensson, 2004). Much research
has concentrated on attempts by associations to teach the "right" sort of disposition in their
front‐line workers. This is the perfect open door for the organizations in guaranteeing that
they leave a positive effect with the clients. This task would be taking a gander at the effect
that service experiences have on hospital industry by taking a genuine circumstance that
occurs in Starbucks and the path in which these can be handled.
References
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Coffee Shop Ruled Related Business, Gift Shop Held Functionally Related Business.
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Fitch, K. (2011). Developing professionals: student experiences of a real-client
project. Higher Education Research & Development, 30(4), pp.491-503.

Giesbrecht, T., Schwabe, G. and Schenk, B. (2016). Service encounter thinklets: how to
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Service Work-place. Sociology Compass, 6(4), pp.293-305.
Hollis, S. (2002). Capturing the Experience: Transforming Community Service into Service
Learning. Teaching Sociology, 30(2), p.200.
Schmenner, R. (1995). Service operations management. Englewood Cliffs, N.J.: Prentice
Hall.
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