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SERVICE MARKETING
SARB MULTIPLEX
The report contains all the aspects of service encyclopaedia for Sarb Multiplex,
Jalandhar which is a movie theatre with additional facilities like shopping mall, fast
food courts, Kids zone. It is first of its kind in Jalandhar region. In this report an
attempt has been made by me to cover all aspects of service encyclopaedia expressly
service marketing environment, service segmentation, customer requirements and
customer expectations, quality concerns for service, Integrated gaps model of service
which covers where gap exist between what customer expect and what customer
actually receive and also cover employees expectations and what they actually
receive, service recovery strategies need to be used by Sarb multiplex, design
blueprint of their services, positioning map where they are placed along with
competitors, design servicescape which is atmosphere which multiplex offers along
with employees, role played by employees and their customer in delivering and
consuming services, what channels of integrated service marketing communication
they use and new channels they should use, how they price their services, different
intermediary delivery channels used by them for their services, management of
waiting lines.
SERVICE CHARACTERISTICS
A service is the action of doing something for someone or something. It is largely
intangible (i.e. not material). A product is tangible (i.e. material) since you can
touch it and own it. A service tends to be an experience that is consumed at the point
where it is purchased, and cannot be owned since is quickly perishes. A person
could go to a café one day and have excellent service, and then return the next day
and have a poor experience.
Inseparable - From the point where it is consumed and from the provider of the
service Sarb Multiplex provides entertainment services from its on-site theatre.
Perishable - in that once service has occurred it cannot be repeated in exactly the
same way. Sarb Multiplex does maintain its services in such a way that no theatre in
the region/locality can copy them up.
Variability- since the human involvement of service provision means that no two
services will be completely identical. Sarb Multiplex provides such services which
are not identical to other theatres in locality/region. It does provide services which
are unique.
Right of ownership - is not taken to the service, since you merely experience it. For
example, an engineer may service your air-conditioning, but you do not own the
service, the engineer or his equipment. You cannot sell it on once it has been
consumed, and do not take ownership of it.
SERVICE MARKETING ENVIRONMENT
Political:
· Freedom of press, rule of law and levels of bureaucracy and corruption: press is
free to right about what it finds best and criticize what it doesn’t find good so Sarb
Multiplex have to be at toes in providing same standard of service what everyone
expect moreover they are free to advertise anything.
· Tax policy, and trade and tariff controls: at this time Sarb multiplex is giving 30%
of their profits in the form of taxes moreover tariff on showing new movies is also
high so as to protect piracy is also high.
· Likely changes in the political environment: change in political party and new
policies of new government will affect working of multiplex.
Economic:
· Current and project economic growth, inflation and interest rates: high rate of
inflation and interest rates will effect liquidity position of people and in turn effect
business of multiplex as it comes secondary to fulfill necessities. Moreover interest
rate hike will affect multiplex to expand further.
· Unemployment and labour supply: Low level of unemployment as compared to
other states and high rate of efficient labour supply compact for the work in Multiplex
will always be in favour of Multiplex.
· Labour costs: the quality of work will always demand high compensation to
employees moreover low level of unemployment and work efficiency would require
high payment so labour cost will always be high.
· Levels of disposable income and income distribution: level of income and income
distribution is high in Punjab as compared to other states so this will also act in favour
of Multiplex.
Socio-Cultural:
· Population growth rate and age profile: growth rate of population in Punjab is
high average age people here is 15-40 which target group of Sarb Multiplex is so this
will also work in favour.
· Press attitudes, public opinion, social attitudes and social taboos: this also work
in favour of Sarb Multiplex as high level of Press involvement in every work.
· Lifestyle choices and attitudes to these: lifestyle of people has always been high
compared to other states by looking at standard of living of people, 90% of people
have their own sheds/houses rather than on roads.
· Socio-Cultural changes: people of Punjab are very social and respect their culture
and are strict for their religion so Sarb multiplex has to operate accordingly.
Technological Environment:
SERVICE SEGMENTATION
.
SERVICE MARKETING MIX
The services marketing mix is an extension of the 4-Ps framework. The essential
elements of product, promotion, price and place remain but three additional variables
– people, physical evidence and process – are included to 7–Ps mix. The need for the
extension is due to the high degree of direct contact between the CE providers and the
customers, the highly visible nature of the service process, and the simultaneity of the
production and consumption. While it is possible to discuss people, physical evidence
and process within the original-Ps framework (for example people can be considered
part of the product offering) the extension allows a more thorough analysis of the
marketing ingredients necessary for successful services marketing.
Product :- A product with many different features provides customers with complete
entertainment of movie watching, opportunities to chat, play games, shop in mall
having world class brands, kids-zone.
Price:- Sarb Multiplex wants to make its services accessible to as many people as
possible: from the young, through apprentices and high powered business executives,
to the more mature users. It offers various pricing structures to suit different customer
groups.
• Monthly price plans are available as well as prepay options. Phone users can top
up their phone on line.
• Stores have special offers, promotions and point of sale posters to attract those
inside the stores to buy.
Sarb Multiplex's stores, its products and its staff all project the brand image. Sarb
Multiplex Essar’s advertising campaign
• Promotional mix
• Advertisements – TVC, Print, Radio, hoardings
Physical evidence – this is the environment in which the service is delivered and
any tangible goods that facilitate the performance and communication of the
service. Customers look for clues to the likely quality of a service also by
inspecting the tangible evidence.
• Internet/web pages.
• Paperwork (such as invoices, tickets and dispatch notes).
• Brochures.
• Furnishings.
• Signage (such as those on vehicles).
• Uniforms.
• Business cards.
• The building itself
Process –
Sarb Multiplex recruits high quality staff treat them well and communicate clearly to
them: their attitudes and behaviour are the key to service quality and
differentiations
They attempt to market to existing customers to increase their use of the service, or to
take up new service products
There is set up of a quick response facility to customer problems and complaints
They employ new technology to provide better services
They use branding to clearly differentiate service offering from the competition in the
minds of target customers
When it comes to quality of service, customers have higher expectations than ever.
They want nothing less than a superb customer experience from their providers. With
narrowing choice from competing theatres in Jalandhar and no compelling reason to
remain loyal, consumers can, and will, vote with their feet. Whether a company is
new to the market, or well established, it’s clear that providing superb customer
experiences has to become part of an organization’s DNA in order for it to bolster
customer advocacy and reduce unwanted churn.
Traditionally, there has been a high cost associated with providing a superb customer
experience. The tightrope is the balancing act providers perform when trying to
balance delivering great customer experiences with controlling and even reducing
costs.
However, Sarb Multiplex has mastered the tightrope and are delivering exceptional
customer service with very lean operations.
The ability to differentiate brand through the delivery of exceptional customer
experiences, while tightly managing costs, is something that Sarb Multiplex adopted
from the beginning—recognizing it to be the new battleground of customer loyalty
and a critical driver in recruiting new customers. Sarb Multiplex is known for its
heavy brand investment and a complex product portfolio, and the service are
differentiated by offering tailored products at competitive price levels.
From the outset, Sarb Multiplex’s criteria for successful market entry determined that
delivering satisfactory customer experiences was essential.
Alternative channels
• Low acquisition costs
• Focus on online sales
• Leverage community effect
Lean operations
• High online self-service
• Simple product features
Strong brand
• Build up brand and/or leverage channel asset
• “Trust” in company key for final purchasing decision
An online only sales channel, and the need to keep acquisition costs to a
minimum, was dependent on building a community of satisfied customers happy
to recommend Sarb Multiplex to others.
QUALITY CONCERNS
Sarb Multiplex’s concern and priority is to satisfy customers, by understanding and
foreseeing their needs, as well as covering their demands and expectations and by
providing products and services of exceptional quality.
Sarb Multiplex defines quality as the possibility to exceed the demands and
expectations of its customers and people through the continuous improvement of the
operation of the processes and systems.
Sarb Multiplex’s quality concern is committed to…
1. Ensuring compliance with all the requirements of the Quality Management
System.
Quality of Services
Ιn the scope of developing services that correspond to customers' needs, Sarb
Multiplex, has adopted a specific framework of systematically assessing quality of
services end-to-end, from their concept and planning phase until their delivery to the
market. This framework includes the following methods:
Service Evaluation
Service evaluation is conducted aiming to ensure that new products and services are
designed, developed and implemented according to quality requirements, company
policies and processes aiming to meet customer needs. Quality standards of new
services and products are verified through specific benchmarking trials, prior and post
launch, against initial technical and quality specifications.
Quality of Service (QoS) Monitoring
One of the most important methods for target setting and network development
prioritisation is to simulate and understand customers' perception on the use of movie
entertainment. The fundamental indicators demonstrating QOS achieved by Sarb
Multiplex – Daily customer turnover is the “Service Success Rate (SSR)" (the
percentage of successfully set-up, maintained and released calls, as perceived by the
customer), the "Customer waiting time"(assessing the speedy services) and the
“support service failure percentage” (evaluating the strength of support services).
Suppliers & Partners Performance Evaluation
Sarb Multiplex in order to develop mutual trust and cooperation with its main
Partners, systematically assesses the quality of this cooperation. The assessment aims
to identify areas for improvement and to implement appropriate actions in order to
achieve mutual beneficial synergies
For Sarb Multiplex the knowledge gap is high as information collected through survey
is restricted to people who have already consumed their services, their information is
based upon what other theatres who are offering same standard of service as they are
offering in other geographical location. They have not been able to collect
information about what customer outside their target market expect from them in
order to gain additional market share. Though the information collected by them from
their target customer is adequate and they have been able to reach their expectation
level. But one thing that works well for multiplex is low level of bureaucracy and
organizational layers so consumer expectations are directly derived to functional
level.
The information collected through surveys is classified and interpreted well but for
their target customers but information collected to increase market share is not
adequate so planning done for their target group is what is expected from managerial
level, goals of organization for their target group of customers are clearly defined and
customers are satisfied but planning is not up to the mark for other group who can be
their future customers. So standard gap which is GAP 2 is less.
The third level of GAP is low in Sarb Multiplex with clear cut defined role for each
employee in the organization. Every employee is clear about the standard of quality
needed for his work. For eg. A security guard know that he should keep proper vigil
on every individual entering the premises, usher knows that he should lead every
customer to his seat and take proper care of his comfort and convenience, a restaurant
knows that standard of food should reflect multiplex’s image. There is no role
ambiguity as every employee is clear about his place and duty. The support staffs
know the importance of substitute services for customer and they are always ready to
help. The technology used from presenting movie to toilets is really up to date. Proper
co-ordination from parking keeper in the beginning to parking keeper in the end is up
to the mark. Every employee has been appointed and given duty according to his
ability which means proper job fit.
Sarb Multiplex always follows a policy of under-promising and over delivering. There
is direct communication from managerial level to functional level and vice versa so
the 4th GAP is very low.
SERVICE RECOVERY STRATEGIES
Service is involved with the need to satisfy the customer. Professional business firms
attempts to sell their competence and build reputation. Service organizations
occasionally make a mistake and might mistreat their customers. A good service
recovery can turn a disgruntled customer into loyal one and turn a frustrating
experience into a fond memory. One way to enhance service recovery us to motivate
the front line employees to identify problems and empower them to correct service
mistakes.
Sarb Multiplex's reputation depends on earning the trust of its customers. Their
loyalty is vital to the long-term success of their business. Important consumer issues
include the clarity of pricing, the responsibility of marketing material, the way they
handle customer privacy and measures to protect customers from inappropriate
content, contact and commercialism. They also address other consumer issues such as
enjoying social status along with standardized movie entertainment, safety and
cleanliness.
Customers can now access information and book ticket by registering on the site
which will save your personal information and it will not demand for information
when new booking is to be done not even login id and password as the site have
special features of saving login and password through cookies in Laptops/PC and
directly access when ever new access is made to site which make ticket booking all
the more easy. These technologies bring significant benefits to our business and
personal lives, but can also raise concerns about misuse.
Recovery Strategies
• Replacement
• Free ticket
• Nothing
• Apology
• Correction
• Discount
• Manager Intervention
• Coupon
Drafting Positioning maps:
High
(customer service)
Narendra
Cinema
Sarb Multiplex
Friends cinema
Sant Theatre
Laxmi Cinema
Lal Rattan
Sanam Cinema
Krishna Cinema
Low (customer
service)
The Sarb Multiplex has the best service in customer service and also the prices are
high as compared to other competitor in the market. They are the leader in the market
in the sector. (This comparison is for the Value Added Service provided by both
them). The other service providers are differently rated in the positioning map.
PRICING STRATEGY:
The Sarb Multiplex is following Value based pricing strategy as they base their
service as providing high end value to customers as compared to their competitors and
alternative services. Sometimes they use Optional pricing to increase the amount
customer spend once they start to buy. Optional 'extras' increase the overall price of
the service such as guaranteeing a window seat or reserving a row of seats next to
each.
EMPLOYEE AND CUSTOMER ROLE IN SERVICE DELIVERY
The servicescape of Sarb Multiplex is designed around a customer helping self with
the service .The role of service employees is limited. Customer performs most of the
activities, either on their own or with a little help from the provider. Examples are
ATMs, cinema hall, parking, entertainment and self service restaurants etc. The
service provider has planned the facility exclusively with the customer in mind. The
facility design attempt to position it for the desired market segment, by making the
facility pleasing and appropriate to use for them.
SERVICES CAPE
The importance of the servicescape (the physical facilities of a service company), the
effect of the servicescape on quality perception has been inadequately captured by
previous empirical research. The purpose of this paper is to examine the impact of the
servicescape on perceived quality in a more comprehensive way.
A REMOTE SERVICESCAPE
In Sarb Multiplex there are service settings where there is little or no customer
involvement in the servicescape. The servicescape here is an example of remote
encounters. These use remote servicescape. They are back office .The place has been
designed to keep employees’ motivated and morale high. The servicescape
premeditate ergonomically to facilitate teamwork, supervision and operational
efficiency.
Facilitator
Another important servicescape of SARB MULTIPLEX is to act as and a facilitator in
assisting both the customers and service employees to make most of the opportunity it
should make the service consumption comfortable convenient for the customer. For
employees it makes pleasant to conduct activities. This setting is designed so as to
enhance or inhibit the efficient flow of activities in the service setting making it easier
or harder for customer and employee to accomplish their goals.
Socialiser
Design of servicescape in Sarb Multiplex aids in socialization of both the customers
and employees, conveying expected roles, behaviour and relationship. Compare the
servicescape of Sarb Multiplex provided with that of any other theatre of Jalandhar. In
other theatres a large part of the floor is marked as restricted, leaving little space in
the form of an arrow passageway along the outer walls of the hall for customers. The
message is clear –customer must not enter the restricted area, that is where the most
important job of the service, internal operations, is conducted and by entering that
area, customers will be interfering with that task. Whereas Sarb Multiplex approach
customers with convivability. The air conditioned lounge with comfortable seats and a
cold water dispenser as you pass through a spotlessly clean glass door, makes
customers feel welcome. They are allowed more space to move and occupying a seat
across from executive’s desks suggests that customer is indeed central to all activity.
The service with public operator also suggests that customers have a formal –official
relationship with public service users, whereas servicescape in Sarb multiplex
encourage relaxed- friendly interactions.
Differentiator
With the layouts a customer can make out what kind of operator it is. A dominance of
dark glowing colourful lights, cool environment high esteemed services differentiates
it from other theatres. Clothes and pre-laid cutlery differentiates a restaurant from
other with flour cent colours and pattern on the walls, blasting music, crowded with
young boys and girls and motorcycles and cars arranged in proper setting at parking in
front. Clearly the design of the servicescape differentiates one provider from its
competitors, and hints at the segment the services are targeted at. Companies adapt
servicescape to reposition the services or identify new customer segments.
Conclusion
Although it is useful from a strategic point of view to think about the multiple roles of
the servicescape and how they interact making actual decision about servicescape
design requires an understanding of why the effects occur and how to manage them.
The roles played by servicescape in a particular situation will aid in identifying
opportunities and deciding just who needs to be consulted in making facility design
decisions..
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