1. Part – 02 Revision

2. QUESTION 1 Considering your knowledge of Customer Benefit Packages and Service Delivery Strategies… a) What might be the Customer Benefit Package that you as the owner of a small building business will offer to your client? Explain and justify your decisions. 10 b) What might be the key aspects of “Service Encounter Design” to support your answer to part a) above? 10 Total 20 Marks Complete Focus on new reference book & lecture slide.

3. Answer Customer Benefit package is the set of tangible and intangible features that the customer recognizes, pays for, uses or experiences. So in Customer Benefit Package, we have 3 important elements Primary goods/services, Peripheral services/goods and variants. Draw the diagram : page 15 new reference book

4. As the owner of a small building business, my CBP for the customer includes the following: Primary Goods – a designed house Designed to the specification Build on time Quality of the building Cost effective and standard materials used to build. Reasonable price

5. Peripheral goods and services A prompt quotation to the customer. Cleanliness in the working area. Limited use of energy such as water/electricity. Skilled workers Minimum or no waste of materials during the construction.

6. Variant A professional and polite staff Professional advise on the design Innovative & cost effective designs The end of the answer

7. how can you answer these types of questions? Understand the definition Make sure, you know the three elements such as primary, peripheral, variants. Primary – the main or core product or service. For example the primary good in an automobile company is Vehicle or car. A primary service in a hospital is treatment for diseases. A primary service in a hotel is room. A primary service in a bank is keeping the accounts of a customer.

8. Peripheral goods/ service A peripheral good or service is something that is not essential for the product or good, but enhances the end product or service. For example accessory in a car such as the leather seats, audio system, color, brochure of vehicles, discount coupons, free stay in a hotel all are peripheral goods/services.

9. Variants Is a feature that coming with standard customer benefit package as a additional quality at times. For example for a hotel, the location may be a variant if it is located in the heart of the city, multi-lingual staff in hotel is another variant, again a baby sitter in a shopping mall is another variant.

10. Where do you find the information regarding this topic? Reference book page 14, page 15, page 16 Remember to include the diagram as it ensure maximum marks, and underlining your understanding.

11. What might be the key aspects of “Service Encounter Design” to support your answer to part a) above? Service encounter means the interaction between the customer and the service provider. So, in most cases customer and service provider come into direct contact while the delivery of goods and services. customer encounter design means making sure that customer will be satisfied when receiving goods and services from the service provider.

12. A service encounter design should include the following aspects: – Customer contact behaviour and skills – designing how employees interact with customers during the service delivery – Service provider selection, development and empowerment – involves finding, developing and keeping good customer-contact employees with service management skills

13. Recognition and rewards – includes how to motivate and keep staff Service recovery and guarantee – designing how to react to a “service upset”, i.e. a dissatisfied customer. How to correct mistakes to satisfy the customer How to compensate a customer, etc. Where can you find the referenced for this question? Reference book page 226,227,228,236 paragraph 236. Chapter 06

14. From your knowledge of meeting customers “wants and needs” through competitiveness… Discuss the likely business operations related to the wants and needs of guests at the hotel. Link your answer to lecture material and use examples as appropriate. – Customers’ needs vary – consequently organisations segment customers into target groups. So the guests in a hotel may have different needs. Youngsters would need more entertainments such as live music, discotheque, again the old may look for more relaxation and services such as spa, swimming pool e.t.c – Identifying what customers need and want requires “being close to the customer”. To understand this hotel must try to be close with the customers by communicating with them and understanding their opinion.

15. Identifying customer needs is not always easy … customers don’t always know what they want until it’s been created. Creating “breakthrough” goods and services sometimes require companies to take risks … not all of these succeed. Some services such as express check-in and check – out services can be included. – Dis-satisfiers – these are requirements that are expected in a good or service (e.g. a “clean” hotel room) – If these requirements are not present then customers become dissatisfied - sometimes very dissatisfied

16. Satisfiers – these are things that customers say they want (e.g. a restaurant in the hotel) Providing these goods or services provides customer satisfaction – Exciters and Delighters – these are new or innovative features that customers do not expect but that add value (e.g. free wi-fi in the hotel) – Providing these goods or services provides customers with “extra” satisfaction and can lead to competitive advantage

17. Where can you find the reference for this question? Lecture slide chapter 04 The reference book page 118, 119

18. What is service recovery? Or any question related service recovery. Service recovery is a process of correcting a service upset and satisfying the customer. Service upset is any problem a customer has with the service delivery system such as service failure, error, defect, mistake or crisis. Service recovery is designing how to react to a “service upset”, i.e. a dissatisfied customer. How to correct mistakes to satisfy the customer How to compensate a customer, etc.

19. There are different approaches to do service recovery Collect the data on the type of failures Analyze the data Identify the most frequent or critical failures Develop service recovery responses to each type Include those information in the training program Hire good people Train them Empower the staff Service guarantee Refer the diagram shown in page 232 reference book, again page 231

20. How might you use “search” and “experience” & “credence” attributes in relation to your hotel visit? Customers want quality in the goods and services they purchase. Customers use three types of attributes in evaluating the quality of goods and services: search, experience, and credence. Search attributes are those that a customer can determine prior to purchasing the goods or services. For example color, price, freshness, style, fit, feel, hardness and smell. I can use the search attributes for visiting a hotel by knowing the price, style or star category of hotel. Again the Pictures used in promotion, marketing, on the Internet, etc can be used for search.

21. Experience attributes are those that can only be discerned after purchase or during consumption or use. For example in the hotel that I visit, I can only know the customer satisfaction, fun, friendliness of the staff, safety in the hotel only when I experience the same. Credence attributes are those aspects of a good or service that a customer must believe in but cannot personally evaluate even after purchase and consumption. For example in the hotel that I visit the sincerity of the staff members cannot be evaluated even after the check –out.

22. Briefly discuss how a hotel might use the five competitive priorities: cost, quality, time, flexibility and innovation, to determine their strategy and operations. Cost – leading on price. Offering discounts for regular customers different pricing strategies for different room types, etc. Quality – offering high level of service, good quality related to the price, etc. Meeting or exceeding expectations Time – short waiting times, e.g. speed of service at check- in, in restaurant, etc. Flexibility – understanding customer wants & needs and responding quickly to specific requests, etc. Innovation – application of new ideas to the service experience. Aiming for new ways to exceed customer expectations, etc.

23. Where do you find the reference for this question? Page 122,123.124.125.126- 130 new reference book. Again lecture slide ( PBO) CHAPTER 04 Organisations need to use the value chain to gain customers, create value, and keep customers. Use examples for your business (airplane engine manufacture) to illustrate how this might work in practice CHAPTER 2 NEW REFERENCE BOOK PAGE 42 ONWARDS