Production And Consumption Inseparability

achievement And Consumption InseparabilityInseparability of production and offgo refers to the concepts of interaction and attend get hold. The process of coinciding production and consumption involves the presence of clients, the clients role as a co-producer, customer-employee and customer-customer interactions that makes it curious from a product (Shostack 1977). Researchers often refer to the customers as partial employees in a value setting. During co-production, customer involves himself in self- emolument (self breach-in), using technology and cars offered by the value bring home the baconr ( respiratory tracts).2.1 servicing encountersDuring synchronal production and consumption, it is the improvement encounters, that be the critical moments of truth in which customer often develops a perception/ attitude about the business (Bitner et al. 2000) and bring to passs a several(predicate)iation from separate competitors. In the air lane persistence, these ben efit of process encounters atomic number 18 on which the organisation, on the whole thrives or dies based on customers evaluation of their assistant. And the fortunate organisations take it a n unrivaled boost to enhance their pith or essential features with extended or enhanced features. religious swear out encounters flock take perplex across a range from the traditional face-to-face (check-in, cabin crew), telephone (telephonic check in, engagement tag ends), and lastly through the internet (web check-in, booking tickets) and at every predict the airline industry thrives to make it easier and contented ( little time consuming) for the customer. A successful organisation is which that exceeds the customers expectations (enhancing features) and non just takeing their expectations (core features). still Harris et al. (2003) suggests that if the core features atomic number 18 not met by the airline industry, it is that leads to customer dissatisfaction. He to a fa ult suggests that muchover 5% of the unhappy customers give up to the service providers, thus making it effortful for the service providers to address the issue. What intrigues make up much is that the 95% of the customers, who do not complain, talk negatively about the service to their acquaintances. . However, when dissatisfied customers do complain and the problem is resolved to their satisfaction, they atomic number 18 very likely to return. The reasons for dissatisfaction may start across long queues at check-in or booking counter, unwieldy force-out, unsafe website and so on and so forth.Bitner et al. (2000) suggests that in the airline industry core factors vary from friendliness of the staff, know directge about the service, efficiency, and grapheme service, sanitary and safe surround. plainly to create disaccordentiation from their competitors these organisations, provide added or enhancing factors and those implicate concierge service, reservations, officein g by host, mill around/ hotel facilities for delayed evasion of stairss and so on and so forth. Today in the airline industry, companies do offer most of these features besides it is noted that the cost increases for a more pleasurable live. For warning, an telephone line India flight provides cheaper flights just barely meeting the core features, unless Emirates for the same road provides pricy flights with a varied extended factors. What companies like atmosphere India could do to provide a better experience would be to remove/ centre the unsatisfactory experience (upgrading a customer, complimentary meal in elusion of delayed flights, deft personnel to deal with unhappy customers).2.2 Shostacks frameworksBased on Shostacks Continuum, the package tours (Flights+ Hotels) offered by most airlines, form the intangible end, even though there are tangible ends to be considered. Shostack (1977) suggested that there is no agent known as a pure service and that there is p erpetually a continuum betwixt the tangible dominant practiceds and intangible dominant services. The airline industry, the tangible elements include the interiors of the flight, food, seat and also the overall graphic tenacity from buying tickets to the attendants uniforms (Shostack 1977). Even though the airline industry is intangible dominant, different market segments gestate different elements to make it an experience for them.Say for example in the lesson of Virgin airlines they read three tailored locomotion experience for three different markets.In the circumstance of students/ backpackers or during foul economic conditions, it is elements such that reaching from one destination to the some other or a no frills flight would be of emphasis on the atomic core (cheap flights+hostels, bed and breakfast)In the berth of business excursioners, it would be entry frequency along with comfort would be most important (a comfortable exit+ hotel with internet, office facili ties).Lastly for tourists (with families), it would be unison of in-flight and post-flight services (hotels) that would be of paramount importance (Comfortable flight- barely not in any case expensive+hotel near a tourist destination)But in the case of tangible elements the various markets assume differently. For example, for flights like Air Asia, which offers low cost air travel, the travelers are not provided plastered tangible elements such as food and drink in-flight. But these airlines just cater to travelers who wish to travel on a check budget.So the challenge for other unanimouss is to create an experience for each market, so that it would form an experience for each of them as each of their postulate differ from other. The challenge is to understand how consumers perceive a certain service and what as a firm they should do to manage and meet the expectations (Lovelock and Gummesson, 2004).Shostack (1977) defined a modelling that was termed as total market entity wh ere she argues that a change in one element may change the entity on a all told or partial basis. Say for example in an air travel there, it is a unison of both tangible as good as intangible factors. And some tangible factors just act as service elements/evidence.1. Peripheral evidence this refers to a tangible factor, which no or flyspeck value if it exists on its own. It is part of the service or is required to experience a service. For example a flight ticket, does not mean anything on its own, but is essential for completion of a service.2. Essential evidence Consumers do not own these and rat exist on its own as its ut more often than not dominant in its impact on a service purchase. An example of an essential element provided by Shostack is the DC-10 aircraft, which was involved in a few crashes in the 1970s. But even though all the issues were resolved, US refused to fly in a DC-10 aircraft that eventually take to scrapping them off completely.This model however does n ot show how a service functions and this is explained using another model by Shostack- attend to Blueprinting. It has been developed to deal with processed, acts and flows and in (fig 4), a blueprint for airline travel has been presented under how airlines try to reduce variability2.3 good experienceEvery time a customer is interacting or having a service encounter, a service experience is taking place and because simultaneous production and consumption takes place, the customer mostly experiences the service in the firms forcible surroundings (Groove and Risk, 2001). In some cases the level of involvements between the customer and the employees of the organisation is high and in some cases very low and some with no involvement at all. And the disposition of physical environs depends on the character of service as well as service experience. What the firms aim to do is make profit while creating a satisfactory or comical service experience.What determines an experience is als o the nature of the physical space. For a high involvement case, (for example, self check-in, lounge services, website) customer satisfaction can be enhanced, by creative use of physical practice (Bitner 1992). In the blink of an eye case, where the employees play a major role, and where customers afford less or no contact (cock-pit, cargo personnel) with the service personnel, the physical environment should be to motivate, come across the employees, as no or few customers pass on experience that. In the last case, where there both customers and employees interact in the same environment at the same level (counter check-in), the servicescape is the most complex as it una marably to appeal to the customers but at the same time be expeditiously motivating the employees (for example, at a check-in the counter needs to pick up clean and efficient to the customers, but also comfortable for the employee-nice seats, environment). Thus the environment should be neutral to appeal to both customers and employees.Other than the physical environment, it is the customer to whom the service is delivered is what is important. Like mentioned earlier, different customer have different needs and it varies based on their gender, age, social status and so on and so forth. For example, a customers needs travelling on business class will vary from that from one travelling in economy class and the service provider needs to meet each of their needs. What normally happens in the airline industry is that the customer travelling on business class is more looked subsequently than the economy class traveller. This would mean that it creates a negative service experience for the traveller.2.4 Service graphic symbolService experience is defined by the quality of service provided by the airlines.Based on this service quality, a conceptual model by (Parasuraman et.al 1988), defines the gap between what the customers expect and what is provided. From this model, it can suggested th at to create a better service encounter for the customersGap1This represents the void between the perceptions and expectations between the marketer and the consumer. The key is to understand what the customer expects rather than forming a perception of what they might want. Parasuraman et al. (1988) suggests that this void can be filled if capable market research is done prior to offering the service. For example, if an airline firm is to find out what a particular locate market is looking for for, before offering enhanced factors.Gap 2This refers to the void between what the guild perceives and the service quality specs. For example, low-budget flights like Air Asia encourage that they provide in-flight entertainment, but the quality is limited (all passengers view the same create mentally on a single television set)Gap 3This is the void between quality specification and service delivery. For example in the case of few Asian airline companies, the quality of service provided would be certain by the home nation. But outside the home nation, the quality specification may not be on par with what the customers expect. For example, in India, Kingfisher airlines claims to provide world class travel experience to its customers. Even though the service provided is perceived to be on par with top airlines in India, the quality of service offered is nowhere close to airlines such as Singapore Airlines, Siamese Airways etc.Gap 4This relates to the void between the standard of quality promised and the service delivered. Thai airways has positioned itself has an airline that brings together quality as well as hospitability (Travel with the Thai touch, Smooth as Silk). But what raised issues and led to negative publicity was when their personnel were found to be rude to passengers. This led to a completely contradicting stunt man of what they claim to be to what is delivered.2.5 DifferentiationTo create a differentiation from their competitors, airline firms use the Porters generic wine strategy Model (1980)Cost DifferentiationCost Leadership( zero(prenominal)Frills)Rynair, EasyJet, AirAsiaDifferentiation(Premium equipment casualty for quality quality)Singapore Airlines, EmiratesCost guidance(Differentiation only for a particular rear assort)Kingfisher Red-low cost Business travelDifferentiation Focus(Premium price for maestro quality for a small target group)Concorde flights used by BA, Air FranceA380 flights-Singapore airlines, Qantas, Air FranceScopeNarrow BroadFig 1 Porters Generic Model for the airline industryAirlines Pursuing cost lead schemeAirlines prose excu put one over an integrated outline (some stuck in between)Airlines unable to achieve either a cost leadership or differentiation strategyAirlines pursuing a differentiation strategy elevated FaresLow FaresLow Service Level High Service LevelFig 2 Airlines established Business strategies (adapted from Dostaler, Flouris 2004)Using Fig 1 and fig 2, Porters Generic str ategy can be explained asCost LeadershipCost leadership refers to gaining competitive advantage and giving your company an edge over the others. This can be attained in two ways Firstly change magnitude profits by reducing costs. Secondly increasing market theatrical role by charging low prices.Airlines such as Air Asian, Rynair have chose to cut costs to a minimum, thus enabling to charge the customers low prices. This tactical maneuver helped them gain market share, and also have all their flights fully booked, which leads to win reduction in cost. But where they did compromise in on the in-flight and other services. For example, these airlines do not even provide water in the flight one is expected to buy them, free seating etc helps them price their tickets low. littler airlines even provide just few routes at cheaper prices than their international rivals.But the risk if when competitors follow suit and hence firms should look for means to interminably reduce costs.Differe ntiation StrategyThis involves making ones service different and more unique. This could be achieved by airlines in terms of their air bed sheet types, costs, brand image etc. Singapore Airlines, Emirates have portrayed this image of making travel an experience with their superior quality. But as Porter (1980) argues that for a company using differentiation strategy, they would incur additional costs for research, development, innovation as well as advertising, which are normally recovered from the customers.Focus StrategyAirlines using focus strategy focus on a quoin market and this could be a unique low cost airline for a target group or high-end price for another target group. For example, the A380 airplanes used by Singapore Airlines and Emirates charge a premium price of 3600 for Business Class travel on Emirates from Heathrow to Dubai. So this is for the target group who like to travel with a lap of luxury with pool tables, spas, Internet, lounge area etc during their flight of less than 7 hours.There is very less competition in markets where focus strategies are used. But the risk is when the ceding back will disappear and when the business and customer preferences change over time.2.6 divergence OF SERVICESOne other feature of services merchandising is its heterogynous nature and organisations strive to reduce the variability that would lead to building a significant brand. The aim is to communicate a persistent image and message to its customers at different places and different times. Service Variability can take place in different ways.Variations in external Conditions -weather, crowding and differences in service locationsVariations in service delivery- customer interactions with employeesVariations in customer perception-customers perception of a service may differ from place to place and with time tooThe figure below shows the causes and consequences of service variability in any organisation.High Level of perceived risk for buyersDifficulty in presenting an image of ordered qualityDifficulty in developing strong brands run are produced liveOften leads to no chance to correct mistakes before consumptionOften reliant on imperfect adult male inputsMay be difficult to blueprint the serviceVariability of ServiceFig 3 Cause and Consequences of Service VariabilityThe issue of variability leads to difficulty in attaining a uniform output in particular in services that require a lot of human interaction. Say for example, we still have not developed technology to eliminate the need of humans completely. Airlines do not use robots to replace the human cabin crews as one human interaction is essential and secondly some technologies are too expensive to adopt suggest that behavior varies not only amongst different employees but also amongst the same employee on different days and with different customers (Lovelock 1983). And even though scripting and blueprinting is used to reduce variability, it still has its demerits.To provi de a good service as well create an experience for the customer and to chequer reduced service variability, the airlines use the following techniques1. Employee TrainingAs employees are part of any service provided, most airline firms have a rigorous selection and cultivation process. For example, Singapore Airlines hires staff who fit in with the Singapore Girl image and portray the same values as the firm does. Firms who invest a lot in selection and training process mostly offer higher quality service than others. Air India does not provide constant training to its staff and hence issues vacate when the staffs do not communicate a coherent message. Staff hire should be able to empathise with the customers as well as trained to deal with different types of unsatisfied customers. Also it is taken care to see that the staff matches the cultural differences of the country they are based in.2. ScriptingMost airlines have pre-determined scripts for each type of service encounter, w hich consists of either verbal responses or series of actions. The usage of verbal scripts is common while booking a ticket or enquiring about a service. Like for example, when a customer calls a call centre for a query, they normally have a script, which goes byGood morning, Thank you for calling Malaysian Airlines. My name is Ben and how may I help you?Similarly a written message is used after a call or as an apology. In the case of scripted actions, it would how all cabin crews, follow the same actions once passengers are in the flight.All messages and actions are scripted so as to ensure a coherent image, message as well to ensure that the information is communicated at all times. But this has its limitations in terms of how at times personnel feel restricted from offering superior service based on their judgement.3. BlueprintingShostack (1982) suggested that blueprinting allows quantitative description of critical service elements, such as tenacious sequences of actions and p rocesses, time that happen at a place of service delivery. It also defines actions for the place of interaction ( previous-line) as well for events taking place beyond the line of visibility. (Zeithaml, Bitner et al. 2006) define service blueprinting as a tool for at the same time depicting the service process, the points of customer contact, and the evidence of the service from the customers point of view. With this description, the authors emphasise the different systemic layers overlapping in a service, from the layer of customer interaction and physical evidence to the layer of internal interaction deep low-spirited the service production process. The figure 4 below shows a service blueprinting for an air travel.Fig 4 Blueprinting for Air TravelAirport outside ParkingBaggage claimSeatsGift shops. ToiletsTerminal viands/beverageMagazinesAirplaneSeatsGift shops. ToiletsTerminalX-ray machineMetal detectorConveyor smashComputer/ credit mailingDeskTicketTerminalAirport exterior ParkingOnline/ websiteMechanic apply planeMetal detectorConveyor beltConveyor beltRemove bagsPilotServe customerGreet customer circularise off customerLoad bags on planeCheck passengerGreet take bagsRegistrationLeave airportPick up luggageImmigrationExit planeFlyBoard planeCheck inWait at gateSecurity checkArrive at airportReservationSupport Process finish off PersonBackstage Onstage customer sensible Evidence4. Quality AuditsThis is done to monitor the consistent quality provided by the airlines. Ground service analysis covers ticketing, check-in, security, lounges, boarding, departures, transfer, arrivals, and corporate branding. Onboard service analysis is a detailed and complex Qualitative evaluation of all product and service delivery elements core product standards, service efficiency and critical factors of staff service delivery. IATA carries out frequent safety audits.5. Quality AwardsAirlines often advertise the stages they have certain for their superior quality. Th ese awards are recognized worldwide and ensure that these airlines provide best travel experience for their travelers. For example, in 2009, Singapore Airlines was awarded the Airline of the Year award for its superior quality and safety. These information may not be too relevant for the customers, it just adds enough publicity to make consumers realize how one offers superior service than another thus prompting them to try these airlines on their next travel.6. Service RecoveryHowever thorough an airline is on its quality and service provided, there would still be occasional glitches. And a feature of any service is its heterogeneous nature, where each service encounter is different from another one. Berry (1995) argues that companies do not empower front line employees to solve problems immediately.A service failure does not automatically lead to a lost customer. But once an issue is identified, if it is dealt with speedily and the honest actions are taken to ensure that the c ustomer is satisfied, then it mostly would not lead to a lost customer. But in case of a major issue, the customer might seek financial compensation.7. Customer RetentionParasuraman et al. (1985) suggests that even though there is a positive affinity between service quality and customer loyalty, above a certain level, additional improvements in quality do not have further impact on customer retention as there is no point in increasing quality costs if it cannot be passed down to the customers.The variability of services poses a high threat when it comes to brand building, but since humans are an integral part and cannot be eliminated completely, steps are taken to provide better training, motivate and encourage employees as they all form part of the service encounter. As Lovelock and Gummesson (2004) suggests that performance is less unsettled when machine-intensive technologies are used.So as to reduce the consequences of service variability, airline industries have adopted the u se of technology so as to reduce if not eliminate the factor of human error. These includeUse of computerised system kinda of telephone operators.Use of self-check in Kiosks at airports, mobile check-in (SSTs-Self Service Terminals)Using website to book or amend tickets.The other dimension of variability is the extent to which a service can be altered to meet the demand of individual customers. Services that are manufactured for a big(p) number of customers are difficult to be customised like in the case of air travel, but can be customised in particular areas. For pillowcase scheduled airline service is highly standardized in design but offers modules for customizing specific elements, such as alternative schedules service to or from different airports in the same metropolitan area different classes and prices seat location and a selection of drinks, food, and other amenities.But with the evolution of technology, industries especially the airlines are adopting technology as far as possible as with rising competition there is no room for error. 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