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MKT203 Services Marketing

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MKT203 Services Marketing

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Course Code: MKT203
University: Charles Darwin University

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Country: Australia

you are required to choose a recent service failure experience you have encountered
The convenience that the emerging cab service companies have added to everyone’s lives is immense. For me, these cab services are very beneficial during the weekends when I go partying with my friends. I prefer to take the cab ride as I don’t drive after drinking. Now, a few days back, I took a cab ride at midnight from the Retro Nightclub on Sussex Street to my home in the Bondi, Sydney. I booked a cab through the Ingogo services who promises a fixed fare to ride. The cab driver arrived 20 minutes late. When I get into the cab it was stinking and when I asked the driver to do, something about it he ignored me. I continued with my work on my mobile and then suddenly, I hear some erotic noises. I looked up at the driver and he was watching a porn on his mobile at full volume. I was shocked at this behavior of the driver. I asked him to turn it off, but he didn’t listen. He did lower down the volume, but he continued watching. Throughout my trip, I was uncomfortable and could not imagine the audacity of this person who was watching an adult video in the presence of a customer. When I arrived at my place the charges that were originally $30 were escalated to $50. When I asked the driver about this hike, he asked me, not to waste his time and shouted at me. I did not want to create a scene in the middle of the night so, I handed him the money and left. I registered a complaint on their twitter account, but they did not reply. I called their customer care and they kept me on hold for fifteen minutes before ending my call. 
Analysis of the Incident
Ingogo is an organization that provides cab services at a fixed rate. The incident that happened to me did not justify the company’s tagline of providing cab services at a fixed rate. There is a decorum which has to be maintained in the presence of a customer and in handling the customer. The behavior of the driver is completely unacceptable and this displays the poor workforce that the organization Ingogo has. According to a popular service theory, that is, the GAP theory, the gaps that have been recognized in this complete incident are delivery gap and communication gap (Bai and Wang, 2012). The delivery gap has been identified due to the promises that the organization made to the customers, to provide a safe ride in fixed wages. The driver made me uncomfortable due to his obnoxious activity and furthermore the organization charged more than the expected fare. The communication gap has been identified in the reaction of the organization to the complete incident. The organization did not revert back to make an apology or to just notify the victim that this type of behavior will not be tolerated. Both these gaps clearly state that the organization requires some major changes that are important for delivering a good customer experience (Bashir, Yousaf and Verma, 2016).
In this complete incident, the instrumental complaint has been identified and in this incident I was the high roller customer. The instrumental complaint is identified with the approach that such situations should never occur again with other customers and the organization should improve their standard of quality. The instrumental complaint required to be taken into account and the organization has to recognize the root cause of the problem and make the necessary improvements. The root cause of the incident is the unskilled and mannerless staff that the organization has hired. The attitude of the organization is also very irresponsible. The driver has the audacity to watch an explosive video in front of the customer, says a lot about the values and beliefs that are spread in the organization. The fact that the organization completely ignored the complaint that was pertaining to such a serious matter, displays that the organization who is a service provider company, does not care about their customers (Belwal, Minhans and Al-Balushi, 2013).
For knowing the value of the service quality the SERVQUAL measuring scale is utilized in this incident. The measuring scale SERVQUAL has five components according to which the incident will be measured. This will provide with the information that will be analyzed to know that the company has been able to fulfill the customer expectations or not. This will also help in understanding the gaps in the services of the organization- .

SERVQUAL Components












Image source: (www.marketingstudyguide.com)
Service Recovery Plan For Ingogo 
According to many studies, this has been known that if an organization who fails to fulfill the customer expectations and disappoints the customer. But after that the organization works on its flaws and deliver good customer experience, then the customer will rank this organization more in comparison to the organization who will deliver good customer experience at first attempt. The organization Ingogo is need of a recovery plan and this will require examination of certain processes. They are-

Problem Identification

It is essential to examine the root cause of the issues in the organization. Service failure identification can be broadly divided into four elements that are, failure of customer needs and requests, uncertain actions of the employee, a system failure of service delivery and an aggressive customer. The key issue that has been identified in the organization Ingogo is the unskilled staff and the lack of knowledge about customer experience. The inadequate and unethical behavior of the staff and the especially the driver led to lower customer expectations (Carpio, 2015).

Service Failure Attribute

The root issue that id identified in the organization is the untrained and less knowledgeable staff, who do not have the skills to handle the customer and deliver them quality services. The service failure attribution is conducted in the following ways-

Locus (Who is really responsible?)

The key person who should be held responsible for the unethical and the indecent behavior in this incidence is the organization. The organization has not hired a trained staff and neither have they given a proper training to the staff, who knows how to handle a customer and the basic norms that have to be followed by every staff towards the customers (Yang, Yang and Wong, 2012).

Stability (stable or unstable?)

The chances of such incidence to repeat with other customer are very high, if the organization does not take actions instantly. The entire staff has to get trained and this is an urgent practice in the organization. The organization also has to become active towards addressing the complaints of the customers, timely.

Controllability (can or can’t?)

The issue can be rectified and the situation can be brought under control, if Ingogo conducts the essential actions instantly and implicate certain alteration in the working style of the organization then there are chances of improvement (Jacobsson and Wilson, 2012).

Recovery Strategy Selection

In the organization Ingogo, after analyzing the complete situation and the current state of the organization the best recovery strategy that should be utilized is the restoration recovery strategy. This strategy will help the organization to work on their flaws by analyzing all the process of the organization and executing improvements wherever needed. The strategy will also help in improving the main factors that are involved in the delivery of services to the customers. All these practices, will help the organization to build a stronger and better image of the organization in the market (Wong, Szeto and Wong, 2014).

Implementation & Evaluation of Recovery Strategy

The restoration recovery strategy also requires the organization Ingogo to implement some changes and to evaluate them at regular intervals. They are-

Ingogo, firstly, has to teach their drivers about the decorum which has to be followed around the customers and with the customers. Explosive activities and unethical activities should be conducted with the customers (Milisavljevic, 2012).
The Ingogo organization is also in need of new staff that has high skills and techniques that helps in delivering high standards of customer expectations.
The organization has to become more reliable in the opinion of the customer and have to build a strong bond with the customers. This can be achieved by answering the complaints of the customers and building a personal relationship with each customer (Marinkovic, 2013).
All these changes have to be implicated and this also requires regular monitoring and evaluation. The performance evaluation of the driver and the staff can be conducted through staff assessment and through the surveys which should be conducted with the customer, knowing about the service quality and any other suggestions to fulfill their needs and demands.

Recommendations for Attaining Customer Loyalty at Ingogo
The customer loyalty is crucial for all the organization and for every organization it is more important than the retention rate. The customer loyalty is achieved by the organization through very good customer experience and this bond is built on emotions and strong conviction (Tran et al., 2016). The benefits of customer loyalty for an organization is that the loyal customers are the real brand ambassadors of the organization who provide the organization with a positive image through good mouth marketing. The loyal customers helps in building a strong image of the organization in the market. The Ingogo has to implement the following tactics for gaining loyal customers for the organization. They are-

The organization have to create and become more credible in the market and for that fulfilling, the customer’s expectation maximum times is paramount.
The organization should try empathy with customers and should majorly analyze an issue from the opinion of the customer (Villalobos, 2016).
The organization has to deliver what they promise. If they are promising fixed fares then they should deliver that too. Also, the organization should never under deliver.
Customer loyalty can be gained only through customer happiness. Always end a relationship with a customer on a happy note (Vujic, Vasiljevic-Blagojevic and Peric, 2014). 

Service provider organizations should always aim at improving their relationship with the customer, by providing the services, which are more than what the organization promises to the customers. For the organization Ingogo, it is of utmost importance to get a new staff and train the older one. The second thing that the organization requires is improving their attitude towards handling the customers. Also, the proposed strategies and tactics should be implicated by the organization, which should be regularly monitored and changes should be made according to the needs. The organization should also implicate a continuous improvement plan that will help in upgrading the quality of their services.  
Bai, Z. and Wang, J. (2012). Equilibrium Model of Urban Taxi Service Network Based on the Integrated Service Modes. Advanced Engineering Forum, 5(1), pp.82-87.
Bashir, M., Yousaf, A. and Verma, R. (2016). Disruptive Business Model Innovation: How a Tech Firm is Changing the Traditional Taxi Service Industry. Indian Journal of Marketing, 46(4), p.49.
Belwal, R., Minhans, A. and Al-Balushi, A. (2013). Perception of Taxi Services in Oman–A Cross Examination of Citizens’ and Taxi Drivers’ Perception. Jurnal Teknologi, 65(3), pp.60-100.
Carpio, C. (2015). Trends in e-commerce for the food marketing system. CAB Reviews: Perspectives in Agriculture, Veterinary Science, Nutrition and Natural Resources, 10(023), pp.45-95.
Jacobsson, M. and Wilson, T. (2012). The Construction Company Through the Lens of Service Management: Inferences From Sweden. Services Marketing Quarterly, 33(2), pp.155-176.
Marinkovic, V. (2013). Do switching barriers of a service company moderate the relationship of perceived image and its antecedents?. Marketing, 44(1), pp.39-48.
Milisavljevic, M. (2012). Social responsibility of a company. Marketing, 43(3), pp.173-180.
Tran, T., Roswinanto, W., Yunus, E. and Kurnia, P. (2016). Compensatory Solution: Can it Save a Company from a Service Failure?. Services Marketing Quarterly, 37(2), pp.80-97.
Villalobos, A. (2016). Forming an end of life hospice/Pawspice service. CAB Reviews: Perspectives in Agriculture, Veterinary Science, Nutrition and Natural Resources, 11(031), pp.56-76.
Vujic, N., Vasiljevic-Blagojevic, M. and Peric, N. (2014). Analysis of the characteristics of taxi services as a prerequisite for their improvement. Marketing, 45(3), pp.231-239.
Wong, R., Szeto, W. and Wong, S. (2014). Bi-level decisions of vacant taxi drivers traveling towards taxi stands in customer-search: Modeling methodology and policy implications. Transport Policy, 33(3), pp.73-81.
Yang, T., Yang, H. and Wong, S. (2012). Taxi services with search frictions and congestion externalities. Journal of Advanced Transportation, 48(6), pp.575-587.
Image References
1.bp.blogspot.com. (2018). [online] Available at: https://1.bp.blogspot.com/-lKWubm7PytY/Wd3jKdnt-CI/AAAAAAAADPY/KC-FnGQpoA8RQvzGynQYvU6zcrOXdmxcQCLcBGAs/s1600/service-qualitymodelsppt-3-728.jpg [Accessed 17 Oct. 2018].
Image.slidesharecdn.com. (2018). [online] Available at: https://image.slidesharecdn.com/managing-customer-service-15784/95/managing-customer-service-54-728.jpg?cb=1179600191 [Accessed 17 Oct. 2018].
Ingogo.com.au. (2018). [online] Available at: https://www.ingogo.com.au/hs-fs/hubfs/ingogo%20Logo%20200x200px.png?t=1534140708735&width=200&name=ingogo%20Logo%20200x200px.png [Accessed 17 Oct. 2018].
Marketingstudyguide.com. (2018). [online] Available at: https://www.marketingstudyguide.com/wp-content/uploads/2013/08/servqual-model1.png [Accessed 17 Oct. 2018].
Nicoms.co.uk. (2018). [online] Available at: https://www.nicoms.co.uk/wordpress/wp-content/uploads/2010/06/CRM.png [Accessed 17 Oct. 2018].

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