Production And Consumption Inseparability

Production And Consumption Inse rack upabilityInseparability of production and consumption refers to the concepts of moveion and divine overhaul encounter. The cover of simultaneous production and consumption involves the presence of guests, the clients role as a co-producer, client-employee and node-customer interactions that makes it unique from a product (Shostack 1977). Researchers often refer to the customers as partial employees in a function setting. During co-production, customer involves himself in self- function (self check-in), using technology and machines offered by the helping provider ( airway backups).2.1 Service encountersDuring simultaneous production and consumption, it is the service encounters, that ar the critical moments of truth in which customer often develops a perception/ attitude about the business (Bitner et al. 2000) and performs a differentiation from other competitors. In the airline indus sieve, these service encounters are on which the org anisation, either thrives or dies based on customers evaluation of their service. And the successful organisations consent it a step further to enhance their pump or essential features with extended or enhanced features.Service encounters can take plant crossways a range from the traditional face-to-face (check-in, cabin crew), teleph integrity (telephonic check in, booking slates), and lastly through the internet (web check-in, booking tickets) and at every point the airline effort thrives to make it easier and comfortable (less(prenominal) epoch consuming) for the customer. A successful organisation is which that exceeds the customers expectations (enhancing features) and non only if meeting their expectations (core features). But Harris et al. (2003) suggests that if the core features are not met by the airline industry, it is that leads to customer dissatisfaction. He in any case suggests that only 5% of the unhappy customers complain to the service providers, thus maki ng it hard-fought for the service providers to address the issue. What intrigues veritable(a) 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 are very identi diagnosey to return. The reasons for dissatisfaction may convert across long queues at check-in or booking counter, incompetent personnel, unsafe website and so on and so forth.Bitner et al. (2000) suggests that in the airline industry core factors deepen from friendliness of the staff, knowledge about the service, efficiency, and grapheme service, sanitary and safe environment. But to create differentiation from their competitors these organisations, provide added or enhancing factors and those include concierge service, reservations, seating by host, loaf/ hotel facilities for delayed flights and so on and so forth. Today in the airline indust ry, companies do offer most of these features but it is noted that the cost increases for a more pleasurable expect got. For example, an Air India flight provides cheaper flights just barely meeting the core features, but Emirates for the same route provides expensive flights with a varied extended factors. What companies like Air India could do to provide a better experience would be to remove/ reduce the unsatisfactory experience (upgrading a customer, complimentary meal in case of delayed flights, trained personnel to deal with unhappy customers).2.2 Shostacks ModelsBased 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 element known as a pure service and that there is always a continuum amid the tangible dominant goods and intangible dominant run. The airline industry, the tangible elements include the interiors of the flight, food, seat and also the overall graphic continuity from debaseing tickets to the attendants uniforms (Shostack 1977). regular(a) though the airline industry is intangible dominant, different market segments require different elements to make it an experience for them.Say for example in the case of unadulterated airlines they have three tailored traveling experience for three different markets.In the case of students/ backpackers or during bad economic conditions, it is elements much(prenominal) that reaching from one destination to the other or a no frills flight would be of emphasis on the nuclear core (cheap flights+hostels, bed and breakfast)In the case of business travelers, it would be schedule frequency along with comfort would be most important (a comfortable travel+ hotel with internet, office facilities).Lastly for tourists (with families), it would be unison of in-flight and post-flight services (hotels) that would be of paramount importance (Comfortable fligh t-but not as healthful expensive+hotel near a tourist destination)But in the case of tangible elements the various markets bring differently. For example, for flights like Air Asia, which offers low cost air travel, the travelers are not provided certain tangible elements such as food and drink in-flight. But these airlines just cater to travelers who wish to travel on a limited budget.So the challenge for other firms is to create an experience for each market, so that it would form an experience for each of them as each of their require differ from another. 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 model that was termed as total market entity where she argues that a tilt in one element may change the entity on a whole or partial basis. Say for example in an air travel there, it is a unison of both tangible as well as intang ible factors. And some tangible factors just act as service elements/evidence.1. Peripheral evidence this refers to a tangible factor, which no or little 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 can exist on its own as its extremely 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 led to scrapping them off completely.This model however does not march how a service functions and this is explained using another model by Shostack-Service Blueprinting. It has been developed to deal with processed, acts and flows and in (fig 4), a blueprint for airli ne travel has been presented under how airlines try to reduce variability2.3 Service experienceEvery clock a customer is interacting or having a service encounter, a service experience is victorious place and because simultaneous production and consumption takes place, the customer mostly experiences the service in the firms physical surroundings (Groove and Risk, 2001). In some cases the level of involvements amongst 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 personality of physical environment depends on the nature of service as well as service experience. What the firms aim to do is make profit while creating a satisfactory or unique service experience.What determines an experience is also 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 original use of physical design (Bitner 19 92). In the second case, where the employees play a study role, and where customers have less or no contact (cock-pit, cargo personnel) with the service personnel, the physical environment should be to motivate, satisfy the employees, as no or few customers will 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 needs to appeal to the customers but at the same time be efficiently motivating the employees (for example, at a check-in the counter needs to look clean and efficient to the customers, but also comfortable for the employee-nice seats, environment). olibanum 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 gen der, 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 after than the economy class traveller. This would mean that it creates a negative service experience for the traveller.2.4 Service stepService 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 cattle ranch between what the customers expect and what is provided. From this model, it can suggested that 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 percept ion of what they might want. Parasuraman et al. (1988) suggests that this void can be filled if sufficient market research is done prior to offering the service. For example, if an airline firm is to find out what a particular target market is looking for, before offering enhanced factors.Gap 2This refers to the void between what the company perceives and the service quality specifications. For example, low-budget flights like Air Asia advertise that they provide in-flight entertainment, but the quality is limited (all passengers view the same programme on a single television set)Gap 3This is the void between quality specification and service delivery. For example in the case of few Asiatic airline companies, the quality of service provided would be accepted 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 cust omers. 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 capital of Singapore Airlines, Thai 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 embossed issues and led to negative publicity was when their personnel were found to be rude to passengers. This led to a completely contradicting image 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 system Model (1980) apostrophize DifferentiationCost Leadership(No Frills)Rynair, EasyJet, AirAsiaDifferentiation(Premium price for superior quality)Singapore Airlines, EmiratesCost localize(Differentiation only for a p articular target group)Kingfisher Red-low cost Business travelDifferentiation Focus(Premium price for superior quality for a small target group)Concorde flights used by BA, Air FranceA380 flights-Singapore airlines, Qantas, Air FranceScopeNarrow Broad human body 1 Porters Generic Model for the airline industryAirlines Pursuing cost leadership strategyAirlines pursuing an integrated strategy (some stuck in between)Airlines unable to achieve either a cost leadership or differentiation strategyAirlines pursuing a differentiation strategyHigh FaresLow FaresLow Service take High Service LevelFig 2 Airlines Realized Business strategies (adapted from Dostaler, Flouris 2004)Using Fig 1 and fig 2, Porters Generic strategy 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 increase profits by reducing be. Secondly increasing market share by charging low prices.Air lines such as Air Asian, Rynair have chose to cut costs to a minimum, thus enabling to charge the customers low prices. This tactic helped them gain market share, and also have all their flights fully booked, which leads to further 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. Smaller airlines even provide just few routes at cheaper prices than their international rivals.But the risk if when competitors follow suit and so firms should look for means to continuously reduce costs.Differentiation StrategyThis involves making ones service different and more unique. This could be achieved by airlines in name of their mainsheetr 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) ar gues 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 niche 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 discriminate 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 bailiwick 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 niche will disappear and when the business and customer preferences change over time.2.6 VARIABILITY OF SERVICESOne other feature of services marketing is its heterogynous nature a nd organisations strive to reduce the variability that would lead to construct a strong 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 consistent qualityDifficulty in developing strong brandsServices are produced live very much leads to no chance to correct mistakes before consumptionOften reliant on imperfect human inputsMay be difficult to blueprint the serviceVariability of ServiceFig 3 Cause and Consequences of Servi ce 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 mankind 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 provide a good service as well create an experience for the customer and to ensure reduced service variability, the airlines use the following techniques1. Employee TrainingAs employees are part of any service provided, most airline firms have a rigorous survival of the fittest and schooling process. For exampl e, 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 arise when the staffs do not communicate a coherent message. Staff hired 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. Scripting most(prenominal) airlines have pre-determined scripts for each type of service encounter, which 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 by secure morning, Thank y ou 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 logical sequences of actions and processes, time that happen at a place of service delivery. It also defines actions for the place of interaction ( forepart-line) as well for events taking place beyond the line of visibility. (Zeithaml, Bitner et al. 2006) define service blueprinting as a tool for simultaneously depictin g 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 accentuate the different systemic layers overlapping in a service, from the layer of customer interaction and physical evidence to the layer of internal interaction within the service production process. The figure 4 below shows a service blueprinting for an air travel.Fig 4 Blueprinting for Air TravelAirport exterior Parking luggage claimSeatsGift shops. ToiletsTerminalFood/beverageMagazinesAirplaneSeatsGift shops. ToiletsTerminalX-ray machineMetal detector conveyer beltComputer/ credit cardDeskTicketTerminalAirport exterior ParkingOnline/ websiteMechanicCheck planeMetal detector conveyer belt beltConveyor beltRemove bagsPilotServe customerGreet customerSend off customerLoad bags on planeCheck PassengerGreet take bagsRegistrationLeave airportPick up luggageImmigrationExit planeFly senesce planeCheck inWait at gateSecurity chec kArrive at airportReservationSupport Process rival PersonBackstage OnstageCustomerPhysical Evidence4. Quality AuditsThis is done to monitor the consistent quality provided by the airlines. Ground service compendium 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 awards they have received for their superior quality. These awards are recognise worldwide and ensure that these airlines provide world-class 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 incite 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 episodic 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 promptly and the sort out actions are taken to ensure that the customer 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 relationship between service quality and customer loyalty, above a cer tain level, additional improvements in quality do not have further impact on customer computer memory 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 nemesis 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 variable when machine-intensive technologies are used.So as to reduce the consequences of service variability, airline industries have adopted the use of technology so as to reduce if not eliminate the factor of human error. These includeUse of computerised system instead of phone 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 variabili ty is the extent to which a service can be altered to meet the demand of individual customers. Services that are manufactured for a large number of customers are difficult to be customised like in the case of air travel, but can be customised in particular areas. For Example 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 likely as with rising competition there is no room for error. 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