Theoretical Developments in Marketing †Free Samples to Students

Question: Discuss about the Theoretical Developments in Marketing. Answer: Introduction Firms that outsmart their rivals by providing improved or new services to consumers have been noted to keep their service development processes from being ad hoc. According to Anderson (2007), these client-focused firms tend to advance with particular intentions via a set of well-planned stages of service innovation. Primarily, these steps involve idea generation, instituting clear objectives, concept development, prototyping, customer feedback, service design, and launch. All these are comprised in a service blueprint. Shostack (2012) defines a service blueprint as a visual/pictorial, sequential representation of a clients experiences of some specific services or products alongside organizational processes that are designed to back the experiences. Service blueprints are beneficial in several ways. They provide an overview of a companys capabilities so that workers can associate what they do with the services perceived as an essential whole (Anderson, 2011). This encourages a client -oriented determination among workers (Chi Gursoy, 2009). They also help in the identification of a companys fail/weakness points which may be revamped for a companys quality improvement strategies (Bitner, 2011). Service blueprints provide the basis for detecting as well as evaluating a companys revenue, capital invested, and cost elements (Cardozo, 2005). This paper will, using the case of Virgin Australia (VA) airline, discuss the usage of service blueprints to help in meeting the objectives of a company. VA is the second largest airline in Australia after Qantas and the largest by definitions of the size of a fleet (Kim Lee, 2009). Currently headquartered in Bowen Hills in Brisbane, the company was co-founded by Brett Godfrey and Richardson Branson in 1999 (Gregson, Hampson, Junor, Fraser, Quinlan Williamson, 2015), having only two airplanes operating in one route (Fraser, Quinlan Williamson, 2017). The company, however, got empowered when Ansett Australia collapsed in 2001(Flie Kleinaltenkamp, 2004). Since then, the company has grown and is currently serving 29 cities within Australia, developing moment by moment. Owing to the large number of clients that the company had, VA increased their number of return flights from the initial 7 to 10 (Kim Lee, 2009) and also expanded their coverage to include all major Australian cities (Bitner, 2011). Not only did they increase their internal coverage, the company also expanded their flights to oversee countries, most specifically the United States. Initially, only the United and Qantas airlines competed for the US-Australia transpacific marketplace (Anderson, 2011). This extension helped the company to satisfy its ardent customers need who always had to use other airlines when travelling across the Pacific Ocean to the U.S. Another reason that catapulted VAs success is the taking over of the leadership of the company by John Borghetti after Brett Godfrey stepped down in 2010. The movement of Borghetti from Qantas to Virgin influenced the movement of other Qantas staff. With the expertise that was carried, VA got a new set of organizational restructuring and make-ups that significantly impacted on its service provision to its clients (Kim Lee, 2009). The arrival of a new CEO also led to the rebranding of the company, creating a new impression that served to entice more and more clients. See the appendix for the companys blueprint. Virgin Australias Blueprints Front and Back Stages An exchange between consumers and businesses has continually been an integral component of commerce in any business. Notwithstanding the type of products or services offered by an organization, communication between a business and its customers will occur inevitably (Cardozo, 2005).VA, as a commercial organization, uses a website to communicate and interface with their clients (Keiningham, Morgeson, Aksoy Williams, 2014). The website serves a wide range of customers since it allows for usage in different major world languages like English and Chinese. From a glance, the companys website is considerably straightforward. It clearly shows the major services provided by the company just immediately after accessing the websites homepage. This allows easy and quick access to the companys important information that may be needed by its potential clients (Chi Gursoy, 2009). Additionally, the website contains details of all the experiences that should be expected by the airlines clients, de stinations accessible by the airline, possible plans for appropriate bookings, and seasons that may be appropriate for clients. These help the airlines customers to make informed decisions regarding the kind of services and quality they can get from the company (Cunningham, Young Lee, 2009). Generally, the companys website is accessible, functional, informative, and there are quick responses to the companys clients since data can be accessed just at a press of button. Nevertheless, the problem regarding the companys front stage is that the features revealed on the companys website stop there. Whereas it may be the companys objective to achieve all that are shown on its website, some of the features shown on their website are not currently being offered by the company (Gregson et al., 2015). There are only data regarding the same but the activities are not taking place. The company can attract more clients if only they made the features on their website more flexible and interactive than they are (Anderson, 2011). Keiningham et al. (2014) note that a direct interaction (an audio visual connection between the clients and the company) with the companys clients can be significantly enticing to the clients. Nonetheless, it is regretted that they are missing in the companys website. Furthermore, while the interface offers a detailed description of the services offered by the airline and the regions within which the company operates, a potential custome r can still find it dull. This can make them turn to their main rival airline company, Qantas, to meet their needs. Apparently, the back stage of the VA forms the very detailed front stage of the company. The VA depends chiefly on the technical skills as well as the competence of its staff to meet the need of their. Within the work lines of the companys staff, repeatability or return of their clients for more accesses is significant to the companys revenue (Chi Gursoy, 2009). By returning for services, the company gets to appreciate that their services are esteemed by their clients (Cunningham et al., 2009). As such, the companys staff have to endeavor to offer proper and modern class of services that will appeal to their clients. According to Fraser et al. (2017), the return/repeatability of clients implies that the companys staff has effectively outsourced the operations displayed on the companys front stage, particularly the companys website. VAs airline company, thus, has a fit-with-reference both to the back stage and front stages proportions that are needed in their service provision processes and overall operations. Cardozo (2005) argues that the website interface gives the (potential) clients of the company ideas regarding the operations of the company, the services offered, and channels via which they can contact the company. It is, therefore, the duty of the companys back stage to meet the needs of the companys clients as well as keep them gratified since this will determine whether the clients will remain loyal to the company in the future as well. Virgin Australias Moments of Truth In recent times, companies with robust networks of frontline salespersons have concentrated significant amounts of money as well as effort toward retaining their present clients (Shostack, 2012). Regardless of whether a company has a physical or digital presence or even both, their contact centers/interfaces have to increasingly deal with their clients during crucial moments of truth and the manner in which this experience is perceived is critical for a companys brand reputation, profitability, and loyalty (Gregson et al., 2015). Moments of truth are defined as those exchanges when clients dedicate a significant quantity of energy so that they can meet a gratifying outcome (Fraser et al., 2017). VA has several moments of truth. First, the company has begun developing interactive interfaces through which they will be able to link up with their clients (Chi Gursoy, 2009). They are currently developing a customer-connect interface of their present contact centers as well as a newly developed reach-from-home platforms. These will help the company to service both its prospective as well as current clients within and without Australia (Keiningham et al., 2014). The platform will similarly allow the company to provide services within a period of 24/7. In their attempt to warrant the best client experience, Cunningham et al. (2009) point out that they are also implementing a hybrid technology of proactive website chat functions, non-static website forms, virtual assistance, distance agent option, as well as voice biometrics capabilities that will allow for customers auto recognition. Furthermore, the company was launched in August 2000. At this time, the company only operated between Sydney and Brisbane, serving only a limited number of clients. According to Shostack (2012), the timing of the entry ofVA into the Australian airplane industry was of a great fortune to the company since it was filling a vacuum that was left by the failed Ansett Australia in 2001. This gave VA a challenge of meeting the interests of Ansetts former customers. Australia aircrafts, thus, compelling the company to tirelessly work to advance their objectives. Another moment of truth for the VA is with regard to the taking over of the leadership of the company by John Borghetti after Brett Godfrey stepped down in 2010. The movement of Borghetti from Qantas (where he served as the executive general manager) to Virgin (as the CEO) influenced the movement of other Qantas staff. Having carried with them the expertise that they had to their new work place, the Virgin got a boost and provided both services that significantly convinced Virgins clients that Virgin was the best in the industry. The arrival of a new CEO also led to the rebranding of the company so that a new impression could be given to the companys clients. Virgin Australias Determinants of Satisfaction/Dissatisfaction The airline industry is among the competitive industries in the world. With its customers at the center of all their processes, the industry endeavors to improve the quality of the services and flight safety that they offer to their clients (Peyton, Pitts Kamery, 2003). Just like any other airline, the VA is equally affected by customer satisfaction/dissatisfaction as these have the effect of determining whether the company will retain its current customers and entice new clients or lose them (Anderson, 2007). Generally, there are ten quality values that influence peoples satisfaction/dissatisfaction behaviours: timelines, quality, value, ease of access, inter-departmental collaboration, efficiency, obligation to the clients, environment, innovation, and an organizations front-line service behaviours. The study that was conducted by Flie and Kleinaltenkamp (2004) offers a foundation for VAs customer satisfaction/dissatisfaction measurement by employing the gap between the organizations performance and the clients satisfaction. According to Oliver (1980), the factors that determine VAs satisfaction/dissatisfaction include: check-in procedures, ticketing and reservations, in-flight services, and luggage handling. Different people expect to be treated differently whenever they use the VA airlines. As aforementioned, the airline offers different travel classes in their airplanes. Travelers in VAs business class are often charged higher relative to those in the economy category. Peyton et al. (2003) posit that the highly-charged seats imply that the quality of check-in procedures, ticketing and reservations, in-flight services, and luggage handling offered to them should be higher than the ones offered to the economy class travelers. Ideally, clients who pay more expect higher/better s ervices. Using the gap model to explain this, Anderson (2007) points out that clients often compare their anticipations with the real performance offered by their service providers. This depends on whether the performances provided meet or surpass their anticipation (positive disconfirmation) or are below their anticipations (negative disconfirmation). The later leads to customers dissatisfaction while the former leads to their satisfaction. To meet these factors, the service quality gap model (SERVQUAL), a form of gap model, is used. The SERVQUAL plays two main roles: identification of gaps between a companys actual services that are offered at different stages of the companys service delivery and the customers expectation (Akan, 1995) and closing up the gaps as well as improving the customer service (Oliver, 1980). As such, by the SERVQUAL model, the service quality of VA can be determined by recognizing the breaches that exist between the companys clients anticipations of the type and qual ity of services offered to them and their views of the real VAs performance of services. VAs service quality measurement can be gauged on five different dimensions. First is tangibility. Tangibility connotes the physical features that are related to a service counter (Akan, 1995). The second dimension is reliability. This gauges a companys ability to provide dependable as well as accurate services, thereby, ensuring right and consistent performance of services (Lovelock, 2013). Reliability is significant since the higher the reliability of an airline, the more the number of travelers that it gets. The third dimension is empathy. Empathy refers to a companys readiness to provide all its customers with their individual services (Peyton et al., 2003). Assurance is another dimension that can be used to gauge VAs quality of service. Assurance denotes different characteristics that provide a companys clients with confidence (Flie Kleinaltenkamp, 2004). These may include a companys particular service, polite, knowledge, and trustworthy behaviours towards their employees (Akan, 1995). Lastly is responsiveness, which refers to a companys willingness to help its clients by offering them with efficient and fast service performances. Generally, studies have shown that companies that have greater/better tangibility, empathy, responsiveness, assurance, and reliability receive more travelers or have more customers (Oliver, 1980). As such, it will be in order for VA to meet all these dimensions of the SERVQUAL model for it to continue competing in the airline industry. A Service-Recovery Strategy Plan for Virgin Australia For the past years, VAs executives have associated their fluctuating performance in the industry with the type of service-recovery strategy that they have always employed to enhance their customer loyalty (Lovelock, 2013). However, for it to outperform Qantas, the company should reorganize its strategy towards winning the trust of its customers. They should employ a strategy that will encompass all activities surrounding the comfort of their clients right from baggage drop, check-in, plane conditions, boarding, in-flight services like entertainment, shopping, as well as foods and beverages till the point of disembarkation. The company should, therefore, have a service-recovery that: offers quick actions/responses to incidents, provides sufficient explanations underlying the occurrence of incidents, offers fair treatment to their passengers in cases of incidents, cultivates associations/closeness between the companys staff and the their passengers, enables VAs staff to learn from their past recovery experiences, and tracks complaints by their clients in the event of incidents. According to Lovelock (2013), this service-recovery model functions by improving peoples psychological behaviours between an organizations staff and customers. This is because the strategy is customer-focused and cost effective (Flie Kleinaltenkamp, 2004), having the objective of satisfying clients needs when airlines are on board, identifies as well as rectifies the challenges during incidents without negative implications (Lovelock, 2013). Conclusion To this end, it can be concluded that VA has a robust service blueprint. This is attributed to the fast success that it realized just after being launched in 1999. For the company to continue realizing its objectives, they must take into account factors, like check-in procedures, ticketing and reservations, in-flight services, and luggage handling for their customers. This will go a long way to affect customers satisfaction levels and behaviours. They can, therefore, remain competitive by employing the five discussed dimensions of the SERVQUAL gap model: reliability, responsiveness, empathy, tangibility, and assurance. Since the history of the airline has been characterized by fluctuations in their performance, this paper suggests that it should employ a service-recovery strategy that entails apologies, assistance, and compensation in cases of incidents. The company can apologize to its clients either orally or in written forms and their staff should offer assistance to their clients in locating their luggage within the airport preferably by the employment of modern technologies which will ensure operational efficiency of the services offered. Similarly, the company can offer compensations in any form to their customers for eventualities. References Akan, P. (1995). Dimensions of Service Quality: A Study in Istanbul. Managing Service Quality, 5(6), 39-43. Anderson, P. (2011). Consumer Dissatisfaction: The Effect of Disconfirmed Expectancy on Perceived Product Performance. Journal of Marketing Research, 10(2), 38-44. Anderson, R. E. (2007). Consumer dissatisfaction: The effect of disconfirmed expectancy on Perceived Product Performance. Journal of Marketing Research, 10(2), 38-44. Bitner, M. J. (2011). Evaluating Service Encounters: The Effects of Physical Surroundings and Employee Responses. Journal of Marketing,54(2), 69-82. Cardozo, R. (2005). An experimental Study of Customer Effort, Expectation, and Satisfaction. Journal of Marketing Research, 2(8), 244-249. Chi, C. G., Gursoy, D. (2009). Employee Satisfaction, Customer Satisfaction, and Financial Performance: An Empirical Examination. International Journal of Hospitality Management, 28(2), 245-253. Cunningham, L. F., Young, C. E., Lee, M. (2009). Customer Perceptions of Service Dimensions: American and Asian Perspectives. The Service industries Journal, 25(1), 43-59. Flie, S. Kleinaltenkamp, M. (2004). Blueprint the Service Company: Managing Service Processes Efficiently.Journal of Business Research,57(4), 392-404. Fraser, D., Quinlan, M., Williamson, A. (2017). Aust'n airline Virgin Australia plans new route to Hong Kong.Xinhua News Agency. Gregson, S., Hampson, I., Junor, A., Fraser, D., Quinlan, M., Williamson, A. (2015). Supply chains, maintenance and safety in the Australian airline industry.Journal of Industrial Relations,57(4), 604-623. Keiningham, T. L., Morgeson, F. V., Aksoy, L., Williams, L. (2014). Service Failure Severity, Customer Satisfaction, and Market Share: An Examination of the Airline industry. Journal of Service Research, 17(4), 415-431. Kim, Y. K., Lee, H. R. (2009). Passenger Complaints under Irregular Airline Conditions Cross-cultural Study. Journal of Air Transport Management, 15(6), 350-353. Lovelock, C. H. (2013). Managing Interactions between Operations and Marketing and their Impact on Customers, in Bowen, D.E. Chase, R.B. and Cummings, T.G. (eds),Service Management Effectiveness. Balancing Strategy, organization and Human Resources,San Francisco, 343-69. Oliver, R. (1980) Theoretical Bases of Consumer Satisfaction Research: Review, critique, and future direction. In C. Lamb P. Dunne (Eds), Theoretical Developments in marketing (pp.206-210). Chicago: American Marketing Association. Peyton, R. M., Pitts, S., Kamery, H. R. (2003). Consumer Satisfaction/Dissatisfaction (CS/D): A Review of the Literature Prior to the 1990s. Proceedings of the Academy of Organizational Culture, Communication and Conflict, 7(2), 42. 15. Shostack, G. L. (2012). Designing Services that Deliver",Harvard Business Review, 62(1), 133139.