Possession Processing

Honda Drive In Karachi Consumer Behaviour in Service Encounters of Honda Drive In

Service Flow chart at Honda Drive In
Arrival 1. Customer arrives at Honda drive-In Reception 2. 3. 4. 5. 6. Customer gets greeted on the door Customers parks his car in the repair shop Customer goes to the administration department to tell what type of service he wants Customer receptionist guides HIM/HER to the right person Customer speaks to the maintenance head and the maintenance head takes him to his car to have a look

Problem diagnosis 7. The maintenance head tells him the problem and the solution along with time that will be consumed and when will the car be ready for pick up Costing 8. Maintenance head guides him on the costing area where he is guided on the expenses and explained that payment is done at the pickup time

Waiting 9. The customer waits if the fault is small and will be repaired shortly and leaves if it will take more time 10. The customer returns at a prescribed date 11. Goes to the receptionist to call t he maintenance head he spoke to If Problem again detected 12. The maintenance head takes him to the car so that the customer can see progress. Handling Objections 13. If customer is dissatisfied then further time is given to resolve issues and the customer speaks with the manager of Honda drive in the mean time 14. The manager assures him of faultlessness and apologizes for the delay 15. The customer then leaves after being dealt by the manager 16. The customer returns to the repair shop and goes to the maintenance manager who take the customer to the car for progress update Departure from Facility: 17. After the progress update the customer pays cash to the counter 18. Receives the bill and greeting 19. The customer leaves Honda drive in The process Flow chart: LOW TO MEDIUM CONTACT SERVICE

Arrival

Reception

Problem Diagnosis

Costing

Waiting

If problem agian detected

Departure from facility

Handling objections

Service encounter: A period of time during which customers interact directly with a service. In this case of HONDA customer has low contact usually but can become medium if issues arise and the customers presence is necessary at the repair station

Moments of truth: Defining points in service delivery where customers interact with employees or equipment. In this case of HONDA the service is possession processing so typically the points where customers comes in contact with the employees would define the moments of truth which are. 1. 2. 3. 4. 5. Reception Problem diagnosis Costing Waiting and Handling objections

Critical incidents: specific encounters that result in especially satisfying/dissatisfying outcomes for either customers or service employees which in this case are 1. Problem diagnosis 2. Costing 3. Handling objections

The Purchase Process for Services Pre purchase Stage Awareness of need: Car accident or service required or routine maintenance Information search: Look for Authentic and branded service centers like Honda and Suzuki motors etc Evaluation of alternative service suppliers: Evaluation criteria is based on Quality of service , price and the time taken to do the service on the car

Service Encounter Stage Request service from chosen supplier: Visit the service center and talk to the receptionist Service delivery: Usually mechanics do it with a little involvement of customers

Post purchase Stage Evaluation of service performance: Checking for issues resolved Future intentions: If issues resolved and the service isnt over priced as well then customer intends returning otherwise the customer looks at the way objections were handled and decides his return.

Perceived Risks in Purchasing and Using Services Functional unsatisfactory performance outcomes : the issue due to which the car was given for service starts to come again after a short while. Financial monetary loss, unexpected extra costs: Over pricing or pricing for things not done

Temporal wasted time, delays lead to problems: Time wasted in waiting for turn and thus delays Physical personal injury, damage to possessions: the car to be serviced may be damaged by the mechanics working on it Psychological fears and negative emotions: The psychological fear which prevails is that one part will be serviced at the cost of the other one Social how others may think and react: The image of the car service provider is also a risk as others see it as a standard of living Sensory unwanted impacts to any of five senses: Open repair areas giving loud noises and bad aesthetic look of the dirty mechanic clothing

Factors that Influence Customer Expectations of Services

Desired Service Level: wished-for level of service quality is that the cars after the service procedure delivers good results for a considerable amount of time Adequate Service Level: Minimum service level is that the Cars performance stays at a level where the customer feels that below it his money was wasted. Predicted Service Level: service level that customer believes firm will actually deliver which in this case is that Honda shall exceed their expectations in terms of sustained service quality and the number of revisits needed in a year.

Zone of Tolerance: range within which customers are willing to accept variations in service delivery which in this case is the price through increasing or decreasing the service content and not quality. The service is high in experience attributes

Service Marketing , Delivery and Operating System for Honda Drive In

Designing the Communications Mix for Honda Drive IN

Advertising Implications for Overcoming Intangibility: Although Honda Drive doesnt have an advertisement because its a show room plus service station and also because its one of a kind since they are providing genuine Honda spare parts. However they can expect sales if they make an advertisement and this they can achieve by the following methods 1. 2. 3. 4. 5. 6. 7. 8. Document physical system capacity Present actual service delivery incident Present customer testimonials Cite independently audited performance Display typical customers benefiting Documentary of step-by-step process, Case history of what firm did for customer Narration of customers subjective experience

Strategies to Overcome Communication Challenges at Honda Drive In Facilitate customer involvement in production They take customers to the repair service point where the mechanics are operating in the Vehicle They ask customers to pin point additional problems after their diagnosis Help customers to evaluate service offerings They Provide an environment where the customers can easily share their feed back with the Manager Simulate or dampen demand to match capacity They offer discounts to stimulate demand They often inform their customers, who asking them telephonically ,about the service availability in case there is an overbooking or many customers at one time Promote contribution of service personnel They help the customers through their service guide who inform them correctly about the service

Planning of marketing communication at Honda

5 Ws planning model Who is our target audience: The target audience is user of Honda Motor vehicles What do we need to communicate and achieve: They aim at achieving potential sales customer of brand new Honda cars from their showroom thorough efficient service operation and resulting smooth performance of their cars How should we communicate this: their method is done thorough telemarketing and targeted mails at targeted audience Where should we communicate this: the communicate the above ideas usually at their show room and over the tele network. When do communications need to take place: They plan to communicate their service at the time of deal closing at the show room and after the customer see his serviced car ready for roll out.

Originating of Promotional messages at Honda Drive In:

Education and Promotion:

Their aim is to 1. Educated about the real benefits the customer can achieve 2. Educate about the new ways of utilizing the service 3. Move the quality to desired quality level

Marketing Mix at Honda Drive In

Personal selling Newspapers adds Email

Sales representatives

Promotional Leaflets

Mail at home addresses

telemarketing to selected customers

In store service guide

Conferences and seminars

Internet Promotions and web site:

They do not have one but can be used since advance booking of the orders can be done via the internet and promos can be displayed on the front page.

Improving Service Quality and Productivity

Perspectives on Service Quality There are five ways to change the perspective of the service quality which are through the following for Honda Drive in

Dimensions of Service Quality Tangibles: At Honda the tangibles can be improves by making the infrastructure more attractive rather than a glass building Reliability: Track record of Honda drive in is such that cases of success are there but some faults have occurred thus they should focus to make their standards more reoccurring and commitments more pursued Responsiveness: they can make forecasting systems for planning demand versus capacity and then intimating their customer about the service offering so that overbooking's and wait time is reduced Assurance: they can assure quality by indicting engineers and business graduates rather than just mechanics so that the customers know whos designing the service model. Their personnel need to be more courteous and abreast at answering the customer queries Empathy: they need to gather customer feedback and mold their service offerings according to that and they need to give personal attention to the customers

Seven Service Quality Gaps:

Based on the seven service quality gaps our recommendations would be as follows.

1. Knowledge gap: this gap at Honda drive in can be removed through distributing promotional and informational leaflets and making a video of what to expect 2. Standards gap : this can be addressed by pre informing the customers about the Quality and performance of the spare parts and the results to expect since the parts are branded 3. Delivery gap: this gap is almost null at Honda and only arises when a no attention was given to a certain area at the service operation stage resulting in lack of performance of a part on delivery. 4. Information communication gap : Platforms can be arranged to ensure there is top to bottom coherent communication 5. Perception Gap: the perception gap can be removed by promotional advertisements and messages 6. Interpretations Gap: analysis of the feedback from customers can ensure this gap removed 7. Service Gap: if all the above steps are followed then the Gap wont be there

Cause and Effect Chart for Poor Car service at Honda drive IN:
Below is the cause and effect fish bone diagram for the poor service quality at Honda drive in. the issues can be more but for simplicity and the purpose of explaining only the issues mentioned are less in number .

Analysis of Causes of Poor Service At Honda Drive In

Operations-driven vs. Customer-driven Actions to Improve Service Productivity

Operations-driven strategies

1. Control costs, reduce waste 2. Set productive capacity to match average demand 3. Automate labor tasks 4. Upgrade equipment and systems 5. Train employees 6. Leverage less-skilled employees through expert systems Customer-driven strategies
1. Change timing of customer demand 2. Involve customers more in production 3. Ask customers to use third parties

Measuring service Quality:

1. Gather feed back 2. Measure value delivered to profitability 3. Number of satisfied customer per month must be calculated and compare to the number of customer returning with complaints per month 4. Calculate the Return on Quality along with return on Investment

Six Sigma Methodology for improving PROCESS OR DESIGN OF HONDA DRIVE IN

Process improvement
Define Identify the problem Define requirements Set goals

Design improvement
Identify specific or broad problems Define goal/change vision Clarify scope & customer requirements Measure performance to requirements Gather process efficiency data Identify best practices Assess process design Refine requirements Design new process Implement new process, structures and systems Establish measures & reviews to maintain performance
Correct problems if needed

Measure

Validate problem/process Refine problem/goal Measure key steps/inputs Develop causal hypothesis Identify root causes Validate hypothesis Develop ideas to measure root causes Test solutions Measure results Establish measures to maintain performance Correct problems if needed

analyse

Improve

Control

Application exercise: For chapter 2 Q1: Strategies to make make customers to banking by internet, e mail , phone or ATM can be as follows 1. 2. 3. 4. Q2: Three service high in search, experience and credence are as follows 1. Junaid jamsheds apparel chain : high in search attributes for clothes because Clothes can be touched Color can be seen appealing or displeasing Fitting can be tested Overall look can be judged Quality can be seen physically Evaluation help can be given be telling about the raw material used in it 2. Mc donalds food chain: high in experience attributes because You have to eat a MC donalds meal to assess the quality Just by seeing the advertisement, comments cannot be made The environment that Mc donalds provide is also such that the food seems enjoyable and entertaining Help can be given in a way that the level of entertainment is clear to customers 3. Aga khans laser surgery; high in credence attributes because The benefits are still unknown to the customer as side effects can occur after a long while The customer didnt see what the doctor did in the surgery Results depend on the desired benefits which can be set at very high Informing about the benefits can help in evaluating attributes Q3 Backstage elements of car repair, airline, university and a consultation firm can be Car repair Mechanical work shop Service station Data entry operators Show the benefits of doing so in a vedio Informing customers about the benefits of doing so i.e save time etc Making the process easy to use and accessible Use celebrity endorsements to show the high class people use high tech methods of banking

An air line

Check counter Baggage section Food for in flight service section

University: Teachers meeting area Administration block Faculty trainers and training area

Consultation Firm: Business analysts Information technology operations department Finance depart of the firm