Possession Processing

Honda Drive In Karachi

Consumer Behaviour in Service Environment of Honda Drive In

Service Flow chart at Honda Drive In

Arrival

1. Customer arrives at Honda drive in

Reception

2. Customer gets greeted on the door

3. Customers parks his car in the repair shop
4. Customer goes to the administration department to tell what type of service he wants
5. Customer receptionist guides HIM/HER to the right person
6. 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
v
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p 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


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 ponts 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 isn’t 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

Explicit & Implicit

Personal Needs Service Promises
Word-of-Mouth
Desired Service Past Experience
Beliefs about
What Is Possible ZONE
OF
TOLERANCE
Perceived Service
Alterations
Adequate Service Predicted Service
Situational Factors

 Desired Service Level: wished-for level of service quality is that the car’s after the service
procedure delivers good results for a considerable amount of time

 Adequate Service Level: Minimum service level is that the Car’s 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

Administration
Mechani Glass Sales Calls
ReceptionistBilling
cal Interior & Exterior
/ Statements
building
service
Technical Equipment
The Service
Miscellaneous Marketing
Mail, System
Core Service People
of Honda
Drive In Customer Phone Calls, Faxes, etc.
Random Exposure to
Service Delivery
Facilities /System
Vehicles
Chance Encounters
 Representatives
Service Operations System Word of Mouth
&
Electric
repair tools

Mostly
Designing theMechanical
Communications
Engineers Mix for Honda Drive IN
Advertising Implications for Overcoming Intangibility:

Although Honda Drive doesn’t have an advertisement because it’s 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. Document physical system capacity

2. Present actual service delivery incident
3. Present customer testimonials
4. Cite independently audited performance
5. Display typical customers benefiting
6. Documentary of step-by-step process,
7. Case history of what firm did for customer
8. Narration of customer’s 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 W’s 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:

Messages originating
within the organization Front-line staff
Service outlets

Sales promotions
Direct marketing
Personal selling
Pub
Word rela
licof mo uths
tion
Messages originating
outside the organization
a
m
E
il
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

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

Value-Based:

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 who’s 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.
 Customer needs
and expectations CUSTOMER
1. Knowledge Gap
Management definition
of these needs MANAGEMENT
2. Standards
Gap
Translation
design/delivery
into
specs 3. Delivery
Gap
Execution of 4. I.C.Gap Advertising and
design/delivery sales promises
specs
5. Perceptions 6. Interpretation
Customer Gap Customer
of product of Gap
communications
interpretation
perceptions
execution
7. Service Gap
Customer
relative to
experience
expectations

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 won’t 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 .
 Faciliti Frontst
Front-Stage Proced
Procedures
Personnel
es, age ure
Arrive atEquip Imprope Person Too much
Receptionis
peak r time taken in
hours ment lighting nel t in a bad
Mechanical mood a smallProlonged
issue
Custo
Customers at Failures Unattended diagnosis
mers
Complex infrastr customer while
issue ucture Poor
customer is
Circuits Car
waiting
Mechani
Un available Servic
No sales guide to
Other cs timelyeinform the
Accid
Causes absent customer about
ent Electricity Costing center
issues
Generator taking a lot of
Materia
Custo Materials,
not working
Supplies Backst Inform time in
mer ls, age calculating cost
ation
hiding Suppli Person
the
real
es nel
issue

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 Design improvement

Define  Identify the problem  Identify specific or
 Define requirements broad problems
 Set goals  Define goal/change
vision
 Clarify scope &
customer requirements
Measure  Validate problem/process  Measure performance
 Refine problem/goal to requirements
 Measure key steps/inputs  Gather process
efficiency data
analyse  Develop causal hypothesis  Identify best practices
 Identify root causes  Assess process design
 Validate hypothesis  Refine requirements
Improve  Develop ideas to measure root causes  Design new process
 Test solutions  Implement new
 Measure results process, structures and
systems
Control  Establish measures to maintain  Establish measures &
performance reviews to maintain
 Correct problems if needed performance
 Correct problems if needed
Application exercise:
Q1:

Strategies to make make customers to banking by internet, e mail , phone or ATM can be as follows

1. Show the benefits of doing so in a vedio

2. Informing customers about the benefits of doing so i.e save time etc
3. Making the process easy to use and accessible
4. Use celebrity endorsements to show the high class people use high tech methods of banking

Q2:

Three service high in search, experience and credence are as follows

1. Junaid jamshed’s 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 didn’t 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

 Mechanical work shop

 Service station
 Data entry operators

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