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WHAT IS THE DIFFERENCE OF MEDIUM CONTACT AND HIGH CONTACT SERVICES?
Medium Contact Services
- Less face-to-face contact with the services with the provider
High Contact Services
Customers visit the facility in person and are actively involved with the service organisation and its personnel throughout service delivery.
What are the four or five key lessons that any medium to high contact service organisation might learn from the success of MK restaurant?
PROCESSES AT AN MK RESTAURANTS
1. Staff takes order
2. Staff brings the raw material to the table
3. Turns on the stove
4. Provides instructions
5. Checks everything is in order
6. Handles any issues/query that arise during the extended consumption period
7. Brings the bill
(Stocks Around Us, 2013)
1. Service DELIVERY IS IMPORTANT
- how service is delivered is important as what is delivered
- frontline employees are critical to overall experience & satisfaction
- They customise their menu for their Japanese customers (no parsley on the sauce)
- MK's spiciness is adjusted for the young generation
- Listens to market trends - healthy trend
- MSG Free and preservative free (due to feedback)
- MK's philosophy is to do anything within reason for customers
- To ensure consistent excellent service, MK management created 14 MK culture items for all of their employees
------to treat customers with passion & hospitality, being service minded & behaving with dignity
"CUSTOMERS VISIT OUR RESTAURANT BECAUSE THEY ARE NOT ONLY OUR CUSTOMERS BUT ALSO OUR FRIENDS."
What is perceived by a customer through actual experience of/with service, its personnel, place and means of delivery
Copy positioning (led by advertising and marketing communications)
What customers do we now serve and which ones would we like to target for the future?
Children
Teenager's
Adults
Senior citizens
What does the firm currently stand for in the minds of current and prospective customers?
Positioning is the process of establishing and maintain a distinctive place in the market for an organization and/or its individual offerings
Establishes relationships between profitability, customer loyalty, employee satisfaction, loyalty and productivity.
Developed from analyses of successful service organisations.
The service profit chain displays a series of hypothesised links (or propositions) in a managerial process that can lead to success in service businesses.
HOW DOES THE SUCCESS OF MK RESTAURANT RELATE TO HESKETT ET AL'S SERVICE PROFIT CHAIN CONCEPT?
- Volatility of the market
- Unpredictable natural disasters
-Threat of New and Existing Entrants: ie KFC, McDonalds, Pizza Hut, Fuji, and Chester's Grill
- Hiring of a Research Company to monitor competitors
- Hiring external Company to evaluate MK (eg. mystery shoppers) – analyzing competitive positioning
- QCQS (Quickness, Cleanliness, Quality and Service) –Appraisal of Internal Positioning
Heskett, James L., Jones, Thomas O., Loveman, Gary W., Sasser, W. Earl, and Schelsinger, Leonard A. (1994). "Putting the Service Profit Chain to Work", Harvard Business Review, March–April, 164-174.
Lovelock, C., Patterson, P. and Wirtz, J. (2011). Services Marketing: An Asia-Pacific and Australian Perspective. 5th Edition. Prentice Hall Pearson Education: Australia.
MK Restaurant (2014). MK Restaurant Home Page. Retrieved 28/04/2014 from https://www.mkrestaurant.com/th