Friday, December 6, 2019

Quality of Service and Conditions Customer †MyAssignmenthelp.com

Question: Discuss about the Quality of Service and Conditions Customer. Answer: Introduction Operations Management refers to a process of designing and controlling of raw materials in conjunction with labor into desirable end products and services (Harvey et al. 2016, p. 89). It also includes the supply chain and delivery system of both raw materials and the products. Amazons operation management encompasses the following areas; designing of goods and services that are in alignment with the customer needs and delivering them at time of needs as pointed out by (Sun et al., 2013, p. 78), an aspect that leads to customer satisfaction. Satisfaction in simple terms is definable as a convinced assurance in fulfillment of a particular individual need (Vanitha 2012, p. 6). Customers level of acceptance of a good and service differ regarding their expectations. Therefore, Customer satisfaction means the market acceptance of a particular product. Customers satisfaction measurement is important in every business because it provides unbiased data to the company. It creates the tracking changes that have taken place in the firm over a period. Background information on customer experience in the company Amazon is an international online business that came into creation in 1994 due to the idea that revolutionary of the internet would create a large market to reach customers in the local and global business environment (Panagitelis et al., 2013, p. 90). Amazon is a customer- service-based company, mostly offering online reading books as well as other product delivery services. According to the (ACSI) American Customer Satisfaction Index, Amazon has been named by a client as the best organization due to its high level of customer satisfaction.(Lee et al., 2014) This article looks at the customer satisfaction taking into account the models and theories used by the Even though many different companies are offering online retail, Amazon Company has stand out to be among the top with the company creating a versed number of products and services that are reachable to customers. However, the company is affected by environmental factors related to regions or country of operation as well as the external factors involving the organization and the government laws and policies that often determine the terms and conditions of the business within the states of operation as pointed out by Goldsmith (2010, p. 56). Amazon has created an online customer care and personalization. The company has also established an email system that facilitates the conversation between the company and the client. Chua (2011) denotes that Amazon created Amazons Mayday button that allows live video chat; this has delighted many consumers since it allows face-to-face communication. The email system allows dialogue hence has created a robust personalization of the company and the client. Through this system, a customer can review the books and other products while in connection with the customer care personnel. Amazon has ensured improved customer care program by allowing every employee to spend at least two days at the customer care service desk for every two years. With the program, most of the employees at the company have a great customer care skills and knowledge required to ensure quality care. The functionality of Amazon allows it to perform direct marketing to the consumer. The website has a cookie that can r ecognize a customer and provide guidance and recommends to the customer depending on the customers history of purchase. However, there are still challenges with customer experience with customer satisfaction remaining the primary focal point to address as it is recording a decrease with time as depicted in table 1. Statement of the Problem and Analysis Amazon is a globally recognized retail company that should have an interactive technology that powerfully serves its high valued customers at low cost (Chua 2011). Amazon has an excellent merchandise, functionality, content, and price hence a need for a more interactive customer interaction platform that will give the customers a feeling of loyalty and value to its customers in the competitive global market. The well-integrated merchandise should allow all customers to access all products and make healthy choices that meet their needs without technical challenges with the system (Vanitha 2012, p. 89). It should be able to attend to customers at any time of the day and anywhere in the world. With this customer will be able to freely make their request at their will. In a systematic study, Maricic, Veljkovic, and Djordjevic (2012) point out that there are different factors that directly or indirectly control customer satisfaction and loyalty towards the goods and services offered to them by a business or a company. The factors are always achievable through intensive research and marketing. Despite the fact that there are many retailers in the e-commerce business globally, not all of them thrive. However, Amazon is at the top in online businesses globally coming second after Google Inc. Therefore, it is essential to understand what the company does to ensure good performance as well as the challenges that need to be address in the operation management with a focus on customer satisfaction. Customer satisfaction is viewed to have both companys internal factors and external factors (Winker 2014, p. 90). The personal context of the client satisfaction encompasses every aspect of the enterprises products regarding a quality of customer care, packaging of the product, amortization of the product, the products values and their reliability. The external factors of customer satisfaction tend to involve a large number of customer choices depending on the company goods and products that meets their needs. The constant communication with the customers and effective customer care is as well essential to enable the company to work towards strategies that will ensure it improves the nature of customer services it offers to its customers. Amazon offers genuine products to their customers with high quality and varied features (Winkler 2014, p. 451). These high-quality products tend to attract a large number of customers who at the end need to get good experience in the process of service. The company has different subsidiaries in various regions of the globe that aids in delivering and distributing system of the products to the customers. It thus requires a well coordinated supply chain management system that can allow all customers to receive their orders in the shortest time possible. In a systematic study, Helm and Tolsdorf (2013) points out the completive global business environment require drastic, relevant, and easy to use customer interaction systems that will not only ensure services are delivered but satisfied as well. In other words, it is essential for the company to design and adopt different customer service methods and unique customer-oriented strategies to engage the customers and evaluate their response to both the quality of products as well as the services offered by the company. Amazon thus needs to carry out proper market research to identify the customer requirements in every region where they are operating as well as the potential markets that the business can expand into such as developing countries. According to Panagiotelis, Smith, and Danaher (2013), environmental factors such as geographical distance, temperature, rainfall pattern, and terrain of a place can be major destructors to effective supply chain and delivery of goods and services. Prospecting on the nature of the market will also helps the company to understand the nature of customers to deal with, duties and customers, and government policies that governs business operations in such areas. Workable Proposals Recommendations and Realistic Implementations Plan Respond to the feedback as quickly as possible as a necessary initiative that company needs to adopt to improve its performance towards customers (Lee et al. 2014, p. 8). For the company to get a strong response to the customer feedback, the company should understand what information the client is passing as well the most effective strategies that can be used to evaluate the information and make an informed decision. The company should understand the factors that led to the customers satisfaction or dissatisfaction. During the response to the customers concerns, there should be systematic feedback program placed by the company to evaluate their satisfaction on the solution provided. It should also allow a systematic follow up of the implementation of the reply. Through the system, everyone in the company should ensure that customers feedback is upheld to improve the satisfaction and loyalty. Through these reactions, the product and service are developed and enhanced regarding service and quality. Other client satisfaction measuring strategies that can be adopted by the company include the disconfirmation model that is based on the customers expectation against their ratings (Winkler 2014, p. 9). The outcome of the purchased item dictates the satisfaction of the product. The Kano model bases its theory on the product development. The model places customers satisfaction in five categories that are; Attractive, One-Dimensional, Must-Be, Indifferent and Reverse. The model gives a good insight into the product attributes that are important to the customer. SERVQUAL is a framework that measures customers satisfaction concerning the quality of the service provided .it used a barometer that gives a gap between customers experience and expectation. The model is more applicable in the service oriented companies such as hotels and banks. Critical Analysis of the recommendations Amazon has adopted the Voice of the Customer feedback practice (Panagiotelis et al. 2013, 202). Amazon receive receives customers information directly from the Amazon customers or through its merchants. The feedback of the client collection should be a routine of the company. And thus they should not wait till there is a change in the economy. All feedback collected should conform to the right methodology to give the best feedback. Most of the ways used in collecting customers feedback are such as qualitative data survey; customers experience data and information from the sales personnel. Keeping in connection with the client helps to gather information on the customers complaints, suggestions, ideas, and concerns. This collected information is helpful in developing the future versions of a product and service. Hence the company keeps in touch with the customers needs. However, Voice of Customer has been adopted by many other competitors in the global market and provides nothing uniq ue to capture the attention of customers or understand the dynamics of customer response and feelings towards the products. Alternative solution that can be adopted by the company and their relative merits A net promoter score is a tool that is used to measure the loyalty between the customer and the provider and can be effective when adopted by the company. It is calculated based on the responses to a single question (Bourne 2016, p. 34). The score is achievable by posing a question to a customer on how more likely will the customer be able to recommend the product to a friend at a score rates of 0 to 10. Using the system, those who score 9 to 10 are referable as promoters, also called the regular customers who are likely to increase the level of their purchases and are more likely to promote the company product. Those who give a response that ranges between 0 to 6 are the detractors or the most disappointed customers who are less likely to evangelize the product to any other clients. The response from those customers that range between 7 and 8 is referred to as Passive. These are customers who are satisfied at the moment of the service but can be easily swayed away by the potential customers. Their characters fall between the Promoters and Detractors. The Net Promoter Score is calculated by getting the percentage difference between Promoters customers and Detractors customers. NPS= % of Promoters - % of Detractors (Sun et al. 2013, p. 67) .When the difference is less or closes to zero, then the loyalty is termed as poor while when it is above seventy to one hundred, then the loyalty is termed as excellent.NPS can be used by Amazon in its drive to emphasizes on its customer's satisfaction, through improving on the development of their products and services. Potential barriers to the implementation The NPS has received criticism due to lack of causal connection to any correlated activity in the company as pointed out by Nassar (2015, p. 89). It tends to have the shallow level of prediction on the future of the customer's loyalty. It also lacks actionable data for responses to customer feedback making it a difficult task for most companies since it is hard for business to stress on the client's actions and result without a dominant platform. The robust platform should aid in collecting, measuring, analyzing and driving the best action as quickly as possible on customers responses. These principles should lie on big data technologies that provide immediate insights and solutions Helm and Tolsdorf (2013, p. 144). One of the best recommendations is customer loyalty. Customer loyalty, also known as customer retention is the measurement of how the customer is willing to spread the quality of the product to another client. Through this, the company creates new customers. When the proc ess continues, then the number of customers who purchase those end products also increases. With that large number of clients, the company will experience growth of sales. Conclusion Continuous listening and understanding the customers feedback is critical to every business. There is no shared client feedback across different companies hence each one should be able to come up with its method of developing the customer's information about the product. It helps in creating a product that conforms to every aspect of customer need. These clients need help the company to capitalize on the regular customer. Every company should understand that customer loyalty depends on the companys brand. There are no shared customer satisfaction tracks, so each company should be able to create one of its own that is able to give it the best data to analyze the customers current and future expectations. Building customer loyalty increases customer satisfaction. Customers loyalty is more important than customer satisfaction. Due to increased technological change, many customers tend to be captured by potential rival companies. To retain a customer, then a company should focus more on customer loyalty, satisfaction, and retention to ensure it sustains and improves the company profitability. The best ways are the company to create a system that will show the customer that is always on the thought of the enterprise. The company can create a system to remember them during special occasions such as birthday by sending a short message. Amazon should also strive to empower the customers with knowledge on how to make online purchases. Table 1: Amazon Customer satisfaction rate between 2000-2016 (Adopted from Lee, Park 2016) Year Rate of customer satisfaction 2000 62.6% 2012 61% 2014 59% 2016 56.7% Table 2: Evaluation criteria to be filled by the customer Criteria of evaluation Evaluation Rate Good Fair Low Company reputation Production functionality description Friendly support to the query of customers Was the product delivered in time The speed and quality of the technical support Are the products description and usage instructions clear and easy to understand Table 3: customer performance category and their respective score rates Category Detractors Passive Promoters Score Rate 0-6 7-8 9-10 List of References Bourne, P. 2016. Customer Satisfaction of Policing the Jamaican Society: Using SERVQUAL to Evaluate Customer Satisfaction. Journal of Healthcare Communications, 1(3). Chris Adalikwu 2012. Customer relationship management and customer satisfaction. African Journal Of Business Management, 6(22). Chua, A. 2011. How Web 2.0 supports customer relationship management in Amazon. International Journal of Electronic Customer Relationship Management, 5(3/4), p.288. Gb, R. 2011. Comment on Modern analysis of customer satisfaction surveys: comparison of models and integrated analysis. Applied Stochastic Models in Business and Industry, 27(5), pp.481-483. Goldsmith, R. 2010. The Goals of Customer Relationship Management. International Journal of Customer Relationship Marketing and Management, 1(1), pp.16-27. Harvey, J., Heineke, J. Lewis, M. 2016. Editorial for Journal of Operations Management special issue on Professional Service Operations Management (PSOM). Journal of Operations Management, 42-43, pp.4-8. Helm, S. Tolsdorf, J. 2013. How Does Corporate Reputation Affect Customer Loyalty in a Corporate Crisis?. Journal of Contingencies and Crisis Management, 21(3), pp.144-152. Lee, E. Park, C. 2016. Does advertising exposure prior to customer satisfaction survey enhance customer satisfaction ratings?. Marketing Letters, 26(4), pp.513-523. Maricic, B., Veljkovic, S. Djordjevic, A. 2012. Customer satisfaction measurement. Marketing, 43(4), pp.235-244. Nassar, B. 2015. The customer trust and customer commitment of e-customer relationship management: study at Jordan of mobile phone services. International Journal of Electronic Customer Relationship Management, 9(1), p.33. Panagiotelis, A., Smith, M. Danaher, P. 2013. From Amazon to Apple: Modeling Online Retail Sales, Purchase Incidence and Visit Behavior. SSRN Electronic Journal. Service Recovery-A Promising Strategy for Customer Loyalty. (2016). International Journal of Science and Research (IJSR), 5(2), pp.150-152. Sun, K. Kim, D. 2013. Does customer satisfaction increase firm performance? An application of American Customer Satisfaction Index (ACSI). International Journal of Hospitality Management, 35, pp.68-77. Vanitha, D. 2012. Customer Relationship Management on Customer Satisfaction. International Journal of Scientific Research, 3(4), pp.1-3. Winkler, R. Moczulska, M. 2014. Quality Of Service And Conditions Of Customer Satisfaction Measurement. Acta Logistica, 1(3).

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.