Blog 3 – Oregano’s Service Recovery

Mark 385

Connor Taiji

C0317094

 

 

Blog 3 – Oregano’s Pizza

 

Cost of Service: $15-20

 

Date: February 6, 2013 at 8 pm

 

Relating to Chapter 7

 

 

Textbook Concepts

Outcome Fairness (pg 194-5)

Provide Appropriate Communication (pg 191)

Respond Quickly (pg 189)

Types of Complainers (pg 187)

Types of Complaint Actions (pg 187)

Service Recovery Paradox (pg 184)

Interactional Fairness (pg 197)

On Wednesday evening I ordered a pizza for pickup from Oregano’s Pizza in the Shelbourne Plaza. I was taking advantage of a pickup special they offered from Sunday through Monday. I have ordered pizza from Oregano’s on many occasions (mainly at their Fairfield location) and have been very satisfied with their service and product. I have never had any issues dealing with this organization and always receive above satisfactory service. When ordering pizza for pickup or even delivery I do not expect much from the service providers as they are not a high class, high price, or even high service type of business. The bottom line for my expectations when ordering a pizza is that they have my pizza made properly, ready in a satisfactory amount of time, and are more or less pleasant to deal with upon pickup and payment.

Oregano’s is what I would call a “gourmet” pizza establishment as they use high quality, fresh ingredients and offer a wide variety of pizza’s, charging somewhat of a higher price. My last experience was one that if handled incorrectly could have resulted in the permanent loss of my business, some negative word-of-mouth for Oregano’s and possibly even a negative blog about the organization from a services marketing student. Fortunately for them, I feel that they did an excellent job of handling the situation correctly, promptly and fairly and as a result have gained more loyalty from me.

Application to Text

Provide Appropriate Communication: When I walked into the pizza place to pick up my order I was immediately acknowledged by one of their staff members who quickly apologized and empathetically explained to me that they may have overcooked my pizza. Oregano’s took accountability and displayed all of the five non-monetary remedies: an explanation, assurance, thanking the customer for their business, apologized, and offered an opportunity for the customer to vent their frustrations (Zeithaml, 2012, pg 191). These remedies were all I was looking for to fix the incident and cost the company very little.

Respond Quickly: According to the class text, “Complaining customers want quick responses” (Zeithaml, 2012, pg 189). Before I even walked into the business, the employees already had a response to recover from their mistake. I was very appreciative and as a result would rate my service experience as completely satisfied.

Outcome Fairness: After an apology and an explanation from the staff, I was offered a discount on my pizza and an offer to either take the slightly overcooked pizza they had ready, or to wait for them to cook me a new pizza that met their quality standards. They were insistent on cooking me a new one but understood that my time was important so they gave me the other option as well. This was an excellent example of a firm providing outcome fairness – “the results that customers receive from complaints” Zeithaml, 2012, pg 195).

Interactional Fairness: In my experience Oregano’s also exemplified interactional fairness which is defined as: “The interpersonal treatment received by the customer during the complaint process” (Zeithaml, 2012, pg 195). Nothing makes me more upset than when organizations deflect blame, are rude or defensive, or are unapologetic towards a customer that feels they have had a bad experience with the company. Oregano’s employees were very friendly, empathetic, apologetic and down to earth when recovering making the process very tolerable and even enjoyable.

Types of Complainers: There are four different types of complainers that are classified based on how they respond to failures: passives, voicers, irates, and activists. (Zeithaml, 2012, pg 187). I believe that the proactive approach taken by the staff at Oregano’s would have worked smoothly upon any group of complainers. The solutions they offered were more than reasonable and it seemed as if they would have done whatever it took to satisfy the customer.

Types of Complaint Actions: Customers may take a few approaches to complaining. They may complain directly at the time of the incident, complain indirectly using negative word-of-mouth, or complain through third parties such as the Better Business Bureau (Zeithaml, 2012, pg 187). Again, the proactive approach Oregano’s took eliminated the likelihood of a complaint  before it even happened and may have even caused any customers to spread positive word-of-mouth such as what I am doing now.

Service Recovery Paradox: The service recovery paradox explains that effective recovery after a service failure may cause the satisfied customer to become more loyal and satisfied with their experience than if they had had not received the failure. This was exemplified in my experience as they handled the “moment of truth” situation very well, which made me very satisfied and likely to continue supporting their business.

EXTERNAL

 

The Service Recover Paradox – True But Overrated?

A study conducted by the Garvin School of International Management found that the best way to drive customer satisfaction was through “very satisfying” initial transactions. These initial transactions if rate “very satisfying” were more effective than an excellent service recovery from a failure proving the service recovery paradox wrong. Adversely, when the initial encounter is rated as just “satisfying”, the service recovery paradox is evident as being more effective on driving customer satisfaction. (Michel, Meuter 2004, pg 12)

 

My overall satisfaction with this experience would be a perfect 7 out of 7 and I am very likely to return. This experience somewhat proves the service recovery paradox as I now find myself more likely to continue my business with Oregano’s than I would have with no service failure/recovery. This is also a great example of a proactive approach to service recovery. Oregano’s could have just as easily not said anything and gave me the pizza they had made, waiting for me to either complain or not complain. It is evident that the organization has an understanding of the power of customer complaint actions and takes pride in the quality of their service and product.

 

 

 

 

 

References

Michel, S., & Meuter, M. (2004). THE SERVICE RECOVERY PARADOX: TRUE BUT OVERRATED?. Glendale, Arizona: The Garvin School of International Management. URL

Zeithaml, V. A., & Bitner, M. J. (2012). Services marketing (6th ed.). New York: McGraw-Hill Higher Education ;.

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