Model of the theory
The model consists of 4 components. The primary focus is on the physical product that is being offered. The product itself is closely tied with the environment that this product is being offered in. The physical and psychological factors play a role in the perception and reception of the product.
The way the service or product is presented, the quality of product or service, the reliability, which is how dependable a product is or how effective, in the long term, the service is. The third component outside the product is the interaction quality. It is a mutual relationship between the customer and presentation, how prompt and helpful the presenter is.
For example, a car salesman could give an opportunity to sit inside, open the trunk and the hood or they could omit these actions. Another example of environment would be outside, dusty conditions, as opposed to inside the showroom, with clean floors and air-conditioning.
How do we use this practically
Practical application in the field starts with the presentation. The environment and presenter have to appealing to the customer. The neatness of the employee and the facility play a significant role. The equipment used and other materials associated with the product or service must be up to date and in top condition.
The employee must be responsive to the customer. They must have all knowledge of the product or service and be able to express themselves freely and intelligently. The guarantees that are given must be complied with, so that the customer feels they can trust the product or service.
For example, if a tire salesperson is requested to give advice on the best tires for a certain season, they must not consult books or other sale representatives but answer themselves, as to present a knowledgeable image. Another example would be a customer who is asking a lot of questions that do not relate to the product, the representative must be patient and know where to look for information not related to their area of expertise.
Critical explanation – adv., dis. , +ve, -ve
The advantages are a better representation of the company and the product. The more experienced and reliable the company and product is, the more trusting the customer will be, which in turn, will increase the return rate and word of mouth. Another advantage is that the company will benefit from a service or product that is presented in a high quality manner.
This will increase the profits and thus, more employees can be hired and trained in the products or services. For example, someone satisfied with a fast food restaurant will become a daily visitor because it is of high quality and in the littlest possible time become a regular customer.
The disadvantage is that it is hard to predict the type of customer and what their standards are. They might be overly expectant of the service or product and in case they use the product beyond its specifications, they will become dissatisfied, even if the product or service was of high quality.
Also, the fact that the consumer is always right and the employee must try to satisfy their needs puts the employee in a delicate situation where they can experience a great amount of stress from the customer and environment. If someone is buying irons and asks many questions of how it will perform on each specific fabric or what voltage and in what country that can use it on.
Ethical principals from CSR point of view
The highest ethical morals are expected from CSR. The care and attention to details of the consumer are primary objective. Some consumers might be sensitive and so, CSR must adjust to their wants and needs without putting pressure on the consumer. The information must be presented in an understandable manner and questions answered clearly and specifically, so that there is no doubt created and the customers do not pretend they understood the information.
The CSR must be engaging and interested in both the questions of the consumer and the information being presented. They must be patient and controlling in any situation. An example would be a customer who is clearly trying to annoy or upset the CSR by being inappropriate and making comments that are hurtful. The CSR must divert from this sort of situation by shifting the information to another topic and redirecting the conversation.
Why is it imp?
There must be great focus on the ethical norms, regulations and laws. The interaction between the customer base, the market and internal organization of the company or business and how it is regarded in relation to the consumer needs. Strict abidance by laws and policies that are being put in place is a must.
They shape the direction and focus of the business. For example, a leniency period could be given for the trying out and later, if the customer prefers, return the product or receive money back for a service they are dissatisfied with. The policies in relation to employees and their benefits are another example.
How/ What can it go against ethical norms
It could divert from the legal or ethical norms, so that the consumer or employees feel betrayed. If the company or business favor own well being without a particular interest in the public or employees, the relationship will suffer. The rules of work environment can be detrimental to employees and require extra time put in without a significant or non-existent rewards system.
A limited access to information or ability to communicate with the support team or managers will decrease customer satisfaction. The products themselves could be made in a hard to access way, the packaging could be faulty and freshness questionable.
A manufacturing company of lower quality can be used without a significant notice to the consumers, which will deceive the public. An example would be to sell milk that has been stored for a long time and then mixed with fresh milk, the quality almost does not suffer but the freshness is not the same.
How business people and customers feel about it?
The products or services being offered are what the consumer will receive and everything depends on how customers view certain product or service. People demand that they receive best quality products and services because they are paying for it. In case there is deception they feel outraged and sometimes, there are lawsuits that result from unethical behavior from the company.
The public expects to be understood and in case a mistake has been made, they need to be reassured that it was one time only and made by an accident. An example would be a person buying a product that has expired. The store could either return the money or give a new product and return the money. Or if a person realizes the quality is low, they could be allowed to return the product after a set amount of return days.