ANSWER IN DETAIL

1.Explain why the servicescape affects customer and employee behavior, using a framework based in marketing, organizational behavior.

2. Discuss The Customer Loyalty Pyramid. Why Is It So Important?

3.Explain The Components Of A Service Blueprint.

4. What are the five levels of customer expectation

5. Food Corner opened as a lunch and snack joint in the newly developed office area in Fujairah. The area of Fujairah developed when number of new industries made it their home, away from the high property prices of other emirates. The boom in the medical transcription and call centre businesses enabled a number of new startup companies to prosper.

The main investment of these types of companies was in real estate , in the form of offices. These companies prospered using English-speaking college graduates available in adequate numbers at salaries that are not too high. The companies also provided rudimentary computer and phone handling training.

In addition, a number of well established companies moved away from other emirates to Fujairah area to reduce the cost of office accommodation and cost of residential accommodation and living expenses for their employees. A majority of the employees of these companies were unmarried fresh graduates.

About a year after Food corner opened, Jubin Joseph , the owner , was contemplating on business expansion. During one of the lean periods in the afternoon, he was with his wife Rosy, and his assistant, Joel. 'We are getting a lot of complaints from the customers about the time it takes to serve the lunch', said Joel. 'But we are working so hard in the kitchen, despite the Fujairah heat', said Rosy.'We really cannot serve any faster ', she added. Its not your fault ', said Jubin, our business has grown by leaps and bounds in a year. However , I have just heard that a new restaurant is going to open in the neighboring building .Therefore, we may have to think of expanding and improving our facilities to stay in the competition.

'We should go in for top class dcor, fancy designer furniture and swanky chairs. That will really push us upmarket', said Joel'. Moreover we will be able to charge much better prices for the food we serve. We can even buy new monogrammed ceramic cutlery to give us that distinct look, and have a well-dressed cashier with a computerized machine to take care of the money transactions.

We can buy some new kitchen equipment with electric tandoor, stainless steel pots and pans and perhaps even the new Italian design smoke extractor . Many a time , customers do tend to complain about the charcoal smoke , added Rosy.

We can hardly afford to do all these things without borrowing a large sum of money from a financer. Even if we managed to do all that , we would have no choice but to either increase the charges considerably or reduce the food portions and economize in many other ways. We may even have to charge extra for the additional portions of bread or rice that is currently free of charge for the fixed plate customers, said Jubin. I wonder if the crowd of officer-goers who are our main customers will be able to afford all that. I always thought their main need was to be fed a substantial meal, as they are all very young and work long hours. I think they like our food because we serve healthy home - like food at prices that they can afford at their salary level. Deciding how to go about this expansion is a real problem.

QUESTIONS FOR DISCUSSIONS-

1.Describe the characteristics of the current clientele vis--vis their food needs during the working hours.

2.What would be the desired and adequate levels of service .What level of service would you plan to deliver?

3.Based on the analysis and given the shortage of the funds , suggest what should be the main elements of the planned investment ?Which investments can be avoided and for what reasons?