Service Quality Analysis: Mystery Shopper Study at Shampan 3

Background and Context-

Shampan is a small UK group of Contemporary Indian restaurants serving traditional curries and specials with a modern edge. Whilst all three of their (London and surrounding areas) branches offer high quality and authentic Indian cuisine, the most recent business venture for them, Shampan 3 is said to be ‘redefining Indian Cuisine’(Shampan, 2020) at their Westerham based branch called ‘The Spinning Wheel’ which offers it’s customers a timeless, high quality fine dining experience. This report will analyse and evaluate Shampan’s service quality through the use of theory-based literature with data provided from the mystery shopping experience.

1. Literature Based on Theory-

1.a- Evaluating Service Quality

Quality plays a significantly large role in determining and influencing the overall levels of customer satisfaction. Particularly within the hospitality industry, service quality has been defined as the extent to which the service fulfils the needs or expectations of the customers or conceptualised it as the overall impression of customers as regards the weakness or excellence of the service (Al-Ababneh MM, 2017). However, more recent observations and studies view service quality as the gap between the expected service and the actual perceived service. At Shampan 3, the standards for quality are relatively high and this report will make use of relevant theory in order to relay a quantifiable report in regards to the customer experience when viewed against different service quality assessment models. Whilst there are many service quality models out there, most notably, The SERVQUAL model created by Berry, Par-asuraman and Zeithaml consists of five dimensions, namely: empathy, reliability, assurance, responsiveness and tangibility. It evaluates customer’s perceptions of service quality and that based on the gap between customers’ expectations and their perceptions. Since service quality is a multidimensional construct, and therefore each dimension of SERVQUAL has different features for evaluating customer perceptions and expectations regarding service quality in the hospitality industry (Al-Ababneh MM, 2017).

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2. Methodology-

2. i) Determining the correct research method and technique

Buckley and Chiang define research methodology as “a strategy or architectural design by which the researcher maps out an approach to problem-finding or problem-solving.” In this section of the report, it will become clear as to why it was important me to collect qualitative primary, data given the intricate nature of consumer behaviour. Firstly, in order to conduct the research, a suitable research method had to be carefully selected with the aims of giving qualitative data that can be ‘literally’ analysed rather than ‘interpreted’ thus making it more accurate. In order to stay on-topic and get the most relevant responses, questions centred around a review of existing literature on the subject area was used to identify themes for exploration. Although there are a multitude of qualitative research methods that was considered, they proved less effective against the final chosen method of the ‘Mystery Shopper’ as mystery shopping is traditionally used to facilitate measurement of service quality across various industries (Allison 2012, p4). Whilst it is relatively quick and easy to collect the data from mystery shopper reports, it is largely resource consuming in terms of time and money for the company on a grand scale as it requires many participants, perhaps with multiple trips to one restaurant. Nonetheless, mystery shoppers make it possible to control the homogeneity of compliance with standards in all facilities, which allows for the implementation of a consistent policy of the enterprise in the field of sales and brand image (Kirkpatrick, D. 2001).

2 ii)- Key Objectives determined before the study took place

According to Wilson (1998), results from mystery shopping studies are used for three main purposes:

1. To identify weak elements in an organization’s service delivery.
2. To encourage, develop and motivate service personnel.
3. To evaluate the competitiveness of an organization’s service provision by benchmarking it against the service provision of competitors in an industry.

These purposes give the study direction when it comes to understanding the key objectives that need to be attained for the research and will therefore, enable more targeted results.

2. iii) Structuring the mystery shopper experience

Van der Wiele, Hesselink & Van Waarden (2005) defined different steps in the design of a mystery shopping study.

1. The first step is to define goals. These goals can be used as the main basis for what questions are used on the checklists as it will highlight the elements that are to be evaluated upon analysis. The checklist should be created by going through the process of the service delivery from the very beginning all the way to end. In order to remain as objective as possible and therefore, reduce subjectivity, the checklist must allow room for both the positive and negative aspects of the service delivery. In order to get a deep meaningful analysis of the customers view of the service quality, it is important to us the five attributing dimensions of SERVQUAL, which can be useful for creating a checklist. (Appendix 1.)
2. The second step in the design of a mystery shopping study is the gathering of data. The gathered data should cover the attributed service quality dimensions and the key performance indicators defined by the organization which is aligned with the objections of the study. These key performance indicators are related to the vision and mission of the organization. The mystery shoppers who gather the data need to be independent, critical, objective and anonymous (Van der Wiele et al., 2005).
3. The third and final step in the design of a mystery shopping study is the reporting of results. First, the gathered data should be analyzed objectively. Then the data should be reported in a clear and transparent way and presented to responsible managers as soon as possible after the visits (Van der Wiele et al., 2005). Independence, objectivity and speed are crucial in determining the outcome of the study as results are more reliable when the mystery shopping is conducted without other influences from friends and family, when it follows a criteria that balances the strengths and weaknesses of the service and is reported back in a timely manner whilst the study findings are still fresh in the shoppers mind. If the findings are not relayed in and efficient timely manner, the mystery shoppers might forget to check some items on the list, since the items that need to be evaluated need to be learned by heart before the mystery shopping visit takes place (Morrison et al., 1997). Another challenge on the side of the mystery shopper is to remember all evaluations and report them correctly on the evaluation form (Morrison et al., 1997) and to evaluate all items on the checklist objectively.

2. iiii) Data Analysis-

The data from the mystery shopping experience was analysed by applying the benchmarking technique in which the results were weighted against the pre-conceived standards. These standards were based on the notable awards that have been won in the past such as; British Curry Awards in November 2013, The BEST NEWCOMER British Curry Awards in November 2015, and BEST IN SOUTHEAST Bromley Business Awards in November 2017. The criteria used to meet the requirements of such prestigious awards is similar of that used in the mystery shopper report and gave clear direction as to what elements of the service should be weighted and a definitive barrier to entry. In accordance with the awards, the analysis of data was also done with reference to the SERVQUAL Model using the five dimensions of reliability, responsiveness, assurance, empathy and tangibility. The study was conducted to evaluate the following areas of service quality: host quality, quality of food, general service and quality of menu items, consumer engagement online, telephone manners, aesthetic value of the facility, and on-site management. These areas were rated on a scale of 1 to 7, with 1 being the 'poorest' and 7 being 'excellent'. (See Appendix 1)

2. v) Data Findings

After a quick one-minute phone call, the table was booked ahead of time with the fact that it was just going to be a single person taken into account, the option to choose which style of seating was preferred for comfort, this showcased the prestige of the restaurant and attention to detail through good telephone manners. The overall environment was highly rated in terms of cleanliness and quality of aesthetics from the feel of fabrics to the sensory experience induced by culturally appropriate music from the well-integrated surrounding speakers to the small charcoal fire gently burning in the bar/lounge area upon entry. The only issue that came out was their management of space as tables and chairs were close to other diners which can take away from the overall exclusivity and luxury essence of fine dining. Otherwise, the internal decor was well done and reflected a professional yet cosy touch and executed an understanding of the nature of modern-contemporary whilst still integrating the cultural attributes of India. The welcoming was warm yet professional, and the drinks and meals were prompt and of higher standard to not only other Indian cuisines, but many restaurants in the surrounding area. However, there were no suggestions from the server on the kind of drink to bring however, an appetizer was offered immediately. This added to the quality of service that was enhanced by the server's effort to make the mystery shopper comfortable through regularly checking back. In general, the visit was a positive experience that lived up to the pre-determined expectations.

3. Service Quality Measurement-

Service quality measurement is regarded as a means by which managers get to identify mishaps in the service level goals of their businesses and thus make necessary adjustments to meet or even exceed customer expectations (Arlen 2008, p2). Arguably, there is no definitive consensus on the correct service quality model as they all use different service quality dimensions, but all of which agree on the fact that the quality nature of service is inseparable, often heterogeneous, and always intangible (Ghotbabadi, Baharun, & Feiz 2012, p4). The review identifies four major models that have prevalent use, two among them that are briefly discussed. These include: The Nordic Model, The Multilevel Model, The Hierarchical Model, and The SERVQUAL Model.

3. i) SERVQUAL

Focusing on the five dimensions of SERVQUAL, reliability, assurance, responsiveness, tangibles and Empathy, Nam and Lee (2011), used a modified SEVQUAL scale, and found that three dimensions of service quality (‘intangibles’, ‘tangibles’, and ‘food’), expectation, and value for money appear to positively influence customer satisfaction with restaurants. Luxurious restaurants must therefore make every effort to enhance service quality for better profits. Shampan being a relatively up-scale dining establishment, must continue to communicate their value through all three dimensions of their service quality. Research by Barclaycard in 2018 found half of consumers (52%) would rather pay for a good experience than splurge on material possessions. The same number (52%) would choose to tell their friends and peers about an enjoyable brand experience rather than a purchase they’ve made. With the current ‘experience economy’ progressively rising in economic value, Shampan 3’s efforts to differentiate themselves will become increasingly more of a challenge although they are currently providing high levels of customer service by; giving customers individual attention, dealing with customers in a caring fashion, noticeably putting the customer’s best interest at heart and understanding the needs of their customers, in such a competitive market such features of service quality will become a standard commodity even amongst fast food/lower-end restaurants. New research proves that consumers are expecting, if not demanding, highly personalized experiences. This means that customers are typically willing to spend more when they receive such custom-tailored service (Forbes, 2017).

Kim and Moon (2009) explored the psychological process by which service influences perceived service quality, pleasure-feeling, situational factor, and revisit intention. Their main emphasis weighted on the idea that restaurant managers should seek an understanding of customers’ perception process in relation to emotion and cognition. This correlates with the tangible aspect as Shampan offers luxurious materials to coat everything from the walls to menus to the furniture. However, Shampan is a true example of a ‘heterogeneous services’ as the business model depends greatly on their employees for quality whilst also providing the customers a very ‘inseparable’ service experience as production and consumption are simultaneous. According to cue utilization theory (Cox, 1967; Olson, 1972) products or services consist of an array of cues that serve as surrogate indicators of the product's quality. Since Shampan 3 involves simultaneous production and consumption of service, the customer has to enter the service facilities and has to be within the servicescape before a purchase decision can be reached. Therefore, the servicescape offers a multitude of easily accessible cues to customers seeking an information searching shortcut (Baker, 1998). With the five dimensions taken into consideration, it is clear that Shampan 3 is doing well in terms of creating a long-lasting experience and a home away from home type of environment.

3. ii) Nordic

The Nordic model was the first mention service quality and defined service through two perspectives which were based on technical outcome and functional outcome. According to Gronroos who created the model in 1984, service quality is defined by the technical aspect, which refers to the service level that a customer receives, and the functional aspect, which refers to the perceived level of performance (Shahin & Samea 2010, p9). However, Gronroos did not include any means of measuring the two aspects. Later in 1994, Rust and Oliver attempted to refine the model using their Three-Component Model version of Nordic model, which included three components: service product, service delivery, and service environment (Ghotbabadi, Baharun, & Feiz 2012, p5). However, they failed to test their version of the model as the model is largely insufficient in measuring service quality provision.

3. iiii) Gap Analysis

Parasuraman et al. (1985, 1988) developed a service quality gap model. They believed that the model can be used to measure customer perceptions of service quality, and at the same time compare customer expectations of service quality with the service quality that actually received, so as to determine service level. Service Quality GAP is analysed on the basis of customers’ expectations and perceptions. In this case, it can be measured by subtracting the value of customers’ expectations that were based on pre-existing positive attributes to Shampan such as the numerous industry awards, overall cleanliness of the website, 4.7 star reviews on Trip Advisor and the general narrative that it is a fine dining establishment. The data shown in Appendix 1 gives an overall positive score of 6 that being relatively high in terms of customer satisfaction and should be viewed as a judgement of good service quality that met the customers standards and left little to no gaps in customer expectations.

4. Competitive Benchmarking and Best Practices-

Winners of the Asian Restaurant of the Year 2019 at the Asian Curry Awards, Tamarind Lounge is currently the pride of Kemsing having just picked up Asian Restaurant of the Year in the home counties at the Asian Curry Awards (Tamarind Lounge, 2019). Within close proximity to Shampan 3, Tamarind Lounge is the direct competitor and is also within the fine-dining arena. Although high quality service can differentiate two brands from each other, creating a clear and distinguishable divide is becoming increasingly harder. Examples of these best-practices that Shampan has put in place includes hiring for fit and ensuring employees have shared vision (Sui & Tsai 2014, p3) Shampan needs to hire the kind of talent that will meet its service level goals and for this, it will need to have in-house human resource function to work close with other departments to craft recruitment and selection procedure (Mattsson 2012, p5). The Executive chef, Sadek Miah stated on the website that “As a passionate creative team of food-lovers we work well together; with our different personalities come different ideas that we incorporate into our work. It is an absolute pleasure” (Shampan,2020). However, even after hiring the right talent, communicating clearly the goals of the restaurant and reminding employees from time to time, as well as empowering them in various ways, service quality will be the best approach to sustainability (MSPA, p6). The culture of service is part of the brand identity at Shampan .Shampan’s current competitive advantage amongst similar Indian cuisines is the level of service which leads to higher levels of customer satisfaction and in-turn, boosts not only brand loyalty but also, revenue will increase significantly as customers are typically willing to spend more when they receive such custom-tailored service (Forbes,2017). customer satisfaction tends to lead to customer loyalty (Jones & Sasser, 1995). Acquiring new customers costs the firm more than retaining them (Farber & Wycoff, 1991). However, consumers demand and expectations for such service quality is saturating the market and shifting businesses service standards.