POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF BUSINESS ADMINISTRATION

Entrego Logistics Service: Improving Customer Satisfaction

and Poor Customer Service Management

Prepared by:
Bonuel, Janelle C.

Presented to:
Dr. Leonardo G. Adap

April 2023
The Case

Entrego is a technology-driven business solutions provider for enterprises'

logistics needs. Entrego serves as a flexible contract logistics partner for businesses
across various industries. They have over 15 hubs that service over 30,000 barangays
across the Philippines. Entrego values their customer by fulfilling its promise through
reliable and effective logistics. On the contrary, there are negative evaluations of their
business on various social media platforms, including complaints about poor customer
service, delayed shipments, and inefficient parcel delivery. Reviews from prior clients
may impact the decisions made by new clients in the future, which is negative for the
company. What are the actions that Entrego can take to address the negative reviews
regarding their service and customer relationship?

I. STATEMENT OF THE PROBLEM

This study aims to identify the actions that Entrego can take to address the
customers' complaints that negatively affect the business's reputation and how they can
attract new customers to trust them. Moreover, this study aims to answer the following
questions:

Major:
1. What particular actions can Entrego take to address the negative reviews from its
previous customers?
2. What are the negative effects of the bad customer reviews cited on social media
platforms regarding the service of Entrego?
3. How can Entrego improve customer satisfaction, quality of service, and customer
relationship?

Minor:
1. How can Entrego rebuild a favorable reputation despite its negative feedback
from customers?
2. How can Entrego convince new customers to trust its customer service and
performance?
 3. What action can Entrego take to create an edge over its competitors?

II. STATEMENT OF OBJECTIVES

The objectives of the study are divided into two categories:

Musts:
1. To propose actions addressing the customer's bad reviews regarding the
ineffective service performance.
2. To identify the negative effects of the complaints given by the customers.
3. To suggest strategies for managing customer satisfaction, service quality, and
customer relationship.

Wants:
1. To recommend actions convincing potential customers to partner with Entrego for
their logistic needs.
2. To establish an active social media presence to establish customer engagement.
3. To increase the sales and profit of Entrego.

III. AREAS OF CONSIDERATION

1. Customer complaints and feedback.
2. Training and management of the workforce.
3. Customer's perception of the company image.
4. Scope of service offered by Entrego.
5. Service quality and customer relationship.
6. Lack of customer engagement.

IV. ALTERNATIVE COURSE OF ACTION

1. Entrego can conduct a training program for its employees to address
performance quality complaints.

Advantages:
To establish the standard for performance quality, Entrego can implement a
comprehensive employee training program. Employees can be trained to
understand their obligations and the intended outcomes. The capacity of staff
members to establish a high level of performance and deliver the desired service
may be improved by the skills training and development programs included in the
training program. By conducting the appropriate program, the company can
ensure that employees have proper knowledge about the service they are
offering.

Disadvantages:
The training program can be a disadvantage in terms of cost and time. Since the
program needs to be comprehensive, the company can expect that this requires
a fund and time allotted for the employees to train. The program's outcome might
also be different since employees receive the training.

2. Entrego can implement employee performance management.

Advantages:
Performance management helps communicate with the employees regarding
their responsibilities and expected performance. Entrego can implement
comprehensive performance management where the employees and
management can identify the training needs and skills development needed. The
company can develop employee goals and behavior standards and provide
performance discussions through performance management. The consequences
of performance results can also help evaluate the improvements needed for the
employees.
 Disadvantages:
The disadvantage of implementing performance management is that it is
timeconsuming. The management must meet the full participation of the
employees to achieve the desired outcome. It can also be challenging to assess
the employees if there is a lack of trust, and the process may take weeks or
months before achieving the goal of performance management.

3. Improve customer relationships by having active engagement on social

media platforms.

Advantages:
Customer relationships are essential in every business, and Entrego can benefit
from this if it conducts social media engagement. Social media interaction can
help enterprises to establish deeper customer relationships by establishing trust
in their customers. The company can address customer complaints and concerns
immediately, and they can take proper actions for the transactions. Responding
quickly to customer issues can help Entrego gain trust and develop strong client
connections. Another advantage of active engagement is that it can determine
the areas needing improvement.

Disadvantages:
Social media engagement can be time-consuming and requires personnel with
the skill for promotion and customer service.

V. RECOMMENDATION
After analyzing the possible action, I suggest that Entrego implement a training
program where the management can appropriately address employee performance
complaints and poor customer satisfaction. By implementing the training program, the
company can comprehensively identify the leading cause of the problem and formulate
the right action to take. A successful training program can result in a positive outcome
which can help Entrego address negative feedback and poor customer satisfaction.
They can also consider other factors in formulating the training program for employees,
such as the skills and knowledge about the service they offer. The service quality of the
employees can improve by providing the appropriate expertise and skill in delivering the
service to their customers. The training program can result in positive customer
feedback and high customer satisfaction if the employees provide their needs.
Furthermore, if all employees provide the best service for the clients, Entrego's
reputation and image can be recovered, resulting in good customer relationships.

VI. PLAN OF ACTION

1. Assess the current skills and knowledge of the employees by evaluating their
performance. A needs assessment can help Entrego determine the cause of poor
performance; that way, they can establish the appropriate training program.

2. Formulate the appropriate training program where employees can develop their
skills and have more profound knowledge about their responsibilities. The
program must incorporate strategic training that allows employees to receive
training based on the areas in which they need to progress.

3. Launch the training program considering areas that need improvement, such as
problem-resolution strategies. Focus on the customer's complaints that must be
addressed by the management and employees effectively during and after the
training.

4. Assist employees that may need help in other areas of the training. The process
of the training program must be fit for the employee's time and circumstances.
The company must provide adequate time for the employees to adapt and absorb
the skills that the management will give.

5. After training, employees' learning must be put into practice to develop a more
profound understanding of the programs received. The employees must deliver a
 quality service that can improve their relationships and increase customer
satisfaction while building the company's image. Management must conduct
assessments and provide feedback to assess employees' progress accurately.

6. Review employee performance frequently to assess their development. The

company may consider performance incentives to motivate the employees to
perform satisfactorily. Additionally, creating a client evaluation helps identify
areas that require improvement.

VII. POTENTIAL PROBLEM

1. Time-consuming. Training employees requires time and effort, which can affect
business operations.

2. Lack of resources. The training program will require a fund to execute the right
programs for the employees to develop the appropriate knowledge and skills.

3. Information-overload. If the training doesn't have enough time for the employees
to learn the information given, the process may be rushed, resulting in ineffective
learning.

4. Lack of consistency. Despite providing the training, employees may still exhibit
inconsistent service performance.

VIII. CONTINGENT PLAN OF ACTION

1. An effective program can result in positive feedback, satisfaction, and repeat
business. Entrego must formulate the appropriate program to productively utilize
the time and resources used in the training program.

2. Consider the employees' capacity to conduct specific programs to avoid

ineffective learning.
 3. Regularly conduct performance management to communicate with the
employees regarding their duties and the consequences that the management
must give concerning their performance.

4. Provide a healthy environment for the employees to avoid an unproductive

workforce. Additionally, incentives can help employees feel motivated and
valued, resulting in positive performance. Satisfactory performance can also
positively affect the satisfaction and feedback of the clients.

IX. GENERALIZATION
Customer satisfaction and positive feedback are essential, especially for service
businesses. The intangibility of service can cause doubt for the customers, but
presenting positive feedback from previous clients can strengthen the trust of potential
customers. This case study demonstrates the difficulty of Entrego in meeting the needs
of its clients. The dissatisfaction of the customer resulted in their negative feedback
regarding Entrego's poor service quality, which negatively affects the image and
reputation of the company. Potential customers may doubt the company because of
their previous client's feedback.

The company and employees must address the existing problem of Entrego to
prevent further complications effectively. The organization has to implement a thorough
training program while considering the personnel's knowledge and skill levels. Providing
enough time and support for the employee's development can result in a positive
outcome. Entrego must immediately address the customer's complaints to prevent
further damage to customer relationships and company image. In addition to improving
communication and meeting needs, customer engagement builds trust and a
connection between the client and the company. Lastly, Entrego must regularly evaluate
the employees to determine the gaps and improvements that need improvement. In
conclusion, to have a good result and avoid negative consequences on the business,
the company must manage client complaints and dissatisfaction immediately.
REFERENCES:

Ship and deliver your package nationwide. (n.d.). https://entrego.com.ph/

Logistics: strengths, weaknesses, opportunities and threats amidst rising uncertainty.

(2022, July 14). https://www.knightfrank.com/research/article/2022-07-14-
logisticsstrengths-weaknesses-opportunities-and-threats-amidst-rising-uncertainty

June. (2019). Employee Development: The Pros & Cons of Training Staff. Asset
Wisdom. https://asset-wisdom.com/news/employee-development-the-pros-cons-
oftraining-staff/

Importance of Training and Development for Employees. (2022, December 15).

Maryville Online. https://online.maryville.edu/blog/importance-of-training-
anddevelopment/
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF BUSINESS ADMINISTRATION

The Conflict in Service Profession & Progression:

Sullivan Ford Auto World Case

Presented by:

Mular, Jann Caesar A.

Presented to:

Dr. Leonardo G. Adap

April 2023
The Case

Mr. Walter Sullivan (owner of the Sullivan Auto World) has purchased small Ford
dealership in 1983, after the many years; the dealership built their good reputation as one
of the best in city. In 1999, he decided to move locations of dealership to more populated
area closer to major intersections. With sudden death of Mr. Walter at the age of 56 years,
her younger daughter Ms. Carol Sullivan who is health care manager by profession taken
over the charge of family business and which is not running well these days, profit margins
continuously decrease over the years due to increase in fuel prices, interest rates, mainly
poor performance of the service department. Ms. Carol wonders whether a turnaround
is possible.

I. STATEMENT OF THE PROBLEM

This study aims to perfectly solve all the following problems, including both major and
minor problems that the service business is currently facing. The focal point of the
situation revolves around the profit and performance difficulty of the service business.
This study should also provide all the possible answer to every uncertainty in this case.

Major:

1. Ms. Carol is inexperienced because of her other profession.

2. Lack of training for the people in service department.

3. New strategies and decisions implemented may not be working.

Minor:

1. Inevitable increase of prices and rates.

2. The new location or area of the business.

3. The sudden death of Mr. Sullivan (The core person of the business).
 II. STATEMENT OF OBJECTIVES
The objectives of the study are divided into two (2) categories:

Musts:

1. To let Ms. Carol, learn and gravitate towards dealership instead of her old
profession.

2. To properly train all the people in service department, equip them with the
right mindset and skills.

3. To test each strategy or decisions used and change all the useless and
worthless ones.

Wants:

1. To make the right move in accordance to the fast-changing prices and

rates of things around.
2. To look for a new location or area that will be more beneficial, a spot with
people that is right for the service business.
3. To reflect on the successful past of Mr. Sullivan and use it as an
inspiration for the new take of the service business.

III. AREAS OF CONSIDERATION

1. Ms. Carol’s future growth and development in managing and handling the
iconic car dealership that she inherited from her father.
2. Sullivan Ford Auto World offers one of the best services among other
competitors.
3. The experience and traumatic situation happened can be both a positive
or negative aspect or factor for the service business, take and use it wisely.
 IV. ALTERNATIVE COURSE OF ACTION

1. Sullivan Ford Auto World should hire a temporary professional head.

ADVANTAGE: With the help of another person, Ms. Carol can really take her
time to master everything she needs to properly manage and handle the car dealership
business. It can and will be very helpful and beneficial for everyone and for the service
business itself. Positive and successful outcome/s might occur and happen.

DISADVANTAGE: Despite of the positive outlook, negative things can also

show up too. The person might have a different take for the service business that can
end up not being good for all aspects and factors. Losing loyal customers is possible as
well.

2. Sullivan Ford Auto World should now try to incorporate using social media.

ADVANTAGE: The use of social media is very influential nowadays; it can help
the business to reach more people. It can somehow change everything and make the
table turns. It may be the right solution for the profit and performance problem of the
service business.

DISADVANTAGE: Using social media is not expensive, but it requires a lot of

time and effort to make something attracting. People nowadays is so hard to please, so
making something perfect to perceive them really takes a lot. It might lead to having no
balance for the business, doing both online and physical transactions.

3. Sullivan Ford Auto World should brainstorm hardly to boost profit and
performance.

ADVANTAGE: This is a classic and basic way, yet crucial for any type of
business, but most especially to services. Collecting every thought, suggestions, and
ideas from different perspectives can really help a lot. It can form something new that
will literally change how everything works. Surpassing the successful past is not
impossible.
DISADVANTAGE: The main requirement here is communication with
understanding. If it is not met, when everyone is not on the same page, it will be a huge
problem. It will lead the situation to be more complex and harder to solve. Many
possible damages and charges are in line if this becomes a concern.

V. RECOMMENDATION

After considering all the possible outcome/s, including both the positive and
negative, it is the best to conclude that implementing the second option will be a safe and
good choice. Incorporating the use of social media for the business operations might be
the way to get the business going and make the owner and its people to aim for something
bigger and better. Introducing the business to new people and making them aware of it is
a great move. They can simply do transactions online without leaving their own home and
without interrupting the other things that they are doing. Customers and consumers really
love having satisfaction and convenience on whatever they do. Sullivan Ford Auto World
can be one of the few who openly and freely do it for its customers and consumers. This
should be able to help in making the profit and performance of the service business alive
and normal again.

VI. PLAN OF ACTION

1. First, conduct a meeting and brainstorm to determine whether it is going to

be done in house or by outsourcing.

2. Next, once decided, plans and strategies should be made and ready to be
implemented.

3. Then, selecting the best person or people in charged with the skills and
knowledge about social media is a must.

4. After that, having a second plan or plan b and future plans is very
important, just in case it does not work.

5. Finally, if the online transactions using social media works, it might

improve the profit and performance of the service business again, so continuous tests
and checks for improvement and development is an essential.
 VII. POTENTIAL PROBLEM

After looking at all aspects and factors, the main potential problem for this
new take of the service business is the possible problem with balancing time and the
possible problem with people having the wrong perception of this new step of the
service business. It is really hard to control customers and consumers, especially what
they will say, think, feel and the like. Every business revolves and is based around
them, since they are one of the main foundations of it. If they see this new step as
bad, they will share it to others leading to everyone believing in the same thing.
Perfecting a plan and strategy for online postings and transactions that can satisfy
loyal and new customers and consumers will be great. It will also stop the problem
with balancing of time to happen. In worst case scenario, if it happens that the service
business is about to face this problem quick action is needed, such as by diving the
workers for either online or physical spot of the operations.

VIII. CONTINGENT PLAN OF ACTION

If this plan and strategy really fails and did not make any change at all, then
focusing on normal operations will be the best option to do. Not just doing the literal
normal operations, changes must be indicated to continuously aim for the stable flow of
profit and performance, like before. Changes like Ms. Carol learning about dealer- ship,
training employees, finding a new area or location, and all the related aspects. They are
all easy to accomplish, it just needs attention and determination. One person can make
changes, so many people can obviously do too. It is not impossible for Sullivan Ford
Auto World to be one of the best again. Every business faced the same problem once
in their years of operations. Everything is a trial and error, so they should just keep on
trying and doing everything, while hoping for the best.

IX. GENERALIZATION

To sum it all, I conclude that this study has a common problem as it is also
experienced or currently facing by other business owners as well. The problem is not
easily resolvable, but there is a possibility that it can be, once different approaches are
tested and implemented. It is just a matter of finding the right thing when it comes to
everything, such as right time, people, decision and the like. The suggested plan that I
gave should be able to solve the profit and performance problem of Sullivan Ford Auto
World. I am part of the young generation that is why I knew how much power using
social media platforms for business operations has. In this modern world, everyone
grasps into the use of technology as it offers great satisfaction and convenience. The
idea of just using social media while conducting and doing the transactions with the use
of it will surely attract possible new customers and consumers. Old and loyal customers
and consumers will be surely delighted as well about this new take of the service
business. Everyone will be happy about the concept of not going to the physical store
of the dealership, as they can do both of delivering the goods through delivery services
for you and they can do all what is needed to be done at the comfort of your own home
or wherever you want it to be. Incorporating the use of social media is just the way to
make the communication and connection of everyone easier and faster, like how it
should be nowadays. My projection for this service business is for them to be one of the
few that is both a satisfaction and convenience provider, since it is one of their main
roles. In connection to the social media plan and strategy, if Ms. Carol perfected the
proper handling and managing of the dealership business, it will contribute to the further
progression and advancement of it. The chance of Sullivan Ford Auto World to get back
to their old status is 90%, that 10%, it will be fulfilled by the new take of the service
business and newly acquired skills and knowledge of Ms. Carol herself. Their future is
still bright and their current situation will be resolve in maybe 1 to 2 months, if they will
not stop. The chance of Sullivan Ford Auto World to surpass their old status and for them
to generate profit and offer an amazing performance once again is 100%. This service
business will succeed again and might come back as stronger than ever that will shock
other business and companies. While doing this study, I came to realize that services
are really intangible, inseparable, heterogenous, and perishable. Services functions and
operates in its own mysterious way, but rest assured that great services really give
satisfaction and convenience to us all. I cannot imagine us living a world without these
life changing services that the people in this world have to offer. To end this study, there
is a quote related to this case and a life lesson for us to remember that says:
 “Smooth seas do not make skillful sailors”.

REFERENCE:

Nazir, A. (2021). Service Marketing- Case Study Answers (1-3). Studocu.

https://www.studocu.com/row/document/university-of-thepunjab/business-
finance/service-marketing-case-study-answers-1-3/15328736
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF BUSINESS ADMINISTRATION

CEBU PACIFIC AIRLINES: Improvement for Customer Service and

Retention of the Customers

Prepared by:

Oyco, Sydhelle Irish A.

Presented to:

Professor Leonardo G. Adap

April 2023
The Case

Cebu Pacific Airlines is the top airline in the Philippines, with service to more than 60
domestic and foreign locations in 14 nations, including Singapore, Australia, China, and
the United Arab Emirates. On the 31st of March 2023, they released a promo voucher
that you can use to travel one-way domestically with the base fare of ₱99 called CEB
SUPER PASS. However, the transaction of some of the customers did not go smoothly
as some of them experienced crashing of the site, gateway errors, and were charged
twice, thrice of what they are supposed to pay from their bank account. The customers
also had a hard time reaching out to them as the only way to contact them was through
their Messenger account managed by a bot and Emails which took so long to respond.
Some of them even went to their on-site ticketing office to talk about their concerns but
the only thing that their crew said was, “We can’t help you”. What actions can Cebu Pacific
Airlines do to prevent this kind of issue?

I. STATEMENT OF THE PROBLEM

This study aims to identify what actions that Cebu Pacific Airlines needed to take to
prevent negative response from the customers spreading on the internet. This study
intends to answer the following questions:

Major:

1. How did this issue affect their reputation?

2. How can they still acquire retention and loyalty from the market?
3. What else can it do to improve its services in order to maintain positive
connections with its clients?

Minor:

1. Does Cebu Pacific Airlines need to improve their system?

2. Is Cebu Pacific’s customer service enough to resolve these problems quickly?
3. Does Cebu Pacific need to train their personnel more?

II. STATEMENT OF OBJECTIVES

The objectives of this study are divided into two (2) categories.

Must:

1. To come up with ways to address the issues.

2. To improve customer service management.
3. To have better employee performance management.

Wants:

1. To improve relationships with their customers.

2. To generate more income.
3. To create a healthy community within the workplace.

III. AREA OF CONSIDERATION

1. Cebu Pacific Airlines is one of the Philippines’ oldest low cost airlines.
2. Customers' negative feedback across the social media platforms.
3. The lack of customer service available for its consumers.
4. Marketing and Promotions.

IV. ALTERNATIVE COURSE OF ACTION

1. Have the right technical support for the system.

Advantages:
- Technical support is the aid and service for those who need it due to technical
issues. Having this will help the company to have comprehensive monitoring and
prevention of sudden system glitches, effective data management, and improved
productivity of the system of the company.

Disadvantages:

- Since IT technical support is in demand for professional businesses, this method

might not be cost-effective in the long run.

2. Administer contact or telephone numbers for the customers to reach out to

when in need.

Advantages:

- Good customer service is what makes customers come back and purchase the
service once more. So with this, the company’s relationship with the customers will
encourage loyalty, build strong reputation and boost sales.

Disadvantages:

- Aiming for good customer service will result in higher staff wages as you hire more
employees that are notable in communication with the customers and the staff may
experience burnout and stress from interacting with different problems of the customers
everyday.

3. Implement a more effective employee performance management.

Advantage:

- A good performance management system can assist an employee in realizing their

full potential, which can benefit both the employee and the high ranks in the company.

Disadvantages:
- This can be time consuming and biases are difficult to keep out of the process.
V. RECOMMENDATION

Making a business remain essential in the market is difficult to achieve but one thing is
for sure, better training programs for the employees of your company makes a huge
impact on the growth of a business. Training programs that are associated with
addressing the issues of the customers effectively, the monitoring of the system, and
gaining the trust of the existing and new consumers. Building a good connection in the
market will help the company’s reputation in the long run as they have shown a good
record of their services in their history of operations.

VI. PLAN OF ACTION

1. Invest more with technical support to make every customer's transaction go

smoothly.
2. Cebu Pacific Airlines should examine their performance management system from
all angles.
3. Orienting the employees about the marketing and promotions before launching is
a must so that they know what to provide and aid the issues of the customers.
4. Provide better customer service by having contact numbers for the customers to
call easily and have their issues and concerns responded to quickly.

VII. POTENTIAL PROBLEM

1. Attitude and Behavior of the ground and cabin crews towards the customers.
2. Higher labor cost to produce a more productive workplace.
3. Lack of control to unexpected surge of technical difficulties.
4. Negative word-of-mouth of the consumers that takes their concerns through the
internet.
5. The urge of travelers to file a class-action lawsuit to the airline regarding the
unexpected charges.

VIII. CONTINGENCY PLAN OF ACTION

1. Make the travelers feel important and valued by listening and taking actions with
their concerns attentively as most of them travel to ease their mind and not get stressed
from the treatment that they will receive from the service.
2. Create a healthy workforce that leaves room for improvements as customer
satisfaction depends on a company’s employees motivation to work.
3. Offer appropriate value of exchange, compensation, service and rewards to the
consumers to help in retaining their trust in the company.

IX. GENERALIZATION

To remain competitive and significant in the market will always be one of the hardest
objectives for every company to attain as the surge of problems comes without notice.
Addressing the customers' concerns and offering actions to solve the issue in the right
manner will make a great impact on how the target market will see them as a brand. Not
every company can overcome the challenges that occur in the market resulting in low
sales, lower profitability and bad reputation. There are many ways for company growth;
Leaving room for improvements as listening to criticism and not taking this in a bad way
will help the company to be more open to different opportunities. Communicate and
Comprehend well with everyone involved in the workplace for better relationships that will
lead to greater customer service. And utilizing a great deal of knowledge and
collaborating to find solutions is the best way to overcome any organizational challenge
as people have different perspectives and experiences.
REFERENCE

Cebu Pacific Air. (n.d.). https://cebupacificair.com/about?lang=en-PH

How small businesses can avoid technical glitches. (2020). Business Chief APAC.
https://businesschief.asia/technology/how-small-businesses-can-avoid-technical-
glitches-1

Importance of Customer Service Explained: 8 Benefits | Mailchimp. (n.d.). Mailchimp.

https://mailchimp.com/resources/importance-of-customer-service/

Relativo, J. (2023, April 1). Travelers take to the internet their complaints during Cebu
Pacific
Super Pass glitches. Philstar.com.
https://www.philstar.com/business/2023/04/01/2256148/angry-travelers-take-internet-
thei r-complaints-during-cebu-pacific-super-pass-glitches

SHIFT Communications. (2020, June 9). 5 Tips for Overcoming Challenges in Company
Growth. SHIFT Communications: A Performance Communications Agency + PR Firm in
Boston | New York | San Francisco.
https://www.shiftcomm.com/insights/5-tips-for-overcoming-challenges-in-company-grow
th/

Younis, A. (n.d.). Advantages and Disadvantages of Performance Management.

linkedin.com.
https://linkedin.com/pulse/advantages-disadvantages-performance-management-arslan-
yo unis
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF BUSINESS ADMINISTRATION

SERVICE QUALITY AND CUSTOMER SATISFACTION:

A CASE STUDY IN THE BANKING SECTOR

Prepared by:
Pagayatan, Mark Raymond G.

Presented to:
Dr. Leonardo G. Adap

April 2023
THE CASE

The study explains the effect of service quality on customer satisfaction by

explaining their relationship in the banking sector. It also identifies various factors
affecting both service quality and customer satisfaction. With the help of this case,
companies can adopt various practices to improve quality of service which then will
improve customer satisfaction and create loyalty.

I. STATEMENT OF THE PROBLEM

The aim of the study is to analyze the impact of service quality on customer satisfaction.
Also, to find the association and relationship between customer satisfaction and the
quality of services provided by the companies. In the business industry, customers are
the main driving force of profit and revenue for service organizations and improvement in
service quality leads to consumer loyalty. By concentrating on the connection between
service quality and customer satisfaction as well as how quality may be enhanced by
service organizations, this study attempts to investigate the consequences of quality
satisfaction.

Major:
1. Does service quality have any effect on customer satisfaction?
2. What are the steps that are needed to be taken to improve the service quality in
the organization?
3. Does a great service quality affects and encourages repeat purchases and
creates loyalty?

Minor:
1. Is the current service quality standard effective?
2. What are the practices and standard that staffs and employees do that affects
customer satisfaction?
3. What are the expectations of the consumers from our staffs and employees?
II. STATEMENT OF OBJECTIVES
The objectives of the study are divided into two categories:

Musts:
1. To be able to identify the relationship between service quality and customer
relation.
2. To be able to identify the steps needed to be taken to improve the service quality
in the organization.
3. To be able to identify if a great service quality influences repeat purchases and
builds loyalty.

Wants:
1. To know if the current service quality is effective.
2. To know the expectations of the consumers
3. To increase the sales and profit.

III. AREAS OF CONSIDERATION

1. Standard quality service.
2. Practices to promote standard in quality of services.
3. Customer’s feedback and satisfaction.
4. Sales and profit.
5. Employee growth.

IV. ALTERNATIVE COURSE OF ACTION

1. The company can conduct surveys and listen to its consumer to be able
to change and align its service design to the need of the consumer.

Advantages:
The advantage is that the company knows what the consumers want and what
they expect with the company. Knowing these the company can work on its service
design to align and satisfy all of its consumer and increase loyalty and sales.

Disadvantages:
Each consumer is different from on another, not all the suggestions, grief and
concerns of all the consumers will be addressed. To add to that, changing or
improving the service design of the company requires a lot of time to adjust and
train employees, and money and resources to fund seminars, trainings and
workshops.

2. Surprise customers, or add a “WOW” factor.

Advantages:
Consumers assess the quality of the service during the delivery process, and it is
highly challenging to surpass their expectations by simply offering trustworthy
services. Managers must therefore take into account the "WOW" element in their
service offerings. Companies should include some unexpected components in
their service offerings, such as grace, civility, extraordinary swiftness,
understanding, and commitment, in order to go above expectations and satisfy
client requests.

Disadvantages:
It will be hard to set a standard for implementing the “WOW” factor because not all
employees have the same trait and attitude and not all employees have the same
trait and attitude also.
 3. Promoting fair play and servant leadership.

Advantages:
The idea of fairness includes client expectations. Customers anticipate that service
providers would act ethically, keep their word, and be reliable. Customers primarily
demand that businesses respond quickly (responsiveness), offer convenient
service options and communication channels (tangibles), fulfill the 19
commitments (reliability), provide individualized attention and courteous service
(empathy), and offer substantial and competent services ( Assurance). Also, it
must offer the guarantee to show fairness toward service offerings. It allows the
customer the option to cancel the service and demand payment if he is unhappy.

Disadvantages:
Again, it will be hard to set a standard for implementation.

V. RECOMMENDATION
The company should first listen to its consumer. Conduct surveys and interviews
to know what the consumers expect from the company. After knowing what the
consumers expect and want from the company, the company now need to align its service
quality on the need of the consumers. To do that, they must start first to plan the course
of action, and then administer workshops, seminars, and training for their employees. To
give employees credit for undergoing new learnings and trainings, the company can give
incentive pays and promotion to those who excel from their job and to those who practice
the standard service quality. Finally, the company should monitor to the effects of the
changes that they have made, whether good or bad, look for increase or decrease in
sales or repeat buyers. If there is a positive result from the changes that they have made,
they should continue to implement the changes that they made and if not, try to formulate
a new solution once again.
VI. PLAN OF ACTION
1. Formulate a survey, that is directed to the consumers on what to they expect from
the quality of service you are offering.

2. With the data gathered, formulate the best service quality that is aligned to the
needs of the consumers.
3. Set up training, seminars, and workshops for employees to learn the new skills and
attitude to be able to deal with the consumers and satisfy their needs.

4. Compensate the employees who excelled and has done a great job on learning
and applying the standard service quality by giving incentive pay, bonuses and
promotions.

5. Observe for the results. Look for either good or bad feedback from the consumer.
An increase in sales, or increase in repeating buyers might mean that the changes
in the service quality is effective and should be further enhanced and continued,
but if the feedback and results are the opposite, or have decrease in sales, the
company should find another solution and implement it and see if it works.

6. Lastly, continue to uphold standard do satisfy the needs and wants of the
consumers.

VII. POTENTIAL PROBLEM

1. Setting a new standard and new culture- old employees might not want to learn
new things or new standard because they are already familiar with the old way of
things and culture.
 2. Funds- It might be pricey or expensive to supervise seminars, workshops and
trainings for employees, and to add to that the compensation for the employees
whenever they to great in their job.

3. Supervision of new standard- leaders need to also know the new standard of
service quality to be able to supervise the other employees on doing the standard.

4. Lack of consistency- it is hard to stay consistent on the standard especially on the

service business.

VIII. CONTINGENT PLAN OF ACTION

1. If the first plan of action is not effective, the company can look at some of the few
things:

2. Try to create another plan which is also align with the need and wants of the
consumers.

3. Be stricter when it comes to training, seminars, and workshops of the employees.

It is also recommended to contact experts on the field when it comes to training
and seminars.

4. Be stricter also on the implementation, instead of giving bonuses and incentives,

the company can try to formulate sanctions and punishments to those who don’t
practice the standard.

IX. GENERALIZATION

There is strong relationship between service quality and customer satisfaction.

Service quality is defined as quality of service that a business offers to his consumers that
either meets or exceed, or do not meet customers expectations, while customer
satisfaction is defined as customers overall satisfaction with a service or product.

It is important to know the relationship between the two because a high-level

service quality which follows a standard is more likely to have higher levels of customer
satisfaction, and vice versa, a lower level of service quality much more likely will result to
a lower level of customer satisfaction.

In the end, to attain a high degree of customer satisfaction, businesses must make
sure they offer their clients top-quality services. Increased customer loyalty, favorable
word-of-mouth, and eventually business success can result from this.
References:

Qadeer, S. (2013). Service Quality and Customer Satisfaction: A case study in Banking
Sector. https://www.diva-portal.org/smash/get/diva2:706160/FULLTEXT02.pd
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF BUSINESS ADMINISTRATION

Enhancing Trust and Customer Satisfaction through Efficient

Delivery Services: A Case Study on Food Panda

Presented by:
Talplacido, Lance Harold B.
BSBA-MM 1-2N

Presented to:
Professor Leonardo G. Adap

April 2023
The Case

Foodpanda is a worldwide online meal delivery platform with its headquarters in

Berlin, Germany, and was founded in 2012. In June 2014, Foodpanda launched in the
Philippines and it now has more than 1,000 partner eateries nationwide. It gains popularity
in the Philippines as a result of its low costs, variety of eateries, and accessibility.
Furthermore, in 2021 Foodpanda reached an estimated 70% market share among food
delivery mobile apps in the country after demand surged last year. And until the new
normal Foodpanda was still in-demand amongst their users. However, there have been
circulating negative reviews on TikTok and Google websites regarding long delivery times
that causes poor quality of the food, including instances where delivery drivers have failed
to meet customer expectations. The negative impact of these reviews and comments may
affect the trust of some users because some users frequently utilize online reviews as a
deciding factor when using delivery mobile applications. What are the negative effects of
these reviews and comments on the Foodpanda applications for current and future users?
How does Foodpanda make sure its customers trust the quality of their services for food?

I. STATEMENT OF THE PROBLEM

The purpose of this research is to determine the best solution to the negative
reviews online to ensure that users trust the Foodpanda delivery service and the quality
of the food.

Major:

1. How do these negative reviews impact the trust of current and potential customers
in Foodpanda's quality of service?
2. How can Foodpanda address negative reviews and comments related to delivery
times and food quality to maintain the trust of current users?
3. What can Foodpanda do to improve its delivery procedure and lessen the
likelihood of lengthy delivery times?
Minor:

1. What role do customer reviews and feedback play in shaping the image and
reputation of Foodpanda?
2. How do other food delivery platforms address the issue of long delivery times and
maintain the quality of the food that was ordered?

II. STATEMENT OF OBJECTIVES

The objectives are divided into two (2) categories:

Must:

1. To address negative reviews and comments to maintain its reputation and the trust
of its customers.
2. To enhance its delivery processes in order to guarantee timely and exact
deliveries, which are essential in maintaining customer satisfaction and trust.

Wants:

1. To determine the best methods for enhancing customer trust and satisfaction,
which can increase user acquisition and retention.
2. To maintain a competitive edge in the food delivery industry by providing
highquality food delivery services that meet or exceed customer expectations.

III. AREAS OF CONSIDERATION

1. Delivery time.
2. Users/Customers complain and review.
3. Increased potential competitors.
4. Intangibility or lack of control over the quality of food prepared by the restaurants.
5. Customer experience and satisfaction: This includes factors such as delivery time,
the accuracy of orders, customer service, and overall user experience.
IV. ALTERNATIVE COURSE OF ACTION

1. Foodpanda can provide regular training for the delivery personnel

To ensure that delivery personnel understand and adhere to the company's
quality and delivery requirements, Foodpanda should regularly instruct the delivery
personnel. This can speed up delivery times, maintain food quality, and ultimately
promote customer trust.

Advantages:

The advantage if the delivery personnel has received proper training they may be
able to complete deliveries more quickly and properly and skilled delivery personnel has
the abilities required to do their duties successfully, which may improve customer
satisfaction and loyalty.

Disadvantages:

Frequently training delivery staff can help to speed up and improve the quality of
food deliveries, but it can also be expensive and time-consuming. Additionally, there
may not be enough time for staff training with the daily hectic schedule, which may not
be helpful in making the employee productive or knowledgeable. Over-training can also
become stressful for the employee over time, leading to a loss of interest and job
performance going down.

2. Foodpanda can use and implement route planning for their delivery
personnel
McDonald's, Burger King, and Domino’s use route planning to make delivery
simpler and faster. So Foodpanda can use route planning for their delivery staff to
enhance delivery accuracy, shorten delivery times, and optimize delivery routes, all of
which contribute to a more effective and efficient delivery process. Route planning can
also assist in controlling consumer expectations by giving more precise delivery
predictions and lowering the possibility of delayed deliveries, which can enhance
customer satisfaction and loyalty.
Advantages:

The advantage of implementing Route planning is it can significantly improve the

delivery procedure of Foodpanda and reduce the likelihood of lengthy delivery times.
Route planning software can optimize the route of delivery, making the process smooth
and efficient. Delivery route planning guarantees prompt delivery while minimizing driver
stress, which lowers the chance of delayed deliveries.

Disadvantage:

Route planning may also present certain difficulties or drawbacks. Traditional

route planners might not be able to cut expenses and empty miles while keeping track
of delivery fleets in real time. Due to huge orders and escalating consumer demands,
manual planning might be quite difficult as well. Poor delivery productivity can also
result from insufficient predictive vision also this approach may require investment in
software or hiring additional staff to manage the routing process.

3. Foodpanda can improve communication with customers regarding delivery

times and food quality.

Improving communication with customers regarding delivery times and food

quality can benefit Foodpanda it can increase customer satisfaction, which is crucial for
retaining customers and attracting new ones, and help customers make informed
decisions about their orders, leading to fewer complaints and returns.

Advantage:

The advantage of implementing customer communication regarding delivery

times and food quality is that it can enhance overall customer satisfaction, resulting in
positive reviews, strong brand image and increased brand loyalty. Additionally, it can
assist Foodpanda in identifying areas for improvement in its delivery process and food
quality, resulting in better service and greater customer satisfaction. Finally, it can help
Foodpanda in gaining the customer satisfaction necessary for sustained success in the
food delivery sector.
Disadvantage:

The potential disadvantages of improving communication with customers are

also present. First of all, it can call for more resources, such as technology and
customer service agents, which could raise expenses. Second, it could raise client
expectations, which can be challenging to constantly meet. Finally, it can necessitate
more time-consuming and expensive training for delivery staff and customer care
agents.

4. Foodpanda can offer refunds or compensation for delayed deliveries or

poor-quality food

Foodpanda can provide refunds or compensation for late delivery or poor meals
because it can help to identify the areas for improvement in the delivery process and
food quality, which will result in better service and higher levels of customer satisfaction.

Advantage:

The advantage of offering refunds or compensation for delayed deliveries or

poor-quality food may help in reducing negative reviews and comments. Additionally, it
might help in maintaining consumer satisfaction and loyalty, both of which are essential
for keeping current customers and attracting new ones. Additionally, it can support client
relationship development, which is crucial for long-term success in the food delivery
sector.

Disadvantage:

There may be certain disadvantages to providing refunds or compensation.

First of all, it would raise Foodpanda's expenses, which might affect profitability.
Second, it might result in a rise in bogus claims for refund or compensation. Lastly, it
can lead to customers abusing the rule by making unreasonable claims for refunds or
compensation.
V. RECOMMENDATION

Based on the discussion of the analysis of the case study and critical thinking, I
would recommend that Foodpanda an online meal delivery platform should provide
regular and comprehensive training for the delivery personnel to address negative
reviews and comments related to delivery times and food quality also to maintain the trust
of current users. Furthermore, I believe giving proper and regular training to the delivery
personnel will help them to improve their delivery times, maintain food quality, and
ultimately promote customer trust. Through training, the delivery personnel may find the
best methods for avoiding traffic, maximizing delivery routes, and guaranteeing that
orders are delivered on time and precisely. In addition, I also recommend Foodpanda
should improve its communication with customers regarding delivery times and food
quality. By offering a simple and straightforward feedback system for users to report any
difficulties they encounter, Foodpanda can resolve concerns about food quality.
Foodpanda can increase consumer satisfaction and customer retention by enhancing its
relationship with customers through improved communication. It may be challenging and
costly to conduct regular training of delivery personnel and improve communication with
customers but this could lead to a higher level of customer satisfaction, positive reviews,
and increased revenue.

VI. PLAN OF ACTION

1. Collect information from a number of sources, such as customer reviews, delivery

history, and restaurant partners, to look into the underlying reasons for complaints about
slow delivery and poor food quality.
2. Employ a more open line of contact to effectively manage the expectations of
customers, especially regarding delivery schedules and updates. Push notifications, SMS
messages, or email alerts can all help with this.
3. Implement programs that involve training the drivers on proper food handling, time
management, and customer service on a regular schedule. Additionally, businesses may
track the drivers' performance using customer reviews and performance indicators, and
they can offer rewards for superior customer service.
4. Constantly track and examine customer feedback, particularly critical reviews, and
comments, and utilize this information to inform data-driven decisions that improve
customer satisfaction and loyalty.
5.

VII. POTENTIAL PROBLEM

1. Time-consuming. Training programs require time and effort also which can affect
the daily schedule operation of the delivery riders.
2. Customers may still experience delays and poor food quality because of
uncontrolled service.
3. Maintaining the quality of food. since the delivery rider cannot taste or smell it
before it is delivered.
4. Continuous competition within the market.
5. Lack of budget.

VIII. CONTINGENT PLAN OF ACTION

1. More accurately indicate delivery timeframes for consumers and make it simple for
them to check the status of their orders in real-time to increase delivery time transparency.
2. Establish a loyalty program that offers discounts or free merchandise to customers
who place a particular number of orders in exchange for their repeat business. Even if
users have had problems in the past, this might help them feel more inclined to use the
Foodpanda app going forward.
3. To help guarantee that meals arrive in good shape, look into investing in more
reliable and safe packaging. This can entail internal packaging solution development or
working with suppliers to find better materials.
4. Providing incentives for the employees who received positive reviews and
comments to enhance their performance.
IX. GENERALIZATION

The establishment of customer trust as well as satisfaction is one of the key factors
that contribute to a business's success. This case study of Foodpanda highlights the
importance of maintaining customer trust and satisfaction in the competitive online food
delivery industry. Negative reviews and comments can have a significant impact on
customer trust and loyalty, which can result in a decrease in revenue as well as
customers/users. Therefore, it is crucial for businesses like Foodpanda to determine the
most effective and feasible solution that can address customer concerns and feedback
promptly, such as improving delivery time, food quality, and customer service. So, I've
come to the conclusion that by implementing proactive measures like collecting and
analyzing customer data, providing regular driver training, and continuously tracking
customer reviews, improving communication with customers, businesses can better
understand their customers' needs and preferences and take necessary actions to
enhance their services' quality and reliability. Ultimately, maintaining customer trust and
satisfaction might help online meal delivery services like Foodpanda in holding onto their
competitive advantage and expanding their customer base.
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Chron.com. https://smallbusiness.chron.com/disadvantages-overtrainingworkplace-
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Bhasin, H. (2019, September 3). SWOT Analysis of Foodpanda. Marketing91.

https://www.marketing91.com/swot-analysis-of-foodpanda/

Duncan, C. (2022, April 14). Staff Training: Why It Is Important and 6 Tips for 2022 |
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Kia Hui Gan, Thiam-Yong Kuek, Rout, K., & Yun Ru Ong. (2022, May 20). The
Performance of Foodpanda: A Study of Customer’s Perspective and Satisfaction in
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