1.

0 Objective

This assignment is about Pizza Hut Malaysia which in one of the service provider
company. We do the research according to the introduction to Pizza Hut Malaysia, three-
model services of the company, company’s targeting customer, the strength and
weaknesses of competitors and opportunities for creating new market and conclusion

1.1 Background of Pizza Hut Malaysia

Pizza Hut Malaysia main branch located Level 7, Tower 1 Vsquare At Pj City Centre,
Jalan Utara Petaling Jaya; Selangor; Postal Code: 46200. There are 221 branches over
the state of Malaysia. Contact number of Pizza Hut Malaysia is 1300-88-2525.
Regarding online order can refer to https://www.pizzahut.com.my .

1.2Founder’s background

Brothers Dan (born 1931) and Frank Carney (born April 26, 1938 in Wichita, Kansas)
are American entrepreneurs, the founders of Pizza Hut.
Dan and Frank Carney were born into a blended family of twelve children, and raised in
Wichita, Kansas, where they live today.

1.3Type of organization
1.4Growth of history

Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of
Wichita, Kansas. When a friend suggested opening a pizza parlor, they agreed that the
idea could prove successful, and they borrowed $600 from their mother to start a
business with partner John Bender. Renting a small building and purchasing
secondhand equipment to make pizzas, the Carneys and Bender opened the first “Pizza
Hut” restaurant; on opening night, they gave pizza away to encourage community
interest. They chose the name “Pizza Hut” since the sign they purchased only had
enough space for nine characters and spaces. Additional restaurants were opened, with
the first franchise unit opening in 1959 in Topeka, Kansas. The original Pizza Hut
building was later relocated to the Wichita State University campus.

2.0 Three-stage model

2.1Pre-purchase stage

The pre-purchase is first stage model of service consumption. Pre-purchase is defined

as a series of information acquires according to consumer-specific decision making
evaluation, which recognize salient information from different resources depending on
situation (Hoffman, 1998). Pre-purchase can also being defined as customer decision on
their initial decision making pertaining to their purchase of a product or service that being
reflected by their underlying needs (Lovelock & Wirtz 2004).

At pre-purchase stage, Pizza Hut Malaysia starts to be aware of consumer needs and
wants. Pizza Hut Malaysia awareness needs a restaurant for our family reunion and they
wants provide the Italian food and beverage services. Pizza Hut does provides many
types of services for consumer needs such as, phone call service. For example,
consumer can call to Pizza Hut hotline to order pizza for delivery service. The delivery
service is to make consumer feel convenient and to solve consumer’s transportation
problem. Besides that, consumer can order through phone for prepare the food and pick
up at shop. This pick up service is to help consumer reduce the waiting time and
queuing time. Pizza Hut does provide their pizza in many food order apps such as
Delivery Eat and Food Panda. This tangible service is based on people processing that
provide service directed at the customer.
Under information search stage, it plays a relative important role in defining consumer
needs and wants as discussed earlier. Pizza Hut Malaysia decides what to the service
needed, they will seek for information prior our consumption. Such information search
can either be active or passive, depending on the level of involvement and perceived risk
associated to the search of information. Active and passive information search normally
share by the family, friends and colleagues. For example, family and friends will give
feedback and comments to their friends and it will lead consumer to visit their shop again.
Pizza Hut also uses to advertise their promotion at mass media such as Facebook, radio
and catalog. The example of Pizza Hut catalog below:

In addition, perceived risk is the uncertainty a consumer has when buying items. Every
time a consumer considers buying a product, he or she has certain doubts about the
product, especially if the product in question is highly priced.

The risk that faces by Pizza Hut is physical risk. For example, consumer worries mold
and spoil food or beverages will lead to food poisoning or cause them feel uncomfortable.
Pizza Hut decided to make an open kitchen and show consumer their kitchen is clean
and neat. Pizza Hut will hire stock manager to check their stock such meat, vegetables
and beverages to ensure their stock is fresh and the expiry date. Pizza Hut also hires
employees that qualified with food safety education. Another risk that faces by pizza is
temporal risk. For example, consumer prefer pizza serve with hot and delicious if the
shop take longer time to serve and delivery it will cause consumer frustration. Pizza Hut
decided to hire with more chef and staff or purchase more equipment to help to improve
in efficiency and effective. Besides that, Pizza Hut does hire more riders for delivery
services to make sure they can pick up on time. Lastly, one of the risks that face by
Pizza Hut is social risk. Consumer does care about the react of the Pizza hut. If other
people spread rumors of the pizza with low quality and the pizza is distasteful it could
influence the consumer purchase decision. In order to avoid the issue happen, Pizza Hut
will advertised their product and create brand name in the society. Other than that, Pizza
Hut will create event on every month to give free pizza, prize and promotion to win
consumer loyalty.

Apart from information search and awareness of consumer needs in consumption

service, at pre-purchase stage, Pizza Hut Malaysia also do alternatives search. Such
alternative search enables us to have more choices on our consumption. When Pizza
Hut Malaysia from information searches, they have few alternative choices which are
Domino Pizza and US pizza. At this stage, they are concern on consumer choices
between different services provided by both Domino Pizza and its competitors which US
Pizza. They not only evaluate the service provided by Domino Pizza, but also similar
service provided by other competing service providers. Domino Pizza is a restaurant that
they provide efficiency service to let customers get their pizza fast. But the Domino Pizza
does not have a seat to provide a group customers seat on together. However, the US
Pizza is an ordinary local Italian restaurant and they provide less choice of the food and
beverage. For their decision making, they are discussing on Facebook and compare the
entire two restaurants. After discussion, consumer are decide to choose Pizza Hut
Malaysia because its service and environment provide be close to consumer needs.

2.2Service encounter

After making a pre-purchase decision, Pizza Hut Malaysia will consume a service
encounter of Pizza Hut Malaysia. A service encounter is a period of time during the
customer interacts directly with a service provider. Pizza Hut Malaysia is providing us the
tangible service.
Throughout service delivery between customers and organization that consists of
different level of services which is high-contact services and low-contact services.
Example for Low-contact service and high- contact service below:

Customer Access to Employees

Low-contact customer service typically keeps consumer at arm's length, dealing with
entry-level service reps and seldom reaching top-level managers or executives when a
problem occurs.

But when comes to Pizza Hut High-contact customer service they offers consumer with
an opportunity, if needed, to speak to employees higher up the chain of command. For
example, if a customer's food or beverages have the wrong order or mold. Consumer
can speak to a manager to discuss the problem.

Customer Information Gathering

The level of information Pizza Hut gather to address customer problems will vary,
depending on the level of customer service provide. If Pizza Hut option for low-contact
customer service, they address customer concerns and problems as they come up. This
strategy typically doesn't gather a lot of information to identify specific solutions.

For example, customer information lost and couldn’t go for delivery because without
phone number and home address. The store does not back up the information on the
problem to create any kind of problem solving work flow. High-contact customer service,
however, analyzes customer complaints to create solutions. For example, upgrade the
order system and auto backup information before shut down the system.

Customer Interaction with the Pizza Hut Malaysia

The way customers interact with Pizza Hut differs between high- and low-touch
customer service programs. With low-touch customer service, customers often don't
speak directly with a human at all. For example, Pizza Hut only offers an email address
as the point of contact when a customer needs help with a problem.

High-touch customer service typically offers a call center or a representative to meet the
customer and fix the problem. For example, if a customer has problems with delivery
service not on time or wrong order and a new order will sent to the consumer also will
give a free pizza this is a high-contact service.

Theater as a metaphor for service delivery

The theater is an apt metaphor for understanding the creation of service experiences
through the service system. This is because service delivery consists of a series of
events that customers experience as a performance. The actors in a theater need to
know what roles they are playing and need to be familiar with the scripts. Similarly, in
service encounters, knowledge of role and script theories can help organizations to
better understand, design, and manage both employee and customer behaviors during
service encounters.

Service Roles and Scripts

Roles are combinations of social cues that guide and direct behavior in a given setting.
Just as there are roles in dramatic performances, there are roles in service delivery. For
example, the role and script of a hostess in Pizza Hut is to acknowledge and greet
customers as ‘Welcome to Pizza Hut’ and lead them to a table where they will eat. Pizza
Hut’s employees explain the food menu to the consumer also promoting the new menu
to consumer. Besides that, they will teach them choose the flavor step by step. The most
important roles are they promise to serve the food with fast to ensure the pizza is still hot
and cheesy. After consumer finish their meal, employees will greet with ‘Thank you’ to
ensure consumer satisfied with their services. Other than that, they will lead consumer to
waiting zone when the table is full and serve consumer with water. In addition, one of the
roles is Pizza Hut promise to deliver the pizza with good condition and within 30 minutes
to the consumer’s house. Apart from this, they ensure will pick up any phone call in 3
seconds and won’t let consumer wait for too long. Pizza Hut’s services roles and script
have gained a lot of consumer.

2.3Post-purchase stage

After service encounter, then enter the post-purchase phase. During the post purchase
stage, we will evaluate the service performance that we have received and compare it
with our prior expectations (Lovelock & Wirtz 2004).
Post purchase produce satisfaction and loyalty, which are aim of most marketing
strategies. The product is evaluated to dissatisfaction or satisfaction. If it is
dissatisfaction, customer may produce complaints. The complaints must be handling
properly to reserve dissatisfaction. If it is satisfaction, loyalty may perform and the
customer is committed to the service.

Comparison of the Pizza Hut Malaysia’s service performance with our received and prior
expectations, it satisfied consumer prior expectations. Whatever it is expensive than
Domino Pizza and US Pizza but it provide consumer with the foods service also with the
best behavior of their employees, comfortable and graceful environment. Therefore,
consumer is satisfaction its employees’ service behavior and the environment provided.

Post purchase dissonance is a doubt or anxiety about the correctness of one’s decision
after a purchase has been made (Lovelock & Wirtz 2004). Customer’s satisfaction is a
purpose of the proximity between the customer’s expectations and the service’s
perceived performance. If the performance is below the customer’s expectations, then
the customer will be dissatisfied and will suffer the consequences resulting from the
mismatch. Dissatisfied customers will reduce the cognitive dissonance and customer will
exhibits risk-reducing behavior. Customers may attempt to modify the facts of the
purchase scenario, mostly by reducing the proposed price paid for the goods when it
meets dissatisfaction. Dissatisfaction is the feeling experienced by a customer whose
expectations have not been met by a service. However, the purchase has resulted in
complete dissatisfaction and goods returning are not probable, this strategy is to hide the
good away in an attempt to forget about the purchase. On the other hand, word-of-
mouth (WOM) plays an important role in the advertising. Word-of-mouth is used to
reduce the cognitive dissonance following a major purchase decision. Nevertheless,
word-of-mouth serves functions of ego defense otherwise as a means of enhancing the
status of the information giver, as well as dissonance reduction.

Purchase satisfaction is the ultimate goal of marketing. It results when perceptions of

product performance match expectations that are at, or above, the minimum desired
performance level. It happens when the purchase expectations are fulfilled; there is a
tendency for customers to repurchase and loyalty to the services. Repeat purchase is a
pattern of customer behavior that involves the purchase of the same product or services
over time (Lovelock & Wirtz 2004).
However, consumers develop certain expectations about the ability of a product to fulfill
instrumental and symbolic needs. If the services meet the needs, satisfaction is likely to
result. In the other round, if the expectations are not meet, dissatisfaction is being
experiences. In this case, consumers are always satisfied about the services provided
by Pizza Hut Malaysia.

References

1. Aaron Marquis (2019, Mac 30). Differences between Low-contact service and high-
contact service. Available from https://smallbusiness.chron.com/difference-between-
high-low-customer-contact-service-33808.html [Accessed 25 Sept 2019]
2. UKEssays. (November 2018) Food and beverage sector in the consumption service.
[Online]. Available from: https://www.ukessays.com/essays/marketing/food-and-
beverage-sector-in-the-consumption-service-marketing-essay.php?vref=1 [Accessed
30 September 2019]
3. Don Daszkowsk (2019, Feb 1) The Founder of Pizza Hut. Available from
https://www.thebalancesmb.com/pizza-hut-s-founding-brothers-frank-and-dan-
carney-1350958 [Accessed at 25 Sept 2019]