quality service delivery
DESCRIPTION
TRANSCRIPT
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Service Characteristics of Hospitality and Tourism Marketing
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COMPILED BY,P.SURESH,LECTURER,IHM,GWALIOR.
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Chapter Objectives
Describe a service culture
Identify four service characteristics that affect the marketing of a hospitality or travel product
Explain marketing strategies that are useful in the hospitality and travel industries
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Key Concepts
Service Culture Intangibility Inseparability Variability Perishability Internal marketing Interactive marketing Managing differentiation
Managing service quality Tangibilizing the service
product Trade dress Physical evidence Point of encounter Managing perceived risk Managing capacity and
demand Managing consistency
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The Service CultureService Culture: A culture that supports customer
service through policies, procedures, reward systems, and actions.
Service culture can be implemented:Through employee communicationThrough company policiesThrough personal actions
Empowers employees to solve customer problems. Has to start with top management and flow down.
Organization’s culture must support and reward customer need attention.
“Ritz Carlton’s “Gold Standards”
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Intangibility
Inseparability
Variability
Perishability
Can’t be seen, tasted, felt, heard, or smelled before purchase.
Can’t be separated from service providers.
Quality depends on who provides them and when, where and how.
Can’t be stored for later sale or use.
Characteristics of Service Marketing
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Intangibility• Services can not be seen, tasted, felt, heard, or smelled.• Tangible evidences reduce uncertainty • High risk associated with services. • Lack of tangibility after the experience• Companies should create memorable guest experiences• Tangibles provide signals as to the quality of the intangible
service. – Exterior and Interior design– Uniforms of employees
“Someone who purchase a service may go away empty-handed, but do not go away empty-headed” - Robert Lewis
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Tangible and Intangible Products/Services
Pure Pure tangible tangible good; no good; no serviceservice
Tangible Tangible goods with goods with
some some servicesservices
Hybrid: Hybrid: equal part equal part goods and goods and
serviceservice
Major Major service service
with with minor minor goodgood
Pure Pure service; service;
no tangible no tangible goodgood
Milk Computer& Warranty
Meal atRestaurant
LegalAdvice
Hair Styling
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Inseparability Customer-contact employees are part of the product Other customers become part of service The employee becomes part of service The customer and the employee interact with the
service delivery system. Customers and employees must understand the
service delivery system.Select, hire and train customers.Select and train contact employeesEmpower employees
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Variability• Services are highly variable• Services are produced and consumed
simultaneously.• Service consistency depends on the service
provider’s skill.• Fluctuating demand makes it difficult to deliver
consistent quality.• Lack of consistency a major source of customer
disappointment.• Guest expectations are different. • Train contact and non-contact employee
“Quality can not be controlled; must be produced”
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PerishabilityLack of ability to inventory
Lack of ability to inventory – services can not be stored Capacity and demand must be successfully managed If services are to maximize revenue, they must manage
capacity and demand. Change customer use pattern (Hourly, daily, seasonally) Cross-train employees Involve customer in the service delivery system
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Service firms use marketing to position themselves
strongly in chosen target markets. In a service business the customer and frontline
service employee interact to create service Service providers must work to interact effectively
with customers to create superior value. Successful service companies focus their attention on
both their employees and customers.
Management Strategies for Service Business
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External marketing = company and customers
Internal marketing = company and employees
Interactive marketing = employees and customers
Management Strategies for Service Business
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Internal Marketing Internal Marketing: The task of trainingtraining and motivatingmotivating employees to
provide good customer service. * Customer contact employees * Supportive employees • Employees are a critical part of the product and
marketing mix• There is a need for “internal” and as well as
“external” marketing.
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Interactive Marketing Interactive Marketing: Perceived service quality depends heavily on the quality
of the buyer-seller interactionbuyer-seller interaction during the service encounter.
• Service quality depends on both the service deliverer and the quality of the delivery
• The customer judges service quality not just on technical qualitytechnical quality (the quality of the food) but also its functional qualityfunctional quality (the service provided in the restaurant).
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Management Strategies for Service Business
1. Managing differentiation Need to develop a differentiated offer, delivery
and image. Offer innovative features Airlines offer in-flight movie, advance seating,
frequent flyer award programs QSR offers fast delivery services Differentiate service delivery through:
People Physical environment Process
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Management Strategies for Service Business
2. Managing service quality Delivering consistently higher quality than its
competitors The key is to exceed the customer’s service quality
expectations Identify the expectations of target customers
Empower frontline employees Develop a set of common virtues for service quality Set high service-quality standards. Watch service performance closely (own and
competitors).
“Promise only what you can deliver and deliver more than you promise”
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Management Strategies for Service Business
3. Tangibilizing the service product• Promotional material,• Employees’ appearance, and
uniforms.• Physical environment• Building exteriors• Equipment• Furniture and fixture• Signs
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Management Strategies for Service Business
4. Managing the Physical Surroundings Physical evidence that is not managed
properly can hurt a business. Poorly managed physical evidence sends
negative messages to customers. Physical surroundings should be designed to
reinforce the product’s position (organization image) in the customer’s mind.
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A Fishy Sign Story
NOW HIRING CLOSERS
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A Fishy Sign Story
NOW HIRING CLOSERS
Oops!! The C dropped off.
NOW HIRING LOSERS
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Management Strategies for Service Business
5. Managing Employees as Part of the Product In H&T employees are critical part of the
product and marketing mix Human resources and marketing departments
must work together The management should formulate policies
that support positive relations between employees and guests.
Must manage service at the “points of encounter” (R.Nykiel)
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Management Strategies for Service Business
6. Managing Perceived Risk Customers experience some anxiety before they
purchase hospitality and tourism services A salesperson must reduce client fear and gain the
client’s confidence. FAM trips and sampling help alleviate anxiety Hotels provide, rooms, food, beverage, and
entertainment at no cost to the prospective client. Customer loyalty increases for companies that have
provided a consistent product in the past.
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Management Strategies for Service Business
7. Managing Capacity and Demand Hospitality and tourism companies must adjust
their operating systems to enable them to operate at maximum capacity.
Complaints tend to increase when companies are operating at full or near to full capacity; companies must remember that their goal is to create satisfied customers.
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Management Strategies for Service Business
8. Managing Consistency Consistency is one of the key
factor in the success of a service business.
Basically, this means that customers receive the service they expect without unwanted surprises.
Many factors work against consistency
% 100 satisfaction guarantee
Product consistency
Price consistency
Procedure consistency
Service consistency
Taste consistency
Time consistency
Brand consistency
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Management Strategies for Service Business
9. Managing the Customer Relationship (CRM) CRM is a managerial philosophy and practice It combines marketing, business strategy, and
information technology to better understand the customers, to custom-developed products for key customers
CRM focuses on managing revenue opportunities from customers, retaining customers, and enjoying a stream of income from them over their lifetime.
Managing “Switching Costs”
THANK YOU ALL
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