Transcript Customer Satisfaction

Chapter 11
Building
Customer
Loyalty
through
Quality
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
“To understand service quality and make quality
management effective, we need profound
knowledge about the details and activities
connected with the emergence of a service.
This presupposes interest in service design and
service production.”
-Evert Gummesson
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Define customer value and customer
satisfaction
• Understand the difference between customer
satisfaction and customer loyalty
• Discuss attracting new users and retaining
current customers by developing relationship
marketing
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Know tactics for resolving customer
complaints and understand the importance of
resolving complaints
• Define quality and discuss the importance of
the benefits of quality
• Implement capacity and demand
management tactics
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Customer Delivered Value
• Customer-delivered value is the difference
between total customer value and total
customer cost of a marketing offer
• Customer satisfaction depends on the
product’s performance relative to a buyer’s
expectations
• Companies must be customer centered and
deliver superior value to target customers
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Customer Delivered Value
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Customer Satisfaction
• Buying decisions based on judgments formed
about the value of marketing offers
• Customer expectations based on past buying
experiences
• Today’s most successful companies raising
expectations and delivering performance to
match
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Customer Satisfaction vs.
Customer Loyalty
• Customer satisfaction measures how well a
customer’s expectations are met
• Customer loyalty measures how likely
customers are to return and their willingness
to perform partner shipping activities for the
organization
• Customer satisfaction is a requisite for loyalty
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Relationship Marketing
• Creating, maintaining, and enhancing
strong relationships with customers
– Basic
– Reactive
– Accountable
– Proactive
– Partnership
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Benefits of Customer Loyalty
• Continued patronage
• Reduced marketing costs
• Decreased price sensitivity
• Partnership activities
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Cost of Lost Customers
• Companies must define and measure
retention rate
• Company must identify causes of customer
defection and determine which can be
reduced or eliminated
• Reducing customer defections by only 5
percent can result in improved profits of over
25 percent
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Resolving Customer
Complaints
• A critical part of customer retention
• 82% of customers are likely to return if a
complaint is handled quickly, as opposed to
9% if it is not
• Most customers do not complain
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Quality
• Quality has emerged as an important area in
hospitality
• Product features enhance customer
satisfaction and adds to the cost of a product
• Freedom from deficiencies increases
customer satisfaction
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Quality
• Technical quality refers to what the
customer is left with after the customer –
employee interactions have been completed
• Functional quality is the process of
delivering the service or product
• Societal (ethical quality) means firms must
consider ethical responsibilities when
developing products
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Managing the Perceived Service
Quality
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Benefits of Quality Service
• Customer Retention
• Avoidance of Price Competition
• Retention of Good Employees
• Reduction of Costs
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Managing Capacity
1. Involve the customer in the service delivery
system
2. Cross-train employees
3. Use part-time employees
4. Rent or share extra facilities and equipment
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Managing Capacity
5. Schedule downtime during periods of low
capacity
6. Extend service hours
7. Use technology
8. Change the Configuration of the Service
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Revenue Management
• Revenue management is a
methodological approach to allocating a
perishable and fixed inventory to the
most profitable customers
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Managing Demand
1. Use price to create or reduce demand
2. Use reservations
3. Overbook
4. Use queuing
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Managing Demand
5. Shift demand
6. Change the salesperson’s assignment
7. Create promotional events
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Class Discussion
The Five-Gap Model
of Service Quality
Question: Describe ways in which you as
a Manager could use the five-gap model
of service quality
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
The FiveGap
Model of
Service
Quality
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Close Gap 1
1. Talking to customers
2. Talking to customer contact employees
3. Marketing information systems –
customer surveys – analysis by
segment – focus groups
4. Reducing levels of management
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Close Gap 2
1. Management Commitment –
resources, internal marketing, reward
systems
2. Use of hard and soft technology
3. Shift demand
4. Is meeting customer expectations
financially feasible?
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Close Gap 3
1. Training
2. Internal marketing, pride
3. Teamwork
4. Reward systems
5. Service quality audits
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Close Gap 4
1. Know the capabilities of the firm
2. Good communications within the firm
3. Internal marketing – teamwork
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Best Practices
• Service Guarantees by Hampton Inns
– Unconditional guarantees
– Specific guarantees
– Implicit guarantees
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Key Terms
• Customer centered
• Customer-delivered value
• Expected service
• Freedom from deficiencies
• Functional quality
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Key Terms
• Product features
• Revenue management
• Societal (ethical) quality
• Technical quality
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens