Transcript PPT Chapter 2

Chapter Two
Marketing Services
Services Versus Goods
Intangibility
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The attributes of services that cannot be
grasped by any of the five senses
Aspects of a service that are difficult to
grasp prior to purchase
Purchase is based on consumer
expectations
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Foundations and Practices by Shoemaker & Shaw
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Services Versus Goods
Tangibility Spectrum
Salt
 Soft Drinks
 Detergents
 Automobiles
 Cosmetics Fast-food
 Outlets
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Tangible
Dominant
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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Fast-food
Outlets
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Intangible
Dominant
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Advertising
Agencies
Airlines
Investment
Management
Consulting
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Teaching
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Services Versus Goods
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Services Versus Goods
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Services Versus Goods
Perishablility
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If not sold by a particular time, the
opportunity to sell it again is gone
forever
Complicated by fixed capacity
Unique to the hospitality industry
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Services Versus Goods
Heterogeneity
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Delivery of services is inconsistent due to employee
variance and varying needs of customers
“Moment of truth” when the service product meets
service delivery and consistency is key
Customers are also varied and have different wants
and needs
The use of self-service technologies in an attempt
to standardize service
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Services Versus Goods
Simultaneous production and
consumption
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Services are consumed at the same time
they are purchased
Thus management is marketing in the
hospitality industry
Always the possibility of a new experience
with each purchase
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Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Services Versus Goods
The Hospitality Product
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The combination of goods, services,
environment and experience that the
consumer buys
Differences between services and
manufactured goods
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
The Hospitality Product
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Defines how the service should
theoretically work
“Plan your work”
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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The Hospitality Product
Exhibit 2-9; The Hospitality Product model
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
The Hospitality Product
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Physical product
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The tangible component of service
Service environment
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The physical environment in which the service is delivered
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Service Product
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Surrounding area
Layout
Signs and symbols
The core performance or service purchased by the patron
Service delivery
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What happens when the customer actually consumes the
service
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
The Hospitality Product
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Service Quality and Service
Gaps
Premise:
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The customer’s evaluation of a service purchase
(e.g., their satisfaction) is determined by how well
the purchase experience compares to their
expectations of the purchase experience
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Zone of tolerance is the range where customers are
still satisfied
Can use the SERVQUAL model
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Service Quality and Service
Gaps
Evaluations of services are based on
expectations because the characteristics of
services:
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intangibility,
heterogeneity, and
simultaneous production and consumption
make it almost impossible for consumers to
evaluate services in the same way they
evaluate goods:
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that is, before they buy the product
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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All Rights Reserved.
Gap Model of Service Quality
Performance > Expectation
Performance = Expectation
Performance < Expectation
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Possible Levels of Customer
Expectations
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Foundations and Practices by Shoemaker & Shaw
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Service Quality and Service
Gaps
Gap 1
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Gap between services expected by the customer and
management’s perceptions of customers’ expectations
Gap 2
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Gap between management’s perceptions of customer
expectations and service quality specifications
Gap 3
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Gap between service quality specifications and service
delivery
Gap 4
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Gap between the service delivered and the service promised
Gap 5
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Gap between the perceived service and the actual service
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Service Quality and Service Gaps
Exhibit 2-10; The SERVQUAL
Model
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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Foundations and Practices by Shoemaker & Shaw
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All Rights Reserved.
Service Quality and Service
Gaps
Dimensions of service quality
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The key is to incorporate the words into the
service experience to remind the customer that
they are receiving great service
The acronym R.A.T.E.R.
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Reliability
Assurance
Tangibility
Empathy
Responsiveness
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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Class Discussion
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Spend 10 minutes designing
a room service script for
employees that uses each
part of the RATER System
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.