Transcript Revision_TR04_Dec08_MTD_Supplement2009 - FMT-HANU

Revision for Graduation Exam
Marketing for Tourism and
Destination
Tran Tuan Anh
Details
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Chapter 3 & 11
“Services Marketing” by Lovelock et al
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Chapter 3
Customer Behaviour
in Service Settings
Chapter 3 Objectives
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Examine the typical CB process for buying
and consuming services
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Explore key differences between Eastern &
Western cultures that impact services
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Examine the impact of mood states, role,
script and control theory
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Understand customers’ intrinsic needs
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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The Consumer’s Decision
Making Process
The Decision making process is
influenced by our cultural values and
norms and comprises three stages:
 The pre-purchase stage
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The service encounter stage
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The post-purchase stage
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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The Pre-purchase Stage
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Recognition of needs
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Information search
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Evaluation of alternatives
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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The Service Encounter
Stage
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Understanding customer’s intrinsic
needs and values
Mood states
Role theory
Script theory
Communication Style
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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The Post –purchase Stage
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This stage will be covered in Chapter 4.
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Culture
‘Human beings draw close to one another
by their common nature, but habits and
customs keep them apart’ (Confucian
saying).
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Hoftstede’s Cultural
Dimensions
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Collectivism Vs. Individualism: Do
people rely on themselves or depend on
and respect the group?
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Power distance: Does society value
equality or inequality in interpersonal
interactions?
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Hoftstede’s Cultural
Dimensions
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Uncertainty avoidance: What is the
attitude towards risk in society?
How does this affect consumption
patterns?
Masculinity Vs. femininity: To what
extent and at whose expense should
the weaker members of society be
cared for?
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Types of Risk
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Functional: this is a concern about
performance outcomes e.g. ‘How can I be sure
my car will be properly serviced?’
Financial: this reflects financial risks and
unexpected costs e.g. ‘Will I incur extra
expenses?’
Temporal: this is about wasting time or
unexpected delays e.g. ‘Will the service be too
slow?’
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Types of Risk
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Psychological: personal fears and
other ‘negative’ emotions e.g. ‘Will the
service make me feel good?’
Social: how others think and react e.g.
‘Will my friends approve or admire me?’
Sensory: these are unwanted impacts
on the five senses e.g. ‘Will the
restaurant be too noisy?’
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Strategies for Risk Reduction
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Provide information
Firm’s reputation
Provide guarantees/warrantees
Standardise the service
Internet search
Seek tangible cues
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Factors Influencing the Consumer’s
Service Evaluation
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Mood states
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Role theory
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Script theory
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Control theory
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Behavioural control
Cognitive control
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Factors Influencing the Consumer’s
Service Evaluation
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Mood States- moods are part of the affective
domain, they may include: boredom,
aggression, joy, enthusiasm, disgust, interest
etc. Moods alter but can vary in duration.
Role Theory- this implies that consumers are
often acting a role-there may be a pattern of
behaviour, responses and attitudes that are
learned and applied to different situations
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Factors Influencing a
Consumer’s Service Evaluation
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Script Theory- Scripts are cognitive
structures that provide a framework for
service delivery. They may vary in scope and
intensity.
Control Theory- there are two main modes
of control-behavioural and cognitive. This
theory looks at the correlation between the
consumer’s feeling of control, behaviour and
judgement of service provision
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Consumers’ Needs in a Service
Setting
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Security: this includes serious
physiological issues as well as safety
needs such as our need for protection
and stability. Security needs may
include avoidance of physical and/or
financial risks.
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Consumers’ Needs in a
Service Setting
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Respect: a fundamental, higher-level
human need.
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Esteem: the individual’s self concept, or
self identity
Is the service level provided congruent
with the consumer’s respect and
esteem needs?
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Consumers’ Needs in a
Service Setting
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Face: this represents dignity based on a
correct relationship between a person
and the groups to which they belong i.e.
all interpersonal relationships.
‘Face’ incorporates personal pride, a
high sensitivity to shame and dislike of
open conflict.
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Consumers’ Needs in a
Service Setting
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Fairness / Equity: this is about how
people feel they are treated in terms of
fairness, justice or equity.
Distributional fairness: perceived
fairness of the outcome or decision
Procedural fairness: the perception of
whether the procedures used to arrive
at the outcome or decision are fair.
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Issues of Fairness and
Equity
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Keeping promises
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Inequity of waiting lines or queues
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Discrimination
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Chapter 11
Managing Capacity
and Demand
Chapter 11 Objectives
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Explain and use capacity management
techniques to meet variations in
demand
Explain the patterns and determinants
of demand
Formulate demand management
strategies and techniques
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Managing Capacity: The
Challenge
Productive capacity may concern:
 Physical facilities such as hotels, medical
clinics, entertainment facilities, and transport
 Service provision equipment such as
telephones, hairdryers, scanners, and cash
registers
 People processing services in which the
capacity to serve is constrained by the
number, experience and expertise of
personnel employed
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Meeting the Challenge
Two measures of capacity are:
 The percentage of total time facilities and
equipment are in use
 The percentage of the physical space e.g.
seats or cubic freight capacity
 Labour constraints may include inadequate
levels of staffing which may lead to
overworked, unhappy staff
 The capacity of the facility, supporting
equipment and service personnel must be in
balance
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Creating Flexible Capacity
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Provide for additional capacity : some
capacity has an elastic ability to absorb
extra demand
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Increase the number of casual and parttime employees: hire extra staff during
busy seasons such as Christmas
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Outsource facilities: rent facilities &
equipment
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Managing Capacity
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Create flexibility in what is offered:
review what is offered at different times
and consider what might be gained by
offering more or less at those times
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Review the hours of business: consider
extending or shortening hours
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Managing Capacity
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Schedule downtime in periods of low
demand: carry out data-processing,
repair and maintenance activities when
demand is expected to be low
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Cross-train employees: employees who
can perform several functions can be
moved to bottle neck points when
needed
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Understanding the patterns
and determinants of demand
1.
2.
Does the level of demand for the
service follow a predictable cycle?
Does the cycle duration vary by the
hour, day, week, month or season?
What are the underlying causes of
these cyclical variations? Employment
schedules, payment dates, school
holidays, public holidays, natural
cycles?
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Understanding the patterns
and determinants of demand
3.
4.
Do demand patterns seem to change
randomly? Are the underlying causes due to
weather patterns, health events, accidents,
a force majeur?
Can continual demand for a particular
service be disaggregated by market
segments to reflect such components as
use patterns by a particular type of
customer for a particular purpose or
variations in net profitability of each
completed transaction
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Figure 11.1
Identifying variations in demand by
time period
Season of year
Weekday
Off-peak Shoulde Peak
r
Time of day
Weekend
Morning peak
Midday
Afternoon
peak
Evening/Night
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Demand Conditions
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Demand exceeds maximum available capacity so
that potential business may be lost
Demand exceeds the optimum capacity level, no
one is turned away but there is a reduction in
perceived service quality
Demand and supply are balanced at the level of
optimum capacity
Demand is below optimum capacity and
productive resources are underused posing a risk
of customer disappoint or doubt about viability
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Figure 11.2
Implications of variations in demand
relative to capacity
Volume demanded
Demand exceeds capacity
(business is lost)
Maximum
available capacity
Demand exceeds
optimum capacity
(service quality declines)
Optimum capacity use
(demand and supply
are well balanced)
Low use
(may send bad signal)
Excess capacity
Wasted resources)
Time cycle 1
Time cycle 2
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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The Main Approaches to
Managing Demand
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Take no action and leave demand to find its own
level through experience and WOM
Reduce demand in peak periods through pricing,
incentives and marketing communications
Increase demand through pricing incentives,
special offers and the creation of additional
service offerings
Control inventory demand through creating
queuing systems and offering access to capacity
at different times
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Using the Marketing Mix Elements to
Shape Demand Patterns
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1.
2.
3.
Product variations: offering varying
‘packages’ or ‘bundles’ of product benefits
at different times
Modifying the timing and location of
delivery involving three basic options:
No change
Varying the times when the service is
available
Offering the service to customers at a new
location
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Using the Marketing Mix Elements to
Shape Demand Patterns
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Pricing strategies: effective pricing
depends on the marketing manager
having an understanding of how the
demand responds to increases or
decreases in the price per unit
Communication efforts: advertising,
signage, publicity and sales messages
to encourage increased use in off-peak
times
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Inventorying Demand
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Ask customers to wait in line on a firstcome, first-served basis
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Offer the opportunity of reserving
booking space in advance
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Managing Customer Behaviour
Through Queuing Systems
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Waiting lines occur when the number of
arrivals exceeds the capacity of the
system to process them
Queue management requires the collection of
extensive data on arrival patterns (some
predictable, some random)
Solutions to queuing problems need to tackle
the root causes
Service delays are often caused by multiple
factors requiring multiple solutions
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Using Market Segmentation
to Design Queuing Strategies
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Urgency of job: such as in hospital
emergency units
Duration of service transaction:
supermarket express lanes and banking
services
Payment of a premium price: airport checkins, aircraft boarding
Importance of the customer: priority
treatment according to expenditure or usage
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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The Psychology of Waiting
1.
Unoccupied time feels longer
2.
Preprocess waits feel longer than in-process
3.
Anxiety makes waits seem longer
4.
Uncertain waits are longer than known, finite
waiting
5.
Unexplained waits seems longer
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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The Psychology of Waiting
6.
Unfair waits are longer than equitable
waiting
7.
People will wait longer for more valuable
services
8.
Waiting alone feels longer than in groups
9.
Physically uncomfortable waiting feels
longer
10.
Waiting seems longer to new or
occasional users
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Reservations/bookings
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Booking systems may smooth peopleprocessing: hotels, airlines,
hairdressers, doctors
Booking systems may help with
financial projections and management
Booking system operational problems
may be managed through deposit
taking, option periods, paying
compensation for over-bookings
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Information Needed for Demand and
Capacity Management Strategies
 Historical
data on demand level and
composition, noting responses to
marketing variables
 Demand
forecasts by segment under
specified conditions
 Fixed
and variable cost data,
profitability of incremental sales
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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Information Needed for Demand and
Capacity Management Strategies
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Site-by-site demand variations
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Customer attitudes towards queuing
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Customer evaluations of quality at
different levels of capacity utilisation
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
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