Transcript Chapter Two

Chapter Two
Marketing Services and
the Hospitality Experience
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Why Is the Marketing of Services
Different?
 Differences
services
between goods and
– Intangibility
– Heterogeneity
– Simultaneous production and
consumption
– Perishability
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Perishability

Customers
– Impacts quality due
to fluctuations
– Impacts availability
as management
creates demand
– Price goes down
when inventory
gets high
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition

Marketers
– Must have ability to
satisfy customers
when demand
dictates
– Challenge to
manage
supply/demand
– Cost control during
low demand makes
for difficult choices
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Heterogeneity

Customers
– Needs are different
– Have various
amounts of
knowledge,
experience, and
proficiency
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition

Marketers
– Concerned with
employee/customer
interactions
– Use standardization
and self-service
technology
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Simultaneous Production and
Consumption

Customers
– Success of the sale
lies in the service
encounter
– Each purchase
comes with a new
interaction and
experience
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition

Marketers
– The customer can
consume only what
the seller can
produce
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
The Four Components of a Service
Physical
Product
 Whatever
the organization
transfers to the customer that can
be touched
 Must be customer oriented (create
value)
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
The Four Components of a Service (cont.)
Service
Product
Physical
Product



Includes all interactions with the customer
Core performance purchased by the customer
“Plan Your Work” the promise
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
The Four Components of a Service (cont.)
Service
Delivery
Service
Product
Physical
Product



Refers to what happens when your customer buys the
service
“Work Your Plan” deliver on the promise
Example: The way the customer is greeted
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
The Four Components of a Service (cont.)
Service
Delivery
Physical
Product
Service
Product
Service Environment
Source: Rust, Roland T. (1993). Service Quality, p. 31. Adapted from Sage Publications. Used by permission.



The physical backdrop that surrounds the service
“Servicescape”
3 Elements: ambient conditions; spatial layout; and signs,
symbols, & artifacts
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Interrelationships of Components
Service
Product
Service
Environment
Service
Delivery
Food served
Plan for how
order is to be
taken by waitstaff
Use of
pressed and
starched table
cloths and fine
china and
silverware
How the
waiter actually
takes the
order
Casino
Game of
roulette
Procedures
for dealing the
game
Atmospherics
of the casino
Friendliness
and
competency
of the dealer
Hotel
The firmness
of the
mattress
Procedures
for turndown
service
The colors
and décor of
the room
Attitude of
service
personnel
Industry
Full-service
5-star
restaurant
Physical
Product
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Experience: The Result of
Purchasing a Service




An experience is the result of the four
components of a service
May not be management’s goal, but it is what the
customer attains
Should be memorable, unfold over a period of
time, and be inherently personal
…therefore create and command greater
economic value
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Gap Model of Service Quality
Premise:
 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
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Gap Model of Service Quality (cont.)
Evaluations of services are based on
expectations because the characteristics
of services:
 intangibility,
 heterogeneity,
and
 simultaneous production and
consumption
make it almost impossible for
consumers to evaluate services in the
same way they evaluate goods:
 that
is, before they buy the product
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Gap Model of Service Quality (cont.)
Performance > Expectation
Performance = Expectation
Performance < Expectation
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition



© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Reasons for Gap 1
 Inadequate
 Lack
marketing research
of upward communication
 Insufficient
relationship focus
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Ways to Close Gap 1
– Transactional surveys
– Market-wide surveys
– Mystery shopping
– Service reviews
– Customer advisory panels
– Employee field reporting
– Employee research
– Focus groups
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Gap 2
CUSTOMER
COMPANY
Customer-driven service designs and standards
GAP 2
Company perceptions of consumer expectations
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Reasons for Gap 2
 No
customer-driven standards
 Inadequate
 Poor
service leadership
service design
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Ways to Close Gap 2
 Service
blueprinting
 Visually displays the service by
simultaneously showing the
processes of:
– Service delivery
– Roles of customers and employees
– Visible elements of the service
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Gap 3
CUSTOMER
Service Delivery
COMPANY
GAP 3
Customer-driven service designs and standards
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Reasons for Gap 3
 Deficiencies
 Failure
in human resources
to match supply and demand
 Customers
not fulfilling roles
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Ways to Close Gap 3









Hire for service competencies
and service inclination
Be the preferred employer
Train for technical and
interactive skills
Empower employees
Promote teamwork
Provide supportive technology
and equipment
Develop service-oriented
processes
Include employees in the
company’s vision
Employees want the
opportunity to get ahead
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition





Treat employees as customers
Measure and reward strong
service performers
Tell employees what is
expected of them and how
they will be rewarded for
meeting those expectations
Let employees know the role
they play in the company’s
success and that what they
are doing is important
Employees want management
to stop saying what it is going
to do and do it
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Gap 4
CUSTOMER
COMPANY
Service Delivery
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
GAP 4
External
Communications
to customers
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Reasons for Gap 4
 Ineffective
management of customer
expectations
 Over-promising

Inadequate horizontal communications
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Gap 5
CUSTOMER
Expected Service
GAP 5
Perceived Service
COMPANY
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Reason for Gap 5
 Service
has not managed Gaps 1-4
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Dimensions of Service Quality
Reliability
Assurance
Tangible
Empathy
Responsiveness
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.