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.