Transcript Nature of Services

Hospitality Services
Definition of Service
 A service is an activity or series of activities of more or less
intangible nature that normally, but not necessarily, take
place in interactions between the customer and service
employees and/or physical resources or goods and/or
systems of the service provider, which are provided as
solutions to customer problems
Nature of Services
 Intangibility
 People as part of the product
 Demand patterns
 Perishability
 Channel of distribution
Hospitality Service Marketing System
SERVICE DELIVERY SYSTEM
HOSPITALITY OPERATING SYSTEM
Back of the House
Front of the House
Facilities
Facilities
Service Staff
Guest Contact
Personnel
Not
Generally
Visible
to Customer
COMMUNICATIONS
SYSTEM
Marketing Communications
Advertising
Sales Calls
Public Relations
Word-of-Mouth
Casual Contact
Operational Communications
Billing and Credit
Reservations
Other Correspondence and
Phone Contact
Visible to Customer
Directed at Customer
Service Quality Dimension
 Technical
 Interpersonal
Service Quality Assessment Criteria
 Tangibles
 The appearance of physical facilities, equipment, personnel, and
communication materials
 Reliability
 The ability to perform the promised service dependably and
accurately
 Responsiveness
 The willingness to help customers and to provide prompt
service
Service Quality Assessment Criteria




Tangibles
Reliability
Responsiveness
Assurance
 The knowledge and courtesy of employees and their ability to
convey trust and confidence
 Empathy
 The provision of caring, individualized attention to customers
Service Quality Gaps
Word of Mouth
Communications
Personal Needs
Past Experience
Expected Service
Expectations
Consumer
Marketer
Perceived Service
Performance
Misunderstanding
External
Communications
Overpromising
to Consumers
Service Delivery
Service Quality Specs
Communication
Mgmt. Perceptions of Consumer Expectations
The Cost of Quality
 Good cost: prevention
 Bad cost: inspection and correction
 Ugly cost: defects and unsatisfied guests
 1-10-100 rule
Guarantee Programs
 Unconditional
 Easy to understand
 Meaningful
 Easy to invoke
 Easy to collect
Principles of Waiting
 Unoccupied waits seems longer than occupied waits
 Anxiety makes the wait seem longer
 Waits of uncertain duration seem longer than those of
known length
 Unexplained waits seem longer than explained waits
 Unfair waits seem longer than equitable waits
 A solo wait seems longest of all
Hospitality Marketing Cycle
Promotional Activities
Lost Customers
Lost Customers
+
+
Consumption of
Service, Interaction
with Service Employees
Interest in Company,
Inquiries
+
Lost Customers
+
Buyer-Seller Interaction
During Purchase
Lost Customers
Internal Marketing
 Service culture
 Corporate culture
The Service Profit Chain
Service Quality Orientation
of Management
Employee Satisfaction
Employee Retention
Delivery of Service Quality
Customer Satisfaction
Customer Retention
Profit