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The document discusses key concepts of services marketing as applied to hospitality and tourism. It covers the service culture, characteristics of services like intangibility and perishability, the service profit chain, and strategies for managing service quality, differentiation, capacity, demand, and risk.

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84 views18 pages

CH 02 PPTAccessible

The document discusses key concepts of services marketing as applied to hospitality and tourism. It covers the service culture, characteristics of services like intangibility and perishability, the service profit chain, and strategies for managing service quality, differentiation, capacity, demand, and risk.

Uploaded by

khaslindaakasyahmujin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Marketing for Hospitality and

Tourism
8th Edition

Chapter 2
Services Marketing Concepts
Applied to Marketing for Hospitality
and Tourism

Copyright © 2021 Pearson Education, Inc. All Rights Reserved


Learning Objectives
• 2.1 Describe a service culture and identify characteristics of service marketing.

• 2.2 Explain the service profit chain.

• 2.3 Explain management strategies for service businesses.

Copyright © 2021 Pearson Education, Inc. All Rights Reserved


The Service Culture
• Focus on serving and satisfying the customer

• Top down flow from management

• Reflected in the business mission, vision, and values

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Figure 2-1
Four Service Characteristics

Figure 2-1 Four Service Characteristics


Page 36

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Intangibility
• Cannot be seen, tasted, felt, heard, or smelled before purchase

• Experiential
– Quality is not known until after the experience

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Tangible Evidence
• A marketing effort to provide evidence that helps consumers evaluate the service prior
to experiencing it

• Examples:
– Promotional material, employee appearance and uniforms, physical environment
– Virtual tours, pictures, websites, social media, videos, samples, testimonials
– Branding

Copyright © 2021 Pearson Education, Inc. All Rights Reserved


Inseparability
• Hospitality and travel products are consumed during the production process

• Both service provider and consumer present at the same time

• Often external factors such as other customers influence the product

• Organizations required to train both employees and customers

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Variability
• Quality control is challenging with the simultaneous production and consumption

• Differing demand levels

• High degree of contact between provider and consumer

• People influence the outcome


– Mood, weather, time of day, physical and/or emotional state, personality

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Increasing Consistency
• Invest in good hiring and training procedures
– Competence, courtesy, credibility, reliability, responsiveness, communication

• Standardize the service-performance process throughout the organization


– Service blueprints

• Monitor customer satisfaction


– Social media, surveys, comment cards, comparison shopping

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Perishability
• Services cannot be stored

• Revenue lost from lack of use is gone forever

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The Service Profit Chain
• Successful service requires the organization to focus on both customers and
employees

• Service profit chain links:


– 1. Internal service quality
– 2. Satisfied and productive service employees
– 3. Greater service value
– 4. Satisfied and loyal customers
– Healthy service profits and growth

• Internal marketing

Copyright © 2021 Pearson Education, Inc. All Rights Reserved


Managing Service Differentiation
• Innovation and creativity

• Brand and symbols

• People

• Physical environment

• Process

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Managing Service Quality
• Measured by how well customer expectations are met

• Customer retention

• Know the customer

• Communicate proper expectations

• Create proper service-delivery processes and mechanisms

• Examine actual service performance

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Recommendations for Improving
Service Quality
• 1. Listening

• 2. Reliability

• 3. Basic Service

• 4. Service Design

• 5. Recovery

• 6. Surprising customers

• 7. Fair play

• 8. Teamwork

• 9. Employee Research

• 10. Servant Leadership Berry, Parasuraman, and Zeithamil

Page 45

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Managing Perceived Risk
• Customer to customer interaction
– Yelp, TripAdvisor, social media

• Sales team
– Experience, testimonials, tours, product exposure

• Familiarization (FAM)
– Low risk setting
▪ No cost to client
– Experience prior to planning
– Travel agents, meeting planners, corporate booking agents
– Hotels and resorts, airlines, food and beverage, events

Copyright © 2021 Pearson Education, Inc. All Rights Reserved


Managing Capacity
• Involve the customer in the service-delivery system

• Cross-train employees

• Use part-time employees

• Rent or share extra facilities and equipment

• Schedule downtown during periods of low demand

• Change the service-delivery system

Copyright © 2021 Pearson Education, Inc. All Rights Reserved


Managing Demand
• Use price to create or reduce demand

• Use reservations

• Overbook

• Revenue management

• Use queuing
– Unoccupied time feels longer than
occupied time
– Unfair waits are longer than equitable
wats
– Uncertain waits are longer than known,
finite waits

• Shift demand
Disneyland FastPass distribution center for
• Create promotional events Space Mountain. Page 50

Copyright © 2021 Pearson Education, Inc. All Rights Reserved


Copyright

This work is protected by United States copyright laws and is


provided solely for the use of instructors in teaching their
courses and assessing student learning. Dissemination or sale of
any part of this work (including on the World Wide Web) will
destroy the integrity of the work and is not permitted. The work
and materials from it should never be made available to students
except by instructors using the accompanying text in their
classes. All recipients of this work are expected to abide by these
restrictions and to honor the intended pedagogical purposes and
the needs of other instructors who rely on these materials.

Copyright © 2021 Pearson Education, Inc. All Rights Reserved

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