chapter two marketing services. © 2008 pearson education, upper saddle river, nj 07458. all rights...

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Chapter Two Marketing Services

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Page 1: Chapter Two Marketing Services. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 2 Marketing Essentials in Hospitality and

Chapter Two

Marketing Services

Page 2: Chapter Two Marketing Services. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 2 Marketing Essentials in Hospitality and

© 2008 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.2

Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Services Versus Goods Intangibility

The attributes of services that cannot be grasped by any of the five senses

Aspects of a service that are difficult to grasp prior to purchase

Purchase is based on consumer expectations

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Services Versus GoodsTangibility Spectrum

TangibleDominant

IntangibleDominant

SaltSoft Drinks

DetergentsAutomobiles

Cosmetics

AdvertisingAgencies

AirlinesInvestment

ManagementConsulting

Teaching

Fast-foodOutlets

Fast-foodOutlets

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Services Versus Goods

Page 5: Chapter Two Marketing Services. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 2 Marketing Essentials in Hospitality and

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Services Versus Goods

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Services Versus Goods Perishablility

If not sold by a particular time, the opportunity to sell it again is gone forever

Complicated by fixed capacity Unique to the hospitality industry

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Services Versus Goods Heterogeneity

Delivery of services is inconsistent due to employee variance and varying needs of customers

“Moment of truth” when the service product meets service delivery and consistency is key

Customers are also varied and have different wants and needs

The use of self-service technologies in an attempt to standardize service

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Services Versus Goods Simultaneous production and

consumption Services are consumed at the same

time they are purchased Thus management is marketing in the

hospitality industry Always the possibility of a new

experience with each purchase

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Services Versus Goods The Hospitality Product

The combination of goods, services, environment and experience that the consumer buys

Differences between services and manufactured goods

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

The Hospitality Product Defines how the service should

theoretically work “Plan your work”

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

The Hospitality Product

Exhibit 2-9; The Hospitality Product model

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

The Hospitality Product Physical product

The tangible component of service Service environment

The physical environment in which the service is delivered

Surrounding area Layout Signs and symbols

Service Product The core performance or service purchased by the

patron Service delivery

What happens when the customer actually consumes the service

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

The Hospitality Product

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Service Quality and Service Gaps

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

Zone of tolerance is the range where customers are still satisfied

Can use the SERVQUAL model

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Service Quality and Service GapsEvaluations 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

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Gap Model of Service Quality

Performance > Expectation Performance = Expectation

Performance < Expectation

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Possible Levels of Customer Expectations

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Service Quality and Service Gaps

Gap 1 Gap between services expected by the customer and

management’s perceptions of customers’ expectations Gap 2

Gap between management’s perceptions of customer expectations and service quality specifications

Gap 3 Gap between service quality specifications and service

delivery Gap 4

Gap between the service delivered and the service promised

Gap 5 Gap between the perceived service and the actual service

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Service Quality and Service Gaps

Exhibit 2-10; The SERVQUAL Model

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Service Quality and Service Gaps Dimensions of service quality

The key is to incorporate the words into the service experience to remind the customer that they are receiving great service

The acronym R.A.T.E.R. Reliability Assurance Tangibility Empathy Responsiveness

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Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Class Discussion

Spend 10 minutes designing a room service script for employees that uses each part of the RATER System