Ch.
2 Introduction to
Hospitality Services Marketing
1
Services Defined
A service is not a physical good;
rather, it is the performance of
an act or a deed.
2
Services Defined
Services include all economic
activities whose output is not a
physical product or construction, in
generally consumed at the time it is
produced, and provides added value
in forms that are essentially
intangible concerns for the
purchaser
3
Nature of Services
Difference Between Goods and Services
• No ownership by customers
• Service product as intangible performers
• Customer involvement in production process
• People as part of the product
• Greater variability in operational inputs and outputs
• Harder for consumers to evaluate
• No inventories for services
• Importance of time
• Different distribution channels
4
Service Quality
• Service Quality: is a perception resulting
from attitudes formed by customers’ long-
term, overall evaluations of performance.
5
RELATIONSHIP MARKETING
Involves
1. Attracting
2. Developing
3. Retaining customer relationships
6
A relationship marketing approach is highly
desirable upon meeting the following conditions:
• A customer has on going or periodic
desire for the service.
• The service customer controls the
selection of the service organization.
• Alternative service providers make it easy
for customers to switch.
7
Internal Marketing
to market the firm’s goods and services to
their employees
• First: service firms need to select and
hire employees who are willing and able
to provide high-quality service.
• Second: Service firms should provide
employees with adequate training so
they possess the skills that are required
in performing their job tasks.
8
Customer Satisfaction
Benchmarking
• is a process whereby a firm establishes a
level of performance by comparing
performance against past performance,
• or by comparing current performance
against the performance of other
companies
9
Improving Customer Service
and Customer Satisfaction
• Customer Satisfaction: occurs when a
firm’s service, as perceived by customers,
meets or exceeds expectations.
10
Recovery Strategies
• Cost/benefit analysis
• Actively encouraging complaints
• Anticipate the need for recovery
• Respond quickly
• Train employees
• Empower the front line
11
Service Trends Affecting the
Hospitality Industry
• Shrinking customer loyalty
• Increasing customer sophistication
• Increasing emphasis on the needs of
individual customers
12