Service characteristic of hospitality and tourism marketing

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OUTLINE

Describes service culture

Identify service characteristic that affect the marketing

Explain how marketing strategies are useful in the hospitality and travel industries.

Service culture

The quality of the service is in a risky state it is in the hands of the service workers who produce and deliver it. Karl Albrecht (German entrepreneur)

Service culture

The service culture focuses on serving and satisfying the customer

Empowers employees to solve customer problems

For most non industrial country service industry contribute major GDP

Service Characteristics

Characteristic of service marketingIntangibility

Inseparability

Variability

Perishability


Characteristic of service marketingIntangibility

Inseparability

Variability

Perishability


IntangibilityInseparabilityVariabilityPerishability

Cant be seen, tasted, felt, heard, or smelled before purchase.

Cant be separated from service providers.

Quality depends on who provides them and when, where and how.

Cant be stored for later sale or use.


What is service?

A service is a process consisting of a series of more or less intangible activitiesInteraction between the customer and service employees, physical resources or goods and/or systemsProvided as solutions to customer problems


Intangible, associated with experience Tangibilizing the intangible

Create strong organization image

Engage in post-purchase communication

Stimulate Word of Mouth & Publicity


Inseparability, the customer becomes part of the service production- Service encounter:Moment of truth

Communication


Variability, associated with lack of consistencyThe quality depends on who provides, when, and where they provides

Stressing on customization and Customer Relationship Management


Perishability, service cant be storedThere is no inventory, thus it should be sold in same day

Managing demand and capacity


Three Types of Marketing in Service Industries

Marketing strategies for service business

Managing differentiation

Managing service quality

Resolving customer complaint

Tangibilizing the products

Managing employee

Managing perceived risk

Managing capacity and demand


Managing differentiation

Differentiate the product based on three ways:1. people2. physical evidence3. process


Managing service quality

Exceed the customer service-quality expectationPromise only what you can deliver, deliver more than you promise (American Express)


Resolving customer complaint

talk less.do more.


Tangibilizing the products

Providing evidence of the service:

Promotional Material

Physical Environment

Employee appearance

Etc


6.Managing employeeTraining and motivating

Reward and punishment

Human capital approach


7. Managing capacity and demandChange the capacity or change the demand?Customer complaints increase when service firms operate above 80% capacityMaximizing service capacity and quality during times of high and low demand

THANK YOU


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Service characteristic of hospitality and tourism marketing

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