Technological developments have significantly impacted customer service and the consumer decision journey. Customers now have more information and control throughout the process. Companies use technologies like social media, virtual reality, apps, and smart cards to engage customers at each stage. For example, the Bonnaroo Music Festival leverages aggressive social media campaigns to promote the event and build loyalty. Vail Resorts uses smart card technology and apps to enhance the customer experience for skiers by logging their runs and connecting them with friends and family on the mountain. The customer decision journey is now nonlinear and iterative as customers gather and evaluate information from various online sources before purchasing.

1. The impact of technology
on customer service
Chapter 9
© Hudson & Hudson. Customer Service for Hospitality & Tourism
© Hudson & Hudson. Customer Service for Hospitality & Tourism
The impact of technology on
customer service
Chapter 9

2. Topics Covered
o Technological developments and communication
o Technology and the consumer decision journey
o Online tourism marketing
o Service and the consumer decision journey
o Advantages and disadvantages of electronic
distribution of services

3. ‘At Your Service’ Spotlight:
Leveraging social media at Bonnaroo Music
Festival
o One of the secrets to the success of
music festivals is expert and,
increasingly, innovative use of
social media marketing aimed at
promoting the festivals and
encouraging customer loyalty.
o The Bonnaroo Music & Arts Festival
relies heavily on aggressive digital
marketing campaigns both to
generate publicity and attract
visitors. Tactics include establishing
relationships with bloggers to
stimulate excitement for the
concerts, leveraging social media
sites such as Facebook and Twitter
to achieve maximum exposure
o They also use radio frequency
identification (RFID) technology to
foster engagement via a wristband.

4. The impact of technological
developments on communication
o Rapidly changing communications environment
• Dominated by digital technology
• Social networks supplanting brand networks
• Ethical considerations
o Consumers increasingly in control
• More access to information
• More ‘promiscuous’ in brand relationships
• How and when advertising is received
o Post-purchase consumers behavior
• Customer review
o Tourism marketers
• Internet growth in populous, developing nations
• Annual online sales increasing
• Touch points have changed

5. The traditional purchase funnel
Table 9.1

6. The consumer decision journey today
Figure 9.2 (Source: Adapted from Court et al. 2009)
Stage 1: Consider
Top-of-mind consideration set
from recent touch point
Stage 2: Evaluate
Consumers add or subtract
brands as they evaluate what
they want
Stage 3: Buy
Consumer selects a brand at
POINT OF PURCHASE
Stage 4: Enjoy, advocate, and bond
After purchasing, consumer builds
expectation based on experience to
help the next decision journey
The Loyalty Loop
Active evaluation: info
gathering, shopping
Post-purchase experience:
Ongoing exposure

7. The consumer decision journey
o ‘Zero Moment of Truth’ (ZMOT)
o Consideration stage
• Social media campaigns to drive traffic to websites
o Evaluation stage
• Product-comparison sites increasing influential
• Digital ambassadors
• Incentives e.g. free vacations
• Virtual tours and virtual worlds
o Buy stage
• Point of purchase
o Enjoy, advocate, and bond
• After purchase brand connection
• Crowd sourcing and brand innovation
• Consumer complaints

8. Service Snapshot:
Employing virtual reality to enhance the
customer experience
o One relatively new method of enhancing
the customer experience is virtual reality
o Destination marketing using virtual
reality is gathering momentum (eg.
British Columbia in Canada)
o Marriott Hotels have also been testing
virtual reality with their ‘teleporter’
o In the airline sector, Virgin Atlantic
launched an immersive digital
experience with Microsoft in 2016
o In the theme park sector, Six Flags and
Samsung launched virtual reality roller
coasters at nine theme parks across the
U.S in 2017
o Finally, in the sporting events industry,
VR companies are creating new ways of
enhancing fan experiences.

9. e-Servicescape, website trust
and purchase intentions
Figure 9.3 (Source: Adapted from Harris and Goode, 2010)
Online
Servicescape
Aesthetic Appeal
* Visual Appeal
* Originality of Design
* Entertainment Value
Layout & Functionality
* Usability
* Interactivity
* Customization
* Relevance of Information
Financial Security
* Ease of Payment
* Perceived Security
Eas
e of
Trust in
Website
Purchase
Intention

10. Delivering service through electronic
channels and robots
o Self-serve facilities will continue to evolve and play a
more important role in service delivery
o There are both advantages and disadvantages to this

11. Advantages and disadvantages
of electronic distribution of services
Table 9.1 (Source: Adapted from Harris and Goode, 2010)
Advantages Disadvantages
Consistent delivery for
standardized services
Privacy and ethical issues
Low cost
Inability to customize with highly
standardized services
Customer convenience Security concerns
Wide distribution
Competition from widening
geographies
Customer choice and ability to
customize
Price competition
Quick customer feedback
Loss of control over the consumer
evaluation process
Potential for building customer
relationships
Keeping abreast of changes in
technology
Vast amounts of consumer data Ability to data mine

12. Case Study:
Vail Resorts apps and customer experience
o Smart card technology
• Ski lift pass doubles as resort credit cards
• Multiple ski hills, resorts
o EpicMix ski app
• Log runs, lifts taken
• Vertical mileage
• Pins for achievements
o EpicMix account
• Personal and professional photos
• Trail map
• GPS hook up with friends and family
o Social media
• Encourages story sharing
Capturing memories on mountain and being able to share with friends
and family is particularly important on a ski vacation.