study propose

2.  Intangibility
 People as part of the product
 Demands Patterns
 Perishability
 Channels of Distribution

3.  Products is experienced
 Products includes both goods and services
 Guest are purchasing the performance
 It is harder to evaluate quality of services
than products.

4.  Employees are part of the products
 Services are less standardized than products
 Quality control is more challenging for
services than for products
 Guest are directly involved in all service
transactions

5.  Demands levels have peaks and valleys
 Marketing mix is used to manage demands

6.  Unused capacity is wasted
 There is no way to build an inventory
 Capacity management is crucial

7.  Channels of distribution increase in
importance
 Franchising is a form of distribution.

8.  Three Overlapping service Systems
 The hospitality services, from guest’s
perspectives, comprises three overlapping
service systems (Lovelock 1996)
 Only a small portion of these systems is under
the direct control of marketing; most are under
the supervision of operations

10.  The service delivery system is concerned
with where, when and how the service
products is delivered to guest.
 The hospitality operating system is where
the works gets done for the guest.
 The communication system includes planned
marketing communications, such as
advertising, promotion, and public relations
and operational communication such as
billing statements and reservation
confirmation.

11. Quality, experts agree, “is whatever the
customer says it is , and the quality of the
particular products or service is whatever the
customer perceives it to be” (Buzzel and
Gale 1987)

12.  Technical dimension: Did things go right?
Was the hot food hot? The reservation in
order? The room cleaned?
 Interpersonal dimension : Was the server
friendly? Did service staff go the extra mile
to be helpful? Did the guests feel welcome?
 The technical dimension represents what the
customer receives; the interpersonal
dimension stands for how the customer
receives the services.

13.  Results of research on service quality and customer
satisfaction have indicated that consumers use five criteria
to assess service quality (Berry, Zeithma and Parasuraman
1992):
 Tangibles
 The appearance of physical facilities, equipment, personnel and
communication materials.
 Reliability
 The ability to perform the promised service dependably and
accurately.
 Responsiveness
 The willingness and courtesy of employees and their ability to
convey trust and confidence
 Assurance
 The knowledge and courtesy of employees and their ability to
convey trust and confidence
 Empathy
 The provision of caring, individualized attention to customers

14.  Causes of service failure
 Misunderstanding
 What management understands customers wants is difference
from what customer really wants
 Communication
 Management has a correct understanding of customer
preferences, but these are not translated properly into service
quality specifications
 Performance
 Adequate service standards are set but not properly carried out
by the organization and its employee
 Overpromising
 Marketing communications promise more than the firm can
deliver
 Expectations
 The service experience is, for whatever reason, inconsistent
with the customer’s expectation

15.  In hospitality services, there are no rejects, just
unhappy customers. Because a “defect” is an event
that happens to a guest, there is no way to do recall.
 Under these circumstances, the argument for a zero
defect standard is compelling, but maybe unrealistic;
 The facts is that in services, no matter how rigorous the
procedures and employee training or how advances the
technology, zero defects is an unattainable goal. Unlike
manufaturers that can adjust inputs and machinery until
products are uniformly perfects, service companies
cannot escape variations. Factors like the weather and
the customers themselves are beyond a company’s
control. (Labovitz and Chang 1987)

16.  The significant reduction of service defects
appears to be an expensive projects. Yet,
there are good reasons to believe that
improving quality will actually reduce costs.
 Costs of quality can be divided into the good,
the bad and the ugly (Labovitz and Chang
1987)

17.  Cost involved in problem prevention, such as
good hiring practices, quality-oriented
training and supervision and compensation
related to quality performance.
 These costs represents a long-term
investment rather than short term,
temporary fix.

18.  Costs of inspection and correction, including
supervisory personnel’s time, increased food
and beverages costs due to replacement,
decreased operational efficiency due to time
spent on corrective actions and additional
training and employee turnover costs.

19.  Costs of service defects.
 The failure of preventive activities and
inspection and correction actions will allow
substandard performance to be delivered, which
results in unsatisfied guest.
 When the guest complain, at least the operation
gets a second chance to correct its mistakes and
try to compensate the guest before his or her
departure.
 If the guest leaves the property unsatisfied with
the problem unresolved, there are three very
expensive ugly costs of service defects: lost
customers, efforts to attract new customers and
bad word of mouth

20. 1. Guarantees
 It makes the company ascertain its customers’ definition
of good services (reduces misunderstanding gap)
 It sets clear performance standards (reduce
communication gap)
 It generates reliable data through customer
compensation when performances poor. Such data can
be used for system redesign or training program
development
 It forces a company o examine its service-delivery
systems for possible weak points in the corporation or in
individuals units in order to reduce the guarantee
program cost.
 It builds customer loyalty, sales and market share.
 The financial commitment from management makes a
strong statement about its emphasis on customer
satisfaction

21.  Unconditional
 Easy to understand
 Meaningful
 Easy to invoke
 Easy to collect

22. 2. Customer feedback
 Customer complaints can also be solicited
through the use of toll-free telephone
numbers and Internet Web sites, which
encourage people to report problems by
making it easy to do so.

23.  Unoccupied waits feel longer than occupied
waits
 Preprocess waits feel longer than in-process
waits
 Anxiety makes waits seem longer
 Uncertain waits seem longer than explained
waits
 Unfair waits seem longer than equitable
waits
 The more valuable the service, the longer
people will wait
 Solo waits feel longer than group waits.

24.  Internal marketing is a philosophy for
managing personnel and a systematic way of
developing and enhancing a service culture.
 The focus is on how to develop customer-
conscious employees.
 The objectives are:
 Attract and retain good employee
 Ensure that the employee are motivated fro
customer-orientated and service-minded
performance and therefore successfully fulfill
their duties as “part-time marketer.”

25.  According to Southwest Airlines CEO Kelleher
 “If you don’t have a good attitude, we don’t
want you no matter how skilled you are. We can
change skills levels through training. We can’t
change attitudes” (Teasley and Robinson 1998)
Careful employee selection, therefore, is critical
to successful service oriented operations.

26.  A corporate culture can be sensed as an internal climate
within organization.
 A corporate culture is a powerful communication tools for
“nurturing a service culture that will shape the employee
behavior more effectively than rules and regulations can.”
 A service culture exist when there is an appreciation for
good service and when giving good service to internal and
external customers is considered a natural way of life and
one of the most important measurement in the
organization.
 Management in a service culture usually take scare of its
internal customer – employees-first, which leads to higher
job satisfactions.

27.  What are the characteristics of service? What impact
do they have on operations?
 How can service quality be measured?
 What common gaps occur in service? How can they be
avoided?
 What are the limitations of a zero-defects goal? What
are its uses?
 Is quality free? Why?
 What are the uses of a guarantees program? What
makes a guarantee program successful?
 What are the implications of managing demand
through queuing in service operations?
 What is internal marketing?
 What kind of corporate culture is appropriate to a
service organization?