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Chapter 2: Service Characteristics of Hospitality and

Tourism Marketing
1. The service culture focuses on serving and satisfying customers.
2. Creation of a service culture has to start with top management and flow
Characteristics of Services Marketing





4. Unlike physical products, services cannot be seen, tasted, felt, heard, or
smelled before they are purchased. In the hospitality and travel industry,
many of the products sold are intangible experiences.
5. Tangibles, such as the condition of the grounds and the overall cleanliness of
an establishment, provide signals as to the quality of the intangible service.
6. In most hospitality services, both the service provider and the customer must
be present for the transaction to occur.
7. Managers must manage customers so they do not create dissatisfaction for
8. Another implication of inseparability is that customers and employees must
understand the service delivery system because they are coproducing the

9. 10. and productivity. 15.Several causes of service variability include simultaneous production and consumption. 13. Internal service quality 17. 19. Standardize the service performance process throughout the organization.Internal marketing means that the service firm must effectively train and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction.Service companies face the task of increasing three major marketing areas: their competitive differentiation. 14. Management Strategies for Service Businesses 16. it can be said that services are perishable. and train customers. service quality. is a major cause of customer disappointment in the hospitality industry. E . 18.Services are highly variable.Variability. Satisfied and productive service employees e. Satisfied and loyal customers c. Their quality depends on who provides them and when they are provided. fluctuating demand. and reduced waiting time. 12. and the skill of the service provider. It consists of five links: a.Three steps hospitality firms can take to reduce variability and create consistency: a. Therefore.The benefits of a guest becoming an “employee” because of coproduction include increased value. 11.service. customization. Greater service value d. Monitor customer satisfaction.Interactive marketing means that perceived service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. or lack of consistency in the product.The service-profit chain connects service firm profits with employee and customer satisfaction.Revenue lost from not selling hotel rooms or filling restaurant seats is gone forever. Customer coproduction means organizations must select. Healthy service profits and growth b. b. c. Invest in good hiring and training procedures. hire.

26. Revenue management – establish different rate “fences” e. Rent or share extra facilities and equipment e. 21. 23.Good service recovery can win more customer purchasing and loyalty than if things had gone well in the first place. physical environment. Use queuing – customers are helped on a “first-come. 27. One way of combating concern is to offer familiarization trips. Use part-time employees d. Shift demand g. which allow meeting planners and travel agents to experience the service in a low-risk situation.Customer complaints are one of the most available yet underutilized sources of customer and market information. Overbook – take more requests than you have space available d.Managers can use the following techniques to manage demand: a.In a well-run hospitality organization.Service marketers should take steps to provide their prospective customers with evidence that will help tangibilize the service.Managers can use the following techniques to manage capacity: a. 24. Change the service-delivery system 29. and the service firm’s physical environment all help tangibilize service.20. employees’ appearance. Schedule downtime during periods of low demand f. Cross-train employees c. Involve the customer in the service delivery system b. 25.Customers who buy hospitality products experience some anxiety because they cannot experience the product beforehand. Create promotional events – “Buy-one-get-one free” or “Children eat free” are examples .A service organization should review every piece of tangible evidence to make sure that each delivers the desired organization image – the way a person or group views an organization – to target customers. 28. as it is dependent on how consistently a service firm delivers value 22. there are two customers: paying customers and employees. and process. Promotional material. Use price to create or reduce demand b.Customer retention is perhaps the best measure of quality. Use reservations – allow guests to request a specific time or room type c.Service companies can differentiate their service delivery in three ways: through people. first served” basis f.