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Week 5 Managing A Service Related Business

This document discusses key concepts related to managing service-related businesses in the tourism and hospitality industry. It defines service encounters, moments of truth, and the three stages of service evaluation that customers experience - pre-purchase, purchase, and post-purchase. It also compares the four types of tourist experiences and explains concepts like co-creation, technology-enhanced experiences, and the advantages and disadvantages of technology in experiences. Finally, it discusses service quality, the four types of service failures, and the four gaps model of service quality delivery.

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kimberly duero
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175 views

Week 5 Managing A Service Related Business

This document discusses key concepts related to managing service-related businesses in the tourism and hospitality industry. It defines service encounters, moments of truth, and the three stages of service evaluation that customers experience - pre-purchase, purchase, and post-purchase. It also compares the four types of tourist experiences and explains concepts like co-creation, technology-enhanced experiences, and the advantages and disadvantages of technology in experiences. Finally, it discusses service quality, the four types of service failures, and the four gaps model of service quality delivery.

Uploaded by

kimberly duero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MANAGING A

SERVICE-RELATED
BUSINESS
Learning Outcomes:
• Discuss the culture of service
• Explain co-creation in the context of tourism and
hospitality industry
• Discuss three stages where service evaluation takes
place
• Compare and contrast the types of tourist
experience
• Explain the gaps in service quality
SERVICE ENCOUNTER
• This is defined as the actual interaction between the
organization and its customers who evaluate the
interaction based on the perceived benefits they
received.
• Walt Disney Company is the best example of the
concept of service in tourism
• “Guestology” originated by Bruce Laval of WDC
means that “all the organization’s employees must
treat customers like guests and manage the
organization from the guest’s point of view.
SERVICE ENCOUNTER
• Used to “refer to the person-to-person interaction or
series of interactions between the customer and the
person delivering the service.
• An encounter is the period of time during which the
organization and the guest interact. The length of a
typical service encounter will vary from one service
providers or organizational type to another
Moment of Truth
• These are key instances of contact between a tourist
and a representative of an enterprise
• These can be experiences with the brand, personnel,
product or service of tourist-related organization
wherein the customer gets an opportunity to form an
impression.
• It occurs in Three Stages
• Pre-Purchase
• Purchase
• Post-Purchase
Three Stages
• Pre-Purchase
• All aspects related to interaction between
a visitor and an organization before
purchase.
• Selection from alternatives and substitutes
Three Stages
• Purchase
• This covers actions related to the actual purchase
including but not limited to, the final selection of
a product, the mode of payment, as well as the
attitude of the staff and the environment where
the sales takes
• Expectation versus Actual Experience
• Post-Purchase
Three Stages
• Post-Purchase
• Interaction happen after sale
• An important phase that can lead to either
customer loyalty or dissatisfaction
• Comparison of experiences with the expectations
formed at the pre-purchase and purchase stage
TOURIST EXPERIENCE
• To create memorable experience to remain
competitive.
• An mixture of inputs and processes created along a
value chain
• It is also influenced by individual motivations and
preferences; shared experiences; knowledge of the
destination and its attractions as well as non-
controllable issues such as weather, traffic and
irregular internet connection
FOUR TYPES OF TOURISM
EXPERIENCES
• Conventional Tourism Experience
• Company-centric approach of creating pre-
fabricated experience and delivery it to mainly
passive tourist consumer
• Technology does not constitute a part in the
exprience
• Co-Creation Tourism Experience
• Experiences that are actively created by the
tourist consumer in conjunction with the company
FOUR TYPES OF TOURISM
EXPERIENCES
• Technology Tourism Experience
• This is determined by a high level of technology
use, with low level of consumer involvement
remains predominantly company-centric.
• Fully Technology-Enhanced Tourism Experience
• This experiences maximizes the potential offered
by both elements of co-creation and technology.
CO-CREATING THE TOURISM
EXPERIENCE
• It introduced the concept of value co-creation
referring to mutual benefits that can be derived by
customer and the organization

• It has been defined as “joint activities by parties


involved in direct interactions, aiming at contributing
to the value that emerges for one or both parties”
ADVANTAGES
• It reduces employee costs
• It allows management to re-assign personnel to more
critical tasks
• It eliminates the need for additional staff
• It helps manage the guest expectations
• It helps save time for guests
DISADVANTAGES
• It increases safety risks for both organization and
guest
• It requires additional training for staff who need to
be extra attentive to the guests but can irritate some
guests who are familiar with experience
• It increases costs for the purchase, installation and
management of sophisticated technology that is
accessible across all types of gadgets
• It increase costs of maintaining equipment
FOUR TYPES OF SERVICE
FAILURES
• Service Product Failures
• Problems related to the actual product or the
service system.
• Failure to meet Customer Requests
• These are specific tourists requests that were not
provided
FOUR TYPES OF SERVICE
FAILURES
• Failure caused by Employee Action or Inaction
• These include any inappropriate behavior
• Failures caused by other Guests, Natural
Phenomena or any Circumstance beyond the
control of the Organization
SERVICE QUALITY
• It is identified as a key in differentiating service
products and building a competitive advantage in
tourism

• According to Hudson – “70% of customers will use


the same company again and 50% will recommend
products and services if they receive excellent
customer service.
MODEL OF SERVICE QUALITY
Four Gaps Concerning the
Delivery of Service Quality
• GAP #1: NOT KNOWING WHAT THE CUSTOMER
EXPECTS
• This refers to the gap between the guests’ expected
service vis-à-vis the perceptions of management
• GAP #2: WRONG SERVICE QUALITY STANDARDS
• This occurs when management perceives as customer
expectations do not match service quality perceptions.
Four Gaps Concerning the
Delivery of Service Quality
• GAP #3: SERVICE PERFORMANCE GAP
• This happens when management’s perception of customer
expectations influence the external communication to
customers.
• GAP #4 WHEN PROMISES DO NOT MATCH
DELIVERY
• This occurs when there are discrepancies between external
communication for customers in relation to the service
provided.

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