Q 1. What is Service Marketing? Explain its basic characteristics.

Ans. The world economy nowadays is increasingly characterized as a service economy. This
is primarily due to the increasing importance and share of the service sector in the economies
of most developed and developing countries. In fact, the growth of the service sector has long
been considered as indicative of a country’s economic progress.
Characteristics of services
Service is an act or performance offered by one party to another. They are economic activities
that create value and provide benefits for customers at specific times and places as a result of
bringing about a desired change in or on behalf of the recipient of the service. The term
service is not limited to personal services like medical services, beauty parlors, legal services,
etc. According to the marketing experts and management thinkers the concept of services is a
wider one. The term services are defined in a number of ways but not a single one is
universally accepted. The distinct characteristics of services are mentioned below.
Intangibility: Services are intangible we cannot touch them are not physical objects.
According to Carman and Uhl, a consumer feels that he has the right and opportunity to see,
touch, hear, smell or taste the goods before they buy them. This is not applicable to services.
The buyer does not have any opportunity to touch smell, and taste the services. While selling
or promoting a service one has to concentrate on the satisfaction and benefit a consumer can
derive having spent on these services.
For e.g. An airline sells a flight ticket from A destination to B destination. Here it is the
matter‟ of consumer‟s perception of services than smelling it or tasting it.
Perishability : Services too, are perishable like labor, Service has a high degree of perish
ability. Here the element of time assumes a significant position. If we do not use it today, it
labor if ever. If labor stops working, it is a complete waste. It cannot be stored. Utilized or
unutilized services are an economic waste. An unoccupied building, an unemployed person,
credit unutilized, etc. are economic waste. Services have a high level of perish ability.
Inseparability: Services are generally created or supplied simultaneously. They are
inseparable. For an e.g., the entertainment industry, health experts and other professionals
create and offer their service at the same given time. Services and their providers are
associated closely and thus, not separable. Donald Cowell states „Goods are produced, sold
and then consumed whereas the services are sold and then produced and consumed‟.
Therefore inseparability is an important characteristic of services which proves challenging to
service management industry.
Heterogeneity: This character of services makes it difficult to set a standard for any service.
The quality of services cannot be standardized. The price paid for a service may either be too
high or too low as is seen in the case of the entertainment industry and sports. The same type
of services cannot be sold to all the consumers even if they pay the same price. Consumers
rate these services in different ways. This is due to the difference in perception of individuals
at the level of providers and users. Heterogeneity makes it difficult to establish standards for
the output of service firm.
Ownership: In the sale of goods, after the completion of process, the goods are transferred in
the name of the buyer and he becomes the owner of the goods. But in the case of services, we
do not find this. The users have only an access to services. They cannot own the service.
For e.g. a consumer can use personal care services or medical services or can use a hotel
room or swimming pool, however the ownership remains with the providers.
According to Philip Kotler, “A service is an activity or benefit that one party can offer to
another that is essentially intangible and does not result in the ownership of anything. “From
this it is clear that the ownership is not affected in the process of selling the services.
Simultaneity: Services cannot move through channels of distribution and cannot be
delivered to the potential customers and user. Thus, either users are brought to the services or
providers go to the user. It is right to say that services have limited geographical area.
According to Carman, “Producers of services generally have a small size area of operations
than do the producers of items largely because the producer must to get the services or vice-
versa.”
When the producers approach the buyer time is taken away from the production of services
and the cost of those services is increased. On the other hand it cost time and money for the
buyers to come to producers directly. Here the economics of time and travel provide
incentives to locate more service centers closer, to prospective customer, resulting in
emergence of smaller service centers for e.g. aero plane cannot be brought to customer, etc.
Quality Measurement: A service sector requires another tool for measurement. We can
measure it in terms of service level. It is very difficult to rate or quantify total purchase. E.g.
we can quantify the food served in a hotel but the way waiter serves the customer or the
behavior of the staff cannot be ignored while rating the total process.
Hence we can determine the level of satisfaction at which users are satisfied. Thus the firm
sells good atmosphere convenience of customers, consistent quality of services, etc.

What is the SERVQUAL Model?

The Service Quality Model or SERVQUAL Model was developed and implemented by the
American marketing gurus Valarie Zeithaml, A. Parasuraman and Leonard Berry in 1988. It
is a method to capture and measure the service quality experienced by customers.
Initially, emphasis was on the development of quality systems in the field product quality.
Over time, it became more and more important to improve the quality of related services.
Improved service quality could give organisations a competitive edge. In addition, service in
general became more important, and as a result, the SERVQUAL Model had a serious impact
in the eighties. Back then, measuring service was abstract and not easily quantifiable.
The SERVQUAL Model is primarily a qualitative analysis. If a satisfaction survey mainly
depends on the transactions between supplier and buyer, the observed quality is measured
through generic, environmental factors.
Shortcomings
This framework can be used to expose shortcomings in the service and address them. In that
sense, it is a so-called ‘GAP Analysis‘. It compares the expected service quality and the
service quality that has actually been experienced.
This experience is measured based on the customers perceptions. It is an external analysis of
customer needs in relation to the quality of the service they experienced. Because of that, the
focus is always on customer needs and not on the measuring system or the organisation’s
perception; the way they would like to see themselves. Furthermore, when determining the
customer needs, the gap between customer expectations and the actual service they
experience, needs to be taken into account.
Expectancy pattern
Central to the SERVQUAL Model is the expectancy pattern of the service quality; the
difference between expectations and perception. It there is a difference in quality, that is
shown in the difference (the gap) between what was expected and what was actually
experienced. The SERVQUAL Model enables organisations to learn which factors play a role
how the customer’s expectancy pattern is formed. That way, the organisation can improve
itself and take this expectancy pattern into account beforehand.
10 dimensions
SERVQUAL model is constructed based on its initial 10 dimensions (Reliability,
Responsiveness, Competence, Access, Courtesy, Communication, Credibility, Security,
Understanding/Knowing the customer, and Tangibles)
Reliability: the ability of an organization to accurately achieve in the proper time and
according to the promises tit has made to its clients;
Responsiveness: the tendency and willingness of services providers to help clients and satisfy
their needs, immediately reply to their inquiries and solve their problems as quickly as
possible;
Competence: having adequate skills and knowledge that enable the employees to perform
their jobs properly
Accessibility: providing easy access to a service in term of location and through services
provided via the telephone, the internet or any other means of communication;
Courtesy: treating clients respectfully in a polite friendly manner, understanding their feelings
and answering their phone calls gently;
Communication: this occurs through gentlemanly listening to the client conveying
information to them clearly and facilitating external communication with workers;
Credibility: this can be achieved through full trust and confidence in the service provider as
well as his honesty and straight forwardness;
Security: this depends on whether the service is free from risks and hazards, defects or doubts
so that it provides bodily safety, financial security as well as privacy;
There are five core components of service quality:
1. Tangibles – physical facilities, equipment, staff appearance, etc.
2. Reliability – ability to perform service dependably and accurately.
3. Responsiveness – willingness to help and respond to customer need.
4. Assurance – ability of staff to inspire confidence and trust.
5. Empathy – the extent to which caring individualized service is given.

Tangibility: this includes physical aspects connected with service such as instruments and
equipment, persons, physical facilities like buildings and nice decoration and other
observable service facilities

A smaller version of the SERVQUAL Model is the RATER model. Where the SERVQUAL
Model works with 10 dimensions to measure the quality of service, the RATER modelworks
with 5 dimensions.
5 gaps
Both the communication between the customer and the service-providing organisation, as
well as the organisation’s internal communication, are of vital importance for the level of
quality of the service. It is good when organisations know the expectancy pattern of their
customers. Therefore, the SERVQUAL Model identifies five gaps that can arise between the
customer’s needs and the service that a company offers.
1. Knowledge gap
A gap arises when an organisation’s knowledge of customer expectations is lacking,
preventing them from approaching consumers in the right way.
2. Standards gap
The organisation has already formed its own idea about what the customer expects from their
service. If this idea is wrong from the start and does not correspond to what customers
actually expect, there is a significant risk that the organisation will translate it wrongly into a
quality policy and corresponding rules.
3. Delivery gap
A gap can also occur when the organisation offers service that is different from what the
consumer had expected. This also involves an incorrect implementation. For instance, in the
way employees carry out policy.
4. Communications gap
Sometimes, the external (marketing) communication that the organisation sends out, can
create the wrong expectations among customers. It also happens that the organisation
communicates and promises things that are not in line with what they can actually deliver.
5. Satisfaction gap
Dissatisfaction results from a (significant) difference between the service a customer expects
and the service they actually experience. Eventually, this will lead to the biggest gap in the
experience of quality.
Service Marketing Mix – 7 P’s of marketing
The service marketing mix is also known as an extended marketing mix and is an integral
part of a service blueprint design. The service marketing mix consists of 7 P’s as compared to
the 4 P’s of a product marketing mix. Simply said, the service marketing mix assumes the
service as a product itself. However it adds 3 more P’s which are required for
optimum service delivery.
The product marketing mix consists of the 4 P’s which are Product, Pricing, Promotions and
Placement. These are discussed in my article on product marketing mix – the 4 P’s.
The extended service marketing mix places 3 further P’s which include People, Process
and Physical evidence. All of these factors are necessary for optimum service delivery. Let us
discuss the same in further detail.

1) Product
The product in service marketing mix is intangible in nature. Like physical products such as a
soap or a detergent, service products cannot be measured. Tourism industry or the education
industry can be an excellent example. At the same time service products
are heterogenous, perishable and cannot be owned.
The service product thus has to be designed with care. Generally service blue printing is done
to define the service product. For example – a restaurant blue print will be prepared before
establishing a restaurant business. This service blue print defines exactly how the product (in
this case the restaurant) is going to be.
2) Place
Place in case of services determine where is the service product going to be located. The best
place to open up a petrol pump is on the highway or in the city. A place where there is
minimum traffic is a wrong location to start a petrol pump. Similarly a software company will
be better placed in a business hub with a lot of companies nearby rather than being placed in
a town or rural area. Read more about the role of business locations or Place element.
3) Promotion
Promotions have become a critical factor in the service marketing mix. Services are easy to
be duplicated and hence it is generally the brand which sets a service apart from its
counterpart. You will find a lot of banks and telecom companies promoting themselves
rigorously.
Why is that? It is because competition in this service sector is generally high and promotions
is necessary to survive. Thus banks, IT companies, and dotcoms place themselves above the
rest by advertising or promotions.
4) Pricing
Pricing in case of services is rather more difficult than in case of products. If you were a
restaurant owner, you can price people only for the food you are serving. But then who will
pay for the nice ambiance you have built up for your customers? Who will pay for the band
you have for music?
Thus these elements have to be taken into consideration while costing. Generally service
pricing involves taking into consideration labor, material cost and overhead costs. By adding
a profit mark up you get your final service pricing.
5) People
People is one of the elements of service marketing mix. People define a service. If you have
an IT company, your software engineers define you. If you have a restaurant, your chef and
service staff defines you. If you are into banking, employees in your branch and their
behavior towards customers defines you. In case of service marketing, people can make or
break an organization.
Thus many companies nowadays are involved into specially getting their staff trained in
interpersonal skills and customer service with a focus towards customer satisfaction. In fact
many companies have to undergo accreditation to show that their staff is better than the rest.
Definitely a USP in case of services.
6) Process
Service process is the way in which a service is delivered to the end customer. Lets take the
example of two very good companies – Mcdonalds and Fedex. Both the companies thrive on
their quick service and the reason they can do that is their confidence on their processes.
On top of it, the demand of these services is such that they have to deliver optimally without
a loss in quality. Thus the process of a service company in delivering its product is of utmost
importance. It is also a critical component in the service blueprint, wherein before
establishing the service, the company defines exactly what should be the process of the
service product reaching the end customer.
7) Physical Evidence
The last element in the service marketing mix is a very important element. As said before,
services are intangible in nature. However, to create a better customer experience tangible
elements are also delivered with the service. Take an example of a restaurant which has only
chairs and tables and good food, or a restaurant which has ambient lighting, nice music along
with good seating arrangement and this also serves good food. Which one will you prefer?
The one with the nice ambience. That’s physical evidence.
Several times, physical evidence is used as a differentiator in service marketing. Imagine a
private hospital and a government hospital. A private hospital will have plush offices and
well dressed staff. Same cannot be said for a government hospital. Thus physical evidence
acts as a differentiator.

Meaning of Service Recovery:

Service recovery refers to the ‘actions taken by an organisation in response to a service
failure’. Failures occur for all kinds of reasons — the service may be unavailable when
promised, it may be delivered late or too slowly, the outcome may be incorrect or poorly
executed, or employees may be rude or uncaring. All of these types of failures bring about
negative feelings and responses from customers.
The goal of service recovery is to identify customers with issues and then to address those
issues to the customers’ satisfaction to promote customer retention. However, service
recovery doesn’t just happen. It is a systematic business process that must be designed
properly and implemented in an organization. Perhaps more importantly, the organizational
culture must be supportive of idea that customers are important and their voice has value.
Research has shown that the customers who, have had a service failure resolved quickly and
properly, are more loyal to a company than the customers who have never had a service
failure—significantly more loyal. Service Recovery practices are a critical element in a
Customer Loyalty Program.
The Role of the Service Sector in the Indian Economy
The current situation in India is that the growth rate of services has overtaken both agriculture
and industry and is now more than 50% of GDP. The services sector has the highest growth
rate and is the least volatile sector. Growth is particularly marked in public services, IT and
financial services. In some areas the growth rate of the services sector is 40-50% due to
increased use of mobile technologies.
India therefore has a services-oriented economy. It hasn’t followed traditional growth models
(as in China) in that it has skipped the manufacturing stage and has jumped straight from the
agricultural stage to services. Growth in the services sector will support growth in the
agricultural and industrial sectors, although growth in manufacturing, which causes pollution
is not so desirable in terms of job creation and increased prosperity.
As India’s population grows so too does the number of dependents in the lower and higher
age groups. For the economy to grow it has to invest. Currently the public sector invests more
than it saves. The household sector saves in surplus, but this is not increasing so it cannot
continue to support private and public sectors. There is a massive need to spend on health
and education, particularly the education of women, in order to reduce the birth rate. In South
India the number of women in the population outnumbers men, so the development of the
south of India will depend on the education of women.
In the next two decades (a ‘growth window’ for India which may not come again because the
working population to total population ratio increases up to mid 2030s) it will be important
for India to absorb the growing labour force if the services sector is to play an important role.
India is in a strong position to do this since it has a history of using English for
communication, which in turn supports global trade and finance. Only the services sector can
have a major impact on poverty. Improvements in agriculture are not having an effect on
poverty. To address poverty there is a need to move people from bad sectors to good sectors
or from unemployment to employment. This is happening with growth in human skills
intensive sectors such as hotels, restaurants and IT, but there are geographical, labour unions
and human skills restrictions on labour movement.
Capacity Maximization
 Employ part time workers
 Cross Training
Whenever possible, and especially when if your business has just a few employees,
look for people when hiring that you can cross-train into different job responsibilities.
A welder who has taken college courses in engineering and a secretary with human
resources experience could be beneficial to your business. Cross-trained employees
can fill in when others are ill, on vacation or quit unexpectedly, helping you keep
costs down and business moving.

 Involve Customers
 Capacity Sharing
Capacity sharing refers to the fulfillment of demand that arises from multiple
sources from a single facility instead of facilities dedicated to each demand source

What are the 4 modes of supply of services recognised by WTO? What is the logic
behind choosing these modes?
Services differ from goods in a number of ways, most commonly in the immedia-cy of the
relationship between supplier and consumer.
Many services are non-transportable, i.e., they require the physical proximity of supplier and
customer––a haircut requires that both hairstylist and client be present. For international trade
in such non-transportable services to take place, either the consumer must go the supplier or
the supplier must go to the consumer.

Any of the four modes above constitute “trade” as long as a local firm is being paid by a
foreign firm (“non-resident”), no matter where the service is actually provided.
Following table illustrates the meaning with examples:
Perceived risk in buying and selling Services

Types of Perceived Risk

Business leaders are forced to take risks every day. Hiring employees, rolling out new
products and choosing advertising campaigns all involve risk. Making the wrong decision
could lead to lost revenue, poor branding or even legal issues. Business leaders need to
consider the perceived risks associated with business operations and strategies. Perceived risk
is what consumers experience as uncertainty, when buying a product or service from your
company. Understand what consumers are concerned about so that you may mitigate it.
Functional Risk
When a new customer buys your product or services, they probably don't have any
background as to whether it works or not. This is especially true of new products that are
launched into the marketplace. People buy things to solve a problem or to fill a need. For
example, if you are selling a new laundry detergent that gets all the stains out, the consumer
might question if this is actually true. There is a chance that the customer buys your product
but it doesn't get any stains out. This is a perceived functional risk.
Financial Risk
The perceived financial risk is the customer thinking they might be wasting money on your
product or service. Someone hiring an ad agency for new social media marketing might have
heard a lot of negative things about this mode of advertising. The customer's concern is likely
that they will waste a lot of money testing this new method of advertising. Some companies
will offer some form of guarantee to offset the perceived financial risk, so consumers will try
the product without any concern of losing money.
Social Risk
"Keeping up with the Joneses," is a cliche that people often think about when buying a
particular product or service, because it gives them a particular social status. Buying a luxury
car or a specific brand of shoes are decisions often driven by social status. If a person chooses
to buy something outside the social norm, perhaps a new trending product, the perceived
social risk is that friends and family would frown upon the purchase. The person might lose
social stature because of that purchase.
Time Risk
People don't like to waste their time; in some instances, perhaps even more so than wasting
money. The time put into buying a product, learning how to use or assemble it is the
perceived time risk. This is very common with online educational programs or weight loss
programs. A person doesn't want to put hours, weeks or perhaps even months into a program
that doesn't yield results.
Physical Risk
The perceived physical risk is simply the concern that a product will be dangerous and might
potentially harm or injure the consumer or someone else. Parents might not buy certain toys
because of the fear that their children are not mature enough to play with that toy safely. This
is why toys have recommended ages, and restrictions printed on the packaging, which can
help parents better understand the actual risk versus perceived risk. If your business has a
product that ends up causing harm to one person, it could be a media nightmare that might
destroy your brand. Physical risk must be addressed by business owners.
Explain the role of "Positioning" in services marketing.

Positioning is the means by which a brand or company presents its features and benefits to
prospective customers. It is a means of establishing identity, one that sets a business apart
from competitors. It is also determined by variables that include price, target audience, and
the area where a firm does business.

A business must set itself apart from its competition. To be successful it must identify and
promote itself as the best provider of attributes that are important to target customers.
(George S. Day)

Services marketing is customer-directed communication that promotes a service instead of a

physical product. Whereas Proctor & Gamble sells Tide detergent, a law firm sells less
tangible services, such as legal advice. Using the example of a law firm, we can describe its
positioning and infer the type of client the firm hopes to attract.

Some law firms specialize in personal injury cases, which suggests that they will position
their offerings to individuals who are likely to be sensitive to price and in the market for a
short time. Personal injury attorneys do business in specific cities, which may also determine
the nature of prospective customers.

Others firms specialize in corporate law, which might involve large businesses navigating
complex transactions or highly regulated markets. In these instances, the law firm would
position itself to attract businesses with deep pockets that need a broad range of services. The
geographical coverage of these law firms wouldn't necessarily be confined to one city as
many prospective clients have offices across the country.

Another example is the specialty firm that offers a narrow range of services to a very targeted
client base. For instance, a startup company might need a firm positioned for clients who only
need to secure a patent. Operating on a shoestring budget, these sorts of clients would be
extremely sensitive to price but not constrained by geography.
ADVANTAGE OF CENTRAL RESERVATION SYSTEM
Nо Моrе Вооkіng Міѕtаkеѕ
Наvіng а сеntrаl rеѕеrvаtіоn ѕуѕtеm уоu саn mаnаgе thе соrе funсtіоnѕ оf уоur hоtеl аnd
wеbѕіtе. Ноtеl bооkіng ѕуѕtеmѕ рrоvіdе аn еffесtіvе mесhаnіѕm thаt dоеѕ nоt аllоw twо
guеѕtѕ tо bооk thе ѕаmе rооm аt thе ѕаmе tіmе, whісh mаkеѕ thе rеѕеrvаtіоn рrосеѕѕ mоrе
еffісіеnt. То еrr іѕ humаn аnd аn оnlіnе rеѕеrvаtіоn ѕуѕtеm іѕ а muѕt-hаvе fоr hоtеlѕ thеѕе
dауѕ. Тhе ѕуѕtеm саn еаѕіlу dіѕtrіbutе уоur іnvеntоrіеѕ оn ѕеvеrаl ОТАѕ аnd уоu саn mаnаgе
thеm wіth соmрlеtе реасе оf mіnd.
Nеvеr Lоѕе Тrасk оf Yоur Вооkіngѕ
Тhе ѕоlutіоn lіеѕ іn thе ѕuссеѕѕful іmрlеmеntаtіоn оf а сеntrаl rеѕеrvаtіоn ѕуѕtеm (СRЅ). Іt
wіll аllоw уоu, аѕ wеll аѕ уоur hоtеl реrѕоnnеl, tо nоt оnlу bооk trаvеl аrrаngеmеntѕ wіth
guеѕtѕ, but аlѕо tо vіеw thеѕе dеtаіlѕ асrоѕѕ аll соmрutеrѕ іn thе ѕаmе ѕуѕtеm. Тhіѕ wіll
еlіmіnаtе bооkіng рrоblеmѕ аnd соnfuѕіоn аnd аt thе ѕаmе tіmе wіll еnаblе уоu tо ѕее whеn
уоur buѕу ѕеаѕоn іѕ аnd whеn реорlе tеnd tо bооk lеѕѕ оftеn. Whаt'ѕ еvеn bеttеr іѕ thаt еvеn
іf уоu hаvе hоtеlѕ аrоund thе glоbе, уоu wіll ѕtіll bе аblе tо соnnесt аll оf thеm tо а ѕіnglе
сеntrаl wеb-bаѕеd rеѕеrvаtіоn ѕуѕtеm ѕо thаt уоu саn ѕее hоw mаnу rооmѕ guеѕtѕ hаvе
bооkеd nо mаttеr thе dіѕtаnсе. Тhе bеѕt fеаturе оf а сеntrаl rеѕеrvаtіоn ѕуѕtеm іѕ thаt іt lеtѕ
уоu еаѕіlу kеер trасk оf rеѕеrvаtіоnѕ. Аѕ а whоlе, а сеntrаl rеѕеrvаtіоn ѕуѕtеm wіll bе оf grеаt
hеlр аnd wіll аllоw уоu tо mаkе mоrе mоnеу аnd ultіmаtеlу grоw уоur hоtеl іntо ѕоmеthіng
bіggеr аnd bеttеr.
Gеt tо Кnоw Yоur Сuѕtоmеrѕ
Іdеntіfуіng thе buуіng раttеrnѕ оf уоur guеѕtѕ саn bе сruсіаl whеn dеvеlоріng а bеttеr
rеlаtіоnѕhір wіth thеm. Тhе buіldіng blосkѕ оf thе hоѕріtаlіtу іnduѕtrу аrе mоѕtlу ѕеrvісеѕ
аnd lоng-tеrm rеlаtіоnѕhірѕ wіth guеѕtѕ. Неrе іѕ whу уоu nееd а rеlіаblе tооl аnd а bеttеr
ѕуѕtеm tо undеrѕtаnd уоur сuѕtоmеrѕ. Маkе уоur hоtеl ѕtаnd оut аnd рrоvіdе еvеn mоrе
ехсерtіоnаl ѕеrvісеѕ tо уоur guеѕtѕ bу аddіng а реrѕоnаl tоuсh tо thеіr ѕtау. Yоu саn аdd
nоtеѕ fоr еасh guеѕt thаt ѕауѕ іn уоur hоtеl іn thе сеntrаl rеѕеrvаtіоn ѕуѕtеm, е.g whеn’ѕ thеіr
bіrthdау, wеrе thеу оn а ѕресіаl оссаѕіоn thеrе, аnd ѕеnd thеm bіrthdау саrdѕ аnd
соmрlіmеntаrу раѕtrу tо thеіr rооm.
Кеу Fеаturеѕ аnd Funсtіоnѕ
А rеѕеrvаtіоn ѕоftwаrе fоr hоtеlѕ thаt іѕ соmраtіblе wіth аll kіndѕ оf dіѕtrіbutіоn ѕуѕtеmѕ
оffеrѕ а grеаt аdvаntаgе tо thе hоѕріtаlіtу іnduѕtrу:
Lеѕѕ ореrаtіоnаl соѕt – hоtеl СRЅ саn rеduсе thе burdеn оn thе mаnаgеmеnt оf thе hоtеlѕ.
Ву rеquіrіng lеѕѕ wоrk frоm thе frоnt оffісе, уоur rесерtіоn ѕtаff wіll hаvе mоrе tіmе tо tеnd
tо thеіr оthеr tаѕkѕ;
Маkе mоrе рrоfіt – уоu саn nоw еаѕіlу trасk thе rеѕеrvаtіоnѕ mаdе mоnthѕ аhеаd аnd fееl
соnfіdеnt thаt уоu wіll nоt lоѕе thеm. Тhе hоtеl СRЅ lеtѕ уоu kеер trасk оf аll thе ѕресіаl
rеquеѕtѕ уоu'vе hаd frоm уоur guеѕtѕ ѕuсh аѕ fооd рrеfеrеnсеѕ, fаvоurіtе rооm. Сеntrаl
rеѕеrvаtіоn ѕоftwаrе fоr hоtеlѕ hеlрѕ уоu mаnаgе уоur hоtеl іnvеntоrу еffісіеntlу аnd
еffесtіvеlу, wіth thіѕ ѕуѕtеm уоu аrе gіvіng уоur trаvеllеrѕ thе орtіоn оf gеttіng thе bеѕt рrісе
whеn bооkіng thrоugh уоur wеbѕіtе.
Сuѕtоmеr Веnеfіtѕ
А сеntrаl rеѕеrvаtіоn ѕуѕtеm іѕ аn еffесtіvе аnd tіmе-ѕаvіng tооl. Yоur guеѕtѕ саn tаkе
аdvаntаgе оf уоur ѕресіаl оffеrѕ аnd рrоmоtіоnѕ, аnd аdd ехtrаѕ tо thеіr ѕtау. А bооkіng
mаdе thrоugh thе hоtеl СRЅ ѕуѕtеm іѕ оftеn mоrе есоnоmісаl ѕіnсе уоu dоn’t hаvе tо рау
аnу соmmіѕѕіоnѕ tо а bооkіng аgеnt, аlѕо іt іѕ еаѕу tо rеtrіеvе, сhаngе оr саnсеl bооkіngѕ vіа
thе rеѕеrvаtіоn ѕоftwаrе.

Characteristics

1. Launch a Hotel Website – It must have the ability to launch a hotel website. As websites
allow users to easily book rooms at anytime and from anywhere.

2. User-Friendly Interface – The system has to be user-friendly as it becomes easier to

handle the operations and takes less time for the learning process.

3. Easy Booking Process – With a simple booking process you save a lot of time of users
and increase chances for them to reserve rooms faster at your hotel instead of booking with
your competitor.

4. Offline Booking – It must also support an on-desk feature so that you can immediately
assign rooms to incoming guests.

5. Mobile-Friendly – Nowadays most of the travelers have smartphones or tablets.

Therefore, having a responsive and mobile-friendly website helps you reach a large group of
customers.

6. Support for Multiple Languages & Currencies – Make your website more readable for
visitors around the globe with a booking engine that supports multiple languages and
currencies.

7. Easy Management of Rooms – The system must have an intuitive user interface to help
you manage room reservations easily.

8. Integrated Payment Gateway – It must have secured payment gateways as it increases

the trust of customers in your brand.

9. Easy Search Option – As travelers are always in a hurry, the system must have an easy
search option that delivers quick and accurate results.

10. Discounts – Discounts and offers are best ways to attract customers. Discount creation
feature is also a great feature to have in a reservation system.

11. Image Gallery – With beautiful images of your hotel you can impress online visitors and
compel them to book directly at your hotel.
12. Review system – Guests trust online reviews just like personal recommendations. So
with an inbuilt review system in hotel reservation software you can allow your guests to leave
their feedback on your website. The positive reviews definitely help in increasing sales.

13. Google Maps Integration – People use Google Maps extensively to search for fun places
and things to do in different places. A reservation system integrated with Google maps is very
useful if you want your guests to easily find your hotel.

14. Refund option – If a customer cancels his reservation then there must be a mechanism to
request a refund. Therefore, a refund option will allow guests to apply for a refund and as a
good gesture, you can refund the required amount.

15. Social Media Links – Social media websites are great platforms to communicate with
your guests and other travelers. So a hotel reservation system must allow you to show your
social media icons or links on the hotel website. By displaying social media links on your
website you give the visitors a chance to get to know more about your hotel. They will get
updates regarding new promotional offers and events that will take place at the hotel.
Service Recovery Strategies
Service recovery is a term for systematic efforts by a firm to correct a problem
following a service failure and retain customer’s goodwill
When a service failure occurs, service recovery strategies will be needed to be implemented
by service organizations. This long-term strategy will be embedded as part of organization’s
overall service strategy. Service recovery is about the combination of a variety of strategies to
solve the specific context of the problem. The proposed eight strategies by Zeithaml et al. are:

The first strategy is to make the service fail-safe by doing it right the first time. It avoids
negativities of failures and it is the most important dimension of service quality. In order to
achieve that, there must be a top management commitment and a positive firm culture of
‘zero defection’ and appreciate ‘relationship value of customers’ to uphold the standards of
service without blindly adopting the Total Quality Management from the product perspective.

The second strategy is to encourage and track complaints. According to research, almost
50% of customers encountered problems by do not complain. This segment will have a
higher chance of switching to competitor as organization has no control over it. Encouraging
complaint is healthy and it will allow organization to learn. Tracking complaints will ensure
no complaints are left out. Technology can be used to aid in handling of complaints.

The third strategy is to act quickly. Complaining customers want quick responses and do not
want to be ping-pong around different employees, which will seem to be shirking
responsibilities. Even when full resolution is likely to take longer, fast acknowledgement is
required to appease them. There is positive correlation between fast service recovery with
satisfaction and loyalty.
The fourth strategy is to provide adequate explanations. This allows customers to
understand why the failure occurred. According to attribution theory, customer will
understand and appreciate what is going on and they will be more forgiving. The content and
the style of the delivery must be suitable to the affected customers subjectively

The fifth strategy is to treat customers fairly. They want justice in their complaint-handling
process, which involves procedure (speed, convenience, follow-up etc), interaction (behavior
of service representatives) and outcome. Therefore it is important that the process be handled
properly to return them the justice they seek. Recent research indicates that justice
considerations have a large impact on how customers evaluate firm’s recovery effort.
Therefore, if they do not perceive themselves being just, they will rate the recovery badly
even when it is perfectly done. (Tax and Brown 2000)

The sixth strategy is to cultivate relationship with customers. Long term relationship will
allow customers to be more forgiving and open to the recovery process. Cultivation of strong
relationship can provide an important buffer to service firms when failures occur. The biggest
challenge would be to restore their confidence and trust again.

The seventh strategy is to learn from recovery experience. Organizations can learn through
using tools to help evaluate experiences. They can use blueprinting, control charts, fishbone
diagram (cause and effect diagram) to use those acquired knowledge in their recovery effort.
The last strategy is to learn from lost customers through market research and get into the root
cause analysis of why they left.

Learn from Lost Customers

◦Learn from customers who defect or decide to leave
◦Its essential to prevent the same mistakes and losing more customers in future
DIMENSIONS OF SERVICE QUALITY

#1 Just Do It
RELIABILITY: Do what you say you’re going to do when you said you were going to do it.
Customers want to count on their providers. They value that reliability. Don’t providers yearn
to find out what customers value? This is it.It’s three times more important to be reliable than
have shiny new equipment or flashy uniforms.
Doesn’t mean you can have ragged uniforms and only be reliable. Service providers have to
do both. But providers first and best efforts are better spent making service reliable.
Whether it’s periodics on schedule, on-site response within Service Level Agreements
(SLAs), or Work Orders completed on time.

#2 Do It Now
RESPONSIVENESS: Respond quickly, promptly, rapidly, immediately, instantly.
Waiting a day to return a call or email doesn’t make it. Even if customers are chronically
slow in getting back to providers, responsiveness is more than 1/5th of their service quality
assessment.
Service providers benefit by establishing internal SLAs for things like returning phone calls,
emails and responding on-site. Whether it’s 30 minutes, 4 hours, or 24 hours, it’s important
customers feel providers are responsive to their requests. Not just emergencies, but everyday
responses too.
REPORTING RESPONSIVENESS
Call centers typically track caller wait times. Service providers can track response times. And
their attainment of SLAs or other Key Performance Indicators (KPIs) of responsiveness. This
is great performance data to present to customers in Departmental Performance Reviews.

#3 Know What Your Doing

ASSURANCE: Service providers are expected to be the experts of the service they’re
delivering. It’s a given.
SERVQUAL research showed it’s important to communicate that expertise to customers. If a
service provider is highly skilled, but customers don’t see that, their confidence in that
provider will be lower. And their assessment of that provider’s service quality will be lower.

RAISE CUSTOMER AWARENESS OF YOUR COMPETENCIES

Service providers must communicate their expertise and competencies – before they do the
work. This can be done in many ways that are repeatedly seen by customers, such as:
  Display industry certifications on patches, badges or buttons worn by employees
 Include certification logos on emails, letters & reports
 Put certifications into posters, newsletters & handouts
By communicating competencies, providers can help manage customer expectations. And
influence their service quality assessment in advance.

#4 Care about Customers as much as the Service

EMPATHY: Services can be performed completely to specifications. Yet customers may not
feel provider employees care about them during delivery. And this hurts customers’
assessments of providers’ service quality.
For example, a day porter efficiently cleans up a spill in a lobby. However, during the clean
up doesn’t smile, make eye contact, or ask the customer if there is anything else they could
do for them. In this hypothetical the provider’s service was performed fully. But the customer
didn’t feel the provider employee cared. And it’s not necessarily the employees fault. They
may not know how they’re being judged. They may be overwhelmed, inadequately trained, or
disinterested.
SERVICE DELIVERY MATTERS
Providers’ service delivery can be as important as how it was done. Provider employees
should be trained how to interact with customers and their end-users. Even a brief session
during initial orientation helps. Anything to help them understand their impact on customers’
assessment of service quality.

#5 Look Sharp
TANGIBLES: Even though this is the least important dimension, appearance matters. Just
not as much as the other dimensions.
Service providers will still want to make certain their employees appearance, uniforms,
equipment, and work areas on-site (closets, service offices, etc.) look good. The danger is for
providers to make everything look sharp, and then fall short on RELIABILITY or
RESPONSIVENESS.

At the End of the Day

Customers’ assessments include expectations and perceptions across all five SERVQUAL
dimensions. Service providers need to work on all five, but emphasize them in order of
importance. If sacrifices must be made, use these dimensions as a guide for which ones to
rework.
Five Steps to Use Six Sigma Methodology in Customer Service
The five steps of six sigma apply in customer service just as it does in production.
1. Define Customer Service
In the first sigma we determine what the problem is and what we want to achieve.
In order to fix the problem, you have to understand the problem. Can you clearly describe the
problem that takes place? Can you define it? What is happening? Why is it happening? The
first step to six sigma is to clarify and understand the customer service problem. Once this is
done, we’re ready to move one towards fixing the problem.
2. Measure Customer Service
In the second sigma we measure the data and effect of problems taking place.
Once we understand what is going on, we can outline variables and details associated with
our problem we’re attempting to resolve. Seek out every piece of evidence associated with
our customer service actions so that we can accurately plan to perfect the service offering.
3. Analyze Customer Service
The third sigma is where analysis of root causes takes place.
Once we’ve identified the problem, measured the effect and outlined the details of the
problem, we can analyze the action taking place and what contributes to problems. Under
what circumstances does the problem arise? What are the root causes that bring about
problems? Are there certain groups or people typically associated with the problem? Is it
related to one specific action? Is it limited to any particular segment of our business or
offering? In short, where and when exactly is the failure taking place?
4. Improve Customer Service
In the fourth sigma we finally address the typical solutions.
What are the steps commonly taken to resolve the problem? What recommendations can be
make to keep the problem from happening? What changes need to be made to our process to
apply these recommendations? Who is the final decision maker of these process changes?
Who is going to institute change? How is the change going to be communicated?
5. Control Customer Service
Finally, the fifth sigma is where we create the controls to keep the correct process going.
In order to maintain efficiency and productivity in our service offering we must maintain
correct process. Controls need to be created to ensure that quality work is being performed
and that triggers are in place to prevent defects. In service, a trigger could be maintaining
employee morale. Ensuring adequate breaks, autonomy of work, optimal equipment, or
anything that will contribute to the sustained near-perfect performance from those who
participate in the system.
Pre purchase Stage
The first stage in the service purchase process, where customers identify alternatives, weigh
benefits and risks, and make a purchase decision. The decision to buy and use a service is
made in the pre purchase stage. Individual needs and expectations are very important here
because they influence what alternatives customers will consider. If the purchase is routine
and relatively low risk, customers may move quickly to selecting and using a specific service
provider.
But when more is at stake or a service is about to be used for the first time, they may conduct
an intensive information search (contrast how you approached the process of applying to
college versus buying a pizza or a hamburger!). The next step is to identify potential suppliers
and then weigh the benefits and risks of each option before making a final decision.

Service Encounter Stage

After deciding to purchase a specific service, customers experience one or more contacts with
their chosen service provider. The service encounter stage often begins with submitting an
application, requesting a reservation, or placing an order. ontacts may take the form of
personal exchanges between customers and service employees, or impersonal interactions
with machines or computers. In high contact services, such as restaurants, health care, hotels,
and public transportation, customers may become actively involved in one or more service
processes. Often, they experience a variety of elements during service delivery, each of which
may provide clues to service quality.
Service environments include all of the tangible characteristics to which customers are
exposed. The appearance of building exteriors and interiors; the nature of furnishings and
equipment; the presence or absence of dirt, odor, or noise; and the appearance and behavior
of other customers can all serve to shape expectations and perceptions of service quality.
Service personnel are the most important factor in most high-contact service encounters,
where they have direct, face-to-face interactions with customers. But they can also affect
service delivery in low-contact situations like telephone-based service delivery.
Knowledgeable customers often expect employees to follow specific scripts during the
service encounter; excessive deviations from these scripts can lead to dissatisfaction.
Handling service encounters effectively on the part of the employee usually combines learned
skills with the right type of personality.
Support services are made up of the materials and equipment plus all of the backstage
processes that allow front stage employees to do their work properly. This element is critical,
because many customer-contact employees can't perform their jobs well without receiving
internal services from support personnel. As an old service-firm axiom goes: "If you aren't
servicing the customer, you are servicing someone who is.
Other Customers When customers use people-processing or mental stimulus processing
services, they often find themselves in close proximity to other customers. Waiting rooms at a
medical clinic may be filled with other patients; trains, buses, or aircraft are usually carrying
many passengers at once, requiring travelers to sit next to strangers. Similarly, restaurants
serve many patrons simultaneously, and a successful play or film will attract a large audience
(in fact, the absence of an audience is a bad sign!).
Unfortunately, some of these other customers occasionally behave badly, thus detracting
from the service experience. Managers need to anticipate such incidents and have
contingency plans in place for how to deal with the different types of problems that might
occur.

Post purchase Stage

During the post purchase stage, customers continue a process they began in the service
encounter stage—evaluating service quality and their satisfaction/dissatisfaction with the
service experience. The outcome of this process will affect their future intentions, such as
whether or not to remain loyal to the provider that delivered service and whether to pass on
positive or negative recommendations to family members and other associates.
Customers evaluate service quality by comparing what they expected with what they perceive
they received. If their expectations are met or exceeded, they believe they have received high-
quality service. If the price/quality relationship is acceptable and other situational and
personal factors are positive, then these customers are likely to be atisfied.
As a result, they are more likely to make repeat purchases and become loyal customers.
However, if the service experience does not meet customers' expectations, they may
complain about poor service quality, suffer in silence, or switch providers in the future.

Managing Demand & Supply

 Pricing
 Developing nonpeak demand
 Developing complementary services
 Creating reservation systems
 Controlling Supply
 Using part-time employees
 Maximizing efficiency
 Increasing consumer participation