Core and Supplementary Services at Luxury Hotel (Offering Much More than Cheap Motel!)
Reservation Cashier Business Center Room Service Wake-up A Bed for the Night in an Elegant Private Room with a Bathroom Valet
Parking
Reception
Call Internet
What Happens, When, in What Sequence? Time Dimension in Augmented Product (Fig 3.3)
Reservation
Room service
Time Frame of An Overnight Hotel Stay Before Visit (Real-time service use)
Park Car
Check In
Breakfast
Check Out
Breakfast Prepared
Travel to Store
Leave Store
(Fig 3.4)
(Fig 3.5)
Pay
Exceptions Safekeeping
KEY:
Hospitality
Core
Directions to service site Schedule/service hours Prices Conditions of sale Usage instructions
Core
Periodic statements of
account activity Machine display of amount due
Core
Examples of elements:
Greeting Waiting facilities and amenities Food and beverages Toilets and washrooms Security
Core
Restitution
Developing a Blueprint
Identify key activities in creating and delivering service Define big picture before drilling down to obtain a higher level of detail Distinguish between front stage and backstage Clarify interactions between customers and staff, and support by backstage activities and systems Identify potential fail points; take preventive measures; prepare contingency Develop standards for execution of each activity times for task completion, maximum wait times, and scripts to guide interactions between employees and customers
- Identify fail points and risks of excessive waits - Set service standards and do failure-proofing
Make Reservation
Valet Parking
W Coat Room
Line of interaction
Front -
Accept reservation
Greet, take coat, coat checks Hang coat with visible check numbers
Contact person (visible actions) Line of visibility Contact person (invisible actions) Line of internal physical interaction
- Stage
Back
Support Processes
Everything on the menu actually available? Mistakes in transmitting information a common cause of quality failuree.g. bad handwriting; poor verbal communication Customers may not only evaluate quality of food and drink, but how promptly it is served, serving staff attitudes, or style of service
the end Customer expectations: Accurate, intelligible and prompt bill, payment handled politely, guest are thanked for their patronage
Service providers should design standards for each step sufficiently high to satisfy and even delight customers
Standards may include time parameters, script for a technically
correct performance, and prescriptions for appropriate style and demeanor Must be expressed in ways that permit objective measurement
First impression is important as it affects customers evaluations of quality during later stages of service delivery
Customer perceptions of service experiences tend to be cumulative For low-contact service, a single failure committed front stage is relatively more serious than in high-contact service
Viewed more seriously because there are fewer subsequent
Errors include:
Treatment errorshuman failures during contact with customer
e.g., lack of courteous or professional behavior, failure to acknowledge, listen to, or
equipment breakdown
Why Redesign?
Institutions are like steel beamsthey tend to rust. What was once smooth and shiny and nice tends to become rusty.
Why Redesign?
Revitalizes process that has become outdated Changes in external environment make existing practices obsolete and require redesign of underlying processes
Creation of brand-new processes to stay relevant
focusing on benefit-producing part of service encounter Eliminate non-value-adding steps Improve efficiency More customized service Differentiate company
Shifting to self-service
Increase in productivity and service quality
Bundling services
Involves grouping multiple services into one offer, focusing on a well-defined
customer group Often has a better fit to the needs of target segment Increase productivity Add value for customers through lower transaction costs Customize service Increase per capita service use
facilities and equipment to improve service experience Increase convenience Enhance the satisfaction and productivity of front-line staff Cultivate interest in customers Differentiate company
Customer Participation
Actions and resources supplied by customers during service production
and/or delivery
Includes mental, physical, and even emotional inputs
Three Levels
LowEmployees and systems do all the work
-
Provide needed information and instructions Make some personal effort; share physical possessions Service cannot be created without customers active participation Customer can jeopardize quality of service outcome (e.g., weight loss, marriage counseling)
systems provided by service supplier Customers time and effort replace those of employees
product
Lower prices, reflecting lower costs, induce customer to use SSTs SSTs present both advantages and disadvantages
Benefits: Time and cost savings, flexibility, convenience
of location, greater control over service delivery, and a higher perceived level of customization Disadvantages: Anxiety and stress experienced by customers who are uncomfortable with using them
as nearest computer!
Obtaining detailed information and completing transactions can be done
Jaycustomer: A customer who behaves in a thoughtless or abusive fashion, causing problems for the firm, its employees, and other customers Divergent views on jaycustomers
The customer is king and can do no wrong. Marketplace is overpopulated with nasty people who
cannot be trusted to behave in ways that selfrespecting services firms should expect and require
Insight: Theres truth in both perspectives
Thief
The
The The
Rulebreaker
Belligerent Deadbeat Feuders
Family
Vandals