SERVICE QUALITY MANAGEMENT THC3

Guestology

The scientific study of guest behavior in hospitality organizations.

Guest Profiling

Understanding and categorizing guests to tailor experiences.

Serving Internal Customers

Employees should receive the same respect and care as external customers.

Understanding the Guest

Guest-focused organizations design personalized experiences based on guest needs and expectations.

Guest Experience

The sum of all experiences a guest has with a service provider on a given occasion.

Guest Experience Formula

Guest Experience = Service Product + Service Setting + Service Delivery System.

Service Product

Tangibles and intangibles involved in the service. Sometimes called “Service Package”

Service Setting (Service Environment)

The physical environment where the experience occurs.

Service Delivery

Human and physical components of service, plus organizational and informational systems.

Nature of Services

Services are often intangible, consumed at the moment of production or delivery, requiring interaction between service provider and guest.

Quality

The difference between expected and delivered service quality.

Quality Formula

Qe = Qed - Qee.

Value

The perceived quality of the experience relative to the cost incurred by the guest.

Value Formula

Ve = Qe / All Costs Incurred by Guest.

Cost

Tangible and intangible costs a guest incurs to receive the service.

Product-Service Mix

A blend of tangible products and intangible services.

Two-Way Communication

Both customer and staff must engage in the service process.

Relationship Building

Long-term relationships with customers lead to repeat business and positive word-of-mouth.

Diversity Culture

Hospitality staff interact with people from diverse backgrounds.

Labor Intensive

Requires a large workforce to deliver exceptional customer experiences.

Perishability

Tourism products can’t be stored and are lost if not booked.

People-Oriented

Tourism quality depends on interactions between staff and customers.

Inconsistency

Experiences in tourism can vary due to factors like mood or situation.

Investment and Immobility

Tourism businesses require large investments in assets that can't be easily moved.

Inseparability

Tourism products are sold, produced, and consumed simultaneously.

Intangibility

Tourism experiences can’t be touched or stored physically.

Inflexibility

Tourism products are fairly inflexible in terms of fluctuation.

Lower Price Strategy

Offering a similar service to competitors at a lower price by focusing on cost reduction and efficiency improvements.

Differentiated Product Strategy

Focuses on making the guest experience unique rather than competing on price.

Brand Image

A brand promises guests a consistent quality and value of experience every time they encounter the brand.

Special Niche Strategy

Targeting a specific market niche by offering unique qualities like better service or location.

Looking Around (Environmental Assessment)

Identifies opportunities and threats to understand future business impacts.

Looking Within (Internal Assessment)

Evaluates the organization’s strengths and weaknesses to understand core competencies.

Action Plans

Management Performance Plan, Employee Hiring, Capacity Utilization Plan, Financial Plan, Marketing Plan

Service-Setting Strategy

Service-Product Strategy, Delivery-System Strategy

Changing Demographics

Shifts in values and preferences among different generations in the market.

Veterans

Financially conservative and want to be taken care of when travelling.

Baby Boomers

Treat work and personal sacrifice as keys to success.

Generation X

They are driven by consistent goals to make money and buy

consumer products

Generation Y

They are optimistic, self-confident, and open to change, but

are also impatient and requiring immediate gratification. They are

trendsetters.

Changing Technology

Impact of technology on enhancing the guest experience while reducing labor.

Changing Social Expectations

Innovations catering to evolving needs, such as convenience for busy families.

Changing Economic Forces

Economic policies affecting customers' purchasing power and business operations.

Changing Competitors

Identifying existing competitors, potential competitors, and substitute providers.

Service Strategy

Helps organizations decide service offerings and target markets for long-term growth.

Action Plans

Clear plans outlining who to serve, what to offer, where the market is, and how to achieve goals.

Service Quality

Guests expect high-quality, value-for-money services.

Perceived Service Quality

The gap between customer expectations and perceptions.

Reliability

Performing the promised service consistently and accurately.

Responsiveness

The willingness to help customers and provide prompt service.

Assurance

The knowledge, competence, and credibility of employees.

Empathy

Providing caring and individualized attention to customers.

Tangibles

Physical aspects like facilities, appearance of staff, and communication materials.

Quality Methods: Taguchi Method

Ensures consistent performance by meeting specifications.

Quality Methods: Poka-Yoke

Error-proofing method to prevent mistakes.

Quality Methods: Quality Function Deployment (QFD)

Translates customer satisfaction into measurable service/product specifications.

Benchmarking

Comparing company performance to industry leaders known for being 'best in class.'

Walk-Through Audit

A customer-focused survey that tracks the entire service experience.

Achieving Service Quality

Understanding and controlling costs related to ensuring service quality.

Cost of Quality

Costs related to ensuring service quality, including prevention and failure costs.

Unconditional Service Guarantee

Guarantee aimed at enhancing customer loyalty and satisfaction.

Opinion Surveys

Gather customer feedback about service quality.

Process Focus

Ensuring processes meet customer requirements or specifications.