htm 3103 consumer behavior for tourism hospitality n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
HTM 3103 Consumer Behavior for Tourism & Hospitality PowerPoint Presentation
Download Presentation
HTM 3103 Consumer Behavior for Tourism & Hospitality

Loading in 2 Seconds...

play fullscreen
1 / 18

HTM 3103 Consumer Behavior for Tourism & Hospitality - PowerPoint PPT Presentation


  • 304 Views
  • Uploaded on

HTM 3103 Consumer Behavior for Tourism & Hospitality . Hospitality as services Chapter 2. Developed by A. Kalyakorn Taychanavakul. Objectives . This chapter focused on the consumption of services on consumers of hospitality

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'HTM 3103 Consumer Behavior for Tourism & Hospitality' - fia


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
objectives

Developed by A. KalyakornTaychanavakul

Objectives
  • This chapter focused on the consumption of services on consumers of hospitality
  • How is the consumption of services different from that of other goods?
  • It will be discussed with their associated characteristics
hospitality as services

Developed by A. KalyakornTaychanavakul

Hospitality as services
  • Service industries are playing an increasingly important role in developed economies and now account over 70 percent of employment (To be updated on world’s GDP and Thailand’s GDP)
  • It is anticipated that the service sector will continue to grow, led by:
    • Increasing living standards, particularly in western economies and emerging countries
    • Rapid technological advancement
the nature of products goods and services

Developed by A. KalyakornTaychanavakul

The nature of products, goods and services

Products

  • Are at the center to all forms of marketing or 4 Ps

Thereby, it has been extensively defined and evaluated

  • Was defined by Philip Kotler as,

‘anything that can be offered to

a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organization, and ideas" (Philip Kotler, 1984)

goods and services

Developed by A. KalyakornTaychanavakul

Goods and services
  • Goods are tangible objects that exist in both time and space (devices, things or objects)
  • Services consist solely of acts or processed, cannot be posed but can only be experienced, created or participated in (deeds, performances or efforts)
  • ‘Services encompasses any activity or benefit that one party can offer to another, that is essentially intangible and does not result in ownership of anything’
  • Philip Kotler, 1994
  • Therefore, for goods, it could be owned but not for services ( lack of ownership)
characteristics of services

Developed by A. KalyakornTaychanavakul

Characteristics of services
  • 1) Intangibility
  • Consumers cannot see, touch, hear, smell or taste hospitality services before purchase
    • One problem is , it is more risky when consumers still never consume the services  sometimes, consumers decide not to buy if they still never use it
  • Tourism companies have tried to overcome this problem by offering the consumer videos of holiday locations to make the experience seem more‘ real‘ can only experience their performance
  • Performance of services can be experienced in terms of totality
    • This means , the overall consumption is made up of more than simply tangible products ,e.g. considering the ways in which we use a hotel, while there are a number of tangible elements to its use (for example, the bed, the restaurant, the bar, the food, sports & fitness facilities etc.,) NOT ONLY THAT, overall consumption would include the atmospherics, relationships with staff and other customers ( e.g. friendliness, during queuing or within the restaurant), our ongoing feeling of (dis)satisfaction
  • the most important factor which distinguishes products from goods
slide7

Developed by A. KalyakornTaychanavakul

2) Inseparability

  • Being produced and consume simultaneously , therefore, Lack of distinction between delivery and use
  • Inseparability between consumers and service provider – Hospitality services by their nature are based on:
    • high level of customization
    • high level of human interaction
    • This is to focus on needs and wants of consumers as much as possible , e.g. imagine when you visit bars, clubs, or restaurants, hotel concierge
  • And this leads to the problems of service standardization -- services cannot be standardized , cannot gain economies of scale in the same way goods can
  • And this led to the next characteristic, which is, heterogeneity
slide8

Developed by A. KalyakornTaychanavakul

3) Heterogeneity (variability)

  • Refers to less ability to develop uniformity and standardization (unlike goods)
  • Services are seen to be variable , while goods are more uniform
  • The more uniformity, the easier to standardized
  • Services are highly subjective
    • not consistent due to variability in individuals ( both service provider and consumer) the mood, the time of the day, other factors, e.g. the internet goes wrong , not enough staff and out of stock products
  • Examples for variability in each individual
    • For the service provider : service minded or not, ability to deliver a high standard service , time of the day
    • For the consumers , change in perception how they perceive and expectation of what is good service
  • Therefore, In hospitality services, it is difficult to tell that services will be delivered with high standard at all time
slide9

Developed by A. KalyakornTaychanavakul

4) Perishability

  • Services cannot be stored, unlike goods , therefore, unused capacity is lost forever
  • Demand fluctuations have made demand to be very difficult to manage  very different demands during different time

Peak and off-peak time period

Peak time = The time with the most highest demand

Off-peak time = The time with the least demand

  • E.g. Restaurants usually has its peak time in the evening while in the afternoon is off-peak ( very quiet) , this can lead to very different experiences towards consumers  therefore, some restaurants offer a set menu during lunch and afternoon and just a‘ la carte for dinner
  • targeting at business travellers and students on holiday during weekdays, leisure travellers during weekends , For some spa outlets, offering special rate at different time of the day ( For off-peak time, offering a special rate to attract more consumers in order to manage demand better)
slide10

Developed by A. KalyakornTaychanavakul

5) Lack of ownership

  • Both before and after consumption
  • Before : consumers only has access to it when buy the service
  • After : consumers never owns anything at the end of the transaction, except ,‘experience‘ which often leads to a feeling of satisfaction ( if the overall experience was good) – this means that, the purchase of service will have a considerable emotional significance for the consumer
consuming services the moment of truth

Developed by A. KalyakornTaychanavakul

Consuming services: the moment of truth
  • The moment of truth is a combination between expectation (of consumers whether it can be fulfilled or not), experience and knowledge in an interaction between consumer and staff
  • The moment of truth : the point at which consumers come into contact with the service provider
  • This is the critical success factor for service firms.WHY?
consuming services dimensions which impact on cb

Developed by A. KalyakornTaychanavakul

Consuming services: Dimensions which impact on CB
  • Time
  • Within hospitality, consumers go through a number of members of staff many times during the course of service
    • e.g. For the hotel stay – it can be many days or couple of weeks. All these interactions will offer the consumer different experiences over a long period of time.
  • Peak time and off peak time can also affect the level of service provided , e.g. not enough capacity or staff
  • Overall services experiences of customers are the key to determine whether individuals have a good or bad service experiences, not only one-time judgment
slide13

Developed by A. KalyakornTaychanavakul

Physical proximity

  • Service encounter can be classified into 3 types :
    • Face-to-face ; e.g. occur in a reception areas – enabling a great degree of customization
    • Remote ; e.g. automated, quick check-out billing systems in many busy airport hotels and business hotels ( guest check their own bills on in-room televisions, carry on their own luggage to the exit and pay by credit card at the machine in the hallway) -- the richness of experience and high level of customization were much lessened
    • Remote personal encounter ; e- commerce – e.g. hotel reservation online, 24 hours online chat live ( customer service) -- problems in not enough staff, cannot answer highly customized questions and system failure
slide14

Developed by A. KalyakornTaychanavakul

Co-producing services by the customers

  • Closely related to aspects of customization and physical proximity, in that, customers are increasingly required to co-produce the service
  • This can lessen the impact of demand fluctuation during peak time , customer can avoid bad experiences , e.g. long waiting queue by automated check out mentioned earlier
slide15

Developed by A. KalyakornTaychanavakul

Degree of involvement

  • Different degrees of engagement by customers by different types of services
  • The more the consumers could involved, e.g. complaining after feeling dissatisfied, it is more likely that they would come back again
slide16

Developed by A. KalyakornTaychanavakul

Degree of customization

Could be defined as :

  • 1)The degree to which a customer interacts with the service ( depends on the degree that a customer can intervene in the service)
  • 2)The degree to which a service is altered for specific customers ( depends on the degree to which a service can be customized)
  • The higher the better , in order to fulfill needs and wants of customers and make them satisfy
slide17

Developed by A. KalyakornTaychanavakul

Service providers

  • ‘People‘ or Hospitality staff are critical in creating customer‘s experience for service
  • The employee is seen by consumers as a representative of an organization or service firm, e.g. restaurants are judged by the performance of the host, the server , and the billing staff
  • These are in turn directly affected by such factors as expertise, attitude, and demography (e.g.age, sex, income, nationality, etc.,)
  • Each individual is different, therefore, service industry always experience inconsistency in delivering good service
slide18

Developed by A. KalyakornTaychanavakul

Setting

  • Encouraging approach or avoidance responses among consumers
  • Therefore, in Hospitality, physical design, atmospherics, on going activities are often important