Student Electronic Assignment Cover Sheet

Module Name: Service Marketing Management

Assignment Title: Case Study of Iveagh Garden Hotel
Module Code: B9MK135
Lecturer Name: Gary Bernie
Student Name: Saner Kaya ,Fatma Hazel Yilmaz
Bahar Bicakci ,Ceyda Ceyhanli
Student Number: 20033116,20026039
20029127,20026037
Word Count: 7890
Date of Submission: 4 March 2024

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 Table of Contents

1. Introduction..................................................................................................................1
2. The Servuction System.................................................................................................2
3. Dimensions of Servuction Model.................................................................................3
4. Servuction System of Iveagh Garden Hotel................................................................4
5. Service Recovery......................................................................................................... 6
6. Service Recovery Processes.........................................................................................7
7. Service Recovery Strategies.........................................................................................9
8. Service Quality Of Hotel Iveagh Garden....................................................................10
9. What is the service quality?........................................................................................10
10. Dimensions of Service Quality...................................................................................11
11. Dimensions of Service Quality of Iveagh Garden Hotel............................................12
12. Importance of Service Quality of Management..........................................................13
13. A Service Quality Management Programme..............................................................15
14. Customer Complaining Behavior ..............................................................................15
15. Why Do Customers Complain?..................................................................................16
16. Increasing the Service Impact In Customer Relationships.........................................17
17. Customer Satisfaction and Service Quality Are Prerequisites for Loyalty................17
18. Service Marketing Mix..............................................................................................19
19. Service Marketing Mix of Iveagh Garden Hotel........................................................20
20. Service Marketing Triangle.......................................................................................26
21. Analysis of The Service Marketing Triangle Through Iveagh Garden Hotel............27
22. What Could be Better?...............................................................................................29
23. Conclusion..................................................................................................................30
24. Bibliography...............................................................................................................31

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Abstract

Customer behavior analysis of Iveagh Hotel. Iveagh Hotel is one of the oldest and most
popular hotels in Dublin. What are the strengths and weaknesses of this hotel that
consistently receives high ratings from its visitors? We utilize data obtained from the hotel's
employees, manager, and our own observations. At Iveagh Garden Hotel, maximum attention
is given to customer satisfaction, and compensations are provided in cases where customers
are dissatisfied with the service. The hotel consistently maintains a high level of service
quality, allowing it to sustain its quality and popularity over the years.

Introduction

In the field of service marketing, particularly in the hospitality industry, focusing on customer
satisfaction is of paramount importance. This is especially evident in renowned
establishments like the Iveagh Garden Hotel in Dublin, celebrated for its location and
historical richness. Service marketing strategies play a crucial role in aligning customer
expectations with service offerings, thereby fostering a positive customer experience. This
study aims to comprehensively examine the service marketing approach adopted by the
Iveagh Garden Hotel. By analyzing service quality, marketing mix, marketing triangle,
service recovery processes, and mechanisms for ensuring customer satisfaction, we aim to
evaluate the effectiveness of the Iveagh Garden Hotel's marketing efforts. Additionally, by
examining customer segmentation and satisfaction strategies, we seek to uncover the steps
taken by the Iveagh Garden Hotel to enhance service quality. This academic research aims to
contribute to a deeper understanding of effective marketing strategies and customer relations
in the service sector.

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SERVUCTION SYSTEM

Servuction model describes service experience and perceived benefits of customers obtained
from relevant experience. In parallel with the core characteristics of service, the inseparability
of the production and consumption process, and the importance of the customer’s role in
service production are recognized in the model. Offering service, the physical support
structure and the internal system of the organization are also as important as the key factors in
the servuction model. In the model, service is defined as “result of the interaction between
customers, the physical support structure and contact personnel”, while physical support
structure refers to all of the equipment required for the delivery of the service by specifying
the instruments required for the customer and/or the contact personnel, and the environment.
The internal system of the organization is responsible for the operation of the Servuction
system. The internal system of the organization comes about in the model includes rules,
regulations and processes of the organization and also refers to the invisible part of the
servuction model. And, the inanimate environment, contact personnel/service providers, and
other customers mainly refer to the visible part of the model. (Avan & Zorlu,2017: 448)

As it is well known manufactured goods and services production process is substantially

different. The customer has partial responsibility for the production process of manufactured
goods, while he/she is an inherent part of the Servuction system because the production,
delivery, and consumption of services take place simultaneously. Within this structure,
customers are linked to the process because, without them, no service is required. Moreover,
they are directly engaged as important resources in the service exchange process with both
providers and receivers taking on mutual responsibilities. (Avan & Zorlu,2017: 448)

The Servuction System" source: Baron, Harris ve Elliot, 2005: 51

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The Servuction System

The servuction system consists of a technical core and the service delivery system: The
technical core, where inputs are processed and the elements of the service product are
created. This technical core is typically backstage and invisible to the customer (Wirtz &
Lovelock, 2016, p.122). The service delivery system — where the final 'assembly' takes place
and the product is delivered to the customer. This subsystem includes the visible part of the
service operations system — buildings, equipment, and personnel — and possibly other
customers (Wirtz & Lovelock, 2016, p.122).

The Servuction System Source: Wirtz & Lovelock, 2016: 122

DIMENSIONS OF SERVUCTION MODEL

1. Servicescape: In the service industry, the service environment is the first aspect of the
service that is perceived by the customer and it is at this stage that consumers are likely to
form impressions of the level of service they will receive. For this reason, the service
environment should be viewed as an antecedent to service quality perceptions. And, as an
essential component of the service environment, servicescape plays a vital importance in
providing service quality. Today the servicescape framework is widely used to describe the
physical surroundings of a service company. (Avan & Zorlu,2017: 449)

2. Service Providers: For numerous services, the goods (tangible side of the product)
component is not involved in the service act and the customer’s presence and participation
are often required in the service delivery process. Therefore, contact elements may be
considered as critical factors which determine the customer’s perception of service

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organizations. The contact personnel are composed of all employees located at the front line
and who have direct contact with customers. (Avan & Zorlu,2017: 452)

3. Other Customers: In many service contexts, customers receive a service simultaneously

while other customers are being served. Therefore, ‘fellow customers’ are present in the
service environment and can affect the nature of the service outcome or process. In a service
setting, a feature of customer participation is the opportunity for customers to interact with
each other during service encounters. (Avan & Zorlu,2017: 453)

4. Internal system of the organization: The internal system of the organization -

alternatively named as governance structure- consists of service policies (rules and
regulations) and procedures that determine the way in which employees are able to offer
services. The invisible organisation and systems determine factors such as information forms
to be completed by customers, the number of employees working in the firm at any given
time, and the policies of the organization regarding countless decisions that may range from
the substitution of menu items to whether the firm accepts identification cards for senior
citizens discounts. (Avan & Zorlu,2017: 455)

SERVUCTION SYSTEM OF IVEAGH GARDEN HOTEL

Servicescape: The physical structure of the Iveagh Hotel provides the first point of contact
for customers. The interior decoration of the Iveagh Hotel is generally designed in an elegant,
modern, and traditional style. The lobby area is kept spacious to welcome and accommodate
guests comfortably. Comfortable seating areas are adorned with stylish lighting and simple
decor. Hotel rooms are typically decorated in a modern and comfortable style. They offer
comfortable beds, stylish furniture, large windows, functional workspaces, and a variety of
room options tailored to guests' preferences. The blue, yellow, and grey tones found in the
hotel's overall concept are also present in the rooms.

The section designated for meetings and events can accommodate up to 220 guests. This
section is categorized into 4 different areas: The Iveagh Suite, Elle's Suite, Suite 65 and
Weddings.

Iveagh Hotel offers four different types of rooms for guests to stay in: Deluxe Room,
Superior Room, Presidential Suite, and Suite Pods.

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Service Providers: The employees working at the Iveagh Hotel are trained to provide guests
with a warm welcome and to meet their needs. There is a series of online training sessions
that all staff members are required to complete. This process is particularly managed by the
human resources department. At the end of each training, employees are tested. These
trainings include topics such as first aid, how to act in difficult situations, customer
interaction, and employee health.

Other Customers: At the Iveagh Hotel, there can be multiple guests at the same time, and
the hotel is designed to accommodate different customer segments. For instance, besides the
restaurant section, the hotel also features four other sections with different concepts,
illustrating the hotel's consideration for various customer segments. Alongside tourists, some
guests visit for business purposes due to its proximity to many well-known companies. The
hotel's customer segmentation is determined as middle and upper-income guests, particularly
during the summer months when tourists, including tour groups, are highly preferred.

Internal system of the organization: Guests staying at the Iveagh Hotel can make
reservations directly with the hotel online or by phone. Additionally, they can make
reservations through travel agencies or online booking platforms. The Iveagh Garden Hotel
was opened to have the lowest carbon footprint possible compared to other hotels in Europe.
The hotel's sustainability project has been integrated into almost all of its units. Here are the
practices the hotel has implemented in its sustainability section.

How is the Iveagh Garden a Sustainable Hotel?

1. We harness power from the river Swan which flows directly underneath the hotel to
generate our heating and cooling systems.

2. The extractor fans in our kitchens are recycled back through the filtration systems to
assist with the cooling element of the extractor fans.

3. The entire hotel is fitted with LED low-power lighting and all the bedrooms in the hotel
use smart control lighting systems to ensure lighting is off in unoccupied areas.

4. The traditional power lifts originally in the building were removed and replaced with
smart low-energy lift systems.

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5. The previously existing plumbing and heating systems that ran on fossil fuel were
removed to make way for a new revolutionary system. There is now a natural energy plant
room in the hotel that uses electricity produced on-site in a gas turbine to eliminate electrical
energy loss from grid power. The turbine produces hot water which is supplied throughout
the hotel.

Other Customers: At the Iveagh Hotel, there can be multiple guests at the same time, and
the hotel is designed to accommodate different customer segments. For instance, besides the
restaurant section, the hotel also features four other sections with different concepts,
illustrating the hotel's consideration for various customer segments. Alongside tourists, some
guests visit for business purposes due to its proximity to many well-known companies. The
hotel's customer segmentation is determined as middle and upper-income guests, particularly
during the summer months when tourists, including tour groups, are highly preferred.

SERVICE RECOVERY

Service recovery is a concept that was introduced in the service management literature to help
firms manage service failures and complaints in a service-oriented way. The traditional way
of handling service- or goods-related failures is complaints handling, where customers who
have experienced problems are requested to make formal complaints. Such complaints are
analysed and handled by the firm usually following legal and administrative procedures.
Frequently it seems as if the objective of complaints handling is to make sure that, regardless
of who caused the failure, the firm does not have to compensate the customer unless
necessary. Complaints handling has a significant effect on customers’ perception of the
service orientation of a service firm or a manufacturer, and the complaints-handling approach
is inherently non-service-oriented. Service recovery is a process that identifies service
failures, effectively resolves customer problems, classifies their root cause(s), and yields data
that can be integrated with other measures of performance to assess and improve the service
system. (Grönroos, 2015: 141)

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SERVICE RECOVERY PROCESSES

Customer contact employees may spot problems and service failures and take action but, as
stated in the previous section, to make full use of the potential of successful service recovery
the firm should develop a recovery of the system.

1-)Calculate the costs of failures and mistakes. Customers who defect because they are
dissatisfied have to be replaced by new customers, and in addition, they often engage in
negative word of mouth. Acquiring new customers is always several times more expensive
than keeping existing customers. Negative word of mouth also has a damaging effect on the
image. This acquires new customers more difficult and expensive. Correcting mistakes and
recovering problematic situations adds costs that could have been avoided had the service
functioned well in the first place.[ Grönroos, 2015: 145]

2-) Solicit complaints. Most customers never tell a firm about problems with services or
goods that they have faced. They just disappear to a competitor. It is important to get
information about failures that occur, mistakes that are made, systems that do not function in
a service-oriented way, and other reasons for poor perceived quality and dissatisfaction.
Employees, especially those in contact with customers, should be able to monitor the service
processes for mistakes and service failures so that the firm realizes there is a problem, if
possible even before the customer does. When customers complain, they must be shown
respect and attention by the employee to whom they make the complaint. [Grönroos, 2015:
145]

3-) Identify recovery needs. Mistakes can happen and failures can occur almost anywhere.
However, by carefully analysing the service process, human resources, systems used in the
process and customers’ need for information and guidance, it is possible to spot areas with
high risk of failure. Situations, where one error can lead to a chain reaction (for example, a
delayed incoming flight), are particularly problematic. [Grönroos, 2015: 145]

4-) Recover quickly. An old rule of thumb says that disappointed customers tell 12 others
about their negative experiences, whereas satisfied customers tell much fewer about their
positive experiences. With the introduction of social media, these effects can be much more
dramatic today. [Grönroos, 2015: 145]

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5-) Train employees. Customer contact employees must understand why service failures need
to be attended to and recovered quickly, and they need to understand and appreciate why
they, in the front line, have a responsibility, first of all, for spotting problems, mistakes and
customers who seem to become disappointed with the service process or who do not
understand how to participate effectively in the process. [Grönroos, 2015: 145]

6-) Empower and enable customers to contact employees. Training gives employees a better
understanding of the situation and their central role in service recovery, and also the
knowledge and skills for doing the job. However, to handle dissatisfied and frustrated
customers, employees need authority to make decisions about what to do and how much to
compensate. [Grönroos, 2015: 145]

7-) Keep the customer informed. The customer should always be told that the failure or
mistake has been acknowledged and that the recovery process is underway. If a recovery
cannot be made on the spot and if the process takes time, customers must be kept informed
about its progress. [Grönroos, 2015: 145]

8-) Learn from mistakes. The firm must have a system for using service recovery experiences
in a productive way. Service failures, quality problems and other mistakes can often be traced
back to either a structural problem in some process in the organization or to employee or
management attitude.[ Grönroos, 2015: 146]

There are some reviews about the hotel on the Tripadvisor website, and there is also an
apology message from the relevant department to the guest.

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SERVICE RECOVERY STRATEGIES

What constitutes an effective service recovery has been the subject of some recent debate.
Bell and Zernke [I9871 proposed five ingredients for recovery:

Apology - a first-person apology rather than a corporate apology which also acknowledges
that a failure has occurred.

Urgent reinstatement - speed of action coupled with a 'gallant attempt' to put things right even
if it is not possible to correct the situation.

Empathy - a sincere expression of feeling for the customer's plight.

Symbolic atonement - Bell and Zemke used atonement to suggest token compensation rather
than broader forms of expiation: 'Atonement is the "It's on us", "Free drink, "No charge",
'.'Here is a coupon worth.. .".'

Follow-up - an after-recovery call to ascertain that 'things are OK now'.

Bell and Zemke were unsure as to whether follow-ups are necessary but suggested they may
provide a form of closure and feedback. (Johnston & Fern, 2006: 71)

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Bitner et al. [1990] in a study of 700 critical incidents found that it is not necessarily the
failure itself that leads to customer dissatisfaction, as most customers do accept that things
can go wrong. It is more likely to be the organisation's response (or lack of response) to a
failure that causes dissatisfaction [see also Feinberg et nl. 19901. They suggested that for a
successful recovery, an organisation's response should include the following four key
elements:

Acknowledgement - an acknowledgement of the problem

Explanation - an explanation of the reason for the failure

Apology - where appropriate

Compensation - such as a free ticket, meal or drink. (Johnston & Fern, 2006: 72)

SERVICE QUALITY OF HOTEL IVEAGH GARDEN

What is the service quality?

What do we mean when we speak of service quality? Since services are intangible, it is hard
to evaluate the quality of a service compared to a good. In addition, customers often
experience the servuction process, so a distinction needs to be drawn between the process of
service delivery and the actual output (or outcome) of the service. [Wirtz, J., & Lovelock, C.
2016]

A modern take on traditional luxury, the four-star Iveagh Garden Hotel is an urban oasis just
steps from Grafton Street. Opened in February 2018, this Dublin Hotel offers one of the
lowest carbon footprints of any Irish Hotel and is Europe's first fully sustainable hotel.
Located in the heart of this vibrant city, the Iveagh Garden Hotel offers one of the best
Dublin hotels near all major attractions. Retreat to one of our 145 luxurious rooms, and
unwind with a stroll through the Iveagh Gardens.

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Dimensions of Service Quality

How service quality can be measured using attribute-based models has been studied
extensively. In the mid-1980s. Berry and his colleague began to study service quality
determinants and how customers evaluate the quality of service based on the perceived
service quality concept. The 10 determinants were found to characterize customers’
perception of the service. One of the determinants, competence, is clearly is related to the
technical quality of the outcome, and another, credibility, is closely connected to the image
aspect of perceived quality. However, it is interesting to observe that the rest of the
determinants are more or less related to the process dimension of perceived quality. The
importance of the functional quality dimension is very much stressed by these findings. As a
result of a later study the 10 determinants of service quality were decreased to the
following five:
1. Tangibles. This determinant is related to the appeal of facilities, equipment and material
used by a service firm as well as to the appearance of service employees.
2. Reliability. This means that the service firm provides its customers with accurate service
the first time without making any mistakes and delivers what it has promised to do by the
time that has been agreed upon.
3. Responsiveness. This means that the employees of a service firm are willing to help
customers and respond to their requests as well as to inform customers when service will be
provided, and then give prompt service.
4. Assurance. This means that employees’ behaviour will give customers confidence in the
firm and that the firm makes customers feel safe. It also means that the employees are always
courteous and have the necessary knowledge to respond to customers’ questions.
5. Empathy. This means that the firm understands customers’ problems and performs in
their best interests as well as giving customers individual personal attention and having
convenient operating hours.[Wirtz, J., & Lovelock, C. 2016]

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Dimensions of Service Quality of Iveagh Garden Hotel
Analyzing Iveagh Garden Hotel according to the Dimensions of Service Quality can provide
insights into various aspects of its service delivery. The Dimensions of Service Quality, as
proposed by Parasuraman, Zeithaml, and Berry (1988), are Tangibles, Reliability,
Responsiveness, Assurance, and Empathy. Here's an analysis of Iveagh Garden Hotel based
on these dimensions.

1. Tangibles:
● The hotel provides guests with four distinct room choices. These include the Deluxe
Room, Superior Room, City Pods, and Presidential Suite.
● The comfort of guests has been prioritized in all rooms, and Complimentary Wi-Fi
and TV services are available as common amenities across all four room types.
● The interior architecture of the hotel has been designed considering modernity and
high standards.

2. Reliability

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 ● At Iveagh Garden Hotel we are all about doing things the clever way, which includes
our data protection policies. We value our customers, and so, want to keep your
personal data as secure as we can.
● The Hotel uses the GDPR (European General Data Protection Regulation ) policy
statement
● At Iveagh Garden Hotel we are committed to protecting your personal information
and respecting your privacy. It is your personal data and we respect that.
3. Responsiveness:
● The hotel's processes related to rooms are directly handled by the operations manager,
who also evaluates customer complaints.
● When customers have issues with their rooms, the supervisor directly interacts with
the customer, making solution-oriented decisions that prioritize customer satisfaction.
4. Assurance:
● The training process for newly hired staff at the hotel typically lasts from 1 to 1.5
months. No employee who has not completed the training program is allowed to
attend to customers on their own.
● Employees are selected based on experience, and those without experience in the
industry are not hired.

5. Empathy:
● The hotel takes customer complaints very seriously and maintains maximum customer
satisfaction by surveying the customers.
● In the hotel, especially in the restaurant section, in case of possible delays, the staff
goes the extra mile to satisfy the customers, attending to them personally and making
small gestures to please.

IMPORTANCE OF SERVICE QUALITY OF MANAGEMENT

● It boosts sales
● It saves marketing money
● It can attract quality employees
● It can lead to repeat business
● It strengthens the company’s brand
● It eliminates certain barriers to buying

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Dimensions of Service Quality

While we’re still on the subject of customer satisfaction, let’s take a look at still another
model that aids marketers in better understanding customer satisfaction: the Gap Model of
Service Quality(sometimes also known as the Customer Service Gap Model or the Five-Gap
Model), first proposed in 1985. The importance of this model is that it demonstrates that
customer satisfaction is essentially a function of perception. According to the model (see
Figure 11.11), there are five major gaps or potential inconsistencies organizations encounter
in seeking to meet customers’ expectations of the customer experience.

The gaps are:

● Gap 1—knowledge gap: the difference between customer expectations and what
managers think they expect
● Gap 2—policy gap: the difference between management’s understanding of the
customer’s needs and how they translate that understanding into service delivery
policies and standards for employees
● Gap 3—delivery gap: the difference between the experience specification and the
actual results of the service
● Gap 4—communication gap: the difference between the delivery of the customer
experience and what is communicated to the customer

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 ● Gap 5—customer gap: the difference between the customer’s expectations of the
service or experience and their perception of the experience

A SERVICE QUALITY MANAGEMENT PROGRAMME

In this chapter, we have discussed concepts and models of perceived service quality, in order
to develop an understanding of how service quality is formed and perceived by customers, as
well as an understanding of how important aspects of service quality can be managed. In the
present section, we will sum up these concepts and models in the form of a management-
oriented service quality management programme. This programme is intended to help
management implement a service strategy to respond to the challenges of the constantly
increasing service competition. If the organization has decided to pursue a service strategy,
the service quality management programme should, for managerial purposes, give adequate
guidance in what to do. Such a programme must, of course, be grounded in sufficient insight
about target customers’ everyday processes and goals, and about their needs and
expectations. The service quality management programme consists of seven subprogrammes.
These are;

1. Service concept development.

2. Customer expectations management programme.

3. Service outcome management programme.

4. Internal marketing programme.

5. Physical environment (servicescape) and physical resources management programme.

6. Information technology management programme.

7. Customer participation management programme.[ Grönroos, C. 2015]

CUSTOMER COMPLAINING BEHAVIOR

The first law of service quality and productivity might be: Do it right the first time. But we
can’t ignore the fact that failures continue to occur, sometimes for reasons outside the

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organization’s control such as the ice storm that caused the JetBlue incident in our opening
vignette. Many “moments of truth” in service encounters are vulnerable to breakdowns. Such
distinctive service characteristics as real-time performance, customer involvement, and
people as part of the product greatly increase the chance of service failures to occur. How
well a firm handles complaints and resolves problems frequently determines whether it builds
customer loyalty or watches its customers take their business elsewhere.[Wirtz, J., &
Lovelock, C. 2011]

In light of this information, Iveagh Garden Hotel takes customer complaints extremely
seriously, and due to their emphasis on customer satisfaction, any complaints are handled
directly by the operations manager or supervisor.

WHY DO CUSTOMERS COMPLAIN?

In general, studies of consumer complaining behaviour have identified four main purposes
for complaining:
1. Obtain restitution or compensation. Consumers often complain to recover some economic
loss by seeking a refund, compensation, and/or having the service performed again.
2. Vent their anger. Some customers complain to rebuild self-esteem and/or to vent their
anger and frustration. When service processes are bureaucratic and unreasonable, or when
employees are rude, deliberately intimidating, or apparently uncaring, the customers’ self-
esteem, self-worth, or sense of fairness can be negatively affected. They may become angry
and emotional.
3. Help to improve the service. When customers are highly involved with a service (e.g., at a
college, an alumni association, or their main banking connection), they give feedback to try
and contribute toward service improvements.
4. For altruistic reasons. Finally, some customers are motivated by altruistic reasons. They
want to spare other customers from experiencing the same shortcomings, and they may feel
bad if they fail to draw attention to a problem that will raise difficulties for others if it
remains uncorrected.
[Wirtz, J., & Lovelock, C. 2011]

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INCREASING THE SERVICE IMPACT IN CUSTOMER RELATIONSHIPS

Implementing a service strategy requires appropriate action at the operational level. Here one
should notice that a service strategy can be pursued by actions of many kinds. However, what
is often needed is a new way of thinking, i.e. adopting a new logic. Old rules and ways of
thinking may misguide management and leave opportunities unexploited. The service impact
on customer relationships can be increased in three ways:
1. Developing new services to offer to the customer.
2. Activating existing but hidden services or service elements in a business relationship.
3. Turning the goods component into a service element in the customer relationship.
[Grönroos, C. 2015]
In this case study service of Iveagh Garden Hotel in customer relationships;
1. The hotel implements various pricing policies at specific times to attract the attention of
customers.
2. Due to its emphasis on customer relations, the hotel provides employees with 1-1.5 months
of training to enhance their communication skills with customers.
3. The hotel empathises with customer complaints and has developed a solution-oriented
communication language.

Customer Satisfaction and Service Quality Are Prerequisites for

Loyalty
The foundation for true loyalty lies in customer satisfaction, for which service quality is a key
input. Highly satisfied or even delighted customers are more likely to become loyal apostles
of a firm, consolidate their buying with one supplier, and spread positive word of mouth.
Dissatisfaction, in contrast, drives customers away and is a key factor in switching behaviour.
Recent research has even demonstrated that increases in customer satisfaction lead to
increases in stock prices. The satisfaction-loyalty relationship can be divided into three main
zones: Defection, indifference, and affection ( Figure 12.8). The zone of defection occurs at
low satisfaction levels. Customers will switch unless switching costs are high or there are no
viable or convenient alternatives. Extremely dissatisfied customers can turn into “terrorists,”
providing an abundance of negative feedback about the service provider. The zone of
indifference is found at intermediate satisfaction levels. Here, customers are willing to switch
if they find a better alternative. Finally, the zone of affection is located at very high

17
satisfaction levels, where customers may have such high attitudinal loyalty that they do not
look for alternative service providers. Customers who praise the firm in public and refer
others to the firm are described as “apostles.” High satisfaction levels lead to improved future
business performance.[Wirtz, J., & Lovelock, C. 2011]

Customer satisfaction can vary from person to person. Below are a few different reviews of
the hotel taken from Tripadvisor.

Defection: I stayed in one of their cheaper rooms, the city pods and found mattress
surprisingly uncomfortable. Sort of like a camp mattress and you can feel the metal springs
when you’re lying down. There’s a very high-pitched buzzing in the basement too so you feel
like you have tinnitus! ( February 2024)

Indifference:The mattress needs to be replaced. The hotel is very pleasant and in an

excellent location. The room is a basement pod, which is ok, but doesn't provide enough
space to sit down. Very clean. Bar staff very friendly.(February 2024)
Affection: Iveagh Garden Hotel is both elegant and welcoming. The staff are charming. The
restaurant and bar were excellent and our meal especially good. The ambience was perfect.

18
The room was lovely, spacious, comfortable, and immaculate. The Iveagh Garden Hotel will
now be my first choice when I visit Dublin. (February 2024)

Service Marketing Mix

Service marketing mix refers to internal controllable variables of an organization which is
related together and decisions on any of them affect the others directly or indirectly
(Abidemi, Halim, & Alshuaibi, 2017). A service industry makes use of 7ps to change the
perception of customers towards the organization and gain consumer satisfaction which leads
to achieving organizational objectives there leading to profitability by the organization
(Mahmood & Khan, 2014)

Stated that the service marketing mix consists of 4P elements (product, price, place, and
promotion) plus other 3P variables (process, people, and physical evidence). Thus service
marketing mix variables are often referred to as 7P which includes: product, price, place,
promotion, process, people, and physical evidence (Lovelock, 2010:25).

According to Kotler and Armstrong (2015:75), 7P:

1) product is a combination of goods and services offered by a company to its target market.

2) price is the sum of money that must be paid by the customer in order to obtain the
product.

3) place includes activities of a company to provide product Access for its consumers.

4) promotion encompasses all methods by which a producer introduces its services to

consumers. Promotion can be executed through advertising, personal selling, sales promotion
and publicity.

5) people are personnel or human resources representing companies in delivering their

services to consumers.

6) process encompasses all activities consisting of procedures, work schedules, mechanisms,

activities, and routines, where services are created and delivered to consumers.

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7) physical evidence (environment) is the surrounding circumstances or atmosphere or a
physical environment in which a service is being delivered, service companies and consumers
interact to each other and all tangible components will facilitate the appearance or
communication of a particular service.

Source: Rafiq, M., & Ahmed, P. K. (1995). Using the 7Ps as a generic marketing mix: An
exploratory survey of UK and European marketing academics. Marketing Intelligence &
Planning, 13(9), 4–15.

Service Marketing Mix of Iveagh Garden Hotel

Product

Iveagh Garden Hotel offers multiple products/services to its customers.

Accommodation Service: The hotel provides four different room options to its customers.
These include Deluxe Room, Superior Room, City Pods, and Presidential Suite.

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Elle’s Bistro Bar: The restaurant located within the hotel offers a pleasant environment for
both hotel guests and external customers. While the restaurant's menu is not extensive, it
features a selection of classic flavours. The drink menu includes a variety of brands and
classic cocktails. Special menus and cocktails are offered for special occasions (New Year,
Valentine's Day).

Iveagh Suite: There is a private event room on the lower floor of the hotel. This room is used
for events such as weddings, birthdays, special invitations, and company meetings.

Price

Accommodation: In the hotel, which offers 4 different room options, room prices are
generally close to each other. Only the Presidential Suite is significantly more expensive
compared to other rooms. Breakfast is not included in the room price for all room types.
When breakfast is included, the room price increases. The 1-night price table for rooms is
provided below.

https://www.booking.com/hotel/ie/iveagh-garden.en

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Elle’s Bistro Bar: The restaurant's food and beverage prices are on an average level
compared to other restaurants in the city. They offer a ready-made package for special day
menus. Special offers include a 5-course meal and a welcome drink. The prices for these
package menus usually range between 70-80 euros.

Iveagh Suite: In the pricing of the Iveagh Suite, initially, a price is obtained only for the
room, and this price includes the use of all technological devices in the room, as well as
decoration and lighting services. If the event includes a dinner, a special menu is prepared by
discussing with the customer for that night, and per-person pricing (3 courses per person) is
applied. These prices are obtained before the event, and the bar tab opened that night is left to
the organizer's preference.

Promotion

The hotel offers various promotions for guests staying at the hotel. Especially notable is the
"Winter Getaway" campaign designed for the slow winter months, particularly after
Christmas. Within the scope of this campaign, the hotel offers its guests a package including
1-night accommodation, full Irish breakfast, late check-out, an arrival drink at Elle’s Bistro
Bar, and a 2-course dinner for 229 euros. Additionally, the hotel provides a 10% discount for
payments made directly to the hotel through its website. The hotel's website has a voucher
page, and the voucher services offered by the hotel include:

Iveagh Garden Gift Card: Gift cards start from a minimum of 50 euros, valid at Elle’s Bistro
Bar.

Whiskey Tasting & Charcuterie For Two:

Afternoon Tea: The most preferred campaign on the hotel's website is the Afternoon Tea.
Particularly popular among female customers looking to socialize with large families and
friends, this lunch includes handmade sandwiches, special herbal teas, and coffee in the hotel
lobby.

Moreover, the hotel actively utilizes its social media accounts.

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Physical evidence

Iveagh Garden Hotel, situated in the city centre of Dublin, boasts a historic building with a
modern interior design. The hotel features a large library in the lobby and at the entrance of
the restaurant, contributing to a comfortable home-like atmosphere. The cosy and spacious
seating and fireplace in the lobby provide customers with a sense of comfort and warmth. The
terrace inside Elle’s Bistro Bar, adorned with flowers, is particularly favoured by customers
during the summer months. Even in winter, customers want to take photos here. It is
especially preferred for ceremonies during summer weddings. The dimming of the restaurant
lights in the evening and the candles placed on each table create a romantic ambience,
evoking an intimate atmosphere. For guests staying in the rooms, there is a 24/7 food and
technical support service available.

People

Hotel customers are generally tourists. Particularly due to the hotel's central location, tourists
prefer the hotel. As a 4-star luxury hotel, many customers prefer to stay at the hotel to
celebrate special occasions. Elle’s Bistro Bar is especially suitable for private company
events, special celebrations, and travel groups. The warm communication of the restaurant
staff with customers, the celebratory efforts of the staff on special occasions, and their
helpfulness are crucial factors in ensuring customer satisfaction. Satisfied customers often
choose the hotel again and recommend it to acquaintances.

Place

Iveagh Garden's location in Dublin city centre, close to many museums, parks, and tourist
areas, makes it a preferred choice for tourists. The street where the hotel is located has many
nightclubs and is also close to traditional Irish pubs, providing great convenience for
customers. Especially, guests staying at the hotel can find numerous alternatives for
entertainment nearby after having dinner at the hotel's restaurant. This further emphasizes the
significance of the hotel's location for both existing and potential customers.

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Process

Accommodation Process

The reception, located in the entrance section of the hotel, is the area where the initial contact
with the guest is made, where check-in and check-out procedures are conducted, and various
guest requests are addressed throughout their stay. The responsibilities of receptionists in this
section include:

➔ Conducting room sales and check-in processes.

➔ Applying courtesy and etiquette rules when welcoming guests.
➔ Performing procedures related to checking the reservation status of guests.
➔ Implementing the steps of entry records based on the type of reservation.
➔ Taking necessary actions if rooms cannot be assigned to reserved guests.
➔ Evaluating the suitability of room requests for guests without reservations.
➔ Executing room sales procedures as specified in the standards.
➔ Organizing the accommodation document according to the specified steps.
➔ Carrying out procedures related to prepayment.
➔ Providing the guests with necessary information about the establishment before
escorting them to the room.
➔ Escorting the guest to the room in an appropriate manner.
➔ Implementing procedures related to entering guest information into the system.
➔ Following necessary steps in group check-in procedures.

The operations department, which tracks all processes of guests staying at the hotel from the
first day to the last, manages the necessary teams behind the scenes to improve these
processes.

➔ Utilizing effective communication techniques when accepting guest requests and

complaints.
➔ Displaying necessary behaviours based on the characteristics of guest types.
➔ Applying the requirements of quality standards in tracking and resolving guest
complaints and issues.
➔ Following the necessary steps in receiving and conveying guest messages.
➔ Following the required steps in room change requests.

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 ➔ Implementing the steps in handling guest requests for changes in check-out dates and
times.
➔ Monitoring the resolution process of reported technical faults.
➔ Following the necessary steps in credit card transactions.
➔ Efficiently utilizing communication and information technologies in the front office.

Elle’s Bar&Bistro Process

Hosting Processes

➔ Processes in the restaurant begin with the interaction between hosts and customers.
➔ Hosts are responsible for taking reservations, keeping track of them, and seating
customers at the most appropriate table in the restaurant.
➔ They also monitor the meal order processes of hotel guests.
➔ They inform floor staff about special reservations (birthdays, anniversaries).
➔ They follow the menu change processes and arrange menus at the required hours
(lunch, dinner menu change time).

Floor Staff Processes

➔ Floor staff prepares the restaurant for the day and, if there is a special event,
according to the desired arrangement before customers arrive.
➔ There are two different teams for morning and evening in the restaurant. The table
layout and decorations change between morning and evening shifts.
➔ After the customer sits at the table, the floor staff monitors all the processes the
customer goes through in the restaurant.
➔ The floor staff first takes the order, checking for any allergens. In case of allergens,
they inform the kitchen and bar.
➔ At certain intervals during the customer's stay in the restaurant, the floor staff
measures customer satisfaction. In case of dissatisfaction, they immediately inform
the higher-ups.
➔ They track payments and ensure that customers leave the restaurant satisfied at the
end of the day.

Kitchen Processes

➔ The kitchen team tracks stocks on a daily basis.

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 ➔ There are two kitchens in the restaurant: one is the main kitchen where meals reach
the customers, and the other is a large kitchen where preparations are made.
➔ Initial preparations for menu items are made in the large kitchen, and the final
cooking process takes place in the main kitchen before being delivered to the
customer.
➔ After customers finish their meal, all the utensils are taken back to the large kitchen
for cleaning.

Bar Processes

➔ Bar employees are mainly responsible for the cleanliness of the bar and stocks.
➔ They monitor stocks daily and are responsible for the quality of especially fresh
vegetables.
➔ The bar staff receives the drink order from the customer and prepares it as quickly as
possible, delivering it to the floor staff.

CUSTOMER MANAGEMENT IN A SERVICE CONTEXT: THE SERVICE

MARKETING TRIANGLE

For a service business, the scope and content of marketing become more complicated. The
notion of a pre-produced product with features that customers are looking for is too limited to
be useful here. Also, in the context of business-to-business marketing, the traditional product
construct is too restrictive, because a customer relationship often includes many more
elements than physical goods, normally various types of service processes, including hidden
services. In Figure 2.3, the service marketing triangle, 16 marketing in a service context is
illustrated. As can be seen, compared to the goods marketing triangle in Figure 2.2 most
elements are different. Customers’ willingness to buy a service and satisfaction with it is due
to how well the service supports their value creation, which is indicated by the circle in the
centre of the triangle.[Grönroos, C.2015]

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ANALYSIS OF THE SERVICE MARKETING TRIANGLE THROUGH IVEAGH
GARDEN HOTEL

Iveagh Garden Hotel aims to provide its guests with a comfortable and memorable lodging
experience. In this part of our presentation, we will examine how Iveagh Garden Hotel
implements the service marketing triangle and how this application contributes to the success
of the hotel.

Hotel: Iveagh Garden Hotel has a corporate culture that focuses on providing high-quality
service to guests and maximizing guest satisfaction. The hotel continuously strives to develop
new services and amenities to meet the needs and expectations of guests.

Customer: Iveagh Garden Hotel offers a wide range of accommodation options catering to
guests with different profiles. The hotel organizes various programs and promotions to
increase guest satisfaction and loyalty.

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Employee: Iveagh Garden Hotel places great importance on the training and motivation of its
employees to provide excellent service to guests. The hotel regularly provides in-service
training to its employees and encourages them to communicate effectively with guests.

Implementation of Iveagh Garden Hotel's Service Marketing Triangle:

Hotel-Customer: The hotel uses surveys and comment cards to gather feedback from guests.
This feedback is utilized to improve hotel services and amenities.
Hotel-Employee: The hotel provides training to employees on tasks such as cleaning guest
rooms, serving food and beverages, and interacting with guests.
Customer-Employee: The hotel encourages employees to communicate with guests in a
friendly and courteous manner. The hotel also promotes tipping by guests to employees.

Benefits of Iveagh Garden Hotel's Service Marketing Triangle Implementation:

Increased customer satisfaction: Guests are pleased with the high-quality service provided
by the hotel and the attention shown by employees.
Increased customer loyalty: Guests tend to choose Iveagh Garden Hotel again and
recommend it to others.
Enhanced reputation: The hotel has earned a reputable status in Dublin due to excellent
customer service.
Stand out in competition: The hotel has successfully differentiated itself from competitors
and stands out in the market.

GOOGLE: 4 / 4

TRIPADVISOR: 4.5 / 5 + Traveller’s Choice 2023 Award

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BOOKING: 4 / 4

What Could be Better?

- Iveagh Hotel could conduct hotel guest service excellence courses for employees:
This will help them communicate better with guests and deliver a better guest
experience.
- Iveagh Hotel could enable guests to obtain information about hotels and services and
make reservations via their mobile devices.
- Iveagh Hotel could interact with guests using in-hotel messaging and chat
applications.

It is evident that Iveagh Garden Hotel effectively implements the service marketing
triangle, and this implementation significantly contributes to the success of the hotel.
By continuing to provide excellent service to guests and maximizing guest
satisfaction, the hotel can maintain its leadership position in the market.

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CONCLUSION

The rapidly increasing technological advancements and intensifying competitive conditions

worldwide are increasingly challenging the working conditions of companies. Service
marketing stands out in this competition. It is observed that service businesses are the areas
where the most intense relationships with customers occur in target markets. This is because
service businesses not only meet the desires and needs of consumers but also conduct
purchasing activities through services. This study aims to measure the effectiveness of the
service marketing steps of Iveagh Garden Hotel. Focusing on key topics such as service
quality, marketing mix, servuction system, marketing triangle, service recovery processes,
and mechanisms for ensuring customer satisfaction, we comprehensively examined the
hotel's marketing efforts. We can evaluate that Iveagh Garden Hotel's strategies are not only
focused on service quality but also successful in ensuring customer satisfaction, service
recovery, marketing mix-oriented, and from the perspective of the marketing triangle.

30
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