“it all starts with the guest”
QualityService Management
CHAPTER 1: THE BASICS OF WOW! THE
GUEST KNOWS BEST
GUESTOLOGY
- originated by bruce laval of the walt disney
company
- treat customers like guests and manage the
organization from the guest's point of view.
- customer-guests are, to the extent possible,
- studied scientifically (the -ology in
guestology)
- goal is to create and sustain an organization
that can respond to the customer’s needs
and still make a profit look systematically at
the guest experience from the customer’s or
guest’s point of view
- involves systematically determining what
those factors are and modeling them for
study
- measuring their impact on the guest
experience
- testing various strategies that might improve
the quality of that experience
- providing the combination of factors or
elements that attracts guests and keeps
them coming back.
HOSPITALITY GUEST EXPERIENCE ARE
DETERMINED
● demographics
● wants
● needs
● expectations
CAREFULLY OBSERVED
● demographics characteristics
3 ASPECTS OF GUEST EXPERIENCE
- these aspects or elements are carefully
woven together to give guests what they
want and expect
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SERVICE PRODUCT - SERVICE SETTING -
SERVICE DELIVERY
GUEST
- seeks to understand and plan for these
expectations before guests ever enter the
service setting, so that everything is ready
for each customer to have a successful and
enjoyable experience.
MEETING CUSTOMER EXPECTATIONS
- customers come to a service provider
- first-time guests may have general
expectations.
- repeat guests may have more specific
expectations based on past experience.
SERVING INTERNAL CUSTOMERS
- The hospitality organization has within itself
many internal customers.
- persons and units that depend on each
other and "serve" each other.
SMART HOSPITALITY ORGANIZATIONS
- know employees deserve the same care
and consideration that the organization
encourages employees to extend to guests.
- extending guest treatment to employees is
so important to organizational success
SOUTHWEST AIRLINES MISSION STATEMENT
"employees will be provided the same concern,
respect, and caring attitude within the
organization that they are expected to share
externally with every southwest customer."
COMPETITION INCREASING
- new hospitality organizations spring up
every day.
 - the competition for guest loyalty and dollars
is intense and will grow more so in the
future.
- practice the principles of guestology.
- if they don't provide the experience their
guests expect, someone else will.
SERVICE
- The intangible part of a transaction
relationship between a provider organization
and its customer, client, or guest.
- Another way to think of service is strictly
from the customer's point of view rather
than the organization's.
RICHARD S. LYTLE & COLLEAGUES:
- “to be of service literally means to
attend to someone's needs. it involves
helping, giving, sharing, and meeting
needs."
- “service is always rendered ultimately to
people (customers) and/or their property.
SERVICE IS RENDERED THROUGH:
● directly via person-to-person service
encounters
● directly via person-to-property service
encounters
● indirectly via high-tech service devices
SERVICE PRODUCT
- refers to the entire bundle of tangibles and
intangibles in a transaction with a significant
service component.
UNDERSTANDING THE GUEST
- Each guest brings to the guest experience a
different bundle of needs, wants, and
expectations.
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THE GUEST EXPERIENCE
- it is the sum total of the experience that the
guest has with the service provider on a
given occasion or set of occasions.
PRODUCT, SETTING & DELIVERY
Guest Experience = Service product + Service
setting + Service delivery system
THE SERVICE PRODUCT
- Service package or service/product mix
- The basic product can be relatively tangible,
like a hotel room, or relatively intangible, like
a rock concert.
THE SERVICE SETTING
- Environment in which the experience takes
place.
THE SERVICE-DELIVERY SYSTEM
- Human components
- Physical production process
SERVICE ENCOUNTERS AND MOMENTS OF
TRUTH
- person-to-person interaction or series of
interactions between the customer and the
person delivering the service-in brief.
- Server or other organizational
representative is typically present and
attempting to provide service
THE NATURE OF SERVICES
MANUFACTURED PRODUCTS
- Tend to be tangible; produced, shipped, and
purchased now for consumption later; and
lacking in much if any interaction between
the manufacturer and the consumer.
SERVICES
 - tend to be intangible, purchased (if not Service Electric/Gas Answering
always paid for) first, then simultaneously provider utilities, services,
produced and consumed, and accompanied not present ATM, Vending ATM, TV
by considerable provider-customer machines security
interaction. services
- Services Are Partly or Wholly Intangible
Service Hospitality, Lawn service,
- Because part or all of the service product is provider Medical, Watch
intangible, it is impossible to assess the present Professional repair
product's quality or value accurately or
objectively, to inventory it, or to repair it.

SERVICES ARE PARTLY OR WHOLLY
INTANGIBLE
- This intangibility characteristic is that every
guest experience is unique.
- The less tangible the services provided, the
more likely each guest will define the
experience differently.
SERVICES ARE CONSUMED AT THE MOMENT
OR DURING THE PERIOD OF PRODUCTION OR
DELIVERY
- Organizational systems must be carefully
designed to ensure the service is reliably
produced so that each guest has a
high-quality experience nearly equal to that
experienced by every other guest.
SERVICES USUALLY REQUIRE INTERACTION
BETWEEN THE SERVICE PROVIDER AND THE
CUSTOMER, CLIENT, OR GUEST
- If the provider is not going to be present in
the encounter, the service system must be
foolproof for all types of customers who will
use it.
PART 2 OF CHAPTER 1
GUEST EXPECTATIONS
- The organizational responsibility for creating
guest expectations
usually lies with the marketing
Department.
- Most hospitality organizations try to provide
their guests with accurate information ahead
of time so these customers come to the
experience with expectations that the
organization can meet or exceed.
MEETING EXPECTATIONS
- Operations side of the organization
- lies here is the major responsibility for
fulfilling the expectations created by the
marketing department and by the past
experiences of repeat guests.

INTERACTION RELATIONSHIPS BETWEEN

CUSTOMER/GUEST/CLIENT AND SERVICE
PROVIDER

SERVICE ORGANIZATIONS AND CUSTOMER

CUSTOMER CUSTOMER
PRESENT NOT SATISFACTION
PRESENT • Difficult but not impossible
• Determine key performance indicators

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• Set Targets – SMART goals • Change its service product and/or service delivery
• Make teams system
• Analyze them on weekly basis • estimate guest expectations accurately and then
• Standardize meet
• Sustain or exceed them
• Spend extra time and money to ensure that the
experience of each guest--first time and
repeater--not
only matches but exceeds that guest's expectations
• Do Not Provide More Hospitality Than Guests
Want

“Listen to your customers. They’ll tell you what

to do.”

BERRY’S TEN COMPLAINTS

They can help us arrive at a still general but slightly
CATEGORIES OF CUSTOMERS
more specific set of guest expectations
● Angry customers
● Demanding customers
● Passive Customers GUEST COMPLAINT GUEST
EXPECTATIONS
DIFFERENCE BETWEEN: Lying, dishonesty, To be told the truth and
● Good service unfairness treated fairly
● Bad service
● Excellent service Harsh, disrespectful To be treated with
treatment by respect
employees
GOOD CUSTOMER SERVICE
- Good service is when the customer gets Carelessness, To receive careful,
treatment that meets his/her expectations. mistakes, broken reliable service
promises
BAD CUSTOMER SERVICE Employees without the To receive prompt
- Bad Service is when customer gets desire or authority solutions to problems
treatment which is less than his/her to solve problems
expectations.
Waiting in line because To wait as short a time
some service as possible
EXCELLENT CUSTOMER SERVICE lanes or counters are
- When the customer gets a little more than closed
what he/she expected, Good Service
Impersonal service To receive personal
becomes Excellent Service. attention and genuine
interest from service
STRATEGIES TO MEET GUEST EXPECTATIONS employees
• Change its marketing strategy
• Create different guest expectations Inadequate To be kept informed

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 exceed expectations to deliver wow to the level of
communication after about recovery efforts
problems after reporting guest delight and prevent failures
arise problems or service
failures - It is often used to serve as a reminder not of
how much it costs the organization to
Employees unwilling to To receive assistance
provide service quality at a high level but of
make extra effort or rendered willingly by
who seem annoyed by service employees how little it costs compared to the cost of
requests for assistance not providing quality.

Employees who don't To receive accurate WHO DEFINES QUALITY AND VALUE?
know what's happening answers from service
employees to common - Service is intangible and guest expectations
questions are variable -no objective determination of
quality level (and therefore of value) can be
Employees who put To have their interests made.
their own interests first, come first - Only the guest can define quality and value
conduct personal
- To meet or exceed the expectations of all
business, or chat with
each the different types of guests with their
other while the different needs, wants, experiences, and
customers wait moods is the fundamental and most exciting
challenge of a hospitality organization.
QUALITY, VALUE AND COST
IMPORTANCE OF GUESTOLOGY
Qe = Qed - Qee (QUALITY) - Can be used to study and understand any
situation in which people are served in
- Quality of the guest experience, Qe is equal some way
to the quality of the experience as delivered,
Qed, minus the quality expected, Qee. TAKEAWAYS/ LESSONS LEARNED:
- Qe = Qed (0) – Qee (0): Average or 1. Treat each customer like a guest, and always
Normal start with the guest.
LESSONS LEARNED
Ve = Qe/all costs (VALUE) 2. Your guest defines the value and the quality of
your service, so you had
- The value of the guest experience (Ve) is
better know what your guest wants.
equal to the quality of the experience (Qe)
3. Ask, ask, ask your guests.
as "calculated" in the first equation divided
4. Provide memorable experiences that exceed
by the costs of all kinds to the guest of
guest expectations when
obtaining the experience
possible, but know when enough is enough; deliver
- Low quality and low cost, and high quality
more than the guest
and high cost, satisfy the guest about the
expects, but not more than the guest wants.
same, because they are a good match for
5. Manage all three parts of the guest experience:
the guest's expectations.
the service product, the
service environment, and the service delivery
QUALITY
system (both the
processes and the people).

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6. The less tangible the guest experience, the more CUSTOMERS INPUTS ALLOWS MANAGERS
important are TO:
the frontline people delivering the service to the • Align measures to customer expectations
guest’s • Allocate resources and reevaluate priorities
perception of quality and value. • Adopt new policies and practices
7. You may under-promise, but always try to
over-deliver. INFORMATION
8. The cost of providing quality is low compared to 1. Surveys
the potential 2. Focus Group
cost of not providing quality. 3. In- depth personal interview
9. Service product + service environment + service 4. Ethnographic studies
delivery system =
guest experience THREE GENERIC STRATEGIES
10. Experiences that evoke a guest’s emotions are
more memorable. COST LEADERSHIP
- Aims to be a low cost producer/ low price
CHAPTER 2: producer
MEETING THE GUEST EXPECTATIONS
THROUGH PLANNING DIFFERENTIATION
- Differentiate product/service from
G - Great and competitors
U - unique
E - experience FOCUS
S - satisfaction and - Can fill a particular niche/need
T - trust

KNOWING YOUR CUSTOMERS THROUGH

CHANGES IN TIMES:
• People change
• Their needs and expectations change
• The competition changes
• The environment changes
• So must the hospitality organization

STRATEGY
- A method or plan chosen to bring about a
desired future, such as achievement of a
goal or solution to a problem.
- The art and science of planning and
marshalling resources for their most efficient
and effective use.
CUSTOMER SATISFACTION STRATEGIES
COST LEADERSHIP
- Designed to produce or deliver goods and
service either at lowest cost
- Feature that are acceptable by consumers.
- Aiming to become lowest cost producer.
- Targets a broad market
- The firm can compete with every other
industry and earn higher unit profit

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 - May decrease the value of the experience
to guests and drive them to competitors
DIFFERENTIATION
- Offers Unique Attributes
- Different products better than their rival
- Value added uniqueness= premium price
- Based on product image
- Requires research and strong marketing
- The Ice Hotel in Jukkasjärvi, Sweden
- A hotel constructed each year out of snow
and ice, featuring reindeer skin beds, an ice
bar, and magnificent ice sculptures in the
lobby
- The Nickelodeon Suites Resort at Lake
Buena Vista, Florida
- Focusing on families with children offering
suites themed on Nickelodeon’s popular
children’s characters
- It offers a Nick After Dark program, which is
an interactive kids-only dinner show with a
slime experience
- A high-quality brand image McDonald’s,
Disney, or Marriott to gain acceptance for
anything new it brings to the marketplace.
- Customers will usually be willing to give the
new product or
service a try on the basis of the
brand’s reputation
SERVICE DIFFERENTIATION
- When physical product cannot be
easily differentiated
- Add value to services and
improve quality
FOCUS STRATEGY
- Concentrates on a narrow segment and
within that segment attempts to achieve
either cost advantage of differentiation.
- Enjoys high degree of customer loyalty and
this discourages other firms from competing
directly.
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THE NICHE TOUR INDUSTRY
- Specialty tours focused on people who want
to combine a tour experience with such
activities as bicycling; walking; volunteering;
golfing; sampling wines, cuisines, pub
beers;
- Associating only with a specific group of
people, like a university’s alumni, families,
or gays; or exploring a specific culture,
ecology, or heritage.
- The Society for Accessible Travel &
Hospitality reports organizations that have
designed special tours for the disabled,
such as the walking tour for people with
visual impairments offered by Waymark
Holidays, a UK walking tour company
COMBINING STRATEGIES
- An organization can seek to differentiate its
product from all others in the market
(Strategy 2) by positioning the product in
people’s minds as the best value for the
lowest cost (Strategy 1).
- Combination of strategies requires the
organization to use both effective marketing
techniques that reach this best-value,
lowest- cost market segment and operating
efficiencies that allow it to make money at
the low price.
THE HOSPITALITY PLANNING CYCLE
• Walt Disney – theme parks
• Banks – debit cards
• Phone Co’s – text, call, pictures, email,
etc.
• Hospitality org. – need for websites
ASSESSING ENVIRONMENT-OVERALL
STRATEGIC PLANNING PROCESS ENVIRONMENT
• Assessment – internal & external • Economy
• Figuring what to do – strategies and • Society and Demographics
action plan • Ecology
• Politics
• Technology

STRATEGIC PLANNING CONSIDERS THREE

ELEMENTS:
1. External environment with its
ASSESSING ENVIRONMENT-OPERATING
opportunities and threats
ENVIRONMENT
2. Internal organization with its strengths and
• Competitive position
weaknesses
• Customer profiles and
3. Relationship of these elements to the statements
Market changes
of organizational vision and mission
• Supplier relationships
ASSESSING THE ENVIRONMENT
ASSESSING THE ORGANIZATION
- Organization carefully studies the
ITSELF-INTERNAL AUDIT
opportunities and threats the future holds for
- Identifies its central strengths, frequently
both it and its industry
termed its core competencies - bundle of
3 categories of factors that should be included
skills and technologies that gives the
in an environmental assessment:
organization an important difference in
• those in the overall environment,
providing customer benefits and perceived
• the industry environment,
value(Hamel and Prahalad)
• the company’s operating environment
- Assessing the future depends on a chosen
CORE COMPETENCIES
forecasting process:
• Ford – make cars
QUANTITATIVE FORECASTING
• Marriot – manage lodging facilities
- Tools include the powerful tools of statistical • UST – produce quality graduates
forecasting – objective ASSESSING THE ORGANIZATION
QUALITATIVE FORECASTING ITSELF-INTERNAL ASSETS
- Tools include scenario building, the Delphi - Internal audit includes an assessment of all
technique, and pure creative guesswork - the organization’s internal assets
subjective

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 - Reputation, a pool of human capital (its
employees), managerial capabilities,
material resources, and competitive
advantages based on its technology.
VISION AND MISSION STATEMENTS
- Mission statement articulates the
organization’s purpose, the reason for which
it was founded and for which it continues to
exist.
- defines the path to the vision
- The mission statement is a guide to defining
the how, what, who, and where for the
organization’s overall service strategy
A typical mission statement will include at a
minimum the following three elements:
1. What you do (What is the product or service you
are providing to the customer?)
2. Who you do it for (Who is the targeted
customer?)
3. How or where you do it (Where is the product or
service going to be provided to the targeted
customers? Place, niche or market segment?)
DEVELOPING SERVICE STRATEGIES
- Provides guidance in how to make every
organizational decision, from capital
budgeting to handling a customer complaint
- Defining and creating the service strategy
involves the voice, ideas, and enthusiasm of
its many stakeholders
- Define its market’s key drivers, craft its
service product to meet that market’s
needs, create the appropriate service
environment, and design the service
systems to reach the target market.
THE EXCELLENT SERVICE
STRATEGY-BERRY’S FOUR COMPONENT OF
EXCELLENT SERVICE
1. First, the excellent strategy emphasizes quality
2. Second, an excellent service strategy
emphasizes value
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3. The third characteristic of an excellent service
strategy is that it focuses the entire organizational
effort on service.
4. Finally, the service strategy should foster among
employees a sense of
genuine achievement
ACTION PLANS
- can be developed because the organization
now has a clear idea of who it wants to
serve, what it wants to serve, where the
market for that service is, where the
company wants to go, and how it intends to
get there
- Represent the leadership’s decisions on
how to best implement the service strategy
in specific terms that will motivate and guide
the rest of the organization’s members
toward accomplishing the overall service
strategy and organizational mission
- Plans lay out the specifics of how the
organization will operate, what everyone
needs to do in the next time period, usually
a year
KEY ACTION PLAN
• Management,
• Staffing,
• Capacity utilization,
• Finance, and
• Marketing
TYPES OF CAPACITY UTILIZATION ACTION
PLANS
THE DESIGN DAY
- A basic problem for many hospitality
organizations is that demand is uncertain,
and capacity is fixed.
- An important concept in capacity planning
for hospitality organizations is the design
day.
- The idea of a design day is to decide which
day of the year to consider when
 determining the design capacity of an
attraction or facility.
YIELD MANAGEMENT
- A capacity-management concept that has
gained substantial favor in the airline,
lodging, restaurant, spa, cruise line, and
convention industries is yield management
(YM)— managing the sale of units of
capacity to maximize the profitability of that
capacity.
- Also called revenue management, yield
management involves selling the right
capacity to the right customer at the most
advantageous price, to maximize both
capacity use and revenue.
ACTION PLANS AS AN INTEGRATED WHOLE
- All action plans need to be considered as a
whole and individually. No marketing plan or
capacity utilization plan, for example, should
be set without
also taking into account the
financial budgeting plan.
TAKEAWAYS/ LESSONS LEARNED:
1. Strategy starts with the guest. Know what key
factors drive the
guest’s determination of quality and value.
2. Try to understand the future environment and
what it might do to
you and your future guests.
3. Use appropriate, powerful forecasting tools, but
don’t let them
replace managerial judgment.
4. Know your core competencies, why they are
your core, and why
you are competent in them.
5. Know which core competencies you need to
build for the future.
6. Use the organization’s vision to define your
mission.
7. Prepare for the unexpected.
8. Involve employees in planning.
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9. Compete on value, not on price.
10. Your employees represent the one competitive
advantage that
your competitors can’t easily duplicate.
CHAPTER 3:
SETTING THE SCENE FOR GUEST
EXPERIENCE
CREATING THE “SHOW”
- Refers to everyone and everything that
interfaces with guests
- Walt Disney originated the idea that a guest
experience can be unified and enhanced if it
is based on a theme.
- Provide guests with extraordinary
experiences
- Add quality and value to the guest
experience
- For an organization offering such an
intangible feeling as its “product,” the
service setting is critical to success
THEMES CREATE FANTASY
- Using the physical environment and other
visual cues to create a show as part of its
service experience.
- Create sense of fantasy through “theming”.
- Value of creating a unique and memorable
setting enhances and contributes to the total
guest experience.
- The organization must provide a service
setting consistent with the guest’s
expectations for the overall guest
experience.
- Physical setting—building design, layout of
physical objects, lighting, colors, equipment,
signs, employee uniforms, smells, sounds,
materials—must complement and support
each other and give a feeling of integrated
design
- To maintain the illusion of fantasy in a
themed service setting, the experience, as
 is true of any good story, must be controlled
and focused.
- Architecture, sights and sounds play a
crucial role in a themed setting.
THEME NOT TO THEME
THEME
- Effectively tie all the elements of the service
experience together.
- A way to add value to the guest experience,
if used effectively by enhancing it
NOT TO THEME
- May limit the appeal of the service offering
- Limits the sort of new ventures of service
products that a company can provide,
because any new elements must remain
consistent with the theme
“THEMING CONTRIBUTES TO MAINTENANCE
OF THE FANTASY”
- Enhances visual stimulation
- Can create an emotional connection with
the experience.
- Theming is an opportunity for the
organization to add wow to the experience,
by providing more than guests expect.
FIVE STAR RESTAURANT
SETTING
- is designed to send signals or cues to its
guests that this is a place of consistently
high quality.
- It enhances and contributes to the total
guest experience.
- Memorable part is intended to be the
world-class meal and the way it is served.
- First impression created by the physical
environment sets up the guest’s
expectations for the great meal that follows.
- Restaurants and many other organizations
within and outside the hospitality industry
have created a service setting through
theming
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- They realize that blending the sights,
sounds, and even the tastes and smells of
the service setting to fit in with an overall
theme can enhance the guest’s experience
and make it more memorable
IMPORTANCE OF SERVICE ENVIRONMENT:
GUEST EXPECTATIONS
- The environment influences the guest’s
expectations even before the service is
delivered.
- Guests do not view the environment
objectively - if the outside of the restaurant
is dirty, guests will enter with negative
expectations.
- If the restaurant does not care enough to
clean up outside its building, the guest may
conclude that it does not clean up its kitchen
either and probably does not care about
how it prepares the meal.
- Many guests evaluate a restaurant by using
the rest room test, to see how much the
restaurant cares about cleanliness
GUEST MOOD
- The environment sets and maintains the
mood after the guest begins the guest
experience
- Once the guest enters the Magic Kingdom,
the entire focus is on establishing the
fantasy and maintaining the “magic.”
- To use the environment to set the mood,
Disney spends considerable money on
ensuring that the park grounds are clean,
the lawns carefully manicured, and the
flowers always in bloom
- The company has learned through studies
of guests that people associate clean and
orderly with safe and high in quality
EMPLOYEE SATISFACTION
- The environment should be supportive of
and compatible with the employee’s
experience as well.
 - A well-designed environment can promote
employee satisfaction, which some argue is
highly correlated with guest satisfaction.
THE FUNCTIONAL VALUE OF THE SETTING
- The guest relies on the hospitality
organization to create an environment that
is safe and easy to use and understand
- Guests must believe that service settings
have a high level of safety and security, and
hospitality organizations
- Making it easy for guests to find their way to
do whatever it is they seek in the
experience.
- Clear, simple signage or strategically
located employees can help them find their
way
- Technology- not only to make sure it works
properly but also that clear, easy-to-follow
directions on how to navigate.
HOW THE SERVICE ENVIRONMENT AFFECTS
THE GUEST?
- The hospitality manager seeking to provide
an excellent and memorable experience
should
give as much attention to
managing the setting as to the
service product itself and the
service delivery system.
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- The figure focuses on how environmental
influences operate on the guest to
determine the guest’s reaction to the service
setting
- Combination of elements can cause the
guest (and employees as well) to want to
approach the setting and remain in it or to
leave the setting and avoid it in the future
- Though the model focuses on guests, it
should be noted that it is equally important
in seeing the relationship between the
environment and employee behavior
AMBIENT CONDITIONS
- The ergonomic factors such as temperature,
humidity, air quality, smells, sounds,
physical comfort, and light—affect the
nature of the guest experience.
USE OF SPACE
- Refers to how the equipment and
furnishings are arranged in the hospitality
service setting, the size and shape of those
objects, their accessibility to the customers,
and the spatial relationships among them.
FUNCTIONAL CONGRUENCE
- Refers to how well something with a
functional purpose fits into the environment
in which it serves that purpose.
SIGNS, SYMBOLS AND ARTIFACTS
- Signs, symbols, and artifacts that
communicate information to the guest.
- Signs serve one or more of only
three purposes: to name the
business (e.g., Nordstrom’s
Department Store, Ramada Inn,
Shula’s Steak House), to describe the
product or service (e.g., Rooms for Rent,
Hot Dogs, Rest Rooms), and to give
direction.
- Symbols, such as representational icons
that can replace any specific language.
 - Artifacts are physical objects that represent
something beyond their functional use. As
such, they are a type of symbol.
OTHER PEOPLE
- Employees, other guests, or perhaps even
audio-animatronics creations that guests
come to think of as real people
- Guests of many hospitality organizations
expect to see other people also enjoying the
experience
THE SERVICESCAPE
- Temperature, smells, sounds, lights, signs,
physical structures, furnishings, green
space, open space, other people.
- It is what the individual environmental
factors add up to for each guest
- The hospitality service provider must realize
that each guest’s reaction to the perceived
servicescape is affected or “moderated” by
the guest’s mood, personality, expectations,
and demographic characteristics
FACTORS THAT MODERATE INDIVIDUAL
RESPONSES
- Label as moderators the individual, personal
factors that cause guests to respond to the
service setting in different ways
- Guests bring a particular day’s moods,
purposes, demographic characteristics, and
personality traits to a particular day’s guest
Experience.
- Some people like to be alone and object to
standing in long, crowded lines
- Other people love to be around crowds
- Some customers arrive in a happy mood
while others are angry or upset.
- Cultural values and beliefs also influence
how guests respond to the servicescape.
● Physiologically
● Emotionally
● Cognitively
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RESPONDING TO THE SERVICESCAPE
PHYSIOLOGICAL RESPONSES
- Results primarily from the servicescape’s
effects on the guest’s senses
- Most physiological responses to the
environment are responses to such ambient
conditions as temperature, humidity, air
quality, smells, sounds, and light.
- A second type of physiological response to
the environment is the
information-processing capabilities of the
brain
- A well-known study of how much unfamiliar
information a human brain could process
COGNITIVE RESPONSES
- The cognitive impact of an experience
depends on the knowledge the guest brings
to the experience.
- Guests enter every experience with a set of
expectations based on what they have
seen, heard about, and done before
- The human tendency is to seek points of
similarity between what we have done,
seen, or experienced before and what we
encounter in the new situation.
- These prior experiences build expectations
as to what ought to be seen, which
obviously influences what is perceived
- Nonverbal cues and communication
- The designers of the guest experience
communicate what the experience is and
teach the guest how to enjoy it
- Informational cues tap into previous
knowledge and form the expectations about
what the experience should be like
EMOTIONAL RESPONSES
- Customer may react emotionally to the
servicescape
 - Emotional responses have two distinct
elements of interest to the hospitality
organization.
- The first is the degree of excitement, and
the second is the amount or degree of
pleasure/ displeasure that the experience
represents.
THE BOTTOM LINE: COME, AND STAY, OR
STAY AWAY
- These three response factors—
physiological, cognitive, and
emotional—operating together lead the
guests to make one of two choices:
- To become patrons (i.e., come and stay) or
to give their business elsewhere (i.e., stay
away)
- The guest can decide that the experience of
the service environment was, on the whole,
positive or negative.
- Hospitality organizations must work hard to
create environments that encourage longer
stays and repeat visits that result in
increased revenues.
TAKEAWAYS/ LESSONS LEARNED:
1. Envision and create the service setting
from the guest’s point of view, not your own.
2. Use signs and symbols to make it easy for
guests to go where they want to go and to
know where they are, whether in your
physical space or on your Web site.
3. Make sure that the functional parts of the
setting work and work the way the guest
expects.
4. Design the space to fit the guest’s needs,
wants, and expectations.
5. Theming can add quality and value to the
setting by making it memorable.
6. Realize that for each guest both other
guests and employees are part of the
setting.
7. Supply information-rich environments when
and where guests have time to appreciate
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and enjoy them; use information-lean
environments when and where guests are
trying to figure out what they should do or
where they should go.
8. Do not overload the environment with
information; recognize that most people can
process only small amounts of unfamiliar
information at one time.
9. Know and manage the cognitive,
physiological, and emotional impact of your
environment on guests.
10. Manage the environment to maintain the
guest’s feeling of safety and security.
11. Recognize that guests can differ in mood,
expectations, and experience from one
experience to the next; what was a wow for
a guest today may only be an as-expected
tomorrow.
CHAPTER 4:
SERVING WITH A SMILE: MOTIVATING
EXCEPTIONAL SERVICE
MOTIVATE AND EMPOWER YOUR EMPLOYEES
“Profit is the applause you get for taking care of
your customers and creating a motivating
environment for your people.”
- Ken Blanchard
“People often say that motivation doesn’t last.
Well, neither does bathing-that’s why we
recommend it daily.”
- Zig Ziglar
WHAT MOTIVATES PEOPLE?
MOTIVATION
- To motivate means is to instill a desire
within a person that encourages the person
to act.
- In the organizational setting, motivation rest
on the idea that people are driven to
achieved their own ends and satisfy their
own needs.
 - The challenge for the hospitality manager is
to discover what incentives and rewards
each employees requires as reasons to give
up at least some personal control to the
organizational and exert effort on its behalf.
- Finding the right combination of incentives
and rewards is the organization is the hard
part of motivation, as employees-like
guest-are highly individual persons with
their own sets of needs, wants, expectation,
capabilities, and behaviors.
THREE PATTERNS OF MOTIVATION
● Achievement motivation
● Affiliation motivation
● Power to motivate
HIERARCHY-OF-NEEDS THEORY
PSYCHOLOGIST ABRAHAM MASLOW’S
- Lists examples of each type of need in both
the personal and work spheres of life.
- For instance, at the list of personal needs in
the left-hand column. At the bottom are
physiological needs (such life- sustaining
needs as food and shelter).
- Working up the hierarchy we experience
safety needs (financial stability, freedom
from physical harm), social needs (the need
to belong and have friends), esteem needs
(the need for self-respect and status), and
selfactualization needs (the need to reach
one’s full potential or achieve some creative
success).
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THERE ARE TWO THINGS TO REMEMBER
ABOUT MASLOW’S MODEL:
- We must satisfy lower-level needs before
we seek to satisfy higher-level needs.
- Once we’ve satisfied a need, it no longer
motivates us; the next higher need takes its
place.
TWO-FACTOR THEORY
FREDERICK HERZBERG
- set out to determine which work factors
(such as wages, job security, or
advancement) made people feel good about
their jobs and which factors made them feel
bad about their jobs.
- He surveyed workers, analyzed the results,
and concluded that to understand employee
satisfaction (or dissatisfaction), he had to
divide work factors into two categories:
MOTIVATION FACTORS
- Those factors that are strong contributors to
job satisfaction
HYGIENE FACTORS
- Those factors that are not strong
contributors to satisfaction but that must be
present to meet a worker’s expectations and
prevent job dissatisfaction.
PATTERNS OF MOTIVATION
ACCORDING TO OWENS (1998)
 - A body of literature has been produced on
motivation that is both staggering in scope
and illuminating.
- Motivation deals with explanations of why
people do the things they do.
- He also cites three motivational patterns
that are generally agreed upon by scholars
as direction in making choices, persistence,
and intensity.
CHOICES-PERSISTENCE-INTENSITY
PATTERNS OF MOTIVATION: 1ST
- The first pattern, direction in making
choices, deals with what option is chosen
when individuals are confronted with
different possible alternatives.
- When a person chooses to behave in a
particular way when given several options, it
speaks to the motivation of that individual.
- Furthermore, something one person is
motivated to do may not hold enough value
to direct another's attention toward it.
PATTERNS OF MOTIVATION: 2ND
- The second pattern, persistence, is an
indicator of the motivation of an individual.
- For example, one individual may dedicate a
huge amount of time to a task which
another will spend a relatively short amount
of time on.
- Persistence may also be indicated when a
person is willing to return to a task again
and again.
PATTERNS OF MOTIVATION: 3RD
- The third pattern, intensity, speaks of the
intensity with which one attends to doing
something.
- For example, one instructor may work
enthusiastically, concentrating more
thoroughly on a desired outcome whereas
another instructor may put in the same
amount of time but lack the desire to
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implement enthusiasm and concentration
into the process.
ROLES OF MANAGER
- Understand what employees need and
wants so that rewards can be aligned with
these interests.
- Know what tools are at their disposal to help
motivates employees.
- Understand how employees react to both
financial and nonfinancial rewards and how
these rewards motivate employees to
perform well.
- Understand how their roles as managers
and leaders are critical for doing all this
effectively and in a way that is seen as fair
and trustworthy.
THE FOUR NEEDS THAT PEOPLE HAVE
● Survival needs
● Social needs
● Recognition needs
● Achievement needs
SURVIVAL NEEDS
- It is the most basic need of employee
- To meet employee survival needs, the most
obvious inducement is money provided
though a paycheck.
- Most people who seek to work for a
business do so in a large part because they
need to earn a living.
- For many people across the world, the
primary need if they are concerned about
how they are going to get their next meal,
feed their family, find a safe place to say, or
buy warm clothes in the winter.
SOCIAL NEEDS
- Most people enjoy being a part of the group
or team.
- This sense of belonging can be helpful in
managing employee direction and behavior
in the workplace.
 - When employees join any organization, they THE REWARDS PEOPLE WANT
join a formal group . This includes the FINANCIAL REWARDS
company as a whole. - (wages, and bonuses, and group incentives)
- In addition, employees may belong to an NONFINANCIAL REWARDS
informal group at the work place. - (formal recognition programs, to motivate
- An informal group refers to a social group exceptional performance)
that forms without guidance from the
organization.
EMPOWERING THE EMPLOYEE
- The managerial focus here, therefore,
- Is the assignment of decision-making
should be to establish an environment
responsibilities to an individual.
wherein employees can work in harmony
- It requires sharing information and
with informal and formal work group to
organizational knowledge that enable
support each employee’s effort to achieve
empowered employees to understand and
group goals, which will-directly or
contribute to organizational knowledge and
indirectly-help achieve the organizational
organizational performance, giving them the
goals.
authority to make decision that influence
outcomes and rewarding them based on the
RECOGNITION NEEDS
organization performance.
- Everybody likes to be appreciated.
- The need for recognition refers to
FIVE KEYS TO IMPLEMENTING AN EFFECTIVE
employee's desire for praise and attention
EMPOWERMENT
from colleagues and superiors.
● Training
- Recognition needs can be satisfied in a
● Willingness
number of ways. Most obviously, a formal
● Measurement
recognition program in one way to
● Incentives
acknowledge and appreciate stellar
● Managerial buy-in
performance.

TRAINING
ACHIEVEMENT NEEDS
- Empowerment requires an investments in
- Employees like to believe that what they do
employee training.
is important and the companies they work
- Employees must learn to understand their
for do important things.
areas of responsibilities thoroughly. Then
- If employees think that their level of service
they must learn how to make sound
really makes a difference to their customer,
decision within their areas.
the profession, or the community, they will
feel a legitimate sense of importance.
WILLINGNESS
- They will have pride in the jobs they do and
in the company for which they do those - Empowerment requires employees to not
jobs. only be ready and able to make decision
- If the employees believe what they are about their jobs but also be willing to do so.
doing is important, they will be highly - If the employees are uninterested in the
energized to give incredible effort to make company and its future, empowering them
that important task happened. to make decisions risky.

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MEASUREMENT
- Employees must have goals or standards
against which the results of their decisions
can be measured.
- Otherwise, they will not know either what
they should do or if their decisions were
good or bad.
INCENTIVES
- Rewards need to be attached to successful
performance.
- Rewards help reinforce the goals of the
program and make it clear to employees
that using their empowerment appropriately
is worthwhile.
MANAGERIAL BUY-IN
- Management must be willing to accept
empowered employees, let them make their
own decisions, and not interfere.
- An empowerment program will not work if
managers cannot learn to trust the
capabilities of empowered employees.
LIMITATIONS AND POTENTIAL OF
EMPOWERMENT
Empowerment may be less appropriate if:
• The basic business strategy emphasizes low-cost,
high-volume operations.
• The tie to most customers is short term
• Technology used is simple and routine
• The business environment is highly predictable
• Employees have low growth needs, low social
needs,
and weak interpersonal
Alternatively, employee empowerment can be
highly successful and rewarding if:
• Service is customized or personalized
• Customer relationships are long term
• Technology used is complex
• The environment is unpredictable
• Employees have high growth needs, social needs,
and
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strong interpersonal skills
EXPECTANCY THEORY
Maintains that organizations need to relate
rewards directly to performance. If the
employees believe or expect:
- That they can achieve a certain
performance level by putting in a certain
level of effort.
- That achieving this performance level will
lead to promised rewards
- And if employees value these rewards
sufficiently, they will be motivated to put in
the effort of necessary to get the rewards.
EQUITY THEORY
- This theory proposes that employees
analyze their contributions or job inputs
(hours worked, education,
experience, work performance) and their
rewards or job outcomes (salary, benefits,
recognition).
- Then they create a contributions/rewards
ratio and compare it to those of other
people.
THE BASIS OF COMPARISON CAN BE ANY
ONE OF THE FOLLOWING:
• Someone in a similar position
• Someone holding a different position in the same
organization
• Someone with a similar occupation
• Someone who shares certain characteristics
(such as age, education, or level of
experience)
• Oneself at another point in time.
“Create a positive work environment”
PERFORMANCE APPRAISAL
EMPLOYEES GENERALLY WANT THEIR
MANAGERS TO TELL THEM THREE THINGS:
• what they should be doing
• how well they’re doing it
• how they can improve their performance.
GOOD MANAGERS ADDRESS THESE ISSUES
ON AN ONGOING BASIS
• On a semiannual or annual basis
• they also conduct formal performance appraisals
to discuss
• evaluate employees’ work performance.
BENEFITS OF PERFORMANCE APPRAISAL
- An opportunity for managers and
employees to discuss an employee’s
performance and to set future goals and
performance expectations.
- A chance to identify and discuss appropriate
training and career- development
opportunities for an employee.
- Formal documentation of the evaluation that
can be used for salary, promotion,
demotion, or dismissal purposes.
WHY PEOPLE QUIT?
- As important as such initiatives can be, one
bad boss can spoil everything.
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- The way a person is treated by his or her
boss may be the primary factor in
determining whether an employee stays or
goes.
PEOPLE WHO HAVE QUIT THEIR JOBS CITE
THE FOLLOWING BEHAVIOR BY SUPERIORS:
• Making unreasonable work demands
• Refusing to value their opinions
• Failing to be clear about what’s expected of
subordinates
• Rejecting work unnecessarily
• Showing favoritism in compensation,
rewards, or promotions
CONTINGENT WORKERS (TEMPORARY/PART
TIME JOB)
- Hired to supplement a company’s
permanent workforce.
- Most of them are independent contractors,
consultants, or freelancers who are paid by
the firms that hire them.
- Others are on-call workers who work only
when needed, such as substitute teachers.
- Still others are temporary workers (or
“temps”) who are employed and paid by
outside agencies or contract firms that
charge fees to client companies.
GOAL THEORY
- Goal Theory is concerned with the
perception and pursuit of goals not only with
immediate objectives but with larger
concepts of what it means to succeed in
school (Kaplan & Maehr, 1999)
2 TYPES OF GOALS
TASK GOALS
- "learning goals" and "mastery goals" which
put the emphasis on the learning of content
by the individual.
EGO GOALS
 - performance goals" and "ability goals" which
put the emphasis on the performance and
activities of the learner.

TAKEAWAYS/LESSONS LEARNED:
1. Set clear, measurable standards that define
expectations for job performance.
Constantly reinforce these standards by
setting examples; let employees know that
the standards are important; reward
employees when they meet these
standards.
2. Walk the talk; set the example. Employees
respond more to what you do than to what
you say.
3. Make all tasks and goals measurable;
people like to know how well they’re doing.
4. Pay attention to communication; people
can’t do what they don’t know about or don’t
understand.
5. Be fair, ethical, and equitable. People need
to feel they are being treated equitably. If
you don’t show people why reward
differentials are made between employees,
they will assume the worst.
6. Reward behaviors you want, and don’t
reward behaviors you don’t want.
7. Praise, praise, praise. Look for reasons to
reinforce people doing the right things.
Privately re-educate and coach those doing
the wrong things.
8. Show employees the relationships between
their personal goals, group goals, and
organizational goals. Find win-win-wins.

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