Service Characteristics of

Hospitality and Tourism Marketing

RUBY CARRERA – DILAN , MBA

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 Service culture

“The quality of the service is in a

risky state – it is in the hands of the
service workers who ‘produce’ and
deliver it.”
Karl Albrecht (German
entrepreneur)

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 Service culture
•
The service culture focuses on serving
and satisfying the customer
•
Empowers employees to solve customer
problems
•
For most non industrial country service
industry contribute major GDP

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 Service Characteristics

Characteristic of service
marketing
1. Intangibility
2. Inseparability
3. Variability
4. Perishability

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Service Characteristics
y
tyit
bitai
li il
anbI
g
ar
Can’t be seen, tasted, felt, heard,
p
or smelled before purchase.
e
Ins ty
bili
tyia Can’t be separated from service
biliar providers.
aV
h
is Quality depends on who provides
er them and when, where and how.
P

Can’t be stored for later sale or

use.

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 Service Characteristics
•
What is service?
A service is a process consisting of a series of
more or less intangible activities
Interaction between the customer and
service employees, physical resources or goods
and/or systems
Provided as solutions to customer
problems
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 Service Characteristics
Intangible, associated with experience
•
Tangibilizing the intangible
– Create strong organization image
– Engage in post-purchase communication
– Stimulate “Word of Mouth” & Publicity

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 Service Characteristics
Inseparability, the customer becomes part of the
service production.
- Service encounter:
ü
Moment of truth
ü

Communication

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 Service Characteristics

Variability, associated with lack of consistency

•
The quality depends on who provides, when,
and where they provides
•
Stressing on customization and Customer
Relationship Management

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 Service Characteristics

Perishability, service can’t be stored

•
There is no inventory, thus it should be sold in
same day
•
Managing demand and capacity

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Three Types of Marketing in
Service Industries

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 Marketing strategies for
service business
1. Managing differentiation
2. Managing service quality
3. Resolving customer complaint
4. Tangibilizing the products
5. Managing employee
6. Managing perceived risk
7. Managing capacity and demand

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 Marketing strategies for
service business
1. Managing differentiation
Differentiate the product based on three
ways:
1. people
2. physical evidence
3. process

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 Marketing strategies for
service business
2. Managing service quality
Exceed the customer service-quality
expectation
“Promise only what you can deliver,
deliver more than you promise”
(American Express)

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 Marketing strategies
for service business
3. Resolving customer complaint
“ talk less….do more….”

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 Marketing strategies for
service business
4. Tangibilizing the products
Providing “evidence” of the
service:
–
Promotional Material
–
Physical Environment
–
Employee appearance
–
Etc

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 Marketing strategies for
service business
6. Managing employee
• Training and motivating
• Reward and punishment
• Human capital
approach

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 Marketing strategies for
service business
7. Managing capacity and demand
Change the capacity or change the
demand?

Customer complaints increase when

service firms operate above 80% capacity
Maximizing service capacity and quality
during times of high and low demand
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End of presentation…

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