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Free Powerpoint Templates
Service characteristic of hospitality
and tourism marketing
kurniawangilang@yahoo
.com

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OUTLINE
•
Describes service culture
•
Identify service characteristic that affect
the marketing
•
Explain how marketing strategies are
useful in the hospitality and travel
industries.

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

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Service Characteristics
Intangibility
Inseparability
Variability
Perishability
Can’t be seen, tasted, felt, heard,
or smelled before purchase.
Can’t be separated from service
providers.
Quality depends on who provides
them and when, where and how.
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
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Create strong organization image
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Engage in post-purchase communication
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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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Service Characteristics

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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
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Etc

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Marketing strategies for
service business
6. Managing employee
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Training and motivating
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Reward and punishment
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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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THANK YOU