3Service Fundamentals

3Service Fundamentals - 3Service Fundamentals lifetime...

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3Service Fundamentals lifetime value of a guest the amount of money/revenues a guest will generate for a business over the life of their relationship with that business moments of truth occur anytime a customer comes into contact with any aspect of a business, however remote, and has an opportunity to form an impression service activities performed by employees for customers lifetime value of a guest , which is the amount of money a guest will generate over the life of their relationship with the business. moments of truth , which according to Carlzon and others, occur anytime a customer comes into contact with any aspect of a business, however remote, and has an opportunity to form an impression . word of mouth is a significant factor in shaping customer expectations and behaviors, and they often report it as the most powerful source of information and influence 2 . it is the start of the most efficient and effective process to shape the perspectives of and attract new customers. Can’t hear it, see it, taste it, touch it, smell it, or own it … what is it? It’s service for sure – those activities performed for customers (that HBs want to make into guests) –– and not only is it intangible, produced simultaneously and often face-to-face by the seller and the buyer, and potentially different each time, it is also extremely perishable. That’s a bit more to think about than just where/what to eat for dinner or where to go/stay on the next vacation, isn’t it? Intangibility, Perishability, Inseparability, and Variability – understanding the HB perspective requires careful consideration of each of these elemental characteristics of service. Armed with this understanding, owners or managers of hospitality businesses are better informed when making choices about where to apply effort and resources to increase the likelihood of maximizing profits and/or whatever other outcomes the hospitality business is aiming to achieve. Intangibility What happens when someone purchases a product –– clothing or an iPod or a laptop computer, for example? They wear it or listen to it or play/work on it – they experience multiple tangible
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sensations (via sight, touch, hearing, etc.) and often not only tell other people but will sometimes even let others try it – to see or listen or play/work with the product. If the other person is impressed enough to buy the product – to have their own “copy” of the clothing or iPod or computer – if the same brand, color, or model is purchased by both, it is likely that neither would be able to tell the two products apart. But what about when someone makes a service purchase – specifically, at a hospitality business? Is there anything tangible that a guests take with them after an outstanding stay at a hotel? (Those logo towels don’t count!) Yes, guests do take some “product portion” of a restaurant purchase/experience with them when they leave, but whether they ingested it or brought it out in a “to go” container, the product part of the hybrid product/service purchase is
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This note was uploaded on 11/11/2011 for the course HB 100 taught by Professor Donhue during the Spring '08 term at Michigan State University.

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3Service Fundamentals - 3Service Fundamentals lifetime...

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