Page 113 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes There should be consistency in the service strategy and the systems that are developed to run the
day-to-day operations to achieve the strategic goal. Systems would be designed only after the
service strategy becomes clear and is agreed on. The systems would then greatly aid the service
transactions/encounter. This would greatly affect the feeling of the customers, which would
lead to their satisfaction.

Example: Thomas Cook might have a strategy this tourist season for its inbound tour
packages. It has over 56 branches all over the country. Tour packages can have customized itinerary
plans. But it should set up systems to carry out the strategy. Else, there would be confusion in all
the branches, duplication in jobs like calculation of itinerary tariffs, repeat handling of the same
enquiries from all the branches and of course ad hoc decisions will take place.
The impact of organisational systems on customers: This would in turn greatly influence their
service experience.

Example: Continuing with the Thomas Cook example, if the organisational systems are
faulty, like the communication to the inbound tourists (the itinerary details), or if a Thomas
Cook employee is not aware of the latest currency exchange rates or the hotel tariffs - then the
customer is discouraged and leaves with a lasting impression of the organisation as being
inefficient and incompetent.

The importance of organisational systems and employee efforts: Rules and regulations should
aid an employee in giving of his best, not hinder him in his service transactions.
“Giving someone the freedom to take responsibility releases resources that would otherwise
remain concealed,” said Jan Carlzon, the legendary head of Scandinavian Airlines System (SAS).
Carlzon was responsible for turning around SAS. Organisational systems should “transform
people from administrators (read clerks) to leaders and facilitators.” The rules and regulations
should empower the employee and facilitate him in intrapreneurship-entrepreneurship inside
an organisation.
The interaction between the customer and service provider: It is these interactions that give rise
to service encounters or critical incidents. They are also called Moments of Truth (MOT). The
quality of these interactions is the source of customer satisfaction.

Example: An insurance company might profess to be very modern, high-tech and big,
and boast of versatile products. But if the quality of transaction with the customer is not pleasant,
the customer will have a negative perception, which actually is the measurement of the quality
of insurance service by the company.


Moments of Truth in Hospitality: Do they spell QUALITY?
Caselet
n the Hospitality industry, there are a minimum of twenty or thirty moments of truth
in its provision of service. A moment of truth is when an interaction occurs between a
Icustomer and the service provider that can leave a lasting positive or negative
impression on a customer.
Moments of truth in a hotel, for example, will undoubtedly include (but not be limited to)
booking the room, check-in, check-out, dinner reservations, dinner ordering, dinner
presentation, eating (quality and quantity of food) and laundry receipt.
Contd...

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