Professional Documents
Culture Documents
Introduction :
The people element in the service marketing mix refers to all of the human
actors who play a part in service delivery and thus influence the buyer‘s
perceptions. Two groups of people play important roles in the delivery of quality
services – the employees and customers Service employees create satisfied
customers and build customer relationships. Customer participation at some
level is inevitable in service delivery. As a result, the customers also play unique
roles in service delivery situations. In many situations, employees, customers
and even others in the service environment interact to produce the ultimate
service outcome
The consequences include bored employees who lack the ability to respond to
customer problems, become dissatisfied and develop a poor service attitude.
The outcomes for the firm are low service quality and high employee turnover.
Because of weak profit margins, the cycle repeats itself with hiring of more low-
paid employees to work in this unrewarding atmosphere.
The customer cycle of failure begins with repeated emphasis on attracting new
customers who become dissatisfied with employee performance and the lack of
continuity implicit in continually changing faces. These customers fail to develop
any loyalty to the supplier and turn over as rapidly as the staff thus requiring an
endless search for new customers to maintain sales volume.
Also ignored are two revenue variables: future revenue streams that might have
continued for years but are lost when unhappy customers take their business
elsewhere and potential income from prospective customers who are deterred
by negative word-of- mouth. Finally, there are less easily quantifiable costs such
as disruptions to service while a job remains unfilled and loss of the departing
employee’s knowledge of the business (and its customers).
The Cycle of Mediocrity:
Another vicious employment cycle is the ‘Cycle of Mediocrity’ (Figure 18.4). It’s
most likely to be found in large, bureaucratic organizations – often typified by
state monopolies, industrial cartels or regulated oligopolies – where there is
little incentive to improve performance and where fear of entrenched unions
may discourage management from adopting more innovative labour practices.
Training, such as it is, focuses on learning the rules and the technical aspects of
the job, not on improving human interactions with customers and fellow-work-
ers. Since there are minimal allowances for flexibility or employee initiative, jobs
tend to be boring and repetitive.
It is possible for service organisations to break free from the “Cycle of Failure’.
This would involve the adoption of an opposite stance known as the “Cycle of
Success”. The compulsory condition for the “Cycle of Success” is to increase the
level of satisfaction of internal customers through various measures and
initiatives.
Moreover, a critical analysis of service-profit chain with the aims of identifying
and utilising opportunities for improvement plays an integral role in entering
this cycle. The service-profit chain “consists of all activities involved in the direct
link between an organisation’s service providers and customers or clients”
(Schermerhorn, 2011, p.468). To put it simply, service profit chain includes all
the links in service operations that has impact on the level of customer
satisfaction.
However, the initial point to focus on is enhancing the internal service quality
i.e. investing in employee skills and capabilities, as well as motivating them, and
this will increase the external service value though increasing the levels of
customer satisfaction and loyalty (Heskett et al., 2008).
This approach is fully adopted at Savoy hotel that has three members of staff for
every guest and each member of staff receives adequate amount of training and
development in addition to competitive pay with benefits (Peternoser, 2011,
online).
Another successful service organisation – KPMG audit, tax, and advisory services
company motivates its employees through assigning them with challenging
tasks along with salaries of well above the industry average, and accordingly the
company has been ranked second on Universum’s 2011 index of ‘The World’s
Most Attractive Employers’ (KPMG, 2012).
“The old saying ‘People are your most important asset’ is wrong. The RIGHT
people are your most important asset.”
Jim Collins
It refers to all the factors that combine to create a pleasing atmosphere for the
client.
Physical evidence is what attracts your customers first - they will judge your
service/product after looking at your physical evidence.
If this entity is properly implemented, you will garner customer support
irrespective of whether your product is up to the expected standards.
Services are highly important in marketing to retain consumer faith. This is
largely dependent on the tangible comfort that is offered to consumers.
A few factors that are included in physical evidence are enlisted below.
Ambience
It refers to the atmosphere - in terms of aspects, like color, size, smell, sound,
theme, music, etc.
A good ambience depends on the business as well - for example, a restaurant is
said to have a good ambience if it has attractive wallpapers, beautiful art on the
walls, lovely music, etc. Similarly, a corporate office has a good ambience if it
has tasteful art on the walls (sober, not flashy), a good color combination for the
walls, etc.
The quality of ambience is measured by how well these factors are combined
and used. A small mistake may change the atmosphere and make it unbearable.
For example, imagine if a simple coffee house has unnecessarily loud music and
skeleton art hanging all over. Will it look attractive? It might possibly drive
customers away. Therefore, this factor has to be kept in mind while offering
service.
Layout
Artifacts
Technically, artifacts refer to artistic objects that have some kind of historical
value.
Most corporate offices have lovely artifacts placed in their workplaces; it does
not necessarily mean that they are interested in where the artifact originated.
Such décor, however, enhances the look and feel of the place, and is considered
as a status symbol.
You might have noticed many high-end places decorated with paintings of
renowned painters. It helps create the right atmosphere.
Furnishings
Examples
Example I: Restaurants
Well, hospitals are obviously not a place where people prefer to relax; the last
thing on their minds would be to check out the interiors of the place when their
friend/family is in the emergency care.
Nevertheless, the least you can do is have a reassuring atmosphere to ease off
their worries.
Have huge interior spaces and proper signs - people need to know where the
emergency ward is, or the gynecology section, or the radiology department, etc.
Make sure the walls and rooms are painted properly; do not use flashy colors,
but do not use any dull, depressing color either.
Hang soothing prints on the walls.
Have proper boards installed at all places, displaying the room numbers, floors,
and other details so that the families of patients can find their way easily.
Use inspiring wall art, for instance, you can have a beautiful painting that
says, "All trials are not the reason to give up, but a challenge to improve
ourselves. Our pain is not an excuse to back out, but an inspiration to move on.".
You never know when and how it might light hope in people.
Now, that's a heavy one. Resorts need every small aspect to be in perfect
condition.
To begin with, the exterior of the resort needs to be huge and palatial
(preferably). The gardens surrounding the resort need to be beautifully
manicured, swimming pools need to be cleaned and maintained, the same goes
for the jacuzzi and bars.
Inside, make sure the interiors are designed beautifully. You can use mural art
and wooden flooring. Or, you could use marble and ceramics. Whatever
combination you choose, the elements need to be compatible with each other.
The rooms need to be designed properly. Services like telephone, tea/coffee
sachets, toiletries, bed sheets, etc., need to be in perfect order.
Try to avoid narrow corridors. Or if you cannot do so, spice up the corridor with
some lovely wall hangings.
Use incense sticks or fresheners or any other item that infuses the space with
lovely smells so that your clients feel pleased and happy.
Most of us would visualize dull colors and furniture with corporate offices, but
it need not be so.
Depending upon your enterprise, you can decorate your office space in the best
way possible.
Most office floors have cubicles and cabins, but that is what the challenge is. You
have to make use of the small space to come up with ideas.
For example, a construction firm can have building models or architectural tools
installed all over. A software firm can have random abstract wall art. Funky
prints and hangings will work very well for event management companies.
Make sure you have a great cafeteria, sufficient coffee machines and
washrooms, and the necessary office appliances.
Use brown, beige, and black for the interiors, they are great colors that will suit
an office atmosphere. Navy blue, teal, camel, etc., are great choices too.
Well, it is more than obvious that the spatial layout of an airport has to be
enormous. With people rushing in and out 24 X 7, you cannot afford a small
space.
Airports need to be cool and clean, and proper signboards are the most
important aspect.
The luggage trolleys need to be arranged in the right place, plenty of washrooms
are a necessity, and furnishings need to be comfortable.
Have sufficient staff at the gate area, lounge, baggage claim, conveyor belts, and
all the other counters.
The airline needs to look good as well. The oxygen masks, life jackets, etc., need
to be at a lesser distance from the passenger.
Take note of the parking, landscape, cab stands, etc.
Sporting event firms, like tourism companies, rely heavily on physical evidence
to market themselves.
When you go to the stadium, you would have noticed that the seats have been
efficiently placed, banners and hoardings have been erected, the staff runs
around with drinks, sports t-shirts are distributed, etc.
Terrific efforts are taken to maintain an electric atmosphere.
Similarly, for bars and clubs, the latest groovy music and discotheque lights are
essential to create the right environment