Services have several distinguishing factors all that have implications during marketing. One of these factors is that services are intangible that means that services cannot be stocked. Consequently, variation in demand is difficult to manage. In addition, the actual cost of the service is difficult to determine making pricing difficult. The other characteristic of services is that they are inseparable as they are produced and offered simultaneously (Hultman and Ek, 2011). This means that the consumer is present during the production of the service and the level of satisfaction attained is influenced by other consumers. Services are usually heterogeneous given that these activities are undertaken by humans and hence it is not possible to produce identical services. Lastly, services are perishable as they can never be stored, resold, or returned. For instance, a hotel company that offers bad services to its customers may not returned (Hultman and Ek, 2011). Because of the characteristics described above, companies offering services faces several challenges in marketing to ensure effectiveness. This report describes the application marketing theories and concepts in the case of Palazzo Versace Hotel that had been visited to have a feel of their customer and identify critical points. The report will also present reasons that make customers feel dissatisfied with the services offered. The First Visit Service marketing efforts in the hotel industry are geared towards attracting new customers and encouraging subsequent visits. Consequently, when I booked at Palazzo Versace Hotel, Gold Coast, and the hotel had a new customer and therefore it had a big role in ensuring that it is able to maintain the customer. Despite having booked for hotel earlier, the front office staff of the hotel could not trace the booking details due to computer failure. However, as required in service marketing where the first experience plays a great role in determining the level of satisfaction a customer receives in the service industry, the receptionists was quick to reassure me that all was well and assigned another room that is of the same status like that which I had booked. By assigning a room to the customer despite failure to trace his details of booking, the reception reassured the customer that the hotel is concerned about his welfare and has trust in them. This act may also be understood from the relationship marketing. Relationship marketing involves attracting and maintaining customers through enhanced customer to organization relationship (Gilmore, 2003). By demonstrating trust for the customer and assigning a room without much interrogation, the visitor is able to form a strong relationship with the facility and therefore it is possible to book at the hotel again. The other marketing concept that is evident in the case of Palazzo Versace Hotel and the customer is that of mutual satisfaction. According to Gilmore (2003), traditionally, marketing theory emphasized on mutual satisfaction. Businesses make profits by also ensuring that they meet the needs of their customers. To ensure that customers achieve satisfaction, the services offered must be of high quality and adhere to value and convenience needs of the customer. In adherence to the needs of the customer, the receptionist recognized the value of convenience as a determinant to the level of sati
Service Experience Report Institution Date Introduction In contrast to manufacturing and processing industries where the output is usually a tangible and physically product, services industries engage in economic activities that offer convenience, comfort, health or timeliness to the consumer…
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