Goods vs. Services

• Anything offered to a market to satisfy a need or want is a product

Goods

• Physical objects that can satisfy a demand
• Their physical attributes are preserved over time
• Ownership can be established
• Can exist independently, and be traded on markets

Service

• Possesses four features: intangible, heterogeneous, inseparable, and perishable
• Intangible services cannot be touched and exist in connection to other things
• Heterogeneous services may have inconsistency
• The production and consumption of inseparable services cannot be separated
• Perishable services perish in the very instant of performance

Dimensions of Quality for Service Products

• Performance refers to a service product's primary operating characteristics, often meaning prompt service
• Features are dimensions of quality cited as a secondary aspect of performance
• Reliability is the ability to perform the promised service dependably and accurately
• Conformance means that a service product's design and characteristics meet the standard set
• Durability is more detectable in goods rather than in services; it has both technical and economic dimensions
• Serviceability or the speed, courtesy, competence, and ease of repair
• Aesthetics are highly subjective, referring to the visual appeal and pleasing qualities of a service
• Perceived quality is how guests indirectly measure a service product, serving as their basis to compare brands

Notable People in Service Quality

• Walter A. Shewhart: American physicist, engineer, and statistician, also knowns as the Father of Statistical Quality Control
• William Edwards Deming: American engineer, statistician, professor, author, lecturer, and management consultant
• Joseph M. Juran made quality management contributions in over 70 active working years

Guestology

• Guestology defined as the scientific study of the behaviors, needs, and expectations of people in a service environment
• Guestology entails studying the totality of the guest experience, from expectations down to the results and feedback
• Guestology involves knowing the guests or clients and their needs and wants, perceptions, and expectations

Number of Problems Encountered in the Industry

• Problems encountered in the industry include; rooms, arrogant and/or clueless staff, failure to respond, poor delivery, cleanliness,amenities and utilities, and billing issues
• Customers are otherwise known as guests and clients

5 Basic Types of Customers

• Loyal Customers: the most important segment to please, representing 20% of the customer base but driving most sales revenues
• Impulsive Customers: best to do suggestive selling who do not have a shopping list in mind and do shopping instinctively
• Need-Based Customers: buy for a specific reason and occasion and leave immediately after they are done getting what they need
• Wandering Customers: generate the largest amount of traffic as they have no specific need or desire but yield the smallest percentage in sales revenue
• Discount Customers: contributory to a company's cash flow becuase the products which are seldom purchased at full price are actually availed by these customers as best markdowns

Strategies for Competitors and Guests

• Strategies help a company identify its competitors while satisfying the needs and wants of its guests

Strategic Planning

• This has been utilized extensively for developing tangible products
• Identifies a company's internal and external characteristics to attain its goal
• Three elements of strategic planning: Identification of long-term goals and objectives, adoption of different courses of action and allotment of resources

Porter's Generic Strategies

• These are used in achieving competitive edge; cost leadership, differentiation, and focus

Cost Leadership Strategy

• This focuses on increasing profits by reducing operational costs and charging lower prices

Differentiation Strategy

• This focuses on making a company's service being attractive in comparison to its competitors

Focus Strategy

• This concentrates on developing services for niche markets

Types of Focus Strategy

• Focus on cost leadership is to target student guests that are looking for cheaper alternatives to hotel lounges wherein they could spend their time studying
• Focus on differentiation in order to target guests who do not want to sit down and have a cup of coffee

Internal and External Assessments

• Internal Assessment: where an organization takes stock of the resources and assets that it possesses
• External Assessment: assesses how a company positions itself against competitors in the market
• This showcases its opportunities and threats which can identified using PESTEL analysis

Other Stakeholders and Relevant Groups

• Resource suppliers provide raw materials which can also affect the smooth operation and causes seasonality
• Capital suppliers: suppliers can now move at a faster pace, which makes a company vulnerable
• Labor supply: a pool of skilled employees who shape the market drive the operation itself