MLT8101 Marketing for Luxury Tourism: The Concept of Luxury & Service

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What is the original Latin meaning of the word 'luxus'?

Grow askew, excess

What percentage of total revenue in hospitality is attributed to luxury brands?

6%

What is one of the challenges associated with the intangibility of services?

High perceived risk and difficulty in evaluating the service before the experience.

What is the main difference between 'true luxury' and 'intermediate luxury' brands?

True luxury is exclusive and high-end, while intermediate luxury is more affordable. Signup and view all the answers

What is a key characteristic of services, according to Bateson and Hoffman (2011)?

Intangibility Signup and view all the answers

According to Chevalier and Mazzalovo (2020), what happens to the notion of luxury over time?

The notion of guilty excess disappears, while distinction and refinement grow stronger. Signup and view all the answers

What is the main challenge posed by the intangibility of services, and how can it be addressed?

The main challenge is the lack of physical evidence, and it can be addressed by providing physical evidence, creating a strong organization image, engaging in post-purchase communication, and stimulating 'word of mouth' and publicity. Signup and view all the answers

What is the 'moment of truth' in a service encounter, and why is it critical?

The 'moment of truth' is a critical situation that affects customer satisfaction of the whole service, and it occurs during every service encounter because the customer becomes part of the service. Signup and view all the answers

How can variability in service quality be reduced, and what are the benefits of doing so?

Variability can be reduced by investing in hiring and training procedures, standardizing service-performance processes, and monitoring customer satisfaction; this leads to increased consistency and customer satisfaction. Signup and view all the answers

What is the Net Promoter Score (NPS), and how is it calculated?

The NPS is a metric that measures customer satisfaction, and it is calculated by subtracting the percentage of detractors from the percentage of promoters. Signup and view all the answers

What is the main challenge posed by the perishability of services, and how can it be addressed?

The main challenge is the inability to inventory and store services for later sale or use, leading to revenue loss; this can be addressed by managing capacity and demand, and by using pricing and yield management strategies. Signup and view all the answers

How can inseparability be managed in services marketing, and what are the benefits of doing so?

Inseparability can be managed by training employees, empowering them, and managing customer interactions; this leads to improved customer satisfaction and loyalty. Signup and view all the answers

What is the primary objective of a service culture in an organization?

To provide the customer with quality service. Signup and view all the answers

How does a service culture approach hiring in the organization?

By focusing on hiring service-oriented candidates. Signup and view all the answers

What is the role of top management in establishing a service culture?

To initiate and lead the service culture, which then flows down to other employees. Signup and view all the answers

What is the significance of highly trained and motivated service employees in creating a memorable experience for customers?

They are of utmost importance in creating a memorable experience for customers. Signup and view all the answers

What is the relationship between internal service quality, satisfied and productive service employees, and satisfied and loyal customers?

Internal service quality leads to satisfied and productive service employees, which in turn leads to satisfied and loyal customers. Signup and view all the answers

What is the purpose of creating a 'stage' in the 'front of the house' in luxury services?

To create a memorable experience for customers. Signup and view all the answers