The Importance of Service Quality and the Evaluation of Meeting Customer Expectations of Hilton Hotel - Case Study Example

The Importance of Service Quality and the Evaluation of Meeting Customer Expectations of Hilton Hotel Introduction A service is an economic activity whose consumption is simultaneous to production and it offers added value for example comfort, convenience, amusement and timeliness (Wirtz et al, 262). The nature of a service has implications. First, services are intangible, which means that they cannot be stored, displayed or communicated. Secondly, services are heterogeneous; the implication of this is that each time a service is offered, the experience differs. In addition, the quality of a service depends on several uncontrollable factors. Thirdly, because its production and consumption are simultaneous, the customer is involved and effects the transaction. Finally, a service is perishable, which indicates that it cannot be returned, resold or stored. As opposed to goods which are produced first then sold and the finally consumed, services are sold first, then they are produced and then consumed (Zeithaml et al 33). This paper evaluates critical aspects of service quality in service encounters from the perspective of Hilton Hotels’ accommodation services marketing manager. It concentrates on Hilton Hotels in Australia. It reports the current strategies of service delivery while it suggests other strategies which would build customer relationships and loyalty. They include delivering exceptional services in order to meet customer expectations, understanding customer expectations, service quality specifications and employee performance. Delivering Exceptional Service Quality in Order to Meet Customer Expectations Forming customer relationships involve the stages of getting, satisfying, retaining and enhancing. To build a business based on loyalty, Hilton has enhanced its efforts to find and acquire the right customers. Over the years, Hilton does not stop at acquiring customers. After acquiring them, it concentrates its efforts to turn them into loyal customers by building relationships. This way, it generates a revenue stream that is growing. Customer loyalty does not come automatically; it must be established and sustained by continuously providing quality and value of a superior nature. The relationships already established should be monitored. One of the ways to do this is to come up good customer data base which collects all relevant information. The department borrows heavily on Zeithaml and Bitner’s service marketing triangle which illustrates the relationship between the management, employees and the customer. The management sits at the apex of the triangle while both the employees and the customers take the other two points. There is internal marketing between Hilton’s management and its accommodation services providers which enables delivery of the services. Between the management and the customers, there exists external marketing which sets promises to current and prospective accommodation customers. Finally between the employees and the customers, there exists interactive marketing. This kind of marketing is about keeping promises that Hilton Hotels have made to the customer. It also involves delivering quality service (Zeithaml & Bitner, 24). Hilton Hotels does not put so much concentration to the service that it offers its customers as it does the kind of interactions its accommodation employees and its customers have. It is through these interactions that Hilton’s customers are able to perceive its integrity. This interaction also offers its customers a basis to assess the value of the accommodation service and decide whether they would want to repeat a purchase of the same. Interactive marketing is the most important stage since this is where the customer gets the value they desire (Deighton & Shoemaker, Online) Use of technology contributes to interactive marketing. Hilton’s customers interact with technology and its service providers to establish relationships. The customer’s physical presence is not always compulsory as they can be able to get company’s promises on accommodation as well as book the rooms online. Use of technology is at the centre of the interaction between the management and the employees, the management and the customers as well as the employees and the customers. This has increased service quality in Hilton Hotels and has met its customer expectations. Other than technology, Hilton Hotel has embodied the service marketing mix. It takes into consideration the components of the traditional marketing mix which are; product (service offering), price, place (distribution) and promotions and other components; people, physical evidence and processes (Zeithml & Bitner, 23). The added components of the service mix are fully controlled by Hilton which ensures that accommodation marketing is focused on its customers. Understanding Customer Expectations Swati Sisodia says that, “Customer expectations are beliefs about service industry that function as standards or reference point used to judge performance” (21). Customers perceive the services offered in terms of its quality, value and customer satisfaction. The major task of the Services Marketing Department of Hilton Hotel is to understand its customers’ needs and expectations in order to offer excellent, customer-satisfying accommodation services. To fully satisfy customer expectations, Hilton Hotel marketers use market researches in order to know the sources of its customer expectations and what they require. In addition to that, a program to educate its customers should be put in place so that they can fully understand their role. Furthermore, the service marketers should seek to identify opinion leaders and influencers for this service and gear to concentrate marketing energies on them. Studies have established that the effectiveness in solving customer problems has a bearing in customer satisfaction and loyalty. Hilton Hotel’s services marketing management department must fully acknowledged this and hire more employees with skills and abilities to handle customer complaints. Service Quality Specifications Kasper et al explains that external marketing is the link between the organization and its customers. It is through this marketing that Hilton makes promises to its customers concerning the quality of accommodation they are bound to enjoy at Australia’s Hilton Hotels. The most important thing is to make promises that are realistic and accurate and which match the service that is actually provided. To ensure this the contact people should ensure they get feedback on how accurate the promises made during advertising and selling. The customers form expectations based on the marketing messages that are provided. Therefore external communication is very important. Through various media, Hilton hotels in Australia specify the kind of services the customer should expect. The most common one is the web; all the hotels have a website where the customers visits and are able to know the kind of accommodation they are to expect at Hilton. For example the website carries this message superimposed on a slide show of the Hotel’s best features, “Here’s to a great stay: relax and refresh, featuring premium amenities and a tranquil setting, each of our guest rooms is uniquely designed to be both smart and completely accommodating” (Hilton Hotel’s Website). Use of price also indicates the quality of service; the higher the price, the higher the quality of service. In addition, the promise of accessibility and availability makes the customer rate the quality of service highly. Other than that, Hilton’s brand reflects on the accommodation quality its customers expect. Its name projects value and integrity not only in Australia but also worldwide. Employee Performance Customers perceive the person delivering a service as the service (Martin, 165). This implies that Hilton’s service providers can change customer satisfaction level. The survival of any organization is dependent on the consistency in quality service performances. The most important aspect of employee performance is the interaction they have with Hilton customers. It is through this interactive marketing that customer relationships are established. The customer’s perceptions and expectations are met through the experience they get through Hilton’s employees. It would be right to say that the service marketing department at Hilton does not have as much contact with its accommodation customers compared to accommodation service providers. This alludes to the fact that the accommodation service providers are very important to the establishment and retention of relationships established with customers. Similarly, the loyalty of the customers is dependent on the experience they get in the course of these interactions. This means that the employee’s attitude and loyalty towards Hilton Hotels is very vital. To ensure this, Hilton ensures that only service-oriented employees are recruited and they are involved in the activities of the hotel. Hilton ensures that the accommodation provision employees have both skills and abilities to deliver its services to customer satisfaction. In addition, they are motivated to follow examples that are exemplified by the leadership (management). Just like there is external marketing between Hilton and its customers, there also exists internal marketing between Hilton and its employees. Hilton should not just make promises to its employees; rather it should ensure that there are mechanisms to deliver its promises. Hilton Hotels should fully realize that customer satisfaction is dependent on employee satisfaction when it comes to service provision. According to Strydom, creating change and retaining a consistency in high quality service delivery can only be achieved through the employees. “People are valuable assets to an organization. They should be therefore fully equipped to provide the best service to the external and internal customers.” (Strydom, 17). Personal selling; the most important thing is to carefully choose Holton Hotels’ customer contact person. Conclusion Service quality and evaluating how customer expectations of Hilton Hotels’ accommodation service is important to ensure that Hilton stays abreast in its service provision and overcome competition. Communication is important because like Strydom notes, “Service quality is profoundly dependent on the ability of customers to articulate their needs and the level of service demands” (14). Similarly, service quality is dependent on the provider’s ability and willingness to satisfy the already established customer needs and demands. Hilton Hotel has successfully put in place service control and measurement procedures by not only employing service-oriented people but also training them to meet and exceed its customers’ expectations in their service delivery. However the suggested strategies need to be implemented to heighten the quality of accommodation service. References Bell Martin, Tactical marketing and the process of Remixing in Marketing Services, J. H. Dolley and W. R. George ed, 1981, Chicago, American Marketing, 165. Deighton John and Shoemaker Stowe, Hilton HHonors Worldwide: Loyalty Wars, 2005, Havard Business School.www.mastermarketingdauphine.com/charge/promotion/Hilton.pdf Hilton Hotel website, www.hilton.com/en/about/index.html Kasper Hans, Heldsdingen Van, and Gabbot M, Services Marketing management a strategic perspective, 2nd ed, 2006, John Willey & Sons Limited, West Sussex. Sisoda Swati, Service marketing, Narsee Monjee Institute of Managament. Available at http://distance.nmims.edu/wp-content/themes/twentyten/ppt/SERVICES_MARKETING.pdf Strydom L, Chapter 2: Introduction to Service Marketing, 2004, online. 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