Service Quality in Marriott Corporation - Essay Example

Service Quality in Marriott Corporation Key Service Theories Service quality is generally viewed as the output of the service delivery system (Wakefield, 2001). In particular, it is the difference between expectations of service and perceptions of service actually received. Duff and Kenchand (1998) added that service quality refers to customers' appraisals of the service core (i.e. the provider of the service) or the entire service organisation. Wakefield (2001) supports this argument when he said that service quality can be reflected in both the manner and the location of the service delivery. Accordingly, clients often make inferences about service quality based upon tangible and intangible cues (i.e. the tangible and intangible aspects of the service quality) observed during interactions with the service firm (Wakefield, 2001). Tangible aspects of service quality include all that the client can see, touch, hear, and smell upon the delivery of the services, thus, it basically involves physical facilities, equipment, and appearance of employees (Wakefield, 2001; Duffy & Kenchand, 1998). Meanwhile, the intangible aspects of service quality comprise the manner by which services are delivered (Wakefield, 2001). An example of an intangible aspect of service quality is the service performance, which describes all aspects of the delivery of services that include: reliability (i.e. the ability to perform the required service dependably, accurately, and consistently, e.g. solving customer's problems, accurate billing and record keeping); responsiveness (i.e. the willingness of staff to provide prompt and attentive service; accordingly, it is important to make customers feel the immediacy of the management or the service employee in responding to what the customers need to know); assurance (i.e. ensuring that clients feel secure and safe when they provide confidential and/or personal information and winning their trust); and, empathy (i.e., the management or the service employee must see things from the vantage point of the client, e.g. being available to the client when needed, providing convenient hours, understanding specific client needs, giving personal attention, and keeping the client's best interests at heart) (Wakefield, 2001). According to Kotler and Armstrong (1998) service intangibility means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. Meanwhile, service variability is the quality of services depends on whom provides them as well as when, where, and how they are provided. Lastly, service perishability constitutes the services that cannot be stored for later sale or use. The perishability of services is not a problem when the demand is steady. However, when demand fluctuates, service firms often have difficult problems (Kotler & Armstrong, 1998). Service quality tends to focus more on the intangible aspects, and because intangible aspects don't involve any product, the quality of services is measured through the way it is being delivered by the service employee, which may either create satisfaction or disappointment on the part of the customer. Total Guest Satisfaction In high-contact systems customers can influence the time of demand, the exact nature of the service, and the quality of service (Lovelock & Young, 1979). If consumers somehow become better customers -- that is, more knowledgeable, participative, or productive -- the quality of the service experience will likely be enhanced for the customer and the organization (Bowers, Martin & Luker, 1990). Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock & Young, 1979; Reichheld & Sasser, 1990). Customers who actively participate in organizational activities can directly increase their personal satisfaction and perceptions of service quality (Bowers, Martin & Luker, 1990; Czepiel, 1990; Hessan and Whitely, 1996). There had been a number of strategies implemented by Mariott Corporation in order to practice quality customer service. From customer studies to the application of information technology, several international businesses have confirmed that putting quality into customer service results to positive outcomes. While the benefits of quality customer service have already been recognized, it is important to consider that quality customer service is not dependent on the quantity of trainings or seminars an organization undergoes but on the level of collaborative effort exerted. Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, Marriott management had shifted their focus on their clients or customers so as to stay successfully in business. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered. Rethinking and reformulating the organization on the other hand, entail the consideration of several factors such as various processes, technology, the environment as well as the success factors of people (Cohen & Moore, 2000). Hence, in order to bring out exceptional customer services within the company operations, the Mariott management employs fine-tuned organizational restructuring. Moreover, employing proactive customer commitment involves the consideration on culture and infrastructure (Lowenstein, 1997). The success of integrating quality in Mariott Corporation's customer services depends heavily on the management. While some company management send their employees to training, some managerial factors would have to be used as well. As discussed by Zeithaml (1990), the manner to which management train, motivate and recognized their employees results to a significant effect on the quality of customer service they deliver. The level of commitment the management provides for instance has a direct impact to the quality of customer service the company provides. According to Subroto (2003), it is a common mistake for most management to think that they are highly committed in servicing the customers with quality when in fact their commitment is only based on internal and technical viewpoints. Interestingly, although there is no consensus in the research community about the causal relationship of quality and satisfaction, it is commonly assumed that service quality leads to satisfied customers. In fact, early researchers (Tsang and Qu, 2000) had emphasised the link of service quality with customer satisfaction, which they argued to be the degree of fit between customer's expectations and perceptions of service. In the survey of Rowley (2003), it has been noted that quality, customer satisfaction, and identification of customer value were identified by their respondent companies as either important or very important. Mn, Min and Chung (2002) support this finding and argue that those companies that are perceived to have high quality of services and goods had higher market share, higher return on investment and asset turnover than companies with perceived low quality, therefore affecting the competitiveness of the company, long-term profitability and "repurchase intentions" of both existing and potential customers. Now, since service quality affects competitiveness of the company, long-term profitability and "repurchase intentions" of both existing and potential customers then simply put, service quality certainly affects customer satisfaction (Anderson & Fornell, 1994). On the other hand, Mainardi (1980) said that customer criteria determine the definition of quality and the variables that affect perceptions of quality, although these variables could accordingly with circumstance, experience, and time. Accordingly, the total perceived value of service comes from two sources: first, customers perceive value that originates from the service act itself; and second, customers perceive value that originates from the quality of the service act. Duffy and Kenchand's (1998) share this same perspective. To demonstrate this point, Duffy and Kenchand (1998) cited the case of customers leaving a restaurant or hotel, that is, before a customer leaves a restaurant or a hotel, they are typically asked if they are satisfied or not with the kind of service they received; if their answer is a "no", it is typically assumed that the service was poor. However, it is also noteworthy to consider direct service providers' (e.g., waitresses) recognition of the fact that at times, even the best service efforts they give are criticised because there are times that the customer's perceptions of the service are clouded by the customers' present state of mind, such as if they are in a bad mood or have had a disagreement with someone just before arriving at the restaurant (Duffy & Kenchand, 1998). Therefore, in practice, the influence of service quality on customer satisfaction is affected by other factors, one of which is the customers themselves (Duffy & Kenchand, 1998). Methods for Measuring Guest Satisfaction Customer satisfaction refers to the consumer's positive subjective evaluation of the outcomes and experiences associated with using or consuming the product or service. It refers to either a discrete, time-limited event or the entire time the service or product is experienced (Duffy & Kechand, 1998). Satisfaction occurs when the product has been able to meet or exceed the conceived expectations that the customer has (Padilla, 1996). Furthermore, customer satisfaction may also be considered as the measure of the high degree of quality of the product (Jacobs et al., 1998). Crosby and colleagues (2003) deemed that once a product or service has been delivered or sold, its quality is believed to have been established. In this light, owners of big business organizations operating in a competitive business environment are in constant look out at its competitors and the overall status and events in the industry. Customer satisfaction is the primary aim of marketing. Most enterprises ensure the best possible chance of attaining long-term stability and competitive standing through comptehensive customer analysis and implementation of marketing communication plans. Marketing makes the basic assumption that customer satisfaction should be the primary aim of the business. Such satisfaction can only be achieved and sustained through the provision of competitive products or services, at competitive prices (Spreng, MacKenzie & Olshavsky, 1996). It should focus on every aspect of marketing, not only on promotion and sales techniques, to persuade customers to buy but also on target market, marketing mix and the effective marketing strategy (Kotler & Armstrong, 2001) because successful marketing results in stronger products, happier customers, and bigger profits. Furthermore, because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today's ever increasing competitive environment (Lindenmann, 1999). Aside from having a strategic purpose, gaining customer loyalty is also a key corporate challenge today especially in this increasingly competitive and crowded marketplace because of the eventual profitability it will provide (Chow & Holden, 1997). Every business wants to have a regular customer base because customers dictate profits and how the customer is treated will reflect on whether the customers will remain loyal with the company or not. Fournier (1994) stressed that the relationship of consumers to certain brands are established through the individual's concept of oneself. However, the company can go a step further and make additional profits by cross-selling as well as save money from having to acquire new or replacement customers. The consumer, on the other hand, can also do the same, by demanding benefits from being a loyal customer that companies would certainly give to maintain them. Previous researches have concluded that satisfied consumers are more loyal to the product as compared to unsatisfied customers (Bailey & Schultz, 2000). Meanwhile, customers may remain loyal for a number of reasons and may not even be happy with the product or service (Ryan, Rayner & Morrison, 1999). Customer loyalty becomes evident when choices are made and actions taken by customers (Wansik, 2003). Total Quality Management Normally, great amount of time is consumed in the mere planning of the purchase orders of a particular business company. And since most of the time the transactions involve not only a single client or customer, especially in the case of huge product and service providers, business establishments deal with sub-suppliers with several forwarders from which a number of consolidations are exchanged. The workload and time that the inventory managers handle defines the proceeding business processes that follow and thus, predict and maintain the success and profit of the whole business organization. That is why, efficiency counts! The provision of quality customer service is a multi-faceted concept as a number of factors must be met by the business in order to achieve it. In order to integrate quality in service provision, it is important that the organization has the right skills, resources and values. As quality customer service is influenced by various factors, the involvement of both company management and the employees must be present. In this paper, it has been made clear that training alone is not sufficient for service quality. The commitment, leadership and adaptability of the management towards change are also important for quality service. The values and skills of the employees on the other hand, must be prioritized as well. They must be given enough empowerment to contribute effectively towards customer satisfaction. The importance of quality in customer service has been recognized by companies worldwide. Several major companies have applied prioritized quality in customer services, resulting to positive business outcome. Customer satisfaction, loyalty, employee satisfaction and profit growth are some of the main advantages of this business practice. In order to cope with the present business challenges, several businesses have implemented different strategies that will enhance their respective customer services. Consumer studies, trainings and application of information technology are some examples of the most commonly used strategies for customer services. Service delivery is an interactive and dynamic process that from the consumer's point of view is much more than a passive exchange of money for a particular service. Characteristics of services (e.g., intangibility, heterogeneity, simultaneity, and perishability) often require customers to be actively involved in helping to create the service value -- either by serving themselves (as in getting food in a buffet restaurant line or by pumping their own gas) or by cooperating and often working collaboratively with service personnel (as in settings such as hair salons, motels, universities, or lawyers' offices) (Chase, 1978). According to Kotler and Armstrong (1998) service intangibility means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. Meanwhile, service variability is the quality of services depends on whom provides them as well as when, where, and how they are provided. Lastly, service perishability constitutes the services that cannot be stored for later sale or use. Some doctors charge patients for missed appointments because the service value existed only at that point and disappeared when the patient did not show up. The perishability of services is not a problem when the demand is steady. However, when demand fluctuates, service firms often have difficult problems (Kotler & Armstrong, 1998). In high-contact systems customers can influence the time of demand, the exact nature of the service, and the quality of service (Lovelock & Young, 1979). If consumers somehow become better customers -- that is, more knowledgeable, participative, or productive -- the quality of the service experience will likely be enhanced for the customer and the organization (Bowers, Martin & Luker, 1990). Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock & Young, 1979; Reichheld & Sasser, 1990). Customers who actively participate in organizational activities can directly increase their personal satisfaction and perceptions of service quality (Bowers, Martin & Luker, 1990; Czepiel, 1990; Mills, Chase & Margulies, 1983; Solomon et al., 1985). Total Quality Management (TQM) is a planned procedure for satisfying internal and external customers and suppliers by integrating the business environment, continuous improvement, and come through with advancement, growth, and safeguarding the cycles while changing organizational culture. Furthermore, TQM is an array of management system throughout the organization, geared to ensure that the organization to continuously attain or surpass customer requirements. Total Quality Management is a philosophy of management that is driven by the constant attainment of customer satisfaction though the continuous improvement of all organizational processes (Robbins, 1998). It is a management philosophy that seeks to integrate all organizational functions such as marketing, finance, design, engineering, production, customer service, and others to focus on meeting customer needs and organizational objectives (Hashmi, 2000). The best product and service providers continuously update and upgrade their service deliveries in order to answer the demands of their customers. Customers have the ever-increasing demand on getting their hands into the products which can lead to change in business establishment if expectations are not met. Business firms invest on researches that will define their target customer groups that they believed they could serve best. Every business person is determined to know what kind of work they would and would not do for their customers and, in turn, they carefully learn how to fulfill the needs of each kind of customer in their target markets. Hessan and Whitely (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself (p. 14). Emotional Intelligence and Service Theories Also known as the value of receiving people wholeheartedly and treating them importantly, hospitality has been recognized as a desirable attitude in dealing with others, be it within the community or among neighboring countries. At present, the practice of being hospitable is not only applicable in entertaining others. In most businesses and corporations, particularly in tourism, hospitality management has been a valuable means of maximizing the return on investment. Such trend is perhaps attributable to the common conception that the value of attracting potential clients is equal in keeping existing ones. Hospitality industry is among the fastest growing economic sectors worldwide. In fact, the hospitality industry by itself is recognized as multi-billion dollar and still progressing industry (Flora, 1998). While this industry enables the provision of vast services for the clients, work opportunities are also diverse. Indeed, the provisions of the industry for the customers are as unlimited as its opportunities for employees. People are able to work is different areas of interest while still be in a job within the industry. At present, more workers are employed in service provision than in manufacturing, indicating the continuous growth of the hospitality industry. In fact, about eight out of ten workers in the United States are in various sectors of the service industry including education, entertainment, retail, transportation and health care. In the United States, seventy percent of the country's gross national product is covered by service industries. By 2012, it is expected that this percentage will increase to ninety percent (Microsoft Encarta Online, 2004). Likewise, hospitality industry is among the major economic forces in the UK as its enables growth and creation of job opportunities. The business has employed over 1.8 million workers who were distributed within 300,000 hospitality establishments, totaling to revenue generation of more than 64 billion. From these records, hospitality has indeed become one of the most competitive businesses in the world. The intense rivalry in the hotel industry is probable to carry on increasing (Greger and Peterson, 2000). Therefore, competition could bring about excess capability in the market. Moreover, hotel managers are challenged with deterioration in leisure and business travel, stern immediate, liquidity troubles, and intensifying business failure percentages (McMahon-Beattie et al., 1999). In this framework, continued existence and productivity are indispensable and the administration of revenue has developed into one manner to deal with this. Consequently, it is fundamental for executives to recognize where revenue is obtained from within their trade. References "Marketing". (2004). Microsoft Encarta Online Encyclopedia. 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