Section Three - Marketing Decisions - People, Process and Physical Environment Flashcards
Why is people so important to a business?
With services such as banking, hairdressing and dining out, the customer’s experience is highly dependent on the people dealing with them. E.g. an attentive waiter with a good knowledge of the menu will make a customer’s experience far more enjoyable. Sometimes the person is the only aspect of a service a customer sees - e.g. they might not be able to see the work done on their central heating pipes, but most customers would prefer to use a pleasant plumber who explains things well.
Why is it a benefit if employees are friendly, polite and knowledgeable?
People are more likely to buy the goods or service from them, promote them by word-of-mouth and return again and again - so it makes sense for businesses to focus on providing excellent customer service. The Internet makes this aspect really important as customers will often put a review of their experience online.
What is process?
How easy it is for customers to get what they want, when they want it.
What is the balance that businesses have to find?
Businesses have to decide how to balance maximising profits while keeping customers happy with their processes. E.g. in a call centre it is convenient for operators to put customers on hold during periods of high demand - however, customers can get annoyed if they are waiting for too long.
How can technology be used to improve processes?
Queue management technology is used by airports to direct customers to shorter queues and inform them how long their waiting time will be - known waits seem shorter than unknown waits.
Lots of e-tailers offer the option to pay through PayPal, meaning customers can use their address and payment details already linked to their PayPal account.
What things does physical environment include?
- Decor and cleanliness
- Website appearance
- Staff appearance
- Layout
- Practicality and safety
How is the people aspect handled in a luxury hotel compared to budget?
A luxury hotel will want to hire the best staff possible, and train them to an even higher standard. For example, they will want experienced, quality chefs. A budget hotel will hire staff who are less experienced or less qualified - this usually means that they will be paid a lower wage.
How is the process aspect handled in a luxury hotel compared to budget?
A luxury hotel will offer a high level of care throughout your visit. For example, staff will carry your bags to your room, clean and tidy daily, provide room service, etc.
A budget hotel might offer more of a no-frills service to keep their costs down.
How is the physical environment aspect handled in a luxury hotel compared to budget?
A luxury hotel will consider their physical location and decor very carefully to make sure it appeals to their target market. For example, they might choose a large country estate, or prime location in a city, and will have expensive decoration, whereas a budget hotel might be in a slightly less convenient location and might concentrate more on a clean, neutral look.
