Hospitality Marketing and Consumer Behavior

Creating Memorable Experiences

Vinnie Jauhari

• Publisher: Apple Academic Press
• Year: 2017
• ISBN:
  9781315341996
• Edition: 1
• Topic: Business
• Subtopic: Customer Relations
• Index: Business

Creating memories and joyous experiences for consumers is a key dimension affecting the profitability and growth of a hospitality firm. Drawing on global experiences, this new book looks at the diverse factors that create these positive experiences and provides insight into marketing and consumer behavior in the context of hospitality and tourism. The dynamics of emerging economies has been captured, and some lessons have been drawn from best practices across the globe.

CHAPTER 1

CONSUMER EXPERIENCES: AN INTRODUCTION

VINNIE JAUHARI^*

¹Director Education Advocacy, Microsoft Corporation India Pvt. Ltd.^†

^*E-mail: [email protected]

CONTENTS

Abstract

1.1 Aspects that Matter/Contribute to Experience

1.2 About the Book

Keywords

References

ABSTRACT

This chapter gives an introduction to the concept of consumer experience and how it could contribute to business growth and driving value to the customer. There is a context to consumer experience and the parameters contributing to satisfaction may vary. There are variables which are linked with culture and socio-economic aspects which could also impact consumers. Outstanding experiences can only be created through a combination of investments in people, organization structure, deployment of technology, resources among many other aspects. The chapter also gives an overview of themes covered in this book and provides insight into each of the paper. The sector span across hospitality, retail, aviation, and restaurants. The papers are a combination of empirical and conceptual framework and the contributions from the globe.

It is an age where experiences are becoming extremely important part of any consumer interface, be it face to face or digital. Memories are important and association with organizations must drive value. Technology is altering the way experiences are being created for consumers.

There are also experiences around everyday life which start from commuting to workplace, telecommunication, banking, dining, entertainment, sports, travel, education, and citizenship services. It is the quality of experiences which results in consumer satisfaction and engagement. It is around concern for people’s time, convenience, and meaningful engagements which also generate opportunities for revenue generation as well. Technology drives a lot of new ways of engaging with consumers and also providing access. Also, experiences are transcending the barriers of time and geography. Firms such as Flipkart and Amazon and their success in India demonstrate how conventional barriers for entrepreneurship can be broken and how a novelty of experience and convenience can lead to success in the marketplace.

When one thinks of experiences, there are a number of contexts to draw from. On one hand, it could be a Disneyland which powerfully recreates experiences from fables and stories taking one to the land of imagination and dreams. The whole experience is a powerful blend of creativity, engagement, and a mapping of service offering at a standardized level. It is a powerful engagement story, though one could argue the monotony of repetitiveness. There are also experiences in the arena of sports which draw an unparalleled euphoria and involvement. Gaming is also another such example. There is passion for teams and players and love for the sport that contributes to loyalty. The football clubs across the globe especially Europe, the love for cricket in India, and the League matches that attract big investments demonstrate a very distinct consumer experience for sports lovers. Also, there may be very ordinary engagements around consumption of food through home delivery or online channels which demonstrate a very different kind of consumer experience where value of money, timeliness, and convenience elements may be more important considerations in consumer interface. Hence, there is a spectrum of values on which consumer experience can be assessed and the value drivers may be very distinct for different segments.

Experience has many facets which vary with the context in which they are being created. There is no standard form, but some of the outlying principles may be common such as consumer orientation, understanding of value drivers, keeping up the delivery promise, innovation, and excellence, among other aspects. To calibrate an experience, the context in which it is based needs to be understood. Multiple scenarios can be looked at for understanding the consumer experience. Some of these are enumerated below.

1. Typology

Consumer experiences and their understanding may be widely different when the following come into play:

a. Culture background

b. Socioeconomic factors

c. Geography

The demand–supply dynamics play an important role. When the demand outstrips the supply, maintaining a consumer experience in that context is a very different ballgame. Whether it is accommodation, food, travel experience, entertainment. However, charging premium or different prices comes in through differentiated consumer experience. In India, despite the lags in standards in Railway experiences, yet it is so hard to get tickets during peak seasons. Here, convenience far outweighs the experience element. However, consumers would happily pay for a differentiated experience if the supplier charges higher amount of money.

Chowdhury (2009) in his study of consumer experience in the context of banking industry discussed about the differences in dimensions of consumer experience. First, there are two dimensions of discrimination between the levels of customer satisfaction. The first dimension is typified by work culture and fulfillment of expectations, which may be indicative of relational qualities. The second dimension is characterized by quality service and customers’ loyalty. The consumers of first generation are a delighted lot. The consumers of Grameen Banks are high on loyalty, and their perceptions on quality also vary.

Consumer aspirations may also vary with the segment to which they belong. However, consistency in promise/offering is something which every consumer expects.

The cultural background impacts perceptions of experience. Warmth, going beyond the call of duty are some of the expectations in India and when guests visit international destinations, the expectations are also at the same level. However, cultural experiences vary, and despite paying a premium, the experience may still not have the warmth.

The experience also vastly differs with the ability to pay, and the expectations also vary with what one is willing to pay.

2. Engagement aspects

These also vary depending on the context of a service being consumed. The value drivers may be different for different kinds of services.

• Value for money: Consumers staying in the budget hotels have limited expectations, but if a brand is able to offer hygiene with good food and convenience elements, the experience would have to be created which brings out value for money proposition.

• Premium experience: Here, the expectations are very high and consumers must feel delighted for the investments that they are making. Fun, surprise, premium, and uniqueness, coupled with staff that helps delivers the experience, would be important elements.

• Fulfilling a unique need: This could be a scenario such as a religious/pilgrimage visit or a visit for wellness purpose. The key here is the availability of a competent resource and everything else is weaved around it. If the therapist is incompetent, all other luxuries would have no meaning around the same.

3. New products/services

There are many new products and services which have been launched. The technology enables development of many new services and products. Whether it is WhatsApp or Skype, all exemplify simplicity of experience and convenience. The ability to share free data and images has led to WhatsApp being deployed and used in multiple scenarios. The newness of experience is also very helpful. For instance, a wide spectrum of educators across the globe use tools such as Skype to create collaborative scenarios for their students. Mystery Skype is used by many primary schools to develop knowledge about countries across geographies. The deployment of geographic information system (GIS)-based navigation services for even tourism can have immense applications. One of the largest growing segments in India is food delivery through online channels.

4. Simplicity of experiences

The ease of going through an experience is very important. A visit to a monument or a tourist place which is facilitated by easy booking and access and also paying a premium for a faster access could be important to some consumers. Anything which is complex and requires a lot of effort to consume a service will never be able to build the marketplace. The success of many services such as MakeMyTrip or Yatra, Expedia, http://Hotels.com is the ability to create comparisons and offer value services to consumers. These online companies and portals have redefined the dynamics of the business and have been disruptive in their approach. Their success lies in redefining consumer value and simplifying their lives while making choices which suit their requirements.

5. Innovation

The space tourism is a novel concept where consumers have not undertaken an experience before, but it would entail training and also insurance as it would be a new ballgame altogether. There are consumers who are willing to adapt to this novel situation. Also, whether it is about cultural extravaganza or going through culinary tours in a country, a newness of experience is always welcome. Wellness trips also come in this category where an experience is taken beyond the realms of accommodation and culinary journeys.

The price paid by the consumer also has a bearing on their expectations. Higher investment raises expectations on an experience being truly exceptional. At lower investments, expectations are also reasonable. For flexibility and entertainment context, the experience expectations may be very different.

6. Emotional bonding

Sometimes there are emotional values attached with a visit. This may be a trip back to a native place or a heritage or spiritual journey. The elements of nostalgia and values attached to the visit may far outweigh the logical dimensions in such a case.

7. Technological aspect

Transformations in technology have led to enhanced contributions and many new products and services. Technology has enabled emergence of many new forms of entrepreneurship and also simplified the access to the services.

The online availability of product offerings and also convenience aspect have a huge influence on consumer buying patterns.

1.1 ASPECTS THAT MATTER/CONTRIBUTE TO EXPERIENCE

There is a lot of evidence on aspects that influence customer experience. These factors are related to the following:

• Employee skills

• Processes and systems

• Concept and offerings

• Hygiene elements

• Desirable demand characteristics

Mather (1993) talks about the market conditions. He discusses the role of competition, customer buying habits, seasonality influences, and so forth. Also, the dynamism caused by the marketer or the competition initiated actions.

1.2 ABOUT THE BOOK

This book is an attempt to provide insights on various dimensions that contribute to consumer experience. This book provides insights into aspects that could contribute to better engagement with consumers. It brings in multiple insights from various segments such as restaurants, food firms, and retailing. It also brings in perspectives on experience elements and how frontline staff in context of hospitality industry can drive more engaged experiences. It brings in dimensions such as consumer behavior, pricing strategies, and sustainability to reach out to consumers. Aspects around technology and social media are also covered in the book.

Bharwani and Jauhari (2015) in their work “Creating Memorable Customer Experiences – Insights From Hospitality Sector” have delved upon the role of competencies in contributing to consumer experience, especially in the context of frontline staff.

The purpose of this paper is to identify and map competencies required by frontline employees to enhance guest experience in the hospitality industry, in the context of an emerging experience economy. This work is based on secondary research through extensive review of relevant literature in the area of experience economy and hospitality management. This study proposes a new construct of “hospitality intelligence” (HI) encompassing mainly emotional intelligence (comprising interpersonal intelligence and intrapersonal intelligence), cultural intelligence, and hospitality experiential intelligence dimensions. Practitioners and human resource (HR) professionals in the field of hospitality would find the HI construct useful in recruiting and training frontline employees, while educationists could use the findings of this study in designing curricula and pedagogical interventions for developing the right skill set for the hospitality industry. This study proposes a competencies framework and develops a construct of HI required by frontline employees in the hospitality industry to elevate guest experience from a simple interaction to a memorable experience.

Kular (2015) in her work “Creating Memorable Consumer Experiences: Insights from Hospitality and Tourism Industry” brings in insights from quality perspective on consumer experience.

This paper explores the concept of consumer experiences which appeals to the emotions, dreams, and desires as opposed to the functionality or utility of hospitality services. The advancement of technology has generated awareness and information for the consumer and has provided access to unlimited possibilities. The expectations of consumers have risen and service quality and reliability are taken for granted. The role of the consumer has changed from passive audience to an active participant in the service delivery process. The management of services through theatrical performance with the consumer as the star leading to the cocreation of the memorable experience is the differentiator in the competitive hospitality industry. The physical surroundings and the ambience of the place stimulates the five senses of taste, touch, sight, sound, and smell and are an integral part of the experience. The values, attitudes, and beliefs of the consumer are personal and they make the experience unique for each customer. The literature has been reviewed to arrive at managerial implications. The insights from emerging economies have been incorporated to illustrate the creation of memorable consumer experiences.

Herjanto and Gaur (2015) in their work “Creating Memorable Experiences: Lessons from World’s Top 10 Hotels” bring in global perspectives on consumer experience.

The aim of this study is to investigate and identify the key themes that help create positive memorable experiences for hotel customers. This study is qualitative in nature and employs the thematic analyses technique. First, an extensive review of current literature is carried out to understand the factors that contribute to the creation of positive memorable experiences for hotel customers. An initial thematic map is developed based on this. A sample of the world’s top 10 hotels is chosen based on TripAdvisor’s “2014 Travellers Choice – Top 25 Hotels in the World” report. A total of 248 reviews and feedback (indic...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• List of Contributors
• List of Abbreviations
• Advances in Hospitality and Tourism Book Series
• About the Series Editor
• Preface
• 1. Consumer Experiences: An Introduction
• Part I: Perspectives on Customer Experience.
• Part II: Sector Insights
• Part III: Value Drivers: HR Competencies
• Part IV: Quality Aspects
• Part V: Pricing
• Part VI: Technology
• Part VII: Social Media
• Index