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Chapter 8 Involving the Guest: The Co-creation of Value

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Lourdes Itulid

on 11 September 2013

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Transcript of Chapter 8 Involving the Guest: The Co-creation of Value

Chapter 8 Involving the Guest: The Co-creation of Value
Learning Objectives
After reading this chapter, you should understand:
GUEST CO-CREATE VALUE
The guest-centric view is that the guestologist seeks to identify what the customers want and involves them in the co-creation of the experience, before, or after the actual experience itself.

During the hospitality experience, management can use a variety of strategies to engage the guests in the co-production of that experience so that they co-create quality and value.
THE GUEST CAN HELP!
The people providing many hospitality services,in contrast,are right out in the open where the guests can see and even interact with them.

The guests will take the primary role in co-producing the service themselves.
GUESTS AS QUASI-EMPLOYEES
Hospitality organizations know they must help manage the confusion,stress,and uncertainty guests can create for their employees while on their jobs.
THE ORGANIZATION DECIDES
Some hospitality organizations do not offer the guest any choice;they either design parts of the experience in ways that make guest participation impossible or structure it so that the guet must participate to some extent.

Organizations need to think through when and where to let guests co-produce their own experience and how much co-production there should be.

How, when, and why hospitality organnizations encourage or empower guests to help provide their own guest experiences.
Which strategies most effectively involve the guest in co-creating the experience.
What the advantages and disadvantages of guest involvement for the organization and guest.
Why hospitality organizations must sometimes “fire the guest” and how to do it.

1.Carefully and completely define the roles you want guests to play.
2.Make sure that guests know exactly what you expect them to do and that they are physically able, mentally prepared,and sufficiently skilled to do those tasks.
3.Once task performance is underway,evaluate the guest's ability and willingness to perform well.
A three-step startegy for managing quasi-employees:
Strategies for Involving the Guests
1.Guests a Unpaid Consultants
When the hospitality organization asks it guests what theey like or dislike about the guest experience,they become unpaid consultants and act as quality control inspectors.
2.Guests as Marketers
Everyone has asked a friend or colleague about a hospitality experience.

3.Guests as Part of Each Other's Experience
If you enjoy simply watching other guests,you may think of them as part of the service environment.
4.Guests as Co-producers
The most important way in which guests can participate,other than simply being there,is as active co-producers of the guest experience.

ADVANTAGES OF CO-PRODUCTION FOR THE ORGANIZATION
1.Co-production may reduce employee costs.
2. Co-production allows the organization to use the talents of its employees better.
ADVANTAGES OF CO-PRODUCTION FOR THE GUEST
1.It can decrease the opportunity for service failure while increasing the perception,and perhaps the actuality,of service quality.
2.The opportunity for self-service typically reduces the time required for service.
3.Self-service reduces the risk of unpleasant surprises for guests.
DISADVANTAGES OF CO-PRODUCTION FOR THE ORGANIZATION
1.Participation exposes the organization to legal risk.
2.The organization may have to spend extra money to train the customer contact employees so that they can add to their usual serving jobs the task of both recognizing when guests are ready to co-produce and when they are not and,then communicating effectively and easily about what guests are supposed to do.
THE HIGH COST OF FAILURE
While unsatisfactory or unsuccessful co-production can be a minor annoyance to to a restaurant patron, it can be disastrous if the cost of failure is great.
MOTIVATING GUESTS TO CO-PRODUCE
Guest can safely participate when they have the necessary knowledge, skills, and abilities to create the serrvice product, but guests must be motivated to be motivated in the processs.

THE GUEST AS A SUBSTITUTE FOR MANAGEMENT
Guests as Supervisors
Guests have more contact with the service personnel, speak with them more often, and see more of their job performance than the organization's supervisors do.
Guest as Motivators
Having guests participate in supervision can be highly motivating to employees when guest tell them in both verbal and nonverbal ways what a good job they are doing.
Guest as Supervisors and Trainers for Other Guests
Guest can also supervise and train each other.
We all learn from watching others, and with so many people in most hospitality situations on a typical day or occasion, we can learn what we're supposed to do to enjoy the experience by observing others.
DETERMINING WHEN GUEST PARTICIPATION MAKES SENSE
ENRICHING THE WAIT
Someimes, situations encouraging guest participation evolve when guest are required to wait for service.
CO-PRODUCING VALUE
While some hospitality situations require participation and some guests look fo opportunities to partcipate no matter what, almost everyone is happy to co-produce if it adds value to their experience.
TIME AND CONTROL
The feeling of how long something takes is as important to the guest as how long it actually takes.
The amount of control over the quality of experience that guest think they acquire by participating is as important in determining the value of participation as the actual control guest have.
CUTTING COST, INCREASING CAPACITY
From the organization's point of view, the most obvious reason to incorporate the guest the guest experience is to save money.
GUEST PARTICIPATION AS A DIFFERENTIATION STRATEGY
Organizations can also use gust participation as part of a product differentiation strategy.
BUILDING COMMITIMENT
A final reason for letting guest participate is to build guest commitment and repeat business.
THE BOTTOM LINE: COST VS. BENEFITS
The organization needs to sure, for both itself and the guest, that the benefits of participation outweigh the costs.
Advantages and Disadvantages of Guests Co-Producing Service

Inviting the guests to participate: Guidelines
Two strategies
1. They can let customers in their targeted market segment know that everyone entering the service setting must provide some of the service themselves.
2. Segment the service process so that guest entering the service setting can choose to participate or not.
FIRING THE GUEST
Unfortunately, despite the old saying that the customer is always right, all organizations know that the customer is sometimes wrong by any reasonable standard; certain extreme behaviors are unacceptable in any hospitality setting.
Firing Airline Passengers
Abrupt Firing
Subtle Firings
Maintaining Guest Dignity
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