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To cite this document:
Melissa A. Baker Vincent P. Magnini , (2016),"The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing", International Journal of
Contemporary Hospitality Management, Vol. 28 Iss 8 pp. 1510 - 1534
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IJCHM
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Received 14 January 2015
Revised 19 April 2015
27 August 2015
11 December 2015
Accepted 31 January 2016
Vincent P. Magnini
Department of Hospitality and Tourism Management, Virginia Tech,
Blacksburg, Virginia, USA
Abstract
Purpose This paper aims to synthesize the services marketing and hospitality marketing literature,
identify a gap in hospitality specific marketing models and develop the constituency model for
hospitality marketing.
Design/methodology/approach This study is a research through extensive review of relevant
literature in hospitality marketing and services marketing.
Findings This paper presents the constituency model of hospitality marketing which conceptualizes
hospitality marketing activities as being predominately either external marketing (links between
management and target market segments), interactional marketing (links between frontline providers
and target market segments) or internal marketing (links between management and frontline
providers). According to this model, each of these three areas has planning, implementation and control
functions.
Research limitations/implications Builds upon the hospitality literature by presenting the
constituency model.
Practical implications Practitioners, marketers and academics in the field of hospitality will find
this useful in guiding the future growth of hospitality marketing literature and related pedagogy. The
aim of this paper is to stimulate dialogue regarding the dominant paradigm in the field.
Originality/value This research examines the hospitality and services marketing and presents a
new model for hospitality marketing.
Keywords Hospitality services, Hospitality education, Services marketing
Paper type Research paper
International Journal of
Contemporary Hospitality
Management
Vol. 28 No. 8, 2016
pp. 1510-1534
Emerald Group Publishing Limited
0959-6119
DOI 10.1108/IJCHM-01-2015-0015
1. Introduction
Hospitality researchers are constantly involved with reviewing past research efforts
and suggesting future research directions. Categorizing and synthesizing extant
research is the first step towards integrating research endeavors and allowing new
bodies of research to be constructed (Runyan and Droge, 2008). The hospitality industry
is one of the worlds largest in terms of global revenue and employment opportunities
(Statista, 2014). While hospitality is a type of service, hospitality is unique enough to
warrant its own field of study. Despite some evidence as to the importance of services
marketing in the context of hospitality curriculums (Solnet et al., 2010), very little
research exists that aims to better use the content of services in hospitality management
and education (Solnet, 2012). It is argued that academics jump too readily into
hospitality as merely a form of services marketing, with little consideration for the true
relevance and implications of the concept of hospitality to the international hospitality
industry (Hemmington, 2007). There is a need for more research and conceptualization
regarding hospitality and marketing research (Morosan et al., 2014). It is therefore
important to examine how services marketing research, which is evolving at a far
greater pace, can inform hospitality marketing research. The dearth of domain specific
hospitality marketing theory is both evidence and cause of an increasing disconnect
between marketing research and the overall framework of hospitality marketing
research (Line and Runyan, 2012).
The conditions inherent in the hospitality industry present opportunities for
hospitality scholars to contribute significantly to theory development (Line and
Runyan, 2012). It is therefore important to examine how services marketing can better
inform hospitality marketing and vice versa. In other words, there is a need for a clear
model that more representatively encompasses hospitality marketing in reality and
practice that can be used by academics for theory and by hospitality students, managers
and firms in practice. The development of a hospitality comprehensive framework can
afford new opportunities and give a greater voice to hospitality marketing research.
Therefore, the purpose of this research is to first examine the evolution of both
services and hospitality marketing, highlighting the differences between the two, most
notably in the areas of internal and interactional marketing. Second, based upon the gap
in the theoretical literature, this research presents a more comprehensive hospitality
marketing model: the constituency model for hospitality marketing. The model presents
external marketing (links between management and target market segments),
interactional marketing (links between frontline providers and target market segments)
or internal marketing (links between management and frontline providers). The
external, interactional and marketing links each has planning, implementation and
control functions.
2. Evolution of services marketing
The development of service-oriented concepts and models began with Shostacks (1977)
seminal article promoting service marketing as an acceptable field of research that
separated it from product-based marketing. In other words, there was the development
of semi-controllable factors of people (employees, customers), physical evidence
(facility, uniforms, equipment) and process (flow of activities, level of customer
involvement), which were said to differentiate products from services marketing. This
then led to the identification of the four characteristics of services: intangibility,
heterogeneity, inseparability and perishability (Fisk et al., 1993). The seminal articles
Building a New Academic Field: The Case of Services Marketing (Berry and
Parasuraman, 1993) and Tracking the Evolution of the Services Marketing Literature
(Fisk et al., 1993) were the first to officially recognize services marketing as a
discipline.
Since then, there are other informative reviews of the services marketing literature.
Martin (1999) details both roots and themes in the services marketing literature. And
more recently, the conceptual article Whither Service Marketing: In Search of a new
Model for
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marketing
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Figure 1.
The services
marketing triangle
contact staff for all or part of the time the service is being performed (Gummesson, 2007).
The term interactive marketing to describe human interactions might be confused today
with the use of that term to describe electronic marketing efforts; thus, interactional
marketing might be more appropriate in a modern context. Finally, the linkage between
the firm (management) and customers is labeled external marketing. As such, external
marketing involves the communication of the firms offerings to potential customers
(Grnroos, 1996).
3. Evolution of hospitality marketing
Despite the connection between hospitality marketing and service marketing, to date,
there is no prior research that integrates service concepts, theories and principles into
the hospitality literature (Kandampully et al., 2014). Hospitality researchers face the
fundamental problem of how the epistemological aspects of the field can be developed
and strengthened as hospitality has been difficult to define (Taylor and Edgar, 1996). An
early definition of hospitality refers to the relationship between guest and host, the
interactivity between guest and host, the blend of tangible and intangible factors and the
host provides for the guests security, psychological and physiological comfort (King,
1995). More recently, hospitality was defined as a contemporaneous human exchange,
which is voluntarily entered into, designed to enhance the mutual wellbeing of the
parties concerned through the provision of accommodation, food and drink (Brotherton,
1999). Hospitality was further defined by Pizam and Shani (2009) as four approaches:
(1) professionalism;
(2) hospitableness;
(3) hospitality as an experience; and
(4) hospitality as a philosophy.
Professionalism focuses on understanding skills, attitudes and personal characteristics
of hospitality employees. Hospitableness refers to friendly service that emphasizes
welcoming behavior toward the customer. Incorporating performance elements such as
acting into customer service leads to hospitality as an experience. Fourth, hospitality
philosophy emphasizes kind service and generosity. While there is disagreement among
researchers as to the definition and discipline of hospitality, one central component that
is generally agreed upon, is that the key tenant of hospitality is the provision of genuine
hospitableness and hospitable experiences (Teng, 2011).
4. Hospitality pedagogy
Over the past few decades, the hospitality domain has spawned into journals and
research consortia. A knowledge domain is a particular field of study that creates a
common ground and a sense of development of a common identity by affirming its
purpose and value to members and stakeholders (Wenger et al., 2002). The evolution of
the hospitality domain is considered a major contribution to the knowledge,
advancement and distinction as a field (Jogaratnam et al., 2005). Hospitality is a field and
scholars impact and shape the research and practice in the hospitality industry (Hu and
Racherla, 2008). In addition, academia is a major driving force in setting the direction of
hospitality as a field. The core functions of academics to the hospitality field are to
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facilitate knowledge in the field and to provide ideas for innovations through research
and consulting (Ottenbacher et al., 2009).
This is especially relevant given that the number of hospitality programs has grown
rapidly in the USA, and they are currently facing increased competition to attract and
retain both undergraduate and graduate students. Cornell was once one of a few
academic options for students wanting to be managers within the hospitality industry.
Twenty years ago, there were approximately 50 universities that had undergraduate
programs. In 2008, there were eight schools offering PhDs and over 200 universities
offering majors in hospitality and tourism management (Stoller, 2008), and in 2014, there
were over 480 colleges offering degrees in hospitality management. In addition, there
were over 2,356 articles published in hospitality journals from 2010 to 2014 compared
with 476 from 2000 to 2004 (McKercher and Tung, 2015) demonstrating that hospitality
has developed into a recognized, mainstream field in its own right (McKercher and
Prideaux, 2014). Despite this, there is a lack of hospitality and tourism specific models.
In other words, the hospitality and tourism discipline still needs its own domain-specific
theories and models (Oh et al., 2004), and they should focus on the key characteristics of
the hospitality industry (Tang, 2014).
There is a dearth of conceptual service-related papers in the hospitality literature
(Kandampully et al., 2014), and more research is needed (Line and Runyan, 2012) as
conceptual articles play an important role in the knowledge development within a field
or discipline (Yadav, 2010). In particular, hospitality involves a much greater level of
interaction between frontline employees and guests. It is therefore interesting to note
that the hospitality marketing literature places a far lesser focus on internal and
interactional marketing components. Consider, for example, a 2010 article in the Cornell
Hospitality Quarterly titled Hospitality Marketing: A Retrospective Analysis
(1960-2010) and Predictions (2010-2020) (Dev et al., 2010). Nearly every study included
in the review, along with nearly every prediction for the future, pertained to the external
marketing topics. A more recent review Hospitality Marketing Research: Recent
Trends and Future Directions(Line and Runyan, 2012) does not place as heavy as an
emphasis on external marketing, but still does not afford internal and interactional
components as much attention as does the services marketing literature. Most recently,
Morosan et al. (2014) content-analyzed more than 1,700 hospitality marketing articles in
three of the leading hospitality journals over a span of 25 years. Like earlier reviews of
hospitality marketing research, the representation of internal and interactional
marketing topics is minimal in comparison to coverage in the services marketing
literature.
Given the results of the aforementioned studies, it is not unsurprising that a distinct
contrast currently exists between the content areas covered in hospitality marketing
textbooks and services marketing textbooks. Specifically, services marketing textbooks
contain much more coverage of internal marketing concepts (connections between
managerial behaviors and frontline employee performance) and interactional marketing
concepts (interactions between frontline employees actions/physical evidence factors
and customer responses) than do current hospitality marketing textbooks. This seems
counterintuitive given the very nature of hospitality. As such, this research uses
services marketing theories and principles to better inform hospitality marketing by
developing a more representative hospitality marketing model.
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External
Plan
Frontline Service
Markeng
Long-run
Providers
Management
Profits
Control
Implement
Figure 2.
The constituency
model of hospitality
marketing
Internal
Markeng
time for the right price, is a key illustration of the necessity of proper customer
segmentation in a hospitality context.
Third, the employees label on the services marketing triangle is changed to read
frontline service providers on the constituency model. Specifying frontline service
providers on the model helps illuminate the interactional nature of the linkage to the
target market segments. The global hospitality industry has changed the strategic and
operational landscape of the industry (Kandampully and Suhartanto, 2000) and
particularly the skill set need by hospitality employees especially frontline employees
(Bharwani and Jauhari, 2013). That is, even the original services marketing triangle
speaks to interactions in this link; thus, by nature, the employees represented on the
model would need to be front-line associates. Fourth, the firm label on the services
marketing triangle is changed to read management on the constituency model. The
purpose of this revised labeling is to circumvent confusion. That is, as frontline
providers are members of the firm, management might serve as a better
representation of the conceptual thought driving the model. Fifth, as the original
services marketing triangle existed pre-Internet, the term interactional has been
changed to interactional to more accurately represent hospitality marketing
interactions across platforms.
Finally, at the heart of the constituency model are long-run profits. The literature
indicates that, in general, businesses have the goal of managing their profits (wealth) in
the long term (Narver and Slater, 1999). While not necessarily inconsistent, there are a
number of ways for hospitality businesses to increase profits in the short-term at the
sacrifice of the long-term (e.g. cutting quality). For these reasons, it is necessary to
specify long-run profits in the constituency model. In the next sections, the planning,
implementation and control phases of the internal, interactional and external hospitality
marketing activities are discussed.
6. Internal marketing
Internal marketing is vital in the hospitality industry (Akroush et al., 2013) as firms
implement the marketing concept through frontline employees (Donavan et al., 2004).
Internal marketing is a set of employee-friendly managerial behaviors that have internal
and external consequences (Harrison-Walker, 2001) where human resource polices with
marketing can have beneficial impacts on employee behaviors, attitudes and
organizational outcomes (Bansal et al., 2001). In other words, internal marketing
involves research, communication and responses between levels of management and
line level employees (Lings, 2004). The human element in hospitality is critical to
organizational performance. Therefore, the academic literature needs to better
operationalize the relatedness of human resources, internal marketing and strategy
(Kusluvan et al., 2010). Hospitality organizations that embrace internal marketing
practices can have greater competitive advantage, profits and market share (OReilly
and Pfeffer, 2000). Only recently has internal marketing and branding gained
importance for both academics and practitioners in the hospitality industry (Erkmen
and Hancer, 2015). As such, the planning, implementation and control of the internal
marketing activities may be important in providing a hospitality firm with competitive
advantage.
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The literature also examines the inspirational role that management plays in
showing hospitality employees to deliver more hospitable service (Crick and Spencer,
2011). This may include management delegation and empowerment where frontline
employees serve as an extension of management and represent and communicate the
brand. For example, hospitality firms should hire frontline workers who feel
comfortable being empowered to make decisions because such empowerment expedites
decisions at the frontline and enhances the likelihood that the individual will
follow-through to make sure that the client is satisfied after a decision has been made
(Magnini and Ford, 2004). A sustainable competitive advantage often comes from an
outstanding depth in selected human skills, logistics capabilities and knowledge bases
that are specific to the mission of the hospitality firm. Management commitment to
hospitality though organizational support, empowerment and training will lead to
greater employee job satisfaction and higher quality service by frontline employees
(Crick and Spencer, 2011).
A fundamental difference between services marketing and hospitality marketing is
the needs of the customer (Hemmington, 2007). Customers have different needs and
expectations of service in different service industries. That is, the type of service desired
in banking is very different from the type of service desired in an upscale restaurant. In
many service environments, the needs are more functional, whereas in hospitality, the
needs are largely experiential. As the level of customization increases, it requires more
specialized attention and time. As customization is argued to be highly important to
customer satisfaction for hospitality marketing, the planning involved can be complex.
The more content there is in the customer interface, the more complicated it is for the
firm to manage the selection process (Grnroos, 2006); thus, the important need for an
organization to have an effective plan for internal marketing.
The implications of a hospitality specific marketing practice require a specific
purpose and processes for the marketing activities. In terms of hospitality internal
marketing, it points directly to the normative notions of investment in people (Lings and
Greenley, 2005) and the proper planning of communicating the organizations mission,
image and personality. While this has been noted in the literature, it has not been
incorporated in this capacity in current hospitality marketing pedagogy.
6.2 Internal marketing: implementation phase
In the constituency model, the implementation phase of internal marketing involves
managing the ability and motivation of the frontline providers so that they can excel in
their roles as marketing agents on the frontline. Evidently, there are scores of ways to
manage both ability and motivation, but research indicates that role ambiguity, role
conflict and work-family conflict are very common stressors in the hospitality sector
(Noe et al., 2010). As such, two-way communication also plays a key role in successful
hospitality marketing management. A competitive advantage for hospitality firms
stems from dynamic capabilities grounded in high performance routines operating
inside the firm, embedded in the firms processes and conditioned by its history. Internal
communication plays a pivotal role in maintaining and nurturing corporate culture
(Lovelock, 2000). As can be seen in Figure 2, all of the relationships in the constituency
model are bi-directional; thus, subordinate manager communication flow is equally
vital to manager subordinate communication flow. Research indicates that such
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Q7. How can our training, development and motivational practices be improved?
Q8. Related, did we meet our firms goals in each of these three areas?
7. Interactional marketing
A key tenant of hospitality is the provision of friendly and generous hospitality (Teng,
2011). Interactional marketing happens between the employees and the clients
(Grnroos, 1996) with a particular focus on interactivity, connectively, and ongoing
relationships (Vargo and Lusch, 2004). As Brotherton (1999) details, the emphasis on the
human exchange element is particularly relevant to the distinction of the hospitality
sector (Kandampully et al., 2014). As the main distinctive characteristic of hospitality is
the interactional relationship (Lashley, 2008; Hemmington, 2007) to gain competitive
advantage, frontline employees can be used as operant resources to co-create customer
experiences (Shaw et al., 2011). It is therefore critical to understand the competencies
required by frontline hospitality employees for effective guest engagement (Bharwani
and Jauhari, 2013). In other words, frontline employees should develop a level of
engagement with the role of host and with the guest that goes beyond what is traditional
for the service sector (Baum, 2006). In addition, with the acceptance and widespread use
of technology, the internet and social media, firms also need to consider information
technology in terms of customer interactions (Kandampully et al., 2015). And while
interactions are a key component for hospitality research, interactional marketing is
noticeable missing from hospitality marketing models and textbooks. In a sampling of
service marketing textbooks, interactional elements occurred on 925 pages compared
with only 54 pages in hospitality textbooks.
7.1 Interactional marketing: planning phase
In the constituency model, the planning phase of interactional marketing entails
preparing the service environment and the frontline provider for top-rate interactions.
Questions that might be asked in this phase may include, for example, does the frontline
provider have the verbal and non-verbal skills necessary to deliver exceptional service?
Or are the servicescape and atmospheric cues ready for service delivery?
Without including the interactions between the service provider and the customer
during the consumption process as an integrated part of marketing, successful
marketing cannot be implemented and realistic marketing models cannot be developed
(Grnroos, 2006). A company can influence perceptions of service quality, consumer
satisfaction and repeat purchase behavior by focusing on the interactions carried out by
the customer and the contact employee (Bowers et al., 1990). The design, coordination
and execution of the hospitality service (Pizam and Shani, 2009) greatly affects the
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experience (Teng, 2011). The customer contact and contact points, including customer
contact employees, have grown to include more interactional content, which the
constituency model depicts.
There is a clear need for an organizations culture to be oriented around customers
(Javalgi and Martin, 2007). Customer engagement behaviors go beyond transactions and
are defined as a customers behavioral manifestations that have a firm focus, beyond
repurchase, resulting from motivational drivers (Van Doorn et al., 2010). Hospitality
marketing should focus on the guest-host relationship as emotional bonds are developed
and experienced through interactions (Lugosi, 2008).
The heart of hospitality is in the service experiences created by the firm (Teng, 2011).
Therefore, the servicescape plays many strategic roles, especially in how customers
interact with the physical environment as part of the service. Some researchers argue
that the servicescape is one of the most important elements for a service organization
(Zeithaml et al., 2006) because the physical container affects the social interaction.
Therefore, the servicescape affects not only individual behaviors but also the nature and
quality of customer and employee interactions (Lovelock and Wirtz, 2011). Facility
layout is particularly important in hospitality where research shows it can influence
customer satisfaction, store performance and consumer behavior (Zeithaml et al., 2006).
Customers use the servicescape as an important quality proxy and once designed and
built, service environments are not easy to change (Lovelock and Wirtz, 2011) and
therefore require significant focus in planning the dcor, furnishings, special layout,
signage and ambient conditions (Bitner, 1990). A growing body of research that is
nested in the marketing and partially in the hospitality literature increasingly focuses
upon the importance of drawing upon each of the five senses in the servicescape
(Magnini and Parker, 2009; Zemke and Shoemaker, 2008). Doing so influences the affect
and behaviors of customers and frontline workers and also impacts the resulting
interactions between the two (Magnini and Parker, 2009; Zemke and Shoemaker, 2008).
Furthermore, only recently have service marketers included the social servicescape in
research (Kotler et al., 2014), and many aspects of the social servicescape have largely
been ignored in the literature (Line et al., 2015). This is especially critical given the
interactivity between customers and frontline employees in both the physical and social
servicescape.
7.2 Interactional marketing: implementation phase
The customer interactional process begins with the definition of the individual
customers needs, the development of a personalized solution, and the delivery of the
customized solution to the customer (Davis and Manrodt, 1996). This logic is critical to
success because the frontline service provider adjusts to the customers needs as a direct
result of the interaction (Rust and Chung, 2006). In other words, the organization
interacts with each customer to define their specific needs and then develops a solution
to meet the need (Davis and Manrodt, 1996). As such, it is critical to consider the personal
preferences of target market segments. Hospitality management should focus on
developing the best marketing and service strategies based on the guests specific needs
(Teng, 2011).
Hospitality consumers are more discerning, more demanding and more diverse
(Bharwani and Jauhari, 2013). Successful implementation requires adapting standard
service and creating a customized service that will appeal to the target market segment.
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8. External marketing
Anything that communicates to the customer before or after the service delivery can be
viewed as part of the external marketing function (Zeithaml and Bitner, 1996). External
marketing involves blending integrated marketing communication elements (e.g.
advertising, public relations and social media initiatives) in a mutually reinforcing
fashion. As previously stated, a fundamental difference between services marketing and
hospitality marketing is the needs of the customer (Hemmington, 2007) where the
experiences created by management and frontline providers lie at the heart of
hospitality (Teng, 2011).
8.1 External marketing: planning phase
In planning and developing the external marketing activities, the focus is not simply on
products, but the customers value creation process. As the main distinctive
characteristic of hospitality is the relationship between the guest and host (Lashley,
2008; Hemmington, 2007) to gain competitive advantage, frontline employees can be
used as operant resources to co-create customer experiences (Shaw et al., 2011). As such,
it is critical to consider the personal preferences of target market segments.
There is a potential for a mismatch between what is communicated through external
marketing and what is delivered in the hospitality setting. This can result in a gap
between expectations and perceptions (Oliver, 1997). Therefore, in planning external
marketing, integrated marketing communications, differentiation and segmentation are
critical to achieving long run profits. For example, a green marketing message may
appeal to all segments, but only some would actually be willing to pay more for such
initiatives (Baker et al., 2014; Chan, 2013).
Firms that disseminate information through multiple channels need to be certain that
customers receive unified messages and promises (Zeithaml et al., 2006). Through
communications, such as advertising, public relations and sales personnel, marketers
explain and promote the value proposition their firm is offering (Lovelock and Wirtz,
2011). Internet advertising, firm websites, third party websites and social media are
becoming increasingly more vital for integrated communication strategies. This is
especially true for many hospitality firms whose customers regularly post information
and reviews on third party websites such as TripAdvisor and Yelp. The relationship
quality encourages guests to spread positive word-of-mouth (Ariffin, 2013). External
marketing should be coordinated across venues to create consistent marketing promises
and is vital for hospitality services marketing education.
As competition intensifies in the hospitality sector, it is becoming increasingly more
important to differentiate products and services in a way that is meaningful to the
customer. According to the resource based view theory, a firm needs to develop a
sustainable competitive advantage in marketing and management (Barney, 1991). To
accomplish this objective, a firm must be able to identify and communicate their rare,
valuable and inimitable resources, which will then lead to long-run profits. Positioning
strategy deals with creating, communicating and maintaining distinctive differences
that will be noticed and valued by the customers with whom a firm would like to develop
long-term relationships (Lovelock and Wirtz, 2011) thereby receiving long-term profits.
It is argued that market orientation within a service domain has been a source of
competitive advantage and has made a direct link to firm performance (Javalgi and
Martin, 2007). For example, competing hotels differentiate themselves by offering
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enhanced services that add value to their core provisions (Ariffin and Maghzi, 2012) and
to their target customers.
It is also essential to understand target market segments and their exposure to
different media as well as consumers awareness of the product and their attitude
towards it. Planning external marketing should reflect an understanding of the service
product and how well prospective buyers can evaluate its characteristics in advance of
purchase (Lovelock and Wirtz, 2011). To plan and achieve these goals, external
marketing needs to identify who the target market is, what should be communicated,
how it should be communicated and where and when the communications need to occur.
8.2 External marketing: implementation phase
Successful external marketing involves more than simply providing hospitableness
(Pizam and Shani, 2009); it means collaborating with customers and being adaptive to
each customers unique and ever-changing needs (Vargo and Lusch, 2004). Specifically,
it requires implementing the planned external marketing initiatives of integrated
marketing communications and customer segmentation to achieve long run profits.
Timing is a key characteristic of hospitality demand, as both the service and the
demand are perishable, thus making it important to specifically manage timing (Rust
and Chung, 2006). When demand exceeds capacity for a specific time, then the
opportunity for a sale is lost. For example, a 100 room hotel can only sell those 100
rooms per night, even if the demand for that specific night is above 100. As such, much
research within the field of service has specifically applied revenue management
concepts (Kimes, 1989). The perishability of hospitality products requires that pricing
be adjusted based upon supply, demand and timing. Once the night has passed, a hotel
cannot sell that room for that night, nor can a restaurant fill more seats. This is another
specific difference between hospitality firms. As described by Kimes (1989), revenue
management is the process of allocating the right inventory to the right customer at the
right time, at the right place, with the objective of maximizing revenue.
Firms can also manage demand by the shaping of expectations of consumers (Rust and
Chung, 2006). The internet has influenced this in media such as blogs and the amount of
information provided and accessible to service driven consumers. The internet now allows
for customers to spread word-of-mouth more globally and therefore have the potential to
greatly impact a firms reputation and brand (Sparks and Browning, 2010). Examples
include both posting on online outlets such as Facebook and Twitter and also making
reviews on websites such as Trip advisor, Yelp and Urbansppon where customers post and
read product and service reviews.
The breadth of eWOM scope and the ease in accessing reviews can deeply affect a
firms performance and companies are increasingly seeking to understand the factors
that influence eWOM (Cantallops and Salvi, 2014). Furthermore, the advent of the
internet has opened up new possibilities for personal interaction with the customer and
customization of service to better suit customer needs (Rust and Chung, 2006). This
two-way communication allows for the ability to interact directly with the consumer by
customizing service offerings. This two-way customer communication can provide a
more accurate view of how preferences shift (Rust and Chung, 2006) and impact external
marketing initiatives over time.
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Q1. Did we reach the desired target audiences with our advertising initiatives?
Q2. Did we earn our intended return on investment (ROI) on our advertising
initiatives?
Q3. Did we reach the desired target audiences with our social media initiatives?
Q4. Did we earn our intended ROI on our social media initiatives?
Generally speaking, results in these areas can be analyzed in part through competitor
data to benchmark capture and occupancy rates in comparison to primary competitors.
Revenue management algorithms can also be evaluated in this phase as well. Revenue
management is unique to service firms because of the varying demand across time
periods. Finally, emerging hospitality thought has an increased focus on customer
lifetime value (Dev et al., 2010). Customer lifetime value and customer-profitability
analysis are of significant marketing significance and allow managers to analyze
external marketing policies (Karadag and Kim, 2006). Thus, did external marketing
initiatives attract consumer with high lifetime values for the firm.
9. Theoretical implications
The hospitality industry is one of the largest revenue generators in the world, one of the
largest employers in the world and has dedicated journals and an increasing number of
hospitality specific academic programs. As such, it is important to examine how services
marketing can inform hospitality marketing, research and pedagogy. Very little research
reviews and integrates the services marketing theories and principles into the hospitality
literature (Kandampully et al., 2014). The lack of hospitality specific marketing theory was
the impetus for developing the constituency model especially given the call for this type of
research. Many of the hospitality marketing textbooks focus largely on external marketing
concepts and slight over the interactional and internal marketing functions. However,
hospitality management can differ from other services in the high amount of hospitableness
and the high proportion of frontline employee interactions that require genuine care and
hospitableness. The literature supports that given the high human and hospitable
component that characterizes the hospitality industry that internal and interactional
marketing components need to be incorporated more clearly into the hospitality marketing
literature.
Researchers state that the conditions inherent in the hospitality industry present
opportunities for hospitality scholars to contribute to theory development (Line and
Runyan, 2012) and that there is a need for more research and conceptualization
regarding hospitality and marketing research. Therefore, given these gaps in the
hospitality marketing literature, the authors developed a more representative model for
hospitality marketing: the constituency model. The development of this model hopes to
provide academics and practitioners with a more comprehensive framework and to
progress hospitality specific marketing research and theory development.
1527
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2014). As such, future research is needed to seek to understand more fully, through both
quantitative and qualitative methods, the impacts that distinguish hospitality, such as
the emotional bonds between a guest and a host, and internal and external branding.
12. Conclusion
Based upon the gap between services marketing and hospitality marketing literature
and models, this research sought to build a new model for hospitality marketing. The
constituency model of hospitality marketing conceptualizes hospitality marketing
activities as internal, interactional and external. In addition, each activity incorporates
the functions of planning, implementation and control. We hope this model provides
benefit to hospitality researchers in theory development, students and academics in
hospitality pedagogy and to practitioners in the hospitality industry.
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Corresponding author
Vincent P. Magnini can be contacted at: magnini@vt.edu
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