Product quality, service, and price were the three factors identified as being major determinates of a customer's perception of value. Contrast the value formula you would use if A: You were interested in purchasing a lunch that you needed to consume in ten minutes and B: You wanted to enjoy a leisurely dinner with someone with whom you are romantically involved. Would the manner in which you evaluate value remain constant? What are the implications of you answer to RMs in the hospitality industry?
As a follow up, given the opportunity to eat at Masa Sushi. Where would you see the value in spending $400 per person?
The notion of value in both the cases is different. In the first case the value perceived by the customer is in value for money meal of reasonable quality delivered promptly. Here, the value is seen through good quality, prompt service and price paid for the meal. In the second case, the perception is entirely different, where the focus is solely on nurturing and romantic relationhip by providing it ample ground to fluorish in meaningful way. The person in case would never mind paying premium for the ambience, quality of service and an experience created by the environment that enhances the chances of the relationship getting stronger.
The RMs must target their customers through these differentiating factors that define their varying needs from hospitality industry and provide the customer exactly what he /she wants.
$400 per person is definitely not for the food. Besides good food, It includes service level, ambience and experience of the diner. The value in spending depends on the chances of a bigger desirable outcomes. For example, if such a dinner wins me a million dollar deal, or helps me to strengthen the romantic bond with my love interest, it is worth the cost. If it is just everyday eating chore, alone or with friends, it hardly has any value.
Product quality, service, and price were the three factors identified as being major determinates of a...