Service Excellence in Tourism and Hospitality: Insights from Asia (Tourism, Hospitality & Event Management) 3030576930, 9783030576936

Citation preview

Tourism, Hospitality & Event Management

K. Thirumaran Dirk Klimkeit Chun Meng Tang  Editors

Service Excellence in Tourism and Hospitality Insights from Asia

Tourism, Hospitality & Event Management

This book series covers all topics relevant in the tourism, hospitality and event industries. It includes destination management and related aspects of the travel and mobility industries as well as effects from developments in the information and communication technologies. “Tourism, Hospitality & Event Management” embraces books both for professionals and scholars, and explicitly includes undergraduate and advanced texts for students. In this setting the book series reflects the close connection between research, teaching and practice in tourism research and tourism management and the related fields.

More information about this series at http://www.springer.com/series/15444

K. Thirumaran • Dirk Klimkeit • Chun Meng Tang Editors

Service Excellence in Tourism and Hospitality Insights from Asia

Editors K. Thirumaran JCU Singapore Business School James Cook University Singapore Singapore, Singapore

Dirk Klimkeit Center of Service Management Studies Baden-Wuerttemberg Cooperative State University (DHBW) Stuttgart Stuttgart, Germany

Chun Meng Tang JCU Singapore Business School James Cook University Singapore Singapore, Singapore

ISSN 2510-4993 ISSN 2510-5000 (electronic) Tourism, Hospitality & Event Management ISBN 978-3-030-57693-6 ISBN 978-3-030-57694-3 (eBook) https://doi.org/10.1007/978-3-030-57694-3 © Springer Nature Switzerland AG 2021 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Foreword

Service excellence is the linchpin of the Asian tourism industry that most of us struggle to examine in terms of what and how companies do to deliver a high level of service excellence. It is a delight to commend the editors and the expert chapter contributors for taking up the topic in this edited book on Service Excellence in Tourism and Hospitality. This book offers significant tools and valuable insights to industry practitioners, policy makers, hospitality researchers, and students as it shares best practices as well as challenges on how the Asian tourism industry can strive toward service excellence. And for that I highly recommend this book. Service Excellence in Tourism and Hospitality is a book with a mission, not just to spread the idea and know-how, but also to fully embrace the potential of best practices and approachable examples intended to help you gain a deeper understanding of Asian hospitality experiences - get ready to learn! Sokha Siem Reap Resort & Convention Center, Sokha Palace Siem Reap Hotel, Sokha Angkor Resort, Krong Siem Reap, Cambodia

Hang Vannak

v

Acknowledgments

Assoc. Prof. Vanita Patil Gaude, Goa University India. Asst. Prof. Snigdah Singh, Amity University Uttar Pradesh, India. Baba & Nyonya Heritage Museum, Malaysia. Center for International Trade and Business in Asia, James Cook University Singapore. Dr. Bona Kim, Singapore Institute of Technology. Dr. Choon Ling Kwek, Tunku Abdul Rahman University College, Malaysia. Dr. Eva Wei Lee Lim, UCSI University, Malaysia. Dr. Kai Wah Hen, Universiti Tunku Abdul Rahman, Malaysia. Dr. Lukas Christian Husa, University of Vienna, Austria. Dr. Masood Khodadadi, University of the West of Scotland, UK. Dr. Nimrod Delante, James Cook University Singapore. Dr. Simona Azzali, James Cook University Singapore. Dr. Teck Chai Lau, Universiti Tunku Abdul Rahman, Malaysia. Europe & Indian Teams, Marketing Department James Cook University Singapore. Hang Tuah Center, Malaysia. International Office, DHBW Stuttgart, Germany. Melaka Tropical Fruit Farm, Malaysia. Mr. Chris Khoo, Swiss-Garden Hotel Melaka, Malaysia. Mr. Christian Rauscher, Springer Nature, Germany. Mr. Constantin Pietsch, Germany. Mr. Daniel B., Quality Proofreading UK. Mr. Felix Kaiser, Germany. Mr. Hannes Eisele, Germany. Mr. Jimmy Leong, Tourist Guide, Malaysia. Mr. Ooi Peng Ee, TTG Global Commerce & Development, Singapore. Mr. Raj, A’Famosa Resort, Malaysia. Mr. Simon Yip, Silversea Cruises, Singapore. Mr. William Lew, Hotel Boss, Singapore. Ms. Anica Müller, Germany. vii

viii

Ms. Dana Held, Germany. Ms. Gerardine McDonough, James Cook University Singapore. Ms. Hanitah A. Bakar, Melaka River Cruise, Malaysia. Ms. Jessica Muenst, Germany. Ms. Lisa Tan, Legoland Malaysia Resort, Malaysia. Ms. Luisa Kranhold, Germany. Ms. Melissa Tan, A’Famosa Resort, Malaysia. Ms. Nadja Bukschat, Germany. Ms. Pamela Wildheart, James Cook University Singapore. Ms. Shinn Teo, Ecole Hoteliere de Lausanne, Singapore. Ms. Sujatha Chakkala, SpringerNature, India. Ms. Venny Tan, Diamond Coach Singapore. Ms. Virginia Wu, James Cook University Singapore. Office of the Faculty of Business, DHBW Stuttgart, Germany. Prof. Abhishek Bhati, James Cook University Singapore. Prof. Chris Rudd OBE, James Cook University Singapore. Prof. Dr. Anja Brittner-Widmann, DHBW Ravensburg, Germany. Prof. Dr. Armin Müller, DHBW Ravensburg, Germany. The Tricycle Drivers of Melaka, Malaysia. Tourism Studies Group, James Cook University Singapore.

Acknowledgments

Contents

Introduction: Service Excellence in Asian Tourism and Hospitality . . . . Dirk Klimkeit, Chun Meng Tang, and K. Thirumaran Part I

Designing the Service

Service Design of Franchise and Independent Japanese Restaurants in Ho Chi Minh City, Vietnam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thuc Thi Mai Doan Do Creating Excellent Guest Experiences: Servicescape and Processes . . . . Shubhojit Bagchi, Jiachen He, Christopher Yan Fun Chen, Min Zhang, and Abhishek Bhati Managing Customer Expectations: A Study of Two Four-Star Hotels in Malaysia and Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sriram Suryanarayanan, Shwetha Rani Srinivasan, Wenxin Lin, Linxin Wang, and Jagdeep Kaur Sabharwal Part II

1

11 27

41

Managing Customer-Oriented Operations

Measuring Customer Delight in Tourism and Hospitality Operations: Findings from Singapore and Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . Gabriela Maier Tolic, Dirk Klimkeit, and Alexander Dingeldey

57

Providing Personalized Service Excellence: Findings from Tourism and Hospitality Businesses in Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Celina Greiner and Sandra Goh

73

Generation Z’s Perspective on Tourists’ Knowledge Sharing and Service Excellence in Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mcxin Tee and Lee Yen Chaw

89

ix

x

Part III

Contents

Leveraging Digital Technology

Τwo to Tango: Entrepreneurs and Robots’ Users in Hospitality Service Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Androniki Kavoura Achieving Positive Hospitality Experiences through Technology: Findings from Singapore and Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . 133 Melina Weitzer and Valentin Weislämle E-Service Quality: Evaluation of Tourism Websites . . . . . . . . . . . . . . . . 149 Zahra Pourabedin Part IV

Managing Resources

Hospitality and Tourism Management: Adopting Lean Six Sigma, Achieving Service Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Sérafin Fiala and K. Thirumaran Shifting Paradigms in Human Resource Management while Striving for Service Excellence in the Tourism Industry . . . . . . . . . . . . . . . . . . . 177 Ruchi Sharma and Zilmiyah Kamble Towards Service Excellence: The Zone of Tolerance for Hospitality and Tourism Education in Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Kashif Hussain, Rupam Konar, Pradeep Kumar Nair, and Neethiahnanthan Ari Ragavan Conclusion: The Future of Service Excellence in Asia . . . . . . . . . . . . . . . 217 Chun Meng Tang, Dirk Klimkeit, and K. Thirumaran

About the Authors

Abhishek Bhati Prof. Abhishek Bhati investigates resilience planning in tourism, sustainable development of cities, and scholarship of learning and teaching. In particular, he is interested in technology and the role it has as a catalyst for tourism industry changes, “Smart City” as a mechanism for future sustainable development, and the need for tourism to deliver the Sustainable Development Goals (SDGs) set by the United Nations (UN). His research projects have contributed to the development of a set of intervention strategies to address vandalism at visitor attractions, informed Thailand’s National Research Council’s position paper on the review of tourism police in Bangkok, and enabled the capability of numerous higher education institutions to enhance student experience and graduate global citizenship. Alexander Dingeldey Prof. Dr. Alexander Dingeldey studied business and applied computer science in Munich and Regensburg. As a strategy business consultant, he has done projects with clients across the tourism value chain and key players in the German tourism industry. Since 2014, he is program coordinator for tourism specializing in distribution and transport at the Baden-Wuerttemberg Cooperative State University (DHBW) in Ravensburg. Androniki Kavoura Prof. Androniki Kavoura specializes in communication and culture, and her PhD has been funded by the Greek States Scholarships Foundation. Her research interests include social media, branding, tourism marketing, and culture. She is editor in chief of the International Conference on Strategic Innovative Marketing and Tourism (ICSIMAT) under the auspices of more than 50 universities worldwide. Her scientific achievements include participation in the editorial board of international journals, over 1200 citations in scientific publications, and co-chairing and participation in scientific committees at international conferences and journals. She is coordinating interinstitutional cooperation with many universities globally under ERASMUS+ and represents her university in research projects.

xi

xii

About the Authors

Celina Greiner Ms. Celina Greiner is a master’s student (Master of Arts and Master of Science) currently undertaking the program International Business and Law at the Management Center Innsbruck (MCI) and Edinburgh Napier University, UK. She was part of the study group who analyzed aspects of tourism and hospitality in different facilities in Malaysia and Singapore. This was undertaken through the Integration Seminar initiated by Prof. Klimkeit in the Bachelor’s Program “Service Management - Consulting & Services” at DHBW Stuttgart. Celina is currently exploring the cultural values in companies as well as the development of a maturity model measuring the degree of agility in companies. Christopher Yan Fun Chen Mr. Christopher Yan Fun Chen graduated with a master’s degree from James Cook University Singapore. Chun Meng Tang Dr. Chun Meng Tang has actively conducted research in business information systems. His major research areas include IS evaluation, strategic IS, and IS business alignment. He has received research grants, published journal papers, conference papers, and book chapters, as well as edited various books. Dirk Klimkeit Prof. Dr. Dirk Klimkeit studied anthropology and economics at the University of Cologne, Germany, and University of Kent, UK. He holds an MBA from Warwick Business School, UK, and a PhD in business administration from Leuphana University, Germany. He spent 16 years in international roles in the practice, most of which at a Big Four accounting firm. Since 2014, he has been holding a professorship in management at the Center of Service Management Studies of Baden-Wuerttemberg Cooperative State University (DHBW) Stuttgart. In 2019, he collaborated in a study tour about service excellence in tourism and hospitality in Singapore and Malaysia with James Cook University Singapore. Gabriela Maier Tolic Ms. Gabriela Maier Tolic took part in a study tour to Singapore and Malaysia on the subject of service excellence in tourism and hospitality jointly organized by DHBW Stuttgart and James Cook University Singapore. She holds a bachelor’s degree in the field of service management - consulting and services. As a dual citizen of Germany and Croatia, her interest in international matters has always been strong. Currently, Gabriela is pursuing a master’s degree in International Relations at Charles University, Prague, Czech Republic. Jagdeep Kaur Sabharwal Dr. Jagdeep Kaur Sabharwal holds a PhD in social psychology. She is presently working as a lecturer in psychology at James Cook University Singapore. As well as teaching, Jagdeep has supervised multiple postgraduate and undergraduate research projects. Her research focuses on the measurement of academic well-being, social, relational, and cultural influences on wellbeing; stress management and mindfulness; burnout; psychosocial gerontology; and intergroup processes.

About the Authors

xiii

Jiachen He Mr. Jiachen graduated with a master’s degree from James Cook University Singapore. He is currently working at Siemens Medical Instruments in China, responsible for after-sales strategic planning. K. Thirumaran Dr. K Thirumaran holds a PhD from the National University of Singapore. He is currently the Academic Head for JCU Singapore Business School where he specializes in tourism and hospitality management. Thiru coined the term “affinity tourism.” Affinity tourism refers to the propensity of guests to partake in the “familiar” and “similar” cultural experiences to those of their hosts. His varied research interests are primarily located in luxury, cultural, and transformational tourism. Kashif Hussain Prof. Dr. Kashif Hussain is the Director of Research for the Faculty of Social Sciences and Leisure Management at Taylor’s University in Malaysia. Lee Yen Chaw Dr. Lee Yen Chaw is an assistant professor at the Department of Management Studies in the Faculty of Business, UCSI University. Her research interests include tourism, blended learning practices for university students, mobile technology, and contemporary management. Linxin Wang Ms. Linxin Wang graduated with a master’s degree from James Cook University Singapore. Mcxin Tee Dr. Mcxin Tee is a lecturer at the Department of Management Studies in the Faculty of Business, UCSI University. Her research interests include knowledge management, green knowledge sharing, and environmental knowledge management in sustainable development. Melina Weitzer Ms. Melina Weitzer is currently undertaking a master’s degree in business administration at Offenburg University of Applied Sciences (Hochschule Offenburg) with a focus on business informatics and E-commerce. She was part of the Integration Seminar initiated by Prof. Klimkeit at DHBW Stuttgart. The Integration Seminar aimed to analyze different facilities in the tourism and hospitality industry in Singapore and Malaysia. Melina focuses on research in digitization projects in a leading German tech and media company. Min Zhang Ms. Min Zhang graduated with a master’s degree from James Cook University Singapore. She is currently working with Archer Daniels Midland in China maintaining good government relations for business operations in Tianjin and Beijing. Neethiahnanthan Ari Ragavan Prof. Dr. Neethiahnanthan Ari Ragavan is the Executive Dean for the Faculty of Social Sciences and Leisure Management at Taylor’s University in Malaysia.

xiv

About the Authors

Pradeep Kumar Nair Prof. Dr. Pradeep Nair is the Deputy Vice-Chancellor of Taylor’s University in Malaysia. Ruchi Sharma Dr. Ruchi Sharma is presently working as a professor in Jagran Lakecity University, Bhopal, India. She has rich experience as an academician, administrator, and social worker with national, international, voluntary, and non-governmental organizations. She holds a doctorate and postgraduate degree in sociology and social work with a Postgraduate Diploma in Human Resource Development. She has presented and published papers in national and international seminars, conferences, and journals. She has been involved in international volunteering projects. Rupam Konar Dr. Rupam Konar is a senior lecturer for the School of Hospitality, Tourism and Events, Faculty of Social Sciences and Leisure Management, at Taylor’s University in Malaysia. Sandra Goh Dr. Sandra Goh is the program leader of Bachelor of Arts Event Management and events and tourism lecturer at the Auckland University of Technology in New Zealand. Her recent project with James Cook University Singapore involves an investigation of readiness of travel suppliers in Singapore and New Zealand in terms of providing transformational travel. Her research interests include event tourism, event travel careers, serious leisure, social worlds, creative placemaking, and creative research methodologies. Sérafin Fiala Mr. Sérafin Fiala holds a bachelor’s degree in business administration with a major in service and logistics management from Baden-Wuerttemberg Cooperative State University Stuttgart. He hopes to complete his MSc in supply chain and lean management from Toulouse Business School and IMT Mines Albi in 2021. His research interests involve the potential of Lean Six Sigma for international organizations and governmental operations. Shubhojit Bagchi Mr. Shubhojit Bagchi is an engineer and an MBA graduate of James Cook University Singapore. He is passionate about traveling and exploring new destinations and has interest in the area of tourism and operations management. Currently, he is an active travel blogger and a photographer. Shwetha Rani Srinivasan Ms. Shwetha Rani Srinivasan graduated with a master’s degree from James Cook University Singapore. Sriram Suryanarayanan Mr. Sriram Suryanarayanan graduated with a master’s degree from James Cook University Singapore. Thuc Thi Mai Doan Do Mr. Thuc Thi Mai Doan Do is currently a full-time PhD student in tourism management at the University of Algarve, Portugal. He completed

About the Authors

xv

his MBA degree in hospitality and tourism management from Queen Margaret University and later was appointed Lecturer of Tourism at Hoa Sen University, Vietnam, for almost 5 years. He is interested to explore service quality and customer behavior, sharing economy, and sustainable tourism. Valentin Weislämle More than 15 years ago, Prof. Valentin Weislämle, who holds a doctorate in economics, established the course of studies in tourism management at Baden-Wuerttemberg Cooperative State University (DHBW) in Lörrach and has been training young people for the tourism industry with well over one hundred dual partner companies. Weislämle is also active in numerous tourism committees and organizations and advises tourism companies. Weislämle started his career as a research assistant at the University of Freiburg at the Institute for Statistics/Econometrics and Empirical Economic Research. Afterward, he headed the market research and then the overall marketing of a large financial services provider in Frankfurt. Before joining DHBW, he was head of new media and digital sales at a large publishing house for travel information. Wenxin Lin Ms. Wenxin Lin graduated with a master’s degree from James Cook University Singapore. She is currently a Front Office Manager at Hampton by Hilton located in Xiamen, China. Zahra Pourabedin Dr. Zahra Pourabedin is a lecturer in business at James Cook University Singapore. Dr. Pourabedin is an associate fellow of the Chartered Institute of Marketing (CIM) and Higher Education Academy (AFHEA-UK). She maintains an active research agenda in hospitality marketing, destination marketing, and e-marketing of tourism. She published articles in international journals including Tourism Management Perspectives. She is also actively involved as a reviewer of research papers for journal publications and gained experience through membership in scientific committees for conferences. Zilmiyah Kamble Dr. Zilmiyah Kamble is a lecturer in hospitality and tourism at James Cook University Singapore. Her research interests include tourism planning, development, sociocultural impacts, sustainable tourism, social cohesion, and social capital through tourism. She is also actively involved with leading journals as a reviewer and is a member of scientific committees for a few tourism conferences. She has also consulted for the Seychelles Ministry of Tourism and published research pertaining to tourism impacts, tourism development, and policy reviews of postwar tourism development in Sri Lanka.

Introduction: Service Excellence in Asian Tourism and Hospitality Dirk Klimkeit, Chun Meng Tang, and K. Thirumaran

Today, hardly anyone would deny the relevance of customer satisfaction for businesses. Customer satisfaction can lead to customer loyalty, and loyal customers contribute to business success. In fact, the cost of keeping a customer is only a fraction of the cost of acquiring a new one, and customers become more profitable for a business the longer they remain customers. However, the relationship between satisfaction and loyalty is getting weaker. Customers are willing to switch more quickly, especially due to the easy availability of information on alternative providers via the Internet. As many businesses achieve customer satisfaction, it ceases to be a differentiator. Sometimes, customer loyalty is purely calculative—for example, because of low prices—and there is no deeper emotional bond with the provider. Therefore, businesses are increasingly adopting an orientation towards not just satisfying, but delighting their customers (Gouthier 2013). This introductory chapter identifies the current stage of scholarship regarding service excellence in the tourism and hospitality field. The primary drivers for creating customer experiences are drawn on, to conceptualize a management system for achieving customer delight as the definition of service excellence. A number of existing studies are reviewed, before presenting the highlights of the various chapter contributions of this book. The concluding chapter toward the end of the book addresses the future practice of service excellence in the industry, drawn from the themes found in the chapters. Future research areas are also identified, to benefit scholars and practitioners.

D. Klimkeit Center of Service Management Studies, Baden-Wuerttemberg Cooperative State University (DHBW) Stuttgart, Stuttgart, Germany e-mail: [email protected] C. M. Tang · K. Thirumaran (*) JCU Singapore Business School, James Cook University Singapore, Singapore, Singapore e-mail: [email protected]; [email protected] © Springer Nature Switzerland AG 2021 K. Thirumaran et al. (eds.), Service Excellence in Tourism and Hospitality, Tourism, Hospitality & Event Management, https://doi.org/10.1007/978-3-030-57694-3_1

1

2

D. Klimkeit et al.

Drivers

Customer Experiences

Service Innovation Management

Surprise Services

Service Quality Management

Unexpected Added Value

Customer Experience Management

Personalized Services

Complaints Management

Accomodating Complaints Reaction

Customer Delight

Customer Delight

Business Results Customer Loyalty • Repurchase behaviour • Cross-buying • Recommendations • Higher willingness to pay Brand Value • High profile • Image • Brand delight

Fig. 1 A model of service excellence (adapted from Gouthier 2013, p. 20)

Several studies have addressed service quality, using the concept and measurement of SERVQUAL (Parasuraman et al. 1988), with reference to service quality and standards (Dedeoglu and Demirer 2015). Beyond SERVQUAL, more distinct studies have since emerged: for instance, SERVPERF addressed the measurement of service performance (Cronin and Taylor 1992); RURALQUAL measured rural hospitality (Loureiro and Gonzalez 2008); HOLSERV for hotel businesses (Mei et al. 1999); and DINESERVE for dining services (Stevens et al. 1995). However, there are more ways of studying how businesses in tourism and hospitality achieve customer delight, in both tangible and intangible forms (Lee and Shea 2015). Studies show that customer delight leads to higher customer loyalty, and that businesses should go beyond customer satisfaction and strive for “service excellence” in order to delight their customers (Jones and Sasser Jr. 1995; Lee and Shea 2015). Service excellence can be defined as a management system that allows companies to not only satisfy customers, but also delight them to an appropriate extent (Gouthier 2013). To delight customers means invoking a positively perceived emotion in them, which results from a positive surprise and/or exceeding of expectations (Gouthier 2013). This includes delivering on the promise, providing a personal touch, going the extra mile, and resolving problems well (Johnston 2004). In order to operationalize service excellence, the German Institute for Standardization (DIN) has created the first worldwide standard on how to implement service excellence: DIN SPEC 77224. Subsequently it became the basis of the European norm CEN/TS 16880 (Comité Européen de Normalisation 2016). In a book elaborating on this standard, Gouthier (2013) includes a model of service excellence (Fig. 1) that outlines drivers, mechanisms, and business outcomes of service excellence. It starts with company resources, management systems, and processes, which constitute drivers of positive customer experiences: these include complaints management, customer experience management, service quality management, and service innovation management. These customer experiences trigger customer delight as an emotion; such as through innovative services, service experiences perceived as

Introduction: Service Excellence in Asian Tourism and Hospitality

3

positive surprises, a particularly competent advice that is considered as adding value, or an especially accommodating reaction to a complaint. Generally, a personal approach toward the customer, knowledge about their expectations and experiences, as well as a particular engagement with the customer, often trigger customer delight. Customer delight in turn is seen as having a positive impact on business results. This encompasses customer loyalty, comprising repurchase behavior, cross-buying, recommending the service to others, and higher willingness to pay for the service. Also, brand value is to be positively impacted, which in turn is seen to derive from a high profile, public awareness, and brand delight (Gouthier 2013). Nonetheless, service excellence, and the concept of customer delight that is at its heart, has also been met with criticism. Critics hold that customer delight can wear off as customers get used to extra services. This leads to a spiral of increasingly costly extra services and surprise services that do not pay off in the end (Dixon et al. 2010). Gouthier (2013) responds that often it is merely the inexpensive or free extra service elements that delight customers, such as the friendliness, engagement, and reliability of staff. Interestingly, Dixon et al. (2010), prominent critics of the concept of service excellence, mention travelers making a point of returning to a hotel with particularly attentive staff, as one of the few examples where in their view customer delight may indeed pay off. While delighting customers has been found not to be equally relevant in every industry, it was identified to be particularly important for the tourism and hospitality sector (Johnston 2004; Lee and Shea 2015). Also, there must be a reason why Ford et al. (2001) used businesses in the tourism and hospitality industry to identify “Lessons from the best firms” for delivering excellent service: namely, the Walt Disney Company (theme parks/resorts), Marriott International, Southwest Airlines, and Ritz Carlton. It is therefore no surprise that academic research on customer delight and service excellence has also turned to this industry to provide an empirical context. While confirming the need for customer delight, not just customer satisfaction, studies discovered that for many businesses in this industry, even satisfied customers often switch to competitors (Johnston 2004). Research specifically among airlines has shown that many customers who are satisfied, nevertheless switch to other airlines that provide better-quality service (Jones and Sasser Jr. 1995). In the highly competitive airline industry, Singapore Airlines has shown that service excellence can be achieved in a cost-effective manner by ensuring everything that affects the customer is of premium quality, while everything behind the scenes is subject to strict cost control (Heracleous and Wirtz 2010). Lee and Shea (2015) identified which experiences create guest delight in the hospitality industry, as well as the factors that influence those experiences. Their study confirmed that delightful experiences lead to customer loyalty. From customer storytelling, Solnet et al. (2010) identified seven tourism and hospitality businesses that were consistently referred to as exhibiting service excellence. They discovered a strong commitment toward people—both employees and customers—as a key factor in their success. Recent publications have addressed more specific aspects, such as Tsaur and Yen (2019), who investigated the effect of service redundancy on service

4

D. Klimkeit et al.

excellence in fine-dining restaurants; this is an interesting perspective on how excessive service in pursuit of service excellence can lead to negative feelings among guests. Further studies investigated the role of front-line staff’s behavior (Barnes et al. 2013), psychological contracts and identification (Lu et al. 2016; Ogilvie et al. 2017), and employee satisfaction (Engeset et al. 2016), in providing service excellence at hotels and resorts. In a case study conducted in Thailand, staff competencies and communication proficiencies were found to transform customer satisfaction into delight (Ponsamritinan and Fields 2018). Chen et al. (2017) extended the perspective by addressing customer integration in their study. They proposed segmenting customers by level of participation in casual dining restaurants, and identifying the relationship between customers’ participation segments and service excellence. In a similar attempt at directing business excellence, Cavelzani (2012) advocated the idea of “emotional hospitality,” where the focus is on creating the physical environment and a service relationship with the guests that offers an ideal experience. In a Hilton consumer research report (Ting 2018), a small but increasing number of guests (20%) favored booking hotels that cared about the environment. Visitor delight resulting from the place image is achievable if their subsequent experiences create place attachment (Jiang et al. 2016). This appears to be a good way of imbuing sustainable environmental practices within the hotel premises, to show the organization cares. A report by the IBM Institute for Business Value (2011) found 70% of hotel guests felt that the personal touch or personalization in service was highly desirable. In a study of guest satisfaction based on service staff attributes such as respectfulness, friendliness, and helpfulness, it was found that respectfulness had a higher value than the other two attributes (Liu et al. 2016). More recently, Jolin (2019), looking at trends for 2020, identified that technology and the human touch must come together to achieve an ideal service and create “meaningful experiences.” The tourism industry is big in Asia and has been growing in recent decades. For example, in 2017, the grouping of the ten ASEAN nations was estimated to have received 125 million visitors; and the Pacific Asia Travel Association forecasts about 900 million visitors to the Asia Pacific region in 2023. The Asian region’s tourism industry has taken on significant meaning, particularly as an add-on to generate economic growth—it generated 1337 billion US dollars of revenue receipts in 2017 (Koumelis 2019). The diversity of the markets and changing disruptive technologies pose new challenges, which require constant adaptation and innovative approaches to product and service designs. Despite the importance of service excellence to the Asian tourism and hospitality industry, as outlined above, the extant literature is nonetheless scant and fragmented. In practice, systematic models for the implementation of service excellence are still lacking (Asif 2015). This work for the first time addresses this highly relevant topic, in the form of an edited book. Based on fresh empirical evidence from the field, this book aims at capturing different approaches and challenges to service excellence in the tourism and hospitality industry, with a focus on Asia. The chapters that have been selected for this edited book are derived from various sources. Initially, a call for papers was launched through various channels and

Introduction: Service Excellence in Asian Tourism and Hospitality

5

platforms relating to tourism and hospitality management, seeking the submission of abstracts. When the abstracts were considered suitable for this volume, authors were asked to submit full papers. Furthermore, students from Baden-Wuerttemberg Cooperative State University (DHBW) Stuttgart and James Cook University Singapore took part in a joint study tour in Singapore and Malaysia, on the theme of this edited volume. Various businesses in the area of hotels and resorts, tourist attractions, and touristic transport providers, were visited. During visits of the premises students gained insights for their papers, each focused on a specific aspect of service excellence-oriented operations management, in the Asian tourism and hospitality sector. The best of those were selected as additional chapters for inclusion in this book, and an academic was added as a co-author to collaborate on further developing the papers. As a third source of inspiration, a symposium on the theme of this book was organized at James Cook University Singapore, to coincide with the study tour; the symposium included talks and a panel discussion by both tourism and hospitality scholars, and industry representatives. All submitted papers then underwent a double-blind peer review procedure involving two reviewers for each paper, in order to determine suitability for the final selection of papers, and obtain further constructive feedback for the development of the papers before publication. Tourism and hospitality businesses that strive for service excellence start by designing their service in a way that facilitates the achievement of customer delight. In the first chapter, based on in-depth interviews, Do compares the service design process of franchise and independent Japanese restaurants in Vietnam, with a view to achieving customer delight. Bagchi, He, Chen, Zhang, and Bhati address the importance of the physical servicescapes, as well as the processes for the flow of guests and goods, in achieving guest delight in the hospitality industry; their research provides examples of three hospitality businesses in Singapore and Malaysia. Understanding customer expectations is essential for designing services that meet and exceed expectations. Suryanarayanan, Srinivasan, Lin, Wang, and Sabharwal compare two four-star hotels in Singapore and Malaysia, and focus especially on how the cultural background of guests impacts their expectations of hotels. After the design phase, businesses aiming for service excellence realize guest delight through how they manage their day-to-day operations. Maier Tolic, Klimkeit, and Dingeldey, drawing on the DIN standard for service excellence, outline how customer delight can be measured; they draw insights from how select tourism and hospitality businesses in Singapore and Malaysia go about measuring delight. Greiner and Goh focus on the important element of personalizing services for achieving service excellence. They outline key elements that support a personal relationship and present a tool that allows a classification of personalized services; they then apply these concepts to analyze practical cases from Singapore and Malaysia. Tee and Chaw explore the role that guests’ knowledge-sharing behavior plays in a hospitality operation’s achievement of service excellence. Employing a survey among generation Z hotel guests, they find a positive and significant influence of guests’ knowledge-sharing on key excellence dimensions. The advancement of digital technology has not stopped short of the tourism and hospitality industry. Whether and how businesses make use of the possibilities it

6

D. Klimkeit et al.

affords can have a significant impact on achieving service excellence. Hence, Kavoura investigates the role that robots can play in a hospitality context, which roles they can perform, and how they are acceptable for tourists; while also taking into account guests’ cultural background. Weitzer and Weislämle analyze the online presence of select hotels and tourist attractions in Singapore and Malaysia. Comparing different perspectives, they identify how the online presence of hospitality businesses can contribute to service excellence. In a conceptual paper, Pourabedin draws on the concept of e-service quality to provide recommendations for tourism service providers; these enable them to implement e-service quality measurements, and thus develop attractive e-service quality attributes. The tourism and hospitality industry is a “people business,” and the training and engagement of staff has a major impact in providing service excellence. In addition, a careful management of material resources, avoiding waste and putting resources to best use, can also play an important role in service excellence. Fiala and Thirumaran explore the applicability of Lean Six Sigma for the tourism and hospitality industry. Drawing on cases from Southeast Asia, they find great potential for this methodology to enhance service excellence. In their conceptual paper, Sharma and Kamble explore a paradigm shift in human resource management in the tourism industry; they highlight the importance of a strategic approach that integrates operational and cultural elements for achieving service excellence. Hussain, Konar, Nair, and Ragavan provide a conceptual framework for measuring the service quality of hospitality and tourism education. This final chapter investigates in depth the type of education and engagement needed to prepare students for the hospitality industry. This edited book sets out to examine what and how companies in the tourism and hospitality industry do to deliver a high level of service excellence. The 12 chapters in the book contribute valuable insights into the different practices and challenges to service excellence in the tourism and hospitality industry in Asia. We hope that this edited book will be a useful reference work or supplementary reading for tertiary students, researchers, and industry practitioners.

References Asif M (2015) A critical review of service excellence models. Towards developing an integrated framework. Qual Quant 49(2):763–783 Barnes DC, Collier JE, Ponder N, Williams Z (2013) Investigating the employee's perspective of customer delight. J Pers Sell Sales Manag 33(1):91–104 Cavelzani A (2012) Pursuing excellence in business through emotional hospitality. Hosteur 21 (1):4–6 Chen SC, Raab C, Tanford S (2017) Segmenting customers by participation. An innovative path to service excellence. Int J Contemp Hosp Manag 5:1468–1485 Comité Européen de Normalisation (2016) Service excellence – creating outstanding customer experiences through service excellence. Beuth, CEN/TS 16880:2016-04-01 Cronin JJ, Taylor SA (1992) Measuring service quality: a re-examination and extension. J Mark 56 (3):55–68

Introduction: Service Excellence in Asian Tourism and Hospitality

7

Dedeoglu BB, Demirer H (2015) Differences in service quality perceptions of stakeholders in the hotel industry. Int J Contemp Hosp Manag 27(1):130–146 Dixon M, Freeman K, Toman N (2010) Stop trying to delight your customers. Harv Bus Rev 2010:116–122 Engeset MG, Hull JS, Velvin J (2016) Promoting service excellence for tourist destinations. Int J Cult Tour Hosp Res 10(4):440 Ford RC, Heaton CP, Brown SW (2001) Delivering excellent services. Lessons from the best firms. Calif Manag Rev 44(1):39–56 Gouthier M (2013) Kundenbegeisterung durch Service Excellence. Erläuterungen zur DIN SPEC 77224 und Best-Practices, Beuth, Berlin Heracleous L, Wirtz J (2010) Singapore Airlines’ balancing act. Harv Bus Rev 88(7/8):145–149 IBM Institute for Business Value (May 2011) Hotel 2020: The Personalization Paradox. http:// barrachd.co.uk/wp-content/uploads/2015/05/Hotel-2020-The-personalization-paradox.pdf Jiang Y, Ramkissoon H, Mavondo F (2016) Destination marketing and visitor experiences: the development of a conceptual framework. J Hosp Market Manag 25(6):653–675 Johnston R (2004) Towards a better understanding of service excellence. Manag Serv Qual 14 (2/3):129–133 Jolin B (January 2019) Hotel Trends: the power of personalization and building personal connections. Hotel Online https://www.hotel-online.com/press_releases/release/2019-hotel-trends-thepower-of-personalization-and-building-personal-connec/ Jones TO, Sasser WE Jr (1995) Why satisfied customers defect. Harv Bus Rev 73(6):88–91 Koumelis T (November 2019) Asia Pacific to welcome close to 900 million international visitor arrivals in 2023. https://www.traveldailynews.asia/asia-pacific-to-welcome-close-to-900-mil lion-international Lee SA, Shea L (2015) Investigating the key routes to customers’ delightful moments in the hotel context. J Hosp Market Manag 24(5):532–553 Liu MT, Yan L, Phau I, Perez A, Teah M (2016) Integrating Chinese cultural philosophies on the effects of employee friendliness, helpfulness and respectfulness on customer satisfaction. Eur J Mark 50(3/4):464–487 Loureiro S, Gonzalez FJM (2008) The importance of quality, satisfaction, trust, and image in relation to rural tourist loyalty. J Travel Tour Mark 25(2):117–136 Lu VN, Capezio A, Restubog SLD, Garcia PRJM, Wang L (2016) In pursuit of service excellence: investigating the role of psychological contracts and organizational identification of frontline hotel employees. Tour Manag 56:8–19 Mei AWO, Dean AM, White CJ (1999) Analysing service quality in the hospitality industry. Manag Serv Qual 9(2):136–143 Ogilvie J, Rapp A, Bachrach DG, Mullins R, Harvey J (2017) Do sales and service compete? The impact of multiple psychological climates on frontline employee performance. J Pers Sell Sales Manag 37(1):11–26 Parasuraman A, Zeithaml VA, Berry LL (1988) Servqual. J Retail 64(1):12–40 Ponsamritinan C, Fields R (2018) A positive mindset in the service industry towards enhancing employees’ competencies, confidence, performance, English proficiency and customer delight: a case study of the Montien Riverside Hotel Bangkok. ABAC ODI J Vis Act Outcome 5 (1):47–74 Solnet D, Kandampully J, Kralj A (2010) Legends of service excellence: the habits of seven highly effective hospitality companies. J Hosp Market Manag 19(8):889–908 Stevens P, Knutson B, Patton M (1995) DINESERV: a tool for measuring service quality in restaurants. Cornell Hotel Restaur Adm Q 36(2):56–60 Ting D (May 2018) Hilton sets lofty sustainable tourism goals: Will it matter? Skift. https://skift. com/2018/05/23/hilton-sets-lofty-sustainable-tourism-goals-will-it-matter/ Tsaur S-H, Yen C-H (2019) Service redundancy in fine dining: evidence from Taiwan. Int J Contemp Hosp Manag 31(2):830–854

Part I

Designing the Service

Service Design of Franchise and Independent Japanese Restaurants in Ho Chi Minh City, Vietnam Thuc Thi Mai Doan Do

1 Introduction From 2015 to 2050, the population in Vietnam is forecast to rise by around 21 million to 114.6 million. The economic growth is expected to be substantial, thanks to steady foreign direct investment, development of the tourism industry, and strong domestic demand. The low unemployment rate and a growing minimum wage has been catalyzing the increase of private consumption and household spending, which are predicted to grow by 7% and 11% respectively. Food and non-alcoholic drinks are leading the essential spending, accounting for approximately 20.5% of total household expenses (Business Monitor International Ltd 2018). Together with the increase in food and beverage spending, consumers are also more concerned about the quality and variety of food. There has been significant growth in importing farm products from Japan, since the Vietnamese are willing to buy them at a higher price due to their high quality and specific taste (Vietnam Economic News 2017). Of the 1500 Japanese restaurants opened in Vietnam, about 50% have been established in Ho Chi Minh City, the largest and wealthiest city (Vietnam Investment Review 2019a, b). The growing numbers of this type of restaurant shows that Japanese food is becoming a favorite of Vietnamese people, and the Vietnamese market can be considered as an ideal destination for Japanese restaurant development (Vietnam Investment Review 2019a, b). Japanese food culture is recognized as elegant, sophisticated, and having an outstanding standard of both dishes and service quality. Compared to other types of restaurants, Japanese restaurants mostly target mid- and high-income customers due to their higher prices (Vietnam News 2018). Therefore, understanding the customers’ increasing demands and providing service excellence cannot be neglected, in order to retain existing clients and attract more potential ones to this

T. T. M. D. Do (*) University of Algarve, Faro, Portugal © Springer Nature Switzerland AG 2021 K. Thirumaran et al. (eds.), Service Excellence in Tourism and Hospitality, Tourism, Hospitality & Event Management, https://doi.org/10.1007/978-3-030-57694-3_2

11

12

T. T. M. D. Do

type of restaurant. Service design is determined by service components (such as processes or physical evidence) that are required for offering a good experience, delivered attractively and effectively (Acar and Kozak 2015). Hence, the focal point of service design is the value to be created, and how customers perceive the services. One of the main characteristics of hospitality services is inseparability, which means production and consumption occur at the same time, and mostly at the supplier’s premises. Hence, there is no doubt that the hospitality industry in general, and restaurants in particular, need to apply service design suitably, in order to provide distinctive and outstanding services which meet or even exceed customer expectations. Though service design is a crucial determinant in offering services to customers successfully, there is relatively little research on service design in the hospitality industry in Vietnam, especially in the restaurant businesses. Moreover, to the best of the researcher’s knowledge, the difference in the application of service design between franchised businesses and individually owned ones has not been investigated previously. Hallak et al. (2012) and Lumpkin and Dess (1996) suggested conducting further research within an entrepreneurship framework where the business and owner are intertwined, given that the capabilities, motivations, and objectives of the owners influence their choice of distinct business strategies. Prior researchers also mentioned questions relating to the human side of service encounter design for future studies, which are summarized in the service encounter triad, comprising service organization, contact personnel, and customers (Bowen et al. 2002). Thus, this paper explores in depth one of these human aspects; specifically, its research objective is to study the owner/managers’ self-assessment of business advantages and disadvantages, their perceptions regarding service design, and how they apply this service concept in the daily operation—in the context of Japanese franchise and independent restaurants in Ho Chi Minh City, Vietnam. The results of the study also serve as a guide for existing or potential Japanese restaurants with scarce resources, in terms of applying service design effectively and efficiently in order to improve the business success rate.

2 Literature Review 2.1

Service Design

As mentioned in the previous part, service design consists of the key components needed to create the customer’s overall experiential journey effectively. In contemporary business, design is the process of seeking to maximize customer satisfaction and business profitability through the innovative use of major design factors— namely, performance, quality, durability, appearance, and cost—in connection with products, environments, information, and corporate identities (Kotler and Rath 1984). Service design is focused on the creation of well thought-through experiences using a combination of tangible and intangible mediums. According

Service Design of Franchise and Independent Japanese Restaurants in Ho Chi Minh. . .

13

to The Copenhagen Institute of Interaction Design (2008) (as cited in Stickdorn and Schneider 2013, p. 30) and LiveWork (2010) (as cited in Stickdorn and Schneider 2013, p. 33), service design is the application of established design processes and skills to the development of services; it therefore leads to the improvement of existing services and innovation of new ones (Stickdorn and Schneider 2013). There are broad definitions of service design; however, all of the above researches have shared some similar points, such as the importance of process, experience, innovation, and tangibility. These definitions express that the aim of service design is to improve tangible attributes and service delivery processes, to delight customers by ensuring the overall quality of the provided service. In the tourism and hospitality industry, Han and Hyun (2015) emphasized the critical role of quality by conceptualizing this term as tourists’ appraisal of the excellence of a particular travel product/ service, and its better performance against those offered by competitors. There are two basic approaches to service design, in terms of design needs. The first is customer expectations-based design (Holmlid 2007); and the second is product- or service-based design, which involves technology, law and regulation, or strategic decisions (Tonchia 2008). As Moritz (2005) stated that design and change are interrelated, Acar and Kozak (2015) suggested it would be useful to address service design together with change and learning culture. Thus, the positive attitude of service providers towards change, innovation, and learning is undeniably crucial to implementing these design process in their business operation. Being the important person who manages the daily operation, restaurant managers are also required to be service designers with a high willingness to change, as they are more familiar with internal factors of service operations, and also with their design. Other researchers pointed out five main problems that influence service design: specifically, organizational culture, customer participation, knowledge management, development performance, and design tools. Relating to the organization’s capabilities and resources, the chain hotels have mostly been taking advantage of service design, and have implemented it systematically (Ottenbacher and Gnoth 2005). Similarly, some data also show that service design is currently applied mostly by larger companies, because of their available budget to hire a service design firm to help them. Or, in the context of a franchised business, depending on the type of franchise and its agreement contract, a franchisor who has extensive operation experience will normally provide full training to the franchisee, especially in terms of restaurant design, daily operation process, and business strategy-related consultancy. Regarding the internal resources of independent business, there are limitations of budget, process, technology, and experience. However, a feasible service design should be consistent with the company’s resources and capabilities. Marc Stickdorn argued that the service design methodology will be utilized more widely, as not only large firms, but also small and medium-sized enterprises (SMEs) can apply a more DIY approach to their business, without paying consultancy fees to an external service designer. In addition, relating to drivers of success in independent restaurants, an owner’s entrepreneurial self-efficacy was a determinant factor in distinguishing high-performing restaurants from average and low-performing ones (Lee et al. 2016). Therefore, there is an assumption that the self-evaluation of

14

T. T. M. D. Do

restaurant managers regarding their business advantages and disadvantages, and their perception of service design and/or innovation, play more important roles in implementing the service design process appropriately and efficiently in their organizations. To implement service design effectively, it is necessary to comprehend the levels of service design a business needs in order to improve continuously. The optimal development of service design creates a superior service experience and offer a competitive advantage over rivals. There are four levels that can be pointed out: these concern the design of product features; customer experiences (i.e., psychological and sensual customer experience); front and back-office service processes; and the business’s service approach, strategy, and policy (Moritz 2005). In the context of the restaurant business, the dimensions of service design may be presented in four aspects: restaurant concept, product development, service process, and physical design (Dao 2016). Previous articles also concluded that the physical environment, food quality, and service quality are the most influential factors in customers’ perceived value of a restaurant, while perceived service quality is a significant factor in customer satisfaction. Hence, the design process of service in a restaurant should be based closely on these perspectives, in order to design what is expected by customers and achieve service excellence. Namkung and Jang (2008) confirmed in their study that service excellence is the main factor that results in extremely gratified patrons. As a dominant dimension of service design, service process is where the interaction between service providers and customers takes place. Gronroos (1998) confirms that consumption of a service is a process consumption rather than an outcome consumption, where a consumer perceives the service provision process as part of their service consumption. Customer experiences happen in the various stages of their buying process, which moves from pre-purchase to purchase and post-purchase (Verhoef and Lemon 2016); they also occur whenever there exists a direct or indirect contact with the marketing offer Meyer and Schwager 2007. According to Kukanja et al. (2017), customers perceive restaurant quality based on three marketing dimensions: namely, people, placement, and product; while only the dimension of people significantly impacts post-purchase behavior. Moreover, the findings from Garg and Amelia (2016) show that humanistic clues are a stronger predictor of the customer’s experience, as compared to functional or mechanic factors. Therefore, the critical role of front-line employees and customers should not be ignored in the process of offering services. To design a successful service process, the provider always keeps the customers and front-line members of staff as the main focus, and works to fulfill their expected demands through this experience journey. Additionally, the serviceoriented approach recommended by Vargo and Lusch (2004) proposes that service is co-created with the customers; thus, customers should also play an active role in this creation process. Similarly, in their case study of the restaurant business, Hossain et al. (2017) also concluded that customers’ high participation in the service process is needed, to co-create value along with the employees, and maintain service quality. As customers are getting more involved, the failures in any stage of the process will definitely have a negative impact on their overall experience. Therefore, effective

Service Design of Franchise and Independent Japanese Restaurants in Ho Chi Minh. . .

15

service process management in a restaurant can indirectly affect the food quality, and directly influence the overall unique experience, through every customer touchpoint. The physical environment is another important driver of the overall customer experience (Walter et al. 2010). In the context of retail, the physical environment has a strong influence on customers’ perception of the functional value. Nevertheless, Mika et al.’s (2019) research found that customers perceived the overall ambiance of a restaurant as a symbolic value. Similarly, Kim and Moon (2009) confirmed that physical environmental attributes are linked with customers’ pleasurable emotions in the dining experience. The physical environment is the combination of the exterior and interior environment, in which ambiance and interior factors consistently appear to be more frequent drivers. The atmosphere of the place is created to affect the customer’s four senses directly; hence, to implement service design most successfully, the restaurant’s interior design should be emphasized in creating the customer experience, thereby enhancing purchase probability and persuading them to come back (Pecotic et al. 2014). The main elements that relate to interior design are: ambient light, colors, background noise, space and layout, aesthetics, and tableware. As for any other business, offering new products is always important to ensure the long-term success of the restaurant concept (Cooper 2001). Interestingly, regarding the aspect of food service, the product is offered on a product–service continuum, so successful leaders must always keep in mind the innovation management techniques for both new products and new services (Harrington 2004). Innovation appears in the restaurant context within five main areas: design and atmosphere, food and beverage items, utilization of new technology, human resources, and environmentally friendly business (Ivkok et al. 2016). In relation to product features in restaurant, customers usually evaluate food and drink in terms of sensory quality and safety quality (Adkins 2004; Dulen 1998). Sensory quality refers to customers’ evaluation of the taste, texture, freshness, appearance, and temperature of the food (Stone and Sidell 2004); while safety quality involves the restaurant’s commitment toward Hazard Analysis and Critical Control Point (HACCP) guidelines to prevent physical, biological and contaminations. Besides these two main categories, a research from Chan et al. (2014) indicated that other product-related failures in a restaurant were related to limited variety, small portions, missing ingredients, and no standardization.

2.2

Franchised and Independent Restaurants

Franchising refers to a business relationship based on contract law, in which a franchise business (the franchisor) grants a franchisee the right to use its trademarks and proprietary information, for a return fee (Peretiatko et al. 2009). Franchising is becoming more popular, especially in the hospitality industry. This business method allows firms to grow their network of outlets without requiring their own capital investment, while collecting royalties based on sales from franchisees (Bradach 1998). According to the report by the International Franchise Association, Vietnam’s

16

T. T. M. D. Do

franchise market currently ranks eighth among the 20 most promising markets in the world. For instance, 213 businesses were licensed for franchising in Vietnam in the last decade (Vietnam News 2018). A wide range of franchises focus mainly on the food and beverage industry, as well as education, retail, fashion, and cosmetics (EVBN 2018). Unlike a franchised restaurant, an independent restaurant is owned by an individual, and is not part of franchised operation or chain (Mandabach et al. 2011). For this type of restaurant, its owner (and/or operator) is often the employer who makes the restaurant’s location, recruitment, and management decisions (Walker 2007). An independent restaurant is usually sized as a small entrepreneurship, where its owner is often present, working as a manager or staff member. The differences between these two types of restaurants can be categorized into a few aspects, such as: internal resources, independency level, customers’ favorite attitude, and training provision. Many scholars have found that independent restaurants have a higher possibility of closing down within the first three years of operation (Parsa et al. 2005). The major reasons for this high failure rate in newly opened restaurants are identified as ineffective management of market growth or change, and lack of experience in adapting to an unstable environment (Venkataraman et al. 1990). Thus, service design should be applied appropriately using a firm’s existing resources in the early stages of business planning and operation, to create and maintain the successful business in the market.

3 Research Methodology The previous section reviewed the topic-related literature, with major concepts comprising service design, physical evidence, service process, product features, and innovation. To achieve the study’s objective, the researcher conducted in-depth interviews with managers from six Japanese restaurants, both franchised and independent, in Ho Chi Minh City, Vietnam. The in-depth interview is a qualitative research technique which is used to conduct intensive individual interviews with a small number of participants, in order to explore their perspectives on a particular idea or program, or their thoughts and behaviors toward a specific issue (Boyce and Neale 2006). The research design involved multiple case studies of six Japanese restaurants in Ho Chi Minh City. The design followed three phases: first, identification of cases; second, collection of data through face-to-face interviews; and lastly, a thematic content analysis to identify and categorize similarities in the respondents’ points of view. Data were collected from September to October 2019, through face-to-face interviews with in-charge managers of six Japanese restaurants. A total of nine semistructured questions were used to obtain the research objectives, focused on three main areas: namely, managers’ opinion of the advantages and disadvantages of running a Japanese restaurant; service design application; and their opinions regarding change and innovation. The length of interviews ranged from 20 to 60 min,

Service Design of Franchise and Independent Japanese Restaurants in Ho Chi Minh. . .

17

Table 1 Brief description of six Japanese restaurants Franchise restaurant Restaurant A (RA): a master franchise Japanese restaurant, opened in 2015. Located in the center of District 1, HCMC. Data were collected from the interview with co-investor/operation manager. (RAM) Restaurant D (RD): a franchise Japanese buffet and à la carte restaurant, opened in 2015. Located in Tan Binh district, steps away from Tan Son Nhat International Airport. Conducted interview with the operation manager. (RDM) Restaurant E (RE): a franchise Japanese restaurant, located in District 1. Data collected from the outlet manager. (REM)

Independent restaurant Restaurant B (RB): a low-end independent Japanese restaurant, opened in 2016. Situated in District 2, HCMC. Interview with owner/ manager. (RBM) Restaurant C (RC): a high-end independent Japanese restaurant in the heart of HCMC, opened in 2002. Data collected from the interview with restaurant manager, a Singaporean. (RCM) Restaurant F (RF): a casual Japanese restaurant for Westerners, located in District 2, opened in 2016. Interview with the restaurant’s owner/ manager. (RFM)

depending on the respondent’s available time, willingness, experience, and knowledge. Inter-rater reliability was not measured in the study; according to Jun et al. (2018), this measurement is rarely conducted with semi-structured interview data due to the possibility of applying the same code to different sections of the interview. Thus, another technique, called member checking, was applied after transcribing the interview, to verify reliability. This is the process of involving the participant in reviewing the response, to ensure the accuracy of the collected data (Harvey 2015). Moreover, as suggested by Graneheim and Lundman (2004) and Elo and Kyngas (2008), one of the solutions to ensure and show the trustworthiness of a qualitative research is to present the findings together with the most suitable quotations, and thereby explain the links between the findings and data. In this paper, representative quotations from the study participants’ text were cited in relation to thematic categories, in order to increase the research’s trustworthiness. Table 1 provides a short description of the six chosen Japanese restaurants.

4 Findings 4.1

Managers’ Self-Assessment of Restaurants’ Advantages and Disadvantages

This chapter presents the results from semi-structured interviews with six respondents, regarding the pre-defined research questions sequentially. There are major elements addressed as the advantages and disadvantages in running a Japanese restaurant; namely location, financial ability, training provision, independency level, ingredient’s quality-related issues, and support from other internal departments. Five out of six managers emphasized the critical importance of the locational

18

T. T. M. D. Do

factor, and confirmed choosing the right location as the first advantage contributing to the success of their business. For example, a manager stated: You have to be careful in choosing the restaurant location—whether it is accessible to your market segmentation. (RDM)

Restaurant F was closed down after its first year due to its unsuitable location; it later moved to a more central place, which was visible to customers. The manager shared: I wanted to open a Japanese restaurant for Western customers, by understanding their tastes and preferred atmosphere. I first opened this restaurant in Binh Thanh District, where not many Westerners live, so business was so slow. I found this was not the right location, and I decided to close there and open again in Thao Dien area, District 2. (transl. RFM)

All managers from franchise restaurants recognized that important advantages include deep and professional training provision, and marketing support from franchisors or internal departments. Nevertheless, their level of dependency on the franchise, especially in the food menu, was pointed out as the common difficulty amongst the three franchise restaurants. On the other hand, independent restaurants’ managers mentioned the above aspects as their obstacles in starting a Japanese restaurant. Moreover, interviewees from Restaurants B and F (casual independent restaurants) indicated that financial limitations were also a challenge to maintaining business in the first year. An owner/ manager from the independent restaurant said: I started up this restaurant after many years working as a chef for Japanese restaurants. To save costs, I have to be the main chef and also operation manager, which challenged me a lot. The front-line staff’s procedure is much more complicated than I thought. (RBM)

Interestingly, another finding of the current study is that all managers agree that a significant challenge in Japanese restaurant’s operation is the importation process, or ensuring the ingredients’ quality, especially for raw fish.

4.2 4.2.1

Application of Service Design in Japanese Restaurants in Ho Chi Minh City Physical Environment

According to prior researches, physical evidence is one of the main components in the design process of service. Except the low-end independent restaurant (Restaurant B), which does not really invest in the decoration due to their lack of business capital, or Restaurant F, which focuses on Western customers’ preferences and behavior with a bright, open design and more space for the kitchen, other restaurants were mostly built and decorated in wood. They believe wood will make customers feel warmly welcomed, and is closer to traditional Japanese styles. An open kitchen with a sushi bar, where customers can enjoy seeing the chef preparing the food, is commonly employed in the studied restaurants. In addition, the private room in

Service Design of Franchise and Independent Japanese Restaurants in Ho Chi Minh. . .

19

tatami style is also critically important to attract visitors, as a large percentage of customers go there with their business partners or family; hence, they prefer a more private, quiet place with cozy music. According to most of the interviewed managers, restaurant operators must comprehend their target customers in terms of their eating habits, to ensure their expected pleasant and comfortable atmosphere. The franchise restaurants were advised about the core concepts of restaurant design by a franchisor’s expert; however, franchisees can make their own decisions to modify the design more appropriately for the local culture. This finding somewhat reflects the conclusion in previous research, which mentioned that franchisees provide local market-related knowledge that enables franchisors to customize strategies and gain competitive advantage (Combs and Ketchen 2003). 4.2.2

Service Process

Service process is another complex and critical element in service design. Relating to this aspect, many scholars have emphasized the utmost importance of staff responsiveness and friendliness in ensuring customers’ satisfaction with restaurant quality. This finding is also supported by the current paper: when asked about service process, all the study participants mentioned the role of front-line employees, and reported their difficulty in managing and ensuring the servers’ performance. The interviewed managers from franchise restaurants admitted that they were well trained in the service process by parent restaurants, before opening the business officially. Restaurant A also explained that the main chef was sent to Singapore for a month’s training in dishes and hygiene. However, franchise restaurants have to follow the core menu from franchisors, which can include up to 300 dishes. The huge variety of dishes makes front-line staff confused and less confident in communicating with guests to explain the dishes. Regarding the training provision for staff, managers from franchise and high-end independent restaurants provided more proper training to front-line staff, as they understand their customers are more experienced and demanding; whereas the independent casual restaurants’ employees received only little and basic training. “Customers usually have a casual and quick meal at my restaurant. They come here mainly because of fresh sashimi and the cheap price,” the manager from Restaurants B stated. However, customer feedback on these restaurants’ websites, and social media such as Facebook and Google reviews, do support the managers’ opinions, as negative comments mainly concerned the service process, such as staff’s attitude and responsiveness, waiting time, and food knowledge. In addition, all managers stated that the service process in a Japanese restaurant is more complicated and requires sophisticated skills, compared to other types of restaurants. The managers from Restaurants C and E explained: Since our customers are high-end and have more experience, the food quality cannot be the only factor that retains our guest loyalty. Our waitresses also make their experience more memorable, by the way they greet them, and their Japanese appearance. (RCM)

T. T. M. D. Do

20

Though our hostesses also greet guests in a kimono, with a friendly smile, still we know they just perform this as a daily task, not from their heart. (REM)

The more complicated jobs, with uncompetitive salaries, caused the high staff turnover in these restaurants. To encourage employee motivation, franchise and high-end independent restaurants provide the staff with thorough training and selftesting regarding food and service; they organize a competition called “Star of the month,” and offer discount vouchers, or good performance benefits. 4.2.3

Product Features

Product features of food quality cannot be neglected in the study of service design, especially in a Japanese restaurant. In the interview with a casual Japanese restaurant’s owner (RBM), he admitted that the lack of financial ability restricts them in investing in the restaurant’s physical look and upgrading staff’s skills; nevertheless, it is not acceptable to sacrifice the food quality. The owner of another casual restaurant (RFM) also shared that they have adjusted their dishes according to foreign customers’ taste, which makes them competitive and unique in relation to other Japanese restaurants in town. Generally, all managers emphasized this attribute of service design, as they believe customers perceive food quality as the most important factor in restaurant consumption. Therefore, serving fresh sashimi and sushi to customers is determined as the most crucial factor by all managers, in order to ensure the success of Japanese restaurants. Unsurprisingly, customers’ reviews revealed that the majority of positive feedback for these restaurants related to food quality. Moreover, regarding product features, managers from franchise and highend restaurants (A, D, E, C) also mentioned the development of seasonal menus for some special occasions, such as Christmas, New Year, or the Sakura festival. These managers explained that the seasonal menu promotions in fact do not bring more profit to their business directly, but they expect them to attract customer revisits. Relating to managers’ perceptions toward change and innovation, except for the manager of Restaurant B, other managers wholly agreed that the change in food menu and promotional activities are undeniably essential to the sustainable success of restaurants in today’s strong competitive environment. A manager of a high-end independent restaurant (RCM) highlighted the practice of its executive chef traveling to Japan every two years, to understand contemporary Japanese cuisine. The franchise restaurant A sometimes organizes a chef’s contest, to create new promotional dishes or desserts. However, the restaurants studied here only promote these innovative activities based on their own perception and internal strengths, not from conducting surveys amongst customers regarding their satisfaction and expectations.

Service Design of Franchise and Independent Japanese Restaurants in Ho Chi Minh. . .

21

5 Discussion The findings from this study confirmed that choosing the right location was of the utmost importance, or the first advantage in ensuring the success of a Japanese restaurant. This finding is entirely consistent with the result from Hanaysha (2016), which confirmed that the restaurant’s location (i.e., being visible and accessible to their potential customers) seems to be significant in ensuring business success. Previous scholars also suggested that access, visibility, center size, and the existing competitors in the surrounding area, should be mentioned as the crucial determinants in choosing a restaurant location. Most of the interviewed restaurants were located in Dist 1; this is the busiest area of the city, with many big office buildings, shopping malls, and entertainment places, where most of the commerce and trading activities happen. Furthermore, due to the hectic traffic jams in HCMC, especially during peak hours such as lunch or dinner time, people prefer to choose restaurants in accessible locations in order to reduce the stress of travel. Amongst franchise restaurants, managers stated their common advantages, including deep and thorough training, and marketing support from franchisors; while dependency level was recognized as an obstacle in their business. This result is similar to the extant literature, which mentioned that franchisors support franchisees’ establishment in terms of site selection, effective advertising, remodeling, store design and layout, furniture and equipment, and so on (Franchising: An Entrepreneur’s Guide). According to Camillo et al. (2008), franchise restaurants obtain the advantages of deeper financial resources, strong corporate support, a well-structured organization, familiar branding, and professional training. On the contrary, the scarcity of internal resources, especially financial ability, was a disadvantage in running independent restaurants. Parsa’s article highlighted the major failure factors of restaurants, including requirements of labor and time, the undercapitalization issue, low perceived value, the quality of employees and services, and especially the amount of turnover (Parsa et al. 2005). Additionally, ingredient-related issues were a difficulty for both franchise and independent Japanese restaurants. This finding has not appeared often in previous papers. Except in udon or ramen restaurants, the popular core menu of Japanese restaurants is sashimi or sushi, whose quality is easily recognized by the freshness of the raw ingredients. Thus, quality of the input should be highly controlled, to offer tasty and safe food to customers. A continuous search for new local suppliers with an acceptable standard at a reasonable price is suggested as a necessary task for restaurant operators. Regarding the application of service design, generally, the six interviewed managers pointed out food quality as the prerequisite element to sustain a restaurant business. This finding is also supported by the investigation of Namkung and Jang (2008) which confirmed the significant effect of overall food quality on customer satisfaction and behavioral intentions. Nevertheless, although food-related issues can be recognized as a necessity for customer satisfaction, they are no longer the source of competitive advantages or differentiation; this is fulfilled by the service process (or more specifically, staff performance and customer experience), and

22

T. T. M. D. Do

restaurant ambiance. Especially in the context of franchise and high-end independent restaurants, whose customers have more experience of dining service and are less sensitive to price, they invest more in the physical environment (especially with an open kitchen) and staff training, compared to low-end independent ones. However, both types of restaurants admitted the challenges in managing and ensuring staff’s excellent performance. Customers will not totally enjoy the taste of the food if it is not served in a pleasant atmosphere with a good, caring service provider (Susskind and Vicarri 2011). This result is also consistent with the study from Sabir et al. (2014), and presents findings that support the prior relevant researches on the specific instruments for measuring quality perceptions of restaurant customers with reference to food, service, and atmosphere, in DINSERV (1996) and TANGSERV (2002). Most of the interviewed managers from franchise and high-end independent restaurants mentioned their efforts in improving the service process; however, they mostly focused on the core service encounter period, which happens only when customers are physically in the restaurant. Nevertheless, customer experience is conceptualized as the customer’s journey with the firm over time, during the purchase cycle across multiple touchpoints (Verhoef and Lemon 2016). Therefore, to improve service quality and maintain lasting relationships with customers, an inclusive view of all touchpoints throughout customer’s pre-, mid- and postconsumption stages should be considered and applied effectively in Japanese restaurants. To be different from their counterparts, the majority of interviewed managers also agreed with the necessity of innovation; more specifically, changes in the food menu and promotional activities. Ottenbacher and Harrington (2007) emphasized the importance of continuous innovation in restaurants, to protect against imitation and enhance the competitive advantage over rivals. Similarly, another research confirmed that implementing innovation can drive positive restaurant performance, in the context of independent restaurants (Lee et al. 2016). Nevertheless, the innovation concept in the studied restaurants has been applied in the short term, and not as a business–customer co-creation strategy; thus, it does not really result in increasing customer satisfaction or generating more company profit. To implement innovative ideas more effectively, restaurants should collaborate more with customers to learn more about their wants and needs, and also encourage them to be more active in value co-creation.

6 Conclusion and Recommendations To conclude, the significant findings of this research provide a comprehension of the advantages and disadvantages of running a Japanese restaurant, according to the self-assessment of managers/owners, and their perceptions toward service design and innovation. From the practical side, most of the study participants agreed that the application of service design determines the sustainable success of Japanese restaurants’ business, or they at least showed their willingness to improve these aspects in

Service Design of Franchise and Independent Japanese Restaurants in Ho Chi Minh. . .

23

the near future. In the context of different kinds of Japanese restaurants, they always have their own advantages and disadvantages; however, it can be considered that service design should be applied systematically and effectively based on managers’ perceptions and mainstream customers’ characteristics, behavior, and expectations. When choosing either a franchise or an independent model, restaurant operators firstly have to analyze their potential customer and location carefully, then make the right decisions regarding implementation of the restaurant’s design, service process, and food development, based on the expectations of this target market. Given the fierce competition among Japanese restaurants today, providing goodquality food is the prerequisite element in order to retain customer satisfaction, as customers are looking for fresh, healthy, and unique-tasting Japanese dishes. Nonetheless, as Japanese restaurants target mid- and high-income customers, the restaurant’s design, ambiance, and service process cannot be ignored, in ensuring customers’ overall experience and long-term loyalty. The decoration is commonly simple yet warm, reflecting traditional Japanese style, with an open kitchen, sushi bar, private room and relaxing music. Relating to improving staff’s performance, the main challenges for all Japanese restaurants in this study concern how to encourage front-line staff’s working morale and retain their loyalty. Thus, motivational factors, including a feeling of being involved, on-the-job training, job security, a safe working environment, good wages, career promotion, monetary and non-monetary incentives, etc., should be applied more effectively and transparently, for employees’ delight and satisfaction. Lastly, innovation also plays a critical role in the success of a restaurant operation; the chosen innovative areas should be based not only on the restaurateur’s perspective, but also on understanding the customer’s needs and expectations, and through collaboration with distributors or suppliers. Though the study provides valuable insights into managers’ perceptions regarding service design practice, it suffers from some limitations, related to the small sample size, and its focus on the structure of Japanese restaurants in Ho Chi Minh City, Vietnam only. Therefore, this limits the generalizability of the findings if applied to other types of restaurants and different locations. A recommendation for further study involves quantitative research with a larger sample, to examine how restaurant managers with different demographic characteristics evaluate the advantages and disadvantages found in this study, in terms of their current practice of service design. Moreover, future research on customers’ perceptions of service design in their overall experience of Japanese restaurant consumption would also be a necessary topic for future scholars.

References Acar DG, Kozak MA (2015) Service design in hotel: a conceptual review. Tourism Review, Turkey Adkins H (2004) Britain rates poorly in restaurant hygiene poll. Caterer Hotelkeeper 193(4321):11 Bowen DE, Cook LS, Chase RB, Dasu S, Steward DM, Tansik DA (2002) Human issues in service design. Elsevier, Georgia

24

T. T. M. D. Do

Boyce C, Neale P (2006) Conducting in-depth interviews: a guide for designing and conducting in-depth interviews for evaluation input. Pathfinder International, Watertown, MA Bradach JL (1998) Franchise organizations. Harvard Business School Press, Boston, Massachusetts Business Monitor International Ltd (2018) Industry forecast – consumer spending, Vietnam Camillo AA, Connolly DJ, Kim WG (2008) Success and failure in Northern California: critical success factors for independent restaurants. Cornell Hosp Q 49(4):364–380 Chan WL, Hassan WM, Boo HC (2014) The product-related failures in restaurants, vol 144. Elsevier, Amsterdam, pp 223–228. https://core.ac.uk/download/pdf/82674458.pdf. Accessed 15 Sep 2019 Combs JG, Ketchen DJ (2003) Why do firms use franchising as an entrepreneurial strategy? A meta-analysis. J Manag 29(3):443–465 Cooper RG (2001) Winning at new products: accelerating the process from idea to launch, 3rd edn. Perseus Books, New York, NY Dao QP (2016) Restaurant offering innovation through service design. PhD thesis. Aalto University Learning Center, Finland Dulen J (1998) Under the microscope. Rstrnt Inst 108(21):80–87 Elo S, Kyngas H (2008) The quality content analysis process. J Adv Nurs 62(1):107–115 EU-Vietnam Business Network (2018) Vietnam’s distribution and retail channels. EVBN – Research Report. [August 2019] Garg A, Amelia M (2016) Service clues’ influence on customers’ dining experience in fine dining restaurants. Asian Pac J Innov Hosp Tour 5(1):91–109 Graneheim UH, Lundman B (2004) Qualitative content analysis in nursing research: concepts, procedures and measure to achieve trustworthiness. Nurse Educ Today 24:105–112 Gronroos C (1998) Marketing service: the case of a missing product. J Bus Ind Mark 13:322–338 Hallak R, Brown G, Lindsay NJ (2012) The place identity – performance relationship among tourism entrepreneurs: a structural equation modelling analysis. Tour Manag 33(1):143–154 Han H, Hyun S (2015) Customer retention in the medical tourism industry: impact of quality, satisfaction, trust, and price reasonableness. Tour Manag 46:20–29 Hanaysha J (2016) Restaurant location and price fairness as key determinants of brand equity: a study on fast food restaurant industry. Bus Econ Res 6(1):310–323 Harrington RJ (2004) Part 1: the culinary innovation process, a barrier to imitation. J Foodserv Bus Res 7(3):35–57 Harvey L (2015) Beyond member-checking: a dialogic approach to the research interview. Int J Res Meth Edu 38:23–38 Holmlid S (2007) Interaction design and service design: expanding a comparison of design. Design Inquiries. https://archive.nordes.org/index.php/n13/article/view/157/140. Accessed 10 Sep 2019 Hossain MZ, Enam F, Farhana S (2017) Service Blueprint a tool for enhancing service quality in restaurant business. Am J Ind Bus Manag 7:919–926 https://www.scirp.org/pdf/AJIBM_ 2017071210185686.pdf. Accessed 1 Sep 2019 Ivkok M, Blesic I, Simat K, Demirovic D (2016) Innovations in the restaurant industry: an exploratory study. Econ Agr, 1169–1186. https://www.researchgate.net/publication/ 317554393_Innovations_in_the_restaurant_industry_An_exploratory_study. Accessed 3 Sep 2019 Jun E, Jo BA, Oliveira N, Reinecke K (2018) Digestif: promoting science communication in online experiments. Proc ACM Human Comp Interact 2:84 Kim WG, Moon YJ (2009) Customer’s cognitive, emotional, and actionable response to the servicescape: a test of the moderating effect of the restaurant type. Int J Hosp Manag 28 (1):144–156 Kotler P, Rath GA (1984) Design: a powerful but neglected strategic tool. J Bus Strateg 5:16–21 Kukanja M, Omerzel DG, Kodric B (2017) Ensuring restaurant quality and guests’ loyalty: an integrative model based on marketing (7P) approach. Total Qual Manag Bus Excell 28:13–14

Service Design of Franchise and Independent Japanese Restaurants in Ho Chi Minh. . .

25

Lee C, Hallak R, Sardeshmukh SR (2016) Drivers of success in independent restaurants: a study of the Australian restaurant sector. J Hosp Tour Manag 9:99–111 Lumpkin GT, Dess GG (1996) Clarifying the entrepreneurial orientation construct and linking it to the performance. Acad Manag Acad Manag Rev 21(1):135–172 Mandabach KH, Siddiqui MA, Blanch GF, Vanleeuwen DM (2011) Restaurant viability: operations rating of contributing success factors. J Cula Sci Technol 9(2):71–84 Meyer C, Schwager A (2007) Understanding customer experience. Harv Bus Rev 85(2):116–126 Mika Y, Rintamaki T, Saarijarvi H, Joensuu J, Kulkarni G (2019) A customer value perspective to service experiences in restaurants. J Retail Consum Serv 51:91–101 Moritz S (2005) Service design – practical access to an evolving field. Koln International School of Design, London Namkung Y, Jang S (2008) Are highly satisfied restaurant customers really different? A quality perception perspective. Int J Contemp Hosp Manag 20(2):142–155 Ottenbacher M, Gnoth J (2005) How to develop successful hospitality innovation. Cornell Hotel Restaur Admin Q 46(2):205–222 Ottenbacher MC, Harrington RJ (2007) The innovation development process of Michelin-starred chefs. Int J Contemp Hosp Manag 19(6):444–460 Parsa HG, Self J, Njite D, King T (2005) Why restaurants fail. Cornell Hotel Restaur Admin Q 46 (3):304–322 Pecotic M, Bazdan V, Samardzija J (2014) Interior design in restaurants as a factor influencing customer satisfaction. RI Think 4:10–14. http://rithink.hr/brochure/pdf/vol4_2014/10-14.pdf. Accessed 3 Sep 2019 Peretiatko R, Humeniuk A, Humeniuk M, D’Souza C, Gilmore A (2009) Franchising in Ukraine. Eur J Mark 43:21–30 Sabir RI, Irfan M, Akhtar M, Pervez MA, Rehman AU (2014) Customer satisfaction in the restaurant industry, examining the model in local industry perspective. J Asian Bus Strategy 4 (1):18–31. https://pdfs.semanticscholar.org/c8ff/03b7ebca5575ce0b2569450ad081d177c1b7. pdf. Accessed 15 Oct 2019 Stickdorn M, Schneider J (eds) (2013) This is service design thinking. BIS Publisher, Amsterdam Stone H, Sidell JL (2004) Sensory evaluation practices, 3rd edn. Elsevier Academic Press, Boston Susskind A, Vicarri A (2011) A look at relationship between service failures, guest satisfaction, and repeat patronage intentions of casual dining guests. Cornell Hosp Q 52(4):438–444. https:// scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article¼1379&context¼articles. Accessed 1 Sep 2019 Tonchia S (2008) Industrial project management. Springer, Berlin Vargo SL, Lusch RF (2004) Evolving to a new dominant logic for marketing. J Mark 68:1–17 Venkataraman S, Van de Ven A, Buckleye J, Hudson R (1990) Starting up in a turbulent environment: a process model of failure among firms with high customer dependence. J Bus Ventur 5:277–295 Verhoef PC, Lemon KN (2016) Understanding customer experience throughout the customer journey. J Mark 80:69–96 Vietnam Economics News (2017) Vietnamese appetite grows for Japanese food products. http:// ven.vn/vietnamese-appetite-grows-for-japanese-food-products-28357.html. Accessed 5 Sep 2019 Vietnam Investment Review (2019a) Appetite for Japanese cuisine flares. https://www.vir.com.vn/ appetite-for-japanese-cuisine-flares-65331.html. Accessed Jan 2019 Vietnam Investment Review (2019b) Japanese restaurant chains boom in urban Vietnam. https:// www.vir.com.vn/japanese-restaurant-chains-boom-in-urban-vietnam-69737.html. Accessed Sep 2019 Vietnam News (2018) Vietnam looks to boost local franchise market. https://vietnamnews.vn/ economy/480759/viet-nam-looks-to-boost-local-franchise-market. html#KQxuDLIWx3bO2t1o.97 Accessed Sep 2019 Walker JR (2007) The restaurant: from concept to operation, 5th edn. Wiley, Hoboken, NJ Walter U, Edvardsson B, Ostrom A (2010) Drivers of customers’ service experiences: a study in the restaurant industry. J Serv Theory Pract 20(3):236–258

Creating Excellent Guest Experiences: Servicescape and Processes Shubhojit Bagchi, Jiachen He, Christopher Yan Fun Chen, Min Zhang, and Abhishek Bhati

1 Introduction The purpose of this study is to analyze and highlight the key areas of operations, i.e. servicescape, process management, and guest-flow management, of one hotel and two resorts in Malaysia. The study is limited to three examples of leisure establishments—referred to as Country Resort X, City Hotel Y, and Theme-Based Resort Z—in order to understand the differences between these different establishments. A hotel’s servicescape is not limited to the physical elements only. In fact, within the hotel premises, customers’ perceptions and behavior can be directly impacted by the mere presence of others, rather than through direct interaction with them (Kim and Lee 2012). Customers prefer to interact with like-minded employees (Martin and Pranter 1989). Furthermore, process flow impacts the guest experience quite significantly. Cleanliness, excellent customer experience, focus on necessary amenities, following up with the guests and greeting the guests, often add up to the guest experience (J.D. Power 2016). Processes in such areas as food and beverage production, housekeeping, front office management, etc., directly influence the guests’ experience and their overall satisfaction. By providing an in-depth analysis of the business models of one hotel and two resorts in Malaysia, this study adds value to the current knowledge, practices, and concepts. This study identifies the existing issues in the hotel and resorts, and suggests feasible solutions to these problems.

S. Bagchi (*) · J. He · C. Y. F. Chen · M. Zhang · A. Bhati James Cook University, Singapore, Singapore e-mail: [email protected]; [email protected]; [email protected]; [email protected]; [email protected] © Springer Nature Switzerland AG 2021 K. Thirumaran et al. (eds.), Service Excellence in Tourism and Hospitality, Tourism, Hospitality & Event Management, https://doi.org/10.1007/978-3-030-57694-3_3

27

28

S. Bagchi et al.

2 Literature Review Earlier researches revealed that in order to sustain a business in the fast-changing world, it is always important to predict the future risks, and implement necessary methods to either avoid or control them. The literature review in this regard highlights the prior researches conducted, and increases understanding of the existing concept of service excellence by addressing the aspects of servicescape, process management, and guest-flow management.

2.1

Servicescape

In the tourism industry, the term servicescape plays a very important role (Sheng et al. 2016). It is a dynamic phenomenon that blends in with the ambiance designed for the targeted guests. In order to sustain business in the competitive market, different hotels customize their interpretation of servicescape depending on the target customers. The term servicescape was coined by Bitner (1992), and refers to the physical setting within which the marketplace exchange occurs. Subsequently, the product is delivered and consumed within a service organization (Zeithaml 2000). The perfect blend of pleasure and excitement within the hotel servicescape adds value to the overall customer satisfaction. However, the design and maintenance of the hotel servicescape are also factors that contribute to customer satisfaction. The servicescape of a hotel reflects its values. It is not only limited to the design of the facility, but also includes the message that the building expresses to its employees and guests. One study shows that guests are often satisfied with the hospitality and welcoming nature of the hotels, even if they have the most conventional design and simple amenities (Heide and Grønhaug 2009). The various environmental dimensions of hotels and resorts are observed as a holistic environment by the customers and the employees. Furthermore, the sync rate between the customer response and employee response (based on their perceptions about servicescape) is influenced by psychological moderators. Effective social interactions are often established based on the sync rate between the customer and the employee; the sync rate is identified by the different behavior displayed by the individuals at the time of the conversation. High-quality hotels and resorts often have employees who are capable of making engaging conversation, as this is a dominant part of the servicescape to give the customers a good first impression. Indeed, the first experience is often the factor that determines whether the customer stays repeatedly or just once. Hence, one of the objectives of this study is to identify the different possible servicescapes maintained by the hotel and resorts, with respect to their individual target guests. This aspect will not only highlight the challenges and issues experienced by the hotel and resorts, but will also suggest possible solutions to the issues faced in their unique servicescape.

Creating Excellent Guest Experiences: Servicescape and Processes

2.2

29

Process Management

Achieving customer satisfaction is not only accomplished through implementing an appropriate servicescape. Planning services is an important part of achieving excellence, as it allows for the incorporation of strategic planning into the tourism industry. Such planning contributes to fulfilling the needs of customers, and performance improvements (Elbanna and Elsharnouby 2018). While process design and planning is more structure-oriented than servicescape, it is equally important that the processes are able to match the demand of customers in service design, and meet their psychological needs. Fulfilling different demand requirements typically requires additional service offerings, but basic needs should be fulfilled before considering others (Cheng et al. 2019). Key processes for a hotel’s consideration include management processes (planning, quality, etc.), core processes (providing necessities and accommodation), and support processes (human resources and information handling) (Ivasciuc and Epuran 2015). Each main process type has its own subprocesses, which need to flow into each other to contribute to customer satisfaction (Ivasciuc and Epuran 2015). Other processes covered in process planning include the service recovery process, which involves service failure management through the handling of customer feedback, to incorporate these concerns into future services (Cheng et al. 2019). Strategic planning could be improved through total quality management (TQM), which also improves elements such as process management, service design, and customer relationship management (Yeng et al. 2018). Proper strategic planning involves improving customer relationships, leading to overall quality improvements and customer satisfaction, while service design addresses delivery performance and strategic concerns (Yeng et al. 2018). Hotels that fail to apply TQM in flow and process planning see their failures reflected in their operations and loss of competitive advantage (Yeng et al. 2018). Likewise, proper flow and process planning can lead to organic growth, represented by industry innovation and increased revenue (Ivasciuc and Epuran 2015). Guest service in hotels can be improved by business process re-engineering, i.e., optimization of operational processes and services. A guest’s stay is comprised of five phases: pre-arrival, arrival, accommodation, duration of stay, and departure. During the period of stay, multiple transactions and interactions with guests determine the quality of the front-office process (Özdemir et al. 2019). Process flow, as a result, contributes significantly to the overall guest satisfaction.

2.3

Guest-Flow Management

The flow of guests is an important consideration that all hotels must acknowledge in preparing their operations. Customers perceive service quality based on how it is offered and how it is delivered. As a result, the flow of guests influences the core

30

S. Bagchi et al.

service provision and its level of excellence (Mansour and Ariffin 2017). The optimization of the flow of guests occurs not only in hotels, but also in the surrounding environment, which hotels must additionally account for when planning occupancy rates. This can be influenced by hotels through their ability to organize tourism activity, by arranging transport and location in a timely manner. Guest flows are very important, because such attributes of a hotel as waiting times and accessibility to places play an important part in the perceived value of a hotel by guests (Román and Martín 2016). Any point in the hotel-visit process where there is even the briefest wait time can be considered a guest-flow process, and must be considered to be as important as other more obvious qualities, such as restaurant quality and room service. One study shows that the importance of processes such as the check-in to check-out service, the ability to respond to customers, as well as providing them with a timely service, surpasses the importance of staff’s appearance and ambiance features (Mohsin et al. 2019). Other example aspects include traveling time between other hotel facilities, between rooms and the outside, waiting times for different hotel facilities, and the ability to handle multiple guests simultaneously. The seamless flow of guests adds to their satisfaction; it also symbolizes the hotel management’s capability to manage guests during rush hours. For example, the restaurant is a key place to notice a regular rush of guests during peak hours. Based on previous research, guest satisfaction is related to the service standard of the restaurant, and of its employees. In case of adverse or negative situations, guest complaints need to be addressed promptly, in a considerate manner (Susskind 2010). Managing the flow of guests can be one of the toughest challenges for many hotels and resorts during rush periods. A smooth flow of guests improves the service excellence overall, by improving the guest experience within the designed space (servicescape) of the hotel and resorts (Wu and Chen 2015).

3 Research Methods The research methods include both primary and secondary methods. The primary methods comprise field observations and attending management presentations, while the secondary methods involve social media research, namely using TripAdvisor, Expedia, Agoda, etc. For the purpose of this study, field observations were performed at Country Resort X, City Hotel Y, and Theme-Based Resort Z, all located in Malaysia. During the field observations, it was ensured that the overall premises of the hotel and resorts were viewed in order to understand the landscape, internal and external environment, type of architecture, cultural practices, general facilities, types of transportation available, use of technology, placement and design of hotel facilities, their capacity and services, etc. During the management presentations, additional insights were gathered about the nature of management’s involvement in the concerned hotel and resorts. These

Creating Excellent Guest Experiences: Servicescape and Processes

31

management presentations provided useful information on the different operations prevailing in the hotel and resorts, as well as a brief overview of their business model and current hindrances they faced due to the market conditions. As part of the secondary method, data were collected from various social media and websites with regard to the concerned hotel and resorts, with particular stress on the quality reviews of previous guests. This was done prior to the field observations and management presentations, in order to obtain a preliminary picture of the hotel and resorts.

4 Findings from the Field 4.1 4.1.1

Servicescape Country Resort X

It was observed that Country Resort X must meet certain requirements to qualify for promoting itself as being global 4-star standard. For example, the existing design and location selection of the necessary facilities and amenities within the resort campus requires a complete redesign or a design overhaul to meet the privacy and safety criteria. The current design and location of the various establishments within the resort campus are indicative of the fact the country resort is quite dated and falls short of the current 4-star quality standard requirements. This has a direct impact on the servicescape and overall customer perception. Given that the first experience is always the key component of long-term customer relations, the current status of the resort needs expert monitoring by the resort management. Considering the land area of the Country Resort X, space usage and the condition of the attractive facilities need close attention. As the country resort design is dated, sustainable developments in design and maintenance need to be implemented. Because servicescape also involves a combination of the local culture (Rosenbaum and Massiah 2011) with the Western touch, guests expect to see this mix. The nightly shows at the resort often stressed Western concepts more than local culture; this also needs to be addressed, to meet the guests’ expectations. Further, being a resort, its profitability depends mostly on weekend or holidaybased guests. Unlike in city hotels, bookings for weekdays are few. The field observations also revealed that the hotel had issues with implementing the latest technology. The issues with long queue handling in the restaurants also have to be addressed. With time, the country resort is expected to mitigate its current issues and meet the expected standard.

32

4.1.2

S. Bagchi et al.

City Hotel Y

City Hotel Y (within the city perimeter) is well organized, and displays a competitive advantage in terms of its overall servicescape. The attention to quality user experience is noticed right from the point of entrance, leading to the hotel reception. The ambiance, niche usage of hi-tech robots, class-leading floor management, and spacious lift grab the immediate attention of guests. Moreover, the quality of the rooms showcases attention to detail and a focus on guest satisfaction. The infinity pool design, the floating gymnasium, and the enormous restaurant deserve special mention in terms of servicescape. In short, the current design, facilities, and servicescape qualify it for the global 4-star quality standard recommended for a city hotel. As add-ons, the experience of the rooftop bar itself represents an attraction magnet, where guests enjoy a panoramic view of the entire city, along with the distant shoreline, while relaxing. The in-room ambiance meets expectations. However, there are some minor issues that need to be addressed to improve the overall servicescape. The Wi-Fi provision, which today is a must rather than a luxury for hotels, is sometimes inaccessible or with a weak signal inside some guest rooms. It even impacts the payment processing time and ordering system of the rooftop bar, creating a long queue in the middle of the night. The area of coverage and signal strength need improvement in this regard. On the other hand, in City Hotel Y, the user experience and customer–employee relationship are the top priorities of the management. At every step taken by the guest, there is always someone available to reach out to at any time. Furthermore, the staff’s hospitality, speech, and usage of words shows professionalism, and the stateof-the-art management system seamlessly blends in with the overall servicescape. The management is professional and transparent in terms of its business–customer relationship; it is also very prompt to respond to any issue inside the hotel premises. The humble acceptance of the Wi-Fi issues by the top-level management personnel is a clear sign that the management is keen to further improve its service quality in terms of technology. The employee training system and management is quite efficient; moreover, the mix of local and Western culture is also highlighted.

4.1.3

Theme-Based Resort Z

Theme-Based Resort Z is a resort especially meant for children. Unlike conventional resorts, it is unique in terms of its facilities; the entire campus is filled with abundant fun and entertainment activities. The resort is true to its brand, as it maintains the original theme and regulations of its parent corporation. Reflecting the worldwide servicescape of its parent corporation, Theme-Based Resort Z in Malaysia is in the top rank of Malaysian tourism, attracting large numbers of customers, especially travelers visiting from Singapore. As a part of the regular sight-seeing package,

Creating Excellent Guest Experiences: Servicescape and Processes

33

Theme-Based Resort Z Malaysia has links with various tourist agencies across Singapore, as well as benefiting from its vicinity to the Singapore-Malaysia border. At Theme-Based Resort Z, the marketing-centric management team is always focused on the customer relationship. Given that the resort is just a part of the entire theme park, the resort experience is quite unique: the focus is mainly on the family, involving children. The best part of the resort experience is the children’s free access to the entire theme park as a part of the resort booking package, which makes it more attractive to the guests. The employees are quite friendly, and are always enthusiastic, with a smile on their faces.

4.2 4.2.1

Process Management Country Resort X

From a TQM perspective, some of the Country Resort X’s facilities are inadequate to fulfill sufficient service delivery, probably due to a lack of innovation rather than a lack of quality. For example, inefficiency in guest-flow management is prominent during the rush hours. The ability to manage long queues during rush hours is an area that requires efficiency from the resort management (Öncü et al. 2015). Additionally, the separate processes do not flow well into each other, due to the travel distance problem. Country Resort X has more Korean-specific facilities, such as a restaurant specifically for South Korean clients. The main reason why the resort attracts South Koreans is due to its more favorable weather conditions, affordable pricing, and golf course availability, in comparison to South Korea’s offerings. From a process planning standpoint, the practice of catering processes and offering a large vertical experience to a specific and major client base is beneficial in the short run, as the resort will be able to satisfy this customer base (Ali et al. 2018). Along with the golf course, the other facilities are meant to enhance the vertical experience provided to the South Koreans. Aside from the South Koreans, Country Resort X’s other major client base are locals, whom the vertical experience also caters for. This was incorporated into its service design, as the facilities are more local-oriented. For example, there are a few ideas incorporated into service delivery that give the image that the facilities are Malaysian-owned. However, the management process quality is lacking from both a local and foreigner’s perspective, as is evident from low customer turnout in certain attraction areas.

4.2.2

City Hotel Y

In contract to Country Resort X, City Hotel Y can appeal to both locals and foreigners, as no niche services are offered that accommodate one better than the

34

S. Bagchi et al.

other. However, the highest customer satisfaction is typically experienced by businessmen and more affluent clients. This is because as a relatively high-end hotel, City Hotel Y offers services that are more useful to wealthier patrons. This includes facilities such as a limousine service, increasingly more luxurious accommodation options at higher prices, and residences that allow families to live a more standard lifestyle, instead of a vacation one. Overall, City Hotel Y’s process planning is excellent. The hotel achieves a good implementation of the main processes, with the support processes improving management processes a great deal, making its process planning superior. Flow and customer participation are not an issue, as staff can quickly meet the demands of customers thanks to the hotel’s understanding of customer traffic. Consequently, there are essentially zero times when one service area is understaffed. The customer– employee relationship is quite well maintained, and deserves appreciation; especially in the case of the housekeeping employees and the restaurant service staff. City Hotel Y undertakes TQM quite seriously, seeking improvements over time. This is evident in the use of robotics, as well as maintaining employee service standards (smiling and politeness policies), thus allowing the hotel to maintain a competitive advantage. From a customer perspective, the process quality is increased further by an emphasis on customer participation. Hotel staff can identify the needs of important clients through observation, and can meet needs that are not usually handled by hotels. For example, the hotel was able provide emotional support to a client who felt homesick by providing a personalized service as a special gesture, which allowed the client to interact with their own family overseas.

4.2.3

Theme Based Resort Z

Theme-Based Resort Z also has a good understanding of customer traffic, and like City Hotel Y, has integrated its management process and support process with good customer anticipation measures. The operations of Theme-Based Resort Z are like those of Country Resort X, as it too provides many attractions. Usually, this would mean that the resort would suffer the same problems as Country Resort X; but in this case, Theme-Based Resort Z has implemented proper processes to avoid those issues. Theme-Based Resort Z can meet customer demands thanks to a unique approach in the planning of its support processes. The resort utilizes a “Superhero” employee approach, given to those employees who have multiple proficiencies and can therefore operate in different departments. These employees are responsible for responding quickly to the resort’s needs. When one service area or department appears to be understaffed, a Superhero employee can be assigned to meet the demands of the service. For this to be possible, the resort’s support processes must reach a high standard, as information transfer and human resource management need to be prompt for the Superhero approach to function properly. Any service failure complaints that the resort might receive can be quickly remedied by the support processes, thanks to the Superhero employees.

Creating Excellent Guest Experiences: Servicescape and Processes

4.3

35

Guest-Flow Management

Table 1 provides a comparison of guest-flow management across Country Resort X, City Hotel Y, and Theme-Based Resort Z. Similarities among the three locations include the lack of transport offered to take guests outside the hotel areas (possibly to Table 1 Comparison of guest flow areas across the hotel and resorts Guest-flow areas Elevator quality

Transport

Restaurant access

Criteria Number of elevators

Country resort X Two per block

Capacity

Smallest (12 persons) Buggy (between lodgings and lobby) and hotel bus

Limousine service, discounted e-hail services

Service provided

Transport between resort areas, limited

Arranged by customers

Level and responsiveness of service

Single driver in the morning, few drivers in the afternoon, unresponsive

Hotel in highly serviceable area, e-hail very responsive

Restaurants and locations

Café: hotel lobby Dining area: clubhouse

Dining area: 4th floor Rooftop bar: top floor

Distance from lodging (by walking) Ways to reach other than walking

Café: 3 minutes Dining area: 5 minutes Café: buggy, walking Dining area: hotel bus Breakfast managed in time blocks, different breakfast times, low capacity, cannot handle clashes

Both areas 4.60) regarding the non-academic service dimensions. The following items were rated as high: “physical facilities are visually appealing” (M ¼ 4.70, SD ¼ 0.46), “employees are neat in appearance” (M ¼ 4.64, SD ¼ 0.48), “error-free

202

K. Hussain et al.

Table 3 Zone of Tolerance for Academic Services Adequate service expectations Learning values Instructors’ enthusiasm Course organization Breadth of coverage Group interaction Individual rapport Exams/grading policies Assignments Workload difficulty Desired service expectations Learning values Instructors’ enthusiasm Course organization Breadth of coverage Group interaction Individual rapport Exams/grading policies Assignments Workload difficulty Perceived service received Learning values Instructors’ enthusiasm Course organization Breadth of coverage Group interaction Individual rapport Exams/grading policies Assignments Workload difficulty MSAa Learning values Instructors’ enthusiasm Course organization Breadth of coverage Group interaction Individual rapport Exams/grading policies Assignments Workload difficulty MSSb Learning values

Means 2.77 2.63 2.57 2.69 2.79 2.80 2.83 2.82 2.95 2.84 4.61 4.69 4.69 4.57 4.50 4.54 4.52 4.63 4.70 4.63 3.47 3.44 3.38 3.51 3.51 3.51 3.45 3.38 3.52 3.55 0.70 0.81 0.80 0.82 0.72 0.70 0.61 0.56 0.57 0.71 1.13 1.24

Standard deviation 0.62 0.54 0.63 0.73 0.82 0.76 0.76 0.80 0.84 0.82 0.36 0.38 0.39 0.45 0.60 0.47 0.47 0.54 0.37 0.44 0.74 0.83 0.89 0.85 0.87 0.83 0.77 0.87 1.05 0.89 0.76 0.78 1.00 1.01 0.92 0.96 1.00 0.93 1.23 1.04 0.74 0.88 (continued)

Towards Service Excellence: The Zone of Tolerance for Hospitality and Tourism. . .

203

Table 3 (continued) Instructors’ enthusiasm Course organization Breadth of coverage Group interaction Individual rapport Exams/grading policies Assignments Workload difficulty Zone of tolerancec: Learning values Instructors’ enthusiasm Course organization Breadth of coverage Group interaction Individual rapport Exams/grading policies Assignments Workload difficulty Student satisfaction

1.30 1.06 1.98 1.02 1.07 1.24 1.18 1.07 1.83 2.06 2.11 1.88 1.71 1.73 1.68 1.81 1.75 1.77 3.86

0.86 0.90 0.97 0.88 0.81 0.98 1.09 0.86 0.76 0.72 0.81 0.98 1.01 0.99 1.06 0.99 0.99 0.91 0.98

Notes: Measure of service adequacy (adequate service level – perceived service level) b Measure of service superiority (desired service level – perceived service level) c Desired service level – adequate service level a

records” (M ¼ 4.60, SD ¼ 0.70), “employees tell you exactly when services will be performed” (M ¼ 4.60, SD ¼ 0.51), and “individual attention” (M ¼ 4.64, SD ¼ 0.63). However, relatively low expectation scores (mean < 4.50) are found for “materials associated with service are visually appealing” (M ¼ 4.42, SD ¼ 0.69), “promises to do something by a certain time” (M ¼ 4.40, SD ¼ 0.74), “employees give you prompt service” (M ¼ 4.50, SD ¼ 0.72), and “best interest at heart” (M ¼ 4.46, SD ¼ 0.64). This indicates that respondents (hospitality and tourism students) were sensitive about the tangibles, reliability, responsiveness, and empathy dimensions of non-academic services. As shown in Table 4, respondents gave a relatively high perception score (mean > 4.25) for “modern looking equipment” (M ¼ 4.30, SD ¼ 0.81), “physical facilities are visually appealing” (M ¼ 4.30, SD ¼ 0.81), “error-free records” (M ¼ 4.26, SD ¼ 0.80), “individual attention” (M ¼ 4.31, SD ¼ 0.91), and “convenience of operating hours” (M ¼ 4.26, SD ¼ 0.79). However, there was a relatively low perception score (mean < 4.15) for “performs the service right the first time” (M ¼ 4.08, SD ¼ 0.91) and “personal attention” (M ¼ 4.00, SD ¼ 0.78). The paired-sample t-tests (between the respective expectation and perception means of all the items) show that they are significantly different. All the perception scores for all service items for non-academic services are lower than the expectation

204

K. Hussain et al. Zone of tolerance for academic services 5.00

4.00

Range

3.00

Narrow zone of tolerance

Tolerance levels 2.00

1.00

0.00

Desired level -1.00

Perceived Adequate level level

Zone of tolerance

MSA

MSS

Levels

Graph 2 Zone of Tolerance for Academic Services

scores, implying that all service items suffered from a service-quality shortfall. The largest and the most meaningful gap scores (mean > –0.40) are found for the tangibles, reliability, and empathy dimensions of non-academic services, such as the “employees have a neat appearance” (expectations M ¼ 4.64, SD ¼ 0.48; perceptions M ¼ 4.17, SD ¼0.89; gap M ¼ –0.47, t ¼ 8.42, p < 0.05), “materials associated with service are visually appealing” (expectations M ¼ 4.42, SD ¼ 0.69; perceptions M ¼ 3.98, SD ¼ 0.85; gap M ¼ –0.44, t ¼ 7.77, p < 0.05), “performs the service right the first time” (expectations M ¼ 4.52, SD ¼ 0.66; perceptions M ¼ 4.08, SD ¼ 0.91; gap M ¼ –0.44, t ¼ 6.96, p < 0.05), “individual attention” (expectations M ¼ 4.64, SD ¼ 0.63; perceptions M ¼ 4.23, SD ¼ 0.91; gap M ¼ –0.41, t ¼ 6.43, p < 0.05) and “personal attention” (expectations M ¼ 4.52, SD ¼ 0.55; perceptions M ¼ 4.00, SD ¼ 0.78; gap M ¼ –0.52, t ¼ 9.87, p < 0.05). These findings suggest that the expected service was not experienced by respondents, and that the quality of service provided by the university did not meet students’ expectations. Nevertheless, the shortfall did not seem to undermine students’ perception of overall service quality (M ¼ 4.20, SD ¼ 0.94) or their satisfaction (M ¼ 4.24, SD ¼ 0.72); as presented in Table 4, evaluation scores for both items are found to be high.

Towards Service Excellence: The Zone of Tolerance for Hospitality and Tourism. . .

205

Table 4 Gap Analysis (Perceptions – Expectations) for Non-Academic Services Service quality dimensions

Tangibles The university has modern looking equipment. The university’s physical facilities are visually appealing. The university’s employees have a neat appearance. Materials associated with the service are visually appealing at the university. Reliability When the university promises to do something by a certain time, it does so. When you have a problem, the university shows a sincere interest in solving it. The university performs the service right the first time. The university provides its services at the time it promises to do so. The university insists on error-free records. Responsiveness Employees of the university tell you exactly when services will be performed. Employees of the university give you prompt service. Employees of the university are always willing to help you. Employees of the university are never too busy to respond to your requests. Assurance The behaviour of employees of the university instils confidence in students. You feel safe in your transactions with the university. Employees of the university are consistently courteous with you. Employees of the university have the knowledge to answer your questions. Empathy The university gives you individual attention. The university has operating hours convenient to all its students. The university has employees who give you personal attention. The university has your best interest at heart.

Expectations Means (SD)

Perceptions Means (SD)

Gapa Mean

t-value

4.59(0.49) 4.70(0.46)

4.30(0.81) 4.30(0.81)

–0.29 –0.40

5.93* 7.90*

4.64(0.48)

4.17(0.89)

–0.47

8.42*

4.42(0.69)

3.98(0.85)

–0.44

7.77*

4.40(0.74)

4.24(0.78)

–0.16

3.69*

4.53(0.63)

4.23(0.90)

–0.30

5.88*

4.52(0.66)

4.08(0.91)

–0.44

6.96*

4.53(0.63)

4.20(0.78)

–0.33

6.08*

4.60(0.70)

4.26(0.80)

–0.34

6.38*

4.60(0.51)

4.23(0.81)

–0.37

6.94*

4.50(0.72)

4.18(0.85)

–0.32

5.83*

4.54(0.64)

4.20(0.88)

–0.34

6.10*

4.57(0.60)

4.19(0.93)

–0.38

6.90*

4.55(0.60)

4.17(0.90)

–0.38

7.11*

4.55(0.60)

4.24(0.85)

–0.31

4.85*

4.56(0.66)

4.20(0.88)

–0.36

5.98*

4.52(0.64)

4.20(0.80)

–0.32

6.32*

4.64(0.63) 4.53(0.72)

4.23(0.91) 4.31(0.79)

–0.41 –0.22

6.43* 3.48*

4.52(0.55)

4.00(0.78)

–0.52

9.87*

4.46(0.64)

4.28(0.72)

–0.18

4.49*

(continued)

K. Hussain et al.

206 Table 4 (continued) Employees of the university understand your specific needs. Student satisfaction I am happy from the service quality of the university. Overall, I am a satisfied student at this university.

4.52(0.64)

4.26(0.75)

–0.26

5.57*

4.20(0.94) 4.24(0.72)

Note: SD: Standard deviation, all the standard deviations are in parenthesis; Gap mean is defined as perception mean – expectation mean; *t-test (two-tailed) with probability 4.70) regarding the academic service dimensions. The following items were rated highly: “your interest in the subjects is increasing” (M ¼ 4.76, SD ¼ 0.54), “you learn and understood the subject materials in classes” (M ¼ 4.74, SD ¼ 0.46), “instructors enhance presentations with the use of humor” (M ¼ 4.75, SD ¼ 0.59), “you are encouraged to ask questions and are given meaningful answer” (M ¼ 4.79, SD ¼ 0.45), “methods of evaluating student work are fair and appropriate” (M ¼ 4.78, SD ¼ 0.55), and “required readings/texts are valuable” (M ¼ 4.74, SD ¼ 0.44), However, relatively low expectation scores (mean < 4.50) are found for “instructors give lectures that facilitate taking notes” (M ¼ 4.40, SD ¼ 0.95), “instructors contrast implications of various theories” (M ¼ 4.48, SD ¼ 0.76), “instructors present the background or origin of ideas/concepts developed in class” (M ¼ 4.40, SD ¼ 0.86), “instructors discuss current developments in subjects” (M ¼ 4.49, SD ¼ 0.70), “you are encouraged to participate in class discussions” (M ¼ 4.49, SD ¼ 0.77), “you are invited to share ideas and knowledge” (M ¼ 4.28, SD ¼ 0.81), and “instructors are accessible to students during office hours or after class” (M ¼ 4.40, SD ¼ 0.70). This indicates that respondents (hospitality and tourism students) were sensitive about learning values, instructors’ enthusiasm, course organization, breadth of coverage, group interaction, individual rapport, exams/grading policies, and the assignment dimensions of academic services. As shown in Table 5, respondents gave relatively high perception scores (mean > 3.60) for “proposed objectives agree with those actually taught so you know where the courses are going” (M ¼ 3.63, SD ¼ 0.92), “instructors present point of views other than his/her own when appropriate” (M ¼ 3.72, SD ¼ 0.94), “instructors discuss current developments in subjects” (M ¼ 3.73, SD ¼ 0.95), “you are encouraged to participate in class discussions” (M ¼ 3.70, SD ¼ 1.15), “instructors make students feel welcome in seeking help/advice in or outside of class” (M ¼ 3.61, SD ¼ 1.06) and “courses pace is fast” (M ¼ 3.67, SD ¼ 0.94). However, there are relatively low perception scores (mean < 3.40) for “your interest in the

Towards Service Excellence: The Zone of Tolerance for Hospitality and Tourism. . .

207

Table 5 Gap Analysis (Perceptions – Expectations) for Academic Services Gapa

means (SD)

Perceptions means (SD)

4.68(0.70)

3.55(1.16)

–1.13

16.93*

4.59(0.65)

3.41(1.05)

–1.18

18.18*

4.76(0.54) 4.74(0.46)

3.39(1.13) 3.44(1.18)

–1.37 –1.30

20.30* 18.69*

4.69(0.48)

3.42(1.07)

–1.27

19.97*

4.65(0.60)

3.21(1.22)

–1.44

20.45*

4.75(0.59)

3.40(1.25)

–1.35

21.29*

4.66(0.62)

3.51(1.18)

–1.15

17.02*

4.59(0.64) 4.65(0.63)

3.42(1.07) 3.50(1.05)

–1.17 –1.15

16.63* 7.21*

4.67(0.54)

3.63(0.92)

–1.04

10.54*

4.40(0.95)

3.51(1.15)

–0.89

12.71*

4.48(0.76)

3.38(1.20)

–1.10

13.65*

4.40(0.86)

3.24(1.14)

–1.16

14.02*

4.65(0.76)

3.72(0.94)

–0.93

16.04*

4.49(0.70)

3.73(0.95)

–0.76

12.73*

4.49(0.77)

3.70(1.15)

–0.79

10.91*

4.28(0.81)

3.60(1.06)

–0.68

10.23*

4.79(0.45)

3.50(1.27)

–1.29

17.39*

4.60(0.62)

3.27(1.06)

–1.33

19.93*

Expectations Instructional quality dimensions Learning values You find your courses intellectually challenging and stimulating. You are learning something which you consider valuable. Your interest in the subjects is increasing. You learn and understood the subject materials in classes. Instructors’ enthusiasm Instructors are enthusiastic about teaching courses. Instructors are dynamic and energetic in conducting the courses. Instructors enhance presentations with the use of humour. Instructors’ style of presentation holds your interest during class. Course organization Instructors’ explanations are always clear. Course materials are well prepared and carefully explained. Proposed objectives agree with those actually taught so you know where the courses are going. Instructors give lectures that facilitate taking notes. Breadth of coverage Instructors contrast the implications of various theories. Instructors present the background or origin of ideas/concepts developed in class. Instructors present point of views other than his/her own when appropriate. Instructors discuss current developments in subjects. Group interaction You are encouraged to participate in class discussions. You are invited to share their ideas and knowledge. You are encouraged to ask questions and are given meaningful answers. You are encouraged to express your own ideas and/or questions?

t-value

mean

(continued)

208

K. Hussain et al.

Table 5 (continued) Gapa

means (SD)

Perceptions means (SD)

4.60(0.61)

3.52(1.04)

–1.08

16.81*

4.55(0.72)

3.61(1.06)

–0.94

14.43*

4.56(0.60)

3.32(1.20)

–1.24

16.54*

4.40(0.70)

3.38(1.06)

–1.02

15.04*

4.54(0.75)

3.47(1.12)

–1.17

15.87*

4.78(0.55)

3.42(1.06)

–1.36

20.25*

4.59(0.64)

3.28(1.24)

–1.31

17.63*

4.74(0.44) 4.68(0.52)

3.50(1.24) 3.56(1.20)

–1.24 –1.12

17.94* 15.73*

4.56(0.70) 4.69(0.58) 4.59(0.72) 4.68(0.65)

3.47(1.08) 3.52(1.06) 3.67(0.94) 3.57(1.18)

–1.09 –1.17 –0.92 –1.11

17.02* 17.03* 16.01* 17.83*

Expectations Instructional quality dimensions Individual rapport Instructors are friendly towards individual students. Instructors make students feel welcome in seeking help/advice in or outside of class. Instructors have a genuine interest in individual students. Instructors are accessible to students during office hours or after class. Exams/grading policies Feedback on examinations/graded materials is valuable. Methods of evaluating student work are fair and appropriate. Examinations/graded materials test course content as emphasized by instructors. Assignments Required readings /texts are valuable. Readings, home-works, etc., contribute to appreciation and understanding of the subject. Workload difficulty Courses are difficult. Workload of courses is heavy. Courses pace is fast. Significant hours per week are required outside of class to study. Student satisfaction I am happy from the instructional quality of the university. Overall, I am a satisfied student at this university.

t-value

mean

3.78(1.12) 3.93(1.20)

Note: SD: Standard deviation, all the standard deviations are in parenthesis a Gap mean is defined as perception mean – expectation mean *t-test (two-tailed) with probability –1.30) are found for the learning values, instructors’ enthusiasm, group interaction, and exams/grading policies dimensions of academic services, such as “your interest in the subjects is increasing” (expectations M ¼ 4.76, SD ¼ 0.54; perceptions (M ¼ 3.39, SD ¼ 1.13; gap M ¼ –1.37, t ¼ 20.30, p < 0.05), “instructors are dynamic and energetic in conducting the courses” (expectations M ¼ 4.65, SD ¼ 0.60; perceptions M ¼ 3.21, SD ¼ 1.22; gap M ¼ –1.44, t ¼ 20.45, p < 0.05), “instructors enhance presentations with the use of humor” (expectations M ¼ 4.75, SD ¼ 0.59; perceptions M ¼ 3.40, SD ¼ 1.25; gap M ¼ –1.35, t ¼ 21.29, p < 0.05), “you are encouraged to express your own ideas and/or questions” (expectations M ¼ 4.60, SD ¼ 0.62; perceptions M ¼ 3.27, SD ¼ 1.06; gap M ¼ –1.33, t ¼ 19.93, p < 0.05), “methods of evaluating student work are fair and appropriate” (expectations M ¼ 4.78, SD ¼ 0.55; perceptions M ¼ 3.42, SD ¼ 1.06; gap M ¼ –1.36, t ¼ 20.25, p < 0.05), and “examinations/graded materials test course content as emphasized by instructors” (expectations M ¼ 4.59, SD ¼ 0.64; perceptions M ¼ 3.28, SD ¼ 1.24; gap M ¼ –1.31, t ¼ 17.63, p < 0.05). These findings suggest that the expected instructional quality was not experienced by respondents and that the quality of instruction provided by the university did not meet expectations. Nevertheless, the shortfall did not seem to undermine student perception of overall instructional quality (M ¼ 3.78, SD ¼ 1.12) and their satisfaction (M ¼ 3.93, SD ¼ 1.20); as presented in Table 5, evaluation scores for both items are found to be reasonable.

5 Discussion The importance of this study can be viewed from two dimensions: theoretical and practical. From a theoretical perspective, this study fills an important gap in service quality literature by proposing and testing a holistic service quality assessment framework. From a practical perspective, the proposed conceptual framework can be effectively used as a diagnostic tool in the higher education sector, to identify weaknesses and strengths in the quality of hospitality and tourism programs in Malaysia. Furthermore, this study utilized the zone of tolerance concept to describe the range of tolerance levels for students’ service expectations, and to determine the level of students’ satisfaction with educational services. Findings demonstrate that the concept of the zone of tolerance is likely to help practitioners identify problem areas that need improvement (Mintrop 2019), and to assess the effectiveness of strategies utilized to improve service quality (Lo et al. 2002).

210

K. Hussain et al.

The measurement of a zone of tolerance is a reliable method for determining service variations in higher education. Findings reveal that hospitality and tourism students have a narrow zone of tolerance, in non-academic services as well as in academic services; this indicates that these students are not likely to accept heterogeneity in the quality of services provided by their universities. Results also confirm that services can be evaluated according to two different types of expectations: desired and adequate expectations. In other words, hospitality and tourism students use two different types of expectations (desired and adequate) as a standard for comparing services. The proposition of Zeithaml et al. (1993), regarding the use of desired expectation and adequate expectation as comparison standards, was supported by the results in this study. In terms of gap analysis, the findings reveal that the hospitality and tourism students perceived a shortfall in both the non-academic and academic service quality provided by the university, implying that these students’ expectations of service quality were not met with respect to tangibles, reliability, empathy (non-academic items) and learning values, instructors’ enthusiasm, group interaction, and exams/ grading policies (academic items). Similar findings were reported by Nadiri and Hussain (2005); Hussain and Birol (2011); Nunkoo et al. (2013); Beloucif et al. (2018); Sharabati et al. (2019); and Marimon et al. (2019). The findings suggest that the overall evaluation of service quality in higher education should be determined by both the non-academic and academic service quality dimensions, as presented in the conceptual framework in this study. Some scholars have argued that the measurement of expectations does not provide the information necessary for estimating service quality (Gregory and Parsa 2013; Zaibaf et al. 2013). They argue that a performance-only measure (such as SERVPERF) is a better predictor of service quality (Cronin and Taylor 1992; Babakus and Boller 1992; Šerić and Gil-Saura 2012; Tsai et al. 2012). However, it has been acknowledged that such an approach limits the explanatory power of service quality measurement (Parasuraman et al. 1994), because an assessment of desired and adequate expectations might be valuable in determining and monitoring service performance and student satisfaction. In addition, this information may be used as an internal benchmark to enhance the level of service quality, based on the capabilities and capacities of the educational establishment.

5.1

Management Implications

As competition for students has increased in higher education, student retention has received greater attention. Given that service quality and student satisfaction are important factors in retention, it is important that universities measure service quality and use the findings for continuous improvement; this will help to achieve service excellence, thereby delighting hospitality and tourism students with the educational services. Coate (1990) reports that quality is what our customers tell us it is, not what we say it is. In this regard, progress can only be determined and improved by

Towards Service Excellence: The Zone of Tolerance for Hospitality and Tourism. . .

211

measurement. For higher education institutions, the holistic service-quality approach proposed and tested in this study can be the initial starting point for improving service quality measures. The results of this study have a number of practical implications for authorities (university management) seeking to identify the range of tolerance and level of student satisfaction in their respective institutes of higher education. Because hospitality and tourism students are likely to become increasingly demanding in terms of the level of service they consider to be adequate, institutes of higher education will find it challenging to satisfy all service quality expectations of students. Further, when aiming for service excellence, institutional authorities should also pay attention to the tangibles, reliability, empathy (non-academic) and learning values, instructors’ enthusiasm, group interaction, and exams/grading policies (academic) components of their offer, if they wish to improve the quality of their services. Finally, the reported results raise some issues regarding how authorities should monitor quality and prioritize resources, to anticipate hospitality and tourism students’ needs more effectively. Questions might also be asked about the extent to which authorities are really aware of the needs of their students, and what methods they employ to assess these constantly changing requirements. For non-academic services, higher education authorities should ensure that instructors and service employees are highly qualified and well trained, and that they understand the importance of achieving service excellence through uplifting the level of service that the university expects to provide for its students. They should also ensure that instructors and service employees are well motivated, and that they pay attention to other factors that are required for the provision of high service quality; these might incur increased costs, but will result in improved student satisfaction.

5.2

Limitations and Avenues for Future Research

This research has certain limitations. Firstly, the sample in this study is small, and limited to hospitality and tourism students studying at universities situated in Malaysia. Other universities within the Association of Southeast Asian Nations (ASEAN) region should also be included in the sample, in further research on service quality for tourism and hospitality education. Students from other universities across Asia may have different expectations from those studied here in Malaysia. Secondly, this study examined the influence of five non-academic services and nine academic services on students’ zones of tolerance in higher education. As proposed by Zeithaml et al. (1993), there might be other factors that determine the width of the zone of tolerance, such as situational factors, advertising, price, retention, and wordof-mouth recommendations. Subsequent empirical research should address the impact of these factors on student expectations. Additionally, the students’ responses may be influenced by their personality and their mood (affect) on the day data were collected. Future studies might investigate the relationship between service quality assessment and mood in a higher education environment, using UnivQUAL and

212

K. Hussain et al.

EduQUAL scales. Finally, many issues raised by Zeithaml et al. (1993) remain to be explored. These include topics such as how marketing strategies can be designed to manage adequate service-level expectations; the role of predicted service in influencing how students evaluate service quality: implementation of different facilities, such as e-learning, virtual reality and augmented reality teaching; and how the higher education sector can use the zone of tolerance concept to formulate effective marketing strategies.

6 Conclusion This study provides higher education service-quality researchers with useful guidelines for future research that may result in more rigorous theoretical and methodological processes. The terms student satisfaction and quality have been central to the philosophy of the higher education authorities, and their importance continues with the promise of a renewed, foreseeable prosperity for the higher education of the future, with the inclusion of new technologies. Nevertheless, hospitality and tourism education research has been instrumental in providing higher education authorities with valuable knowledge, to assist them with their constant pursuit to gain a competitive advantage. If a higher education institution is providing improved service quality, this results in increased student satisfaction. Satisfied and happy students are likely to be motivated in their studies (Elliott and Shin 2002), which leads to success and better career opportunities for them; and eventually, the business sector will demand more graduates from such institutions. Also, satisfied and happy students are likely to recommend their institutions to other students (Navarro et al. 2005), which results in student retention and eventually attracts new students. In other words, service quality can influence students’ recommendations of programs to others, and influence their future monetary contributions in support of their university (Allen and Davis 1991). One of the important suggestions of this study is that higher education authorities should maintain service excellence according to their students’ desired expectations if they are to delight their students. In addition, the use of an expectation scale (incorporating gap theory) provides diagnostic information about the level of service performance from the students’ perspective. The use of a zone of tolerance method provides useful information to higher education authorities for developing quality-improvement strategies and student recruitment strategies. Although this study was conducted in one country, we believe that universities in other ASEAN countries will also benefit from these research findings.

Towards Service Excellence: The Zone of Tolerance for Hospitality and Tourism. . .

213

References Abdullah F (2006) Measuring service quality in higher education: HEdPERF versus SERVPERF. Mark Intell Plan 24(1):31–47 Aldridge S, Rowley J (1998) Measuring customer satisfaction in higher education. Qual Assur Educ 6(4):197–205 Ali F, Hussain K, Konar R, Jeon HM (2017) The effect of technical and functional quality on guests’ perceived hotel service quality and satisfaction: a SEM-PLS analysis. J Qual Assur Hosp Tour 18(3):354–378 Allen J, Davis D (1991) Searching for excellence in marketing education: the relationship between service quality and three outcome variables. J Mark Educ 13(1):47–55 Ardi R, Hidayatno A, Zagloel TYM (2012) Investigating relationships among quality dimensions in higher education. Qual Assur Educ 20(4):408–428 Avdjieva M, Wilson M (2002) Exploring the development of quality in higher education. Manag Serv Qual 12(6):372–383 Babakus E, Boller G (1992) An empirical assessment of SERVQUAL scale. J Bus Res 24 (3):253–268 Beloucif A, Mehafdi M, Komey NA (2018) Expectation as a key determinant of international students’ satisfaction: a case study of business school MSc students. J Appl Res Higher Edu. https://doi.org/10.1108/JARHE-04-2017-0048 Berry LL, Parasuraman A (1991) Marketing services. The Free Press, New York Bouchon F, Hussain K, Konar R (2017) Event management education and event industry: a case of Malaysia. MOJEM: Malaysian Online J Edu Manag 3(1):1–17 Cao Y, Li X (2014) Quality and quality assurance in Chinese private higher education: a multidimensional analysis and a proposed framework. Qual Assur Educ 22(1):65–87 Cavana RY, Corbett LM, Lo (Glenda) YL (2007) Developing zones of tolerance for managing passenger rail service quality. Int J Qual Reliability Manag 24(1):7–31 Chatterjee A, Ghosh C, Bandyopadhyay S (2009) Assessing students’ rating in higher education: a SERVQUAL approach. Total Qual Manag Bus Excell 20(10):1095–1109 Chen LF, Chen SC, Su CT (2018) An innovative service quality evaluation and improvement model. Serv Ind J 38(3/4):228–249 Coate LE (1990) Implementing total quality management in a university setting: TQM at Oregon State University. J Qual Particip 13(6):90–95 Cronin JJ, Taylor SA (1992) Measuring service quality: a reexamination and extension. J Mark 56 (3):55–68 Cumming J (2013) Two issues in educational research: a response to “Reviewing education concerns”. J Hosp Leis Sport Tour Educ 13:1–4 Eagle L, Brennan R (2007) Are students customers? TQM and marketing perspectives. Qual Assur Educ 15(1):44–60 Elliott KM, Shin D (2002) Student satisfaction: an alternative approach to assessing this important concept. J High Educ Policy Manag 24(2):199–209 Ford JB, Joseph M, Joseph B (1993) Service quality in higher education: a comparison of universities in the United States and New Zealand using SERVQUAL. Enhancing knowledge development in marketing, American Marketing Association Educators’ Proceedings pp 75–81 Gregory AM, Parsa HG (2013) Kano’s model: an integrative review of theory and applications to the field of hospitality and tourism. J Hosp Market Manag 22(1):25–46 Grobelna A, Marciszewska B (2013) Measurement of service quality in the hotel sector: the case of Northern Poland. J Hosp Market Manag 22(3):313–332 Guilbault M (2018) Students as customers in higher education: the (controversial) debate needs to end. J Retail Consum Serv 40:295–298 Gursoy D, Rahman I, Swanger NA (2012) Industry’s expectations from hospitality schools: what has changed? J Hosp Tour Educ 24(4):32–42

214

K. Hussain et al.

Gursoy D, Swanger N (2005) An Industry-Driven Model of Hospitality Curriculum for Programs Housed in Accredited Colleges of Business – Part II. J Hosp Tour Educ 17(2):49–56 Gursoy D, Umbreit WT (2005) Exploring students’ evaluation of teaching effectiveness: what factors are important? J Hosp Tour Res 29(1):91–109 Harvey L (2003) Editorial: student feedback. Qual High Educ 9(1):3–20 Hennig-Thurau T, Langer MF, Hansen U (2001) Modeling and managing student loyalty: an approach based on the concept of relationship quality. J Serv Res 3(4):331–344 Hogreve J, Bilstein N, Mandl L (2017) Unveiling the recovery time zone of tolerance: when time matters in service recovery. J Acad Mark Sci 45(6):866–883 Hsieh JPA, Sharma P, Rai A, Parasuraman A (2013) Exploring the zone of tolerance for internal customers in IT-enabled call centers. J Serv Res 16(3):277–294 Hsieh YH, Yuan ST (2019) Toward a theoretical framework of service experience: perspectives from customer expectation and customer emotion. Total Quality Management & Business Excellence. https://doi.org/10.1080/14783363.2019.1596021 Hussain K, Birol C (2011) The assessment of non-academic and academic service quality in higher education. Euro Asian J Educ Res 11(42):95–116 Hussain K, Ahmad AM, Ragavan NA, Leong QL (2020) Raising standards for hospitality and tourism education in Malaysia. Worldwide Hospitality and Tourism Themes 12(2). https://doi. org/10.1108/WHATT-12-2019-0083 Jancey J, Burns S (2013) Institutional factors and the postgraduate student experience. Qual Assur Educ 21(3):311–322 Kanji GK, Tambi AMBA (1999) Total quality management in UK higher education institutions. Total Qual Manag 10(1):129–153 LaBay DG, Comm CL (2003) A case study using gap analysis to assess distance learning versus traditional course delivery. Int J Educ Manag 17(7):312–317 Li RY, Kaye M (1998) A case study for comparing two service quality measurement approaches in the context of teaching in higher education. Qual High Educ 4(2):103–113 Lo YL, Cavana RY, Corbett LM (2002) Quality and customer satisfaction in passenger rail services: developing zones of tolerance for managing quality. IFSAM Conference, Gold Coast, Queensland, Australia Long P, Tricker T, Rangecroft M, Gilroy P (1999) Measuring the satisfaction gap: education in the market place. Total Qual Manag 10(4/5):772–778 Lukášová R, Kuchařová D (2019) Criteria of Satisfaction with Universities from the Perspective of Czech Students: a Qualitative Research Study. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 67(4):1049–1060 Mahapatra SS, Khan MS (2007) A neural network approach for assessing quality in technical education: an empirical study. Int J Prod Qual Manag 2(3):287–306 Marimon F, Mas-Machuca M, Berbegal-Mirabent J, Llach J (2019) UnivQual: a holistic scale to assess student perceptions of service quality at universities. Total Qual Manag Bus Excell 30 (1/2):184–200 Marsh HW (1982) SEEQ: a reliable, valid and useful instrument for collecting students’ evaluations of university teaching. Br J Educ Psychol 52(1):77–95 Marsh HW (1987) Students’ evaluations of university teaching: research findings, methodological issues, and directions for further research. J Educ Res 11(3):253–388 McKeachie WJ (1979) Student ratings of faculty: a reprise. Academe 65(6):384–397 Mintrop R (2019) Design-based school improvement: a practical guide for education leaders. Harvard Education Press Nadiri H, Hussain K (2005) Diagnosing the zone of tolerance for hotel services. Manag Serv Qual 15(3):259–277 Nadiri H, Hussain K (2016) Zone of tolerance for healthcare services: a diagnostic model of public and private hospital service quality. Argumenta Oeconomica 2(37):245–280 Nadiri H, Hussain K, Kandampully J (2011) Zones of tolerance for higher education services: a diagnostic model of service quality towards student services. Educ Sci 36(169):112–126

Towards Service Excellence: The Zone of Tolerance for Hospitality and Tourism. . .

215

Naidoo V (2020) Service quality imperative for quality assurance in higher education: a case study. Sony M, Karingada KT, Baporikar N (eds), Quality Management Implementation in Higher Education: practices, Models, and Case Studies. IGI Global pp 386–400 Navarro MM, Iglesias MP, Torres MPR (2005) Measuring customer satisfaction in summer courses. Qual Assur Educ 13(1):53–65 Nunkoo R, Gursoy D, Ramkissoon H (2013) Developments in hospitality marketing and management: social network analysis and research themes. J Hosp Market Manag 22(4):269–288 Oldfield BM, Baron S (2000) Student perceptions of service quality in a UK university business and management faculty. Qual Assur Educ 8(2):85–95 Palmér H, Johansson M, Karlsson L (2018) Teaching for entrepreneurial and mathematical competences: teachers stepping out of their comfort zone. Palmér H, Skott J (eds) Students’ and teachers’ values, attitudes, feelings and beliefs in mathematics classrooms. Springer, Cham pp 13–23 Parasuraman A, Berry LL, Zeithaml VA (1991) Refinement and reassessment of the SERVQUAL scale. J Retail 67(4):420–450 Parasuraman A, Zeithaml VA, Berry LL (1988) SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality. J Retail 64(1):12–40 Parasuraman A, Zeithaml VA, Berry LL (1994) Alternative scales for measuring service quality: a comparative assessment based on psychometric and diagnostic criteria. J Retail 70(3):201–203 Park S, Nicolau JL (2019) Image effect on customer-centric measures of performance. Ann Tour Res 76:226–238 Rodríguez-Antón JM, Alonso-Almeida MDM, Rubio Andrada L, Celemín Pedroche M (2013) Are university tourism programmes preparing the professionals the tourist industry needs? A longitudinal study. J Hosp Leis Sport Tour Educ 12(1):25–35 Ruben BD (2018) Quality in higher education. Routledge Ruby CA (1998) Assessing satisfaction with selected student services using SERVQUAL, a market-driven model of service quality. NASPA J 35(4):331–341 Sander P, Stevenson K, King M, Coates D (2000) University students’ expectations of teaching. Stud High Educ 25(2):309–323 Sandmaung M, Khang DB (2013) Quality expectations in Thai higher education institutions: multiple stakeholder perspectives. Qual Assur Educ 21(3):260–281 Schoellman T (2012) Education quality and development accounting. Rev Econ Stud 79 (1):388–417 Šerić M, Gil-Saura I (2012) ICT, IMC, and brand equity in high-quality hotels of Dalmatia: an analysis from guest perceptions. J Hosp Market Manag 21(8):821–851 Sharabati AAA, Alhileh MM, Abusaimeh H (2019) Effect of service quality on graduates’ satisfaction. Qual Assur Educ 27(3):320–337 Sharma P (2019) Intercultural service encounters: cross-cultural interactions and service quality. Palgrave Macmillan Shoeb ZH (2011) Identifying service superiority, zone of tolerance and underlying dimensions: service quality attributes in a private university library in Bangladesh. Libr Rev 60(4):293–311 Solnet D (2012) Service management in hospitality education: review and reflection. J Hosp Market Manag 21(2):184–214 Stamenkov G, Dika Z (2019) Quo vadis, (e-) service quality? Towards a sustainability paradigm. Total Qual Manag Bus Excell 30(7/8):792–807 Stodnick M, Marley KA (2013) A longitudinal study of the zone of tolerance. Manag Serv Qual 23 (1):25–42 Sultan P, Wong HY (2011) Service Quality in a Higher Education Context: antecedents and Dimensions. International Review of Business Research Papers 7(2):11–20 Swanger N, Gursoy D (2007) An industry-driven model of hospitality curriculum for programs housed in accredited colleges of business – Part III. J Hosp Tour Educ 19(2):14–22

216

K. Hussain et al.

Teng CC, Horng JS, Baum T (2012) Academic perceptions of quality and quality assurance in undergraduate hospitality, tourism and leisure programmes: a comparison of UK and Taiwanese programmes. J Hosp Leis Sport Tour Educ 8(1):37–54 Tinto V (1993) Leaving College, 2nd edn. University of Chicago Press Tsai H, Suh E, Fong C (2012) Understanding male hotel spa-goers in Hong Kong. J Hosp Market Manag 21(3):247–269 Tuker B, Oliver B, Gupta R (2013) Validating a teaching survey which drives increased response rates in a unit survey. Teach High Educ 18(4):427–439 UNWTO (2019) Tourism highlights. https://www.e-unwto.org/ Walker J, Baker J (2000) An exploratory study of a multi-expectation framework for services. J Serv Mark 14(5):411–431 WTTC (2018) Travel and tourism economic impact 2019 Malaysia. https://wttc.org/en-us/ Wu LW, Wang CY (2011) Satisfaction and zone of tolerance: the moderating roles of elaboration and loyalty programs. Manag Serv Qual 22(1):38–57 Wu LW (2011) Satisfaction, inertia, and customer loyalty in the varying levels of the zone of tolerance and alternative attractiveness. J Serv Mark 25(5):310–322 Yap KB, Sweeney JC (2007) Zone-of-tolerance moderates the service quality-outcome relationship. J Serv Mark 21(2):137–148 Zaibaf M, Taherikia F, Fakharian M (2013) Effect of perceived service quality on customer satisfaction in hospitality industry: gronroos’ service quality model development. J Hosp Market Manag 22(55):1–15 Zeithaml VA, Berry LL, Parasuraman A (1993) The nature and determinants of customer expectations of service. J Acad Mark Sci 21(1):1–12

Conclusion: The Future of Service Excellence in Asia Chun Meng Tang, Dirk Klimkeit, and K. Thirumaran

An increasing interest in traveling, fueled by affordable airfares offered by low-cost airlines, has led to an expanding number of international tourists to Asia. Amid a growing tourism and hospitality industry, Asia is attracting more businesses to the region, such as attractions, hotels, resorts, and restaurants. As the number of competitors grows, coupled with the easily available online information that allows tourists to review businesses’ service quality, competition becomes more intense. For organizations to sustain their business, building up the capabilities and competencies to attract and retain customers has been a key survival factor. In this highly competitive business environment, to merely satisfy customers might no longer be sufficient for a business to attract and retain customers. Hence, there is a need for businesses to differentiate themselves by going beyond customer satisfaction to provide customer delight. In order to do so, a business aims to deliver a high level of service excellence (Gouthier 2013). To fulfil customers’ needs is a key step toward achieving customer satisfaction and customer delight. However, not all customers’ needs are equally important, as Maier Tolic et al. have shown in their chapter, drawing on examples from Singapore and Malaysia. Customer needs, according to the dimensions of satisfactiondissatisfaction and service function-dysfunction, may be categorized into five types: attractive, one-dimensional, must-be, indifferent, and reverse (Amritesh and Chatterjee 2018; Berger et al. 1993). The must-be needs, e.g., a clean bathroom, are top priority, as these needs are the thresholds for a business to be included in a customer’s preliminary set of alternatives. On the other hand, the indifferent and C. M. Tang · K. Thirumaran (*) JCU Singapore Business School, James Cook University Singapore, Singapore, Singapore e-mail: [email protected]; [email protected] D. Klimkeit Center of Service Management Studies, Baden-Wuerttemberg Cooperative State University (DHBW) Stuttgart, Stuttgart, Germany e-mail: [email protected] © Springer Nature Switzerland AG 2021 K. Thirumaran et al. (eds.), Service Excellence in Tourism and Hospitality, Tourism, Hospitality & Event Management, https://doi.org/10.1007/978-3-030-57694-3_14

217

218

C. M. Tang et al.

reverse needs have no effect on customer satisfaction, or can result in customer dissatisfaction, respectively. To further impress the customers, businesses should look to the one-dimensional and attractive needs types (Berger et al. 1993). The one-dimensional needs, such as early room check-in and late check-out, are a key to customer satisfaction. When a service is more functional, the customers are more satisfied; accordingly, when the product or service is less functional, the customers are less satisfied. The attractive needs, e.g., choice of pillows or spacious bathrooms, are the delighters. It is not necessarily easy for businesses to identify the attractive needs of their customers, as customers may not actually know what can delight them, and there are different needs among different customer segments. However, it is essential that businesses do not focus solely on the attractive needs, as the one-dimensional and must-be needs are also key to competitiveness. Given the levels of competition in the industry, attractive needs may eventually become one-dimensional or must-be needs. It remains an immediate and pressing question what tourism and hospitality businesses must do in their service operations management, and how they do it, in order to meet not only the must-be needs, but also the one-dimensional and attractive needs, as a means of staying ahead of the competition. In order to deliver service excellence, Frei (2008) suggests that businesses should identify the attributes that the targeted customers value. There are also many ways of attempting to eliminate waste, to create value for the customers in the tourism and hospitality industry. Fiala and Thirumaran in their chapter suggest that businesses in the industry use the Lean Six Sigma management approach to isolate processes, identify problematic areas, and mitigate them with targeted solutions. This edited book set out to examine what and how companies in the tourism and hospitality industry are doing to deliver a high level of service excellence. The 12 chapters in the book contribute valuable insights into the different practices and challenges to service excellence in the tourism and hospitality industry in Asia. As service is adopting a new mode of delivery beyond human-to-human engagements, the task of creating service delight will become even more challenging. As highlighted in the chapter by Kavoura, the use of robots and digital information to facilitate service appears to be catching up fast with the younger generation’s technological aptitude. As highlighted in the chapters by Weitzer and Weislämle, and by Pourabedin, ultimately the appropriateness, helpfulness, and efficiency of such online digital experience and automation services matters in achieving customer delight. However, as Kavoura posits, there are limits to what extent the use of robots is really appropriate in the tourism and hospitality industry. As the study tour—which formed the empirical basis of several chapters in this book—has shown, guest delight in the industry is very much dependent on the human touch, and interaction with human service-providers. Self check-in technology though may appear to be efficient and speedy, the human touch in the process would be missing. Only warm and passionate staff can present hospitality in a unique way. Thus, hospitality businesses must carefully choose the appropriate use of robotics: Where does it enhance guest delight? Where does it diminish it? Which category

Conclusion: The Future of Service Excellence in Asia

219

of guests (business vs. vacation) does the hotel cater to? What are their expectations—e.g., swift check-in/check-out vs. an experience of human interaction? (see also the chapter by Greiner and Goh). Hence, technology should be used to enhance and not replace service. When discussing investments in technology and other infrastructure, as well as sophisticated systems of quality management and customer delight measurement, it seems that mainly larger businesses in the tourism and hospitality industry would be able to provide service excellence. As noticed during the study tour to Singapore and Malaysia, many players in the tourism and hospitality industry in Asia are small and medium-sized enterprises (SMEs), often family-owned. Several authors in this book, such as Maier Tolic et al., highlight how small business are also able to delight their guests without sophisticated servicescapes and management systems. The demonstrated attitude of staff toward guests is key here. The way a hotel staff interacts with guests can overcome any negative impression from the guests experience of the facilities. Comprehensive systems of service excellence, such as DIN SPEC 77224 (DIN 2011), may probably need to be adapted to small-scale businesses, to make them practically applicable. In their chapter, Maier Tolic et al. make some tentative suggestions, with a focus on delight measurement. In the introduction to this book, we presented a standard for service excellence that was developed in Europe—the above-mentioned DIN SPEC 77224 (DIN 2011)—as this was the first standard on how to systematically provide service excellence. It is interesting to note that currently, a global ISO standard (ISO TC/312) is being developed based on DIN SPEC 77224, under the leadership of the German standard-setting DIN and, in person, by Professor Michael Gouthier, who was also the mastermind behind the original DIN standard (ISO 2020). This raises a key question: Are the prescriptions of how to achieve service excellence universal? Although this book has a geographic focus on Asia, judging by the chapters in this book at least, we did not find sufficient evidence to suggest otherwise. However, certain local specificities may need to be taken into account in the actual implementation. As the chapter by Suryanarayanan et al. in this book has also shown, there may be different cultural aspects from the regional or national perspectives. For example, service excellence in the broader definition can be demonstrated by the hospitality conveyed from the heart of the host. Different body language and presentations in some Asian traditions may not necessarily conform to Western ideals (see also Liu et al. 2016). In fact, it is also debatable to what extent applying different customs, such as clasping hands to greet someone in a local manner, and addressing someone by name in some cultures, may be a challenge. When standards are set, we often base them on what customers desire, and less so on what the host desires from the customers. Unless standards can address some of these humanistic differences in the values of the guests and hosts, customer delight will always be in a pendulum swing, oscillating between the Asian, Western, or African traditions of hospitality. We may have to wait and see how consistencies in standards can be applied across the industry in various regions and locales. A solution to this seeming conundrum may lie in looking at it on two levels: thus, a particular standard of the building blocks and general procedures for achieving

220

C. M. Tang et al.

service excellence may be universal, while the specific details of how it is implemented or “lived” in a given cultural context may vary. A significant point of contention that is not raised in this edited book, but which future research can investigate, are the differences between a service culture (such as Singapore) and a culturally hospitable destination (e.g., Thailand). Guests can distinguish between a service culture that is natural and one that is contrived. For example, a British case study found that the service staff’s use of language had a positive impact only if it was perceived as authentic, as staff could use their own style of expression rather than standardized cues (Kraak and Holmqvist 2017). In another study, it was found that the national cultures of individual travelers can inform us of their expectations, and that there are both differences and similarities among Asian and Western values of service quality (Zhang et al. 2015). Ultimately, all tourism and hospitality businesses seek to provide the ideal experience for their customers. Providing the desired products and services alone appears to be insufficient. The chapters of this book highlight that there has to be the extra human touch, a determined effort to achieve efficiency, aided by robotic and digital technology, and it must be easy for guests to access information or services, in order to create memorable experiences. These are useful pointers to solving the various issues of delivering service excellence, and can be a guide for industry professionals. Scholars in the discipline of tourism and hospitality may also find some of the theories regarding customer relations and service excellence expounded in this book to be debatable and extendable.

References Amritesh MSC, Chatterjee J (2018) Quality framework for credence-based informational services: Applying Kano’s method. Total Qual Manag Bus Excell 29(1/2):116–147 Berger C, Blauth R, Boger D, Bolster C, Burchill G, DuMouchel W, Pouliot F, Richter R, Rubinoff A, Shen D, Timko M, Walden D (1993) Kano’s methods for understanding customer-defined quality. Center for Quality Management Journal 2(4):3–36 DIN (2011) DIN SPEC 77224: Erzielung von Kundenbegeisterung durch Service Excellence. Beuth, Berlin Frei FX (2008) Four things a service business must get right. Harv Bus Rev 86(4):70–80 Gouthier M (2013) Kundenbegeisterung durch Service Excellence. Erläuterungen zur DIN SPEC 77224 und Best-Practices. Beuth, Berlin ISO (2020) ISO TC/312 Excellence in service. https://www.iso.org/committee/6721315.html (20 April 2020) Kraak JM, Holmqvist J (2017) The authentic service employee: Service employees’ language use for authentic service experiences. J Bus Res 72:199–209 Liu MT, Yan L, Phau I, Perez A, Teah M (2016) Integrating Chinese cultural philosophies on the effects of employee friendliness, helpfulness and respectfulness on customer satisfaction. Eur J Mark 50(3/4):464–487 Zhang Z, Li H, Law R (2015) Differences and similarities in perceptions of hotel experience: The role of national cultures. J Travel Tour Mark 32(1):2–14