Delivering Added Value through Servicescapes People Elements A Case Study on InterContinental Shenzhen Hotel, China

Introduction The highly competitive service industry has undergone a complete evolution in the way competition is perceived, both in context and scope.Advertising We will write a custom essay sample on Delivering Added Value through Servicescapes People Elements: A Case Study on InterContinental Shenzhen Hotel, China specifically for you for only $16.05 $11/page Learn More Today, more than ever before, every service-oriented organization must come up with ways and techniques to retain and attract new customers and at the same time maintain competitiveness and sustainable profit margins if it is to survive the ever competitive landscape (Walter et al 2010). Equally challenging is the fact that customers today have more information available to them, are more flexible in their decision-making processes and have more choices than ever before (Hu et al 2009), triggering a measured and sustained need by service firms to develop innovative strategies aimed at winning the satisfaction and loyalty of their customers (Simpeh et al 2011). To achieve customer loyalty and competitiveness, therefore, the management of service organizations not only need to understand the uniqueness of their customers but also develop strategies that can create value and influence the nature of customer experiences (Bitner, 1992; Simpeh et al, 2011). Against this backdrop, the present paper seeks to employ a case study approach to discuss how the InterContinental Shenzhen, based in China, applies the value creation concepts to shape customer experiences and create a differentiated service firm in the highly competitive service industry, and also to facilitate customer satisfaction. In particular, the discussion and analysis will focus on two fundamental value creation strategies – servicescape and employees. In servicescape, the interior decor of the hotel will be evaluated with a view to delineate how the added value concepts have been delivered, and ho w they influence customer service experiences, satisfaction and firm competitiveness. In terms of employees, this paper purposes to discuss and analyze how the front-line workers of the five-star hotel add value through the provision of differentiated customer experiences in service settings.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Additionally, the paper aims to build on the Stimulus Response Model and the Resource-Based Approach, to provide a conceptual understanding of how the value creation concepts influence customer behaviour, satisfaction and loyalty, and service experiences. Lastly, the paper aims to provide some critique by discussing the benefits and drawbacks of InterContinental Shenzhen’s value delivery strategies. Justification of the Study Hu et al (2009) suggest that â€Å"†¦whether a firm produces products or services is no longer a debate in the boardro om or among academics; the focus is centred primarily on the customer and the pursuit of superior customer perceived service quality, value, and image† (p. 111). Central to the achievement of these objectives, according to Minghetti (2005), is the strategic use of value creation concepts that demonstrate a deeper understanding and knowledge of customers’ needs, behaviour, and preferences. However, research demonstrates that many service firms are yet to understand the dynamics involved in the creation of differentiated services through the application of value creation concepts (Simpeh et al 2011), and others are still in the dark regarding the issue of using their physical environments to achieve competitive advantage through the creation of memorable customer experiences (Kim Oh 2004). It is these gaps in knowledge that the present paper seeks to address. Brief Overview of InterContinental Shenzhen As noted in the hotel’s official website, the main objective o f establishing the Intercontinental Hotels and Resorts brand â€Å"†¦was to assist local developers in the design, construction and management/operations of individual hotels in important international gateway destinations and traffic centres† (InterContinental Hotels Resorts 2012b, para. 2).Advertising We will write a custom essay sample on Delivering Added Value through Servicescapes People Elements: A Case Study on InterContinental Shenzhen Hotel, China specifically for you for only $16.05 $11/page Learn More Each hotel operating under this brand is designed to provide an experience uniquely and distinctly its own, qualifying the InterContinental brand to assume the undisputed emblem of glamour, sophistication and success that decades later, continue to define global travel and commerce in important destinations across the world. Opened in 2006 as a Spanish flavour resort, InterContinental Shenzhen hit the headlines not only for maintai ning and preserving the legend’s original facade but also for honouring its innovative acumen by becoming China’s first upmarket hotel to adopt a captivating Spanish theme and architecture (InterContinental Hotels Resorts 2012a). The interior design of the hotel, rooms, and amenities characteristically reflect the Spanish theme in every little detail, not only generating a complete immersion for its esteemed customers but also availing a customer’s service experience that meets and even surpasses the guests’ expectations (Spencer 2010). This experiential marketing strategy, according to Bruggen et al (2011), creates a memorable and highly differentiated customer experience while maintaining a highly targeted return on investment. The hotel boasts of highly trained multicultural and multilingual employees, who appear keen to take service experience to the next level (Kattara et al 2008). Application of Value Added Strategies in InterContinental Shenzhen E mergent perspectives in the marketing literature are of the opinion that the creation of added value, in either product or service settings, is one of the fundamental variables involved in not only determining customer satisfaction, loyalty and behavioural intentions (Hu et al 2009), but also organizational competitiveness and success (Donnelly et al n.d.). Indeed, Chan et al (2010) underscore the predominant need for organizations to learn from and collaborate with consumers if they are to develop value additions that meet and even surpass the customers’ individual and dynamic demands and expectations. Against this backdrop, this particular segment aims to critically discuss how InterContinental Shenzhen continues to employ its value addition strategies to achieve customer satisfaction and maintain competitiveness, as well as the theoretical underpinnings related to these concepts.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The Physical Evidence: The Interior Decor The impact on customers’ service experiences of the physical evidence, particularly the servicescape, has been well documented in the literature, with a strand of existing literature (e.g., Bitner 1992; Bruggen et al 2011) demonstrating that servicescapes have the capacity not only to differentiate an organization from its competitors but also to signal the market segment that is the organization’s target for a particular service offering. Indeed, Simpeh et al (2011) acknowledge that the physical environment â€Å"†¦plays a critical role in shaping expectations, differentiating service firms, facilitating customer and employee goals, and influencing the nature of customer experiences† (p. 119). The physical evidence has been defined in the literature as â€Å"†¦the environment in which the service is delivered and where the firm and the customer interact, and any tangible commodities that facilitate performanc e or communication of the service† (Ezeh Harris 2007, p. 60). The physical environment is important in the hotel and hospitality industry as customers attempt to seek evidence of the ultimate ‘quality’ of the intangible service (e.g., the dining experience, accommodation) from physically observing and relating to the tangible components that constitutes the servicescape (Lin 2004). Consequently, it is imperative for service organizations to manipulate/influence the servicescape as a value addition strategy aimed at not only enhancing customer satisfaction, productivity, and motivation, but also promoting organizational competitiveness through increased repeat business (Simpeh et al, 2011). A case study analysis of InterContinental Shenzhen Hotel’s interior decor reveals that the management has done well to utilize this attribute of the physical environment to add value to customers’ experiences and service quality. The hotel’s interior decor exemplifies an exquisite Spanish theme (InterContinental Hotels Resorts 2012a), but, more importantly, the management has greatly invested in the spatial aspects of the guestrooms, with the trend projecting towards the provision of larger and more comfortable rooms (Spencer 2010). Other decor aspects that have been used to conjure the impression of serene comfort and spaciousness include furniture, hanging art placement, mirrors, customized shades of colours and lighting. It is these physical aspects of the interior decor that influence the customers’ evaluations and responses toward the various product/service offerings provided at InterContinental Shenzhen. The Stimulus Response Model, which derives its basic theoretical underpinnings from the Mehrabian-Russell Theory, best captures how InterContinental Shenzhen uses the value addition strategy of interior decor to not only stimulate customer satisfaction and loyalty but also increase its competitive advantage. Graa Dani- elKebir (2012) note that the basic proposition of the model â€Å"†¦is that the impact of the situation on behaviour is mediated by emotional responses, so that any set of conditions initially generates an emotional (affective, connotative, feeling) reaction, which in turn leads to a behavioural response† (p. 56). In the case scenario, the environmental stimuli arises from the interior decor of the hotel, which then triggers various emotional states in customers, such as pleasure, arousal and dominance. Pleasure, according to the framers of the model, represents a composite of feelings (e.g., happiness, contentment and satisfaction) that are likely to be exhibited by the organism (customer), while arousal represents â€Å"†¦an activity orientation and is a measure of how wide awake the organism is, of how ready it is to act† (p. 56). Lastly, dominance implies a reflection to which the organism feels in control of or overwhelmed by the environmental stimuli, w ith available literature demonstrating that the higher the level of dominance professed in a particular situation, the more submissive is the state of the organism (Graa Dani-elKebir 2012). It therefore follows that the hotel’s interior decor bears the capacity to arouse customers with feelings of happiness, contentment and satisfaction, with the aim to reinforce approach behavioural and emotional responses, and, as such, not only influencing customer satisfaction but also increasing competitiveness by encouraging repeat purchases of product/service offerings. People/Employees Extant literature demonstrates that â€Å"†¦employees’ behaviours are important in a service company as they connect the organization with its customers and they represent a critical factor in developing effective working relationships with customers† (Kattara et al 2008, p. 310). These authors further posit that employees, particularly frontline employees, are an integral component in any service setting as they are vital for not only maintaining customer satisfaction through fulfilling the promises made to customers, but also for creating positive customer perceptions of service quality, primarily because they are the individuals ultimately tasked with the responsibility of providing a quality service that meets and even surpasses customer expectations. As acknowledged by Teng Barrows (2009), employee actions and behaviour in their interaction with customers in service settings influences the customer experience, customer perceptions of the organization, and are ultimately associated with the determination of customers’ satisfaction and organizational performance. These assertions demonstrate that organizations can indeed use the employee element as a strategy to create value aimed at achieving customer satisfaction and competitive advantage. The InterContinental Shenzhen hotel has done well in using the people element to create value. Apart from trai ning their frontline staff in the use of multiple languages to serve customers of diverse origins, employees are also adequately prepared in the virtues of demonstrating passionate empathy and commitment to serve customers and to demonstrate to them how value can be added to their service (Jones 2009). Indeed, this author further observe that in InterContinental Shenzhen, â€Å"†¦words such as ‘open’, ‘happy’, ‘genuine’, [and] ‘progressive’ appear to be accurate in terms of staff attitudes and have a corporate application regarding external positioning† (p. 273). The hotel is also known for employing tall, attractive female employees, who could also be considered a component of the servicescape as they directly influences customers’ perceptions about the services offered (Spencer 2010). The Resource-Based Approach (RBA) of the firm can be used to demonstrate how InterContinental Shenzhen has succeeded in applying the people element as a value addition strategy. The basic premise of the RBA is that the qualities and quantities of resources found within an organization are asymmetrically distributed among competitors (Moller et al 2008), and that competitive advantage arises â€Å"†¦from internally-developed resources with characteristics of value, rareness, inimitability and non-substitutability, because resources with such characteristics can be neither commonly traded nor easily acquired by their competitors† (Kim Oh 2004, p. 66). Consequently, it can be suggested that the InterContinental Shenzhen’s internal human resources (i.e., highly trained, multicultural and multilingual, highly attractive staff) acts as a value addition strategy, not only to achieve customer satisfaction and loyalty through providing memorable service experiences, but also to enhance firm’s competitiveness and performance. Benefits and Limitations There are many benefits that accrue to th e InterContinental Shenzhen from engaging in the discussed value addition strategies. Among the predominant benefits, it can be argued that the hotel has been able to differentiate its product/service offerings from its competitors, and has also succeeded in targeting the upper-end market segment by introducing less costly physical aspects in its interior decor (Chan et al 2010). This implies that the hotel continues to leap handsome profits and maintain competitive advantage in the highly competitive service industry. The highly trained and friendly members of staff have reinforced positive customer evaluations and repeat behaviour through the provision of memorable service experiences, leading to high customer satisfaction levels and retention. Additionally, the value addition strategies adopted by the hotel have been instrumental in ensuring that the establishment remains unique in the market, thereby contributing to the creation of a positive image and reputation (Spencer 2010). Still, another strand of literature (e.g., Bitner 1992; Bruggen et al 2011) demonstrate that customers are likely to stay longer in, and feel committed to, service organizations that provide memorable service experiences through servicescapes. Such predispositions, in my view, contribute to increased profits and competitiveness for the organization through positive word-of-mouth ratings and repeat behaviours. This position draws upon one of the strong premises of the Stimulus Response Model, which insinuates that customer repeat behaviour is reinforced by positive environmental stimuli, while avoidant behaviour is reinforced by negative environmental stimuli (Graa Dani-elKebir 2012). In limitations, extant literature demonstrates that â€Å"†¦the physical setting can influence employee satisfaction, productivity and motivation† (Bitner 1992, p. 57). Although the Stimulus Response Model is effective in demonstrating how customers respond to stimuli in the environmental settings, and how such stimuli can enhance customer satisfaction and organizational competitiveness (Graa Dani-elKebir 2012), it remains silent on how the same environmental stimuli either positively or negatively influence employee satisfaction, productivity and motivation. This gap in knowledge, in my view, is a weakness in theory as it is the employees who interact with the physical environment on a daily basis. Perhaps this shortcoming in knowledge could explain why the InterContinental Shenzhen registers high turnover among its employees (Spencer 2010). The RBA provides a reasonable and acceptable account of how organizations, particularly in the service settings, go about maintaining their existing competitive advantages by making use of their internal resources. From the discussion, it is clear how InterContinental Shenzhen continues to use its highly trained, friendly, attractive, and multilingual employees to lock onto the upscale market segment. However, several weaknesse s of the theory arise. First, although RBA suggests that a firm’s internal resources are inimitable and non-substitutable (Kattara et al 2008), we continue to witness situations whereby some service organizations poach key staff from their competitors with the promise of higher pay and other benefits. The RBV is not clear on how to deal with such a situation which, if not well managed, can eat into the profitability and competitiveness of InterContinental Shenzhen. More important, the theory is less convincing in how organizations create such competitive advantages in the first instance, or even surmount incumbent advantages of other competitors, when an organization start with minimal resources. Conclusion The germane issues discussed not only demonstrates that added value can be created using servicescape and the people element of the organization, but such value addition contributes positively to the achievement of customer satisfaction, differentiation of services, image and reputation creation, and firm competitiveness. The discussion has also demonstrated how the Stimulus Response Theory can be used to show the relationship between environmental stimuli and customers’ evaluations and repeat/avoidant behaviours of the service experience, and how the RBA can be used to show the value of having unique employees in the pursuit of customer satisfaction and competitive advantage. The implication for InterContinental Shenzhen, therefore, is to build upon the already existing value addition strategies to positively influence customer evaluations and behaviours toward the hotel’s product/service offerings and to create an image that will enhance its competitive advantage. Recommendations The hotel needs to critically evaluate if its physical settings have a direct and positive correlation with the considerably high employee turnover witnessed among frontline staff and management employees. Second, the hotel needs to evaluate if the Spanish-or iented theme offer any value, taking into consideration that it serves international customers of diverse backgrounds. Some customers may indeed project a negative evaluation of the service experience due to the hotel’s Spanish theme. Lastly, the hotel needs to develop benchmarks to measure its value addition strategies against the industry’s best practices. Reference List Bitner, M.J 1992, ‘Servicescapes: The impact of physical surroundings on customers and employees’, Journal of Marketing, vol. 56 no. 2, pp. 57-71. Bruggen, E.C, Foubert, B Glemler, D.D 2011, ‘Extreme makeover: Short- and long- term effects of a remodelled servicescape’, Journal of Marketing, vol. 75 no. 5, pp. 71-87. Chan, K.W, Yim, C.K Lam, S.S.K 2010, ‘Is customer participation in value creation a double-edged sword? Evidence from professional financial services across cultures’, Journal of Marketing, vol. 74 no. 3, pp. 48-64. Donnelly, M, Lynch, P Holden, M.T n.d., Building loyalty: Creating value through customer experiences, https://repository.wit.ie/1202/1/THRIC_BUILDING_LOYALTY_CREATING_VALUE_THROUGH_CUSTOMER_EXPERIENCES_-_RIKON_Group.pdf Ezeh, C Harris, L.C 2007, ‘Servicescape research: A review and a research agenda’, The Marketing Review, vol. 7 no. 1, pp. 59-78. Graa, A Dani-elKebir, M 2012, ‘Application of stimulus response model to impulse buying behaviour of Algerian Consumers’, Serbian Journal of Management, vol. 7 no. 1, pp. 53-64. Hu, H.H, Kandampully, J Juwaheer, T.D 2009, ‘Relationships and impacts of service quality, perceived value, customer satisfaction, and image: an empirical study’, The Service Industries Journal, vol. 29 no. 2, pp. 111-125. InterContinental Hotels Resorts 2012a, Shenzhen, https://www.ihg.com/intercontinental/hotels/gb/en/shenzhen/szxha/hoteldetail InterContinental Hotels Resorts 2012b, Our history, https://www.ihg.com/intercontinental/hotels/gb/en/gl obal/support/about-intercontinental Jones, P 2009, ‘A sound strategy for InterContinental Hotels’, Tourism and Hospitality Research, vol. 9 no. 3, pp. 271-276. Kattara, H.S, Waheba, D El-Said, O.A 2008, ‘The impact of employee behaviour on customers’ service quality perceptions and overall satisfaction’, Tourism Hospitality Research, vol. 8 no. 4, pp. 309-323. Kim, B.Y Oh, H 2004, ‘How do firms obtain a competitive advantage? International Journal of Contemporary Hospitality Management’, vol. 16 no. 1, pp. 65-71. Lin, I.Y 2004, ‘Evaluating a servicescape: The effects of cognition and emotion, Hospitality Management, vol. 23 no. 2, pp. 163-178. Minghetti, V 2003, ‘Building customer value in the hospitality industry: Towards the definition of a customer-centric information system’, Information Technology Tourism, vol. 6 no. 2, pp. 141-152. Moller, K, Rajala, R Westerlund, M 2008, ‘Service innovation myopia? A new recipe for client-provider value creation’, California Management Review, vol. 50 no. 3, pp. 31-48. Simpeh, K.N, Simpeh, M, Abdul-Nasiru, I Amponsah-Tawiah, K 2011, ‘Servicescape and customer patronage of three star hotels in Ghana’s metropolitan city of Accra’, European Journal of Business Management, vol. 3 no. 4, pp. 119-131. Spencer, M 2010, ‘If InterContinental were a sound†¦what would it be’, Journal of Business Strategy, vol. 31 no. 4, pp. 39-46. Teng, C.C Barrows, C.W 2009, ‘Service orientation: Antecedents, outcomes, and implications for hospitality research and practice’, The Service Industries Journal, vol. 29 no. 10, pp. 1413-1435. Walter, U, Eduardsson, B Ostrom, A 2010, ‘Drivers of customers’ service experiences: A study in the restaurant industry’, Managing Service Quality, vol. 20 no. 3, pp. 236-258. This essay on Delivering Added Value through Servicescapes People Elements: A Case Study on InterContinental Shenzhen Hotel, China was written and submitted by user Alessandra O. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

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Uncle Toms Cabin And The Imagery English Literature Essay In many ways the north may have been the starting point for many of the hard working religious, patient Individuals. Some might say that they may have bees somewhat like Harriet Beecher Stowe themselves however, this was a potential threat. The north and the south shared many economic and legal issues at that time because even though the north did not have slavery they still felt the issues that came with slavery. Stow made it very clear in her writing just how horrible slavery was. She shows us the legal consequences that slavery had on the north, and how many individuals lend a helping hand to help free slaves with the risk of being jailed. Stow tries to give the readers an accurate picture of the slavery in the south. Many of Stowes readers were mainly white women, so she used the opportunity to play on their feelings on the poor treatment of the slaves. Her main focus was to get the white women of the north to read it, because she hoped that they might be able to help her with the abolishment of slavery. She painted a very strong and real picture of the individuals that were suffering from the prejudice of slavery. The writing in Uncle Toms Cabin is so vivid that it feels like the reader is experiencing the same hardship as the slaves did in the south. The sentimental writing drew women of its time to read Stowes novels. Her main focus was to give the reader an unsettled emotion of guilt, to make individuals see how many lives and families were destroyed through slavery. In the early nineteenth-century human cruelty was a constant issue for the slaves, which makes this a vital part of American history. Harriet Beecher Stowe uses two but distinct ethical systems in Uncle Toms Cabin: One is the value of Christianity and two she uses parental values. When one reads the the beginning of the book, how Uncle Tom and Eliza find out they are getting sold. Both of these characters have different points of views. Uncle Tom puts all of his faith in God and says whatever happens will happen , were as Eliza who will face similar heart ship decides to get away. Both of these decisions are portrayed to fit each character in the book. Uncle Toms describes his sufferings in plain words though the bible. However, some models are not as clear because it over lapses the Christian fews. However, in Eliza case she decides to run away to save her children. However, the book describes how horrific the circumstances were and Uncle Tom was sold many times over. He said: If I must be sold, or all the people on the place, and everything go to rack, why, let me be sold. I spose I can bar it as well as any on em (Stowe, 1852). Looking at all the slave masters in the novel one can clearly see, that Uncle Toms master differed from all the other masters and his outlook on how slaves should be treated. It not only teaches Christian values but also family values. Stowe is mainly focusing her writing on the facts that slavery is wrong, cruel and evil. She not only writes an outstanding book but she also makes some excellent points at the same time. She quoted: I did not write it. God wrote it. I merely did his dictation (Stowe, Uncle Tom`s Cabin, 1879). In Stowes mind all of her writing came from God and not her, she cared deeply about God and his will. In her writing she is consistently telling the readers that slavery is wrong and cruel. Individuals are being beaten, starved to death and ripped away from their familys. Many individuals like Uncle Tome are being sold over and over again, and with each selling a new owner comes along. Slaves never knew what fate had in store for them, because every slave owner had their own way of controlling the slaves. However, Stowes novel shows that there were also good slave owners such as St. Clare. Uncle Tom was sold to a couple named St Clare and from reading Stowes novel they treated Uncle Tom very ki ndly. In conclusion Stowes writing is very effective, she points out that slavery is very wrong, in order to help the abolitionist cause. At the same time her novel has an enormous impact not only on the readers back then but also today.

Chartists and Chartism Essay -- European Europe History

Chartists and Chartism   Chartism was the name of a variety of protest movements in England during the 1830s and 40s, which aimed to bring about change   in social and economic conditions through political reform. Its name comes from the People’s Charter, a six-point petition presented to the House of Commons with the hope of having it made law. The six point included annual parliaments, universal manhood suffrage, abolition of the property qualification for members of the House of Commons, the secret ballot, equal electoral districts, and salaries for members of Parliament.   This was the first independent working-class movement in the world, that is, not simply sporadic uprisings or agitation, and arose after the Reform Bill of 1832 had failed. Working men had agitated for this bill and its failure left them still without the sought-for right to manhood suffrage. The Factory Act of 1832 had reduced working hours for children, but not for adults. The New Poor Law of 1834 caused resentment among workers by building workers’ housing in factory districts, where living conditions were bad.   By 1837 50,000 were out of work in Manchester alone, owing to overproduction, loss of trade, and the shutting-down of many mills.   Throughout the country, from 1839-1851 widespread depression was due to a combination of jobs lost, bad harvests, and high food prices. There were organized groups in London and Birmingham, but a national organization was inspired by Feargus O’Connor, who edited a Chartist paper, The Northern Star, and was   a rabble-rousing speaker.   The Chartists’ method was to circulate their petition throughout the country and gather signatures which were to be presented to the House of Commons at a giant convention in... ...nating the worst working conditions were gradually enacted into law.   Victorian England was to struggle with labor-management problems throughout the century. Gradually the working class would come to recognize its need for centralized organization and would gain support from radical middle-class intellectuals and writers, notably Henry Mayhew, who during the years 1849-51 investigated living and working conditions in London and published a series of violently-debated letters in the Morning Chronicle. It would appear that the efforts of the Chartists, while not immediately successful, served as valuable experience for a future labor   movement, as well as awakening the consciences of individuals and groups outside the working class. Sources: Sally Mitchell, ed.   Victorian Britain â€Å"Chartism,†Ã‚   â€Å"Riots and Demonstrations,† â€Å"Strikes.† New York, Garland, 1988.