Analysis of Service Marketing Failure and Recovery Strategies: MKT203

This report analyzes a service failure case at the Central Park Hotel in London, focusing on customer dissatisfaction and service gaps. The analysis identifies issues related to employee performance, service delivery, and customer complaints. The report explores service quality information systems, including customer feedback and employee surveys, to understand the root causes of the failure. It then proposes a service recovery strategy, including a restoration strategy and hotel branding strategy, to address customer needs and improve customer loyalty and retention. The report emphasizes the importance of addressing service failures effectively to maintain customer satisfaction and foster long-term relationships. The report uses relevant theories and concepts from service management to support its analysis and recommendations, providing practical insights for service organizations.

Running head: SERVICE MARKETING 1
STUDENT NAME:
STUDENT ID:
TOPIC: SERVICE MARKETING FAILURE AND SERVICE RECOVERY STRATEGY
DATE: 11-06-2019

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Contents
Introduction.................................................................................................................................................3
Analysis........................................................................................................................................................3
Service failure..........................................................................................................................................3
Service quality information system.........................................................................................................4
Recommendation and service recovery strategy........................................................................................5
Restoration strategy................................................................................................................................5
Hotel branding strategy...........................................................................................................................5
Conclusion...................................................................................................................................................6
Reference....................................................................................................................................................7

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Introduction
In the competitive environment, the major focus that the service industry maintains is the
customer satisfaction rate which related highly to the growth and development of an
organization. The customer demands to need to be understood which is the critical nature of an
organization to fulfill the customer expectation. Enhancing customer satisfaction rate and
providing first class service is the objective of every organization in the service industry. In the
hotel industry, the service facilities and customer values are the major and unique characteristics
that outcomes the service delivery process. There are several hotels who have issues in service
delivery and have failed to gain a position in the market. All the components cannot be
controlled by the service organization while the importance of customer satisfaction is the
common component to be understood (Taleb & Kamar, 2013). A service delivery failure is
observed in the organization and critical data is revealed with service failure and service
recovery strategies. the study of Central Park Hotel which is a three-star hotel in London is
provided in detail while determining the service failure components and ensuring service
recovery strategy.
Analysis
Service failure
The Service failure in Central Park hotel includes customer complaints about employees, service
delivery and other issues. Customers are not satisfied with the service delivery by the hotel.
Thereby it is important to ensure that the organization should have the coping strategy to focus
on implications for customers. Employees in the organization are seen to adopt several responses
such as people processing mode, avoiding customers and overacting in the given role. It is
observed that in many cases, this can be the extreme condition that the service organization may
face which leads to service sabotage (Hoffman & Bateson, 1969). For climate services, there are
three core drivers such as work facilitation, human resource practices, and interdepartmental
support. These are addressed efficiently in order to gain a higher position for growth and
development. There are several layers of services in the HR wheel which include recruitment of
right people, work towards competent employees, control and reward employees and retain
service employees. At the same time, there are several rewards for the service excellence
provided to the employees that include seven tests to pass through effective reward systems. At

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the time of service failure, the senior level management should focus and ensure that the
department and functions are majorly aligned with the service benefit to be received and the
customer does not lose interest in the service provided by the organization.
Service quality should be maintained by the service organization in which the formal attitude of
the firm needs to be maintained with the firm’s performance. Customer satisfaction rate should
be higher and the organization focuses on the transaction specific measure (Hoffman & Bateson,
1969). The conceptual knowledge of service quality is maintained while fulfilling the service
gaps. The first gap is the knowledge gap in which there is a difference of perception between the
customers and the service provided by the organization. The second gap is the standard gap that
is the difference between management perception and the quality specifications for service
delivery. The third gap is the delivery gap that is the difference between the actual quality and
the standard set of service delivery. The communication gap is the difference between the quality
of service and the actual quality of service. The service quality gap of service delivery is
observed by guests in the UK hotel which is relative component to be highlighted with the
service gap that needs a major focus on reliable dimension and expectations of customers. The
customer expectations are thereby not given importance and the need of the customer is not
focused by the service organization in the UK hotel.
Service quality information system
The primary objective of the service organization is to consider customer complaints and
feedbacks as related to solicitation of customer service. The customer complaints solicit ensure
that there are unhappy customers in the organization and have identified weakness in the service
firm. It is important for an organization to take corrective steps in terms of minimizing the future
service gap and provide an effective service recovery strategy (Akbar, Som, Wadood &
Alzaidiyeen, 2010). The after sales surveys include that there is a lack of customer service
provided after sales. This is the major reason that the hotel has suffered service delivery
problems. The proactive approach needs to be ensured that satisfies solicitation of complaints.
Every customer needs to contact after the sales approach which is the corrective action to be
taken by the organization and thereby there would be fewer customers who have complaints.
From the customer focus group interviews, the guests at the hotel are unsatisfied with the
customer service and express a negative view regarding customer suggestions. There are other

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forms of research that are necessary for terms of group ideas and need to be considered to
broaden the segment efficiently (Ogechi & Polycarp, 2015). There were even employee surveys
that were taken in which the survey responded that even employees were not satisfied with the
job thereby the issues of customer satisfaction has raised to a higher level. Employee satisfaction
relates to customer satisfaction directly and this is examined in terms of morale, perceived
obstacles, and attitudes. It is important to listen, form a basic service and plan a service recovery
strategy for the UK hotel.
Recommendation and service recovery strategy
The primary service failure type that the organization responds is towards customer needs and
requests. In this type, the failure subgroups are ensured in which special needs customers,
customer error and customer preferences are ignored by the organization. It is important that
Central Park Hotel works towards service recovery strategy in which a feedback Loop is ensured
in the plan.
Restoration strategy
To offset the failure there are several strategies that the organization should consider and these
are on the basis of compensatory strategies, apologetic strategies, restoration strategies,
unresponsive strategies and reimbursement strategies (Hoffman & Bateson, 1969). The best
strategy that can be used is a restoration strategy in which the customers would gain information
and would satisfy. This is possible when the organization considers the change in customer
loyalty and customer satisfaction strategies such as room cleaning, welcoming guests and
providing them the best service.
Hotel branding strategy
A hotel branding strategy is simply the best strategy in which the brand largely focuses on
customer needs and considers hotel branding promise in an efficient manner (Hoffman &
Bateson, 1969). Guests desire several facilities in the hotel such as a theatre in the hotel, hot
shower, and a comfortable bed. Customers nowadays have several options to select the hotels,
thereby the hotels need to have the perfect brand strategy in order to shine in the industry and
highlight its aspects with a different marketing approach. Hotel branding strategy includes the
competitive approach to focus on appealing brand and productive price of the hotel that best suits

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the customers (Suprapto & Hashym, 2010). Price of the hotel depends on the facilities and
services that the hotel provides to the guests. Hotel branding strategy is in the first place to
consider the major element of customer needs and demand while understanding customer
perspective. There are always competitors who drive the branding strategy to failure, yet the
steps that are taken by the hotel is to focus on hotel branding, pricing, and restoration strategies
that are effective in terms of making sure that the travel experience of guests increases customer
satisfaction.
Customer loyalty can be achieved with the service recovery strategy that is adopted by the
organization. The incident of customer dissatisfaction will be resolved with these strategies
(Hoffman & Bateson, 1969).
Conclusion
The report includes the major importance of service recovery strategy implemented by Central
Park Hotel in London. A service failure case report is prepared while considering important
concepts of service management and service strategies. The reason for service failure is customer
dissatisfaction rate and the increase in the service gap that is for the service delivery gap. The
different kinds of service gaps are introduced while explaining the major incident that occurred
due to the service delivery gap. The customer's needs and demands are focused on the service
recovery strategy. With the help of service recovery strategy of restoration strategy, branding and
pricing strategy adopted by the service organization, the customer loyalty and customer retention
is maintained effectively in context with the scenario.

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Reference
Akbar, S., Som, A., Wadood, F., & Alzaidiyeen, N., (2010). Revitalization of service quality to
gain customer satisfaction and loyalty. International journal of business and
management, 5(6), 113-121.
Hoffman, K.D., Bateson, J.E., (1969). People as strategy: Managing service employees, fifth
edition, chapter 9, Kaplan business school: Australia.
Hoffman, K.D., Bateson, J.E., (1969). Defining and measuring service quality, fifth edition,
chapter 12, Kaplan business school: Australia.
Hoffman, K.D., Bateson, J.E., (1969). Complaints and service recovery management, fifth
edition, chapter 13, Kaplan business school: Australia.
Hoffman, K.D., Bateson, J.E., (1969). Customer loyalty and retention, fifth edition, chapter 14,
Kaplan business school: Australia.
Hoffman, K.D., Bateson, J.E., (1969). Pulling the pieces together: Creating a world class service
culture, fifth edition, chapter 15, Kaplan business school: Australia.
Ogechi, O., Polycarp, I., (2015). Evaluation of service recovery strategies in some hotels in lagos
metropolis, lagos, Nigeria. Indian Journal of commerce and management studies, 6(2),
57-63.
Suprapto, B., & Hashym, G., (2010). Service Recovery Strategy and Customer Satisfaction:
Evidence from Hotel Industry in Yogyakarta-Indonesia. Kinerja, 14(2), 118-130.
Taleb, A., & Kamar, A., (2013). The influence of perceived service failure recovery strategies on
customer satisfaction and loyalty in hotel. Research Journal of Management Sciences,
2(11), 16-22.