Psychology of Service

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Psychology of Service Sales-Building

• HRT 382

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Thanks to

• E. Jerome McCarthy, author of Basic Marketing A
  Managerial Approach
• William B. Martin, author of Quality Service
  The Restaurant Managers Bible
• Raymond J. Goodman, Jr., author of The
  Management of Service for the Restaurant Manager

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The Marketing of Service

• Marketing Basics
• Needs
• Wants
• Demands (a want backed-up with )
• Ability Willingness
• Product vs. Service

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Satisfaction

• What is perceived value?????
• Utility
• The buyers estimate of the products capacity to
  satisfy their particular need
• Value
• What the product offers for the price
• Satisfaction
• The balance between utility and value
• The most utility per dollar

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Meeting Exceeding Expectations

• Where do they come from?
• E. Jerome McCarthy, in Basic Marketing A
  Managerial Approach , popularized The 4 Ps
• Product
• Price
• Place
• Promotion

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Maslows Hierarchy of Needs(In reverse order
in FB terms!)

• Physiological Needs
• Food, warmth, health, cleanliness
• Safety Needs
• Job security, safe working conditions, benefits
• Social Needs
• Belonging, acceptance, friendship
• Psychological Needs
• Self-esteem, responsibility, status, influence
• Self-Actualization
• Interesting work, involvement, achievement

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Service Quality - Two Dimensions

• Procedural
• The mechanical or systems stuff
• Convivial
• Warm caring service emotional stuff

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Procedural Dimension

• Accommodation
• Anticipation
• Timeliness
• Organized Flow
• Communication
• Customer Feedback
• Supervision

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Convivial Dimension

• Attitude
• Attentiveness
• Tone of Voice
• Body Language
• Tact
• Naming Names
• Guidance
• Suggestive Selling
• Problem Solving

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Hospitality Mentality

• It is easy enough to be pleasant
• When life flows along like a song,
• But the person worthwhile
• Is the person who can smile
• When everything goes dead wrong.
• Anonymous

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Sales-Building

• A focus on the top line of the financial
  statement
• The ultimate goal, of course, is to drop profit
  dollars to the bottom line, but the initial
  focus is to increase revenue.
• Building sales can happen in two BASIC ways -

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Sales-Building

• More Guests
• or
• More per Guest

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More Guests

• To Increase the number of guests
• Community Marketing (marketing outside the
  restaurant)
• In-House Marketing (marketing inside the
  restaurant get guests back another time)
• Increase Hours of Operation (open earlier and/or
  close later)
• Add Day Parts (a day part is a meal period)
• Increase the Average Table Turn Time (more
  guests per hour)
• Other

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More per Guest

• Increase the amount each guest spends
• In-House Merchandising
• Suggestive Selling
• Up-selling (a style of suggestive selling)
• Raise Prices
• Menu Engineering
• Other

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In-House Marketing Possibilities

• Promotions
• Mailing or Email Lists
• Bounce Backs
• Table Tents
• Banners
• Check Presenter (message or inserts)
• Flyers
• Posters
• Special Menus
• Other

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Suggestive Selling

• Making a guest aware of an item they might be
  unaware of
• Use specifics as you take orders
• Would anyone care for a glass of Beringer
  Chardonnay or, perhaps, a bottle of Sierra Nevada
  Pale Ale?
• Remember to save room for our homemade Fresh
  Apple Crisp!

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Up-Selling

• Upgrading a guests order to a higher quality
  (and, yes, priced) item
• For example
• If a guest orders a glass of white wine, the
  server mentions the Chardonnay selection
• If a guest orders a burger, the server asks,
  Would you like to top your burger with apple
  wood smoked bacon or a thick slice of sharp
  cheddar cheese?

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Suggestive/Up-Selling

• The Power of the
• Personal Recommendation
• Presenting your favorite
• Doing so in a sincere, heart-felt manner
• When you true personal favorite is also the most
  expensive, back your opinion up and/or offer
  other alternatives

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Raising Prices

• This strategy has its challenges
• Positive it is quick
• Negative guests, especially frequent diners,
  notice
• If you work for a large organization, you may not
  be able implement this strategy

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Menu Engineering

• The layout and design of the menu
• The use of bullets, flags, and boxes to draw
  attention to certain items.
• The the location and placement of items or item
  categories
• Branding