Question

Product quality, service, and price were the three factors identified as being major determinants of a customer’s perception of value. Contrast the value formula you would use if

A: You were interested in purchasing a lunch that you needed to consume in ten minutes and

B: You wanted to enjoy a leisurely dinner with someone with whom you are romantically involved.

Would the manner in which you evaluate value remain constant? What are the implications of your answer to RMs in the hospitality industry?

Answer 1

 

*(A)

The value formula I will use will be majorly based on product quality and price. I will look for a product which is of high quality and low price. As I will consume the product in just 10 minutes hence the service quality will not play a major role in my perception of value.

*(B)

In this case I will look for high product quality and high service standards but price will play a moderate role in value perception. As I will like to impress the person to whom I am romantically involved hence paying a higher price for good quality and service will not matter much.

No these two examples explains that the way in which I evaluate the value does not remains the same always and in different situations evaluation of value is different. This is important for the RM’s in the hospitality industry as it explains that how in different situations customers evaluates services in a different manner. This knowledge is essential for the RM’s to offer good services in different situations.