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Characteristics of Services
The defining characteristics of a service are:
Intangibility: Services are intangible and do not have a physical existence. Hence services
cannot be touched, held, tasted or smelt. This is most defining feature of a service and that
which primarily differentiates it from a product. Also, it poses a unique challenge to those
engaged in marketing a service as they need to attach tangible attributes to an otherwise
intangible offering.
Heterogeneity/Variability: Given the very nature of services, each service offering is unique
and cannot be exactly repeated even by the same service provider. While products can be
mass produced and be homogenous the same is not true of services. e.g.: All burgers of a
particular flavour at McDonalds are almost identical. However, the same is not true of the
service rendered by the same counter staff consecutively to two customers.
Perishability: Services cannot be stored, saved, returned or resold once they have been used.
Once rendered to a customer the service is completely consumed and cannot be delivered to
another customer. e.g.: A customer dissatisfied with the services of a barber cannot return the
service of the haircut that was rendered to him. At the most he may decide not to visit that
particular barber in the future.
Services
A physical commodity
A process or activity
Tangible
Intangible
Homogenous
Heterogeneous
Production and distribution are separation Production, distribution and consumption are
from their consumption
simultaneous processes
Can be stored
Cannot be stored
a. Product
Service is an intangible product. It consists of a bundle of features and benefits that have
relevance to a specific target market. There is high level of flexibility and opportunity to be
innovative in designing product offer.
b. Place
Service is intangible as well as inseparable. So it cannot follow the same channel as goods
marketing.
Production, distribution and consumption takes place simultaneously in the services industry.
However services have an advantage of used direct selling approach at a low cost.
There are other channels of distribution like agents, brokers, franchisers and electronic channels
that are used for distribution of services.
c. Price
The pricing decision is critical in services too, as this component alone determines the revenue of
the firm. Consumer sensitivity will be higher in services than in goods. The pricing strategies for
services depend upon value perceptions of various groups of people that are targeted by the
service firms.
d. Promotion
Consumers are co-producers in the service business. The quality of service will not only depend
upon the performance of the service provider but also on the performance of the service
consumer.
It is the responsibility of the service organizations to educate and if necessary, train customers so
as to make them use the services efficiently.
A well designed service promotion programmes is of immense
organization to inform, persuade and train customers to better their experiences.
help
to
the
All of the human actors participating in the delivery of a service provide cues to the customer
regarding the nature of the service itself. How these people are dressed, their personal
appearance, and their attitudes & behaviors all influence the customers perception of the service.
CHAPTER-2
Personal need
It refers to the physical, social, psychological needs. e.g. .customer with limited time for lunch
desire quick service.
Some customers are more demanding; having a higher expectation of service-enduring service
intensifier is individual, which lead to the customer to a heightened sensitivity to the service.
This can based on the desired expectation appropriated from and based on expectation of others.
For e.g. in a factory canteen, if worker state a spicy and rich food to be good, then desired level
may be influenced by it. The HR manager may want a service provider to provide this kind of
food.
Service Quality
It is perception/attitude formed by customer to the overall firm service/product. Its related to
customer satisfaction. The word quality is major important for marketer because quality derives
the development of all marketing strategies. It means that before making marketing strategy,
marketers should focus on quality. So, quality and service marketing are interrelated and has a
relationship.
Service Quality is a predictable degree of uniformity and dependability at low cost with a
quality suited to the market.
Service Quality is consistent conformance to customers expectation.
Higher Service quality has a beneficial effect on both revenues & costs.
Service quality then refers to the extent to which service is what it claims to be and does what it
claim to do. High quality satisfying service requires that the firm understand consumer needs in
detail and also the operational constraints. It remained the service provider to focus on quality,
and the process should be designed to support this system by proper control and delivery.
Service quality= (perceived performance/ desired expectation) *100
Dimension of service quality
Credibility
Trustworthiness, believability, honesty of the service provider appears. E.g. does the school have
good education or only reputation, does the financial advisor present all the options or only those
which earns her/his most commission/profit.
Security
Service to customer is free from danger, risk or doubt. E.g. does the repair firm guarantee its
work? Are the medical reports of patients kept confidential? Is it safe for me to use the banks
ATMs at night?
Accessibility
Service is accessible and delivered with little waiting. It is approachability and ease of contract.
e.g. do the hair dresser clients have to wait a months before getting an appointment to have their
hair cut.
Communication
It refers to the clarity and understandability of information given to the client. E.g. how good is
organization at communicating effectively? Does the teacher take a time to explain in the terms
the student can understand?
Understanding
Effort made by the organization to get to know its customers and understand their needs. E.g. Is
the moving company willing to accommodate my schedule, does someone in the hotel recognize
me as a regular customer.
Tangible
lightening, carpet, wall colors, appearance of firm personnel etc. E.g. Does the staff in an office
are good dress and loyal to customer.
Responsiveness
Willing and readiness of employee to help customers and to deal with their specific problem. For
e.g. is the accountant available to talk over a specific problem whenever client rings up?
Competence
Possession of skills and knowledge required to perform the service. E.g. when I call my travel
agent is she able to obtain the information I needs.
Couresy
The firms personnel should interact with the customer in the polite and the friendly manner and
with consideration. E.g. is the receptionist friendly, helpful and polite?
Service encounters
Services are often about the process rather then the tangible outcomes, and for many services,
customers are closely involved in production process. The point or duration of interaction is
often called service encounter. It is also the interaction between service provider and customer.
Service encounter is an opportunity to build satisfaction and quality of services.
Factor influencing encounters
Atmosphere
It represent the physical setting related to service i.e temperature, space available, color and
paintaining of wall, dress or uniform etc. E.g. hotel premises have to look and serve healthy
food.
Training
Employee of organization have to be well trained to their job must needed. E.g receptionist has
to know all about room charges, reservations, discount, mode of payment etc. to manage the
encounter. If employees are trained then customer feels confidence to rely on the service.
Expectation management
Customer expectation are drives by explicit (clear) and implicit (not plainly expressed) promises
and previous the experience with a similar service. Management of expectation would play a
large role in the service satisfaction. Customer expectations have to be raised to meet with the
level of services delivery. Thus, dating service agency has to raise the customer enthusiasm, as
he first date may not produce the perfect match sought by the customer.
Personality and attitude of front end employee also affect the expectation of customer. Soft and
tolerant attitude towards the customer may also become counter productive. Polite voice, tolerant
attitude, good dress up, loyalty. Employee should recruit for the front end responsibilities.
Time limit provided for the each customer is fixed. So, the employee should not cross the limit.
Management have fixed in advance the time he or she would spent with the client during the
interaction. The time, effort and materials that can be spent on one customer may be limited. If
the distance between two is not kept, it may bring up excess familiarity.
Types of encounters
Remote encounter
In this encounter there is no human interaction. customer interact remotely. E.g ATM, face book,
mail etc.
Customers interact to bank through ATM.
Customer use face book, internet for communication.
Telecommunication encounter
Interaction to customer with phone. Its different and affective then remote. Tone of voice,
employee knowledge and effienciency in handling the customer in handling the customer issue
become important criteria for judging the quality in the encounters.
In this there is direct contract with employee and customer. its more complex than other .e.g.
education services, hospital services, hotel services and other direct contact services are face to
face encounter. in face to face encounter the customer also play a role creating quality service for
himself through his own behavior during interaction.
Service satisfaction verse service quality
Chapter-4
Service recovery
concept
It is an effort made by firm to correct the problem related to its service. It can turn the customer
dissatisfaction to the satisfaction. Service recovery refers to the actions a service provider takes
in response to service failure. By including also customer satisfaction into the definition, service
recovery is a thought-out, planned, process of returning aggrieved/dissatisfied customers to a
state of satisfaction with a company/service. Service recovery differs from complaint
management in its focus on service failures and the companys immediate reaction to it.
Complaint management is based on customer complaints, which, in turn, may be triggered by
service failures. However, since most dissatisfied customers are reluctant to complain, service
recovery attempts to solve problems at the service encounter before customers complain or
before they leave the service encounter dissatisfied. Both complaint management and service
recovery are considered as customer retention strategies
Customer expectations about their complains
When a service failure occurs, people expect to be adequately compensated in the fair manner.
Customers usually feel that they were not treated fairy and didnt receive adequate justice. When
this happen, customer reaction tends to be immediate, emotional, and enduring. Stephen tax and
Stephen brown found that as much as 85 percent of the variation in the satisfaction with a service
recovery was determined by the three dimensions of fairness
Procedural justice has to do with the policies and rules that any customer will have to go through
in order to seek fairness. Here, customers expect the firm to assume responsibility, which is the
key to the start of a fair procedure, followed by a convenient and responsive recovery process.
That includes flexibility of the system and consideration of customer inputs into the recovery
process.
Interactive justice involves the firms employees who provide the service recovery and their
behavior toward the customer. Giving an explanation for the failure and making an effect to
resolve the problem are very important. However, the recovery effort must be perceived as
genuine, honest and polite.
Outcome justyice pertains to be compensation that a customer receives as a result of the losses
and inconveniences incurred because of the service failure. This includes compensation for not
only the failure but also the time, effort, and energy spent during the process of service recovery.
Both managers and frontline employees must be prepared to deal with angry customers who are
confrontational and sometimes behave in insulting ways towards service personnel who arent
fault in any manner; management memo provides specific guidelines for effective problem
resolution, designed to help calm upset customers and to deliver a resolution they will see as fair
and satisfying
CHAPTER-.5
Idea generation
The new service must satisfy all relevant criteria absolutely before it should be allowed to
progress to next steps. The next step in the process is the formal solicitations of new ideas. The
ideas generated at this stage can be passed through the new service strategy screen described in
the preceding step.
The idea formulated for service offering which might suit a market segments. The concept will
be tested by the way of qualitative research, possibly in group discussion or following in- depth
interviews to ascertain whether potential customers think about benefits of the new offerings.
Based on the insight gained through the qualitative research it is possible to design a meaningful
questionnaire for quantitative research to generate data that are scientifically sound with respect
to probable market response to service offerings. This type of research enables identification of
particular market segment to which the service offering is most attractive.
Business analysis
Assuming the service concept is favorably evaluated by customers and employees at the concept
development stage, the next step is to determine its feasibility and potential profit implications.
Demand analysis, revenue projections, cost analysis and operational feasibility are assessed at
this stage. Because of development of the service concepts is so clearly tied to the operational
system of organization, this stage will involve preliminary assumptions about the costs of hiring
and training personnel, delivery system enhancement, faculty changes, and any other projected
operation costs.
The organization will pass the results of the business analysis through its profitability and
feasibility screen to determine whether the new service idea meets the minimum requirements.
b. Implementation
After the new service concept has passed all of the front-end planning process, it is ready for the
implementation stages. During this phase, the concept is refined to the point where detail service
processes are shown for the implementation of service production. Before launching any new
service or redesigning the service, meeting or experiments are conduced to fulfill the consumer
requirement.
Once the new service concept has passed all of the front-end planning process it will be ready for
the implementation stages of the process. Service development and testing activities are carried
on.
Market testing
In this stage, usually the organization tries out the new product in the market. The consumer
response can be accessed through test marketing. The test marketing is time consuming and
expensive. As there is danger of quick imitation by the competitor, the test marketing should be
kept for minimum and move from test marketing to commercialization should be too quick.
Commercialization
At this stage, an organization undertakes full scale introduction of service offering to the market.
Huge money is invested in advertising and sales promotion. The training department undertakes
the training of customer contact employees to ensure that one thoroughly understands the service
and how to sell the service. Employees incentives and customer premiums must be planned and
offered for making the service offering launch a success.
At this point, the information gathered during commercialization of service can be reviewed and
changes made to the delivery process, staffing, or marketing-mix variables on the basis of actual
market response to the offering. No service will ever stay the same. Whether deliberate or
unplanned, changes will always occurs. Therefore, formalizing the review process to make those
changes that enhance service quality from the customers point of view is critical. The service
blueprint serves a valuable purpose in providing a focal point for discussing and planning
changes in the offerings
Branding of service
Brands are meant to influence the purchase behavior, in the case of goods. It reduces the risk of
purchase for customers. The transplantations of exciting, localized service experience to other
locations and sites have always been difficult. It has been difficult to establish national service
brand that cross across states and cities. Part of reason is brand quality. This was not a case in
government and non government Owner Corporation, whose brands enjoys the brand qualities
and represents risk reduction for the customer. For example Unit trust of India and Life Insurance
Corporation were recognized as risk free investments, and nationalized banks as risk free
banking channels.
Chapter-6
Pricing of services
Concept
Pricing is one of the most important elements in marketing mix. Pricing decision for service
offer is of a major importance and should ideally be related to achievement of marketing and
organizational goal. Pricing of any product or service to be acceptable to the customer has to b
competitive. Many a time the customer links the price of the product or service with the quality.
In other words, it is the perceived quality of the service by the customers that influences pricing
to a large extent.
The amount paid for good or service or an idea is price. The meaning of price is quite
complicated. It can be said that price is the amount one pay for getting satisfaction of purchase.
The price of the service is the value attached to it by the service provider and it must correspond
with the customer perception of value.
It is the objective of every business organization to maximize long term revenue, contribution,
and profits. Top management of an organization is eager to reach a particular financial target or
seeks a specific percentage return on investment. This requires pricing to be set based on a good
knowledge of costing, competition and price elasticity of the market and value percentage.
Building demand
Sometimes instead of maximizing profit, achieving a certain minimum level of profits may be
more important. This may be the one of the objectives in some organization like getting full
house in a theatre, sports stadium, or rack track usually creates excitement that enhances
customer experiences. It also helps to create image of success that attracts new customers.
It will be very difficult to attract customers for newly established organization. However, in order
to create the impression of a successful launch and to enhance the image of the firm, it is
important that the firm is seen to be attracting a good volume of business from the right types of
customers. Introductory price discounts are often used to stimulate trial and sign up customers,
sometimes in combination with promotional activities such as contest
Approach to pricing services
The relationship between price and demand is well known. For items or service of normal use,
the higher the price, lower the demand and vice versa. In the case of services, each of the pricing
approaches represents a marketing solution to the service provider. Some of the approaches are
as follows
In cost based pricing the company determines the prices by adding the direct material cost, direct
labor cost, overhead and percentages of profit. This method is widely used by industries such as
utilities, contracting, wholesaling and advertising agencies etc. the basic formula for cost based
pricing is:
Price = direct cost + profit margin
Direct cost involves a materials and labour that are associated with the service, overhead cost are
a share of fixed costs, and the profit margin in a percent of full cost(direct + overhead).
Problem
a. Cost based difficulties to trace
One of the major difficulties in cost based approach involves defining the units in which a
service is purchased. Thus the price per unity is the vague entity. For this reason many services
are sold in terms of input units rather than units of measured output. For examples must
professional (such as consulting, engineering, psychotherapy etc) service are sold by the hour
b. labour is more difficulties to price than material
c. since most of the service offers are usually not totally comparable, the utility and cost
comparisons based on cost-based prices is confusing to the customers.
It is another way I which the prices are set by he service provider. An example of this is the
Indian context is the air-travel prices between metropolitan cities. When Indian airlines was the
sole service provider, the price ware quite high and ware based on the cost of operation.
Competition between jet airways, Sahara, and Indian airlines has forces all of them to reduce the
prices of two way airfares by as much as 40%, thus , competition leads to tremendous benefits
for customers.
Going rate pricing is another form of competitive pricing. When there are a large number of
service provider, or when a new applicant comes into market, usually the price cannot be fixed
by new applicant or any single provider.
The third major approach of pricing is demand based pricing that involves setting prices
consistent with customer perception of value prices which are based on what customers will pay
for the service provider.
It is the buyers perception of total value that prompts the willingness to pay particular prices for
a service. To transform the customer value perceptions into a appropriate price for a specific
service offering the marketer must answer the number of questions. What benefits does the
service provide? How important is each of these benefits to the others? At what price will be
service is economically acceptable to potential buyers? In what context is the customer
purchasing the service?
Problems
a. Monetary price must be adjusted to reflect the value of non monetary costs.
b. Information on service costs is less available to customer: hence price may not be central
factor.
Value is defined as perceived benefits for the total cost of acquisition. Thus, the value based
pricing can be divided into following depending on:
a. Higher value perception due to lower price for the service
b. Higher value due to higher perceived benefits, which may accrue due to high quality of the
service or other value perceptions.
Revenue management: What it is and how it works
Revenue management requires a detailed understanding of customer needs and preferences and
their willingness to pay. With this information product and revenue manager together can design
effective product that consists of core service. Many service businesses are now focusing on
strategies to maximize the revenue, or contribution that can be derived from available capacity at
any given time. Revenue maximization is one strategy of many service businesses. Revenue can
be derived from the available capacity utilization at any given time of the firms. It is important in
value creation: it creates value through the effective utilization of available capacity for higher
paying customer segments. It is a sophisticated approach to managing supply and demand under
varying degree of constraints. Airline and hotel, in particular have become adopt at varying their
prices in respond to the price sensitivity and need of different marker segment at different times
of the day, week or season.
Chapter- 7
Distributing service
Concept
Delivery about the service to a customer involves decision about where, when, and how. The
rapid growth of internet means that services marketing strategy must address issues of place,
cyberspace, and time, paying at least as much attention to speed, scheduling, and electronic
access as to more traditional notion of physical location. A service product and its means of
distribution and delivery system have a powerful impact on the customers experiences.
For high contact services, the design of physical environment and the way in which tasks are
performed by customer- contact personnel jointly play a vital role in creating a particular identity
for a service firms, shaping the nature of customers experience and enhancing both productivity
and quality. Low- contact services are expanding in number, thanks to advances in electronic
technology. More and more, these services, often designed specifically with improved
productivity in mind, are being delivered through self service.
Types of contact
The tradition of having customers visits the services other than those in the peopleprocessing category is now being challenged by advances in telecommunications and
business logistics, which are leading to shift to services delivered from a distance
Locational constraints
Although the customer convinces is important, operational requirement set tight constraints
for some services. It is noticed that airports are often inconveniently located relative to
travelers homes, offices, or destination. Because of noise and environmental factors, finding
suitable sites for construction of new airports or expansion of existing ones is a very difficult
task. As a result airport sites are often far from the city centers to which many passengers
wish to travel.
The need of economics of scale is another operational issue that may restricts choice of
locations. Major hospitals offers the many different health care services even a medical
school at a single location, requiring a very large facility
Ministores
A great innovation of service firm is to create service factories on very small scale to
maximize coverage with in geographical area. Automation is one approach, as exemplified
by the ATM, which offers many of the functions of a bank ranch with in small, self service
machine that can be located with in the hospitals, colleges, airports, and office building.
The most obvious locations for consumer service are close to where customers lie or work.
Modern building are designed to be multipurpose, featuring not only office or production
space but also such services as a bank, a restaurant, a hair salon, several stores, and even a
health club. Some companies even includes an on- sites childrens day care facility to make
life easier for busy working parents.
E-commerce
Selling goods and services through the internet is a major growth trend. Personnel computers
and the internet are changing the way people shop. From perusing catalogs and shopping by
mail or telephone, many people are moving to shop in cyberspace for a wide array of both
goods and services.
b. When should service be delivered?
Some services have long operated 24 hours a day, every day of the year. Examples include
those services that respond to emergencies, such as fire, police, and ambulance, or make
repairs to vital equipment. Hospital and the first- class hotels provide 24 hour care or room
service as a matter of course. Similarly, passengers aircraft operate around the clock, and
telephone companies always have operators available on a 24 hour basis. By contrast most
retail and professionals services in industrialized countries used to follow a traditional and
rather restricted schedule that limited service availability to about forty to fifty hours a week.
In large measure this routine reflected social norms as to what were appropriate hours fo
people to work and for enterprises to sell things. Today the situation is changing fast. For
some highly responsive service operations, the standard has become 24\7service -24 hours a
day, seven days a week, around the world.
Chapter 8
Designing the communication mix for services
Concept
Source of information
Encoding
Channels of information
Decoding
Receiver
Feedback
Noise
Advertising
Personnel selling
Sales promotion
publicity
In services, the sales (marketing) departments make promises what other employees in the
organization will fulfill. Because what employees do cannot be standardized, greater
coordination among departments and management of promises are required. A discrepancy
between service delivery and promises occur when companies fail to manage the service
promises- the promise made by salespeople, advertising and service personnels. One of the
primary reasons for discrepancy is that the company lacks the information and integration
needs to make fulfill able promises. The traditional functional structure in many companies
obscures(to hide from view) the end- to- end processes that allow the company to project
when work will be accomplished or whether the service to be delivered will match what is
promised.
In the service marketing the marketer must satisfy the customer by managing the expectation
of customer satisfying customer is meeting expectation of customer. If the expectations are
not meet the marketer must change the expectations of customer. Appropriate and adequate
communication about services is the responsibility of both marketing and operations.
Marketing must adequately (if compellingly) reflect what happens in actual service
encounters: operations deliver what is promised in communication. For examples, when
management consulting firms introduces new offerings such as return-on-quality analysis, he
marketing ad sales departments must make offering appealing enough to be viewed as
superior to competing services. In a expectations above the level at which its consultants can
consistently perform. If advertising, personal selling, or any other external communication
sets up unrealistic expectations, actual encounters will disappoint customers.
If the customers are unclear about how the service will be provided, what their role in
delivery involves, and how to evaluate service they have never used before, they will
disappointment and often hold the service company, not themselves, responsible.
Inexperienced customers, by definition, may not understand how to use services correctly.
For services high in credence properties- export services that are difficult for customers to
evaluate even after they have received the services-many customers do not know the criteria
by which they should judge the service.
Another major difficulty associated with providing service that matches promises is that
multiple functions in the organization, such as marketing and operations, must be coordinated
to achieve the goal of service provision. Because service advertising and personal selling
promise what people do, frequent and effective communication across functions- horizontal
communication is critical. If internal communication is poor perceived service quality is at
risk. If company advertising and other promises are developed without input from operations,
contact personnel may be able to deliver service that matches the image portrayed in
marketing efforts. Not all service organization advertises, but al need co-ordination or
integration across departments or functions to be able to deliver quality service. All need
internal communication between the sales force and service providers. Horizontal
communication also must occur between the human resource and marketing departments. To
deliver excellent deliver service, firms must be certain to inform and motivate employees to
deliver what their customers expect. If those who understand customer expectations
(marketing and sales personnel) do not communicate this information to contact employees,
their lacks of knowledge will affect the quality of service that employees delivers
Chapter-9
People in service
Concept of service employees
Employees are life blood of organization. In the good manufacture organization, the personnel
perform their duties in the factories, away from customers. Most common definition of quality of
services is employee contact skills such as courtesy, attitude, or helpfulness. In the service
business, the personnel are carries of total organizational realities. Through the interaction with
them, the customer forms an opinion about the organization. Service firms develop technical
competencies of the personnel and invest a lot of money in facilities that are essential o produce
a services. In the spite of such efforts, these firms fail to provide a satisfactoriness customer
service because of their inability to manage customer personnel encounter. It is because of this
reason that uncaring salesman, rude bank employees, discourteous service people in restaurant,
unwelcoming receptionists, indifference beautician and hairdressers are found in service
organizations. So, we can say that service employees in two ways i.e. professional service
employees and customer service employees. The professional service employees refers to
lawyers, doctors, consultants, etc. these people posses high qualification, have high level of
perceived status. On the other hand, customer service employees are found in grocery, clothing
and other retail stores.
Importance of service employees
Service employee plays an important role to provide customer satisfaction and in building
customer relationship. Service employees represents the organization and can directly influence
customer satisfaction, they perform the role of marketers. Service employees are not duty or an
break, if they make a rode remarks about or to customers, customers perceptions of the
organization will suffer. So they are very important.
Service employees are the links between service provider and the customer.
The employees promise enables the service provider to make the marketing promise to the
customer. More importantly, the employees deliver this service promises to the customers.
Thus they are crucial element around which the entire performance of the service provider
revolves.
People are the visible fact of the service provider. They are the only one who are seen and
heard by the service recipient. For examples, the receptionist at the tax office receives the
returns at the counters. You are not allowed to go in any further or meet with the taxation
officers.
Role ambiguity
For example: if a boy had an accident and he is bought to the hospital. And emergency cases are
bought to the emergency rooms. The emergency room staffs can see that the patient/the boy is
under distress and need immediate attention. Yet, they feel that they cannot give the treatment
without completion of admission formalities. This type of ambiguity is source of conscientious
employees. It is a situation in which employees are unclear and delama about their action at such
situation.
Role conflicts
The employees are also human being with their own personalities, self esteem and ego,
aspiration, etc. when the job demands that they ignore or suppress some of their individual traits
for the sake of the customer, it can lead to role conflict.
In hotel receptionist should dearly welcome the customers, if a waiter is busy then some times
they will have to service the customer, this task may bring the receptionist to feel it is below their
dignity to carry it out. When a manager insists on it, where is usually a dispute between her and
the manager, which inevitably leads to arguments.
Organizational conflict
There are rules of an organization that need to be overlooks from time to time to secure customer
satisfaction. Thin rules and the common sense action may be at variance or conflict with each
other.
For example the hotel may demand full payment of room rental for another day if the room is
kept beyond 12 noon of the following day. Yet the customer may request extension of rental
period till evening 5 o clock without additional payment. The receptionist knows that there is no
great demand for the rooms during this period. Usually, business visitors check in either early in
morning or late in the evening after the office hours. In order to please the customers, if the
receptionist grants the leeway, the management may penalize the employee for loss of revenue