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Group 8

Services Marketing- Quiz 1

EURO DISNEY- GAP MODEL ANALYSIS GROUP 8

Gap 1: The listening gap What they got right Market research conducted to test for acceptance of Euro Disney. Results indicated 85% welcomed Euro Disney. What they got wrong Relationship focus: In order to capture a bigger European market, they kept a multi linguistic park. This led to employees being rated as mostly good enough due to high anxiety levels of multi linguistic nature of customers Market research: French/European food habits werent studied in comparison to American fast food culture. They did not anticipate the peak demand during meal times of the dining halls.

Service Recovery: Weather proof waiting lines(adapted from Tokyo) and additional skating ring for waiting customers were introduced. Relationship Focus: ADL identified individual target markets by distance from site and population, penetration rates, annual visit estimates and thus planned for the capacity and quality of Euro Disneys hotels Market Research was used to plan for the tone

Group 8 of the parks design. This was used to accommodate local preferences. Thus the park was given a western American taste in line with what customers wanted to see the most. Service recovery: Multi cuisine restaurants and snack bars around the theme park to accommodate food concerns after the initial flaw was discovered

Services Marketing- Quiz 1

Gap 2: The service design and standards gap What they got right What they got wrong Customer driven standards: Pricing was kept Service Design: Wine wasnt served in the park and higher than other theme parks, which were was only available adjacent to Hotel New York and considered inferior. But lower than Parisian under supervision of unsmiling security and riot adult-oriented entertainment to attract the right police with guns. This hurt the sensibilities of the set of people predominantly French local visitors Service scape: The parks design was mostly Service Design: French/European eating habits traditional Disney but accommodated European werent based on fast food during off hours and requirements and preferences, especially French. the dining facility had problems serving families during peak demand times. They did not anticipate a structured meal schedule and hence could not deliver in the initial period. Customer driven standards: French was declared Customer Driven Standards: Some opined it did not the first language at the park in response to meet US standards of Disney service. They did not concerns raised by the government. Boards appreciate the long waiting lines, poor service remained bilingual. delivery and multiple operational glitches that they encountered. They were not matching upto the high standards of the American mainland Disney worlds. Characters on display were mentioned to be Customer Driven Standards: Customers expected rooted in European Mythology to appeal to the an escape from the real world. For them Disney European sensitivities. gave such an opportunity. But the European employees, due to difference in cultural upbringing and servility, ended up acting like real people not Disney people. This created a discord between expectation and delivery. Physical Evidence and Service scape: Shift from traditional Disney to a European adaptation was viewed as confused and strange. The people who had seen both sides of the Atlantic did not find this deviation positive. Customer Driven Standards: The variation in ethnic background of customers varied their levels of patience in waiting outside. The differences in expectations while keeping service delivery constant, brought a variation in satisfaction levels that couldnt be addressed. Service design: The French population felt a

Group 8

Services Marketing- Quiz 1 discord in the service experience from their traditionally high expectation levels. Their preferences werent being met and being the local population, they felt left out. Pleasing a multiracial population was turning out very complex for Euro Disney because they couldnt alienate the French, but also couldnt rely on them alone for revenues. Service design: High entry cost was turning out to be a deterrent for many family visitors. The pricing was done at par with Parisian levels but that wasnt the standard for many family outings. This was keeping away many visitors.

Gap 3: Gap between service standards and service delivery What they got right What they got wrong Match of supply and demand: Euro Lack of empowerment: One of the policies of Disney was Disney due its brand image and appropriate control over it employees to make the service popularity was able to attract provided consistent throughout all its locations. It laid too customers of the required mix very many restrictions on attitudes, dressing, appearance, easily. It was mainly adults in their behaviour than a French employee could take. They sensed late 20s with children who visited the a lack of empowerment and freedom, this was obvious from park. the attrition rates that Disney was having and the frequent change in managers. Evaluation and compensation systems: Disney couldnt handle it employees through it compensation systems either. The employees were generally paid on the lower side but were compensated through provision of staff housing. At the time of opening though it faced a great shortage of housing. This general dissatisfaction (hectic work life along with low compensation) led to a low attrition rate which hampered the service that Disney gave to its customers with newer personal joining each time. Customers lack knowledge of roles: The customers of Disney theme park were expected not only to be spectators but also participants in the play. They had to participate in the rides, games, enjoy the mythical surreal atmosphere and be one with the surroundings. It contributed most to level of service quality delivery and satisfaction of the customer. However a similar experience wasnt seen in Euro Disney, the French (locals closer to the location) were more worried about buying the tickets in a hurry and not standing in a queue. This made them just ride-goers, participation is also important for creating the required atmosphere. Customers negatively impact each other: An average day at Disney would show queues of people waiting to get into a ride. However the French didnt have the patience to stand in lines and would lead to dissatisfaction as well as nonparticipation from their side. Difficulty in controlling quality and consistency: There was a lot of variability in the customers that visited the park.

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Services Marketing- Quiz 1 People from all over Europe visited the place. The employees were hence expected to know many languages; it created a pressure on them about which language to speak to which customer.

Gap 4: Gap between Service delivery and External communication to customers What they got right What they got wrong Overpromising: Euro Disney tried to Absence of internal marketing program: There was little keep consistency in its offerings, hence loyalty Disney had among its employees, this was mainly they never communicated more than because dissatisfaction, low control and hectic work they could offer schedule. Inappropriate pricing: Some visitors thought that Euro Disney was too overpriced; they considered the offerings too minimal for such a high ticket price.

Customer Gap What they got right What they got wrong French way of living: The French were more used to the comfortable way of living unlike the Americans who dint mind eating on the run. Hence when they were made to wait in queues or were not served wine in the park it did not gel with their personality. Past experience: Many Customers were left dissatisfied because they had initially been to other Disney theme parks but did not have a similar experience this time at Euro Disney. There were many reasons for this including the atmosphere (to which the participant customers contribute most), the attitude of employees Situational factors: Since temperatures in France were cooler than those America (or even Spain for that matter) there were few customers who would visit in the winter. Most of the bookings with agents failed to materialise in this season, however in summers and spring the park would be full.

Why it makes sense to be in Europe? Why France? Was it a mistake? 5% (2 million) from Europe annually visited American Disney Park, considering the ticket price of $34.75 in 1991, it gave a revenue of $69.5 Million (from Europeans alone). This makes a shift to the European mainland a smart move to capture a growing market. Recommendations: Internal marketing: Autonomy vs efficiency There is a trade-off between employee autonomy and efficiency. Given the dropping levels of satisfaction and its inherent variation, Euro Disney should allow employees to be only bilingual. This

Group 8

Services Marketing- Quiz 1

would reduce their anxiety levels and improve performance through uniformity. The employees should continue to be Disney people and not real people even though their European upbringing doesnt make them so. Disney is in the business of fantasy worlds and its employees should continue to be an extension of this idea. Introduction of interactive kiosks will give better information to customers in their language of choice.

External marketing: Satisfaction vs efficiency The more number of customers that Disney tries to capture, the lower is the service quality and uniformity. They should instead focus of delivery of great service to a particular target segment, ie young parents with kids and young adults with high disposable incomes. This segment provides a longer CLTV and greater retention rates.