Locus Rags Blog Unit-2 Marketing of Service Product

Unit-2 Marketing of Service Product Introduction Price has been an important factor determining the quality of the product and the benefits that customers derive from the product. (Yoo, Donthu, & Lee, 2000) This element of the marketing mix includes the total costs that the customers have to bear in order to avail a particular service. For determining the prices the service provider needs to consider that bearing the costs satisfies the customer needs and demands and they feel that they receive value for the money they invest. The company should also maintain a profitable margin. Hospitality is a unique industry where the decisive factor for the customers is not always pricing. They look for comfort, safety, ambience, accessibility to other places of their choice and access while choosing the hotels. Although price is an important factor. (Constantinides, 2006) My analysis of the Rockhampton Plaza Hotel suggests that as the hotel does not provides the services of booking through its own website and uses this activities outsourced to travel asgencies and tour websites, the hotel by itself lacks having bargaining power in terms of pricing with the customers. The hotel charges 350 AUD room rent per day and the customers can....The post Unit-2 Marketing of Service Product appeared first on LOCUS R.A.G.S.