Product Levels, New Product Development & Product Life Cycle in Hospitality – Lecture 9

Summary

This module covers the design and management of products in the hospitality and tourism industry, focusing on both tangible and intangible products. It explains the different levels of products—core, facilitating, supporting, and augmented—and how they contribute to customer satisfaction. The process of new product development is also explored, from idea generation to commercialization, highlighting stages such as concept testing, market strategy, and product launch. The module emphasizes how both physical products and service quality, including customer interactions, shape the overall guest experience in hospitality and tourism settings.

Takeaways

• 😀 A product is anything offered in the market to fulfill customer needs or wants in exchange for value, and can be either tangible or intangible.
• 😀 Tangible products are physical items that can be touched, while intangible products include services, experiences, or information.
• 😀 Products in hospitality and tourism can be planned (deliberately created) or unplanned (occurring spontaneously). Unplanned products can either surprise or frustrate customers.
• 😀 In the hospitality industry, both tangible (like food or a hotel room) and intangible elements (like service speed and employee interaction) play a significant role in customer satisfaction.
• 😀 The core product is the primary offering that meets the customer's needs. For example, food at a restaurant or a guest room in a hotel.
• 😀 Facilitating products help deliver the core product but aren't the main focus. Examples include plates in a restaurant or toiletries in a hotel room.
• 😀 Supporting products, while not necessary to deliver the core product, add extra value or differentiation, such as branded amenities or exclusive services.
• 😀 Augmented products include elements that enhance the overall experience, such as accessibility, location, customer interaction, and service atmosphere.
• 😀 New product development follows a cycle starting with idea generation, moving through concept development, market strategy, and product testing before commercialization.
• 😀 The product life cycle consists of four stages: development, introduction, growth, maturity, and decline. Companies often introduce new products just as older ones are about to decline.

Q & A

What is the definition of a product in the context of the hospitality and tourism industry?

A product is anything that can be offered in the market to capture value from customers. It can be tangible, like food or a hotel room, or intangible, like experiences or information, and is meant to satisfy the needs or wants of customers.

What are the two main types of products discussed in the transcript?

The two main types of products are tangible and intangible. Tangible products are physical items that can be touched, like food or a guest room, while intangible products refer to experiences or information that are felt or experienced.

What is the difference between planned and unplanned products?

Planned products are those that are intentionally created and delivered by the service provider, while unplanned products occur unexpectedly, sometimes leading to surprises, which can either enhance or frustrate the customer experience.

How do intangible products impact the hospitality and tourism industry?

Intangible products, such as the speed of service or the quality of interactions with employees, play a crucial role in customer satisfaction. In hospitality, the overall experience, including service quality and ambiance, can significantly impact the perceived value of the service.

What are the four levels of products in the hospitality and tourism industry?

The four levels of products are core product, facilitating product, supporting product, and augmented product. The core product fulfills the primary customer need, the facilitating product helps deliver the core product, supporting products offer additional value, and augmented products enhance the overall experience.

What is the core product in a restaurant and in a hotel?

In a restaurant, the core product is the food being served, while in a hotel, the core product is the guest room, as these are the primary offerings customers are paying for.

What role do facilitating products play in the hospitality industry?

Facilitating products are essential items or services that help deliver the core product. For example, in a restaurant, these would be plates, utensils, and napkins, while in a hotel, they could include toiletries and room furniture.

What are examples of supporting products in the hospitality industry?

Supporting products are not essential to delivering the core product but can enhance the customer experience. Examples include branded shampoos or soaps in hotel rooms, exclusive cups at coffee shops like Starbucks, and unique room amenities.

What is an augmented product, and how does it contribute to differentiation in hospitality and tourism?

An augmented product includes aspects that support the customer experience and differentiate the service provider. This includes factors like accessibility, hours of operation, location, ambiance, and customer interaction. It adds value beyond the core and facilitating products, often creating a unique customer experience.

What are the main stages in the new product development cycle for the hospitality and tourism industry?

The stages in new product development include idea generation, concept development and testing, market strategy, product development, test marketing, and commercialization. These stages ensure that new products are carefully designed, tested, and launched effectively.

How does the product life cycle apply to the development of new products in hospitality and tourism?

The product life cycle consists of four stages: introduction, growth, maturity, and decline. Companies often create new versions of products as they near the maturity or decline stage to maintain profitability and offset the costs of new product development.