● Reputation and credibility: Customers believe that the service provider’s business can be trusted and gives adequate value for money, and that it stands for good performance and values which can be shared by customers and the service provider.
Source: Grönroos (2000, p. 81).
Discussion
The MONO project was initiated by practition- ers who have not incorporated an understand- ing of any service quality or tourist product theory into their project plan. The goals of the project were based on obvious needs expressed by all the important stakeholders in the business: the service providers, intermedi- aries and the most important customer group, the business sector customers.
Nevertheless, the idea of the project seems to accept the description of the prereq- uisites for the customer-oriented tourist prod- uct. The idea of the service concept is illustrated by one typical activity operator from Eastern Finland who actively participated in the MONO process:
Very often the business clients are looking for a product that is short (maximum a day), sharp and attractive. Sharp means that the idea has to appeal. If we think, for example, of a four hours canoeing trip, the activity itself is not yet attractive, but the idea comes from where the customer is going to canoe and why. The objective of the trip is as important as the activity itself. The presentation of the core product, the idea of the product, has to appeal. One can almost sell an old activity with a new presentation and a new aim, the same activity for a different reason, which then comes as a new activity.
This activity operator sells about 40% of its turnover directly to the corporate entertain- ment customers. About 40% of its income comes through intermediaries (Komppula, 2001, pp. 14–15).
The technical and functional dimensions of service quality played the most important role in the MONO project. Considerable atten- tion was paid to safety regulations as well as to the efficiency and effectiveness of the imple- mentation of the service process. The integra- tion of the modules in the chain of activities in the service process guarantees the accessibility and flexibility and reliability and trustworthi- ness of the service and the business.
Professionalism and skills were generally dis- cussed from a technical point of view, but the interactive dimension of service quality (atti- tudes and behaviour) were also briefly dis-
cussed. Customer service expertise may have a central role in the follow-up project, once the training of the entrepreneurs begins.
The image-related criteria of service qual- ity, reputation and credibility, as well as servis- cape refer to the service system quality. The system includes the company’s organization, including the service culture and employees, customers and the physical and technical resources. These components must form a whole and work together if the company is to be able to offer services that offer good qual- ity. From the customer’s point of view, most of those qualities that comprise the technical and functional dimensions of quality goods are qualities that they require to be granted as a
‘normal’ quality. High quality is something extra, which makes the product valuable. The above-mentioned entrepreneur states:
The fact is that most of the products that sell well, are easy: cooking coffee and making sausages and pancakes by the fire. Behind all the product development procedures there is the underlying business mission: we must not be cheaper than others, not the most ‘visible’
in the market but the best in customer service.
This indicates that the equipment does not have to be better, the places do not need to be better, but the customer service must be the best, because that is what the customer will remember. The customer needs to remember that he had a great time. Customer service means all the activities that aim at the best possible customer care during the customer process, including the pre-purchase phase and the presentation of the product in the brochures.
(Komppula, 2001, pp. 15–16).
It is easy to agree with Seaton (1996), who argues that the firm is just as much a product as the individual packages of offerings it makes.
It is reasonable to assume that the signifi- cance of sustainable development in the MONO project will not grow until matters that are
‘closer’ and more concrete from the point of view of the producers and clients are in good order in all enterprises. Not until the products are safe and comparable in relation to their tech- nical properties everywhere, will ‘higher’ values such as sustainable development become a com- petitive advantage in an enterprise. The project
manager of the MONO project has, during the process, stressed that the objective is not to cre- ate any kind of quality system, which could be audited by some kind of organization. The pur- pose of the project is to present the guidelines as a ‘theory-in-use’, which would create its own legitimacy through the demands of the cus- tomers. If the customer counterpart demands agreed qualifications and the businesses can pro- vide the quality in practice, competition between the businesses will take care of the rest.
Nevertheless, many stakeholders, especially edu- cational organizations, have expressed an inter- est in creating these guidelines as a quality system with quality ‘visible’ badges or labels. It is an open question as to what the customers’
opinions are, but the customers will decide if the MONO project will gain the legitimacy and if the guidelines will become a theory-in-use.
Conclusion
This case shows that tourist product quality is in practice (and in theory as well) often seen as a key to customer value. Several researchers, nevertheless, suggest that service quality is only one of a number of factors that influence value for the customer. Little research has been undertaken to understand the role that
different value dimensions (such as functional value, emotional value, social value and epis- temic or novelty value) play in the different sit- uations (Soutar, 2001). In relation to tourist experience products, it may be that social and emotional aspects play more important roles than the technical and functional dimensions of service quality, which still seem to have a remarkable role in service quality models and theory. Understanding the customer needs and wants helps the service provider to offer the best possible prerequisites for the customer- oriented tourist product. By participating in customer processes, the customer hopefully may then experience the value proposed in the marketing of the tourist product.
In the MONO project, a sustainability dimension was also included. It must be noted that this dimension is not underlined in general service quality theories. The case shows that requirements of sustainability in tourism busi- nesses are more common in strategic plans, business missions and marketing, than in prac- tical actions. Sustainable development will become a competitive advantage in an enter- prise, if it finds that sustainable development is a property of a product or the enterprise that affects its competitiveness in the market. Then an enterprise will attitudinally commit itself to the development of such property.
References
Aalto, K., Laiho, M. and Talonen, H. (1999) Matkailun ohjelmapalveluyritysten myynti-ja informaatiokana- vat. Loppuraportti 31.8.1999. Tampereen yliopiston Liiketaloudellisen tutkimuskeskuksen julka- isuja9. Tampereen yliopistopaino, Tampere.
Augustyn, M. and Ho, S.K. (1998) Service quality and tourism. Journal of Travel Research37 (August), 71–75.
Cho, Y.-H. and Fesenmaier, D.R. (2001) A new paradigm for tourism and electronic commerce: experience marketing using the virtual tour. In: Buhali, D. and Laws, E. (eds) Tourism Distribution Channels:
Practices, Issues and Transformations.Bookcraft, Bath, UK, pp. 351–370.
Edvardsson, B. and Olsson, J. (1999) Key concepts for new service development. In: Lovelock, C., Vandermerwe, S. and Lewis, B. (eds) Services Marketing: A European Perspective. Prentice-Hall Europe, Berwick-upon-Tweed, UK, pp. 396–412.
Edvardsson, B., Gustafsson, A., Johnson, M.D. and Sanden, B. (2000) New Service Development and Innovation in the New Economy.Studentlitteratur, Lund, Sweden.
Grönroos, C. (1984) A service quality model and its marketing implications. European Journal of Marketing18(4), 36–44.
Grönroos, C. (1990) Service Management and Marketing:Managing the Moments of Truth in Service Competition.Lexington Books, Lexington, Massachusetts.
Grönroos, C. (2000) Service Management and Marketing: A Customer Relationship Management Approach. John Wiley & Sons, Chichester, UK.
Gunn, C. (1994) Tourism Planning, 2nd edn. Taylor & Francis, New York.
Knutson, B., Stevens, P., Wullaert, C., Patton, M. and Yokoyama, F. (1991) LODGSERV: a service quality index for the lodging industry. Hospitality Research Journal14, 272–284.
Komppula, R. (2001) New-product development in tourism companies – case studies on nature-based activ- ity operators. Paper presented at the 10th Nordic Conference in Tourism Research, 19–20 November, Vasa, Finland.
Komppula, R. (2002) Success in rural tourism micro—businesses–financial or lifestyle objectives. Paper pre- sented at the RENT XVI–Research in Entrepreneurship And Small Business Conference, 21–22 November, Barcelona.
Komppula, R. and Boxberg, M. (2002) Matkailuyrityksen tuotekehitys.Edita Oyj, Helsinki.
Komppula, R., Juvonen, O. and Boxberg, M. (2002) Developing guidelines for professional activity services in tourism using a participatory approach – A Finnish Case Study. Paper presented at ATLAS- Conference 2002, 14–16 November, Estoril, Portugal.
Kotler, P., Bowen, J. and Makens, J. (1999) Marketing for Hospitality and Tourism, 2nd edn. Prentice- Hall, Upper Saddle River, New Jersey.
Lumsdon, L. (1997) Tourism Marketing. International Thomson Business Press, Oxford.
Middleton, V.T.C. (1989) Tourist product. In: Witt, S.F. and Moutinho, L. (eds) Tourism Marketing and Management Handbook. Prentice-Hall, Hempel Hempstead, UK.
Middleton, V.T.C. and Clarke, J. (2001) Marketing in Travel and Tourism, 3rd edn.
Butterworth–Heinemann, Oxford.
Morrison, A., Rimmington, M. and Williams, C. (1999) Entrepreneurship in the Hospitality, Tourism and Leisure Industries.Butterworth–Heinemann, Bath, UK.
Mossberg, L. (2001) Upplevelser och Marknadsföring. DocuSys, Göteborg.
Murphy, P., Pritchard, M.P. and Smith, B. (2000) The destination product and its impact on traveller per- ceptions.Tourism Management21, 43–52.
Parasuraman, A., Zeithaml, V. and Berry, L. (1988) SERVQUAL: a multiple-item scale for measuring con- sumer perceptions of service quality. Journal of Retailing64(1), 12–40.
Pine, J. II and Gilmore, H.H. (1999) The Experience Economy: Work is Theatre & Every Business a Stage.Harvard Business School Press, Boston, Massachusetts.
Schlagel Wuest, B. (2001) Service quality concepts and dimensions pertinent to tourism, hospitality, and leisure services. In: Kandampully, J., Mok, C. and Spark, B.(eds)Service Quality Management in Hospitality, Tourism and Leisure.Hayworth Hospitality Press, New York, pp. 51–66.
Seaton, A.V. (1996) The marketing mix: the tourism product. In: Seaton, A.V. and Bennet, M.M. (eds) Marketing Tourism Products: Concepts, Issues, Cases. International Thomson Business Press, Falmouth, Massachusetts, pp. 112–134.
Shostack, G.L. (1977) Breaking free from product marketing. Journal of Marketing,April, 73–80.
Shostack, G.L. (1984) Service design in the operating environment. In: George, W.R. and Marshall, C. (eds) Developing New Services. American Marketing Association, Chicago, Illinois, pp. 27–43.
Soutar, G.N. (2001) Service quality, customer satisfaction, and value: an examination of their relationships.
In: Kandampully, J., Mok, C. and Spark, B. (eds) Service Quality Management in Hospitality, Tourism and Leisure.Hayworth Hospitality Press, New York, pp. 97–110.
Stevens, P., Knutson, B. and Patton, M. (1995) DINESERV: a tool for measuring service quality in restau- rants.Cornell Hotel and Restaurant Administration Quarterly36(2), 56–60.
Tribe, J. and Snaith, T. (1998) From SERVQUAL to HOLSAT: holiday satisfaction in Varadero, Cuba.
Tourism Management19(1), 25–34.
Zeithaml, V.A. and Bitner, M.J. (2000) Services Marketing: Integrating Customer Focus Across the Firm, 2nd edn. Irwin/McGraw-Hill, London.
Zeithaml, V.A., Parasuraman, A. and Berry, L.L. (1990) Delivering Quality Service: Balancing Customer Perceptions and Expectations. Free Press, New York.
©CAB International 2006.Managing Tourism and Hospitality Services: Theory and International 126 Applications(eds Bruce Prideaux, Gianna Moscardo and Eric Laws)
or Soft Touch?
Fiona Williams and Marsaili MacLeod
Scottish Agricultural College, UK
Introduction
The tourism product of an area is subject to the influence of many factors, but often it is the effectiveness with which factors are deployed rather than their abundance that are important considerations. It is the supply-side elements of tourism development, and in par- ticular, approaches to management and mar- keting that provide the focus of this chapter.
Through the medium of case studies, the authors explore how the motivations of tourists are encouraged (via promotion) and ultimately met (via provision) in terms of the supply-side of tourism. More importantly, what form does tourism development take in order to meet the requirements of tourists and is this development appropriate, in terms of scale and benefit to the rural locality?
A common research proposition is that small-scale endogenous tourism developments (that are characteristic of ‘soft’ tourism approaches) are more beneficial and appropri- ate in the periphery than large-scale develop- ments controlled from the core (characteristic of ‘hard’ tourism). It is anticipated that periph- eral areas (relative to core areas) will place greater reliance on natural and cultural fea- tures that necessitate ‘softer’ development for purposes of protection.
This chapter aims to investigate this proposition, by drawing upon empirical evi-
dence from six European case-study regions (exhibiting varying degrees of peripherality), based on the findings of the EU FP5 project entitled, ‘Aspatial Peripherality, Innovation and the Rural Economy (AsPIRE)’. The tourism product and its marketing and man- agement are contrasted and compared with a view to examining how differential approaches to tourism development in rural areas reflect not only the natural and cultural assets associ- ated with the rural product, but the nature and effectiveness of actors in the tourism realm.
More specifically, the authors will attempt to:
● explore how the motivations of tourists are encouraged (via promotion) and ultimately met (via provision);
● establish the relationship between accessibil- ity, and the type of tourism product available;
● examine the relationships between types of tourism and their access to vertical and hor- izontal networks.
Perspectives on Peripherality The transition from an industrial economy towards a service economy presents new opportunities for tourism sector growth, par- ticularly in rural and peripheral areas where returns from the traditional primary industries (e.g. farming and fishing) are limited or fluctu-
ating (Ravenscroft, 1994). It is widely acknowl- edged in literature that the tourism sector, through capitalizing on the natural environ- ment, is one of few development opportunities open to rural areas, as they undergo a signifi- cant restructuring and diversification process (Swarbrooke, 1992; Butler and Hall, 1998;
Bryden and Bollman, 2000; Wanhill, 2000).
Yet the competitiveness of tourism and other enterprises in peripheral regions has been historically constrained by a number of factors. A classification provided by Copus (2001) is a useful means by which to consider the spatial peripherality issues present in the tourism literature. Conventional concepts of peripheral disadvantage are classified into three broad groups: the causal, contingent and asso- ciated. Causal elements include increased travel or transport costs and the absence of agglom- erative advantage, both as a result of remote- ness relative to the main population centres or hubs of economic activity. Contingent ele- ments of peripheral disadvantage are conse- quential of the causal elements, such as the high cost of service provision. Associated ele- ments are connected with peripherality, although the causal links are less direct.
First, consider the causal elements of the classification in relation to tourism literature.
There have been attempts to model transport mode selection (e.g. Mill, 1992) and identify common decision variables (e.g. availability, frequency, cost/price, speed/time and com- fort/luxury). The inhibiting aspects of the dis- tance decay function on travel decisions are incorporated in such models. For example, Prideaux (2000) concludes that increased dis- tance generally leads to increased transport access costs and assumes greater importance within the total holiday cost. Absence of agglomerative advantage has also been cited as a barrier to tourism development in remote locations characterized by small and medium- sized enterprises (SMEs). Wanhill (1997) high- lights a number of weaknesses in tourism SMEs that can be attributed to lack of agglomerative advantage. These include transactions and information costs prohibitive to obtaining knowledge, and supply dominated by family businesses with limited business skills.
Secondly, contingent elements include limited market opportunities or markets in
decline, limited ability to appreciate market needs and demands, little statistical informa- tion or market research and a lack of strategic management (Wanhill and Buhalis, 1999).
Finally, barriers ‘associated’ with peripherality include seasonality coupled with poor climate, a lack of tourist infrastructure, and that tourism alternatives are usually primary resource economies with small manufacturing bases.
Paradoxically, although weak characteris- tics have traditionally defined peripherality, the residual qualities have been recreated as a tourism product in recent years, to the point that distance itself may become a function of the destinations popularity. Under- development has favoured the preservation of unique landscapes, environmental features, culture and tradition, which are being revalued in postmodern society. Embedded in periph- eral localities are local identities which form the ‘culture’ or ‘essence’ of an area and effec- tively provide further resources available for development by local actors (Ray, 1999).
These resources are inextricably linked with the local territory and can be strategically used to add value to local products and services, and to create positive images that motivate people to visit. Therefore, many of the conditions of marginal territories embody features which act as a product, and have the potential to be ben- eficial to tourism development. At the same time, reduced travel time and cost has decon- structed spatial notions of distance from the core.
Approaches to Development – the Product in the Periphery Lying within the transformation of peripheral regions from zones of production to zones of consumption is a paradox: the modern tourist is now consuming the very qualities that make these localities peripheral (Gomez and Lopez, 2001). However, whilst peripheral areas may have tourism assets from which to harvest opportunities, ‘the preconditions for effective peripheral area tourism development may con- tain within them the potential seeds for their destruction (or at least erosion): pristine envi- ronments can be sullied by tourism impacts’
(Slee, 2001, unpublished data). The type of tourism activity promoted can influence the effectiveness of peripheral localities in deriving benefits from this phenomenon. As such, the success of tourism in peripheral areas can be said to reflect both the strategic management of an appropriate tourism product, and the ability of the tourism sector to overcome the implicit challenges of inaccessibility.
In order to reduce such detrimental effects often associated with large-scale mass develop- ment, experts advocate soft tourism models (WTO, 1998, p. 131). Soft tourism emerged as one of the multiple forms of sustainable tourism in the late 1980s and early 1990s, par- ticularly favoured by peripheral areas. Such models coincided with conditions of increased economic well-being coupled with decreased travel costs, and sensitivity to the detrimental effects of mass tourism on socio-cultural and environmental milieux. Soft tourism is charac- terized by small-scale endogenous develop- ment, comprising activity that makes use of local products, employs local people, does not place unacceptable burdens on the environ- ment and respects local traditions and ways of life (Lane, 1994). Its antithesis is hard tourism which is typified as large-scale developments, often controlled by external actors, with neither little cognizance of the impacts on local cultures and environments nor little connection to them (Slee, 1998). Such tourism systems are likely to be weakly connected to the local economy, due to the foreign business ownership, and supply chains. Relationships with external suppliers, distributors and retailers may result in ‘leak- ages’ from the local economy.
The advocacy of the soft tourism model has coincided with a growing interest in endogenous approaches to rural development,
‘favouring local control and direction and more integrated strategies based on combined and sustainable economic, social and environmen- tal development’ (Bryden and Dawe, 1998, p. 5). Such development strategies utilize dis- tinctive aspects of the economic, social and cul- tural environments in order to raise the profile of a locality whilst simultaneously linking peo- ple, products, innovation and investment to a particular place and encouraging a strong local participation in development (Ray, 1999).
Such integrative strategies are characterized by
trust-based relationships between local tourism providers, consumers and institutions, and the use of place-based promotional schemes. This system is deemed beneficial for the area not least because, in terms of simple regional mul- tiplier analysis, tourism enterprises that have strong local linkages tend to utilize, and offer the consumer, locally produced products and services. From the perspective of the tourist, locally embedded tourism provides interesting and educational product attributes, and a more authentic experience.
Proposition
The success of tourism in peripheral areas is dependent upon creating links with external actors, and in attracting international cus- tomers to the locality. Therefore, we expect effective tourism development in peripheral areas to utilize soft tourism approaches and to display not only strong local (or horizontal) networks within the locality, but strong exter- nal (vertical) networks to intermediaries, which have traditionally assisted with the movements of tourists. It is anticipated that hard tourism approaches, which are commonly exogenous in nature, are more likely to be dominated by external networks, with less integration into the locality. In such cases, external agents may control capital and expertise, with little financial benefit to the locality (Buhalis, 1999).
It is proposed, therefore, that small-scale endogenous tourism developments (character- istic of soft tourism approaches) are more ben- eficial and appropriate in the periphery than large-scale developments controlled from the core. Consequently it is anticipated that the tourism product in more inaccessible regions will demonstrate characteristics of ‘soft’
tourism, i.e. a dedicated product and special- ized processes. Conversely, the tourism prod- uct in more accessible regions is likely to be characteristic of ‘hard’ tourism, exhibiting standardized processes and a generic product.
Simultaneously (as shown in Fig. 12.1) it is expected that there will be greater local and external integration, through horizontal and vertical networks of the local tourism industry