James BlackmoreFriday 19th October 2017 GCSE Topic 2 Revision Lesson In the case of Pelstone hotels

James BlackmoreFriday 19th October 2017
GCSE Topic 2 Revision Lesson
In the case of Pelstone hotels, poor customer service is when the business does not satisfy their customer’s needs, meaning the experience customers receive is a negative one.

The way in which a business performs that fails to provide the customer with what they desire and expect which means the customer has a poor experience with the business.
Pelstone fails by
Providing a poor level of room service
Ineffective Service
Poor Quality Food
Unhelpful Staff
Not enough staff to satisfy customer’s needs.

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Firstly poor customer service may affect the Pelstone Hotel business due to negative word of mouth reviews that customers give to their friends, colleagues and general people whom they know. If the customers who use Pelstone Hotels are not satisfied with the experience they receive from their business and feel like their customer needs have not been met then they are extremely unlikely to recommend the Pelstone Hotel business to others. Through these negative word of mouth reviews Pelstone Hotels are likely to see a decrease in customers, as customers who experience was negative and give negative word of mouth reviews will not encourage people towards the brand. Also the business may see a loss in revenue and profits due to the decrease in customers, eventually the lack of customers may make the businesses net cash flow negative, something which could eventually cause Pelstone Hotels to close.

Secondly poor customer service may affect the Pelstone Hotel business due to a lack of repeat business for the hotels. Repeat business is when previously satisfied customers return to the business, in this case staying at a Pelstone owned hotel again in the future. As the customer service from the business was negative and the experience the customer received was far from positive it is far from likely that previous customers to the business will wish to return, why would anyone want to return to a business which does not value their customers? Repeat business is a big deal for businesses, customers who use the business repeatedly provide the business with increased levels of revenue and profit, and are far more likely to give positive word of mouth reviews. Therefore, as the customer service at the hotels was not satisfactory Pelstone Hotels may find that they do not experience high, if any, levels of profit and revenue, meaning that the net cash flow may become negative, causing Pelstone Hotels to close.

Lack of repeat business
Damage to Reputation
Poor reviews (Online)
Poor rewards for investors
Competitors benefit by taking sales away
By improving customer service Pelstone Hotels may be lure American customers back to their business. If Pelstone Hotels makes its customer service positive and manages to satisfy its customers’ needs many customers of the business may have a positive experience with the business. If this is the case the business may benefit from positive word of mouth reviews, something which the business would not have benefitted from when the customer service was negative. When satisfied customers give the business positive word of mouth reviews this may encourage new American customers looking for cheap hotels in London to look at what Pelstone Hotels has to offer, the positive word of mouth reviews satisfied customers have to offer may encourage new and existing customers to book a stay at one of Pelstone’s Hotels. Over time Pelstone Hotels may be able to attract more customers from America once more, making up for customers which they previously lost when their customer service was negative. Through improving their levels of customer service and the positive word of mouth reviews Pelstone Hotels may be able to lure back customers from America once again.

However even if Pelstone Hotels does improve its level of customer service it will not be easy to lure customers from America back to its hotels. If previous customers to the business have experienced the poor level of customer service Pelstone previously had to offer they have more than likely formed a negative opinion on the business, something which may overshadow their decision when looking to book a hotel in London. As the experience they received previously with Pelstone Hotels was negative previous customers are less than likely to return. Even customers who have never used the business before may not wish to give the business a chance due to the negative word of mouth reviews they have heard from previous, unsatisfied customers.
The Design Mix
Design Mix: Shows whether a product will focus on cost, function or appearance
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The design of a product is important for product differentiation
Stock Control
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Stock delivered when needed by the production process. No stock
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