Term Paper on "Gaps in Service Quality in Regard to the Club Pacha"

Term Paper 9 pages (3480 words) Sources: 7

[EXCERPT] . . . .

Service Quality

Club Pacha

Club Pacha has successfully differentiated itself from many nightclubs and entertainment venues in Manhattan by concentrating on a unique four-floor design that assures their customers will have a unique experience. Given the fact that the nightclub industry has been severely impacted the recession which has yield a -.9% growth from 2005 to 2010 and only a 2.8% growth from 2010 to 2015 with total revenues of $89.1B, every nightclub has to strive to be so different and unique in the experiences they offer that the generate return customers. From a marketing standpoint, this is not particularly easy as there are 199,401 nightclubs in operation across the U.S. And Manhattan and the New York metro area is known as the most competitive and affluent of nightclubs nationally if not globally. New York is the most competitive market for a nightclub to operate in nationally and one of the top ten globally. For Club Pacha to have survived and thrived during a recession, the experiences it delivers to customers has not only met but exceeded expectations. The Club is also very well attuned to what it is actually selling as an experience in nightclubs and that is an eclectic, high energy and in their VIP Services area, exclusivity and elegance. All of these elements of an experience are what successful marketers rely on when they integrate the marketing mix and strategies of their firms (McAdam, Joseph Pine II, 2006). Each of the extended attributes of the market mix are analyzed and assessed in this paper using the Gap Model of Service Quality (Candido, Morris, 2000). Recommendations are also made with regard to how Club Pacha can also increase the quality of their execution of each of the extended marketing mix factors, all coordinated to deliver an exceptional customer experience on a consistent basis. Pervading this analysis is the fact that excellence in marketing, especially when it comes to services marketing, is more oriented toward services, service recovery when a customer is dissatisfied, and gap model of service quality for analyzing variances between expected and perceived service quality levels (Crosby, 2010).

Environment of the Firm

The economic environment the firm operates in is highly fragmented due to the many psychographic groups that prefer nightclubs as a way to socialize with friends and enjoy special occasions including New Year's Eve. These psychographic groups are more defined by their shared interests, tastes in music and venue type than strictly by age (Berger, 1993).

A common set of demographic factors emerge from an analysis of the psychographic attributes of nightclub customer's however. First, those customers with incomes $50,000 or higher generate 70% or more of the revenues in higher-end nightclubs that have restaurants included in them. Generation Y consumers were born in the mid-1980s and prefer entertainment that is interactive, including venues that have WiFi and good cell phone coverage as well. The focus on experiences for Gen Y consumers is very high and driven by the need to define their identity by what they do for entertainment and fun (McAdam, Joseph Pine II, 2006). High-income Gen Y consumers are the primary market high-end nightclubs and restaurants and are the primary factor in driving the development of multi-experience venues, which the club Pacha exemplifies with its design. From a competitive standpoint the Gen Y consumer is the one that the nightclubs attempt to gain loyalty from through frequent visitor programs and through special promotions. This segment defines the overall marketing mix of many clubs throughout the New York metro region, and many of the U.S. regions as well.

From a government and legal standpoint the city and country food quality, fire and safety regulations force a significant cost on the operation of club Pacha on a daily basis, as the taxes to pay many of these services are included in very transaction. The costs associated with property taxes are also significant and require club Pacha to generate significant revenue to pay them. Often insurance companies will require that the city taxes be paid on a bi-annual basis as will the mortgage company or property owner for the building. These considerations are what owning a business and the building it operates in costly and often a central part of the financing. For club Pacha there is also liability insurance that must be included in all of these costs as the city of New York also will require compliance for liability as the club is a public meeting place. All of these factors add up and define the cost structure of the club while also contributing to the breakeven point over time of the entire business on a monthly and yearly basis. For a club that is of the magnitude of club Pacha, all of these items must also be in compliance as their image or reputation will be determined by these factors as well, Being in compliance is good for the branding of their business and its continued operations over time. As club Pacha will need to attain a high degree of trust as part of their brand, having all of these costs and licenses taken care of so they are not a distraction is a critical part of their business as well.

As their customer base is primarily young, education and higher-income Gen Y and accustomed to having access to the Internet, their need for WiFi access and choosing a club location with excellent cell phone coverage is critical. This requirement of providing customers with the opportunity to be connected is critical as the majority of the primary target market for club Pacha is on social networks and uses Twitter, Facebook, Foursquare, text messaging and e-mail to keep in touch. Having WiFi access across all four floors is a critical success factor for the club, in fact having several high bandwidth wireless routers per floor is essential. Again, this also relates back to the experience of being at the club as well. The club needs to be synonymous with convenience and staying connected, and as a result, the WiFi network is critical to the club's position and reinforcing the experience that is being created there. From a social and cultural standpoint, the club needs to bring all these elements together mentioned in this environmental analysis section to ensure that a unique and differentiated experience is created for their customers. With a structure of four floors, the club can also define unique experiences for each area including customizing each of the floors for specific parties or events. This further adds to the differentiation and the unique experience being created.

Extended Marketing Mix

The following extended marketing mix is analyzed using the Gap Model of Service Quality (Candido, Morris, 2000) to determine how club Pacha can better manage the gaps between customers and providers, perceptions of expected vs. perceived service and analysis of service delivery.

Product or Service

Club Pacha's service and experience deliver is actually the product being analyzed using the Gap Model of Service Quality. All aspects of club, from the initial visit, through the exploring of each floor if open to the public, to the quality of the interactions with hostesses and staff all contribute to the perceived service. How the club promotes itself in terms of its unique value of experiences, the commitments in makes about its service, and the implied service value all are part of any gap analysis (Booms, Bitner, 1981). Advertising, promotion and the intensive use of social networks including Facebook fan pages and YouTube video all fuel the perceived service of the club. The experience patrons have either validate and strengthen or lead to dissatisfaction and lack of interest in going back.

For club Pacha's senior management the challenge is going to be how to use the continued development of new experiences to continually fuel a consistent expected performance over time that aligns with the perceived experience or service. The continual development of new services must concentrate on keeping expected and perceived expectations aligned with each other to ensure long-term customer satisfaction occurs (Candido, Morris, 2000). The new service offerings being developed also must stay focused on minimizing and eliminating the potential for a major difference between expected and perceived expectations by setting the overall expectations at a realistic level. This is critically important with special events as well, with such fundamental practices as making sure the entertainments booked for New Year's Eve can actually make it, keeping costs down to provide loyal customers with the opportunity to introduce friends to the club, and also always looking at how to translate consumer expectations that are not met into service programs. In short, this cycle needs to be continuous to ensure that the club continually stays relevant to patrons over time (Crosby, 2010).

Place

The location or place of the club is the catalyst of how expectations are set and kept throughout the relationship cycles they have with customers. Place must be highly differentiated, very unique and focused on entertainment and delivering exceptional value for… READ MORE

How to Reference "Gaps in Service Quality in Regard to the Club Pacha" Term Paper in a Bibliography

Related Term Papers:

Service Quality in the Health Care Supply Chains Research Proposal

Service Quality in the Health Care Supply Chains

What are the strengths and weaknesses of Sam's decision to use focus groups to generate a list of service quality measures rather… read more

Research Proposal 1 pages (413 words) Sources: 0 Topic: Healthcare / Health / Obamacare

---

Service Level Attributes Research Paper

Service Level Attributes

Marketing is so ingrained in the modern way of life we almost do not notice it -- yet we are all ingrained and enraptured by its very… read more

Research Paper 4 pages (1619 words) Sources: 4 Topic: Business / Corporations / E-commerce

---

Quality Service Management Research Proposal

Quality Service Management

This case study emphasizes the development of SQM in a small Libyan tourism agency, Libya Safari Tours (LST). With the experience I had working for this company… read more

Research Proposal 10 pages (3417 words) Sources: 17 Topic: Business / Corporations / E-commerce

---

Quality Management Principles ISO 9000 Essay

Quality Management Principals

Over the last several decades, a variety of firms have been continuing to embrace the practices of total quality management (TQM). This is an idea that was… read more

Essay 5 pages (1687 words) Sources: 5 Topic: Management / Organizations

---

Quality Improvement Regarding Pain Control in Orthopedic Patients Research Paper

Quality Improvement in Orthopedic Patient Pain Management

Because everyone experiences pain differently, formulating effective pain management protocols for patients in general and orthopedic patients in particular represents a challenging but… read more

Research Paper 5 pages (1497 words) Sources: 5 Topic: Healthcare / Health / Obamacare

---

View 100+ more related papers  >>