Managing Customer Perception

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How can Hotel UiTM Dungun charge different prices to different segment of customers without them feeling cheated?

Managing the customer perception of value is crucial in order not to make them feeling cheated. Thus, marketers need to understand how customer perceives service value in order to set an appropriate price. Since value is subjective, not all customers have the skills or knowledge to judge the quality and value they receive. This is true especially customer may only assess the quality of a service after consumption. To manage the perception of value, effective communication and even personal explanations are needed to help customers understand the value they receive.

Hotel UiTM Dungun should implement a strategy in which helps to have revenue management practises together with customer satisfaction. First strategy is to design price schedules and fences that are clear, logical and fair. Firms should actively spell out all fees and expenses clearly in advance so that there are no surprises. For a rate fence to be perceived as fair, it must be designed in simple form so that customers able to easily understand them and see the logic in them. For example, Hotel UiTM Dungun should advise the customers about any late-charges, no show and cancellation charges when they are making reservation so that they are well aware and not feeling cheated when they arrived at the front desk.

Second strategy is to communicate consumer benefits. Marketing communication should position revenue management as win-win practise. Providing different prices and value balances allow customers to self-segment and enjoy the service. It allows the customers to find the price and values that best satisfies his or her needs. For example, Hotel UiTM can charge higher price for the best rooms in the hotels, best view rooms and some people are willing to pay more for the better location and facilities. Other rooms can be sold at lower price. When the customers are accustomed to...
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