“Customers no longer want a standardised product and their expectations determine quality, Differentiation and Customisation should therefore replace standardisation as the way to meet those expectations in the hospitality sector” – To what extent do you agree or disagree this point?
It can be seen that customers wants standard quality of commodities and facilities they consume in their day to day life. Change in their needs may sometimes create discontent to the customers and absence of delightfulness can be seen. Along with the product being standardised it is mandatory for that to also be of approved quality. This statement falls true in case of “High Quality Product attracts more Number of Customers”. One can get benefited by adopting the Standardisation policy as the rules and regulations of the particular company will be the same and hence the procedure of the company runs smoothly as the policies are determined as per the rules. Standardisation helps in getting expected quality of commodities to the customers and their expectations determine the quality which they want to perceive.
The importance of Standardisation can be understood by linking it with quality of service perceived by the customers. Customers want better quality of service at standardised level. For example, if in a pizza hut restaurant, one table gets proper personalised attention with quick service and the other table does not get the same level of service when compared then this leads to high quality of dissatisfaction amongst the customers getting poor quality of service. This factor will not create delight to the customers and would not meet their expected standards as well as their expectations. It is not every time that customization proves to be better but also standardization helps customers to fulfil their requirements in their day to day life. Though it is rightly said that customisation means to modify the things as per the customers individual requirement and choice but standardization is to keep the uniformity of the product designed and maintaining its standards.
Standardisation means to conform to a uniformly pre-described set of norms, repeatedly by standardizing any product. Standardized product gives better quality of service. As the products and commodities are standardized it becomes easy to provide service in accordance of the same. In other sense customization means making changes in particular product as per the customer’s requirement and desires. This helps customers making their own choice about any standardized product. Customization and Standardization either of two satisfies customers needs in their own terms and services. Considering all such factors customization and differentiation can be replaced by standardization based on some norms and policies.
One of the benefits of standardization is the cost effectiveness leading to high price. Compared to pizza hut one can notice the price effectiveness of the restaurant. There are costly dishes in the restaurant which are not actually afforded by lower class of people even if they desire the pizza hut food. Further, if the products and commodities are standardized consistency and uniformity is maintained and it becomes easy to work so the management runs smoothly and efficiently. Adding to this, it is also necessary for a restaurant to plan its future uncertainties and certainties affecting the business. Similarly on other note, there are some disadvantages of standardization affecting the creativity of a personnel working in a particular sector. Referring to Pizza Hut restaurant, it can be observed that as all the procedures and recipes are standardized, this shows death of one’s own personal touch and also kills their creativity. Also for that, to make workers and employees understand their work properly it becomes mandatory to provide them with required training and for that high cost is imposed on such activity which leads to increase in labor cost factor. As all the work and the procedures are standardized lack of motivation is being provided to the employees, somehow leading to dissatisfaction for the employees. On other side adopting standardization policy fails to satisfy customers based on their needs and wants as all the things are standardized and no further changes can be made as per their own choice but comparing this to pizza hut, they help us customizing the product we want to some extent.
The base of standardization is the policies determined at the time of formation of the standardized products and services. Companies marketing their products and services overseas are faced with the decision of whether to standardize or adapt their product offerings. The standardization of products across cultures is increasingly becoming an important issue nowadays that is difficult to follow for some company. Standardization policy means to sell the same product throughout the world making no changes even at one particular place, as this maintains the uniformity over the world of such company or brand. Adding to this, as all the products are standardized it becomes easy for the manufacturing and production committee to manufacture the products uniformly as per the requirements throughout the world. Doole and Lowe (2008), mainly advocate product standardization. In their observation, Doole and Lowe (2008), point out that the standardization discussion leads at one extreme, a global approach in which everything in the international marketing activity is standardized in all countries as standardizing the various elements of the marketing process has the aim of scale economies in production thereby leading to improved efficiency. As the world becomes smaller and the markets are seen as being the same, others have been advocating a standardized product strategy as they view the market to be the same as it is increasingly becoming homogeneous. Further, Doole and Lowe (2008) point out that if the product is not attractive or appealing to the customers, then no amount of sales promotion, appropriate channel of distribution or reduction in price will help to achieve the marketing target. Hence, physical design, brand name, quality, packaging, durability, taste and services attached to the product are very important from the marketing point of view.
It is an obvious thing that a product’s appearance, function, and support make up what the customer will actually buy. Therefore, it is vital for managers to pay close attention to the preferences and tastes of their product packages in addressing their customers. Further, in managing product components, product planning and development entails careful planning with the customer in mind. Thus suggesting that, the decisions are required to be taken regarding product range, packaging, branding, quality, labeling and other features of the product. In the question as to whether to standardize or adapt, a product manufactured for market should be according to the needs and expectations of consumers. Comparing this to pizza hut, it can be seen that if the product is attractive it creates delight to the customers and make them desire about the particular item. A customer gets attract seeing the marketing strategies of the restaurant providing facilities perceived by the customers fulfilling their individual desires and wants. In pizza hut we can see that the menu at different branch of it differs and is attractive which attracts more customers and also the advertising element plays a vital role for the same. It is also mandatory for such brand to check whether the qualities of the products they are using are of standard quality or not.
According to the understanding of the authors, standardization is a practice of setting identical characteristics for a particular good or service. Lundeteg, A. (2012) also suggests a standardized approach as a “one size fits all” approach". It can be seen that the standardization of products across cultures is increasingly becoming an important issue that the managers of global firms are facing today. Adding to this, Valdez (2011) points out that those firms following a standardization strategy enter foreign markets using the same advertisements, packages and presentations that were used in the domestic market. Because making new advertisements, packages and product lines is expensive, standardization requires less investment as compared to other such policies of the company. Pizza hut brand also follows these norms, as in our day to day life we can see that the brand is trying to achieve success more by offering affordable offers to the customers also by delivering their desired product at home and also by announcing new products and strategies in the market by attractive advertisements and publicity for the same. Thus, such adoption of strategy helps more customers to attract towards such facilities.