Volume 1 Number 1 (April - September 2001)

  Forces Driving Change in the Hospitality Industry in India
Michael D. Olsen, Prakash Chathoth, Amit Sharma

Competing in today’s global market place is daunting.  The global flow of capital is forcing countries to open their doors to free trade if they expect to maintain economic growth within their borders.  This imposes many new challenges for executives who now must rely upon their ability to understand what changes will result from this and how they will impact their organizations if they hope to compete successfully in this environment.  This translates into the need to think strategically by developing foresight into those forces that will drive this change.  This is not a competency that has been achieved by many management professionals who have competed in the free markets of the world and it is even less so in those nations where protectionism was the underpinning of government and business policy.  However, in order to succeed in today’s global environment, it is now an essential capability.

  Competencies in Hospitality Industry
Rabindra Nath, Rajat Raheja

In the given business scenario it is becoming imperative that each of players in the hotel industry consciously work towards achieving and maintaining differential positioning based on service standards. However any process improvements or innovative ideas set by the leaders are constantly copied by the “me-too” players thus providing only diminishing returns to them.  This puts considerable pressure on the leaders to constantly upgrade service standards in the organization. Hence the key question remains how to continuously drive the desired behavior in the organization where service standard is the key to survival. One important factor in driving the desired behaviours in the organization is how the changed strategy, processes and innovative ideas are implemented and communicated down the line. This is of critical importance as change in the job role due to changed processes needs a different competency requirement on part of the job incumbents leading to different skill sets and performance measurement standards. Here arises the need for a common thread  that would run across all HR systems, and can help to drive and measure behaviour of an employee. Competency based approach focuses on how an employee creates value and what is actually accomplished and has thus provided a much needed lynch-pin to link all HR systems in the organization that will help drive and reinforce desired behaviour. However the key here is how the competencies are mapped and implemented. The success really depends on the time, effort and commitment on the part of the top management to drive such an initiative. Hence before taking a plunge, it is important for the top management to deliberate on the reasons for opting for competency-based approach and tools to be used for competency mapping.


India is known worldwide as ancient and mysterious civilization and the second most populated country of the world after China, with a population of one billion. With increasing worldwide tourism and travel for leisure, business and cultural purposes are on the rise, India attracts only 2.4 million visitors annually of the 600 million who travel. India can develop a sound policy to attract tourism and travel to generate jobs at the lowest cost of investment per job in this industry as well as promote sustainable development and cultural heritage, which has been so precious to India. India needs to shed its reluctance of encouraging tourism by affluent Westerners. Tourism, if properly planned and promoted can provide 20+ million jobs in next ten years and foreign exchange in excess of 30 billion dollars. What India needs is a firm policy and commitment to expand tourism as a source of sustainable economic development with value for the tourists and enhancement of India’s cultural heritage.

  Room rates on the Internet – is the Web really cheaper?
Peter O’Connor

This study is Analysis of web pricing strategies in the Top 50 International Hotel Chains. It study represents the first major attempt to investigate the pricing strategies of hotel companies. The bookings made on some of the major web based hotel distribution channels have been analysed to establish if a logical pricing strategy is discernible. The study reveals that majority hotel brands are utilizing multiple web based distribution channels offering multiple rates to their customers over each distribution channel.

  Empirically Testing the Relationships between User Involvement, Information Waste, and MIS Success
Ramaraj Palanisamy, Sushil

This paper presents the empirical findings to validate the relationships between user involvement, information waste, and MIS success. The variables-user involvement and information waste are considered in MIS prioritization, design, and implementation. A conceptual model has been evolved from the literature. User satisfaction has been used as the surrogate measure for MIS success.   Hypotheses are evolved from the model.  For testing them, a questionnaire survey was conducted in which 104 users from eighteen organizations have participated. The survey results show that user involvement in one stage of MIS development affects their involvement in subsequent stage; information waste in one phase intensifies the waste in next phase. The following hypotheses are statistically validated: (i) User involvement in MIS prioritization influences the involvement in design (ii) Information waste in MIS prioritization is positively related to information waste in design which in turn is related to waste in implementation (iii) User involvement in MIS prioritization is negatively related to information waste in MIS prioritization (iv) Information waste in MIS prioritization is negatively related to user satisfaction.

  Building A New Academic Field in India: The Case of Services Marketing
Dr. Mohan Lal Agrawal

Inventorying a discipline at any time serves three main purposes: One, it offers an account (although by an individual, and therefore, subjective to that extent) of what has been achieved so far. Two, a whole new range of issues emerges that could re-energize researchers, practitioners and policymakers. Third and finally, a review is inescapable if it involves a new academic field, like Services Marketing in India. This paper describes evolution of teaching services marketing in India. Set against the backdrop of emerging service scenario, it divides itself in two parts. The first part deals with the current convergence between services and goods. It argues that the convergent view of services (viz. goods as well as services) is preferable to the dichotomous view (viz. services versus s. goods) especially at the nascent stage of the discipline in India. The paper goes on to analyze the 1973 framework of Fisk, Brown and Bitner for mapping evolution of the discipline. The latter half of the paper identifies the key challenges to the discipline of service marketing in the east with a special focus on India. It tracks how deep has the teaching of services marketing penetrated in business schools and outlines an action plan for further diffusion.  In so doing, the paper raises several issues that may enter the future research agenda.

  The Importance of Managing Points-Of-Marketing in Marketing Higher Education Programmes – Some Conclusions  Venkatesh Umashankar

The paper establishes the need to consider programmes of higher education as services that require to be marketed as per the tenets of service marketing. Debates conceptually, based on extant literature, the relevance of various semantic issues related to such terms as Service Encounter, Points-of-Marketing and Moments-of-Truth, which have been used by various authors, as there are certain overlaps needing clarification. It delineates the evolution of managing and marketing of higher education programmes in India, setting the agenda for discussion. The paper specially focuses on the service encounters occurring the choice making phase on part of the consumer, before deciding to join a programme of study. Certain observations have been put forth in the form of specific conclusions facilitating the effective management of these encounters, under such heads as – responsibility, attitude, physical setting and process and communication.


Dot com is a sector which is widely chased by the venture capitalists. The author in this paper has tried to express that the future of dot com  business is doubtful in India and the time has arrived when the venture capitalists should divert a part of their funds in the fast growing entertainment sector.


This paper attempts to provide an insight into the customer relationship management processes at Hewlett Packard India (HP). The company strongly believes that there is a strong relationship between employee satisfaction, customer satisfaction and market share. This paper attempts to study the employee management processes at HP. It also tries to map the customer management processes at HP. The employee satisfaction processes include the HR initiatives taken within the organization, measures taken by the top management to sustain a suitable climate within which innovation thrives and concern for employee welfare and development becomes extremely important.  The customer management processes include creation of databases, managing the call centre, ensuring skill and knowledge upgradation by the engineers and service providers in touch with the end consumer. The organizations should focus on customer loyalty rather than just attempting to achieve customer satisfaction. Customer loyalty in the long run acts as a source of profitability for the firm.

Mohan Lal Agrawal

In the month of June 2000, Mr. Ramesh Chandra, Managing Director of ABC Foundation telephoned Professor Ramachandran, requesting a convenient time to meet. The apparent urgency was to discuss marketing plan of a new customer privilege card that the Foundation was launching shortly in Guwahati, the capital town of the state of Assam. Assam as one of the seven states of the North East of India, was unquestionably the most promising market in the region (Refer Exhibit 1). Mr.Chandra assured Professor Ramachandran that he needed his opinion on a few other business proposals as well, that were pending before the Foundation. Mr. Chandra had earlier interacted with the professor in a seminar on services marketing in Delhi. Suitably impressed by his academic and industry experience, Mr. Chandra was now keen to hear Professor Ramachandran before he implemented the marketing plan. After a few minutes of conversation, Professor Ramachandran agreed to meet the following week.

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