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Transcription of this question: 3.TurnersTurners is a famous hotel located in a large city. It is positioned as having the highest quality Ofcustomer service and most Of the employees have worked for Turners for over ten years. Regularcustomers like knowing the employees at reception and Other areas Of the hotel. Many customershave commented on the unique style of customer service at Turners. They like the fact that the peoplein the photographs used in promotional materials are actually the people they interact with whenstaying at Turners.Turners has an expensive, award-winning restaurant. Turners had used a price skimming strategywith room rates at over S 1000 per night. However, new competition from three other recently openedhotels and Other changes in the external environment have resulted in revenue becoming more cyclical.Profits are falling.Surprisingly, the General Manager, Shane Peterson, also received some negative customer feedbackfrom a random sample Of customers. Firstly, they claim that Turners’ online booking system isslow and unreliable. Customers complain Of an overbooked restaurant and untidy leisure facilities.Business customers argue that the newer competing hotels Offer better customer service, high-speedinternet and Other business services for no extra charge. As a result, Shane is reviewing Turners’marketing mix.Shane has to focus on improving customer service as well as reducing costs. He is consideringtwo options:Reducing labour costs by implementing Handy’s shamrock organization.• Outsourcing Turners’ staff training programme. Currently, it uses an internal, on-the-job stafftraining programme where experienced staff train new employees.The cost savings from using Handy’s shamrock organization would reduce salaries and wages by 70/0.Outsourcing Turners ‘ staff training programme would reduce training costs by 9%. These combinedsavings could allow Turners to Offer high-speed internet and Other business services for no extracharge to customers.(a)(b)(c)(d)(e)Define the term price skimming.Identify two key features of random sampling.Explain the importance Of people, process and physical evidence for Turners.Examine the usefulness for Turners Of using Handy’s shamrock organization.Evaluate whether Turners should outsource its staff training programme.[2 marks/[2 marks/[6 marks][6 marks][9 marks]

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