CHAPTER 1: INTRODUCTION
Title-To Analyse the impact of customer satisfaction and customer loyalty within the hospitality industry" -A case study of Marriott International Inc. UK.
1.1 Statement of the aim
The aim of current investigation is based on following mentioned aim which decide the path of overall dissertation. Here, impact of customer satisfaction is assessed on customer loyalty. However, the study is being done on hospitality sector or industry where firm face issue related switching of consumers from one to another brand.
To analyse the impact of customer satisfaction and customer loyalty within the hospitality industry A case study Marriott International Inc UK
1.2 Identifying the objectives
The objectives of present dissertation are explained as follows which are in the line of aim.
- To understand the concept of customer satisfaction and customer loyalty
- To identify different factors affecting customer satisfaction and customer loyalty at Marriott International Inc UK
- To determine the impact of customer satisfaction and customer loyalty at Marriott International Inc UK
- To recommend ways to increase customer loyalty and satisfaction
1.3 Discussing rationale of the study
The study on assessing the impact of customer satisfaction on loyalty is very important as it helps corporation to increase their revenue by applying different ways to grab the attention of buyers. However, the concept of customer satisfaction and loyalty are considered as the most prominent aspect for the growth ad development of business. As this serves as the basis to increase sales turnover and expand business at international marketplace. At present business face issue related to customer retention which take place just because of inability of firm to meet the expectations of buyers. However, majority of the times it happens that firm do not understand the need of buyers and accordingly they are not provided right product or services (Heskett and Sasser, 2010). It has become the potential reason behind conducting such kind of studies so as to maintain the competitive edge of the business in the marketplace. Owing to this, it is important conduct this particular study to learn about weaknesses and strengths of the firm along with assessment of all its competitors. Furthermore, study under investigation would be effective to allocate the resources in a optimal manner so as to meet the expectations of all related consumers. Apart from this, study is being conducted to understand the reason by which customer get dissatisfaction and areas require improvement are also discovered.. In addition tot his, appropriate system to maintain the higher level of customer satisfaction is applied on the basis of outcome of the investigation so as to maintain the loyalty of buyers.
1.4 Discussing theoretical or conceptual framework
The conceptual framework of current study is based on vivid insights which is developed with the help of use of appropriate source of information. The research shed light on different models applied to understand the consumer satisfaction along with research on getting insight related to their need and preferences. First of all concept of customer satisfaction and loyalty is made clear with the application of suitable customer satisfaction model. Here, it has been found that when customers are provided the services and product in accordance with their requirement at the time their level of satisfaction increased (Bowen and Chen, 2001). The model of customer satisfaction shed light on getting the information related to expectations or requirement of buyers and then accordingly take appropriate decision to increase the market share of the business. This results in increasing the profitability and thus meet the expectations of buyers effectively.
Similarly, customer metrics will be used to get the information related to their satisfaction, expectations and brand preferences etc. This in turn support researcher to develop in-depth understanding about the topic.
At the same time, decision to stick to particular brand is taken by the buyers. Furthermore, different factors such as quality, price and variety of services are considered under the most important aspect through which brand loyalty can be ensured. At the same time, suitable mode of communication are also effective which in turn firm effective establish better relationship. Apart from this, customer recommendation, share of wallet and trend in spending are some the factors which will be considered for increasing their level of satisfaction and thus its impact on brand loyalty. Moreover, customer brand relationship model will be applied for better understanding about impact of customer satisfaction on brand image of the business. In this manner, factors leading dissatisfaction or satisfaction are identified so as to assess its direct relevance with brand loyalty (Hansemark and Albinson, 2004). In this manner, hotel industry can explore different areas which requirement improvement in their service quality. Hence, conceptual frame would ascertain varied factors leading satisfaction to consumers and the consequent development of loyalty towards a particular brand. In this manner, structured procedure will be adopted under which at first concept of customer satisfaction and loyally will be understood. It would be followed by factors through which brand image of firm is created and how it link to satisfaction level of users. Apart from this, at last research shed light on impact of brand image on users loyalty.
1.5 Main terms of the study
There are different terms applied in the current dissertation which are defined as follows-
Customer loyalty-The term customer loyalty refers to the likelihood of buyers to purchase a specific brand on repeated basis in accordance with some specific terms like variety, quality, price or others (Larivière andet. al., 2016).
Customer satisfaction-It is the marketing term used by business in context of particular product or service that whether it is meeting expectations of buyers or not. The term customer satisfaction assists business to focus on lacking areas in order to retain buyers for longer time span (Mateias and Brettel, 2016).
Brand image-The term brand image refers to impression of particular service or product held by potential or real customer. The brand image of an organization is developed with the passage of time via advertisement and communication strategies.
CHAPTER 2:LITERATURE REVIEW
Literature review is the most important chapter which consists of different secondary data for the purpose of developing deep understanding. It would be effective for scholar to collect large amount of information and draw valid outcome. It involves varied studies whereby related concepts of customer satisfaction and customer loyalty is clarified. The current literature review is based on assessing the impact of customer satisfaction on loyalty, themes are prepared. These themes are helpful for the purpose of presenting the collected data n an effectual manner. The first theme is about understanding the concept of customer satisfaction that how it is derived and how it aid in reaching the outcome. Therefore, factors affecting the customer satisfaction and loyalty are identified so that accordingly impact of the same can be seen on retention of buyers in hospitality sector.
2.2 Concept of customer satisfaction and customer loyalty
According to Comegys, Hannula, M and Vaisanen, (2006) customer satisfaction serves as the most important objective in the field of marketing. Here, organizations put efforts to increase the level of satisfaction so as to predict their purchase intention towards a particular brand. Though, is consider overall behavior of buyers in term of brand choice, purchase intention, repurchase and switching behavior. All these factors are considered with the help of implementation of right kind of marketing strategies. Devaraj, Fan and Kohli (2006) reviewed that customer satisfaction begins with the overall evaluation of after purchase decision. It reflects that fulfillment response of consumers.
Similarly, Eskildsen and Kristensen (2007) defined that satisfaction of buyers is the feeling of disappointment or pleasure related to the particular brand in relation to their expectations. Earlier the issue related to dis-confirmation of buyers expectations affecting the performance of the business. However, it was based on three outcome of consumer brand evaluation under which actual performance is compared with the certain standards. Here, the first one shows confirmation under which performance of product and services matches with the standards set by the consumers which tend to bring neutral feelings. On the other hand, positive disconfirmation tends to derive satisfaction under which performance of product or service go beyond the standard.
In addition to this, negative disconfirmation reflects that performance of services worse than set standard that bring forth outcome as dissatisfaction among consumers. Owing to this, decision related to satisfaction and dissatisfaction is taken on the basis of comparison made between performance of the product and services in accordance with the standard. There are some factors which influence customer loyalty that impact the customer loyalty such as discount offer and promotional code which help in encouraging customer to buy product and services. It organization take feedback from its customer and make improvement in the product which help in increasing customer loyalty. Along with this digital also help in building customer loyalty because it help; in making interaction with customer. Along with this it also helps in removing barrier between customer and other company. Firm can conduct research for identifying their needs and wants, so that it can make product according to the needs and wants of customer.
One of the another method for influencing the customer loyalty that is social media it plays significant role in making strong relationship with customer. There are different social networking sites which help in increasing sale of product and services. Further it is easy way to find out what people think about there company. From the research is has been identified that more then seventy percent of people state that information find out that social sites influence their buying decision. He further highlighted that online customer services also influence the loyalty of customer. Face to face interaction help in getting more information what people think about company which help in modifying product and services. If customer problem listened organization then satisfied the customer. Customer want high quality product and services so company need to focus on improving services so that it can easily increase satisfaction level of customer.
2.3 Identifying different factors affecting customer satisfaction and customer loyalty at Marriott International Inc UK
According to Hsu (2008) customer satisfaction is gained with the help of different factors such as offering them services on right time and meeting their expectations effectively. This aspect enables customers to shed light quality of services that whether they are getting right kind of services or not. For this purpose, Harn and Adeline (2008) asserted that varied factors such as friendly workforce along with their helpful nature and quick services. An example of workforce can be taken in which customer directly interact with service providers especially in case of hospitality sector. In case personnel are highly skilled and trained then they can effectively address the issues which are being faced by customers. It is not about skills only but focus of workforce on objectives of the same and accordingly start opting the friendly behaviour with them. Similarly, the helpful nature of personnel is also effective under which they initiate for helpful consumers to get the right kind of services. However, users or customers face several kind of issues in getting the right kind of services and the same kind of scenario can be resolved with the use of appropriate kind of environment. Jiang, Jones and Javie, (2008) argued that less skilled workforce create issue for the business by disappointing consumers. They face issue in understanding the problem of consumers and offering them suitable kind of services in accordance with their need or expectations. On the other hand, good value of the business and billing clarity are some of the crucial factors which has positive impact on the satisfaction of the buyers and make them to be able to develop loyalty towards the brand . It is indicating that employees are the most important aspect behind increasing the satisfaction level of customers. It is helpful to ensure success of the business in the marketplace along with greater profitability and strong market position. Koo, Kim and Lee (2008) critically evaluated that, competitive pricing, service quality and billing timeliness are other important factors which play important role at the time of rendering services to end users. For example, availability of right kind of prices makes it possible for corporation to retain its customers and derive higher level of satisfaction among them.
liu, He, Gao and Xie (2008) reported that services, billing and quality as well as employees are some of the key factors which aid to meet the expectations of all related parties. In this manner, firm can easily address the issues which are being faced by customers or other related parties. In this manner, overall customer satisfaction is derived through effectiveness in service delivery system along with quoting fair prices. There are some factors which influence customer loyalty that impact the customer loyalty such as discount offer and promotional code which help in encouraging customer to buy product and services. It organization take feedback from its customer and make improvement in the product which help in increasing customer loyalty. Along with this digital also help in building customer loyalty because it help; in making interaction with customer. Along with this it also helps in removing barrier between customer and other company. Firm can conduct research for identifying their needs and wants, so that it can make product according to the needs and wants of customer. One of the another method for influencing the customer loyalty that is social media it plays significant role in making strong relationship with customer. There are different social networking sites which help in increasing sale of product and services. Further it is easy way to find out what people think about there company. From the research is has been identified that more then seventy percent of people state that information find out that social sites influence their buying decision. Online customer services also influence the loyalty of customer. Face to face interaction help in getting more information what people think about company which help in modifying product and services.
According to the view of Schweizer (2008) the core offer impacts how long will the customer will stay and be loyal towards the products and services of the company. This considers various factors such as location, standard which is being offered and the quality of products and services. Also elasticity is one factor which impacts the loyalty of customers. If the products and services are more commoditised, there are more chances that customers will move around while is they are required to do a lot of research on products ans services then there are more possibilities that they will have faith in their decisions. He further asserted that quality is the most significant factors which influences contentment of customers. They expect that the price which they are paying for a product should reap good qualitative benefits. If the firm compromises on quality standards of the products and services then it may also loose loyal and trustworthy customers. Also the anxiety of separation affects the customers satisfaction to a great extent. In a market there are many same products offered by different firms. Customers get contented when he gets a products different from another and has distinct and unique features. In the products in very good from the rest of products which are similar, then it is important to separate it from them through use of effective marketing techniques, better customer services.
2.4 Determining the impact of customer satisfaction and customer loyalty at Marriott International Inc UK
Roman (2007) asserted that customer brand relationship model can be applied in the current scenario under which different factors affecting buyers decision making process will be also be understood. Here, brand objectives and customer emotion journey is considered. The parameters decided on the side of customer-emotional journey are aware or familiar, curious or engaged as well as affectionate or passionate. Along with that fanatical or protective is also included in the same which tend to affect the performance of the business. It is because when customer is well aware of the product or familiar with the same then decision of their will be different in both the situations. Apart from this, some of the customers are highly engaged with the corporation as they become loyal towards the business so as to meet their expectation or daily routine in an effectual manner. This can be accomplished with the help of having direct communication with the the business whereby it becomes easy to understand the preferences of consumers. However, some of the customers are passionate towards a particular brand due to its features and quality or many other factors. These thing motivate them to take quick purchase decision from the mentioned brand.
Schiffman, Kanuk and Hansen (2008) argued that users who are getting services from a particular brand might be satisfied and it is the major reason they do not to another brand. It can be critically evaluated that other related factors variety of options and lucrative offers make them able to access services offered from a particular brand. It can be critically evaluated that emotional journey of customers is considered by the brands so as to retain them for at least some specific time span. It would be effective for business to increase rate of return along with increasing sales turnover. However, firm also being comfortable to access cost effective sources of finance if customers are retain. This is made possible with consistent increase in sales revenue along with higher profitability. Not only this but chance to expand the business also increases. Comegys, Hannula and Vaisanen (2006) argued that brand objectives of an organization matter a lot. It is because some of the business has only motivate to increase the revenue along with drastic expansion of the business. This might not be effective to gain the attraction of buyers and make them more focused towards a particular brand. However, tailored community engagement, community building and awareness are some of the specific aspect of the firm through which business gather detail information and support them to create its reputation in the marketplace. Apart from this, brand objectives are made in the line of customer preferences. This helps to address issues which are being faced by customers and provide them comfort zone by offering them good quality of services. It aids to cater need of all related consumers and enable business to secure its strong market position.
It is the considered as the most important part of literature review under which researcher of the includes all important models related to study. It would be effective to clarify the scenario and enable research to accomplish the study effective so as to gather valid outcome effectively. The development or incorporation of varied models make it possible for researcher to present the scenario effectively and reach at the outcome of the investigation. It has been explained as follows-
The following model is showing relationship between customer satisfaction and service quality. According to Schweizer (2008) customer satisfaction and service quality are positively related to each other. In case quality of services changes then same changes can be seen in term of customer satisfaction. Owing to this, management of corporation shed light on meeting expectations of buyers by offering them good quality of services. This aspect proves to be effective in supporting customers and resolving all of their issues effectively so as to promote image of the business. It can be critically evaluated that the satisfaction of customers and quality are directly linked to each other. However, the perception of customers related to assurance, reliability and empathy as well as responsiveness are focused in case of service quality. This aspect represent that how customers perceived quality of product and services.
The above mentioned model is reflecting that service quality is the basis to determine the customer satisfaction. It is because when customers are offered services by focusing upon its quality, situational factors and price as well as personal factors. This scenario makes it possible to address issues which are being faced by buyers and provide them comfort zone where they can effectively become loyal towards a particular brand. In this manner, quality of services shed light on customer satisfaction and accordingly results can be seen in term of their loyalty towards a brand. This in turn hotel industry can effectively contribute towards growth of the business along with decision related to expansion. This phase is made possible only with the help of meeting the expectations of all related parties and retaining customers for longer time.
Koo, Kim and Lee (2008) asserted that hotel industry of UK shed light on opting suitable strategies whereby customer loyalty is achieved. For this purpose, factors such as focus on customers and creation of value perception are important. This makes it possible for firm to shed light on specific factors and modify the current marketing strategies in the same direction. This provides upward growth for the business which proves to be effective to create competitive edge in the marketplace. Schiffman, Kanuk and Hansen (2008) argued that concept of loyalty is very important which cannot be taken for granted. It is the on-going procedure wherein customers must be kept on providing better quality of services. Furthermore, using the approach of loyalty companies ensure close tie with customers in order to make them aware of availability of varied products.
The customer loyalty under the hotel industry is made possible with the help of service orientation. Management ensure to focus on right kind of accommodation, food and other entertainment related services through which it becomes easy to gain the attraction of customers. They ensure that reasonable care is taken for the customers and other things associated with the same. Not only this but also hotel industry believe to be highly responsible with the scenario of customer satisfaction. For example, staff is offered training to become quick responsive whereby customers can easily get their queries resolved. Apart from this, situational factors such in case in case there is any abnormal condition with the particular hotel then staff make it comfortable to users and help them adjust with the same. For example, a customer lose the antique watch in the hotel premises then staff act as quick responsible and help customers to get the same or take the reasonable action for the same incident. This increases trust of the customers towards the brand and they like to become loyal towards the same.
The concept for customer satisfaction in linked with their relationship with an organization that whether corporation is meeting their demand or not. It can be understood with the help of online marketing domains. It can be understood with the help of following mentioned aspects in the diagram. It is showing that marketing strategies are initiated through business and consumers both. For this purpose corporation can effectively develop good relationship with business and accordingly its results can be observed in term of higher rate of return. The first element is showing business to consumer online marketing which ensure the interaction of customers and business. At this juncture, firm recognize the requirement of business and they are provided services in the same manner. The phase or concept of online marketing is continuously increasing. It is the major reason behind the growth and development of the business. Owing to this, corporation can effectively support all operational activities so as to deliver good quality of services to large number of buyers.
However, use of internet ease consumers to get their best preferred services on time. For example, this kind of scenario provide them a chance to book their hotel on time along with selection of the most suitable service. Furthermore, business to business is another important practice under which corporation can easily implement the effective work environment. In this manner, corporation can easily render good quality of services to all parties. For example, consumer to consumer is another element applied in online marketing domain. Apart from this, consumer to business model related to online exchange of services. This facility is being provided to customers for replacing their old items with new one along with offering them a facility to buy new product. However, there are some customers who seek for the products which can be purchased on relatively low price. It enables corporation to effective ensure the continuous procedure of sale and increase the level of customer satisfaction. Apart from this, business to business transaction also take place over the online domain. This facilitates consumers to get the right product with the help of searching the most appropriate information. In this manner, business create its goodwill and ensure two way communication with its clients. Owing to this, varied kind of concepts are taken into account for promotion of sales strategy. However, some of the communication barrier crate issue of corporation in meeting the liability related to business.
The study is being conducted on hospitality sector of UK with specific focus on Marriott hotel. The hotel introduced various kind of reward system for its customers along with offering good quality of services. At this juncture, hotel tends to focus on launching reward system with Ritz-Carlton under which participants can several benefits. However, it is made possible by offering appropriate kind of services and enabling them to access those services effectively. For this purpose, Marriott vacation club offers unique kind of services for the specific people or clients in order to give rich experience among them. Furthermore, accordingly to the new customer survey of Marriott hotel, it has been found that reward program of hotel is on the top due to its range of services and quality of the same. At this juncture, the satisfaction of customers was measures on the basis of five factors such as ease of redeeming the points, loyalty account management and earning pints as well as reward program terms. Along with that, customer service is also included among those program. However, other hotels of UK like Inter Continental hotels and Resorts got the rank 2 whereas Delta hotel got 3rd Rank. It depicts that best reward program is offered by hotel industry of UK and accordingly satisfaction of customer is increased. In the same manner, impact of consumer satisfaction can be seen on their loyalty. It is the major reason they take decision related to expansion in the marketplace along with higher rate of return. Moreover, several other kind of facilities are also provided to consumers for meting their expectations and assisting them to being loyal towards particular brand.
Identifying the research questions
The research question of current study are explained as follows. It is framed in accordance with the research aim and objectives. This is very effective to meet the purpose of the investigation as varied studies are refers in accordance with the framed research questions. The first research question indicates that concept of customer satisfaction and loyalty is considered where focus is laid on understand the factors which are affecting the concept of customer satisfaction. This enables researcher to apply the suitable strategies and accordingly follow the most suitable approach for meeting the objectives. In addition to this, impact of customer satisfaction is analyzed on brand loyalty of customers.
What is the concept and different factors affecting customer satisfaction and customer loyalty at Marriott International Inc UK?
What is the impact of customer satisfaction and customer loyalty in Marriott International Inc UK?
What are the recommendation to increase customer loyalty through increasing the level of customer satisfaction?
To be continued....
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