Impact of Service Quality on Customer Satisfaction

This assignment investigates the crucial link between service quality and customer satisfaction within the hospitality sector, specifically focusing on hotels. It requires students to delve into existing research, analyze relevant data, and examine case studies to understand how various aspects of service quality influence customer perceptions and overall satisfaction. The analysis should consider factors like staff performance, amenities, cleanliness, and communication.

A study of improving
customer satisfaction and
retaining loyal customers within
hotel business

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
Overview......................................................................................................................................1
Rationale of the research.............................................................................................................2
Aim of the research......................................................................................................................2
Objectives of the research............................................................................................................2
Research questions.......................................................................................................................3
Potential Significance of the study..............................................................................................3
Limitations of the research..........................................................................................................4
Dissertation structure...................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
2.1 Introduction............................................................................................................................6
2.2 Importance of customer satisfaction......................................................................................6
2.3 Factors which are significant for customer satisfaction at hotel............................................8
2.4 Identification of the problems faced by hotels in satisfying customers.................................9
2.5 Evaluation of the problems faced by hotels in satisfying customers...................................11
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................13
3.1 Introduction..........................................................................................................................13
3.2 Research philosophy............................................................................................................13
3.3 Research approach...............................................................................................................13
3.4 Research technique..............................................................................................................14
3.5 Research design...................................................................................................................15
3.6 Data collection.....................................................................................................................15
3.7 Data analysis........................................................................................................................16
3.8 Ethical consideration...........................................................................................................16
3.9 Validity and reliability.........................................................................................................17
CHAPTER 4: ANALYSIS AND EVALUATION........................................................................18
4.1 Introduction..........................................................................................................................18
4.2 Thematic analysis................................................................................................................18
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................24
5.1 Conclusions..........................................................................................................................24

5.2 Recommendations................................................................................................................25
REFERENCES..............................................................................................................................27

CHAPTER 1: INTRODUCTION
Overview
Customers are considered to be the biggest asset of any organization. It not only assists a
business in achieving its framed objectives but also helps in strengthening the organization to the
core. It leads the company towards success (Blut and et.al., 2015). It helps in ascertaining that
whether the framed strategies of the company are able to fulfil the requirements and desires of
the customer or not. One of the main aspect of achieving customer satisfaction is having
effective strategies of serving customer prepared through the customer’s perspective. Another
important aspect of customer satisfaction is satisfaction and contentment of the employees. A
chunk of satisfied employees is able to deliver better services to its customer ultimately leaving
them happy and content with the kind of deliverables received (Zablah and et.al., 2016).
Hotel industry is one sector in the country which is very competitive. The competition
level in the market demands extra ordinary services from the side of service providers so as to
enhance the market share. It also helps in building competitive advantage over other companies
present in the market (Sengupta, Balaji and Krishnan, 2015). In that scenario, better marketing
practices being framed by the top-level management can help in serving the purpose in the most
effective manner. In the today’s world, hotels not only cater to the requirement of having a
shelter, that is, accommodation and food. but is able to serve more than that, such as,
personalized services. Other operational services of hotel include, housekeeping, security, food
and beverage division, etc. Travel and tourism sector is considered to play a major role in
development of hotel industry in the country. Since, majority of the profits by this sector is
achieved by tourism and tourist visiting the country. Researcher states that 4% of the total GDP
is received through hospitality industry of UK (Saeidi and et.al., 2015). There are approximately
9.6 thousand hotels that are operating in UK in 2016. Moreover, the statistics is constantly
increasing since 2008 in the country. In order to survive in this competitive market, it becomes
important for the organization to come up with the strategies that can capture large number of
market towards it. Moreover, product differentiation is one strategy that is used by the
organizations so that customer can prefer one hotel over other (Orel and Kara, 2014).
Another important aspect of hotel industry that can be analysed is that of customer
retention. When a customer arrives in a hotel, it becomes important for the management to give
long lasting experience so that they can be chosen over other hotels for the next time as well.
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Customer retention hence become an important aspect to retain its customers for longer period of
time and make them loyal towards a particular brand (Gera and et.al., 2017).
The present dissertation on study of improving customer satisfaction and retaining loyal
customers within hotel business will be able to research over the subject title in depth generating
better recommendations for the companies who are dealing in this sector.
Rationale of the research
It is important for any study to hold certain importance so that adequate output and benefit
can be generated out of it. The present study focusses on addressing the requirement of customer
satisfaction and retaining loyal customers within a hotel business. The findings of the study will
help in supporting and identifying various strategies that can be used by the hotel-oriented
organization so as to improve their satisfaction and retention level. Government is currently
focusing on strengthening the tourism sector as majority of the input in total Gross Domestic
Income happens to be contributed by tourism and hospitality sector of the country. Another
purpose of conducting this research is that researcher is not well versed with the concept of
customer satisfaction and retention. The present research will help in strengthening these
concepts and help the researcher academically as well.
Another important aspect of the present research is that it will also help in addressing the
issues that are presently faced by the hotels currently which is ultimately affecting its revenue
and economic growth aspects to the core (Han and Hyun, 2015). In this manner better
recommendations can be provided to the hotels so as to improve their strategies being prepared
by them with the aim to attract large number customers towards it. Hence, the present research
will be able to serve adequate amount of purposes through its objectives.
Aim of the research
The aim of present research is “A study of improving customer satisfaction and retaining
loyal customers within hotel business: A case study on Marriott.”
Objectives of the research
Based on the above aim, following objectives can be formulated:
 To assess the factors which are significant for customer satisfaction at hotel Marriott.
 To identify the problems faced by Marriott in satisfying customers.
 To evaluate the needs of employee satisfaction in regard to deliver better customer
services in Marriott hotel.
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 To give recommendations for improving customers satisfaction at hotel Marriott.
Research questions
Based on the framed objectives, following research questions can be formulated for the
present research:
 What are the factors which are significant for customer satisfaction at hotel Marriott?
 What are the problems faced by Marriott hotel in satisfying customers?
 What are the needs of employee satisfaction in regard to deliver better customer
services in hotel Marriott?
 What are the recommendation that can be given to Marriott for improving customers
satisfaction at hotel?
Potential Significance of the study
It is important for any organization which is involved in hotel industry to understand the
requirements of the customers. Studies have stated that satisfaction of the customer is the
outcome of marketing activities being prepared and presented to the customers by the
organization (Ennew, Binks and Chiplin, 2015). In order to improve profits and market share in
the competitive market, customer satisfaction is considered to be the major concern. However,
some of the organization are not aware of the strategies that can be used by them to serve this
purpose. In that scenario, display of adequate knowledge with respect to the subject matter can
help in delivering the best to them. The present study can come to rescue at that time and serve
the purpose of delivering adequate amount of knowledge regarding customer satisfaction and
retention.
Further, the present research holds adequate amount of importance of employee
satisfaction at the workplace as well. Since, it can be ascertained that a satisfied employee is able
to deliver better services to its customer than the unsatisfied one. Hence, it become important for
the organizations to ensure that adequate amount of attention is given to employees so that the
best service can be delivered by them. The present study will be able to present effective
arguments which can prove the importance of employee satisfaction in better deliverables to the
client (Agnihotri and et.al., 2016).
Another significant aspect that will be covered in the dissertation is various factors that
leads to client’s dissatisfaction. Rather than knowing what is appreciated by the client, it is
important to ascertain what is not appreciated by the client (Martinaityte, Sacramento and Aryee,
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2015). It helps in preparation of better strategies with the motive to attract large number of
customers towards it. The present study will be able to serve this purpose in an effective manner
so that better strategies can ultimately be recommended to the organizations of hotel industry.
Hotel industry is a dynamic sector that require changes in its strategies as per the changing
scenario of the customers. The trends, tastes and preferences being preferred by the customer
requires adequate research based on which actions can be taken by the organization. It also
ensures that the entity will be able to keep its market share high further leading to growth and
stability in the revenues as well. To cope up with this aspect of the results, it is important to
conduct a study that can help in enhancing the present strategies that are being followed by the
organizations belonging to this industry. Moreover, the research is also significant enough in
ascertaining the current trends of the market regarding customer satisfaction that can ultimately
lead to their retention for longer period of time as well. In the end, it can be stated that, it is
important and significant for the researcher to conduct the research on the stated topic.
Limitations of the research
No study can be perfect in every way and hence have to face certain constraint that may or
may not affect the ultimate results of the research. There are various limitations that are attached
to the present study that can be faced by the researcher while conducting it. Some of the common
constraints are mentioned below:
 Time: Duration is the biggest constraining factor since a specific duration is assigned to
conduct the task. In that case, it becomes difficult for the researcher to give adequate time to
each and every task involved in the research. It leads to deviations in the results ultimately
affecting the overall conclusion and recommendation aspects of the subject matter.
 Budget: A specific budget is assigned to the research so that all the aspects of the study are
covered in particular finances being assigned to each task. It can lead to bring discrepancies
in the results due to not conducting certain activities that can be out of the financial budget. Lack of availability of reliable data: Lack of availability of reliable data limits the scope of
the research. It is considered to be the significant obstacle for the research. There can be
certain data in the research which may not be reliable and some may not have been reached
due to restricted time and budget constraint. Fluency in the language: It is difficult to understand the language of the research paper
which may not be in the native or basic English language of the research. It may become
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difficult to analyse them. Hence, in that case, it can act as a barrier in reaching to an effective
and meaningful results.
 Lack of time to study the previous researches: Customer satisfaction is a broad topic and
may require adequate amount of time to explore the consequences of the previous research.
The meaningful data may be miss out due to these available constraints with the researcher.
Dissertation structure
It is important to have a proper structure to the dissertation so that adequate amount of
information and knowledge can be collected by the reader while going through the document.
Hence, the below format of dissertation will be followed by the research in this regard: Chapter 1: Introduction: It is the first and foremost chapter of the dissertation. It helps in
defining the aims and objectives of the research chosen by the research. Moreover, it is also
helpful in ascertaining the rationale and significance of the research. Chapter 2: Literature review: It is another important chapter of the research where research
that has already been conducted by the researcher is analysed. It helps in ensuring that right
type of reliable data is adopted in the present research. Chapter 3: Research methodology: This chapter plays a vital role in the research where
research design, philosophy, data collection methods, etc, are ascertained. The chapter is also
helpful in carrying out the research in effective manner so that appropriate conclusion can be
attained and recommendations can be extended. Chapter 4: Analysis and Evaluation: This chapter helps in analysing the data that has been
collected from the secondary research and ascertaining the results based on it. It also helps in
ensuring that effective results are presented to the readers in the end. Chapter 5: Conclusion and recommendations: It is the last and the most important chapter
of the research which carries the overall crux of the report. Moreover, it concludes the results
of aims and objectives being framed. Furthermore, the chapter will also present the
recommendation that can be extended to the readers of particular industry for effective
implementation of the strategies.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
After introduction, Literature review is considered to be an important chapter of the
research. It helps in analysing the researcher that have already been conducted by the researcher
on similar topics. Analysing the researches help in understanding various aspects of the stated
topic. In the present secondary research aspect, themes will be formulated that can ultimately
help in finding out and understanding the terms that are related to customer satisfaction and
retention of the customers. Hence, the literature review that will be discussed in the chapter will
directly to aligned to the topic. The main purpose of the research is to study improving customer
satisfaction and retaining loyal customers within hotel business. The literature review will focus
upon importance of customer satisfaction and factors affecting the same. In the end, evaluation
of various issues will be made that can be faced by hotel during its functions.
2.2 Importance of customer satisfaction
According to Zhou and et.al. (2014), customer satisfaction is the concept of understanding
that whether the expectations of the customer have been fulfilled through the demand and supply
of particular product or service. It can also be defined as the number of customers or the total
customers whose ratings exceeds the satisfaction goals of the customers or not. Customer
satisfaction is considered to be Key Performance Indicator (KPI) of how the business is doing at
the ground level and whether it is able to serve the expectations of the customers or not.
However, in contrast to this, as per the views of Zikmund and et.al. (2013), customer satisfaction
is considered to be an abstract concept which helps in measuring the degree of fulfilment of
expectation, the customer has received from a particular product or service. In order to gauge the
results on this topic, businesses commonly use customer surveys and feedback forms. It helps in
seeking the expectation that the customer tends to expect from the organization. It is helpful in
preparing strategies for the same accordingly. There are certain areas that commonly touched by
the companies are, quality of the product being offered, appropriate relationship between quality
of the product and price associated to it, atmosphere of the store, in terms of cleanliness and
staying experience, service issues such as, attentiveness, politeness and helpfulness of the staff,
convenience etc.
In the opinion of Talib, Rahman and Qureshi (2012), customer satisfaction tends to play an
important role in the operations of the business. It is a leading indicator of loyalty of the
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customers, identification of unhappy customers, reduction of churn and increase or decrease in
the revenue due to higher or lower customer satisfaction level. Higher level of customer
satisfaction is considered to be a key differentiation aspect based on which two organizations are
differentiated from each other. Higher customer satisfaction is also important in retaining the
customers for longer period of time. However, as per the views of Silverman (2013), the main
aim of high customer satisfaction is that it helps in reducing negative word of mouth regarding
the company. A survey was conducted by 200 senior marketing managers. Out of which, 71% of
the respondents indicated that customer satisfaction metric is a useful technique that can be used
to monitor and manage the business. Further, it also helps in initiating better strategies in the
organization to get higher score in satisfaction metric.
As per the opinion of Izogo and Ogba (2015), customer satisfaction is considered to be a
leading indicator of the intention of customers regarding repurchase. It also ascertains their
loyalty towards the organization. It is considered to be a key to build a long-term relationship
with the customers. The research states that if the customer is able to get positive experience
from the organization then there are 81% chances that he /she will want to experience the
product or services again. However, there are 95% of the customers who end to share their
negative experience with the organization with their family, friends and relating, creating a
negative word of mouth about it. However, as per the views of Kang and Park (2014), once the
entity is able to place trust in the minds and hearts of the customers, then in that case the
customer will be quite sure regarding doing business with it. It is important for the organization
to never ignore the concept of customer satisfaction. It has a great contribution in the success of
the business. It is important for the entity to track this factor and prepare strategies to improve it
so as to make the customers more loyal towards the brand. It helps in making the organization
recognizable within the target group.
In the views of Bowen and Chen McCain (2015), customer satisfaction helps the
organization to stand out from the competition. If the customer is satisfied then in that case he /
she will never move to the competitors to avail services. However, in case of negative
experience, it becomes impossible for the organization to regain the client in the market where
the competition level is already quite high. Positive customers lead to repeated transactions and
also receive a life time valued customer. The organization will be able to increase its brand value
and revenue as well. Hence, it is important for the organization to measure the level of
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satisfaction of the customers in specific intervals so that strategies and services of the
organization can be moulded accordingly. However, in contrast to this, as per the views of Hao
and et.al. (2015), level of customer satisfaction must not be neglected. It must exclusively be
planned by the team while deciding positioning and marketing campaign. Satisfied customer
keenly welcomes the organization with positive comments, compliments and delightful
memories from the association with the entity. Hence, it can be stated that providing better
customer service will be able to serve both the targets of the organization and expectations of the
customers. The more appropriate services are the more the organization will be able to earn
revenues. Hence, it is important to prepare strategies in such a manner that this purpose can be
served appropriately.
2.3 Factors which are significant for customer satisfaction at hotel
In accordance with Söderlund and Colliander (2015), it is not sufficient to attract new
customers but strategies must be prepared so as to retain the existing customers for a longer
period of time. Hence, effective implementation of strategies is required so that customers can be
served in a better manner that can bring loyalty and bring satisfaction to them. There is a direct
relation between customer satisfaction and hotel attributes. Facilities and services are the main
criteria based on which hotel is chosen or preferred by the customer. The main characteristics of
the products and services served in a hotel are, inseparable, intangible, perishable and variable. It
helps in ascertaining the expectations of the output from it. The attributes and features being
extended by the hotel can directly influence the customer that whether they will choose it over
other hotels or not. The chances for the preferences increases many folds if the services offered
by one hotel is different from the others. However, in contrast to this, asper the views of
Stathopoulou and Balabanis (2016), the events of becoming a loyal customer is higher if the
customer is highly satisfied with the services of the hotel. The services are an essential factor that
builds an image of the hotels and leaves a good impression on the minds of the service users.
Enhancement of customer loyalty is considered to be key aspect of enhancing the business.
Research have stated that cost value for money services is the one core reason that leave them
unsatisfied. Offering low quality products and services and charging high for the same increases
their dissatisfaction level because customer satisfaction is considered to be imperative part of any
business.
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According to Kaura, Durga Prasad and Sharma (2015), the main difficulty that is faced by
this sector is in continuously satisfying the customers in every go and also satisfy the
requirements of huge profits as well. Competition is the main reason that puts pressure on the
industry which compels the hotels to keep their prices low and also enhances the service quality.
So as to serve the purpose of low prices and high quality, it becomes important for the
organization to come up with their own unique manner that can help in achieving this aspect.
However, in comparison to this, as per the views of Radojevic, Stanisic and Stanic (2015),
employees play a major role in ensuring the requirements of the customers are met. Therefore,
proper training to them can help in serving this purpose. Moreover, feedback from the clients and
customers can also help in determining the service quality extension by the staff. The
competency of the staff members can be ascertained and based on which further duties can be
divided by the employer. It helps in delivering the best services to the end users. These elements
also assist in defining the quality elements of ideal employees of the organization.
In opinion to Ibrahim and Aliyu (2016), responsiveness of employees while handling the
requests of the customers also plays an important role in deriving the output of service quality.
The evaluation technique for the same can be handling of customer requests. Measurement of
responsiveness of the employee is the key criteria based on which effectiveness of the employees
and services extended by them can be ascertained. Another important aspect is speedy delivery
of the services. It assists in ascertaining that whether the needs and requirements of the
customers have been met on time or not. It shows the commitment of hotels towards them.
Responsiveness towards their willingness to handle the customer requests decides in large way
that whether the customer is satisfied with the services of the hotel or not. However, in
comparison to this, as per the views of Chung and et.al. (2015), it is worth noting that the level of
satisfaction may vary from customers to customers. The research states that some services may
not be appreciated by some customers and may be liked by the others. Subsequently, hotels are
required to customize their services appropriately in a manner that all the customers that arrive to
the hotels are satisfied with the services. Hence, it becomes important to have adaptive
employees and services that can meet the needs of the customers. Hence, customer loyalty and
retention is the aftereffect of the set of services being decided by offering the services in the
customized manner.
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2.4 Identification of the problems faced by hotels in satisfying customers
According to O. Pappas and et.al. (2014), customer satisfaction is related to creation of
value for customers since there are certain expectations that are required to be fulfilled
demonstrating the ability of the hotels. One of the biggest challenge that is faced by the hotel
industry is to provide and sustain on customer satisfaction. The main requirements of the
customer are quality products and services which helps in giving evident examples of how a
particular hotel treats its customers. Positive relationships with the client can help in creating
high commitment from the side of customers and increase its objectives of better fulfilment of
customer satisfaction. Progressively high relationship with the customers can create high
correlation with the guests and create overall satisfaction. However, in comparison to this, as per
the views of Hur, Moon and Jung (2015), hotels have been involved in increasing their
investment so as to improve the quality of service so that achievement of customer satisfaction
and high degree of loyalty, resulting in better relationship with them. By increasing the gauges of
quality, the hotel increases its chances of achieving high satisfaction level.
As per the views of Silverman (2013), services are the intangible attributes which have
direct relation to appearance of the room, cleanliness in the corridor and hotel, service quality
delivered by the hotel staff, etc. Other common elements are related to customer service, caring,
understanding etc. Other tangible facilities of the hotel include, the availability of quality of
various facilities in the room, physical appearance of the room and hotel personnel, quality of
food offered, etc. To satisfy the tangible and intangible requirements of the customers, the
overall cost of the hotel increases to the specific budget being allotted to each service. It
increases the working capital cost of the organization further affecting the profit and revenue
aspect of the organization. Other issue faced by the organization is, gap between perception of
the customer and service delivery. The gap can be big if the marketing concept of the
organization is faded and not up to the mark. The gap between management perception regarding
a particular situation may be wide in comparison to service specifications. Unfeasibility, lack of
standardization of the tasks, absence of suitable goal is the other issues that are faced by the hotel
management in fulfilling the expectation of the customers and retaining them for linger period of
time. However, in comparison to this, as per the views of Kang and Park (2014), over promising
to the customer also affect the service quality. When services of the customer do not satisfy with
their expectation, it leads to create issue in the satisfaction level. It can also create bad effect due
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to wrong expectations. In that case, good communication level among the customers can help in
solving out this issue and having better results from the stakeholders.
In accordance with Kaura, Durga Prasad and Sharma (2015), there are certain dimensions
that are to be considered by the hotels. Willingness to help customers and provide prompt
services ascertains the responsiveness of the employees and other staff of the hotel towards the
issues. The employees must possess required knowledge and skills to acknowledge the services
being performed by them. It also helps in measuring the ability of the employees so that their job
accurately being performed and customer’s questions can be addressed appropriately. The
courtesy and way of communication also plays an important role where customer’s queries can
be satisfying otherwise there are higher probability of leaving them to an unsatisfactory level.
However, in comparison to this, as per the views of Ibrahim and Aliyu (2016), happy customers
are loyal. It is important to move with their trends so that customer’s with poor satisfaction level
may also want to retry the services. Evolving with the changing trends and understanding the
taste and preferences of the customers can help in better delivering of duties. Assessment of the
negative comments also plays an important role in strategy formation where the researcher can
analyse the reason so that correct actions can be taken to serve the improvements. Mastering
communication methods can also plays an important role in resolving the issues to the extend so
that the purpose of the set up can be served. Keeping adequate contact with the customers so that
alerts can be given to them regarding the change in product and services to attract them again
towards the set up. It also helps in making them feel valued. The management must sure that the
services that are extended to them are effective enough that can make them loyal towards the
brands and can retain them for longer period of time.
2.5 Evaluation of the problems faced by hotels in satisfying customers
According to Izogo and Ogba (2015), it becomes difficult for the hotels to change with the
evolving trend. It increases their investment and add up to the overall cost of the business which
ultimately leads to ineffective delivery of services. The hotels also face issues in coping up with
the revenues and loses their competitiveness and market share in the industry. Capturing the
market in this case becomes quite difficult. Further, customers tend to opt for the hotels that are
already been used by them or some of the big brands on which they trust. It reduces the chances
for small and medium hotel to grow ultimately leading them to close down. In that case, it
becomes important for the hotels to prepare the strategies that are unique yet impressive for
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customers that attract them towards the hotel. However, in contrast to this, as per the views of
Han and Hyun, (2015) building an effective customer relationship plays an important role in
making them loyal towards the brand. Moreover, it also helps in maintaining long term
relationship with them which in turn results in increased profits and elevated market share of the
organization. On the other hand, unsatisfied customers are served as a danger for them where a
negative word of mouth from them can hamper the corporate brand image which the hotel may
be preserving since a long period. There are only 4% of people tends to explain the reason of
their dissatisfaction from the hotel. Each client does not officially complain regarding the same
to the hotel authorities. It reduces the probability of the hotel to improve in one or the other
functions. In such cases, exploring the requirements of customers with negative image becomes a
tedious task. These types of customers do not return back to the hotel for availing services for the
next time. Neglecting this aspect can reduce market share of the organization which further
results in decreased revenues.
As per the views of Hao and et.al., (2015) resolving the issues of customers or guests
plays an important role in hotel industry. An individual will return back for booking in the same
hotel only if the satisfaction level is quite higher for them. Otherwise, in hotel industry,
customers tend to opt for new hotels for better experience unless and until the previous hotel
have been able to deliver exhilarating experience to them. This aspect also defined the degree of
loyalty of each customer towards the particular organization. Hence, in that case, making a
customer loyal towards the brand become quite difficult for the hotel authorities due to brand
switchers and people demanding something in new from the hotel at every visit. In contrast to
this, as per the views of Hur, Moon and Jung, (2015) another issue that can be faced by the hotel
authorities is accessibility to each and every communication language. It becomes difficult to
understand the requirements of the clients and fulfil it accordingly. Hence, it becomes important
for the management to arrange for suitable yet convenient communication methods that can help
in serving solution to the stated issue.
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
Research methodology is one of the most important chapter that is certainly covered while
preparing any dissertation. It helps in ascertaining various aspects of the research, inclusive of,
research methods, philosophy, design, approach, data collection and analysis methods, etc. In
other words, it can be stated that, research methodology is the combination of ascertaining the
purpose of collection of data resulting in appropriate decision making. Hence, it becomes
important for the scholar to opt for appropriate methods that can positively influence the whole
research. Hence proper selection of techniques and other methods makes the results and overall
study fruitful to the users. The main aim of present research is A study of improving customer
satisfaction and retaining loyal customers within hotel business. The present chapter will help in
discussing and verifying the approach of research that will be used attain effective results.
3.2 Research philosophy
Research philosophy is related to enhancement of idea and knowledge with respect to the
subject matter of the research. It becomes difficult to reach to the ultimate results in an effective
manner. There are basically two approaches of research methodology. These are, interpretivism
and positivism. As per positivism approach, researcher tends to form hypothesis so as to conduct
the test on research. It helps in providing an opportunity for explanation that can be acceptable to
the world. However, interpretivism philosophy is related to providing suitable justification to the
problem for the which the study has been conducted (Ibrahim and Aliyu, 2016). It also helps in
making appropriate analysis to the problem before reaching to any judgement in the end. After
analysing both type of research philosophies, interpretivism type of research philosophy will be
used by the researcher to conduct the present research. The main advantage of opting for
interpretivism approach is that it helps in conducting the study to a great depth and contains high
level of validity since, the analysed data in the form of interpretivism tends to have adequate
amount of trustworthiness and honesty.
3.3 Research approach
Research approach is considered to be another important aspect of the research
methodology which helps in deciding the appropriate approach of research that can ultimately
lead to an effective solution. A particular set of procedure is followed based upon the research
approach being chosen for the research so as to reach to impressive outcome. It helps in not
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distracting the scholar from the correct path based upon the aims and objective being designed
by the researcher for the study. All the important aspects are considered so that a feasible
outcome can be achieved. Basically, there are two types of research approaches. These are,
inductive and deductive research approaches. Inductive approach helps in forming an altogether
new theory which may not be existing in any of the research currently. However, deductive
approach helps in validating the existing theory and carry out a research to check the same. In
order words, it can be stated that, research approach have direct relation to collecting and
analysing the information and reach to an effective conclusive statement.
In the present research, deductive approach has been used by the researcher which helps in
addressing and stating their theories that has already been identified by certain researchers.
Hence, the approach will flow in the direction of general to specific. Further, it can be stated that,
it will help in fulfilling the requirements of the aim that has already been stated in the research by
the scholar.
3.4 Research technique
Research technique helps in collecting, analysing, summarizing and stating the information
in the manner that available information can be used appropriately by the scholars. It helps in
making the overall investigation effective and summarize the information in such a manner that
reader can generate appropriate information out of it. Hence, it has been mentioned by various
researcher that it is important to select appropriate research technique that can help in attaining
actual objectives of the overall research. A sense of statement is developed by making analysis
through an unstructured type of data collected. There are two types of research techniques. These
are, qualitative and quantitative research. Qualitative data helps in conducting in depth study
regarding the subject matter. Hence, it is quite descriptive in nature (N. Torres and Kline, 2013).
However, in comparison to this, quantitative data adopts certain statistical tool so that the scholar
can reach to effective set of results. In the present research, aiming to make adequate
understanding regarding customer satisfaction in tourism industry, qualitative method is the best
adopted research technique that can help in deriving effective set of results. With the assistance
gained through qualitative type of research investigator will be able to reach to perfect and
explainable outcomes addressing the same in a right solution format. Hence, it is the best suited
method for the present research.
14

3.5 Research design
Research design is considered to be the most important technique of research
methodology. It helps in providing the blueprint for the whole investigation. Various components
of research aim and objectives are taken into consideration before reaching to a perfect design
that can be followed for the study. Hence, it become crucial for the researcher to opt for right
kind of research design otherwise it can negatively influence the results. There are various types
of research designs, such as, explanatory, exploratory, descriptive etc (Li, Ye and Law, 2013).
The main aim of the research is to study improving customer satisfaction and retaining loyal
customers within hotel business. Hence, in this case, exploratory research design will be best
suited. It will help in conducting in depth study that can help in studying the topic more clearly.
It will also assist in understanding various aspects of aim and objectives, establish priorities and
develop operational conduct for the tangible part of the research. In the present investigation, the
results can be applied on by hotels for its better functioning. The key benefit of using research
design is that it helps in developing and enhancing the knowledge aspect of researcher regarding
the subject matter. The potential causes and direct impact of one or the other factor can be
directly conveyed to the decision makers. It also helps in understanding key issues that can be
involved in the research and verify the possibility and likelihood of the causes as well. Hence, it
is the best suited research design for the present research (Amin and et.al., 2013).
3.6 Data collection
The method of data collection involves gathering and acquiring of data and information
through primary or secondary sources. Primary type of data collection is when first hand data is
collected by the researcher. However, in case of secondary type of data collection method, the
research that has already been conducted by the researchers are critically assessed. There are
various sources through which secondary data can be collected by the researcher. These are,
books, journals, websites, blogs and online sources. It helps in interpreting the relevant
information present in journals appropriately. It plays a vital role in reaching to an effective
result. In the present dissertation of customer satisfaction and retention, the best method of data
collection that has been used is secondary sources (Assaf and Magnini, 2012). It has helped in
gathering historical data and provide information to the reader with respect to the same.
However, the main issue that has been faced by the researcher is that some of the journals and
websites are not open for the access of reader. It has restricted the gathered information.
15

Moreover, a minute impact has also been noticed on overall result aspect of the study as well.
However, all the secondary sources that have used by the researcher in the present dissertation
are reliable enough so that it can contribute positively to the research. It will also help in
developing sustainable hypothesis that can further be utilised by the other researchers as well.
3.7 Data analysis
The present research has used qualitative approach so as to conduct effective data analysis
of the information that has been gathered through secondary sources. The analysis will be
performed by formulating themes based upon the objectives being framed for the research.
Hence, thematic analysis approach is qualitative type of data analysis will be used in the present
investigation. In order to prepare an effective dissertation, data analysis aspect is one of the most
important part which helps in reaching to an effective outcome for the research. Hence, it is the
process of interpreting the gathered data with the aim to achieve effective yet relevant output.
Hence, in this case, qualitative approach of data analysis will be used so that results can be
presented in the most précised way. It will help in presenting, explaining, understanding and
interpreting people, situation and subject matter based upon the research topic, which is customer
satisfaction and retention in this case (Liat, Mansori and Huei, 2014). Another advantage of
using qualitative approach is that, it helps in presenting data in a descriptive way which captures
the snapshot of overall secondary data that has been collected to conduct the study.
3.8 Ethical consideration
Considering all the ethics is an important aspect that is required to be well thought out by
the researcher while determining the research methodology. It helps in providing effectiveness to
the entire study and result in attaining perfect outcomes. Hence, it is important to measure all the
ethical aspects. One of the most important consideration to be made is understanding accuracy of
data. Whatever information is added to the research is accurate enough which can promote in
gathering effective results. It is also the snapshot of authenticity for the investigation. It helps in
ensuring that if all the research aim and objectives are achieved or not that can ultimately help
reader in gathering accurate information through it. Moreover, it is required to be ensured by the
researcher that all the data, facts and figures, that have been included by the researcher are valid
enough in order to attain right solution through it. However, various researchers have stated that
secondary type of data collection and analysis through it helps in relieving the researcher from
ethical burden. Another ethical consideration that is to be drawn by the researcher is that if
16

restricted access has been stated on websites and various URLs of journals and articles, in that
case proper written permission through mail has been taker from the researcher to access the
same. It has helps in keeping adequate amount of transparency in the process of data collection
and thereby its analysis as well (Rao and Sahu, 2013).
3.9 Validity and reliability
Validity and reliability is one of the major concerns of the researchers. It helps in ensuring
that all the data that has been collected by the researcher and presented to the readers to valid and
reliable enough so that its outcomes can also be used in the further researches as well. The data
presented must be factually correct and logically stable. Hence, it is important for the researcher
to opt for valid data.
Validity and reliability are the two important phenomenon that goes hand in hand. A data set
which is not valid can not be reliable as well. Hence, accurate representation requires validity
and reliability both aspects to be appropriately covered while conducting a research. It is
appropriate presentation of concepts and attribute being used based upon stated aim and
objectives. Hence, in present case, where the aim of the research is to study improving customer
satisfaction and retaining loyal customers within hotel business (Cheng, 2013). Hence, in that
case, data that has been used regarding visitor trends and desires is valid and effective enough
satisfying the concept of validity and reliability in an appropriate manner. Findings are
repetitively checked so that no important aspect of stated topic is missed that can ultimately
deviate the results. In order to serve and satisfy the concept of internal validity, all the
instruments and procedures used in the research are effectively checked and all the loopholes are
appropriately entertained.
17

CHAPTER 4: ANALYSIS AND EVALUATION
4.1 Introduction
After research methodology, the most important chapter for dissertation is analysis and
evaluation. It helps in analysing the facts and figures that have been presented in the research.
The chapter plays an important role in reaching to an effective set of solution. Various discussion
points will be assessed based on which certain themes will be created aligned to the aim and
objectives of the research. It will also help in ascertaining that whether all the objectives have
been covered and concluded through the secondary research or not. Hence, the chapter plays a
vital role in addressing the issues being focussed upon in introduction chapter of the research as
well.
4.2 Thematic analysis
Theme 1: Quality is the main factor which is significant for customer satisfaction at level
Quality of services plays an important role in delivering the best to the ultimate
customers. In today’s world, customers are ready to pay for the resources in lieu of quality
services. It helps in ensuring that these customers will like the services that have been extended
to them and duly visit the hotel again as well. The consumers tend to demand high quality
products ad services in comparison to the earlier times. The way product has been offered to the
ultimate consumer holds adequate importance. Continuous improvement in the service quality
aspects of the hotel ensures that the hotel will be able to survive in long and crucial time as well.
Hence, a basic feature that must be possessed by every hotel is to focus upon the quality of
products and services that is ultimately delivered to the consumers (Jani and Han, 2014). The
literature review also suggested that continuous improvement in the quality aspect of the service
provider helps in fulfilling the expectations of the customers. It also leads to prepare a certain
perception regarding the hotel that ultimately leads to better satisfaction level. High satisfaction
from the side of customers ensures that positive impact will be entertained by the hotel in the
form of high market share, increased revenue and high retention of customers for longer period
of time as well.
18

Figure 1Assessment of satisfaction
(Source: A Practical Guide to Improving Customer Satisfaction. 2018)
There are various customers who visit to a hotel for a pleasant experience that bound
them to avail the services of service providers again. Researchers have also stated that the
experience through the hotel to the consumers is at the high intensity where, they may not prefer
any other brand. It is easy maintain quality of certain quality is easy for the management but to
provide a life thrilling experience to them through the set of services can lead to better generation
of the results where the customers can be retained for the longest period of time (Shafiq and
et.al., 2013). Hence, in that case, the hotel must be able to find new and innovative way that can
help in constantly providing quality services and life thrilling experiences to the customers for
better delivery of services.
Theme 2: Providing high quality services increases the overall cost of the hotel
The positive aspect of providing quality services to the customer is that it helps in
increasing their satisfaction and retention level based on which the hotel is able to generate
higher revenues and profits. However, there is negative aspect of providing quality services as
well which can ultimately lead the company towards losses as well. Various researchers have
stated that if the management is involved in providing extra ordinary services to its customers, it
19

is not able to reach to its break even point. Due to existence of high competition in the market,
hotels are not able to increase their prices aligned to the services provided to them. Hence, they
are not able to cope up with the cost borne by them due to increased quality of services.
Moreover, it then results in increased cost for the company (Öğüt and Onur Taş, 2012). The
organization is also not able to provide quality services at decreased and competitive prices.
However, in contrast to this, literature review has suggested that proper management of the cost
can help in dealing with this issue where the management can draw out a budget so that the
revenue is always higher than the overall cost incurred in providing services of the hotel to the
ultimate customers. Moreover, increased quality services can also be intangible as well rather
than opting for tangible services that leads to add up to the overall costing. Hence, in that case,
budgetary requirements are required to be fulfilled and the employees must be trained enough for
delivering the same so that budgeted revenues can be attained.
As per the other researcher, maintaining quality of products and services is a costly
exercise that may not be achieved by every hotel due to duly increase in cost of services.
Offering services at high prices makes the company a bit less competitive in the market as the
price sensitive section of the company may deny from availing the services through it. Hence, in
that case, it is important for the hotel to opt for the innovative and quality services without
compromising with the overall cost of the services so that adequate amount of revenue can be
generated from the same (Weng, Ha, and Wang, 2012).
Theme 3: Providing training to employees is the important aspect to be considered by
management of the hotel
Apart from assessing the potential customers and their taste and preferences, it is
important for the management to take care of employees as well. Since, they are the people who
are the tangible representation of services that are delivered intangibly to the customer. They
tend to come in direct contact with the customer and better delivery of services from their side
can help in increasing the satisfaction level of customers to a great extent. In order to ascertain
that the services rendered by them are standardized enough and give positive reflection of the
hotel, in that case, it becomes important to train them in such a manner so that the best can be
delivered to the ultimate customers. The researchers have stated that staff training plays an
important role in the hospitality industry as it helps in strengthening the skills of the employees
which they can they can only improve through learning. A development programs helps in
20

bringing them at a high level so that a similar kind of skills and knowledge are possessed by
them (Mohajerani and Miremadi, 2012). The literature review have been able to support the
statement where, it has been stated that providing training and development to the employees can
help in improving overall functioning of the hotel. Moreover, it also plays a crucial role in
delivering the best services to customers, which is the main motive of hospitality industry. It is
the prime opportunity that is given to the employees where they can brush up their knowledge
base and make the most use of the available opportunity.
Another important aspect that is addressed in training and development of employees is
disclosing their weakness and improving the same. It cannot be adequately improved if
appropriate steps are not taken by the management to deal with it. Providing necessary training
helps in bringing overall improvement to the employees that can be used whenever is required by
the staff. To serve this requirement, direct supervision, lectures, on the job and off the job
training can come handy which can be used by the management of the hotel (Mohammed and
Rashid, 2012). They are then able to perform better in their jobs Moreover, involving the
employees in constant development program can help in bringing consistency in their services
that is ultimately provided to the customer of hotels.
Theme 4: Politeness and helpfulness are the core skills that must be possessed by the
employees of hotel
One of the important role that needs to be played by the hotel management is to recruit a
staff that is effective enough and is able to handle different types of customers that arrives in the
hotel. The management has to opt for various methods based on which recruitment can be
initiated. Multiple channel of selection is one of the most effective and convenient way to handle
and recruit effective and competitive staff. Another important aspect that needs to adopted by the
management is through training and development process where knowledge and skills of the
individual can be brushed up (Gagić, Tešanović and Jovičić, 2013). Moreover, focussing on
delivering the best and quality services to the ultimate customers can help in better retention and
satisfaction of the customers as well. In addition to this, employees are the people who holds the
responsibilities and duties based on whose performance success or failure of the product or
services is determined. They are the people direct responsible for achievement of business goals.
Hospitality industry is all about the services that are rendered by them. The set of
employees must be competent enough to effectively handle the customers. Some of the common
21

skills possessed by the employees of hospitality industry who have direct dealing with the client
are, commitment to the staff, problem solving skills, impromptu responses, flexibility in the
services as per the taste and preferences of the customers. It helps in moulding the services as per
the requirements. The literature review has been able to suggest that the main skill that needs to
possessed by politeness and helpfulness (Madera, Dawson and Neal, 2013). These skills not only
attract each and every customer towards the hotel but it helps in leaving long lasting effect over
them which make them avail the services in the near future as well. Hence, the direct impact of
the same have been noticed on high retention and satisfaction of the customers for longer period
of time.
Another important role is played by effective communication possessed by the staff
members. It helps in better delivery of the services to the ultimate customers. Hence, in that case,
training and development is required to be initiated by the management to develop these
communication between the staff which has ultimate impact on retention and satisfaction ratio of
the customers as well. Literature review have been able to suggest that training and development
may add up to the overall cost of the business but the same will help in generating high rate of
revenue for the hotel. Hence, overall, it can be concluded that politeness and helpfulness of the
staff can help in better customer satisfaction and retention.
Theme 5: Employees satisfaction is an important aspect to deliver better services to the
ultimate customers
Customer satisfaction plays an important role for any organization as this is the segment
who is responsible to generate high revenue and also enhance market share. It is a marketing
team generally considered as metric which helps in identifying that whether the company is able
to fulfil the requirements and expectations of the customers or not (Chen and Cheng, 2012).
Moreover, it ascertains that whether the management will be able to manage and improve the
business operations or not. Researchers have been able to state, where survey was conducted on
200 senior marketing managers, which ascertained that customer satisfaction is an effective
metric that is quite a useful assessment that can help in managing and monitoring business
operations. It is the leading indicator is intention of the customers and their repurchase and
loyalty aspect towards the brands. It is also considered as a measure of product and service
differentiation in comparison to the other similar hotels available in the market (Keisidou and
et.al., 2013). The literature review has suggested that if the customers are satisfied with the
22

services being extended to them by the hotel, in that case, the chances for availing the services
enhances and there is better probability that they will be readily available to avail the services
from the hotel.
23

CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1 Conclusions
The main aim of the research is based on a study of improving customer satisfaction and
retaining loyal customers within hotel business. Customers have been considered as an important
asset for the company who are considered as a metric of level of satisfaction they have received
while availing goods and services from the organisation. The contentment and satisfaction of the
employees have direct reflection of what has ultimately being received by the customers in the
end. Hence, it becomes important for the management to fulfil the requirements and desires of
employees as well apart from what is ultimately extended to the customers (B. DiPietro, Cao and
Partlow, 2013).
In order to conduct the study in the most effective manner, secondary type of data has been
collected by the researcher through books, journals and other online sources. It has helped in
understanding the core concept of customer satisfaction and how it has been critically presented
by different researchers in their research. Hence, the secondary type of investigation has proved
to be quite effective for the aim and objectives being framed by the scholars.
The first objective of the research stating to assess various factors which are significant for
customer satisfaction in the hotel. The most important factor that has been ascertained through
the secondary research conducted are, offering value for money services to the customers,
working upon the overall quality of the products being offered to the customers are the two main
factors based on which customer satisfaction can be enhanced in comparison to the present state.
The second objective of the research is related to identification of the problems which are
faced by the hotels in satisfying their customers (Sainaghi, Phillips and Corti, 2013). The main
issue being faced by the hotels is not related to satisfaction of the customers, but retaining and
sustaining them for longer period of time. Moreover, it also affects the overall investment of the
company as it is difficult to come up with the quality services w at very low and competitive
prices. Hence, if the overall cost is increased, it becomes difficult to attract customers towards it.
It becomes the main issue which is faced by hotels in the hospitality industry.
The third objective of the research is to evaluate the needs of employee satisfaction in
regard to deliver better customer services. It becomes difficult for the hotels to change with the
evolving trend. However, the same can be managed by providing them training and development
sessions that can ultimately help in building their knowledge aspect so that the best can be
24

delivered to the customers. Moreover, it also helps in maintaining long term relationship with
them which in turn results in increased profits and elevated market share of the organization.
Hence, in that case, it becomes important that the staff possess all the skills such as, helpfulness,
politeness and impromptu responses which makes their services effective enough.
5.2 Recommendations
The last objective of the research is to recommend on improving customer satisfaction at the
hotel. To fulfil the requirements of this objectives, following recommendations can be extended
to the hotels, adoption of which can increase the certainty of growth and elevation of success as
well. These recommendations are as follows:
 Benchmarking qualities: The one of the main and important aspect of any hotel is to provide
quality products and services to it customer. It helps in attracting customer towards the hotel
as quality products is something which attracts them towards availing the services. In this
case, hotel can benchmark services so that the best is ultimately transferred to the customers.
Constantly analysing them and checking from top level management can help in
benchmarking the deliverables.
 Managing expectations of the guests: A set of expectation is managed by the customer
which helps in ascertaining that what is ultimately expected out of the hotel. Hence, in that
case, understanding the requirements of the customer and then setting the products and
services according to it help in better delivery of services which enhances the ultimate
customer satisfaction.
 Be true to the brand: It is important that what is promised by the hotel is ultimately
delivered to the customers. Hence, helps in better fulfilment of the expectations (Taylan
Dortyol, Varinli and Kitapci, 2014). Any discrepancy in the services and differentiate
between what was expected and what is ultimately offered to the customers, increases or
decreases the gap of customer satisfaction. The final impact of the same has been gathered on
the level of loyalty and their retention ratio as well. Gathering and analysing the feedback of guests: Customer are the best people to make the
assessment of the services being offered by the hotel. In that case, feedback form can come t
rescue where the hotel can prepare a set format of feedback which mandatorily must be filled
by the customers. Making its assessment in various aspects, such as, overall cleanliness of
the hotel, ambience, staff response etc, can help in making better decisions (Ali Hussain and
25

Ragavan, 2014). Feedback can consist of open ended question or closed ended questions.
However, open ended questions are able to give a detailed and rigorous analysis of the
services. Based upon the discrepancies, corrective actions can be initiated by the top-level
management of the hotel. Know the customer: It is important to understand the requirements of the customer before
opting for any product or service deliveries. Hence, in that case, taking feedback from the
customers and setting up the deliveries accordingly helps in enhancing the overall
satisfaction level of the customers. Ultimately, understanding the customers is one of the
important aspect that needs to be managed by the top level management of the hotel. It not
only enhances customer satisfaction but an important role is played in retaining them for a
longer period of time as well. Training and development: Another important aspect that is addressed in training and
development of employees is disclosing their weakness and improving the same (Boon-Itt
and Rompho, 2012) . It cannot be adequately improved if appropriate steps are not taken by
the management to deal with it. Providing necessary training helps in bringing overall
improvement to the employees that can be used whenever is required by the staff.
26

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