Understanding and Engaging in the Customer Experience
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This report discusses the importance of customer experience and value in the hospitality industry, using Holiday Inn as a case study. It explores the systems that support quality processes and evaluates their effectiveness in meeting customer requirements.
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BMSW5103 UNDERSTANDING AND ENGAGING IN THE CUSTOMER EXPERIENCE
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Executive Summary For very firm it is essential to provide quality services and products to their customers as that will help them in enhancing their experiences which directly leads to increase in market value and profit. Holiday Inn is operating in the hospitality industry and for them it is essential to develop as well as maintain effective customer’s relations as that will help in sustaining at marketplace for the long time. For this they need to analysis factors which impact on their business operations and functions as well as they also required to determine system through whichtheycanenhancetheircustomer’sexperiencesbymeetingtheirexpectationor requirement. This is so because that will help in developing effective decision and plan which enhance quality of services and customer experiences.
Table of Contents Executive Summary.........................................................................................................................2 INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Identify the systems that supports your organizations quality processes and provide a critical understanding of the extent to which you think those systems are effective in meeting customer requirements.................................................................................................................1 Identify the systems that supports your organizations quality processes and provide a critical understanding of the extent to which you think those systems are effective in meeting customer requirements.................................................................................................................7 CONCLUSION..............................................................................................................................11 REFERENCES..............................................................................................................................13
INTRODUCTION Customer experience can be describe as the journey of customers with business and its services. It is crucial that customer has positive and effective experience with organisation as this will support in developing strong relationship (Adhikari and Bhattacharya, 2016). Customers are consider to be king for business and they will lead to have direct impact on sales and profits of organisation. It is an opportunity for organisation to enhance and develop experience of customers as this will lead to accomplishment of set targets. There are different ways and techniques that can be use by organisation for improving and increasing customer experience. It is crucial that organisation is providing high quality services to its customers as well as meeting with the need and wants. This will support in meeting with the desired expectation of customer form organisation. There are different factors that will lead to have major impact on experience andexpectationofcustomers.Inordertoimprovetheoverallexperienceofcustomer organisation should have clear understanding and information about customers experience. This report is based on Holiday Inn organisation. This is one of the large brand hotel which is providing its services and products in different market area. Holiday Inn organisation was develop by Kemmons Wilson in 1952. Holiday Inn is a well known organisation which is established in different parts of theworld and its headquarter is located Denham, United Kingdom. Holiday Inn organisation is a subsidiary of Inter Continental Hotels Groups. This report will includes different factors that will support in influencing of organisation to maximise customer values. Apart from this different system is also analysed and evaluated that will support organisation to conduct quality processes and different system are also analysed that is effective for organisation in order to meet with customers requirements. MAIN BODY Identify the systems that supports your organizations quality processes and provide a critical understanding of the extent to which you think those systems are effective in meeting customer requirements. It is very important for organisation to focus on maximising customer values and experience (Ali, Hussain and Ragavan, 2014). There are different factors that will lead to have direct in of organisation capability and potential to enhance customer experience as well as attract more customers towards business. There are various benefits and advantages that could be 1
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achieve byrespective organisation by increase the value of customer. Holiday Inn organisation is dealing in hospitality sector which is completely based on customer experience as well as their values to attain desired objectives. Customer experience can be define as the journey of customer within the organisation along with the products and services offered by company to customers. It is crucial for organisation to determine its capability and potential to provide effective customer values and experience (Bagdare and Jain, 2013). This is dependent on the skill of employees with business as well as decision taking in order to meet with customers experience. Holiday In organisation should impress its customer by conducting business activities in effective and efficient manner. Business activates and process will lead to influence over customer journey with the organisation. It is significant for customers to feel valuable in organisation which will affect their overall experience with company in its services. Higher the customer experience with Holiday Inn will have more positive impact on business and its growth. Holiday Inn organisation should develop different business strategy that will lead to have positive impact over growth and development of organisation. By enhancing customer experience and value, respective company will be able to create and build strong relationship with them as well as attain desired goals and objectives.Customer value maximization can be describe as the method that can be use by organisation in order to entice customer so that frequency and amount of customer transaction increase in company (Bilgihan, Kandampully and Zhang, 2016). It is consider to be crucial for organisation as this is supportive in improving the length of time or duration in which customer will stay with organisation. There are different factors and element which will have impact in performance of company in order to enhance customer value. This is consider to be essential for influencing the level of customer experience with the Holiday Inn organisation as well as increase capability of organisation to meet with the expectation of customers. It is crucial that respective company have compelte information and understanding about different ways and techniques which will support inincreasing customer values as well as help Holiday Inn company to meet with the expectation of customers. Customer values play very significant role in enhancing relationship of customers with business. Holiday Inn company is providing its products and services to large customer base and it is crucial for organisation to consider the need and requirement of customers in order to enhance the overall experience with customer. Customer value frameworkneeds to be consider by respective company as it is very useful in 2
enhance the journey of customers with in Holiday Inn Hotel and increasing the level of customer experience in order to improve loyal customers. Customer value framework This is an effective tool that will guideline organisation in order to provide valuable products and services to customers. customer value proposition is significant in promising for delivering potential value that should be deliver by respective organisation in order to meet with customer requirements and needs (Blázquez, 2014). Proposition values of customers will support in stimulating customer engagement with in organisation and lead to create strong bond between company and its customers. value proposition is significant in providing extra value to customer and this can be consider as unique selling proposition of Holiday Inn company. This factor will lead to have major impact on accomplishment of desired goals and objective of company. through this Holiday Inn company will be able to provide better and effective services to customers and increase the duration of time customer visit organisation. It has been determine that there are different element which is important for organisation to consider while enhancing the proposition value to customs as well as offering extra value to them in order to increase the level of expectation. Different elements that is useful in providing value to customers are mention below-Functional value –This type of value refer as all those products and services that is offered by organisation. It is crucial that respective company is offering different types of products and services to customer which is according to convenience of customers. This will helps in adding more value to customer experience. Holiday Inn services should be able to provide solution to the issues and problems of customer and it should be more comprehensive as compare the competitors products and services.Emotional value –Holiday Inn organisation will be able to increase the value to customer experience when this company is focusing on providing pleasant or attractive services to customers (De and et. al., 2015). It has been analysed that customer will be more attractive towards all those services which is able to traditional, nostalgic reason or advice by some other people. This will lead to creation of strong and emotional bound with the company and increase the level of customer values.Economic value –This is one of the crucial value that is considered by each and every customers. It is essential for organisation to provide products and services which is 3
appropriate to the value of customer money.Holiday Inn organisation services should offer the financial advantage to its potential customers as this will support in enhancing the overall experience and value of customers. Consumer will tend to be more happy when that feel that purchased products and services of organisation is according to the worth of their money and time. Respective organisation needs to consider economic value while providing its services and products to customer for maximizing their values.Symbolic value –Thistype of values can be describe as the social responsibility and other drivers of hotel brand (Brown, 2018). It is important forHoliday Inn organisation to consider symbolic values of customer as this is the main reason customer will feel more valuable in company. there are different types of symbolic values that is offered by respective company which will lead to attract customers towards organisation as well as its services. status of Holiday Inn company, trendy design and friendly environment can be consider as the main reason for increase the value of customers.End value –This types of values are consider as the sum of all values that is offered by company to its customer. In thisHoliday Inn organisation will try to identify and analyse what is the image of products and service convey to customer. this will support company to take better decision and enhance its services so that organisation can attain its goals and objectives. customers need and wants are consider to be important for organisation as this will help in improving the level of customer experience with customer as well as providing high level of customer satisfaction. There are several factors of Holiday Inn company which will lead to have significant impact on enhancing customer experience with organisation as well as maximising customer values. It is important for organisation to take decision as per the need and wants of customers. it has been determined that Holiday Inn hotels needs to create strategies which will support in adding more values to customer experience within the company (He andet. al., 2017). In order to create better and effective strategies Holiday Inn company shouldidentify and analyse the needs and wants of customers in order to attain set targets. Different factors which will have impact on Holiday Inn capability and potential in order to maximize customer values are mention below in detail. 4
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Employees– Employees are very important for organisation and they play crucial role in increasing customer expectations. It is essential that Holiday Inn hotel employees are well trained and skilled in order to understand and full fill the needs of customers. Employees of respective company is responsible for providing services to customer and this will lead to have major impact on experience of customers. Holiday Inn organisation customer should have complete knowledge and understanding about how to perform business task as well as take good care of customers. Employees factors of respective company will lead to have significant impact on capability of business in order to meet with the expectation of customer as well as enhance their overall experiences. Consumer behaviour–It is essential that respective organisation have capability to identify and analyse the behaviour of consumer. This will help in adding more value to the experience of customers with in Holiday Innorganisation (Homburg, Jozić and Kuehnl, 2017). Customer behaviour is a significant factor that will influence the capability of organisation in order to identify and analyse expectation of customer with business and its services. By identifying and understanding customers as well as knowing what different ways in order to increase the customer behaviour in order to add more value in the experience of customer with organisation. Innovative techniques– There are different types of tool and technology that can be use by organisation in order to improve customer values. Holiday Inn is one of the leading hotel chain that is operating its business activities in different market area. it is crucial for this company to use new and innovative technology in order to perform business activities as well as providing its services to customers. This will lead to have significant and positive impact on increase value to customers. advance technology used by Holiday Inn company will be useful in providing more comfort to customers as well as adding value in the services of Holiday Inn. Innovative technology will be useful for respective company in order to perform organisational activities in effective and efficient manner as well as meeting with the expectation of customer from Holiday Inn hotels. Business process– This can be describe as the flow of organisational task and activities. Business process of Holiday Inn company is important factor that needs to be consider while providing its services to customer in order to add more values. Business process of respective hotel is very well managed as well as flow in effective or efficient manner (Jain, Aagja and Bagdare, 2017). This company is focusing on considering creative business process will lead to 5
enhancetheperformanceofcompanyandsuccessfullyconductdaytodayactivitiesof organisation. When organisation is able to successfully conduct all activities of organisation with in settime frame then it will be able to meet with the expectationof customer and effectively full fill their requirement form organisation. CRM system– Customer relationship management system refer as the tool that is used by organisation in order to maintain and keep strong relationship with potential customers. This is very useful and effective system as it will keep required data and information about customer. Through this system Holiday Inn organisation will be able to correctly communicate with its customer as well as able to have meaningful conversation (Kietzmann and Canhoto, 2013). Customer relationship management system that is used by respective company is an important factor that will influence the capability and potential of organisation in order to add more values to customers experience. This system is completely focused towards the requirements and need of customers which will help in determining customer perceive values as well as full filling it by providing services which as exact to the requirement of customer. Quality of service– This is one of the essential element that needs to be consider by organisation in order to provide products and services to customers. It is importantfor Holiday Inn company to provide high quality services to customer for adding more value to customer journey with in organisation. Quality of services can be provided by respective company when it is reliable, responsive as well as quick to customer demand. Employees of Holiday Inn organisation should have complete information about delivering of services to customer correctly and accurately. It is required the services provider is very responsible towards their job role and support customer in resolving their issues. Quick and fast services provided by company will definitelyleadtohavepositiveimpactoncustomeranditsexperiencewithrespective organisation. Ethical consideration– Holiday Inn organisation needs to consider ethical consideration will conducting business activities as wells providing services to customers. This is very important for satisfying customers need and expectation with organisation. Ethical consideration refer as thewayinwhichcompanyisperformanceactivitiesbyconsideringmoralandsocial responsibility. This is very important in developing and enhancing brand image of organisation as well as increasing the level of customer experience with organisation. Holiday Inn company is following all guidance and regulation that is provided by government for protecting customer 6
privacy and security. Ethical consideration is very crucial in protecting and security visit of customer with in organisation and increase loyalty of customers with Holiday Inn company. Digital marketing– Digital marketing can be describe as different marketing activities that is conduct by organisation through digital platform. This is considered to be useful and effective tool which will support organisation to enhance its marketing and promotional activites. Thorugh this method potential customers of Holiday Inn company will be able to evaluate different offers and services of company from anywhere or any time. digital marketing activities are very useful in increasing the knowledge and information about company to customer in creative and attractive manner. This will also provide support and ease to customer for booking in hotels and effectively use different types of services that is provided by company in order to meet with the expectation of customers. Identify the systems that supports your organizations quality processes and provide a critical understanding of the extent to which you think those systems are effective in meeting customer requirements. It is essential for respective company to identify and analyses different types of quality process system that can be use by organization in order to provide effective business process. Quality process system is consider as useful tool as this will support organization toflow business process in correct and accurate manner. Quality process system refer as organization ishaving culture of quality in its business. This will lead to involve people of organization which will support in continuous improvement and growth. It is very important for Holiday Inn organization to continuously improve its services and products as this will assist in gaining competitive advantage over other rival companies(Kim and Choi, 2013). By considering quality process system in Holiday Inn organization, it will be able to create high standard for business in which they can perform organizational task in order to attain set goals of objectives. There are various types of quality process system that can be used by organization in order to ensure that respective company is successfully conducting its business task as well as meeting with the expectation of customers. This type of systems are use by organization in order to make sure that all activities are perform in set rule and regulation as well as help in keeping safety and security of customers or employees. Quality process system are very useful for respective company as it will provide quality in business services, improve productivity and along with this it also enhance morale of organization. It will lead to create positive organizational culture and environment which provide 7
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assistance to organization for smoothly performing its activities and meeting with the expectation of customers. Holiday Inn company will be able to successfully meet with the expectations of customer by considering quality process system for business and its activates. It has been determined that consideration of this system in respective business will lead to have major impact on business and assistance in creating strong relationship with customers.To ensure that services are being delivered as per the requirements or expectations of customers, it is necessary to identify gap which exist between what is being delivered to them and what is being anticipated by them. This implies that it is mandatory to accomplish this gap to have strong customer base and acknowledge all the requirements (Ho, Tojib and Tsarenko, 2020). Service gap refers to difference among what customer expects and what is received by them. For this, SERVQUAL model is being utilized by Holiday Inn, it is specified below: SERVQUAL:It refers to service quality framework which aims at measuring scale of quality within the service industry. It is being utilized for measuring gap among customer expectation as well as their experience. This involves five gaps which has to be identified by Holiday Inn and ensure that they are handled efficaciously so that in future it do not lead to further problems as well as ensure that they meet expectations of their probable customers. These gaps are mentioned below: GAP 1: Consumer Expectations & Management Perceptions This gap takes place when management is not able to perceive what is required by their customers. For an example, administrator of Holiday Inn may think that their customers require better and different food but consumers might be concerned with fast delivery (A Service Quality Model Applied on Indian Hotel Industry to Measure the Level of Customer Satisfaction 2014). This gap takes place due to poor interpretation of information, inadequate marketing research and various layer among top level management and front line employees. GAP 2:Management perceptions & service quality specifications This denotes that management may perceive correctly perceptions of their customers but are not able to formulate adequate performance standards. For an example like administration may ask waiter to respond fast to guests but not told about how fast. This gap takes place due to inadequate planning, lack of commitment, unsystematic new service development processes. GAP 3: Service quality specification & service delivery 8
This occurs due to service personnel and cause behind this unwillingness to meet formulated standards, poor training, failure to acknowledge demand & supply and lack of relevant customer education & training (Dedeoğlu and et. al, 2020). GAP 4:Service delivery & external communication Expectations of customers are influenced via statements which are being given by firm’s representatives as well as shown by advertisements. But gap occurs when these anticipated expectations are not met when services are being delivered by service industry. For instance, Holiday IIn printed brochures in which it was mentioned that clean and furnished rooms will eb available for guests bt in reality, they were not maintained adequately. This occurred due to discrepancy among what actual services are and what is promised. This occurs due to failure for managing expectations of customer and performing as per specifications. GAP 5: Expected & experienced services This gap takes place when customers misinterpret service quality. Like manager may ask customer about services but they might interpret like indication that something was wrong. Illustration1: Conceptual Model of Service Quality These are the gaps which can be identified by Holiday In by making use of SERVQUAL model. In this context it is crucial for service firm to take adequate measures through which such kind of gaps can be handled effectively so that customers as well as Hotel is satisfied by quality perceived and delivered respectively (Inversini, De Carlo and Masiero, 2020). These measures are illustrated beneath: 9
Tangibles:Holiday Inn must make use of modern equipments as it will enable them to deliver quick as well as significant services. Physical facilities must be appealing like rooms and bathroom must be clean, parking area must be convenient. Assurance:When management of Holiday Inn promises to do something within peculiar time interval then it must be done. Like food will be delivered to room in 30 minutes then it must be within 30 minutes and not more than that. Responsiveness:Management of Holiday Inn are anticipated to give their customers with precise details related with services that will be carried out by them as it is necessary to develop trust among them. Customers those who check out from hotel looks forward to prompt services and it has to be ensured by employees, same it goes with check in. Furthermore, employees have to always help their customers (A Service Quality Model Applied on Indian Hotel Industry to Measure the Level of Customer Satisfaction, 2014). It is crucial that employees must know about all the activities going within the premises so that they can answer all the questions raised by their guests. Reliability:Charges within account must be clear as well as precise so that customer can trust billing and feel safe while any kinds of transactions are being carried out. Moreover, Holiday Inn must have dependable and reliable employees who are diligent as well as honest. These are the aspects which will aid Holiday Inn to accomplish gap which prevails within anticipated and real services that have to be considered by them while delivering services. This will aid them to meet the quality standards which are being formulated. Along with this there are several other practices which can be adopted by Holiday Inn in order to support their quality process which help in enhancing customers experiences, from which some are mentioned below:- Provide training to employees –It is one of the main practices which are essential to be considered or implement by a company for improving their operation for enhancing customer’sexperiences(Lo, 2020). In respect of HolidayInn, theiralmost every employee interact or communicate with customers directly so it is essential for hotel to provide high quality training to all staffs so that they interact with customers in effective manner. Through this they able to ensure that their businesses processes are conducted properly as well as their customer experiences get enhanced as their requirement are fulfilled properly. 10
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Improve process and minimize waste –Through this an organization can increase their goodwill at the marketplace which helps in attracting more customers as well as investors because in today’s time companies which waste management are considered as effective (van Tonder,Saunders and de Beer, 2020). In respect of Holiday Inn, they can improve their working process according to which they ensure that they are minimizing their waste on daily basis as well as they are using solar energy. Through this they able to increase their goodwill as well as it also help in attracting customers which leads to increase in sales and profitability ratio successfully. Conduct staff engagement practices –In an organization if staffs are engaged in effective mannerthentheyfeelhappyaswellassatisfiedwhichdirectlyenhancetheir performance(Bertscheand Binckebanck, 2020). So it is essential for Holiday Inn to adopt different practices in order to engage their employees for the long time duration. In order to this they may provide training, appraisal, award, benefits and so on. This is so because through it they feel motivated which directly increase their performance or work quality which help in ensure that customers expectation will also get fulfill effectively. Consider customer’s suggestion –According to this it is essential for every company to involve customer’s suggestion or feedback in the decision making process as that help in improving services(Saraswat, 2020). So it is essential for Holiday Inn manager to take suggestion and feedback from customers as that will help them in developing decision accordingly which help in fulfilling their expectations. These are the main aspects which can be considered by Holiday Inn while conducting their business operation and function in order to improve process and fulfill customer’s expectations. CONCLUSION By conducting analysis of above mentioned topics it can be summarised that for every firm it is necessary to develop proper understanding of customer’s expectation so that they can offer them effective experience. It is so because that will also help management in the development of effective strategies or plan through which company can boost their market shares and profit successfully. In addition to this, an organization also need to determine factors which may influence their business operations and functions in order to maximise its customer value because by understanding those factors management able to develop effective decision and plans. This will include factors like employees, behaviour of consumers, business process, 11
innovative technique or process, CRM system, digital marketing, ethical consideration, quality of services and many more. Along with this, an organization can also adopt different frameworks or methods for understanding or determining these factors such as customer value framework as that will help in understanding customer’s expectation and experiences. Furthermore, a company also need to determine systems which support an organization quality process through which they can meet the expectation, requirement and need of customers successfully. For this they can adopt different models such asSERVQUAL model as that will help in determining gap which impact on the performance and due to which customer’s expectation not get fulfill. In respect of Holiday Inn, they are conducting analysis and evaluation through which they can enhance their customer’s experiences. For which they conduct several analysis which main motive is to determine factors or elements which impact on their business function of hotel due to which they not able to deliver quality as well as expected services to their potential customers. Through this evaluation they determine that in their workplace there are several factors such as employees who are not performing their duties in effective way, customer behaviour because all customers not behave in same manner which impact on employees’ performance and hotel reputation as well as profitability. Moreover, other factors which impact on their performance is ethical consideration because there are some employees who not follow all ethical practices at the respective company work place. In addition to this, they also determine system through which they can enhance their quality process which directly help them in attaining customer’s requirement successfully. For this they can adopt model like SERVQUAL model as well as they can also adopt several practices such as improve process and minimise waste, engaging staff and providing training opportunities and many more. So it is essential for Holiday Inn to consider all these factors while developing their strategies, plan and procedure becausethatwillhelpinprovidingqualityservicestocustomerswhichenhancetheir experiences. They also need to provide training and development to staffs so that they can handle each staffs in effective manner. Moreover, it will directly leads to increase in reputation, profit and market shares of respective hotel. 12
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Saraswat, S., 2020. Enthusiastic Determinants of Retail Customer Experience.Studies in Indian Place Names.40(56). pp.1341-1348. vanTonder,E.,Saunders,S.G.anddeBeer,L.T.,2020.Asimplifiedapproachto understanding customer support and help during self-service encounters.International Journal of Quality & Reliability Management. Online A Service Quality Model Applied on Indian Hotel Industry to Measure the Level of Customer Satisfaction.2014.[Online].Availablethrough: <https://www.ijsr.net/archive/v3i3/MDIwMTMxMjIw.pdf>. 14