Impact of Customer Service on Customer Loyalty in Shangri-La Hotel

This research focuses on the impact of customer service on customer loyalty in Shangri-La Hotel. It explores the various customer service problems and their impact on customer loyalty. The research aims to provide practical suggestions to improve customer satisfaction and retain customers.

Running head: IMPACT OF CUSTOMER SERVICE ON CUSTOMER LOYALTY IN
SHANGRI-LA HOTEL
IMPACT OF CUSTOMER SERVICE ON CUSTOMER LOYALTY IN SHANGRI-LA
HOTEL
Name of the Student
Name of the University
Author Note

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IMPACT OF CUSTOMER SERVICE ON CUSTOMER LOYALTY IN SHANGRI-LA
HOTEL
Table of Contents
1. Introduction.........................................................................................................................2
a. Problem Statement..........................................................................................................2
b. Research Objectives........................................................................................................2
c. Research questions..........................................................................................................3
2. Review of Literature...........................................................................................................3
a. Customer Service............................................................................................................3
Customer Loyalty...................................................................................................................3
b. Customer Service and Customer loyalty in Shangri La Hotel........................................4
c. Impact of customer equity on customer relationship and loyalty......................................4
Customer relationship management and customer loyalty and satisfaction..........................5
3. Research Design.................................................................................................................5
a. Choice of Methodology...................................................................................................5
b. Choice of Research Instruments......................................................................................6
c. Sampling Scheme and Sampling Size.............................................................................6
d. Data collection approach.................................................................................................6
e. Choice of analytical method............................................................................................6
f. Limitations of the research..............................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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IMPACT OF CUSTOMER SERVICE ON CUSTOMER LOYALTY IN SHANGRI-LA
HOTEL

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IMPACT OF CUSTOMER SERVICE ON CUSTOMER LOYALTY IN SHANGRI-LA
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1. Introduction
a. Problem Statement
The industries like hotel business, and other businesses, the success of those depends
mainly on building long-term relationship with the clients and customers. So building the
customer relationship and gaining the customer loyalty, hotels services have to focus on
customer satisfaction (Kasiri et al., 2017). This research particularly focus on the business of
Shangri La inns and how they are being capable to retain their customers by providing
customer friendly satisfactory services. The various customer service problems like lack of
empathy in the behavior of hotel staff and employees, the missing of proper implementation
of process and policies, lack of communication and follow through are the various problems
in the field of customer service and its impact on customer loyalty, which will be given focus
to and addressed in this report. The specific problem of the effects of customer satisfaction
and the impacts it have on the customer loyalty are especially discussed in this report.
b. Research Objectives
The research aims to explore the varied customer service factors and aspects, which
are important at the Shangri-La hotel and provide the necessary corrections and
practical suggestions in order to improve the customer satisfaction while offering
services.
The major objectives of this study are
 To explore different customer service factors which are important at the
Shangri la hotel.
 To provide practical suggestions and newer means to improve customer
satisfaction while offering services, and in turn gaining loyalty and retaining
the customers.

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c. Research questions
 Which customer services and factors are important to the clients of the Shangri
La hotel?
 What are the practical suggestions and newer ways to improve the customer
services of Shangri La hotel and gain loyalty of customer?
2. Review of Literature
a. Customer Service
The set of instructions and services provided by any business to its customers always
plays a pivotal and crucial role in the particular business’s success and growth. Each and
every business can be helpful by the quality of facilities it affords to its customers, but the
hotels and hospitality sector particularly needs exceptional quality service for winning the
trusts of the customers (Lu et al., 2015). For the customer loyalty, the particular service
provider needs to focus on customer satisfaction, and this can be attained only through
exceptional and new age customer services provided to the customers. Researches show that
in hospitality industries, the core factor is interaction with the customers be it in hotels,
resorts, theme parks, tourist destinations and like. So, if the customer services are not given
importance to in this industry, the loyalty and satisfaction rates of customers will decrease
resulting in loss of business for the future.
Customer Loyalty
Customer loyalty is defined and expressed in many forms and ways, in different
explanations. But the core of the matter is the feedback received by customers both

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emotionally and physically while receiving any product or service from the business, they are
becoming a part of. The loyalty comes as a result of positive feedback which the customers
give when they receive good and quality service from the business end. In instruction to build
a positive and constant consumer base and loyalty, a cohesive force, which will develop out
of physical experience, emotional experience of the customers, and a perceived value, which
they will develop out of the services, received (Browning, So & Sparks, 2013). In comparison
between customer retention and gaining new customers, retention due to loyalty which
develops out of attraction towards the particular service, is much more beneficial for the
business. Once the customers develops loyalty towards a particular company or organization,
it ensures sales as well as other highly valued ancilliary products and services.
b. Customer Service and Customer loyalty in Shangri La Hotel
Today like everywhere in the hotel and hospitality business as well intense
competition is present. The satisfaction of customers is of prime importance. The target of the
management is always to focus on increasing the number of customer retention. Retention
happens only when the loyalty of customers is enhanced by changing customer’s perceptions,
and the value of facility provided by the hospitality industry. Shangri La provides the
hospitality and care to its customers (Chen, Liu & Chang, 2013). The hotel provide best
customer friendly services, and makes the customers feel like they are at home. The company
offers both five star and four-star hotels in four different brands. The hotel presents unique
architectural designs of Asian forms, in the hotel location designs. The Shangri La brands and
its resorts always aims at high-income tourists and travelers (Amin et al., 2013). They offer
relaxing atmosphere, for customers’ vacation. The loyalty programs for customers, are very
much important for the company, and finally benefits to attain the client loyalty by creating
the customer contentment.

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c. Impact of customer equity on customer relationship and loyalty
Various hospitality firms seeks answers in retaining customers especially during the
recession periods, which they can overcome if they have a strong loyalty towards the
customers (Lu et al., 2015). If the particular firm have loyal customer base, then even during
difficult economic conditions, the turmoil can be handled with proper care. The customer
equity is an essential factors, in making sure the business prospective. The drivers for proper
customer equity, which will lead to the customer satisfaction and loyalty, include, value,
relationship and brand (Zhang, van Doom & Leeflang, 2014). The value of the service
provided, makes an important effect on the customers mind, thus making an emotional
connect with the customers. The brand as a total entity, makes an influence on the
consumer’s perception, and continuous evaluation of quality services provided by the
company or organization.
Customer relationship management and customer loyalty and satisfaction
This process of customer relationship management or CRM focuses on management
of company’s interactions with customers, their problems, the services provided to them. The
main purposes of this CRM process, lies in increase of profits, through customer satisfaction.
Once the satisfaction comes from the customer’s perspectives, the loyalty gradually comes as
in the case of Shangri La Hotels (Hill & Alexander, 2017). These chains of hotels, constantly
evaluates the loyalty programs, services and facilities, be it in China, Sydney, or Kuala
Lumpur, and thus are able to retain back the loyal customer base it has.
3. Research Design
a. Choice of Methodology
Research methodology involves different set of techniques, which are adopted in the
entire research process to collect, assemble various data and evaluate them

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accordingly. The methodology defines the different tools, which are required and
relevant for gathering information at different points of time in the research study.
There can be different types of research methods, which include, qualitative as also
quantitative methods. The common tools of research include surveys, questionnaires
and interviews. The research methodology in this report is Qualitative research
methods of conducting interviews. It also carries out an analysis of preexisting data
and researches on the customer policies and results obtained by Shangri La hotels (Ou
et al., 2014). In certain surveys and questionnaire, methods and analyzing the data
gathered from them, certain quantitative methods of research will be followed.
b. Choice of Research Instruments
Research instruments are the different tools developed and formulated by different
researchers at different points of time when the particular research studies are
conducted. There are several and different types of research tools and instruments
which include questionnaires both of structured and unstructured patterns. Personal
interviews, focus group discussions can be the different modes and tools of
instruments (Hill & Alexander, 2017). The various tools, which will be used in this
research, are interviews used in qualitative method, which are used to know the range
of fulfillment of the clients, from the facilities that are received by them, at different
outlets of the Shangri La hotels. The interviews from hotel employees and customers
through certain set of questions and topics.
c. Sampling Scheme and Sampling Size
A sampling plan or scheme is a term widely used in research studies which provides
different outline and structure on the basis of which the entire research is conducted.
It mentions different sample size to be selected out of the population, the method
required for conducting the research. Non-probability sampling is the technique where

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the odds of the members selected for the sample cannot be calculated. An added
advantage of non-probability sampling is that it is very cost-effective and saves time
as well .The particular set of employees and managers who will be selected for the
research, based on criteria of the services of Shangri La, based on non-probability
sampling like convenience and judgmental sampling.
d. Data collection approach
Data collection is the most important part of any research. Primary data collection
sources are surveys, observations, experiments, questionnaire methods and personal
interviews or focus group discussions. On the other hand, the secondary data
collection methods include gathering information from government publications,
websites, books, internal records as well as journal articles. This paper will analyze
the available secondary resources from research papers and studies conducted which
are already available on the public forum (Ou et al., 2014). It will conduct interviews
from one to three employees and managers in charge of separate customer service
sections of the hotel.
e. Choice of analytical method
Content analysis in research is a specific technique, which is used to make replication,
and valid inferences by the proper interpretation and also coding of the textual content
and material. Through this process by systematically evaluating texts like documents,
verbal or non-verbal communication and even graphics, the qualitative data can be
converted into quantitative data. Analytical method will be given prime importance in
this research as maximum data will be collected from secondary sources of
information. These include the primary data collected from interviews and research
studies available on the public forum on various topics and services related to
customer loyalty and services provided by the Shangri La group of hotels.

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f. Limitations of the research
The research work faces many limitations, which are many, the constraints occurring
like time management and different locations required for conducting the research.
Budget constraints are a great limitation for this paper, as conducting research for
various studies related to Shangri La requires a great amount of money (Watson et al.,
2015). Location of different hotels of Shangri La at different places around the world
if researched separately then more positive study results will be found out, although
which is not possible practically.
Conclusion
This paper tends to research having the aim of finding out the relationship amongst
customer services and consumer faithfulness in respect to the Shangri La group of hotels.
Various secondary resources of data as well as personal interviews have been collected in
respect to the services provided by this group of hotels of Shangri La. The available
literatures on this topic are analyzed. The connection amongst consumer loyalty and customer
gratification are studied in depth. The research design includes the methodologies of research,
the data collection procedures and the limitations. In conclusion it can be ascertained that
Shangri La group of hotel with the effective customer services shows a vital role in recalling
customers and loyalty of them.

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References
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