Analyzing Consumer Behavior and Loyalty Programs

This assignment delves into the world of consumer behavior and loyalty programs. It involves analyzing various studies and papers on the topic, including ones that discuss the impact of instant reward programs and bonus premiums on purchase behavior, as well as the effects of loyalty programs on customer satisfaction and trust. The assignment also touches on qualitative research methods and their application in marketing research.

Research Project

Topic: To assess the impact of service quality on customer satisfaction within
hospitality industry: the case study of “Grosvenor House Hotel”
INTRODUCTION
In present era where technology is fast growing in every sector of the economy
there are all new kinds of innovation. So the service sector and hospitality industry is
also growing very fast with taking all the invention in the consideration. It is the
fastest growing industry in the economy nowadays which is also ready to give the best
service quality to all its customers. The present research report is based on Grosvenor
House Hotel which a luxury hotel and is managed by JW Marriott Hotel under the
brand of Marriott International hotel. The research will also include the impact of
service quality on customer satisfaction in the industry and Grosvenor House Hotel.
As customer being the main concern of any industry and that of hospitality industry
and to satisfy them is priority of the company. The service which is provided by the
hospitality industry is the only possible way in which the company can grow in the
industry. Giving the good quality of service to the customer will also increase the
profit and decrease the cost to company. Service quality also include the way in which
staff interact with the customer.
LO 1
1.1 Formulate and record possible research project outline specification
Background of study
The following research report will be based on Grosvenor House Hotel and the
impact of the customer service on customer satisfaction, profit of the company and
growth of the company. Customer service is the main aspect and foundation of the
hospitality industry as without this the industry will not be able to grow in the market
and the customer will also not be happy. To maintain the loyalty and privacy of the
customer it is important for the company to look after the customer service and make
their experience good.
Aim of research: Assessing the impact of service quality on customer satisfaction
within hospitality industry: the case study of “Grosvenor House Hotel”
Objectives of research
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 To find out the effect of the customer quality on the customer's satisfaction. To
identify various outcome of this service quality on the profit margin and cost of
the company.
 To measure and assess the amount of revenue generated from good quality of
service.
 To recommend ways how can the service quality can be improved in a more
efficient manner.
 To analyse the way in which the hospitality industry will grow because of
improved service quality.
 To suggest the strategies that Grosvenor House Hotel can use to increase the
quality of customer service.
Research Questions
Q1 What is the impact of customer service on customer satisfaction?
Q2 How does this influence the increase in the profit?
1.2 Identify the factors that contribute to process of research project selection
Rational of the study: the main aim behind the study is to throw some light on
the impact of customer service on the customer satisfaction in the hospitality industry.
Maintaining the customer relationship and then providing them the best quality
service is also very important to help the company grow and expand. This will
certainly increase the customer loyalty and they will always prefer the company above
all in the market. The hospitality industry is all based upon the service which the
company is giving to the customer and then the feedback which the customer is giving
to the company for its service. Therefore, if the company is not providing the best
quality of service to the customer then they will not be loyal to the company.
1.3 Undertake a critical review of key references
According to Bergold and Thomas (2012) the customers are main essence of
any industry without whom the company or the industry is not able to perform in the
way it need to. Hence, providing them the best quality of product and service is also
important. Çifci and et.al., (2016) also stats this thing will surely influence the amount
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of profit and revenue generation of the firm. As there is a tough competition in the
hospitality industry in the present era there are many new hotels and restaurants in the
market which are developing each day. To cope up with this competition there is
necessary that the customers are satisfied. Petty, Thomson and Stew (2012) also said
that dealing with the customer in a good and effective communication is the base of
the hospitality industry.
Contrary to this Dias and et.al., (2016) states that they are number of other
factors which should be considered in the given industry. The interaction of the staff
with the customer if the interaction or the communication is not good but the service
is good the company can not perform in a better way. The communication skill of the
staff should also be increased so that they can greet the customer in the best way as
said by the Petty, Thomson and Stew (2012)
1.4 Research project specification and appropriate plan procedures.
In assessing the impact of the service quality on customer satisfaction within
the hospitality industry in the project work specified structure is need to be followed.
All the parts should cover the whole thesis and the study of the project so that it could
be useful for all the people associated with it.
Literature review: this would include the research problem and the finding of the
other authors, journals and books. To see what are the impact of the customer service
on customer's satisfaction as said by different authors.
Research Methodology: various method which are applied to the research projects
are done under this like what type of research approach is used, how the data has been
collected, how the sampling is done and how the data is analysed.
Conclusions: at the very end of the report conclusion are given that what was actual
finding of the project work. This part also include the commendation of the
researcher.
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1.5 Appropriate plan and procedure for agreed research specification
CHAPTER 2 Literature review
2.1 Introduction
The impact of the service quality in the hospitality industry is of utmost important as
the customers concern is key area of study in the part. The term service quality is
formally taken as major consideration in all the industries and managers at every level
of the work are said to maintain this quality. Company always employ the best quality
staff so that the communication between them and customer is humble and polite. The
service quality and the customer satisfaction is crucial in hotel industry and is more
important than the luxury properties.
2.2 Literature review
According to Drake and Heath (2010) it is defined that the loyalty of the
customer is not there in this hospitality industry as customer generally do not stick to a
particular hotel they are of the view that should always try something new. Eriksson
and Kovalainen (2015) also compare that almost all the company in the industry are
providing the same quality of customer service to their customers. As all company
know that it is the service of the company that will be able to hold the customers or
built new relationships. However, in the viewpoints of the Leckie Nyadzayo and
Johnson (2016) the hospitality industry should always try to make new customer's
from the market.
On the contradictory note it is stated by the Leisen Pollack (2017) that quality
is not enough to bring the hospitality company in the top. But the quality of food and
the luxury is the part which the customer tend to find in company. Minnema, Bijmolt
and Non (2017) also further evaluate that only giving good quality of service is not the
only thing which the company should focus on but should also take the
communication, food and the facilities which the company is providing into account.
Hospitality industry is the most prominent and fast growing industry in the
economy of UK as said by the Petty, Thomson and Stew (2012) Service quality is
mainly stated as the difference between customer expectation for the quality of service
in the hotel and the actual service which they have been given in hotel. On the other
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hand Ramanathan and et.al., (2017) pointed that there is very increased role of service
experience, quality of food and physical product in hospitality industry. Rehnen and
et.al., (2017) demonstrated that the personality and the attitude of the front line
mangers and the front line staff is also correlated to the guest experience and their
expectations.
According to Schmitt (2010) service is also the overall evaluation of the
specialised services, comparison of the performance with that of customer expectation
of what should be given to customer by them. So and et.al., (2016) also defined that
satisfaction is not only the monetary benefits of customer by company but is solely
based on the experience of the customer in hotel. Further, Stathopoulou and Balabanis
(2016) elaborated that getting the customer feedback so that the dissatisfaction if any
can be sort out and the same issue is not raised again in the future. Customer feedback
can be given any time during their course of visit or stay in the hotel or after that as
well. In this present scenario where digitalization is growing at a faster pace customer
feedback is generally taken through online survey and by preparation of questionnaire.
Steinhoff and Palmatier (2016) also mentioned that today's customer is not
money oriented but rather they are more service and expectation oriented. They
always look for such type of company which is that much capable that customer
would like to visit their place more and more every time. Tanford, Hwang and Baloglu
(2017) also said that any negative experience of customer is cause a loss to the
company and they will certainly need to look after the service quality. All the negative
feedbacks should always be handled on priority and then must be tried to rectified
thereafter. Wang and et.al., (2016) noted that the customer handling the hospitality
industry play a vital role in the growth and profit earning of that company.
All the customer's interaction in this industry is looked as the marketing
communication and brand image of the company as said by Zopiatis and et.al., (2016).
The brand image will also contribute to the direct sale of the company and thus
increasing the amount of profit the company is making out of that. All the verbal and
the non verbal communication is of utmost importance in industry which need
improvement if necessary. The communication part would include paid advertising,
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non paid public relation, company publication and customer service. And in the
Minnema, Bijmolt and Non (2017) viewpoint hospitality industry have a slightly
different kind of communication like clean rooms, employee's attitudes and the other
functions which are included in the service part of the industry. The overall experience
of the customer togetherness of all such services which are provided by the company
to customer. In which luxury part is also included and now it has been provided by
almost all the companies in the field as stated by the Leisen Pollack (2017)
2.3 Resources which required in the research
Hospitality industry is very wide and is highly dependent on the customer
perception and belief. Firms can improve their quality services through understand the
relationship between the service provided and customer-based. For hotels such as
"Grosvenor House Hotel" in London being having high reputation they still have to
focus on the areas of the services they are providing to the customers. For efficacious
conclusion of the research various resources were used to increase the reliableness and
cogency of the research. Collection of information from respondents was done
through surveys and for that financial requirements, time period and instrument and
tools were postulated. Along with this, data analysis was done with the help of
technology to appropriate and reliable data can be collected. Additionally, copyrights,
legal permission and ethical consideration were taken care while conducting the
research.
Chapter 3: Methodology
2.2 Research investigation on the basis of determined specification and process.
From the finding of (Anfara Jr and Mertz, 2014) it was found that research
methodology provides extensive applied information, higher background studies as-
well-as understanding level and enhanced construction of the research. The details that
are mentioned in it are more specific, clear, logical, credible, straightforward and
shows that how research would be conducted within the business environment. For the
following research project these are methodology tools and techniques that are used to
solve the project. In the research the details will be completed through surveys, though
it will be time consuming but it for analysis of more number of people there is need of
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survey. It would be conducted with the Grosvenor House Hotel's customers related to
their experience. The details provided in the research is formulated using the
customers perception regarding the company and their personal experience. This
subdivision covers key region which are data aggregation, reasoning,
conceptualisation, philosophy, extent, ethical issues etc. The details are provided using
various tools and techniques that are mentioned below:
Research approach: Research approach is about the belief through which researcher
conducts the research and completes it in effective way (Creswell, 2013). There are
various tools and techniques that can be used by the researchers in order to accomplish
the research and gain the expected finding. They help in reducing the chances of
mistakes and helps in building implementation of methodology being selected. There
are two ways through which author can complete the research topic, these are
inductive and deductive. The former is about the new research areas where new theory
is developed and is used to expand patterns while explaining them. However, on the
other hand the other is about shifting from general content to specific aspects.
For the present study, inductive approach has been used in conducting the
entire research. The approach was relevant as present study is organization based and
their is higher influence about customers expectation and hospitality services.
However, the other method was not selected as there was no general content discussed
within the study and it do not have specific demands.
Research philosophy: It is the doctrine of the study or belief based on which study is
conducted. In order to evaluate different outcomes from the research, researcher has
implemented this application (Daniel and Sam, 2011). Adopting and employing better
philosophies help to accomplish aims and objectives in more specific ways. Various
philosophies of research approach are based on the epistemology that is what are
scientific true and doxology that is what believed to be true. In Western tradition of
science there are 2 major research philosophies have been identified interpretivist and
positivist. The former one is about the subjective interpretation that is belief that
multiple realities depends on the system for meaning which are regarded as
challenging to interpret in terms of fixed realities. Here human behaviour is studied
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rather than generalizing it. However, positivism is belief that world is external and
single objectivity is present to research phenomenon.
For the present study, the philosophy used is interpretivism to link human
belief and provide reasoning for their belief and behaviour. Additionally, the reason
for not adopting the positivism philosophy is that there was no expectation of
researcher to solve scientific theories or phenomenon.
Research design: Design is considered as the blueprint or we can say copyright for
the study made in order to accomplish research aims and objectives (Bryman and Bell,
2015). For maintaining reliability, validity and ethical consideration, researchers chose
appropriate research design. Researchers have choices of choosing the research design
based on their research topic, they can chose descriptive, casual, exploratory etc.
Casual is about the normal ideas, descriptive design supports in providing description
of the title of the research, exploratory design focuses on development of new ideas
and thoughts etc.
The present study is conducted through in descriptive form as some research is
involved within it. On the other hand, design such as exploratory is not beneficial for
the present research as exploring new ideas along with thoughts is not required in the
present study.
Research type: It is the techniques that is used to find about the research and to
conduct the research in effective manner. Further, it is required to gain advancement
within the research. In a research there are qualitative and quantitative type of research
(Wåhlberg, 2012). For study to be qualitative there is no need of numerical values and
based on themes research was solved. However, quantitative it is present in numeric
form and statistical tools are employed for analysing data.
The present study is based on the qualitative manner as there was no numeric
values were present within the study. This was the major reason behind considering
the present research as qualitative rather than quantitative.
Data collection: For completing the research, data collection is considered as
important sources and helps in accomplishing the aims and objectives. There are
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generally two ways through which data is collected. These are primary and secondary,
where in primary data is directly collected from the candidates or respondents and is
conducted for the first time, there is no past for such research. However, secondary is
critical review of the other authors which is based on various studies. Primary sources
is considered as more effective than secondary and reliable.
For the present research, the collection type chosen are both. For this survey
was conducted and for secondary data, books, journals and online articles were
chosen.
Data sampling: It is the range of people that are selected within the study and study
area. It is crucial feature of research methodology. There are two sampling ways
which a researcher can adopt this is probabilistic and non-probabilistic. Probabilistic is
population based study and non-probabilistic has no role of population. For the study,
research probability simple sampling technique are used where 50 customers were
analysed. The research was specific for the people that have availed the services of
hoteliers.
Data analysis: The data collected is through the primary methods. Further, analysis of
data with the help of suitable method aid in responding to all the research questions.
There are two ways of data analysis, these are qualitative and quantitative (Wåhlberg,
2012). Quantitative is adopted for the solving non-numerical data while quantitative
technique is employed when information is present in numeric form. For the present
report qualitative technique has been employed. On the other hand main reason behind
not selecting quantitative technique of data analysis is that data is not present in
numeric form. Therefore, with the help of this it can be said that through qualitative
technique it is quite possible to know about the response provided by customers of
Nike and in turn it can be ensured whether aims and objectives of the research has
been accomplished or not.
Ethical consideration
All the ethical principles are followed and conducted by the researcher while
completing the research. Ethical consideration followed are mentioned below:
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 Participants of the research were not harmed in any situations and extra care
was ensured.
 Privacy and confidentiality of the participant’s information was kept and
without their personal approval they will not be revealed.
 All the participant were equally treated and the aim and nature of the study was
specified to them.
 Trustworthy and friendly environment was provided to the candidates.
 During the survey and while completing the research no harm to animals and
environment was made.
 All the participant were equally treated and the aim and nature of the study was
specified to them.
 Trustworthy and friendly environment was provided to the candidates.
 During the survey and while completing the research no harm to animals and
environment was made.
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Chapter 4 Data Collection and Analysis
2.3 Descriptive statistic of records and relevant data
Theme 1: Once in every year individual prefer to visit the Grosvenor House Hotel.
Que. 1: How many times have you visited the "Grosvenor House
Hotel" in London?
Frequency
 Once a year 20
 Occasionally 17
 Not so often 13
Total 50
Theme 2: There are various facilities that are preferred by individual for selecting
Grosvenor House Hotel.
Que. 2: What type of facilities do you prefer when selecting an
apartment hotel?
Frequency
 Modern facilities 7
 Concerned facilities 8
 No contract for staying 10
 All of the above 25
Total 50
Theme 3: Consumer thinks that services provided by Grosvenor House Hotel staff
helps in gratifying their expectation.
Que. 3: Do you think that services provided by Grosvenor House Hotel
staff satisfies your expectation?
Frequency
 Absolutely 31
 Depends 12
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 Not at all 7
Total 50
Theme 4: Customized services are preferred by individual apart from
accommodation service.
Que. 4: Which are the services that are preferred by you apart from
accommodation while you visit apartment hotel?
Frequency
 Customized services 19
 Room service 12
 Special assistance given by front desk employees 11
 Recreation centres 8
Total 50
Theme 5: Quick problem solving is required to be involved within apartment
hotel staff within coming times.
Que. 5: Do you think that apartment hotel staff should come across
different changes in the coming times?
Frequency
 Security 12
 Effective communication of staff 9
 Enhancing catering and room service 13
 Quick problem solving of consumers 16
Total 50
Theme 6: Most of the participants are willingly to visit the hotel again.
Que. 6: Would you like to visit this hotel again. Frequency
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 Yes 31
 No 12
 Not Sure 7
Total 50
LO 3
3.1 Appropriate research evaluation techniques.
Based on the semi-structured surveys from the customers the data was
collected. Their response will decide that the opinion about the company. There will
be higher validity as customers will be able to decide their viewpoints regarding the
organization brand packaging. Though the surveys will be time consuming but they
are among the best way to collect the data. Additionally, rich and in-depth data can be
received from the higher level of complexity. The author has adopted the participatory
approach so that enhance internal validity can be maintained. Respondents own
coherence will provide high credibility, convenience level and reliability.
Along with this, the researcher has used the qualitative methods in order to
complete the entire research. It is used to increase the validity and reliability of the
research. In this tools and techniques that are used are based on the thematics. Entire
research approach is made on the theoretical concepts and there is no numerical values
used in order to derive outcomes and gain better solutions. As there are no numerical
values so quantitative evaluation methods was not used by the researcher.
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3.2 Data Interpretation and its analysis.
Thematic Analysis
Theme 1: Once in every year individual prefer to visit the Grosvenor House Hotel.
Once a year Occasionally Not so often
0
5
10
15
20
25
Column C
Interpretation:
Above mentioned chart show that, individual prefer to visit apartment hotel
once in a year whenever they are on their holiday. Out of 50 more than 20 have visited
the hotel once per year. It can be as they receive higher customer satisfaction. Around
17 customers replied that they visit occasionally and 13 have responded not so often.
It can be because they prefer less travelling and staying such high class hotel. Thus, it
can be assessed that once a year respondents visit Grosvenor House Hotel for staying.
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Theme 2: There are various facilities that are preferred by individual for selecting
Grosvenor House Hotel.
Conciered facilities All of the above
0 5 10 15 20 25 30
Column D
Interpretation:
Graphical presents that 25 respondents out of 50, lays high level of emphasis
on all types of facilities while making selection of an apartment such as modern,
concerned and no contracting. In the recent times, customers prefer to stay in the hotel
unit which provides customers with luxurious and quality services. On the basis of
such aspect, by making focus on attractive interior and exterior Grosvenor House
hotel can meet customer’s expectation and thereby would become able to enhance
productivity as well as profitability.
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Theme 3: Consumer thinks that services provided by Grosvenor House Hotel staff
helps in gratifying their expectation.
Absolutely
Depends
Not at all
0 5 10 15 20 25 30 35
Column B
Interpretation:
Aforementioned chart show that, 31 respondents out of 50 who prefer that
Grosvenor House Hotel employees should be efficient in order to provide effective
customer services and attain satisfaction. Such improvement can be made through
training and development, improving their skills and abilities to achieve further
success. However, there were 12 respondents that believed that it depends on the type
of training provided to them or remuneration provided to them for achieving desired
results. Apart from this, in survey, 7 respondents said that they are not satisfied with
the services offer by concerned hotel unit. Thus, for meeting the needs, wants and
expectation of customers hotel unit is required to employ highly skilled and efficient
personnel.
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Theme 4: Customized services are preferred by individual apart from
accommodation service.
Customized services Room service Special assistance
given by front desk
employees
Recreation centres
0
2
4
6
8
10
12
14
16
18
20
Column F
Interpretation:
It can be analysed from present theme that out of 50, 9 respondents refers customized
services in addition with the accommodation so in order to have high level of customer
satisfaction, which can be easily attainable. The company should focus on catering the
customized services so that effective and efficient results can be achieved. In addition,
apartment hotel is also required to cater the room services in an effective manner so that
customer service level can be augmented.
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Theme 5: Quick problem solving is required to be involved within apartment hotel
staff within coming times.
Enhancing catering and room service
0 2 4 6 8 10 12 14 16 18
Column E
Interpretation:
In concern to the above evaluation, 11 respondents stated that special
assistance and care if required by the organization to customers by the front desk employees
to make sure the quality level is high and best and optimum results can be achieved. lastly,
there are 8 customers who are of notion that it is very much essential for the apartment hotel
to cater effective recreational services so as pull the eyeball of the customers.
Theme 6: Most of the participants are willingly to visit the hotel again.
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Yes No Not sure
0
5
10
15
20
25
30
35
Column B
Interpretation:
It can be assessed that 31 customers out of 50 states that they would like to
choose to visit back the hotel. They were attracted by the service areas of the
organisation. Along with this, the friendly environment has influenced the customers
to visit that place again and again. Further, there are 12 respondents who state that
business also lacks in providing better services and thus they are not satisfied by
receiving such facilities by the apartment hotel members. Due to this reason they were
not willing to attain the hotel back again. Besides all this there were 7 customer's that
stated that were unsure about their decision.
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LO 4
4.1 Appropriate media to present the outcomes of the research to an audience
Covered in ppt.
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusions:
From the above research project it has been concluded that hospitality industry
is one of the biggest and ever growing industry of the economy. And in UK's
economy its contribution is to a great extent. The main focus of the industry is to
provide best to best quality service to its customer to increase the customer
satisfaction. Without a good quality of customer service company will not able to
grow in market and ion industry. There are various methods used to do the research on
particular project and in this report qualitative method is used to as it is a theoretical
project. A total of 50 customer have been taken to do the survey and they were asked
many questions regarding the quality of service in Grosvenor House Hotel. Out of
these 50 customers 12 agreed that there are requirements of quick problem solving in
from the hotel staff side. Most of the customer are all happy and satisfied by the hotel
staff and with the services of the hotel and are ready that they will visit again in the
hotel and also recommand it to their other relatives and friends. It is very important
that the company use this given data in improving the quality of service and thus
increasing the customer satisfaction. There are number of resources which are used in
conducting the research like data, customer, legal permission is required and various
tools and instrument are need.
5.2 Recommendations:
It is recommanded that the quality of service need to be improved and focused
should only be on the customers and their satisfaction. Whole of the research should
be used and conducted on very true bases. The data can be used to improve the quality
of work, increased in profits and thus increasing the customer satisfaction in
hospitality industry. It is also recommanded that use of communication must be
increased the customer should be given priority in the industry so that the working can
be improved.
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5.3 Areas of further study or consideration:
This research project can be used in many aspects to increase the profitability,
customer satisfaction, quality of service, sales and the visits of the customers on
regular bases. The study will also help the company in the increased working
efficiency and to cope up with the competitors in the market. As all the companies in
the market are providing the same quality of services and customers are having more
and better options with them. The other researchers who are doing the further research
can utilize the project in the study and make more advancement in it.
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APPENDIX
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