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The Impact of Customer Satisfaction and Customer Loyalty - Hotel Industry

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Added on  2020-01-28

The Impact of Customer Satisfaction and Customer Loyalty - Hotel Industry

   Added on 2020-01-28

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To Analyse the Impact of Customer Satisfaction andCustomer Loyalty Within Hotels Industry of UK
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Table of ContentsCHAPTER 1 – INTRODUCTION..................................................................................................11.0 Type of management project.................................................................................................11.3 Rationale of the study............................................................................................................11.4 Discussing theoretical or conceptual framework..................................................................21.5 Main terms of the study.........................................................................................................4CHAPTER 2: LITERATURE REVIEW.........................................................................................52.1 Introduction...........................................................................................................................5Background literature..................................................................................................................52.2 Concept of customer satisfaction and customer loyalty........................................................52.3 Identifying different factors affecting customer satisfaction and customer loyalty withinHotels Industry UK.....................................................................................................................72.4 Determining the impact of customer satisfaction and customer loyalty in hospitalityindustry of UK...........................................................................................................................101.5 Focal literature ........................................................................................................................121.6 Identifying the research questions.......................................................................................15CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY..................................................173.0 An introduction to the chapter.............................................................................................173.1 Design Approach.................................................................................................................183.2 Data Collection method.......................................................................................................193.2.1 Document analysis...........................................................................................................203.2.2 Triangulation:...................................................................................................................213.3 Data Analysis......................................................................................................................213.3.1 Content analysis...............................................................................................................233.3.2 Thematic analysis: ...........................................................................................................233.4 Evaluation...........................................................................................................................23CHAPTER 4: PRESENTATION OF FINDINGS.........................................................................254.0 An introduction of the chapter............................................................................................254.1 Service quality leads to increase customer satisfaction......................................................254.1.1 Being attentive to customer’s needs.................................................................................25
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4.1.2 Paying attention to the customers....................................................................................264.1.3: Need of provisioning quality services to value customer’s money and avoid theexistence of dissatisfied customers paying high for worthless services...................................27..................................................................................................................................................274.2: Customer Satisfaction is positively associated with customer loyalty..............................294.2.1: Affective commitment and loyalty reward....................................................................304.2.2: Personal relationship ......................................................................................................314.2.3: Increase in customer complaints ....................................................................................324.3: Recommendations from customers about improving loyalty and service.........................334.3.1: Asking for feedback........................................................................................................334.3.2: Understand the needs of guest and loyal customers.......................................................34CHAPTER 5: DISCUSSION.........................................................................................................365.0 An introduction to the chapter.............................................................................................365.1 What are the different factors affecting customer satisfaction and customer loyalty withinHotels Industry UK...................................................................................................................365.2 What is the impact of customer satisfaction and customer loyalty a within Hotels IndustryUK.............................................................................................................................................385.3 What advice and policies are recommended to increase customer loyalty through anincreased level of satisfaction...................................................................................................405.3.1 Asking for feedback.........................................................................................................405.3.2 Understanding the needs of the guests ............................................................................405.3.3 Focussing on training the employees ..............................................................................41CHAPTER 6: CONCLUSION AND RECOMMENDATIONS...................................................426.0 An introduction to the chapter.............................................................................................426.1 Conclusion...........................................................................................................................426.2 Recommendations...............................................................................................................44REFERENCES..............................................................................................................................48APPENDIX...............................................................................................................................51Open and Axial Coding Table:.................................................................................................51
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ACKNOWLEDGEMENTFor the accomplishment of the present dissertation, I would like to sincerely express sinceregratitude to my mentor who has provided me sufficient knowledge and greater support. Further, Iwould like to thank my friends, colleagues and family members who have guided me at everystage while conducting dissertation. Through their support, I was able to complete my thesis witheffectiveness and in an accurate manner. Lastly, in the series, I would also like to state specialthanks to my team members who have provided me with assistance in collecting data and inanalysing it further. 1
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ABSTRACTAim:To Analyse the impact of customer satisfaction and customer loyalty within thehotel industry in the UK.Methodology: To undertake an effective research, it is crucial to gather information anddata which is highly diversified and authentic (Taylor, Bogdanand DeVault, 2015).Another key consideration is the using of social media reports, TripAdvisor of customerreviews discussing customer satisfaction and loyalty were obtained to evaluating whatthe customers like and dislike about the hospitality or tourism industry in the UnitedKingdom. Further, thematic analysis is one of the most widely used measure forconducting studies based on qualitative method of analysis. It is one of the most suitedmethod that can be even applied by novice investigators who are not very familiar toany complex procedures of research. Results: Hotel can increase the customer loyalty through providing them some gifts'voucher at the time of check out. Further they can together focus upon listening to theproblems of customers and duly resolve them for avoiding the formation of any negativeimage of the hotel in those customers mind whose issues are still unresolved afterseveral complains. Further, hospitality industry is all about getting connected to theclients for a clear understanding of their actual requirements and fulfil the same on adue period of time. For this purpose, it is essential to build relationship with new guestsas well as the co-workers where personal relationships can be built only if themanagement is vigilant about customer’s and believes in resolving them on time.2
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CHAPTER 1 – INTRODUCTION1.0 Type of management projectThe management project illustrates the determinants of customer satisfactionand customer loyalty within the hotels' industry in the United Kingdom. The researcherhas been using data from social media website through TripAdvisor. Covering threemajor 5 stars hotels in the UK in order to analyse and compare online customersreviews. The research study is conducted effectively among TripAdvisor reviewsanalysis of each hotel. This, to better understand the positive and negative opinions ofhotels customers and discuss on how the guests become more loyal towards a brand. 1.1 Aim: To Analyse the impact of customer satisfaction and customer loyalty within thehotel industry in the UK.1.2 Objectives: The objectives of the present dissertation are explained as follows:1-To understand the concept and different factors affecting customer satisfactionand customer loyalty within the Hotels Industry UK.2-To determine the impact of customer satisfaction and customer loyalty within theHotels Industry UK.3-To recommend ways to increase customer loyalty through increasing the level ofcustomer satisfaction.1.3 Rationale of the studyAssessing the impact of customer satisfaction on loyalty, is very important as ithelps corporation to increase their revenue by applying different ways to grab the1
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attention of buyers. The concept of customer satisfaction and loyalty are considered asthe most prominent aspect for the growth and development of business. As this servesas the basis to increase sales turnover and expand business at internationalmarketplace (Bowen and Chen, 2001). At present business face issue related tocustomer retention which take place as a result of inability firms have in meeting theexpectations of buyers. In some cases, firms do not understand the need of buyers, inturn fail to provide the right product or services. This research area is interested in thereason behind maintaining a competitive edge of the business in the marketplace. Thus,it is important to conduct this particular study to learn about weaknesses and strengthsof the firm along with assessment of all its competitors. Furthermore, the study underinvestigation would be effective to allocate the resources in an optimal manner, to meetthe expectations of all related consumers. Moreover, the study aims to understand thereasoning behind customer dissatisfaction and consider areas of improvement. Finally,appropriate systems to maintain the higher level of customer satisfaction are selectedand applied on the basis of outcome of the investigation so as to maintain the loyalty ofbuyers.1.4 Discussing theoretical or conceptual frameworkThe conceptual framework of current study is based on vivid insights which isdeveloped with the help of use of appropriate source of information. The research shedlight on different models applied to understand the consumer satisfaction along withresearch on getting insight related to their need and preferences. First of all, theconcept of customer satisfaction and loyalty is made clear with the application ofsuitable customer satisfaction model. Here, it has been found that when customers are2
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provided the services and product in accordance with their requirement at the time theirlevel of satisfaction increased (Bowen and Chen, 2001). The model of customersatisfaction shed light on getting the information related to expectations or requirementof buyers and then accordingly take appropriate decision to increase the market shareof the business. This results in increasing the profitability and thus meet theexpectations of buyers effectively.Similarly, customer metrics will be used to get the information related to theirsatisfaction, expectations and brand preferences etc. This provides additionalinformation in supporting current to develop in-depth understanding about the topic.At the same time, decision to stick to particular brand is taken by the buyers.Furthermore, different factors such as quality, price and variety of services areconsidered under the most important aspect through which brand loyalty can beensured. At the same time, suitable mode of communication is also effective which inturn firm effective establish better relationship. Apart from this, customerrecommendation, share of wallet and trend in spending are some the factors which willbe considered for increasing their level of satisfaction and thus its impact on brandloyalty. Moreover, customer brand relationship model will be applied for betterunderstanding about impact of customer satisfaction on brand image of the business. Inthis manner, factors leading dissatisfaction or satisfaction are identified so as to assessits direct relevance with brand loyalty. It proves to be effective for hospitality sector toexplore different areas which requirement improvement in their service quality. Hence,conceptual frame would ascertain varied factors leading satisfaction to consumers andthe consequent development of loyalty towards a particular brand. In this manner,3
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