BIBM796 Research Proposal: Customer Satisfaction at Arena Court Motel

This research proposal, submitted for the BIBM796 module at Wintec, focuses on customer satisfaction at Arena Court Motel in Hamilton, New Zealand. The proposal begins with an organizational context, providing a SWOT analysis of the motel and identifying key issues impacting customer satisfaction, such as online discounts, staff shortages, and rude staff behavior. Potential solutions are proposed to address these problems. A theoretical review explores customer satisfaction concepts and models, including the Kano model, Teboul model, Expectancy Disconfirmation paradigm, and SERVQUAL model. The proposal outlines the proposed methodology, including ethical considerations, limitations, costs, and a timeline for the research project, which aims to collect primary data to assess customer satisfaction levels. The assignment also includes a detailed literature review and references, covering key concepts of service marketing to provide a comprehensive overview of the project's scope.

Centre for Business
and Enterprise
Assignment Cover Sheet
Assignment Title Research proposal (professional project)
Module Code BIBM 796
Due Date 25 August 2019
Date 23 August 2019
Tutor's Name Bill Grant
Student ID 18467701
Important
Submission of work which is not your own is treated as academic
misconduct and may result in exclusion from Waikato Institute of
Technology. Penalties are identified in the Institute’s Academic Regulations
(a copy is available at the Library).
I certify that this is all my own work, except for those parts identified for which
references have been made.
StudentSignature: Ashima Khurana
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BIBM796 Professional project Ashima Khurana (18467701)

CENTRE FOR BUSINESS AND ENTERPRISE
BIBM796 Professional Project
Assessment Title
Topic- Customer satisfaction
Submitted to
Bill Grant
Submitted By:
Ashima Khuarana (18467701)
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BIBM796 Professional project Ashima Khurana (18467701)

Table of content
1. Organizational context………………………………………………………...4
2. Identification of the problem…………………………………………………..5
3. Potential solutions……………………………………………………………..6
4. The theoretical review ………………………………………………………...7
5. Proposed method ………………………………………………………….......10
6. Ethical implementations……………………………………………………….10
7. Limitations ……………………………………………………………………11
8. The proposed costs…………………………………………………………….11
9. Timeline………………………………………………………………………..12
10. Reference ……………………………………………………………………...13
11. Appendices …………………………………………………………………....14
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1. Organizational context
Customer satisfaction is one of the core areas that influence the success and survival of business
organizations in any sector and retail sector is no different. Retail sector is a service industry
where achieving customer satisfaction is the primary aim for all business entities. Similar is the
case of Arena Court Motel, Whitiora Hamilton, New Zealand, where few issues regarding
customer satisfaction have emerge that have questioned the ability of the motel to ensure success
in the service industry. As mentioned by Saleem and Raja (2014), inadequate customer
satisfaction imposes threats and challenges for business entities and questions their survival in the
business sector. Hamilton has numerous motels out of which Arena Court Motel is one of them.
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Arena Court Motel is located Hamilton in New Zealand and is well known for the service they
provide to the customers when they pay a visit to the area. It is located at 21 Willoughby Street
that is close to Hamilton City Centre, Seddon Park Stadium, Founders Theatre and Claudelands
Event Centre. Supermarkets, restaurants, cafes and casinos are available at walking distance room
the motel. Centre Place, Te Awa and the Base available a short drive away from the motel as well.
In spite of it, the location assures quietness and quality sleep at night with double glazed beds, Sky
TV, free WiFi, heat pumps and air condition and cooking facilities. The check-in time of the motel
is 2:00 pm and the check-out time is 10:00 am. The reception hour is from 8:00 am to 8:00 pm.
Arena Court Motel is the newest motels in Hamilton and opened recently in 2012. The motel has
20 rooms, total 4 employees and 2 managers. The service of the motel is used for business
purposes and visitors prefer the place because the stadium is near and for family business
purposes.
In the following paragraph, SWOT analysis conducted in respect to the motel in order to
investigate their strengths, weakness and opportunities and threats so that customer satisfaction
can be researched.
Strengths
 Motel is very close to the city.
 There is a transport centre nearby,
parking facility available;
supermarket is a minute away only.
 Also, Motel is near shopping centre,
stadium, claudeands event centre is
also near the motel.
Weakness
 Sometime Customers are not
satisfied in regards services.
 Prices are fairly high than other
motels.
 Staffs are not prompt in action.
 Breakfast meal price is not included
in the accommodation.
Opportunities
 Motel operators can provides milk,
juice or water bottles when guests
check in the room.
 They can offer online discount on
special events and to existing
customers.
 They can provide more services for
guests such as dinner and lunch.
Threats
 Presence of similar motel in the
neighbourhood
 Loss of existing customers.
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From the above SWOT analysis, it can be inferred that Arena Count Motel have their own set of
positives but those are not enough compared to the weakness the motel possess and the threat that
comes along with it. Hence, the motel needs to work seriously on customer satisfaction, as
competition among the motels is tough in Whitiora Hamilton, New Zealand.
2. Identification of the problem
Customer satisfaction is the problem identified for Arena Court Motel in Hamilton, New
Zealand. The different issues at the motel are listed below:
The motel does not provide online discounts
 Low perceived value
 Untrustworthiness on the customers
 Defer price conversation
Insufficient staffs
 Lack of permanent employment
 Challenging workplace
 Lack of organizational benefit
 Job insecurity
Rude staffs
 Inappropriate training
 Work pressure
 Negative workplace
Dissatisfied customers
 Dirty blankets
 Missing towels
 Staffs rudeness
 Inappropriate service time
Hence, the problems identified needs to be mitigated for
3. Potential solutions
In order to solve the identified problems in the previous section, the potential solutions are
listed below.
Problem: The motel does not provide online discounts
Solution: Arena Court Motel can overcome this problem by offering discounted rates during
the peak seasons. This will attract the customers during the peak season, as the customers will
feel benefitted as they have to pay less compared to other motels in the area.
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Problem: Insufficient staffs
Solution: This problem can be overcome by recruiting adequate number of staffs along with
developing a suitable workplace so that the staffs feel at home and enjoy while offering service
to the customers. Moreover, additional benefits such as incentives for working extra hours and
conveyance options can also be provided for maintaining decent number of staffs in the motel.
Problem: Rude staffs
Solution: Arena Court Motel can overcome this problem by subjecting the employees to
training at regular interval. This will allow the staffs to learn how to handle pressure as well as
communicating with the customers in such a way that their need is understood efficiently and
services can be arranged accordingly.
Problem: Dissatisfied customers
Solution: Arena Court Motel can overcome this problem by ensuring the basics in their motel
are not at fault so that when the customers enter the room for the first time their basic needs are
not compromised. Before the customers check-in, the staffs of the motel can visit the room
once for checking whether everything is alright or not and if not those things can be placed
appropriately (Orel & Kara, 2014).
4. The theoretical review
 Concept of customer satisfaction
Customer satisfaction is a key attribute for business entities and is measured as CSAT. According
to Preko, Agbanu and Feglo (2014), the concept of customer satisfaction highlights the total
number of customers a firm possess whose reported experience exceeds the specific satisfaction
goals. It is considered as the key performance indicator for the business organizations in each
sector and industry. Having a satisfied customer base is necessary for the business organizations
because this provides competitive advantage because of being the most preferred one among the
competitors in the industry sector. However, achieving customer satisfaction constantly comes
with own set of challenges and lacks consistency.
 Models of customer satisfaction
Kano model of customer satisfaction
The Kano model of customer satisfaction is based on the attributes of the products those are
perceived by the customers in that way, leaving an impact on the level of their satisfaction. These
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attributes are important because the final decision taken by the business organizations about
offering service is guided accordingly. Kano’s model is helpful because this help in determining
the non-linear relationship between performance of product or service and customer satisfaction.
Kano’s model of customer satisfaction is based on three attributes that includes threshold attribute,
performance threshold, indifferent attribute and excitement attribute (Mkpojiogu & Hashim,
2016).
Threshold attributes: This attribute highlights the expectation of the customers and thus are
mandatory for products or services. This attribute act as a point of parity and does not provide an
opportunity for product differentiation. However, in contrast, it is argued that improving these
attributes does not guarantee increased satisfaction among the customers but might add cost to the
service necessarily.
Performance attributes: Performance attribute is defined as the ones for which more is better.
Therefore, better and effective fulfilment influences linear increment in terms of customer
satisfaction thereby, decreasing poor performance.
Excitement attributes: The customer do not express these attributes explicitly and are generally
not expected by the customers.
Indifferent attribute: This attribute consists of some features of the products or services that does
not fall into the above three categories.
Teboul model of customer satisfaction
Teboul model customer satisfaction model is highly appropriate for the hotel industry
because this helps in providing necessary sub structures for tourism. According to this model, the
needs of the customers are presented in circles and squares further depicted by the services and
products offered by the selected organization (Costa, 2015).
(Source: Costa, 2015)
The Expectancy Disconfirmation paradigm
This model is the most promising theoretical framework for assessing customer
satisfaction. According to this model, it customers reward services and buy products based on
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previous experiences and expectations regarding the expected performance. As a result, the
expectation level becomes a set standard against which the customers judge the current service
and product. Thus, when the present service is availed by the customers and the previous standard
is not met negative disconfirmation is formed due to the existing issues the motel is facing (Boley,
McGehee & Hammett, 2017).
SERVQUAL model
SERVQUAL model is another most widely practiced model for measuring customer
satisfaction where the difference between the customer expectation and perception is measured
that highlights the primary reason of the difference that arises. This model focuses on the seven
gaps based on which the difference between customer expectation and perception is measured that
helps in understanding the customer dissatisfaction. In this case, the existing issues of Arena Court
Motel highlight the gap between customer expectation and perception that in turn investigates the
primary reason of dissatisfaction among the customers (Parasuraman, Zeithaml & Berry, 1985).
The SERVQUAL model is based on seven gaps that come up between the customers and
the business organizations. The model uses five dimensions for measuring the level of satisfaction
among the customers. The five dimensions include tangibles, assurance, reliability, responsiveness
and empathy. The seven gaps that help in measuring customer satisfaction are listed below:
Gap 1: This gap is created between the perception of the management and the expectation of the
customers.
Gap 2: This gap emerges when the perception of the management fails to meet the specifications
of the services due to which the customers leave the motel dissatisfied and disheartened.
Gap 3: The third gap emerges if gap exists between the specifications and delivery of the service.
In this case, the organizations have kept hidden information those are revealed later to the
customers thereby, leading to dissatisfaction.
Gap 4: The gap between the service deliveries and external communication give rise to the fourth
gap.
Gap 5: The fifth gap emerges because the expectation and the perception of the customers do not
meet. This is because the customers visit the hotel with some expectations that remains unfulfilled
when they pay visit to the motel.
Gap 6: The sixth gap arises due to difference between perception between employees and the
expectation of the customers.
Gap 7: The seventh gap arises due to difference between the perception of the employees and the
management due to which the service provided to the customers are compromised.
Factors affecting customer satisfaction
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Customer satisfaction in service industry is difficult to achieve because of the vastness of
the needs and demands of the customers that keeps on changing. As mentioned by John and
Roitimi (2014), the behaviour of the employees affects customer satisfaction largely because the
employees are the ones representing the company. Rude and lack of prompt behaviour from the
employees make the customers feel unwanted and insignificant thereby, leading to customer
dissatisfaction. However, as argued by Namasivayam, Guchait and Lei (2014), hidden information
about the company also results in customer dissatisfaction because the customers feel cheated
when information are revealed later on.
Issues in achieving customer satisfaction
The distinctive needs and demands of the customers with a specific target audience make it
difficult to achieve customer satisfaction that's why changing the products and services offered for
each of the customers is difficult and challenging. In addition to, the constantly changing demands
of the customers also makes it difficult for business organizations to satisfy the customers. This is
because with changing trends, the business organizations also have to modify and upgrade the
policies they used to offer previously.
Methods of improving customer satisfaction
Treating each customer visiting the organization as a VIP will help in reducing customer
dissatisfaction. This is because the employees will feel valued and significant for the business
organizations and will recommend it to others for availing the services or products. Additionally,
taking feedback regularly from the customers and studying the compliments and the complaints
shared by the customers will help in identifying the issue that they organization is facing followed
by overcoming them by developing suitable strategies. Moreover, offering personalized services to
the customers when needed is also an effective method of improving customer satisfaction
(Wilson et al., 2016).
5. Proposed methods
For this study, positivism philosophy, deductive approach, descriptive design and survey
research strategy will be used. Positivism philosophy will help in supporting the data obtained
in terms of customer dissatisfaction in Arena Court Motel with statistical evidence and facts
and logic. Deductive approach will facilitate referring the information, concepts and theories
about customer satisfaction and developing better understanding about the significance it
imposes for business organizations across different business sectors including Arena Court
Motel. Descriptive design will help in identifying the issues those have led to customer
dissatisfaction for Arena Court Motel and the reasons that led to customer dissatisfaction
issues for the motel.
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Interviews and Survey research strategy will help in collecting the opinion of the customers
regarding the reason of dissatisfaction of Arena Court Motel. For the research samples will be
selected using convenience sampling that is a type of non-probability sampling technique.
Convenience sampling will be best suited because this will allow selecting the most
appropriate ones for understanding the current situation in the motel. For survey 50 customers
of Arena Court Motel will be selected for knowing their reasons of being dissatisfied upon
visiting the place. The questionnaire will have 20 questions based on reasons of customer
dissatisfaction and will be asked to the customers of the motel. And for the interviews total 5
numbers of participants are selected, there will have 2 employer and 3 employees. There will
be 6 to 10 questions will be asked by interviewer. The data will be collect at Arena court
motel. Thus, primary data collection process and mixed method analysis technique will be
appropriate in interpreting the opinions of the customers about dissatisfaction. The relationship
and impact of customer satisfaction and business will be analyzed using by interpreting the
interview transcripts (Mackey & Gass, 2015).
6. Ethical implications
Ethics is crucial in determining the success of the overall research. As survey is selected as the
research strategy, certain ethics need to be followed for completing the research successfully.
The survey data needs to be collected unanimously in this manner, keeping the identity of the
respondents and the data shared by them confidential. This enriches the quality of the research
by eradicating the chances of conflicts. Additionally, the data also needs to be stored securely
so that leakage and disclose is prevented.
7. Limitations
There are potential limitations those are associated with this research that restricted the smooth
progress of the work largely. The potential limitations of the study will include timing of the
study, time and financial resources. Having limited budget for conducting the entire research
within the proposed time will be a limitation because it will restrict the researcher to spend on
things those were identified as necessary while working on the research. On the other hand,
time will also act as a limitation for this research. As the researcher will have to complete the
entire research within the proposed timeline, limited opportunities to meet with the supervisor
and spending more on researching will be minimal.
8. Proposed costs
The proposed cost of the entire research project is furnished below:
Budget category Total budget requested
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Photo copy $40
Indirect cost $40
Total $80
9. Timeline schedule
Research Project Milestone to be
completed
Time Completed
Beginning of the course 20th July 2019
Selection of project proposal topic 1st August 2019
Discussed the topic and literature review 16th August 2019
Draft of introduction and literature review 23th August 2019
Submit the draft 25th August 2019
Research methodology and survey
questionnaire approval
30th August 2019
Final Proposal submission 9th September 2019
Data collection and analysis 17th September 2019
Discussion, conclusion and recommendations 22nd September 2019
Grammar, Spelling and referencing checking 29th September 2019
First draft of the research project completed 1st October 2019
Preparation for ppt and draft of ppt 5th October 2019
Final Research project presentation 23th October 2019
Final research project submitted 5th November 2019
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