Business Research Methodology: Brand Loyalty at Hilton Hotel

This report delves into the intricacies of brand loyalty and customer relationship management (CRM) within the context of Hilton Hotels. The study begins with an introduction to the domain, highlighting the evolving landscape of business-to-customer interactions and the increasing importance of customer retention. The rationale for the research is established by focusing on Hilton Hotels' global operations and the competitive service industry. A comprehensive literature review explores the concept of brand loyalty, its influencing factors (brand name, promotion, service quality), challenges, and benefits. The report also examines CRM techniques, factors affecting it (communication, competence, conflict resolution), and their impact on fostering positive customer relationships. The conclusion synthesizes the findings, emphasizing the interconnectedness of brand loyalty and CRM. It highlights how Hilton Hotels leverages CRM to build customer loyalty, increase sales, and gain a competitive advantage. The report references various academic journals and provides appendices with additional information.

Running head: BUSINESS RESEARCH METHODOLOGY
Brand Loyalty and Customer Relationship Management Hilton Hotel
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Assessment Component 1: Literature Evidence review..................................................................3
1. Introduction..................................................................................................................................3
1.1 The domain............................................................................................................................3
1.2 The rationale of the selected topic.........................................................................................3
1.3 The main sources used in the brief........................................................................................4
2. Literature review..........................................................................................................................4
2.1 Concept of brand loyalty.......................................................................................................4
2.2 Factors affecting brand loyalty..............................................................................................5
2.3 Challenges of brand loyalty...................................................................................................5
2.4 Benefits of brand loyalty.......................................................................................................6
2.5 Customer relationship management......................................................................................7
2.6 Factors affecting customer relationship management...........................................................7
3. Conclusion...................................................................................................................................8
References......................................................................................................................................10
Bibliography..................................................................................................................................13
Appendices....................................................................................................................................15
Appendix 1.................................................................................................................................15
Appendix 2.................................................................................................................................16

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Assessment Component 1: Literature Evidence review
1. Introduction
1.1 The domain
In the past, the consumer market have encountered significant changes in business
specially, business-2-customer. Increased competition among the brand has been identified
because of the constantly changing demands and needs of the customers. As mentioned by
Sasmita and Mohd Suki (2015), the brands or the business organizations are focused towards
retaining the existing customers rather than attracting new customers. Hence, business
organizations selling products and services are more indulged in practicing relationship
marketing that influences customer retention by winning them over. According to Zheng et al.
(2015), customers tend to buy products and use services of organizations when a superior brand
name is attached with it. Hence, it has been seen that brand loyalty creates and spreads a positive
spirit amongst the potential customer base. The big brands are more focused towards building a
positive and healthy relationship with the customers as this offer several advantages compared to
attracting new customers each time.
1.2 The rationale of the selected topic
Hilton Hotels is a chain of hotels and resorts operating globally as full service providers
under the flagship of the American multinational company, Hilton. The company was found in
1919 and since then the chain of hotels has more than 500 hotels and resorts operating in almost
85 countries and 6 Union Territories and is considered as luxurious chain of hotels (Hilton.com

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2019). Undertaking the research will be rationalized because this will help in understanding the
how Hilton Hotel have used relationship marketing for building brand loyalty among the
customers across the globe. With such increased competition in the service industry, this
research will help in shedding light on the effective use of customer relationship techniques or
approaches used for building brand loyalty among the customers by critically analyzing the
brand loyalty factors, the benefits and the challenges accordingly (Lee et al. 2015).
1.3 The main sources used in the brief
International Journal of Management Research and Reviews, International Journal of
Contemporary Hospitality Management, Information & Management, Journal of Retailing and
Consumer Services, International Journal of Education and Social Science and Journal of
Consumer Marketing are the journals those have been used for developing the literature review.
Use of these journals helps in developing better understanding about the topic, brand loyalty and
customer relationship management.
2. Literature review
2.1 Concept of brand loyalty
As the term indicates, the loyalty of the customers towards the brand is known as brand
loyalty that is different from that of customer loyalty. As mentioned by Pappu and Quester
(2016), the term brand loyalty is said to be the way a specific brand is perceived by the
customers. Brand loyalty has little to do with price or money of the products or services the
brand is selling and is the distinguishing factor with customer loyalty because it is dependent on
the spending capacity of the target customers. However, as argued by Yeh, Wang and Yieh
(2016), the concept of brand loyalty indicates the mindset of the customers to buy products and

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avail services of specific organizations regardless of the alternatives present in the market. This
consistency of the customers defines their loyalty towards a brand.
2.2 Factors affecting brand loyalty
It is necessary for brands to have brand loyalty and is affected by different factors such as
the name of the brand, brand promotion, service quality and after sales service. As mentioned by
Veloutsou (2015), the name of the brand influences brand loyalty largely because customers
wants to have access to high end and popular brands. This is seen as a social status and self-
satisfaction that they have access to popular brands and are using their products and services.
However, as argued by Zhang, Benyoucef and Zhao (2016), at times the brands are unable to
reflect their products and services in their name because in spite of being a popular brand, their
products and services fail to live up to the expectation of the customers. On the other hand, brand
promotion also affects the brand loyalty. According to Chinomona (2016), brand promotion
influences the development of brand loyalty because advertising the products or services with
authentic contents and pictures has an impact on the customers. However, as argued by Mendez
et al. (2015), the quality of service provided to the customers influences the development of
brand loyalty. This is because the customers want to be treated and valued significantly when
they are availing the services of the brands. Similar is the case for Hotel Hilton, where the
aforementioned factors plays an important role in developing brand loyalty among the customers
(Refer to Appendix 1)
2.3 Challenges of brand loyalty
In spite of being significant, brand loyalty is a difficult thing to achieve. As mentioned by
Bowen and Chen McCain (2015), generating leads is often an issue when it comes to developing
brand loyalty among the customers. Keeping the customers engaged continuously and

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consistently is challenging that gives rise to issues in developing brand loyalty. Even a little
mistake can cost huge for the brands or the business organizations providing services and selling
products. Hence, once the customers taste the mistake, it spreads virally and severe negative
consequences are imposed. However, as criticized by Piehler, Hanisch and Burmann (2015),
targeting the audiences appropriately is also challenging when it comes to successful brand
loyalty. Business organizations struggle to target suitable audiences that lead to loss and hamper
the image of the brand as well, as the customers are left unsatisfied. Additionally, the trust of the
customers is compromised that is reflected in their compromised brand loyalty. In the case of
Hilton Hotel, developing brand loyalty is challenging due to the issues mentioned that lead to
severe consequences.
2.4 Benefits of brand loyalty
Though the brand loyalty challenges are evident, the benefits of having brand loyalty are
significant for businesses. As mentioned by Lin, Lobo and Leckie (2017), brand loyalty provides
opportunities for the business organization to retain the customers. Retaining customers is cost
effective and beneficial for the businesses rather than attracting new customers. This is because
having a customer base that is loyal enables the businesses to rely on them and count on the
return on investment. As a result, the business organizations are rest assured that they have
specific customers who will stick to them regardless of the market and business conditions.
Hence, advantages such as sales increment, revenue generation and profit maximization are
possible without any failure. However, as argued by Zheng et al. (2015), failure in giving
consistent and constant effort by the business organizations makes brand loyalty challenging to
achieve. According to Alhaddad (2015), brand loyalty makes introduction of products and

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services easy because as the customers trust and believe the brands already, the new products or
services are accepted easily as well.
2.5 Customer relationship management
In the past years, customer relationship management has gained huge recognition among
the organizations and brands because of need to relationship marketing have emerged. As
mentioned by Soltani and Navimipour (2016), customer relationship management is defined as
the technique used by organizations and brands to manage the way of interacting with the
existing customers. This helps in developing better understanding about the customer base and
ensuring that their needs and desires are fulfilled. Using the customer relationship approach
suitably enables positive and healthy relationship with the target customers that are beneficial in
the long term. However, as argued by Hassan et al. (2015), customer relationship management
are defined as techniques, approaches and strategies used for establishing and maintaining a
positive relationship with the target customers.
2.6 Factors affecting customer relationship management
Positive and healthy relationship with the current and target customers is a necessity for
the business organizations and brands that is influenced by factors such as effective
communication, competence and friendliness and conflict resolution. As mentioned by Noe et al.
(2017), effective and clear communication between the organizations and the customers
facilitates positive and healthy customer relationship management. This is because both the
parties are able to understand each other and open communication ensures transparency is
maintained as well. However, as argued by Killian and McManus (2015), communication might
also lead to difference of opinions between the customers and the organizations or brands that
become difficult to mitigate. On the other hand, positive customer relationship management is

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facilitated by competence and friendless. The ability of the employees of the organizations or
brands to interact influences relationship marketing because the way of interaction give rise to
empathy and warmth thereby, making them feel significant (Refer to Appendix 2).
3. Conclusion
Hence, in the current literature review, it can be summarized that brand loyalty and
customer relationship management goes hand in hand. The competition in the service industry
has increased manifolds due to the rise of luxurious hotels. Customers prefer luxury stay when
they are visiting any place for different purposes. As known, Hilton Hotel is the chain of hotels
with more than 500 hotels and resorts operating in almost 85 countries and 6 Union Territories.
The hotel has been successful in surviving the fierce and competitive market by focusing on
maintaining a positive and healthy relationship with the customers rather than focusing on
attracting new customers.
From the above conducted literature review, it can be known that brand loyalty among
the customers is of utmost significance and Hilton Hotel is no different. From the past
researches, it can be inferred that loyalty about a brand can be created by effective use of
customer relationship management. Healthy and positive relationship with the customers helps in
developing loyalty in them and is beneficial in the long run. With customer relationship
management, the business organizations use the data about the customers for improving thir
relationships with them. Once the customers are satisfied with the company and the way it
interacts with them, the customers tend to become loyal and drive the sales growth.
Factors such as interdependence, communication, conflict resolution and friendliness are
facilitated by effective customer relationship management approaches that help in developing

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loyalty among the customers. Once brand loyalty is developed, business organizations encounter
increased sales, profits and revenue that help in gaining competitive advantage successfully. As a
result, business organizations or brands are able to count on their return of investment.
Additionally, the loyal customers spread positive word-of-mouth and make referrals that also
offer several benefits to the brands and Hilton Hotel is no different.

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References
Alhaddad, A., 2015. A structural model of the relationships between brand image, brand trust
and brand loyalty. International Journal of Management Research and Reviews, 5(3), p.137.
Bowen, J.T. and Chen McCain, S.L., 2015. Transitioning loyalty programs: A commentary on
“the relationship between customer loyalty and customer satisfaction”. International Journal of
Contemporary Hospitality Management, 27(3), pp.415-430.
Chinomona, R., 2016. Brand communication, brand image and brand trust as antecedents of
brand loyalty in Gauteng Province of South Africa. African Journal of Economic and
Management Studies, 7(1), pp.124-139.
Hassan, R.S., Nawaz, A., Lashari, M.N. and Zafar, F., 2015. Effect of customer relationship
management on customer satisfaction. Procedia economics and finance, 23, pp.563-567.
Hilton.com. (2019). Hotels by Hilton - Book the Best Rates Across All Brands. [online] Available
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Lin, J., Lobo, A. and Leckie, C., 2017. The role of benefits and transparency in shaping
consumers’ green perceived value, self-brand connection and brand loyalty. Journal of Retailing
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