Cornell SHA522: Evaluating Business and Customer Factors Assignment

This marketing assignment analyzes business and customer factors within the context of a new service concept—a loyalty card scheme for the hotel industry. The assignment begins with a situation analysis, examining micro forces such as the service concept itself, the company's value proposition, competitive advantages, and collaborators like banks and restaurants. It then delves into macro forces, selecting and researching sociocultural, technological, and economic factors, and assessing their impact on marketing efforts. Finally, the assignment analyzes consumer behavior, identifying target customers, group and individual factors influencing buying decisions, and strategies for fostering positive customer experiences and managing expectations and complaints. The student utilizes various sources to support their analysis and recommendations. This assignment demonstrates an understanding of the marketing planning process and factors affecting marketing decisions.

Reading Head: EVALUATING BUSINESS AND CUSTOMER FACTORS
0
Marketing
January 24
2020
In this abstract different marketing concepts has been discussed
which can affect hotel industry.

EVALUATING BUSINESS AND CUSTOMER FACTORS 1
Module 1: Performing a Situation Analysis of Micro Forces
The Service Concept Notes
Briefly describe the service concept. Loyalty Card Scheme is introduced as a
service concept because every customer
wants value of their stay. And if they will get
best services with some of the loyalty points
in their cards in the form of cash back and
they can also avail many free or discounted
services by using this card and that’s the
reason which will attract many customers
towards this scheme. They will also do
indirect marketing in form of informing
about this scheme to their friends and
relatives. Because receiving best services
with fewer prices is the requirement of every
customer (Groucutt, Leadley, & Forsyth,
2004 ).
Your Company Notes
How will your company create value in the
context of this service concept?
Satisfied customers will always help in
creating value of the service concept (Stark &
Stewart, 2018). Value can be also be created

EVALUATING BUSINESS AND CUSTOMER FACTORS 2
by creating innovative social Media
advertisement. Hotels are the place where
people gatherings are common and if they
will get special packages for group events it
will be a great option for them. This will
create more value as many people will do
indirect marketing of such schemes offered
by hotels.
How does this service concept create a
unique competitive advantage for your
company?
This idea will create unique advantage for
hotel because the benefits of this card will
retain customers mind to repeat their
purchase. Loyal customers of hotel will get
additional discount on service they will avail
and this will influence the mind of customers
to be loyal.
Your Competitors Notes
Who are direct competitors of this service?
What is their offer?
1. Four Seasons Resort Hualalai is
giving offers on room and they are
giving resort credit up to USD 200 to
their customers.

EVALUATING BUSINESS AND CUSTOMER FACTORS 3
2. The Peninsula Chicago they are
providing discounts to their loyal
customers. They are targeting rich
businessmen.
Who are indirect competitors of this service?
What is their offer?
There are many indirect competitors of hotels
and tis scheme such as community centers,
community hostels, private homes, and
zostels.
All these also provide offers on banks card
and they offer some percentage of cash back
on entire amount. They are considered to be
big competitor of hotels and loyalty card
scheme.
How can this concept erode any competitive
advantage your direct and/or indirect
competitors might have?
This concept can erode competitive
advantage because most of the hotels and
other indirect competitor are providing offers
on rooms/ stay but loyalty card provide many
facilities such as gym, club, spa, swimming
pool and many more. Loyalty card will also
provide discount on food and beverages. And

EVALUATING BUSINESS AND CUSTOMER FACTORS 4
loyalty card will also provide some additional
discount or gifts to their loyal customers.
Your Collaborators Notes
Who are the collaborators (key stakeholders
external to your company) that will provide
inputs to this service offering?
What are their inputs?
Banks, restaurants, spa centers are the
collaborators which will provide their input
in this service. Their inputs is that they will
offer discount to loyalty card user.
How will your collaborators contribute to
value creation?
Collaborators are contributing in value
creation by offering discounts to card user
and then those customers will indirectly
contribute in marketing of the hotel.
Collaborators will also advertise about these
schemes on social media or by putting
hoardings. It can be beneficial for hotel as
well as for them because if customers are
satisfied they will also help in indirect
marketing of their as well.
Module 2: Performing a Situation Analysis of Macro Forces
The Macro Forces
Select any three of the following macro forces to focus on for the remainder of this activity:

EVALUATING BUSINESS AND CUSTOMER FACTORS 5
 Economic
 Demographic
 Sociocultural
 Technological
 Natural
 Political/Legal
Research each macro force you select and be prepared to provide the source for your answers
to questions, below.
For example, if you believe economic forces will affect your organization, find an economic
forecast online and apply it to your organization.
Questions Notes
What is the first macro force you have
selected?
Macro Force #1: Socio Cultural
How will Macro Force #1 affect marketing
for your service concept?
Socio-cultural factor will affect marketing of
this product because lifestyles of people have
changed with time. And by availing this card
they can avail those services in fewer prices.
What is the source of your answer to the
previous question?
(IMI, 2018).
How Loyalty Programs Benefit Hotels
This source has impacted above answer
because it is mention that lifestyle of people

EVALUATING BUSINESS AND CUSTOMER FACTORS 6
Provide a hyperlink, title, and very brief
description of the source and how it impacted
your answer.
are changing and there are some loyal
customers of hotel can avail these benefits for
future use. It is also mention that new
marketing ideas can bring energy in hotel as
it helps in creating new customers.
How will you proactively monitor and adapt
your marketing efforts to deal with Macro
Force #1?
Social culture is being changing and so does
the needs and requirements of people are also
changing. This card will help people in
availing quality services at lower price. And
by proper marketing (Kakazoukis , 2011).
What is the second macro force you have
selected?
Macro Force #2: Technology
How will Macro Force #2 affect marketing
for your service concept?
Technology is used to enhance loyalty
customers. It can also help in improving
service, efficiency, and profitable. Loyalty

EVALUATING BUSINESS AND CUSTOMER FACTORS 7
cards are also digital and it will help in
transforming hospitality industry.
What is the source of your answer to the
previous question?
Provide a hyperlink, title, and very brief
description of the source and how it impacted
your answer.
(Lee, Barker, & Kandampully, 2003)
Technology, service quality, and customer
loyalty in hotels: Australian managerial
perspectives
In this abstract it is discussed that how
technology has affected hospitality industry.
And it also helps in fulfilling current needs
and requirements of the customers.
How will you proactively monitor and adapt
your marketing efforts to deal with Macro
Force #2?
Technology is the factor which will influence
youth conveniently. And hence, it will also
help in creating awareness in market about
this marketing product.
What is the third macro force you have
selected?
Macro Force #3: Economic
There are many new concepts in the market

EVALUATING BUSINESS AND CUSTOMER FACTORS 8
How will Macro Force #3 affect marketing
for your service concept?
such as hostels, community centers, private
homes, community rooms and many more.
This all can result on national income of the
country because hospitality and tourism is the
main source of earning. Hotels are
constructed to show hospitality of a country
to its tourist. But because of competition in
hotel industry there is effect on national
income as tourist can book other options
rather than opting for hotel.
What is the source of your answer to the
previous question?
Provide a hyperlink, title, and very brief
description of the source and how it impacted
your answer.
(Petersen, 2019)
Uncontrollable Variables That Affect the
Hospitality Industry
In this discussion it is mention that what the
external factors which are affecting hotel
industry are. There are many factors which
are given such as Social Media and Blog,
Comparison Shopping, Home sharing,
Climate and environment factors.
How will you proactively monitor and adapt
your marketing efforts to deal with Macro
Loyalty cards will provide overall advantage
to its customers. It is not only providing

EVALUATING BUSINESS AND CUSTOMER FACTORS 9
Force #3? discounts on stay it is also providing heavy
discounts on other luxuries. Loyal customers
will also be eligible to get hotel membership
at discounted rate. And by proper advertising
of this product it will help in creating new
customers.
Module 3: Analyzing Consumer Behavior
Questions Notes
Describe the target customer(s) for your
proposed service concept.
Target customers of this marketing
scheme are youngsters because this
card is especially designed to provide all
luxuries to its loyal customers at
discounted rates and lifestyle of youth
has hanged a lot with time and this card
will able to fulfill all their requirements at
low rates. This card has all facilities
which will give best experience to its
youth customers.
What group factors might affect the
buying behavior of your target customers
for your proposed service?
There are many factors which can affect
buying behavior of customers such as
group influence, Personal preference,

EVALUATING BUSINESS AND CUSTOMER FACTORS 10
Personality factors, Cultural trends and
many more. Customer will buy product
which their preference.
Place is also a factor which can influence
behavior of customer because if they
only visit occasionally to those places
they may not be interested in buying
loyal cards.
What individual factors might affect the
buying behavior of your target
customers?
Every individual have difference of
opinions and this is the main reason
which can affect buying behavior of an
individual. This card includes benefits
which are required by majority of people
but there are some people who may
have difference of opinion.
How will your marketing efforts foster a
positive mood/experience for your
customers?
Loyalty card will help in creating positive
experience for customers as they will get
services according to their expectations
and that also at much fewer prices than
others. They can also give suggestions
to hotel management for improvement so
that those things will not be repeated
next time.

EVALUATING BUSINESS AND CUSTOMER FACTORS 11
What expectations will you set with the
customers and how will you manage
those expectations?
The hotel will do market research and
analyze the expectations of its target
customers and then with that expectation
they will set their standards. Hotels will
include all the necessary factors which
are the main requirements of their target
customers. Hotels will take best efforts to
provide best service to their customers.
How will you manage customer
complaints?
Customer feedback is the most important
aspect as it will help hotel to improve its
qualities and services. Hotel will also try
their level best to update or improve their
services according to the feedback of
their customers. And if there is any
complaint of urgent improvement that will
also be taken of care by hotel
management.