Customer Satisfaction and Repeat Purchase: Marriott UK Case Study

This report examines the critical role of customer satisfaction in fostering repeat purchases within the hospitality sector, specifically focusing on Marriott International UK. The study delves into the significance of customer satisfaction as a key driver of customer loyalty and its impact on a hotel's performance and productivity. The research explores the methods through which repeat purchases can be encouraged, emphasizing the importance of providing additional value and rewarding loyal customers. The report also analyzes factors that affect customer satisfaction within the hospitality sector, drawing on secondary resources and thematic analysis. The research objectives include analyzing the meaning of customer satisfaction in repeat purchase, evaluating methods to encourage repeat purchase, and ascertaining factors affecting customer satisfaction. The study concludes with recommendations for the hospitality sector, highlighting the importance of customer-centric strategies. The report uses literature review, research methodology, data analysis, and a conclusion to support its findings. The study aims to provide insights into how hospitality organizations can improve their services and enhance customer retention.

Title of the study: “The role of customer satisfaction in
repeat purchase within hospitality sector”.

The role of customer satisfaction in repeat purchase within the hospitality sector: “A case study of
Marriott International UK”.

ABSTRACT
Repeat purchase is the proper mode of depicting loyalty of customers for the company. It has
been observed that instead of having quality products and services, some hotels are unable to retain
the customers due to products and services of competitors. Considering the viewpoints of different
authors and scholars, it can be articulated that the repeat purchase can be facilitated if the hotel is
ready to provide additional benefits to the customers. In such respect, customer motivation and
encouragement is required because that only drives them to re-buy the products and services
consistently.
Apart from this, aspects related to customers have a direct impact on hotel's performance;
thus for such purpose, changes have been implemented in the service facets. Providing additional
and value services to the customers, helps the hotel not only to generate sales but also to augment
the potential of services in competitive scenario. Customers who are doing repeat purchase should
be rewarded frequently so that they can feel valuable. In such context, discounts, schemes and other
offers should be given to the customers so that they can encourage as well towards the business
products and services. From many research studies, it has been evaluated that repeat purchase is the
result of consistent changes and modifications in products and services.
Hospitality industry of UK has been emphasizing on customer satisfaction aspect because
that contributes in growth and success aspects. The study has been prepared with an attempt to
analyze customer satisfaction aspects of hotel Marriott International along with its impact on
performance and productivity of the hotel.

Table of Contents
Chapter 1 – Introduction ......................................................................................................................5
Rationale of the study.......................................................................................................................5
Research Objectives.........................................................................................................................6
Background of the organization.......................................................................................................6
Chapter 2 - Literature Review .............................................................................................................8
Significance of customer satisfaction in repeat purchase.................................................................8
Methods through which repeat purchase can be facilitated..............................................................8
Factors that affect customer satisfaction in hospitality sector..........................................................9
Chapter 3 - Research methodology.....................................................................................................11
CHAPTER 4: DATA ANALYSIS ......................................................................................................14
Research Objectives.......................................................................................................................14
4.1 Introduction..............................................................................................................................14
4.2 Data analysis.............................................................................................................................14
Chapter 5 – Conclusion and Recommendations.................................................................................19
References..........................................................................................................................................20
Significance of customer satisfaction in repeat purchase...............................................................24
Methods through which repeat purchase can be facilitated............................................................24

CHAPTER 1 – INTRODUCTION
Customer Satisfaction is one such aspect that is largely hooked up with quality services
where business entities chiefly emphasizes on delivering prominent services to the clients. In order
to be successful in the market, it is not sufficient to persuade new customers; however managers
must concentrate on retaining existing customers by implementing effective policies (Martins,
2013) Customer satisfaction is directly integrated with repeat purchase which is another way of
depicting loyalty from the customers about the products and services (Smith and Lakhani, 2008).
The present study has been showcasing the role of customer satisfaction in repeat purchase as the
study is emphasizing on hospitality sector.
The main purpose of the study is to examine the role of customer satisfaction in repeat
purchase and for that hotel Marriott International has been taken into account. In such context,
researcher will be emphasizing on secondary resources so as develop the section of literature
review. This section is useful for specifying all the factors that attract customers to acquire services
from the hotel. Customer satisfaction will be measured on the basis of thematic analysis where in
several themes have been prepared on research topic. In the section of methodology, researcher has
discussed the sources through which relevant data has been collected. In the last section of the
study, conclusion and recommendations are stated.
Current research study has been focusing on hospitality sector where repeat purchase
matters the most due to its likely impact on hotel's service provision. Viewpoints of several authors
have been taken into account so as to state the validity of research topic. It has been observed that
customer satisfaction is directly related to hotel's services which further also facilitates service
promotion in other market segments (Carev, 2008). Repeat purchase is another dependent
dimension through which efficacy of services can be ascertained.
Rationale of the study
The present has been made on role of customer satisfaction on repeat purchase and this
particular attempt has been made on hospitality sector. There are various studies which have been
conducted on customer satisfaction; therefore the main purpose behind present study is to ascertain
the link between customer satisfaction and frequent purchasing. From many research studies, it has
been explored that repeat purchase take place only when customers are satiated with the use of
products and services. Thus, the present study has been accenting on interrelationship of all such
facets.
The subject matter has been selected since it has wider scope for data collection. There are
so many analogous topics related to current study; however researcher has selected the one because
of availability of quality information. Subsequent study has been conducted for the purpose of
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ascertaining the attributes through which frequency of repeat purchase increases.
Significance of the study
The subsequent study is important for academic and professional readers because
information about different aspects related to customer satisfaction have been mentioned in the
research. The study has used wide range of sources categorizing in secondary source; this further
increases reliability and credibility of the subject matter. Sufficient information has been included
about the research topic which is beneficial for those researchers who wish to conduct the study on
similar topics related to customer satisfaction and customer loyalty. Thus, it can be said that the
entire research is significant because of use of quality materials. Further, subsequent research study
is also imperative because it is giving valuable recommendations to the hotel and use of such
suggestions could also improve the performance and service capability of hospitality sector.
The study has been conducted for the purpose of highlighting all the role that customer plays
in the hotel. Considering this study, hospitality organizations would be able to implement many
changes in the business services. The study is useful for all those readers who conduct research on
customer's value and beliefs and their impact on business performance. The study is assumed to
have broad scope of success due to aspects included. Hospitality sector has been chosen because
this is the area where actual association of factors (customer satisfaction, customer loyalty, brand
value and repeat purchase) can be determined. The study provides the opportunity to collect data
from secondary source; therefore major topics are selected on that basis.
Research Objectives
Aim: The present research study has been conducted with the aim “The role of customer
satisfaction in repeat purchase: A case study on Marriott International Hotel UK”.
Research objectives
 To analyze the meaning and significance of customer satisfaction in repeat purchase
 To evaluate the methods through which the state of repeat purchase can be encouraged
 To ascertain the factors that affects customer satisfaction within hospitality sector
Research Question
For the present research study research question has been made on the basis of theme of the
research report.
 How effective customer satisfaction is for repeat purchase in hospitality sector?
Background of the organization
Marriott International is an American diversified hospitality company that manages different
hotels and lodging facilities. It has more than 4,087 properties in 80 countries with approx 687,259
rooms all over the entire chain of hotels. Marriott was founded by John Willard Marriott in 1927 at
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the time when he and his wife opened a root beer stand in Washington D.C. The hotel has its chain
in United Kingdom as well with many resorts and restaurants. In Europe, Marriott is represented by
over 300 properties with more than 57,000 rooms across 13 brands. Development is facilitating in
the hotel since 2010 and this exciting growth is being boosted by the launch of new hotel brands.
2014 was comparatively a terrific year for Marriott as the hotel signed agreements for more than
650 hotels (Lowenstein, 2013). Over the past five years, Marriott has experienced an average
growth of 6% but it is also expected to see increased revenue growth in future.
Marriott has been delivering luxury hospitality services to the customers where in all the
services are categorized on the basis of quality aspects. This is one of the influencing aspect which
increases potential of the business entity in competitive market place. At the same time, room
occupancy ratio of Marriott has been increasing due to the prominent services it delivers to the
customers. Customers are deriving services from Marriott on repeat basis because of the satisfaction
ratio. The cost of Marriott's initial investment was estimated to be about $200 million in cash and
assumed debt. Marriott has taken Ritz Carlton as well and the expansion accelerated the market
share of Marriott hotel. Marriott International owned Ramada International Hotels and Resorts and
it is the first hotel chain to serve food that is completely free of trans fats at all of its North
American properties.
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CHAPTER 2 - LITERATURE REVIEW
Serving people is the foremost activity in hospitality and being expertly served is the
reasonable expectation of the guests. Customer service is a broad term encompassing everything
from friendly environment to service delivery. The current research has been emphasizing on role of
customer satisfaction in repeat purchase; thus for such purpose, viewpoint of several authors and
scholars have been taken into account (Belcher, 2015). The statement of Victor (2005), articulates
that customer satisfaction is an indicator to customer loyalty which can be analyzed through
specifying the frequency of repeat purchase. The author in such respect supports the fact by saying
that loyalty is a deeply held commitment to re-buy the product consistently in the future. However
Pang (2009), argued by stating that customer loyalty can be defined as a construct that measures the
probability of service capability at external market place (Customer Satisfaction in the Hospitality
Industry, 2015).
Significance of customer satisfaction in repeat purchase
Customer satisfaction plays essential role in hospitality industry because it provides the
entities with a metric that they can use to manage and improve their businesses. It is a difficult
purpose that can be acquired if all the services are integrated with quality facets (Martins, 2013). To
support the views of Pike (2003), it can be said that customer satiation is a leading indication of
consumer repurchase of the same product. The author also expresses his views by saying that
satisfaction is the best way through which effectiveness of services can be ascertained. Contrary to
this, Stewart (2006) states that in a competitive market place where business competes for
customers; customer satisfaction is seen as a key differentiator (Carev, 2008) However, to contradict
the views, author argued that price is not the main reason for customer churn; but it is actually due
to poor quality of customer service.
To differentiate the above discussion, it can be said that customer satisfaction is crucial to
measure because it is directly linked to existing customer base of the entity (Senker, 2010).
Potential service users always derive services from the same entity and they do not pay
consideration towards availability of substitutes. Victor (2005) believes that customer satisfaction is
the positive emotional state reached by a customer after purchasing a product or service. Customers
are satisfied when they feel they have received at least as much from a buying experience as the
effort they put in purchasing the products directly (Andrews, 2007). Customer satisfaction also
enhances brand value of a product which can further assist in persuading other customers as well
towards the services (Victorino, Verma and Plaschka, 2005).
Methods through which repeat purchase can be facilitated
Repeat purchase is the aspect through which company can enhance its sales and revenue
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ratio and through this, sustainability of the business can be encouraged. It is an apparent fact that
with the help of quality and adequate services, repeat purchase can be facilitated (Mattila, 2001).
The views of Andrews (2007), states that, the most common method through which repeat purchase
can be facilitated is to deliver additional and quality services to the customers. Delivering quality
services helps the entities to enhance the ratio of customer base and through this, end users can also
be retained with the business. To contradict the views, authors has argued that repeat purchase can
be facilitated with the help of developing prominent relationships with the customers. This, to
support the views, author said that customer retention efforts of the business plays most prominent
role in facilitating repeat purchase (Jüttner et.al., 2013).
Positive and motivational attitude of employees towards the customers can also increase the
frequency of sales and along with this, it can contribute in well being of the customers. Moreover,
the views of Martins (2013), can be supported here by emphasizing on the fact that repeat purchase
has a direct relationship with fair and transparent promotion of business products and services
(Stewart and Barlow, 2006). The interest as well as loyalty from the customers can be increased if
adequate and fair advertisements have been promoted by the business entities. Frequency of repeat
purchase can be increased by being actual entity and this can also reduce the probabilities of
customer switching. Thus, on the basis of entire discussion, it can be articulated that repeat purchase
has a direct relationship with company's overall functions (Pike, 2003). Major concern of the
business should be on potential customers as through that, business need not to spend resources on
customer research (Wellington, 2010). Hence, from the discussion, it is clear that customer's needs
are the core aspects through which all the business practices could be managed (Bennett and Thiele,
2004).
Factors that affect customer satisfaction in hospitality sector
Behavior of employees towards customer's doubts and issues should be affirmative because
that affects customer satisfaction. There are various forces that affects customer satisfaction in
hospitality industry and the major one is customer service which needs to be effective unless it
would change the overall scenario of the services capability. The environment of hotel is one of the
other factors which hampers interest of customers (Pang, 2009). Atmosphere of the hotel should be
developed as per the services so that customers can enjoy all types of amenities. The main aim of
hospitality industry is to deliver proper accommodation services; therefore it is vital for the hotel to
integrate all the services in adequate manner so that service provisions of the hotel can help the
customers to get proper experience. All the needs of the customers should be specifically met so
that customers can be encouraged for repeat purchase; however absence of such thing could impact
customer satisfaction. Another factor that influences customer's satisfaction is consideration of time
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factor while delivering the services (Victor, 2005).
On the other hand, inappropriate behavior of staff members towards needs of customers can
also impact service capability which has direct impact on overall service provision. If any hotel
fails to consider opinion of customers, then indirectly the entity shows neutral response to the
clients which hampers customer interest (Merkel, 2010). This also affects promotional efforts from
the customers and alongside it leads to brand switching. Thus, here the views of Carev (2008), can
be supported by saying that along with customer services, internal business practices of hotel also
are responsible in influencing the outlook of end users.
Impact of social media on customer satisfaction and hotel management
Social media is considered as one of the most important sources through which large number
of customers can be persuaded towards the services of the entity. From the views of many authors,
it has been observed that social media enhances the scope of growth and success because it aids the
business entity to aware large number of customers. In terms of impact of social media, it can be
confronted that social media is a platform through which hotel entity can identify the needs and
demands of customers and through which, proper services can be delivered to the clients. With the
help of social media, reach of the company can be expanded and through which, improvements can
be opted in the existing business services. Social media services helps the customers to derive
valuable services from the business entity and through this, services can also be promoted to
different market segments. Today's business organizations have been emphasizing on use of social
media tools so that large pool of customers can be attracted. The businesses have to pay much
efforts to maintain direct contact with the customers so that they can become aware about the new
products and services. This is another way of informing the needs of customers and along with that,
their needs can also be identified at the same time.
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CHAPTER 3 - RESEARCH METHODOLOGY
Introduction
The present research study has been emphasizing on secondary method for the collecting
information from diverse grounds. Service capability of the hotel is also discussed in the study from
the responses of respondents. Thematic analysis has been conducted so as to identify and
comprehend how much quality standards have been followed up for customer satisfaction by the
respective hotel entity.
Basically, two types of themes have been included in the study where in one part has been
emphasizing on customer satisfaction aspect along with perception of customers towards Marriott's
services. Part two of the study has been emphasizing on the ways through which the hotel reaches
the customers and along with this, focus has been made on quality provisions managed by the hotel.
Last part accentuates on demographic factors where in researcher has stated how much the hotel is
concerned about diversity management.
Research methodology is an important part of the research study where in researcher uses
different tools and techniques so that to reach towards the research aims and objectives (Burns,
2008). Thus, according to the views of different scholars, research methodology is a systematic way
to solve a problem as it is science of studying how research needs to be carried out. It is vital for the
researcher to design a methodology for the problem chosen so that actual outcome could be
produced (Manion Cohen and Morrison, 2007). Thus, in the below mentioned section, several
aspects related to research methodology have been included: Sources of collecting data: Data collection is the major aspect that is included in the
research study for the purpose of deriving valid information. Data collection plays critical
role in research study and this can be done with the help of two sources such as primary and
secondary sources. Considering the present study, secondary sources have been taken into
account for the purpose of collecting relevant and germane data regarded with the subject
matter (Creswell, 2013). Thus, to segregate both the categories, under primary resources,
surveys, interviews and group discussion can be included where respondents have to
specify their viewpoints on subject matter. Emphasizing on primary resources helps the
researcher to find out the service capability of cited hotel entity. Contrary to this, secondary
source is also used in the subsequent study in which several books, articles and journals
have been reviewed related to the subject matter (Daniel and Sam, 2011). Research philosophy: Research paradigm is a way of thinking and conducting a research. It
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does not lies under research methodology; but it is considered more of a philosophy that
guides how the research can be conducted. It comprises of various factors such as
individual’s mental model, the way of seeing thing, different perceptions, variety of beliefs
towards reality, etc (Saunders and et. al., 2006). It is necessary for the researcher to
understand the philosophical position of research issues so as to comprehend different
combination of research methods. The categories of research philosophy can be segregated
into two types such as Positivism and Interpretivism and the current study has been using
Positivism philosophy because it is mainly related with observation and experiments to
collect numeric data (Bell, 2010). This kind of philosophical approach understands specific
business situation and it uses small sample. It also evaluates research aspects in detailed
manner so as to comprehend the views of all concerned people. Sampling: Sampling is the technique through which decision related to selection of the
respondent can be taken. This is the best method of determining the people who are selected
for the research study (Clark, 2002). Further, ethical approaches have been considered as
researcher has not disclosed the aspects of research. Further, they are included after
acquiring the relevancy aspects; hence quality sources have been selected for the research
study. Research approach: Research approach is an important dimension in research study since it
aids in conducting the research in effectual manner and through this, minor and major
aspects of the research can be explored. The categories can be divided into inductive and
deductive approach and the present study has used inductive approach because it avoids the
need to develop hypothesis and this further enhances the capability of research studies
(Cooper and Schindler, 2011). However the other category is deductive approach which
provides specific instances from general inferences. Research type: Quantitative and Qualitative are the major categories of research type and
the present study has been using Qualitative technique where in responses have been stated
on the basis of thematic analyis. This particular technique has been taken into consideration
because it aids in making things clear and comprehensive (Crowther and Lancaster, 2012).
Most of the researchers have argued that the use of quantitative technique is higher, due to
easy accessibility. Apparently while developing the study, it is essential for the researcher to
undertake one of the critical decisions that is to select the type of research. Research design: Research design plays crucial role in this section as it is increases the
probability of making the things comprehensive. The categories of research design are
Exploratory and Descriptive and among both the types, the present study has taken
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