Research Project: Customer Satisfaction in Arena Court Motel, Hamilton

This research project, conducted for a Graduate Diploma in Retail Management student at Wintec, investigates customer satisfaction issues at the Arena Court Motel in Hamilton, New Zealand. The study identifies problems such as lack of online discounts, insufficient and rude staff, and their impact on customer satisfaction. The project employs both survey and interview research strategies, utilizing open-ended and close-ended questions to gather data from customers and employees. The research incorporates customer satisfaction models, including the Kano, Teboul, SERVQUAL, and Expectancy Disconfirmation paradigms, to analyze the issues. The findings reveal significant customer satisfaction issues, leading to recommendations for improvement and an implementation plan to address the identified problems. The project includes a review of best practices, analysis of the data collected, and concludes with recommendations for the motel to enhance its customer service and overall business performance. The research also includes a SWOT analysis, internal and external context, and uses the service marketing concepts. The project is supported by references and appendices containing survey questions, interview transcripts, and other relevant data. The project aims to provide practical solutions to improve customer satisfaction at the Arena Court Motel.

Running head: RESEARCH PROJECT
Customer Satisfaction in Arena Court Motel
Name of the Student:
Name of the University:
Author’s Note:

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
Customer satisfaction is the problem identified for Arena Court Motel in Hamilton, New
Zealand. The need of customer satisfaction is irreplaceable irrespective of the business sector
because customers are the ones that define the success for the business entities. The main issues
found for Arena Court Motel are no online discounts, insufficient staffs and rude staffs thereby,
resulting in customer dissatisfaction. The models used for understanding customer satisfaction
are Kano model of customer satisfaction, Teboul model of customer satisfaction, SERVQUAL
model and Expectancy Disconfirmation paradigm.
Both interview and survey research strategies have been used for investigating the ongoing
research. Open-ended questions for interview and close-ended questions for survey and interview
have been circulated among the customers and the employees in the room of the customers when
they check-in. From the above information, results and analysis, it can be concluded that Arena
Court Motel is encountering severe customer satisfaction issues that is affecting the overall
preference and popularity among the target customers. Customer satisfaction issues in the motel
are resulting in loss of business that is in turn threatening the survival of the motel in Hamilton.

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Table of Contents
1. Introduction..............................................................................................................................5
1.1 Identification of the problem.................................................................................................5
2. Best practice review.................................................................................................................7
2.1 Customer satisfaction.............................................................................................................7
2.2 Factors affecting customer satisfaction.................................................................................8
2.3 Models of customer satisfaction............................................................................................8
2.3.1 Kano model of customer satisfaction.............................................................................8
2.3.2 Teboul model of customer satisfaction...........................................................................9
2.3.3 SERVQUAL model......................................................................................................10
2.3.4 The Expectancy Disconfirmation paradigm.................................................................10
2.4 Issue of customer satisfaction..............................................................................................11
2.5 Impact of customer satisfaction on business.......................................................................11
3. Method and ethics..................................................................................................................12
4. Results....................................................................................................................................14
4.1 Survey analysis....................................................................................................................14
4.2 Interview transcript analysis................................................................................................18
5. Analysis.................................................................................................................................18
6. Conclusions and recommendations.......................................................................................20

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7. Implementation plan..............................................................................................................22
8. Discussion of implementation plan.......................................................................................24
References......................................................................................................................................26
Appendices....................................................................................................................................29
Appendix 1.................................................................................................................................29
Interviews question (Open –ended question)........................................................................31
Appendix 2.................................................................................................................................32
Survey questionnaires (Close Type questions)....................................................................33
Appendix 3.................................................................................................................................36
Interview transcripts..............................................................................................................36

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1. Introduction
Customer satisfaction is a widely researched topic in the past by the researchers because
the role it plays for businesses is inevitable. The need of customer satisfaction is irreplaceable
irrespective of the business sector because customers are the ones that define the success for the
business entities. As mentioned by Agnihotri et al. (2016), having a dissatisfied customer base is
threatening for business organizations because without the customers the organizations cannot
survive the market and lose to the existing competitors.
1.1 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

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 Work pressure
 Negative workplace
Dissatisfied customers
 Dirty blankets
 Missing towels
 Staffs rudeness
 Inappropriate service time
Hence, the problems identified needs to be mitigated for
The potential solutions for the identified problems 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.
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

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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).
2. Best practice review
2.1 Customer satisfaction
When it comes to business, customer satisfaction is a significant aspect to consider. A
business cannot be successful if customer satisfaction does not exist. As mentioned by Izogo and
Ogba (2015), customer satisfaction is defined as the total number of customers a business
organization has whose experience with the organization exceeds beyond expectation. However,
as argued by Kim, Vogt and Knutson (2015), the concept of customer satisfaction indicates the
number of customers those are satisfied with the products or services provided by the business
organizations. Having customers those are satisfied is crucial for the business organizations
because it provides an upper hand from the existing competitors in the market.
2.2 Factors affecting customer satisfaction
Customer satisfaction is affected by wide range of factors those have been of previous
research interests in the past. As employees are the ones serving the customers, their behavior

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and attitudes plays a significant role in determining customer satisfaction. As mentioned by
Bowen and Chen McCain (2015), the behavior and attitude of the employees influences
customer satisfaction. While welcoming the customers, the employees need to be polite,
empathetic, prompt and patient in nature. This allow the employees to have an understanding and
submissive approach towards the customers and offering them with the best. However, as argued
by Ali and Raza (2017), not only the behavior of the employees, the location, interior design,
physical facilities and discounts also influences satisfaction among the employees.
2.3 Models of customer satisfaction
Four different models used in this theoretical framework for understanding customer
satisfaction better are Kano model of customer satisfaction, SERVQUAL model of customer
satisfaction, the expectancy disconfirmation paradigm and Teboul model of customer satisfaction
(Saeidi et al. 2015).
2.3.1 Kano model of customer satisfaction
Kano model of customer satisfaction is one of the most studied models that depend on the
perceived value of the products by the customers and influences their satisfaction level largely.
Kano model of customer satisfaction helps in understanding satisfaction within the customers by
studying the non-linear relationship between customer satisfaction and the performance of the
product or service. The four attributes that forms the model are threshold, performance,
indifferent and excitement attribute (Mkpojiogu & Hashim, 2016).
Threshold attributes: This feature of the model is based on the expectation of the customers in
respect to the service and product sold by them. As a result, this feature is considered as the point

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of parity and product differentiation is restricted. However, enhancing these attributes fails to
ensure customer satisfaction.
Excitement attributes: This feature is not expressed by the customers explicitly.
Performance attributes: This feature is best defined as the factors that is better when more. As
a result, the linear increment needs to be better in respect to customer satisfaction that in turn
minimizes the scope of poor performance.
Indifferent attributes: This feature is distinguished separately and is not categorized in the
above three attributes.
2.3.2 Teboul model of customer satisfaction
Customer satisfaction in hotel industry can be understood by using the Teboul model of
customer satisfaction, as the sub structures of tourism can be understood. This model highlights
the customer needs in circles and squares those are in turn depicted by the services and products
that organizations offer to the customers (Costa, 2015).
(Source: Costa, 2015)

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2.3.3 SERVQUAL model
SERVQUAL model is most widely used for measuring customer satisfaction by
determining the difference between customer expectations and perceptions. This model is based
on seven gaps that arises when the difference between customer expectation and perceptions
become evident (Parasuraman, Zeithaml & Berry, 1985). The seven gaps are listed below:
Gap 1: Difference between the management perception and customer expectation
Gap 2: Difference between management perceptions and customer specifications
Gap 3: Difference between specifications and delivery of the services
Gap 4: Difference between service deliveries and external communications
Gap 5: Difference between customer expectation and perception
Gap 6: Difference between employee perception and customer expectation
Gap 7: Difference between employee perception and management
2.3.4 The Expectancy Disconfirmation paradigm
Expectancy disconfirmation paradigm is one of the most promising theoretical
frameworks for determining satisfaction for the customers. In accordance with this model, the
customers purchase products and use services according to their experiences in the past in
respect to the anticipated performance. In this case, the expectation of the customers becomes the
minimum criteria for the customers to judge the current service and the product. Hence, when the
customers avail the current services and the previous experience is not met, the development of
negative disconfirmation is seen due to the existing issues the organization is facing in terms of
products and services (Boley, McGehee & Hammett, 2017).

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2.4 Issue of customer satisfaction
The needs and demands of the customers keep on changing with time that gives rise to
challenges for the business organizations. This is because the business organizations need to
update and strategize at regular interval for addressing and incorporating ways of fulfilling the
needs of the target audiences. Some organizations fail to do so that gives rise to customer
satisfaction issues (Wilson et al., 2016). Hence, the business organizations need to be proactive
in changing and incorporating the needs and expectations of the customers and implement it
successfully along with making the customers feel valued and significant each time they visit or
purchase from the respective organization (Pantano & Viassone, 2015). Similar is the case of
Arena Court Motel where issues related to customer satisfaction has emerged due to distinctive
issues. Arena Court Motel needs to work towards mitigating the customer satisfaction issues
because it is beneficial for the motel and help the motel in gaining competitive advantage.
2.5 Impact of customer satisfaction on business
The role and contribution that customer satisfaction possesses for business
organizations across all sectors is undeniable. As mentioned by Hill and Brierley (2017),
competitive advantage is one of the significant advantages that customer satisfaction ensures for
the business organizations. As the customers are satisfied, they tend to stick and prefer the
organization irrespective of the alternatives present in the market. Satisfaction create a unique
image in the eye of the customers and make them feel valued for the organization thereby,
influencing their decision of favoring the organization (Kaura, Durga Prasad & Sharma, 2015).
As a result, sales, profit and revenue are generated and maximized. However, as criticized by
Murali, Pugazhendhi and Muralidharan (2016), customer satisfaction is not a consistent thing
and business organizations need to keep on working so that they are aware of the current needs