Examining NFC Technology's Impact on Hotel Customer Purchases

This research proposal examines the impact of Near Field Communication (NFC) technology on the purchasing behavior of customers in 3-star hotels. The study aims to identify changes in consumer behavior due to NFC adoption, focusing on how this technology influences guests' booking and service usage decisions. The rationale highlights NFC's increasing importance in the hospitality sector, particularly in enhancing customer experience and streamlining services. The research questions explore the positive changes expected from NFC in relation to customer purchasing behavior. The objectives include assessing NFC's use in attracting customers, examining its impact on purchasing behavior, and evaluating its effects on hotel profitability. The literature review covers NFC's applications, benefits, and impact on hotel operations, including its role in mobile marketing, enhanced security, and multi-application support. The methodology section outlines the research approach, data collection methods, and analysis techniques, including the use of deductive reasoning, primary and secondary research, quantitative data analysis through structured interviews with managers, and probabilistic sampling. The study intends to provide valuable insights into how NFC technology can be leveraged to improve customer satisfaction and drive business success in the hotel industry.

RESEARCH PROPOSAL

TABLE OF CONTENTS
TITLE - “ Impact of NFC technology on the purchasing behaviour of customers in 3 start
hotels”..............................................................................................................................................1
TERMS OF REFERENCE .............................................................................................................1
Research Aim –......................................................................................................................1
Rationale.................................................................................................................................1
Research question -.................................................................................................................2
Research Objectives -.............................................................................................................2
RELATION TO PREVIOUS RESEARCH.....................................................................................2
Literature Review ..................................................................................................................2
METHODOLOGY..........................................................................................................................5
RESOURCES .................................................................................................................................7
REFERENCES ...............................................................................................................................8

TITLE - “ Impact of NFC technology on the purchasing behaviour of
customers in 3 start hotels”.
TERMS OF REFERENCE
Research Aim –
“The aim of this study is to identify the changes affecting consumer behaviour in hotel
industry due to innovation technology- A study on the adoption of Near Field Communication
(NFC)”
Rationale
Technology is a most powerful component in the present businesses where it represents
the most significant factor of business environment. The development of technologies in today's
world has entirely changed the undertaken functions and activities of the companies operating in
hotel industry (Jackson and Zang, 2015). The current research is in context to the hospitality
sector of UK, with a special consideration of 3-star hotels and their adoption of NFC technology
to positively influence the buying decisions of guests and users. Innovative technologies have
greatly influenced the purchasing behavior of consumers where people are highly affected by
various innovative technologies used by hotels nowadays. This involves service automation, self-
serve service, fixed-mobile convergence, guest apps, battle for bandwidth etc., (Ko, 2017). NFC
is thereby found to be one of the most effective innovative technology to be used to positively
affect the purchase decision of customers approaching today’s modernized businesses. It together
necessitates the 3- star hotels to adopt this technique as a way of applying several progressive
measures to provide advanced services to the guests and visitors (Chan, Okumus and Chan,
2017). A vital cause behind choosing this research area is to get some supportive evidence about
NFC and its gainful application in the business. With a special reference to its usage in the 3- star
hotels operating in hospitality sector, NFC is expected to provide a rewarding platform to attract
a large set of consumers. There are various changes or trends which are observed in the hotel
industry due to an increasing use of new and innovative technologies. Therefore, this research
has chosen to study and examine the impact of NFC in favorably affecting the purchase decision
of consumers who regularly book the services in 3- star hotels (Brignall, 2017). The researcher
will examine the use of NFC in hotel industry that attracts more and more customers by together
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providing them an ease in booking their stays and use advanced facilities by effectively adopting
NFC technology (John, 2018).
Research question -
“What positive changes of NFC are expected on the purchase behaviour of customers in relation
to 3-star hotels?”
Research Objectives -
1. To assess the use of NFC in hospitality industry for attracting a large set of customers in
3- star hotels.
2. To examine the way in which provisioning NFC based services positively impacts upon
the purchase behaviour of customers.
3. To evaluate the outcome of NFC enabled services on the profitability of 3-star hotels.
RELATION TO PREVIOUS RESEARCH
Literature Review
According to Sugita, Mugiraneza and Yamagishi (2018), Near field
communication(NFC) is an hugely popular technology that seems to become a permanent and
long lasting element in the hospitality industry. NFC helps in exchanging data or information
between two or more devices securely and without any need of wires, for example –
Smartphones nowadays are produced with proper hardware for NFC installed. It has also been
observed to have many other uses including in maintenance, transportation and trade. On the
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other hand, Near field communication(NFC) is taking mobile marketing to another level. The
short range wireless RFID technology is effective in bringing consumers and marketers
altogether as it provides the way for instant exchange of ideas, data and content. Data or
information on purchasing behavior collected through NFC exchanges will allow marketers to
more effectively target as well as deliver the right kind of content to appeal and engage with
users. It will also make it very easy to manage and promote customer loyalty and programs
related to rewards. In addition to this consumers will no longer require to carry reward coupons
and cards. People will also be able to spread word about incentives automatically and deals on
social media networks though automatic NFC enabled sharing. The NFC technology also has a
wide range of other applications that could be far reaching, influencing the way business is done
for transit systems, banks, ticketing outlets, healthcare providers and more. It could also be
utilized for providing things such as electronic key-less entry. The potential for enhanced
revenue and decreased expenses makes this technology very much appealing for various types of
organizations.
Reasons for switching to NFC
Hotels all around the world are using cards with magnetic strips as room keys, they are
easy to use and inexpensive. But these cards have serious limitations when it comes to security,
they can be erased, leaving guests locked out and are highly vulnerable to being forged or copied
which can lead to unwanted outcomes or consequences. There are three main reasons for which
hotels are using NFC -
Multi-application support – NFC is designed in order to support multiple applications in one
devices or card, so a single device or card can be utilized to open doors, earn loyalty points,
make payments access a rental car, rent a bike, access local public transportation and more.
Hotels can increase guest experiences through many services and can also pursue cross branding
opportunities to expand their offering (Keymolen, 2017). Since NFC based devices and cards can
be organized multiple times for various functions, add-ons can be earned through rewards
programs or paid subscription and the card system.
Form-Factor independence – NFC cards, wearables and smartphones can all be processed
through infrastructure devices for example devices in the similar manner. This facilitates the co-
existence of various form factors creating the integration of a mobile device or loyalty card much
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simpler. Instead of dealing with multiple technologies, hotel operators and solution providers can
focus on their main goal or objective which is customer satisfaction. The smartphone application
or wristband can be configured for partner services for discounts at shops, local restaurants,
museums, sporting venues, amusement parks and other attractions.
Higher security – As NFC is based on contact less smart card technology, it is designed for
scalable security. NFC devices and cards supports a wide range of globally accepted solutions
against common challenges -
 Mutual Authentication is utilized in order to establish a trusted communication channel
between the lock and device or card.
 Message Authentication code protects each message in a interaction or communication
process.
 Data Encryption is utilized for protecting information or data on the contact less interface
from eavesdropping.
According to Suhartono, Karya and Candra (2017), NFC tags can be configured for
providing instant access to a Wi-Fi network without the requirement of any kind of password. By
placing a single or multiple tags in the common areas or rooms each and every individual could
obtain access to the network by juts getting their smartphone near to the tag. NFC also make
payments easier in the hotels, with the application linked to the credit or debit card, customers
can use their smartphones to the contact less terminal at the checkout and make their payment
instantly with no pic or card needed.
Impact of NFC enabled services on profitability of 3 star hotels
According to Keymolen (2017), NFC's is increasingly used in hotels due to their ability
to obtain data or information from various sources. It also helps in sharing information between
different devices. Such as Two NFC enabled phones can communicate with one another is they
are in close proximity. It is similar to exchanging business cards. NFC services helps guests to
receive their room keys prior to their arrival at hotels on their NFC phone via text message. It
increased customer experience and satisfaction. People seek for obtaining satisfactory services,
therefore providing these services through NFC technology helps to attract more and more
customers that leads to increase in sales and profit of hotels. Guests can also check out their
room using their NFC phone through NHFC enabled TV in the hotel rooms or Kiosk. These
services highly attract customers to stay at 3 star hotels who are using NFC enabled services.
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The above literature concludes that NFC enabled services in hotels highly attract
customers that leads to increase in sales and profitability of the 3 star hotels. Development of
technology in hotels helps to improve customer experience and satisfaction level. Hotels use
NFC enabled services due to various positive aspects such as Multi-application support Form-
Factor independence, Higher security etc. In order to identify the positive impact of NFC on
customer behavior in hotels the literature provides essential information that summaries that
NFC enabled services has provides many benefits to the guests in 3 star hotels.
METHODOLOGY
There are various research methods or techniques use in a research for collecting,
analyzing and interpreting the data or information related to the topic or subject of research. In
the present research examiner will use the following research methods to identify the impact of
NFC on purchasing behavior of customers in 3 star hotels.1. Research approach –There are two types of research approaches, Inductive and
Deductive, in the present report deductive approach is used because it determines and
explain various kinds of possibilities related to a particular group of people.2. Primary and secondary research – There are two types of research method to conduct a
investigation primary and secondary. Primary includes questionnaires, surveys or
interviews with people and secondary research includes literature3. Qualitative and Quantitative – Quantitative data refers to the information about
quantities and can be measured and written down with numbers. On the other hand
Qualitative data is related to observation which deals with information which can be
observed with our senses, touch, smell, hearing etc. In the present report quantitative
technique is used to collect numerical values regarding the topic through questionnaire
that is accurate and easy to measure.
4. Data collection – Data collection is one of the most essential method in any research or
study, this method helps in collecting most appropriate data or information related to the
subject or topic of the research (Lebow and et.al., 2018). There are two types of data
collection methods primary and secondary data collection. Primary data collection refers
to the gathering data or information through various primary sources such as interviews,
questionnaire, surveys etc. On the other hand secondary data collection method refers to
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various secondary sources of data or information such as previous studies, books,
journals and articles related to the subject of the research undertaken.
 Structured interview – There are two main types of interview methods structured and
semi-structured, structured interview consist same questions for all the participants and
semi-structured interview includes random questions for each participant. In the present
report researcher will use structured interview to collect data related to specific subject. Focus group – The focus group refers to individuals who will be selected for a interview
or questionnaire. In the present research managers will be the focus group as they can
provide maximum and most reliable information related to NFC services in the hotels.5. Sampling methodology – In order to collect primary data through questionnaire
researcher will select specific group of individuals that refers to sampling. There are two
types of sampling methods used in a research to select the participants, probabilistic
sampling and non-probabilistic sampling. Probabilistic sampling method refers to a
technique in which group of participants have the possibility of getting chosen for the
data collection. On the other hand Non-probabilistic data refers to the method in which
sample or group of individuals in primary data is selected randomly (Walsham, 2018). In
the present research examiner has used probabilistic sampling by choosing 10 managers
in 3 star hotels.6. Data analysis – Data analysis is also an important research method used to examine the
collected data or information to find out more meaningful results. In the present research
examiner has use thematic analysis method in order to understand and present the data or
outcome effectively.7. Presentation of your findings – The data and results will be presented using graphs and
interpretations so that it can be easy to understand.
8. Ethical considerations -Ethical Considerations can be specified as one of the most
essential elements of a study or research for example -
 Research participants should not be subjected to harm in any ways whatsoever.
 Respect for the dignity of research participants should be prioritised.
 Privacy of data or information etc.
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RESOURCES
In order conduct the research examiner has used various necessary resources such as
internet, laptop, time, books and other equipment for collecting primary and secondary data
related to the research. These resources are very essential to collect, analyze and interpret data
related to the research or investigation.
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REFERENCES
Books and Journals
Chan, E.S., Okumus, F. and Chan, W., 2017. The applications of environmental technologies in
hotels. Journal of Hospitality Marketing & Management. 26(1). pp.23-47.
Jackson, K. and Zang, W., 2015. Evaluating methodological issues in the tourism literature: UK
outgoing tourism and trade links. Economic Issues. 20(1). pp.1-42.
John, S.B., 2018. Harnessing Internet Potential for Tourism Development: Status and Prospects.
Age. 20. pp.57-14.
Ko, C.H., 2017. Exploring how hotel guests choose self-service technologies over service staff.
International Journal of Organizational Innovation. 9(3). pp.16-27.
Sugita, Y., Mugiraneza, J. and Yamagishi, S., 2018. Integrated Transparent NFC Antennas on
Touch Displays. ITE Transactions on Media Technology and Applications, 6(4), pp.280-
285.
Suhartono, J., Karya, S. and Candra, S., 2017, November. The utilize of NFC technology for
campus library services management. In Information Management and Technology
(ICIMTech), 2017 International Conference on (pp. 60-64). IEEE.
Keymolen, E., 2017. Trust in the Networked Era: When Phones Become Hotel Keys. Techné:
Research in Philosophy and Technology.
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South Western
Cengage.
Lebow, J.L., 2018. Discursive research methodologies and couple and family therapy research:
Reflections. Journal of marital and family therapy.
Walsham, G., 2018. Research methodologies for information systems in the development
context: a tutorial. The Digital Challenge: Information Technology in the Development
Context: Information Technology in the Development Context.
Online
Brignall, M., 2017. UK braced for record number of tourists in 2018. [Online] Available
through: <https://www.theguardian.com/travel/2017/dec/26/uk-braced-for-record-
number-of-tourists-in-2018>
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Research Ethics Approval Form
ETHICAL FORM
Section 1: Basic Details
Project title:
Student name:
Student ID number:
Programme:
School / College:
Intended research start date:
Intended research end date:
Section 2: Project Summary
Please select all research methods that you plan to use as part of your project
(Please tick):
• Interviews:
• Questionnaires: Yes
• Observations:
• Use of Personal Records:
• Data Analysis:
• Action Research:
• Focus Groups:
• Other (please specify):
Section 3: Participants
Please answer the following questions, giving full details where necessary.
Will your research involve human participants? Who are the participants? Tick all that
apply:
Ages 12-16:
Young People aged 17–18:
Adults: Yes
How will participants be recruited (identified and approached)?
Approached by sending emails.
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