Literature Review on Sales Decline: Exploring Key Factors and Research

This literature review examines the factors contributing to sales decline, focusing on the hospitality industry. It analyzes the impact of poor compensation policies, high employee turnover, and the importance of customer retention on sales performance. The review also highlights the significance of employee training in affecting sales figures. The research utilizes a mixed-methods approach to analyze data and enrich the findings. The paper references key articles that discuss these issues, providing insights into the challenges faced by small cafes and restaurants and offering a comprehensive overview of the key drivers behind sales decline and potential mitigation strategies. The review emphasizes the interconnectedness of these factors and their cumulative effect on business outcomes.

Running head: RESEARCH ON SALES DECLINE – LITERATURE REVIEW
RESEARCH ON SALES DECLINE – LITERATURE REVIEW
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1RESEARCH ON SALES DECLINE – LITERATURE REVIEW
Low compensation rates
Adeola and Ezenwafor (2016) in the article entitled “The hospitality business in Nigeria:
issues, challenges and opportunities” discussed the issues that are highlighted within the various
small cafes and restaurants due to the poor compensation policies. The poor compensation
policies that are implemented in the hospitality industry tend to affect the sales within the given
organization. The lack of the proper compensation might affect the motivation of the employees
as well which in turn affects the sales decline.
Employee turnover
Han et al. (2016) in the article entitled “The relationship between customer incivility,
restaurant frontline service employee burnout and turnover intention” discusses the issues that
are highlighted due to the high rate of the employee turnover. The lack of the proper motivation
leads to the high attrition rates within the organization. This in turn might affect the decline in
the sales of the smaller cafes and restaurants due to the lack of employees within the concern.
Customer retention
Rahimi et al. (2017) in the article entitled “Customer relationship management research
in tourism and hospitality: a state-of-the-art” discusses the importance of retention of clientele
within the business. The lack of the proper customer retention policies within the small cafes and
the restaurants might further lead to the decline of the number of clients of the restaurant. This in
turn might lead to the conditions wherein the overall sales of the restaurant might get affected in
a negative manner.

2RESEARCH ON SALES DECLINE – LITERATURE REVIEW
Lack of proper training
Jaworski et al. (2018) in the article entitled “The effects of training satisfaction, employee
benefits, and incentives on part-time employees’ commitment” state that the lack of the proper
training of the employees of the organization might affect the sales of the organization. In case of
the hospitality industry, the training of the employees is extremely necessary since it might
directly affect the retention of the clientele. This in turn might affect the decline in the sales of
the small cafes and restaurants.
Research Methods
The research would be conducted with the analysis of the data collected through the
mixed methods. This would help in the development of research and enrich the paper in terms of
the contents of the paper.

3RESEARCH ON SALES DECLINE – LITERATURE REVIEW
References
Adeola, O. and Ezenwafor, K., 2016. The hospitality business in Nigeria: issues, challenges and
opportunities. Worldwide Hospitality and Tourism Themes, 8(2), pp.182-194.
Han, S.J., Bonn, M.A. and Cho, M., 2016. The relationship between customer incivility,
restaurant frontline service employee burnout and turnover intention. International Journal of
Hospitality Management, 52, pp.97-106.
Jaworski, C., Ravichandran, S., Karpinski, A.C. and Singh, S., 2018. The effects of training
satisfaction, employee benefits, and incentives on part-time employees’
commitment. International Journal of Hospitality Management, 74, pp.1-12.
Rahimi, R., Köseoglu, M.A., Ersoy, A.B. and Okumus, F., 2017. Customer relationship
management research in tourism and hospitality: a state-of-the-art. Tourism review, 72(2),
pp.209-220.