Case Essay Example
Case Essay Example

Case Essay Example

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  • Pages: 11 (2877 words)
  • Published: September 17, 2017
  • Type: Research Paper
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The book "Hotel Management and Operations" describes hospitality as the warm and generous reception and entertainment of guests or strangers, whether in a social or commercial setting (p. 73). According to the Building Code of the City of New York, a hotel is defined as any building or part thereof that provides food and shelter to residents or guests. It must also have a general public area or cafe, or both, and contain more than fifteen sleeping rooms. In their working paper presented at the Allied Academies International Conference, Peyote et al. (2003) extensively reviewed various theories on Customer Satisfaction and Dissatisfaction (CSS/D) proposed in the literature.

This review focuses on the main elements and measurement-related issues of the decision-making process in pre-sass literature. It analyzes four consistency theories: assimilation theory, contrast theory, assimilation-contrast theory, and negative theory. The paper also discusses the theor

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etical foundations of consumer satisfaction research and key components of widely accepted models for Consumer Satisfaction and Dissatisfaction.

The authors contend that satisfaction has been defined in various ways, such as in terms of need fulfillment, pleasure or displeasure, cognitive state, attribute or benefit evaluation, and subjective evaluation of experience. They state that although researchers have used different definitions for satisfaction, they generally agree that it involves interconnected variables rather than a single variable (p. 44). Vary, T. G. (1997) suggests specific measures to enhance the assessment of customer satisfaction in an organization. In his book, he outlines five critical skills necessary for this task: impaling/customer-participant selection, questionnaire design, interviewing/survey administration, data analysis, and quality function deployment-building action plans. The author asserts that developing a model of satisfaction would be highl

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beneficial in advancing the understanding of the relationships preceding and following satisfaction formation.

The model proposed consists of three stages: antecedents, the satisfaction formation process, and consequences. Prior experience is considered the primary antecedent of satisfaction as it acts as a repository of past experiences. The satisfaction process involves comparing expectations with perceived performance. Expectations are defined as the combination of beliefs about the attributes possessed or offered by the product or service. The presented model incorporates desires as a factor that influences the formation of expectations.

The author suggests that customer retention has a behavioral consequence that is considered an intermediate sign without immediately alienating the customer. They also categorize the performance of a product or service into objective and perceived aspects. To understand satisfaction as a phenomenon, graphical representation is utilized. The text discusses five theories of satisfaction from social psychology: Constitutionalists Theory, Contrast Theory, Dissonance Theory, Generalized Negativity, and Hypothesis Testing.

The author has summarized the consequences for satisfaction for all these five theories and presented in a tabulation form for easy comparison. The working paper by Silvia Fixing and Paolo Acidic (2002) 35 study the possible methods to obtain data to measure customer satisfaction, the possibilities of ethos to analyze the collected data, explain methodological proposal based on discrete graphical models and a novel theoretical proposal to mixture different types 37 of customer data information, statistical analysis of sample dataset, and in the final chapter present the conclusions.

Two potential new approaches to analyze customer satisfaction data are proposed. The first approach involves using the web as the primary means for collecting such data, allowing for continuous monitoring of visitor

opinions on the site. The second approach involves using telephone and/or mail/email as a means of contact, but it has been found to yield low response rates.

The authors explain that the face-to-face interview option can be used to communicate care and concern to customers. However, they argue that this method may have the disadvantage of customers being more hesitant to criticize or speak negatively about the program compared to an Internet, mail, or telephone survey. They also discuss the challenge of measuring the level of satisfaction and suggest that using a limited scale could allow for a small approximation error since it can be difficult to obtain an exact agreement between customers' opinion and a numerical value.

The paper introduces the classification of concepts into 'latent variables', which are not directly measurable, and 'manifest variables', which can be directly measured. Additionally, the paper suggests five levels of opinions for customer satisfaction in the business. These levels include very unsatisfied, moderately unsatisfied, neutral, moderately satisfied, and very satisfied. Willard Homo (2000) presents two main customer satisfaction models: Macro-models, which incorporate customer satisfaction into a group of connected instructions in marketing research, and Micro-models, which analyze the components of customer satisfaction.

Within the marketing research discipline, the paper introduces different customer satisfaction models. The macro-models, including biz, value, quality, complaining behavior, and loyalty, are explored in-depth. The study also delves into the micro-models of customer satisfaction, encompassing disinformation of expectations, equity, attribution, affect, and regret.

The author proposes that the macro-model is the basis for perceived performance, comparison standards, perceived disinformation, satisfaction feeling, and outcomes of satisfaction feelings. The author further explains that this model emphasizes

the significance of value as a driving force in the choice of products and the satisfaction derived from it, which is a quick psychological reaction to a part of a value chain. Under the Micro-model, the author describes seven models including the Expectations Disinformation model, Perceived performance model, Norms models, Multiple process models, Attribution models, Affective models, and Equity models.

The text expands on the topic of marketing research in customer satisfaction, categorizing it into macro-level and micro-levels. Alex M. Skinned's study from 2002 explores how service failures and the restaurant's efforts to recover from them impact customers' intentions to return and communicate their experiences through word-of-mouth. The study emphasizes the role of word-of-mouth in influencing others' purchasing decisions, highlighting that positive word-of-mouth comes from satisfied customers, while negative word-of-mouth arises from dissatisfied customers. Notably, dissatisfied customers tend to share their negative experiences with others.

The study investigates both the extent of complaints related to service failures and the remedies offered. Minor service failures typically result in smaller remedies, such as free food, discounts, or coupons. On the other hand, more significant remedies, like the manager's intervention, are considered corrective measures involving a higher degree.

In addition, it argues that the level of correction is not the sole factor impacting consumers' perception of the recovery process. It has also been concluded that negative aspects have a stronger impact on customers' overall evaluation than positive attributes. When consumers express dissatisfaction with a service, they ultimately form a judgment, therefore, unaddressed service failures result in increased dissatisfaction. In other words, the degree of correction directly corresponds to the customers' level of satisfaction.

In their study, Guppy et

al. (2007) developed a technique to measure the connection between customer satisfaction, repeat-purchase intentions, and restaurant performance. By analyzing data from a national restaurant chain, the authors created mathematical models that estimate how guests' satisfaction levels with specific dining attributes influence their probability of returning. Overall, two distinct models were constructed in this research.

The study includes two models. One model examines the relationship between guest satisfaction and twenty-one different attributes of the dining experience. The second model explores the relationship between restaurant performance and customers' reported likelihood to return. The study reveals the impact of variables, such as guests' "comeback" scores, on restaurant performance. The authors assert that higher customer satisfaction should increase the likelihood of repeat purchases, ultimately leading to greater restaurant sales.

The purpose of this research is to establish a connection between restaurant performance and customer satisfaction in order to address a gap in current studies on the restaurant industry. Ellen Day and Melvin R. Crass (2000) stress the significance of understanding the elements that contribute to customer satisfaction for achieving desired outcomes. This article aims to (1) summarize previous literature and knowledge on the topic, (2) present a new perspective by taking perceived risk into account during value assessment, and (3) suggest recommendations for future research.

The authors claim to be the first to suggest a connection between value and dissatisfaction. They clarify that they are not proposing customers perform a formal analysis comparing potential benefits with required resources, but argue that consumers take into account various factors: (1) whether a product fulfills desired functions, (2) the risk of physical harm from product use, (3) gaining others' approval, (4) achieving

self-efficacy, and/or (5) wasting money, time, or effort on a specific choice (p. 8). The study ultimately concludes that framing value as perceived risk not only improves understanding and measurement of value but also empowers marketing managers to enhance perceived value of their product or service. By comprehending how to manipulate value, marketing managers possess crucial knowledge for satisfying customers (p. 58).

According to Mission et al (2005), contemporary hotel guests have certain expectations. They anticipate quality service, products, atmosphere entertainment, and value for money. Additionally, they demand a high-quality experience during their hotel stay.

The authors examine the importance of service quality and customer satisfaction. They also conduct an assessment of service quality in hotels located in Darwin, Northern Territory, Australia, based on the perceptions of their customers. In addition, the authors analyze and discuss the feedback provided by 149 respondents regarding their expectations for staying in 4-star hotels. The study reveals that 10% of the respondents expressed levels of dissatisfaction higher than the average. It is recommended that these individuals who voiced complaints could serve as indicators for management.

According to the study, service quality has received considerable attention in the literature on hospitality and catering. The authors argue that this focus is justified because customer satisfaction is linked to profitability, and, similar to other service industries, the hospitality sector is interested in understanding the connection between customer satisfaction, repeat sales, and business profits. In summarizing previous research, Laureate Dub© and Leo M Rearrangement (2000) 41 suggest that to build guest loyalty, managers need to provide exceptional service to guests during their hotel stay.

The authors have highlighted the positive aspects of the

hotel stay that were observed by guests and identified them as sources of customer value. They discussed these aspects in relation to the business strategies mentioned by the managers during their interviews, which are seen as the primary reasons for the hotel's success. The study aims to identify the hotel attributes that contribute to the value of lodging purchases. The authors define value as customers' perception that certain hotel attributes have fulfilled their needs during their stay.

The most commonly mentioned marketing factor driving 42 purchases is an efficient distribution system that provides easily accessible rooms. This is followed by frequent-stay programs. Moreover, it is noted that hotels can achieve significant loyalty rewards by consistently creating visible customer value during every stay. Findings on the factors that create such value are based on responses from 232 customers who reported recalling their hotel's efforts in this regard. Additionally, interpersonal and functional aspects of service play a vital role in generating customer value during the hotel experience.

In 2000, Jay Scandalously and Did Shorthand conducted a research study in the hotel industry to explore customer loyalty. The study focused on factors such as image and customer satisfaction and aimed to understand their connection with customer loyalty. The results indicated that competition in the industry benefits customers by providing them with more choices, greater value, and enhanced service.

The authors suggest that hotels may harm their profitability by lowering prices to gain more market share. The study emphasizes the significance of prioritizing customer loyalty for long-term success in hotel organizations. The results, obtained from collected data, show a positive relationship between factors like hotel image, satisfaction with housekeeping,

reception, food and beverage, price, and customer loyalty. Customer loyalty is defined as whether customers will make repeat purchases or recommend the hotel.

The study conducted by Tat Y highlights that customer satisfaction with housekeeping is the primary factor determining customer loyalty. The study emphasizes that, from the perspective of customers, housekeeping is the essential benefit offered by a hotel, while reception, food and beverage, and price are considered supportive factors. To accurately measure customer loyalty, both the hotel's image and customer satisfaction should be taken into account.

Choc and Raymond Chug (2000) conducted a study to analyze satisfaction levels among Asian and Western travelers and their perceptions of the service quality of Hong Kong hotels. The study identified seven out of 33 hotel attributes as significant factors and used a BAVARIA rotation technique to determine satisfaction levels.

The study aims to achieve the following objectives:

  • To develop the underlying dimensions of hotel attributes; and
  • To examine the relative impact of the derived hotel factors in influencing the satisfaction levels of both Asian and Western travelers.

In their study, Gabbier et al (1996) examined the connection between laity service and customer expectations in the hotel industry in Northern Ireland. The research was carried out in two hotels using the SURVIVAL method. The main focus of the paper was to identify service gaps. Two hotels with distinct management styles were chosen for this research. The data collection process involved questionnaire based on the service quality gap model. The hotel industry highly values the business traveler segment.

In 2001, Roger J. Callahan and Gabrielle Kinds conducted a study on customer satisfaction

among business travelers in relation to different hotel attributes. They carried out a thorough analysis of various literature and surveys focused on hotel attributes, with a specific emphasis on business travelers. Initially, they reviewed these materials to determine the perceived significance of hotel attributes from the perspective of business travelers. The questionnaires used in the survey were developed based on these identified important attributes.

The authors of this survey used Calla (1996) as a basis for selecting attributes, while also considering the findings of other authors. Two international five-star hotels, one from Brussels and one from Manchester, were chosen for the study. The paper highlights the following attributes as being most important:

  • Security (93 per cent);
  • Reservation reliability (89 per cent);
  • Quietness of room (87. 2 per cent);
  • Physical condition of the hotel (83 per cent); and
  • location (81 per cent)" (p. 1 5).

The study conducted by Reginald M. Peyote et al (2003) 46 highlights the significance of 'location' as the primary attribute for business travelers in Manchester. Car parking holds less importance while restaurant and food availability have moderate significance. Furthermore, the study identifies differences in expectations between international and British business travelers. The paper also provides a literature review on consumer satisfaction / dissatisfaction (CSS/D) prior to the sass.

In their article, Julie Fickler et al (2006) discuss the theoretical and measurement-related aspects of studying acceptance to pay extra for security measures at hotels. According to their research, older guests are less willing to pay for security features. The authors also argue that women tend

to be more supportive of strong security measures compared to men. Additionally, the study examines how guests would respond to potential increases in room rates in order to cover the cost of these features.

The study involved 930 respondents from various groups and revealed that the safety concerns of travelers were significantly impacted by the 9/11 attack on New York City. The sample encompassed individuals aged fourteen to seventy, with an equal representation of both genders. The findings indicate that the respondents were less receptive towards increased security measures such as extensive implementation of metal detectors and presence of armed guards.

The research findings indicate that hotel guests generally support certain security measures, including presenting photo identification during check-in, having video surveillance in public areas, and having first-aid kits available in guest rooms. However, they are less receptive to other security measures such as metal detectors, a visible presence of armed guards, and verifying guests' identification with law enforcement records (Hail Nadir' and Kasbah Hussein, 2005). These conclusions were drawn from a study conducted in Northern Cyprus hotels that aimed to evaluate customer satisfaction levels and the level of tolerance towards service among customers (p. 242).

The study was carried out at different types of hotels in Northern Cyprus, including four-star, five-star, and resort hotels. The results indicate that customers assess service quality in these hotels based on two dimensions: tangibles and intangibles. The findings reveal that customers have a limited range of acceptable service quality. Furthermore, the study confirms that services can be evaluated based on two types of expectations: desired and adequate. The study concludes that the "spinally measurement scale" is a useful

tool for measuring customer satisfaction (p. 273).

The text discusses the analysis of marketing strategies in managing service-level expectations, the influence of predicted service on consumers' evaluation of service quality, and the effective formulation of marketing strategies in the hotel industry using the concept of zone of tolerance (p. 274). The study emphasizes the importance of satisfaction and quality in hospitality management, urges managers to maintain service levels that meet customers' expectations, and highlights the usefulness of the zone of tolerance method in developing strategies to improve quality.

In 2004, Karaoke Buddha conducted a research study (49) that aimed to evaluate the key factors influencing a restaurant's success or failure. The study also sought to identify any gaps between customer and management perceptions and to analyze the choices of cuisines, particularly among commercial customers and their behavior. The study encompassed a total of 48 restaurants. According to the findings, important variables impacting a restaurant's success included hygiene and sanitation, location, access, parking and visibility, music, supplier's quality consistency, food cost, and design and decor. Based on these observations, the author suggests that these factors are crucial for a restaurant's success.

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