Answer To: This is the final report contains 65% of the total industry project.i here by will need to have a...
Soumi answered on Jun 13 2021
Running Head: CUSTOMER DISSATISFACTION IN QUADRANT HOTEL 1
CUSTOMER DISSATISFACTION IN QUADRANT HOTEL 9
CUSTOMER DISSATISFACTION IN QUADRANT HOTEL
Table of Contents
Chapter 1: Introduction 4
1.0 Introduction 4
1.1 Background 4
1.2 Problem Statement 4
1.3 Aims and Objectives 5
1.4 Research Questions 5
1.5 Summary 6
Chapter 2: Literature Review 7
2.0 Introduction 7
2.1 Defining Customer Satisfaction and Customer Dissatisfaction 7
2.2 Theories and Models of Customer Satisfaction in the Hospitality Industry 8
2.3 Key Contributors to Customer Dissatisfaction 9
2.4 Impacts of Customer Dissatisfaction on the Performance of Hotel businesses 10
2.5 Summary 11
Chapter 3: Methodology 12
3.0 Introduction 12
3.1 Research Paradigm 12
3.1.1 Research Approach 12
3.1.2 Research Philosophy 12
3.1.3 Research Design 13
3.2 Research Strategy 13
3.3 Data Collection Method 13
3.4 Sampling Method 14
3.5 Data Analysis Method 14
3.6 Ethical Consideration 14
3.7 Research Time Table 14
3.8 Summary 15
Chapter 4: Data Analysis and Findings 16
4.1 Survey Questionnaire 16
4.2 Interview Questions to the manager of the Quadrant hotel 27
Chapter 5: Recommendation and Conclusion 29
5.1 Conclusion 29
5.2 Recommendations 29
References 31
Appendix 1 33
Survey Questionnaire 33
Appendix 2 36
Interview Questions to the Manager with Transcripts 36
Appendix 3 37
Time Table 37
Chapter 1: Introduction
1.0 Introduction
With the increasing intensity of competition in the hospitality industry, it has become critically important for organisations within the industry to achieve a competitive advantage for ensuring success. One of the key components of achieving success is ensuring customer satisfaction and providing unique experience and value to the customers (Kim, Vogt & Knutson, 2015).
Regardless of how big an organisation is in terms of resources and functions, they will inevitably fail if they do not achieve customer satisfaction. In this research, the key issues that have contributed to the increasing dissatisfaction levels among the consumers of the Quadrant Hotel have been explored and recommendations have been developed to resolve the issues.
1.1 Background
Situated in Auckland, the Quadrant Hotel is one of the key players in the location. In spite of its 4.5-star status and amazing views, the satisfaction rates among the customers who visit the hotel are declining frequently. A primary investigation reveals that there are some significant problems within the management of the hotel.
The main problem is the shortage of skilled staff, which is why many customers complain about not having enough staff to have timely services. Additionally, it has been also revealed that the cleanliness of the hotel is also lacking which is a major contributor to the increasing customer dissatisfaction.
1.2 Problem Statement
Throughout the world, researchers have dedicated an extensive amount of time and hard work to determine the manner in which customer satisfaction may affect the performance, as well as, profitability and reputation of industries. Achieving success within the hospitality industry relies massively on ensuring customer satisfaction and providing a unique experience to the customers.
With that in mind, it may be said that although customer satisfaction remains an area of extensive research, not many empirical research reports have aimed to analyse the manner in which customer dissatisfaction may affect the performance, profitability and reputation of individual organisations. This research seeks to close the current gap between the existing pieces of literature and the effects of customer dissatisfaction on individual organisations.
1.3 Aims and Objectives
This research report aims to identify the main contributors to the increasing dissatisfaction levels among the customers and develop recommendations to eliminate the issues.
The research objectives include:
· To identify the major contributors to the increasing customer dissatisfaction
· To analyse how customer dissatisfaction may affect the profitability and performance of the hotel
· To develop recommendations to minimise the issues and achieve customer satisfaction
1.4 Research Questions
The research questions include:
· What are the main contributors to increasing customer dissatisfaction?
· How customer dissatisfaction may affect the profitability, reputation and performance of the hotel?
· What recommendations may be developed to eliminate the issues and achieve customer satisfaction?
1.5 Summary
The introduction chapter has introduced the background of the research and has stated the problem. Additionally, the research aim, objectives and questions have been also developed and listed in this chapter. The next chapter of this research entails reviewing existing pieces of literature that are relevant to the topic of the research.
Chapter 2: Literature Review
2.0 Introduction
In this chapter of the research project, the researcher reviews an extensive amount of existing literature to comprehend the conceptual models and theoretical underpinnings that have been presented by previous researchers pertaining to the area of the research or to relevant areas of the research.
2.1 Defining Customer Satisfaction and Customer Dissatisfaction
On the simplest note, customer satisfaction is an indication of whether or not customers have derived fulfilment from engaging in conducting business with an organisation. Customer satisfaction may be referred to be an indicator of the extent to which the customers are happy in terms of their all-inclusive experience, as well as, transactions with a business (Radojevic, Stanisic & Stanic, 2015).
Satisfaction is derived by customers based on comprehending whether all of their requirements have been met by the product or service offerings of the companies they engage in business with effortlessly and also conveniently. Customer dissatisfaction, contrarily, indicates the extent to which the customers are unhappy about engaging in business with a firm. The development of dissatisfaction among customers is contributed by the inability of the companies in terms of ensuring effortless and convenient service provided to the customers (Kandampully, Zhang & Bilgihan, 2015).
In this context, it may be said that the more satisfied the clientele are, the more likely a business is to achieve success through enhanced customer loyalty. Contrarily, the more dissatisfied the clientele is, the chances of them to replace the service and product offerings of an organisation go higher (Wu & Liao, 2016).
2.2 Theories and Models of Customer Satisfaction in the Hospitality Industry
Products and services can be classified based on their perceived usefulness and relevance to the users. The hospitality industry provides products and services that fall under the experience qualities category. According to the experience qualities theory, the service and product attributes can only be determined by the users during or after they have consumed the services (Pizam, Shapoval & Ellis, 2016).
In this context, it may be said that the assessment of the CSAT rates enable businesses in terms of comprehending the extent to which they have been capable of meeting the demands and requirements of the consumers along with their expectations (Lu, Berchoux, Marek & Chen, 2015). Additionally, it enables businesses to analyse the potential performance of a service or product offering to the clients to determine improvement areas and understand the exact requirements of the consumers.
The use of satisfaction surveys allows businesses to understand their customer retention rates and the extent of loyalty displayed by the customers, which enable businesses to develop more personalised and value-added offerings for the consumers to maximise profitability and efficiency. According to Oh & Kim (2017), the satisfaction levels among customers account for almost 40% of customer retention abilities of an organisation. The more satisfied consumers are, the more likely the chances of them returning to buy the services again.
Furthermore, customer satisfaction also positively affects the reputation of the businesses through positive word-of-mouth. There are a considerable number of determinants of customer satisfaction that have been developed by researchers and scholars throughout the years. It may be said that these elements are mostly similar in what aspect of consumer satisfaction they are intended to gauge some of which consists of the perceived value, perceived product and service quality, consumer expectation, as well as, price (Popp & Woratschek, 2017).
The ACSI or the American Customer Satisfaction Index was developed based on the Swedish Customer Barometer for Fornell et al. in 1996. It is an economic indicator, which is based on modelling of consumer evaluation of the produced services and product quality and customer purchase behaviours (Hussain, Al Nasser & Hussain, 2015). This tool facilitates interaction among the businesses and the consumers, which improve decision-making, and facilitates planning.
The expectation of the customers positively and directly may influence the satisfaction rates of customers due to the presence of the ongoing relationship with clients. Additionally, it encourages both the perceived value and quality of the services. Customer loyalty indicates the likelihood of customers to acquire services next time with the same business at a given price. This is an integral element of the ACSI model as it indicates profitability.
2.3 Key Contributors to Customer Dissatisfaction
Some of the most common and major contributors to customer dissatisfaction include poor and slow services, ineffective service delivery, inadequate communication and interaction among the businesses and the consumers, poor accessibility of services, poor assessment of customer requirements and necessities and disregarding customer opinions. The poor and slow services, ineffective service delivery and poor accessibility of the services can be attributed to the shortage of skilled staff and labour within the workforce of organisations (Xu & Li, 2016).
One of the major requirements of customers involves obtaining the services as immediate as possible. The shortage of experienced, skilled and adequately skilled staff and labour makes it impossible for organisations to provide services to the customers on a timely and efficient manner. Inadequate staff members also make it hard for businesses to understand the requirements of the consumers appropriately and resolve their doubts and issues. Poor assessment of customer requirements and disregarding customer opinions are issues that can be observed commonly within the managerial levels of the organisation (Revilla-Camacho, Cossio-Silva & Palacios-Florencio, 2017).
It may be said in this context that to ensure utmost satisfaction of the customers, it is of paramount importance for the management of the businesses to evaluate the exact wants and demands of the consumers, comprehend their complaints and issues and implementing strategies in order to resolve these issues. However, the absence of adequate communication and interaction among the consumers and the businesses leads to the development of confusions pertaining to what the customers require in order to derive the utmost fulfilment from engaging into business with a specific organisation.
Consequently, the confusion within the workforce leads to poor decision-making regarding providing services that would offer the maximum value and superior experience of the consumers from engaging in business with the organisations. Consequently, the businesses are not able to meet the requirements and expectations of the consumers, which significantly contribute to the reduction of customer retention abilities of companies and negatively affects customer loyalty.
2.4 Impacts of Customer Dissatisfaction on the Performance of Hotel businesses
As stated before, one of the key components of achieving success within the hospitality industry is ensuring customer satisfaction. The growth and prosperity of the businesses within the hospitality business is majorly dependent on the loyalty of the customers and the extent to which the customers keep taking the services provided by the organisations (Rahimi & Kozak, 2017).
Being unable to provide value to the customers and ensuring a superior experience to the...