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Customer Satisfaction Assignment: Service Of Hospitality Industry Towards Consumer Needs

Question

Task:
Prepare a research report on customer satisfaction assignment on the topic “How effective is the service of the hospitality industry towards the customers need and their satisfaction level?”

Answer

Executive Summary
The deals with customer service in the hospitality industry focus on customer satisfaction and fulfilling customers' needs. The global condition in COVID-19 condition has hampered business hence; it is difficult for an organization to restart the business. The Maslow hierarchy model guide in providing specific examples that help in finding out the needs of customers for increasing customer satisfaction level. The thematic analysis has been discussed to identify each section of the research. The recommendation as per gaps for makings services of the organization better for attracting customers.

Introduction
a. Brief introduction
The main approach of research on customer satisfaction assignment is to analyze the services of the hospitality industry helps in fulfilling customers' needs and increasing their satisfaction level. The issues faced by the industry in managing customer satisfaction have been discussed. The statistical data helps in analyzing customer satisfaction in better ways based on it gaps can be identified which in later can be fulfilled.

b. Rational
The main issue faced by the hospitality industry is to retain customers and satisfy them. As there are huge options in the hospitality industry therefore loss of a customer can be faced which impacts the hospitality industry. The issue is still existing as the demand of customers is changing which makes a bit difficult for the organization to fulfill (Mmutle, 2017). The research would shed light on customer satisfaction as crucial for the hospitality industry hence, what steps should be taken for satisfying customers.

c. Research question

  1. How customer service affects the hospitality industry?
  2. How customer satisfaction can be determined
  3. How the services will help in a satisfying customer in the hospitality industry?
  4. What agenda is taken by the hospitality industry in satisfying the customer in the COVID-19 pandemic?

d. Literature review
In a recent study, the revenue of the Australian hospitality industry during the fiscal year 2018 has increased. The restaurant sector has achieved 20.08 billion and hotels and resorts have achieved 8.24 billion on AUD. As per the global hotel chain, Wyndham Hotel Group has been leading in the top hotel. In 2020 Wyndham Hotel Group has accounted for 9300 units worldwide portfolio that has been ranging from economic to upscale accommodation. The competitors such as Marriot International and Choice Hotels international have 7118 and 7484 prosperities (statista, 2020). The hotel industry has full competition as well as continuous growth that has strengthened the global traveler pool. The competition in the hotel industry means the number of properties that each hotel has, this is due to companies building and selling the properties. In the year 2019, the brand value has stood over than $6 billion US. The highest brand value dealing with a hotel chain at 10.83 billion in the year 2019. The average daily rates have been depending on various regions. In Europe, the ADR was approximately $130US in the year 2019.

The competition in the Australian hospitality sector is high. In the year 2017, there are 596 people from the Australian hospitality industry were surveyed. In the survey business owner, business managers, head chefs, and business employees are surveyed. In 2020 the hotel industry has been hit badly (statista, 2020). In May 2020 the effect of the virus with occupancy rates of 13.3% has been compared with the previous year. In the year 2018, the global hotel industry has come to the tourism industry that has contributed 8.81 trillion dollars. The global occupancy rate has been focused on dealing with regional increases in the previous five years. Europe has been the highest occupancy is 72.4% in the year 2018. The organization needs to find out the varieties which eventually needed for attracting customers (statista, 2020).

Motivational Theory
The motivational theory is compromising with the five-tier model with human needs as well as hierarchical levels in the pyramid. Maslow's theory deals with the basic requirement of an individual. The Maslow hierarchy of needs is dealing with five tiers.

Psychological needs
The biological requirements of human survival are basic needs such as clothing, warmth, shelter, food. Hence, customer satisfaction can be archived by fulfilling the basic requirement of individual customers. The most important deals with primary needs until the secondary needs are met.

Safety needs
Safety and security are crucial for securing a life. Hence, it is crucial for hotels to provide better securities to customers as their safety is mandatory for the industry (Zhao, Xu & Wang, 2019). The customer wants to experience order as well as predictability for fulfilling the needs of family and society.

Love and belongingness needs
Psychological and safety needs are fulfilled by giving care and love. Hence, in an organization interaction with customers has to be polite as this would help customers to present their needs based on their services can be provided.

Motivational in customer satisfaction 1

Figure 1: Motivational Theory
(Source: Zhao, Xu & Wang, 2019)

Esteem needs
The need for respect or reputation is crucial for people as it helps to deal with real self-esteem. Hence, to increase customer satisfaction level respect for employees is required which eventually helps in fulfilling requirements.

Self-actualization needs
It is the highest level of Maslow's hierarchy as it refers to the realization of a person's potential as well as seeking personal growth. The helps in analyzing the individual needs based on it proper guidance can be provided.

e. Research design
Functionalism has been chosen for evaluating the effects of customer satisfaction on the hospitality industry. The competition in hospitality industries is high, therefore; there is a huge chance for the customer to switch to another organization (Gelbrich et al. 2016). Customer satisfaction is an integral part of the growth of organizations therefore proper services is needed to be provided for retaining the customer.

Data collection method
The data collection is done by two methods primary and secondary. As stated by Scholzen et al. (2015), the primary data is collected by conducting a survey, distributing questionnaires whereas the secondary data is collected from previous books, journals, articles, websites, YouTube, and newspapers. In this research, a secondary data collection method will be chosen. The data will be collected from the library or institution. The previously written data in books, journals will be collected for analyzing customer satisfaction impact on the hospitality industry.

Motivational in customer satisfaction 2

Figure 2: Data Collection Method
(Source: Scholzen et al. 2015)

Design
The research design is a systematic approach that would help in conducting research in a compelling way. The data analytical tool helps in identifying the gaps in the present and earlier studies. The research design is of three types, explanatory, descriptive, and exploratory research design.

Motivational in customer satisfaction 3

Figure 3: Research design
(Source: McCusker and Gunaydin, 2015)

The descriptive research design will be chosen for conducting the research in a proper manner. The descriptive research design helps in analyzing the factor that helps in satisfying customers which eventually impacts on hospitality industry (McCusker and Gunaydin, 2015). The research philosophy is a method that helps in gathering, analyzing, and using data that encompasses different philosophies of research approaches. Research philosophy is of four types’ pragmatism, positivism, realism, and interpretivism.

Motivational in customer satisfaction 4

Figure 4: Research philosophy
(Source: Mayer, 2015)

The researcher opted for interpretivism research philosophy that helps in presenting the data and helps in providing the result that eventually helps in carrying out the research in an appropriate way.

Motivational in customer satisfaction 5

Figure 5: Research design
(Source: Scholzen et al. 2015)

The research approach is a method that helps to carry out the research step by step with detailed methods for the collection of data, analysis, and interpretation. This approach is essentially needed for managing the research in better ways. As stated by Scholzen et al. (2015), the researcher opted for an inductive approach for carrying out the research in a positive way. The analysis of research is done in such a base that helps in appropriately managing the entire research.

Consistent and coherent flow
The presentation of data will in such a way that will help in analyzing data in a simpler form. The data will be presented in thematic form as it will help in analyzing each of the sections that are mandatory in research. Per Mayer (2015), the data is collected on analyzing the impact of customer service on satisfying customers. Customer satisfaction is mandatory for the success of the hospitality industry. The logical flow of data would help in managing uniformity with its content. The quality in uniformity will be managed as it would help in finding out gaps based on its proper recommendations will be provided.

Research timeline
(Refer to appendix)

Analysis (Thematic) and discussion
Description
The discussion and analysis are done in this section of the research. The thematic analysis is done for identifying factors of customer satisfaction, customer service on the hospitality industry, the effect of customer satisfaction, and managing customer satisfaction in this current pandemic situation. The thematic analysis will help in analyzing each section in brief.

Theme 1: Customer service impacts on the hospitality industry
Good customer service is a key success of any business whereas it is particularly crucial for the hospitality industry. In the hotel industry customers are looking to staff for helping them for making stay relaxing and comfortable as much as possible. As stated by Sabapathy & Selvakumar (2018), in the hospitality industry customer interaction is a core component to their operations which is including hotels, bars, tourist destinations, restaurants, parts, and resorts. Customer service affects purchasing a hospitality business's products or services. 70% of customer purchase decisions are affected by customer service. The new shift in sustainability is seamless and reliable technology creating paperless for check-in experiences. The promotion of systems is within industry networks such as websites, commenting on benefits such as technology-based on environmental perspectives as well as improving processes for staff. In accordance with Amin(2016), the new technology integrates with a third party by analyzing the booking systems as well as helps in creating a new level of software as well as the environment. Customer service can be enhanced by better communication skills that would help in understanding the needs of customers. Many experts have analyzed that creating private experiences helps to invest in the wellbeing of guests. Wellness tourism is crucial in managing the entire system which eventually helps in identifying the gaps based on it further details can be managed. In-room massage to detox retreats attracts customers as it helps in appropriately managing the entire system.

The hospitality industry is dealing with businesses all over the country. The hospitality businesses are differentiated by their competitors by offering exceptional and positive customer services. The customer has excellent experiences with a business that helps in increasing the chances of the future purchase. The hospitality industry is based on customer relations who helps in analyzing customer satisfaction. As stated by Smith (2020), customer services can be improved by providing proper customer service training to employees. The hospitality and business knowledge is crucial as this helps in finding proper evaluation in better ways. Customer empathy is needed to be maintained as this helps in finding out the right way for understanding customers' requirements. Charismatic people are attractive as this helps in managing the entire system which is mandatory in managing skills. The conveying the ability for changing to deal with the presence for identifying power based on its proper evaluation can be carried.

Theme 2: Factors associated with customer satisfaction
Customer satisfaction is crucial for any organization as it helps in retaining customers. The factors are accessibility, navigation, page load speed, language, memory, personalized, convenience, and intuition. The accessibility of services for customers as per their demand increases the satisfaction level. As stated by Alananzeh et al. (2018), the navigation of different sections in the hotel helps customers to reach out to their destination in an appropriate manner. The management can deal with proper functioning as this helps in managing the entire system based on its further functioning can be done. The satisfaction of employees is based on analyzing the present needs which eventually helps in identifying the exact requirement of customers. Politeness in taking with customers helps in building up a special place in customers' minds, which is eventually needed for identifying needs in a better manner. User-friendly language aids customers to open up with staff which eventually identified the basic and special requirements of tourists. Customers also get influenced by perceptions of equity and fairness as this helps in managing the task. In accordance with Davras & Caber (2019), customer satisfaction is influential with other people which adversely help in managing the better relationship that can be influenced by individual. Customer satisfaction is influenced by other people as well. The business setting satisfaction with new services is also a factor that is associated with employees. Customer satisfaction makes customers loyal to the organization. It is expensive to generate satisfied as well as a loyal customer whereas it proves profitable for the long run in the organization. The improvement of quality and services as well as appropriate charges for fair prices to satisfy the customers that help in retaining customers. Customer satisfaction is crucial when customers consider the product crucial as well as invest time for seeking information when ultimately enhances with satisfaction level. The satisfaction can influence the organization by the repurchase of more products as well as positive experiences with others as well as the willingness of customers by providing products and services.

Theme 3: Impact of customer satisfaction on the hospitality industry
The satisfaction of customers leads towards loyalty which has shown in the above study. The customer when felt satisfied which remains loyal to the hotel as well as affecting purchasing behavior. As stated by Liu et al. (2020), the service quality of the hotel is based on the loyalty of customers. Loyalty means with the customer which is intended to repurchase the services from service providers over time. The good sign of customer loyalty helps in managing the entire system which eventually helps in adequately analyzing needs. The service quality studies have been proposed that higher service quality will lead towards higher as well as positive customer repurchase behavior. The brand images and customer loyalty is are correlated with each other that deals with consumer minds which eventually attracts customers based on service quality. Customer satisfaction is comprised of customer preferences for identifying the demand for customer dissatisfaction.

The successful market is not sufficient to attract customers’ managers that must concentrate on retaining existing customer implementing effective policies of customer satisfaction and loyalty. The attention on the hotel attributes is crucial for guests which leads to dealing with negative evaluation of hotels thus restricting the chance of various patronages. Good customer service is a key to success in any kind of business as it is particularly crucial in the hotel industry. As stated by Ali et al. (2020), the staffs need to help them for making their stay as relaxing and comfortable as much as possible. It also helps in handling their staff which effectively helps in managing the employees as it is needed by identified based on its various essential needs of the customer in managing the entire system. The repeat visit of the customer to the hotel helps in identifying customer loyalty. The loyal customers are involved within the customer-supplier relationship in which customer repurchase from the same hotel service provider when possible as well as continues to uphold a positive attitude towards the suppliers.

Theme 4: Managing customer satisfaction in COVID-19 pandemic situation
In this pandemic condition, many industrial sectors are facing issues hence, the overall GDP of the entire world has lowered. In this lockdown, the hospitality industry has been affected badly. The industry has focused on attracting customers with new strategies which eventually helps in increasing the overall profit of the organization. According to Namin (2017), the organization needs to identify the various changes that help in managing the current pandemic condition. Therefore, every industry needs to adopt certain measures and strategies for attracting customers as this helps in analyzing the demand of customers in this present situation. As the world is taking steps to run the business would help in attracting customers and increasing the revenue of organizations. Customer satisfaction can be increased by providing a better environment and sanitized environment as it helps in attracting customers. in the hospitality industry, each material such as room materials is needed to be sealed and sanitized and it should be presented in front of the customer as they can open which would help in building customer relationships.

The agile customer experience team would help in creating a better management system which eventually helps in raising the demand that eventually helps in properly managing the entire system. As stated by Amin (2016), the organization also needs or creating transparent with their usage in their data for dealing with policies as well as proactive about the values based on it better evaluation can be done. The advertisement through the internet about the safety policies that are follows by the hotel, restaurants attract customers. the booking can be done online as well as some offers such as free breakfast, wifi facilities would help in attracting customers which eventually helps in increasing customer satisfaction. The customer service team would help in analyzing the tone of the customer during calls as this will help them to assist them better. Customer satisfaction can also be maintained by using Net promoter Score for analyzing customer satisfaction in better ways.

Inference making
Customer satisfaction can be managed by providing them better services which are essential in the hospitality industry. The industrial needs of an organization can be identified that are needed by focusing on the entire management system that eventually increases the demand for individual requirements. The customer requirement can be managed by adopting communication skills, Net Promoter Score as this helps in analyzing the present need of the customer.

Conclusion, recommendation & implication
It could be recommended that customer satisfaction can be maintained by managing customer loyalty. Customer loyalty can be managed by giving updates of new offers through emails or phone calls to those permanent customers. Engaging customers through social media platforms eventually required attracting customers. The organization does not any kind of fake promises to any one of them which eventually helps in attracting customers. As stated by Mmutle (2017), the organization needs to provide such facilities that were promised to customers. Customer effort score helps in improving results as this helps in building reliable customer experiences. The KPIs measures can be used for customer effort score as this would help in dealing with a customer who has been done for managing the customers’ necessities. The key performance indicator would help in identifying the performance of hotels based on its proper strategies can be provided.

It can be concluded that customer service is crucial for managing customer services which eventually helps in finding out the ways for making the customer satisfied. Customer satisfaction is crucial for the organization for increasing productivity. The motivational theory could help the hospitality industry to fulfill their needs. The methodology has been conducted based on its secondary data collection method would be used. The data would help in identifying the gaps regarding customer services based on its proper strategies can be adopted.

References
Alananzeh, O. A., Jawabreh, O., Al Mahmoud, A., & Hamada, R. (2018). The impact of customer relationship management on tourist satisfaction: The case of Radisson Blue Resort in Aqaba city. Journal of Environmental Management & Tourism, 9(2 (26)), 227-240.

Ali, M., Usman, M., Pham, N. T., Agyemang-Mintah, P., & Akhtar, N. (2020). Being ignored at work: Understanding how and when spiritual leadership curbs workplace ostracism in the hospitality industry. International Journal of Hospitality Management, 91, 102696.

Amin, M. (2016). Internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty. International journal of bank marketing.

Davras, Ö., & Caber, M. (2019). Analysis of hotel services by their symmetric and asymmetric effects on overall customer satisfaction: A comparison of market segments. International Journal of Hospitality Management, 81, 83-93.

Gelbrich, K., Gäthke, J., & Grégoire, Y. (2016). How a firm's best versus normal customers react to compensation after a service failure. Journal of Business Research, 69(10), 4331-4339.

Global hotel industry market size | Statista. (2020). Retrieved 1 September 2020, from https://www.statista.com/statistics/247264/total-revenue-of-the-global-hotel-industry/

Liu, Y., Song, Y., Sun, J., Sun, C., Liu, C., & Chen, X. (2020). Understanding the relationship between food experiential quality and customer dining satisfaction: A perspective on negative bias. International Journal of Hospitality Management, 87, 102381.

Mayer, I., (2015). Qualitative research with a focus on qualitative data analysis. International Journal of Sales, Retailing & Marketing, 4(9), pp.53-67.

McCusker, K. and Gunaydin, S., (2015). Research using qualitative, quantitative or mixed methods and choice based on the research. Perfusion, 30(7), pp.537-542.

Mmutle, T. (2017). Customers' perception of service quality and its impact on reputation in the hospitality industry.

Namin, A. (2017). Revisiting customers' perception of service quality in fast food restaurants. Journal of Retailing and Consumer Services, 34, 70-81.

Sabapathy, S. K., & Selvakumar, J. J. (2018). Impact of facebook marketing on eword of mouth: With reference to the hotel industry. SJCC Management Research Review, 8(1), 116-132.

Scholzen, A., Chudoba, R. and Hegger, J., 2015. Thin?walled shell structures made of textile?reinforced concrete: Part I: Structural design and construction. Structural Concrete, 16(1), pp.106-114.

Smith, T. A. (2020). The role of customer personality in satisfaction, attitude-to-brand and loyalty in mobile services. Spanish Journal of Marketing-ESIC.

Zhao, Y., Xu, X., & Wang, M. (2019). Predicting overall customer satisfaction: Big data evidence from hotel online textual reviews. International Journal of Hospitality Management, 76, 111-121.

Appendix
Appendix 1: Gant Chart

Main activities and stages

Week 1

Week 2 to 9

Week 9 to 15

Week 15 to 20

Week 20 23

Week 23 to 25

Week 26

Selection of the topic

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Collection of data

 

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Planning the proper layout

 

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Reviewing literature

 

 

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Development of research plan

 

 

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Gathering secondary data

 

 

 

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Data analysis

 

 

 

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Interpretation of findings

 

 

 

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Conclusion preparation

 

 

 

 

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Project rough overdraft

 

 

 

 

 

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Final submission

 

 

 

 

 

 

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