Factors that Shape Customers Perception of Service Quality: the Chesterfield Mayfair Hotel - Case Study Example

FACTORS THAT SHAPE CUSTOMERS’ PERCEPTION OF SERVICE QUALITY: A CASE OF THE CHESTERFIELD MAYFAIR HOTEL Name Name of Class Name of Professor Institution Affiliation City and State Date Introduction Background Research has revealed that service quality is one of the key aspects that shape consumers’ attitude towards a business. Most successful businesses, especially in the service industry, have been able to remain relevant largely because of the exceptional services they offer. The hotel industry is among the many industries where service quality takes centre stage. The industry has become quite competitive in the past few years, and this has pushed up the demand for quality services. As a result of the highly competitive environment, many players in the hotel industry have modified their service delivery ethos to improve customer satisfaction. Dixit (2013) argues that the evaluation of customer satisfaction and perception of service quality has been acknowledged as an important way through which hoteliers can adopt favourable strategies that would enhance the performance of their businesses. They point out that modern day customers have become very demanding, with their satisfaction and expectations being shaped by the extent to which they perceive the quality of services offered by hoteliers. The current study seeks to identify the basis on which customers judge the quality of services hoteliers provide, with the main focus being on London’s Chesterfield Mayfair Hotel. Problem Statement and Scope of Research Globalization has made the hotel industry to be very competitive. Many internationally recognized chains of hotels have set up businesses in different locations around the globe, further increasing the competition for domestic hotels. As hotels try to outdo each other, customers’ expectations as far as the quality of services hoteliers offer, have also increased. Past studies have revealed that customers’ rate hotels based how they perceive the quality of their services. The studies have also revealed that hotels perceived to have high quality services perform better than those perceived to have poor services. But what factors do consumers take into consideration when determining whether the quality of services offered by a hotel is good or substandard? The hotel industry is characterized by less obvious competition on price. According to Sidin et al. (2001), the competition among hoteliers is significantly based on issues such as image, facilities and the quality of service provided. This is a clear indicator that quality management is a significant management issue in the hotel industry. It is thus important to identify the factors that shape customers ‘perception of service quality as this will help inform hotel quality management of which areas to focus on. The Chesterfield Mayfair Hotel is a four-star hotel located in the heart of London City. The hotel has a wide range of facilities, including guest rooms, a butler's restaurant, a library as well as a conservatory. The hotel prides itself in the exemplary services it offers, a position that is supported by the numerous awards it has won including the award for its Afternoon Tea. It location in the city makes it quite accessible to many people. Just like all other players in the industry, the Chesterfield Mayfair Hotel aims at ensuring that customers have an unforgettable experience. The hotel’s leadership acknowledges the fact that the quality of service really matters and as such, it has prioritized quality management. To improve the quality of its services, the management often relies on customer feedback. The current study seeks to utilize the feedback from Chesterfield Mayfair Hotel customers to identify the key factors that clients take into consideration when judging the quality of services provided by hoteliers. Objectives of the Study The primary objective of the current study is to identify the main factors that shape customer’s perception of a hotel’s service quality. In addition to that, the study aims at: Finding out whether the perception of service quality differs between different groups of clients Establishing the relationship between perceived quality and customer satisfaction Literature Review The issue of service quality in hotels has extensively been studied. Murasiranwa, Nield and Ball (2010, p.2) argue that service quality as a concept has emerged as an important theme is services marketing research. They point out that given the increased competition in the hotel industry, many hoteliers have increased their focus on matters of quality management. They argue that many commentators have come to the conclusion that quality has overtaken price as the determinant of consumer choice and business success in the hotel industry. In their study, they sought to analyze how service quality impacts the performance of hotel chains, their main focus being in the UK. They report that as much as the importance of quality is acknowledge by hotel management, efforts to implement quality services is undermined by certain factors including inadequate policy on quality, biased reward schemes as well as the failure by management to implement action plans. Mohamed, Mansor and Abdullah (2012, p.26-39) also carried out a study to measure the customer perceived quality of services at a four-star hotel. They point out that the quality of service as well as customer satisfaction is the main drives to success for any service oriented business. They state that increased competition has made it a necessity for service businesses such as hotels to monitor constantly and measure the customer’ levels of satisfaction. The extent to which customers are satisfied tells a lot about the quality of services offered by the hotel (Mohamed, Mansor and Abdullah 2012, p.26-39). In their findings, Mohamed, Mansor and Abdullah (2012, p.26-39) report that customer perception of hotel service quality varies from one segment/group of customers to others. They report that most respondents indicated satisfaction with the hotel services, but highlighted areas that the management needs to improve on. Khairizam, Azmi and Ahmat (2013, p.26) are also of the opinion that customer satisfaction is a key indicator of performance in the hotel industry. They point out that customers tend to be more satisfied with hotels that offer exemplary services and that such hotels usually outshine those that have not prioritized the quality of services. They argue that as the quality of services offered by hoteliers increases, so does the consumer demand. According to Khairizam, Azmi and Ahmat (2013, p.26) customers perceive the quality of a hotel based on it physical appearance and the actual quality of the amenities and facilities within the hotel. They point out that other factors that come into play as far as customer perception of service quality is concerned include the manner in which the hotel handles complaints, the staff grooming, friendliness and professionalism of the staff as well as the ease of checking in and out. In their study, Khairizam, Azmi and Ahmat (2013, p.26) wanted to establish how guests perceive hotel service quality, their focus being on Malaysian hotels. They report that the tangibility aspect, which includes the physical appearance of the facility and the appearance and professionalism of hotel staff, greatly influences the customer perception of quality. Gržinić (2007, p.81) also acknowledges the fact that the quality of service offered by a hotel plays an integral role in its success. He argues that complete quality management has become a trend that most hoteliers have adapted due to its potential to generate competitive advantage. He points out that quality today is shaped by a number of factors including the diverse and increasing consumer demands, increasing competition, globalization of markets and technological development. Chen and Chen (2014, p. 77-96) conducted a study to find out the factors that impact the quality of hotel services. They state that to improve competitiveness and ensure a healthy relationship with customers, most hotels are committed to ensuring delivery of high quality services. In their findings, they report that there is a positive correlation between a hotel’s customer relationship orientation and customers’ perceived quality. According to Chen and Chen (2014, p. 77-96) hotels that are able to maintain a good relationship with their customers is often perceived to have a better quality of services. Apart from that, their study also found out that customer perception of quality is influenced by the hotel corporate image, décor and physical environment, physical equipment as well as the manner in which the hotel responds to customer issues. Ngoc and Uyen (2015, p.284) opine that many people can now afford to dine in luxurious hotels. They point out that modern hotels are not only limited to offering foods, but also offer other additional services and amenities including boarding services and conference facilities. They state that just like in other businesses, customer retention is also important for hoteliers given the higher costs of attracting new clients. In their study, they sought to investigate the factors that impact customers’ satisfaction in luxurious hotels. They report that product quality, responsiveness, prices and staff reliability are some of the factors that affected customer satisfaction. Omanukwue (2012, p.60-70) examined how customers perceive service quality in a Parisian boutique hotel. She reports that the 2009 financial crisis had a significant impact on the hotel industry, but the industry has recovered and is now at a pre-crisis level. She is of the opinion that service quality has proved to be quite a challenging concept to define. However, scholars have been able to come up with more appropriate definitions which describe quality from three perspectives namely value, expectations and excellence (Omanukwue 2012, p.60-70). Using a questionnaire survey, Omanukwue was able to collect data from 151 respondents. The findings revealed that hotel customers remain price conscious and utilize prices as a benchmark for quality. Dixit (2013) opines that over the past few years, hoteliers have come under increased challenges as a result of the heated competition in the industry and the increased demand from consumers. He points out that traditionally, it has been the concern of the hospitality industry to cater to the desires and needs of customers. Using a hotel in India as the main case for analysis, Dixit reports that there is a strong relationship between customer satisfaction and perceived service quality. Mohsin and Lockyer (2010, p. 160 – 173) also sought to investigate how customers perceive the quality of services offered by luxury hotels. They report that some of the factors that had a significant influence on what clients thought of the service quality include room service, front office appearance and services, as well as in-house services. Their findings also reveal a significant different between customer expectations and the actual customer experiences. Methodology Research Design The study will utilize a qualitative research design. Under the qualitative research design, the researcher explores issues and phenomena by collecting and analyzing data. There are many approaches that qualitative researchers use including surveys, content analysis, observation and in-depth interviews. In this study, the researcher will make use of a questionnaire survey. Apart from allowing cross-case analysis and comparison, a qualitative design also allows for gaining insight into the populations’ personal experiences of the phenomenon under investigation. Additionally, it allows for the phenomenon to be described in more details Data Collection A close ended questionnaire will be used as the main tool for data collection.Using this questionnaire would allow the researcher to collect a lot of information from the population under investigation. According to Dixon, Singleton and Straits (2015, p.209) one advantage that a closed-ended questionnaire has is that it generates higher response rates than open-ended questionnaires. The questionnaire in the current study will be divided into two parts, with the first part capturing the participants’ demographic information and the second part presenting the main survey questions. Participants and Participant Selection To take part in the study, one has to be a guest at the Chesterfield Mayfair Hotel for the period within which the survey would be conducted. Purposeful sampling would be used in selection of participants. This approach is effective if the main objective of the study to understand the issue as opposed to highlighting its prevalence in the population. Data Analysis An inductive approach to data analysis will be used but elements of deductive analysis will also be included. The analysis process will also incorporate theoretical generalization as an attempt to verify the different theories concerning customer perception of service quality. Content analysis will be used to identify the common themes in the questionnaires. A cross-case constant comparative technique will then be utilized to place the data into emerging as well as preconceived themes. Provisional Timetable for the Research Activities Time Initial research and introduction Literature Review Methodology Review and presentation of proposal Preparing data collection tools Carrying out survey Analysis and interpretation of data Final preparation of study References List Chen, W., and Chen, M. (2013). Factors Affecting the Hotel's Service Quality: Relationship Marketing and Corporate Image. Journal of Hospitality Marketing & Management, 23(1), pp.77-96. Dixit, S. (2013). A Study of Guest's Expectation and Perception of Hotel Service Quality: Case of Khajuraho, India. Enlightening Tourism: A Pathmaking Journal, [online] 3(2). Available at: http://www.uhu.es/publicaciones/ojs/index.php/et/article/view/2100 [Accessed 30 Jun. 2016]. Dixon, J., Singleton, R. and Straits, B. (2015). The process of social research. Boston: Oxford University Press. Gržinić, J. (2007). Concepts of Service Quality Measurement in Hotel Industry. pp.81-90. Khairizam, S., Azmi, M. and Ahmat, N. (2013). Guest perception on service quality in hotel industry. International Journal of Undergraduates Studies, 2(2), pp.26-31. Mohamed, M., Mansor, N. and Abdullah, S. (2016). Measuring Perceived Service Quality of 4 Star Hotel: A Case Study of UK Hotel. Asian Journal of Business and Management Sciences, 2(6), pp.26-39. Mohsin, A. and Lockyer, T. (2010). Customer perceptions of service quality in luxury hotels in New Delhi, India: an exploratory study. Int J Contemp Hospitality Mngt, 22(2), pp.160-173. Murasiranwa, E., Nield, K. and Ball, S. (2010). Hotel Service Quality and Business Performance in five hotels belonging to a UK Hotel Chain. International CHRIE Conference-Refereed Track. Paper 11. [online] Available at: http://scholarworks.umass.edu/refereed/CHRIE_2010/Wednesday/11 [Accessed 30 Jun. 2016]. Ngoc, K. and Uyen, T. (2015). Factors Affecting Guest Perceived Service Quality, Product Quality, and Satisfaction–A Study of Luxury Restaurants in Ho Chi Minh City, Vietnam. JOAMS, pp.284-291. Omanukwue, E. (2012). Customer Perception of Service Quality in Boutique Hotel Le Six Paris. [online] pp.60-70. Available at: http://www.tsi.url.edu/img/user/content/file/3371__219.pdf. Read More