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Relationships Between Customers and Organizations - Case Study Example

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The paper 'Relationships Between Customers and Organizations' presents are many factors that do affect the success of the hospitality industry. The saturation of the market with many service providers is key among the problems that face hospitality marketers…
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Relationships Between Customers and Organizations
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satisfaction and its role in their retention There are many factors that do affect the success of thehospitality industry. The saturation of the market with many service providers is key among the problems that face hospitality marketers. Previous research that has been conducted in the area of hospitality reflects that customer satisfaction is the major determinant in the creation of brand loyalty and ensuring that customers keep coming back (Euromonitor 2010). The theory of relationship marketing is the major focus in ensuring that customers are satisfied and always come back to patronize the hospitality services that are provided (Kerr & May 2011, p. 451). The fact that the hospitality industry is seasonal serves to ensure that constant marketing is the only way to keep the customers interested in the services and other products that are offered (Gallicano & Van Rheede 2010, p. 26). There is need to ensure that connections with customers run throughout the year. This paper will be aimed at analyzing the extent to which customer satisfaction affects the retaining of customers in the hospitality industry. Additionally, the paper will attempt to analyze to what extent relationships between the customers and organizations are valued in order to satisfy them. The marketing communication methods will also be central in the determination of the way that relationships with customers and other stakeholders are maintained in a bid to creating the platform for the satisfaction of said customers. Introduction There is need for the generation of competitive advantage so as to ensure that customers are loyal to the hospitality outlet in question. This is in a bid to conquering the perennial problem of market saturation. Many hospitality outlets nearly offer the same products and services. This means that customers are more focused on the outlets that offer a unique range of products and services. The major focus of the hospitality industry today is the segmentation of the market so that a few ranges of products are offered that reflect the needs of a few people in the population (Boksberger & Laesser 2010, p. 311) (Montinaro & Sciascia 2011, p. 661). The fastest growing sector of the hospitality industry is that which deals with pets. It is amazing to learn that in the Americas alone, the only industry that competes with the pet hospitality industry is consumer electronics. Large chain hotels, kennels, airlines and other hospitality outlets have realized the potential of these types of business and are now working tirelessly to ensure that their customers are satisfied (ONeill & Carlbäck 2010). This means that it is now common to hear of spas and private suites that are customized for the comfort of primarily dogs and cats. There are many ways in which relationships with customers are maintained. Perhaps the most effective tool in marketing today is the use of the electronic media. This way, interest in services offered can be marketed throughout the year. Those outlets that have not invested in creatively advertising their products find that they do not have as high numbers of patrons as those that do aggressive marketing in an avalanche of communication methods (Brunner Sperdin & Peters 2010, p. 175). The techniques and organization methods that are responsible for the creation and maintenance of the relationships with customers are the major channels within which customer satisfaction is created. Discussion The hospitality industry is mostly characterized by travel and tourism (Boksberger, Sund & Schuckert 2010, p. 30). Both are considered as being outcomes of the relationships that exist between culture and the environment of a specific frontier. It is very difficult from the above discussion for hospitality outlets to have immense influence on the demand levels that are associated with tourism and travel (China Tourism Academy 2010). Their limitation is in the provision of services to those who either choose to travel or become tourists. The only way that customers can be attracted to a given hospitality outlet is for the marketing efforts of that outlet to primarily focus on the environmental and cultural attractions that draw tourists and travelers. It is however important to consider the level of services that are available in a given destination as it ultimately affects the type of tourist or traveler attracted by the destination (Jang & Ham 2010, p. 285). This means that competition for the best provider of services is inevitable. The provision of the highest quality and innovative services therefore plays a fundamental role in the satisfaction of customers. Those companies and other hospitality outlets that are synonymous with the highest quality innovative products are naturally the ones that attract the most affluent customer who desires only the best and who is not timid in his spending patterns (Hsu, Cai & Li 2010, p. 283). It is the desire of every hospitality outlet to have the capacity to attract and retain such a customer. Hotels are the major providers in the hotel industry and in most cases for the template of analysis of the entire hospitality industry. It is therefore important to consider two types of hotels. One that aggressively strives to improve its products and services while marketing them and another that offers the same services and products all year round without much improvement. There is no discussion that the one with the better, improved services and products which does marketing is the one that attracts customers and retain them. In addition to these, it goes without saying that the hotel with the better services is the one that is most profitable (Cross, Higbie & Cross 2010, p. 75). The hospitality industry is one that offers the same homogeneous services and products. Therefore, the outlets that best exemplify creativity and aggressive marketing is the one that is likely to be the basis of patronage by many customers. Competition is the major focus on those outlets that wish to satisfy and in turn retain customers. In order to outweigh the competition, hospitality providers must ensure that the central foci of their businesses are the satisfaction of customers. Many tourists and travelers whose opinion has been documented by a number of literatures concede that the perception that they have of the hospitality outlets is mainly shaped by the satisfaction of the desires that they have. There are many attributes that are considered. The service industry unlike the manufacturing one has very many variables that must be simultaneously balanced in order to ensure that customer desires are satisfied. Cleanliness (Enz 2010, p. 4), the attractiveness of the physical components of the outlet, the level of personalization of the service provided, the security within and without the facility, the reputation of the location the facility is, the relative standard of service weighted against that of the competition, the attractiveness of the images associated with the outlet and the opportunities available for relaxation and recreation are just but a few of the considerations that customers look at when judging the overall appeal of the hospitality outlet (Patterson & Pegg 2010, p. 265). The ease of access to the location is also key but is mostly a matter of the traveler unlike that of the tourist. There are loyalty programs that are associated with the leading hotel chains in the world. These programs are also largely determined by the level of services that are provided. It is also a matter of prestige as many of the loyalty programs are patronized by the most affluent people in the society. That in itself attracts a number of other customers who may want to be associated with the affluent. The tourist that has been discussed is a tad different from the traveler. Most tourist have conceded that if a destination is very attractive and had a profound impact on them, then they are likely to come back. This is albeit the fact that many tourists are attracted by destinations based on the culture and the environmental attractiveness (Park, Pae & Meneely 2010, p. 25). This means that in most cases, the tourist desires to visit as many destinations as possible in order to experience the avalanche of cultures and environments. The traveler however usually visits a destination for a fixed period of time in a given period in the calendar year. This is because the traveler is mostly usually on business trips. Therefore, if a given hospitality outlet satisfies him, then, he is guaranteed to revisit the place on all other subsequent trips to the location which may be a town in his resident country or abroad. As these travelers usually visit many destinations on business n many towns in a number of countries (UNWTO 2011, pp. 6), it is possible that they join loyalty programs that ensure that they patronize chain hotels present in many countries. It is therefore prudent for a tourist or customer to be satisfied in a given location so that his patronage is guaranteed even in other outlets in the chain. There are a number of reasons that have been advanced that are associated with why customers choose to visit the same location on subsequent trips. First, is the fact that is a customer is satisfied by the products and services that have been offered then, the customer will try to avoid making a mistake in choosing a different location that may not have the same level of products and services. Secondly, customers have cited that the prospect of meeting the same people in the location they had visited before is important in making the decision of coming back. This may be due to the level of service that staff advanced and other guests who may have been present (Hugol-Gential & Giboreau 2010, p. 637). Third, the emotional affection that is tied to a specific place is also a major determinant in coming back. This may be closely related to the activities that were being carried out in the location. It may be in terms of a cultural activity that a customer identified with or the environmental aesthetics that the customer may identify with. Fourth, the prospect of exploring the location better is also key. Some hospitality outlets usually have vast properties with an avalanche of attractions and activities which the customer may not have had the opportunity to explore in the first tour. Therefore, the customer may desire to come back and have the chance to explore all the available aspects of the hospitality outlet. The last factor that may play an important role is the chance of showing the hospitality outlets and its associates to other people. Again, the hospitality outlet must have had a profound impact on the customer for him to want to bring other people to have the same experience. The five points help in showing that the hospitality outlets must make all the stays of their customers memorable. This can mostly be guaranteed by making sure that the customers are satisfied every time they visit the place. Ultimately, satisfaction of the customer guarantees repeat business and in turn profitability. Customer satisfaction is also crucial in the identification of those elements that are central to affecting the purchase experience of the customer. Additionally, the initial purchase experience affects the post purchase experience which may be evidenced in further purchase that amounts to repeat business (Hopkins & Powers 2010, p. 190). There is a general consensus among hospitality providers that the satisfaction of a guest promotes a positive word of mouth that comes at no cost to the organization. The word of mouth also assists in the building of a credible reputation that may even be far more effective that that of conventional marketing techniques. Especially with the proliferation of social media like Facebook and Twitter, a positive feedback can go a long way in the promotion of the hospitality outlet on the internet (Murphy, Gil & Schegg 2010, p. 470). Also, a major point of consensus among researchers and hospitality experts is that the satisfaction of customers is the genesis of building customer loyalty. The outcome of loyalty in customers can only be the presence of a strong corporate image in the eyes of other potential customers. The reverse effect of having an unsatisfied customer is that the negative sentiments travel to more people than does positive sentiments. The worst thing that emanates from having an unsatisfied customer is the fact that only a small percentage (4%) reports their dissatisfaction to the business (Dominici & Guzzo 2011, p. 5). All those others who do not report will generate a negative word of mouth that spreads to a large number of people hence hurting the image of the hospitality outlet. The constant survey on the attributes that lead to the selection of hospitality outlets by customers and which in turn lead to either satisfaction or dissatisfaction is an area that hospitality outlets cannot afford to overlook. It is equally important in determining whether customers will return or whether they will spread good or bad word of mouth to other customers. Conclusion The discussion above has been instrumental in drawing a few conclusions. The first is that the satisfaction of customers is perhaps the most important attribute of the hospitality industry that decides whether customers come back for a retake of the products and services. The second conclusion that can be drawn is that the performance of the staff is important in influencing whether guests are satisfied or not. Human resource management must be of the highest quality in order to influence the activities of the staff in their treatment of guests. Third, is that the hospitality industry has a number of variable that contribute to the overall perception of the business by the customers. The quality of the hotel structure is as important an aspect as s the cleanliness or even the location and security of the premises. In order for customers to be satisfied, a balance between all variables must be struck. Finally, the marketing of the products and services is important so that customers are constantly aware of them throughout the year. In conclusion, it is prudent to state that the satisfaction of customers is very relevant in the repeat business by customers after the building of loyalty. References Boksberger, P. E., & Laesser, C. 2010. Segmentation of the Senior Travel Market by the Means of Travel Motivations. Journal of Vacation Marketing, 15(4), 311-322. Boksberger, P. E., Sund, K. J., & Schuckert, M. R. 2010. Between Past, Present and Future – Implications of Socio-demographic Changes in Tourism. In R. Conrady & M. Buck (Eds.). Trends and Issues in Global Tourism 2010 (pp. 29-36). Berlin, Germany: Springer-Verlag. Brunner Sperdin, A. and M. Peters 2010. What influences guests emotions? The case of high quality hotels. International Journal of Tourism Research 11(2): 171-183. China Tourism Academy 2010. Annual report of China outbound tourism development 2009/2010. Munich: Profil Verlag. Cross, R. G., Higbie, J. A., & Cross, D. Q. 2010. Revenue Managements Renaissance. Cornell Hospitality Quarterly, 50(1), 56-81. doi: 10.1177/1938965508328716 Dominici, Gandolfo & Guzzo, Rosa 2010. Customer Satisfaction in the Hotel Industry: A Case Study from Sicily. International Journal of Marketing Studies Vol. 2, No. 2 Enz, C. 2010. Key issues of concern in the lodging industry: What worries managers. Cornell Hospitality Report, 9(4) Euromonitor. 2010. Consumer Lifestyles – Switzerland, February 2010. Available at: Euromonitor Global Market Information database. [accessed December 21, 2011] Gallicano, R., & Van Rheede, A. 2010. Consumer response to Healthy Choice® nutrition labelling in an a la carte restaurant setting: A matter of willpower or being empowered. Conference Proceedings, EuroCHRIE Amsterdam - Passion for Hospitality Excellence 2010 October 25-27, 2010 Amsterdam, The Netherlands Hopkins, R.A. & Powers, T.L. 2010. Development and Test of New Dimensions of Altruistic Buying Behavior. Journal of Consumer Marketing, 26, 3 , 185–199 Hsu, C.H.C., Cai, L.A., & Li, M. 2010. Expectation, motivation, and attitude: A tourist behavioral model. Journal of Travel Research, 49(3), 282-296. Hugol-Gential, C. and Giboreau, A. 2010. “Methodoloy approach for the study of the interactions between waiters & customers through verbal and muktimodal resources”. From Services to Experiences in Tourism and the Hospitality Industry. 27th EuroCHRIE Annual Conference, October 2009, Helsinki, Finland, 631-637. Jang, S., & Ham, S. 2010. A double-hurdle analysis of travel expenditure: Baby boomer seniors versus older seniors. Tourism Management, 30, 372-380. Kerr, Anna & May, Daryl 2011. An exploratory study looking at the relationship marketing techniques used in the music festival industry. Journal of Retail & Leisure Property 9, 451–464. doi:10.1057/rlp.2011.8 Montinaro, M. & Sciascia, I. 2011. Market segmentation models to obtain different kinds of customer loyalty. Journal of Applied Sciences, 11(4), 655-662. Murphy, H. Gil A, & Schegg, R. 2010. An Investigation of Motivation to Share Online Content by Young Travelers — Why and Where, Eds. Gretzel, U., Law, R. & Fuchs, M. Proceedings of the International Conference. Lugano, Switzerland, February 10– 12, 467-479 ONeill, J. W., & Carlbäck, M. 2010. Do brands matter? A comparison of branded and independent hotels performance during a full economic cycle. International Journal of Hospitality Management, In Press, Corrected Proof. doi: 10.1016/j.ijhm.2010.08.003 Park, N., J. Pae and J. Meneely 2010. Cultural Preferences in Hotel Guestroom Lighting Design. Journal of Interior Design 36(1): 21-34. Patterson, I., & Pegg, S. 2010. Marketing the Leisure Experience to Baby Boomers and Older Tourists. Journal of Hospitality Marketing & Management, 18(2), 254-272 UNWTO 2011. International Tourism 2010: Multi-speed recovery. Available http://85.62.13.114/media/news/en/press_det.php?id=7331&idioma=E [Accessed 21 December, 2011] Read More
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