TABLE OF CONTENT......

PAGE
1.0 INTRODUCTION.2
1.1 CUSTOMER SATISFACTION IN HOTEL INDUSTRY..3
2.0

FIVE

THEORIES
.4
2.1
THEORIES
.3
3.0 FIVE PUBLICATIONS

IN THE SUBJECT AREA

AND

THEIR CONCEPTUAL

FRAMEWORK5
3.1
PUBLICATIONS
..4
4.0

THREE

SIGNIFICANCE

RELATED

TO

TOPIC6

THE

4.1

SIGNIFICANCE

RELATED
..6
5.0

APPROPRIATE

RESEARCH

DESIGN

FOR

THE

HOW

AND

STUDY..8
6.0

SAMPLING

METHOD

(S)

FOR

THE

STUDY;

WHY..9
6.1

HOW

AND

WHY
9
7.0 EXAMINE DATA COLLECTION METHOD (S) FOR THE STUDY ; HOW AND
WHY10
7.1

HOW

AND

WHY
.10
8.0 APPROPRIATE DATA COLLECTION METHOD (S) FOR THE STUDY; HOW AND
WHY11
8.1

PRIMARY

DATA
..11

8.2

SECONDARY

DATA
.12

1.0 CUSTOMER SERVICE

Customer Service is the provision of service to customers before, during and after a purchase. It
may vary by product, service, industry and individual customer. The perception of success of
such interactions depends on employees who can adjust themselves to the personality of the
guest. Customer service is also often referred to when describing the culture of the organization.
It concerns the priority an organization assigns to customer service relative to components such
as product innovation and pricing. In this sense, an organization that values good customer
service may spend more money in training employees than the average organization, or may
proactively interview customers for feedback. From the point of view of an overall sales process
engineering effort, customer service plays an important role in an organizations ability to
generate income and revenue. From that perspective, customer service should be included as part
of an overall approach to systematic improvement. One hearty customer service experience can
change the entire perception a customer holds towards organization.
Service Quality
Service quality is a comparison of expectations with performance. In other words, service quality
is the assessment of how well a delivered service conforms to the clients expectations. A
business with high service quality will meet customer needs whilst remaining economically
competitive. Improved service quality may increase economic competitiveness. This aim may be
achieved by understanding and improving operational processes, identifying problems quickly

and systematically, establishing valid and reliable service performance measures and measuring
customer satisfaction and other performance outcomes.

1.1 CUSTOMER SATISFACTION

It is obvious that customers are important stakeholders in organizations and their satisfaction is a
priority to management. Customer satisfaction has been a subject of great interest to
organizations and researchers alike. In recent years, organizations are obliged to render more
services in addition to their offers. The quality of service has become an aspect of customer
satisfaction. It has been proven by some researchers that service quality is related to customer
satisfaction. Others used service quality dimensions to evaluate service quality. What about the
relationship between customer satisfaction and service quality dimensions; the relationship
between service quality and its dimensions?
Customer satisfaction measures the extent to which expectations of customers are met. The
interaction between the front line officers and the customers provides a good source of
opportunities to create delight as it can be personalized and tailored to the specific needs and
wishes of the customer. During contacts with touch points in the company, more than customer
service can be delivered. The front line officer can surprise by showing a sincere personal
interest in the customer, offer some attention that can please or find solution to specific particular
needs. These front line officers are capable to develop a relationship between the customer and
the brand. These can be achieved by recruiting the right officers, motivating them continuously
and leading them in the right way.

Customer satisfaction emerged as a distinct area of inquiry in the 1970s (Churchill & Surprenant,
1982), and companies both big and small have realized the strategic benefits of service quality
and customer satisfaction as competition become more intense and global. The achievement of
customer satisfaction has become a good business practice that businesses strive to achieve
(Szymanski & Henard, 2000 cited in Yu et al, 2005).

1.1.1 Importance of customer satisfaction to businesses

Customer Satisfaction helps companies in many ways, some of which include, but not limited to:
1. Customer Satisfaction helps companies to evaluate their ability in meeting customers
needs and expectations effectively (Zeithaml et al, 2009).
2. It also helps companies to analyse the performance of an offering to customers in order to
identify areas for improvements as well as what areas customers consider to be very
important to them (Zeithaml et al, 2009).
3. Companies can predict customer retention and loyalty as well as organizational profitability
through satisfaction surveys. Research has suggested that customer satisfaction leads to
company profitability (Bei & Chiao, 2000; Heskett et al.,1997). Studies have shown a
positive correlation between customer satisfaction and customer retention and loyalty
(Zeithaml et al., 1996; Heskett et al., 1997). Reichheld (1990) asserted that customer
satisfaction accounted for about 40% of customer retention. In the automotive service
industry, customers who are satisfied with a dealer might buy multiple vehicles as their
income and status increase (especially high value vehicles) and also keep going back to that
6

dealer for every service throughout their lifetime. The figure below depicts the relationship
between satisfaction and customer loyalty.
4. Customers who are satisfied with a companys offering may tell others about it positive
word-of-mouth, just as dissatisfied customer also bad mouth the company to other.
Goodman (2009) suggested that dissatisfied customers tell on average ten people about the
company as against five people by satisfied customer. Goodman (2009) also asserted that it
cost five minutes to attract a new customer than to maintain a current customer. Therefore it
is imperative for service businesses to satisfied customer on a consisted basis.

1.1.2 Customer Satisfaction in Hotel Industry (Akroma Plaza Hotel)

Akroma Plaza Hotel can be located between Chapel Hill and Beach Road roundabout in
Takoradi. Akroma Plaza Hotel was chosen for the study because it is among the first five star
hotels in Sekondi-Takoradi. Their customers are companies and individuals who are within the
Sekondi-Takoradi metropolis and those outside the Western Region.

2.0 THE FIVE THEORIES USED TO DEVELOP THEORETICAL FRAMEWORK

7

2.1. Assimilation Theory

Assimilation theory is based on Festingers (1957) dissonance theory. Dissonance theory posits
that consumers make some kind of cognitive comparison between expectations about the product
and the perceived product performance. This view of the consumer post-usage evaluation was
introduced into the satisfaction literature in the form of assimilation theory. According to
Anderson (1973), consumers seek to avoid dissonance by adjusting perceptions about a given
product to bring it more in line with expectations. Consumers can also reduce the tension
resulting from a discrepancy between expectations and product performance either by distorting
expectations so that they coincide with perceived product performance or by raising the level of
satisfaction by minimizing the relative importance of the disconfirmation experienced.

2.2. Contrast Theory

Contrast theory was first introduced by Hovland, Harvey and Sherif (1987). Contrast theory was
defined as the tendency to magnify the discrepancy between ones own attitudes and the attitudes
represented by opinion statements. Contrast theory presents an alternative view of the consumer
post-usage evaluation process than was presented in assimilation theory in that post-usage
evaluations. While assimilation theory posits that consumers will seek to minimize the
discrepancy between expectation and performance, contrast theory holds that a surprise effect
occurs leading to the discrepancy being magnified or exaggerated. According to the contrast
theory, any discrepancy of experience from expectations will be exaggerated in the direction of
discrepancy. If the firm raises expectations in its advertising, and then a customers experience is
only slightly less than that promised, the product/service would be rejected as totally un8

satisfactory. Conversely, under-promising in advertising and over-delivering will cause positive

disconfirmation also to be exaggerated.

2.3. Disconfirmation Theory

Disconfirmation theory argues that satisfaction is related to the size and direction of the
disconfirmation experience that occurs as a result of comparing service performance against
expectations. Ekinci et al (2004) states Satisfaction is the guests fulfilment response. It is a
judgement that a product or service feature, or the product or service itself, provided (or is
providing) a pleasurable level of consumption-related fulfilment, including levels of under- or
over-fulfilment. Mattila, & ONeill, J.W. (2003) discuss that Amongst the most popular
satisfaction theories is the disconfirmation theory, which argues that satisfaction is related to the
size and direction of the disconfirmation experience that occurs as a result of comparing service
performance against expectations. Basically, satisfaction is the result of direct experiences with
products or services, and it occurs by comparing perceptions against a standard (e.g.
expectations). Research also indicates that how the service was delivered is more important than
the outcome of the service process, and dissatisfaction towards the service often simply occurs
when guests perceptions do not meet their expectations.

2.4. Cognitive Dissonance Theory

Cognitive dissonance is an uncomfortable feeling caused by holding two contradictory ideas

simultaneously. The theory of cognitive dissonance proposes that people have a motivational
drive to reduce dissonance by changing their attitudes, beliefs, and behaviours, or by justifying
or rationalizing them. The phenomenon of cognitive dissonance, originally stated by Festinger in
1957, has been quickly adopted by consumer behaviour research. Described as a
psychologically uncomfortable state that arises from the existence of contradictory (dissonant,
non-fitting) relations among cognitive elements (Festinger 1957). Cognitive dissonance revealed
high exploratory power in explaining the state of discomfort buyers are often in after they made a
purchase.

2.5.

The service quality model[edit]

A model by Kaj Storbacka, Tore Strandvik, and Christian Grnroos (1994), the service quality
model, is more detailed than the basic loyalty business model but arrives at the same conclusion.
[1]

In it, customer satisfaction is first based on a recent experience of the product or service. This

assessment depends on prior expectations of overall quality compared to the actual performance
received. If the recent experience exceeds prior expectations, customer satisfaction is likely to be
high. Customer satisfaction can also be high even with mediocre performance quality if the
customer's expectations are low, or if the performance provides value (that is, it is priced low to
reflect the mediocre quality). Likewise, a customer can be dissatisfied with the service encounter
10

and still perceive the overall quality to be good. This occurs when a quality service is priced very
high and the transaction provides little value.
This model then looks at the strength of the business relationship; it proposes that this strength is
determined by the level of satisfaction with recent experience, overall perceptions of quality,
customer commitment to the relationship, and bonds between the parties. Customers are said to
have a "zone of tolerance" corresponding to a range of service quality between "barely adequate"
and "exceptional." A single disappointing experience may not significantly reduce the strength of
the business relationship if the customer's overall perception of quality remains high, if switching
costs are high, if there are few satisfactory alternatives, if they are committed to the relationship,
and if there are bonds keeping them in the relationship. The existence of these bonds acts as an
exit barrier. There are several types of bonds, including: legal bonds (contracts), technological
bonds (shared technology), economic bonds (dependence), knowledge bonds, social bonds,
cultural or ethnic bonds, ideological bonds, psychological bonds, geographical bonds, time
bonds, and planning bonds.
This model then examines the link between relationship strength and customer loyalty. Customer
loyalty is determined by three factors: relationship strength, perceived alternatives and critical
episodes. The relationship can terminate if: 1) the customer moves away from the company's
service area, 2) the customer no longer has a need for the company's products or services, 3)
more suitable alternative providers become available, 4) the relationship strength has weakened,
5) the company handles a critical episode poorly, 6) unexplainable change of price of the service
provided.
The final link in the model is the effect of customer loyalty on profitability. The fundamental
assumption of all the loyalty models is that keeping existing customers is less expensive than
11

acquiring new ones. It is claimed by Reichheld and Sasser (1990) that a 5% improvement
incustomer retention can cause an increase in profitability between 25% and 85% (in terms of net
present value) depending upon the industry. However, Carrol and Reichheld (1992) dispute these
calculations, claiming that they result from faulty cross-sectional analysis.
According to Buchanan and Gilles (1990), the increased profitability associated with customer
retention efforts occurs because:

The cost of acquisition occurs only at the beginning of a relationship: the longer the
relationship, the lower the amortized cost.

Account maintenance costs decline as a percentage of total costs (or as a percentage of

revenue).

Long term customers tend to be less inclined to switch and also tend to be less price
sensitive. This can result in stable unit sales volume and increases in sales volume.

Long term customers may initiate free word of mouth promotions and referrals.

Long term customers are more likely to purchase ancillary products and highmargin supplemental products.

Long term customers tend to be satisfied with their relationship with the company and are
less likely to switch to competitors, making market entry or competitors' market share gains
difficult.

Regular customers tend to be less expensive to service because they are familiar with the
processes involved, require less "education," and are consistent in their order placement.

12

Increased customer retention and loyalty makes the employees' jobs easier and more
satisfying. In turn, happy employees feed back into higher customer satisfaction in a virtuous
circle.

For this final link to hold, the relationship must be profitable. Striving to maintain the loyalty of
unprofitable customers is not a viable business model. That is why it is important for marketers
to assess the profitability of each of its clients (or types of clients), and terminate those
relationships that are not profitable. In order to do this, each customer's "relationship costs" are
compared to their "relationship revenue." A useful calculation for this is the patronage
concentration ratio. This calculation is hindered by the difficulty in allocating costs to individual
relationships and the ambiguity regarding relationship cost drivers.
Expanded models[edit]

Virtuous Circle
Schlesinger and Heskett (1991) added employee loyalty to the basic customer loyalty model.
They developed the concepts of "cycle of success" and "cycle of failure". In the cycle of success,
an investment in your employees ability to provide superior service to customers can be seen as
13

a virtuous circle. Effort spent in selecting and training employees and creating a corporate culture
in which they are empowered can lead to increased employee satisfaction and employee
competence. This will likely result in superior service delivery and customer satisfaction. This in
turn will create customer loyalty, improved sales levels, and higher profit margins. Some of these
profits can be reinvested in employee development thereby initiating another iteration of a
virtuous cycle.
Fredrick Reichheld (1996) expanded the loyalty business model beyond customers and
employees. He looked at the benefits of obtaining the loyalty of suppliers, employees, bankers,
customers, distributors, shareholders, and the board of directors.
Satisfaction-profit-chain (SPC) model[edit]
The satisfaction-profit chain is a model that theoretically develops linkages and then enables
researchers to test them statistically for a firm using customer data (both from surveys and other
sources). The satisfaction-profit chain has been described by Anderson and Mittal (2000) in a
paper published in the Journal of Service Research. [2] The satisfaction-profit-chain was tested in
the context of banking industry showing that product and services improvements indeed were
associated with customer perceptions, which led to beneficial customer behaviors such as
repurchase, and desirable financial outcomes such as increased sales and profitability [3] The
satisfaction-profit-chain, as a methodology for managing customer loyalty and firm profitability,
is also applicable in business-to-business markets, irrespective of whether the B2B firm sells
goods and/or services.[4]
The satisfaction-profit-chain refers to a chain of effects whereby increased performance on key
attributes leads to improvements in overall satisfaction, which in turn affects loyalty intentions
14

and behaviors. The increased customer loyalty is shown to affect short- and long-term financial
outcomes including sales, profitability, and stock price. More recently, some studies show that
especially in the context of services such as retailing and financial services, employee
satisfaction can play a critical role in enhancing customer loyalty. This happens because both
customer satisfaction and employee satisfaction can mutually reinforce each other, and promote
stronger customer loyalty.[5] More specifically, for a given level of overall satisfaction, customer
loyalty is disproportionately stronger when customers perceive that employees are also satisfied.
The SPC model has become the basis of a large body of empirical research showing the strong
impact of customer satisfaction on customer loyalty. Research has clearly shown that one of the
best ways to increase customer loyaltymeasured as repurchase intentions and/or repurchase
behavioris by increasing customer satisfaction (more satisfied customers are more loyal, in
general).[6][7][8] Though the relationship is positive, research shows there are many differences:
1) The effect of customer satisfaction on customer loyalty can vary based on customer
demographics and segments, such that it is stronger for some demographic groups and segments
than others.[9][10][11][12]
2) The effect of customer satisfaction and customer loyalty, and subsequent financial outcomes
for firms, can vary based on industry. Specifically, factors such asgoods versus services
industry, degree of competition or concentration in the industry, the utilitarian or hedonic nature
of products, and customers' switching costs can affect the nature (non-linearity) and strength of
the link between customer satisfaction and customer loyalty.[13][14][15][16][17]
3) The measurement of loyaltyespecially for customers is multi-faceted. Customer loyalty
includes a variety of outcomesintentions and behaviors associated with repurchase,[18][19] word15

of-mouth,[20][21] complaint behaviors,[22][23] share-of-wallet or the relative proportion of purchasing

from a single firm relative to customer's total purchasing,[24] and likelihood to recommend.[25][26]

. It is claimed by Reichheld and Sasser (1990) that a 5% improvement incustomer retention can
cause an increase in profitability between 25% and 85% (in terms of net present value)
depending upon the industry. However, Carrol and Reichheld (1992) dispute these calculations,
claiming that they result from faulty cross-sectional analysis.
According to Buchanan and Gilles (1990), the increased profitability associated with customer
retention efforts occurs because:

PUBLICATIONS

Dimensions of service quality[edit]

A customer's expectation of a particular service is determined by factors such as
recommendations, personal needs and past experiences. The expected service and the perceived
service sometimes may not be equal, thus leaving a gap. The service quality model or the GAP
16

model developed by a group of authors- Kevin, Kristine and Berry at Texas and North
Carolina in 1985, highlights the main requirements for delivering high service quality. It
identifies five gaps that cause unsuccessful delivery. Customers generally have a tendency to
compare the service they 'experience' with the service they 'expect' . If the experience does not
match the expectation, there arises a gap. Ten determinants that may influence the appearance
of a gap were described by Parasuraman, Zeithaml and Berry. [5] in the SERVQUAL model:
reliability, responsiveness, competence, access, courtesy, communication, credibility, security,
understanding the customer and tangibles.
Later, the determinants were reduced to five: [6] tangibles; reliability; responsiveness; service
assurance and empathy in the so-called RATERmodel.
Also, it has been stated that service quality is the overall assessment of a service by the
customers, (Eshghi et al., 2008, p.121). Also, the five dimension of SERVQUAL model has been
proven to be the main yardstick used by most of the researchers in the evaluation of service
quality (Wilson et al., 2008, p. 79; Bennett & Barkensjo, 2005, p. 101, Negi, 2009; Wang &
Hing-Po, 2002). This idea generates an assumption that each of the five dimensions of
SERVQUAL model could have a direct relationship with service quality. (Figure 2) The question
that arose from this assumption is that: Is there a significant relationship between Service
quality and the five dimensions of SERVQUAL model? `
Relationship Equal to

Figure 2: The relationship between customer satisfaction

and Service quality for this study

If customers agree that they are satisfied and give the reasons for satisfaction as service quality;
service quality dimension has significant relationship with service quality and customer
17

satisfaction, then a conclusion could be drawn that service quality has a significant relationship
with customer satisfaction and with service quality dimensions. Based on these, the research
hypotheses were on the fact that service quality dimension had significant relationship with
customer satisfaction and with service quality. The hypotheses tested were:
H1: Customer satisfaction has significant relationship with Service quality dimensions
H2: Service quality has significant relationship with service quality dimensions
H3: Customer satisfaction has a significant relationship with service quality
Service Quality
Customer satisfacti

The SERVQUAL model was developed by Zeithaml et al (1988) to measures the quality of
service on five identified quality dimension. This scale is designed to measure the difference
between customers' expectations and perception (gap 5) on a 22-item scale, representing five
service quality dimensions, explained below.
Reliability: how well can the company deliver on its promises dependably and accurately?
Assurance: knowledgeable and courtesy of employees and their ability to inspire trust and
confidence
Responsiveness: willingness to help customers and provides prompt service
Empathy: caring, individualised attention the firm provides its customers

18

Tangibles: appearance of physical facility, equipment and staff

Brady and Cronin (2001) classified service dimensions into: interaction (attitude, behaviour and
expertise), physical environment (ambient, design and social factors) and outcome quality
(waiting time, tangible and valence).
The model is can be referred to as a diagnostic tool for identifying broad areas of a company's
service quality strengths and weaknesses (Tan and Pawitra, 2001).
Some of benefits of the SERVQUAL methodology are summarised below.
It gives customers the opportunity to offer their views regarding service encounters.
It enables management to look at the perceptions from both business and customers' perspective.
By closing the gaps, businesses can use the information generated to formulate strategies to
ensure customer expectations are fulfilled on a consisted basis (Tan and Pawitra, 2001).
According to Tan and Pawitra (2001), SERVQUAL is limited as it addresses only continuous
improvement in a fast moving world where continuous improvement alone may not ensure
business success unless blended with service and product innovation. Shen et al. (2000)
emphasise the need for innovation as the key to becoming competitive in the global economy.
Brito et al., (2007, p. 466) also suggested that the use of dimensions unlike the attribute
themselves are limited in giving "...specific guidance on where to act in the design

19

"From satisfaction to delight: a model for the hotel industry",International Journal of

Contemporary Hospitality Management.

Loyalty of a firms customer has been recognised as the dominant factor in a business
organizations success. This study helps us extend our understanding of the relationship between
customer loyalty, customer satisfaction, and image. This is of considerable interest to both
practitioners and academics in the field of hospitality management. The objective of this research
is to identify the factors of image and customer satisfaction that are positively related to
customer loyalty in the hotel industry. Using data collected from chain hotels in New Zealand,
the findings indicate that hotel image and customer satisfaction with the performance of
housekeeping, reception, food and beverage, and price are positively correlated to customer
loyalty.
Author(s):
Edwin N. Torres (Department of Hospitality and Tourism Management, Purdue
University, West Lafayette, Indiana, USA)
Sheryl Kline (Department of Hospitality and Tourism Management, Purdue University,
West Lafayette, Indiana, USA)
Citation:
20

Edwin N. Torres, Sheryl Kline, (2006) "From satisfaction to delight: a model for the hotel
industry",International Journal of Contemporary Hospitality Management, Vol. 18 Iss: 4,
pp.290 - 301
DOI
http://dx.doi.org/10.1108/09596110610665302
Downloads:
The fulltext of this document has been downloaded 8243 times since 2006
Abstract:
Purpose
This article seeks to develop a managerial model that will aid in the effective
management of customer relations. This study explains in detail the concepts of
satisfaction and delight; their antecedents and potential outcomes.
Design/methodology/approach
An extensive review of existing customer delight literature reveals the key concepts
necessary for customer delight to occur.
Findings
Customer delight is a better measure of customer relationship management than
customer satisfaction. Delight is likely to generate positive business results such as word
ofmouth communications, loyalty and increased profitability. Using existing literature a
model is developed.

21

Practical implications
The proposed model can be used by managers to achieve customer delight in their
organizations. It can also be used to gain a better understanding of the process of
managing customer relations.

Originality/value
In the last few years the concept of customer delight has been taking precedence over
the concept of satisfaction. Despite such emphasis, there are few published articles
relating to this topic in the hotel industry. The study uses customer delight literature from
various industries and attempts to apply such knowledge to the hospitality industry.

Keywords:
Customer

satisfaction, Customer

relations, Hotels, Human

resource

management, Customer service management

Type:
Conceptual paper
Practical implications
The research conducted helps hotel operators to identify the behaviors and actions that
lead their guests to be delighted. By knowing this information, appropriate steps can be
taken in the selection and development of staff that will lead towards greater customer
engagement.
22

Originality/value
In the hospitality literature, much information exists on what to do to correct negative
service experiences. However, a relatively smaller number of articles highlight how to
create great service experiences for the guests. This article provides a theoretically sound
and practically useful framework to delight hotel guests in the hotel industry.

3
From customer satisfaction to customer delight: Creating a new standard of service for the
hotel industry

Author(s):

23

Edwin N. Torres (Rosen College of Hospitality Management, University of Central

Florida, Orlando, Florida, USA)
Sheryl Kline (Alfred Lerner College of Business and Economics, University of Delaware,
Newark, Delaware, USA)
Citation:
Edwin N. Torres, Sheryl Kline, (2013) "From customer satisfaction to customer delight:
Creating a new standard of service for the hotel industry", International Journal of
Contemporary Hospitality Management, Vol. 25 Iss: 5, pp.642 - 659
DOI
http://dx.doi.org/10.1108/IJCHM-Dec-2011-0228
Downloads:
The fulltext of this document has been downloaded 5239 times since 2013
Abstract:
Purpose
The purpose of this paper is to provide a typology of customer delight in the hotel
industry. By doing so, it identifies patterns by which hotels delight their guests. The paper
explores the Torres and Kline model in light of the data and proposes an addition to the
model.

24

Design/methodology/approach
Content analysis is utilized to analyze letters of customer feedback provided by several
hotels. A codebook was created, letters were coded by two raters and interrater reliability
was calculated.
Findings
The most frequently mentioned codes included: taking care of the guest's needs,
exceptional friendliness, professionalism of staff, employees going outside of the call of
duty and problemsolving skills. Based on this information the authors propose the
following delight types: fulfillment delight, charismatic delight, professional delight,
comparative delight, problem resolution delight. It was also found that the culture of an
organization has an impact on the type of delight that is most prevalent.
Practical implications
The research conducted helps hotel operators to identify the behaviors and actions that
lead their guests to be delighted. By knowing this information, appropriate steps can be
taken in the selection and development of staff that will lead towards greater customer
engagement.
Originality/value
In the hospitality literature, much information exists on what to do to correct negative
service experiences. However, a relatively smaller number of articles highlight how to
create great service experiences for the guests. This article provides a theoretically sound
and practically useful framework to delight hotel guests in the hotel industry.

25

Keywords:
Hospitality

management, Hotels, Customer

satisfaction, Customer

delight, Hotel

operations, Content analysis

Type:
Research paper
Publisher:
Emerald Group Publishing Limited

4
Global Journal of Management and Business Studies. ISSN 2248-9878 Volume 3, Number 5
(2013), pp. 545-548 Research India Publications http://www.ripublication.com/gjmbs.htm
From Customer Satisfaction to Customer Delight: A New Trend in Hospitality Industry Gaurav
Purohit1 and Divya Purohit2 1 International Institute of Professional Studies, Devi Ahilya
University Khandwa Road, Indore, India. 2 Institute of Management Studies, Devi Ahiliya
26

University Khandwa Road, Indore, India. Abstract Hospitality industry is an ever growing
industry; this is supported by the inflow of tourists figures from different parts of the world. This
industry is extremely competitive as many trend setting hotels have made their entry in different
parts of the world, thanks to the concept of globalization. This amount of competition does not
allow any organization in the industry to be satisfied simply with customer satisfaction and this
has been replaced with the more vibrant concept of customer delight. This paper elaborates on
how the hospitality industry has moved over the period of time and is struck with the concept of
customer delight. Delight has its impact on the firms financial statements as well, because it
directly leads to customer loyalty. Customer loyalty is the outcome of customer delight and
customer loyalty is the need of every firm for its successful operation. Hospitality industry is
growing exponentially with the rate of 8% plus and therefore its imperative for every firm not
just to generate new customers but also to retain them. Customer delight if maintained for a
considerable period leads to the generation of goodwill which in turn increases the Brand value
of the firm in hospitality industry. Keywords: Customer Delight, Customer Satisfaction
,Customer Loyalty and Hospitality Industry. 546 Gaurav Purohit et al 1. Introduction Customer
satisfaction is the perception of the customers towards the performance of the firm, based on the
expectation and the perception gap the firm can analyse the degree of variation required to
satisfy the customers in terms of the services. Hence it can be accepted as a parameter for
improving the performance of the firm. But the current scenario does not just demand a
parameter for measurement of the performance but requires a little more effort from the side of
the managers and the firm itself. This is validated by the fact that most of the firms are in the
constant business of strategizing to stand at an edge over their competitors. Market scanning and
screening is and essential tool for assessing where one stands in the race. But those who actually
27

understand the trend have realized that market has moved far ahead of the time where concepts
like customer satisfaction were used. To delight guests, one must depart from the confines of
hotel lobbies and rooms and take a journey into the minds of guests. With most of the firms
stricking the bear minimum level of satisfaction one needs to give something extra to the
customers, something more than just what is expected. That little extra brings in the delight
factor. Delight determines the amount of extra efforts taken by the firms. Customer delight
involves going beyond satisfaction to delivering what can be best described as a pleasurable
experience for the client. Patterson (1997). Delight therefore entails a stronger emotion and a
different physiological state than satisfaction. As far as the hospitality industry of the world is
concerned there are a specific standards meant to be maintained by the firms that desire to be in a
certain cadre in the industry. Therefore there would not be any difference if the firms stick to
those bear minimum standards. The need is to challenge ones own performance and improve it
with constant efforts. Customer delight has to be the prime aim of the hospitality firms .
Hospitality industry as such is known for its direct link with customers and its a known fact that
this is the only industry to refer to them as the guests not the customers or the clients. With this
distinction one can just not do without treating them as god .The valued association with these
guests can not just fetch more customers but also generate a word of mouth publicity useful for
the enhancement of the firms business. The customer delight is the primary factor responsible for
the generation of customer loyalty factor, because the delighted customers only become the loyal
ones. In the hospitality industry interest in the subject of customer delight has recently emerged
(Torres and Kline, 2006; Crotts and Magnini, 2010; Magnini et al., 2011). The hospitality
industry has evolved as the primary industry of the world for the fact that it assists the second
largest industry and that is the tourism industry. With the concepts like the sustainable tourism
28

and eco tourism the hospitality industry has also been give new avenues for growth. The concept
of globalisation which allows an equal opportunity to all the firms in the world to share a
common platform , makes it even more indispensable for the firms to satisfy the end users to an
extent that they become delighted and then loyal in future . this approach also back up the
financial health of the firm which is bound to improve for the simple reason not enough
resources will be used in developing new customers . From Customer Satisfaction to Customer
Delight: A New Trend in Hospitality 547 The customer loyalty works on the construct of:
Generating a wow reaction Delivery of unexpected results Personal touch feeling Makes the
customer feel valued Appear genuine First contact point Unexpected positive service brings
in a feeling which is magnificent and can be termed as wow. In this course of action, many
activities are involved like a proper ambience , greetings, welcome, staff behaviour ,security etc.
but many a times it could be brought by a simple gesture of appeasing them , by sending a subtle
message through services- that you are important! Personal touch feeling is when guest gets to
know that he is being treated as the king on an individual basis. When you value someone you
would never want to miss an opportunity to make him feel important and that is how the guest in
hospitality should be treated and this could be a delight factor. Of course not every demand can
be met therefore it is the responsibility of the service provider to make an attempt to explain how
interested he is in sorting out the problem area and meet the demand there after. To be genuine,
try to associate with the guest by sharing a common platform and reporting exactly what can be
delivered . There are special efforts taken on the part of the people from the industry to make the
first impression on the guest because this is what will stay on with him forever. 2. Conclusion
Hospitality industry rests on the concept of delivering the best service possible to the guest or the
client and if they fail to attempt, there can be serious implications because most of the market
29

players have risen above the concept of satisfaction and are adamant in delivering services that
may surprise the guest and bring about a feeling that he may live up with for a longer period.
This length of the period will determine whether the customer would be loyal or not. There are
several big wheels in the market and their presence has made it mandatory for every player or
firm to be exceptionally efficient in service performance. If the customer is delighted and
contended he would even be loyal to the firm in a longer course. This concept of customer
loyalty is the outcome of customer delight. Reference [1] Bowen, J.T.(1997) "A market-driven
approach to business development and service improvement in the hospitality industry",
International Journal of Contemporary Hospitality Management, Vol. 9 Iss: 7, pp.334 344. 548
Gaurav Purohit et al [2] Kandampully, J.(2006) "The new customer-centred business model for
the hospitality industry", International Journal of Contemporary Hospitality Management, Vol.
18 Iss: 3, pp.173 187. [3] Magnini, V., Crotts, J. and Zehrer, A. (2010),(a) Identifying drivers
of customer delight through travel blog analysis, Journal of Travel Research, Vol. 49 No. 2, pp.
153-164. [4] Magnini, V., Crotts, J. and Zehrer, A. (2011),(b) Understanding customer delight:
an application of travel blog analysis, Journal of Travel Research, Vol. 50 No. 5, pp. 535-545.
[5] Patterson, K. (1997), Delighted clients are loyal clients, Rough Notes, Vol. 140 No. 3, pp.
221-34. [6] Torres, E. and Kline, S.F. (2006), From customer satisfaction to delight: a model for
the hotel industry, International Journ
5
Quality function deployment: An extended framework for service quality and customer
satisfaction in the hospitality industry

Miyoung Jeonga1, ,

Haemoon Oha2
30

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doi:10.1016/S0278-4319(98)00024-3
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Abstract
Research on service quality and customer satisfaction has become significant in the hospitality
industry. Nonetheless, most previously proposed or introduced research paradigms have focused
exclusively on customers without equally emphasizing the intra-organizational service
generation and delivery processes. In contrast, this study considers both external and internal
service management issues and subsequent service innovations based on the framework of
Quality Function Deployment (QFD). QFD and its relationship to similar concepts are explained.
Next, this study provides an overview of the QFD process and develops a hypothetical
application in the lodging industry in order to illustrate future application and analysis strategies.
31

Some benefits and disadvantages of the QFD process are discussed as compared to extant service
quality and customer satisfaction paradigms. Finally, suggestions and directions are offered for
future applications, with particular interest in hospitality-specific service management issues.
Keywords

Quality function deployment or QFD;

Customer satisfaction;

Service process;

Service innovations;

Service design;

Service quality
Miyoung Jeong Haemoon Oh

Corresponding author. Tel.: 001 814 234 9799; fax:

001 814 863 4257; e-mail: mxj116@psu.edu.

Copyright 1998 Elsevier Science Ltd. All rights reserved.
Miyoung Jeong is currently a Ph.D. candidate in the School of Hotel, Restaurant, and
Recreation Management at the Pennsylvania State University. Her major area of interest is the
applications and impact of information technology in the hospitality industry.
Haemoon Oh is an assistant professor in the Department of Hotel, Restaurant, and Institution
Management at the Iowa State University. He earned his doctoral degree in hospitality marketing
from the school of Hotel, Restaurant, and Recreation Management at the Pennsylvania State
University. His major areas of research are service quality and consumer satisfaction.

32

4.0 THREE SIGNIFICANCE RELATED TO THE TOPIC

State any three significance related to your topic (Your significance must show theoretical,
practical and policy implications
Purpose: The main purpose of this study is to examine the relationship between customer
satisfaction and service quality in service sectors with respect to the service quality dimensions.

Practical implications
The research conducted helps hotel operators to identify the behaviors and actions that lead
their guests to be delighted. By knowing this information, appropriate steps can be taken in the
selection and development of staff that will lead towards greater customer engagement
Implication/Contribution: The findings imply that service quality is not the only factors that
could lead to customer satisfaction in service sectors; that service quality dimension varies in the
different service sectors. The findings suggest that to provide quality service in order to satisfy
customers, organizations in this kind of service sectors need to improve on the dimensions of
service quality. Also, to provide total satisfaction to customers, the service sectors need to
improve on the other factors that were given as reasons for satisfaction. This study contributes to
existing theories by confirming or adding value to the relationships that are involved in customer
satisfaction, service quality and SERVQUAL dimensions. It provides results that could be useful
to managers in business organisations for strategic planning.
1.4. Purpose of the study
33

The purpose of this study is to examine the relationship between customer satisfaction and
service quality in service sectors with respect to the service quality dimensions
A research like this is essential to assess and improve service delivery and design, because it will
provide management with data that they can use in making inferences about the customers.
(Wilson et al. 2006, 27). Thus the results of this study should be proved useful for academics;
business in the field of marketing and management researchers of customer satisfaction and
service quality especially in service sector organizations.

Practical implications
The research conducted helps hotel operators to identify the behaviors and actions that
lead their guests to be delighted. By knowing this information, appropriate steps can be
taken in the selection and development of staff that will lead towards greater customer
engagement.

Originality/value
In the hospitality literature, much information exists on what to do to correct negative
service experiences. However, a relatively smaller number of articles highlight how to
create great service experiences for the guests. This article provides a theoretically sound
and practically useful framework to delight hotel guests in the hotel industry.

34

Practical implications
The proposed model can be used by managers to achieve customer delight in their
organizations. It can also be used to gain a better understanding of the process of
managing customer relations.

Originality/value
In the last few years the concept of customer delight has been taking precedence over
the concept of satisfaction. Despite such emphasis, there are few published articles
relating to this topic in the hotel industry. The study uses customer delight literature from
various industries and attempts to apply such knowledge to the hospitality industry.

Practical implications
The proposed model can be used by managers to achieve customer delight in their
organizations. It can also be used to gain a better understanding of the process of
managing customer relations.

Originality/value
In the last few years the concept of customer delight has been taking precedence over
the concept of satisfaction. Despite such emphasis, there are few published articles
relating to this topic in the hotel industry. The study uses customer delight literature from
various industries and attempts to apply such knowledge to the hospitality industry.
35

1.1.2. Reasons for researching in this area

The importance of customers in the business process has made it vital to always conduct
research about customers. There has always been the need for customer research before,
during and after sales, because of changes that may occur in the business process.
It has been proven by an author that an organization that consistently satisfies its
customers, enjoy higher retention levels and greater profitability due to increase customer
loyalty (Wicks & Roethlein, 2009, p.83). For this reason every company works hard
daily to win the hearts of customers by satisfying them in order that they become loyal
customers to their brands in order to increase sales and profit. When customers have good
perceptions about a brand, they will always choose to go for the brand, because
consumers form their preferences relative to perceptions and attitudes about the brands
competing in their minds. (Larreche, 1998, p. 152). To get these loyal customers,
companies must create relationships with the customers. To create relationship with
customers, companies need to conduct research to answer questions on how the
customers make their purchasing decision and whether they are pleased with what the
organization provides to them as offer in terms of product quality, service quality, price,
etc.
Thus customers will always prefer a product or service that gives them maximum
satisfaction. But how will the organization know whether the consumers consumption
habits have changed, or if they are well served? How will the organization know if
competitors brands are doing better than theirs, which can trap their customers? With the
increasing number of businesses and growing competitions today, each company wants to
36

be the customers first choice. To achieve this, organizations need to answer the questions
above via continuous research in this area so as to lead the organizations to their twin
objective of satisfying their customers and making profits.
Because customer satisfaction is the main concern of business sectors of today, their
researchers are always conducting research about the customers especially on what
relates to their satisfaction. Moreover, because this problem of satisfaction concerns the
most unpredictable stakeholder in the business environment (the customers), who
remains the main character that keeps the business in operation; and because satisfaction
varies and changes among individuals, there is a need for continuous research in this area.
Keywords:
Customer

satisfaction, Customer

relations, Hotels, Human

resource

management, Customer service management

Type:
Conceptual paper
Practical implications
The research conducted helps hotel operators to identify the behaviors and actions that
lead their guests to be delighted. By knowing this information, appropriate steps can be
taken in the selection and development of staff that will lead towards greater customer
engagement.

37

Originality/value
In the hospitality literature, much information exists on what to do to correct negative
service experiences. However, a relatively smaller number of articles highlight how to
create great service experiences for the guests. This article provides a theoretically sound
and practically useful framework to delight hotel guests in the hotel industry.
If there's any place where customers are likely to be paying attention to the type of service they
receive, it's within the hospitality industry. From restaurants to hotels and everything in between,
your job as a hospitality service provider is to maintain customer happiness and satisfaction.
Keep your customers at the forefront of your operational plans to hold your hospitality business
afloat.

Gone are the days when customers were happy just receiving "please" and "thank you" or getting
service with a smile. Although those go into the recipe for proper etiquette, it's just not enough.
Satisfied customers are looking for a memorable experience and dynamic service where it
counts. From receiving quick service to bending the standard practices -- such as extending a
guest check-out in a hotel or customizing a menu item in a restaurant -- customers want to feel as
if their business is appreciated. To be on the receiving end of customers' satisfactory ratings in
surveys and among their network, anticipate their needs and be able to have your staff deliver
accordingly.
Deliver On Promise
One key factor in keeping your guests engaged and coming back is to deliver as you promise.
From being consistent to making sure they get the same awesome service to doing what you say
38

you will do, don't drop the ball when it comes to what you say you'll offer. Customers are more
likely to get frustrated when you reel them in on a big promise such as special services or
premium products and it's not the case. Avoid saying that you are luxury if your services are
mediocre or in developing gimmicks that excite customers only to disappoint them throughout
the process of working with you.

Referrencing
according Reichheld and Markey

5.0

APPROPRIATE

RESEARCH

DESIGN

FOR

THE

STUDY..8

The major purpose of descriptive research is to describe characteristics of objects, people,

groups, organizations, or environments. In other words, descriptive research tries to paint a
picture of a given situation by addressing who, what, when, where, and how questions.
39

Descriptive research is aimed simply at describing phenomena and is not particularly concerned
with understanding why behavior is the way it is. This type of research is very useful for setting
out baselines or templates of how we think the world is. It is often the starting point of a
research project into phenomena (known as describe social systems and relationships between
events, providing background information as well as stimulating explanations).

6.0 SAMPLING METHOD (S) FOR THE STUDY; HOW AND WHY
STRATI SAMPLING
SAMPLE SIZE 120
SAMPLE UNITS

40

Professional men and women, Salareid workers , Business men and women ,Adolescent and
Housewives
RESEARCH DURATION
Thirty Days (30)

Convenience Sampling

Non-probability samples that are unrestricted are called convenience samples. They are the least
reliable design but, normally, the cheapest and easiest to conduct. Interviewers have the sole
freedom to choose whomever they find, thus the name convenience. Examples include the
opinion of people about public transportation systems; and customer satisfaction regarding goods
and services.

Method: Convenience sampling technique was used to collect quantitative data from customers
of Ume University, ICA and Forex to get their satisfaction levels and meaning of service quality
which were substituted in the SERVQUAL model. Chi- square test was used to test the
hypotheses separately and in a group.

41

42

a) Describe sampling method(s) that should be used for the study how and why

7.0 EXAMINE DATA COLLECTION METHOD (S) FOR THE STUDY ; HOW AND WHY

METHODS OF DATA COLLECTION

Focus Group

A focus group could be defined as a group of interacting individuals having some common
interest or characteristics, brought together by a moderator, who uses the group and its
interaction as a way to gain information about a specific or focused issue.

A focus group is a group interview of approximately six to twelve people who share similar
characteristics or common interests. A facilitator guides the group based on a predetermined set
of topics. The facilitator creates an environment that encourages participants to share their
perceptions and points of view. Focus groups are a qualitative
43

Once the research design (including the sampling plan) is formalized, then the process of
collecting informationsurveyfrom respondents may begin. In this section the term survey
is used to define any research method that seeks to gather information from a group of
respondents. For example, you may wish to conduct a survey using a questionnaire, focus
groups, interviews by telephone or in person, or any other suitable technique. Obviously, there
are many research techniques and there are many methods of data collection.

Often there are two phases to the process of collecting data: pre-testing and the main study. A
pre-testing phase, using a small sub-sample, may determine whether the data collection plan for
the main study is an appropriate procedure. Thus, a small-scale pre-test study provides an
advance opportunity for the investigator to check the data collection form to minimize errors due
to improper design elements, such as question-wording or sequence. Additional benefits include
discovery of confusing interviewing instructions, learning if the questionnaire is too long or too
short, and uncovering other such field errors. Tabulation of data from the pre-tests provides the
researcher with a format of the knowledge that may be gained from the actual study. If the
tabulation of the data and statistical tests do not answer the researchers questions, this may lead
the investigator to redesign the study. A detailed discussion of data analysis can be found in later
chapters.

Survey research is usually associated with deductive approach to research. It is a popular

research strategy that is most frequently used to answer who, what, where, how much
44

and how many questions. It therefore tends to be used for exploratory and descriptive research.
Surveys are popular as they allow the collection of a large amount of data from a sizeable
population in a highly economical way. Data is often obtained by using a questionnaire
administered to a sample, these data are standardised, allowing easy comparison. The survey
strategy is perceived as authoritative by people in general and is both comparatively easy to
explain and to understand. The survey strategy allows the researcher to collect quantitative data
which can be analysed quantitatively using descriptive and inferential statistics. In addition, the
data collected using a survey strategy can be used to suggest possible reasons for particular
relationships between variables and to produce models of these relationships. Using a survey
strategy gives the researcher more control over the research process and, when sampling is used,
it is possible to generate findings that are representative of the whole population at a lower cost
than collecting the data for the whole population.

45

8.0 APPROPRIATE DATA COLLECTION METHOD (S) FOR THE STUDY; HOW AND
WHY
3.8. Research Data, Data Capture Instrument, Collection Method
Data could either be primary or secondary. Primary data are new data collected specifically for
that purpose; while secondary data are data that have already been collected for some other
purpose (Saunders et al., 2009, p. 256). Data capture instrument is the item used to collect data
for a research project (Kent, 2007). This could be a questionnaire or a personal interview.
Source of data is where a researcher gets the data. Data were collected from primary sources. I
collected primary data from customers to be able to test those hypotheses developed. I used
survey links and hard-copy questionnaires to collect the primary data because I wanted to reach
most customers and quicker.
For this research, the data capture instrument used was a questionnaire as seen the sections
above. The reason for this choice of data capture instrument was because; based on my research
method which was quantitative method; questionnaire was the best way to collect quantitative
data. The questions were made under linker scale, nominal and ordinal scales also I used a
46

structured and a non-disguise questionnaire, where the respondents were limited with their
answers and I told the respondents about the purpose of the collection of data.
Before giving out the survey to customers, I conducted a pivot test of 25 surveys, testing to see
how it went and allowed it to run for two weeks. The reason for this was to see how easy it was
for the respondents to answer the questions in the survey. The results of this turned out to be that
most of the customers of Ume University could easily answer the survey but some of the ICA
and FOREX customers complained of language. Hence I translated the questionnaires to
Swedish.
The data collecting method varied within the three business sectors. With Ume University I was
also given the opportunity to send my survey link to international students. I used only the
survey link to reach the customer because it was the simplest means to collect data from them
through the international student department. I sent a survey link for customers to the
international office of Ume University and the link was sent to all the international students.
The survey ran for three months i.e. December to February 2010 and by then I had collected 107
filled questionnaires. With ICA, I collected emails from customers of ICA lidhem Centrum. I
went to ICA lidhem Centrum on three different days (a Sunday, Wednesday, and Friday talked
with
30
customers and collected their e-mail addresses then sent the customer survey links of both
Swedish and English versions. One of the reasons I went on different days was to avoid meeting
same sets of customers. When I collected 100 emails from the customers, I stopped visiting ICA.
After the end of the survey session that lasted three months December to February 2010, I had
47

collected 60 filled questionnaires. As for Forex I was allowed to keep questionnaires at Forex
bank for customers. I printed questionnaires of 100 English and 100 Swedish to avoid language
barrier and dropped at the customer desk which lasted for three months from December to
February 2010. By the end of the three months I had 60 filled questionnaires.
3.9 Data Cleaning
With the methods I used to collect the primary data, there was a risk of getting back

PRIMARY AND SECONDARY DATA

8.1 PRIMARY DATA
Through QUESTIONAIRES AND INTERVIEWS
QUESTIONNAIRES
Type of Questions; Research Instrument will be structured questionnaires circulated to the
respondents.
Questionnaires will be given to Staff and Customers of Busua Beach Resort
REASONS
Some of these respondents are very busy that they cannot be interviewed.
The nature of their work schedule demand questionnaires to be completed at their convenience.
Some respondents also provide accurate information on the questionnaire, than when they are
being interviewed.
48

INTERVIEWS
Interviews will be administered on Staff and Customers of Busua Beach Resort.
REASONS
Direct contact with respondent for emmediate feedback.
Most respondents provide accurate information when they are in conversation than when they
are asked to write.
You can ask more questions for clarrifications.
8.2 SECONDARY DATA
Research instruments
THROUGH JOURNALS, NEWSPAPERS, WEBSITES, INTERNET PRIOR TO THE STUDY
.
REASONS
Relevant information can be obtained from them

49

Referrencing
according Reichheld and Markey
Figure 2.1: Service classification continuum (Zeithaml et al., 2009)
2.2.0 Customer Satisfaction (CS)
Edwin N. Torres, Sheryl Kline, (2013) "From customer satisfaction to customer delight:
Creating a new standard of service for the hotel industry", International Journal of
Contemporary Hospitality Management, Vol. 25 Iss: 5, pp.642 659

50

Edwin N. Torres, Sheryl Kline, (2006) "From satisfaction to delight: a model for the hotel
industry",International Journal of Contemporary Hospitality Management, Vol. 18 Iss: 4,
pp.290 - 301
Miyoung Jeong Haemoon Oh

Corresponding author. Tel.: 001 814 234 9799; fax:

001 814 863 4257; e-mail: mxj116@psu.edu.

Copyright 1998 Elsevier Science Ltd. All rights reserved

51