scholarly journals Customer retention: A theoretical perspective of service failure and service recovery in the hotel industry

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
D. J. Petzer ◽  
T. F.J. Steyn
Keyword(s):  
Service Failure ◽  
Theoretical Perspective ◽  
Service Recovery ◽  
Hotel Industry ◽  
Customer Retention ◽  
Theoretical Background ◽  
Background Information ◽  
Secondary Sources ◽  
Day To Day Operations ◽  
Hotel Managers

Purpose: The purpose of this paper is to provide a theoretical perspective on customer retention activities associated with service failure management and service recovery as a means to retain customers in the hotel industry - and to improve the competitiveness of a hotel. The research is pursued with the following objectives in mind: To determine the customer retention activities involved in the service failure management needed by hotels to retain customers. To determine the customer retention activities associated with the service recovery that hotels might perform in order to retain customers. Design/methodology/approach: Secondary sources such as textbooks, scientific journals, and previous studies on the subject were used to obtain relevant background information. A literature search of secondary sources was conducted to elucidate questions and areas of enquiry that relate to the research. Findings: The theoretical perspectives on service failure management and service recovery provided in this paper suggest several customer retention activities that might be used by hotels in order to manage service failure and service recovery - and thus become more competitive. Implications: This paper suggests a number of approaches that hotel managers might take to improve service failure management and service recovery. Such activities could assist a hotel in determining where it is lacking and where to improve its performance in these areas. These activities could provide guidance to managers who are dealing with the day-to-day operations of a hotel. They might help to avoid service failures in the first place, and, secondly, to give ideas about service recovery if failures do occur. On a more strategic level, these activities could also assist managers to develop a general customer retention strategy that incorporates service failure management and service recovery. Originality/value: Service failure management and service recovery are viewed as ways to retain customers and to improve the competitiveness of hotels. Service failure and service recovery activities are proposed; these might form part of a framework for customer retention management for the hotel industry in Gauteng, South Africa. Such a framework has not been attempted before. The paper discusses the environment in which hotels find themselves, provides a theoretical background to service failure and service recovery, and suggests strategies that could be put in place by hotels in order to retain customers. Managers of private or owner-managed - or of group or branded hotels - could perform these activities and thus improve their effectiveness.

AN ASSESSMENT OF THE EVOLUTION OF HOUSING POLICY FRAMEWORK

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Clinton Aigbavboa
Keyword(s):  
Housing Policy ◽  
Low Income ◽  
Homo Sapiens ◽  
Theoretical Perspective ◽  
Theoretical Background ◽  
Policy Framework ◽  
Housing Policies ◽  
Secondary Sources ◽  
The Subject ◽  
Animal Skin

Globally, housing policies have been used as an attempt to try and address housing problems, particularly in respect to the low-income earners, with the view of helping them access better housing. The evolution of housing policy in developing countries has been studied and identified in different ways, however, this paper present a robust theoretical background of the developments in housing policy framework. The data used in this paper were derived from secondary sources only; through a detailed review of related literature on the subject to meet the research objectives. The study is an in-depth literature exploration of the theoretical perspective of the housing studies framework. The literature reviewed found that the theory of housing had its origin in the Paleolithic period when homo-sapiens began to use natural materials like stone, wood, leaves, animal skin and other similar items to create shelter from elements of weather. It was also found that there are various theoretical perspective frameworks that have been used in the study of housing, such as political, social, developmental, institutional, and radical perspectives amongst others. This study provides a robust theoretical framework used in housing study.

Hospitality-based service recovery, outcome favourability, satisfaction with service recovery and consequent customer loyalty: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ghazal Shams ◽  
Raouf Rather ◽  
Mohsin Abdur Rehman ◽  
Rab Nawaz Lodhi
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Service Failure ◽  
Service Recovery ◽  
Sampling Technique ◽  
Study Data ◽  
Behavioural Intention ◽  
Content Type ◽  
Hotel Managers ◽  
The Impact

Purpose In recent studies, tourism scholars focussed more on service failure and recovery. Thus satisfaction with service recovery (SSR) and outcome favourability in conjunction with service recovery (SR) and customers’ behavioural intention was given very little attention, while they are very attention-grabbing, particularly in marketing areas of hospitality and tourism studies. Using stealing thunder and co-creation-based strategies, this study aims to investigate the impact of SR on outcome favourability, and its association with SSR and customer loyalty. Design/methodology/approach To attain the objectives of the current study, data were collected through field survey by applying a random sampling technique from 346 regular customers four- and five-star hotels in the context of Iran. The structural equation modelling technique was applied for testing the measurement and relationship models of the study. Findings The findings of this research reveal a positive relationship between SR and outcome favourability. The findings also indicate that outcome favourability positively affects SSR and loyalty. Finally, SSR exerts a favourable and significant impact on customer loyalty. Research limitations/implications The study findings may have restricted applicability in different contexts other than four- and five-star hotels. Theoretically, the current research contributes insight into the dynamics of characterizing SR, outcome favourability, SSR and behavioural intention-based theoretical associations, as observed in the hospitality industry. Originality/value This study adopted an un-explored SR, outcome favourability and SSR theoretical perspectives to identify the strength and nature of relationships between them and discuss their important implications for academicians and hotel managers.

scholarly journals Do Relationship Marketing Constructs Enhance Consumer Retention? An Empirical Study Within the Hotel Industry

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110092
Author(s):  
Suha Fouad Salem
Keyword(s):  
Relationship Marketing ◽  
Hotel Industry ◽  
Customer Retention ◽  
Measurement Model ◽  
Tourism Industry ◽  
Customer Engagement ◽  
Customer Commitment ◽  
Conflict Handling ◽  
Hospitality And Tourism Industry ◽  
Hotel Managers

The increasing growth of new hotels in the Malaysian domestic market indicates that the hospitality and tourism industry is growing rapidly. As a result, there will be high competition as customers can easily switch from one hotel to the other. Therefore, to maintain competition in the market, it is crucial for hotels to recognize the importance of conflict handling, trust, and customer commitment in maintaining good relationships with their customers. Hence, the objective of this study is to study, relationship marketing constructs such as conflict handling, trust, and commitment are evaluated based on their direct and indirect relationships with customer retention. Overall, 188 questionnaires were collected from hotel guests in Malaysia to evaluate the structural relationships between these constructs and the performance of the measurement model using SmartPLS 3.2.3. Moreover, the importance-performance map analysis (IPMA) was used to identify measures that could be utilized to enhance management activities. The research outcomes of this study indicated that customer retention is directly influenced by conflict handling, whereas customer engagement is directly affected by trust, conflict handling, and commitment. However, conflict handling, commitment, and trust indirectly affected customer retention via customer engagement. The IPMA also revealed several aspects to help decision-makers and managers prioritize their actions efficiently. The results of this study revealed that customer engagement and conflict handling had the highest effect, whereas commitment and customer engagement had the highest performance on customer retention in the hotel industry. Therefore, to maintain customer loyalty, it is recommended that hotel managers prioritize their customers’ complaints and resolve them effectively.

scholarly journals Perception of hotel industry partner towards the vocational high school students’ internship performance

2021 ◽  
Vol 2 (1) ◽  
pp. 11
Author(s):  
Samsiwihati Samsiwihati ◽  
Bambang Nur Achsan ◽  
Budi Santoso
Keyword(s):  
High School Students ◽  
Hotel Industry ◽  
Sampling Technique ◽  
Data Sources ◽  
Primary Data ◽  
Research Subjects ◽  
School Students ◽  
Secondary Sources ◽  
Market Needs ◽  
Hotel Managers

This research is motivated by the fact that there are still many graduates of the hotel expertise vocational school who have not been employed in the hotel industry because the competencies possessed by the graduates are not in line with the market needs. This study aims to: (1) describe the students’ performance in the internship program of SMKN 1 Sewon; (2) analyze perceptions of the partner hotel industry on the internship performance of SMK 1 Sewon Bantul students. This research method used a qualitative descriptive approach. The research subjects consisted of seven hotel industries in Yogyakarta. The data sources used primary and secondary sources. Primary data sources were obtained from interviews. Secondary sources were obtained from literature, observation, and documentation. The sampling technique used purposive sampling. The data validity used triangulation, and the data analysis used a qualitative approach by Milles and Huberman. The results of the study concluded that: (1) the performance of internship in the hotel expertise program of SMKN 1 Sewon Bantul was in the excellent category; (2) The perception of the hotel industry partners on the internship performance of SMKN 1 Sewon Bantul students was very good. It was shown by the summary of the results obtained by the assessment in the category of very good with an average of 96.00%. It means that the hotel managers perceive the performance of intern students are categorized as very good and good starting from appearance, speech, mastery of competence, attendance, completing tasks, obeying an order, communication, using tools or facilities, and completing tasks according to procedures and on time.

Emotional antecedents and outcomes of service recovery

2014 ◽  
Vol 28 (3) ◽  
pp. 233-243 ◽  
Author(s):  
Kristen Riscinto Kozub ◽  
Martin Anthony O’Neill ◽  
Adrian A. Palmer
Keyword(s):  
Consumer Behaviour ◽  
Service Failure ◽  
Service Recovery ◽  
Hotel Industry ◽  
Recovery Process ◽  
Cognitive Measures ◽  
Content Type ◽  
Luxury Hotel ◽  
Emotional Antecedents ◽  
Practical Implications

Purpose – The purpose of this study was to investigate the service recovery experience in the luxury hotel industry by introducing emotions as a predictor of future behavioural intention and to compare traditional cognitive measures of satisfaction following a recovery process with measures based on affect. Design/methodology/approach – A mixed-methods approach was adopted comprising a main quantitative study, preceded by an exploratory qualitative study. Findings – The study provides further support for the use of emotions in understanding consumer behaviour following a service failure. Research limitations/implications – As an abstract concept, we have only limited physical, measurable manifestation of emotions, and the construct is difficult to operationalise in social sciences research. Furthermore, this research has required retrospective self-reporting of emotions. Practical implications – The use of emotions can provide a better diagnostic tool for understanding attitudes that customers go away with following a service failure, rather than concentrating on cognitive measures of performance. Originality/value – The study has provided further support for the use of emotions in understanding consumer behaviour following a service failure.

Sustainability Practices in Hotel Industry: A Study on Guest Awareness and Satisfaction

GIS Business ◽  
2006 ◽  
Vol 1 (6) ◽  
pp. 9-10
Author(s):  
Shweta Mathur ◽  
Kavita Khanna ◽  
Sanjeev Kumar Saxena
Keyword(s):  
Hotel Industry ◽  
Empirical Work ◽  
Management Policy ◽  
Survey Method ◽  
Customer Preferences ◽  
Sustainability Strategy ◽  
Sustainability Practices ◽  
Sustainability Initiatives ◽  
Hotel Managers ◽  
Relationship Of

The research paper is an empirical work to ascertain the awareness and satisfaction levels of the hotel guests on the sustainability practices in Five Star hotels in Delhi. This paper also aims to determine the extent to which certain sustainability practices influence customer preferences and requirements. The methodology used in this research included a survey method, combined with an extensive secondary research and descriptive methods. The survey was conducted in selected Five star and Five-star deluxe hotels in Delhi from June 2016 until September 2016. The results of the study establish a direct relationship of sustainability practices with customers satisfaction in Five Star Hotels in Delhi, however, it reveals that the prevailing sustainability practices do not satisfy the guests to a considerable extent. The research results can be used by hotel managers in order to improve and adopt sustainability strategy in their management policy in order to raise the level of awareness towards the hotels sustainability initiatives undertaken and then to meet the demands of cognizant guests and for the sake of its own business survival.

Explanation information and source in service recovery initiatives

2014 ◽  
Vol 28 (4) ◽  
pp. 311-318 ◽  
Author(s):  
Thomas Baker ◽  
Tracy Meyer
Keyword(s):  
Source Credibility ◽  
Positive Impact ◽  
Service Failure ◽  
Empirical Studies ◽  
Service Recovery ◽  
Positive Outcome ◽  
Frontline Employees ◽  
Full Account ◽  
Content Type ◽  
Service Failure And Recovery

Purpose – The purpose of this paper is to specifically consider two interactional aspects that are likely to contribute to the success of an explanation of why a service failed: the adequacy of information provided and role of the person providing the information. Design/methodology/approach – Two empirical studies were conducted using a between-subjects 2 (information: low vs high) × 2 (employee: frontline vs manager) experimental design. The first study was designed to better understand when the information provided might have a more positive impact on the customer. The second study was conducted to understand why the effects exist. Findings – In Study 1, an interaction effect was seen that suggests that the most positive outcome is when the manager (vs the frontline employee) provides a full explanation (vs limited explanation) of the mishap. Results from Study 2 indicate that source credibility is in play. Research limitations/implications – Participants were asked to respond to service failure and recovery scenarios using the same service context. The means of the outcome variables suggest that the recovery effort could be improved upon with other methods. Practical implications – Contrary to suggestions that frontline employees be responsible to resolve service failures, our studies reveal that service recovery initiatives involving an explanation only are best received when the manager provides the customer a full account of what went wrong. Originality/value – This research provides empirical evidence of when and why more information regarding the cause of a service failure is most positively received by the customer.

Service recovery for moderate and high involvement services

2015 ◽  
Vol 29 (5) ◽  
pp. 331-343 ◽  
Author(s):  
Silke Bambauer-Sachse ◽  
Landisoa Eunorphie Rabeson
Keyword(s):  
Customer Satisfaction ◽  
Design Methodology ◽  
Service Failure ◽  
Service Recovery ◽  
Level Of Service ◽  
High Involvement ◽  
Content Type ◽  
Failure Severity ◽  
Future Consumption ◽  
Practical Implications

Purpose – The purpose of this study is to determine which level of tangible compensation for a service failure leads to high levels of customer satisfaction for moderate- versus high-involvement services as well as for different conditions of responsibility for the failure and failure severity. Design/methodology/approach – The study is based on a 4 (tangible compensation: gift, discount, credit for future consumption, refund) × 2 (responsibility for the failure: restaurant vs customer) × 2 (failure severity: low vs high) × 2 (involvement: moderate vs high) design using scenarios in a restaurant context. Findings – The results reveal that, for moderate-involvement services, all types of compensation are equally appropriate, except for when customers are responsible for a severe failure. In this condition, they expect tangible compensation of higher benefit. For high-involvement services, the more severe the failure, the higher the benefit of tangible compensation should be, independent of responsibility. Practical implications – The findings suggest that managers should consider the level of service involvement as well as responsibility for and severity of the failure when choosing the level of tangible compensation. Originality/value – The results of this study provide new insights into how to choose appropriate and efficient service recovery measures.

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