Customer satisfaction with reference to individual spending pattern on hotel industry: a case study for hotel silver palace

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This paper gives an idea about analysis of importance of customer satisfaction. The study was carried out with the help of quantitative research by using questionnaire & it was designed on keeping in mind the basic of customer satisfaction.

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International Journal of Management (IJM) Volume 7, Issue 7, November–December 2016, pp.336–343, Article ID: IJM_07_07_037 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=7&IType=7 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication CUSTOMER SATISFACTION WITH REFERENCE TO INDIVIDUAL SPENDING PATTERN ON HOTEL INDUSTRY: A CASE STUDY FOR HOTEL SILVER PALACE P.A Anawade Research Scholar North Maharashtra University, Jalgaon, & Assistant Professor, Department of Business Administration, College of Engineering & Technology, Bambhori, Jalgaon-425001, Maharashtra. Prof. Dr. Shilpa k. Bendale Professor & Head, Department of Management, KCE’s College of Engineering & Technology, Jalgaon-425001, Maharashtra. ABSTRACT Hotels and tourism industry are the biggest earners of the foreign exchange in India. Hotel and tourism Industry is the strong base to increase the GDP of Indian economy. The idea behind this study was to measure the level of customer satisfaction with respect to the hotel industry. Hence researcher has taken a case study of silver Palace of Jalgaon city in Maharashtra. This paper gives an idea about analysis of importance of customer satisfaction. The study was carried out with the help of quantitative research by using questionnaire & it was designed on keeping in mind the basic of customer satisfaction. Based on the research results it is concluded that, the level of customer satisfaction for silver Palace would be judged above average which is quite good. Although the majority of customers were satisfied with the overall service quality of the hotel, some areas for improvement were found. It is recommended that silver Palace should improve on variety of menu, space for parking, vehicle facility for the tourists etc. Key words: Customer Satisfaction, Hotel Industry, Service Quality & Potential Customers Cite this Article: P.A Anawade and Prof. Dr. Shilpa k. Bendale, Customer Satisfaction with Reference To Individual Spending Pattern On Hotel Industry: A Case Study For Hotel Silver Palace. International Journal of Management, 7(7), 2016, pp. 336–343. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=7&IType=7 http://www.iaeme.com/IJM/index.asp 336 editor@iaeme.com
Customer Satisfaction with Reference To Individual Spending Pattern On Hotel Industry: A Case Study For Hotel Silver Palace 1. INTRODUCTION A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so. – Mahatma Gandhi Customer is the most important factor of every service industry. If the customer is satisfied with the service you provide to THEM, then definitely they will not only retain but also they will help you to increase your business by word of mouth publicity. Hence customer satisfaction is now a day’s become more important. 1.1. Customer Satisfaction is nothing but the outcome of a cognitive and effective evaluation, where some standard expectation is compared to the actually perceived performance. If the perceived performance is less than expected, customers will be dissatisfied. On the other hand, if the perceived performance exceeds expectations, customers will be satisfied. 1.2. Concept of hotels Service sector has increasingly been considered as an important sector, making up the majority of the economies, in particular those of advanced nations. Providing quality service improves satisfaction of customers and this is believed to lead to the increased customer loyalty to the firm, repeat purchases of the same products, and long-term relationship commitment. Service quality has become an important aspect now a days in hotel industry. It is obvious that, customers who are satisfied help to spread the positive word-of- mouth publicity to recommend the hotel to their friends, colleagues and relatives. Thus it becomes walking, talking advertisements for hotel owners and service providers. thus it indirectly helps to lower the cost of attracting new customers. Satisfied customers tend to buy more, to be less price conscious, and to generate the positive word-of-mouth recommendations 1.3. About Hotel Silver Palace Hotel Silver Palace is the fastest growing Hotel Group in area of Khandesh. The group was introduced in the year 1981 in Jalgaon, Maharashtra. Hotel Silver Palace is known as the place with a splendid decor discernible fresh new looks of grandeur. To serve delectable delicious and to offer immaculate hospitality in those who prefers to luxuriate a midst fabulous ambiance. The Head of the Hotel Silver Palace Mr.Bhagvat Bhangale has a strong experience of hotel industry. He has established many hotel brands in the area of khandesh. Now the young generation of the group has come ahead to take responsibilities to make the hotel business much strong and expand it to many destinations. The group is expecting an extraordinary change for better customer oriented services and facilities in the regards. 1.4. Facilities Provided In Silver Palace Stylized Interiors with World-Class Posturepedic king size beds Furniture In-Room safety locker Bottled Water Light Finished decor for Personalized 32" LCD TV with USB port Touch High Speed Broadband Connectivity Round the Clock in-room-dining service Air Conditioning Custom Duvets Laundry, Dry Cleaning & Ironing services Cotton rich Linens Complimentary in-Coffee house breakfast Mini Fridge Hair Dryer Pillows : Down/ Feather http://www.iaeme.com/IJM/index.asp 337 editor@iaeme.com
P.A Anawade and Prof. Dr. Shilpa k. Bendale 2. CURRENT SCENARIO OF HOTEL BUSINESS Now days it is observed that, successful hotel management is experiencing the increased competitive pressures as a consequence of the combined effect of the globalization, economic political integration tendencies, consolidation, and growing supply in emerging and mature tourist destinations, and actually local small and medium-size enterprise cannot escape from facing this competitive pressure. Therefore, hotels have to strive to deliver to their guests with quality products and services. Hotels that provide superior service quality are likely to be successful in enhancing guest satisfaction and loyalty. So quality and customer satisfaction are the cornerstone for success in any business, and are perceived as key factors in acquiring and sustaining competitive advantage, retaining the existing customers and attracting the new ones, creating long term profitability as well as improving living standard of employees in organizations. One of the biggest contemporary challenges of management in service industries is providing and maintaining customer satisfaction. Service quality and customer satisfaction have increasingly been identified as key factors in the battle for competitive differentiation and customer retention. (Lam, 1999) claim that overwhelming customer demand for quality products and service has in recent years become increasingly evident to professionals in the tourism and hotel industry. Among all customer demands, service quality has been increasingly recognized as a critical factor in the success of any business (Gronoos, 1990). During the past few decades, customer satisfaction and service quality have become a major area of attention to practitioners and academic researchers. Both concepts have strong impact on business performance and customer behavior. Service quality leads to higher profitability. Following are the factors of customer’s satisfaction. 3. LITERATURE REVIEW Attracting new customers alone is insufficient, as the management must concentrate on preventing "customers-exit" since the cost of attracting new customers is higher than the cost of retaining existing customers. The key to customer’s retention is customer satisfaction and loyalty which is largely dependent upon the service quality offered by the hotels. Guests' perceptions are moderate in service delivery and tangibles in hotel industry whereas it is very poor on empathy and responsiveness factors (Vijayadurajrai, 2008). Customer satisfaction is a business philosophy which tends to the creation of value for customers, anticipating and managing their expectations, and demonstrating ability and responsibility to satisfy their needs. Qualities of service and customer satisfaction are critical factors for success of any business (Gronoos, 1990). Customer expectation is the difference between the expectations of the customers before receiving the services and perceptions of the customers after receiving the services. Customer satisfaction mainly depends on the build-up of the perceived value to which the customers have concerning a product or service (Kotler and Armstrong, 2004; 2009) Hotels are increasing their investments to improve service quality and the perceived value for guests so as to achieve better customer satisfaction and loyalty, thus resulting in better relationships with each customer (Jones D.L, 2007) Customer satisfaction plays the most important role in total quality management. In comparison with other traditional performance measures, customer satisfaction is probably less sensitive to seasonal fluctuations, changes in costs, or changes in accounting practices (Kotler, 2006). The service providers thus need to augment their services in such a way that they meet the expectations of the customers at desired levels. The service providers need to enhance their services from time to time to meet the changing global scenario (Dr. DilPazir & InshaAmin, 2015). Customer satisfaction is typically defined as a post consumption evaluative judgement concerning a specific product or service (Gunderson M.G, 1996). It is the result of an evaluative process that contrasts http://www.iaeme.com/IJM/index.asp 338 editor@iaeme.com
Customer Satisfaction with Reference To Individual Spending Pattern On Hotel Industry: A Case Study For Hotel Silver Palace repurchase expectations with perceptions of performance during and after the consumption experience (Oliver R.L, 1980). The most widely accepted conceptualization of the customer satisfaction concept is the expectancy disconfirmation theory (J.D.Barsky, 1992). The theory was developed by (Oliver R.L, 1980), who proposed that satisfaction level is a result of the difference between expected and perceived performance. Satisfaction (positive disconfirmation) occures when product or service is better than expected. (Homburg, 2007) concluded that customer satisfaction positively affects business profitability. The majority of studies have investigated the relationship with customer behaviour patterns increases customer loyalty; influences repurchase intentions and leads to positive word-of-mouth. 4. RESEARCH METHODOLOGY On the basis of non probability sampling a sample of respondents has been generated followed by the convenience sampling technique. Questionnaire was distributed to hotel visitors at the end of their stay and hoteling. As such, the customers were able to evaluate their level of satisfaction. The questionnaire was focused on the concepts like: overall customer satisfaction, customer loyalty, service quality. Service quality is measured along five dimensions: physical quality, food quality, staff behaviour, responsiveness and overall service quality. Also, personal information from the respondents is gathered at the beginning of the questionnaire. As already mentioned above, the main purpose of this study is to investigate the level of service quality, customer satisfaction and customer loyalty in hotel Silver Palace The purpose of this study is to examine the satisfaction level of customers of hotel silver palace. In order to study this, the information was collected and analyzed. The customer survey was made November 2016. This study majorly focuses on the service provided by the Silver palace and the amount of satisfaction of the customers as well as their perceived demand to be fulfilled by the hotel. 5. OBJECTIVES 1. To study the customer satisfaction towards hoteling in Hotel Silver Palace of Jalgaon. 2. To identify the service lapses and suggests various strategies to improve the service quality so as to increase the retention of the customers. 6. DATA COLLECTION In this study the researcher has collected both, the primary and secondary data. The primary data are collected in a from of questionnaire. A Likert scale was adopted with options from strongly agree to strongly disagree, whereas 1 refers to highly dissatisfied, 2 for satisfied, 3 for neither satisfied nor dissatisfied, 4 for satisfied and 5 for highly satisfied. The questionnaires were distributed among customers. It took too much time because some customers did not want to fill up the questionnaire and some customers were busy in their Schedule. However, with the co operation of the manager of the hotel the data was collected. 6.1. Sample Size In order to collect the information from the customers of the silver palace, author has personally distributed the 130 structured questionnaires. Out of it 118 questionnaire were filled correctly and 100 questionnaire were taken as a sample which is of 84.75%. Authors have followed a convenient sampling method to collect this information Out of the 100 respondents 70 were males and 30 were females. Researcher has framed a questionnaire contains around 20 questions. Questionnaire has divided into the two sections. Section-I is including with Personal information of the consumer and Section-II is about the customer satisfaction indicators http://www.iaeme.com/IJM/index.asp 339 editor@iaeme.com
P.A Anawade and Prof. Dr. Shilpa k. Bendale 7. DATA ANALYSIS AND FINDINGS After the survey, the researcher has conducted the analysis and revealed the information about the satisfaction level of the customers with respect to following factors; • No of visits customers have made during the past one year • Quality of service and food at the hotel. • Opinion about the cleanliness & overall maintenance at the hotel. • Behavior of the staff. The details of variables are categorized as Demographic variables, Food and Services provided and rates/tariffs of the dishes and rooms respectively. They are summarized as follows Table 1 Demographic variables and No. of Respondents Sr. No. Variables Category % Respondents Male 70 1 Gender Female 30 Below 20 15 20 - 30 20 2 Age 30-40 15 40 & Above 50 Married 70 3 Marital status Unmarried 30 5000-20000 10 20000-40000 25 4 Overall Income 40000-60000 30 60000 & Above 35 1 65 5 Avg. No. of times of Hoteling in a Month 2 25 3 5 More than 3 5 Up to Rs. 2000 72 Rs. 2000-4000 20 6 Avg. Spending on Hoteling in a Month Rs. 4000-6000 6 Above Rs. 6000 2 Interpretation From the above table no 1 of variables it is observed that, 70 % of the respondents are males and 30% are females. 15% of the respondents are belongs to the age group of below 20, 20% respondents from age group of 20 to 30. 15% respondents from the age group of 30 to 40 and 50% of the respondents are from the age group of 40 and above. 70% of the respondents are married while as 30 % are unmarried. 10 % of the respondents fall in the income group of 5000 to 20000, 25% fall in 20000 40000, 30% respondents are from income group of 40000 to 60000, and 35 % of the respondents fall in the income group of above 60000. 65% of the respondents visits the hotel once in a month, 25% respondents visits min twice in a month, 5% respondents visits around 3 times to hotel silver palace and 5% of the respondents visit for more than 3 times in a month. As far as avg. spending on hoteling is concern, 72% of the respondents are having spending around Rs. 2000, 20% of the respondents spending is Rs. 2000 to 4000, 6% respondents spends around Rs. 4000 to 6000. Only 2% of the respondents spends above Rs 6000 on hoteling. http://www.iaeme.com/IJM/index.asp 340 editor@iaeme.com
Customer Satisfaction with Reference To Individual Spending Pattern On Hotel Industry: A Case Study For Hotel Silver Palace Table 2 Response about Food and Services Provided Response in % Description Neither Highly Highly Dissatisfied Satisfied Nor Satisfied Dissatisfied Satisfied Dissatisfied Variety of Dishes 0 0 15 65 20 Quality of Food 0 0 10 35 55 Ambience and Interior 0 0 5 45 50 Cleanliness 0 20 60 20 Behavior of Staff 0 0 59 18 Timely Service by Staff 0 0 0 30 60 Parking area of the hotel 9 58 10 18 5 Overall Rating to Hotel 0 0 0 57 43 Interpretation From the data analysis, the opinion of the respondents regarding the food and service quality, framed in table no 2 reveals the following results and discussion. 65% of the respondents are satisfied with the variety of the dishes available and 20% respondents are highly satisfied. 35% of the respondents are satisfied with the quality of the food and 55% are highly satisfied. 45% of the respondents are satisfied with the ambience and interior decoration of the hotels and 50 % of the respondents are highly satisfied. 60% of the respondents are satisfied and 20% are highly satisfied with the cleanliness maintained by the hotel. 59 % of the respondents are satisfied and 18% are highly satisfied with the behavior of the staff. 60% of the respondents are highly satisfied with the timely service provided by the staff. 58% of the respondents are dissatisfied with the parking facility provided by the hotel. 9% of the respondents are highly dissatisfied. Around 57% respondents are satisfied and 43% are highly satisfied about the hotel silver palace. Table 3 Response about rates & tariffs Response in % Description Low Fair Competitive Expensive/Costly Room Tariff 10 25 60 5 Dishes Rate 5 45 45 5 As far as Room tariff and Rates of dishes are concern, 60% and 45% of respondents says that room tariffs and dishes rates respectively are comparably ok with the market. 8. FINDINGS The findings are as follows: Most of the customers visited more than once, so repetition is there. Some customers have visited more than 3 times during a month. So customer retention rate is good. There is a good no. of loyal customers; there is a considerable no. of new comers also. So there is always scope for making them loyal customers. This trend has to follow in near future to overcome the competition. Many of customers come to the hotel through advertisements/ hoardings & auto drivers i.e. 70% so there should be consistent efforts for the promotion of the hotel through hoarding at railway & bus stations & auto drivers. Rest of the customers comes to the hotel because of power of mouth publicity. Quality of food, services, cleanliness & overall maintenance at the hotel is very good but management should make efforts to get excellent rating for all these services. Services provided by the hotel are sufficient for the customer’s management should try to add more value added services to their lists. Most of the customers are satisfied with the behaviors of the staff. Customers are satisfied with the overall operation of the hotel. http://www.iaeme.com/IJM/index.asp 341 editor@iaeme.com
P.A Anawade and Prof. Dr. Shilpa k. Bendale 9. SUGGESTION In order to prove Hotel Silver Palace as a pioneer organization in jalgaon city, they have to set up the excellent standards for hotel industry. Because of entrance of some new hotels, there will be tough competition for the hotel silver palace in future. Hence they have to cope up with the change of customer perception and demand. As far as popularity is concern, it has been proved that Hotel Silver Palace is in the list of top most best hotels in the city. In near future it has to retain & find new customers also. For any service it is necessary to measure the satisfaction level of customer. To analysis satisfaction of the customer, a research has to be conducted. Which was undertaken through this project? This report provided the information about the customer preferences for future over the hotel. This gave a basis for the questionnaire as to the quality that the customer was expecting was given to them or not. 10. CONCLUSION The result through the analysis showed that the It is observed through the analysis that the customers are very much sensitive to the offering by the hotel providers. Hence in order to meet the customers’ expectations, managers must focus on their services so that customers will be satisfied at extreme end. Also the service providers need to improve their services time to time to meet the customers’ expectations. The mangers should make a provision for customized services which should be customer centric and should focus on complaint handling and addressing grievances of the customers. REFERENCES [1] B Palanivelrajan, A. C. (2015). Service Quality and Behavioural Intention in Hotel Industry: A Path Model Analysis. international Conference on Inter Disciplinary Research in Engineering and Technology, (pp. 150-157) [2] Dominici, R. G. (2010). Customer Satisfaction in the Hotel Industry: A Case Study from Sicily. International Journal of Marketing Studies , 2 (2) [3] Dr. DilPazir & InshaAmin. (2015). A Study of Customer Satisfaction Towards Hotel Industry in Kashmir Valley. International Journal of Management Research & Reviwe , 5 (12) [4] Gronoos, C. (1990). Srvice Management and Marketing: Managing the Moments of truth in service competition. USA: Lexington Books [5] Gunderson M.G, H. M. (1996, 2). Hotel Guest Satisfaction among Business Travellers: what are the important factors? The Cornell Hotel & Restaurant Administration Quarterly, pp. 72–81 [6] Homburg, X. L. (2007). Neglected outcomes of Customer Satisfaction. Journal of Marketing , 133–149 [7] J.M. Carman. (1990). Consumer Perception of Service Quality: An Assessment of the SERQUAL dimentions. Journal of Retailing , 33-55 [8] Jones D.L, e. a. (2007). A New Look at the Antecedents and Concequences of Relationship Quality in the Hotel Service Environment. Service Marketing Quarterly , 15–31 [9] Jones U, N. S. (1997). Hospitality & catering: A Closer Look. London: Cussel Welington House [10] Kotler, P. (2006). Marketing Management. NY: Prentice Hall [11] Lam, T. a. (1999). Service quality of travel agents: the case of travel agents in Hong Kong. Tourism Management , 341–349 http://www.iaeme.com/IJM/index.asp 342 editor@iaeme.com
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