Customer Satisfaction in the Singapore Hotel Industry

Customer Satisfaction in the Singapore Hotel IndustryIntroductionHotel is one of the about authoritative organizations in the field of touristry industriousness in providing service. Therefore, they play a full role in improving and expanding the tourism manufacturing and also in improving and developing economic circumstance.Today, customer propitiation is a specific requirement for the improvement of service organizations such as hotels, and ontogenesis profitability. Thereby maintaining the arranging of measurement and evaluation of customer satisfaction is one of the most important aspects of improving the smell, exactly the basic needs of the recent organization.On the other hand, by expanding the borders of the global village, the need for only standard regulations to assess the quality of certain products and work, is to measure the situation of the organizations in the international market competition, may be felt more than everStudy backgroundCustomer satisfactio n is a job philosophy, is a measure of how products and function offered by a company join forces or exceed customer expectations. It is considered an important indicator of performance in business and is part of four of the Balanced Scorecard. Customer satisfaction with a companys products or service is often seen as the key to a companys success and long term competitiveness (Klee, 1998).Identify and forecast customer demands and to be able to sustain them is important to master customer satisfaction. Due to the costs of attracting new customers costs more than retaining brisk customers, to be successful managers must(prenominal) focus on retaining existing customers, effective implementation of policies Customer satisfaction and loyalty. This is especially true in the hotel industry.Today, managers in the hotel industry is facing one of the most important challenge is to reserve and maintain customer satisfaction. Consequently, quality of service has become a factor impor tant in the overall tourism experience, and one which ultimately dictates the success of the tourism business (Kandampully, 2000). According to Lewis and Booms (1982), service quality is measure of how well the service delivered matches customer expectations.Positive births can make higher commitment of customers and increase their footstep of return. Long-term human relationships amid customers and hotel is becoming more important as the positive correlation between overall satisfaction levels of visitors and their ability to return to the same hotel. Hotels atomic number 18 increasing their investments to improve service quality and perceived value for customers to achieve customer satisfaction and loyalty better of them, thus achieving a better relationship with customers.Competition is increasing dramatically as variety of hotel industry hence, the hotel management has always tried hard to fork over the top hat service quality and the best satisfaction for customers in th e hotel industry including hotels in Singapore.Study areaThis report covers of the main belles-lettres on customer satisfaction and retention in the hotel industry in Singapore. The hypothesis of the report will research based on the issues of the customer satisfaction and how a hotel management exercising effective policies to providing services and goods with a high quality to satisfy the customers and go through a lot of effort in maintaining their customer satisfaction, develop and make profits in their business focusing on Singapore area. explore structureThe report focus mainly on Customer satisfaction emphasize on the area of hotel industry in Singapore. First chapter introduces background of the Customer satisfaction and briefly summarized importance of relevant issues.Second chapter identifies customer satisfaction in the hotel industry, purpose applying the best strategies to provide quality services to customer, reasons why need to maintain old customers and attract new customers. How to build customer loyalty, hotel attributes what services to customers and the legal regulations, strategic considerations will be explained.And fourth chapter concludes the best methods to proposing improvements in customer satisfaction management in the hotel industry.Research objectivesThe aims and objectives of this research areWhat is customer satisfaction and how to achieve it?Hotels need to learn effective strategies and create product attributes to customers to satisfy them.How the service quality related to customer satisfaction?Provide good service quality will accomplish customer satisfaction.Definition of customer loyalty and how to remain customer loyalty?To gain customer loyalty, hotel needs to have a good relationship with customers.What services quality is hotel need to provide to customer in order to get customer satisfaction, loyalty and repeat patronage?Cleanliness, location, security, room rates, service quality and account or chain of hotels.CH APTER 2 / LITERATURE REVIEW2.0 Introduction of main issuesIn todays competitive market, the company provides services throughout the world effort to achieve a better position than its competitors through the only advantage to cheer their customers satisfaction and therefore retain their loyalty.On the other hand, customers are always sounding for suppliers of goods and services of better quality and meet their expectations. But most vendors are now providing quality products with relatively equal, so customers always have multiple choicesTherefore, in the hotel industry, considering the quality of service and customer satisfaction is very important, so it is necessary to adopt appropriate measures and procedures for recognition and improvement many services as realizable to meet the hotel knobs and customers.Analyze Customer satisfaction in hotel industryCustomer satisfaction is an important topic for both researchers and managers, because of high levels of customer satisfaction leads to an increase in repeat patronage among current customers and aids customer recruitment by enhancing an organizations marker reputation. Being able to successfully judge customer satisfaction levels and to apply that knowledge are critical starting ranks to establishing and maintaining long term customer retention and long term competitiveness (Yuksel and Yuksel, 2002). Customer satisfaction brings many benefits, the satisfaction increases of customers retentions and customers retentions is dependent on the nature of the relationship between the parties which are also affected by the service delivered.Satisfaction is an overall customer spot towards a service provider, or an emotional reaction to the difference between what customers anticipate and what they receive (Zineldin, 2000), regarding the fulfilment of some need, goal or desire. For most products, services and aspects of performance can be made to reflect objectively measured. Some customers may be taken to a hous e fit their criteria, but not suitable to the taste of individual customers to assess customer service as uncomfortable as they do not see a list of their choice.Kano, Bentler and Li-tze (1984) real a model to categorize the attributes of a product or service based on how well they are able to satisfy customer needs. rumination of the Kano model, we can see how it might not be enough to just satisfy customers by meeting their needs and performance basis only. In a highly competitive marketplace, organizations need to adopt strategies and to create product attributes targeted specifically at exciting customers and over satisfying them (Tan Pawitra, 2001).In the real estate to please and satisfy customers, agents will need to have a comprehensive knowledge and extensive list of all the local area. In essence, it is the experience and attitudes of individuals closest pinch with customers that are likely to affect whether customers are satisfied and ready to go back to the company. It is also the people in direct contact with customers who mildew who the retain and satisfied customers are, and their experience determines how they treat the customers (Hansemark Albinsson, 2004) thus impacting on the service quality deliveredAdvantages of providing good Service quality to customersThe concept of service quality as a whole building is large and diverse. The theory has been elaborated on by many researchers. Berry, Parasuraman and Zeithaml (1985) write service quality as perceived by consumers stems from a comparison of what they feel service firms should offer with their perception of the performance of the firm providing the services. . Quality of service received is considered as the degree and direction of the difference between the perceptions of consumers. For example in real estate, this is what customers expect from the agent compare to which is actually distributed by that agent.In real estate, that interaction occurs from the moment the node and age nt plow either verbally or electronically. It is evident that research on goods quality is inadequate in the service field, which has three inherent characteristics intangibility, heterogeneity and inseparability between output and consumption (Berry, Parasuraman and Zeithmal, 1985).In this scenario, providing high quality services and improving customer satisfaction are widely recognized as fundamental factors boosting the performances of companies in the hotel and tourism industry (Barsky Labagh, 1992 Le Blanc, 1992, Le Blanc et al., 1996 Stevens et al., 1995, Opermann, 1998). Hotels with good service quality will ultimately improve their profitability (Oh Parks, 1997). In a competitive hospitality industry which offers homogeneous services, individual hoteliers must be able to satisfy costumers better than their counterparts (Choi Chou, 2001).Strategies to maintain customer LoyaltyThere are three ways to determine customer loyalty that are Behavioural measurements, attitudin al measurement, and Composite measurementsThe measurements considered appropriate behaviour buying behaviour is repeated as an indicator of loyalty. One problem with the procession to repeat leveraging behaviour is not always the result of a psychological commitment to the brand. For example, a traveller can stay at the hotel because it is most convenient place. When a new hotel opens on the street, they switch because the new hotel offers better value. Therefore, repeat purchase does not always mean that commitment.Attitude measurement use attitudinal data to reflect the attitudes and psychological feelings associated inherent in loyalty. The attitudinal measurements are concerned with the sense of participation, loyalty and faithfulness. There are instances when a customer holding a favourable attitude for a hotel, but he or she does not stay at the hotel. One can appreciate a hotel, recommend the hotel to others, but feel the hotel for him too expensive to use on a regular basi s. The above approaches measure loyalty uni dimensionally.Composite measurements of loyalty combine the first both dimensions and measure loyalty by customers product preferences, propensity of brand switching, frequency of purchase, regency of purchase and total amount of purchase.The use of both attitude and behaviour in a loyalty definition substantially increases the predictive power of loyalty (Pritchard and Howard, 1997). Two-dimensional composite method has been applied and supported as a expensive tool for understanding customer loyalty in many fields, such as retail, entertainment, luxury hotels and airlines.For this study, customer loyalty is customer attitude favourable to the company, pull to purchase products or services, and introduce products to them.According to a survey carried out by Barsky Nash in 2006, regarding the main hotel chains worldwide, between 2002 and 2005, the importance of loyalty programs for guests purpose on where to stay increased from 32% t o 34%.Although the search for new locations is certainly the most important factor for many tourists, several studies highlighted that there is a good portion of customers that chose to repeat their holidays destination, showing a certain degree of loyalty (Oppermann, 1998 Fyall et al., 2003).According to the study of loyalty found that, there are five major factors affecting the repetition of trip to the same tourist place. They do not involve to make wrong choice when choosing the other tourist destinations. They want to meet those familiar. The emotional affection to a specific place. The possibility to explore the place better, and want to recommend the place to others.Customer satisfaction is the starting point to build customer loyalty, so a long term relationship. This creates a loyaltys stock in enterprises to improve corporate image. Strengthening relationships with customers leads to repeat patronage. On the other hand, an unsatisfied customer may represent a danger to t he enterprise. A research, conducted by Cherubini (1997), shows that only 4% of unsatisfied customers complains to the business explaining the reason of their unsatisfaction, and each client who doesnt officially complain generates a negative WOM which can involve also 1000 people.Important role of Hotel attributesResearch into hotel selection criteria has focused on the relationship between customer satisfaction and service quality of services and facilities. Because of the intangibility, inseparability, variability, and perishables of service, consumers perception of satisfaction criteria may include contextual cues that they use to evaluate the service quality and to make decisions about future patronage, whether or not they experienced the hotels products and services before (Bitner, 1990 Parasuraman et al., 1985). Alpert (1971 and Kivela (1996) viewed consumer product and services as a bundle of attributes, or features, and benefits, and stated that those attributes that direc tly influence consumer choice are termed determinant attributes. These attributes, which may be different from competitors services, may be important factors in determinant consumers intention to purchase in the future.Wuest et al. (1996) defined perceptions of hotel attributes as the degree to which travellers find various services and facilities important in promoting their satisfaction with hotel stays.To get loyalty and value than other competitors, suppliers must be able to achieve a high level of customer satisfaction for services provided. There have been many studies on the needs and characteristics of tourists. Reviews of literature that most travellers would consider following hotel attributes when giving the hotel choice decision cleanliness, location, security, room rates, service quality and reputation or chain of hotels. Atkinson (1988_ found that cleanliness of accommodation, followed by precaution and security, accommodation value for money, and courtesy and helpful ness of staff were the top attributes for travellers in hotel choice selection.Hoteliers need to fully acknowledge which service attributes are most likely to influence customers choice intentions (Richard Sundaram, 1993). Customer satisfaction practices can help them to identify the crucial favorable word of mouth (WOM) publicity (Berkman Gilson, 1986 Choi Chu, 2001 Fornell, 1992 Halstead Page, 1992 Knutson, 1988 Pizam, 1994). A satisfied guest promotes positive WOM at no cost for the enterprise and with effect and credibility that are superior to those of conventional advertising (Lee et al., 2006, Tarn, 2005, Villanueva et al., 2008). WOM effect is also amplified by the orbit Wide Web (Dominici, 2009 Trusov et al. 2009).CHAPTER 3 / CONCLUSION3.0 ConclusionsHence, both exploring the importance for customers of single attributes in hotel selection and to systematically survey their level of satisfaction are indispensable. Research on the topic of guests leads to negative evalua tions of the hotel, thus restricting the chance of repeat patronage guest satisfaction, which translates into the consideration of whether or not customers will return to a hotel or advice it to other tourists, is pivotal to the success of the hospitality business. Neglecting to pay attention to those hotel attributes considered most important by.CHAPTER 4 / REFERENCES