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This article explores the importance of research in the tourism and hospitality industry, with a focus on consumer research, measuring service quality, critical incidents studies, lost customer research, online research, common research errors, and effective use of market research in decision making.
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Topics Covered • Tourism and hospitality research introduction • Consumer research and customer loyalty • Measuring service quality • Critical incidents studies • Lost customer research • Online research • Common research errors • Effective use of market research in decision making
‘At Your Service’ Spotlight: Simply the Best Service with no boundaries. • Significant research • Press visits • Product development • Attention to media and journalists • Ski lovers as press coordinators • Media visits • WinterstartWorld Cup • Top treatment of journalists • Staff • Teaching by example • Excellence cards • Ride breaks
Introduction to research in tourism and hospitality • Market research often • Considered costly and time-consuming • Undertaken only around major developments • Contributions to day-to-day operations overlooked • Organizations overlook existing, accessible information • Study results ignored or not fully considered
Consumer research and customer loyalty • ‘Completely satisfied’ Enterprise customers • ‘Voice-of-Customer Operating Model’ • Net Promoter Score for consumers • Competitor intelligence • Benchmarking • Guest satisfaction scores (GSS)
Benchmarking UK’s top 20 attractions Table 6.2 (Source: Based on Which?, 2011)
A DINESERV interview Table 6.3
Benchmarking fast-food restaurants Figure 6.1 (Source: Adapted from Min and Min, 2010)
The Gaps Model of Service Quality Figure 6.2 (Source: Parasuraman, et al., 1985)
Measuring service quality • Importance–performance analysis (IPA) • Relative importance of attributes versus actual performance • SERVQUAL • Difference between consumers’ expectations and perceptions of service quality • 22 item scale, five dimensions • has been adapted to serve different industry sectors • Comment cards • performance-based measure and diagnostic tool • feedback at time of service experience • may be more effective than SERVQUAL or IPA • Mystery shopping • participant observation • A common market research technique • Rich information about service experience as it unfolds
IPA attribute ratings for ski destination Figure 6.3 (Source: Hudson and Shephard, 1998)
Advantages and disadvantages of mystery shopping Table 6.4 (Source: Adapted fromHudson, Hudson & Miller, 2004)
Snapshot: Checking out the Competition • You can never be too old to learn new things from just about anyone. • Mystery shopping • Gather information on industry rivals • Stay current, competitively priced • Improve customer service and guest communication • Enhance staff training and understand nuances of staff-guest interactions • Websites and publications • Stay abreast of trends • Learn what competitors are doing • Business in remote settings • Social media • Brand Karma Photo courtesy of Ben Hall
Critical incidents studies • Critical incident technique (CIT) • Qualitative interview procedures, verbatim accounts: • Consumer evaluation of services • Service failure and recovery • Employee and customer participation in service delivery • Service experience • Four main benefits of CIT • Sound information easily translated into action • Useful when the service is new, little information exists • Useful for assessing cross-cultural perceptions
Tracking service quality Figure 6.4 (Source: Adapted fromHudson, Hudson & Miller, 2004)
Lost customer research • Few organizations have effective strategies for evaluating customer attrition • Research targets customers who have dropped the company’s service • Makes inquiries about reasons for leaving • Identifies failure points and common problems • Calculates the cost of lost customers. • NBRI study – root cause driving down customer loyalty and customer satisfaction(68 %) identified as ‘wait time’
Online research • Electronic and online surveys • Computers placed in high-traffic locations • Customers asked to complete online surveys • Input tabulated, available instantly • Can be accessed by corporate and front-line staff • Instant service recovery • Long-term service improvement • Virtual focus groups • Online ‘chat’ sessions • Pre-recruited respondents in guided online discussion • Time- and cost-saving benefits • Virtual worlds e.g. Second Life • Social media and crowdsourcing e.g. Brand Karma
Common research errors • Not enough qualitative information • Especially important for launching new service or product • Improper use of sophisticated statistical analysis • Errors in collection, tabulation, or analysis of data • Failure to have a representative sample • Inaccurate estimates of the thoughts and behaviors of larger population • Problems with interpretation • Skill and dexterity is required on the part of the researcher
Effective use of market research • Research can play a critical role in development • Practical decision-making at a strategic level • Academic understanding of industry development • Feasibility studies for new projects • Successful research contingent on 3 conditions: • Sufficient resources • Research results stand, even when they conflict with preconceived views • Results should be implemented e.g. Courtyard by Marriott
Case Study:Driving complete customer satisfaction Going ”above and beyond” to satisfy customers. • Enterprise Service Quality index (ESQi) • Phone survey with two questions • Results collected, analyzed quarterly • Branch by branch comparisons • Promotions based on rankings • ”Brand Integrity Audits” • ‘Completely satisfied’ 3 times more likely to rent again • 3 satisfaction priorities: • Attitude, helpfulness of staff • Speed of transaction • Ceanlinessof the car
