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Topics Covered

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.

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Topics Covered

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  1. 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

  2. ‘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

  3. 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

  4. Applied Research in Tourism & Hospitality Table 6.1

  5. 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)

  6. Benchmarking UK’s top 20 attractions Table 6.2 (Source: Based on Which?, 2011)

  7. A DINESERV interview Table 6.3

  8. Benchmarking fast-food restaurants Figure 6.1 (Source: Adapted from Min and Min, 2010)

  9. The Gaps Model of Service Quality Figure 6.2 (Source: Parasuraman, et al., 1985)

  10. 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

  11. IPA attribute ratings for ski destination Figure 6.3 (Source: Hudson and Shephard, 1998)

  12. Advantages and disadvantages of mystery shopping Table 6.4 (Source: Adapted fromHudson, Hudson & Miller, 2004)

  13. 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

  14. 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

  15. Tracking service quality Figure 6.4 (Source: Adapted fromHudson, Hudson & Miller, 2004)

  16. 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’

  17. 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

  18. 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

  19. 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

  20. 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

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