an assessment between budget hotels in China: service quality, customer satisfaction and loyal: a consumer perspective

an assessment between budget hotels in" rel="nofollow">in Chin" rel="nofollow">ina: service quality, customer satisfaction and loyal: a consumer perspective Paper details: The methodology part need to be revised accordin" rel="nofollow">ing to my professor's comments (i will upload that later) Workin" rel="nofollow">ing title: an assessment between budget hotels in" rel="nofollow">in Chin" rel="nofollow">ina: service quality, customer satisfaction and loyal: a consumer perspective. Student Name: Student Number: Module Code: TL 4010 Submission Date: 04/03/2016 To: Abstract Purpose- the aim of this research is to studies the level of service quality, and degree of consumer satisfaction and loyalty of budget hotels in" rel="nofollow">in Chin" rel="nofollow">ina. Besides, the entire study will explore from a consumer view, in" rel="nofollow">in order to better understand the customer’s expectations in" rel="nofollow">in current situation in" rel="nofollow">in Chin" rel="nofollow">ina market, also identify the main" rel="nofollow">in factors that in" rel="nofollow">influence consumer satisfaction and loyalty, so that to stimulate the development and expansion of budget hotel in" rel="nofollow">industry in" rel="nofollow">in Chin" rel="nofollow">ina. Literature review - the literature review will in" rel="nofollow">include theories of budget hotel and the development of budget hotel in" rel="nofollow">in Chin" rel="nofollow">ina. Besides, it will also in" rel="nofollow">include theories of Service quality, customer Satisfaction, and loyalty. Research methodology- to achieve the research objectives, this study will use qualitative method, quantitative method, onlin" rel="nofollow">ine questionnaire survey, in" rel="nofollow">interviews and secondary data. Data analysis - SPSS software will be adopt to analysis the primary d Key words: budget hotel, service quality, consumer satisfaction, and loyalty. Content page Abstract Introduction Overall aims Literature Review Chapter 1: Defin" rel="nofollow">inition of budget hotel What is budget hotel? Chapter 2:The development of budget hotel in" rel="nofollow">in Chin" rel="nofollow">ina Budget hotel in" rel="nofollow">in Chin" rel="nofollow">ina Chapter 3:Service quality and customer Satisfaction and loyalty What is service quality? Customer satisfaction Customer loyalty Research Methodology Data Analysis References Introduction Durin" rel="nofollow">ing the year of 2000- 2010 due to the Olympic competition held in" rel="nofollow">in 2008 in" rel="nofollow">in Beijin" rel="nofollow">ing and World exposition in" rel="nofollow">in Shanghai in" rel="nofollow">in 2010, hotel in" rel="nofollow">industry entered a boomin" rel="nofollow">ing period. Without doubt that the budget hotels play a critical role in" rel="nofollow">in lodgin" rel="nofollow">ing market in" rel="nofollow">in supportin" rel="nofollow">ing the success of the tourism in" rel="nofollow">industry, as a result of in" rel="nofollow">increasin" rel="nofollow">ingly mass demandin" rel="nofollow">ing (BOC in" rel="nofollow">international social service team depth report—Chin" rel="nofollow">ina’s economy hotel in" rel="nofollow">industry,2015). However, there was a stagnant occurred durin" rel="nofollow">ing year of 2010 to 2014, from the Chin" rel="nofollow">ina Hotel Busin" rel="nofollow">iness Survey (2015) can be concluded that the year of 2013 was an significant watershed year in" rel="nofollow">in hotel in" rel="nofollow">industry. There were lots of homogeneous products and has been in" rel="nofollow">in the cycle of oversupply, that problem also appear in" rel="nofollow">in the budget hotel market and directly lead to development of budget hotel slow down after 2010. Additionally, accordin" rel="nofollow">ing to the current report the percentage of budget hotel is less than 30% in" rel="nofollow">in Chin" rel="nofollow">ina’s hotel in" rel="nofollow">industry, meanwhile the proportion of budget hotel in" rel="nofollow">in United Stated has over 70%.The fact implied that there are lots of chances to develop for budget hotel in" rel="nofollow">in Chin" rel="nofollow">ina (Research and Development Forecast of Chin" rel="nofollow">ina’s Budget Hotel, 2013). Without any doubt that the economy hotel in" rel="nofollow">industry in" rel="nofollow">in Chin" rel="nofollow">ina is experiencin" rel="nofollow">ing bottleneck period and dramatic changes and budget hotelier must possess keen in" rel="nofollow">insight to break the precedent to deal with new challenges in" rel="nofollow">in the market and expand it contin" rel="nofollow">inually. Therefore, it’s time to implement an assessment in" rel="nofollow">in service quality and consumer satisfaction and loyalty at economy hotels in" rel="nofollow">in Chin" rel="nofollow">ina to better meet their needs and expectation so that promote in" rel="nofollow">industry development and growth of profit. Overall aims: Aims To assess the level of service quality, and degree of consumer satisfaction and loyalty of budget hotels in" rel="nofollow">in Chin" rel="nofollow">ina. The entire study will explore from a consumer view, in" rel="nofollow">in order to better understand the customer’s expectations in" rel="nofollow">in current situation in" rel="nofollow">in Chin" rel="nofollow">ina market, also identify the main" rel="nofollow">in factors that in" rel="nofollow">influence consumer satisfaction and loyalty, so that to stimulate the development and expansion of budget hotel in" rel="nofollow">industry in" rel="nofollow">in Chin" rel="nofollow">ina. Research objectives ? To conduct a literature review of all relative published source. ? To identify the nature and characteristics of budget hotels in" rel="nofollow">in Chin" rel="nofollow">ina. ? To assess the importance of service quality and its component to customer. ? To evaluate aspect of customer satisfaction and how it may be achieved. ? To consider the role of customer loyalty and how budget hotel might benefit. ? To produce a list of recommendation for in" rel="nofollow">industry and consumer alike Literature Review It is essential to do literature review before the carry out research or doin" rel="nofollow">ing dissertation, it is a efficient way of gain" rel="nofollow">in more knowledge and relative in" rel="nofollow">information that may concern to our research topic, also literature review is beneficial to researcher to acquire enough evidence to progress and develop the research subjects (0liver, 2012). Chapter 1: Defin" rel="nofollow">inition of budget hotel Broadly speakin" rel="nofollow">ing budget hotel means economy or “limited service”(Davidson, 1993). Specifically, the feature of budget hotel can be described as: Strong brandin" rel="nofollow">ing; Coverage widely; accessible; standard room layout; limited service; high return (Brotherton, 2004). In that case the budget hotel in" rel="nofollow">in Chin" rel="nofollow">ina can be concluded have followin" rel="nofollow">ing traits: a cost-effective modern, set the mass traveler and busin" rel="nofollow">iness man as target consumer, with reasonable and attractive price (normally below RMB300) and provided standard service, quality hardware and comfortable environment (Junfei, 2012). Chapter 2: The development of budget hotel in" rel="nofollow">in Chin" rel="nofollow">ina Budget hotel came late in" rel="nofollow">in Chin" rel="nofollow">ina market, the first budget hotel brand is created by Jin" rel="nofollow">inJiang International Holdin" rel="nofollow">ings Co., Ltd. in" rel="nofollow">in 1996, called JINJIANG INN. Although budget hotel history in" rel="nofollow">in Chin" rel="nofollow">ina is not long but the speed of development is remarkable (The Analysis of Budget Hotel). Accordin" rel="nofollow">ing to the BOC in" rel="nofollow">international social service team depth report: budget hotels has gradually formed a pattern of oligopoly after 2010: home in" rel="nofollow">inns, 7 days hotels, Htin" rel="nofollow">inns hotels and Jin" rel="nofollow">injiang Inn became the leadin" rel="nofollow">ing enterprises with the higher market share than others in" rel="nofollow">in Chin" rel="nofollow">ina. Specifically based on the Research and Development Forecast of Chin" rel="nofollow">ina’s Budget Hotel (2013-2017), the number of budget hotel brand is 419 in" rel="nofollow">in 2013; the market share of Home Inns Group, Htin" rel="nofollow">inns and Jin" rel="nofollow">ingjJiang Inns and 7 Days Group Holdin" rel="nofollow">ings has reached more than 47%. Chapter 3: Service quality, customer Satisfaction, and loyalty Gerson(1993) in" rel="nofollow">insisted that service quality is all about customer perceives, which means all service standards must be made in" rel="nofollow">in order to meet expectation of consumers and also high-level service quality could in" rel="nofollow">indirectly and directly lead to high customer satisfaction and high repeat as well(Gerson, 1993). As a result of once consumer were satisfied they would do more frequent busin" rel="nofollow">iness with you and became loyalty, this is also important element in" rel="nofollow">in same in" rel="nofollow">industry competition. Based on the report carried out by Barsky & Nash (2006) demonstrated that the percentage of customer loyalty impact on consumer decision of hotel options has in" rel="nofollow">increased to 34% in" rel="nofollow">in 2006. More importantly Service quality and consumer Satisfaction and loyalty are the significant factors that impact on the profit and success of busin" rel="nofollow">iness (Gronoos, 1990). All the factors mentioned above is critical to contin" rel="nofollow">inue expand the budget hotel market in" rel="nofollow">in Chin" rel="nofollow">ina , the reason why conduct this assessment or measurement study is due to Gerson(1993) suggested that measurement technique play a key role in" rel="nofollow">in service quality improvement also the most direct way that identify overall service performance. Therefore the in" rel="nofollow">inevitability of conduct this study to assess service quality and measure degree of consumer satisfaction and loyalty is obvious Research Methodology The researcher will adopt both qualitative (in" rel="nofollow">interview questions) and quantitative (questionnaires in" rel="nofollow">instrument) research methods. Due to the different nature of two data collection approaches, apply both methods can achieve a more comprehensive and accurate data collection. Assessment of service quality and consumer satisfaction has significant effect on the prosperity of the in" rel="nofollow">industry. In this research, the target hotel will be the 4 leadin" rel="nofollow">ing enterprises (Jin" rel="nofollow">ingjiang Inn; Home Inn; 7-Days hotel and Htin" rel="nofollow">inns Hotel), which located in" rel="nofollow">in Chongqin" rel="nofollow">ing. The reason researcher choose Chongqin" rel="nofollow">ing city in" rel="nofollow">in Chin" rel="nofollow">ina is because due to latest report conducted by BOC (2015): a budget hotel chain" rel="nofollow">ins are main" rel="nofollow">inly distributed in" rel="nofollow">in the first and second-tier cities, Chongqin" rel="nofollow">ing as a developin" rel="nofollow">ing first-tier city has various accessibility and advantages, also the prospect of development. Qualitative method is to in" rel="nofollow">interpret or make sense of certain" rel="nofollow">in social phenomena and apply relative theories to dig out the profound and underlyin" rel="nofollow">ing reasons of phenomena (Jha, 2008). So that researcher can use it to learn what’s the expectation of consumer in" rel="nofollow">indeed and how budget hotelier can achieve it in" rel="nofollow">in a cost-efficient way. In order to in" rel="nofollow">increase the validity and reliability of this study in" rel="nofollow">interview approach also will be applied in" rel="nofollow">in this study. In the view of Gillham (2005), in" rel="nofollow">interview method is also a widely measurement approach, but it is different from questionnaire, data collected is more compellin" rel="nofollow">ing and enlightenin" rel="nofollow">ing, due to the data is not just numbers but also words and profound explanations. Moreover, unstructured in" rel="nofollow">interview will be taken in" rel="nofollow">in this study, because the in" rel="nofollow">interviewee will selected from questionnaire respondents (10 people) who rank the service as “very good” or “extremely bad”, the view of consumer will unexpected and vary from in" rel="nofollow">individuals. Researcher will also implement the unstructured in" rel="nofollow">interview through mobile phone, by reason of Gillham (2005) mentioned distance in" rel="nofollow">interview is more low-cost and efficient. Muijs (2004) believed that the quantitative method is usin" rel="nofollow">ing the number to talk, based on the numeric data to analyze and explain" rel="nofollow">in the research topic and questions. In this study will make use of paperless work, the on-lin" rel="nofollow">ine questionnaire, aimin" rel="nofollow">ing to measure the perceive of service quality and degree of satisfaction and repeat rates. Respondents will be selected randomly from the 4 target budget hotels in" rel="nofollow">in Chongqin" rel="nofollow">ing, Chin" rel="nofollow">ina (7-Days hotels; Jin" rel="nofollow">injiang Inn; Home Inn; and Htin" rel="nofollow">inns). Respondents can only use 2-3min" rel="nofollow">ins to scan the QR code of “Wechat” application, from the Wechat account sendin" rel="nofollow">ing onlin" rel="nofollow">ine questionnaire lin" rel="nofollow">ink to consumer and they can answer questions on their phone and leave contact number for subsequent in" rel="nofollow">interview resources. Researcher will cooperate with the manager to issue certain" rel="nofollow">in voucher or other benefits to consumer who would like to spend time to do questionnaire to cancel the bias and in" rel="nofollow">induce the risk of in" rel="nofollow">inaccuracy answers. All data that collected will also share with the hotel operator for their further improvement evidences. Data Analysis In this paper, SPSS software will be adopt to analysis the primary data that collected from the questionnaires. As a result of multifunction and user-friendly data analysis of SPSS software, which become the most frequently statistical data analysis software and it is popular in" rel="nofollow">in most in" rel="nofollow">institutions of higher education (Muijs, 2004). And the in" rel="nofollow">interview notes and scripts will manually organized and concluded by researcher. The questionnaire method is aim to understand the level of service quality and what consumer perceived, on the other hand, in" rel="nofollow">interview scripts is the more deep discovery of in" rel="nofollow">inner reasons of satisfaction or dissatisfaction and the in" rel="nofollow">interviewees will be chosen from those respondents of survey before. References 1. Anon., 2015. BOC in" rel="nofollow">international social service team depth report—Chin" rel="nofollow">ina’s economy hotel in" rel="nofollow">industry. <http://www.199it.com/archives/375701.html> [Accessed 28 February 2016]. 2. Anon.,2015. Chin" rel="nofollow">ina Hotel Busin" rel="nofollow">iness Survey. Chin" rel="nofollow">ina Tourism Press <http://www.chin" rel="nofollow">inabookshop.net/chin" rel="nofollow">ina-hotel-busin" rel="nofollow">iness-survey-2015-p-22145.html?osCsid=dg6run4isalr43hiarl4u94hb2> [Accessed 28 February 2016]. 3. Anon., 2012. Research and Development Forecast of Chin" rel="nofollow">ina’s Budget Hotel,2013-2017 HuiDian Research <www.hdcmr.com> [Accessed 29 February 2016]. 4. Atkin" rel="nofollow">inson, A., 1998. Answerin" rel="nofollow">ing the eternal question: what does customer want? The Cornell Hotel and Restaurant Admin" rel="nofollow">inistration Quarterly,29(2), pp.12-14. 5. Barsky,J. and Nash,L., 2006. Companies update loyalty programs, in" rel="nofollow">increase effective. Hotel and Motel Management,22(11) pp.28-29. Junfei, Z., 2012. The Analysis of Current Situation of Budget Hotel and Innovative development. <http://www.gotran.com/translate/show.php?itemid=6924> [Accessed 29 February 2016]. 6. Brotherton, B. 2004. Critical Success Factor in" rel="nofollow">in UK Budget hotel Operations. International Journal of Operations &Production Management, 24(9/10), 944-969. 7. Davidson, R. 1993. Budget hotel in" rel="nofollow">in Europe. Insights, 4, A141-144. 8. Gerson, R.F. 1993. Measurin" rel="nofollow">ing Customer Satisfaction : A Guide to Managin" rel="nofollow">ing Quality Service. Course Technology / Cengage Learnin" rel="nofollow">ing, Menlo Park, CA, USA. Available from: ProQuest ebrary. [3 March 2016]. 9. Gillham, B 2005. Research Interviewin" rel="nofollow">ing : The Range of Techniques, McGraw-Hill Professional Publishin" rel="nofollow">ing, Berkshire, GBR. Available from: ProQuest ebrary. [3 March 2016]. 10. Gronoos, C. 1990. Service Management and Marketin" rel="nofollow">ing: Managin" rel="nofollow">ing the moments of truth in" rel="nofollow">in service competition. Lexin" rel="nofollow">ington Books, USA. 11. Jha, N.K., 2008. “Research Methodology” Abhisek Publications pp.42-45. 12. Muijs, Daniel.,2004. Doin" rel="nofollow">ing Quantitative Research in" rel="nofollow">in Education with SPSS. London, GBR: SAGE Publications Inc. pp.2-3. 13.Oliver, P., 2012. Succeedin" rel="nofollow">ing with your literature review: A Handbook for Students. Berkshire: Open University Press.pp.5-6