Marketing Strategy of Toyota Energy-Saving Vehicle in UK Market Essay

Showcasing Strategy of Toyota Energy-Saving Vehicle in UK Market - Essay Example The analyst expresses that elective vitality news gives a scope of meanings of vitality sparing vehicles demonstrating that a vitality sparing vehicle has at least one of the accompanying characteristics. A stop-turn over motor, with is a standard inward ignition motor which turns itself off when the vehicle halts. A half and half vehicle which consolidates a standard interior burning motor with battery-controlled innovation, permitting the vehicle to choose the most effective wellspring of intensity through a locally available PC. At long last, there are vehicles which run totally from an electrical source dependent on flow battery advances. At present Toyota delivers and markets two models of vitality sparing vehicle in the UK every one of which has a somewhat unique advertising blend. The Prius is Toyota’s unique cross breed model and is focused on the mid-upper finish of the market for family vehicles. The vehicle is advertised as an item which is earth agreeable and gives the purchaser long haul cost investment funds with low MPG utilization rate. The vehicle is right now promoted in four particulars going in cost from  £21,000 to  £27,000. While the exhibition figures for the vehicle regarding fuel utilization are a critical selling highlight of the model and see the expense of running far lower than numerous different vehicles available. Pundits demonstrate that there are likewise other vitality sparing vehicles available which far more elevated levels of execution with regards to the issue of cost investment funds. With the Toyota Prius now entering its fourth era, one may consider that the item is entering the development phase of the item lifecycle. Purchasers no longer observe the Toyota Prius as an extreme advancement yet a functional method of getting a charge out of minimal effort motoring from the point of view of running expenses. Toyota Auris speaks to the second model of vitality sparing vehicle to be acquainted with the UK showcase by Toyota. Like its ancestor, the Toyota Prius the vehicle utilizes cross breed motor innovation to convey a vehicle with low running expenses and other money related advantages, for example, low assessment obligations. Nonetheless, the showcasing blend and target crowd for the Auris model is marginally extraordinary to that of the Prius.

Project Management on World Trade Organization ministerial Conference of 2005

Official Summary The point of this report is to explore the task the executives viewpoints identifying with the World Trade Organisation’s (WTO) clerical gathering in 2005. This report subtleties the issues identifying with venture the board and the effect of the task the executives rehearses on the result of the occasion. It recognizes the key partners in the undertaking and the job they had in deciding the achievement/disappointment of the task. This report further talks about the job of the administration and the powerful group building and the executives abilities and the amount of an effect these had in the fruitful undertaking conveyance. Presentation The World Trade Organization (WTO) Sixth Ministerial Conference which is curtailed as MC6 and prominently known as the Hong Kong Ministerial Conference was held between the thirteenth and eighteenth December, 2005 at the Hong Kong Convention and Exhibition Center. The absolute pivot expected for the meeting was agents from around 148 nations over the globe. The Hong Kong People’s Alliance drove a dissent on the WTO which chiefly comprised of ranchers from South Korea. The three fundamental assigned dissent zones included Wan Chai Sports ground and the area around Wan Chai Cargo Handling Basin. The complete spending plan for the ecclesiastical gathering was Hong Kong $250 million (WTO, 2005).BackgroundThe most noteworthy dynamic body of the World Trade Organization is the Ministerial Conference that meets at least once like clockwork. This pastoral meeting furnishes the association with the course and aides in the dynamic procedure (HKPA, 2006). The meeting held from thirteenth †eighteenth December 2005 is the 6th pastoral gathering and was planned for settling on a choice about the advancement of homestead exchange and arriving at an understanding identifying with ranch endowments . It additionally focused on effectively closing the 2006 Doha Round (Target WTO, 2005).The job of the undertaking managerThe venture director of the WTO meeting 2005 is answerable for the achievement of the task and furthermore guaranteeing that the partners connections are all around kept up and that all the partners can successfully impart and share their thoughts regarding farming issues (Heydon, 2006). Given that the WTO clerical gatherings assume a significant job in the dynamic procedure and guaranteeing that multilateral exchange understandings are easily executed, the job of the task chief can't be thought little of (Alam, 2008). This report talks about the job of the venture administrator in setting up great partner connections and his job in the accomplishment of the project.Project Objectives and ScopeThe targets and extent of the 2005 HK WTO gathering was to set up: Market get to †decrease in the tax of products Domestic help †direct installments to be made to the ranchers and neighborhood makers Export Subsidies Services †expel limitations universally in different assistance divisions and Singapore Issues †interest for straightforwardness parents in law, reasonable rivalry and so on. (UN, 2005) The extent of the task the board arranging exercises included course of action of setting, security and crisis, association of coordinations, overseeing media, planning and hazard and possibility arranging (Alam, 2008). Partner Analysis This area of the report talks about the key partners in the HK WWTO 2005 gathering, partner examination strategies to successfully speak with these partners so as to guarantee smooth correspondence. Partner Analysis is characterized as the action which investigations inside and out the mentalities of all the key partners towards a task (Goodpaster, 1991). Different definitions by analysts (Freeman, 1984) incorporate ‘a gathering of people who can influence or be influenced by the accomplishment of the association objectives’.Key StakeholdersThe key partners of the WTO incorporate the part countries, the sellers, tradesmen, ranchers and different classes of exchange affiliations, the media, the general population, administering bodies, the universal exchange network. It additionally incorporates everybody and open that are influenced straightforwardly or by implication because of the understandings and courses of action made by the WTO Ministerial meeting board (Alam, 2008).High Power , High InterestOne of the part countries that holds high force just as high enthusiasm for the World Trade Organization. There are a sum of 153 countries in the WTO and the USA connects with different countries and plays a position of authority in the WTO pastoral. For example, USA assumed a key job in the Doha Conference and was accused both straightforwardly and in a roundabout way for holding up the discussions and the advancement of the meetings. Given the high force and intrigue it holds in the WTO, USA means to help its fares. It assumes a significant job in the WTO exchanges to improve its position in the WTO as a ‘leader’ and furthermore to utilize the chance to start chats with its exchanging accomplices like Japan and India. Given its capacity, most choices of the exchange adjusts are profoundly impacted by the United States (BBC, 2013).High Power, Low InterestHong Kong as one of the key individuals from the WTO was the host to the fifth clerical meeting in the year 2005. Despite the fact that being a key part, Hong Kong has not indicated a lot of enthusiasm for the exercises of the WTO and has not made any proactive strides in issue goals of the progressing issues of the WTO. Be it horticulture or natural issues,Hong Kong stays to be a quiet onlooker as a rule which plainly shows the absence of e nthusiasm for affecting the part states or directing them to dynamic on explicit issues (BBC, 2013).Low Power, High InterestThe ranchers and the agribusiness network worldwide have high enthusiasm for the exercises of the WTO as the exchange understandings that are arranged and settled upon have a genuine bearing on their employment and concerns. There is a developing concern identifying with more pleasant exchange markets, food security and cultivating appropriations. In spite of the fact that there is a great deal of intrigue appeared by the cultivating network, they don't have the ability to talk and henceforth don't have the affecting capacity. The expansion in the self destruction paces of ranchers is likewise credited to the disappointment of WTO to comprehend their interests and the absence of straightforwardness and disparity in dealings of the WTO (Long, 2007; Shiva, 2014). Specialists likewise recommend that there is an absence of comprehension from the WTO board of truste es individuals on the necessities of the ranchers and the choices made are not in accordance with their requests (Anderson and Martin, 2005).Low Power, Low InterestThe last kind of partners have the least force and are additionally not a lot of keen on the exercises of the WTO. The residents of Hong Kong for instance, have a place with this partner gathering. Given that the multilateral understandings are gigantic and complex, the specialists don't have the limit and capacity to investigate the subtleties all things considered. Likewise, the specialists of a nation are not considered responsible for the dealings and understandings marked. This causes them to lose intrigue given that they neither have the force nor the ability to impact the dynamic. Additionally there are limitations that preclude them from scrutinizing the power (Keohane and Nye, 2001; Scharpf, 2000). Partner Management Partner the board is basic for the smooth correspondence and working of an association and furthermore to guarantee that the destinations of the association are accomplished. Partner the board ought to be in accordance with the key administration destinations of the association and the sort of the partner that should be fulfilled ought to be considered relying upon the association type so as to guarantee that these desires are met. It is fundamental to initially recognize the different partners, their job in the association, the dynamic power they have in the association and how much their thoughts or goals would influence the accomplishment of the association. Once these are recognized, it is fundamental to build up a partner the executives methodology that is focused on fulfilling these partners as well as accomplishes the general target of the association (Freeman, 2001). In a multicultural association or where the association is tremendous and ranges across various landmasses and societies, the partner the board procedure gets unavoidable. It characterizes the specialized strategies and helps understanding the do’s and don’ts in each geographic area. It likewise accomplishes straightforwardness in tasks and encourages better cooperation of the partners in the dynamic procedure. More grounded business choices that are economical, long haul and moral are encouraged by a decent partner the executives approach (Carroll and Buchholtz, 2014).Communication ManagementResearchers accept that not all partners of an association have equivalent significance. For instance, in a non-legislative association which is planned for helping individuals, the pubic may be the key partner rather than a business association which targets fulfilling the essential needs of the investors. Henceforth, in a different existence where the necessities of the associati ons vary, it is basic to comprehend the essential partners who should be fulfilled and devise a correspondence the executives intend to guarantee that the correspondence to these partners are made in close to ongoing and in a viable way (Podnar and Jancic, 2006; Jacobson et al, 2009).Tuckman’s Communication ModelBruce Tuckman conceived a five stage correspondence model in the year 1975. These five stages incorporates: Shaping Storming Norming Performing and Adjourning Shaping: This is the place the pioneer gives the direction to the group and the underlying stage in the correspondence procedure. This is where the jobs and duties are muddled Raging: Brainstorming exercises occur, bargains occur, lucidity increments and the colleagues get

Blog Archive Boosting Your Academic Profile with Supplemental Courses

Blog Archive Boosting Your Academic Profile with Supplemental Courses If you are seeking to boost your academic profile before you apply to business schoolâ€"either because of a low GPA, low test score, nontraditional background, or other potentially limiting factorâ€"you should consider taking one or more supplemental courses. These courses are a great way to prove your academic abilities and demonstrate how serious you are about earning your MBA. In our experience, taking two to three classes is ideal, but even completing just one can be helpful. You have many options from which to choose, and we recommend pinpointing courses that best address the gaps in your background and fit your career goals. Did you get a D in “Statistics” in college? Retake “Statistics” (and this time, get an A)! Are you hoping to transition from consulting to investment banking after you graduate? Take a finance course (and be sure to get an A)! Did we mention that getting an A in these courses is important? Aside from statistics and finance, we also recommend other quantitative-based subjects, including accounting, economics, calculus (or other advanced math). Depending on your needs, you might also consider a course in Excel, financial modeling, or business writing/communications. Our past clients at mbaMission have had success with taking supplemental courses through such programs as HBX CORe, UCLA Extension, UC Berkeley Extension, and MBA Math. Finally, aim to complete your supplemental courses before you need to submit your application, so you can provide the additional transcripts at the same time. Share ThisTweet Application Tips

Legalization Of Marijuan Colorado - 1323 Words

Legalization of Marijuana in Colorado Colorado is one of the first two states in the U.S. to legalize marijuana. The legalization indicated a momentous shift in drug policy in the state, and nationally as well, since the federal government has yet to seek to override Colorado’s violation of federal drug policy. Beforehand, there were many predictions made on the economic and social impacts of the legalization if it occurred, and to date, many have not come true. Of course, with such a small data set to work with, and only a couple years of information so far, it is unwise to make broad generalizations about the effects of the drug being legal, as enjoyable as making those assertions may be for some people. Nonetheless, some data is in, and these paint a preliminary picture of post-legalization Colorado. In the preceding years, when ferocious battles were waged over the wisdom of legalization, both in direct conversations and of course, on the internet, marijuana proponents mad e boasts about what a major positive impact on government budgets making pot legal would have. To people familiar with economics, basic math and tax policy, these arguments seemed very weak, and that is exactly what they have been proven to be in the first years of Colorado’s new drug era. Taxing a popular consumed item, whether it is hamburgers, alcohol or marijuana is never going to solve any budget dilemma. Budgets are based on foundations of taxing all property and/or all sales and/or all

The Limits of Language in Heart of Darkness Essay

The Limits of Language in Heart of Darkness From the very beginning of Heart of Darkness, Joseph Conrad traps us in a complex play of language, where eloquence is little more than a tool to obscure horrific moral shortcomings. Hazy, absurd descriptions, frame narratives, and a surreal sense of Saussurean structural linguistics create distance from an ever-elusive center, to show that language is incapable of adequately or directly revealing truth. Understanding instead occurs in the margins and along the edges of the narrative; the meaning of a story â€Å"is not inside like a kernel but outside, enveloping the tale which brought it out only as a glow brings out a haze† (105). The title of the novel is itself misleading, because Conrad†¦show more content†¦No, not very clear. And yet it seemed to throw a kind of light† (107). Because Conrad finds it impossible to truly reach the interior of an idea or person, notions of â€Å"light† and â€Å"progressâ⠂¬  quickly become absurd; he inverts the traditional hierarchy of meaning. Where in King Leopolds Ghost, Stanley and Leopold speak of progress as though it is a precise point on a map, in Heart of Darkness, the journey is much hazier and fraught with gaping holes — in watering pails and broken-down steamers alike. This is a world where captains â€Å"engaged in the noble cause† die in bloody disagreements over a pair of hens, and the Company compensates cannibals for their boating services with nine-inch pieces of brass wire (109). The Companys chief accountant keeps up the carefully coiffed appearances of a â€Å"hairdressers dummy† even in the midst of the jungle and â€Å"the great demoralisation of the land† (119). Marlows convoluted journey to find Kurtz coils around the center in an absurd, almost Kafka-esque fashion as each station gives way to yet another, always claiming to be the most â€Å"central† or â€Å"inner,† much like Rus sian nesting dolls. Marlow confronts a series of surfaces, exteriors like the edges of the forest or â€Å"a whirl of black limbs,† but never the interior kernel of truth (139). Even when Marlow locates Kurtz at last, at the both the dramatic and physical center of the story, his true essence still escapes him; he is only a â€Å"shadow† â€Å"unsteady, long, pale, indistinct,Show MoreRelated Degeneration of Kurtz, Colonialism, and Imperialism in Heart of Darkness1025 Words   |  5 Pagesand Colonialism in Heart of Darkness       Kurtz was a personal embodiment, a dramatization, of all that Conrad felt of futility, degradation, and horror in what the Europeans in the Congo called progress, which meant the exploitation of the natives by every variety of cruelty and treachery known to greedy man. Kurtz was to Marlow, penetrating this country, a name, constantly recurring in peoples talk, for cleverness and enterprise. 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But surrounding all of mans efforts in the Congo is a presence: Kurtz listened to it and went mad, and Marlow recognizes it but refuses to listen, neutralizes the appeal of the unknown and survives Kurtz, who succumbed to the fascinating wilderness.   Read MoreThe Lord s Will Help Shaping The Worldview Of Christian And People1324 Words   |  6 PagesFrom nothing, He created everything. Truly, the Lord’s power is almost incomprehensible, He had pulled out everything from nothing. He created the heaven, the earth, light and darkness, the land and the sea, all living creatures, and most importantly, man. Each and every component created by God has its purpose. Light and darkness are two sides of all creations, as it both exists each creature, symbolize goodness and evil. Water and air are crucial elements for life, as three fourth of the human bodyRead MoreInjustice In Frankenstein Essay1438 Words   |  6 Pages I sympathised in their joys† (87). 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Education Is The Most Powerful Weapon Essay - 1252 Words

Throughout our history, most of the revolutions were turning points that contributed and improved the modern society that we are living now. Social reformers such as Benjamin Franklin and Thomas Jefferson have been spreading the message that education is crucial in leading to a successful life. However, there are still many people, especially those from the bottom of our social hierarchy pyramid, are struggling in daily life because of the lack of education. Social problems that we encounter these days are the root cause which created inequality in our society. Poverty is one of the major problems generated by social inequality that results in educational disadvantage for people with certain backgrounds. As said by Nelson Mandela, â€Å"education is the most powerful weapon which you can use to change the world.† Education is a very important factor to eradicate social problems and inequality in order to promote a peaceful world with equal opportunities. However, the current e ducation system in the United States has shortcomings that shroud the cloud over the importance of education to one’s success in life. For this reason, all children should get an equal education regardless of their ethnicity or class background. Therefore it is clear that the concept of education leads to wealth and opportunity is not problematic and we should pass on the message that education is the key to success. Education provides the opportunity for individuals to think freely, so that they canShow MoreRelatedEducation Is The Most Powerful Weapon1841 Words   |  8 Pagesâ€Å"Education is the most powerful weapon which you can use to change the world†, says former South African President, Nelson Mandela. While this statement is very true, there are a few caveats to this statement. If students do not want to reap all the benefits of education, they will not be as likely to change the world. 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If the government proposed free community college to the students, each and everyone will have the chance to get an education as well the opportunity to have a better future. Free communityRead MoreEducation Is The Most Powerful Weapon1598 Words   |  7 PagesIntroduction Education, the most powerful weapon which can be used to change the world. Miriam-Webster dictionary defines education as the knowledge, skill, and understanding that you get from attending a school, college, or university (1). In today’s society, education is dispensed and received through different forms: campus-based, internet-based, distance, and home education. Home education or homeschool means a nonpublic school conducted primarily by the parent, guardian or other person having

“a Study of Bpo Industry with Reference to Employee free essay sample

The industry is very diverse, with several sub-segments, each displaying its own unique characteristics. The BPO players need to be excellent in every facet of operations as the market is highly competitive at every level and re-defining itself every day. It is basically a people-centric industry. The scenario however, is not as rosy as it looks, for this sector with enormous potential. Like any other industry during its growth phase, this industry is also going through its share of turbulence. There was the issue about people quitting the BPO jobs and the question arrived in my mind were: â€Å"Why do BPO executives job-hop so frequently?Is it just because of money or are there other reasons? and created an interest in my mind to find out the answers not only for the above questions but also for finding out the retention strategies that can be adopted by BPO’s. For the purpose of this project, the research work is limited to only 10 BPO’s in Mumbai and their 200 employees. We will write a custom essay sample on â€Å"a Study of Bpo Industry with Reference to Employee or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It was very difficult to study the industry as a whole as the size of the industry is very large and it is very difficult to extract information about the attrition rates and reasons for he same and also the strategies adapted by different companies to retain its staff in limited time period given for completion of the project.

Beauty in the Works of Jane Austin Essays

Beauty in the Works of Jane Austin Essays Beauty in the Works of Jane Austin Essay Beauty in the Works of Jane Austin Essay Jane Austen has emphasized love and beauty often in her novels.I mostly enjoy how she illustrates that beauty is not everything; as long as one has a good personality, money or family relations, they have a chance at love. In Northanger Abbey, Sense and Sensibility and Pride and Prejudice, Jane Austen creates a character whom is known for being homely yet lovely. Catherine in Northanger Abbey obtained a tom-boy attitude that was typically not attractive to men.Jane Austen knew it was not the stereotypical heroine’s personality, and quotes, â€Å"No one who had ever seen Catherine Morland in her infancy, would have supposed her born to be a heroine.† Although Catherine was not found to be very feminine, she fell in love with Henry since they both enjoyed reading novels, and education. The reader of this book is most like Catherine’s characteristics, and is not a standard heroine. Therefore, the reader can relate more towards Catherine.Beauty is seen to be shown through composure, cleanliness, obedience and being humble.Catherine does not show this: â€Å"she wasnoisy and wild, hated confinement and cleanliness, and loved nothing so well in the world as rolling down the green slope at the back of the house.†Yet, Catherine still finds love, giving hope to the readers. The combination of having all these feminine qualities would make a woman perfect.In Pride and Prejudice, Elizabeth interrogates the men on their definition of an â€Å"accomplished women.† Mr. Darcy, with boastful spirits, says that women must walk a certain way, be skilled at music, art, reading, tone and expression.While Elizabeth responds saying it is nearly impossible to expect every woman to be like his description, â€Å"I am no longer surprised at your knowing only six accomplished women. I rather wonder now at your knowing any.† I personally think this is very true.Media portrays women as needing to be accomplished, through knowledge, skill and

Element Symbols in Element Names

Element Symbols in Element Names Heres a list of the element names that can be broken down into element symbols. For example, the letters in the element neon are the symbols for Ne, O, N (neon, oxygen, and nitrogen). None of the element names ending in -ium work, so that eliminates many of the element names. ActiniumAluminumAmericiumAntimonyArgonArsenic - Ar Se Ni C, Ar Se N I CAstatine - As Ta Ti NeBariumBerkeliumBerylliumBismuthBohriumBoronBromineCadmiumCalciumCaliforniumCarbon - C Ar B O N, Ca Rb O NCeriumCesiumChlorineChromiumCobaltCoperniciumCopper - Co P P Er, C O P P ErCuriumDarmstadtiumDubniumDysprosiumEinsteiniumErbiumEuropiumFermiumFluorineFranciumGadoliniumGalliumGermaniumGoldHafniumHassiumHeliumHolmiumHydrogenIndiumIodineIridiumIron - Ir O NKrypton - Kr Y Pt O NLanthanumLawrenciumLeadLithiumLutetiumMagnesiumManganeseMeitneriumMendeleviumMercuryMolybdenumNeodymiumNeon - Ne O NNeptuniumNickelNiobiumNitrogenNobeliumOsmiumOxygenPalladiumPhosphorus - P H O S P H O Ru SPlatinumPlutoniumPoloniumPotassiumPraseodymiumPromethiumProtactiniumRadiumRadonRheniumRhodiumRubidiumRutheniumRutherfordiumSamariumScandiumSeaborgiumSeleniumSilicon - Si Li C O N, Si Li Co NSilverSodiumStrontiumSulfurTantalumTechnetiumTelluriumTerbiumThalliumThoriumThuliumTin - Ti NTitaniumTungstenUnunbiumUnunniliumU nunumiumUraniumVanadiumXenon - Xe N O N, Xe No NYtterbiumYttriumZincZirconium

What has gone wrong with Williams teams efforts and what should be Case Study - 1

What has gone wrong with Williams teams efforts and what should be done to ensure a successful outcome for the team - Case Study Example The group dynamic theory highlights on the social and psychological changes that come up in workplaces (David and Frank 2000). It helps in the comprehension of behaviours that come up due to team or group work in businesses. Communication styles play a significant role in the interpersonal relationships that emerge in workplaces. The bonds among workers contribute directly to the success or failure of the company. â€Å"†¦the success of an organization can depend on the levels of team work it employs† (Hartley & Bruckmann, 2008, p.311). Felix is a new employee who has social problems. He does not relate well with other employees and the company manager claims that his character is affecting the profits. Lack of teamwork has contributed to the failure of the company since it has not acquired the set goals and objectives. The main setback is the lack of communication skills and interpersonal relationships at the work place. Felix is competent, but â€Å"Developing sending skills meets only half the requirements for communicating effectively† (David & Frank, 2000, p. 147). He does not want to join groups and causal office conversation, is considered as a loner, and does want to share ideas with other employees. The employer considers his behaviour as a setback to the company because he cannot blend in with other employees. Teamwork requires that all members help each other to overcome problems that emerge in the business. â€Å"Groups and teams have assumed greater prominence in organisations in the past few decades†¦Ã¢â‚¬  (Eunson, 2005, p. 566). According to the dynamic theory, it insists on teamwork among employees since interpersonal relationships help in the growth of the business. â€Å"Members of groups act together to achieve common aims or goals† (Eunson, 2005, p. 567). However, Felix does not socialize outside the workplace. He is seen not contributing to fellow employees debates while they are having a drink.

Health and pe Essay Example | Topics and Well Written Essays - 500 words

Health and pe - Essay Example But how could I go about getting my people to exercise hard enough to start keeping weight off before I was replaced as King? I only had time to make about one Royal Decree before the official Weight and See Dinner to see whether I would stay king. If the people had more weight on them than the last Weight and See Dinner, I would need to start looking for another profession. After a lot of heavy thinking and finally falling asleep without a solution, I woke up the next morning with the perfect answer, dance! Instead of forcing my people to participate in strenuous activity, something none of them were necessarily naturally inclined to do, I simply performed a very active â€Å"Dance of Thanksgiving† in front of my astonished assembly just as breakfast was being served. After breakfast, I stood up and performed another dance, the â€Å"Dance of Satisfaction†, which was slower because my full belly just wanted to stretch. I did this same activity before brunch, lunch, the afternoon tea buffet, dinner and nighttime feast. I had so much fun doing it that I could help laughing through some of the dances and, by lunch, some of my people were looking more interested than shocked. By the nighttime feast, about half of them were joining me in the dances. By lunch the next day, everyone was dancing in wild movements of celebration before each meal and slower dances after each meal. By the third day, I caught my people dancing randomly during their other daily tasks just for the joy of movement. This was the perfect solution to the problem for many reasons. First, my people were participating in strenuous activity completely voluntarily, so they didn’t resent me for imposing a new rule and they didn’t resent the activity as something that they had to squeeze in between their other daily activities. Second, dancing is fun and it makes your body feel good, which is itself an encouragement to keep doing it. It also made the food preparers feel good because we

Customer Satisfaction at The Plaza Crowne Hotel

Customer Satisfaction at The Plaza Crowne Hotel Chapter I Introduction 1.1 Introduction Tourism is frequently and justifiably described as a major phenomenon of modern times. Since 1950 the number of international tourist arrivals worldwide has increased spectacularly, from just 25 million to over 924 million in 2008. Representing an average annual growth of 7 % a year (Sharpley, R., 2004; and WTO – World Tourism Organisation, 2009). International tourism generated US$ 856 billion in 2007, representing 30% of the world’s exports of services for the related year. Under the influence of the recent global economic recession, tourism demand has significantly slowed down in the past few months. Notably in the second half of 2008 growth came to stagnation with the number of international arrivals declining slightly – a trend which is expected to continue in 2009 and probably beyond, if the economy does not show signal of reaction (WTO – World Tourism Organisation, 2009). Regardless of the current actual global recession, it is undeniable the importance of the tourism activity for the world economy, mutual understanding of nations, personal growth and development, just to mention a few benefits that tourism brings in. The hospitality industry, as a segment of the tourism industry, plays a major role in this economic activity (King, 1995). Being accommodation the biggest percentage in tourism expenditure, in average of 34% of the total expenditure per trip (Sharpley, R., 2004). The success of the hospitality industry, relies massively on the quality of the service delivered and customer satisfaction. The index of the measurement of both, quality service and customer satisfaction, will widely influence on occupancy rates, hence, on the profitability of the company (Holloway, JC, 1998; Solomon et al, 2006). Therefore, justifying the need for a reliable model of assessment of customer satisfaction and service quality that would better adapt to the hospitality field, which at present still have a lack of agreement. 1.2 Research Title The measurement of service quality and customer satisfaction in the hospitality industry: a case study of the Plaza Crowne Hotel. 1.3 Research Background For Cardozo (1965), cited by Williams and Uysal (2003), marketing researches in the consumer satisfaction field started in the early 60’s. The subject had a relevant increase in popularity by organisations and researchers only in the 80’s, when organisations, in an attempt to try to keep itselves in the marketplace, started paying substantial attention on customer’s expectations demands. 1.4 Research Aims The aim of this project is to analyse customer satisfaction and service quality measurement, using the SERVQUAL model, within The Plaza Crowne Hotel – Kansas City (USA), based upon the hotel’s own data against the highlighted gaps within the model. 1.5 Research Objectives In order to achieve the specified aim it will be necessary to: Conduct a review of service quality and customer satisfaction; Illustrate The Plaza Crowne Hotel’s current customer satisfaction and service quality measurement model to identify its positive and negative aspects; Conduct an initial diagnosis of the key issues presented in the Crown Plaza data, examining the hotel’s past assessments in order to identify areas of failure; Analyse the SERVQUAL model focusing on the hospitality industry; Identify and critically recommend suitable quality measurement practices to apply within The Plaza Crowne Hotel, if necessary; Chapter II Literature Review 2.1 Introduction To Kotler et al (1996), nowadays companies need to change their view and attitude in the marketplace and adopt a more customer centred philosophy, in order to keep competitive and profitable. Customers are changing their behaviour towards consumption, becoming more challenging to companies to attend their expectations, as they are increasingly aware of their rights, expect more than they used to, and know exactly what they want when purchasing a product or service. This increase in consumers expectation naturally leads to the need of a higher quality in costumer services delivery. Customer satisfaction and quality service became priority for companies worldwide. They are believed to generate repeated business, therefore increased profit margin. The hospitality industry is paying close attention to it. Hampton’s Inn, a well know resort in Florida, has developed a 100% satisfaction guarantee program that promises its customers no charge unless they are completely satisfied. Other companies such as Sheraton Hotels has implemented a employees’ reward system for superior services to guests, the Sheraton Guests Satisfaction System (SGSS). Hilton International has adopted as a primary goal its customers satisfaction with global diversity. Moreover, organisations are increasingly becoming adept of rewarding its employees with bonuses, incentives and salary rise, just to mention a few actions to improve service. (Oh, 1997). Therefore, marketing researchers are constantly developing and improving models of measuring customers satisfaction and quality service. Among many measurement models and theories, this dissertation will focus on the analysis of the 5 Gaps Model developed by Parasuraman, Berry and Zeithaml also called The Servqual Model. 2.2 Defining Service Service is any act or performance that one firm can offer to a costumer, its nature is essentially intangible and does not result in the ownership of anything. The service production may or may not be tied to a physical product (Kotler, P, 2003). Addittionaly, Gronroos (1990) cited by Hsu et al (2001, p.18) defines service as â€Å"an activity or series of activities of more or less intangible nature that normally, but not necessarily, takes place in interactions between the costumer and services employees and/or physical resources or goods and/or systems of the service provider, which are provided as solutions to customer’s problems†. From the consumer’s optic, service is nothing else than the experience lived in the whole process of this transaction (Hsu et al, 2001). Moreover, it was noted that services have four major characteristics that greatly affect the way it is delivered and its marketing programme. Which are: intangibility, inseparability, variability, and perishability (Kotler, 2003). Bellow the four charactecristics are briefly explained in the light of Kotler (2003) and Hsu et al (2001): Intangibility relates to the extent that services cannot be tried in anyway before they are actually purchased and delivered. The only thing that can be done to reduce uncertainty is to look for evidences of service quality; Inseparability is the relation that services are typically produced and consumed simultaneously. The person who provides the service, is actually part of the service purchased, therefore the importance of the interaction of providers and customers; Variability occurs because services depend on who provides, when and where, one experience is never exactly equal the other. As people are the means through service production, personal problems, mood, knowledge of the job and many other factors can interfer and widely vary the service; Perishability means that services cannot be stored as we can do with manufactured products, because services are produced and consumed simultaneously. As an example, in a hotel, a room that was not occupied yesterday, cannot be sold anymore as time does not goes backwards. For Cook (2002) the increased global competition has made many organisations realised that they cannot compete only in price. Therefore companies are developing their own strategy in providing superior customer care to differentiate their products and services. â€Å"Surveys suggest that service-driven companies can charge up to 9 per cent more for the products and services they provide. They grow twice as fast as the average company and have the potential to gain up to 6 per cent market share† (Cook, 2002, p.1). 2.3 Defining customer satisfaction and quality service Peter Drucker cited by Cook (2002, p.1), once said: â€Å"There is only one valid definition of business purpose: to create a customer () an organisation’s ability to remain in business is a function of its competitiveness and its ability to win customers from the competition. The customer is the foundation of the business and keeps it in existence†. Customer satisfaction relates to the personal opinion and result of customers’ assessment of a service based on a comparison of their expectations and actual perceptions of the service delivered (Clark, G.; and Johnston, R., 2005). According to Lancaster et al (2002) from the customer’s point of view, service is judged by the mix of customers’ previous experiences and their perception of the outcome of the service. The service experience is the customer’s direct experience of the service process and concerns the way the customer is dealt with by the service provider. The result for the customer of the service delivered is described by the term service outcome. (Lancaster, G. et al, 2002). â€Å"Service quality is more often used to mean different things. Some managers use the term to mean how the customer is treated. This is perhaps more accurately called quality of service, as opposed to service quality, which can mean the entirety of outcome and experience† (Clark, G.; and Johnston, R., 2005, p.108). Van Looy (et al, 2003) differentiates service quality and customer satisfaction stating that â€Å"service quality is a form of attitude representing a long-run, overall evaluation, whereas satisfaction represents a more short-term, transaction-specific judgement. The level of customer satisfaction is the result of a customer’s comparison of the service quality expected in a given service encounter with perceived service quality. This also means that satisfaction assessments require customer experience while quality does not â€Å"(p.124). 2.4 Benefits of service quality Kotler (1996) has listed many benefits that an organisation enjoys as a prize for delivering service quality. As listed bellow: Retaining customers – high quality builds loyal customers and creates positive word of mouth. Avoidance of price competition – â€Å"the PIMS data show that firms in the top third in quality could charge 5% to 6% higher than those in the bottom third. High quality can help to avoid price competition and help to maximise potential revenue† (p.363). Retention of good employees – employees appreciate working in operations that are well managed and produce quality services and products. When an organisation operates in high quality, it decreases turn over rates, hence, retaining good employees. Additionally, recruiting is easier and training costs are reduced. Reduction of costs – which are divided in three categories of costs: Internal costs are those associated with correcting problems discovered by the firm before the product reaches the costumers; External costs – are associated with errors that the costumers experience; Quality system costs – are costs viewed as investments in the future of the company to ensure that customers return. (Kotler, 1996) 2.5 Benefits of a customer-centred organisation An excellent service provides many benefits to an organisation, Cook (2002) has listed what some of the best-practice organisations have gain on focusing on the customer. â€Å"Differentiate itself from the competition; improve its image in the eyes of the customer; minimise price sensitivity; improve profitability; increase customer satisfaction and retention; achieve a maximum number of advocates for the company; enhance its reputation; ensure products and services are delivered ‘right first time’; improve staff morale; increase employee satisfaction and retention; increase productivity; reduce costs; encourage employee participation; create a reputation for being a caring, customer-oriented company; foster internal customer/supplier relationships; bring about continuous improvements to the operation of the company† ( p.24). 2.6 Importance of customer relationship management (CRM) Customers perceive service quality through everyday aspect of their contact with the company. In improving the quality of its service therefore an organisation needs to develop a strategy bearing in mind all aspects of the relationship with its clients. (Cook, 2002) Customers often do not perceive the service they receive from an organisation as a complete entity. Attention to detail is a key tool of the organisation’s relationship with the customer â€Å"such as an incorrectly addressed letter, a lengthy delay in receiving an e-mail response, a service which turns out to be different to how it was originally advertised, which forms customers’ impressions† (Cook, 2002, p.24). CRM involves managing the customer relationship across all its interfaces with the company as one entire process. A CRM system can help identify sales prospects from existing or potential customer databases. It also can assist with all aspects of the sale and service being provided, eg offering online access to order status and a single view of the customer status when the sale is complete. It can collect information about the customer and the queries that he or she made. It can also monitor customer-usage patterns, so abnormal patterns or a reduction in use can be identified. Hotels systems can store any peculiarity or requests made by guests, such as preferences for smoking or non-smoking rooms, higher or lower floors etc. (Cook, 2002 and Lancaster et al, 2002). Ernst and Young found elements that are essentially important for organisations to build a CRM framework. First basic step is to accumulate systematic knowledge of its markets and costumers. This could be made by complex IT systems, that are designed to store, manager and analyse informations about customer’s value. With this tool organisations can access business informations regard theier costumers, and also predict consumer’s behaviour. Enabling organisations to share informations across departments, and automatically update this informations by tracking loyalty cards costumers, any time they make a purchase or request the company’s service,for example (Cook, 2002). CRM systems helps companies to target theier segments, and also to analyse the information flow throughout the company. Making easier to identify its costumers needs, and more importantly, shows the best way to approach its most profitable clients. The more information a company holds about its costumer’s the best is the knowledge built, as it helps refines consumer segmentation and individual needs. In this particular case, data about costumers life-style is very helpful (Cook, 2002). Selling involves taking a proactive approach towards costumers, rather than a reactive. For instance, hotels can treat their most profitable business guests with special offers on their holidays. To finish the CRM framework, is essential to hold a service, providing an after-sales which should be measured to individual needs (Cook, 2002). 2.7 Importance of performance measurement and a programme development â€Å"You cannot manage what you can not measure† (Kelvin Anon, www.dti.gov.uk/quality/performance). According to Cook (2002) and Williams (2002) managers braves the way through customer satisfaction measurement. A measurement programme starts with a clear definition of objectives, budget and timeline. Moreover, for this task to be performed and achieve its highest level of success, it is necessary the full commitment and willingness of top management to act on the results founded. A starting point should be to decide which part of customer satisfaction the company is most concerned to measure. Is also important to be aware that expectations and satisfaction levels can widely vary between the costumers of a company, therefore, the need to identify market segments. For example, the different needs of a businesses and tourists guest of a hotel. (Cook, 2002; Laws, 2004; Williams, 2002) According to Clark and Johnston (2005) performance measurement is costly. Few organisations have calculated just how much time and energy they spend on measuring their performance and its value for money relation. Two useful tests of a performance measure are, first, what is its purpose and, second, what systems are in place to support or achieve that purpose. There are four main purposes or reasons to take measurement: communication, motivation, control and improvement within the company. In the endless improvement process, measuring performance is an important task in order to identify and track progress in harmony with the organisations’ goals; identify areas and opportunities for improvement; and compare performance with internal and external standards (www.dti.gov.uk/quality/performance). According to the Department of Trade and Industry (DTI) the main reasons of measuring performance is: †¢ â€Å"To ensure customer requirements have been met †¢ To be able to set sensible objectives and comply with them †¢ To provide standards for establishing comparisons †¢ To provide visibility and a â€Å"scoreboard† for people to monitor their own performance level †¢ To highlight quality problems and determine areas for priority attention †¢ To provide feedback for driving the improvement effort† (retrieved from ). 2.8 The SERVQUAL model The Servqual model was developed by Parasuraman, Zeithaml and Berry, and has been one of the most popular service quality measurement instrument since then. The model was designed to measure those components of service that generate satisfaction within five dimensions (Ryan and Saleh,1991; Lee et al, 2004; Johns et al, 2004). Originally the researchers conducted a focus group studies with service providers and costumers, and as a result they came up with a list of ten determinants or dimensions of service quality which are: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer and tangibles, (Van Looy, B et al, 2003; Parasuraman et al, 1990; Ryan and Saleh,1991) which will be briefly explained bellow: Tangibles – the appearance of physical facilities, the personnel, the tools or equipment used to provide the service and communication material. Guests of a hotel look for details of the building, web sites and reservation systems for instance. Reliability – consistency of performance and dependability. This means that the firm performs the service correctly the first time and that the firm honours its promises. Responsiveness – the willingness to help the customers and to provide prompt service. Competence – knowledge, ability and possession of the right skills to perform the job. Access – degree of approachability of service providers. Courtesy – use of good manners, politeness, friendliness, smiling during the service. Communication – ability to successfully communicate with costumers, keep them informed. Understanding – degree of interest of employees to know the costumers needs and wants. Assurance – knowledge and courtesy of employees and their ability to inspire trust and confidence. Empathy – caring, individualized attention to customers. (Van Looy, B et al, 2003; Parasuraman et al, 1990; Ryan and Saleh,1991) Later on, in another attempt of improving their models they found a high degree of correlation between communication, competence, courtesy, credibility and security. They therefore, merged them into one dimension, which they called assurance. Similarly they found a high correlation between access and understanding which they merged into empathy. Thus compacting the dimensions of service quality in five which are: tangibles, reliability, responsiveness, assurance and empathy (Van Looy, B et al, 2003; Dabholkar et al 2000). The diagram bellow was originally made to suit the quality service measurement and customer satisfaction of a car repair garage. Which can be easily adapted to any other service organisation, surely including any hotels to be more precise. Source: http://www.emeraldinsight.com/fig/0240221006003.png The SERVQUAL identified gaps between clients and organisations perceptions of attributes of service perceived, and also between customers expectations and perceptions of the service actually delivered (Ryan and Saleh,1991; Landrigan, 1999). This has led to the well known and widely used 5 gaps of service quality: Gap 1: Consumer expectations versus management perception CEO’s and managers often fail to realise what consumers expect of a service and which features needs to be pursued to deliver a high-quality service. When management does not understand what their customers want, a gap 1 exists. Very often, organisations research to find out what are their markets needs and wants, but later can occur a divergence. When customer needs change but the product remains the same, gap 1 increases, as the service becomes less attractive (Parasuraman etal, 1991). Gap 2: Management perception versus service quality specifications A gap 2 situation occurs when managers know their customers needs, but do not deliver it, either for unwillingness or incapability. Reasons for gap 2 to happen could be inadequate commitment to service quality, absence of goal setting, lack of perception of feasibility, and lack of standardization. The pursuit to achieve short-term profits refrain companies to invest in equipments and people, causing service quality issues (Parasuraman etal, 1991). Gap3: Service quality specifications versus service delivery Gap 3 occurs when employees are unwilling or unable to deliver the appropriate service that was specified by management. In this case managers understand their customers needs, develop strategies and tasks to fulfil these needs, but in the moment of employee and costumer interaction it does not occur (Parasuraman etal, 1991). Gap 3 could be minimised through training and development, rewarding and internal marketing campaigns. Human resources department plays a major role in this task. Gap 4: Service delivery versus external communications A company creates gap 4 when it promises more than it can deliver, creating disappointments to its customers. Good sense and ethic when advertising should be primordial in any circumstances (Parasuraman etal, 1991). The image of a company that cheats or lies to its costumers leads to an extremely bad reputation and negative word of mouth. Gap 5: Expected service versus perceived service Last but not least, gap 5 is a function of the other gaps. It pictures the difference among expected quality and perceived quality. If any of the other 4 gaps increases or decreases, gap 5 will follow it (Parasuraman etal, 1991). The diagram below represents the 5 gaps model of quality service. Source: http://www.kmfadvance.com/mind_the_gap_files/image004.jpg 2.9 Criticisms and limitations of the SERVQUAL According to Oh (1997) the use of the difference of the scores contributes to discrepancies and errors, affecting the reliability and valididyt of the model. Such finding suggests that caution has to be taken when using the scores, and that additional work is essential to the development of measures of assessing the quality of services. In addition it is also noticeable that the SERVQUAL lacks in ties with statistics, economics and even psychology theories, therefore many arguments has formed a doubtful opinion regards its relaibility. 2.10 Other service quality and costumer satisfaction measurement models Obviously, the SERVQUAL is not the only model available to measure service quality and costumer satisfaction. Indeed, there is a range of variety of models out there. Some of them will be quickly explained in this study. 2.10.1 The expectancy-disconfirmation model (EDM) The principle of expectancy theory was early stated by Lewin (1938) who hypothesized that individuals make decisions on the most appropriate action to take based on their expectations of the outcomes of that action. After being reviewed by many researchers, the model developed to two processes: the formation of expectations and the disconfirmation/ confirmation of the expectations through performance evaluations (Oh, 1997; available at http://proquest.umi.com.newdc.oum.edu.my/pqdweb). Chapter III Research Methodology 3.1 Research Process This research will include several components of different character, promoting the approach to new problems, providing bibliographic survey, offering a selection of methodologies, as well as providing a critical analysis of results (Saunders, et al, 2003). In order for the aims of this research to be met it is necessary to gain an understanding of the practices of the service quality and customer satisfaction assessments applied within The Crowne Plaza Hotel (please see appendix II). This data will be given by one manager of the company, and will be adapted for a experimental application of the SERVQUAL model. The research and development will comprise creative work undertaken on a systematic basis in order to build knowledge accumulation, including not only the practices of the service quality and customer satisfaction assessments model researched but how would be applied within The Crowne Plaza Hotel in order to achieve competitive advantage and business success. The purpose of the literature review is theoretically discussing ideas that exist about the given topic. Data sources, such as library catalogues and indexes will be scanned for secondary data. This will produce a list of journals and newspaper articles, published books and internet sources (Saunders, et al, 2003). The secondary research will be complemented by primary research, through questionnaires and interviews with stakeholders of the organization in question. In case of interviews and questionnaires, the manager cooperating with this research will be fully informed about the, methods and intended possible uses of the research, what their participation in the project entails, the strict confidentiality, and academic purpose only (Bell, 1999). The project proposes to use analytical and theoretical framework, which extends descriptive research, making suggestions of why and how practices of the service quality and customer satisfaction assessments plays an important role in the competitive advantage, profitability and success of the firm (Yin, 2003). A method of both, quantitative and qualitative approach will be applied in order to examine values, attitudes and perceptions aspects of the research subject. (Flick, 2003) The departure point will be deductive, with the observation of the SERVQUAL model, fed by the organisation information’s collected where conclusions will be critically evaluated against facts. Moreover, a phenomenological philosophy will be implemented, applying a case study approach, since this kind of research methodology is ideally suited to investigate the insights into the service quality and customer satisfaction in theory and practice (Yin, 2003). The data collected for this research was taken between the months of January, February and March 2009, it consists of 380 customer satisfaction surveys, applied by the hotel. This surveys were answered by guests, either on the check-out or on the hotel web site, after their stay in the hotel. At the time of the data collection, was common practice of the hotel’s front desk manager to put the weekly result together and send to all hotel departments, so they could have a picture of the guest’s feedback. 3.2 Research Theories In order to achieve this reaserch objectives it will be necessary to apply many reaserch theories that reinforces the reliability of it. The theories used in this research will be briefly explained one by one. 3.2.1 Case study According to Robson (2002:178) cited by Saunders et al, 2003, p.93), a case study is â€Å"a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evedence†. A case study approach is recommended to those reasearchs that essentially aims to explain ‘why’, ‘how’ such phenomenon occurs, as well as in research that includes surveys (Saunders, 2003; Yin,2003). A case study is also a scientific way of explore an existing theory, which is one of the main objectives of this research, as is analysing the use of SERVQUAL (Saunders, 2003). 3.2.2 Descriptive studies In order to have a clear picture of the scenario studied is essentially important to describe with accuration every data collected. As cited by Saunders et al (2003, p.97), Robson, 2002:59 describes the objective of descriptive research as ‘ to portray an accurate profile of persons, events or situations’. 3.2.3 Deductive method Complementing the case study approach, a deductive method could be simply described as way of what we would think of a scientific research or theory, moving from theory to practice (Bailey, 2006; Cottrell, 2005; Saunders, 2003). â€Å"It involves the development of a theory that is subjected to a rigorous test† (Saunders, 2003, p. 86). The deductive method has many characteristics. â€Å"First, there is the search to explain casual relationships between variables† (Saunders, 2003, p. 86). Then, hypothesis development, followed by hypothesis testing, normally using quantitative data, but could also being backed up by qualitative data. 3.2.4 Quantitative data On the other hand quantitative research apply measurements and normally considered as better than qualitative research. Ghauri and Gronhaug (2005; p. 109) explains that â€Å"the difference between quantitative and qualitative methods and approach is not just a question of quantification, but also a reflection of different perspectives on knowledge and research objectives†. A method of qualitative approach will be applied in order to examine values, attitudes, and perceptions aspects of the research subject. 3.2.5 Qualitative data A narrative analysis process was implemented to interpret the data that were collected from the research portion of this project. Thomas (2003; p.1) argues that â€Å"Qualitative methods involves a researcher describing kinds of characteristics of people and events without comparing events in terms of measurements or amounts† 3.3 Research Design The survey consists of a questionnaire of 44 questions (picked by the hotel’s own customer satisfaction survey) related to the quality of the service provided by the hotel. The guests (sample = 380) will answer the questions according to their perception of the service received, whilst the managers (sample = 4) will answer the questions according to what they expect the overall of the guests to answer. The answers will range between score 1 to score 5. Being 1 the best degree of satisfaction and 5 the worst degree of dissatisfaction, (Saleh and Ryan, 1991) having some variations as follows: Score 1: very satisfied / definitely would / much more than you paid / much better / excellent / yes Score 2: somewhat satisfied / probably would / somewhat more than you paid / somewhat better / very good Score 3: neither / might or might not / about what you paid / about the same / good Score 4: somewhat dissatisfied / probably would not / somewhat lees than you Customer Satisfaction at The Plaza Crowne Hotel Customer Satisfaction at The Plaza Crowne Hotel Chapter I Introduction 1.1 Introduction Tourism is frequently and justifiably described as a major phenomenon of modern times. Since 1950 the number of international tourist arrivals worldwide has increased spectacularly, from just 25 million to over 924 million in 2008. Representing an average annual growth of 7 % a year (Sharpley, R., 2004; and WTO – World Tourism Organisation, 2009). International tourism generated US$ 856 billion in 2007, representing 30% of the world’s exports of services for the related year. Under the influence of the recent global economic recession, tourism demand has significantly slowed down in the past few months. Notably in the second half of 2008 growth came to stagnation with the number of international arrivals declining slightly – a trend which is expected to continue in 2009 and probably beyond, if the economy does not show signal of reaction (WTO – World Tourism Organisation, 2009). Regardless of the current actual global recession, it is undeniable the importance of the tourism activity for the world economy, mutual understanding of nations, personal growth and development, just to mention a few benefits that tourism brings in. The hospitality industry, as a segment of the tourism industry, plays a major role in this economic activity (King, 1995). Being accommodation the biggest percentage in tourism expenditure, in average of 34% of the total expenditure per trip (Sharpley, R., 2004). The success of the hospitality industry, relies massively on the quality of the service delivered and customer satisfaction. The index of the measurement of both, quality service and customer satisfaction, will widely influence on occupancy rates, hence, on the profitability of the company (Holloway, JC, 1998; Solomon et al, 2006). Therefore, justifying the need for a reliable model of assessment of customer satisfaction and service quality that would better adapt to the hospitality field, which at present still have a lack of agreement. 1.2 Research Title The measurement of service quality and customer satisfaction in the hospitality industry: a case study of the Plaza Crowne Hotel. 1.3 Research Background For Cardozo (1965), cited by Williams and Uysal (2003), marketing researches in the consumer satisfaction field started in the early 60’s. The subject had a relevant increase in popularity by organisations and researchers only in the 80’s, when organisations, in an attempt to try to keep itselves in the marketplace, started paying substantial attention on customer’s expectations demands. 1.4 Research Aims The aim of this project is to analyse customer satisfaction and service quality measurement, using the SERVQUAL model, within The Plaza Crowne Hotel – Kansas City (USA), based upon the hotel’s own data against the highlighted gaps within the model. 1.5 Research Objectives In order to achieve the specified aim it will be necessary to: Conduct a review of service quality and customer satisfaction; Illustrate The Plaza Crowne Hotel’s current customer satisfaction and service quality measurement model to identify its positive and negative aspects; Conduct an initial diagnosis of the key issues presented in the Crown Plaza data, examining the hotel’s past assessments in order to identify areas of failure; Analyse the SERVQUAL model focusing on the hospitality industry; Identify and critically recommend suitable quality measurement practices to apply within The Plaza Crowne Hotel, if necessary; Chapter II Literature Review 2.1 Introduction To Kotler et al (1996), nowadays companies need to change their view and attitude in the marketplace and adopt a more customer centred philosophy, in order to keep competitive and profitable. Customers are changing their behaviour towards consumption, becoming more challenging to companies to attend their expectations, as they are increasingly aware of their rights, expect more than they used to, and know exactly what they want when purchasing a product or service. This increase in consumers expectation naturally leads to the need of a higher quality in costumer services delivery. Customer satisfaction and quality service became priority for companies worldwide. They are believed to generate repeated business, therefore increased profit margin. The hospitality industry is paying close attention to it. Hampton’s Inn, a well know resort in Florida, has developed a 100% satisfaction guarantee program that promises its customers no charge unless they are completely satisfied. Other companies such as Sheraton Hotels has implemented a employees’ reward system for superior services to guests, the Sheraton Guests Satisfaction System (SGSS). Hilton International has adopted as a primary goal its customers satisfaction with global diversity. Moreover, organisations are increasingly becoming adept of rewarding its employees with bonuses, incentives and salary rise, just to mention a few actions to improve service. (Oh, 1997). Therefore, marketing researchers are constantly developing and improving models of measuring customers satisfaction and quality service. Among many measurement models and theories, this dissertation will focus on the analysis of the 5 Gaps Model developed by Parasuraman, Berry and Zeithaml also called The Servqual Model. 2.2 Defining Service Service is any act or performance that one firm can offer to a costumer, its nature is essentially intangible and does not result in the ownership of anything. The service production may or may not be tied to a physical product (Kotler, P, 2003). Addittionaly, Gronroos (1990) cited by Hsu et al (2001, p.18) defines service as â€Å"an activity or series of activities of more or less intangible nature that normally, but not necessarily, takes place in interactions between the costumer and services employees and/or physical resources or goods and/or systems of the service provider, which are provided as solutions to customer’s problems†. From the consumer’s optic, service is nothing else than the experience lived in the whole process of this transaction (Hsu et al, 2001). Moreover, it was noted that services have four major characteristics that greatly affect the way it is delivered and its marketing programme. Which are: intangibility, inseparability, variability, and perishability (Kotler, 2003). Bellow the four charactecristics are briefly explained in the light of Kotler (2003) and Hsu et al (2001): Intangibility relates to the extent that services cannot be tried in anyway before they are actually purchased and delivered. The only thing that can be done to reduce uncertainty is to look for evidences of service quality; Inseparability is the relation that services are typically produced and consumed simultaneously. The person who provides the service, is actually part of the service purchased, therefore the importance of the interaction of providers and customers; Variability occurs because services depend on who provides, when and where, one experience is never exactly equal the other. As people are the means through service production, personal problems, mood, knowledge of the job and many other factors can interfer and widely vary the service; Perishability means that services cannot be stored as we can do with manufactured products, because services are produced and consumed simultaneously. As an example, in a hotel, a room that was not occupied yesterday, cannot be sold anymore as time does not goes backwards. For Cook (2002) the increased global competition has made many organisations realised that they cannot compete only in price. Therefore companies are developing their own strategy in providing superior customer care to differentiate their products and services. â€Å"Surveys suggest that service-driven companies can charge up to 9 per cent more for the products and services they provide. They grow twice as fast as the average company and have the potential to gain up to 6 per cent market share† (Cook, 2002, p.1). 2.3 Defining customer satisfaction and quality service Peter Drucker cited by Cook (2002, p.1), once said: â€Å"There is only one valid definition of business purpose: to create a customer () an organisation’s ability to remain in business is a function of its competitiveness and its ability to win customers from the competition. The customer is the foundation of the business and keeps it in existence†. Customer satisfaction relates to the personal opinion and result of customers’ assessment of a service based on a comparison of their expectations and actual perceptions of the service delivered (Clark, G.; and Johnston, R., 2005). According to Lancaster et al (2002) from the customer’s point of view, service is judged by the mix of customers’ previous experiences and their perception of the outcome of the service. The service experience is the customer’s direct experience of the service process and concerns the way the customer is dealt with by the service provider. The result for the customer of the service delivered is described by the term service outcome. (Lancaster, G. et al, 2002). â€Å"Service quality is more often used to mean different things. Some managers use the term to mean how the customer is treated. This is perhaps more accurately called quality of service, as opposed to service quality, which can mean the entirety of outcome and experience† (Clark, G.; and Johnston, R., 2005, p.108). Van Looy (et al, 2003) differentiates service quality and customer satisfaction stating that â€Å"service quality is a form of attitude representing a long-run, overall evaluation, whereas satisfaction represents a more short-term, transaction-specific judgement. The level of customer satisfaction is the result of a customer’s comparison of the service quality expected in a given service encounter with perceived service quality. This also means that satisfaction assessments require customer experience while quality does not â€Å"(p.124). 2.4 Benefits of service quality Kotler (1996) has listed many benefits that an organisation enjoys as a prize for delivering service quality. As listed bellow: Retaining customers – high quality builds loyal customers and creates positive word of mouth. Avoidance of price competition – â€Å"the PIMS data show that firms in the top third in quality could charge 5% to 6% higher than those in the bottom third. High quality can help to avoid price competition and help to maximise potential revenue† (p.363). Retention of good employees – employees appreciate working in operations that are well managed and produce quality services and products. When an organisation operates in high quality, it decreases turn over rates, hence, retaining good employees. Additionally, recruiting is easier and training costs are reduced. Reduction of costs – which are divided in three categories of costs: Internal costs are those associated with correcting problems discovered by the firm before the product reaches the costumers; External costs – are associated with errors that the costumers experience; Quality system costs – are costs viewed as investments in the future of the company to ensure that customers return. (Kotler, 1996) 2.5 Benefits of a customer-centred organisation An excellent service provides many benefits to an organisation, Cook (2002) has listed what some of the best-practice organisations have gain on focusing on the customer. â€Å"Differentiate itself from the competition; improve its image in the eyes of the customer; minimise price sensitivity; improve profitability; increase customer satisfaction and retention; achieve a maximum number of advocates for the company; enhance its reputation; ensure products and services are delivered ‘right first time’; improve staff morale; increase employee satisfaction and retention; increase productivity; reduce costs; encourage employee participation; create a reputation for being a caring, customer-oriented company; foster internal customer/supplier relationships; bring about continuous improvements to the operation of the company† ( p.24). 2.6 Importance of customer relationship management (CRM) Customers perceive service quality through everyday aspect of their contact with the company. In improving the quality of its service therefore an organisation needs to develop a strategy bearing in mind all aspects of the relationship with its clients. (Cook, 2002) Customers often do not perceive the service they receive from an organisation as a complete entity. Attention to detail is a key tool of the organisation’s relationship with the customer â€Å"such as an incorrectly addressed letter, a lengthy delay in receiving an e-mail response, a service which turns out to be different to how it was originally advertised, which forms customers’ impressions† (Cook, 2002, p.24). CRM involves managing the customer relationship across all its interfaces with the company as one entire process. A CRM system can help identify sales prospects from existing or potential customer databases. It also can assist with all aspects of the sale and service being provided, eg offering online access to order status and a single view of the customer status when the sale is complete. It can collect information about the customer and the queries that he or she made. It can also monitor customer-usage patterns, so abnormal patterns or a reduction in use can be identified. Hotels systems can store any peculiarity or requests made by guests, such as preferences for smoking or non-smoking rooms, higher or lower floors etc. (Cook, 2002 and Lancaster et al, 2002). Ernst and Young found elements that are essentially important for organisations to build a CRM framework. First basic step is to accumulate systematic knowledge of its markets and costumers. This could be made by complex IT systems, that are designed to store, manager and analyse informations about customer’s value. With this tool organisations can access business informations regard theier costumers, and also predict consumer’s behaviour. Enabling organisations to share informations across departments, and automatically update this informations by tracking loyalty cards costumers, any time they make a purchase or request the company’s service,for example (Cook, 2002). CRM systems helps companies to target theier segments, and also to analyse the information flow throughout the company. Making easier to identify its costumers needs, and more importantly, shows the best way to approach its most profitable clients. The more information a company holds about its costumer’s the best is the knowledge built, as it helps refines consumer segmentation and individual needs. In this particular case, data about costumers life-style is very helpful (Cook, 2002). Selling involves taking a proactive approach towards costumers, rather than a reactive. For instance, hotels can treat their most profitable business guests with special offers on their holidays. To finish the CRM framework, is essential to hold a service, providing an after-sales which should be measured to individual needs (Cook, 2002). 2.7 Importance of performance measurement and a programme development â€Å"You cannot manage what you can not measure† (Kelvin Anon, www.dti.gov.uk/quality/performance). According to Cook (2002) and Williams (2002) managers braves the way through customer satisfaction measurement. A measurement programme starts with a clear definition of objectives, budget and timeline. Moreover, for this task to be performed and achieve its highest level of success, it is necessary the full commitment and willingness of top management to act on the results founded. A starting point should be to decide which part of customer satisfaction the company is most concerned to measure. Is also important to be aware that expectations and satisfaction levels can widely vary between the costumers of a company, therefore, the need to identify market segments. For example, the different needs of a businesses and tourists guest of a hotel. (Cook, 2002; Laws, 2004; Williams, 2002) According to Clark and Johnston (2005) performance measurement is costly. Few organisations have calculated just how much time and energy they spend on measuring their performance and its value for money relation. Two useful tests of a performance measure are, first, what is its purpose and, second, what systems are in place to support or achieve that purpose. There are four main purposes or reasons to take measurement: communication, motivation, control and improvement within the company. In the endless improvement process, measuring performance is an important task in order to identify and track progress in harmony with the organisations’ goals; identify areas and opportunities for improvement; and compare performance with internal and external standards (www.dti.gov.uk/quality/performance). According to the Department of Trade and Industry (DTI) the main reasons of measuring performance is: †¢ â€Å"To ensure customer requirements have been met †¢ To be able to set sensible objectives and comply with them †¢ To provide standards for establishing comparisons †¢ To provide visibility and a â€Å"scoreboard† for people to monitor their own performance level †¢ To highlight quality problems and determine areas for priority attention †¢ To provide feedback for driving the improvement effort† (retrieved from ). 2.8 The SERVQUAL model The Servqual model was developed by Parasuraman, Zeithaml and Berry, and has been one of the most popular service quality measurement instrument since then. The model was designed to measure those components of service that generate satisfaction within five dimensions (Ryan and Saleh,1991; Lee et al, 2004; Johns et al, 2004). Originally the researchers conducted a focus group studies with service providers and costumers, and as a result they came up with a list of ten determinants or dimensions of service quality which are: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer and tangibles, (Van Looy, B et al, 2003; Parasuraman et al, 1990; Ryan and Saleh,1991) which will be briefly explained bellow: Tangibles – the appearance of physical facilities, the personnel, the tools or equipment used to provide the service and communication material. Guests of a hotel look for details of the building, web sites and reservation systems for instance. Reliability – consistency of performance and dependability. This means that the firm performs the service correctly the first time and that the firm honours its promises. Responsiveness – the willingness to help the customers and to provide prompt service. Competence – knowledge, ability and possession of the right skills to perform the job. Access – degree of approachability of service providers. Courtesy – use of good manners, politeness, friendliness, smiling during the service. Communication – ability to successfully communicate with costumers, keep them informed. Understanding – degree of interest of employees to know the costumers needs and wants. Assurance – knowledge and courtesy of employees and their ability to inspire trust and confidence. Empathy – caring, individualized attention to customers. (Van Looy, B et al, 2003; Parasuraman et al, 1990; Ryan and Saleh,1991) Later on, in another attempt of improving their models they found a high degree of correlation between communication, competence, courtesy, credibility and security. They therefore, merged them into one dimension, which they called assurance. Similarly they found a high correlation between access and understanding which they merged into empathy. Thus compacting the dimensions of service quality in five which are: tangibles, reliability, responsiveness, assurance and empathy (Van Looy, B et al, 2003; Dabholkar et al 2000). The diagram bellow was originally made to suit the quality service measurement and customer satisfaction of a car repair garage. Which can be easily adapted to any other service organisation, surely including any hotels to be more precise. Source: http://www.emeraldinsight.com/fig/0240221006003.png The SERVQUAL identified gaps between clients and organisations perceptions of attributes of service perceived, and also between customers expectations and perceptions of the service actually delivered (Ryan and Saleh,1991; Landrigan, 1999). This has led to the well known and widely used 5 gaps of service quality: Gap 1: Consumer expectations versus management perception CEO’s and managers often fail to realise what consumers expect of a service and which features needs to be pursued to deliver a high-quality service. When management does not understand what their customers want, a gap 1 exists. Very often, organisations research to find out what are their markets needs and wants, but later can occur a divergence. When customer needs change but the product remains the same, gap 1 increases, as the service becomes less attractive (Parasuraman etal, 1991). Gap 2: Management perception versus service quality specifications A gap 2 situation occurs when managers know their customers needs, but do not deliver it, either for unwillingness or incapability. Reasons for gap 2 to happen could be inadequate commitment to service quality, absence of goal setting, lack of perception of feasibility, and lack of standardization. The pursuit to achieve short-term profits refrain companies to invest in equipments and people, causing service quality issues (Parasuraman etal, 1991). Gap3: Service quality specifications versus service delivery Gap 3 occurs when employees are unwilling or unable to deliver the appropriate service that was specified by management. In this case managers understand their customers needs, develop strategies and tasks to fulfil these needs, but in the moment of employee and costumer interaction it does not occur (Parasuraman etal, 1991). Gap 3 could be minimised through training and development, rewarding and internal marketing campaigns. Human resources department plays a major role in this task. Gap 4: Service delivery versus external communications A company creates gap 4 when it promises more than it can deliver, creating disappointments to its customers. Good sense and ethic when advertising should be primordial in any circumstances (Parasuraman etal, 1991). The image of a company that cheats or lies to its costumers leads to an extremely bad reputation and negative word of mouth. Gap 5: Expected service versus perceived service Last but not least, gap 5 is a function of the other gaps. It pictures the difference among expected quality and perceived quality. If any of the other 4 gaps increases or decreases, gap 5 will follow it (Parasuraman etal, 1991). The diagram below represents the 5 gaps model of quality service. Source: http://www.kmfadvance.com/mind_the_gap_files/image004.jpg 2.9 Criticisms and limitations of the SERVQUAL According to Oh (1997) the use of the difference of the scores contributes to discrepancies and errors, affecting the reliability and valididyt of the model. Such finding suggests that caution has to be taken when using the scores, and that additional work is essential to the development of measures of assessing the quality of services. In addition it is also noticeable that the SERVQUAL lacks in ties with statistics, economics and even psychology theories, therefore many arguments has formed a doubtful opinion regards its relaibility. 2.10 Other service quality and costumer satisfaction measurement models Obviously, the SERVQUAL is not the only model available to measure service quality and costumer satisfaction. Indeed, there is a range of variety of models out there. Some of them will be quickly explained in this study. 2.10.1 The expectancy-disconfirmation model (EDM) The principle of expectancy theory was early stated by Lewin (1938) who hypothesized that individuals make decisions on the most appropriate action to take based on their expectations of the outcomes of that action. After being reviewed by many researchers, the model developed to two processes: the formation of expectations and the disconfirmation/ confirmation of the expectations through performance evaluations (Oh, 1997; available at http://proquest.umi.com.newdc.oum.edu.my/pqdweb). Chapter III Research Methodology 3.1 Research Process This research will include several components of different character, promoting the approach to new problems, providing bibliographic survey, offering a selection of methodologies, as well as providing a critical analysis of results (Saunders, et al, 2003). In order for the aims of this research to be met it is necessary to gain an understanding of the practices of the service quality and customer satisfaction assessments applied within The Crowne Plaza Hotel (please see appendix II). This data will be given by one manager of the company, and will be adapted for a experimental application of the SERVQUAL model. The research and development will comprise creative work undertaken on a systematic basis in order to build knowledge accumulation, including not only the practices of the service quality and customer satisfaction assessments model researched but how would be applied within The Crowne Plaza Hotel in order to achieve competitive advantage and business success. The purpose of the literature review is theoretically discussing ideas that exist about the given topic. Data sources, such as library catalogues and indexes will be scanned for secondary data. This will produce a list of journals and newspaper articles, published books and internet sources (Saunders, et al, 2003). The secondary research will be complemented by primary research, through questionnaires and interviews with stakeholders of the organization in question. In case of interviews and questionnaires, the manager cooperating with this research will be fully informed about the, methods and intended possible uses of the research, what their participation in the project entails, the strict confidentiality, and academic purpose only (Bell, 1999). The project proposes to use analytical and theoretical framework, which extends descriptive research, making suggestions of why and how practices of the service quality and customer satisfaction assessments plays an important role in the competitive advantage, profitability and success of the firm (Yin, 2003). A method of both, quantitative and qualitative approach will be applied in order to examine values, attitudes and perceptions aspects of the research subject. (Flick, 2003) The departure point will be deductive, with the observation of the SERVQUAL model, fed by the organisation information’s collected where conclusions will be critically evaluated against facts. Moreover, a phenomenological philosophy will be implemented, applying a case study approach, since this kind of research methodology is ideally suited to investigate the insights into the service quality and customer satisfaction in theory and practice (Yin, 2003). The data collected for this research was taken between the months of January, February and March 2009, it consists of 380 customer satisfaction surveys, applied by the hotel. This surveys were answered by guests, either on the check-out or on the hotel web site, after their stay in the hotel. At the time of the data collection, was common practice of the hotel’s front desk manager to put the weekly result together and send to all hotel departments, so they could have a picture of the guest’s feedback. 3.2 Research Theories In order to achieve this reaserch objectives it will be necessary to apply many reaserch theories that reinforces the reliability of it. The theories used in this research will be briefly explained one by one. 3.2.1 Case study According to Robson (2002:178) cited by Saunders et al, 2003, p.93), a case study is â€Å"a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evedence†. A case study approach is recommended to those reasearchs that essentially aims to explain ‘why’, ‘how’ such phenomenon occurs, as well as in research that includes surveys (Saunders, 2003; Yin,2003). A case study is also a scientific way of explore an existing theory, which is one of the main objectives of this research, as is analysing the use of SERVQUAL (Saunders, 2003). 3.2.2 Descriptive studies In order to have a clear picture of the scenario studied is essentially important to describe with accuration every data collected. As cited by Saunders et al (2003, p.97), Robson, 2002:59 describes the objective of descriptive research as ‘ to portray an accurate profile of persons, events or situations’. 3.2.3 Deductive method Complementing the case study approach, a deductive method could be simply described as way of what we would think of a scientific research or theory, moving from theory to practice (Bailey, 2006; Cottrell, 2005; Saunders, 2003). â€Å"It involves the development of a theory that is subjected to a rigorous test† (Saunders, 2003, p. 86). The deductive method has many characteristics. â€Å"First, there is the search to explain casual relationships between variables† (Saunders, 2003, p. 86). Then, hypothesis development, followed by hypothesis testing, normally using quantitative data, but could also being backed up by qualitative data. 3.2.4 Quantitative data On the other hand quantitative research apply measurements and normally considered as better than qualitative research. Ghauri and Gronhaug (2005; p. 109) explains that â€Å"the difference between quantitative and qualitative methods and approach is not just a question of quantification, but also a reflection of different perspectives on knowledge and research objectives†. A method of qualitative approach will be applied in order to examine values, attitudes, and perceptions aspects of the research subject. 3.2.5 Qualitative data A narrative analysis process was implemented to interpret the data that were collected from the research portion of this project. Thomas (2003; p.1) argues that â€Å"Qualitative methods involves a researcher describing kinds of characteristics of people and events without comparing events in terms of measurements or amounts† 3.3 Research Design The survey consists of a questionnaire of 44 questions (picked by the hotel’s own customer satisfaction survey) related to the quality of the service provided by the hotel. The guests (sample = 380) will answer the questions according to their perception of the service received, whilst the managers (sample = 4) will answer the questions according to what they expect the overall of the guests to answer. The answers will range between score 1 to score 5. Being 1 the best degree of satisfaction and 5 the worst degree of dissatisfaction, (Saleh and Ryan, 1991) having some variations as follows: Score 1: very satisfied / definitely would / much more than you paid / much better / excellent / yes Score 2: somewhat satisfied / probably would / somewhat more than you paid / somewhat better / very good Score 3: neither / might or might not / about what you paid / about the same / good Score 4: somewhat dissatisfied / probably would not / somewhat lees than you