The importance of market research Chapter 6 Hudson &
Hudson. Customer Service for Hospitality & Tourism
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Topics Covered o Tourism and hospitality research introduction
o Consumer research and customer loyalty o Measuring service
quality o Critical incidents studies o Lost customer research o
Online research o Common research errors o Effective use of market
research in decision making
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At Your Service Spotlight: Simply the Best Service with no
boundaries. o Significant research Press visits Product development
o Attention to media and journalists Ski lovers as press
coordinators Media visits Winterstart World Cup Top treatment of
journalists o Staff Teaching by example Excellence cards Ride
breaks
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Introduction to research in tourism and hospitality o Market
research often Considered costly and time-consuming Undertaken only
around major developments Contributions to day-to-day operations
overlooked Organizations overlook existing, accessible information
Study results ignored or not fully considered
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Applied Research in Tourism & Hospitality Table 6.1
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Consumer research and customer loyalty o Completely satisfied
Enterprise customers o Voice-of-Customer Operating Model o Net
Promoter Score for consumers o Competitor intelligence o
Benchmarking Guest satisfaction scores (GSS)
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Benchmarking UKs top 20 attractions Table 6.2 (Source: Based on
Which?, 2011)
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A DINESERV interview Table 6.3
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Benchmarking fast-food restaurants Figure 6.1 (Source: Adapted
from Min and Min, 2010)
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The Gaps Model of Service Quality Figure 6.2 (Source:
Parasuraman, et al., 1985)
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Measuring service quality o Importanceperformance analysis
(IPA) Relative importance of attributes versus actual performance o
SERVQUAL Difference between consumers expectations and perceptions
of service quality 22 item scale, five dimensions has been adapted
to serve different industry sectors o Comment cards
performance-based measure and diagnostic tool feedback at time of
service experience may be more effective than SERVQUAL or IPA o
Mystery shopping participant observation A common market research
technique Rich information about service experience as it
unfolds
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IPA attribute ratings for ski destination Figure 6.3 (Source:
Hudson and Shephard, 1998)
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Advantages and disadvantages of mystery shopping Table 6.4
(Source: Adapted from Hudson, Hudson & Miller, 2004)
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Snapshot: Checking out the Competition You can never be too old
to learn new things from just about anyone. o Mystery shopping
Gather information on industry rivals Stay current, competitively
priced Improve customer service and guest communication Enhance
staff training and understand nuances of staff-guest interactions o
Websites and publications o Stay abreast of trends o Learn what
competitors are doing o Business in remote settings o Social media
Brand Karma Photo courtesy of Ben Hall
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Critical incidents studies o Critical incident technique (CIT)
o Qualitative interview procedures, verbatim accounts: Consumer
evaluation of services Service failure and recovery Employee and
customer participation in service delivery Service experience o
Four main benefits of CIT Sound information easily translated into
action Useful when the service is new, little information exists
Useful for assessing cross-cultural perceptions
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Tracking service quality Figure 6.4 (Source: Adapted from
Hudson, Hudson & Miller, 2004)
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Lost customer research o Few organizations have effective
strategies for evaluating customer attrition o Research targets
customers who have dropped the companys service Makes inquiries
about reasons for leaving Identifies failure points and common
problems Calculates the cost of lost customers. o NBRI study root
cause driving down customer loyalty and customer satisfaction (68
%) identified as wait time
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Online research o Electronic and online surveys Computers
placed in high-traffic locations Customers asked to complete online
surveys Input tabulated, available instantly Can be accessed by
corporate and front-line staff Instant service recovery Long-term
service improvement o Virtual focus groups o Online chat sessions
Pre-recruited respondents in guided online discussion Time- and
cost-saving benefits o Virtual worlds e.g. Second Life o Social
media and crowdsourcing e.g. Brand Karma
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Common research errors o Not enough qualitative information
Especially important for launching new service or product o
Improper use of sophisticated statistical analysis Errors in
collection, tabulation, or analysis of data o Failure to have a
representative sample Inaccurate estimates of the thoughts and
behaviors of larger population o Problems with interpretation Skill
and dexterity is required on the part of the researcher
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Effective use of market research o Research can play a critical
role in development Practical decision-making at a strategic level
Academic understanding of industry development Feasibility studies
for new projects o Successful research contingent on 3 conditions:
Sufficient resources Research results stand, even when they
conflict with preconceived views Results should be implemented e.g.
Courtyard by Marriott
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Case Study: Driving complete customer satisfaction o Enterprise
Service Quality index (ESQi) Phone survey with two questions
Results collected, analyzed quarterly Branch by branch comparisons
Promotions based on rankings Brand Integrity Audits o Completely
satisfied 3 times more likely to rent again o 3 satisfaction
priorities: Attitude, helpfulness of staff Speed of transaction
Ceanliness of the car Going above and beyond to satisfy
customers.