Customer Perceived Value (hessamaldin abolghassemi)

Customer Perceived Value

(Analysis of Customer perceived value in hotel industry)

Presented to

Peter Williamson

By

Hessamaldin Abolghassemi

5515142004

Independent study

2nd Semester Academic Year 2014

A THESIS PRESENTED TO RAMKHAMHAENG UNIVERSITY

IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

(Marketing)

2014

ii

Customer Perceived Value

(Analysis of Customer Perceived Value in hotel industry)

Hessamaldin Abolghassemi

5515142004




(Marketing)

2014

COPYRIGHT BY RAMKHAMHAENG UNIVERSITY

1

Study Title Customer Perceived Value

(Analysis of Customer Perceived Value in Hotel industry)

Student´s name Hessamaldin Abolghassemi

Advisor Peter Williamson

Assessed with grade




(Marketing)

2014

2

Introduction

Visitor perceived value can be a dynamic criterion in affecting the selection of

residence, in this case hotels. Value for money not only affects customers’ choice

behavior at the pre-purchase phase but also affects their intention to recommend

and return behavior at the post-purchase phase. Understanding the perceived value

as the factors which affect purchase behaviors is important to make important

progress in improving the quality of hotel performance. Because of the high costs

that are involved with investments in the hotel industry, it makes a lot of sense to

study, which product components the travelers appreciate.

The objectives of the study area to examine the key aspects visitor perceived

value. The data were collected through questionnaire. A total of 300 questionnaires

were distributed among the guests of two hotels located in Ramkhamhaeng,

Bangkok. One was a 3* hotel and the other a 4* hotel, out of which 240 were

completed (120 each hotel). The results of the research have provided a clearly

explanation to factors that determine long-term profits to hotel industry. Descriptive

statistics and analysis by difference were applied in the present study. The results

are consequently used to develop potential marketing strategies for the hotel sector.

Keywords: Perceived Value, Descriptive statistics, Hotels’ attributes, Analysis by

difference, Hotel Industry

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TABLE OF CONTENTS

Introduction 2

Table of contents 3

List of tables 5

List of figures 6

Chapter 1 Introduction 9

1-1Background and importance of the Problem………………….. 9

1-2-Importance of the research…………………………………………. 14

1-3-Purpose of the Study…………………………………………………… 16

1-4-Scope of the Study……………………………………………………… 18

1-5-Definitions of Key Terms………………………………………….... 19

1-6-Expected Benefits from the Study……………………..………. 20

Chapter 2 CONCEPTS AND RELATED LITERATURE 21

2-1-Creation of Customer Perceived Value ………………………… 22

2-2-Value for money……………………………………………………..…. 23

2-3-Customer Perceived Value ……………………………………….. 24

2-4-Hotel Industry ………………………………………………………….. 26

2-5-Research model ………………………………………………………….. 30

2-6- Hypothesis definition …………………………………………………. 30

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Chapter 3 RESEARCH METHODOLOGY 32

3-1-Research design ……………………………………………………… 32

3-2-Population and Sample …………………………………………. 33

3-3-Research Instrument……………….……………………………. 33

3-4-Measurement ……………………..………………………………… 34

3-5- Statistics analysis …………………………………………………. 35

Chapter 4 RESULTS, DISCUSSIONS AND CONCLUSION 36

4-1-Analysis section 1 ……………………………………………………… 37

4-2-Analysis section 2 …………………………………………. 43

4-3-Analysis section 3 …………………………………………. 59

4-4-Conclusion……………….…………………..………………. 73

APPENDICES ……………………………………………………………….. 75

Questionnaire ………………………………………………….. 75

BIBLIOGRAPHIES …………………………………………………………. 80

PLEDGE ……………………………………………………………………… 82

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List of Tables

1. Gender ……………………………………………………………………..…………………..…………………… 35

2. Age …………………………………………………………………………………………....………………………. 35

3. Level of education ……………………………………………….………………..…………………………… 36

4. Occupation …………………………………………………………..…………………………………………… 37

5. Income ……………………………………………………………………………………………………............ 37

6. Purpose of travel ……………………………………………….…………………………………………..…. 38

7. Nationality …………………………………………………………..……………………………………..…… 38

8. Factors in choosing hotels ………………………………………………………………………………… 39

9. Staff service quality …………………………………………………………………………………………. 41

10. Hotel facilities ………………………………………………………………………………………………. 44

11. Room facilities ………………………………………………………………………………………………… 46

12. Room and hotel quality ……………………………………………………..…………………………….. 49

13. Hotel location ………………………………………………………………….………………………………. 51

14. Safety and security …………………………………………………………………………………………. 53

15. Food quality and variety ………………………………………………………………………………… 54

16. Overall value for money ………………………………………………………………………………… 56

17. Room types ………………………………………………………………………………………………… 57

18. Room rates …………………………………………………………………………………………………… 61

19. Satisfaction on expectation ………………………………………………………………………….. 63

20. Customer loyalty ……………………………………………………..…………………………………… 66

21. Degree on recommendation ……………………………………………………………………….. 68

22. Room rates and likely to return ……………………………...…………………………………… 70

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List of figures

Fig1. ………………………………………………………………………………………………………………….. 10

Fig2. ………………………………………………………………………………………………………………….. 37

Fig3. ………………………………………………………………………………………………………………….. 38

Fig4. ………………………………………………………………………………………………………………….. 38

Fig5. ………………………………………………………………………………………………………………….. 39

Fig6. ………………………………………………………………………………………………………………….. 39

Fig7. ………………………………………………………………………………………………………………….. 40

Fig8. ………………………………………………………………………………………………………………….. 40

Fig9. ………………………………………………………………………………………………………………….. 41

Fig10. ……………………………………………………………………………………………………………….. 42

Fig11. ……………………………………………………………………………………………………………….. 42

Fig12. ……………………………………………………………………………………………………………….. 44

Fig13. ……………………………………………………………………………………………………………….. 44

Fig14. ……………………………………………………………………………………………………………….. 45

Fig15. ……………………………………………………………………………………………………………….. 46

Fig16. ……………………………………………………………………………………………………………….. 47

Fig17. ……………………………………………………………………………………………………………….. 47

Fig18. ……………………………………………………………………………………………………………….. 49

Fig19. ……………………………………………………………………………………………………………….. 49

Fig20. ……………………………………………………………………………………………………………….. 50

Fig21. ……………………………………………………………………………………………………………….. 51

Fig22. ……………………………………………………………………………………………………………….. 52

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Fig23. ……………………………………………………………………………………………………………….. 52

Fig24. ……………………………………………………………………………………………………………….. 53

Fig25. ……………………………………………………………………………………………………………….. 54

Fig26. ……………………………………………………………………………………………………………….. 54

Fig27. ……………………………………………………………………………………………………………….. 55

Fig28. ……………………………………………………………………………………………………………….. 55

Fig29. ……………………………………………………………………………………………………………….. 56

Fig30. ……………………………………………………………………………………………………………….. 57

Fig31. ……………………………………………………………………………………………………………….. 57

Fig32. ……………………………………………………………………………………………………………….. 57

Fig33. ……………………………………………………………………………………………………………….. 58

Fig34. ……………………………………………………………………………………………………………….. 58

Fig35. ……………………………………………………………………………………………………………….. 59

Fig36. ……………………………………………………………………………………………………………….. 60

Fig37. ……………………………………………………………………………………………………………….. 60

Fig38. ……………………………………………………………………………………………………………….. 61

Fig39. ……………………………………………………………………………………………………………….. 61

Fig40. ……………………………………………………………………………………………………………….. 62

Fig41. ……………………………………………………………………………………………………………….. 62

Fig42. ……………………………………………………………………………………………………………….. 63

Fig43. ……………………………………………………………………………………………………………….. 64

Fig44. ……………………………………………………………………………………………………………….. 64

Fig45. ……………………………………………………………………………………………………………….. 65

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Fig46. ……………………………………………………………………………………………………………….. 65

Fig47. ……………………………………………………………………………………………………………….. 66

Fig48. ……………………………………………………………………………………………………………….. 66

Fig49. ……………………………………………………………………………………………………………….. 67

Fig50. ……………………………………………………………………………………………………………….. 67

Fig51. ……………………………………………………………………………………………………………….. 68

Fig52. ……………………………………………………………………………………………………………….. 69

Fig53. ……………………………………………………………………………………………………………….. 69

Fig54. ……………………………………………………………………………………………………………….. 70

Fig55. ……………………………………………………………………………………………………………….. 70

Fig56. ……………………………………………………………………………………………………………….. 71

Fig57. ……………………………………………………………………………………………………………….. 71

Fig58. ……………………………………………………………………………………………………………….. 72

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CHAPTER 1

Introduction

Background and importance of the problem

The concept of perceived value has recently gained its importance and wide

popularity in the business environment because of its effect on consumer behavior and

providing strategic implications for the success of companies. It is recommended that

products offering value for money not only influence customers choice behavior at the

pre purchase phase but also affect their satisfaction, intention to recommend and

return behavior at the post purchase phase (Dodds, Monroe and Grewal 1991;

Parasuraman and Grewal 2000; Petrick 2001). Hence, perceived value is claimed to be a

major tool to help the service provider to gain a better competitive position in the

market (Woodruff 1997; Parasuraman 1997; Huber, Herrmann and Morgan 2001;

Naumann 1995; Stahl, Barnes, Gardial, Parr and Woodruff 1999).

Customer perceived value is the worth that a product or service has in the mind of the

consumer. The consumer's perceived value of a good or service affects the price that he or

she is willing to pay for it. For the most part, consumers are unaware of the true cost of

production for the products they buy. Instead, they simply have an internal feeling for how

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much certain products are worth to them. Thus, in order to obtain a higher price for their

products, producers may pursue marketing strategies to create a higher perceived value for

their products.

Customers will buy from the firm that they see as offering the highest perceived

value. Customer perceived value (CPV) is the difference between the prospective

customer’s evaluation of all the benefits and all the costs of an offering and the perceived

alternatives.

Perceived Value = Total Perceived Benefits – Total Perceived Costs

Total customer value is the perceived

monetary value of the bundle or economic,

functional, and psychological benefits

customers expect from a given market offering.

Total customer cost is the bundle of costs

customers expect to incur in evaluating,

obtaining, using, and disposing of the given

marketing offering.

Figure 1 Customer Perceived Value

http://www.marketing91.com/customer-perceived-value/

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Product benefit

Product benefit accounts for the attributes of the product, which might entice a

potential consumer to decide to choose this product over others.

In case of Red bull, it will be the taste of the drink which has been especially designed to

suit the tastes of westerners.

Services benefit

Services benefit accounts for the attributes of the services offered along with the

product. Any kind of help, instructions or assistance offered with the product would fall

under this. In case of Red bull, the nutritional content, ingredients, customer helpline

numbers etc. will make up this benefit.

Personnel benefits

Personal benefits include the customer’s perception of the utility value of the personnel

in the system of the product to him/her. Better, knowledgeable and well trained personnel

assisting a customer would be a great help. In case of red bull, distribution of free red bull

drinks during events by the ‘red bull girls’, will entice their target customer to buy the

product and in a way add value to the product in terms of utility and satisfaction.

12

Image benefit

Image benefit includes the image that a brand/product holds in the market. Reputation

and image together form a very crucial part of a customer’s transactions with a brand

depending upon circumstances he/she has experienced during his buying process. In case of

Red bull, it dominates the energy drink market with its image among the customers. People

associate red bull with something that gives them an instant burst of energy (the tagline –

‘red bull gives you wings’ helps too)

Monetary cost

Monetary cost encompasses the literal cost incurred by a customer in order to obtain

the product. The cost (in terms of money) that a customer incurs in travelling to the nearest

store that sells red bull and the cost per can multiplied by the number of cans purchased is

the total monetary cost in the case of red bull.

Time cost

Time cost is the total amount of time that has been invested by a customer during his

buying process. The time taken for the customer to reach a store and to buy the can of red

bull is the time cost here.

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Energy cost

Energy cost refers to the energy spent by the buyer during the entire process of buying

the product. It is a little complicated to calculate this in definable terms for red bull as

energy can’t be measured in anything except the scientific denotation of ‘work done’.

Psychological cost

Psychological cost is the total mental effort made during acquiring and using the

product from the moment it was bought to the moment it was consumed. It is also very

difficult to measure this as it would take lots of data to biologically decide what goes where.

Value

Value in marketing, also known as customer-perceived value, is the difference between a

prospective customer's evaluation of the benefits and costs of one product when compared

with others. Value may also be expressed as a straightforward relationship between perceived

benefits and perceived costs: Value = Benefits / Cost.

Value in marketing can be defined by both qualitative and quantitative measures. On the

qualitative side, value is the perceived gain composed of an individual's emotional, mental, and

physical condition plus various social, economic, cultural, and environmental factors. On the

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Product_%28business%29

http://en.wikipedia.org/wiki/Mathematical_relationship

14

quantitative side, value is the actual gain measured in terms of financial numbers, percentages,

and dollars.

Importance of the research

A Customer sees value in a product or service from ‘their’ perspective not from the

supplier’s point of view. The perceived ‘value’ by a customer can be tangible, non-tangible, and

psychological or even be seen from a social perspective. Though ‘perception of value’ is the

benefit derived from the product, service and associated experience from a customer’s

perspective. Delivering perceived value is a key to success; it can make the difference between

a referring customer and a detracting customer. To be successful we need to tap into the basis

of that perception and provide the appropriate level of support that delivers an enhanced

perception.

To reveal the company's strengths and weaknesses compared to other competitors, it is

important to conduct a customer value analysis. This is the collection and evaluation of data

associated with customer needs and market trends. The steps are as follows:

Identify the major attributes and benefits, such as ease of use or improved social

standing, that customers value for choosing a product. It is important to identify and

define benefits as opposed to features.

https://www.boundless.com/definition/attribute/

15

Assess the quantitative importance of the different attributes and benefits. In other

words, attempt to assign an actual price differentiation for products with value-adding

benefits.

Assess the company's and competitors' performance on each attribute and benefit. It is

important to be honest with yourself about who your actual closest competitors are and

how they price their products.

Examine how customers in the particular segment rated the company against major

competitors on each attribute.

Monitor customer perceived value over time.

One way for an organization to increase its perceived value added is to improve its

quality/price ratio. When an organization delivers high quality but at a high price, the perceived

value may be low. When it delivers high quality at a low price, the perceived value may be high.

The key to delivering high perceived value is for a firm to make consumers believe that its

products will help them solve a problem, offer a solution, produce results, and make them

happy.

For a firm to deliver value to its customers, they must consider what is known as the "total

market offering." An offering in marketing is the total offer to your customers. An offering is

more than the product itself and includes elements that represent additional value to your

customers, such as availability, convenient delivery, technical support or quality of service. A

https://www.boundless.com/definition/segments/

16

strong offering differentiates your products from competitors and creates value by meeting

customers’ wider needs better than other options.

Guest’s perception of service is because of its nature difficult to assess, and it is necessary to

rely on guest’s satisfaction related to their expectations to communicate what their perception

are of the service. When measuring guest’s opinions through surveys, guests perceptions

become a vital part of guest satisfaction within a hospitality environment as it is the actual

judgment of the service experiences; which can be positive or negative. Some research argues

that guest perception should be defined as a comparison to excellence in service by the guest

and that these perceptions only exist post-consumption. This however seems rather unrealistic

within a hospitality environment where guest’s perceptions toward the service they are

receiving surely change continuously. Most hospitality professionals agree with this notion and

understand that it is probable that perceptions are being made during the entire service

delivery process, and then again after the service delivery.

Purpose of the study

The basic objective of the study is to focus on some hotel attributes and their weightings

that guests care about the most. The latest researches show that the below mentioned

17

attributes have the highest ranking among those which guests appreciate: (Ranked the most

important (1) to the least important (14))

1) Convenient location 2) Service quality 3) Reputation 4) Friendliness of staff 5) Price 6) Room cleanliness 7) Value for Money 8) Hotel cleanliness 9) Security 10) Room standard 11) Swimming pool 12) Comfort of bed 13) Parking facilities 14) Room size

The purpose of this study can be summarized as:

1. To find out which factor is the most important in formulating the customer perception

towards hotel in general.

2. Evaluate customer’s perception towards various tangible and intangible parameters with

respect to the selected hotels.

3. To find the role of customer’s demographic information and its influence on various scales of

service quality perception.

18

4. To explore the role of customer perceived value for retention and loyalty among the

selected hotels.

5. Reveal the hotel's strengths and weaknesses.

Scope of the study

Conducting an effective customer value analysis can lead a company to creating an accurate

value proposition. A value proposition is a promise of value to be delivered and a belief from

the customer that value will be experienced. A value proposition can apply to an entire

organization, or parts, or customer accounts, or products or services.

Developing a value proposition is based on a review and analysis of the benefits, costs and

value that an organization can deliver to its customers, prospective customers, and other

constituent groups within and outside the organization. Organizations can use value

propositions to position value to a range of constituents such as:

Customers: to explain why a customer should buy from a supplier.

Partners: to persuade them to forge a strategic alliance or joint venture.

Employees: to "sell" the company when recruiting new people, or for retaining and

motivating existing employees.

https://www.boundless.com/definition/lead/

19

Suppliers: to explain why a supplier should want to be a supplier to an organization or

customer.

Definitions of Key Terms

Customer perceived value

The anticipated benefit from a consumer's perspective of a product or service. The

customer perceived value stems from tangible, psychological and social advantages, and since it

affects demand for a product, it needs to be taken into account when setting prices.

Descriptive statistics

Descriptive statistics is the discipline of quantitatively describing the main features of a

collection of information, or the quantitative description itself.

Quantitative Data

Quantitative data are measures of values or counts and are expressed as

numbers.Quantitative data are data about numeric variables (e.g. how many; how much; or

how often).

Qualitative Data

Qualitative data are measures of 'types' and may be represented by a name, symbol, or

a number code.Qualitative data are data about categorical variables (e.g. what type).

http://www.businessdictionary.com/definition/benefit.html

http://www.businessdictionary.com/definition/consumer.html

http://www.businessdictionary.com/definition/perspective.html

http://www.businessdictionary.com/definition/product.html

http://www.businessdictionary.com/definition/final-good-service.html

http://www.businessdictionary.com/definition/tangible.html

http://www.businessdictionary.com/definition/psychological.html

http://www.businessdictionary.com/definition/advantage.html

http://www.businessdictionary.com/definition/demand.html

http://www.businessdictionary.com/definition/need.html

http://www.businessdictionary.com/definition/account.html

http://www.businessdictionary.com/definition/price.html

http://www.abs.gov.au/websitedbs/a3121120.nsf/home/statistical+language+-+statistical+language+glossary#Numeric%20variable

http://www.abs.gov.au/websitedbs/a3121120.nsf/home/statistical+language+-+statistical+language+glossary#Categorical%20variable

20

Expected benefit from the study

Knowledge of customer perception of value should influence the leaders, the strategy, the

products and services and the key functions in an organization. This has many benefits for the

organization, including sustaining competitive advantage, assisting in partnerships, improving

customer acquisition, promoting advocacy and assisting in achieving sustainable performance.

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CHAPTER 2

CONCEPTS AND RELATED LITERATURE

There are different types of value an item can have. Two specific values important to

marketing are intrinsic value and extrinsic value, or perceived value. “Intrinsic value is what

value you may personally place on something” (Pervez, 2007, p. 17). If your customer places the

same value on a product or service, you may reasonably expect to sell that product or service at

the price you think it is worth. If a company arbitrarily decides a widget is worth $123.95 and a

customer agrees with that price, then there is a reasonable possibility to consummate a sale.

However, what if the customer thinks the widget is worth only $95.00? What happens then?

When a product’s intrinsic value determined by the company does not match the intrinsic

value determined by the customer, the company must change the company’s intrinsic value

into a customer’s perceived value. Kotler and Keller (2009) argued that perceived value reflects

the price that is “reasonable in relationship to value” (p. 582). “The higher the perceived value,

the higher is expected consumer interest” (Kotler & Keller, 2009, p. 582). Basically, the

company is challenged to establish a price that the customer perceives to be appropriate for

the item being offered for sale. Pervez (2007) reminded his readers that “the world pays for

value. The value it pays for…is perceived value, not intrinsic value” (p. 17).

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One of the most fundamental principles of marketing is about converting the intrinsic

value of a product or service into perceived value. “This creates a compelling reason to buy”

(Pervez, 2007, p. 17). Those marketers who are able to create effective marketing alchemy will

reap exceptional profits from their labors.

A primary challenge facing a marketer, when marketing a product or service, is to establish

perceived value in the mind of consumers. Usually the effort to produce and deliver a product

to market does not have any direct relationship on a product’s price. If the company is

successful at meeting or exceeding a consumer’s expectation of value, that company has a high

probability of selling its product for the desired perceived value.

The creation of Customer Perceived Value

Marketers usually create value increasing the value of the customer offering by some

combination of raising functional or emotional benefits and/or reducing one or more various

types of costs.

Even if the same product is being offered by two different companies, if one of the

companies provides better customer services, post sales service, training, on-time delivery and

maintenance, the perceived value of the same product tends to increase because of the

reliability of the selling company and their added values when selling the product.

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Moreover, the more perceived value is also given to the company with a better

corporate image as it indicates that the company is reliable and trustworthy, as it is one of the

key factors in deciding when purchasing a product.

Customer Perceived Value is a useful framework that applies to many situations and

yields rich insights. Kotler and Keller (2003) also stated that the seller must assess the total

customer value and total customer cost associated with each competitor’s offer in order to

know how his or her offer rates in the buyer’s mind.

Then a seller who is at a customer perceived value disadvantage has two options which

are either to increase the value or to decrease total customer cost. If they increase the value,

this calls for strengthening the offer’s products or services, or if they reduce the price, this calls

for reducing the buyer’s costs by reducing the price, simplifying the ordering or delivery

processes.

Value for money

Concepts such as value and value for money are now essential parts of strategic thinking

(Woodruff 1997; Parasuraman 1997; Huber, Herrmann, and Morgan 2001; Naumann 1995;

Stahl et al. 1999). The growing realization of the importance of perceived value stems from its

dual function. Not only is it influential at the pre-purchase phase, but it also affects customer

satisfaction, intention to recommend, and return behavior at the post-purchase phase (Dodds,

24

Monroe, and Grewal 1991; Parasuraman and Grewal 2000; Petrick 2001). However, despite its

strategic importance for marketing, perceived value has not received sufficient attention.

Some explanation for this may lie in the difficulties associated with its conceptualization.

With growing academic interest to the hotel industry, an increasing number of studies has been

increasingly addressing to customer perceived value and hotel selection in the hospitality and

tourism literature. A review of the marketing literature suggests that customer perceived value

can be a vital determinant in affecting the selection of tourism consumption experience for

tourists (Murray and Howat, 2002; Petrick, 2002).

Customer perceived value

Examining customer perceived value can help marketers improve their understanding of

why people make the consumption decisions by evaluating perceived benefits from the service

or products. Sanchez, Callarisa, Rodrıguez and Moliner (2006) attempts to elucidate the

relationship between perceived value as an antecedent variable and customers’ purchase

experience. Their study has suggested that customer perceived value would include numerous

major dimensions such as functional, emotional, social, epistemic and conditional perceived

value.

Functional value is a perceived utility of the attributes of the products or services.

25

Emotional value is the feelings or the affective states obtained by the experience of

consumption.

Social value is the acceptability or utility at the level of the individuals' relationship with

his social environment.

Epistemic value is the capacity of the product or service to surprise, arouse curiosity or

satisfy the desire of knowledge.

Conditional value is the perceived utility acquired by an alternative as a result of the

specific situation or set of circumstances facing the choice maker.

Understanding customer perceived value as attendant factors in affecting purchase

behaviors is significant to make substantial progress in improving the quality of hotel

performance. Thus, the research findings could provide insights to successful marketing and

managerial implications by examining dimensions of customer perceived value significantly

influence customer loyalty in the hotel industry.

In the hospitality industry, several studies have examined hotel attributes that guests may

find important when evaluating the performed service quality. Literature review suggests that

cleanliness (Atkinson 1988; Knutson 1988; Gundersen, Heide and Olsson 1996), security and

safety (Atkinson, 1988; Knutson, 1988; Gundersen et al. 1996), employees’ empathy and

competence (Atkinson 1988; Knutson 1988; Barsky and Labagh 1992; Gundersen, Heide and

Olsson 1996; Choi and Chu 2001; Markovi ´c 2004), convenient location (Knutson 1988; Barsky

26

and Labagh 1992), value for money (Atkinson 1988; Gundersen, Heide and Olsson 1996; Choi

and Chu 2001) and physical facilities (Choi and Chu 2001; Markovi ´c 2004) are attributes that

hotel guests perceive as being important.

Very often managers conduct customer value analysis to reveal the company's strengths

and weaknesses compare to other competitors. The steps of which are as followed.

To identify the major attributes and benefits that customers value for choosing a

product and vendor.

Assessment of the quantitative importance of the different attributes and benefits.

Assessment of the company's and competitors' performance on each attribute and

benefits.

Examining how customer in the particular segment rated company against major

competitor on each attribute.

Monitor customer perceived value over time.

Hotel industry

The hotel industry is a sector of business that revolves around providing

accommodations for travelers. Success in this industry relies on catering to the needs of

the targeted clientele, creating a desirable atmosphere, and providing a wide variety of

27

services and amenities. Managing hotels has grown from its modest roots in providing

the bare essentials of lodging into a large, multi-faceted, and diverse industry.

The foundation of the hotel industry is, of course, the business of providing lodging.

Travelers depend on hotels to supply a secure, pleasant place for a temporary stay.

Whether the guests are business people on the road for work, families on vacation, or

groups of tourists, they all need comfortable accommodations, and they hotel industry

is where they turn to find them.

Hotel stars explanation

Hotel star ratings are systems that rank hotels according to quality. Star rating systems

are intended to serve as guidelines for guests who are making hotel reservations. While

star ratings can be helpful when booking hotels rooms, there is no standardized star

rating system. In Europe, hotels are usually ranked on a scale from one to four stars,

with four stars being the highest rating possible. In the United States, hotels are

generally ranked on a scale from one to five stars, sometimes using half star increments.

Star ratings in Europe are determined by local government agencies or independent

organizations, and they vary greatly from country to country. In fact, star ratings in

Europe can also vary from city to city within the same country, and even between hotels

in the same city. In other words, there is no uniform measure that determines a hotel’s

star rating. Each hotel is rated based on details that often don’t matter to consumers,

such as the amount of tax a hotel pays annually.

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Similarly, in the United States, star ratings are conferred upon hotels by several

organizations. National consumer travel organizations and guidebooks assign star

ratings to hotels, but each one uses its own set of criteria to determine the rating.

Additionally, travel websites, consolidators and reservation services often rate hotels as

well. Most U.S. websites and organizations that rate hotels provide an explanation of

their rating system so that consumers can decode the rating. The bottom line, however,

is that a hotel may be given different ratings from different organizations, so it’s

important to inquire about what the rating means.

Even though star ratings can seem arbitrary, they can still be beneficial and can help to

inform you about a hotel. For instance, a four or five star hotel is always going to be

more luxurious than a one or two star hotel. And there are some basic inferences you

can make about American star ratings. A one star hotel is going to be an economy motel

and a two star hotel will be a higher end motel or budget hotel. Even one and two star

hotels will usually have all of the amenities you require for a night’s sleep.

However, if you’re seeking higher end amenities such as room service, Internet access,

movies, plush linens, fitness center access and the like, you’ll probably want to look at

hotels that are rated three stars and above. Three star hotels are moderately priced

hotels that are comfortable and absolutely adequate places to stay, but may lack some

of the luxury of four star hotels. A five star rating is reserved exclusively for the

29

country’s highest end chain and boutique hotels. Expect to pay a premium for five star

luxuries.

5-Star Rating: A luxurious hotel, offering the highest degree of personal service.

Elegance and style abound, and rooms are equipped with quality linens, VCR, CD stereo,

jacuzzi tub and in-room video. There are multiple restaurants on site with extensive,

gourmet menus, and room-service is also available 24-7. A fitness center, valet parking

and concierge service round out the experience.

4-Star Rating: Formal, large hotels, with top-notch service. There will usually be other

hotels of the same caliber clustered nearby, as well as shopping, dining and

entertainment. Above-average service, beautifully furnished rooms, restaurants, room

service, valet parking, fitness center and a concierge are some amenities to expect.

3-Star Rating: Usually located near a major expressway, business center and/or

shopping area, these hotels offer nice, spacious rooms and decorative lobbies. On-site

restaurants may be average in size but will offer breakfast, lunch and dinner. Valet and

room service, a small fitness center and a pool are often available.

2-Star Rating: These hotels are generally part of a chain that offers consistent quality

and limited amenities. They are small or medium in size and rooms will have a phone

and TV. While you will not have the convenience of room service, there should be a

small restaurant on site.

30

1-Star Rating: Expect a small hotel managed and operated by the owner. The

atmosphere will be more personal and the accommodations basic. Restaurant service

should be within walking distance, as well as nearby public transportation, major

intersections and entertainment that is reasonable in price.

Research Model

The research model studied in this research is based on the customer perceived value. The

research model consists of Independent Variables and Dependent Variables.

Independent variables Dependent variables

Hypothesis definition

Five hypotheses for this research are defined as follow:

H1: The differences in sex, nationality and hotel’s star affect the differences in CPV on

overall services in hotels in Bangkok.

H2: The differences in sex, nationality and hotel’s star affect the differences in CPV on staff

Sex

Hotel stars

Nationality Staff service quality

Safety and security

Customer loyalty

Degree of recommendation

Overall services in hotels

31

service quality.


safety and security.


customer loyalty.


degree of recommendation.

32

CHAPTER 3

Research Methodology

This chapter discusses the research methodology including explanation about

survey, population and sample, research instrument, statistics applied in analyzing the data.

Research design

This research is a quantitative research that will be done by the survey of

customer perceived value on hotel tangible and intangible aspects of Bangkok Interplace,

Bangkok, Thailand.

In order to obtain data for the calculation of explicit and implicit importance, as well as the

level of customer perceived value, this study used questionnaires as a tool to get responses

from the subjects. The questionnaires were sent to their rooms upon arrivals, to rate the

performance of the proposed quality attributes after their make use of the services in hotel,

and also rating, in multiple items.

33

Population and sample

It was estimated that these two hotels each had about 300 persons

of monthly customers. Therefore, this amount of customer was considered as population of the

research. Eventually only 240 questionnaires were randomly collected as sample of this

research.

Research instrument

This research used the questionnaires as an instrument in studying the

customers’ perceived value. These questionnaires comprised three parts of questions:

Part 1: question on demographic characteristics of samples. Demographic data included

gender, age, level of education, occupation, income, purpose of visit and nationality.

Part 2: questions on customers’ perceived value scale. Perceived acquisition value was

measured using nine Likert statements modified from the scale presented by Grewal et al.

(1998). Respondents were asked to rate the attributes on a 5-point scale marked.

Part 3: questions on accommodation profile and customer loyalty.

34

Measurement

Level of customers’ perceived value had been measured by rating scale of 1 – 5.

1 Excellent value 2 Good value 3 Average value 4 Poor Value 5 Very poor value

Whereas, average of rating score had given meaning as following:

Averages mean score between 5.00 – 4.51 Excellent

Averages mean score between 4.50 – 3.40 Good

Averages mean score between 3.39 – 2.60 Fair

Averages mean score between 2.59 - 1.80 Poor

Averages mean score between 1.79 – 1.00 very poor

If the average value is between 4.51 and above, it means the CPV is high (Excellent).If it is

between 3.4 to 4.50, it means "good". If the value is between 2.60 to 3.39 the CPV is "average"

and if it is between 1.80 to 2.59, it means the perceived Value is "poor" and if less then 1.79 it

means the level of CPV is "very poor".

35

Statistics analysis

There are three sections of data analysis.

Section 1: Descriptive statistics, percents, is used to describe demographic characteristics of the

sample.

Section 2: Analysis by difference is applied to analyze the collected data in this section.

Question 9 to question 16 will be analyzed by difference over three variables (gender,

nationality and hotel’s stars).

Section 3: Descriptive analysis is used to describe the accommodation profile of the sample and

customer loyalty and post-purchase based on their recent experience at these hotels.

36

CHAPTER 4

Results, discussions and conclusion

Explains and discusses about the analysis of the data. In this chapter, detailed information

acquired from the questionnaire survey is presented and discussed in order to answer the

research objectives. This chapter consists of 3 sections as follows:

Section 1: Analysis of demographic characteristics such as sex, age, level of education,

occupation, income, nationality and purpose of travel and important factors in choosing these

hotels by using descriptive statistic.

Section 2: Analysis of level of CPV on mode of staff service quality, hotel facilities, room

facilities, room and hotel quality, location, safety and security, food quality and variety and

overall value for money.

Section 3: Analysis of accommodation profile of the sample, degree of recommendation and

the relationship between the room rates and customer loyalty.

37

Section 1: Analysis of demographic characteristics of the sample.

Percentage of demographic characteristics of sample

1. Gender

Gender Male Female

4* Hotel 60% 40%

3* Hotel 58% 42%

2. Age

Age Group 18-27 28-37 38-47 48-57 Over 57

4* Hotel 3% 13% 34% 44% 6%

3* Hotel 5% 20% 29% 32% 14%

0%

10%

20%

30%

40%

50%

60%

70%

Male Female

%ag

e

Gender

Figure 2. Male and femal distribution of respondents

4* Hotel

3* Hotel

Table1

Table2

38

3. Level of education

0%

10%

20%

30%

40%

50%

18-27 28-37 38-47 48-57 Over 57

%ag

e

Age groups

Figure 3. Percentage of respondents of different age groups

4* Hotel

3* Hotel

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Uneducated High School Technicaleducation

Associatedegree

Bachelor'sDegree

Graduatedegree

Figure 4. Level of education

4* Hotel

3* Hotel

Uneducated High School Technical education

Associate degree

Bachelor's Degree

Graduate degree

4* Hotel 13% 38% 29% 11% 9% 0%

3* Hotel 14% 27% 31% 23% 5% 0%

Table 3

39

4. Occupation

Employed Unemployed

Government officer

Self Employed

Retired Student Other

4* Hotel 20% 31% 32% 9% 8% 0% 0%

3* Hotel 26% 27% 26% 18% 3% 0% 0%

5. Income

Less than $ 20000

20000-35000

35001-50000

50001-75000

More than $ 75001

3* Hotel 6% 12% 16% 28% 39%

4* Hotel 13% 26% 28% 18% 16%

0%5%

10%15%20%25%30%35%

Figure 5. Occupation

4* Hotel

3* Hotel

0%

10%

20%

30%

40%

50%

Figure 6. Income

3* Hotel

4* Hotel

Table 4

Table 5

40

6. Purpose of travel

Business Leisure Leisure and business Join a convention or visit relatives

3* Hotel 19% 28% 35% 18%

4* Hotel 14% 46% 27% 13%

7. Nationality

Thai Non-Thai

3* Hotel 33% 68%

4* Hotel 18% 82%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Business Liesure Liesure andbusiness

Join a conventionor visit relatives

Figure 7. Purpose of travel

3* Hotel

4* Hotel

0%

20%

40%

60%

80%

100%

Thai Non-Thai

Figure 8. Nationality

3* Hotel

4* Hotel

Table 6

Table 7

41

8. Importance of factors in choosing hotels to stay in

Table8. Importance of factors in decision making to stay at a hotel

All responders Male Female Thai

Non-Thai 3 Star 4 Star

n:240 n:141 n:99 n:61 n:179 n:120 n:120

8.1-Importance of location close to transport links 3.07 3.02 3.15 2.98 3.11 3.74 2.41 8.2-Importance of location next to city facilities 2.67 2.8 2.47 2.49 2.73 2.73 2.6

8.3-Importance of price 3.18 3.26 3.06 3.31 3.13 3.21 3.15 8.4-Importance of friends' recommendation 3.07 3.08 3.07 3.09 3.07 3.06 3.09 8.5-Importance of additional available facilities 3.18 3.31 3.01 3.19 3.18 3.1 3.27

8.6-Importance of past experiences 3.36 3.39 3.33 3.52 3.31 3.21 3.51

Male Female

8.1-Importance of locationclose to transport links

3.02 3.15

8.2-Importance of locationnext to city facilities

2.8 2.47

8.3-Importance of price 3.26 3.06

8.4-Importance of friends'recommendation

3.08 3.07

8.5-Importance of additionalavailable facilities

3.31 3.01

8.6-Importance of pastexperiences

3.39 3.33

00.5

11.5

22.5

33.5

4

Figure 9. Importance of factors in choosing hotels to stay Between Males and females

42

Thai Non-Thai

8.1-Importance of location closeto transport links

2.98 3.11

8.2-Importance of location nextto city facilities

2.49 2.73



3.09 3.07


3.19 3.18


3.52 3.31

00.5

11.5

22.5

33.5

4

Figure 10. Importance of factors in choosing hotels to stay Between Thais and Non-Thais

3 Star 4 Star

8.1-Importance of location closeto transport links

3.74 2.41

8.2-Importance of location nextto city facilities

2.73 2.6



3.06 3.09


3.1 3.27


3.21 3.51

00.5

11.5

22.5

33.5

4

Figure 11.Importance of factors in choosing a 3-star or 4-star hotel

43

Table 8 shows the importance of factors in decision making to stay at a hotel. It can be

understood that past experiences play a very important role in choosing a hotel to stay in,

both for males and females. On the other hand being close to city facilities has the least

importance. By looking at figure 11 we can see that being close to transport links is very

important in choosing a 3* hotel which is not true about 4* hotels.

Section 2: Analysis of level of CPV on mode of:

9. Staff service quality

Table 9. CPV for Staff Service quality



n:240 n:141 n:99 n:61 n:179 n:120 n:120

9.1-Efficient services 2.78 2.8 2.76 2.63 2.83 2.68 2.89

9.2-Requests are understood by staff 2.94 2.93 2.95 2.93 2.94 2.78 3.1

9.3-staff helpfulness 3.05 3.06 3.05 3.34 2.96 2.91 3.2

9.4-Staff are polite and friendly 3.02 3.07 2.94 3.18 2.96 2.81 3.2

9.5-staff neat appearance 3.07 3.19 2.89 2.98 3.1 3.01 3.1

9.6-Multi-lingual skills 2.92 3.05 2.72 2.98 2.89 2.8 3.01

9.7-Reception service 3.41 3.56 3.2 3.37 3.43 3.36 3.4

44

Male Female

9.1-Efficient services 2.8 2.76

9.2-Requests are understoodby staff

2.93 2.95

9.3-staff helpfulness 3.06 3.05

9.4-Staff are polite andfriendly

3.07 2.94

9.5-staff neat appearance 3.19 2.89

9.6-Multi-lingual skills 3.05 2.72

9.7-Reception service 3.56 3.2

00.5

11.5

22.5

33.5

4

Figure 12. CPV of Staff Service quality , Males and females

Thai Non-Thai



2.93 2.94



3.18 2.96




00.5

11.5

22.5

33.5

4

Figure 13. CPV of Staff Service quality , Thais and Non-Thais

45

Table 9 shows CPV of Staff Service quality. By looking at the average point it can

be seen that all scores but reception service are considered at the fair level. Perceived value for

reception service is higher between males. Non-Thais receive more value for reception service

than Thai guests. It can be seen that based on staff service quality in 4* hotel more values are

perceived than 3* hotel.

3 Star 4 Star



2.78 3.1



2.81 3.2




00.5

11.5

22.5

33.5

4

Figure 14. CPV of Staff Service quality , 3* and 4* Hotel

46

10. Hotel facilities Table 10. CPV for Hotel facilities


Non-Thai 3 Star

4 Star

n:240 n:141 n:99 n:61 n:179 n:120 n:120

10.1-swimming pool 3.08 3.12 3.03 3.14 3.06 3 3.16

10.2-Fitness center 3.21 3.15 3.3 3.32 3.17 3.13 3.3

10.3-Spa and massage 3.19 3.26 3.08 3.26 3.16 3.1 3.28

10.4-Wifi internet 3.52 3.68 3.29 3.67 3.47 3.36 3.68

10.5-Car park 2.77 2.76 2.77 2.73 2.78 2.76 2.77

10.6-Tourist Information center 2.85 2.8 2.92 2.83 2.86 2.78 2.92

10.7- Facilities for disabled 3 3.04 2.93 2.98 3 2.9 3.09

10.8-Bar 3.1 3.14 3.05 2.83 3.2 3.06 3.15

10.9-Restaurant 3.21 3.38 2.96 2.96 3.29 3.37 3.05

10.10-Credit Card accept 3.16 3.02 3.73 3.26 3.13 3.18 3.15

10.11-Laundary 3.1 3.07 3.13 3.37 3 3.07 3.12

10.12-Smoking area 3.02 2.94 3.15 3.08 3 3 3.05

10.13-Elavator 2.92 2.99 2.83 3.14 2.85 2.88 2.97

0

2

4

Male Female

Figure 15. CPV of hotel facilities, Males and females

10.1-swimming pool 10.2-Fitness center

10.3-Spa and massage 10.4-Wifi internet

10.5-Car park 10.6-Tourist Information center

10.7- Facilities for disabled 10.8-Bar

10.9-Restaurant 10.10-Credit Card accept

10.11-Laundary 10.12-Smoking area

10.13-Elavator

47

0

1

2

3

4

Thai Non-Thai

Figure 16. CPV of hotel facilities, Thais and Non-Thais







10.13-Elavator

0

1

2

3

4

3 Star 4 Star

Figure 17. CPV of Hotel facilities, 3-star and 4-star hotel







10.13-Elavator

48

Table 10 shows CPV of Hotel facilities. By looking at the average point it can be seen that

all scores except for Wifi internet are at the fair level. CPV for wifi internet is at the good value.

Males received more value of wifi internet than females.

There is a difference in Perceived value for restaurant and laundry between Thais and

Non-Thais. CPV for restaurant is higher for Non-Thais. however; Laundry presented more values

for Thais. The data reveals that based on almost all hotel facilities specially fitness, spa and

massage, wifi internet, tourist information 4* hotel presents more value than 3* hotel.

11. Room facilities

Table 11. CPV for Room facilities



n:240 n:141 n:99 n:61 n:179 n:120 n:120

11.1-Air conditioning 2.96 3.09 2.77 2.95 2.96 2.94 2.98

11.2-TV 3.04 3.11 2.93 2.98 3.06 2.96 3.11

11.3-Minibar 2.97 3 2.92 2.86 3 2.82 3.11

11.4-Ref 3.26 3.29 3.22 3.36 3.23 3.12 3.4

11.5-Safety box 3.27 3.3 3.23 3.36 3.24 3.16 3.38

11.6-room's wifi internet 3.22 3.33 3.08 3.34 3.18 3.2 3.25

11.7-Phone 3.17 3.24 3.08 3.18 3.17 3.09 3.26

11.8-Room services 3.16 3.16 3.16 3.31 3.11 3.08 3.24

49

Male Female

11.1-Air conditioning 3.09 2.77

11.2-TV 3.11 2.93

11.3-Minibar 3 2.92

11.4-Ref 3.29 3.22

11.5-Safety box 3.3 3.23

11.6-room's wifi internet 3.33 3.08

11.7-Phone 3.24 3.08

11.8-Room services 3.16 3.16

0

0.5

1

1.5

2

2.5

3

3.5

Figure 18. CPV for Room facilities. Males & females

Thai Non-Thai


11.2-TV 2.98 3.06

11.3-Minibar 2.86 3

11.4-Ref 3.36 3.23

11.5-Safety box 3.36 3.24


11.7-Phone 3.18 3.17


2.62.72.82.9

33.13.23.33.4

Figure 19. CPV for Room facilities.Thais & Non-Thais

50

Table 11 shows CPV of Room facilities. Analysis of data shows that CPV based on safety

box has the highest rank between the sample group. Males overall perceived more value than

females over the room facilities and it can be seen that all room facilities in 4* hotel creates

more value than 3* hotel. Perceived value of Mini-bar is at fair level which creates more value

for Non-Thais than Thais.

3 Star 4 Star


11.2-TV 2.96 3.11

11.3-Minibar 2.82 3.11

11.4-Ref 3.12 3.4

11.5-Safety box 3.16 3.38


11.7-Phone 3.09 3.26


00.5

11.5

22.5

33.5

4

Figure 20.CPV for Room facilities. 3-star & 4-star hotel

51

12. Room and hotel quality level

Table 12. CPV for Room and hotel quality



n:240 n:141 n:99 n:61 n:179 n:120 n:120

12.1-Room size 3 3.04 2.93 3.09 2.96 2.95 3.05

12.2-Hotel and room cleanliness 3.28 3.37 3.15 3.37 3.25 3.18 3.38

12.3-Bathroom cleanliness and facilities 3.06 3.11 3 3.13 3.04 2.96 3.16

12.4-Room comfort 3.28 3.37 3.15 3.52 3.2 3.23 3.33

12.5-Bed comfort 3.3 3.21 3.42 3.55 3.21 3.2 3.39

Male Female

12.1-Room size 3.04 2.93

12.2-Hotel and room cleanliness 3.37 3.15

12.3-Bathroom cleanliness andfacilities

3.11 3

12.4-Room comfort 3.37 3.15

12.5-Bed comfort 3.21 3.42

2.62.72.82.9

33.13.23.33.43.5

Figure 21. CPV for Room & Hotel quality ,Males & females

52

Thai Non-Thai

12.1-Room size 3.09 2.96



3.13 3.04


12.5-Bed comfort 3.55 3.21

2.62.72.82.9

33.13.23.33.43.53.6

Figure 22. CPV for Room & Hotel quality ,Thais and Non-Thais

3 Star 4 Star

12.1-Room size 2.95 3.05



2.96 3.16


12.5-Bed comfort 3.2 3.39

2.7

2.8

2.9

3

3.1

3.2

3.3

3.4

3.5

Figure 23. CPV for Room & Hotel quality ,3-star & 4-star hotel

53

Table 12 shows CPV of Room facilities. By looking at the average point it can be seen

that generally all scores are at the fair level for all respondents. Males perceived more values

based in room and hotel qualities. But perceived value on bed comfort by females are higher.

There is a difference of perceived value between Thais and Non-thais in room comfort

and bed comforts. Scores show that CPV for Thais based on room and bed comfort are at good

level but perceived value for Non-Thais based on these two factors is at a fair level.

Analysis also describes that perceived value for 4* hotel is higher than 3* hotel based on

all issues.

13. Hotel location Table 13. CPV for Hotel Location



n:240 n:141 n:99 n:61 n:179 n:120 n:120

13.1-access to hotel 3.14 3.09 3.21 3.01 3.18 3.1 3.18

13.2-Close to shopping center 3.07 3.05 3.09 3.08 3.06 3.11 3.02

13.3-access to public transportation 3.25 3.29 3.12 3.49 3.13 3.2 3.24

Male Female

13.1-access to hotel 3.09 3.21

13.2-Close to shopping center 3.05 3.09

13.3-access to publictransportation

3.29 3.12

2.92.95

33.05

3.13.15

3.23.25

3.33.35

Figure 24. CPV for Hotel location, Males & females

54

Table 13 shows CPV of Hotel location. By looking at the average point it can be seen that

all scores are considered at the fair level. Perceived value for access to public transportation is

higher between Thais, males. It can be understood perceived value for both 3* and 4* hotel is

almost at the same level.

Thai Non-Thai




3.49 3.13

2.72.82.9

33.13.23.33.43.53.6

Figure 25. CPV for Hotel location, Thais & Non-Thais

3 Star 4 Star




3.2 3.24

2.9

2.95

3

3.05

3.1

3.15

3.2

3.25

3.3

Figure 26. CPV for Hotel location, 3-star & 4-star hotel

55

14. Safety and security Table 14. CPV for Safety and security

All responders Male Female Thai Non-Thai 3 Star 4 Star

n:240 n:141 n:99 n:61 n:179 n:120 n:120

14.1-Fire alarms 2.94 2.97 2.9 3.24 2.84 2.82 3.06

14.2-Chain lock 3.16 3.12 3.22 3.31 3.11 3.04 3.29

14.3-Safty box 3.03 3.06 3 2.96 3.06 2.95 3.11

14.4-Security personnel 3.1 3.11 3.1 3.06 3.12 3 3.21

Male Female

14.1-Fire alarms 2.97 2.9

14.2-Chain lock 3.12 3.22

14.3-Safty box 3.06 3

14.4-Security personnel 3.11 3.1

2.72.82.9

33.13.23.3

Figure 27. CPV for Safety & security,Males & females

Thai Non-Thai

14.1-Fire alarms 3.24 2.84

14.2-Chain lock 3.31 3.11

14.3-Safty box 2.96 3.06

14.4-Security personnel 3.06 3.12

2.62.72.82.9

33.13.23.33.4

Figire 28. CPV for Safety & security, Thais & Non-Thais

56

Table 14 shows CPV of safety and security. Perceived value for security personnel is at a

higher level than other factors. Fire alarms and chain locks make much more value for Thais

than Non-Thais. By looking at the average point it can be seen that generally 4* hotel makes

much more value for guests than 3* hotel.

15. Food quality and variety

Table 15. CPV for Food quality & variety


n:240 n:141 n:99 n:61 n:179 n:120 n:120

15.1-Variety of food & beverage 2.87 3.02 2.65 2.96 2.83 2.65 3.09

15.2-Quality of food & beverage 2.96 3.14 2.7 3.18 2.89 2.63 3.3

Table 15 shows CPV of food quality and variety. By looking at the scores it can be seen

that with no doubt 4* Hotel creates more value than 3* hotel in food variety and quality. Thais perceive more than Non-Thais.

3 Star 4 Star

14.1-Fire alarms 2.82 3.06

14.2-Chain lock 3.04 3.29

14.3-Safty box 2.95 3.11

14.4-Security personnel 3 3.21

2.52.62.72.82.9

33.13.23.33.4

Figure 29. CPV for Safety & security, 3-star & 4-star hotel

57

Male Female

15.1-Variety of food & beverage 3.02 2.65

15.2-Quality of food & beverage 3.14 2.7

2.42.52.62.72.82.9

33.13.2

Figure 30. CPV for Food quality & variety, Males & females

Thai Non-Thai



2.62.72.82.9

33.13.23.3

Figure 31. CPV for Food quality & variety, Thais & Non-Thais

3 Star 4 Star



00.5

11.5

22.5

33.5

Figure 32. CPV for Food quality & variety, 3-star & 4-star hotel

58

16. Overall value for money Table 16. CPV for Overall value for money

All responders Male Female Thai Non-Thai

3 Star

4 Star

n:240 n:141 n:99 n:61 n:179 n:120 n:120

16.1-Hotel rooms are value for money 3.02 3.25 2.7 3.9 2.73 2.8 3.25

16.2-Hotel food & beverage are value for money 2.79 2.68 2.95 3.08 2.69 2.41 3.17

16.3-Hotel's ambience value for money 3.2 3.29 3.09 3.37 3.15 3.15 3.26

Male Female

16.1-Hotel rooms are value formoney

3.25 2.7

16.2-Hotel food & beverage arevalue for money

2.68 2.95

16.3-Hotel's ambience value formoney

3.29 3.09

00.5

11.5

22.5

33.5

Figure 33. CPV for Overall value for money, Males & females

Thai Non-Thai

16.1-Hotel rooms are value formoney

3.9 2.73

16.2-Hotel food & beverage arevalue for money

3.08 2.69

16.3-Hotel's ambience value formoney

3.37 3.15

00.5

11.5

22.5

33.5

44.5

Figure 34. CPV for Overall value for money , Thais & Non-Thais

59

Table 16 shows CPV of overall value for money. Scores show that perceived value for

money is at a fair level for all respondents. But by looking into the details Hotel food and

beverage value for money is at a poor level in 3* hotel which is at a fair level for 4* hotel. Thais

receive more value for hotel rooms over money than Non-Thais.

Section 3: Analysis of level of CPV on mode of: 17. Accommodation profile

Table 17. Accommodation profile- Room types


n:240 n:141 n:99 n:61 n:179 n:120 n:120

Single bed 33 14 19 10 23 26 7

Twin bed 43 25 18 8 35 29 18

Double bed 81 50 31 23 58 38 43

King size bed 83 52 31 20 63 27 56

3 Star 4 Star

16.1-Hotel rooms are valuefor money

2.8 3.25

16.2-Hotel food & beverageare value for money

2.41 3.17

16.3-Hotel's ambience valuefor money

3.15 3.26

00.5

11.5

22.5

33.5

Figure 35. CPV for Overall value for money , 3-star & 4-star hotel

60

10%

18%

35%

37%

Figure 36.Male preference for room types

Single bed

Twin bed

Double bed

King size bed

19%

18%

32%

31%

figure 37.Female preference for room types

Single bed

Twin bed

Double bed

King size bed

61

16%

13%

38%

33%

Figure38. Thai preference for room types

Single bed

Twin bed

Double bed

King size bed

13%

20%

32%

35%

Figure 39.Non-Thai preference for room types

Single bed

Twin bed

Double bed

King size bed

62

22%

24%

32%

22%

figure 40. Preference of room types in 3-star hotel

Single bed

Twin bed

Double bed

King size bed

6%

14%

35%

45%

figure 41. Preference of room types in 4-star hotel

Single bed

Twin bed

Double bed

King size bed

63

18. Room rates

Table 18. Room rates preferred by guests

All responders 3 Star 4 Star

n:240 n:120 n:120

1-1000 baht 29 15 14

1001-2000 60 27 33

2001-3000 59 33 26

3001-4000 30 16 14

4001-5000 32 11 21

Single bed 14%

Twin bed 18%

Double bed 34%

King size bed 34%

Figure 42. Percentage of room types selected by guests

Single bed

Twin bed

Double bed

King size bed

64

Table 18 shows that majority of the guests stayed at rooms with the rate of 1001-2000 and 2001-3000.

14%

29%

28%

14%

15%

Figure 43. Tendency of guests for room rates

1-1000 baht

1001-2000

2001-3000

3001-4000

4001-5000

3 Star 4 Star

1-1000 baht 15 14

1001-2000 27 33

2001-3000 33 26

3001-4000 16 14

4001-5000 11 21

05

101520253035

Figure 44. Tendency for room rates in a 3-star and a 4-star hotel

1-1000 baht

1001-2000

2001-3000

3001-4000

4001-5000

65

19. Satisfaction regarding expectation Table 19. customers satisfaction regarding their expectations


n:240 n:141 n:99 n:61 n:179 n:120 n:120

Exceeded expection 38 20 18 12 26 21 17

In line with expectation 68 36 32 16 52 40 28

below expectation 78 49 29 21 57 34 44

far below expectation 56 36 20 12 44 25 31

14%

25%

35%

26%

Figure 45. To what level Males meet their expectations

Exceeded expection In line with expectation

below expectation far below expectation

18%

33% 29%

20%

Figure 46.To what level Females meet their expectations

Exceeded expection

In line with expectation

below expectation

far below expectation

66

20%

26% 34%

20%

Figure 47. To what level Thais met their expectations

Exceeded expection


below expectation


14%

29%

32%

25%

Figure 48.To what level Non-Thais met their expectations

Exceeded expection


below expectation


67

18%

33% 28%

21%

Figure 49.To what level expectations are met in 3-star hotel

Exceeded expection


below expectation


14%

23%

37%

26%

Figure 50.To what level expectations are met in 4-star hotel

Exceeded expection


below expectation


68

Table 19 is about customer satisfaction regarding their expectations. It can be seen that

for 33% of the total respondents overall hotel experience had not met their prior expectations

which can have negative effects on post-purchase. Figure 49 reveals that in 3* hotel 33% of the

total hotel experience is in line with the guests’ expectations. At the same time total hotel

experience in 4* hotel is below the guests’ expectation.

20. a)Customer loyalty.

Table 20. customer loyalty- purchase intention


n:240 n:141 n:99 n:61 n:179 n:120 n:120

Insist to choose this hotel again 41 24 17 7 34 19 22

prefer to stay at this hotel 67 37 30 18 49 34 33

No preference 82 47 35 18 64 42 40

Prefer not to stay at this hotel again 21 13 8 7 14 10 11

Insist not to stay ay this hotel 29 20 9 11 18 15 14

16%

28%

33%

23%

Figure 51. To what level all guests have met their expectations

Exceeded expection


below expectation


69

Table 20 describes customer loyalty. By looking at figures 52 and 53, it can be

understood that almost 35 % of customers have no preference to come back to these hotels

which is not good news. These hotels must try by adding more value to decrease this

percentage. The preference to stay in these hotels in future is 28%.

16%

28%

35%

8%

13%

Figure 52. How likely guests are to return to this 3* hotel

Insist to choose this hotelagain

prefer to stay at this hotel

No preference

Prefer not to stay at thishotel again

Insist not to stay ay thishotel

18%

28%

33%

9%

12%

Figure 53. How likely guests are to return to this 4* hotel

Insist to choose this hotelagain

prefer to stay at this hotel

No preference

Prefer not to stay at thishotel again

Insist not to stay ay thishotel

70

20. b)Customer loyalty. Table 21. customer loyalty- Degree of recommendation to others


n:240 n:141 n:99 n:61 n:179 n:120 n:120

Very positive recommendation 43 25 18 12 31 18 25

positive recommendation 88 46 42 21 67 45 43

Neutral recommendation 67 45 22 13 54 32 35

Negative recommendation 29 16 13 10 19 16 13

Very negative recommendation 13 9 4 5 8 9 4

15%

37% 27%

13%

8%

Figure 54. Degree of recommendation to others for 3* hotel

Very positiverecommendation

positive recommendation

Neutral recommendation

Negativerecommendation

21%

36%

29%

11%

3%

Figure 55. Degree of recommendation to others for 4* hotel





Very negativerecommendation

71

Table 21 describes customer loyalty and degree to recommendation to others. The

majority of the responders have this tendency to recommend these hotels to others. Almost

29% of the total responders have neutral recommendation tendency. These hotels must take

advantage of this situation and by adding more value on the weak points get more

18%

33% 32%

11% 6%

Figure 56. Degree of recommendation to others by males

Very positive recommendation positive recommendation

Neutral recommendation Negative recommendation

Very negative recommendation

18%

43%

22%

13%

4%

Figure 57. Degree of recommendation to others by females





Very negativerecommendation

72

recommendation for others. By looking at figures 56 and 57, it can be seen that females have

more tendency to recommend these hotels to others more than males. By adding more values

for males these hotels can get more recommendations of males.

Relationship between Room rates and likely to return

Table 22.Relationship between Room rates and likely to return

Room Rates 1-1000 1001-2000 2001-3000 3001-4000 4001-5000

Likely to return 2.62 2.61 2.67 2.7 2.9

By looking at the table 22, it can be understood that the more guests pay for rooms the more

they are likely to return. It means that there is a direct relationship between room rates,

perceived value and tendency to return.

1-1000 1001-2000 2001-3000 3001-4000 4001-5000

Likely ro return 2.62 2.61 2.67 2.7 2.9

2.45

2.5

2.55

2.6

2.65

2.7

2.75

2.8

2.85

2.9

2.95Figure 58

Likely ro return

73

Conclusion

This research was attempted to 1) study the levels of customers’ perceived value of a 3*

hotel and 4* hotel. 2) Compare the differences in demographic characteristics of the customers

such as sex, nationality and hotel stars affect the level of customers’ perceived value as a

whole and aspect of staff service quality, hotel facilities, room facilities, room and hotel quality,

location, safety and security, food quality and variety and overall value for money 3) describing

the differences to find which parts create more value and where the business suffer from the

lack of value making for customer for more efficiency and effectiveness in management.

This research was quantitative method that collection of data had been done through 240

persons of customers who were randomly drawing from 300 persons of customers, by using

questionnaires as the tool of the research. The statistics such as percentage and average were

applied to use in describing the demographic characteristics of the sample and level of

customers’ perceived value. In this research no test had been used in hypothesis testing.

Conclusion 1. Level of customers’ perceived value

The results of data analysis on level of CPV on services and facilities of a 3* hotel and 4*

hotel located in Bangkok as a whole and aspect of staff service quality, hotel facilities, room

facilities, room and hotel quality, location, safety and security, food quality and variety and

overall value for money were at fair level. It was needed to improve in every aspect.

74

Especially, staff service quality, room and hotel quality, safety and security and food quality and

variety in 3* hotel create low value for the guests. Overall value for money in 3* hotel is lower

than overall value for 4* hotel.

2. Model of relationship between room rates and customers likely to return

From the research it were found that, as room rates go up the customer’s tendency to

return goes up.

75

APPENDICES

Questionnaire

Value amongst Bangkok hotels

This questionnaire is concerned with the perceived value various hotels in Bangkok represent for

customers. Value is what you, as an individual, feel are the benefits of the service quality and

facilities you get from the hotel compared to the amount of money you are paying for it.

There are no right or wrong answers and it is entirely your own personal perception.

The survey is being conducted by the Institute of International Studies at Ramkhamhaeng

University here in Bangkok.

Any and all information is provided under the assumption of total anonymity. Results will only

ever be analyzed in aggregate format and no individual will ever be identified.

This questionnaire consists of three sections.

Section 1:

The following questions are related to demographic information. For each

question, Please choose one answer that is the most appropriate for you.

1. What is your gender? Male Female

2. What is your age?

18 – 27

28 – 37

38 – 47

48 – 57

Over 57

3. Please indicate your level of education. None

High School Diploma or GED

Some technical school or college

Associates degree

Bachelor’s degree

Graduate degree

76

4. Occupation status:

Employed

Unemployed

Government officer

Self-employed

Retired

Student

Other

5. What is your annual income in US Dollars?

Less than $20000

Between $20000 – $35000

Between $35001 - $50000

Between $50001- 75000

More than $75001

6. What is your purpose of this travel?

For business

For leisure

For leisure and business

To join a convention Visit relatives

7. Nationality:

Thai

Non-Thai

8. How important are each of the factors below in your decision to stay at Bangkok Inter

Place Hotel ? (Circle the number that best corresponds to your opinion)

Very important Of no importance

Location close to transport links 1 2 3 4 5

Location next to city facilities 1 2 3 4 5

Price 1 2 3 4 5

Recommendation from friend 1 2 3 4 5

Additional available facilities 1 2 3 4 5

Past experience at hotel / chain 1 2 3 4 5

77

Section 2:

Please indicate in terms of what you are paying, what level of value you feel each of the

elements below represent. Circle the most appropriate option to you. The options are as follows:

1 Excellent value 2 Good value 3 Average value 4 Poor Value 5 Very poor value

9.Staff Service quality Excellent value Very poor value

9.1 Staff provide efficient services 1 2 3 4 5

9.2 Staff understand your requests 1 2 3 4 5

9.3 Staff are helpful 1 2 3 4 5

9.4 Staff are polite and friendly 1 2 3 4 5

9.5 Staff have neat appearance 1 2 3 4 5

9.6 Staff have multi-lingual skills 1 2 3 4 5

9.7 Hotel check-in/check-out service are efficient 1 2 3 4 5

10.Hotel facilities N/A Excellent value Very poor value

10.1 Swimming pool 1 2 3 4 5

10.2 Fitness center 1 2 3 4 5

10.3 Spa and massage room 1 2 3 4 5

10.4 Wifi internet access 1 2 3 4 5

10.5 Car park 1 2 3 4 5

10.6 Tourist information center 1 2 3 4 5

10.7Facilities for disabled guests 1 2 3 4 5

10.8 Bar 1 2 3 4 5

10.9 Restaurant 1 2 3 4 5

10.10 Credit card accept 1 2 3 4 5

10.11 Laundry 1 2 3 4 5

10.12 Smoking area 1 2 3 4 5

10.13 Elevator 1 2 3 4 5

11.Room facilities Excellent value Very poor value

11.1 Air conditioning 1 2 3 4 5

11.2 Television 1 2 3 4 5

11.3 Minibar 1 2 3 4 5

11.4 Refrigerator 1 2 3 4 5

11.5 Safety box 1 2 3 4 5

11.6 Wifi internet access in room 1 2 3 4 5

11.7 Telephone 1 2 3 4 5

11.8 Room services 1 2 3 4 5

12.Room and hotel quality Excellent value Very poor value

12.1 Room size 1 2 3 4 5

12.2 Hotel and room cleanliness 1 2 3 4 5

12.3 Bathroom cleanliness and facilities 1 2 3 4 5

78

12.4 Room comfort 1 2 3 4 5

12.5 Bed/mattress/pillow are comfortable 1 2 3 4 5

13.Location Excellent value Very poor value

13.1 Convenient to access to hotel 1 2 3 4 5

13.2 Close to shopping center 1 2 3 4 5

13.3Convenient to access to public transportation 1 2 3 4 5

14.Safety and security Excellent value Very poor value

14.1 Fire alarms 1 2 3 4 5

14.2 Chain lock 1 2 3 4 5

14.3 Safety box is available 1 2 3 4 5

14.4 Presence of security personnel 1 2 3 4 5

15. Food quality and variety Excellent value Very poor value

15.1 Variety of food and beverage 1 2 3 4 5

15.2 Quality of food and beverages 1 2 3 4 5

16. Overall value for money Excellent value Very poor value

16.1 Hotel room is value for money 1 2 3 4 5

16.2 Hotel food and beverage is value for money 1 2 3 4 5

16.3 Hotel provide comfortable ambience 1 2 3 4 5

Section 3: Accommodation Profile 17. What type of room are you staying at?

Single bed

Twin bed

Double bed

King size bed

18. What is the rate for the room you are staying at?

1-1000 Baht

1001-2000 Baht

2001-3000 Baht

3001-4000 Baht

4001-5000 Baht

Do not know

79

19. To what degree has your overall hotel experience met your prior expectations?

Exceeded expectations

In line with expectations

Below expectations

Far below expectations

20. On the basis of your most recent experience at this hotel, can you tell me,

(a). How likely you are to return to it in the future, if you are given the choice

Insist on staying at this hotel

Would prefer to stay at this hotel

No strong preference to staying at this hotel

Would prefer not to stay at this hotel

Would insist on not staying at this hotel

(b). What degree of recommendation would you give this hotel for friends and family

seeking accommodation in Bangkok?

Very positive recommendation

Positive recommendation


Negative recommendation

Very negative recommendation

80

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