Relationship Management

Abstract

Total quality management (TQM) is an organizational culture that emphasizes internal integration at the same time that it demands innovation in the marketplace. TQM effectively integrates the internal and external activities of an organization. In business to business marketing, the role of relationship management is to bridge internal quality management with external quality management. In a hotel, the convention services manager must be sure that the promises made by external marketing activities can be fulfilled through interactive marketing activities. Internal marketing processes which enable employees to fulfill marketing promises are an equally important part of the service quality equation.     

Resort mystery shopping: A case study of hotel service

ABSTRACT

Mystery shopping is a common mode of improving customer service in retail and hospitality businesses, but researchers rarely utilize the methodology in academia. In these business entities, high-level quality standards are paramount to customer satisfaction, and mystery shopper reports have been found to be indicative of an organization’s service quality. This study employed a mixed-method approach, utilizing qualitative and quantitative procedures to examine a mystery shop program from within a resort hotel in the Southeastern US. The researchers used seven service principles which were established by the resort hotel. Mystery shoppers surveyed this specific service culture for a span of 13-months. The results suggested that managers need to re-examine service principles to ensure consistent employee performance and guest experiences.     

Prioritizing destination attributes for optimal resource allocation: a study of Chinese tourists visiting Britain

ABSTRACT

This study assesses the importance, performance, and the interrelationships of key destination attributes for marketing managers to prioritize resource allocation. A three-dimensional analysis of importance–performance–impact-analysis (IPIA) factors, based upon a survey sample of 275 Chinese tourists to Britain and an expert panel interview with 10 destination marketing managers is presented. Data analysis was based upon a mix of multi-criteria decision-making methodologies, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method and the Analytic Network Process (ANP) method. The framework can be applied to prioritize resources allocation to improve customer satisfaction in other contexts, such as a sector or a specific business.     

Getting Along with Others

ABSTRACT

In the foodservice industry, customer service is a key performance indicator. This performance indicator comprises two components: a core aspect (food quality) and a relationship aspect (personality of the server). This paper explores the role of personality and its influence on the relationship aspect of customer service. In particular, the authors examine the significance of the agreeableness personality trait on customer satisfaction and word-of-mouth promotion. The findings suggest that developing a method to measure the agreeableness personality trait could assist foodservice managers in selecting candidates that have a greater likelihood of delivering quality customer service.     

From Guanxi to customer relationship marketing: How the constructs of Guanxi can strengthen CRM in the hospitality industry

Abstract

Business today has recognized the cost advantages of customer retention. In reaction to decades of industrialization and mass production, the pendulum has slowly swung back toward more one‐to‐one customer relations and mass customization. One‐to‐one personal attention and relationship building is widely perceived as a desirable method for increasing customer loyalty. Such concepts, however, are not new. Over thousands of years, the Chinese have been practicing “Guanxi,” which Davies (1995) defines as the social interaction within a networked group where repeated favor exchanges ensure a measure of trust among the participants of this network. The constructs of Guanxi, namely bonding, trust, empathy, and reciprocity, can be combined with customer relationship marketing (CRM) and strengthen what a business can offer its customer. This paper, therefore, discusses the history and development of Guanxi in China and its similarities to customer relationship marketing that is practiced today in the Western world. It also presents how the constructs of Guanxi can be combined with CRM. Tips for good Guanxi and CRM to ensure success are also highlighted.     

Terrorism Effects on Travel Arrangements and Tourism Practices

Abstract

In light of the unprecedented terrorist assaults on September 11, 2001, this research attempts to assess their underlying impacts on travel arrangements and business practices. A questionnaire reflecting the objectives of the study is developed accordingly. To gather the empirical data, this research draws samples from an academic community consisting of faculty, staff, and students. This study first reveals that the level of perceived risk differs among the respondents; students tend to be risk-takers while faculty and staff could be considered as risk-averters. In large, respondents agree that the recovery of airline business will take at least a year. As for travel arrangements, participating in leisure activities around government buildings notably decreases. Regarding tourism practices, it indicates that both governments and businesses have taken rightful measurements against future terrorist movements. Critical marketing implications along with suggestions for future research are discussed in the conclusion section.     

An Integrated Approach to Service Quality in Hotels

ABSTRACT

An examination of service quality in hotels goes beyond the measurement approach by incorporating, customer satisfaction, organizational culture and climate. Customer satisfaction is examined and the use of employee perceptions of customer satisfaction is proposed as an index for customer satisfaction. Organizational climate is discussed as being a fundamental element that needs to be understood and used by managers in order to promote service quality. A conceptual model that incorporates all the elements of an expanded service quality model is presented by utilizing organizational culture and climate as its base. It is argued that hotel managers need to address all aspects of the model simultaneously instead of the single element at a time approach.     

Impact of an Airline Merger on Customer Satisfaction

ABSTRACT

Given the radical changes in the airline industry where many airlines struggle to sustain their financial viability, consolidation appears to be one viable option for airlines. While airlines guarantee that consolidation will bring better customer service, the traveling public fears the effects of mergers that result from less competition. Using the AA/TWA merger, this article presents the results of an empirical study that provides both the airline public and airlines with insight into the real impact of an airline merger on airline service and customer satisfaction.     

Customer Satisfaction,Training and TQM

Abstract

Managers within the hospitality industry make frequent reference to TQM principles. The extent to which these principles are applied effectively within the human resource management area of hospitality however remains under-researched. By applying TQM principles, this paper focusses on the relationship between customer service and training drawing upon comparative data from Western and Thai hotels. The paper also examines the perceptions of staff towards of hotels' guest-orientation and the provision of quality guest services. The researchers found that guest assessments of the performance of hotel frontline staff depend on their services function (e.g., front-office, housekeeping). The service quality skills needed by frontline staff were also found to differ in the case of Western and Thai hotels. Such differences merit proper consideration on the part of managers within the major hotel chains. The various findings may assist hospitality managers to determine appropriate strategies for the enhancement of guest services particularly in cross-cultural settings.     

Sustainable urban tourism success factors and the economic performance of small tourism enterprises

The aim of this study is to introduce the relationship between sustainable urban tourism success factors and the economic performance of small tourism enterprises (STEs). The related data was obtained from 330 STEs business owners/managers in Eskisehir (Turkey). To determine the dimensions Exploratory Factor Analysis was performed and Confirmatory Factor Analysis was used for verifying these dimensions. Structural Equation Modelling was applied in order to introduce the relation which is foreseen. As a result of the analysis, seven dimensions of urban tourism success factors and two dimensions of the economic performance of STEs have been determined and a significant relation was found between them. These findings provide an insight to literature and new directions and suggestions for local governments, regional marketing organizations and business managers on how tourism development and sustainability can be achieved in urban areas.     

Creating and Sustaining Fun Work Environments in Hospitality and Service Organizations

ABSTRACT

Managers of hospitality and service organizations have long believed that it is critical for their employees to have fun at work. They recognize the important relationships between their employees having fun and their customers having a pleasant experience. While everyone accepts this notion, there is little empirical support for either a definition of what managers can do to promote a fun work environment or even what makes a fun work environment fun. Further, while many positive outcomes for both the individual and the organization are claimed to be associated with fun work environments, there is even less empirical data to support this belief.

This primary purpose of the paper is to identify and define the actions and activities that managers can do or support to create and sustain the feeling employees have that their firm is a fun place to work or have a “fun work environment.” The paper reports results of a large e-mail survey of human resource managers designed to identify what cues managers send to create a fun work environment, the degree to which these cues actually are associated with a work environment that is fun, and the positive individual and organizational outcomes that are claimed to be associated with working in such an environment. The study offers definitions and measurements of the cueing process, a fun work environment, and outcomes of the process.

We found a strong relationship between the antecedent cues and the degree to which the work environment was perceived as fun. The relationships between a fun work environment and various outcomes were not as strong or comprehensive. While the results of this research are positive and extend our knowledge of cues, culture and especially “fun work environments,” more needs to be done in validating the measures and extending the research.     

A Study into the Use of Management Science and Marketing Research Techniques in the Irish Tourism Industry

Abstract

The authors report the findings of a recent survey into the use of management science and marketing research techniques in the Irish tourism industry. Given the well documented benefits of these techniques for management decision making, the research was undertaken to explore the extent to which managers in the Irish tourism industry are aware of and use these techniques. The usefulness of these techniques has spawned a considerable expansion of the coverage of such topics throughout business studies programmes in the higher education sector internationally. The study examines whether what is being taught is being used in practice and if not why not. Overall, the results indicate that management science and marketing research practice in the Irish tourism industry do not seem to reflect their potential.     

Entrepreneurial Characteristics,Motives, and Business Challenges: Exploratory Study of Small- and Medium-Sized Hotel Businesses

ABSTRACT

The purpose of this study is to gather information about the determinants and characteristics of the owners/managers of small- and medium-sized hotels (SMSHs) and identify various issues in starting up and operating businesses in the United Arab Emirates. The results of this study reveal that the majority of the owners/managers of SMSHs in the United Arab Emirates are male, young and middle age, and relatively new to the tourism industry. The motivations for the business ventures of the entrepreneurs include wanting to be financially independent, become one’s own boss, involvement in family business and the opportunities of the hotel business. Among the key business challenges highlighted by the owners/managers of SMSHs are stiff competition in the hotel industry, increased operating costs, reduced demand, and lack of skilled employees. Several key strategies have been employed to face these challenges. These include offering competitive pricing, improving the marketing and channels of promotion, enhancing the quality of service and providing superior customer service.     

Ethical purchasing perceptions and practices of Oklahoma restaurant managers

This study examined ethical business perceptions and practices in purchasing dealings between junior and senior managers in the U.S. restaurants. This study investigated the managerial style in the context of business ethics relative to employees’ loyalty, ethical working behavior, attitude, and decision‐making process of restaurant's food purchasing personnel. Additionally, organizational business ethics training for employees is a crucial component to enhance adherence to an ethical code of conduct. The findings revealed that the managers’ ethical purchasing perceptions and practices of their employees’ behaviors were not different in terms of gender, age, and years of experiences as a manager. Corporate ethical standards and managerial ethical practices can guide managers and employees as to how to behave when confronted with a dilemma with regard to ethics and personal interest. Consequently, the prime principle of management or purchasing personnel in terms of ethical dealings has tremendous impact on a firm's operational performance and employees’ morale.     

Influence of Advertising on Brand Personality in The Airline Sector: The Case of Spain

This article outlines the findings of a study employing a partial least squares (PLS) structural equation methodology to explore the relationship among advertising and brand personality (BP) dimension of a validated Aaker's model (1997) in the airline business. BP refers to the emotional side of brand image. It is created by all experiences of consumers with a brand. The model was validated using confirmatory factor analysis and the effect of advertising on BP has been tested using PLS. The findings suggest that advertising influences the formation of BP only in the sophistication dimension. These results invite managers in the airline companies sector to develop communication strategies to create a distinguishing and attractive BP that will help them connect with their consumers.     

The role of relationship quality in integrated destination marketing

ABSTRACT

This study illustrates the role of the relationship quality perceived by the international public, which is increasingly discussed in public diplomacy research. It leads to the implications for integrated destination marketing of a host country in targeting the international public, where the host country is considered both as a tourism destination and as a place for business and investment. The study proposes a model illustrating the intervention of relationship quality in the way tourism destination image and country image are associated with tourism and business behavioral intentions. Empirical testing shows that image itself cannot assure that the international public would support the host country. Instead, it establishes the critical role of enhancing relationship quality.     

Impact of Guest Reward Programs on the Firms' Performance

ABSTRACT

This study investigates the commonly important variables that characterizes the reward programs of airline and hotel firms and measures the impact of reward programs on the firms' overall performance. This study focuses on examining the reward programs of two service industries, namely, airlines and hotels. The findings of this study are as follows. First, ten significant variables of the reward programs that differentiate their own program from the other and ultimately make consumers choose a particular program among various programs are derived and evaluated. T-test is employed to examine significant differences between the two ROE means for each of the ten variables. The variables that were significant were elite level qualification, affinity credit card, and award threshold were significant at the 0.01, 0.05, and 0.10 level, respectively. Second, the impacts of those influential variables on the firms' performance are measured. The three variables, purchasing miles or point, enrollment bonus, and award threshold are statistically significant at the 0.05 level. Purchase miles or points and enrollment bonus contributed significantly to the firms' return on equity (ROE), while the award threshold seemingly reduced the firms' earned ROE. Both the airline and hotel firms should be sensitive when establishing reasonable and attainable threshold levels for their customers. Customers generally turn away from high barriers and are more likely to select a program with less restrictions and conditions.     

Using Information Technology to Improve Customer Service

ABSTRACT

Little guidance exists in the literature with respect to the search for and evaluation of opportunities to use advanced Information Technology to enable outstanding customer service. In this article, the authors integrate existing frameworks to contribute to fill this void. The authors synthesize the Customer Service Life Cycle (CSLC) and the Customer Relationship Change Spectrum (CRCS). CSLC analysis is designed to produce idea generation and to support the creative process of identifying opportunities for IT investment in support of customer service. The CRCS enables managers to evaluate the organizational impact of proposed innovations. The combined framework offers an integrated planning framework spanning idea generation and feasibility analysis that should provide useful to both researchers and practicing managers.     

Service Failure and Recovery in a Strategic Airline Alliance Context: Interplay of Locus of Service Failure and Social Identity

ABSTRACT

There has been a dramatic increase in the past decade in the number of strategic alliances and business networks. Yet, despite these trends in the business environment, the individual firm-customer dyad has remained the contextual focus of most services marketing research (Gittell, 2002 Gittell, J. H. 2002. Relationships between service providers and their impact on customers. Journal of Service Research, 4(4): 299–311. [Crossref] , [Google Scholar]). Using a scenario study, this research investigates the effects of service failures in a strategic airline alliance setting, with a particular focus on locus of service failure and strength of social identification, on three alliance entities—a consumer's home carrier, the alliance partner airline, and the alliance. Study findings suggest that consumers' evaluations are more stable (less extreme) when the home carrier causes the service failure. In contrast, when a lesser known entity (partner airline) causes the service failure, consumers are more willing to rate that entity harshly. Furthermore, compared to weak identifiers, strong identifiers were not only more positive in their evaluation of the home carrier but also in their evaluation of the alliance, pointing to a halo effect, whereby positive evaluations of the home carrier are transferred to the alliance. Implications of study results are discussed and directions for future research provided.