Qualitative Analysis

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It can also be observed that on the item, “The hotel offers great programmes for honor members like me,” the mean is significantly high at. Even one standard deviation, 2. 91, is still very near the “AGREE” mark of 3. 0, implying that there exist the necessary focus which Buttle (2003) and Knox et. Al. (2003) specifically advised to have. Now, an issue that can be raised with regards to this is how about the new customers?

As Buttle (1996) explained, just a 5% increase in customer retention would create a 125% increase in profit. Therefore, it is just strategic that focus be also given here. So far, the data presented it Tables 4-1 and 4-2 provides multi-perspective insights to the Millennium Seoul Hilton Hotel customer relationships from two angles: the staff and the customer. The results was consistent with what Osborne (2001) claims as necessities in having a dynamic business.

As mentioned in Section 2. 1, the way to build dynamic business is to make sure that there is interaction with customers, changes being made are recognized by everyone, there is an understanding – at least on the part of the staff – on what is required of them, people know what the implications of the changes are to the customers and there is a development plan and a clear list of expected results. In general, a score of 3. 0 (i. e. , AGREE) was observed in all criteria related to this. Therefore, at least on these aspects of customer relationship marketing, the Millennium Seoul Hilton Hotel is doing well.

In general, majority of hotel guests, about 80%, visit the hotel once a year. A good 10% visit the hotel twice a year while the rest go to the hotel still more often than that. As far as customer relationship is concerned, this would have an enormous implication: It means that customer relationship marketing should be given top priority as they would have only one chance a year to do this right for a great majority of customers.

Therefore, this should be a major consideration in designing loyalty programmes. Based on Table 4-4, it appears that the current loyalty programmes of Hilton is effective as a great majority (i. e. 93. 33%) of the respondents expressed preference of this hotel over others. Based on the finding’s of Dick and Basu (1994), motivation and perception are important factors related to this.

Apparently, the hotel is perceived as meeting the customer’s needs. Moreover, the added features mentioned in Section 2. 5 by Brenner such as Certification Programmes for Managers, as well as Areno Night Club band performances could be effective as this provides more reasons for hotel guests to go. Empirically, however, the data in Table 4-5 suggest that it is actually the health club, the golf driving range, and the 7 Restaurants and bars which are the main reasons why guests keep coming back. In Now, an issue that can be raised with regards to this is how about new customers. As Buttle (1996) explained, just a 5% increase in customer retention would create a 135% increase in profit.

Therefore, it is just strategic to focus on this as well. With regards to customer satisfaction, survey shows that customers perceive hotel services to be acceptable in terms of efficiency, handling complaints, value for money, and hospitality. As can also be seen in the survey, the rating scale was 1 to 4 so respondents were not given a middle ground. The fact that mean for all these areas is nearer to 4 than to 1 means that the hotel is doing well. Also, it can be noticed that efficiency and handling complaints, having the highest mean scores of 3. 35 are the primary strengths of the hotel.

Hospitality and Value for Money which came in third and fourth are not really far behind in their ratings of 3. 33 and 3. 27 respectively. Moreover, the highest standard deviation for value for money can be accounted for the fact people coming from different status (e. g. , upper class, upper middle class, lower middle class, etc. ) would have different perception on the value for money. For example an additional pillow, for instance, which cost $10 may be perceived as too expensive by the middle class people while upper class people may look at it as just reasonable.

Yet, despite these differences, the fact that the mean landed on 3. 27 is already an accomplishment. Finally, it was found out that 60% of the respondents used their HHonors privilege. This number is quite low but it implication is high. This just mean that people who become HHonors are not truly interested with the privilege. If they were, at least 90% should have taken advantage of this. The most plausible reason is that they did not go became a regular visitor because of the HHonors. It was actually the other way around – they became got the HHonors because they were regular visitors.

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