Customer Satisfaction in the Tourism and Hospitality Industry: Analysis on Service Quality and Service Failure

1986 Words May 15th, 2013 8 Pages
1.0 TITLE OF THE STUDY
Customer Satisfaction in the Tourism and Hospitality Industry: Analysis on service quality and service failure

2.0 BACKGROUND OF THE STUDY / INTRODUCTION
Customer satisfaction plays a crucial role for success and survival in today’s competitive market. Customer satisfaction is considered a prerequisite for customer retention and loyalty, and obviously helps in realizing economic goals like profitability, market share, return on investment, etc. (Scheuing, 1995; Reichheld, 1996; Hackl and Westlund, 2000). Customer’s overall satisfaction with the services of the organization is based on (or a function of) all the encounters/experiences of the customers with the organization. There are many researchers conceptualize
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Service failure is further compounded by the fact that there is an increased competition in most service industries. The competition between hospitality providers is reflected in the ways that customers nowadays critically assess the quality of service offerings. Thus, in an era of increased competition and perceptual differences between the customers and the service providers leading to service failures, service recovery becomes an important strategy to reduce the dissonance in customers. It is important for hospitality industry to investigate the best methods for recovering from service failure.

3.0 PROBLEM STATEMENT
In today fast-growing competitive market, many companies are trying to implement strategies in order to help them gain the competitive advantage in the business industry. Buyer or customer as the major sources income for the business, they control the volume of sales and profit margin of the organization. In order to success and survival in the competitive market, many companies trying to maintain an on-going relationship with the customer as well as focus on their needs and wants to protect their long-term interest. Besides that, they also found that satisfaction of customer can influence the financial performance of the organization.
In the hospitality industry, service quality is always considered as the important criteria that need to be focus by the organization.
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