Background of the Research
It is important for every company to overcome the challenges faced by them in order to make their firm a leader in an industry. These challenges sometimes get easily solved by the firm itself, whereas, some are long term challenges which needs a deep research to take them out from the root itself (Phillips and Phillips, 2010). For that aspect, a company needs an industrial consultant for focusing on their problems and through this they can overcome the issues. Thus, it gives rise to industry consulting project and this is mainly refers to as those projects which are consist of a multi-week, month or year’s long collaborative process among client and a team of consultants (Reihlen and Nikolova, 2010). The goal of a consultant is to solve a key problem which is being faced by the firm. Furthermore, there are numerous industries flourishing in Australia and hospitality industries are on boom and are considered one of the largest industries in Australia. Moreover, the economy of the country is highly dependent on this industry. Hotel Marriot Australia is one of the leading hotels and is dominating this industry. Hotel Marriot Australia is chosen for carrying out the research project (Marriot, 2017). This hotel is dominating the industry from past many more years and is offering wide variety of lodging options to its customers. Further, it offers a broad range of luxurious stay and also the world class amenities to their customers.
As it is known that hospitality industry is the growing industry in the world and similarly in Australia also this industry is growing from ages. More the industry grow, more problem it starts facing. With the growth in hospitality industry in Australia, the number of customers also started increasing in Hotel Marriot and due to this the hotel became the leader in this industry (Rahimi and Kozak, 2017). Due to its long effect, the firm became the dominating hotel in this nation as it was providing high comfort to their customers along with all world class amenities. However, from past recent years, the customer of the hotel started decreasing which resulted in the low customer retention. Therefore, a research has been implemented for the purpose of retaining the customer loyalty in the Hotel Marriot of Australia. It is known that every research project is conducted by keeping an aim behind the mind. Here the purpose of doing a research project is to focus over the improvement in customer retention policies which are to be implemented by the hotel in order to overcome their problem of customer retention and to attract more customers (Tripathi, 2014).
Research Aim
To identify the important factors which are needed to implement for customer retention and customer loyalty.
- To recognize the causes of customer deflection
- To analyze the necessary factors needed for customer retention
- To recommend strategies for achieving customer loyalty
- What are causes for customer deflection?
- How customer retention can be done?
- How customer loyalty can be achieved?
Research philosophy mainly refers to as a proper paradigm of research which gives appropriate way for carrying out who investigation of customer deflection in hospitality industry. Further, research philosophy includes differentness philosophies like positivism and interpretivism where, positivism research philosophy emphasizes upon objectivity of the subject and on the other hand, interpretivism put light upon subjectivity of the research aims and objectives. In this research project, researcher will use positivism research philosophy because it will be useful for attaining all the research objectives in an effective manner. Along with that, positivism philosophy will focus upon distinctive factors of hospitality industry which can play the role in the retention of customers. Thus, by using this research philosophy, investigator can achieve the aim of the current research project.
There are basically two type of approach through which researcher can carry out its research in both general and specific manner. The two research approaches are inductive approach and deductive approach. Further, deductive approach refers to as that approaches which focus upon general information to the specific one. Whereas, inductive approach put it’s emphasize towards specific to general research. In order to determine the causes of deflection of customer in hospitality industry, the investigator has used deductive research approach (Pearl, 2014). The reason for using this approach by the researcher is to find out the general organizational factors and its impact over customer retention and after that, researcher will apply the same theoretical concepts on hospitality industry, taking a given hotel to find out the appropriate reason for the current research. Furthermore, deductive research approach also focuses upon making hypothesis therefore, a researcher will examine different hypothesis in order to resolve the research problem. Thus, these different hypotheses will provide effective answers of all the questions of the investigation. Therefore, deductive approach will be used by the investigator for carrying out the research.
This is known as the blue print or data plan of an entire investigation. There are various types of research design used by researcher in order to conduct different researches. Some of them are descriptive, explanatory, experimental and diagnostic research design (Maxwell, 2012). For conducting this research project, a researcher should use descriptive research design as this will be the most appropriate design for conducting a research on customer retention and customer loyalty in hospitality industry. It is because; this design will help the investigator in describing the particular situation in his study. Moreover, this design is theoretical and is based upon the designing and presentation of collected data (Research Design, 2016). Therefore, this research project is a theoretical framework so this design is the most suitable one for the current investigation. Along with that, descriptive research design also aids in the collection of data with the use of different methods like case survey methodology, case study analysis and many other methods. Additionally, this design also helps in providing assistance for conducting research on subjective matters. Furthermore, it also plays a vital role in the attainment of research aims and objectives.
Research Objectives
There are generally two techniques which are used for carrying out the research project. One is qualitative technique and the other is quantitative technique. These both techniques play an important role in carrying out the research in an effective way. Qualitative research technique helps in bringing the understanding of theoretical and subjective concepts of the present study. However, on the other hand, quantitative technique focuses upon the completion of the numerical concepts of the study (Mettler, 2011). Therefore, the present research project aims towards the theoretical concepts and so qualitative research technique will be used by the investigator. However, the data collection also focuses on primary data so numerical calculation is also included in the present study. Therefore, investigator will use quantitative technique along with qualitative technique. In this, qualitative technique will help in understanding the customer behavior and their deflection from the brand loyalty and this will help in resolving the research problem with the use of theoretical framework. On the other side, quantitative technique will aid he researcher in finding out the solution for research problem using numerical facts and figures. And this will also help in assessing the information through different statistical methods. Thus, both the techniques together will solve all the research problems effectively (Mackey and Gass, 2015).
Data collection is the most basic for carrying out the research project. Without collecting data, one cannot carry out the investigation. Therefore, investigator has to collect data for their project. For collecting data, there are two sources, viz., one is primary source and the other is secondary source. Primary source is that source from where data is collected for the first time and the other is that source where already researched data is lying (Silverman, 2016). Therefore to collect from primary there are primary methods such as interviews, questionnaire and survey method, observations and focus group. In contrast, secondary method for collecting data from secondary source is journals, news-letters, company’s annual report, etc. For this project, researcher will collect data from primary source using survey and questionnaire method from customers and interview of hotel managers will be taken. On the other hand, secondary data will be collected by from hotel’s news-letters, financial reports of the hotel, press release and reviews of customers at social media websites.
For collecting data from primary source, investigator is required to take survey form the customers. For taking survey, a researcher has to pick a sample of customers from the whole population. Therefore, sampling method is to be used. There are basically two sampling methods always used by various researchers. One is probability sampling and the other is non-probability sampling. In probability sampling there many types of sampling is done. The most commonly used one is simple random sampling (Billig and Waterman, 2014). Moreover, for this research project, researcher will use simple random sampling method in order to take out their sample for questionnaire survey. This type of sampling avoids biasness and investigator can pick random customers for their research.
Research Questions
Data analysis is done for analyzing the collected data from various methods. Through this, researcher finds the solution for their research questions and this way it can reach to their stated aim. Furthermore, there are basically two types of data analysis is done that are thematic and statistical. For this project, researcher will use thematic data analysis technique by making themes of all the survey questions (Flick, 2015). This technique will enable the researcher to elaborate its findings and this way he can easily reach towards the conclusion.
As it is already discussed earlier that is the primary activity of the researcher while making a research project that is to collect data to carry out the detailed study and to reach at the conclusion by resolving research question and attaining research aim. Data for the research is collected from two sources that are primary source and secondary source (Geerts, 2011). Primary data is that data which is collected from primary source and that of secondary data is gathered from secondary source. Moreover, primary data is collected for the first time and is also known as fresh data. There are various methods for collecting primary data and that are questionnaire or survey method, by interviewing the participants, observation method where participants are observed for a given time period and the last is focus group where a closed group taken as a sample and their activity is closely focused and observed and then researcher reach to the conclusion.
On the contrary, secondary data is collected from that source where already the other person has conducted its research upon or is founded by other people. Some of the instruments of secondary data are journals, books, news-letter, reviews of customers posted on any website and also the company’s financial report and annual report. Researcher takes the required data from these instruments and uses that data in their research project. For the present research project, investigator will use both primary method as well as secondary method to carry out its research upon customer retention and loyalty in hospitality industry (Maxwell, 2012). Here primary data will help the researcher with new and fresh information from customers of this industry and will help in the resolution of problems and to reach at the conclusion. For this aspect, investigator will use questionnaire where survey of customers will be conducted where a set of questions will be asked to them and most of the question with open ended answers so that many suggestions for improvement can be taken from them. This survey will be taken by the researcher using Google sheets and will be sent to the chosen customer’s email id which will be taken from the hotel’s database. Furthermore, some of the managers of Hotel Marriot Australia will be interviewed by asking some of the study related questions in order to get an insight regarding the services provided by the hotel and its staff. This will make this research as reliable and authentic (Matthews and Ross, 2014).
Research Methodology
In contrast with this, secondary data will be collected by the researcher from hotel’s news-letter where the author can find the offering of the hotel and whether it is attracting the customers or not. Further data will also be collected through financial report of the hotel through which researcher can identify the impact over financial status due to customer deflection (Panneerselvam, 2014). Moreover, press release can also avail the data to the researcher regarding his study and the last, reviews of customers on social media will be taken so that the customer’s reviews about the hotel and its facilities can be known genuinely. Through all these sources, researcher will easily get the related data which will help him in resolving the research questions and the attainment of the research aim.
It is essential for the researcher to carry out the complete research by keeping in mind about the ethical consideration. It is not always an easy task to carry out the research project in ethical manner. But for accomplishing the whole research in an effective manner, it is important for the investigator to keep ethical consideration for every aspect. Furthermore, investigator of this research project has emphasized over ethical consideration while carrying out its research. The investigator has followed proper ethical path during the collection of data as most of the tie ethical issues arises during the collection of data (Panneerselvam, 2014). Therefore, it becomes important for the researcher to take care during that time. There are basically two major ethical considerations which researcher must keep in mind during the research project or during data collection and that have been described below:
- While collecting primary data, researcher will be taking information from customer and he will be sending him questionnaire survey to their email Ids so during that time, researcher will analyze the ethical consideration that it would be taking care about the cultural aspects of the customers and none of the question will undermine their cultural beliefs. Furthermore, researcher will not disclose the information to anyone which is provided by the customers. Moreover, the information which will be collected will not be shared with anyone and its privacy would be maintained. Moreover, the investigator would include only that information which is necessary to carry out the investigation and not any other information which may humiliates the customers. Along with that, participants will not be forced by the researcher to take part in and those who will participate; their identity will be kept hidden. Along with that, while interviewing the manager it is highly important to take ethical consideration (Mettler, 2011). A researcher would take prior permission from the managers of Hotel Marriot Australia for taking interview from them. This will help him to work within the ethical boundaries. In addition, the researcher will not ask them such question which may disown the managers as they have very high reputation in the hotel.
- Secondly, while taking data from the secondary source, researcher will keep utmost consideration of ethics. While writing literature review, one will not copy the whole data and will not present others work as their work. This will have an issue of plagiarism, copy and paste (Sullivan-Bolyai, Bova and Singh, 2012). Furthermore, this may undermine the values of those writers who have already taken the research of the related topic. Furthermore, it is the duty of researcher to cite and provide proper reference about the data taken for the literature review. Along with that, by taking data from customer’s reviews, author will hide the identity of the customer who will provide that review.
Conclusion
Researcher has carried out detailed research using different tools and techniques and has been concluded that there is a major factor due to which customer deflection is happening in the Hotel Marriot Australia. The major factor is rise of many other contemporary hotels which are providing comfort to the customer at relatively lower prices. Furthermore, it has also been found out that, people are deflecting towards other contemporary hotel because they are providing new and creative stay at their hotel and many millennial have been deflected towards these hotels as they are available lowest prices than Hotel Marriot. Moreover, they are also easily available unlike Hotel Marriot. Along with that, the marketing consideration of these hotels is more powerful and they are taking regular follow-up with their customers for retaining them. Furthermore, customer service at other contemporary hotel is much better as per the study and this is the reason why customers are getting deflected. Therefore, there is a fall of customer loyalty and customer retention in Hotel Marriot Australia.
Research Philosophy
After conducting the research, it has been found out that customers are getting deflected towards many new hotels which have been established in Australia. In order to retain their existing customers, to gain their loyalty and to attract many new customers it can be recommended to the Hotel Marriott Australia that they must provide highly attractive offers or discounts to their loyal customers and also to the lost customers (Han and Yoon, 2015). This will help the firm in gaining back the lost customers and to maintain the loyal customers. Furthermore, through innovative ways, hotel can entertain their customers and provide leisurely feeling to them. For that, hotel manager can provide them free spas to the guest of the hotel. Along with that, they can also provide adventure sports to their guest at zero or minimal price. Furthermore, the hotel can also introduce the service of customized rooms where gest can customize it during the booking as this will act as innovative service for them. Therefore, this will help the firm to retain their loyal customers and also to attract potential customers towards Hotel Marriot Australia. Moreover, the hotel should also provide many services which are provided by contemporary hotels and not by them because this will also help the hotel in the retention of the customers.
References
Journals and Books
Phillips, J. and Phillips, P., 2010. The Consultant’s Scorecard: Tracking ROI and Bottom-line Impact of Consulting Projects. McGraw Hill Professional.
Reihlen, M. and Nikolova, N., 2010. Knowledge production in consulting teams. Scandinavian Journal of Management, 26(3), pp.279-289.
Han, H. and Yoon, H., 2015. Customer retention in the eco-friendly hotel sector: examining the diverse processes of post-purchase decision-making. Journal of Sustainable Tourism, 23(7), pp.1095-1113.
Pearl, J., 2014. The deductive approach to causal inference. Journal of Causal Inference, 2(2), pp.115-129.
Rahimi, R. and Kozak, M., 2017. Impact of Customer Relationship Management on Customer Satisfaction: The Case of a Budget Hotel Chain. Journal of Travel & Tourism Marketing, 34(1), pp.40-51.
Tripathi, M.N., 2014. Customer Satisfaction and Engagement-Customer Retention strategies for brand manager. Vilakshan: The XIMB Journal of Management, 11(1).
Maxwell, J.A., 2012. Qualitative research design: An interactive approach (Vol. 41). Sage publications.
Mettler, T., 2011. Maturity assessment models: a design science research approach. International Journal of Society Systems Science, 3(1-2), pp.81-98.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.
Silverman, D., 2016. Qualitative research. Sage.
Flick, U., 2015. Introducing research methodology: A beginner’s guide to doing a research project. Sage.
Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd..
Billig, S.H. and Waterman, A.S., 2014. Studying service-learning: Innovations in education research methodology. Routledge.
Geerts, G.L., 2011. A design science research methodology and its application to accounting information systems research. International Journal of Accounting Information Systems, 12(2), pp.142-151.
Sullivan-Bolyai, S., Bova, C. and Singh, M.D., 2012. Data-collection methods. Nursing Research in Canada: Methods, Critical Appraisal, and Utilization, p.287.
Matthews, B. and Ross, L., 2014. Research methods. Pearson Higher Ed.
Online
Research Design. 2016. [Online]. Available through <https://research-methodology.net/research-methodology/research-design/ >. [Accessed on 5th May, 2017].
Marriot. 2017. [Online]. Available through <https://www.marriott.com/default.mi >. [Accessed on 5th May, 2017].
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