Chapter 6 The importance of market research © Hudson & Hudson.
Transcription
Chapter 6 The importance of market research © Hudson & Hudson.
Chapter 6 The importance of market research © Hudson & Hudson. Customer Service for Hospitality & Tourism Topics Covered o Tourism and hospitality research introduction o Consumer research and customer loyalty o Measuring service quality o Critical incidents studies o Lost customer research o Online research o Common research errors o Effective use of market research in decision making ‘At Your Service’ Spotlight: Simply the Best Service with no boundaries. o Significant research • Press visits • Product development o Attention to media and journalists • Ski lovers as press coordinators • Media visits • Winterstart World Cup • Top treatment of journalists o Staff • Teaching by example • Excellence cards • Ride breaks Introduction to research in tourism and hospitality o Market research often • Considered costly and time-consuming • Undertaken only around major developments • Contributions to day-to-day operations overlooked • Organizations overlook existing, accessible information • Study results ignored or not fully considered Applied Research in Tourism & Hospitality 1. 3. 5. 7. RESEARCH ON CONSUMERS Identifying existing markets Identifying potential markets Identifying lapsed consumers Testing customer loyalty Developing detailed consumer profiles Identifying general trends in demographics and psychographics Identifying changes in attitudes and behavior patterns (generally) Identifying changes in attitudes and behavior patterns (product specific) 2. RESEARCH ON PRICING Identifying attitudes towards prices Testing attitudes towards packages and individual pricing Identifying costs Identifying costing policies of competitors Testing alternative pricing strategies Testing payment processes (credit cards, electronic funds transfer, etc.) 4. RESEARCH ON PROMOTION Testing and comparing media options Testing alternative messages Testing competitor’s messages and their effectiveness Testing new communications options (Internet, email, Web pages social media) Identifying cooperative opportunities Measuring advertising and promotion effectiveness 6. RESEARCH ON THE COMPETITION Measuring awareness Measuring usage Identifying levels of customer loyalty Identifying competitors’ strengths and weaknesses Identifying specific competitive advantages (locations, suppliers, etc.) Identifying cooperative opportunities Observing levels of customer service RESEARCH ON THE OPERATING ENVIRONMENT Economic trends Social trends Environmental issues Political climate and trends Technological development and their impact 8. RESEARCH ON A DESTINATION Measuring residents attitudes Benchmarking Measuring customer loyalty Identifying tourism activities Identifying spending patterns Branding research Table 6.1 RESEARCH ON PRODUCTS & SERVICES Measuring attitudes towards existing products or services Identifying potential new products which may be at the end of their product life cycle Identifying products that are considered acceptable substitutes/alternatives Evaluating competitor’s products Evaluating consumer attitudes toward décor, presentation and packaging Evaluating consumer attitudes about combinations of products and services (bundles of product attributes) RESEARCH ON PLACE & DISTRIBUTION Identifying attitudes towards location Identifying attitudes toward buildings/premises Identifying attitudes on virtual sites Identifying potential demand for product or services at other locations Identifying cooperative opportunities for distribution of information or services Consumer research and customer loyalty o ‘Completely satisfied’ Enterprise customers o ‘Voice-of-Customer Operating Model’ o Net Promoter Score for consumers o Competitor intelligence o Benchmarking • Guest satisfaction scores (GSS) Benchmarking UK’s top 20 attractions Visitor Attraction Name Victoria & Albert (V&A) Museum National Gallery Science Museum British Museum Natural History Museum Chester Museum Alton Towers Thorpe Park Edinburgh Castle Tower of London Legoland, Windsor Eden Project Tate Modern Warwick Castle London Zoo York Minster Madame Tussauds London Eye Blackpool Tower and Circus Pleasure Beach Blackpool Table 6.2 (Source: Based on Which?, 2011) Customer Score (out of 100) Rank 81 80 79 79 79 78 75 73 72 72 72 70 69 69 69 67 64 64 58 58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 A DINESERV interview The restaurant 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Table 6.3 Has visually attractive parking areas and building exteriors Has a visually attractive dining area Has staff members who are clean, neat, and appropriately dressed Has a décor in keeping with its image and price range Has menu that is easily readable Has a visually attractive menu that reflects the restaurants’ image Has a dining area that is comfortable and easy to move around in Has rest rooms that are thoroughly clean Has dining areas that are thoroughly clean Has comfortable seats in the dining room Serves you in the time promised Quickly corrects anything that is wrong Is dependable and consistent Provides an accurate guest check Serves your food exactly as you ordered it During busy time, has employees shift to help each other maintain speed and quality of service Provides prompt and quick service Gives extra effort to handle your questions completely Has employees who can answer your questions completely Makes you feel comfortable and confident in your dealings with them Has personnel who are both able and willing to give your information about menu items, their ingredients, and methods of preparation Makes you feel personally safe Has personnel who seem well trained, competent, and experienced Seems to give employees support so that they can do their jobs well Has employees who are sensitive to your individual needs and wants, rather than always relying on policies and procedures Makes you feel special Anticipates your individual needs and wants Has employees who are sympathetic and reassuring if something is wrong Seems to have the customers’ best interests at heart Benchmarking fast-food restaurants Goal: Competitive benchmarking of fast-food restaurants Criteria Service Image Menu Selection Attributes Location Attributes Attributes Drawing Power Accessibility Attributes Attributes Cleanliness Healthy Food Proximity to Residence Amenity Taste of Food Service Responce Variety of Food Proximity of Workplace Store Operating Hours Competitive Price Employee Courtesy Word of Mouth Reputation Proximity of Highway Quality of Prior Service Safety Alternatives McDonald’s Wendy’s Burger King Figure 6.1 (Source: Adapted from Min and Min, 2010) Subway Arby’s Hardee’s The Gaps Model of Service Quality Personal Needs Group Needs Expected service Customer Satisfaction Gap 5 Perceived service Service delivery Gap 3 Gap 2 Gap 4 Past experience e Word of Mouth External Communication Perceived customer expectations by management Gap 1 For Consumer Figure 6.2 (Source: Parasuraman, et al., 1985) Service quality standards For Marketer Measuring service quality o Importance–performance analysis (IPA) • Relative importance of attributes versus actual performance o SERVQUAL • Difference between consumers’ expectations and perceptions of service quality • 22 item scale, five dimensions • has been adapted to serve different industry sectors o Comment cards • performance-based measure and diagnostic tool • feedback at time of service experience • may be more effective than SERVQUAL or IPA o Mystery shopping • participant observation • A common market research technique • Rich information about service experience as it unfolds IPA attribute ratings for ski destination 4.00 A: Concentrate Here Figure 11.3: Importance B: Keep up the Good Work 3.75 Hot Water Importance of Attributes 3.50 Information on Ski Slopes 3.25 3.00 Separate Snowboarding Areas Off-Piste Skiing 2.75 2.50 2.25 Live Bands in Bars 2.00 1.75 1.50 C: Low Priority D: Possible Overkill 1.25 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 Performance of Attributes Figure 6.3 (Source: Hudson and Shephard, 1998) 3.00 3.25 3.50 Advantages and disadvantages of mystery shopping Advantages Offers deep insights into feelings and motivations behind service/practice (Palmer, 2000) Experience is natural and not contrived for the sake of the observer (Bootte and Mathews, 1999) Serves as a management tool for improving standards in customer service by providing actionable recommendations (Erstad, 1998; Cramp, 1994) Ideal for investigating services (Crano and Brewer, 1986; Grove and Fisk, 1992) Serves as a management tool for enhancing human resource management (Erstad, 1998) Disadvantages Raises ethical issues by observing people without their knowledge (Jorgenesen, 1989) Based on assumptions that need to be made explicit and addressed (Savage, 2000) Information collected may be biased as a result of arbitrary or careless selection of observation periods, or the observers own prejudices (Smith, 1995) In the long term, advantages for improving customer service can wear off if not integrated with other measures of service delivery process (Wilson, 1998) Can be very costly and time-consuming (Grove and Fisk, 1992) Table 6.4 (Source: Adapted from Hudson, Hudson & Miller, 2004) Snapshot: Checking out the Competition You can never be too old to learn new things from just about anyone. o Mystery shopping • Gather information on industry rivals • Stay current, competitively priced • Improve customer service and guest communication • Enhance staff training and understand nuances of staff-guest interactions o Websites and publications o Stay abreast of trends o Learn what competitors are doing o Business in remote settings o Social media • Brand Karma Photo courtesy of Ben Hall Critical incidents studies o Critical incident technique (CIT) o Qualitative interview procedures, verbatim accounts: • Consumer evaluation of services • Service failure and recovery • Employee and customer participation in service delivery • Service experience o Four main benefits of CIT • Sound information easily translated into action • Useful when the service is new, little information exists • Useful for assessing cross-cultural perceptions Tracking service quality 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 1 2 3 4 5 6 Mean Expectations 7 8 9 10 11 12 13 Mean Performance X-Axis Key: various stages of the Holiday Experience 1. Brochure 5. Transfer to accommodation 9. Resort activities 13. Transfer to airport 2. Waiting to go 6. Arrival accommodation 10. Skiing/snowboarding 3. Journey 7. Accommodation 11. Company magazine Figure 6.4 (Source: Adapted from Hudson, Hudson & Miller, 2004) 4. Meeting the representative 8. Welcome 12. Departure Lost customer research o Few organizations have effective strategies for evaluating customer attrition o Research targets customers who have dropped the company’s service • Makes inquiries about reasons for leaving • Identifies failure points and common problems • Calculates the cost of lost customers. o NBRI study – root cause driving down customer loyalty and customer satisfaction (68 %) identified as ‘wait time’ Online research o Electronic and online surveys • Computers placed in high-traffic locations • Customers asked to complete online surveys • Input tabulated, available instantly • Can be accessed by corporate and front-line staff ⁻ Instant service recovery ⁻ Long-term service improvement o Virtual focus groups o Online ‘chat’ sessions • Pre-recruited respondents in guided online discussion ⁻ Time- and cost-saving benefits o Virtual worlds e.g. Second Life o Social media and crowdsourcing e.g. Brand Karma Common research errors o Not enough qualitative information • Especially important for launching new service or product o Improper use of sophisticated statistical analysis • Errors in collection, tabulation, or analysis of data o Failure to have a representative sample • Inaccurate estimates of the thoughts and behaviors of larger population o Problems with interpretation • Skill and dexterity is required on the part of the researcher Effective use of market research o Research can play a critical role in development • Practical decision-making at a strategic level • Academic understanding of industry development • Feasibility studies for new projects o Successful research contingent on 3 conditions: • Sufficient resources • Research results stand, even when they conflict with preconceived views • Results should be implemented e.g. Courtyard by Marriott Case Study: Driving complete customer satisfaction Going ”above and beyond” to satisfy customers. o Enterprise Service Quality index (ESQi) • Phone survey with two questions • Results collected, analyzed quarterly • Branch by branch comparisons • Promotions based on rankings • ”Brand Integrity Audits” o ‘Completely satisfied’ 3 times more likely to rent again o 3 satisfaction priorities: • Attitude, helpfulness of staff • Speed of transaction • Ceanliness of the car