Rebranding
FACULTY OF COMMERCE
DEPARTMENT OF TOURISM AND HOSPITALITY
MANAGEMENT
A critique of the customer retention strategies employed by hotels in Zimbabwe.
Proposed by:
Trevor Takura Zuze
R092242Z(PDP)
Lecturer: Njerekai C
TABLE OF CONTENTS.
Title
Page
1.1
Problem background
1
1.2
Statement of the problem
3
1.3
Research objectives
3
1.4
Research questions
3
1.5
Significance of the research
4
2.1
Literature review
4
3.1
Research methodology
7
1.7
Data analysis plan
9
4.1
Reference
11
1.0 background of the problem
Worldwide a number of factors have been attributed to the increase in the high customer defection rate. In the 1990s, service organizations turned their focus toward complaint management and recovery efforts as marketing strategies to minimize defections and boost customer retention. The way customers are served and recognized are critical fact ors in attracting, satisfying and retaining customers. Strategies that will help in retaining customers are considered critical in attaining a wide market share and repeat business. (chobaiwa et al 2010) .
The hotel industry exemplifies a service industry characterized by a high degree of involvement between customers and service providers
Research by the Forum Corporation revealed that almost 70% of identifiable reasons why customers switched to competitors were associated with a dissatisfying service experience with a service provider during the service encounter. Whiteley (1991). Of the 70% of customers who switched to competitors, 21% switched because there was too little contact and individual attention from service providers, and 49% switched because the attention was poor. Indeed, problems experienced in the service encounter were the major cause of customer dissatisfaction and defection (Barsky & Labag h (1992).
Creating positive service encounters is the essence of customer loyalty,
DEPARTMENT OF TOURISM AND HOSPITALITY
MANAGEMENT
A critique of the customer retention strategies employed by hotels in Zimbabwe.
Proposed by:
Trevor Takura Zuze
R092242Z(PDP)
Lecturer: Njerekai C
TABLE OF CONTENTS.
Title
Page
1.1
Problem background
1
1.2
Statement of the problem
3
1.3
Research objectives
3
1.4
Research questions
3
1.5
Significance of the research
4
2.1
Literature review
4
3.1
Research methodology
7
1.7
Data analysis plan
9
4.1
Reference
11
1.0 background of the problem
Worldwide a number of factors have been attributed to the increase in the high customer defection rate. In the 1990s, service organizations turned their focus toward complaint management and recovery efforts as marketing strategies to minimize defections and boost customer retention. The way customers are served and recognized are critical fact ors in attracting, satisfying and retaining customers. Strategies that will help in retaining customers are considered critical in attaining a wide market share and repeat business. (chobaiwa et al 2010) .
The hotel industry exemplifies a service industry characterized by a high degree of involvement between customers and service providers
Research by the Forum Corporation revealed that almost 70% of identifiable reasons why customers switched to competitors were associated with a dissatisfying service experience with a service provider during the service encounter. Whiteley (1991). Of the 70% of customers who switched to competitors, 21% switched because there was too little contact and individual attention from service providers, and 49% switched because the attention was poor. Indeed, problems experienced in the service encounter were the major cause of customer dissatisfaction and defection (Barsky & Labag h (1992).
Creating positive service encounters is the essence of customer loyalty,
References: Bitner, M.J, Booms, B.M, & Tetreault, M.S., 1990, “The Service Encounter: Diagnosing Favorable and Unfavorable incidents”, Journal of Marketing, Vol Bolton, R. N. (1998) A dynamic model of the duration of the customer’s relationship with a continuous service provider: the role of satisfaction Charkrabarty ,A (2006) barking at the wrong tree, - factors influencing satisfaction in banking in the UK, international journal for applied service marketing. Groonroos, C., 2000, Service Management and Marketing, A Customer Relationship Keaveney, S Kelly, S. W and Davis, M. A. (1994). Antecedents to customer expectations for service recovery Manrai L,A and Manrai A,K (2007) a field study of customer switching behavior for services, journal of retailing and customer service Reichheld, F. F., & Sasser, W. E. (1990). Zero defections: Quality comes to service. Harvard Business Review, 68, 105-111. Whiteley, R. C. (1991). The customer driven company: Moving from talk to action. Adelaide, Australia: Griffin.