1.0 Introduction
1.1 Background of the Study
Customer satisfaction is a business philosophy centered on creating value for customers by anticipating and managing their expectations while demonstrating the ability and responsibility to meet their needs. Service quality and customer satisfaction are critical factors in the success of any business (Gronroos, 1990; Parasuraman, Zeithaml, & Berry, 1988). As Valdani (2009) noted, enterprises exist because they have customers to serve. Achieving a sustainable competitive advantage lies in delivering high-quality services that lead to satisfied customers (Shemwell, Yavas, & Bilgin, 1998).
Service quality and customer satisfaction remain key in the battle for competitive advantage and customer retention. Customer satisfaction results from the perception of value received during a transaction or relationship, in which value equals perceived service quality compared to what is expected from competitors (Blanchard & Galloway, 1994; Heskett, Sasser, & Schlesinger, 1990; Zeithaml, Berry, & Parasuraman, 1990). To achieve customer satisfaction, it is essential to understand, anticipate, and fulfill customer needs. Organizations that quickly adapt to meet these needs tend to be more profitable than those that fail to do so (Barsky & Nash, 2003). Since the cost of acquiring new customers is typically higher than retaining existing ones, successful managers must focus on retention by implementing effective satisfaction and loyalty strategies particularly in the hotel industry.
One of the major challenges currently facing hotel industry managers is providing and maintaining high levels of customer satisfaction. Customers’ demand for quality products and services in tourism has become increasingly significant to professionals (Lam & Zhang, 1999; Yen & Su, 2004). Guest relationships are considered strategic assets to organizations, with customer satisfaction forming the foundation of business objectives (Gruen, Summers, & Acito, 2000). Positive guest relationships enhance customer commitment and increase repeat visitation.
Long-term, mutually beneficial relationships between hotels and guests have gained importance due to the strong correlation between overall satisfaction and the likelihood of repeat visits (Choi & Chu, 2001). Hotels are now investing heavily in improving service quality and guest-perceived value to drive customer satisfaction and loyalty, which in turn fosters stronger customer relationships (Jones, Mothersbaugh, & Beatty, 2007). The quality of relationships has a notable positive influence on hotel guests’ behavior by generating positive word-of-mouth and increasing the rate of repeat visits (Kim, Han, & Lee, 2001).
1.2 Statement of the Problem
Investigation revealed that despite the relatively harsh business environment that businesses are run in Nigeria, the Divine Fountain Hotels Limited has a sustained growth and proven track record of providing superior hospitality services to its customer. It is rather worrisome that there is no existing research report that has evaluated the extent at which the service delivery at this hotel has influenced customers’ satisfaction since it was established.
The need to do this constitutes the focus of this study and the findings of this research work would be useful to all stakeholders in the hospitality and tourism industry.
This gave rise to the purpose of this research work which is to examine marketing practices and consumer satisfaction in hospitality industry.
1.3 Aim and Objectives of the Study
The aim of the study is to examine the Marketing Practices and Consumer Satisfaction in Hospitality Industry. In achieving this aim, the following specific objectives were laid out as follows:
- To determine the benefits of marketing practices on consumer satisfaction in hospitality industry.
- To determine the challenges facing Idems Ultimate Hotel in implementing marketing strategies on consumer satisfaction.
- To know whether Idems Ultimate Hotel adopt any e-marketing strategies on consumer satisfaction.
- To make useful recommendations based research findings.
1.4 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What are the benefits of marketing practices on consumer satisfaction in hospitality industry?
- Are there challenges facing Idems Ultimate Hotel in implementing marketing strategies on consumer satisfaction?
- Does Idems Ultimate Hotel adopt any e-marketing strategies on consumer satisfaction?
1.5 Significance of the Study
The significance of this study can be seen in the fact that the outcome can be applied in the development of national policy framework as a guide for e-marketing (i.e. e-business) adoption. The study will improve our understanding of the following issues as they apply in the Nigerian situation.
- It shows the relevance of marketing practices and consumer satisfaction in hospitality in Nigeria.
- It reveals the benefits derived from adopting marketing strategies.
- It addresses the challenges that prevent firms from taking advantage of marketing strategies.
- It provides the basis of future research into the adoption of e-business and consumer satisfaction in Nigeria economy.
1.6 Scope of the Study
The study concerns about marketing practices and consumer satisfaction in hospitality industry using Idems Ultimate Hotel, Uyo. The study will focus on the concept of e-marketing, hotel industry e-marketing as well as benefits of e-marketing and services to customer services.
1.7 Limitation of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint:
The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint:
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Lack of Initial Cooperation from Respondents:
A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.8 Definition of Terms
Marketing Practices:
Marketing practices refer to the various strategies, techniques, and activities employed by organizations to promote their products or services, engage customers, and ultimately drive sales and customer loyalty. In the hospitality industry, these practices include advertising, personal selling, public relations, promotions, and digital marketing, all aimed at attracting and retaining customers (Kotler & Keller, 2016).
Consumer Satisfaction:
Consumer satisfaction is the level of contentment a customer experiences after purchasing a product or service, particularly when the offering meets or exceeds their expectations. In hospitality, satisfaction often reflects how well guests perceive service quality, ambiance, value for money, and overall experience (Oliver, 1997). It is a critical determinant of customer retention and positive word-of-mouth.
Hospitality Industry:
The hospitality industry comprises businesses that provide services related to lodging, food and beverage, travel, and recreation. Hotels, resorts, restaurants, and guest houses all fall under this sector. It is characterized by a high level of personal service and customer interaction (Walker, 2017). For this study, the focus is on hotel services.
E-Marketing (Electronic Marketing):
E-marketing involves the use of digital channels such as websites, social media, email, and search engines to reach consumers. It allows hospitality firms to create personalized customer experiences and promote their services to a wider audience at lower costs (Chaffey & Ellis-Chadwick, 2019).
Customer Loyalty:
Customer loyalty refers to the likelihood of a consumer repeatedly purchasing services from the same brand or company due to satisfaction, trust, or a strong customer relationship. In hospitality, loyal customers are crucial for sustained business growth and often lead to referrals (Reichheld & Schefter, 2000).
Service Quality:
Service quality is the measure of how well the service delivered matches the customer’s expectations. It includes elements such as responsiveness, reliability, assurance, empathy, and tangibles (Parasuraman, Zeithaml & Berry, 1988). High service quality is essential to achieving consumer satisfaction in the hospitality industry.
Marketing Strategies:
Marketing strategies are the overarching plans and decisions that guide a company in reaching its marketing goals. This includes market segmentation, targeting, positioning, and the marketing mix (product, price, place, and promotion) tailored to consumer needs (Kotler & Armstrong, 2018). In the hospitality sector, these strategies help attract and retain guests.
Promotional Activities:
Promotional activities are efforts made by businesses to inform, persuade, or remind customers about their services. These include discounts, offers, advertising campaigns, and social media promotions. Effective promotion can significantly influence consumer choice and satisfaction (Belch & Belch, 2015).
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