Luxury Ritz Carlton Hotel - Coursework Example

Table of Contents Introduction 2 About the company 2 Literature review 3 Selection of the research methodology 6 Sampling strategy 7 Questionnaire 8 Review of the questionnaire 12 Reference 15 Bibliography 17 Introduction Increasing degree of competition has instigated the companies operating in the hospitality sector to modify and introduce various changes in their corporate strategy. Conspicuous shift of attention has been registered in the attitude towards relationship marketing strategy. Customer’s requirements, customer’s satisfaction and their opinion have gained more prominence, as a result of which such strategies have become the order of the day. Renowned luxurious hotels are thereby paying more attention to ensure optimum customer satisfaction during their stay in the hotel. About the company Ritz-Carlton Hotel has been selected as the subject for this project. According to the data available on the company’s website, Ritz is the world’s most luxurious hotel (Ritz, 2007). For centuries together, this hotel has occupied a distinguished position in the international hotel industry. It has become the epitome that all hotels seek to aspire to. From 1906 onwards, its name is revered among the international clientele. With time the company diversified its business to enter new markets and to minimise competition. It did so by undergoing various mergers and acquisitions. To attract the customers further, the hotel has introduced certain special services like online purchase of gifts from hotel’s website. The hotel often hosts different exhibitions to offer the guests a view of exclusive items (Ritz, 2007). The recessionary phase affected the revenue of the company which declined to 24 percent. However, 2009 seems promising for the company and it is expected to cater to the demands of different markets (Baker, 2010). Literature review Contemporary corporate companies often conduct research for several reasons. The term “research” has been derived from the French words “cerchier”, which means to seek or to search (Ariola, 2006, p.2). It is commonly perceived that the process of research is initiated by a specific problem. Based on the purpose of the project, research methodology can either be descriptive or analytical. Descriptive research is conducted to gather knowledge or information in order to study specific information (Goddard & Melville, 2004, p.9). Analytical research is more concerned with the why and how of certain phenomenon. Therefore, it is used to make a critical evaluation of the matter (Ethridge, 2004, p.24). Research methodology can again be segregated as qualitative and quantitative research. According to Gunderson (2002), quantitative research is conducted for collecting numeric data, which are then analysed using mathematical methods (Muijs, 2004, p.1). In a nutshell, quantitative research is conducted to determine the relationship between variables. Success of quantitative research thereby depends on the sampling method, which in turn is governed by the population size and the research purpose. Random sampling is done by selecting the sample on a random basis from the given set of population. This process is used when the samples are identical in nature. Instead of selecting the sample in a random manner, the researcher can select it in a more systematic manner. Before selecting the sample, in case of large population, the latter should be divided into strata based on which the sample should be selected. This is known as stratified random sampling. The concept of cluster random sampling is identical to stratified random sampling. While conducting non-random sampling the researcher can select sample according to his/her discretion or according to the requirement of the research (Blankenship, 2009, p.89). Once the sample is collected, specific statistical test should be conducted. After analysing the finding, one needs to verify whether the hypothesis developed at the beginning of the research is authentic or not. Unlike quantitative research, qualitative research does not deal with data and mathematic models. Qualitative research is more based on inductive reasoning (Koh & Owen, 2000, p.219). Such research is mainly conducted with qualitative data collected from the sample. Any sampling technique can be used depending on the research requirement. Several methods can be used for conducting quantitative research; few of which have been discussed below: Direct observation: This is a commonly used technique where the researcher observes the sample and collects information. However, often this method fails to yield satisfactory results as it is often coloured with the prejudices and assumptions of the observers. In-depth interview: Once the sample has been selected, information can be collected by conducting interview on one to one basis. Though the degree of biasness in such process is usually low, it requires significant time. Protocol analysis: In this technique, the sample is placed in the decision making situation and then he or she is asked to take a decision. The person is then asked about the factors that he or she will take into consideration while making the decision. If the sample lacks the expertise needed to make decision or the basic understanding about the matter, there is a high possibility that the whole process of research will fail. Once the research methodology has been decided, the next step is to decide that the manner in which the data will be collected. While conducting the interview, it is necessary to decide whether it will be structured or unstructured. In the structured interview, the interviewer asks a fixed set of questions to the interviewee. As a result, the interviewee is the one who speaks the most. Three main phases in this context are opening, questioning and closing. These phases are illustrated in the below given diagram. Figure 1: Structured interview process (Source: Thomas, 2004, p.167) Unstructured interview is more flexible because the interviewer has no predefined list of questions to be asked. The interview is free to ask any question that he feels will be required for the project. Often the questionnaire serves as a better tool for collecting data. It can be closed ended where the respondents are presented with several options and are required to select one among them. On the other hand, in an open ended questionnaire, the respondents have the freedom to expresses their views. To have a better understanding of the nature of the research, a comparison was initiated between the research approach, strategy of inquiry and the methods of data collection. Figure 2: Charts showing different research designs Source: Creswell, 2003, p.20) After data is collected, the researcher should decide which method will be used for data analysis. Selection of the research methodology After analysing different types of researches and their respective methodology, it has been concluded that management of Ritz will use quantitative research to analyse customer satisfaction level. This is because it is quite difficult to collect any quantitative data regarding customer satisfaction. The management or the research team should develop a hypothesis or the research question that embodies the purpose of the research. If required, a brief explorative research can be done to gather more information on managerial issues before developing the hypothesis or research question. For collecting data, the management should use a questionnaire. Though interview can also be conducted, the fact that it is time consuming debars from using it. The questionnaire will have both closed ended as well as open ended questions, though majority of the questions are closed ended. This will minimise the time needed for collecting as well as for analysing the data. Sampling strategy Success of research depends on the quality of data; hence one should be very particular regarding sampling and data collection process. As discussed earlier, the main aim of this research is to analyse customer satisfaction level; hence sample should be selected from customers who have already availed the services offered by Ritz. In this research, all the guests of the hotel represent the total population. The customers or the guests will be selected at their time of departure because at that point of time they have a better understanding regarding the quality of services and it will be easier to measure their satisfaction level. Ritz treats all its customers equally. Therefore, it is not possible to differentiate them into clusters. Hence, the sample will be selected on a random basis. To minimise the errors in the process of sampling, it should be continued for at least a week. However, if the research team feels that frequency of guest visiting the hotel is low then sampling process can be extended for a few more days. Care should be taken to ensure that the respondent is interested in participating; otherwise he or she may provide vague answers just for the sake of formality. At the time of departure, the respondents will be provided with a questionnaire which they are required to fill. Once they fill the questionnaire, it will be submitted in a collection box. Often the respondents are not interested in participating in such researches because they feel that any negative information might affect their relationship with the hotel. Hence, the respondents should be assured that their identity will remain confidential and they need not disclose their name or other personal details. Questionnaire Once the research method and the sampling strategy is finalised, the next important task is to develop the questionnaire for collecting data. Therefore, one needs to pay special attention to questionnaire development section. To verify the customer satisfaction level, quantitative research is recommended. Hence, the data will be qualitative in nature. However, sometimes conducting analysis with quantitative data becomes difficult. Therefore, it is recommended to use a scale for rating. Likert’s ‘five point scale’ can be used for converting qualitative data into quantitative form. The main aim of this research is to determine the satisfaction level of the guests of Ritz hotel. For this purpose hence both open ended as well as closed ended questions have been framed. The respondents are required to answer the closed ended questions first. The closed ended questions are as follows: 1. Are you satisfied with the quality of the service offered in this hotel? Highly unsatisfied Unsatisfied Indifferent Satisfied Highly satisfied 2. Do you agree that the service quality of Ritz is better than the other luxurious hotels? Highly disagree Disagree Cannot say Agree Highly agree 3. Do you feel there is parity between the level of service promised by the hotel and the one given to you? Obviously No No Cannot say Yes Obviously yes 4. Would you like to visit the hotel again? No Probably No Not yet decided Probably yes Yes 5. Would you recommend you friends and other known persons to visit the hotel? Obviously No No Cannot say Yes Obviously yes 6. Did this ever happen that you had a problem regarding the service and even after informing to the customer care department, no action was taken? Several time Sometimes Cannot remember Not always Never 7. Do you feel the management pays special attention to each of its guest’s requirement? Never Not always Cannot say Sometimes Always 8. How you will rate the service offered by the hotel against its rivals? Very poor Poor Indifferent Good Extremely good Apart from the above given closed ended question, the respondents will be asked to answer some open ended question. These questions are as follows: 1. List the major loopholes you found in the services offered by the company? 2. How can the hotel overcome them? 3. What suggestion you would like to give to the company in order to enhance its competitive position in the hospitality industry? 4. Would you like some other services to be introduced by the hotel in order to cater to the changing requirements of the new generation? 5. How will you describe your experience in the hotel in a single sentence? Review of the questionnaire I asked one of my friends to review the questionnaire and to explain whether it can be used to collect data for quantitative research. He was of the opinion that majority of the questions are to the point but I need to introduce few more closed ended questions to have in-depth information regarding their satisfaction level. He also suggested that the respondents should be asked to provide some basic information regarding the age group to which they belong, the frequency with which they visit the hotel and so on. After considering this information I introduced a separate section in the questionnaire; it is as follows: 1. Gender Male Female 2. Age group Below 15 16-30 31-45 Above 45 3. Number of times you boarded this hotel Once 2 to 10 more than 10 This general information will assist the marketing team to have a better understanding of the respondents. Reference Ariola, M. M. 2006. Principles and Methods of Research. Rex Bookstore, Inc. Baker, M. B. March 08, 2010. 2010 U.S. Hotel Chain Survey: Ritz-Carlton Knocks Off Four Seasons In Punch-Drunk Luxury Tier(2). [Online]. Available at: http://www.businesstravelnews.com/Research/2010-U-S--Hotel-Chain-Survey--Ritz-Carlton-Knocks-Off-Four-Seasons-In-Punch-Drunk-Luxury-Tier%282%29/ [Accessed on October 21, 2010]. Blankenship, D. 2009. Applied Research and Evaluation Methods in Recreation. Human Kinetics. Creswell, J. W. 2003. Research design: qualitative, quantitative, and mixed method approaches. SAGE. Ethridge, D. E. 2004. Research methodology in applied economics: organizing, planning, and conducting economic research. Wiley-Blackwell. Koh, E. T. & Owen, W. L. 2000. Introduction to nutrition and health research. Springer. Goddard, W. & Melville, S. 2004. Research Methodology: An Introduction. Juta and Company Ltd. Muijs, D. 2004. Doing quantitative research in education with SPSS. SAGE. Ritz. 2007. The Ritz. About Us. [Online]. Available at: http://www.theritzlondon.com/about/index.asp [Accessed on October 21, 2010]. Thomas, A. B. 2004. Research skills for management studies. Routledge. Bibliography Chu, S. 2010. Managing Knowledge for Global and Collaborative Innovations. World Scientific. Milad, A. I. D.B.A, S.C.P.M. 2010. Business Management Handbook. AuthorHouse. Panneerselvam, R. 2004. Research Methodology. 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