Satisfaction of Hilton Hotel Corporation's Customers - Case Study Example

MARKETING STRATEGY Introduction In marketing strategy, the distinction or disparity involving the higher and lesser end of the array of potential and feasible customer expectations is considered a fundamental planned or calculated contemplation in running and supervising consumer contentment. The higher end of consumer anticipation is the preferred and most wanted performance prospects. In other words, it is what the consumer desires or craves. The lower end of expectations is considered what the consumers are eager to recognize (Lashley 2000). To understand consumer expectations, it is important to elucidate consumer delight, consumer satisfaction, as well as consumer dissatisfaction. Consumer delight takes place when real or definite presentation surpasses the preferred and much loved presentation anticipation. The happening of this presentation is outstanding and tremendous as it is very uncommon. Consumer satisfaction, on the other hand, takes place when the real presentation drops within the region of acceptance. Consumer dissatisfaction takes place when the real presentation drops beneath the sufficient and tolerable presentation anticipation. Consumers may sometimes go ahead and turn out to be aggravated and irritated depending on the cruelty of presentation intensity. This paper looks at the usefulness, relevance, and implications of exceeding customer expectations, achieving customer satisfaction and retention in the current environment (OaShaughnessy 1995). Zone of tolerance The zone of tolerance is considered as the degree of the disparity and variation among preferred and satisfactory presentation of a product. Studies done in the past have posited that the disparity between consumer desires and what the consumers are prepared to acknowledge is slim when the tolerance zone is also slim. Subsequently, the dealer has additional complications when harmonizing presentation to consumer desires. This shows that consumer contentment and approval is harder to attain when the precinct of acceptance is slim. Amusing the consumer through going beyond the preferred desires is an exceptionally intricate undertaking for dealers. It is important for the dealers to avoid causing consumer discontent through falling short of summiting ample and sufficient anticipations (Lashley 2000). Customer satisfaction in Hilton Hotel Corporation Hilton Hotels Corporation has understood that it is important to maintain first-class consumer service as it is considered fundamental to advancing and developing connections and affiliations with the consumers. An improved and better affiliation with the consumers practiced by Hilton staffs contributes to better and superior consumer retention, consumer allegiance, and effectiveness. Consumer contentment is difficult to achieve and as well easy to mislay. The hotels management has been aware of the fact that consumers will obviously shift to other service providers if they are displeased with their services. The Hotel Corporation has been very competitive in the modern world. Therefore, they are obligated to disburse much consideration and awareness in the realization of the wants and requirements of every consumer swiftly and precisely. This helps them to generate a competitive advantage over their competitors hence ensuring stronger affiliations with their consumers (Doyle 2009). According to Brink and Berndt (2009), “In South Africa, poor customer service is particularly prevalent in the food industry. This is according to the findings in a national consumer satisfaction study by research company, React Surveys. It was found that many consumers had a lot more disposable income and were spending money ‘without being too fussy’ about the service. It is therefore easier to be rude to a customer because there are a hundred more behind him or her! The survey also found that most customers returned to the stores and restaurants that provided bad service because of value for money and convenience. Furthermore, shoppers believe it does not pay to complain about bad service in restaurants and retail stores.” Hilton Hotel Corporation has designed strategies and plans of action to ensure that this does not happen in their Corporation. The approval of a product by the consumer offers very little information to the industry on where it is ranked by its consumers. According to Ferrel & Hartline (2010), “There are two issues at work: relative satisfaction and customer expectations. Relative satisfaction tells a firm where it ranks against the competitor. For example, Coca-Cola’s satisfaction rating of 85 says little about the firm and its products until that scored is compared with Dr. Pepper 87 and Pepsi 84.” Evaluations and assessments like these are of fundamental importance due to the fact that consumers make related evaluations when making choices on acquisition of the product. It is important to consider the fact that consumers at times may be contented with a particular product but prefer the same product from another company if they feel that they will get products of superior quality and better services in that company (Barnes 2001). Implications of exceeding customer expectations There have been a number of implications resulting from exceeding customer expectations in Hilton Hotel Corporation. The management knows very well that, in many cases, the description and explanation of value of a product may vary. Consumers characteristically describe and classify value as fitness for use. Fitness for use is otherwise defined as the ability of a product, in this case a food product, to congregate or surpass the anticipations and hope of the consumers. Fitness for use and compliance to stipulation of the products gives an important foundation for organizing processes to manufacture superior foodstuffs. The Hilton Hotel has also devised ways to advertise and promote their foodstuffs, as well as plans to comprehend and identify with the requirements and desires of the consumer and consequently interpret these desires into suitable provisions for the foodstuffs and services. It is the duty of the managers to make sure that the stipulations are congregated (Michman & Mazze 1998). According to Baourakis (2004), meeting the requirements of the expectations of the consumers and exceeding those expectations means that the quality of the foodstuffs is high, as well as the services. In advertising and promotion, advanced and superior products by the Hotel Corporation elevates the amount of proceeds and market share. Elevating the market share is important to the Hotel as it helps in pulling and keeping clientele. Studies done over the recent past have elucidated the fact that consumers who make grievances or criticism may give a second opportunity to a business in cases where the grievance is determined. On the other hand, faulty or substandard foodstuffs and poor services may augment expenditure incurred in its manufacture. Hilton Hotel staff conducts weekly, monthly, and annual meetings aimed at conversing about the setbacks and hitches the Hotel Corporation is facing and look for resolutions. There are a number of expenditures in manufacture of the foodstuffs related to value. These include prevention costs, appraisal costs, internal failure costs, and external failure costs. Prevention expenditures are those linked to avoiding imperfections and blemishes prior to their occurrence. Appraisal expenditures are those used up in scrutinize the worthiness of the foodstuffs and services offered throughout the itinerary of manufacture. Internal failure expenditures are those engendered throughout the manufacture of the substandard food products. The external failure expenditures are those used up when the food product and the services involved falls short of the expectations of the consumer. Customer satisfaction in the food industry is triggered by the hazard analysis critical control point (HACCP), which is a plan of action put into place to ensure food safety. The Hotel Corporation has devised plans to avoid these costs through putting into place these critical control points to ensure customer satisfaction (Baourakis 2004). In most cases, exceeding customer expectations, achieving customer satisfaction, and retention of the customers in production of food stuffs is achieved through branding. Branding has been proved over the past by Hilton Hotel Corporation to contribute in adding value to their food products and services. Branding has many ad vantages to the consumer as well as the hotel in general. It helps the hotel in differentiating its products and services from those of the competitors. It aids the hotel to divide the general market and draw bigger and better shares of particular aimed markets through ensuring the needs of the consumers are met (Doyle 2009). According to Salver (2009), “Depending on the intensity of customers contact, a satisfied and loyal staff may eventually lead to a more satisfied and loyal clientele. Employee satisfaction and turnover do indeed have an influence on customer retention.” Conclusion In conclusion, it important to posit that many food companies have taken up or assumed various customer retention plans of action in a bid to create and safeguard durable and lasting affiliations with their consumers. Companies have endeavored to employ customer retention plans of action to apprehend and grasp a competitive advantage that will continue to with the same level of advantage without any problems for a longer time. This is done through ensuring that a plan of action has significance, is uncommon, imitable, and cannot be replaced easily. An improved and better relationship with the consumers may in the long run contribute to better and superior consumer retention, consumer allegiance, and effectiveness. Customers at times may be pleased with a particular product but choose the same product from another group if they feel that they will get products of superior quality and better services in that company. Meeting the desires of the consumers and going beyond them, means that the quality of the products and services is high. In advertising and promotion, advanced and superior products increases the amount of proceeds and market share. Elevating the market share of a product is important as it helps in pulling and keeping clientele. Branding of products adds value to it. Branding has many rewards to the consumer as well as the food industry as it helps a company in differentiating its products from those of the competitors; and aids the company to divide the general market and draw bigger and better shares of particular aimed markets through ensuring the needs of the consumers are met (OaShaughnessy 1995). References Baourakis, G 2004, Marketing Trends for Organic Food in the 21st Century, World Scientific Publishing, Singapore. Barnes, D 2001, Understanding Business Process: Process, Routledge, London. Brink, A & Berndt, A 2009, Relationship Marketing & Customer Relationship Management, Juta and Co Ltd, South Africa. Doyle, P 2009, Value-Based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value, John Wiley & Sons, San Francisco. Ferrel, O & Hartline, M 2010, Marketing Strategy, Cengage Learning, Mason, USA. Lashley, C 2000, Hospitality Retail Management: A Unit Manager’s Guide, Reed Elsevier Press, Oxford. Michman, R & Mazze, E 1998, The Food Industry War: Marketing Triumphs and Blunders, Greenwood Publishing Company, USA, OaShaughnessy, J 1995, Competitive Marketing: A Strategic Approach, Routledge Publishers, New York. Salver, J 2009, Brand Management in the Hotel Industry and its Potential for Achieving Customer Loyalty, Auflage Publishing Company, Norderstedt, Germany. Read More