What are the factors of customer satisfaction at ‘chor-bazar’ restaurant in London?

ABSTRACT

The intention of this assignment is to scrutinize customer satisfaction management schemes in ‘CHOR BAZAR’ restaurants in London. Further, this study espouses the applied content analysis approach which Gilbert and Horsnell (1998) used in their study, utilizing comparison and recording of findings based on benefit of best practice criteria. The results of this study provide hospitality professionals with an assessment of current methods of measuring and managing customer satisfaction in ‘CHOR BAZAR’ restaurant. There are some key words which were used for this assignment such as customer satisfaction, service quality, measurement techniques and hotel and hospitality industry.

INTRODUCTION

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In an era of global rivalry, most of the tourism and hospitality industries focus on service quality and fineness to attain and retain a pool of loyal and lucrative customers. Customer satisfaction plays an imperative role in hospitality industry. Besides, most of the literature argues that higher service quality leads higher level of customer satisfaction and ultimately results higher degree of customer loyalty. Service quality and customer satisfaction are the major part of the financial performance in hotel industry. Moreover, monitoring and evaluation of customer satisfaction is paramount to improve the customer satisfaction in hospitality industry. The following assignment briefly discusses the customer satisfaction management in “CHOR BAZAR “Restaurant in London.

AIMS AND OBJECTIVES:-

Investigation on different factors influencing customer satisfaction– a case study in CHOR-BAZAR restaurant in London

Analysis and Investigation of –

HRM Practices in U.K Hotel Industry (F&B Production)
Various factors influencing customer satisfaction
Impact of different factors influencing customer satisfaction in chor-bazar Restaurant in London.

HYPOTHESES:–

H1: There are many factors affecting customers satisfaction

H2: There are many factors influencing customer satisfaction atchor-bazar restaurant

H3: different factors have positive and negative impact on customer satisfaction

H0: Null Hypothesis

Literature review

The intention of this activity is to recognize the role of customer satisfaction in hotel and tourism industry. Besides, this activity briefly discusses the strategies, the importance of customer satisfaction and the factors which can improve the customer satisfaction in hotel management. In addition, this activity explores the perception of managers as well as customers about the customer satisfaction in Chor Bazar hotel in London. Further, this activity illustrates significance of resolving the customer complaints and how managers can resolve the customer complaints accurately.

Customer satisfaction plays an imperative role in the hospitality management. According to Williams and Uysal (2003) customer satisfaction is an important factor in hospitality and tourism however; there is a mounting alertness that can create disparity between the company’s endurance and failure. Selvitch and Oh (2010) pointed out that customer satisfaction is the vital issue in the hospitality because of its important role in organizational performance and eventually in the endurance of hospitality companies. As well, Gonzalez and Brea (2005) showcased that, the foremost benefits associated with customer satisfaction are clients may retain with that particular organization or hotel for longer period with deep relationship and they may recommend this service to their friends or relatives. Customer satisfaction is a guest post consumption judgment of a product or service that can in turn be calculated by assessing guest’s evaluation of a performance on exact feature (Chi and Gursoy, 2009)

Furthermore, Kuo (2007) avowed that there are four factors which can provide good customer satisfaction like problem solving, empathic feeling, enthusiastic service, and friendliness. Firstly, problem solving is the most significant factor and it is concerned with an optimistic view towards problem solving particularly when the customers complain or disgruntled. So the employees should be more patient and proficient in solving their complaints or dissatisfaction (Kuo, 2007). Customer problem solving is sophisticated service technique. Secondly empathic feeling, the employees should empathize needs of customers, safety and their privacy. Besides, the customer is the first priority for the employees. Thirdly, enthusiastic service comprises the employee should enlighten the customers of their hotel promotions, make them conscious of equipment and services and be helpful to their needs even working overtime if needed .

Communication skill is an imperative to maintain good relationship with customers and in order to improve the customer satisfaction. According to Jung and Yoon (2010) employees plays an important role in communication by direct face to face contact with customers in restaurants. Hence the employee’s communication skills are an indicator for triumphant management. Further, communication between the employees and customer divided into two verbal and non verbal communications. Proper non- verbal communication methods during transaction considerably persuade his or her relationship with customer. Moreover, nonverbal communication style reduces the problems or clashs happening in the service delivery process and significantly affects the customer satisfaction. Further in study of Jung and Yoon (2010) the nonverbal communication classified into four areas such as kinesics, proxemics, paralanguage and physical appearance. Kinesics and proxemics amongst nonverbal communication methods have significant consequence on customer’s positive emotions, whereas employee’s kinesics and paralanguage affect customer’s negative emotions. When the staffs serve customers in a pleasant and gentle way and keep an appropriate distance then the customers experience positive emotions.

Moreover, the service attitude of the employee is a very essential factor in customer satisfaction (Kuo, 2007). Owing to the close communication between the tourists and hotel staffs, service attitude plays significant role in the customer satisfaction. Eventually, friendliness is another important factor of the customer satisfaction. If the employee ignore the friendliness elements like smiling and politeness, the will make customers feel and uncomfortable (Kuo, 2007). Thus these four factors are very essential to make good customer satisfaction.

According to Sim et al (2006) satisfaction is an overall assessment of recital based on all prior experiences with a firm. Customer satisfaction with the hotel comprises many components like ambience of the hotel and hospitality of the service provide to the customer. Ambience is a special atmosphere or mood created by a meticulous environment. As well ambience of the hotel affects a customer’s selection decision. Sim et al (2006) further pointed out that the significance of the physical surroundings help the ambient conditions which are significant to employee efficiency and interpersonal services. Moreover, ambience of the hotel as one of the antecedent of customer satisfaction. Hospitality is one of the constituent of service quality. High quality service and improving customer satisfaction are the important factors leads to the success of companies in hotel, catering and tourism industries.

On top of it, the higher service quality helps to make a higher level of customer satisfaction and ultimately it leads higher degree of customer loyalty (Beier et al. 2004).As well, there are higher long terms benefits are the result of augmented customer loyalty as of lower cost and higher turnovers. Kim and Lee (2011) also stated that effective service quality helps good customer satisfaction. There are three models of the affiliation between the service quality and customer satisfaction focus on the arbitrator of customer satisfaction such as the perceived service quality to customer satisfaction model, the customer satisfaction to perceived service quality model and the independent effects model. Primarily, perceived service quality to customer satisfaction is extensively accepted and it identified that some precise emotions associated to service experience might appear and arbitrate as a mediator between the two constructs. Furthermore, the acuity of service quality is a casual precursor to satisfaction and customer satisfaction increases behavioral intentions (Kim and Lee, 2011). O’Neill (2006) explored that the service quality is an important precursor to customer satisfaction. Hence the service quality is an essential factor in customer satisfaction.

It seems that, one of the cornerstones of making an effective close relationship with customers is building superior value (Kanadampully and Suhartanto, 2003). Since customers are essential part of business, close working relationship between clients and staff for meeting customer satisfaction enhances organizations outcomes in terms of profit. One study of Laws and Thyne (2004), who is a social worker and community trainer explores also mainly seven steps for achieving customer satisfaction such as encourage face to face dealings, respond to messages promptly and keep clients informed, be friendly and approachable with customers, make a clearly defined policy for customer service, attention to detail, anticipate clients needs and honor the promises of staff to client.

Indeed, now a day’s most of the organizations like hospitality, tourism and leisure time customer satisfaction are plays in their long term success. Soutar (2006) divulged that the managers must know how the quality and satisfaction are resolute in their market place and how these two constructs are interrelated since without understanding the progression of apposite marketing strategies and service quality programs will be not possible. In addition, the quality and satisfaction should be examine in the market place with customers that means the organization should assume the suitable marketing research and have intense and long term quality and satisfaction measurement and monitoring programs that give management with information they require. According to O’Neill (2006) the triumphant organizations should capable to diagnose their customer expectations fully and gratify them completely during the each and every service encounter. Besides, the service leaders should have the eerie capability of understanding implicit and latent customer requirements.

Camison (1996) suggests certain steps for monitoring customer satisfaction for ensuring and increasing a service that is entirely cost effective to customers. He admits customer satisfaction surveys, which focus on analyzing the level of achievement in terms of customers expectations and care that is provided by hotel employees. The survey should able to understand customer’s needs the required skills for civilizing the service and reliability of provided care. This measuring of customer satisfaction facilitates identifying strategies for improving the quality of service and making appropriate updating of plans. The refinement of services according to the responses also requires attention for attracting more clients.

In addition, Jeomg and Oh (1998) explored that the hospitality industry has observed mounting competition for high service quality and customer satisfaction. In this era, most of the hospitality firms are applying one or two corporate quality management programs intended to improve service offerings and marketing retention. For instance, the world wide hotel Sheraton lately started the guest satisfaction system to improve the customer lodging experience and boost return rates. Likewise, the main part of this industry introduced a number of research paradigms such as SERVQUAL and LODGQAL. Additionally, service design or development service should highlight in every service quality and customer satisfaction program in the hospitality industry. The quality improvement program can give information to hospitality managers about the company performance and its customers, improvement in the service quality and customer satisfaction. Further, the hospitality industry approached a framework, Quality function deployment to designing new or modernizing extant services with a focus on external customer’s needs and internal service management requirements. The Quality deployment function (QDF) is a systematic approach planning the customer needs into definable and quantifiable product and process parameters using medium and other quantitative and qualitative techniques. Besides, the QDF model based on core matrix called quality of house and components of needs. The Quality of house used to interweave customer needs, service design or management requirements, target design goals and competitive product or service evaluations. As well, the house of quality comprises several constituents and each constituent need to built house in an orderly manner,

Certainly, one of the main challenges of management service industry is providing and maintaining customer satisfaction (Sum, 2004). Service quality and customer satisfaction have gradually recognized as key factors in the encounter for competitive differentiation and customer retention. However, customer satisfaction is dissimilar from the service quality. Service is the customer’s attitude or global judgment of company’s service over time but the customer satisfaction refers to a specific business transaction. According to Suo (2004) the main function of a hospitality organization is the staff should perform is the delivery of quality service to its customers. Service quality is defined as how well a customer needs is met and how the service delivered to meet the customer expectations. Service quality is the degree and direction of inconsistency between the customer perceptions and expectations, where as perceived service quality is the gap between customer’s expectations and perception as a measurement of service quality.

Ro and Chen (2010) stated that the employee empowerment results the improved service quality and guest satisfaction. Employee empowerment described as facilitating or allowing employees to make decisions to solve the customer’s issues by themselves. There are two factors should be considered are individual and organizational factors. The empowerment should be escorted by a careful recruitment effort to select empowerable employees who can be instilled with the skills and attitude favorable to exercising suitable and liable decision making.

According to the opinions of the higher authority of Star Bazar hotel, there are some implications which can improve the customer satisfaction. Primarily, the hotel managers should determine which service quality measurements lead to inferior levels of customer satisfaction during regular customer surveys. Regular appraisal can observe the effects of service quality programs. Secondly, hotel managers can introduce the levels of service quality obtainable across the hotel grades. Lee et al. (2004) illustrated that three star hotel managers can benchmark five-star hotels in five service quality measurements. As well, there are some strategic tools can be used to improve customer satisfaction such as institution of market oriented or customer oriented culture and the enhancement of organizational service orientation counting service leadership, customer focus, employee empowerment, service training and technology, service failure deterrence, service standards communication and total quality management. Thirdly, the managers should allot their resources into service encounter employees. Lee et al. (2004) further pointed out that, customer satisfaction is highly persuaded by the service contact employees’ attitudes and performance. Moreover, service delivery deviations reflect the individuals’ skills, aptitudes or other qualities of the contact employees and give a way to distinguish firm’s services and make a competitive benefit. Eventually, service value should be amalgamating decision-making construct for customers (Lee et al.2004). To make it clear, the consumers may cognitively amalgamate their acuity of what they get and what they should give in a service transaction so as to get a decision of whether or not to purchase from specified service provider. Hence, the marketers should give valuable information or customized product offerings with consumers in order to inspire them to purchase from precise service provider.

According to Namkung et al. (2010) customer’s complaints give managers with a chance to learn about the problems and take apposite remedial action to solve those problems. Further he explores that whether the customers react differently to the service failure at diverse stages and loyalty levels. Moreover, a survey done by Namkung et al. (2010) establishes thatmost of the consumers are likely to complain at any service stage following service failure. Highly loyal customers illustrate a considerably higher readiness to complain than less loyal customers while a service failure happens throughout the greeting or seating and order taking or delivery stages. Dining in a table service comprises several stages which consist a greeting from host, being assigned to table, ordering, receiving as well as consuming the food, paying the bill and exiting. Hence, recognition of service failure in particular stage is very imperative and also will allocate the managers to concentrate on the most critical areas. Subsequently, the managers will be able to resolve what level and type of action is requisite for each service stage to prevent consumers from switching to competitors.

Obviously, a services cape plays vital role in customers’ evaluation in particularservices (Lin, 2010). It is very significant as they persuade customers’ emotional and physiological states. Moreover, a services cape is composed of abundant elements such as the color, music, scent layout and design. Apart from that, services capes give significant atmospheric cues and evidence of the quality of the elusive parts of the service and customers depend on such atmospheric cues to form their first notion to evaluate a service organization earlier to having any interaction with service staff.

Ironically, there are some reasons for complaints that can arise from the consumers which include impersonal service, being treated improperly, having a problem resolved but not receiving regret, no responses to written complaints in correct time, faulty products, prolonged waiting times, busted promises, in appropriate procedures (Tantawy and Losekoot,2001). It seems to be that the main causes for complaints were failure to meet consumers’ anticipation or impoliteness by hospital staff. As well, the complaints are divided into four types like mechanical complaints, attitudinal complaints, service failures and unusual complaints. One of the costumer, who were interviewed state that they did not getting reply from the hotel staffs about their complaints at correct time. So, the managers should analyze the problems and sort it out the complaints those raised. Further, Tantawy and Losekoot( 2001) pointed out that there are some offers can be offer the customers to satisfy their complaints. Primarily, make repayment by offering a better room and provide admiring accommodation. Secondly, provide admiring food and beverage. Apart from that, hotel management can recognize guest complaints through a regular process which comprise appraisal of assistant manager and guest relation agents log books, assessment of guest comment cards and estimation of reports channeled through group’s head office. Furthermore, following general checklist will help to handle guest complaints such as listen the customer carefully, give the full attention to customer. Hotel staffs should maintain the eye contact with customers and if possible learn their name and try to use it. What is more, behave in a professional manner with the customer and should accept accountability for the problem. The managers should take instantaneous action to solve the problem and make sure the problem has been satisfactorily solved. Additionally, always thank the guest for fetching the complaint to the management’s attention.

In addition, one of the general manager who were interviewed explored that they are facing empowerment issues in hotel industry. Similarly, Sutton et al. (2003) also pointed out that empowerment issue of the hotel managers can affect the quality of service, customer satisfaction and financial implications. Empowerment is component in quality programs. Further, there are two approaches to the empowerment like empowering employees either to make and apply routine decision or to change the systems. Sutton et al. (2003) further explored that the middle management can be empowered by top management to motivate innovation and change. Similarly, the front line employees can be empowered to facilitate improvements, recognize and resolve the problems, satisfy customer requirements, remedy service failures and also employee benefit from improved job satisfaction through greater work variety, task identity, task importance, feedback and autonomy. On top of it, hotel managers should train the employees and empower them to handle the guest events on the spot and with good judgment promptly, professionally and courteously. This will help to improve the guest service, guest satisfaction and make a good working environment for the employees. Thus, implementation of empowerment programs is very important to improve the quality of service and customer satisfaction. Implementation of empowerment programs requires top management commitment, start soon, two-way communication, long term commitment and specific measurable goals, appropriate recruitment and training, selecting empowerable employees, performance related pay, rewards and identification to encourage initiative and support of a service oriented organizational culture.

Certainly, customer relationship management plays an imperative role in customer satisfaction in hotel industry (Inge, 2008). Subsequently, it makes the customers feel as personally welcomed, valued and cared by foreseeing and taking care of their all need. Customer relationship management has two benefits like stimulating more repeat business from existing guest during better alertness and satisfaction of their wishes, habits and preferences. The second benefit is using the knowledge to find new guests. In the same way, service attitudes plays vital role in customer satisfaction because of the close communication between the tourists and hotel employees (Kuo, 2007).

Chen et al. (2008) showcased that provision of healthy meals is an important factor to achieve good customer satisfaction. Restaurant design, food procurement, production, cost and labor management based on the healthy menu. When planning the menu, the manager should understand customer inspirations for wishing to eat balanced meal. Most of the customers feel that they should have the healthier food but they do not know where to start. They also experience that their healthy meal experience will be enhance by restaurant providing nutritional information. Nutritional knowledge is very essential to improve the customer satisfaction. Hence, the managers and chefs should accept the demands of customer’s about their healthy menu.

What is more, web technology advancement facilitates the online customers to express their apprehensions and negative incidents about the hotel services over the internet in special forums such as www.eComplaints.com and www.planetfeedback.com (Lee and Hu, 2004). The electronic consumers’ forums proffer the customers confidentiality as they share the negative experiences with the public. Apart from that, the electronic consumers forum was very popular for active online users and it had a comparatively long history of collecting consumers e-complaints. On the main web page of the electronic consumers forum have the full list of a lot of industry categories which consist of travel, communications, entertainment, utilities health care services and consumer products. Consequently, the customers can select a particular industry and register his or her complaints and allows the appellant to perform search queries, reads complaints, issue a complaint. The hotel industry section permits hotel customers to unreservedly converse service failures filling out the complaint information like company name, type of problem, date of incident, complaint log, and company response, contentment rate to the company response and the last sentence from the customer. Ultimately, a well trained graduate will collect the data from the complaint forum ((Lee and Hu, 2004). The electronic customer forum will help the customers issue their problems very fast and resolve their problems immediately.

If the complaints rose from the customer instantaneous and effectual complaint resolution program is significant (Allen and Bigger, 2005). Firstly, whether the complaint raise from the customer, the supervisor or manager should instantaneously meet with the customer not via telephone calls, voice mail or e-mails. The managers should visit the customer and converses face to face seek to see what they are seeing. Secondly, recover the problem immediately. To make it clear, as soon as the problem recognized, take step right way to resolve the problem. To exemplify, if an item kaput by the service staff, should reinstate the item before the customer return. If it is impossible, contact the customer immediately and should specify what you are doing and when the item will reinstate. When the item is reinstated, leave a nice note apologizing for the bother (Allen and Bigger, 2005). Thirdly, the mangers should respond in an appropriate manner. If the consumer complains about finger marks on the outside of a door, should clean any other marks that as that may be observable at the same time. Moreover, the managers or supervisors should record and track the nature, number and location the consumer’s complaint. If the consumer’s complaint is appropriate and realistic take the pictures of the complaint subsequently can be used for training purpose to improve the service quality. Subsequently, follow-up is necessary to avoid a reappearance of the complaint. Ultimately, training of all level is significant. The customer service envoy should needed training in listening and responding to consumers in proper manner (Allen and Bigger, 2005).

Galicic and Ivanovic (2008) avowed that a psychological approach of solving the all types of complaints of customers will help to improve the image of a hospitality competence. On top of it complaints of consumers managing by experienced people, creating the consumer feel that their oppositions will not be ignored. The author further illustrated that there are some methods which can resolve the customers’ complaints properly. When the customers are right, do not try to slither over the failing. Then, identify the reasons that have escort to a complaint. Further, the hotel staffs should apologize to the customers and express the regret for what is occurred. As well, when refusing the baseless complaints, try to find the reasons carefully and tell them to why the complaint was refused. After that show the guest the effects of the inquisition and should give the guidance to avoid the similar situation in the future (Galicic and Ivanovic (2008).

Besides, managing guest complaints have advantages of profit. A proper policy for solving complaints and objections can help to diminish the high costs of third person relationships or demands for recompense against imperfections and poor quality services (Galicic and Ivanovic (2008). Proficient decision of complaints and objections lead to significant sales to new guest. Similarly, this process has twofold economic effects. Firstly, by correcting the causes of mistakes or problems assist to improve the quality of products or services and those improvements reflect in increased sales. Secondly, there is a drop in overall costs of solving guest complaints and objections (Galicic and Ivanovic (2008).

Moreover, Galicic and Ivanovic (2008) introduced a model i.e. LEARN model to solve the guest complaints. In this model “L” stand for Listen to the guest, “E” stand for empathize with the guest, “A” stand for apologize to the guest, “R” stand for react to the guests situation and “N” stand for notify the manager responsible and monitor the process. Additionally, The LEARN model precisely assess the guest complaints and to correct the shortcomings. This model aid to solve the all problems in professional manner and help to make an atmosphere in hospitality facility and that will motivate the guest to express their complaints without uncertainty.

Research Methodology:

The outcome of each research basically depends on the type of research. The research methodology which is used in this research is descriptive –measuring of field study type. By following descriptive method, measuring method has been exploited for the study of distribution and stipulation of statistical sample, seminal the nature of conditions and relation between the events.

Population

Population connotes all elements and people who are share one common quality in a special geographical scale. The population of this research is all the customers who were stayed in the CHOR-BAZAR restaurant in London.

Sampling size

The number of the samples elected in proportion to the pertinent population for assuring the sweeping statement of the results of the sample from the whole population. In this research sampling size was premeditated by using the below formula.

n = Nt2 S2

Nd2 + t2 s2

n = Number of samples.

N= Number of population.

T2= Trust of 95%

S2= Pre-estimation of the variance of the other studies.

D2= Difference between the average of the sample and population.

Data collection tools:

In this research, the data collection tool was questionnaire. For the reason that questionnaire is one of the realistic and simple tool for collection of data.

Method of data collection:

In this research both primary and secondary data are used. Primary data includes questionnaires and the secondary data comprises theory subjects. For this purpose, books, e-journals, different databases such as CINHAL and SCIENCE DIRECT were used for theory subject.

Analysis

In this research, the researcher will apply different methods to analysis to answer the specific issue or to create a decision for accepting or rejecting theories.

The analysis and the estimation of the demographic questions of research:

In this segment, the allocation of the guests owing to gender, educational certificate, purpose of travel, the method of reservation and booking were estimated.

How was the guest distribution due to their gender in this study

According to the attained result from the above table 30%of total guests were valued as women and 70% were as men.

The attained result of the analysis of elaborating on male and female are figured in following pie chart.

Distribution of the studied hotel guests based on their gender.

Guests’ distribution of the studied hotels, based on their educational certificate in this research.

The estimated results in table which shows following graph.

The Guests distribution of the studied hotels on the purpose of their travel in this study.

The results in the table shows in following pie chart.

Distribution of the guests amid the studied hotel based on the method of reservation in this study.

The expected result in following pie chart is based on the method of guest reservation.

Interpretation and findings

Study of demographic questions and other research results:

First results shows that 30% of guest studied hotels were women and 70% guest were men. According to the second results the most of the guest held in Bachelor’s degree i.e. 50% and the least at the rate 4.4% with associate degree. In third results shows that the intention of travel to chor-bazar restaurant was 42% for leisure and 58% for business. It seems to be that most of the intention of guests was for business. As it is shown in fourth result, the frequency of hotel reservation for work has been done by the company at 50% and for pleasure by guests at 20%. It shows that at the allocation of questionnaires, the majority of reservation done through companies and travel agencies. Thus the hotel managers can plan for marketing, and should ready for rendering high quality services considering the age, gender, nationality, degree, taste and number of guests.

Conclusion:

To put it in a nut shell, now a day’s business pays more attention to customer satisfaction due to the compel from competition with similar markets. This can achieve through offering good services to clients by creating pleasurable atmosphere, treating clients as guests, resolving their complaints very quickly etc. Their level of satisfaction should be monitored frequently by responsible staff and keep in touch with them definitely increases the profitability and dignity of respective organization. Moreover, customer relationship management plays an imperative role in customer satisfaction in hotel industry. The mangers should resolve the customer’s problem to improve the customer satisfaction.

Suggestions:

A proper policy for solving complaints and objections can help to diminish the high costs of third person relationships or demands for recompense against imperfections and poor quality services. Moreover mangers can solve the customers problem through a model i.e. LEARN model to solve the guest complaints.

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