Marketing Practices and Consumer Satisfaction in the Hotel Industry

Marketing Practices and Consumer Satisfaction in the Hotel Industry (A Case Study Of Abia Hotel Ltd. Umuahia)

These are lots of work done in this area of consumer satisfaction. Its mention is to made of all, there would not be enough space and time. We would therefore limit ourselves to a reasonable volume. With the past few years, there has been a notable single of interest in the concept of consumer satisfaction. In Nigeria, several seminar has been held on this subject.

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A case in hand was the one that took place in April 1977 at the Federal palace hotel on the standard hotel performance. the subject of consumer satisfaction is such a vast area that nearly all academic discipline have approached it from their own perspective discipline (psychologist, sociologist economic geographers and others).

2.2     REVIEW OF RELATED LITERATURE

          The book of John Milar (1771) is used here because he was also to combine theories from most these discipline, to descried the work. He developed a model for understanding discontent in his work. He was able to classify consumer discontent under three categories thus:

  1. Discontent as a result of drop in quality of goods as well as the loss of pride of workmanship in goods and services.

2        Magnify the difference between the product received, and the product expected.

3        Generalized negativity: As any discrepancy between expectations and reality results.

4        Assimilations contrast: As zones or latitudes of acceptance and rejection in consumer perception.

The experiments related that there is a point beyond, which consumers will not accept increasing disparity between product and actual performance. According to Buslarit and rothe one of the ways of explaining consumerism in this concept is using the sense of frustration much and have realized less, this may properly be called the driving force behind consumerism.

Another of though worked in the development of marketing on the development of marketing concept and come up with their result as the basis for providing satisfaction a object a company’s goal.

Martneau also out that in the world of advertising and markets research are most continually encounter one particular slogan which is “market are people”. He also said that human beings are dynamic complex creatness irrational at least as often as rational, maturated in large by emotion habit and prejudice differing deally in personality structure in aspiration.

Disconnect as a result of decrease in options

Disconnect as a result of decrease in options available. The study also revealed that satisfaction is primarily a function of the interaction between expectations and performance evaluations. That history his learning and experience part successes and failures as well as his level of aspiration a system of expectation that consists of what ought to be and what probably will be. He however stated the limit forces as the individual measures performances of the product or services the modified his prior set of expectations in an updating feed back like process of dissonance reduction, nationalization or elective expectations.

Infact, there has been other research work to confirm this, in the work of Ralph Andersion, he used four psychological theories to develop his work. There are:

i         Cognitive dissonance

ii        Contrast

iii       Generalized negativity

iv       Assimilation contract

1        Cognitive dissonance: He used this as any discrepancy between expectations and product performance that will be minimized.

  1. Generalized: As a customer who will in all he was saying that business successes depends on the ability to know the total name them get his needs thus is what is called consumers, express satisfaction because his needs were meet as a result profit were maximized. Rich and join used social class is a significant factors in determining consumer behavior. These of the same class always want to be consistent with the product or service they use. It is this perception of self that produces satisfaction researcher have been satisfaction in general the relationship between only modest. Improvement beyond chance in discriminate analysis of satisfied versus, dissatisfies consumer has been made possible by use of demographic characteristics as studied by Kjell.

Kolter (2014) also wrote about this concept. He said that the marketing interrogated marketing aimed at general customer satisfaction as the key to satisfy organizational goal. Research work has been done focusing on the study of consumer behavior as a means to understanding consumer behavior or dissatisfaction.

Another work conducted by Andrew and whitening (2013) observed as strong relationship between satisfaction in there has be found to be significantly greater among persons high in his self esteems she feel competent and effective and who demonstrate trust in others. in summary most of these research work have been related to various demographic, socio-psychological, none treated the topic with respect to the management of marketing practices within a given marketing characteristics.

Consumer satisfaction is considered as a right by every individual irrespective of the market characteristics. From experienced it is not so. The area of consumer satisfaction vary with the market characteristics. Market characteristics core refers to the satisfaction in which demand and supply play the key role reading to a state of either a buyer or a seller market. There is buyers and sellers market of which Nigeria is in the later. The characteristics of these markets can be formed in imoisillis work. The second concept is the management of marketing mix-marketing mix are used o appeal to particular market segment.

The idea came form cultivation who in 1948 described the marketing administrator as a “decide” book west on to popularized the concept around a four ways classification of product, price, place and promotion. We also brought out the idea that marketing management is management at the level of individual firms of the operational marketing activities which concepts of implementation of strategies which consents of implementation of strategies relating to the marketing mix.

Another interesting work done on this concept is that by position and Reynolds. They were able to show that there is a logical basis for developing a model of the marketing mix which shows the result of operations themselves. The market mix is an equivalent to a market offering the total beside of satisfaction of the utility for which buyers engage in transaction in order to obtain the necessary utility. By equilibrating the marketing mix with the market segment become central to the view point and hence customer orientation. Thus, the central placement of the consumer therefore requires a causative approach to the development of the marketing mix. I intend to carry out my study. Sales promotion is one of the element of promotion mix. It has always been viewed as playing a secondary role of the major tools of advertising and personal selling get the tool can make a major contribution to marketing performance. The recent high rate inflation and consumer structural adjustment of consumption pattern in response to the change in the economy has led to the rapid growth of scale promotion as an effective sales tool and companies uses this promotional tool more value in the market place.

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Different authors have defined sales promotion and in the American marketing association sales promotion is define as “media and no media marketing pressure applied for a pre-determined, limited period of time at a level of consumer, retailer, or wholesales in order to stimulate trails increase consumer aimed or improve products availability. According to Kotler (1988-20) sales promotion companies a wide variety of tactical promotion cola of a short term incentive nature, designed to stimulate earlier and or storages target market response. In the words of Ahumba and Osugwu (1994:150) sales promotion programmes are those activities other than personal selling advertising and public relations that stimulate consumer /client purchasing and dealer effectiveness sales promotion activities are also promotion as all other forms of sponsored communication apart form activities associated with personal selling. These include trade shows, exhibit, coupling, sampling presumes, trade allowance. Sales and dealer incentives, consumer education and demonstration activities rebates, bonus, packs points of purchase material direct mail. Also according to Dransifield (1991:9) sales promotion describes a category of techniques which are designed to encourage customers to make a purchase, they usually complement advertising, personal selling and publicity. They might include point of sales materials competition, demonstration and exhibitions. The essential features of sales promotion is that if is a school term inducement to encourage customers to react quickly. Sales promotion covers a wide variety of short term incentive tools armed art stimulating the consumer market the organizational own sales promotion covers many separate activities the more significant if which are showing gain in usage. Some indication of the measure in the use of these major devices can be seen by the following facts. Premiums at traffic building and purchase inducement increased 80% from 1957 to 1962 according to the findings of Vitello (1963:7) in United States of American.

Couponing rose 4.52 in 1957 – 1960. According to Kolter and Armstrong (1996:510) in their finding sales promotion accounts for 75% or more of all marketing expenditures in the U.S Burther (1986:7) defines sales promotion as any behavior triggering temporary incentive aimed at consumer channel members or sales personnel. Sales promotion is generally to achieve “doing” objectives.

However, the behavior are used really to achieve “learning or “feeling) objectives. Also learning may be incidental to purchasing e.g. a sales promotion for at themes weekend break will obviously only succeed. If customer process promotional information. The term “temporary”   in the definition can be stated arbitrarily as a period not longer than 3 months beyond this period promotion runs the danger of becoming an expected park of the product and losing their incentive value. Basically, sales promotion as an attempt to the price value relationship for the product or serious for a limited period of time. it is a communication process, with a short incentive nature and it also moves product towards the buyers and keep dealers and sales people enthusiastic about special promotion.

Strong (1976:915) said sales promotion are usually directed to one or more of these audiences consumers dealers or salesman Kotler and Armstrong (1996:510) agreed with strong. They described consumer promotion as sales promotion designed to stimulated consumer purchase, including samples coupon, rebates, prices off premiums, patronage rewards, displays and premiums, patronage rewards, displays and contests and sweeptakes. Trade promotions refer to sales promotion designed to gain reseller selling efforts including discounts. Allowances, free goods corporate advertising, punch money and convention and trade shows. Sales force selling is more effective like bonuses content and sales allies etc.

Sales promotion tools vary in their purpose and objectives. Kotler and Armstrong (1996:570). A management advisory services content a long term relationship with a retailer sellers use sales promotion to attract new trials to rewards loyal customers and top increase the repurchase rates of occasional users.

Also competitions, vouchers and trading stamps would be designed to build customers, loyalty and perhaps increase the volume purchased by existing customers. The techniques of sales promotion makes those contributions to exchange relationship.

  1. Communication: they gain attraction and usually provide information that may lead the consumers to the product.
  2. Incentive; They incorporate some concession, inducement or contribution designed to represent value of the receiver incentive promotion are adopted by sellers to attract non-brand users by try band or reward brand loyal users for their loyalty.

3        Invitation: They include a district invitation ot engage in the transaction now sales promotion objectives will vary with the type of target market (Kotler and Armstrong) 1995:510.

4        For consumers: Objectives will include encouraging more usage and purchase of large size units by users or to help build long term market share. To entice consumers to try a new products, lure consumers and reward loyal customers, consumers promotion includes, sample coupons rebates price off premiums, patronage reward, displays and context and sweepstakes.

5        For retailers: Objectives includes retailers stocking of new items in large volume encouraging of season buying encouraging stock of related items, off sellers competitive promotions, building brand loyalty of retailer, gaining entry into new retail outlet. Trade or retail promotion includes discounts allowances, free goods corporative advertising push- money convention and trade shows.

6        For sales in off season: It is designed to going sales in off season, it is designed to motivate the sales force and make sales fore selling efforts more effective, including business, contests and sales rallies.

Stanley (1982-71 stated that marketers draw on sales promotion activities and materials to achieve the following objectives:

i         To identity and attract new customers

ii        To introduce a new product

iii       To increase the total number of users for an established branded

iv       To encourage greater usage among current customers

v        To obtain more better shift space and display

vi       Educate consumer regarding products improvement

vii      To being more customers into retailer stores.

Also according to pride and Terrel (1987:55) some of the objective of sales promotion are designed specifically to stimulate reseller demand and effectiveness some focused on both resellers and consumers.

Strange (1976:915) concluded in his research works that the general sales.

Promotions objectives is to achieve long term sales. These stated that the combination of advertising and sales promotion may be valuable in introducing new modified brand or it may help boost brand and sales that are already increasing. Marketers should ensure that the sales promotion objectives are in line with overall, organization objectives.

The consumer is a problem solve, and to this information is important. Sales promotion is one source of information which needs to be presented to proper pathological terms for it to be effective the role of expectation in predicting the behavior of economic agents has long been widely accepted in the economic literature Muth (1961:9) Nelson (1977:12) in marketing, the study of the impact of price expectation and consumer choice behavior has begun to receive increasing attention in recent years. Introducing a product of a lower them regular price and there rising the price, after words to its regular level has been shown to have an adverse effect on subsequent sales.

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The reason is that consumers come to adopt he low introductory price as a reference and consider the regular price to be in acceptable greater than the price they expect to pay (Dore etal. 1969) Manohar that promotion explanations are just as important as price expectations are in understanding consumer purchase behavior consumer who have been exposed to frequent price promotion in support of a given brand may come to form promotion expectations and typically well purchase the brand only when it is price promotion.

The view was also supported to Tversky and Kahnemen (1974:11) according to them, when the frequency pat price promotion is “very low” consumers identify a price promotion offers as an exceptional event and may not modify the brands expected price Delta bitta and Morse (1980:51) found that consumer perceptions of saving from a promotional offer do not differ significantly between 30%, 40% and 50% discount levels. However they find significant differences between the range of 10% and 30% to 50% levels. They also discussed some manager beliefs that at least at 15% discount is needed to attract consumers to sale.

Lattin and Bueklin (1989:9) reported fining suggesting that “consumer expectations about future promotional activity are just as important to understanding consumer choice behavior as consumer expectations of price.

When a brand does not offer a promotional deal that a consumer has come to expect the choice occasion was referred to as “unfilled promotion expectation event “as the choice (Manner and Chlcinyim (1992:99).

Clearly, unfulfilled promotion expectation event will have an adverse effect on consumer brand purchase probability. Analogously, they define an “unexpected promotion event” as the choice occasion when a consumer encounters a price promotion on a brand has engaged in minimal promotional activity. Obviously, unexpected promotion events will affect brand purchase probability positively.

 

 

Measure of loyalty:

High quality products and associated service designed to meet customer needs will create high level of customer needs satisfaction. This high level of satisfaction will lead to greatly increased customer loyalty. And increased important driver of is the single most important driver of long term financial performance. Thomas and Farisesser (1995.88) separable research has validated these beliefs.

Thomas and Eari Sesser (1995) stated further that merely satisfying customers who have the freedom to make choice is no enough to keep them loyal, the only customers are totality satisfied customers.

Broadly, speaking customer loyally is the feedings manifest themselves in many forms of customer behavior. The unlimited measure of loyalty of course is share of purchase in the share of closet and in the restaurant business as Teso Bell president and CEO John, Martin says, it is “share of stomach”. Unfortunately. Such information is rarely available at the individual customer level. But there are grouped into three major categories. In tent to repurchase: At anytime in the customer relationship, it is possible to ask customer about their future intentions to repurchase a given product of service. although their responses are simply individuals of future behavior and are not assurances, they have very important benefits, making it relatively easy to lent intentions and satisfaction for analytical purpose. The fact that intent to repurchase can be measured at any time in the consumer relationships make it especially valuable in industries with a long repurchase cycle. Finally, intent to repurchase actually is a very strong indicator to future behavior. Although this measure will generally overstate the probability of repurchase the degree of exaggeration usually is fairly consistent meaning that the future results can be predicated fairly accurately. For example, an average of 60% to 80% of automobile customers quarried 80 days after buying a car say that intend to repurchase he same brand and 35% to 40% actually do so three or four years later, Thomas and Sasser (1995:99).

  1. Primary behavior: Depending on the industry, companies often have aces to information on various transaction at the customer level and can measure five categories that show actual repurchasing behavior; regency, frequency, amount retention and longevity. Although they are important measures of overall shame and are most useful as an indication of change overtime.

2        Secondary behavior: Customer referred endorsement and spreading the world are extremely important forms of consumer behavior for a company, Thomas and Sasser (1995:88) Achumber (1996:51) in most products and service categories, world of mouth is one of he most important factors of acquiring new customers. Frequently, it is easier for question about whether he or she would recommend the product or service such indications of loyalty obtained through customer survey, are frequently ignored because they are soft measures of behaviour that are difficult to link to eventual purchasing behaviour.

However, since secondary behaviour significantly leverages the position experience create such behaviour “when you treat a customers so well he or she goes out and tells five friends how great it is to own your products, that’s when you are doing it right say cook, co-founder and chairman of he board of intuit, maker of question a financial software.

The loyalist and the apostle: In most cases, the loyalist is completely satisfied and keeps returning to the company. The loyalist is a companies bedrock. He customers need and the company’s product or service offering fit exceptionally often are the easiest customers to serve.

Within the loyalist camp are individuals who are so satisfied, whose experience so far exceeds their expectations, that they are apostle. Thomas and Sesser (1995:99).

Sales promotion consists of adverse collection of incultive tools, mostly short term designed to stimulate quicken and / or grater purchase of a particular product / services by customer / client. Kolter (1988:16) is of the view that where as advertising offers a reason to buy, sales promotion offers an incentive to buy. examples of sales promotion activities and free samples, price reduction, competition, catalogues extended credit, bones, sales literature special discount or rebates, diaries and calendar events etc.

According to Faster (1982:221) sales promotion activities makes valuable contributions to marketing effectiveness by supporting advertising and personal selling activities and that in most cases this is the role that hey perform.

He suggested that the effects of advertising should ensure that the effects of advertising should ensure that some of the additional gain from sales promotion are to be held in long term. Donald (1971:40) stated that regardless of the exact techniques. Sales promotion should accomplish four fundamental tasks.

  1. Sales promotion objectives should relates to overall marketing objectives and should be clearing measurable.

2        Sales promotion techniques should be used to supplement personal selling and advertising efforts.

3        Sales promotion like other promotion form should attract attention among these people they are intended to influence.

4        A sales promotion should request an order.

According to trim attracting initial attention is not enough by itself sales promotion must in some ways seek to close the sales.

There must be readily reorganisable link between the promotion and desirability of buying the particular product. Buzzel (1988:48) emphasized on the following reasons why sales promotion are being used.

  1. They are useful in securing trial for new product hand in a defending self space against anticipated and existing competition.
  2. Sales promotion allows manufacturer to price discrimination among consumer segment that vary in price sensitivity.
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3        Sales promotion allows manufacturer to use idle capacity and to adjust to demand and supply imbalance, a soften in raw material prices and other input lost, white manufacturing he same list price.

According to Roger A. Strangs (1976:4) there are factors that influence managements decision regarding to he use and form of sales promotion.

  1. a) Stage in the circle

Product requires different promotional strategies as they move through the various stages of their life circle-since the pro-motional objectives are different form new products compared with nature products. For instance, the stage in the life cycle of a product is significantly. Influence a company’s promotion mix and in particular. It’s advertising a promotion strategy Achumba I.C. and Osuagwu C. (1994:139).

  1. Introduction: Both advertising and promotion are crucial during the introduction stage of a product life cycle. Sales promotion is a key element in securing initial distribution for new product while intense advertising inform consumer deals and sampling may also induce consumer trial of the new product.

2        Growth Stage: This is when sales are increasing at a rate greater than 5% annually. At this stage competing brands enter the market thus making it crucial for the company to stimulate demand for it’s on brand purchasing of the product aggressive is a weapon.

  1. Maturity stage: Intense competition within the products or brands market. Characterizes the maturity stage of life cycle competition is indeed intense. Consumer brand loyalty will more dictate the company’s advertising with dominate when a high degree of loyalty is apparent sales promotion will dominate when a low degree of consumer loyalty exists.

4        Decline stage: Sales generally fall more than 5% annually during the decline stage of the product life cycle. Advertising and sales promotion efforts usually drop dramatically during this stage may eventually at the trade (e.g allowances, discounts, to maintain distribution).

  1. b) Competitive activity: As the life cycle analysis suggest an awareness of level of competitive activities is crucial in planning an effective sales promotion strategy.
  2. c) Industry practice: Strength (1978:124) reported that the growth in promotion spending is not simple a matter of increased expenditure by promotion techniques. Several executive reported an increased willingness by senior management to view promotion as an acceptable marketing activity

The appointment of more executive with better qualification to position of responsibility for promotion has also helped its growth widespread adoption of the product manager system has also encouraged increased in promotion spending. An increase in number of new brand in recent years are since more consumer goods rely heavily on promotion for introduction may also suggest as reason for an increase in promotion functions.

According to Kotler and Armstrong (1996:510) many tools can be used to accomplish sales promotions and trade promotions is decked more to retailers and wholesalers than to customers. The main consumer promotion. Tools involve sample’s coupons, each refund price, packs, premium advertising specialties, patronage rewards, point of purchase display and demonstrations and contest, sweep states and games.

Coupons are certificates that gives buyers a savings when they purchase specified products, coupons can be maid, included with others products or placed in adverts. They can stimulate sales of a mature brand or promote early trial a new brand. Cash refund offers (or rebates) are like coupons expect that the price reductions occurs after the purchase rather than at the retail outlets. The consumer send a “proof a purchase” to the manufacturer, who then refunds part of the purchase price. Price parts which is also known as (cents off deals) offer consumers savings off the regular price of a product. The reduced prices are market by the producer directly on the label or package price packs can be single packages sold at a reduced price (such as two off the price of one) or shelf space is so price off, allowance, buyback guarantees, or free goods to retailers and wholesalers to get on the shelf and, once there to say in.

Edward Meyer (1988:18) said some sales promotion have an impact on adults and the children market among the sales promotion for consumers some have been tested to most effective. Example, those that assist initial trial of new product are free samples and free coupon for adult. In some premium are also used for children. There are some that reinforce a product image. They are sweep stakes and self-liquidation, premiums. A combination of all these might be powerful e.g coupon added to a free sample or use of a coupon that allows one into a sweep states. All these device can shape new behaviour and reinforce existing behaviour.

2.3     SUMMARY OF LITERATURE REVIEW

The success of a promotion program depends on the objectives sit at the inception of the program. Hence according to Hardly (198:30). The first task of the promotion manage is to define the objectives against which performances will be measured. Efforts should be made to assess the strengths and weakness of the promotion plan with objectives of cataloguing experience of use in future planning. Duts (1981:9) however said that low priority is accorded rigorous evaluation of marketing programmers, which results in failure to learn from experience. The therefore suggested that management should not only demand evaluation also see to it that standards and procedures for evaluation are set an adhered to.

Kotler and Armstoron (1996:88) are of the opinion that both the sale effects of promotion should be evaluated. However, Kotler (1988:25) suggested that the following methods as ways o evaluation promotional programs.

  1. Company sales volume before during and after the promotion.
  2. Consumer panel data this would reveal the kind of people who responded to the promotion and what they did afterwards.
  3. Consumer surveys could be conducted to learn how many people recall promotion of advertisement, what they though of it and to forth.

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