University of Nottingham

The Dark Side of Customer Relationship Management in the Luxury segment of the Hotel ndustry

!kshay "aipuria

M! Management

Abstract
Today# servi$e organi%ations are shifting their fo$us from &transa$tional ex$hange' to &relational ex$hange' for developing mutually satisfying relationship (ith $ustomers) *xtended relationships are reported to have a signifi$ant impa$t on transa$tion $ost and profita+ility# and $ustomer lifetime value) Serving the $ustomers# in true sense# is the need of the hour as the $ustomer (as# is and (ill remain the $entral fo$us of all organi%ational a$tivities) The hotel industry# espe$ially the luxury segment hotels needs to +e purely $ustomer,$entri$ and fo$us on the $ustomer needs and duly fulfill them) Customers (ill not +lindly a$$ept poor servi$e -uality from a luxury hotel) They expe$t high -uality of servi$e in return for the money they spend on luxury hotels) This paper is an attempt to explain the dark side of CRM in the luxury segment of the hotel industry (ith the help of the .gap model/ availa+le in literature (hi$h suggests that gaps in servi$e o$$ur at various instan$es) The author explains that the gap model is a useful tool to explain the dark side partly) There is more to the dark side like priva$y issues# un(illingness of $ustomers to +uild a relationship (ith the servi$e provider and $hanging tastes and preferen$es of the $ustomer) Rit%, Carlton Hotel Company# L)L)C) has +een $hosen as a single $ase study and the resear$h -uestions have +een addressed for the industry at large using Rit%, Carlton as a $lassi$ example of superior servi$e -uality to the $ustomers) Some simple measures to redu$e the dark side have +een mentioned# (hi$h addresses the third and last resear$h -uestion) The pro0e$t (ould $ontri+ute as a useful guide to luxury hotels# giving them some valua+le information on (hat the $ustomer expe$tations are and if they are duly met then servi$e gaps shall not o$$ur) This paper shall provide s$ope for luxury hotels to improve their overall servi$e -uality and strengthen their position in the industry) The relevant existing theory has +een revie(ed and the su+0e$t has +een explored# using the .gap model/ 12arasuraman et al 34456 mainly) 7ased on the resear$h findings and analysis#

re$ommendation has +een given to redu$e the dark side at Rit%,Carlton and luxury hotels in general)

Table of Contents
ABSTRACT.....................................................................................................................................................2 TABLE OF CONTENTS...............................................................................................................................3 ACKNOWLEDGMENTS.............................................................................................................................. C!A"TER #$ %NTROD&CT%ON.................................................................................................................' C!A"TER 2$ L%TERAT&RE RE(%EW.....................................................................................................) 8)3 9H!T S CUST:M*R R*L!T :NSH 2 M!N!;*M*NT<))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))5 8)8CUST:M*R S!T S=!CT :N# L:>!LT> !ND 7US N*SS 2*R=:RM!NC*)))))))))))))))))))))))))))))))))))))))))))))))))))3? 8)@ CRM !ND S*RA C* BU!L T>))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))3C 2.3.1 Customers perception of quality:..............................................................................................14 2.3.2 The Perceived Service uality approach...................................................................................1! 2.3.3 "aps #et$een customer e%pectations and perceptions:.............................................................1& 2.3.4 Service "uarantee......................................................................................................................2' 2.3.' Service (ecovery.........................................................................................................................2! 2.3.) Complaints mana*ement............................................................................................................2+ 8)C D: !LL CUST:M*RS 9!NT ! R*L!T :NSH 2 9 TH TH* R S*RA C* 2R:A D*R<)))))))))))))))))))))))))))))))))@? 8)D S>N:2S S)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))@8 C!A"TER 3$ CRM AND !OTEL %ND&STR*.......................................................................................33 C!A"TER $ MET!ODOLOG* AND RESEARC! DES%GN.............................................................3' C)3 :A*RA *9)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))@D C)8 R*S*!RCH :7"*CT A*S)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))@D C)@ R*S*!RCH D*S ;N)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))@E C)C C!S* STUD>F !N NTR:DUCT :N))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))@G C)D H ST:R> := C!S* STUD>))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))@5 C)E T>2*S := C!S* STUD>)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))@5 C)G CH: C* := C!S*F R TH,C!RLT:N H:T*L C:M2!N>)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))@4 C)5 C:M2:N*NTS := TH* C!S* STUD> )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))@4 C)4 D!T! C:LL*CT :N))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))C? 4.+.1 ,ocumentation ...........................................................................................................................42 4.+.2 -ocus "roups..............................................................................................................................42 4.+.3 .ntervie$s....................................................................................................................................44 C)3? D!T! !N!L>S S )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))D? C)33 I*> SSU*S := D!T! C:LL*CT :NF R*L !7 L T># A!L D T> !ND L M T!T :NS)))))))))))))))))))))))))))))D? C)38 S>N:2S S ))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))D8 C!A"TER '$ CASE ST&D* .....................................................................................................................'2 D)3 R TH,C!RLT:NF !N :A*RA *9))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))D@ D)8 R TH,C!RLT:N !ND TH* &;:LD ST!ND!RDS' := S*RA C* BU!L T>))))))))))))))))))))))))))))))))))))))))))))))DD '.2.1 The Credo...................................................................................................................................'' '.2.2/otto.............................................................................................................................................'' '.2.3 Three Steps of Service.................................................................................................................')

'.2.4 Service 0alues.............................................................................................................................') '.2.' 1mployee Promise......................................................................................................................'! D)@R TH,C!RLT:NF CURR*NT R*!L T>)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))DG C!A"TER +$ RESEARC! F%ND%NGS.....................................................................................................', E)3 =:CUS ;R:U2S = ND N;S))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))E? ).1.1 ,oes the *ap model e%plain the dar2 side of C(/3..................................................................)4 ).1.2 .s there more to the dar2 side of C(/ than $hat is e%plained in the *ap model3......................)2 ).1.3 5o$ can the dar2 side of C(/ #e reduced3..............................................................................)3 E)8 N,D*2TH NT*RA *9 = ND N;S))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))EC ).2.1 Customer .ntervie$s...................................................................................................................)4 ).2.2 1mployee .ntervie$s....................................................................................................................)& C!A"TER )$ ANAL*S%S OF RESEARC! F%ND%NGS.........................................................................)G)3 D:*S TH* ;!2 M:D*L *J2L! N TH* D!RI S D* := CRM<))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))G3 !.1.1 (it67Carlton and the 8"ap model..............................................................................................!1 !.1.2"eneral .nference for the lu%ury hotel sector...............................................................................!) G)8 S TH*R* M:R* T: TH* D!RI S D* := CRM TH!N 9H!T S *J2L! N*D N TH* ;!2 M:D*L<))))))))))GG !.2.1 9illin*ness to #uild a relationship.............................................................................................!! !.2.2 "eneral .nference for the 5otel .ndustry...................................................................................&4 G)@ H:9 C!N TH* D!RI S D* := CRM 7* R*DUC*D<)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))5? C!A"TER .$ CONCL&S%ON AND F&RT!ER RESEARC!................................................................3 REFERENCES..............................................................................................................................................' A""END%CES...............................................................................................................................................,3 !22*ND J 3 C:NS*NT =:RM)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))4@ !22*ND J 8 CRM !ND .!T TH D*A: 7H!A!/))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))4E !22*ND J @))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))45 !22*ND J C))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))3?3 !22*ND J D))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))3?4

Ac/no0le123ents
1ducation is a pro*ressive discovery of our i*norance. 9ill Durant 1355D,34536 U)S) author and historian

(ould like to thank all those (ho helped me through the pro0e$t phase of the M! Management program) (ould like to express my sin$ere appre$iation to my supervisor# 2rof) Dave 9astell for his enlightenment of my kno(ledge of CRM and the hotel industry# valua+le advi$e and kind support throughout the pro$ess of dissertation $ompletion Most importantly# (ould like to thank my parents and sister (ho (ere al(ays there to motivate me) (ould also like to thank my $lose friends at Nottingham for +eing around to dis$uss my ideas and giving me emotional support (hen (as stressed)

(ould like to thank all the fo$us group mem+ers for giving their valua+le time and thoughts to my pro0e$t)

(ould like to thank all the $ustomers and employees of Rit%,Carlton for sharing their valua+le thoughts (hi$h helped me shape this pro0e$t)

Lastly# (ould like to thank the a$ademi$ and li+rary staff at University of Nottingham for their support throughout this year)

C4a5ter #$ %ntro16ct7on
n the mid,t(entieth $entury# mass produ$tion te$hni-ues and mass marketing $hanged the $ompetitive lands$ape +y in$reasing produ$t availa+ility for $onsumers) Ho(ever# the pur$hasing pro$ess that allo(ed the shopkeeper and $ustomer to spend -uality time D

intera$ting (ith ea$h other (as also fundamentally $hanged) !s a result# $ustomers lost their uni-ueness +e$oming an &a$$ount num+er') Shopkeepers lost tra$k of their $ustomers/ individual needs as the market +e$ame full of produ$t and servi$e options) Many $ompanies today are striving to re,esta+lish their $onne$tions to ne( as (ell as existing $ustomers to +oost long,term $ustomer loyalty 1Chen and 2opovi$h# 8??@6) The (orld has $ome full $ir$le from selling to marketing and from seller/s market to +uyer/s market) The $ustomer today has the option to +uy (hat he thinks he should and from (hom# +eing in his +est interest) 2rodu$t development# te$hnologi$al improvement# $ost optimi%ation and ex$ellent servi$e fa$ility are very important for any organisation +ut their importan$e is only if the $ustomer appre$iates it) =or example# +oth diamond and $oal are $ar+on +ut they are pri$ed differently due to different valuations +y the $ustomer) Therefore# any +usiness +egins and ends (ith the $ustomer 1Sugandhi# 8??86) Thus# servi$e organi%ations are shifting their fo$us from &transa$tional ex$hange' to &relational ex$hange' for developing mutually satisfying relationship (ith $ustomers) *xtended relationships are reported to have a signifi$ant impa$t on transa$tion $ost and profita+ility# and $ustomer lifetime value) Serving the $ustomers# in true sense# is the need of the hour as the $ustomer (as# is and (ill remain the $entral fo$us of all organi%ational a$tivities)

The paper explores &The Dark Side of Customer Relationship Management 1CRM6 in the Luxury segment of the Hotel ndustry' using the .gap model/ of 2arasuraman et al 1345D6 and suggests generi$ strategies to redu$e the dark side) The resear$her (as motivated to $hoose the hotel industry +e$ause of his deep rooted passion for luxury hotels) The importan$e of this resear$h is that it helped the resear$her familiari%e himself (ith the use of primary (ith a +lend of se$ondary resear$h to analy%e a given situation) This pie$e of (ork shall $ontri+ute to the a$ademi$ $ommunity as there is not mu$h literature availa+le on the dark side of CRM for the luxury hotels) t shall also +enefit the management of luxury hotels to understand (hat the $ustomer expe$ts in terms of servi$e -uality)

The aim of this resear$h is to highlight the dark side of CRM in the luxury segment of the hotel industry using The Rit%,Carlton Hotel Company as a $lassi$ example of high servi$e -uality) The resear$h o+0e$tives are as follo(sF 1. Does the gap model explain the dark side of CRM? 2. Is there more to the dark side of CRM than what is explained in the gap model? 3. How can the dark side of CRM be reduced? This paper is divided into seven $hapters) C4a5ter one is an introdu$tion to the paper) C4a5ter t0o provides the reader (ith ne$essary literature availa+le on CRM) C4a5ter t4ree provides information on CRM and the hotel industry) C4a5ter fo6r dis$usses the resear$h design in$luding intervie(s and fo$us groups that have +een used for primary resear$h) C4a5ter f78e provides an overvie( of The Rit%,Carlton Hotel Company ) C4a5ter s79 provides a summary of the resear$h findings) C4a5ter se8en is an analysis of the resear$h findings addressing the resear$h -uestions# one of (hi$h provides re$ommendations to redu$e the dark side) C4a5ter e724t is a $on$lusion of the paper) The follo(ing $hapter provides the literature revie()

C4a5ter 2$ L7terat6re Re87e0

Modern marketers are redis$overing the an$ient mantras for su$$ess in $orporate (orld and +lending them (ith $ontemporary marketing pra$ti$es) Long term survival and $ompetitive advantage $an only +e attained +y esta+lishing an emotional +ond (ith the $ustomers) ! shift is taking pla$e from marketing to anonymous masses of $ustomers to developing and managing relationships (ith more or less (ell kno(n or at least some identified $ustomers 1;ronroos# 344C6) This se$tion shall provide general literature on CRM and its link (ith $ustomer satisfa$tion# $ustomer loyalty and +usiness performan$e follo(ed +y literature on CRM and servi$e -uality in details) The .gap model/ shall +e introdu$ed and literature on servi$e guarantee# servi$e re$overy# and $omplaint management shall +e provided) This (ould lead to the priva$y issues related (ith CRM)

2.#

W4at 7s C6sto3er Relat7ons475 Mana2e3ent:

Customer Relationship Management 1CRM6 &is the $ore +usiness strategy that integrates internal pro$esses and fun$tions# and external net(orks# to $reate and deliver value to targeted $ustomers at a profit) t is grounded on high,-uality $ustomer data and ena+led +y T' 17uttle# 8??C6) CRM is a +usiness strategy to identify# $ultivate# and maintain long,term profita+le $ustomer relationships) t re-uires developing a method to sele$t your most profita+le $ustomer relationships 1or those (ith the most potential6 and (orking to provide those $ustomers (ith servi$e -uality that ex$eeds their expe$tations) 1M$Donald# 8??86 !n organi%ation/s survival depends largely on harmonious relationships (ith its stakeholders in the market) Customers provide the .life,+lood/ to the organi%ation in terms of $ompetitive advantage# revenue and profits) Managing relationships (ith $ustomers is imperative for all types and si%e of servi$e organi%ations) ! sound +ase of satisfied $ustomers allo(s the organi%ation to move on the path of gro(th# enhan$e profita+ility# fight out $ompetition and $arve a ni$he in the market pla$e) 7ennett 1344E6 des$ri+ed that CRM seeks to esta+lish long term# $ommitted# trusting and $ooperative relationship (ith $ustomers# $hara$teri%ed +y openness# genuine $on$ern for the delivery 5

of high -uality servi$es# responsiveness to $ustomer suggestions# fair dealings and (illingness to sa$rifi$e short term advantage for long term gains) S$hneider and 7o(en 134446 advo$ated that servi$e +usiness $an retain $ustomers and a$hieve profita+ility +y +uilding re$ipro$al relationships founded on safeguarding and affirming $ustomer se$urity# fairness and self esteem) t re-uires that $ompanies vie( $ustomers as people first and $onsumers se$ond) Trust# $ommitment# ethi$al pra$ti$es# fulfillment of promises# mutual ex$hange# emotional +onding# personali%ation and $ustomer orientation have +een reported to +e the key elements in the relationship +uilding pro$ess 1Levitt#345EK ;ronroos# 344CK Morgan#344CK ;ummesson#344CK 7e0ou et al#3445 6) CRM refers to all +usiness a$tivities dire$ted to(ards initiating# esta+lishing# maintaining# and developing su$$essful long,term relational ex$hanges 1Heide# 344CK Reinart% L Iumar# 8??@6) :ne of the results of CRM is the promotion of $ustomer loyalty 1*vans L Laskin# 344C6# (hi$h is $onsidered to +e a relational phenomenon# 1Cho( L Holden# 344GK "a$o+y L Iyner# 34G@K Sheth L 2arvatiyar# 344DK $ited +y Ma$intosh L Lo$kshin# 344G6) The +enefits of $ustomer loyalty to a provider of either servi$es or produ$ts are numerous# and thus organi%ations are eager to se$ure as signifi$ant a loyal $ustomer +ase as possi+le 1;efen# 8??8K Reinart% L Iumar# 8??@K Ro(ley L Da(es# 8???6) Re$ent developments in nternet te$hnology have given the nternet a ne( role to fa$ilitate the link +et(een CRM and $ustomer loyalty (Body and Limayem, 2004). t is $ommon kno(ledge that a dissatisfied and unhappy $ustomer (ill share his unfortunate experien$e more than a satisfied $ustomer) t is also o+served that a fra$tion of unhappy $ustomers $hoose to $omplain (hile others simply s(it$h their loyalty to others servi$e providers) Loss of $ustomer is loss of +usiness along (ith the opportunity for +usiness gro(th and profita+ility) =eed+a$k $olle$tion from the $ustomer is essential for the supplier to as$ertain $ustomer satisfa$tion and s$ope for improvisation 1Sugandhi# 8??86)

The fundamental reason for $ompanies aspiring to +uild relationships (ith $ustomers is e$onomi$) =or survival in the glo+al market# fo$using on the $ustomer is +e$oming a key

fa$tor for $ompanies +ig and small) *sta+lishing and managing a good $ustomer relationship is a strategi$ endeavor) Having a CRM soft(are installed does not ensure a su$$essful $ustomer relationship) =or this to happen +usiness pro$esses and $ompany $ulture have to +e redesigned to fo$us on the $ustomer) CRM soft(are $an +e only a tool to implement a $ustomer strategy) t is kno(n that it takes up to five times more money to a$-uire a ne( $ustomer than to get an existing $ustomer to make a ne( pur$hase) mproving $ustomer retention rates in$reases the si%e of the $ustomer +ase) Thus# $ustomer retention is essential) 17aumeister# unkno(n6)

2.2

C6sto3er sat7sfact7on; lo<alt< an1 b6s7ness 5erfor3ance

The rationale for CRM is that it improves +usiness performan$e +y enhan$ing $ustomer satisfa$tion and driving up $ustomer loyalty 1see figure C6) There is a $ompelling logi$ to the model# (hi$h has +een du++ed the .satisfa$tion,profit $hain/ 1!nderson and Mittal# 8???6) Satisfa$tion in$reases +e$ause $ustomer insight allo(s $ompanies to understand their $ustomers +etter# and $reate improved $ustomer value propositions) !s $ustomer satisfa$tion rises# so does $ustomer repur$hase intention 1!nderson# 344C6) This in turn influen$es a$tual pur$hasing +ehaviour# (hi$h has a signifi$ant impa$t on +usiness performan$e)

3?

Customer Satisfa$tion

Customer Loyalty

7usiness 2erforman$e

Understanding $ustomer re-uirements Meet $ustomer expe$tations Deliver $ustomer value

7ehavioural loyalty !ttitudinal loyalty

Revenue gro(th Share of $ustomer Customer tenure

F726re $ C6sto3er sat7sfact7on; c6sto3er lo<alt< an1 b6s7ness 5erfor3ance 17uttle# 8??C6 Customer satisfa$tion has +een the su+0e$t of $onsidera+le resear$h and has +een defined and measured in various (ays 1:liver# 344G6) Customer satisfa$tion may +e defined as the $ustomer/s fulfillment response to a $onsumption experien$e# or some part of it) Customer satisfa$tion a pleasura+le fulfillment response (hile dissatisfa$tion is an unpleasura+le one 17uttle# 8??C6) Satisfa$tion and dissatisfa$tion are t(o ends of a $ontinuum# (here the lo$ation is defined +y a $omparison +et(een expe$tations and out$ome) Customers (ould +e satisfied if the out$ome of the servi$e meets expe$tations) 9hen the servi$e -uality ex$eeds the expe$tations# the servi$e provider has (on a delighted $ustomer) Dissatisfa$tion (ill o$$ur (hen the per$eived overall servi$e -uality does not meet expe$tations 1Looy# ;emmel L Dierdon$k# 8??@6) Sometimes $ustomer/s expe$tations are met# yet the $ustomer is not satisfied) This o$$urs (hen the expe$tations are lo( 17uttle# 8??D6) =or example# the $ustomer expe$ts the flight to +e late and it gets late)

33

Customer satisfa$tion is $onsidered to +e one of the most important out$omes of all marketing a$tivities in a market,oriented firm) The o+vious need for satisfying the firm/s $ustomer is to expand the +usiness# to gain a higher market share# and to a$-uire repeat and referral +usiness# all of (hi$h lead to improved profita+ility 17arsky# 34486) Studies $ondu$ted +y Cronin and Taylor 134486 in servi$e se$tors su$h asF +anking# pest $ontrol# dry $leaning# and fast foodK found that $ustomer satisfa$tion has a signifi$ant effe$t on pur$hase intentions in all four se$tors) Similarly# in the health,$are se$tor# M$!lexander et al. 1344C6 found that patient satisfa$tion and servi$e -uality have a signifi$ant effe$t on future pur$hase intentions) 1Iandampully and Suhartanto# 8???6 Customer loyalty $an +e defines as :customer #ehavior characteri6ed #y a positive #uyin* pattern durin* an e%tended period ;measured #y means of repeat purchase< frequency of purchase< $allet share or other indicators= and driven #y a positive attitude to$ards the company and its products or services> 1Looy# ;emmel L Dierdon$k# 8??@6) 2ra$titioners and resear$hers have not $learly identified a theoreti$al frame(ork# identifying fa$tors that $ould lead to the development of $ustomer loyalty 1;remler and 7ro(n# 344G6) Ho(ever# there is a $onsensus amongst pra$titioners and a$ademi$s that $ustomer satisfa$tion and servi$e -uality are prere-uisites of loyalty 1;remler and 7ro(n# 344GK Cronin and Taylor# 34486) Those te$hni$al# e$onomi$al and psy$hologi$al fa$tors that influen$e $ustomers to s(it$h suppliers are $onsidered to +e additional prere-uisites of loyalty 1Selnes# 344@K ;remler and 7ro(n# 344G6) Re$ent studies also indi$ate that the firm/s image may influen$e $ustomer enthusiasmF value# delight# and loyalty 17hote# 344E6) 1Iandampully and Suhartanto# 8???6 Loyalty +ehaviors# in$luding relationship $ontinuan$e# in$reased s$ale or s$ope of relationship# and re$ommendation 1(ord of mouth advertising6 result from $ustomers/ +eliefs that the -uantity of value re$eived from one supplier is greater than that availa+le from other suppliers) Loyalty# in one or more of the forms noted a+ove# $reates in$reased

38

profit through enhan$ed revenues# redu$ed $osts to a$-uire $ustomers# lo(er $ustomer, pri$e sensitivity# and de$reased $osts to serve $ustomers familiar (ith a firm/s servi$e delivery system 1Rei$held and Sasser# 344?6) >i/s &Criti$al revie( of $ustomer satisfa$tion' 1344?6 $on$ludes# &Many studies found that $ustomer satisfa$tion influen$es pur$hase intentions as (ell as post,pur$hase attitude' 1p) 3?C6) Customer loyalty $an +e vie(ed in t(o distin$t (ays 1"a$o+y and Iyner# 34G@6) The first vie(s loyalty as an attitude) Different feelings $reate an individual/s overall atta$hment to a produ$t# servi$e# or organi%ation 1see =ornier# 344C6) These feelings define the individual/s 1purely $ognitive6 degree of loyalty) The se$ond vie( of loyalty is +ehavioural) *xamples of loyalty +ehaviour in$lude $ontinuing to pur$hase servi$es from the same supplier# in$reasing the s$ale and or s$ope of a relationship# or the a$t of re$ommendation 1>i# 344?6) The +ehavioural vie( of loyalty is similar to loyalty as defined in the servi$e management literature) n +rief# there are t(o dimensions to $ustomer loyaltyF +ehavioural and attitudinal 1"ulander et al.< 344G6) The +ehaviour dimension refers to a $ustomer/s +ehaviour on repeat pur$hases# indi$ating a preferen$e for a +rand or a servi$e over time 17o(en and Shoemaker# 34456) !ttitudinal dimensions# on the other hand# refer to a $ustomer/s intention to repur$hase and re$ommend# (hi$h are good indi$ators of a loyal $ustomer 1;etty and Thompson# 344C6) Moreover# a $ustomer (ho has the intention to repur$hase and re$ommend is very likely to remain (ith the $ompany) 1Iandampully L Suhartanto# 8??? and Hallo(ell# 344E6

Customer attitude +eing diffi$ult to measure# for finan$ial and pra$ti$al purposes# $ustomer retention is (idely used as an indi$ator of $ustomer loyalty) Resear$hers have $om+ined +oth vie(s into $omprehensive models of $ustomer loyalty) Di$k and 7asu 1344C6 $ame up (ith a t(o,dimensional model of $ustomer loyalty identifying four forms of loyalty a$$ording to relative attitudinal strength and repeat pur$hase +ehavior) The true loyal are those (ho have high levels of repeat pur$hase +ehavior and a strong relative attitude) Spuriously loyal $ustomers tend to +e more motivated +y impulse# $onvenien$e

3@

and ha+it i)e) if the $onditions are right) Latent loyalty applies to those $ustomers (ho are loyal simply +e$ause they have no other $hoi$e) Lastly# there (ill al(ays +e some $ustomers (ho shall not +e loyal to any parti$ular +rand)

2.3 CRM an1 Ser87ce =6al7t<

Servi$e -uality is essential for an organi%ation/s survival and gro(th) nterest in servi$e -uality emerged in 34G?s) *ver sin$e# the topi$ has attra$ted su+stantial attention among resear$hers and pra$titioners 1;ronroos# 8??36) Servi$e -uality is a form of attitude representing a long,run# overall# evaluation# (hi$h is different from $ustomer satisfa$tion# a more short term# transa$tion spe$ifi$ 0udgment) The level of $ustomer satisfa$tion is a result of the $ustomer/s $omparison of the servi$e -uality expe$ted in a given servi$e en$ounter (ith per$eived servi$e -uality) This implies that satisfa$tion assessments re-uire $ustomer experien$es (hile -uality does not 1Caruana# Money and 7erthon# 8???6)

2.3.# C6sto3er>s 5erce5t7on of ?6al7t<$

Buality of a parti$ular servi$e is $hatever the customer perceives it to #e. Servi$e -uality as per$eived +y the $ustomer may differ from the -uality of the servi$e a$tually delivered) Servi$es are su+0e$tively experien$ed pro$esses (here produ$tion and $onsumption a$tivities take pla$e simultaneously) ntera$tions# in$luding a series of moments of truth +et(een the $ustomer and the servi$e provider o$$ur) Su$h +uyer,seller intera$tions or servi$e en$ounters have a $riti$al impa$t on the per$eived servi$e) The Nordi$ Model# originated +y Christian ;ronroos and developed +y others# adopts a dis$onfirmation of expe$tations approa$h) This $laims that $ustomers have $ertain expe$tations of servi$e performan$e (ith (hi$h they $ompare their a$tual experien$e) f the expe$tations are met# this is $onfirmationK if they are over performed# this is positive dis$onfirmationK if they are underperformed this is negative dis$onfirmation) !$$ording to ;ronroos 1345C6# the -uality of servi$e as per$eived +y $ustomers has t(o dimensionsK a technical or outcome dimension and a functional or process7related dimension.

3C

W4at $ustomers re$eive in their intera$tion (ith a firm is $learly important to them and their -uality evaluation) This is one -uality dimension# the Technical uality of the outcome of the servi$e produ$tion pro$ess) Ho(ever# as there are numerous intera$tions +et(een the servi$e provider and $ustomers# in$luding various series of moments of truth# the te$hni$al -uality dimension (ill not $ount for the total -uality (hi$h the $ustomer per$eives he has re$eived) The $ustomer (ill also +e influen$ed +y the (ay in (hi$h te$hni$al -uality, the out$ome of the pro$ess is transferred to him and this (ill have an impa$t on the pro$ess experien$e) *xamples in$lude the a$$essi+ility of !TM# a (e+site# appearan$e and +ehavior of (aiting staff# ho( servi$e employees perform their task# (hat they say and ho( they do it) nterestingly# other $ustomers simultaneously $onsuming the same or similar servi$es may influen$e the (ay in (hi$h $ustomers (ill per$eive a servi$e) Thus# the $onsumer is also influen$ed +y 4o0 he re$eives the servi$e and ho( he experien$es the simultaneous produ$tion and $onsumption pro$ess) This is the se$ond -uality dimension# the -unctional uality of the process# $losely related to ho( the moments of truth of the servi$e en$ounters themselves and are taken $are of and ho( the servi$e provider fun$tions) llustrated in f726re ## there are the t(o +asi$ -uality dimensions# namely# W4at the $ustomer re$eives and !o0 the $ustomer re$eives itK the te$hni$al result or out$ome of the pro$ess 1te$hni$al -uality6 and the fun$tional dimension of the pro$ess 1fun$tional -uality) !n organi%ation/s image is an important varia+le that positively or negatively influen$es marketing a$tivities) mage is $onsidered to have the a+ility to influen$e $ustomers/ per$eption of the goods and servi$es offered 1Heithaml and 7itner# 344E6)Thus# image (ill have an impa$t on $ustomers/ +uying +ehaviour) mage is $onsidered to influen$e $ustomers/ minds through the $om+ined effe$ts of advertising# pu+li$ relations# physi$al image# (ord,of,mouth# and their a$tual experien$es (ith the goods and servi$es 1Normann# 34436) Similarly# ;rMnroos 1345@6# using numerous resear$hes on servi$e organi%ations# found that servi$e -uality (as the single most important determinant of image) Thus# a $ustomer/s experien$e (ith the produ$ts and servi$es is $onsidered to +e the most important fa$tor that influen$es his mind in regard to image)

3D

=or instan$e# if the servi$e provider shares a positive or favora+le image in the minds of the $ustomers# minor mistakes (ill pro+a+ly +e overlooked or forgiven) Ho(ever# if the image is negative# the impa$t of any mistake (ill often +e $onsidera+ly greater than it other(ise (ould +e) This entire $om+ination shall lead to total -uality)

Total Buality

mage 1CorporateN Lo$al6

Te$hni$al -uality of the out$omeF 9H!T

=un$tional -uality of the pro$essF H:9

1;ronroos# 8??36

F726re #$ T0o ser87ce ?6al7t< 173ens7ons

3E

2.3.2 T4e "erce78e1 Ser87ce =6al7t< a55roac4

;ronroos 134586 introdu$ed a servi$e oriented approa$h to -uality (ith the $on$ept of Perceived Service uality and the model of Total 2er$eived Servi$e Buality) This approa$h is +ased on resear$h into $onsumer +ehavior and the effe$ts of expe$tations $on$erning goods performan$e on post,$onsumption evaluations) n previous se$tions# the t(o +asi$ -uality dimensions 1the 04at and the 4o06 in the minds of the $ustomers has +een dis$ussed) Ho(ever# the -uality per$eption pro$ess is more $ompli$ated) t is not the experien$es of the -uality dimensions alone that determine (hether -uality is per$eived as good# neutral or +ad) F726re 2 illustrates ho( -uality experien$es are $onne$ted to traditional marketing a$tivities resulting in a Perceived Service uality) ;ood per$eived -uality is o+tained (hen the experien$ed -uality meets the expe$tations of the $ustomers i)e) the expe$ted -uality) f expe$tations are unrealisti$# the total per$eived -uality (ill +e lo(# irrespe$tive of the experien$ed -uality measured in an o+0e$tive (ay +eing good) !s illustrated in f726re 2; the expe$ted -uality is a fun$tion of fa$tors# namely# marketing $ommuni$ation# (ord of mouth# $ompanyNlo$al image# pri$e# $ustomer needs and values) Marketing $ommuni$ation in$ludes advertising# dire$t mail# sales promotion# (e+sites# internet $ommuni$ation and sales $ampaigns) These are dire$tly under the $ontrol of the $ompany unlike the image and (ord of mouth fa$tors (hi$h are indire$tly $ontrolled +y the $ompany) mage of the $ompany plays a $entral role in $ustomer per$eption of servi$e -uality) Thus# it is imperative that image +e properly managed) *xternal impa$t on these fa$tors $ould possi+ly o$$ur# +ut they are a +asi$ally a fun$tion of the previous performan$e of the firm# supported +y for instan$e advertising) Lastly# the needs of the $ustomers as (ell as the values that determine the $hoi$e of $ustomers also impa$t on their expe$tations) Thus# the level of total per$eived -uality is not determined simply +y the level of te$hni$al and fun$tional -uality dimensions# +ut rather +y the *ap #et$een the e%pected and e%perienced quality)

3G

mage

*xpe$te d -uality Total per$eived -uality

*xperien$ed -uality

mage Marketing $ommuni$ation Sales mage 9ord of mouth 2u+li$ relations Customer needs and values

Te$hni$al -ualityF 9H!T

=un$tiona l -ualityF H:9

F726re 2$ Total "erce78e1 =6al7t< 1;ronroos# 8??36

2.3.3 Ga5s bet0een c6sto3er e95ectat7ons an1 5erce5t7ons$

There exists a gap +et(een expe$ted servi$e -uality and per$eived servi$e -uality) n an attempt to explain su$h gap# 2arasuraman et al 1345D6# $ame up (ith a .gap model/ (hi$h is intended to +e used for analy%ing sour$es of -uality pro+lems and help managers understand ho( servi$e -uality $an +e improved) The model is illustrated in f726re 3.

35

9ord of mouth $ommuni$ations C6sto3er

2ersonal needs

2ast experien$e

*xpe$ted servi$e Ga5 ' 2er$eived servi$e

Ga5 Co35an< Ga5 # Servi$e delivery 1in$luding pre and post $onta$ts6 Ga5 3 Translation of per$eption into servi$e -uality spe$ifi$ations Ga5 2 Management per$eptions of $ustomer expe$tations *xternal $ommuni$ations to $onsumers

F726re 3$ T4e Ga5s Mo1el @So6rce$ "aras6ra3an et al; #,..A

=irstly# the model demonstrates ho( servi$e emerges) The upper portion of the model in$ludes phenomena related to $ustomers# (hile the lo(er portion in$ludes phenomena related to the servi$e provider) The e%pected service is a fun$tion of the $ustomer/s past e%perience and personal needs and of $ord of mouth communication) t is also influen$ed +y the mar2et communication a$tivities of the firm) The servi$e experien$ed# (hi$h in this model is termed as perceived service# is the out$ome of a series of internal de$isions

34

and a$tivities) /ana*ement perceptions of customer e%pectations guide de$isions regarding service quality specifications to +e follo(ed +y the $ompany (hen service delivery 1i)e) the exe$ution of the servi$e express6 o$$urs) The $ustomer experien$es the servi$e delivery and produ$tion pro$ess as a pro$ess,related -uality $omponent and the te$hni$al solution re$eived +y the pro$ess as an out$ome,related -uality $omponent) !s illustrated# mar2etin* communication $an influen$e the per$eived servi$e and also the expe$ted servi$e) This +asi$ model demonstrates the steps that have to +e $onsidered during analy%ing and planning servi$e -uality) The five dis$repan$ies 1so,$alled quality *aps6 +et(een the various elements of the stru$ture are a result of in$onsisten$ies in the -uality management pro$ess) The ultimate gap 1"ap '6 i)e) the gap +et(een expe$ted and per$eived 1experien$ed6 servi$e is a fun$tion of other gaps that possi+ly o$$urred in the pro$ess) The five gaps are dis$ussed +elo(F 3) T4e Mana2e3ent "erce5t7on Ga5 @Ga5#A$ This gap o$$urs (hen the mana*ement perceives the quality e%pectations inaccurately due to ina$$urate information from market resear$h and demand analyses# ina$$urately interpreted information a+out expe$tations# nonexistent demand analysis# +ad or nonexistent up(ard information from the firm/s interfa$e (ith its $ustomers to management and numerous organi%ational layers (hi$h stop or $hange the information that may flo( up(ard from those dire$tly involved in $ustomer $onta$ts) Ne$essary a$tion to open up or improve the various internal information $hannels has to +e taken in su$h situations) 8) T4e =6al7t< S5ec7f7cat7on Ga5 @ Ga5 2A$ This gap signifies that service quality specifications are not consistent $ith mana*ement perceptions of quality e%pectations due to planning errors or insuffi$ient planning pro$edures# +ad management of planning# la$k of $lear goal,setting in the $ompany and insuffi$ient support for planning servi$e -uality from top management) The planning related pro+lems vary depending on the si%e of the first gap) Ho(ever# even if there is suffi$ient a$$urate information on $ustomer expe$tations# planning of -uality spe$ifi$ations may fail due to la$k of real $ommitment to servi$e

8?

-uality among top management) Commitment# dedi$ation and devotion to servi$e -uality among management as (ell as servi$e providers are of highest importan$e and priority in $losing the Buality Spe$ifi$ation ;ap) @) T4e Ser87ce Del78er< Ga5 @Ga5 3A$ This gap means that quality specifications are not met #y performance in the service production and delivery process due to spe$ifi$ations (hi$h are too $ompli$ated andNor too rigid# employees not agreeing (ith the spe$ifi$ations and therefore not fulfilling them# spe$ifi$ations not +eing in line (ith the existing $orporate $ulture# +ad management of servi$e operations# la$king or insuffi$ient internal marketing and te$hnology and systems not fa$ilitating performan$e a$$ording to spe$ifi$ations) The possi+le pro+lems here are many and varied and usually the reasons for the existen$e of a Servi$e Delivery ;ap are $ompli$ated and so are the $ures) The reason for this gap $an +e divided into three $ategoriesF management supervision# employee per$eption of spe$ifi$ations and rulesN$ustomer needs and (ishes# and a la$k of te$hnologi$alNoperational support) Management and supervision related pro+lems may +e varied too) =or instan$e# supervisors may not +e en$ouraging and supportive of -uality +ehavior or the supervisory $ontrol systems may +e in $onfli$t (ith good servi$e or even (ith -uality spe$ifi$ations) n an organi%ation (here $ontrol and re(ard systems are de$ided upon separately from the planning of -uality spe$ifi$ations# (hi$h is the $ase often# there is inherent risk of a Servi$e Delivery ;ap o$$urring) :ften non, essential or important a$tivities are $ontrolled# perhaps even re(ardedK and a$tivities that $ontradi$t -uality spe$ifi$ations are en$ouraged +y the $ontrol system) Control and re(ard systems partly determine the $orporate $ulture# and goals and spe$ifi$ations that do not fit the prevailing $ulture tend not to +e (ell exe$uted) The $ure here involves $hanges in the (ay managers and supervisors treat their su+ordinates and in the (ay supervisory systems $ontrol and re(ard performan$e)

83

Sin$e the (ay in (hi$h performan$e re-uirements of the spe$ifi$ations# on one hand and existing $ontrol and re(ard systems on the other hand# are in $onfli$t (ith ea$h other# an a(k(ard situation may arise for personnel (hen a $ustomer $onta$t person reali%es that a $ustomer re-uires different +ehavior on the part of the servi$e provider than that expe$ted a$$ording to the $ompany/s spe$ifi$ations) t must +e noted that situations (here the servi$e provider is a(are of the fa$t that the $ustomer is not re$eiving (hat he expe$ts and may feel that the demands and (ishes of the $ustomer are 0ustified and perhaps $ould +e fulfilled# ho(ever# the servi$e provider is not allo(ed to perform a$$ordingly# may ruin the motivation for -uality,enhan$ing +ehavior among personnel) The skills and attitudes of personnel may $ause pro+lems if the (rong people are re$ruited) =or instan$e# the firm may have employees (ho are una+le to ad0ust to the spe$ifi$ations and systems that guide operations) =urthermore# the (orkload per$eived +y employees may +e a pro+lem) =or example# there may +e too mu$h paper(ork or some other administrative tasks involved# so that -uality spe$ifi$ations $annot +e fulfilled and a result of (hi$h# the servi$e provider does not possess time to attend to $ustomers as expe$ted) Lastly# the te$hnology or the systems of operating# in$luding de$ision making may not +e suita+le to employees) The pro+lem may +e the employees# +ut it is -uite pro+a+le that te$hnology and operational and administrative systems have +een introdu$ed inappropriately) 2erhaps the te$hnology and systems do not support -uality +ehavior# or they have +een improperly introdu$ed to the employees) To $lose the Servi$e Delivery ;ap# the pro+lems need to +e dealt (ith effe$tively and effi$iently) C) T4e Mar/et7n2 Co336n7cat7on Ga5 @Ga5 A$ This gap o$$urs (hen promises *iven #y mar2et communication activities are not consistent $ith the service delivered due to market $ommuni$ation planning not +eing integrated (ith servi$e operations# la$king or insuffi$ient $oordination +et(een traditional external marketing and operations# the organi%ation failing to perform a$$ording

88

to spe$ifi$ations# (hereas market $ommuni$ation $ampaigns follo( these spe$ifi$ations and an inherent propensity to exaggerate# and# thus# promise ex$essively) The reasons for Marketing Communi$ation ;ap $an +e divided into t(o $ategoriesF the planning and exe$uting of external market $ommuni$ation and operations and a $ompany/s propensity to over,promise in all advertising and marketing $ommuni$ation) The $ure in the first situation $ould +e $reating a system that $oordinates planning and exe$ution of external market $ommuni$ation $ampaigns (ith servi$e operations and delivery) =or instan$e# every ma0or $ampaign $ould +e planned in $olla+oration (ith those involved in servi$e produ$tion and delivery for Dual goal to +e a$hieved) =irst# promises in market $ommuni$ations +e$ome more a$$urate and realisti$ and se$ond# a greater $ommitment to (hat is promised in external $ampaigns $ould +e a$hieved) The se$ond $ategory of pro+lems i)e) over,promising $an +e dealt (ith +y improving planning of marketing $ommuni$ation andNor $loser management supervision) D) T4e "erce78e1 Ser87ce =6al7t< Ga5 @Ga5 'A$ This gap signifies that the perceived or e%perienced service is not consistent $ith the e%pected service resulting in negatively $onfirmed 1+ad6 -uality and a -uality pro+lem# +ad (ord of mouth# a negative impa$t on $orporate or lo$al image and lost +usiness) Ho(ever# this gap may also +e positive# (hi$h leads either to a positively $onfirmed -uality or over,-uality) f a 2er$eived Servi$e Buality ;ap o$$urs# the reason $ould +e any one or a $om+ination of those dis$ussed a+ove or other additional reasons) !ddressing these gaps $ould +e a +asis for developing servi$e pro$esses in (hi$h expe$tations and experien$e $onsistently meet and a good per$eived servi$e -uality (ill enhan$e) Some of the possi+le strategies that $ould +e adopted +y organi%ations to $lose these -uality gaps are ta+ulated in Table #.

8@

Ga5s 3

"oss7ble strate27es to close 2a5s Change of management 1in extreme situations6# other(ise normally# learn from front,line $ustomer $onta$t staff# flatten the hierar$hi$al stru$ture# in$lude expe$tations data in $onsumer re$ords# market resear$h for improvement in the kno(ledge of the $hara$teristi$s of servi$e $ompetition# et$)

Change in firm/s priorities# Commitment to develop servi$e standards (herever possi+le# feasi+ility assessment of $ustomer expe$tations# develop a standards do$umentation pro$ess# automation of pro$esses (herever possi+le and desira+le# a$tivities outsour$ed (herever $ompeten$ies are la$king# development of servi$e -uality goals# et$)

nvestment in peopleF 1re$ruitment# training and retention6# investment in te$hnology# redesigning (orkflo(# en$ourage self organi%ed teamsK improve internal $ommuni$ation# $lear 0o+ spe$ifi$ations to avoid am+iguity# re(ard servi$e ex$ellen$e# et$)

7rief the advertising agen$y of the $ompany# external $ommuni$ation of (hat the $ustomer $an expe$t through advertising# training employees not to over,promise# penali%e employees (ho over,promise# en$ourage $ustomers to sample the servi$e experien$e# ex$el at servi$e re$overy# en$ourage and manage $ustomer $omplaints# et$)

17uttle# 8??CK ;ronroos# 8??3 and Looy# ;emmel L Dierdon$k# 8??@6

8C

2.3.

Ser87ce G6arantee

!n organi%ation tries to +alan$e its $ustomers/ expe$tations (ith the delivered servi$e) ! servi$e guarantee promises the $ustomers a $ertain servi$e -uality and +a$ks up su$h promise (ith a payout# making servi$es more .tangi+le/# redu$ing the per$eived risk of pur$hasing a servi$e) &! servi$e guarantee makes the $ustomer a meaningful promise and spe$ifies a payout and an invocation procedure in $ase the promise is not kept) *a$h of these elements is e-ually important in making a guarantee su$$essful' 1Looy# ;emmel L Dierdon$k# 8??@6 The key elements of this definition are dis$ussed +elo(F T4e "ro37se Through introdu$tion of a servi$e guarantee# an organi%ation makes a $redi+le promise to its $ustomers) =or example# 2TT Tele$om promise to $onne$t ne( telephones (ithin three (orking days and to fix telephone lines (ithin a day and a half) This promise is a $redi+le one in a *uropean $ontext# (here shorter lead times are highly desirous +y $ustomers 1Looy# ;emmel L Dierdon$k# 8??@6) n defining a promise# a $ompany should +e $areful not to promise (hat (ould +e expe$ted any(ay) This may negatively signal that servi$e failures are likely to +e expe$ted) Some promises are limited in s$ope i)e) guarantee only less important servi$e aspe$ts or are highly $onditional# ex$luding all ma0or $auses of servi$e failure) =or example# Lufthansa guarantees that its $ustomers (ill make their $onne$ting flights if there are no delays due to (eather or air,traffi$ $ontrol pro+lems) roni$ally# these t(o pro+lems $ause in total 4D per$ent of all flight delays) =urthermore# the guarantee is appli$a+le only if all flights in$luding $onne$ting flights are (ith Lufthansa 1Lufthansa airlines# 345G6) The presen$e of a servi$e guarantee $an support the per$eption of servi$e relia+ility# (hi$h is one of the most $riti$al determinants of $ustomer satisfa$tion) Ho(ever# sometimes a guarantee may give out a negative message# indi$ating that servi$e failures may o$$ur due to $ustomers (ondering (hy it is ne$essary to provide a guarantee) =or example# Lufthansa promises its $ustomers that 8D

their luggage (ill arrive (ith them) Ho(ever# this $reated the per$eption that lost luggage is more a pro+lem (ith Lufthansa than its $ompetitors 1Lufthansa airlines# 345G6) The effe$tiveness of $ommuni$ating a servi$e guarantee also depends on the sour$e of the message# espe$ially if the form has a history of servi$e pro+lems# making it diffi$ult for a servi$e firm (ith +ad servi$e reputation to send out $redi+le message) T4e "a<o6t n a situation (here promises are not kept# the $ustomer shall re$eive a payout (hi$h (ill en$ourage the $ustomer to $ommuni$ate all servi$e failures# (hi$h has a dou+le effe$tF Servi$e re$overyF The $ustomer (ho $laims his payout is less likely to defe$t or spread a negative (ord of mouth) Hen$e# servi$e re$overy +e$omes a possi+ility) Servi$e -uality improvementF *a$h $laim represents valua+le information a+out -uality errors and their possi+le $auses# +ut the avoidan$e of future payouts fun$tions as an in$entive to all staff to parti$ipate in improvement pro0e$ts)

n order to a$hieve servi$e re$overy# the payout has to +e meaningful to $ustomers) t should not only make up for all the damage and in$onvenien$e suffered +ut also make the $ustomer .(hole)/ =or example# the payout offered +y the Dut$h +us servi$e organi%ation# & nterliner#' makes their $ustomer .(hole/ +y guaranteeing that their passengers (ill rea$h their $onne$ting flights and +uses) ! refund (ould not ade-uately $ompensate the passenger (ho missed a $onne$tion) Therefore# any passenger (ho (ould have to (ait for more than fifteen minutes for a $onne$tion due to delay +y nterliner (ould +e taken to his destination +y taxi at nterliner/s expense 1((()interliner)nl6) ! payout $an also +e too high) =or example# in ndia atleast# Domino/s 2i%%a offers $ustomers its pi%%a free of $harge if they (ere not delivered (ithin thirty minutes from ordering)

8E

T4e %n8ocat7on "roce16re The final aspe$t of the servi$e guarantee is the invo$ation pro$edure) nvo$ating a guarantee should +e either easy or proa$tive) =or example# supermarkets Hoogvliet 1Netherlands6 and Mat$h 17elgium6 promise short -ueues at their $he$kouts) f all tills are not manned and if some $ustomer is the third one 1Hoogvliet6 or the fourth one 1Mat$h6 in the -ueue# he does not have to pay 1Hoogvliet6 or re$eives a signifi$ant dis$ount 1Mat$h6) !n example of un$onditional satisfa$tion guarantee (hi$h is easy to invoke is that of Super-uinn/s ;oof Card System) Super-uinn is the leading supermarketing $hain in the ;reater Du+lin area) 2eriodi$ally# $ustomers (ho parti$ipate in the loyalty saving system $alled .Super$lu+/ re$eive a .;oof Card/) *a$h time Super-uinn .goofs/ i)e) produ$es a servi$e failure# the $ustomer simply has to point it out to any mem+er of staff# and he shall re$eive thirty +onus points (orth O3) The guarantee offers un$onditional satisfa$tion guarantee as $ustomers are a+le to define the goof themselves# ho(ever# for further help to $ustomers# Super-uinn lists ten examples of goofs) The invo$ation of 2TT Tele$om/s guarantee for example is proa$tive as (ell) !fter ea$h $onne$tion or repair# 2TT Tele$om makes an after,sales $all to the $ustomer trying to assess $ustomer/s satisfa$tion) f there is a failure of promise# the $ustomer is immediately informed of the payout 1Looy# ;emmel L Dierdon$k# 8??@6)

2.3.' Ser87ce Reco8er<

The real test of the $ustomer orientation of a servi$e provider takes pla$e (hen servi$e failure has o$$urred) deally# -uality should +e high throughout and failures should not o$$ur in the servi$e pro$esses) Ho(ever# in reality employees makes mistakes# systems +reak do(n# $ustomers in the servi$e pro$ess may $ause pro+lem for other $ustomers# et$) Servi$e re$overy is a strategy for managing mistakes# failures and pro+lems in $ustomer relationships 1;ronroos# 8??36) !s defined +y Tax and 7ro(n 18???6 1in gronroos 8??36# &Service recovery is a process that identifies service failures< effectively resolves customer pro#lems< classifies their root cause;s=< and yields data 8G

that can #e inte*rated $ith other measures of performance to assess and improve the service system.> Servi$e re$overy in$ludes all a$tions taken +y $ompany (hen there has +een a servi$e failure) Servi$es fail for different reasons, sometimes te$hni$al servi$e failsK sometimes fun$tional servi$e -uality 1Ieaveney# 344D in 7uttle# 8??C6) 2ro+lems $aused +y a servi$e failure are t(o,foldK fa$tual and emotional pro+lems 1;ronroos# 8??36) n a pro+lemati$ situation (hen servi$e re$overy is $alled upon# $ustomers are often frustrated# possess high expe$tations and tend to have a narro(er 6one of tolerance that normal 1Tax et all# 34456) Therefore# servi$e re$overy $ould +e risky 1Smith and 7olton# 34456 and needs to +e (ell managed) Servi$e re$overy performan$e $an +e +etter if the employees are more $ommitted to the visions# strategies and servi$e $on$epts of the firm) Moreover# empo(ered employees $an +e expe$ted to perform +etter in re$overy situations# in$lined to deal -ui$kly and effe$tively (ith servi$e failures 17oshoff and !llen# 8???6) 9hen $ompanies resolve pro+lems -ui$kly and effe$tively there are positive $onse-uen$es for $ustomer satisfa$tion# $ustomer retention and (ord,of,mouth 1Tax et al# 34456) Servi$e re$overy pro$ess should +e developed and exer$ised to maximi%e fairness as per$eived +y the $ustomer 1Ruyter and 9et%els# 8???6) n addition to mistake $orre$tion# -ui$k response and ade-uate $ompensation are $onsidered $ru$ial elements of servi$e re$overy 1"ohnston and =ern# 34446) t has +een dis$overed that $ustomers (ho have +een let do(n# then (ell re$overed# are more satisfied than $ustomers (ho have not +een let do(n all 1Hart et al# 344?6) ! (ell managed re$overy has positive impa$t in development of a trusting relationship +et(een a firm and its $ustomer and may also deepen the $ustomer/s $ommitment to(ards the servi$e provider 1Tax et al# 34456) Servi$e re$overy is an important fa$tor influen$ing per$eived servi$e -uality and is a $riterion (hi$h $an have a positive effe$t on fun$tional -uality) Satisfa$tion (ith the servi$e $an +e in$reased through good servi$e re$overy 1Spreng# Harrell L Ma$koy# 344D6) !$$ording to 2atri$k Mene# Dire$tor of Buality at the Rit%, Carlton Hotel Company &3,3?,3?? rule of servi$e re$overy'# (hat $osts the firm one pound# euro or dollar to fix immediately (ill $ost ten the next day and hundred later on 12atlo(# 344@6) !n example of -ui$k servi$e re$overy is an in$ident that took pla$e at the Rit%,Carlton Hotel in 2hoenix# !ri%ona) ! group of four M7! students from *urope had attended a seminar at the hotel and (ished to spend a fe( hours of leisure time at the

85

s(imming pool +efore leaving for the airport) 9hen they arrived at the s(imming pool around mid afternoon# they (ere politely told that the pool area (as $losing +e$ause the area (as to +e prepared for an evening re$eption and dinner) The students explained that during their stay at the hotel# that (as the only time they $ould spend at the pool +efore returning to the free%ing temperature of their $ountry and they had +een looking for(ard to this opportunity) The (aiter re-uested them to (ait (hile he sorted out the situation) !fter a short (hile# a supervisor arrived to inform them that the hotel unfortunately had to $lose the entire pool area for evening preparation) Ho(ever# he added that a limousine (as (aiting for them outside the main entran$e to take them and their luggage to 7iltmore Hotel (here the pool area (ould +e at their disposal) This limousine (as at the Rit%,Carlton/s expense undou+tedly) This delighted the group and their already favora+le per$eption of the hotel (as improved further) They also engaged in $onsidera+le amount of positive (ord,of,mouth $ommuni$ation 1;ronroos# 8??36)

2.3.+

Co35la7nts 3ana2e3ent

Customers $omplain under one or +oth of the $onditionsF their expe$tations +eing underperformed to a degree that falls outside their %one of toleran$e or unfair treatment) Complaints management pro$ess should +e developed to take a positive vie( of $ustomer $omplaints) Customers (ho $omplain provide an opportunity for the servi$e firm to identify root $auses of pro+lems as (ell as (in +a$k unhappy or dissatisfied $ustomers to retain their future value 17uttle# 8??D6) ! $omplaints management pro$ess should allo( $ompany to $apture $omplaints +efore $ustomers spread a negative (ord,of,mouth or take their +usiness else(here 17uttle# 34456) Up to t(o,thirds of $ustomers (ho are dissatisfied do not $omplain to the organi%ation 1Ri$hins# 345@6) Ho(ever# they may $omplain to their so$ial net(orks) Dissatisfied $ustomers are likely to inform t(i$e as many people a+out their experien$e than $ustomers (ith a positive experien$e 1T!R2# 344D in 7uttle# 8??D6) !$$ording to 9ilson 134436# only C per$ent of the dissatisfied $ustomers a$tually $omplain# providing valua+le feed+a$k to the $ompany) The remaining 4E per$ent $hoose to simply leave the +usiness and go else(here) Companies $hoose to deal (ith $omplaints effi$iently to +ring a+out $ustomer retention# $ontinuous 84

improvement in servi$e -uality and +uild a $ustomer, fo$used organi%ation 1Looy# ;emmel L Dierdon$k# 8??@6) The $ustomers $hoose not to $omplain for some reasons listed in table 2 +elo() They do not kno( ho( to register a They +elieve $omplaining (ill +e useless $omplaint +e$ause the $ompany don/t $are a+out them or their $omplaints They +elieve it is not (orth the time They fear retri+ution) =or example# many or trou+le people are relu$tant to $omplain a+out the poli$e)

19ilson# 3443 and 7uttle# 8??D6

No(# (e shall move into the se$tion of the literature revie( (here (e shall highlight the priva$y issue (ith CRM)

2.

Do all c6sto3ers 0ant a relat7ons475 07t4 t4e7r ser87ce 5ro871er:

t is $lear that $ompanies (ant relationships (ith $ustomers# +ut it is far less $lear that $ustomers universally (ant relationships (ith their suppliers) n a +usiness to $ustomer $ontext# relationships may +e sought (hen the $ustomer seeks +enefits over and a+ove those dire$tly derived from a$-uiring# $onsuming or using the servi$e) The +enefits in$lude re$ognition# personali%ation# po(er# risk redu$tion# status and affiliation 17uttle# 8??C6) *xamples of ea$h su$h +enefit are mentioned +elo( Re$ognitionF ! $ustomer may feel more valued and important (hen re$ogni%ed and addressed +y name

@?

2ersonali%ationF =or example# over time# a hotel manager may understand a $ustomer/s parti$ular preferen$es or expe$tations

2o(erF =or instan$e# some of the po(er asymmetries in relationships +et(een +anks and their $ustomers may +e reversed (hen $ustomers feel that they have personal relationships (ith their +ank offi$ers and managers)

Risk redu$tionF Risk may +e in the form of performan$e# physi$al# finan$ial# so$ial or psy$hologi$al) High levels of per$eived risk are un$omforta+le for many $ustomers) ! relationship has the a+ility to redu$e# or even eliminate risk) =or example# a $ustomer may develop a relationship (ith a garage to redu$e the per$eived performan$e and physi$al risk atta$hed to having a $ar servi$ed) The relationship provides the assuran$e that the 0o+ has +een skillfully a$$omplished and the $ar is safe to drive)

StatusF =or example# $ustomers may feel that their status is enhan$ed +y a relationship (ith an organi%ation# say# the Hilton)

!ffiliationF people/s so$ial needs $an +e met through relationships) =or example# many people 0oin parti$ular forums or asso$iations to +e a part of a $ommunity)

Ho(ever# there are some $ustomers (ho (ould +e satisfied (ith the servi$e -uality and perhaps de$ide to +e loyal# +ut not (ant a relationship as su$h (ith the supplier for priva$y issues) t is a kno(n fa$t that suppliers (ish to in$rease their sales to $ustomers) n order to kno( and analy%e their $ustomers# $ompanies $olle$t extensive data on their $ustomers through various $hannels) :ne popular rather $ommon $hannel is through loyalty programs and $ards) *xamples in$lude Tes$o loyalty $ards# Hilton hhonors program# 7ritish !ir(ays fre-uent flyer $ards# et$) The $ompanies provide some +enefits to $ustomers and $olle$t data like $onta$t name# history of pur$hase# money spent in the

@3

past on $ompany/s servi$es# et$) Ho(ever# if the data is mishandled or in$orre$tly handled# it $an destroy the trust and loyalty in the relationship) 1Aargas# 8??E6 2riva$y and data prote$tion are key $on$erns of $ustomers# (ho are in$reasingly $on$erned a+out the amount of information that organi%ations have a+out them and the uses to (hi$h information is put) n reality# most $ustomers are una(are of the -uantity of information availa+le to $ompanies) Some $ustomers may (ish to simply not 0oin any loyalty programs in order to se$ure their priva$y and prevent intrusion into personal information)

2.'

S<no5s7s

This se$tion has provided availa+le literature a+out CRM) The gap model explained shall +e a strong +asis for explaining the dark side of CRM) 2riva$y issues shall +e given importan$e as (ell) The $ustomers/ per$eption of servi$e -uality is to +e given supreme priority +y the hotel industry) t is important ho( $ustomers per$eive the servi$e -uality to +e) 9hat they re$eive and ho( they re$eive $orresponding to their expe$tations helps them 0udge the servi$e -uality to a large extent)

@8

C4a5ter 3$ CRM an1 !otel %n16str<

The hotel industry today has +een re$ogni%ed as a glo+al industry# (ith produ$ers and $onsumers spread around the (orld) The use of hotel fa$ilities su$h asF room# restaurant# +ar# night$lu+ or health $lu+K are no longer $onsidered a luxury) =or many people these servi$es have +e$ome an integral $omponent of lifestyle) Moreover# in the last t(o de$ades# demand for and supply of hospitality servi$es +eyond that of the traditional servi$es intended for travelers have es$alated the gro(th of the hospitality industry glo+ally# leading to intense $ompetition in the market,pla$e) :ne of the greatest $hallenges fa$ing hotel organi%ations today is the ever,gro(ing volume and pa$e of $ompetition) Competition has had ma0or impli$ations for the $ustomer# providing in$reased $hoi$e# greater value for money and augmented levels of servi$e) !dditionally# there is little to distinguish one hotel/s produ$ts and servi$es from another) Thus it has +e$ome imperative for hotel organi%ations to gain a $ompetitive advantage) There are t(o strategies most $ommonly used +y hotel managers in order to gain a $ompetitive advantage# (hi$h are lo(,$ost leadership through pri$e dis$ounting and developing $ustomer loyalty +y providing uni-ue +enefits to $ustomers) Hotels that attempt to improve their market share +y dis$ounting pri$e run the serious risk of having a negative impa$t on the hotel/s medium, and long,term profita+ility) !s a result# it is -uality of servi$e rather than pri$e that has +e$ome the key to a hotel/s a+ility to differentiate itself from its $ompetitors and to gain $ustomer loyalty) ;etty and Thompson 1344C6 studied relationships +et(een -uality of lodging# satisfa$tion# and the resulting effe$t on $ustomers/ intentions to re$ommend the lodging to prospe$tive $ustomers) Their findings suggest that $ustomers/ intentions to re$ommend are a fun$tion of their per$eption of +oth their satisfa$tion and servi$e -uality (ith the lodging experien$e) Ho(ever# satisfying $ustomers alone is not enough# sin$e there is no guarantee that satisfied $ustomers (ill return to pur$hase) t is no( +e$oming apparent that $ustomer loyalty is signifi$antly more important than $ustomer satisfa$tion for su$$ess)

@@

Numerous examples illustrate that it is important that the hotel industry develop $ustomer loyalty# as opposed to relying solely on pri$ing strategies) Resear$hers have sho(n that a D per $ent in$rease in $ustomer loyalty $an produ$e a profit in$rease of 8D per $ent to 5D per $ent 1Rei$hheld and Sasser# 344?6) Hen$e a dedi$ated fo$us on $ustomer loyalty is likely to +e$ome a ne$essary prere-uisite for the future survival of hotel organi%ations) n the hotel industry# Customer relationship management 1CRM6 is more than the pra$ti$e of $olle$ting guest,$entri$ data) t/s the art of using histori$al# personal# and experiential information to personali%e a guest/s stay (hile generating in$remental revenue opportunities) =or instan$e# kno(ing a traveler is an avid sports fan $reates the opportunity to market ti$kets to a gameK kno(ing a guest had a less,than,memora+le experien$e in the hotel restaurant gives you a $han$e to (in them +a$k the next time they are in to(n) 9ith the latest offerings in CRM# hoteliers $an develop $omprehensive guest profiles from reservation information and demonstrate to guests that the property is in tou$h (ith their needs# drive guest,$entri$ data do(n to the transa$tion level# allo(ing employees and guest,fa$ing te$hnology to deliver greater value to the guest# generate a realisti$ profile on the spending and stay patterns of guests# allo(ing the property to $reate guest,$entri$ marketing for in$reased loyalty and spending# et$)1Mi$rosoft# 8??E6) To summari%e# the shift in the sales and marketing lands$ape re-uires the hotel $ompanies to +e as advan$ed as te$hnology (ill allo( in managing their $ustomer relationships) &There (ill +e a sea $hange from management of $ustomer data to management of $ustomer relationships') &Hotel $ompanies must $arefully $onsider ho( they store# tra$k# analy%e and a$t upon every aspe$t of their relationships (ith their guests and +ooking $ustomers)' The emphasis should +e on using the data intelligently to predi$t $onsumer +ehavior# su$h as loyalty and usage patterns# and to use the $ustomer kno(ledge to anti$ipate the $ustomer needs or pro+lems 1*URH:T*C# 8???6)

@C

C4a5ter $ Met4o1olo2< an1 Researc4 Des72n

.# O8er87e0

Methodology $an +e defined as 1i6 &a +ody of methods# rules# and postulates employed +y a dis$ipline'# 1ii6 &a parti$ular pro$edure or set of pro$edures or 1iii6 &the analysis of the prin$iples or pro$edures of in-uiry in a parti$ular field'# the $ommon idea +eing the $olle$tion# the $omparative study# and the $riti-ue of the individual methods that are used in a given dis$ipline or field of in-uiry 19ikipedia# 8??E6) This $hapter of the paper provides an overvie( of the resear$h design 1i)e) the $ase study6 used for resear$h a+out the hotel industry) The o+0e$tives of the resear$h have +een mentioned follo(ed +y a definition of resear$h design and the -ualitative approa$h of the $ase study) The resear$her then presents his 0ustifi$ation for $hoosing Rit%,Carlton Hotel Company as his $ase example leading to methods of data $olle$tion for the resear$h $ondu$ted along (ith ea$h method/s strengths and (eaknesses) This $hapter $on$ludes (ith dis$ussion on data analysis and the relia+ility and validity issues (ith data $olle$tion

.2 Researc4 obBect78es
! revie( of the present literature is a stepping stone in $ompiling the o+0e$tives +ehind the resear$h) n this regard# the literature revie( ena+led an understanding of ho( $an the hotel industry improve its +usiness performan$e through servi$e -uality# $ustomer satisfa$tion and $ustomer loyalty) The servi$e -uality is provided +y hotels to ultimately satisfy the $ustomers and the hotel managers must kno( (hat their $ustomer (ants rather than +lindly assuming) *ven though the servi$e -uality may +e satisfa$tory# there may +e a gap +et(een the expe$ted servi$e -uality +y the $ustomer and their experien$ed servi$e -uality) The hotel management has to strive to +ridge these gaps to improve servi$e -uality and $ustomer satisfa$tion and attempt to +ring a+out $ustomer loyalty (hi$h in turn (ould impa$t +usiness performan$e) The literature revie( also highlighted that there is possi+ly a .dark side of CRM/ (hi$h refers to priva$y issues of the $ustomer and @D

dou+ts a+out $ustomers (illing to +uild relationships in the long run) There is also not ample literature availa+le on the $ustomer/s perspe$tive i)e) ho( the $ustomer feels a+out (hat the hotel provides him (ith# if the hotel a$tually provides them (ith (hat they promise to deliver# if the $ustomers value all they re$eive and ho( mu$h# the priva$y issues and possi+ly $ustomers/ rea$tion to $ertain experien$es during their stay# 0ust to name a fe( not so explored sides of CRM) nspired +y the a+ove# the resear$h o+0e$tives are as follo(sF 1. Does the gap model explain the dark side of CRM? . Is there more to the dark side of CRM than what is explained in the gap model? !. How can the dark side of CRM be reduced?

.3 Researc4 1es72n
! resear$h design $an +e explained as the &detailed +lueprint used to guide a resear$h study to(ard its o+0e$tives' 1!aker# Iumar and Day# 8??@6) Resear$h design provides the &glue that holds the resear$h pro0e$t together) ! design is used to stru$ture the resear$h# to sho( ho( all of the ma0or parts of the resear$h pro0e$t ,, the samples or groups# measures# treatments or programs# and methods of assignment ,, (ork together to try to address the $entral resear$h -uestions' 1So$ial resear$h methods# 8??E6 The pro$ess of designing a resear$h study re-uires some interrelated de$isions to +e made) The most signifi$ant de$ision is the $hoi$e of resear$h approa$h (hi$h determines ho( the information (ill +e o+tained) The $hoi$e of resear$h approa$h is dependant on the nature of the resear$h to +e $ondu$ted) Resear$h approa$hes $an +e $ategori%ed into one of the three general $ategories of resear$h i)e) exploratory# des$riptive and $asual 1!aker# Iumar and Day# 8??@6) *xploratory resear$hF This type of resear$h is undertaken (hen one is seeking insight into the general nature of a pro+lem area# the possi+le de$ision alternatives and relevant @E

varia+le that are to +e $onsidered) The resear$h methods are loosely defined# highly flexi+le# unstru$tured and -ualitative) The resear$her +egins (ithout firm pre$on$eptions as to (hat (ill +e the out$ome) The a+sen$e of stru$ture allo(s a thorough pursuit of ideas and $lues a+out the pro+lem situation) Su$h resear$h is $ondu$ted +e$ause a pro+lem has not +een $learly defined) *xploratory resear$h helps determine the +est resear$h design# data $olle$tion method and sele$tion of su+0e$ts) Su$h resear$h often relies on se$ondary resear$h su$h as revie( of availa+le literature andNor data# -ualitative approa$hes like informal dis$ussions (ith $ustomers# employees# management or $ompetitors# and more formal approa$hes like in,depth intervie(s# fo$us groups# pro0e$tive methods# $ase studies or pilot studies) The out$ome of this type of resear$h $an provide signifi$ant insight into a given situation and provide some explanation as to &(hy'# &ho(' and &(hen' something o$$urs) Ho(ever# exploratory resear$h may not +e typi$ally generali%a+le to population at large 1!aker# Iumar and Day# 8??@ and 9ikipedia# 8??E6 Des$riptive resear$h em+ra$es a large proportion of marketing resear$h# the o+0e$tive +eing to provide an a$$urate snapshot of some aspe$t of the marketing environment) Casual resear$h approa$h is used (hen it is essential to sho( that one varia+le $auses or determines the values of other varia+les) n su$h $ase# des$riptive resear$h is insuffi$ient as it $an only sho( that t(o varia+les are related or asso$iated 1!aker# Iumar and Day# 8??@6) There are various resear$h methods that $an +e adopted (hi$h in$lude $ase studies# experiments# surveys# histories and ar$hival information)

Case st61<$ An 7ntro16ct7on

Case study is an ideal methodology in a situation (here a holisti$# in,depth investigation is needed 1=eagin# :rum# L S0o+erg# 34436) ! $ase study is a parti$ular method of -ualitative resear$h) nstead of using large samples and follo(ing a rigid proto$ol to examine a limited num+er of varia+les# $ase study method involves an in,depth longitudinal examination of a single instan$e or eventF a $ase) t provides systemati$ approa$h of looking at events# data $olle$tion# data analysis and reporting the results) @G

Resultantly# the resear$her may gain a sharpened understanding of (hy the instan$e o$$urred and (hat might +e important to look at extensively in future resear$h 19ikipedia# 8??E6) Case studies lend themselves to generating and testing hypotheses 1=lyv+0erg# 8??E6 >in 18??86 suggests that $ase study should +e defined as a resear$h strategy ; an empiri$al in-uiry that investigates a phenomenon (ithin its real,life $ontext) Case study resear$h means single, and multiple $ase studies# may in$lude -uantitative eviden$e# relies on multiple sour$es of eviden$e and +enefits from prior development of theoreti$al propositions) He notes that $ase studies should not +e $onfused (ith -ualitative resear$h and points out that they $an +e +ased on any mix of -uantitative and -ualitative eviden$e) Case studies tend to +e sele$tive# fo$using on one or t(o issues that are fundamental to understanding the system +eing examined)

.' !7stor< of case st61<

The use of the $ase study originated only in the early 8?th $entury as a distin$t approa$h to resear$h) The :xford *nglish Di$tionary tra$es the phrase . case study or .case7study +a$k as far as 34@C# after the esta+lishment of the $on$ept of .case history in medi$ine) The use of $ase studies for $reation of ne( theory in so$ial s$ien$es (as further developed +y so$iologists 7arney ;laser and !nselm Strauss (ho presented their resear$h method# .;rounded theory/ in 34EG) The popularity of $ase studies as a resear$h tool developed in re$ent de$ades) :ne area in (hi$h $ase studies have +een gaining popularity is edu$ation and in parti$ular edu$ational evaluation) f used in 1non,+usiness6 edu$ation and professional development# $ase studies are often referred to as . critical incidents 19ikipedia# 8??E6)

.+

T<5es of Case St61<

>in 1344@6 identified three spe$ifi$ types of $ase studiesF 1%ploratory# 1%planatory# and ,escriptive) *xploratory $ases may +e $onsidered as a prelude to so$ial resear$h)

@5

*xplanatory $ase studies may +e used for $ondu$ting $ausal investigations) Des$riptive $ases re-uire a des$riptive theory to +e developed +efore starting the pro0e$t) Stake 1344D6 in$luded three other typesF .ntrinsic i)e) (hen the resear$her has an interest in the $aseK .nstrumental i)e) (hen the $ase is used to understand further than (hat is o+vious to the o+server and Collective (hi$h is (hen a group of $ases are studied) *a$h of the a+ove types of $ase studies $an +e single,$ase or multiple,$ase appli$ations)

.) C4o7ce of case$ R7tCDCarlton !otel Co35an<

Rit%,Carlton (as $hosen as a $ase example# mainly +e$ause the resear$her (as a(are of the high +rand reputation of the hotel $hain in the hotel industry (orld(ide) nstead of $hoosing a leading hotel group from a parti$ular $ountry or region# the resear$her de$ided to pi$k a glo+ally reno(ned hotel $hain for addressing the glo+al issue of servi$e -uality) Hotel industry +eing a $lassi$ example of servi$e $ompanies attra$ted the resear$her to $ondu$t a resear$h on servi$e -uality in the luxurious hospitality se$tor) The resear$her is a(estru$k +y the glamorous hotel properties and (ondered if they provide an extremely high level of servi$e -uality to the $ustomers or simply provide fa$ilities (ithout $on$entrated servi$e) This led the resear$her to investigate if (hat is promised +y the hotel and expe$ted +y the $ustomer in terms of servi$e -uality is a$tually fulfilled# and if so# to (hat extent)

..

Co35onents of t4e Case St61<

>in 1344C6 proposed five $omponents of $ase studiesF 136 a study/s -uestions# 186 its propositions 1if any6# 1@6 its unit1s6 of analysis# 1C6 the logi$ linking the data to the propositions# and 1D6 the $riteria for interpreting the findings 1>in# 344C# p) 8?6) The proposition of this resear$h (ork is 1a6 to investigate if the servi$e -uality re$eived +y the $ustomer meets the expe$tations of the $ustomers and the promises made +y the hotel and 1+6 to +ring to light the dark side of CRM in this industry 1if any6) The unit of analysis is the organi%ation i)e) Rit%,Carlton) n this $ase study# the $ustomers/ per$eption of servi$e

@4

-uality is o+served highlighting (hat the $ustomers (ant and expe$t from the hotel) To link the data to the propositions# .pattern mat$hing/ is adopted (here various pie$es of information from the $ase is related to theoreti$al propositions) =or this pro0e$t# the single $ase study approa$h (as $hosen +y the resear$her and -ualitative methods of data $olle$tion (ere adopted) The reason for opting -ualitative methods (as to allo( the resear$her to $ondu$t in,depth intervie(s (hi$h (ould prove as an opportunity to re$eive information on (hat is it that $ustomers a$tually (ant and expe$t from the hotel and narrate in$idents or instan$es (here the servi$e -uality left an impression on their mind# positive or negative) Buantitative approa$h (ould +e more suita+le and appropriate had the resear$her desired to measure $ustomer satisfa$tion or loyalty) The resear$her aims to resear$h on servi$e -uality and the possi+le dark side to CRM (hi$h is definitely linked to $ustomer satisfa$tion and loyalty# ho(ever# his aim for this pro0e$t is not to measure $ustomer satisfa$tion) =o$us groups and dire$t o+servations (ere also appropriate (ays to resear$h (hi$h (ould +e $lassified under -ualitative methods)

.,

Data collect7on

n $ase studies# data $olle$tion is treated as a design issue that shall enhan$e the $onstru$t and internal validity of the study as (ell as the external validity and relia+ility) >in 1344C6 identified six primary sour$es of eviden$e for $ase study resear$h (hi$h are do$umentation# ar$hival re$ords# intervie(s# dire$t o+servation# parti$ipant o+servation and physi$al artifa$ts) t is to +e noted that not all sour$es are essentially re-uired in every $ase studyK ho(ever# the importan$e of multiple sour$es of data to the relia+ility of the study is (ell esta+lished) No single sour$e has an a+solute advantage over the othersK rather# they might +e $omplementary and $ould +e used in tandem) Thus# a $ase study should use as many sour$es as are relevant to the study) Ta+le @ indi$ates the strengths and (eaknesses of ea$h type)
SO&RCE OF STRENGT!S WEAKNESSES

C?

E(%DENCE Do$umentation

sta+le F repeated revie( uno+trusive F exist prior to $ase study exa$tF names et$) +road $overageF extended time span

retrieva+ilityF diffi$ult +iased sele$tivity reporting +ias F refle$ts author +ias a$$ess F may +e +lo$ked

!r$hival Re$ords ntervie(s

Same as a+ove pre$ise and -uantitative

Same as a+ove priva$y might inhi+it a$$ess

targeted , fo$uses on $ase study topi$ insightful , provides per$eived $ausal inferen$es

+ias due to poor -uestions response +ias in$omplete re$olle$tion reflexivity , intervie(ee expresses (hat intervie(er (ants to hear

Dire$t :+servation

reality , $overs events in real time $ontextual , $overs event $ontext

time,$onsuming sele$tivity , might miss fa$ts reflexivity , o+serverPs presen$e might $ause $hange $ost , o+servers need time

2arti$ipant :+servation

Same as a+ove insightful into interpersonal +ehaviour

Same as a+ove +ias due to investigatorPs a$tions

2hysi$al !rtifa$ts

insightful into $ultural features insightful into te$hni$al operations

sele$tivity availa+ility

Table 3$ T<5es of e871ence; t4e7r stren2t4s an1 0ea/nesses So6rce$ *7n @#,, ; 5. .-A

C3

n this pro0e$t# data $olle$tion has +een +oth primary and se$ondary) nitially# se$ondary data (as $olle$ted through the medium of existing arti$les# 0ournals and +ooks on the availa+le resear$h relating to CRM in general# servi$e -uality# $ustomer satisfa$tion and $ustomer loyalty) The data (as filtered and sorted and relevant portions pertaining to the hotel industry (ere fo$ussed on +y the resear$her) The advantage of $olle$ting se$ondary data (as it (as monetarily $heap and easily a$$essi+le) The se$ondary data $olle$ted (as helpful in addressing the resear$h -uestions in $om+ination (ith the primary data $olle$ted) 2rimary data (as $olle$ted +y the resear$her through in,depth intervie(s $ondu$ted and fo$us group dis$ussions on (hat the $ustomers really (ant and expe$t# (hat is the dark side to CRM and ho( $an it +e redu$ed)

.,.# Doc63entat7on
n a generali%ed (ay# &do$umentation is any $ommuni$a+le material su$h as text# video# audio# et$# used to explain some attri+utes of an o+0e$t# system or pro$edure' 19ikipedia# 8??E6) Do$uments in$lude letters# memoranda# agendas# study reports# or any items that $ould add to the data +ase) The validity of the do$uments should +e $arefully revie(ed in order to avoid in$orre$t data +eing in$luded in the data +ase 1>in# 344C6) The do$umentation for this resear$h in$ludes data in the form of arti$les and 0ournals providing information on CRM# (e+site information on the $ase i)e) Rit%,Carlton# 0ournals and arti$les on the hotel industry# a+out the hotel and its servi$e -uality and $ustomer satisfa$tion surveys $ondu$ted)

.,.2 Foc6s Gro65s

=o$us groups are a form of -ualitative resear$h (here+y a group of people are -uestioned a+out their attitude to(ards a produ$t# servi$e# $on$ept# advertisement# idea# or pa$kaging) The -uestions are asked in an intera$tive group setting (here parti$ipants are free to dis$uss their opinions# thoughts and vie(s (ith other group mem+ers 19ikipedia# 8??E6) =o$us groups are under,used in so$ial resear$h# although they have a long history in market resear$h 1Morgan 34556# and more re$ently in medi$al resear$h 12o(ell L

C8

Single 344E6) There are several definitions of a fo$us group in the literature# +ut features like &organi%ed dis$ussion' 1Iit%inger 344C6# &$olle$tive a$tivity' 12o(ell et al 344E6# &so$ial events' 1;oss L Lein+a$h 344E6 and &intera$tion' 1Iit%inger 344D6 identify the $ontri+ution that fo$us groups make to so$ial resear$h) =o$us groups $an +e used at some of the follo(ing instan$es) 3) 2reliminary or exploratory stages of the study 1Ireuger 34556K 8) During a study# to evaluate or develop a parti$ular programme of a$tivities 1Ra$e et al 344C6K or after a programme has +een $ompleted# to assess its impa$t or to generate further avenues of resear$h) @) *ither as a method in their o(n right or as a $omplement to other methods# espe$ially for triangulation 1Morgan 34556 and validity $he$king) n the present study# the resear$her moderated fo$us groups to understand (hat do $ustomers really (ant and expe$t from a luxury hotel# if there is a servi$e failure of any sort due to expe$tations +eing under,met or the $ompany not providing (hat they promised# (hat is the servi$e re$overy the $ustomer expe$ts# gain some interesting information and kno(ledge a+out their previous experien$es (ith luxury hotels and also identify the possi+le dark side to CRM in $ontext to Rit%,Carlton and luxury hotel industry at large) =o$us groups help to explore or generate hypotheses 12o(ell L Single 344E6) The resear$her gained different perspe$tives a+out $ustomer (ants and expe$tations (hi$h helped him analy%e the $ase deeply) The re$ommended strength per group is usually six to ten 1Ma$ ntosh 344@6# ho(ever# some resear$hers used upto fifteen people 1;oss L Lein+a$h 344E6 or as fe( as four 1Iit%inger 344D6) Num+ers of groups vary# some studies $ondu$ting only one meeting (ith ea$h of several fo$us groups 17urgess 344E6# others meeting the same group several times) =o$us group sessions usually last from one to t(o hours) The resear$her for his study met the t(o fo$us groups 0ust on$e (ith an average strength per group of five) The average duration of fo$us groups (as one and half hours# (herein the mem+ers (ere deeply engrossed in their dis$ussion and the resear$her gained useful information from the deep,rooted# passionate and heart,to,heart dis$ussion)

C@

The main topi$s of dis$ussion at the fo$us groups (ere as follo(s) 9hat the $ustomer (ants and expe$ts from a luxury hotel< 9hat is the dark side to CRM in the luxury segment hotel industry< s it only the gaps in servi$e -uality or there is more to the dark side< n $ase of servi$e failure# (hat is the expe$ted servi$e re$overy from the $ustomers/ point of vie(< Does Rit%,Carlton live up to the $ustomer expe$tations< f you (ere a $ustomer of Rit%,Carlton# (hat (ould your expe$tations +e< 9hat re$ommendations (ould you give to possi+ly redu$e the dark side of CRM for hotel industry at large<

.,.3 %nter87e0s
!n intervie( is a $onversation +et(een t(o or more people i)e) the intervie(er and the intervie(ee# (here intervie(ees are -uestioned +y the intervie(er to o+tain information) ntervie(s $an +e divided into t(o rough types# intervie(s of assessment and intervie(s for information) ntervie(s $an also +e divided into three forms, stru$tured# semi, stru$tured and non stru$tured 19ikipedia# 8??E6 The resear$her $hose to $ondu$t semi stru$tured intervie(s after (eighing the advantages and disadvantages of the method 1ta+ulated in Table A) This method suited the resear$h most appropriately and the resear$her (as a+le to $olle$t data on the $ase through in,depth semi stru$tured intervie(s $onsisting of fe( open ended -uestions (hi$h allo(ed a t(o,(ay $ommuni$ation +et(een the intervie(er and intervie(ee and the intervie(ee gave un+iased opinions (hi$h proved to +e a useful pool of resour$es for the resear$her to analy%e the situation and provided him (ith deeper understanding of the su+0e$t and ena+led a$$urate $omprehension) The semi stru$tured intervie( is a fre-uently used -ualitative method) n its 2iagetian version# the $lini$al,$riti$al method# has +een (ell des$ri+ed and dis$ussed 1Castorina et al) 3454K Honey 345GK 2iaget 348E# 34CGK Turiel 345@K Ainh,7ang 34EE6) The semi stru$tured intervie( $an +e defined as a &method of data $olle$tion (hi$h involves an

CC

intera$tion +et(een an intervie(er and intervie(ee for (hi$h the purpose is to o+tain valid and relia+le information' 1Neit%s$hman L Neit%s$hman# 8??86) n +rief# it is a $onversation (ith a purpose 1Iahn and Cannell# 34DG6) n,depth intervie( is an open,ended# dis$overy,oriented method that is (ell suited for des$ri+ing +oth program pro$esses and out$omes from the perspe$tive of the target audien$e or key stakeholder) The goal of the intervie( is to deeply explore the respondent/s point of vie(# feelings and perspe$tives) n this sense# in,depth intervie(s yield information) Some of the key $hara$teristi$s that differentiate an in,depth# -ualitative resear$h intervie( from a regular intervie( in$ludeF O5enDen1e1 =6est7ons$ Buestions should +e (orded so that respondents $annot simply ans(er yes or no# +ut must expound on the topi$) =or example# the -uestion should +e &(hat makes you as a $ustomer feel that you are satisfied (ith your stay at the hotel<' rather than asking &do you as a $ustomer# feel satisfied<' Se37Dstr6ct6re1 For3at$ !lthough there should +e some pre,planned -uestions to ask during the intervie(# the resear$her must also allo( -uestions to flo( naturally# +ased on information provided +y the respondent) The resear$her should not insist upon asking spe$ifi$ -uestions in a spe$ifi$ order) n fa$t# the flo( of the $onversation di$tates the -uestions asked and those omitted# as (ell as the order of the -uestions) See/ 6n1erstan17n2 an1 7nter5retat7on$ The intervie(er should try to interpret (hat heNshe is hearing# as (ell as seek $larity and a deeper understanding from the respondent throughout the intervie() Con8ersat7onal$ The intervie(er should +e $onversational# even though hisNher role is primarily of a listener) There should +e smooth transitions from one topi$ to the next) Recor17n2 res5onses$ The responses should +e re$orded# typi$ally (ith audiotape and (ritten notes 1i)e) field notes6)

CD

Recor1 obser8at7ons$ The intervie(er should o+serve and re$ord non,ver+al +ehaviors on the field notes as they o$$ur) Recor1 reflect7ons$ The intervie(er should re$ord hisNher vie(s and feelings immediately after the intervie( as (ell) n essen$e# in,depth intervie(s involve not only -uestioning# +ut the systemati$ re$ording and do$umenting of responses $oupled (ith intense pro+ing for deeper meaning and understanding of the responses) Thus# in,depth intervie(ing often re-uires repeated intervie( sessions (ith the target audien$e under study) Unlike fo$us group intervie(s# in,depth intervie(s o$$ur (ith one individual at a time to provide a more involving experien$e)

A18anta2es

D7sa18anta2es

CE

The semi stru$tured intervie( is the most ade-uate tool to $apture ho( a person per$eives a parti$ular domain) ts $om+ination of faith in (hat the su+0e$t says (ith the s$epti$ism a+out (hat sheNhe is saying# a+out the underlying meaning# indu$es the intervie(er to $ontinue -uestioning the su+0e$t in order to $onfirm the hypothesis a+out hisNher +eliefs 1Honey 345G6)

t is a time $onsuming method# re-uiring not only more time to $olle$t the data +ut also to analy%e them)

Some training is essential in order to avoid t(o different possi+le effe$ts in the intervie(F a6 the suggestion of ans(ers or +6 not asking enough due to a $ertain fear to +ore the intervie(ee)

!llo(s deepening# dis$riminating# and $larifying $ustomer/s $on$eptions on any general su+0e$t and on maltreatment in parti$ular)

9hile the original s$ript of the intervie( guarantees uniformity of topi$s a$ross the (hole sample# ea$h intervie( is different due to the ne( -uestions eli$ited +y the parti$ular ans(ers given +y the intervie(ee)

The semi stru$tured intervie( $an in$orporate different materialF dilemmas# pra$ti$al situations to +e solved# stories# o+0e$t manipulation# et$# as a +asis to ask on a parti$ular topi$)

The use of semi stru$tured intervie(s serves also to test other types of material)

Table $ A18anta2es an1 D7sa18anta2es of Se37 str6ct6re1 7nter87e0s 1Cres(ell# 344GK Den%in L Lin$oln# 3445 and Silverman# 8???6

CG

T4e "rocess The foremost task to +e a$$omplished +y the resear$her (as to find intervie(ees) The resear$her (as su$$essful in finding some intervie(ees from different $ountries and $ulture) The resear$her intervie(ed travelers staying at luxury hotels and gained important kno(ledge a+out the resear$h su+0e$t) The resear$her also managed to intervie( some staff mem+ers of the luxury hotels to gain a diversified perspe$tive to his resear$h and add another dimension to his (ork) The in,depth intervie(s $ondu$ted +rought out some uni-ue $ustomer responses (hi$h further helped in deeply analy%ing the su+0e$t) The intervie(ees (ere re-uested to sign a $onsent form stating that they (ere (illingly +eing intervie(ed @A55en179 #A. The intervie( +egan (ith an attempt to minimi%e the hierar$hi$al situation so that the su+0e$t feels $omforta+le talking (ith the intervie(er) !n intervie( s$ript (as used# $onsisting of a set of -uestions guiding the intera$tion) Nevertheless# as the aim (as to $apture as mu$h as possi+le the su+0e$t/s thinking a+out the topi$# the intervie(er follo(ed in depth the pro$ess of posing ne( -uestions after the first ans(ers (as given) The intervie( lasted averagely for forty five minutes to one hour) The resear$her +ought the intervie(ees 1travelers6 a drink ea$h and some sna$ks for volunteering to +e intervie(ed) The out$ome of the intervie( (as a mixed +ag of responses and vie(s on the topi$ (hi$h allo(ed the resear$her to analy%e the resear$h su+0e$t (ith a diversified perspe$tive) The intervie(ers felt free to intera$t (ith the intervie( and gave some frank and honest vie(s) The resear$her (as su$$essful in en$ouraging most of the intervie(ees to engross themselves deeply into the $onversation) There (ere some respondents (ho (ere not $onvin$ed enough to parti$ipate (hole heartedly# ho(ever# some valua+le information (as $olle$ted through their half hearted parti$ipation as (ell) The details of intervie(s $ondu$ted are ta+ulated in Table ') The main -uestions asked to intervie(ees 1$ustomers6 that helped in addressing the resear$h -uestions are as follo(s) 9hat (ould you as a $ustomer expe$t from your stay at Rit%,Carlton< To (hat extent Does Rit%,Carlton meet your expe$tations<

C5

s there a dark side to CRM at the Rit%,Carlton< Does Rit%,Carlton have any gaps in servi$e -uality< !re there any other negative aspe$ts of the servi$e delivered at Rit%,Carlton< n $ase of servi$e delivery not meeting your expe$tations# (hat is the servi$e re$overy you desire< 9hat re$ommendations (ould you give to possi+ly redu$e the dark side of CRM at Rit%,Carlton and for hotel industry at large< !nything else# you (ould like to share a+out Rit%,Carlton<

The main -uestions asked to the employees of Rit%,Carlton (hen intervie(ed (ere as follo(s) 9hy do you (ork at Rit%,Carlton< !re u happy (orking (ith this hotel< Do gaps in servi$e -uality exist at Rit%,Carlton< Ho( are they dealt (ith< s there anything you (ould like to mention as a negative aspe$t at Rit%, Carlton< Do $ustomers appre$iate the efforts made +y the hotel to ensure superior servi$e -uality< !nything else that you (ould like to share<

C4

Locat7on Rit%,Carlton# Du+ai 7ur0 !l !ra+# Du+ai Rit%# London Aarious Hilton properties in C 8 @ D

Tra8elers 7nter87e0e1 3 Nil 3 Nil Nil Nil 3 Nil

Staff 7nter87e0e1

London Rit%# 2aris 8 Le Meridean# 2aris 3 Hotel !rts# 7ar$elona 1Rit%, C Carlton property6 Hilton# 7ar$elona 8

Table '$ Deta7ls of 7nter87e0s con16cte1 across fo6r 5o56lar 4ol71a< 1est7nat7ons The analysis se$tion shall provide deep insight into the findings through the methodology adopted +y the resear$her) The limitations of the methodology and the diffi$ulties fa$ed +y the resear$her shall +e dis$ussed to(ards the end of this paper)

.#- Data Anal<s7s

Data analysis $onsists of &examining# $ategori%ing# ta+ulating# or other(ise re$om+ining the eviden$e to address the initial propositions of a study' 1>in# 344C6) The resear$her relied on experien$e and the literature to present the analysis using various interpretations) The methodology adopted i)e) dire$t o+servations# do$umentation# fo$us groups and in,depth intervie(s helped the resear$her to a$hieve the resear$h o+0e$tives and propositions and helped stru$ture the analysis and provide some dark side to CRM in the luxury hotel segment) The resear$h $ondu$ted also put the resear$her in a position to voi$e re$ommendations to the managers of the luxury hotels dis$ussed in later portions of the paper) The data (as analy%ed in depth to interpret the $ustomers/ perspe$tive regarding the servi$e -uality and their responses to the dark side)

.## Ke< 7ss6es of Data collect7on$ Rel7ab7l7t<; (al717t< an1 L737tat7ons

n the general sense# relia+ility is the &$onsisten$y' or &repeata+ility' of the resear$h measures 1so$ial resear$h methods# 8??E6) Relia+ility and validity# in resear$h# refer

D?

spe$ifi$ally to the measurement of data as they (ill +e used to ans(er the resear$h -uestion) n most $ases# the instrument that measures your varia+les is the $entral issue in determining the relia+ility and validity of the dataK ho(ever the data analysis pro$ess often is also an issue if the data unstru$tured) 9hatever data $olle$tion method is used# the intent must +e a$$ura$y) The relia+ility of data $olle$tion refers to its $onsisten$y# sta+ility# and repeata+ility,all of (hi$h determine ho( mu$h you $an rely on the results 1Nettom# 8??E6) The potential for over,relian$e on do$ument as eviden$e in $ase studies has +een $riti$i%ed) There $ould +e a danger of this o$$urren$e if the resear$her is inexperien$ed and mistakes some types of do$uments for unmitigated truth 1>in# 344C6) The relia+ility of dire$t o+servation is a main $on$ern) Using multiple o+servers is one (ay to guard against this pro+lem) The resear$her ensured that he (as un+iased in all dire$t o+servations# intervie( interpretations and fo$us group out$ome analysis# providing information as he $olle$ted (ithout any personal $hanges or +iased analysis) The resear$her provides assuran$e that the data $olle$tion and analysis (as done in a manner that (ould +e relia+le and valid for future referen$es) Bualitative resear$h has +een $riti$i%ed on grounds of relia+ility and validityK ho(ever# it (as the most appropriate approa$h for the resear$h and (as $arried out religiously and sin$erely) This study (as su+0e$t to $ertain limitations that shall +e dis$ussed in this se$tion) Some of the ma0or limitations are as follo(s) The resear$her did not have suffi$ient time to $ondu$t a further detailed resear$h on the dark side of CRM in the hotel industry) The method used for primary data $olle$tion (as fo$us groups and in,depth intervie(s and due to time $onstraints# only t(o fo$us groups and a fe( intervie(s $ould +e $ondu$ted) There (as not suffi$ient time and (ord availa+ility to have multiple $ase studies for the resear$h) n addition# $ondu$ting a further detailed study re-uires highly expensive data $olle$tion and thus# this (as +eyond the author/s finan$ial rea$h)

D3

Sin$e -ualitative resear$h is $hara$teri%ed +y su+0e$tivity# intervie(ees and fo$us group mem+ers might have +een +iased in their responses) Ho(ever# the author (as sensitive to this issue and adopted all the possi+le measures to $ountera$t this aspe$t) The follo(ing se$tion leads the reader into the $ase study and analysis (hi$h shall provide the reader (ith valua+le kno(ledge on the $ustomers/ per$eption of servi$e -uality and (hat they vie( as the dark side to CRM)

.#2 S<no5s7s
This se$tion $overed the literature on resear$h methods and design and explained the approa$h adopted +y the resear$her for data $olle$tion) 2rimary and se$ondary data (as $olle$ted over a period of t(o months and the findings have +een analy%ed and interpreted in the follo(ing se$tion) The relia+ility and validity issue (as kept in mind) The follo(ing se$tion leads the reader into the $ase study and analysis (hi$h shall provide the reader (ith valua+le kno(ledge on the $ustomers/ per$eption of servi$e -uality and (hat they vie( as the dark side to CRM and ho( the dark side $an +e redu$ed) The limitations of the data $olle$tion have +een mentioned +riefly)

C4a5ter '$ Case st61<

No(# the resear$her shall introdu$e the servi$e provider Rit%,Carlton Hotel Company# L)L)C) and provide a +rief +a$kground of the hotel $hain +efore dis$ussing the servi$e -uality at Rit%,Carlton and highlighting some dark sides (hi$h have +een dis$overed

D8

mainly through $ustomer rea$tions during intervie(s# fo$us group dis$ussions and dire$t o+servations)

'.#

R7tCDCarlton$ An O8er87e0

Bac/2ro6n1$ The story of luxury hotel $hain .Rit%,Carlton/ +egins (ith CQsar Rit% 1pi$ture given +elo(6# (ell kno(n in the hotel industry as &the 2in* of hoteliers and hotelier to 2in*s> and (ho +elieved that the &$ustomer is king'# similar to the ndian +elief &At7t47 1e8o b4a8a4E@A55en179 2A) His name (as asso$iated (ith the most reno(ned hotels of his day# in$luding the ;rand Hotel in Monte Carlo# the Savoy in London# and then as manager of The Rit% in 2aris# starting in 3545# and The Carlton in London# opened in 34?E) 2aris and London hotel names $om+ined ultimately for the Rit%,Carlton $om+ination (e kno() Cesar Rit% esta+lished the +en$hmark for luxury hotels in *urope# forming the frame(ork for the Rit%,Carlton servi$e philosophy# (ith $omments likeF :?ever say no $hen a client as2s for somethin*< even if it is for the moon. @ou can al$ays try )' !s for the instantly re$ogni%a+le logo 1pi$ture given alongside6# Cesar Rit% sele$ted the $ro(n# sym+oli$ of the 7ritish royal seal# and the lion# signifying a finan$ial +a$ker) Despite his death in 3435# his (ife Marie $ontinued the tradition of opening hotels in his name) The original Rit%,Carlton hotel (as +uilt in 7oston# Massa$husetts and opened on May 34# 348G) The Rit%,Carlton 7oston exemplified the vision of Cesar Rit%# refle$ting the royal atmosphere and treatment# room rates soared to the then si%a+le sum of R3D per night) Soon other Rit%,Carlton hotels follo(ed in ma0or $ities like Ne( >ork# 2hiladelphia# and 2itts+urgh) Ho(ever# only the 7oston hotel survived the ;reat D@

Depression) !n interesting histori$al note states that *d(ard 9yner# the 7oston hotel/s founder# kne( the Rit%,Carlton must maintain an aura of su$$ess# despite the gloom of the ;reat Depression) His ans(er (as elementary) He kept the lights on in va$ant rooms# to suggest one hundred per$ent o$$upan$y) The Rit%,Carlton# 7oston (as an innovator and revolutioni%ed hospitality in !meri$a +y $reating in a luxury setting# a private +ath in guest room # lighter fa+ri$s in the guest room to allo( for more thorough (ashing# (hite tie and apron uniforms for the (ait staff# +la$k tie for the Maitre dP and morning suits for all other staff# $ondu$ive to a formal# professional appearan$e # extensive fresh flo(ers throughout the pu+li$ areas# ! lS $arte dining# providing $hoi$es for diners# gourmet $uisine# utili%ing the genius and $ooking methods of !uguste *s$offier1the $ulinary genius6and intimate# smaller lo++ies for a greater personali%ed guest experien$e T4e ta/eo8er$ ! $orporate milestone o$$urred in 345@# (ith the sale of the 7oston Rit%, Carlton and the esta+lishment of The Rit%,Carlton Hotel Company# L)L)C) :ver the next ten years# the $ompany expanded rapidly# adding thirty hotels) n 344D# Marriott nternational pur$hased a C4T stake in The Rit%,Carlton Hotel Company and in 3445 pur$hased an additional D?T stake in the $ompany giving it 44T o(nership of the $ompany) The Rit%,Carlton Hotel Company partnered (ith 7ulgari in 8??3 to operate a $hain of hotels o(ned +y and operated under the 7ulgari +rand) ) Today fifty nine hotels

DC

lo$ated in ma0or $ities a$ross 8? $ountries (orld(ide# s$attered from San =ran$is$o to Seoul# Iorea# from 7oston to 7ali# display the Rit%,Carlton logo @A55en179 3A. 1Rit%,Carlton# 8??EK 9ikipedia# 8??E and Lampton# 8??@6 R7tCDCarlton an1 =6al7t< A0ar1sF Sin$e its in$orporation in 345@# The Rit%,Carlton Hotel Company# L)L)C re$eived all the ma0or a(ards the hospitality industry $an +esto() The Rit%,Carlton Hotel Company is the first and only hotel $ompany honored (ith the "Malcolm #aldrige $ational %ualit& 'ward/ from the United States Department of Commer$e) The Rit%,Carlton is also the only servi$e $ompany to re$eive this prestigious a(ard t(o times# in 3448 and 3444 and has (on various other a(ards as (ell . @A55en179 A

'.2

R7tCDCarlton an1 t4e FGol1 Stan1ar1sE of Ser87ce =6al7t<

The foundation of the Rit%,Carlton is a set of &gold standards' +y (hi$h they operate and it en$ompasses its values and philosophy and in$ludes the .Credo( Motto( )hree *teps of *er+ice( *er+ice ,alues and -mplo&ee .romise/)

'.2.#

T4e Cre1o

The highest mission as stated +y Rit%,Carlton is &genuine $are and $omfort of our guests)' They pledge to provide the finest personal servi$e and fa$ilities to their guests (ho (ould en0oy a &(arm# relaxed# yet refined am+ien$e)' The Rit%,Carlton experien$e &enlivens the senses# instills (ell,+eing# and fulfills even the unexpressed (ishes and needs' of the guests)

'.2.2

Motto

The Motto of the $ompany is that at Rit%,Carlton Hotel Company# L)L)C# &9e are ladies and gentlemen serving ladies and gentlemen#' (hi$h exemplifies the anti$ipatory servi$e provided +y all staff mem+ers of the hotel)

DD

'.2.3

T4ree Ste5s of Ser87ce

The three steps of servi$e that are instru$ted to all staff mem+ers are as follo(s) 3) ! (arm and sin$ere greeting) Use the guest/s name) 8) !nti$ipation and fulfillment of ea$h guest/s needs) @) =ond fare(ell) ;ive a (arm good,+ye and use the guest/s name)

'.2.

Ser87ce (al6es

The servi$e values are su$h that the staff mem+ers feel proud to +e providing servi$e rather than simply employed at Rit%,Carlton +e$ause of the follo(ing reasons) 3) They +uild strong relationships and $reate Rit%,Carlton guests for life) 8) They are al(ays responsive to the expressed and unexpressed (ishes and needs of their guests) @) They are empo(ered to $reate uni-ue# memora+le and personal experien$es for their guests) C) They understand their rule in a$hieving the Iey Su$$ess =a$tors and $reating The Rit%,Carlton Mysti-ue) D) They $ontinuously seek opportunities to innovate and improve The Rit%,Carlton experien$e) E) They o(n and immediately resolve guest pro+lems. G) They $reate a (ork environment of team(ork and lateral servi$e so that the needs of the guests and the staff mem+ers are met) 5) They have the opportunity to $ontinuously learn and gro() 4) They are involved in the planning of the (ork that affe$ts them) 3?) They are proud of their professional appearan$e# language and +ehaviour) 33) They prote$t the priva$y and se$urity of their guests# fello( employees and the $ompany/s $onfidential information and assets)

DE

38) They are responsi+le for un$ompromising levels of $leanliness and $reating a safe and a$$ident,free environment)

'.2.' E35lo<ee "ro37se

The Ladies and ;entlemen /staff members0 serving Ladies and ;entlemen /guests0 are the most important resour$es in the servi$e $ommitment of the $ompany) !pplying the prin$iples of trust# honesty# respe$t# integrity and $ommitment# the $ompany nurtures and maximi%es talent to the +enefit of ea$h individual and the $ompany) The Rit%,Carlton fosters a (ork environment (here &diversity is valued# -uality of life is enhan$ed# individual aspirations are fulfilled# and The Rit%,Carlton Mysti-ue is strengthened') F726re ' is a simple illustration of ho( the employees/ fun$tionality and emotional engagement help in $reating the Rit%,Carlton .M&sti1ue>. F726re '$ T4e R7tCDCarlton GM<st7?6e>

M<st7?6e

E3ot7onal En2a2e3ent

F6nct7onal

'.3

R7tCDCarlton$ C6rrent Real7t<

DG

This se$tion ta+ulates @Table +6 some $urrent fa$ts a+out the $ompany (hi$h in$ludes, head-uarters# exe$utive offi$ers# num+er of hotels and employees# sales offi$e# marketing partners and +rand extensions)

!ea1?6arters E9ec6t78e Off7cers

Lo$ated at CCCD 9illard !venue# Suite 5??# Chevy Chase# Md) 8?53D# United States) Chief :perating :ffi$er and 2residentF Simon =) CooperK Chief =inan$ial :ffi$er and *xe$utive Ai$e 2resident# :perationsF Ien RehmannK 2resident# nternationalF Herve Humler D4 hotels (orld(ide in 8? $ountries 1@G $ity hotels and 88 resorts6 85#??? 33 nternational Sales :ffi$esF !tlanta# Chi$ago# Los !ngeles# Ne( >ork# 9ashington D)C)# =rankfurt# London# Tokyo# Hong Iong# Singapore and Du+ai Rit% London and Hotel Rit% Madrid Spas: 2lans for spas $ontinue at ne( or existing hotel lo$ations expanding the $ompany/s leadership position in the hotel industry) "olf: 9orld $lass golf offered at 3D Rit%,Carlton lo$ations and the golf $ourses have +een designed +y the most respe$ted names in golf in$luding ;reg Norman and Tom =a%io# and have hosted many 2;!3 and Senior 2;! events) The (it67Carlton Clu#: There are luxury residential $ondominiums lo$ated at 4 Rit%,Carlton hotels and resorts) =eatures in$lude mar+le foyers# (alk,in $losets# $ustom kit$hen $a+inetry and the servi$es of The Rit%,Carlton# in$luding t(i$e daily maid servi$e# valet# 8C,hour room servi$e# a$$ess to extensive fitness and fa$ilities)

N63ber of C6rrent !otels N63ber of e35lo<ees Sales off7ce

Mar/et7n2 "artner !otels Bran1 e9tens7ons

Lea1ers475 centres

The Rit%,Carlton Leadership Centre# laun$hed in 8???# has (el$omed thousands of senior exe$utives# managers and line staff from a various industries) The Leadership Centre has flourished as a resour$e $entre for leading organi%ations interested in +en$hmarking many +usiness pra$ti$es that led to The Rit%,Carlton re$eiving the &Mal$olm 7aldridge

The 2rofessional ;olfers/ !sso$iation

D5

National Buality !(ard' t(i$e)

Table +$ C6rrent real7t< of R7tCDCarlton !otel Co35an<; L.L.C !t this point# the reader (ould have a +asi$ kno(ledge a+out the Rit%,Carlton Hotel Company# L)L)C) The follo(ing se$tions (ould provide the reader (ith details a+out the resear$h findings leading into the analysis)

C4a5ter +$ Researc4 F7n17n2s

D4

This se$tion provides the reader (ith the key findings related to the resear$h $ondu$ted through -ualitative approa$h of in,depth intervie(s and fo$us groups

+.# Foc6s 2ro65s f7n17n2s

This se$tion shall provide the reader (ith the key findings and out$ome summari%ed from the t(o fo$us groups $ondu$ted) The findings are presented relating to ea$h of the resear$h -uestions)

+.#.# Does t4e 2a5 3o1el e95la7n t4e 1ar/ s71e of CRM:
The gap model attempts to explain the gaps in the servi$e -uality provided +y a servi$e $ompany) ! $ustomer expe$ts a $ertain level of servi$e -uality from the luxury hotel# (hi$h may not +e duly met) This (ould +e regarded as a gap in servi$e -uality) The resear$her tried to highlight the dark side of CRM $onsidering the gaps in servi$e -uality as one of the main dark sides to CRM) The mem+ers of the fo$us groups pointed out that there are .loopholes/ in every system (hi$h $an also +e $alled as gaps in the system) =or the luxury segment hotels# the main $onstituent of the dark side to CRM is the gaps in servi$e -uality) The fo$us group mem+ers felt that it (as essential for the hotel to en-uire a+out $ustomer needs) The group mem+ers felt that the hotel should kno( (hat they (ant and must make all efforts to kno( (hat they expe$t) The $ustomers expe$t a $ertain type of servi$e -uality from the luxury hotels for (hi$h they are (illing to pay a $ertain pri$e) f the $ustomers are not satisfied (ith the level of servi$e -uality provided then they (ould undou+tedly demand an explanation from the hotel) !s one of the mem+ers of the fo$us group said#
& f pay 8?? -uid for a night at a luxury hotel# expe$t high $lass servi$e) f fail to re$eive the desired level of servi$e /d rather pay GD -uid at a lo(er $onsidered hotel and re$eive the same kind of servi$e as re$eived from the so $alled $lassy 8?? -uid a night hotel)'

This statement (ell expresses the fa$t that (hen a $ustomer pays a $ertain pri$e for a room# he desires a $ertain level of servi$e experien$e) The failure in re$eiving the desired level of servi$e is a $onstituent of the dark side to CRM) E?

Sometimes# there exists a $ommuni$ation gap +et(een the hotel and its $ustomers (hi$h may lead to a servi$e gap) The mem+ers are of the vie( that luxury hotels promise a $ertain level of servi$e -uality through various $hannels in$luding advertisements# pu+li$ity# marketing# et$) Su$h a promise is made +y the hotel in order to gain +usiness and ultimately profits) This indi$ates that $ustomers mean +usiness for the hotels) Servi$e gaps indi$ate a gap in profits to a $onsidera+le extent) The gap in servi$e -uality may arise due to a gap in management per$eption# -uality per$eption# servi$e delivery andNor marketing $ommuni$ation gap) The $om+ination of these four gaps $an ultimately leads to the per$eived servi$e -uality gap) The mem+ers of the fo$us group (ere of the opinion that gaps may exist due to the hotel/s strategy to promise more than they $an a$tually deliver in order to simply gain +usiness) Su$h a strategy may adversely effe$t the reputation and +usiness of the hotel) The fo$us group mem+ers felt that the hotel must promise only (hat they $an deliver) :ne mem+er (as of the vie( that# & f you $an/t deliver don/t offer)' ;aps in servi$e -uality do exist +ut if the gaps are negligi+le the $ustomers may overlook it and $onsider the larger image) :ne mem+er said that# &9e as humans are +ound to make mistakes) 7ut the si%e of the mistake really matters) f the mistake is on$e# it may +e forgiven) Repeated mistakes are simply mis+ehaviour)' !nother mem+er made a point that & f the hotel promises say a luxury s(imming pool for leisure# it $annot provide simply a +ath tu+ si%ed pool for its guests)' The group mem+ers agreed that sometimes the gap $ould +e due to over,expe$tation from the hotel and they might misinterpret the situation $alling it a $ase of servi$e failure or gap) Some of the $ustomers may possess a high expe$tation from the hotel in terms of servi$e# (hi$h may not +e met duly +ut if the hotel has provided a standardi%ed luxury servi$e# it $annot +e +lamed for $ausing a servi$e failure (hi$h resulted in a servi$e gap) Thus# servi$e gaps may o$$ur due to hotel/s ina+ility to meet the desired servi$e -uality to its $ustomers +roadly due to t(o reasonsF 36 The hotel/s failure to live upto the promise it made to its $ustomers) 86 The hotel/s ina+ility to live up to the expe$tations of the $ustomers) To summari%e# the hotel $annot afford to have servi$e gaps in the long run for any reason (hatsoever +e$ause then it (ill simply run out of +usiness)

E3

+.#.2 %s t4ere 3ore to t4e 1ar/ s71e of CRM t4an 04at 7s e95la7ne1 7n t4e 2a5 3o1el:
The fo$us groups $ondu$ted helped the resear$her $onfirm that the gaps model (ell explain the dark side to CRM) Ho(ever# there is more to the dark side of CRM than simply servi$e gaps) The t(o other main $onstituents of the dark side are priva$y issues and $hanging tastes and personal preferen$es of $ustomers) =rom the dis$ussions of mem+ers in the fo$us group# the resear$her (as a+le to realise t(o other $omponents to the dark side of CRM (hi$h are mentioned a+ove) The mem+ers of the fo$us group (ere of the opinion that $ustomers do not like intrusion into their priva$y at any $ost# espe$ially (hen they are paying for $omfort) The luxury hotels re$ord all possi+le data +out the $ustomers in order to kno( them (ell) This a$$ording to some mem+ers $ould +e a $ase of intrusion into a $ustomer/s priva$y and personal spa$e) The $ustomers stay at the hotel for a fe( days to attain $omfort and relaxation not irritation) !s one mem+er $ommented# & (ould not pay a +om+ to get irritated +y the hotel (ho notes ea$h and every intera$tion they have (ith me)' This sho(s that all $ustomers may not prefer to allo( the hotel to kno( them in,depth +y re$ording intera$tions) The hotel may attempt to +uild a good relationship (ith its $ustomers through data storing +ut this may prove adverse for the hotel as some individuals simply do not (ant to +uild a relationship (ith the hotel) !nother signifi$ant dark side to CRM is that the taste and preferen$es of the $ustomer may $hange over time) =or this reason# it may prove useless for the hotel to keep data a+out preferen$es of the $ustomers in order to kno( their $ustomers) !s one of the mem+ers said & (ant a $omforta+le stay at the hotel# not a relationship (ith them)' !nother mem+er $ommented that & don/t (ant the hotel to kno( a lot a+out me as a person# in terms of ha+its and personal likes and dislikes) like to en0oy my personal spa$e and priva$y)'

E8

To summari%e# the resear$her realises that servi$e gaps# priva$y issues# $ustomer preferen$es and the $ustomers/ un(illingness to +uild a relationship (ith the hotel put together $an +e $alled the dark side to CRM) The hotels must kno( (hat their $ustomers (ant and not simply do (hat the hotel (ants to do to keep the $ustomers happy)

+.#.3

!o0 can t4e 1ar/ s71e of CRM be re16ce1:

Resear$h sho(s that there exists a dark side to CRM) The dark side exists mainly due to gaps in servi$e# $ustomers/ un(illingness to +uild relationships (ith the hotel# the $ustomers/ preferen$es $hanging over time and priva$y issues) n general# (hen there is a pro+lem there needs to +e a solution) f the pro+lem is not solved# it gro(s in si%e and ultimately $auses $omplete failure of the organi%ation) n the hotel industry# the dark side to CRM needs to +e addressed) The fo$us group mem+ers (ere of the opinion that servi$e gaps $an +e redu$ed +y providing effi$ient servi$e -uality of a standard (hi$h shall +e a$$epted +y a (ide range of $ustomers) The hotel must (ell understand the needs of individual $ustomers and $ater to them a$$ordingly) They must not assume a+out the $ustomers (hi$h leads to a gap in servi$e -uality) To redu$e the gap# the hotel must en-uire instead of assuming) The priva$y issues must +e taken $are of in order to redu$e the dark side) !s one mem+er said# & don/t (ant the hotel to peep into my pants and say that Sir# (e are simply trying to kno( (hat is in your pants') This statement (ell explains that $ustomers dislike their priva$y +eing invaded into and hampered as it $ompletely distur+s and annoys some $ustomers)

The hotel must seek permission of the $ustomer +efore keeping tra$k of his preferen$es) The preferen$es of the $ustomer may $hange over time and it is the hotel/s duty to keep itself updated) !s one mem+er said#

E@

& f the hotel does re$ord my likes and preferen$es during my stay# it is their responsi+ility to keep updating my likes and preferen$es over time) t is not ne$essary that if like a parti$ular (ine during my stay at one time# (ill also (ant the same (ine during my next stay) They should update my preferen$es +y asking me instead of presenting me (ith the (ine liked previously (hen $he$k into my room the next time)'

The hotels in the greed to get regular +usiness $hoose to +uild a long lasting relationship (ith their $ustomers and try to kno( them in order to please them) Ho(ever# they should respe$t some $ustomers/ de$ision to not +uild a relationship) f the hotel dis$overs that the $ustomer does not (ant to +uild a relationship it should not make an effort to attempt +uilding one) !s one mem+er said & if don/t (ant to provide personal information a+out myself to the hotel# they must respe$t my point of vie( instead of noting intera$tions +et(een the hotel and me at all possi+le instan$es)' To summari%e# the hotel must make the effort to redu$e the darker side of CRM +y providing the $ustomers (ith (hat they have promised to them# (hat the $ustomers (ant and expe$t# update kno(ledge a+out their $ustomers# respe$t the $ustomers point of vie(# not intrude into the $ustomers/ personal priva$y and not attempt +uilding a relationship (hen the $ustomer $hooses to not +uild one) =ollo(ing this se$tion# are the key findings of the intervie(s $ondu$ted +y the resear$her)

+.2

%nD1e5t4 7nter87e0 f7n17n2s

The resear$her intervie(ed $ustomers as (ell as some employees at the hotel to highlight the dark side of CRM in the luxury segment hotel industry) The key findings of the intervie( are presented +elo( relating to the resear$h -uestion)

+.2.#

C6sto3er %nter87e0s

+.2.#.# Does t4e 2a5 3o1el e95la7n t4e 1ar/ s71e of CRM:

EC

The resear$her intervie(ed travellers in 7ar$elona# Du+ai# London and 2aris to dis$over the dark side of CRM in the luxury segment hotel industry) !fter intervie(ing a num+er of travellers# the resear$her noted that a $onsidera+le $hunk of the dark side is the gaps in servi$e -uality i)e) gaps +et(een expe$ted and experien$ed servi$e -uality) The intervie(ees pointed out that a traveller has a $ertain image in mind of the luxury hotel they have +ooked along (ith a set of expe$tations (hi$h differ from individual to individual) 9hen a traveller pays a $onsidera+le amount of money they expe$t a $ertain level of servi$e in return) :ne intervie(ee said & f hotel# pay 8D? -uid a night for a luxury (ant mu$h more than a +ed# +reakfast and toilet)' The $ustomers are (illing to

sa$rifi$e an amount in return for luxury as they per$eive it themselves) :ne intervie(ee $laimed that &9hen pay for a stay at a luxury hotel# (ant luxury as defined +y me and not +y any other person)' :ften luxury hotels promise or guarantee a $ertain level of $omfort (hi$h they measure and define a$$ording to the de$isions of the management of the hotel and not ne$essarily $ustomers) This aspe$t may lead to a gap in servi$e -uality (here the $ustomer expe$ts mu$h more from the term luxury than is a$tually provided +y the hotel) :ne traveller told that he re$ently +ooked a luxury hotel and (as promised high $lass servi$e) 9hen he a$tually stayed there# he (as disgusted to su$h an extent that he de$ided to va$ate the hotel immediately) The management of the hotel did not $ooperate mu$h and the traveller lost his time# money and a looked for(ard to holiday) This servi$e gap (as not even tried to +e $losed +y the management (ho promised high $lass servi$e) The traveller disappointed from his experien$e# $ommented that it is an old saying that &promises are made to +e +roken)' The dark side of CRM is the variation in the promised servi$e -uality and the a$tual delivered -uality of servi$e) Some travellers (hen deeply involved in the intervie( mentioned that &there is a dark side to everything and (hat is more important is to see the larger pi$ture)' The dark side in the hotel industry is the ina+ility to live up to expe$tations to ea$h and every guest at the hotel) Mis$ommuni$ations do o$$ur in the hotel industry +et(een the management and guest or the guest and mem+ers of staff) This $ommuni$ation gap $an often lead to situations (here the relationship (ith the guest is spoilt forever) !s one intervie(ee shared# & don/t $are ho( they manage to

ED

deliver the servi$e expe$t them to) am paying for them to +e alert a+out (hat (ant and a(are of my expe$tations and fulfil the same)' Thus# the resear$her after intervie(ing the travellers o+served that the gap model surely does explain the dark side of CRM to -uite an extent +ut not $ompletely) The intervie(ees mentioned other aspe$ts (hi$h are also a part of the dark side and $annot +e negle$ted +y the hotel industry) +.2.#.2 %s t4ere 3ore to t4e 1ar/ s71e of CRM t4an 04at 7s e95la7ne1 7n t4e 2a5 3o1el: The gap model dis$usses that there exists gaps +et(een experien$ed and expe$ted servi$e -uality (hi$h has +een $onsidered as one of the main reasons for the dark side prevailing in the hotel industry) Ho(ever# there are some other important issues to +e dealt (ith +y the hotels in order to redu$e the dark side) Most of the intervie(ees spoke a+out priva$y issues (hi$h should +e an area of $on$ern for luxury hotels) n general# most of the luxury hotels note do(n $ustomer preferen$es# likes# dislikes# et$ to understand their $ustomers +etter) 9hat they fail to understand is that some $ustomers may simply dislike the hotels to note ea$h and every intera$tion +et(een the guest and the hotel) :ne of the intervie(ee said that & dislike the hotel trying to get to familiar (ith my personal preferen$es) do not like intrusion into my personal spa$e and priva$y)' :ne of the intervie(ees said that she does not mind the hotel keeping a re$ord of her details like name# address# $onta$t details# +irthday and anniversary) Ho(ever# she (ould not (ant the hotel to note if she has &a$$essed a pay $hannel to (at$h pornographi$ movies on the television during her stay at the hotel)' This (ould +e strongly offensive to her and she (ould pro+a+ly never go +a$k to that hotel) Some $ustomers do not like the hotel to kno( too mu$h a+out them) :ne of the intervie(ee said that a parti$ular hotel noted his preferen$e for Davidoff $igars during a previous stay) :n his next stay the hotel presented a +ox of Davidoff $igars to the guest +efore he $he$ked into his room) The intervie(ee surely appre$iated the hotel/s efforts to try to kno( (hat his preferen$es are) !t the same time# he informed the hotel that he had -uit smoking) This highlights that the

EE

hotel does not keep its re$ords updated a+out the $ustomers all the time) Tastes and preferen$es of $ustomers may $hange over time and intervie(ees felt that often the information the hotels have a+out their $ustomers is not up,to,date) :ne of the intervie(ee expressed that there is a $ertain distan$e that needs to +e maintained +y the hotel to(ards its $ustomers in terms of trying to kno( them) He said that & (ould not (ant a hotel to kno( (hat type and +rand of $ondom use) Some hotels are $apa+le of noting the +rand and type of used $ondom found in the dust+in in order to kno( more a+out their $ustomers) The hotels must not intrude into my priva$y at any $ost)' The resear$her found through intervie(ees that $ustomers get annoyed if the hotel tries to kno( them more than they (ant the hotel to kno( them) ntrusion into priva$y is not tolerated +y $ustomers) Customers appre$iate the hotels/ efforts to kno( their tastes and preferen$es if they (ant the hotel to kno( a+out it i)e) it does not offend them and also if the notes a+out the $ustomers are up,to,date) Some $ustomers may not (ant to have a relationship (ith the hotels and (ould +e highly agitated if the hotel does not respe$t their de$ision) +.2.#.3 !o0 can t4e 1ar/ s71e of CRM be re16ce1: The intervie(s $onfirmed that there surely is a dark side to CRM in the hotel industry) The intervie(ees highlighted the main $omponents that make up the dark side to +e gaps in servi$e -uality# priva$y issues# un(illingness of $ustomers to +uild relationships (ith hotels and their $hanging tastes and preferen$es (hi$h are not kept updated +y the hotel) The intervie(ees suggested some (ays (hi$h $ould possi+ly redu$e the dark side) :ne of the intervie(ees said that &if there is a gap in servi$e# the hotel must make sure that it $loses su$h gaps)' Many of the intervie(ees (ere of the opinion that the hotels $an provide (hat they promise and guarantee in order to redu$e gaps in servi$e -uality) Some intervie(ees felt that the hotel must $omprehend (hat the $ustomers expe$t from their stay and +y providing (hatever the $ustomers need# the hotels $an possi+ly redu$e the dark side) The intervie(ees strongly re$ommend that hotels must respe$t the priva$y of the guests and not note information a+out the guest (hi$h is some(hat personal) They

EG

should respe$t the fa$t that some $ustomers stay at the hotel for a holiday only and not to +uild a long lasting relationship (ith the hotel) The hotel should not try to kno( more a+out the $ustomer in hope for future +usiness if the $ustomer does not (ant so) :ne intervie(ee re$ommended that# &the hotels must do (hat the $ustomers (ant and not (hat they (ant) f the hotel tries to intrude into the priva$y of the $ustomer# they shall pro+a+ly lose the $ustomer forever)' The intervie(ees suggest that servi$e re$overy is essential to redu$e the dark side (hen there are gaps or servi$e failures) Some intervie(ees (ere of the opinion that if there is a gap in servi$e or any priva$y issue or (hatsoeverK the $ustomer may $hoose to $omplain to the management a+out it) Su$h a situation is a golden opportunity for the hotel to redu$e the dark side immediately +y appropriate $omplaint handling and ensuring that the $ustomers are pleased) The resear$her learnt that the possi+le (ays to redu$e the dark side are not too $ompli$ated to pra$ti$e) Ho(ever# the existen$e of dark side $ould +e $ompli$ated for the hotel industry) The next portion of this $hapter shall +e a summari%ed des$ription of the findings through intervie(s $ondu$ted (ith some mem+ers of staff at the luxury hotel properties) +.2.2 E35lo<ee %nter87e0s

The intervie(s $ondu$ted (ith the mem+ers of staff (ere essential in order to kno( a+out the dark side of CRM from the servi$e providers/ point of vie() The employees (ere of the opinion that the main dark side to CRM is that there many a times exist gaps +et(een servi$e expe$ted +y the $ustomer and servi$e experien$ed) The mem+ers of staff honestly admitted that sometimes it is not pra$ti$ally possi+le to please ea$h and every $ustomer) The employees shared some experien$es (ith the resear$her relating to the dark side of CRM) :ne employee said that# &:n$e (as serving +reakfast to this gentleman at his room) kno$ked on his door and a(aited permission to entry) The guest did not respond and kno$ked again in a minute or t(o) heard an angry voi$e asking me (hy haven/t

E5

$ome in after kno$king on$e) apologi%ed as soon as entered the room and re$eived no response again) served the food at the round ta+le in one $orner of the room) The guest in an agitated manner asked me to serve on the +ed instead) apologi%ed again and served on the +ed re-uesting permission to leave him to en0oy his +reakfast)' This in$ident sho(s that sometimes $ustomers expe$t $ertain +ehaviour from the hotel staff (hi$h may +e surprising to the staff) The staff must do as the $ustomer (ants to please him# even if it is not (hat the staff is trained to do +y the management) :ne employee informed that supposing a $ustomer en-uires a+out the toilet# the employees are not supposed to point out (here it is and give them dire$tions) ndeed# they are expe$ted to es$ort the guest till the door of the toilet) Some $ustomers do not like this and (ant the dire$tions ver+ally) The employees told that they are not supposed to let the guest $arry the luggage under any $ir$umstan$es) Ho(ever# there are some guests (ho prefer to $arry a part of their luggage like a +rief$ase or laptop +ag on their o(n) They do not (ish the luggage to +e tou$hed +y any mem+er of staff) !n employee said that sometimes petty in$idents may irritate the guest even if it is done +y the hotel for the guests/ (ell +eing and $omfort) Su$h situations have to +e dealt (ith $arefully and ta$tfully in order to please the $ustomer) Sometimes# the staff makes an attempt to +e friendly (ith the guests and the guests misinterpret it to +e intrusion into personal spa$e) :ne employee said that (hile serving one lady guest at the hotel he tried to +e friendly (ith her in order to make her feel $omforta+le and (arm at the hotel) Ho(ever she misinterpreted it to +e flirting) The employee said that she a$tually $omplained to the manager saying that he (as trying to &flirt (ith me +e$ause /m hot and sexy)' The employee said that if he had not +een (arm and friendly she (ould pro+a+ly $omplain that he (as &extremely rude and inhospita+le') The resear$her learnt that often mem+ers of staff have to serve the $ustomers to please them out of mere duty rather than (illingness) :ne of the employees $onfessed that# &Many times have had to serve the $ustomers in a parti$ular matter merely out of $ompulsion)' :ne of the dark sides to CRM is also the fa$t that employees may not +e serving (hole,heartedly)

E4

The follo(ing $hapter shall +e an analysis se$tion (here the resear$h -uestions shall +e addressed +lending all the information gathered +y the resear$her through various $hannels) The reader shall also find some interesting -uotes +y intervie(ees and fo$us group mem+ers (hi$h have not +een mentioned earlier in the resear$h findings se$tion) The analysis shall lead to the $on$lusion of the paper)

C4a5ter )$ Anal<s7s of Researc4 F7n17n2s

This se$tion shall provide the reader (ith analyses of the resear$h findings) The resear$h -uestions have +een addressed to a large extent through the help of the resear$h $ondu$ted) G?

).#

Does t4e 2a5 3o1el e95la7n t4e 1ar/ s71e of CRM:

2arasuraman et al 134556 $ame up (ith the .gap model/ (hi$h explained the five gaps i)e) The Management 2er$eption ;ap# The Buality Spe$ifi$ation ;ap# The Servi$e Delivery ;ap# The Marketing Communi$ation ;ap# and The 2er$eived Servi$e Buality ;ap that exist in servi$e -uality of a servi$e provider) These five gaps have +een des$ri+ed in the literature revie( se$tion) The model has +een applied to Rit%,Carlton to investigate if there is a dark side to CRM in the $ase of Rit%,Carlton# and to (hat extent does this model explain the dark side) The follo(ing portion of this $hapter shall provide analysis +ased on the individual gaps mentioned in the .gap model)/

).#.# R7tCDCarlton an1 t4e GGa5 3o1el>

#. T4e Mana2e3ent "erce5t7on Ga5 This gap o$$urs (hen the mana*ement perceives the quality e%pectations inaccurately due to various reasons as mentioned earlier in the literature revie( se$tion) n the $ase of Rit%,Carlton# primary resear$h $ondu$ted proves that management per$eption gap does o$$ur to some extent) The motto of the hotel is# &9e are ladies and gentlemen serving ladies and gentlemen)' This motto definitely sounds promising and dignified +ut there is a gap that exists here) The hotel may undou+tedly re$ruit fine -uality staff and train them appropriately to deliver high -uality servi$e) Ho(ever# some $ustomers may simply not (ant su$h treatment (hile they are on holiday) =or example# one $ustomer intervie(ed at The Rit%# London said# & am expe$ted to (ear a 0a$ket and tie in some areas of the hotel like the dining room) am here on holiday and (ould +e most $omforta+le in a pair of $asuals strolling around the hotel) don/t (ant to pay C?? pounds a night to not +e a+le to (ear (hat (ant on holiday)' The management of Rit%,Carlton surely tries its level +est to deliver servi$e of high -uality# +ut they must understand that some $ustomers do not (ant to +e so elegantly dealt (ith all the time) Some $ustomers expe$t a $asual atmosphere (hile they are on

G3

holiday and a very $lassy and formal set up $ould make them feel uneasy and un$omforta+le) :ne $ustomer intervie(ed at the Hotel !rts# 7ar$elona expressed that#

&The hotel is $lassy and elegant) The servi$e is remarka+le) Ho(ever# a relaxed $ity and

(ish the hotel atmosphere (as

slightly $asual and relaxed) Sometimes# an elegant set up may +ring you dis$omfort mentally) 7ar$elona is feel $ons$ious moving around the hotel in a relaxed manner +e$ause it is a +it too glamorous for a destination like 7ar$elona)'

Some of the fo$us group mem+ers felt that it (as most important for a luxury hotel to +e $ustomer oriented in pra$ti$e) The management must make all the efforts to kno( a$$urately (hat the $ustomers expe$t)

These examples highlight the fa$t that there surely is a management per$eption gap that exists and the management must try to $lose this gap) Management must kno( (hat the $ustomers at their hotels (ant and not try to provide an extra $lassy am+ien$e if it is not desired +y all the $ustomers)

2. T4e =6al7t< S5ec7f7cat7on Ga5 This gap signifies that service quality specifications are not consistent $ith mana*ement perceptions of quality e%pectations earlier explained in the literature revie( $hapter) n the $ase of Rit%,Carlton# the management is surely a team of expert professionals) Ho(ever# a minute -uality spe$ifi$ation gap does exist) 2rimary resear$h sho(s that some employees (hen intervie(ed $onfess that &many,a,times they have to +ehave in a manner they do not (ish to +ehave in)' The mem+ers of staff have to +e prim and proper all the time and respond to $ustomers in a $ertain manner even if the $ustomer is outright rude to(ards them) This surely hampers the inner motivation of employees and they perform 0ust +e$ause they are &supposed to and expe$ted to +ehave and serve in a parti$ular manner' and not +e$ause they (ish to) The expe$tations of servi$e differ among individual $ustomers and the hotel must +e a(are of (hat is the expe$ted servi$e) :ne of the fo$us group mem+ers said# &Servi$e -uality is (hat the $ustomer defines it to G8

+e or (ants it to +e) t is not (hat the management per$eives it to +e) t should +e purely +ased on the per$eption of the $ustomers)' This gap (as found to +e minute in the $ase of Rit%,Carlton from (hatever primary resear$h that (as $ondu$ted) Ho(ever# this gap must +e filled in order to ensure servi$e -uality as desired +y the $ustomers)

3. T4e Ser87ce Del78er< Ga5 This gap means that quality specifications are not met #y performance in the service production and delivery process due to reasons that $an +e divided into three $ategories as dis$ussed earlierF management supervision# employee per$eption of spe$ifi$ations and rulesN$ustomer needs and (ishes# and a la$k of te$hnologi$alNoperational support) n the $ase of Rit%,Carlton# su$h gap does not really exist at a $onsidera+le s$ale as seen from primary resear$h) The $ustomers intervie(ed a$ross the four properties mentioned nothing a+out mismanagement or supervision) n fa$t# they appre$iate the overall management) The point they mentioned (as that sometimes the employee per$eption of $ustomer needs and (ants may differ from (hat the $ustomers a$tually (ant) The employees are trained to deliver servi$e of high -uality +ut may la$k $apa+ility to have $omplete kno(ledge of (hat the $ustomers (ant) The $ustomers pass do(n re-uests like hypoallergeni$ pillo(s# parti$ular (ines# $ho$olates# et$ (hi$h is met +y the hotel staff) Ho(ever# the $ustomers (ill not re-uest the hotel a+out ea$h and every expe$tation they have in mind) The hotel staff must +e strongly o+servant to kno( (hat the $ustomers really (ant in terms of servi$e) !ll employees may not +e effi$ient enough to o+serve a$$urately and this leads to a gap)

The Rit%,Carlton +elieves in the three steps of servi$e (hi$h isF ! (arm and sin$ere greeting) Use the guest/s name)

!nti$ipation and fulfillment of ea$h guest/s needs)

G@

=ond fare(ell) ;ive a (arm good,+ye and use the guest/s name)

Some of the intervie(ed $ustomers said that they (ere surely greeted personally +y mem+ers of staff during their stay) Ho(ever# at times they felt that# &the greeting (as not (arm enough) t seemed that they greeted us simply +e$ause they (ere supposed to and not out of (illingness)' !nother interesting point one $ustomer mentioned (as that# & don/t like to +e addressed +y my name in a hotel) prefer to +e $alled .Sir#/ not Mr) So and So)' The servi$e values that Rit%,Carlton $laims that all its employees +elieve in does not exist in pra$ti$e unanimously) This (as dis$overed through the employee intervie(s $ondu$ted) The Rit%,Carlton is (ell e-uipped (ith te$hnologi$alN operational support) !s informed +y the employees during intervie(s# the o+servations made +y mem+ers of staff are fed into the system to +e used for future referen$e +y any mem+er of staff in any Rit%, Carlton property (orld(ide) :n$e a note is made it exists in the system easily a$$essi+le to all employees as and (hen re-uired) The spe$ial re-uests and preferen$es of $ustomers are noted in the system and saved for future) The $ustomers $onfirmed the fa$t that their spe$ial re-uests (ere met throughout Rit%,Carlton properties (orld(ide) :ne $ustomer told that he (as staying at Rit%,Carlton in Singapore (here he had re-uested a parti$ular (ine during his stay) !fter a fe( months he stayed at Rit%,Carlton in 2uerto Ri$o# (here he found the same (ine presented to him at his room upon $he$k,in) Ho(ever# there is one gap identified# (hi$h is the fa$t that the entries made to the system are manual i)e) made +y employees (hi$h suggests that there is al(ays a possi+ility of errors that the employees may $ommit due to faulty o+servational notes or simply manual mistakes) :ne fo$us group mem+er $ommented# &! human +eing is prone to $ommitting mistakes# +ut he must learn from his mistakes and not repeat them) Repeated mistakes are mis+ehavior) $an forgive a mistake +ut not mis+ehavior)' !nother issue is that updating information a+out the $ustomers is essential to kno( them as of date) Most $ustomers said that the information the hotel possessed a+out them su$h as preferen$es# spe$ial re-uests# et$ (as up,to,date unlike many other hotels)

GC

Rit%,Carlton must ensure that the servi$e delivery gap (hi$h hardly exists is $losed to further improve its already reno(ned reputation for high $lass servi$e -uality) . T4e Mar/et7n2 Co336n7cat7on Ga5 This gap o$$urs (hen promises *iven #y mar2et communication activities are not consistent $ith the service delivered # dis$ussed earlier in literature revie( se$tion) =rom the primary resear$h $ondu$ted# there (as no mention of any market $ommuni$ation gap as su$h) Rit%,Carlton seems to +e delivering overall servi$e that it promises through various $hannels of $ommuni$ation to the population) !s one of the employees said# &Rit%,Carlton stands in su$h a position glo+ally that it $annot afford to spoil its reputation +y faulty marketing $ommuni$ation strategies)' '. T4e "erce78e1 Ser87ce =6al7t< Ga5 !s mentioned earlier in the literature revie( $hapter# su$h gap o$$urs as a net result of the four gaps mentioned a+ove) This gap signifies that the perceived or e%perienced service is not consistent $ith the e%pected service) nterestingly# this gap $ould +e positive or negative) ! positive gap suggests that the servi$e delivered over,met the expe$tations of the $ustomers# (hile negative gap o+viously suggests expe$tations +eing under,met) n the $ase of Rit%,Carlton# su$h gap exists as a result of the four gaps mentioned a+ove# +ut not at a large s$ale) !s a matter of fa$t# most $ustomers rated the overall servi$e -uality experien$ed to +e satisfa$tory) :ne of the fo$us group mem+ers# an a$tual $ustomer of Rit%,Carlton said that he (as over,satisfied (ith the overall servi$e delivered) None of the $ustomers intervie(ed at the four properties expressed dissatisfa$tion from the overall servi$e they experien$ed) :ne $ustomer at The Rit%# 2aris $ommented that# & (ould rate the overall servi$e delivered 33 on 3?)' This remark $learly sho(s that $ustomers are delighted staying at the Rit%,Carlton) The average rating of experien$ed servi$e -uality (as eight and a half on ten (hi$h implies that although there are some gaps in servi$e -uality# the overall servi$e experien$ed and delivered is appre$ia+le +y $ustomers) Ho(ever# it is not a+solutely perfe$t) Customers have

GD

mentioned a fe( points a+out the hotel (hi$h $ould +e $onsidered as the dark side even though they felt that the overall servi$e is &extra,ordinary)'

).#.2

General %nference for t4e l696r< 4otel sector

This model does explain the dark side of CRM to a large extent +ut not $ompletely) The fo$us group mem+ers as (ell as the intervie(ees mentioned gaps in servi$e -uality as a ma0or dark side to CRM in hotel industry) ssues of servi$e -uality are top priority for many $ustomers) The $ustomers are un(illing to a$$ept servi$e that does not meet their expe$tations +y far) Hotel industry $ertainly suffers from servi$e -uality pro+lems (ith the ex$eption of some reno(ned hotel $hains (here servi$e -uality pro+lems are in minute num+er) :ne su$h $lassi$ $ase of high $lass servi$e is Rit%,Carlton Hotel Company) =o$us group mem+ers (ere of the opinion that# &no institution $an measure the servi$e -uality of a luxury hotel) The measurement of servi$e -uality should +e +ased purely and solely on $ustomers/ point of vie()' The $ustomer experien$e is most important in 0udging the servi$e -uality of a hotel) Some intervie(ees said that the overall experien$e (ith the hotel $ounts in 0udging the servi$e -uality) The intervie(ees informed that many,a,times $ustomers $ould +e disappointed or dissatisfied +y the overall experien$e they have (ith a luxury hotel) Servi$e guarantee is ensured +y most of the luxury hotels# +ut (hat is guaranteed may not me fulfilled all the time and +y all the luxury hotels) The management of the hotels is responsi+le for the lo( servi$e -uality) Many $ustomers feel that the mem+er of staff is delivering poor servi$e# +ut if analysis is done# the real story $ould +e something else) The management is responsi+le for training the staff and explaining their roles# duties and responsi+ilities) f the management is parti$ular a+out every aspe$t of servi$e delivery# then the mem+ers of staff (ill not gather the $ourage to deliver lo( -uality of servi$e) The staff shall fear adverse $onse-uen$es and (ould not have the auda$ity to not serve as expe$ted) The fo$us group mem+ers and the intervie(ees mentioned gaps in servi$e -uality as one of the key $onstituents of the dark

GE

side to CRM in hotel industry) Ho(ever# there is more to the dark side (hi$h shall +e addressed in the next resear$h -uestion)

).2

%s t4ere 3ore to t4e 1ar/ s71e of CRM t4an 04at 7s e95la7ne1 7n t4e 2a5 3o1el:

The gap model explained the dark side of CRM in the luxury hotel industry to a large extent) Ho(ever# analysis of fa$ts derived from resear$h thro(s light upon some other aspe$ts as (ell (hi$h shall +e dis$ussed in this se$tion) The information $olle$ted shall +e applied to the $ase of Rit%,Carlton and the reader shall also re$eive deeper kno(ledge a+out the dark side for the hotel industry in general) There is not suffi$ient literature availa+le on the dark side to CRM ex$ept for the gap model) Some +ooks have mentioned a+out priva$y issues (hi$h (as dis$overed to +e an important issue apart from the servi$e gaps) Some authors have (ritten that it is not ne$essary that all $ustomers (ould desire to +uild a relationship (ith the servi$e provider) ).2.# W7ll7n2ness to b67l1 a relat7ons475

n the $ase of Rit%,Carlton# most of the $ustomers said that they (ould love to +uild a relationship (ith the hotel $ompany) The reasons for desiring a relationship are mentioned +elo(F

3) Reco2n7t7on$ Most $ustomers shared that they felt valued and re$ogni%ed +uilding a relationship (ith Rit%,Carlton) :ne $ustomer said that# & feel re$ogni%ed and valued (hen re$eive a +irthday or anniversary greeting from Rit%,Carlton) t makes me feel important +eing (ished +y su$h a glamorous hotel $ompany)' !nother $ustomer said that he feels like a &A) )2)' (hen the mem+ers of staff at Rit%,Carlton re$ogni%e him and greet him) Most of the fo$us group mem+ers expressed their desire to +e re$ogni%ed +y Rit%,Carlton) :ne speaker

GG

said# & (ould love to +e re$ogni%ed +y a hotel $hain as sophisti$ated as Rit%, Carlton)' 8) "ersonal7Cat7on$ Most $ustomers (ished to +uild a relationship (ith the hotel $hain +e$ause they felt that +y doing so that $ould re$eive personali%ed servi$e) The individual needs of the $ustomers and their spe$ial re-uests (ould +e $atered to) :ne $ustomer said# & (ould not have to inform the hotel a+out my spe$ial re-uests and preferen$es ea$h and every time $he$k in to a Rit%,Carlton property) They have my re-uests on their information system and that eases my stay and in$reases my $omfort level)' :ne fo$us group mem+er said that &a relationship $an help re$eive the $ustomer hisNher desired level of personali%ed servi$e)' Literature availa+le on Rit%,Carlton mentions that on$e a $ustomer has stayed at any Rit%,Carlton properties# hisNher guest profile is $reated and all data a+out the $ustomer in$luding spe$ial preferen$es and re-uests is noted and used for future stays of the guest at any Rit%,Carlton) @) Stat6s$ !nother strong reason for $ustomers to +uild a relationship (ith Rit%, Carlton is the so$ial status atta$hed) Most $ustomers reveal that it is a &status sym+ol to share a relationship (ith a prestigious hotel $hain like Rit%,Carlton)' :ne $ustomer informed that# & get an ego +oost (hen Rit%,Carlton has information a+out me) t in$reases my status and is a .feel good fa$tor/ for me)' :ne of the fo$us group mem+ers $ommented that# & f information a+out me (as (ith Rit%,Carlton# (ould feel have high so$ial status)' Ho(ever# it is not true that all $ustomers (ant a relationship (ith Rit%,Carlton) This is a dark side to CRM) The Rit%,Carlton $annot $ater to the needs of the $ustomers if they do not have suffi$ient information a+out the $ustomer +e$ause of the $ustomer/s un(illingness to +uild a relationship) :ne of the $ustomers said# & en0oy staying at Rit%, Carlton +ut don/t (ant to +uild a relationship (ith them) (ould not (ant them to kno( too mu$h a+out me) time don/t mind informing them of my re-uests and preferen$es every stay at Rit%,Carlton)' !nother dark side identified is that Rit%,Carlton does not

G5

have any loyalty $ard of its o(n to provide mileage to the $ustomers) Most of the luxury hotel $hains have a loyalty $ard to provide points to the $ustomers that $an +e redeemed later for room upgrades# free stays# et$) :ne $ustomer said# & (ish Rit%,Carlton had a loyalty programme) t (ould please me further)' "r78ac< %ss6es an1 C4an27n2 tastes an1 5references of t4e c6sto3ers Resear$h sho(s that priva$y issues are an area of $on$ern for $ustomers) The Rit%, Carlton notes all re-uests and preferen$es of the $ustomers and intera$tions at all instan$es) The employees intervie(ed $onfirm the literature availa+le that ea$h and every intera$tion# re-uests and preferen$es of the $ustomers must +e noted and fed on the information system to help them serve the $ustomers +etter) The $ustomers (hen intervie(ed did mention that priva$y issues are one of their $on$erns) Some $ustomers do not (ant their priva$y intruded into at any $ost) They appre$iate the fa$t that their re-uests and preferen$es are met +y the hotel during their stays) Ho(ever# they do not approve of the hotel noting ea$h and every intera$tion and o+servation) :ne $ustomer said# & t is irritating if someone kno(s too mu$h a+out me) (ould not (ant the hotel to kno( ea$h and everything a+out me and my personality)' Some $ustomers feel offended (hen they reali%e that the hotel kno(s too mu$h a+out them) This portion of the dark side is again minute in the $ase of Rit%,Carlton +e$ause none of the mem+ers intervie(ed mentioned any sort of misusage of information the hotel has a+out them) :ne $ustomer said that the Rit%,Carlton provides $omforta+le servi$e to its $ustomers +ut sometimes# they note too mu$h a+out the $ustomers and it $ould make the $ustomers feel inse$ure a+out their private information +eing in re$ords at a hotel) Rit%,Carlton notes all possi+le information to serve the $ustomers +etter# +ut it must kno( if the $ustomers are $omforta+le (ith having personal information in their re$ords) !nother aspe$t of the dark side of CRM is that tastes and preferen$es of the $ustomers $hange over time) t is not ne$essary that a $ustomer/s (ants (ill remain uniform throughout) Rit%,Carlton $ustomers said that the hotel puts in serious effort to kno( (hat the $urrent or updated preferen$es of the $ustomers are so that they $an serve them +etter

G4

and meet their expe$tations) :ne $ustomer said# &*verytime $he$k in to a Rit%,Carlton hotel# they in-uire if /d like something update my preferen$es a$$ordingly)' The dark side is small in $ase of Rit%,Carlton# +ut the dark side in the hotel industry at large is not that small) The $ase of Rit%,Carlton is one (hi$h should edu$ate the other players to follo( their footsteps to help a$hieve +etter $ustomer satisfa$tion) The follo(ing se$tion is the inferen$e for the industry) ).2.2 General %nference for t4e !otel %n16str< had re-uested for at a previous visit and they

There is surely more to the dark side than (hat is explained (ith the help of .gap model)/ The other issues are dis$ussed a+ove (ith the appli$ation to the $ase of Rit%,Carlton) 2riva$y issues $annot +e negle$ted +y hoteliers) Most $ustomers are (orried a+out their information +eing misused or s(apped) The hotel industry must ensure that the priva$y $on$erns are dealt (ith) Changing tastes and preferen$es of $ustomers must +e updated perpetually) The un(illingness of $ustomers to +uild a relationship (ith the hotels must +e attempted to $onvert into (illingness) :ne fo$us group mem+er $ommented# &The relationship must +e a genuine one meeting our level of expe$tations)'

).3

!o0 can t4e 1ar/ s71e of CRM be re16ce1:

There is eviden$e $olle$ted that there is a dark side to CRM in the hotel industry) The redu$tion of the dark side to CRM is essential for the profita+le future of the hotel industry) Hotels earn profits through their $ustomers and if the $ustomers do not feel that their experien$ed servi$e -uality (as up,to,the mark# then it $an +e a serious threat to the hotel/s (ell +eing in the future) The follo(ing portion shall provide an analysis on ho( the dark side in $ase of Rit%,Carlton $an +e redu$ed follo(ed +y an analysis on dark side redu$tion for the hotel industry in general) n the $ase of Rit%,Carlton# the dark side prevailing is not large proven +y resear$h) Ho(ever# the dark side that exists needs to +e redu$ed to enhan$e Rit%,Carlton/s 5?

reputation of high $lass servi$e -uality) The gaps in servi$e -uality have +een identified and dis$ussed earlier) The Rit%,Carlton must take appropriate steps to fill the gaps in servi$e -uality) This $an +e done +y simple measures like the management +eing $learly a(are of (hat the $ustomers/ needs and expe$tations are# training the staff effe$tively to ta$tfully deal (ith $risis situations like servi$e failure or dispute# providing the servi$e that $ustomers (ant# meeting the expe$tation level of its $ustomers# maintaining the uniformity of servi$e (orld(ide for (hi$h it already is reputed and improving its overall servi$e delivery to further strengthen its status and position in the glo+al hotel industry) The employees must serve the $ustomers (illingly as this (ill in$rease their level of servi$e and please the $ustomer) *mployee intervie(s $onfirmed the literature availa+le that The Rit%,Carlton empo(ers all its employees to settle a $ustomer dispute +y spending up to R8#??? per day (ithout $onsulting any senior) Ai$e 2resident Diana :re$k says &hotel standards are so high and servi$e,re$overy training is so rigorous that no employee has ever had to provide a R8#??? $redit' 1US! Today)$om# 8??E6) The servi$e re$overy is given importan$e +y the Rit%,Carlton to redu$e servi$e gaps that may o$$ur from time,to,time) :ne $ustomer said that she (as staying at Rit%,Carlton in Du+ai and her room had some ants) She $omplained a+out it and the matter (as resolved immediately) The mem+er of staff she $omplained to# (ithout any delay shifted her to a superior room at no extra $ost and apologi%ed for the in$onvenien$e $aused to her) She (as impressed +y the -ui$k $omplaint handling and (as delighted) Complaint handling is essential to redu$e the dark side and the Rit%,Carlton already follo(s the $on$ept) t needs to ensure that the $omplaint handling is effi$ient and helps in seeking positive response from the $ustomer and leaves himNher satisfied) The hotel industry $an +enefit from follo(ing the Rit%, Carlton (ay of pleasing $ustomers) The hotel industry $an redu$e the dark side of CRM +y simple measures) Some of the possi+le (ays to redu$e the dark side are as follo(s) 3) !$$urate kno(ledge of (hat the $ustomers (ant# need and expe$t

53

8) :n$e the management kno(s (hat the $ustomers expe$t# relevant instru$tion should +e passed do(n to the mem+ers of staff to $ater to the $ustomers/ expe$tations a$$ordingly @) The mem+ers of staff must $arry out their tasks to fulfill the $ustomers/ expe$tations (hole,heartedly) This helps in adding the extra .personal tou$h)/ C) The mem+ers of staff must maintain a $ordial and (arm relationship (ith the $ustomers# keeping in mind their individual preferen$es and fulfilling the same) D) n $ase of servi$e failure or dispute# the employees must a$t immediately to resolve the situation and leave the $ustomer pleased) The hotel industry must empo(er the staff to take immediate a$tion and give them monetary allo(an$e to resolve the situation -ui$kly (ithout (asting time to $onsult senior management like they do at Rit%,Carlton) E) The hotel industry $an deliver the servi$e the $ustomers (ant to avoid dis$repan$ies in servi$e) Ho(ever# if there is any servi$e failure and the $ustomers $hoose to $omplain# the hotels should $onsider this as a golden opportunity to restore servi$e -uality) Literature availa+le 1mentioned earlier6 suggests that only a small per$entage of the $ustomers $hoose to $omplain) *ffi$ient $omplaint handling shall prove +enefi$ial and advantageous to the hotel industry for its profita+le future) G) Customers must +e treated (ith highest regards# respe$t and dignity even if they are rude) This shall prevent the situation from getting (orse and servi$e re$overy might +e possi+le) 5) The servi$e gaps must +e $losed +y effi$ient management and supervision) The staff should +e $arefully re$ruited and trained) Literature availa+le $onfirmed +y employee intervie(s sho( that employees at Rit%,Carlton undergo rigorous and detailed training to ta$kle situations and deliver top $lass servi$e -uality) The hotels must sele$t and re$ruit staff $arefully and train them to deliver remarka+le servi$e -uality 4) The top priority of a luxury hotel is to provide luxury to please the $ustomers) The mem+ers of staff and management must have a $lear understanding of (hat is re-uired to +e done in order to a$hieve $ustomers/ appre$iation)

58

3?) The hotels $an have an advan$ed information system that re$ords all $ustomer details and preferen$es and is a$$essi+le +y any property of the $hain (orld(ide# similar to ho( it is done at Rit%,Carlton) 33) The hotel industry must se$ure and safeguard the $ustomers/ private information and prevent any misusage) The $ustomers must +e given importan$e# $ared and looked after sin$erely) 38) The priva$y of the $ustomers must not +e intruded into under any $ir$umstan$es) 3@) The hotels must strongly meet or over,meet the $ustomers/ expe$tations in order to sustain their future +e$ause for hotels# $ustomers are the only sour$e of in$ome and they $annot afford to put their profits at stake) To summari%e# the hotel industry must learn from Rit%,Carlton (hi$h re$eived various -uality a(ards and the only $ompany to re$eive the "Malcolm #aldrige $ational %ualit& 'ward/ t(i$e till date) :ne $ustomer said# &The hotels must deliver (hat (e (ant them to deliver and ho( (e (ant them to deliver) This shall prevent any form of servi$e gaps and shall redu$e the dark side $ompletely)' !nother $ustomer said that all that luxury hotels need to do is &provide luxury the (ay $ustomers demand it)' :ne fo$us group mem+er pointed out that# & (ant the luxury hotel to provide me (ith servi$e and not 0ust amenitiesN fa$ilities (ithout a personal tou$h) (ould not +e impressed +y expensive $handeliers +ut (ould +e impressed +y desired +ehaviour)' n the end# all that matters is $ustomer satisfa$tion and the servi$e delivery must +e $ustomer,oriented to redu$e the dark side to CRM

C4a5ter .$ Concl6s7on an1 F6rt4er researc4

5@

This is the $on$luding $hapter of the paper and shall shed light upon the limitations of this resear$h $ondu$ted along (ith possi+le impli$ations this paper shall have for the luxury segment hotels (orld(ide) The hotel industry is a $ustomer,oriented industry and its su$$ess (holly depends on the $ustomers) The resear$h o+0e$tives of explaining the dark side of CRM in the hotel industry (ith the help of the .gap model/ (as su$$essfully a$$omplished) The gap model does not fully explain the dark side of CRM in luxury hotels and there is more to the dark side than only servi$e gaps) 2riva$y issues are a ma0or $on$ern among $ustomers today) Luxury hotels must ensure that $ustomer priva$y is safeguarded) The $hanging tastes and preferen$es of $ustomers must +e tra$ked and re$orded to improve servi$e -uality) Relationships on$e esta+lished must +e maintained living up to the expe$tations of the $ustomers) :ne fo$us group mem+er $ommented# &The relationship must +e a genuine one meeting our level of expe$tations)' The resear$h has sho(n that +asi$ally $ustomers have their o(n per$eptions of servi$e -uality) The $ustomers (ant servi$e as per their expe$tations) Servi$e gaps are not normally tolerated +y many $ustomers# espe$ially (hen they are paying for a luxurious stay) The $ustomers pay importan$e to (hat they re$eive and ho( they re$eive) The $ustomers may forgive small errors in servi$e +ut not repeated servi$e failures and mis+ehaviour of any sort from the hotel management or staff) The $ustomers/ desire servi$e as per their individual definitions and fulfillment of desires leads to satisfa$tion) The hotels must treat $ustomers as human +eings and not 0ust o+0e$ts or avenues to earn profits) The attitude of the hotel should +e $ustomer,oriented and the $ustomers re$eiving desired servi$e -uality must +e prime $on$ern for the hotel) n the $ase of Rit%,Carlton# the servi$e gaps o$$ur minutely as sho(n +y resear$h) :ther hotels $an learn from the $ase of Rit%,Carlton and keep an updated kno(ledge a+out the $ustomer expe$tations and preferen$es to allo( superior servi$e -uality (hi$h in turn $ould lead to $ustomer satisfa$tion (hi$h means +usiness to the hotels) Complaints must +e handled effi$iently and immediately to re$over servi$e failures and $ustomer disputes) The redu$tion of the dark side $an +e possi+le (ith improved servi$e -uality and fast servi$e re$overy in $ase of disputes or servi$e failures) The luxury hotels must strive to

5C

enhan$e their servi$e -uality (hi$h shall prove to +e a key su$$ess fa$tor for the organi%ation) There should +e %ero defe$ts in servi$e -uality to eliminate the dark side of CRM in the hotel industry) This paper shall +e useful for the hotel industry to analy%e the dark side of CRM) The hotels $an have in,depth information a+out $ustomer expe$tations in terms of servi$e -uality) This paper $ould prove helpful in providing a guideline to the luxury hotels to +ring a+out improvement in servi$e -uality to gain and retain $ustomers) Last +ut not the least# the luxury hotels $ould follo( the ndian $on$ept of &!tithi Devo 7havah#' (hi$h is &;uest is ;od)'

F6rt4er Researc4$ There is also further resear$h s$ope in this area of CRM in the hotel industry) There is ample literature availa+le on the +righter side of CRM in the hotel industry) There are innumerous arti$les suggesting the high $lass servi$e provided +y Rit%,Carlton and also other luxury hotel $hains +ut there is not mu$h literature availa+le on the dark side of CRM) S$holars $an $arry out resear$h on the dark side and $ondu$t detailed study on the $ustomers/ per$eption of perfe$t servi$e -uality) Time is re-uired to $ondu$t a detailed study on the dark side of CRM and su$h studies shall provide valua+le data for the luxury hotels to $omprehend extensively $ustomers/ expe$tations and ensure that they are met at least if not over,met)

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Ra$e I)*)# Hot$h D)=)# 2arker T) 1344C6# &Reha+ilitation program evaluationF use of fo$us groups to empo(er $lients'# 1valuation (evie$ 35 1E6# pp) G@?,C?) Rei$held# =)=) and Sasser# 9)*) "r 1344?6# &Hero defe$tions $omes to servi$es'# 5arvard Dusiness(evie$< Septem+er,:$to+er# pp) 3?D,33) Reinart%# 9) ")) L Iumar# A) 18??@6# &The impa$t of $ustomer relationship $hara$teristi$s on profita+le lifetime duration'# Bournal of /ar2etin*< )!136# GG,44) Ri$hins# M) 1345@6# &Negative 9ord,of, mouth +y dissatisfied $ustomersF a pilot study'# Bournal of /ar2etin*< E5# pp 3?D,33 Ro(ley# ")# L Da(es# ") 18???6# & DisloyaltyF ! $loser look at non,loyals'# Bournal of Consumer /ar2etin*. 3G1E6# D@5,DC4) Ruyter# I) and 9et%els# M) 18???6# &Customer e-uity $onsiderations in servi$e re$overyF ! $ross,industry perspe$tive'< .nternational Bournal of Service .ndustry /ana*ement< 33136# pp 43,3?5 S$hneider# 7)# L 7o(en# D) *) 134446# &Understanding $ustomer delight and outrage'# Sloan /ana*ement (evie$# C3# pp) @D,CE Selnes# = 1344@6# &!n examination of the effe$t of produ$t performan$e on +rand reputation# satisfa$tion and loyalty'# 1uropean Bournal of /ar2etin*# 8G146# pp)34,@D) Sheth# N) ")# L 2arvatiyar# !) 1344D6# &Relationships marketing in $onsumer marketsF !nte$edents and $onse-uen$es'# Bournal of Ccademy of /ar2etin* Science< 231C6# 8DD, 8G Silverman# D) 18???6# :,oin* ualitative (esearch: C Practical 5and#oo2>< LondonF Sage 2u+li$ations Smith# !)I) and 7olton# R)N) 134456# &!n experimental investigation of $ustomer rea$tions to servi$e failure and re$overy en$ounters'# Bournal of Service (esearch< 3136# pp ED,53 Spreng# R)!)# Harrell# R)!) and Ma$koy# ;)D) 1344D6# &Servi$e re$overyF impa$t on satisfa$tion and intentions'# Bournal of Services /ar2etin*< 4136# pp 3D,8@ Stake# R) *) 1344D6# &The Crt of Case Study (esearch'# Thousand :aks# C!F Sage 2u+li$ations Sugandhi# R)I) 18??86# &Customer (elationship /ana*ement>< Ne( DelhiF Ne( age nternational 2u+lishers

43

Tax# S)S)# 7ro(n# S)9) and Chandrasekharan# M) 134456# &Customer evaluations of servi$e $omplaint experien$esF impli$ations for relationship marketing'# Bournal of /ar2etin*< E8# pp E?,GE Tax# S)S) and 7ro(n# S)9)1 8???6# &Servi$e re$overyF Resear$h insights and pra$ti$es'# n S(art%# T)!) and La$o+u$$i# D) 1eds6# 5and#oo2 in Services /ar2etin* and /ana*ement< Thousand :aks# C!F Sage 2u+li$ations Turiel# *) 1345@6# :The development of social 2no$led*e>< Cam+ridgeF Univ) 2ress) Aargas# M) 18??E6# &The value of privacy># availa+le at httpFNNretailindustry)a+out)$omNodN$rm[priva$yNaNloyalty8priva$y)htm# last a$$essed on !ugust 3?# 8??E Ainh,7ang 134EE6# &La mQthode $lini-ue et la re$her$he en psy$hologie de l<enfant) Span) Trans'# in " !0uriaguerra et al)F Psicolo*Ga y epistemolo*Ga *enHticaF 7uenos !iresF 2roteo# 34G?# pp) @4,D3 9ilson) ")R) 134436# :9ord of mouth mar2etin*'# US!F "ohn 9iley L Sons# NC) >i# >) 1344?6# &! $riti$al revie( of $onsumer satisfa$tion'# in Heithaml# A) 1*d)6# (evie$ of /ar2etin*< 1++4< Chi$ago# LF !meri$an Marketing !sso$iation# pp) E5,38@) >in# R) 1344@6# &Cpplications of case study research'# 7everly Hills# C!F Sage 2u+lishing >in# R) 1344C6# &Case study research: ,esi*n and methods'# 8nd ed)# 7everly Hills# C!F Sage 2u+lishing >in# R) I) 18??86# &Case Study (esearch< ,esi*n and /ethods>< @rd ed) Ne(+ury 2arkF Sage 2u+li$ations Heithaml# A) !)# L 7inter# M)") 1344E6# &Service /ar2etin*'# Ne( >orkF The M$;ra(, Hill Companies# NC) ((()interliner)nl ((()mi$rosoft)$om# Ulast a$$essed on !ugust 8D# 8??E\ ((()in$redi+leindia)org # Ulast a$$essed on Septem+er D# 8??E\ httpFNNen)(ikipedia)org# Ulast a$$essed on Septem+er E# 8??E\

48

!nonymous# &Resear$h varia+lesF Relia+ility and Aalidity of Measurement'# availa+le on httpFNN$+dd)(su)eduNedevNNetT:M[ToTNResour$esN:therNT:ME3CNpageE5)htm# Ulast a$$essed on Septem+er @# 8??E\ Rit%,Carlton =a$t sheet# availa+le at httpFNN((()rit%$arlton)$omN$orporateNa+out[usNfa$t[sheet)asp# last a$$essed on Septem+er 8# 8??E6 The Rit%,Carlton Hotel Company# L)L)C) ! Lega$y of Servi$e and nnovation# availa+le at 4tt5$HH000.r7tCcarlton.co3Hcor5orateHabo6tI6sH47stor<.as5; Jlast accesse1 on Se5te3ber +; 2--+K Rit%,Carlton !(ards information# availa+le at httpFNN((()rit%$arlton)$omN$orporateNa+out[usNa(ards)asp# Ulast a$$essed on Septem+er G# 8??E\ Rit%,Carlton ;old standards information# availa+le at httpFNN((()rit%$arlton)$omN$orporateNa+out[usNgold[standards)asp# Ulast a$$essed on Septem+er D# 8??E\ Rit%,Carlton Buality 2hilosophy information# availa+le at httpFNN((()rit%$arlton)$omN$orporateNa+out[usN-uality[philosophyNdefault)asp# Ulast a$$essed on Septem+er C# 8??E\ Rit%,Carlton Up$oming lo$ations information# availa+le at httpFNN((()rit%$arlton)$omN$orporateNa+out[usNup$oming[lo$ations)asp# Ulast a$$essed on Septem+er 8# 8??E\

A55en17ces
A55en179 # Consent For3

4@

T7tle of St61<$ The Dark Side of Customer Relationship Management in the luxury segment of the Hotel ndustry) "r7nc75al %n8est72ator$ Mr) !kshay "aipuria
7efore agreeing to parti$ipate in this resear$h study# it is important that you read the follo(ingF

"6r5ose of t4e st61< an1 4o0 lon2 7t 07ll last$ The purpose of this intervie( is to understand the dark side of CRM in the hotel industry) t (ill take approximately CD minutes to $omplete the intervie() Descr75t7on of t4e st61< 7ncl617n2 t4e 5roce16res to be 6se1$ >ou (ill +e asked a+out the servi$e delivery of Rit%,Carlton and hotel industry at large and the gaps that might o$$ur is servi$e delivery) Descr75t7on of 5roce16resHele3ents t4at 3a< res6lt 7n 17sco3fort or 7ncon8en7ence$ There are no foreseea+le physi$al or psy$hologi$al risks (hen you parti$ipate in the intervie() Conf71ent7al7t< of researc4 recor1s$ ! note+ook (ill +e used to re$ord your ans(ers) >our ans(ers to the intervie( (ill +e kept $onfidential) :nly the resear$her (ill have a$$ess to the data) No attempt (ill +e made to identify you individually) There is a possi+ility that data from this survey $ould +e used for further resear$h +eyond the initial study) W7t41ra0al fro3 St61< >ou are free to (ithdra( your $onsent and dis$ontinue parti$ipation in the study at any time (ithout $onse-uen$es)

"a<3ent for 5art7c75at7on 7n t4e researc4$ 2arti$ipants in this study shall re$eive a drink and some sna$ks for parti$ipating in the intervie( 1Customers :NL>6

4C

RESEARC! S&BLECTS> R%G!TS$ have read or have had read to me all of the a+ove) Signature [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[

4D

A55en179 2

CRM an1 GAt7t47 De8o B4a8a>

ndia is reno(ned for its strong $ulture# (armth and friendly attitude) Respe$t has al(ays +een an integral part of the ndian soul) =rom time immemorial (e have al(ays respe$ted our tea$hers# our elders# our parents and our guests) 2erhaps that is (hy a great ndian *mperor on$e o+served that# & n Hindustan our manner is very respe$tful and our hearts are al(ays open)' n many (ays# at that time ndia (as the ultimate destination for the enlightened travelers and ndian hospitality set the standards for the (orld) ndians +elieve in .!tithi Devo 7hava'# (hi$h means that a guest is a form of ;od) The Ministry of Tourism# ;overnment of ndia# has introdu$ed the &!tithi Devo 7havah 2rogram' (hi$h is a seven point program of hospitality and training 1 n$redi+le ndia# 8??E6) The seven points are explained +elo() #. FSa38e1an S4eeltaE or Ses7t7sat7onD This means to sensiti%e the various se$tions of the tourism industry a+out ho( ea$h of them $ould $ontri+ute for the gro(th of the tourism industry and ho( they (ill +enefit from it) 2. "ras47/s4an or Tra7n7n2 an1 %n16ct7on M This involves explaining the needs and expe$tation of the tourist to employees# ho( they should respond and +ehave in order to satisfy the needs and meet the expe$tations of the guests)

4E

3. "rerna or Mot78at7on D This means motivation to parti$ipate in this program through various measures like a(ards for the +est (orker in the segment +e$ause (hen you are enthusiasti$ you $an do (onders) . "ra3an7 Karan or Cert7f7cat7on D Certifi$ation to ensure standards shall +e done at an appropriate stage in the training program) '. "rat756s4t7 or Fee1bac/ D =eed+a$k shall +e o+tained from tourists a+out the servi$e re$eption and their overall experien$e to improve the training program on a $ontinuous +asis) +. Sa3an<a Bo14 or General A0areness D The marketing $ommuni$ation $ampaign (ill +e undertaken to $reate general a(areness among the pu+li$ a+out the ne$essity and the +enefits of the !tithi Devo 7havah programme) ). S0a37t0a or O0ners475D The !tithi Devo 7havah programme is a movement that shall urge all segments of the ndian so$iety and (orld(ide to adopt# and look upon as their o(n) The $on$ept of &!tithi Devo 7havah' $an +e a helpful guide to CRM in the hotel industry)

4G

A55en179 3
The Rit%,Carlton Hotel Company $urrently has D4 hotels under its flagship) ! list of the $urrent lo$ations is alpha+eti$ally given +elo(F 3) !melia sland# =la) 8) !tlanta 1Do(nto(n6# ;a ) @) 7ali# ndonesia C) 7a$helor ;ul$h# Colo) D) 7ahrain E) Hotel !rts 7ar$elona# Spain G) 7erlin 5) 7oston# Mass) 4) 7oston Common# 7oston# Mass) 3?) 7u$khead 1upto(n !tlanta# ;a)6 33) Can$un# Mexi$o 38) Cleveland# :hio 3@) Co$onut ;rove 1Miami6# =la) 3C) Dear+orn# Mi$h) 3D) Doha# Batar 3E) Du+ai# United !ra+ *mirates 3G) ;eorgeto(n# 9ashington D)C) 35) ;rand Cayman# Cayman slands 34) Half Moon 7ay# Calif) 8?) Hong Iong 83) Huntington 12asadena6# Calif) 88) stan+ul# Turkey 8@) "akarta# ndonesia 8C) Rose Hall# "amai$a 8D) Iapalua 1Maui6# Ha(aii 45

8E) Iey 7is$ayne 1Miami6# =la) 8G) Iuala Lumpur# Malaysia 85) Laguna Niguel# Calif) 84) Lake Las Aegas# Nev) @?) Marina del Rey# Calif) @3) Milan# taly# 7AL;!R Hotels and Resorts @8) Montreal# Bue+e$# Canada @@) Naples# =la) @C) Naples ;olf Resort# =la) @D) Ne( :rleans# La) @E) Ne( >ork# 7attery 2ark @G) Ne( >ork# Central 2ark @5) :rlando ;rande Lakes# =la) @4) :saka# "apan C?) 2alm 7ea$h# =la) C3) 2entagon City# Aa) C8) 2enha Longa# 2ortugal C@) 2hiladelphia# 2a) CC) 2hoenix# !ri%) CD) Reynolds 2lantation# ;a) CE) South 7ea$h 1Miami6# =la) CG) St) Louis# Missouri C5) St) Thomas# US Airgin slands C4) San =ran$is$o# Calif) D?) San "uan# 2uerto Ri$o D3) Santiago# Chile D8) Sarasota# =la) D@) Seoul# Iorea DC) Shanghai# China DD) Sharm *l Sheikh# *gypt DE) Singapore

44

DG) Tysons Corner# Aa) D5) 9ashington# D)C) D4) 9olfs+urg# ;ermany There are also a fe( up$oming properties in various lo$ations (hi$h are listed +elo( along (ith estimated year of opening)

&"COM%NG LOCAT%ONS$ 7AL;!R ^ 7ali# ndonesia , 8??E 7ei0ing =inan$ial Center# China , 8??E Mos$o(# Russia , 8??E 2o(ers$ourt# County 9i$klo(# reland , 8??G 7ei0ing# China 1Central 2la$e6 , 8??G Dallas# Texas , 8??G ;uang%hou# China , 8??G Tokyo# "apan , 8??G Molasses Reef# Turks L Cai$os , 8??G Shen%hen# China , 8??G Charlotte# NC , 8??5 Du+ai =inan$ial Centre# United !ra+ *mirates , 8??5 Hong Iong# China , 8??4 Toronto# Canada , 8??4

@R7tCDCarlton; 2--+A

3??

A55en179
The follo(ing is a list of a(ards (on +y the Rit%,Carlton re$ently in 8??D and 8??EF

Mob7l F78eDStar A0ar1 2--+ Lodgings The Rit%,Carlton Ne( >ork# Central 2ark The Rit%,Carlton# San =ran$is$o The Rit%,Carlton# Naples The Rit%,Carlton# 2alm 7ea$h Restaurants The Dining Room at The Rit%,Carlton# 7u$khead The Dining Room at The Rit%,Carlton# San =ran$is$o Mob7l Fo6rDStar A0ar1 2--+ Lodgings The Rit%,Carlton# !tlanta The Rit%,Carlton# 7a$helor ;ul$h The Rit%,Carlton# 7oston The Rit%,Carlton# 7oston Common The Rit%,Carlton# Cleveland The Rit%,Carlton# Co$onut ;rove The Rit%,Carlton# ;eorgeto(n The Rit%,Carlton# Half Moon 7ay The Rit%,Carlton# Huntington Hotel L Spa The Rit%,Carlton# Iapalua

3?3

The Rit%,Carlton# Iey 7is$ayne The Rit%,Carlton# Laguna Niguel The Rit%,Carlton# Lake Las Aegas The Rit%,Carlton# ;olf Resort# Naples The Rit%,Carlton# Ne( >ork# 7attery 2ark The Rit%,Carlton :rlando# ;rand Lakes The Rit%,Carlton# 2entagon City The Rit%,Carlton# 2hoenix The Rit%,Carlton# Reynolds 2lantation The Rit%,Carlton# Sarasota The Rit%,Carlton# South 7ea$h The Rit%,Carlton# St) Louis The Rit%,Carlton# Tysons Corner The Rit%,Carlton# 9ashington D)C) Restaurants The Dining Room at The Rit%,Carlton Ne( >ork# Central 2ark The Dining Room at The Rit%,Carlton# Tysons Corner AAA F78e D7a3on1 A0ar1 2--+ Lodgings The Rit%,Carlton# !melia sland The Rit%,Carlton# !tlanta The Rit%,Carlton# 7a$helor ;ul$h The Rit%,Carlton# 7u$khead The Rit%,Carlton# Can$un The Rit%,Carlton# Co$onut ;rove The Rit%,Carlton# ;eorgeto(n The Rit%,Carlton ;olf L Spa Resort# Rose Hall# "amai$a

3?8

The Rit%,Carlton# Half Moon 7ay The Rit%,Carlton# Huntington Hotel L Spa The Rit%,Carlton# Iapalua The Rit%,Carlton# Iey 7is$ayne The Rit%,Carlton# Laguna Niguel The Rit%,Carlton# Lake Las Aegas The Rit%,Carlton# Marina del Rey The Rit%,Carlton# Naples The Rit%,Carlton ;olf Resort# Naples The Rit%,Carlton Ne( >ork# 7attery 2ark The Rit%,Carlton Ne( >ork# Central 2ark The Rit%,Carlton# 2alm 7ea$h The Rit%,Carlton# 2hiladelphia The Rit%,Carlton# San =ran$is$o The Rit%,Carlton# Sarasota The Rit%,Carlton# 9ashington D)C) Restaurants The Dining Room at The Rit%,Carlton# San =ran$is$o The ;rill Room at The Rit%,Carlton# !melia sland !rtisans in The Dining Room at The Rit%,Carlton# Naples The Dining Room at The Rit%,Carlton# 7u$khead !telier at The Rit%,Carlton Ne( >ork# Central 2ark Maestro at The Rit%,Carlton# Tysons Corner The Clu+ ;rill at The Rit%,Carlton# Can$un =antino at The Rit%,Carlton# Can$un

3?@

Con1N Nast Tra8eler$ 2--' Gol1 L7st United States The Rit%,Carlton# !melia sland The Rit%,Carlton# !tlanta The Rit%,Carlton# 7a$helor ;ul$h The Rit%,Carlton# 7oston The Rit%,Carlton# 7oston Common The Rit%,Carlton# 7u$khead The Rit%,Carlton# Cleveland The Rit%,Carlton# Co$onut ;rove The Rit%,Carlton# ;eorgeto(n The Rit%,Carlton# Half Moon 7ay The Rit%,Carlton# Huntington Hotel L Spa The Rit%,Carlton# Iapalua The Rit%,Carlton# Iey 7is$ayne The Rit%,Carlton# Laguna Niguel The Rit%,Carlton# Marina del Rey The Rit%,Carlton# Naples The Rit%,Carlton ;olf Resort# Naples The Rit%,Carlton Ne( >ork# 7attery 2ark The Rit%,Carlton Ne( >ork# Central 2ark The Rit%,Carlton# Ne( :rleans The Rit%,Carlton# 2alm 7ea$h The Rit%,Carlton# 2hiladelphia The Rit%,Carlton Lodge# Reynolds 2lantation The Rit%,Carlton# San =ran$is$o The Rit%,Carlton# Sarasota The Rit%,Carlton# 9ashington D)C)

3?C

*urope Hotel !rts 7ar$elona The Rit%,Carlton# stan+ul !siaN!ustraliaN2a$ifi$ Nations The Rit%,Carlton# 7ali Resort L Spa The Rit%,Carlton# Hong Iong The Rit%,Carlton# :saka The Rit%,Carlton# Millenia Singapore The 2ortman Rit%,Carlton# Shanghai The !meri$as The Rit%,Carlton# Can$un The Rit%,Carlton# Montreal The Rit%,Carlton Hotel# Spa L Casino# San "uan The Rit%,Carlton# Santiago The Rit%,Carlton ;olf L Spa Resort# Rose Hall# "amai$a The 7est +y Design No) 3 in the !meri$asF The Rit%,Carlton# Santiago The 7est +y !$tivities No) 3 in !sia# !ustralia and 2a$ifi$ NationsF The Rit%,Carlton# 7ali Resort L Spa

3?D

Tra8el O Le7s6re$ '-- Greatest !otels 7n t4e Worl1 2--+ United States The Rit%,Carlton# Laguna Niguel The Rit%,Carlton# Huntington The Rit%,Carlton# Half Moon 7ay The Rit%,Carlton# San =ran$is$o The Rit%,Carlton# 7a$helor ;ul$h The Rit%,Carlton# ;eorgeto(n The Rit%,Carlton# !melia sland The Rit%,Carlton# Naples The Rit%,Carlton# Naples ;olf Resort The Rit%,Carlton ;rande Lakes# :rlando The Rit%,Carlton# 2alm 7ea$h The Rit%,Carlton# Sarasota The Rit%,Carlton# 7u$khead The Rit%,Carlton# Iapalua The Rit%,Carlton# Ne( :rleans Maison :rleans The Rit%,Carlton# 7oston The Rit%,Carlton# 7oston Common The Rit%,Carlton# Lake Las Aegas The Rit%,Carlton Ne( >ork# 7attery 2ark The Rit%,Carlton Ne( >ork# Central 2ark The Rit%,Carlton# Cleveland *urope The Rit%,Carlton# 7erlin Hotel !rts

3?E

!sia The Rit%,Carlton# Hong Iong The 2ortman Rit%,Carlton# Shanghai The Rit%,Carlton# 7ali Resort L Spa The Rit%,Carlton# :saka The Rit%,Carlton Millennia# Singapore Mexi$o The Rit%,Carlton# Can$un South !meri$a The Rit%,Carlton# Santiago Cari++ean The Rit%,Carlton ;olf L Spa Resort# Rose Hall# "amai$a The Rit%,Carlton# St Thomas Cons63er Re5orts Consumer Reports Hotels issue ranked The Rit% Carlton Hotel Company the No) 3 luxury hotel $ompany in all areas in$luding value# servi$e# upkeep and pro+lem resolution) L696r< %nst7t6te Most 2restigious Luxury 7rand

3?G

Tra8el Wee/l< 8??E Readers Choi$e !(ards# 7est Luxury Hotel Company 8??E Readers Choi$e !(ards# 7est Ups$ale Hotel Company Forbes$ S6re to %35ress Tra8el Dest7nat7ons =or+es named The Rit%,Carlton Hotel Company the +est 7usiness Hotel Chain 1Rit%,Carlton# 8??E6

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A55en179 '

3?4

33?