Benchmarking Hotel

Services : A Hybrid method to

evaluate Customer purchase decisions
Final Research Project
By
Achyuthsankar A
159/2018
 Introduction
 In a business environment that has become increasingly competitive over the years, it is very
important to understand the customer value and how customer arrives at a purchasing decision.
 Especially in the case of Hospitality Industry, which is growing with each passing year,
investments in local and international hotels have steadily increased, which has pushed the trend
for better customer services.
 Realizing the increase in competition among hotels, hotel managers are looking for ways to
improve service quality to be in a competitive position and gain significant advantage.
 Therefore, it is highly essential to inquire about values and tools necessary to improve the
service quality that the hotels could provide.
 Introduction
 Benchmarking the hotel services and subsequently the hotels is the best way to evaluate the
position of various hotels comparing to its competitors and to carry out effective marketing
strategies to uniformly intensify its market place.
 The research paper aims to investigate the service quality dimensions affecting the purchase
decision of customers regarding hotels, what all services they consider important while
choosing a hotel.
 The study intends to use factor analysis to describe factors affecting purchasing decisions and
subsequently Analytic Hierarchy Process (AHP) to define the priorities among rivals depending
on the findings of the first part, thereby creating a model which would help to enhance features
according to priorities.
 Literature Review
 A Hybrid Method Using Factor Analysis and AHP on Purchasing decisions: The Case of
Domestic Airlines in Turkey by Ozlem Atalik and Emirkan Ozdemi, 2015 investigates factors
affecting purchase decisions of domestic airline passengers and their preference priorities.

 In the study, factor analysis was used to describe factors affecting purchasing decisions which
was followed by Analytic Hierarchy Process to rank the priorities in comparison to its
competitors.

 The output from the research was helpful to generate various marketing strategies and to create
efficient resource planning activities.
 Literature Review
 Prioritizing the Banking Service Quality of Different Branches: A Case Study By G.V.S.K Gautham, Dr.G.Ram
Babu, D.Balaji Naik, G.Gandhi Krishna, 2015 explores the dimensions of customer perceived service quality
in the context of the Indian Banking sector.
 The Focus of this research was to identify the ways through which banks can improve the quality of the
services they provide and to find out the extend to which the quality affects the satisfaction level of the
customers.
 Ranking Insurance firms using AHP and Factor Analysis by Mohammad Khodaei Valahzaghard and Mahnaz
Ferdousnejhad, 2013 does an empirical study to rank the insurance firms using analytic hierarchy process as
well as factor analysis.
 The study considers four criteria including capital adequacy, quality of earning, quality of cash flow and quality
of firms’ assets, which were found through factor analysis.
 Based on the four criteria that were considered, the study was able to rank 15 insurance firms which could help
in deciding on a good investment opportunity.
 Literature Review
 A Repeat Purchase Intention Model Based on an Empirical Study on Hawaiian Hotels by
Juanita C. Liu, Yangkwan Kil, Daniel Spears, 2005 tries to develop a Repeat-Purchase
Intension Model.
 A survey instrument of 25 paired questions using 10 dimensions of service quality adapted from
the literature Quality Circles can improve Guest Satisfaction By Brewton.C (1998) was used to
survey 209 US mainland hotel guests in Hawaii.
 Factor Analysis was used to develop six valid dimensions affecting Repeat Purchase including
Personnel Services, Facilities and Value, Accessibility, Security, Cultural and Historical
Experience, and Atmosphere.
 OBJECTIVES
 To Identify the gaps between the service quality offered by the hotels and the customers’
expectation from the hotels in order to fulfil customer satisfaction.

 To rank the hotels according to the factors considered as important by the customers to
benchmark the services offered by hotels.
Analytic Hierarchy Process (AHP)