Briefingnotesforliteraturereview Examples Examples2 ProjectOutline-BusinessDeveopmentandStrategy
Hello, I hope you are well. I would like you to do a literature review on Porter′s Five Forces Model. It has to be an analysis. You will need to incorporate 5 academic sources which must be no older than 2012. And you will need to reference them in the literature review. At least one every 3 sentences. Would be best if the sources are from Emerald… It must be APA latest edition. You have in the documents provided, the project outline which explains what′s needed with the structure. Then you have the briefing notes which are important as well. I also put examples of past literature reviews done by other students if needed
BBA6001 Business Development and Strategy Assessment 2 –
Literature Review under exam conditions
Briefing notes for assessment 2 – 50% of the module grade
You are required to carry out a critical analysis of the theory of an
academic business model or concept. This may be extended outside
the immediate content of the BBA6001 course, however, it may be
advisable to take a model that has been presented/discussed during
the course of the BD & S course.
Examples of these include but are not limited to:
Any of Porter’s models
Competitiveness
Matrices such as Ansoff, McKinsey of BCG
Innovation
Service Quality
Benchmarking
Growth models including Mergers and Acquisitions, Franchising and
Management Contracting
The Core theory/framework is to be presented and explained
(maximum of 200 words) and then critically analysed in relation to
other academic research. This may well include contradictory views or
perhaps differences in applications in differing domains or
geographical locations. Then the link from the model/concept and its
relevance to its application in the world of Hospitality and associated
Industries is to be explained. It is expected that your analysis may
result in a conclusion that justifies your position, either positive or
negative, on the model/concept.
You are permitted to take into the exam room with you:
A maximum of 5 ACADEMIC articles. These should be academic
articles from academic sources, and it is advised that these should be
from research carried into in the domain that will allow you to position
your critique in relation to its industry application. These should be
sourced from academic databases and not business sources. These
copies must not have any handwritten notes nor any highlighting.
Your 5 articles are to be handed in with your written paper, and if any
hand-written notes are found on your papers, for whatever reason,
your paper will receive a zero grade.
The ideas that you present in your literature review need to be
referenced to the sources that you supply. So, remember that if you
cite from the article itself, you can simply use the source reference
itself, e.g. (Smith & Jones, 2015). If you use a direct quote from the
source, it should have parentheses, and a page number reference to
the source, e.g. (Smith & Jones, 2015, p.386). If you use a reference
from within in the article, e.g. Porter (1985), you must reference it as
(Porter, 1985, as cited in Smith & Jones, 2015). These must then be
highlighted using the highlighter given to you in the exam room.
You are required to supply an APA reference list of your 5 sources. You
may bring this into the exam, already printed off. If you do not bring it
with you, you are required to include this in your paper. No additional
paper will be given, so this will need to be included in the 4 pages
allocated.
Literature Review
Business Development and Strategy
Aleksandra Duong
H64
3
27.01.202
1
GIHE
1
Authorship statement
“I confirm that this work is my own. Additionally, I confirm that no part of this coursework,
except where clearly quoted and referenced, has been copied from material belonging to any
other person e.g. from a book, handout, another student. I am aware that it is a breach of GIHE
regulations to copy the work of another without clear acknowledgement and that attempting to
do so renders me liable to disciplinary procedures. To this effect, I have uploaded my work onto
Turnitin and have ensured that I have made any relevant corrections to my work prior to submit”
2
Literature Review: SERVQUAL Model
The SERVQUAL model was developed by Parasuraman and acts as an instrument measuring
service quality across many business sectors. The model is identified by five different
dimensions which include tangibility, reliability, responsiveness, assurance and empathy. As a
result, such a tool is able to measure the gaps between service delivered and customer’s
perception, allowing further study of customer satisfaction (Parasuraman et al.,1985, as cited in
Goumairi et al., 2020). The SERVQUAL model has been implemented in various industries,
proving its usefulness and reliability. However, some sectors found greater focus being attached
to one dimension compared to the other, suggesting the model’s differentiation in its application.
The four studies which aimed to measure the gap between expectation and perception using the
SERVQUAL model, all agreed on the instrument’s high effectiveness. Sitaraman et al. (2020),
who performed a study on patients in the dentistry care department, confirms the ability of the
model being used on a regular basis. As a result, yearly reports assessing service quality can be
compared in order to investigate how patients’ perceptions change over time. Similarly, a pilot
study on low-cost Indian airlines verifies quality service as impossible to be measured
quantitatively but rather has to be assessed from the perspective of the customer (Hasan et al.,
2019). As both Goumairi et al. (2020) and Untaru et al. (2015) acknowledge the SERVQUAL
model to be able to adapt in many services, Hasan et al. (2019) believes the model is incapable to
adopt in all service industries since the tool does not address any specific issues. In the airline
industry as an example, it does not take into account service quality which are airline specific
and capturing real service perception is difficult since the customer already has a standardized
3
interaction with the staff while reserving a ticket, boarding, or handling the luggage. However,
Untaru et al., (2015) whose study was conducted in online banking services, insists on the
importance of measuring service quality as it helps in retaining customers by increasing
customer satisfaction and loyalty, thus, also generating higher profits. Even though each study
came from different service industries, the methodology was the same for all. Sitaraman et al.
(2020) created two questionnaires using the 5 point Likert scale, one measuring expectation and
another one measuring perception. Likewise, Untaru et al. (2015) applied the same quantitative
method, however with a 7 point Likert scale. Contrastingly, Goumairi et al. (2020) conducted a
questionnaire with a sample of Moroccan engineering students where he used a formula in order
to measure the difference in quality of service, where expected service was subtracted from
perceived service. Meanwhile, Hassan et al. (2019) sent out questionnaires on an online platform
where information obtained increased validity of the study since they were based on customers’
actual experience in low-cost Indian airlines. Nevertheless, each study ended up with different
results with different dimensions being considered as more important than others. The study on
patients’ in the dentistry department showed positive results in both service expectations and
patient’s perception, thus, all expectations were met and even exceeded. Largest positive gap was
found in the reliability dimension suggesting discipline from the staff and reliable treatment
procedures. Whereas, tangibility showed the lowest positive gap indicating an alert for the
hospital to consider on improving physical facilities (Sitaraman et al., 2020). On the other hand,
results from the university study revealed dissatisfaction from the students, where most negative
gaps were in the tangibility dimension regarding physical and school services provided to the
engineering students. Therefore, the appearance of physical facilities had an impact and
suggestions were made to consider investing in new and modern laboratories (Goumairi et al.,
4
2020). In terms of the pilot study, there was a strong correlation between customer satisfaction
and loyalty, thus, affecting service quality. Reliability as a dimension showed high quality,
meaning, service was provided with high accuracy and dependency referring to safe travelling or
punctual service (Hasan et al., 2019). Lastly, the online banking service case study found
respondents showing lowest satisfaction in reliability and assurance due to the fact that the
mobile application could not be accessed at all times and consisted of inaccurate information.
The average service quality was negative, thus, expectation did not match perception in
customer’s eyes (Untaru et al., 2015).
The SERVQUAL model has proved to be consistently used in different service industries
including dentistry, airlines, education and banking services. Therefore, within the hospitality
industry, Hasan et al. (2019) believes the instrument allows for thorough analysis of customer
satisfaction and loyalty. Moreover, the five dimensions of the SERVQUAL model grants
effective measurement between expected service quality and customer’s perception of the
service received. As a result, it provides further insights on the factors that require further
improvements. In order for the hospitality industry to generate consistent profit, the main source
identifies with customer satisfaction. Hence, the SERVQUAL model is a practical tool to
measure the unmeasurable: quality and perception.
5
References
Goumairi, O., Aoula, E. S., & Souda, S. B. (2020). Application of the servqual model for the
evaluation of the service quality in moroccan higher education: Public engineering
school as a case study. International Journal of Higher Education, 9(5), 223–229.
Hasan, M., Khan, M. N., & Farooqi, R. (2019). Service quality measurement models:
Comparative analysis and application in airlines industry. Global Journal of Enterprise
Information System, 10(3), 29–41.
https://doi-org.laureatech.idm.oclc.org/10.18311/gjeis/2019
Sitaraman, P., Shanmugasundaram, K., & Muthukrishnan, A. (2020). Assessment of service
quality in special care dentistry department using servqual model. Journal of Indian
Academy of Oral Medicine and Radiology, 32(3), 209–215.
https://doi-org.laureatech.idm.oclc.org/10.4103/jiaomr.jiaomr_69_20
Untaru, E. N., Ispas, A., & Dan, I. (2015). Assessing the quality of banking services using the
servqual model. Romanian Journal of Marketing, 2, 84–92.
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Literature Review: Ansoff’s Matrix
One of the instruments which analyzes strategies for business growth is known as the Ansoff’s
Matrix. Within the existing market and product, the theory shows four strategies labelled from
less risky to the riskiest. These include market penetration, market development, product
development and diversification (Hussain, 2013). Hence, each strategy allows firms to evaluate
possible risks which hinder the brand’s potential to grow. Such matrix has been used by
numerous marketers in order to create competitive advantage and adapt to the continuously
changing market. Thus, in order for businesses to progress, Ansoff’s matrix is used as a strategy
to reach objectives formed by the company.
Application of the Ansoff’s matrix was conducted across industries in order to consider
strategies which would promote growth. Since the fast food sector in Pakistan has been least
explored with no guidelines on how and where to invest in, Hussain et al. (2013) adopted the
matrix to evaluate strategies that bring competitive advantage into the market. Moreover, the
author insists on both internal and external environment conditions to be additional factors which
affect sales and performance of the business. Furthermore, Loredana (2017) describes many
small companies to be implementing such effective strategic tool and specifically aiming at
diversifying their position in the market whilst reducing risks. Therefore, applying Ansoff’s
matrix helps in evaluating the success of the business. Similarly, Yin (2016) agrees on enforcing
diversification strategy to generate profit in enterprises such as the Evergrande Group and
determining which other strategies can generate positive progress. By obtaining further analysis
of the Ansoff’s matrix, Khajezadeh et al. (2019) conducted research in both the hygiene and
7
detergent industry to evaluate how the strategies can be controlled to achieve best competitive
advantage in the market. However, the methodologies varied immensely as only one
standardized questionnaire with the 5 likert scale was conducted by Hussain et al. (2013),
whereas other studies required the Analytic Hierarchy Process method which calculates the value
of each strategy or the Artificial Neural Network used as a tool to anticipate the product’s market
position whilst the company aims to increase their shares (Yin, 2016)(Khajezadeh et al., 2019).
The results presented contrasting findings with different strategies being recommended to the
firm. The study by Hussain et al. (2013) recognized significant importance in all strategies,
except for diversification which did not prove to benefit the fast food sector. This could be due to
the dynamic environment of the market which cannot constantly implement diverse strategies
without knowing the impact it would have in the long-term. Thus, further exploration has been
recommended. Besides, Yin (2016) also believes companies should start implementing their
strategies in the order of market penetration, product development, market development, and
afterwards diversification if truly necessary. Results showed a negative relationship between
diversification and business growth, thus, it is recommended to focus on the existing market first
and gradually start developing other products in different markets later. Khajezadeh et al. (2019)
as well did not mention diversification as the choice of strategy, instead, both market penetration
and product development was suggested for both the detergent and hygiene industry in order to
retain growth in the existing market. On the other hand, only Loredana (2017) recommends to
implement a diversification strategy following Ansoff’s matrix theory, following an example of
Mcdonalds and the effectiveness of each strategy being implemented. As a result, the author
suggests that a manager should be able to run many businesses even if they are not related to
each other. Even if such a strategy is considered to be the riskiest, it also aligns with reducing
8
risk in the long-term and continuously growing in the market. Interestingly, as the strategies are
the same, some studies included a more in-depth explanation within diversification. As Yin
(2016) classifies diversification into concentric, horizontal and vertical, Khajezadeh et al. (2019)
indicates two forms of the strategy: the related and unrelated diversification. Thus, bringing more
extended knowledge in understanding the relevance of the Ansoff’s Matrix.
Adopting the Ansoff’s matrix enables for a thorough strategic decision in retaining a competitive
advantage in the market and increasing growth and profitability. The hospitality industry faces
strong competition and constant fluctuations in needs and demands. Hence, positioning the
company appropriate to its strategies is essential. Research concluded that diversification is the
riskiest and least recommended strategy since entering an unknown market is uncertain and
unpredictable (Yin, 2016). Though when implemented successfully, profits would be generated
significantly puting the firm under a great advantage. In conclusion, Ansoff’s matrix is an
effective tool in delivering optimal strategies which facilitate growth in emerging and already
existing businesses.
9
References
Hussain, S., Khan, J., Rizwan, A., & Latif, A. (2013). Ansoff matrix, environment, and
growth-an interactive triangle. Management and Administrative Sciences Review, 2(2),
196-206.
Khajezadeh, M., Niasar, M., Asli, S., Davari, D., Godarzi, M., & Asgari, Y. (2019). Application
of neural network in portfolio product companies: Integration of boston consulting
group matrix and ansoff matrix. World Academy of Science, Engineering and
Technology International Journal of Economics and Management Engineering, 13(6),
809-813. https://doi.org/10.5281/zenodo.3299381
Loredana, E. M. (2017). The use of ansoff matrix in the field of business. Annals of “Constantin
Brancusi” University of Targu-Jiu. Economy Series, 141–149.
Yin, N. (2016). Application of ahp-ansoff matrix analysis in business diversification: The case of
evergrande group. MATEC Web of Conferences, 44, 01006.
https://doi-org.laureatech.idm.oclc.org/10.1051/matecconf/20164401006
CUSTOMERSATISFACTION AND LOYALTY
Literature Review I
Customer Satisfaction
RIEBER Anna Katharina
BBA6001 Business Development and Strategy
Glion Institute of Higher Education
H643, Ed Schofield
10/02/2021
CUSTOMER SATISFACTION AND LOYALTY
2
Statement of Authorship
“I confirm that this work is my own. Additionally, I confirm that no part of this coursework,
except where clearly quoted and referenced, has been copied from material belonging to any other
person e.g., from a book, handout, another student. I am aware that it is a breach of GIHE
regulations to copy the work of another without clear acknowledgement and that attempting to do
so renders me liable to disciplinary procedures. To this effect, I have uploaded my work onto
Turnitin and have ensured that I have made any relevant corrections to my work prior to
submission.”
CUSTOMER SATISFACTION AND LOYALTY
3
Table of Contents
1. Introduction………………………………………………………………………………..4
2. Current Literature……………………………………………………………………….5-
7
2.1 Achieving Customer Satisfaction………………………………………………….
5
2.2 Measuring Customer Satisfaction………………………………………………….6
2.3 Impact on Organisational Performance…………………………….……………..7
3. Conclusion…………………………………………………………………….…………..
8
4. APA References……………………………………………………………………………9
CUSTOMER SATISFACTION AND LOYALTY
4
1. Introduction
Customer satisfaction is seen as a psychological concept, where the feeling of happiness and
fulfilment is derived from products and services (World Tourism Organization, 1985, as cited in
Pizam et al., 2016). This has a significant impact on organisational success, particularly in the
hospitality industry. The most used theory to evaluate customer satisfaction is the expectancy
disconfirmation theory (Oliver, 1980, as cited in Pizam et al., 2015). Blanchard and Galloway
(1994, as cited in Radojevic et al., 2015) emphasise that consumers evaluate firms’ offerings based
on their pre-purchase expectations and value perception. Value corresponds to perceived quality
in relation to price and acquisition costs. Pizam et al. (2015) explain that if consumers expectations
are fulfilled or exceeded, they are satisfied, which is known as positive disconfirmation. In case of
unfulfillment or differences between expectations and outcomes, customers are dissatisfied, also
referred to as negative disconfirmation.
CUSTOMER SATISFACTION AND LOYALTY
5
2. Current Literature
2.1 Achieving Customer Satisfaction
Current literature has emphasised the importance of customer satisfaction for corporate survival
(Ko, 2021; Pizam et al., 2016; Radojevic et al., 2015; Sun & Kim, 2014). Sun and Kim (2014)
point out that in today’s competitive environment only customer-oriented organisations, that
differentiate themselves, are able to attract and satisfy clients. However, achieving satisfaction
remains one of the biggest challenges, especially in the hospitality industry. Reuland et al. (1985,
as cited in Pizam et al., 2016) explain that hospitality experiences consist of products and services.
Consequently, they can be evaluated based on material products, employee behaviour and the
environment. Therefore, functional and performance-delivery elements are crucial to meet
customers’ expectations (Sun & Kim, 2013). Overall, a clear understanding of consumers’
requirements and value perception is essential to understand how quality is defined. Radojevic et
al. (2015) argue that necessary factors to satisfy customers in hospitality involve location, security,
hotel facilities and reputation. However, Pizam et al. (2016) demonstrate that satisfaction attributes
are situation specific and cannot be generalised. Customers have individual needs and
expectations, explaining why different satisfaction levels result from the same experience.
Radojevic et al. (2015) add that the intention to travel, length of stay, price and star classification
are significant attributes in guests’ value perception. Consequently, Vavra (1997, as cited in Pizam
et al., 2016) suggests organisations to focus on the needs of specific target segments. This helps to
improve service quality and build trusting relationships, ensuring maximum consumer satisfaction.
CUSTOMER SATISFACTION AND LOYALTY
6
2.2 Measuring Customer Satisfaction
Measuring customer satisfaction is of growing interest, as it determines product and service quality
and gives insights in what consumers value, require and identify (Grigoroudis & Siskos, 2010, as
cited in Sun & Kim, 2013). Radojevic et al. (2015) believe that star ratings are a good predictor of
how well expectations are met, as it reflects the overall quality of service and hotel facilities.
However, Pizam et al. (2016) state that satisfaction surveys and online ratings are the most
commonly used measurements to determine customers’ value perception. Positive, negative,
unfair or even manipulated reviews significantly impact a company’s reputation and influence
other clients’ attitudes and purchasing behaviour. Sun and Kim (2013) argue that consumers are
generally less motivated to voice positive feedback, as they expect to be satisfied from any product
or service. However, Ko (2021) emphasises that negative experiences are more impactful for
organisations, as dissatisfied customers can either stop purchasing or start spreading negative
word-of-mouth (WOM). Therefore, firms should seek continuous feedback and aim to minimise
complaints, instead of focussing on customer satisfaction only.
CUSTOMER SATISFACTION AND LOYALTY
7
2.3 Impact on Organisational Performance
By employing the American Customer Satisfaction index, Sun and Kim (2013) found out that
customer satisfaction is linked to firms’ financial performance. Ko (2021) and Radojevic et al.
(2015) agree that satisfied clients boost a company’s performance by improving shareholders
value, future cash flows, brand reputation and market position. Sun and Kim (2013) add that
consumer satisfaction directly influences sales, as it encourages WOM recommendations,
customers repurchase intention and loyalty. Especially in the service industry, where services
cannot be experienced before purchase, positive WOM is a vital and inexpensive marketing tool
to attract new clients (Luo, 2009, as cited in Ko, 2021). Naumann (1995, as cited in Pizam et al.,
2016) suggests that it costs five times more time, money and resources to attract a new consumer
than to retain an existing one. Nevertheless, the effectiveness of customer satisfaction is
increasingly questioned. Sun and Kim (2013) emphasise that especially in hospitality, companies
need to heavily invest in training and upgrading facilities to achieve higher satisfaction levels. This
indicates why customer satisfaction can influence a firm’s revenue positively but does not
necessarily increase its profits. Consequently, Ko (2021) suggests managers to compare
investment costs to the potential benefits achieved through increased satisfaction.
CUSTOMER SATISFACTION AND LOYALTY
8
3. Conclusion
To conclude, customer satisfaction is at the core of every hospitality organisation. Understanding
consumers situation specific needs and expectations is essential to maximise perceived value
(Radojevic et al., 2015). Satisfaction levels can be measured through surveys and online reviews
(Pizam et al., 2016). Especially dissatisfied clients impact companies’ reputation negatively,
explaining why firms should aim to reduce complaints first (Ko, 2021). However, satisfied
consumers are linked to positive WOM, reduced costs and loyalty, boosting organisational
performance (Sun & Kim, 2013). Nevertheless, costs associated with increased customer
satisfaction must be carefully evaluated to maximise profit (Ko, 2021).
CUSTOMER SATISFACTION AND LOYALTY
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4. APA References
Ko, C.H. (2021). Exploring how guest satisfaction and complaints effect on hotel performance.
International Journal of Organizational Innovation, 13(3), 180-190.
Pizam, A., Shapoval, V., & Ellis, T. (2016). Customer satisfaction and its measurement in
hospitality enterprises: a revisit and update. International Journal of Contemporary
Hospitality Management, 28(1), 2-35.
https://doi.org/10.1108/IJCHM-04-2015-0167
Radojevic, T., Stanisic, N., & Stanic, N. (2015). Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management, 51, 13-21.
https://doi.org/10.1016/j.tourman.2015.04.002
Sun, K. A., & Kim, D. Y. (2013). Does customer satisfaction increase firm performance? An
application of American Customer Satisfaction Index (ACSI). International Journal of
Hospitality Management, 35, 68-77.
https://doi.org/10.1016/j.ijhm.2013.05.008
CUSTOMER SATISFACTION AND LOYALTY
10
Literature Review II
Customer Loyalty
RIEBER Anna Katharina
BBA6001 Business Development and Strategy
Glion Institute of Higher Education
H643, Ed Schofield
10/02/2021
CUSTOMER SATISFACTION AND LOYALTY
11
Statement of Authorship
“I confirm that this work is my own. Additionally, I confirm that no part of this coursework,
except where clearly quoted and referenced, has been copied from material belonging to any other
person e.g., from a book, handout, another student. I am aware that it is a breach of GIHE
regulations to copy the work of another without clear acknowledgement and that attempting to do
so renders me liable to disciplinary procedures. To this effect, I have uploaded my work onto
Turnitin and have ensured that I have made any relevant corrections to my work prior to
submission.”
CUSTOMER SATISFACTION AND LOYALTY
12
Table of Contents
1. Introduction……………………………………………………………………………….
13
2. Current Literature………………………………………………………….……..…..14-
16
2.1 Achieving Customer Loyalty …………………………………………..…….14-
15
2.2 Benefits of Customer Loyalty…………………………………………………15-16
3. Conclusion……………………………………………………………………………….
17
4. APA References…………………………………………………………….…………….
18
CUSTOMER SATISFACTION AND LOYALTY
13
1. Introduction
In today’s competitive market, where companies offer identical or comparable products and
services, organisations depend on its loyal customer base (Aksoy, 2013, as cited in Kandampully
et al., 2015). Therefore, customer loyalty, consisting of attitudes and behaviours, is crucial for
organisational success, specifically in the hospitality industry (Day, 1969, as cited in Watson et
al., 2015). Hammond et al. (1996, as cited in Kim et al., 2015) explain that behavioural loyalty is
linked to consumers purchase frequency and repurchase tendency. Attitudinal loyalty is measured
by customers commitment to repurchase, support and give recommendations (Oppermann, 2000,
as cited in Kim et al., 2015). Therefore, Oliver (1997, as cited in Kim et al., 2015) claims that
strong positive attitudes encourage clients to rebuy products without considering competitors
offerings.
CUSTOMER SATISFACTION AND LOYALTY
14
2. Current Literature
2.1 Achieving Customer Loyalty
Current literature has emphasised the importance of customer loyalty for businesses (Kandampully
et al., 2015; Kim et al., 2015; Watson et al., 2015). Watson et al. (2015) argue that customers’ trust
is crucial to build long-term relationships. Trust is achieved when consumers are convinced that
the company is reliable to provide consistent good quality. Kandampully et al. (2015) believe that
businesses must update their products and strategies to stay competitive and build trusting
relationships. However, Lafley and Martin (2017) argue that novelty is not exchangeable with
familiarity. People are creatures of habit and like to buy what they know. Therefore, companies
should implement new features without losing their old identity. Moreover, Kandampully et al.
(2015), Kim et al. (2015) and Watson et al. (2015) emphasise that only satisfied customers are
willing to repurchase and give recommendations. This explains why customer satisfaction is an
important determinant of loyalty. Lafley and Martin (2017) add that every time a product is
purchased and evaluated satisfactory it gains a competitive advantage. Therefore, behavioural
loyalty is particularly affected by customer satisfaction (Kim et al., 2015). To create attitudinal
loyalty, consumer engagement and delight are essential. In contrast to satisfaction, where clients
receive what they expect, delight occurs when customers are pleasantly surprised (Oliver et al.,
1997, as cited in Kim et al., 2015). Kandampully et al. (2015) confirm that positive emotions,
created through memorable experiences and personal interactions, lead to greater brand connection
and encourage consumers to stay in the relationship.
CUSTOMER SATISFACTION AND LOYALTY
15
However, Lafley and Martin (2017) claim that not all products and services create emotional
connections. Consequently, airlines and hotels have loyalty programs to force customer loyalty.
Kandampully et al. (2015) agree that loyalty incentives are incapable of gaining long-term loyalty,
as they fail to understand consumers’ behaviour and expectations. However, it appears that
successful hotel companies, like Marriott, have a reason to invest heavily in their loyalty programs,
consisting of millions of members. Watson et al. (2015) and Kim et al. (2015) reveal that
organisations use loyalty incentives to reward customer behaviour, enhance perceived value and
boost brand image. This encourages effortless repeat patronage and habitual purchasing.
2.2 Benefits of Customer Loyalty
Kandampully et al. (2015), Kim et al. (2015) and Watson et al. (2015) confirm that customer
loyalty contributes to firms’ profitability. Well-nurtured relationships lead to reduced customer
acquisition costs, lower price sensitivity, increased willingness to pay and share of wallet. Share
of wallet indicates how consumers divide their purchases across competing firms (Xie & Chen,
2014, as cited in Kandampully et al., 2015). This is important, as customers express polygamous,
not monogamous loyalty (Kim & Lee, 2010, as cited in Kandampully et al., 2010). Generally,
loyal customers have a higher life-time value, as they repurchase more frequently and spread
positive word-of-mouth (WOM). However, Lafley and Martin (2017) question the importance of
loyalty, as financial returns relative to loyalty-building efforts often disappoint. Watson et al.
(2015) found out that attitudinal loyalty has a weaker effect on organisational performance, as
clients might be unable to give financial support. Behavioural loyalty has a stronger impact, as
frequent purchasing directly increases companies’ revenue.
CUSTOMER SATISFACTION AND LOYALTY
16
However, Lafley and Martin (2017) believe that those benefits are short lived. Repurchases are
often caused by situational constraints, including lack of alternatives and habits, indicating that
customers are not truly loyal to the brand (Henderson et al., 2011, as cited in Watson et al., 2015).
Overall, Watson et al. (2015) underline that achieving customer loyalty is a primary marketing
goal. Especially in the hospitality industry, where services cannot be tested prior to purchase,
consumers WOM has a powerful influence. Kandampully et al. (2015) underline that social media
has shifted power to the customer, increased the importance of C2C interactions and limited the
influence of traditional marketing. Moreover, customers function of producing value has shifted
to the role of brand co-ownership. Consequently, brand ambassadors are most valuable, as they
create a network of potential clients and support a business by spreading positive WOM.
CUSTOMER SATISFACTION AND LOYALTY
17
3. Conclusion
To conclude, the competitive environment has intensified the importance of customer loyalty to
achieve long-term competitive advantage. The customer as a brand ambassador has become the
most important driver of organisational success (Kandampully et al., 2015). Especially in the
hospitality industry, true loyalty cannot be created by loyalty programs, but with relational
strategies, including trust, satisfaction, engagement and delight. Overall, organisations should aim
to capture attitudinal and behavioural aspects of loyalty to benefit from positive WOM and succeed
financially (Watson et al., 2015).
CUSTOMER SATISFACTION AND LOYALTY
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4. APA References
Kandampully, J., Zhang, T. C., & Bilgihan, A. (2015). Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management, 27(3), 379-414.
https://doi.org/10.1108/IJCHM-03-2014-0151
Kim, M., Vogt, C. A., & Knutson, B. J. (2015). Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
Research, 39(2), 170-197.
https://doi.org/10.1177/1096348012471376
Lafley, A. G., & Martin, R. L. (2017). Customer loyalty is overrated. Harvard Business
Review, 95(1), 45-54.
Watson, G. F., Beck, J. T., Henderson, C. M., & Palmatier, R. W. (2015). Building, measuring,
and profiting from customer loyalty. Journal of the Academy of Marketing
Science, 43(6), 790-825.
https://doi.org/10.1007/s11747-015-0439-4
_____________________________________________________________________________________________________________________
Approval date: February 2018 Project outline template
Effective date: February 2018 Template owner: Barbara Miller; Martin Senior
Latest Revision: January 2018
Revision date: Page 1 of 4
This online version is a controlled document. Any printed versions are considered uncontrolled versions of the document.
PROJECT OUTLINE – ASSIGNMENT SHEET
______________________________________________________________________________
Course Number BBA6001 Course Title: Business Development and
Strategy
Program BBA Lecturer Ed Schofield
Assignment Type Turnitin
submission
Assignment
Name
Final Project – Literature
Review
Semester
6 Hand-out date: w/c 22nd March
Campus /
Learning Level
Bulle / 6 Hand-in date: On Turnitin before 3pm
on Monday 5th July
Overall Grade
Weighting %
50% Grade
Distribution %
100% Individual
Hand-in Place: Turnitin on Moodle
Assignment overview:
The assignment is to carry out a literature review on a subject of the individual students’ choice.
Overall aim:
The aim of the assignment is to carry out a literature review of between 1200 and 1400 words
from the domain of strategic management or associated domains of management theory. These
must be validated and authorized by your class tutor. The student is required to use a maximum
of 5 academic articles from which they reference the content of their work. The requirement is
then to use the content of the academic research to show their knowledge and understanding of
their chosen theories or concepts and then to explain the relevance, importance and application
of the chosen model or concept in relation to industry examples from the world of hospitality, thus
showing the link between theory and practice.
_____________________________________________________________________________________________________________________
Approval date: February 2018 Project outline template
Effective date: February 2018 Template owner: Barbara Miller; Martin Senior
Latest Revision: January 2018
Revision date: Page 2 of 4
This online version is a controlled document. Any printed versions are considered uncontrolled versions of the document.
Learning Outcomes and Transferable Skills:
• LO1 Critically appraise the application of key strategic management models within the world
of hospitality
Transferable skills assessed:
TS3 Information literacy
TS6 Learning how to Learn
Resources Available:
The requirement is to use the library databases to identify appropriate sources relating to the
chosen strategic management model (or concept). The preferred database is Emerald, and the
sources should be from peer-reviewed sources only. This, therefore, excludes business sources
found on other databases such as ProQuest. Articles provided as course resources on Moodle
may be used in your selection of articles. Exceptionally, a report may be used as a data source,
for example, if the chosen subject is Franchising, then the use of the US Franchise Fee guide
may be a good source to present how the importance and application of the theory are relevant
in today’s world of Hospitality.
Structure or Task: Learning Descriptor
1. Introduction
The model/concept is to be presented and explained.
This may be in bullet point format, a fully- referenced
copy and paste from an academic source, or simply a
written explanation (maximum of 100 words).
• Knowledge
• Cognitive Skills
• Transferable Skills
2. Current Literature
Your goal is to review academic literature in your chosen
subject area. The 5 articles should be from no earlier
than 2011.
You are to present the different academic views on your
subject matter, critically analyzing the views in relation to
the current importance of the business application of the
model/concept in the world of Hospitality and associated
industries. You are to synthesise these academic views
and to give your own interpretation, ensuring that they
are referenced accordingly, with either in text citations or
direct quotations (approx. 900-1000 words). It is
anticipated that the views will be extracted from any
section of any of the 5 articles, however, the relevance
of the results of the pieces of research may well allow
• Knowledge
• Cognitive Skills
• Transferable Skills
_____________________________________________________________________________________________________________________
Approval date: February 2018 Project outline template
Effective date: February 2018 Template owner: Barbara Miller; Martin Senior
Latest Revision: January 2018
Revision date: Page 3 of 4
This online version is a controlled document. Any printed versions are considered uncontrolled versions of the document.
for a more critical assessment of the validity and
importance of the model/concept chosen.
3. Conclusion
This should be a summary of what you have presented
and conclude with your position on the importance
and/or application of the chosen model/concept (100-
200 words).
• Knowledge
• Cognitive
• Transferable Skills
4. References
You are required to present your reference list at the
end of your literature review.
This assessment is an academic exercise, and hence in
text referencing is required. The suggested minimum is
one reference every 3 sentences.
You are permitted to submit and resubmit your work up
to the due date.
Please submit your work on a Word document
• Knowledge
• Transferable Skills
Learning Descriptor Task Weight
Knowledge Task All
40%
Cognitive Task All
30%
Transferable Skills Task All
30%
FINAL GRADE 100%
_____________________________________________________________________________________________________________________
Approval date: February 2018 Project outline template
Effective date: February 2018 Template owner: Barbara Miller; Martin Senior
Latest Revision: January 2018
Revision date: Page 4 of 4
This online version is a controlled document. Any printed versions are considered uncontrolled versions of the document.
Grading Rubric
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Formatting
Title Page
Citation
Outline
