A research paper assessing the effectiveness of offering discounts as a service failure recovery technique in the hotel industry.
Written in 2008; 8,525 words; 20 sources; APA; $ 180.95
Paper Summary:
This research paper assesses whether hotel companies should offer customers a discount by way of compensation for service failure. The study assesses whether offering customers a discount is an effective strategy to ensure their repeat business in spite of having suffered poor service. The study also assesses whether it is in the financial interests of the company to offer such compensation. This is done by evaluating whether the company is able to generate the cost of the discount back from the customer through their repeated business.
Outline:
Introduction
Background
Purpose of the Study
Importance of the Study
Hypothesis
Outline Methodology
Sources of Information
Reliability and Validity of Data
Limitations of the Study
Summary of Research Questions
Literature Review
Methodology
Results
Discussion
From the Paper:
"The study is important in determining the strategy which the hotel industry should pursue in regards to offering discounts to customers. The practice of offering compensation as a means of service recovery is currently routine in many hotels. There has however been little analysis conducted as to whether the strategy is actually beneficial to the hotel. In the current market the conditions under which the strategy was devised do not necessarily hold, so there is no guarantee that the strategy remains as effective as when first introduced. It is important that the effectiveness of the strategy is assessed in order to ensure that the hotel can maintain their profitability and competitive market share."
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