Gap Analysis in Customer Loyalty: A Research in 5-Star Hotels in The Antalya Region of Turkey
Gap Analysis in Customer Loyalty: A Research in 5-Star Hotels in The Antalya Region of Turkey
Gap Analysis in Customer Loyalty: A Research in 5-Star Hotels in The Antalya Region of Turkey
1007/s11135-005-5357-y
Quality & Quantity (2006) 40:187205 Springer 2006
Gap Analysis in Customer Loyalty: A Research
in 5-Star Hotels in the Antalya Region of Turkey
A. AKIN AKSU
Akdeniz University School Of Tourism and Hotel Management, 07058 Arapsuyu
Campus - Antalya, Turkey. E-mail: [email protected]; [email protected]
Abstract. Today everybody knows that in balance of establishmentcustomer relation,
customers had gained big advantage. In order to continue long-term relationships with
customers understanding them, meeting their expectations, being different from rivals are
important. This situation is especially vital in similiar goods and services offering establish-
ments. For gaining advantage and being unique, offering suitable goods and services, meet-
ing even over meeting expectations and desires of customers are needed. Customer loyalty
topic had changed the ways of looking of establishments to customers. Now, establishments
are trying to satisfy, make loyal their customers. Loyal customers mean nancial and spiri-
tually inputs to establishments. It is generally known that especially on tourism sector there
are few researches on customer loyalty. In this context, author believes that this research will
have a positive input to the related literature.
Key words: customer loyalty, gap analysis, hotels.
1. Denition and Importance of Customer Loyalty
Since 1990s loyalty topic has an increasing importance especially in mar-
keting efforts and management applications. Its importance is emerging
from decisions of customers regarding goods and services. Establishments
that create customer loyalty has a big advantage among their rivals (Ruyter
and Bloemer, 1999, p. 320).
Loyalty means being loyal to someone (Milliyet, 1985, p. 554). Here
being loyal can be thought for persons or for establishments. If it is
thought for establishments, it means being loyal of customers to their
establishments voluntarily. Generally customer loyalty has a meaning of
customer preferences and preference frequencies of customers (Wong et al.,
1999, p. 54). In a different perspective, customer loyalty can be thought as
reluntance of changing goods and services (Metiner, 1997, p. 4). Looking
to customer loyalty topic solely as preference frequency will not be enough.
Customer loyalty means feeling of belongingness to customers at the same
time (Smith, 1996, p. 34).
188 A. AKIN AKSU
When customer loyalty was examined from the establishments operat-
ing in service sector perspective, it can easily be seen that loyal customers
prefer goods and services from the establishments that have positive inu-
ence on them. More than other sectors, cutomer loyalty has a more impor-
tance in service sector. The main differences are the difference between
good demand and service demand, the more need for interaction among
individuals and the existence of perceived risk related to services (Gremler
and Brown, 1999, p. 273). When customer loyalty topic was examined from
hotels and dining establishments, it can be experienced that loyal custom-
ers generally choose establishments that they are loyal. Even more, loyal
customers can cooperate with these establishments (Shoemaker and Lewis,
1999, p. 349).
Gaining of customers advantage in establishmentcustomer relation,
globalisation, together with hard competition, orients establishments to be
different. Being different has a speacial advantage among rivals that offer
similiar goods and services. When banks, hotels, insurance companies or
hospitals are thought as some examples of service establishments, it is pos-
sible to see that there are no big differences between their services. This
similarity can also be seen in their pricing policies. In this context, their
superiorities can be inuenced from their service, satisfaction and applica-
tion differences. In todays world, the establishment that meet, even over
meet the expectations and desires of customers, can be evaluated as suc-
cessful (Cannie and Caplin, 1991, p. 42).
Changing of customer preferences and though competition among rivals
forced managers to change their marketing strategies. From managers per-
spective, creating customer satisfaction as well as customer loyalty become
vital. Creating customer loyalty enables decreasing marketing costs both in
current and future periods of establishments. Establishments working with
loyal customers will have less marketing costs than the others in publicity,
personal selling and informing new customers efforts (Wong et al., 1999,
p. 53).
Nowadays, developments in technology enable learning of customer
expectations and preferences and orienting offereing of goods and services
according to them is possible both for small and big-scaled establishments.
Collecting information about customers and using them make creating cus-
tomer loyalty easier. Customer loyalty increases frequency and amount of
buying as well as number of customers.
For an establishment, customer loyalty means the most satised cutom-
ers with ve score over 5-Likert scale. Loyal customers are over-satised
customers. They are missioners of establishments in their private and busi-
ness life (Noe, 1999, p. 96). Here loyal customers can be evaluated as they
are aware of a value that is offered to them by their establishments. In
customer loyalty, establishment-customer relation is a long-termed relation.
GAP ANALYSIS IN CUSTOMER LOYALTY 189
In order to have long-term relation with customers, sometimes establish-
ments can self-sacrice from their short-term prots. Another benet of
loyal customers to establishments is mouth to mouth publicity in ser-
vice sector. Mouth to mouth publicity is sharing of positive or nega-
tive impresions of customers regarding their goods and services experiences.
It is generally known that mouth to mouth publicity has an important
effect on individuals for many years. If any customer is sharing his/her
positive impressions in private/business life regarding offered goods and
services, this situation causes high level customer loyalty (Selnes, 1993,
p. 21). In addition to this, loayal customers reference establishments to new
customers (Gremler and Brown, 1999, p. 271).
2. Calculation of Customer Loyalty and Studies Regarding Customer
Loyalty
Without any sector differences, for all establishments increasing customer
loyalty will effect both current and future nancial structure of establish-
ments positively. In creating customer loyalty, creating customer satisfac-
tion is foremost provision. Customer loyalty generally calculated with the
number of repeat guests, increases in the number of cooperation possibili-
ties and the number of people giving references. In addition to this, exam-
ples directly reaching to people are also important. Forming focus groups,
detailed interviews, questionnaires and feedbacks from customers can be
given as examples (Murphy, 1995, p. 16, 22).
Calculation of customer loyalty and averages according to sectors are
important. For example, for an automobile factory calculation of customer
loyalty or dening the next preference of customers to the advantage or
disadvantage of establishment must be known. Thse king of information
will have an inuence on future management decisions (Reichheld, 1993,
p. 64).
Changing of market situations together with increases in customer
expectations focused establishments to their customers much more than
ever before. Especially continious increases of customer expectations and
satisfaction need of customer have a big ingluence over establishments
(Kandampully, 1997, p. 92). With the reection of these developments to
literature, the number of studies on customer satisfaction and customer
loyalty increased year by year (Dick, 1995, p. 65). Today this tendency is
still going on in all over the world. In order to build continious relations
with customers, establishments are developing new strategies and programs.
According to Direct Marketing Association report, the main theme of
1997 annual cenference was customer relations management (Duffy, 1998,
p. 435).
190 A. AKIN AKSU
Despite of increases in the number of studies regarding loyalty topic, it
is possible to mention that still there are limited number of studies. Loy-
alty concept and results of loyalty (Jones and Sasser, 1995; Gremler and
Brown, 1999) still preserve its mystery from researchers perspective (Ruyter
et al., 1998, p. 436). Some of loyalty researchs are related to inuence of
loyalty on behaviours (Javalgi and Moberg, 1997). Customer loyalty stud-
ies are generally limited to sectors and their results couldnt be generalized
(Crosby and Stephens, 1987; Cronin and Taylor, 1992; Kelley et al., 1993;
Rust and Zahorik, 1993; Zeithalm et al., 1996).
In literature beside loyalty topic, it is posible to see the studies regard-
ing inuences of satisfaction and service quality on consumption prefer-
ences of customers (Newman and Werbel, 1973; Oliver and Linda, 1981;
Bitner, 1990; Bolton and Drew, 1991; Taylor and Baker, 1994). Especially
on services, the need for perception of service quality and models show-
ing loyalty as a result of service quality are always mentioned (Cronin and
Taylor, 1992; Boulding et al., 1993; Gremler and Brown, 1996). In litera-
ture regarding the nancial support of customer loyalty for establishment
is always mentioned by the researchers (Reichheld, 1993, 1996; Schlesing-
er and Heskett, 1991). Especially there are some studies showing that loyal
customers have much more goods and services consumptions (Clark and
Payne, 1994; Reichheld, 1996).
Despite the fact that generally there are close and positive relation
between customer satisfaction and customer loyalty, some researches in lit-
erature show that there is no quarantee that customer satisfaction always
creates customer loyalty (Finkelman and Goland, 1990; Reichheld and
Aspinall, 1994; Jones and Sasser, 1995; Mittal and Lasser, 1998).
In lodging industry there are very few studies on customer loyalty
(Clark and Wood, 1998, p. 139). As in other industries, there are some
studies showing that customer satisfaction will inuence customer loyalty
(Barsky, 1992, 1995; Dube et al., 1999; Lee and Hing, 1995).
3. Service Structure of Hotels
Generally it is well-known that service sector is very important for most of
the countries. As in other sectors, establishments operating in service sector
are trying to nd out alternative ways of being different (Tam, 2000, p. 31).
There are many examples for the establishments operating in sevice sec-
tor. Some examples are bakns, hospitals, insurance companies, hotels, travel
agencies, educational institutions, entertainment establishments etc. (Can-
nie and Caplin, 1991, p. 9). When the activities of hotels were examined,
it is posibble to see that in recent years hotels are especailly focused on
customers with an increasing trend. Customers are in the center of their
activities and feedbacks of customers are evluated as valuable input by
GAP ANALYSIS IN CUSTOMER LOYALTY 191
hotels. Experiences of cutomers from their hotels have positive or negative
inuence on their next hotel preferences. In this context, low rate of defects
and solving problems immediately are very important (Smith et al., 1999,
p. 356). The main target of hotel managers is satisfying their customers
with suitable goods and services, having positive references of their custom-
ers, and having repetitive customers (Ferguson et al., 1999, p. 58). When
hotel-customer relation was examined, it can be said that customers have
to go to the hotel and the evaluation of hotels goods and services were
made by hoel customers (Baker and Crompton, 2000, p. 788).
Nowadays hotel managers increasingly have to cope with dinamic exter-
nal changing factors, customer expectations and laws. As Olsen (1996) has
stated that in order to be successful, managers have to catch the oppor-
tunities in their surroundings and develop competitive strategies (Collie
and Sparks, 1999, p. 23). Parker (1996) states that lodging industry will
continue its popularity in the future and this situation will cause much
more competition and change in the next years. In this context price,
value, customer satisfaction and customer loyalty will be the most impor-
tant topics that must be taken into consideration (Ingram and Daskalakis,
1999, p. 24). The main problems of hotels can be summarized as; uctua-
tions in touristic demand, high risk of touristic investments and low prot
rates (Jeffrey and Barden, 2000, p. 179). In current hotel market, some of
international hotel chains have problems because of tough competition, low
growing rate, increase in population, much supply than demand in increas-
ing market share (Tepeci, 1999, p. 223).
Whatever the accomodation reason is, it is important to show the
needed interest to hotel customers. Being appreciate of hosting customers
will be a suitable approach for hoteliers (Nicholls et al., 1999, p. 4). Beside
offered goods and services, immediate problem solving has also effects cus-
tomers hotel evaluations. In this context hotel managers can benet from
problem solving teams with proactive approach in order to increase the
quality of goods and services (Hoffman et al., 1995, p. 49).
4. Creating Customer Loyalty in Hotels
In dening customer loyalty, it is better to investigate the content of cus-
tomer loyalty applications. Customer loyalty applications will cause some
costs. In creating customer loyalty the general suggestion for hoteliers is
orienting to protable loyal customers in current and future applications.
Among the possible ways of customer loyalty efforts efforts of hoteliers
offering nancial benets or building a sensitable relations can be given.
Here the most preferred one is building a sensitable relations with cus-
tomers. This effort will cause long-term relations and give an advantage
of hardly loosing customer possibility against rivals. In addition to this,
192 A. AKIN AKSU
creating sensitable relations can nor easily be copied by rivals. Hoteliers
generally prefer offering nancial benets in creating customer loyalty. In
fact with this application, they take the risk of loosing their customers
easily. Instead of offering nancial benets, building a sensitable relations
will have more, continious and positive effect on customers (Metiner, 1997,
p. 28). There is much risk of nishing relations with customers in nancial
benet offerings.
Benet and trust have an importance in creating customer loyalty
from hotels perspective. Among the benets that a hotel can offer to its
customers are; offering a luxury room with standart price, behaving elas-
tic during check-in etc. Trust examples are; obeying to the commitments,
creating of being trustable among the customers, realizing the commit-
ments, being correct in reservations and bills etc. Hotel managers must
realize their commitments and show the needed interest to their customers
in order to create trust feeling.
From hotels perspective, it can be mentioned that with relational
marketing approach, creating customer loyalty, customer satisfaction and
meeting of customer expectations have increased. Especially since 1990s
relational marketing has taken the place of traditional marketing. Rela-
tional marketing has a scope of developing long-term relations with cus-
tomers. Increasing productivity and decreasing costs enable of having more
frequent and close relation between establishments and customers (Foster
and Cadogan, 2000, p. 185).
Developments in technology enables suitable conditions in customer-
hotel relation in relational marketing. Individual and speedy service is pos-
sible for customers (Bejou and Palmer, 1998, p. 7). Now, meeting and over
meeting of customer expectations, giving efforts in relational marketing and
forming long-term relations with customers are more easier (Marshall and
Javalgi, 1995, p. 60).
Relational marketing can be evaluated as a strategical approach with its
keeping current customers in hands, forming closer relation with them and
increasing work volume aspects. The main points of relational marketing
are; showing proximity and offering attractivenesses. In practising relational
marketing, the important factors can be summarized as follows (
Inal and
Demirer, 2001, pp. 26, 27);
customer focusing,
The research was limited with only ve 5-star hotels operating in the
Antalya Region of Turkey. For the author it is nearly impossible to
have data from all 5-star hotels operating in the region.
This research was made to both local and foreigner tourists in Turkish,
English and German languages without any nationality differences. For
future reseachesin order to increase the data, may be it will be beter
to benete from different questionnaires in different languages beside
Turkish, English and German languages.
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GAP ANALYSIS IN CUSTOMER LOYALTY 199
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9
202 A. AKIN AKSU
Table III. Gap analysis
The highest
hotels The highest
performance important
Aspects (7) (%) topics (7) Gap
Providing upgrades when available 25.8 31.2 5.4
Requesting a specic room in this hotel 26.4 28.4 2
Asking if you like to make a reservation,
if the hotel is likely to be sold out at a
time you normally visit 24.3 24.1 0.2
Using information from your prior stays
to customize services for you 35.4 26.5 8.9
Recognizing of you when you arrive at
the hotel 34.8 27.3 7.5
Expedition of your registration process
when you return to this hotel 20.6 21.8 1.2
customers return to the same hotel, providing upgrades or occasional
gifts when available, recognition of customers when they arrive at the
hotel, offering rooms even in case of early check in times, possibility of
requesting a specic room in the hotel and asking if the customers like
to make reservation if the hotel is likely to be sold out at a time they
normally visit are the topics that can be mentioned among the expected
benets by customers from the sampled hotels. Regarding benets, it is
important to learn the costs of benets in order to continue long term
relations with customers.
It can be said that customers in the sample are generally satised from
room services, restaurants, consierge, meeting rooms, animation pro-
grams, hotel securities and gardens. Only in tness and technical service
it would be better to serve more politely.