Research hypothesis

To make inferences about behavior patterns, attitudes and perceptions of the

population as a whole, the researcher will recourse to statistical analyses.

Basing on the information to be provided by respondents, various

hypotheses of image and customer retention among hoteliers have to be

tested.

Ideally, building on notions explored during the secondary research, the

researchers will aim to discover whether image of hoteliers will influence

customer retention along with better decision process as such the notion that

such first class hoteliers would drive more customers and that hypotheses

denoted by H0 are as follows:

H0. Business image has influence on retaining customers within the first

class hoteliers rather than other hoteliers.

H1. Business image has varying influence on customer retention within

hoteliers

H0. "Hoteliers will need to keep and manage strong image for retaining

loyal customers as compared to keeping

H1. "Managing strong image" has varying persuasion on customer retention

within hoteliers

Research questions
For the research, research questions serves a purpose in guiding how to do
with the research and what information needs to be considered and focus
relating to research studies in support to methods utilization and its
anticipated outcomes.
1. How can image management enhance loyalty among hotel

customers? (Cite examples, such as case studies)

2. Do hoteliers need to manage image to retain loyal customers?

(Provide secondary support of information)

3. What are the ways to achieve customer retention within the effective

assumption of business image in hotels? Discuss

4. Aside, does technology utilization within hoteliers help in keeping

their loyal customers? What image is emphasized in terms of

communicating well to the customers? (Determine causal relationship

between image and technology as imperative factors for retaining

customers)

Overview of Research
The focus of the research will have to be customer retention and image
management within the hotel industry. Then, there is integration of research
information and knowledge supporting such underlying concepts of how the
research should be in essence with ample research applications through such
empirical data gathering by means of utilizing research methods and
describing detailed organization of how the research will be as a whole
context as being backed up with comprehensive literature and its respected
studies.
Background
Amicably, retaining loyal customers for hoteliers is essential and a core
factor in keeping the business industry in shape and competitive enough to
level up the changing trends of globalization that has impacted such
business and economic activities of the hotel markets. Thus, to be in control
of business image and be able to manage it properly implies strong
assumption that the hoteliers require and must keep a top propriety in order
for them to retain loyal customers and possibly increase the size of the
customers given the fact that, the hotel business must have to secure and
update its business image to loyal customers and to the people who can be in
a way become potential customers in the future.

Overview of Literature

In the past decades the hospitality industry has witnessed exponential

growth, resulting in increased competition on such global scale. Thus, loyal

customers critically assess the standards of service provided by competing

hotel and confirmed that the customers' approval of firm's quality of service

can outcome into better business image of the hotel industries thus, leading

to growth in its sales and profits (Cited from, Zeithaml, 2000). Indeed,

hospitality industry recognizes that superior quality of service is one of the

crucial factors within its control that can add value to its image and

amicably will lead into customer retention and loyalty then, good image as

well as the quality of service have become the key to hotelier's ability to

differentiate itself from its competitors and retain its loyal customers and

gain their loyalty (Cited from, Kandampully and Suhartanto, 2003). Faced

with intense competition in the marketplace, it cannot be assumed that there

is an unlimited customer base prepared to maintain patronage. It is

imperative for hotels to tailor hotel services to the changing needs and

lifestyles of customers (Cited from, Min et al., 2002) with view to increasing

customer loyalty and retention. On the other hand, research conducted by

Reichheld and Sasser (Cited from, 1990) suggested that a 5 percent increase

in customer loyalty could produce a profit increase of 25-80 per cent.

Furthermore, they argued that the profitability derived from an individual

customer grows during business relationship. They also found that up to 60

per cent of increased sales to new customers could be attributed to customer

recommendations, form of customer loyalty. Thus, Reichheld (Cited from,

2001) argued that five percent increase in customer retention yields seventy

five percent increase in net present value. Similarly, Grönroos (Cited from,

2000) indicated that, in most businesses, loyal customers are willing to pay

premium price. It is therefore evident that the long-term benefits of loyal

customer-supplier relationship can be significant to any hospitality firm, as

the "return on relationship" reflects directly on the firm's long-term financial

outcome (Cited from, Gummesson, 1999). In addition to hospitality

organizations becoming more aware of the benefits of technological

applications, customers have also become increasingly driven by

technology, and are therefore demanding higher levels of services associated

with technology. It is therefore imperative that hotels identify ways in which

they can utilize new technologies to create services that contribute to

increased value for their customers (Cited from, David et al., 1996).

Several authors have highlighted the implications of being "customer

oriented" as the most important component image management (Cited from,

Rich, 2000; Siegel, 1999). Supporting the idea is Gummesson (Cited from,

1996) as he claims that "customer focus" not only: "compels management to

realize the firm's primary responsibility to serve the customer", but also "to
recognize that customer knowledge is paramount to achieving market

orientation". As Christopher et al. (Cited from, 1991) offer checklist of how

companies can become customer centric:

- Focus on customer retention

- Offer superior products services benefits

- Pursue long-term vision

- Emphasize exemplary customer service

- Engender customer commitment

- Ensure that quality is the concern of all

Meanwhile, there directed emphasis away from transaction strategy towards

that of attraction and retention, and as Kandampully and Duddy (Cited from,

1999) point out: "This shift in focus manifests acknowledgement of the

lifetime value of customer, as opposed to the one time sale" In support of

this paradigm shift, Zineldin (Cited from, 1999) further concedes: "Getting

customers is important, but keeping and satisfying customers is more

important". What is changing is the pace at which companies must improve

their products/services if they hope to keep customers loyal. Reichheld and

Schefter (Cited from, 2000) maintain: "Loyalty is not won with technology"

and insist "It is won through the delivery of a consistently superior customer

experience". Given the involvement of hotelier services in complex

relationships with customers, this research will have to discuss empirical

research that will be able to attempt in establishing the degree to which hotel

groups are subject to image maintenance and update of services provided to

the customers.

Methodology

The purposes of this study is basically to investigate the extent to which

business image management has influence customer retention of the services

being provided by the hoteliers within the hotel industry and then, to acquire

better understanding of the perceptions held by management regarding the

impact of imaging through technology on its service and customer loyalty.

In particular, the sample excludes small and medium-sized accommodation.

Second, the study will focus on perceptions of sales and marketing

managers, thereby excluding the perceptions held by customers. Moreover,

in order to provide comprehensive understanding of the impact of image on

customer loyalty, future studies could incorporate the perceptions of the

parties to be involved. Although customer survey questionnaires continue to

represent common tool in tracking customer information and customer

satisfaction, the results could indicate that managing good image in hotels is

essential. To manage hoteliers effectively within diverse operating

networks, managers must ensure that the hotel's technology is compatible

with other network system. In the past, the hospitality industry was

primarily focused on selling accommodation, food and beverages. It has

now evolved into truly global industry, not only because hospitality
enterprises serve international markets but also because their products and

service are complex, discontinuous and globally competitive. For many

people, hospitality services have become an integral component of business

and social life. Hotel managers must incorporate services that customers

demand, and in many respects these are substantially different from those

demanded in the past. Hotels today do not represent a mere home away from

home. For many business customers, hotels are a traveling office, a meeting

place for learning and the exchange of ideas, and a place to entertain, enjoy

sporting activities, and so forth. Thus, the traditional core offerings of hotel

represent only small component of the package of experience that customers

seek. Hotel managers must realize that technology will not be the

differentiator. Rather, creative and innovative use of technology that

enhances the value of offered services will be the means by which hotels

differentiate themselves from their competitors. Managers must adopt new

technologies that assist hotel employees to serve customers better at the

operational level.

Research Design

For the design purposes, a questionnaire will be use and will comprise of 17

open-ended and closed-ended questions to be formulated. The questionnaire

will cover customer retention information and business imaging process

within the impact of such matter on customer loyalty respectively. A total of

70 questionnaires have to be randomly distributed to sales and marketing

managers of independent and chain hotels in the city of New York to be the

chosen ample because of such known success in hospitality and tourism

industries in the US. Along with the four-page questionnaire will include

covering letter and such stamped self-addressed return envelope.

Sampling

Although purposive sample would usually be appropriate for qualitative

research, the fact that the sample possibly be nested in context provides such

extra advantage. Moreover, the various types of hotel groups can be well

represented in the composition of the sample. Thus, it should be noted that

hotel groups, would evolve once the fieldwork began, as this represented the

full population of hotel groups in the US.

Sources of Data

Given that the primary research aimed to focus on managing image of

hoteliers for customer retention, there has to be qualitative perspective deem

the obvious choice to express the current reality in explanation and such

objective was to offer grounding to secondary research and give the research
in-depth information value and structure. In addition, sources of data can

include primary and secondary sources that will involve first hand

information of research outcomes and certain literature studies from reliable

books, peer reviewed articles and journal from such academic resources

such as from Blackwell, Ebsco as well as Questia library.

Form of Results

After assessing the pros and cons of the various tools appropriate for the

quantitative research, survey questionnaire with regards to the customer

retention will have to be in consideration within straightforward method of

collecting substantial data as well as being most cost effective. On account

of the widely acknowledged reluctance of hoteliers to openly discuss their

business imaging and operations, detailed questionnaire, which could not be

too probing will be devised. Although the questionnaire has to consists

mostly of close-questions and "Likert scale" type of analyzing data (Cited

from, Malhotra and Birks, 1999) some open-ended questions, more typical

of qualitative research, have to be introduced to provide greater depth of

data regarding retaining of loyal customers of hoteliers in order to better

understand the complex behaviour of the hotel industry that is without

imposing too much links that could limit the field of research.

Analysis

In order to specify details of such analysis that can be good basis for
assessing the research study as such attempt to further explore the research
will be important in creating methods and process of research which will
determine how far the particular choice of methodology in the form of
questionnaire application could continuously lead to the same research
measurement and such detailed results supporting aspects of the study.
Additionally, when assessing the research against the backdrop of notions
under study in the literature review, the researchers could not guarantee
consistency of results if another investigation of the topic was to be carried
out at the same time using different research instruments. However, to
counteract the unconscious deformation of information gathered and to
strengthen the reliability of the primary research, case study presentation
will have to be utilized. Despite the fact that limitations of the questionnaire
in terms of depth and relevancy of information gathered could not be
completely eradicated, the data to be apprehended and requested can be
deem appropriate for such type of research analysis.