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Assessment of Consumer Preferences
Assessment of Consumer Preferences
Augusmm MarUlin L
lnstitut Teknologi Bandung
Indonesia
Licensedto print 05 copies, 13 August, 2013,
License valid upto 12 November, 2013.
To d e r copies, dl 91-08417-236667168 or write to IBS Center for Management Research (ICMR), IFHE Campus,
Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: inf@cmindia.org
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The World Economic Forum is an independent international organization committed to improving the
state of the world by engaging business, political, academic, and other leaders of society in shaping
global, regional, and industry agendas.
Every country is assessed based on selective features like natural resources, cultural resources, price
competitiveness, transport network, tourism inhtructure, etc. and the Travel and Tourism
Competitiveness Index (TTCI) or a Rank is assigned based on the net score.
Travel & Tourism CompetitivenessReport 2011,
http://www3.weforum.orgldo~FFTravelTouri~mC~mpetitivenes~SReportrt2Ol
1.pdf
It is an international organization of travel industry executives promoting travel and tourism worldwide.
"Hotel Industry in India," http:/~business.nmpsofindia~~m~india-indu~hotel-indu~-in-indiah~
would be a destination for hotel chains looking for growth. They said the growth rate would
increase further in the future considering the number of rooms that would be required by the hotel
industry.
With this kind of growth and opportunities expected, all the hotel chains had started to expand
their businesses. One such chain was KHR.
THE PILOT
As part of the new 'customer focus' strategies, the management of the company planned to go in for
further expansion but in a planned way. The main objective of the company was to improve its share
in the market and retain the customers with their services. However, before starting the process of
expansion, the management wanted to assess customer preferences and the kctors influencing their
preferences. To discuss all the proposed initiatives, Kiran called for a meeting of the managers of all
the departments. The managers put forth their opiniondviews on the proposed new initiatives. K i m
was impressed with the suggestion of the Marketing Head, Anil Sharma (Sharma), that a Marketing
Research Analysis be conducted to come up with an appropriate solution.
Sharma was made responsible for the project. He carried out a small pilot study in Marketing
Research on customer preferences in the KHR group of hotels and the factors influencing their
preferences. The main purpose of the study was to assess significant factors which could influence
customer preferences. KHR set up a customer suggestions box to obtain customer feedback or
suggestions, based on which it could initiate changes in the existing system if required. These
feedback forms were helpful in developing a consumer preferences table (Refer to Exhibit I for
tabulated information). Another important initiative was the setting up of the consumer grievance
cell which provided solutions to the customers on problems that they frequently kced.
Based on the collected information and analysis, Sharma submitted certain recommendations to
the management. One of his recommendations was that KHR should focus mainly on three factors
which would have a major influence on consumer preferences, namely, quality of food, pricing of
the food, and service of the hotel. But Kiran had doubts whether this recommendation would be
accepted and was still not totally convinced that the research results were good enough to take a
decision based on them.
5.
Exhibit I
Note: All the ratings are given in the range 'I ' to ' I 2 'points scale of preference of the factorhananable.
The
score ' I 2 'points indicates highest level of preference. The score ' I 1 'point indicates next level of pre$erred
hotel and so on The score '1 'point indicates lowest level ofpreference.
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