Importance of Customer Satisfaction for Business Growth

Understanding Customer for Better Managment

Introduction To Management Skills

In today's competitive environment, customer satisfaction has become a priority for business entities to gain competitive advantage in the market. The satisfaction level of customer is directly connected to the services and goods, provided to the consumers and it can be experienced in a variety of situations (Cochran, 2003). Satisfaction level of customer is highly affected by the customers expectations. It can be judged through customer’s experience related to services of personal outcomes. Within hospitality industry physical distribution of services affects the final customers. Sheraton hotel, Edinburgh is providing hospitality services to customers. The major problem of organization is of profitability. The business entity wants to identify the level of customer satisfaction and its impact on the business. The present report is aiming at investigation into customer satisfaction level within Sheraton Hotel, Edinburgh.

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In today's scenario competition has been increased in hospitality sector and it has become important for business entity to identify the consumer behaviour towards the services in order to ensure the performance of business. Customers are important stakeholders of business and organization aims at satisfying its customer better than existing competitors. The major reason for conducing the present research is to identify the satisfaction level of customers for Sheraton Hotel, Edinburgh so that further strategics can be made. Today's customers has become aware due to the technology (Guo, Xiao and Tang, 2009). They are obtaining information from internet sites and are comparing the services of organization. This can create a problem of “customer switching” for business entity. Therefore, to overcome such problems company is going to identify the level of customer satisfaction.


Aim : The present study aims at investigation into customer satisfaction level within Sheraton Hotel, Edinburgh

  1. To asses the relationship between customer satisfaction and organizational growth
  2. To analyse the factors affecting customer satisfaction in hotel industry
  3. To identify the level of customer satisfaction in Sheraton hotel, Edinburgh
  4. To recommend the ways to increase level of customer satisfaction to Sheraton hotel, Edinburgh
  1. What is the relationship between customer satisfaction and organizational growth?
  2. What are the determinates that affect customer satisfaction in hotel industry ?
  3. What is the level of customer satisfaction in Sheraton hotel, Edinburgh?
  4. What are the initiatives taken by Sheraton hotel to achieve customer satisfaction?

There are number of academic researches have been done in regard with customer satisfaction towards hotel industry. The authors have provided their view regarding customer service and customer satisfaction. The points below represent the findings and investigations of various authors regrading level of customer satisfaction and related topics.

1.Concept of customer satisfaction

The term customer satisfaction is related to marketing in which marketers determine how the product and services meet the requirement and expectation of customers. According to Huddleston, P. and et. al. (2009) the organizations have to be customer oriented. Marketers have to be focused towards customer needs and wants soi that they can be provided with the best quality products. Higher level of customer satisfaction is an indication of future profits. Gustafsson (2009) has found that customer expectations influence their satisfaction level. As per the words of () Customer Satisfaction can be said as a relationship between the customer, product or service and service provider. These three elements decide the level of satisfaction of an individual. As per Robinot and Giannelloni (2010) Customer satisfaction represents a degree at which consumer perceives the efficiency of service providers. In case the marketers meet the needs sand wants of customers then they become mare satisfied or vice versa. According to Gustafsson (2009) the markets require to aware with the customer demand and there expectation so that they can satisfy their needs and can achieve higher satisfaction level. Business entities measure the level of customers satisfaction just to assess the future profitability and competitive advantages. Gustafsson (2009) has revealed that marketers needs to monitor the satisfaction level of customers in order to achieve the long term success. Measuring customer satisfaction level of customers provides opportunities to assess pre and post purchase behaviour.

2.Determinates of customer satisfaction in hotel industry

As per the words of Robinot and Giannelloni (2010) customers satisfaction is the factor of making money for business entity without having satisfied customers, marketers can not make profits. There are number of factors that affect the satisfaction level of customers. Zhao And Roy Dholakia (2009) have found that the expectations of customers from hotel industry have been increased that leads to intense competition within the industry. The markets are trying to satisfy the needs of customer from different prospective so that they can be attracted towards company offerings. Nazi (2010) has defined the service quality as the major factor affecting customer satisfaction in hotel industry. It has been seen that the organizations working in hotel industry are trying to provide better quality services to the customers.

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According to Sheng and Liu (2010) prices, of product and services is the important factor that impacts customers satisfaction of business entity. Guo, Xiao,and Tang (2009) have revealed that in case the company provide better services at competitive prices then customer will be attracted towards the services. The entities need to provide the service and product as per the economic budget of customers. Employees in the service industry also play an important role in achieving customer satisfaction. Hume and Sullivan Mort (2010) have said that within hotel industry services provided by business entity affects the exceptions of customers. The employees need be experienced so that they can achieve the satisfaction level of customers by providing them better services. Differentiation in services also an influence factors that affect the customers of hotel industry. Hume and Sullivan Mort (2010) relieved that the customer in the industry can be made more satisfied while offering them unique services. Guo , Xiao and Tang (2009) have said that the organizations have to identify the needs and wants of customers so that they can be provided with products and services as per their requirements. It will lead to a satisfied customer and will help in attracting large number of customers. In addition to that ,Sheng and Liu (2010) have identified that the location and ambience of the hotel also affects the customer behaviour so and their satisfaction level. Cleanness, comfortable accommodation and parking space are the factors influence consumer in a hotel. In case the organization will provide value for money to its customers, they will become more satisfied.

3.Relationship between customer satisfaction and organizational growth

As per the words of Guo, Xiao and Tang (2009) the growth of an organization depends upon the satisfaction level of customers. A satisfied customer can become a loyal customer for the organization. Vavra (2002) has revealed that the corporate entity can earn huge profits in long run. The organization can increase the customer base and can retain them in business for long term. Cochran (2003) has said that customer loyalty can also be increased by satisfying the customers. Making customers satisfied the business entity can capture huge market share. According to Gustafsson (2009) the satisfaction level of customers is directly related to the profitability of organization. At the time of providing better services to that customers the business entity can grab their attention. Munteanu and et. al (2010) have relieved that in case a customer is satisfied with the services of organization he /she will repeat purchase behaviour. Customer satisfaction and quality services will also influence brand awareness. As per Vavra (2002) service quality help is in creating corporate image of the business entity. Szwarc (2005) has identified that the organization can increase its brand loyalty by providing better service to the customers. The foremost objective of any corporate entity is to provide effective services to the customers to make them satisfied. As per the words of Oliver (2010) customer satisfaction has a positive relationship with business goals. Customers satisfaction also helps in creating mouth publicity for business and its products and services. Munteanu and et. al (2010) have said that a satisfied customers do mouth publicity for the products of company and they also influence other to purchase the products of business entity. In this way the customer satisfaction positively relates to the organizational growth. In case the customer is satisfied with the services provided by organization, they will trend to retain in the business which will increase the organizational efficiency.

The organization have taken various initiatives to increase the satisfaction level of customers. Hayes (2008) has said that increased level of customer satisfaction helps organization in achieving competitive advantages. The hotel is focused towards providing better service to the customers (About Sheraton Hotel, Edinburgh, 2015). In addition to that the employees of business entity are highly skilled and experienced in providing effective services to the customers. To make a customer satisfied the hotel is focused towards crating home felling. It is using the latest technology to swiftly access selected information and entertainment to meet their needs (Satisfaction at Sheraton Hotel, Edinburgh, 2015). The organization is providing quality of internet service within the room and our side the rooms. In this manner company is committed to provide satisfaction to its customers.


In this section, investigator describes the blue print of the study which defines the purpose behind conducting the research effectively. Research design can be further classified into different parts including Descriptive, Correlational, Semi-experimental, Experimental, Review and Meta-analytic(Kumar, 2010). As per the present case concerns, descriptive design will be beneficial because it emphasizes on specific company. This technique will help investigator to present information without making modification to the environment prevailing. By using this, issues faced by enterprise can be defined properly. By applying this method, researcher would be able to better understanding of current strategies adopted by firm as well as identifying and overcome issues faced by hotel earlier. By using descriptive study, investigator can easily interact with group of customers and know their perceptions towards services offer by company to them. Through applying, descriptive research design, researcher will able to identify the level of customer satisfaction in Sheraton hotel, Edinburgh.


RM section of report determines the manner in which entire research work is done to attain aims and objectives of study at stipulated time(Laurel, 2003).

Research approach: As per the present case concerned, inductive approach would be beneficial because it produces similar outcome when is applied to overall hotel. It moves from top to bottom level. By using this approach, Sheraton hotel will able to analyse the factors affecting customer satisfaction in hotel industry properly. Inductive approach will assist the company to understand opinion of customers towards services and products provide by hotel to its customers.

Research philosophy: Interpretivism philosophy will be helpful for the company because it is most suitable technique in terms of finding novel solutions for the issues faced by hotel and emphasizes on qualitative data as well (Beiske, 2007). Outcome generates basis of investigator perceptions and personal judgments so that sometime biasness is occurred. However, this kind of problem can be overcome through active participation of researcher and their alertness.

Research type: In the current scenario, both qualitative and quantitative approaches would be used. Qualitative type is used to investigate the relationship between customer satisfaction and organizational growth(Creswell, 2013.). In addition, quantitative data that will be collected from customers to identify their satisfaction level in Sheraton hotel, Edinburgh. After collecting the data from customers, data will be arranged in proper format to better interpret result. Quantitative data will be used in the research is based on customers perceptions and behavior regarding to service and products of hotel.

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Data collection method: In order to arrive at required outcomes, investigator can collect data from primary sources that may be customers of hotel. For supporting the research work, primary as well as secondary data collection techniques will apply. With help of survey and questionnaire method, researcher can gather information from customers to analyze the factors affecting customer satisfaction in hotel industry. While on the other hand, secondary data can be accumulated through use of different authentic sources including books, journals and online published articles effectively(Beiske, 2007)

Sample size: To carry out the research, data will be collected from 30 customers who used service of hotel wit help of questionnaire method. Judgment or purposive sampling technique will be applied in present case concerned because by applying this method, researcher would be able to collect valid and reliable information from clients and on that basis researcher would be able to recommend the ways to increase level of customer satisfaction at Sheraton hotel, Edinburgh.

Data Analysis: In order to generate valuable insights and findings, investigator can use different types of data analysis techniques such as correlation, regression and thematic analysis(Creswell, 2013). The present case is based on the quantitative nature in which primary data will collect from customers to know their views and opinions regarding to different services offer by hotel such as rooms, parking, discounts and organized business or marriage event etc. By applying thematic analysis, investigator would be able to classify issues faced by hotel and their satisfaction level towards products of firm. On the basis of the respondents’ behaviour and outcome, themes will prepare to asses the relationship between customer satisfaction and organizational growth.


Ethical considerations should be kept in mind while conducting research effectively. Identity of customers should be kept secure and never disclose to third party. Researcher conducts data from respondents without any biasness to better understanding of the impact of hotel services on customer satisfaction level(Laurel, 2003). Honesty and integrity of researcher will require for carrying out the research without any biasness. Ethical standards are maintained in the whole study and secondary data was collected from secondary sources properly. Data analysis, data interpretation and other aspects of research are conducted effectively because that may affect the whole research. Investigator carefully and critically examined the complete work such as data collection and research design effectively to avoid careless errors. Openness of data and other forms of intellectual property such as patents, data and results of other authors using without permission and copyright can influence performance of study. At the end, investigator should try to avoid ant types of biasness in research to attain research objectives properly.


Conducting the research, researcher should care of quality issues arises during data collection process. Qualitative data should collect valid sources and reliable sources to serve the purpose for study into consideration. As per the present case scenario, investigator was collected secondary data from valid sources by satisfying certain quality standards. While during use of qualitative method, all research processes are used properly from conceptualization of a research question step to produce output of the study at the end. By following validity and reliability in whole research process, researcher makes research more manageable(Creswell, 2013). While on the other side, data collected from customers kept safe so that respondents would be able to participate in further research activity and contribute in growth of firm through providing suggestion on time about services and products offer by Sheraton Hotel, Edinburgh to them. For quantitative data, researcher used thematic method which is standardized method in drawing conclusions that are applicable to present scenario.


Researcher can face different types of limitations while the course of the study. There can be constraints related to resources such as funds, manpower, contents, etc. It can be difficult to maintain quality throughout the research. Absence of quality can hamper the outcomes of the research. Further researcher can face barriers in accessing the appropriate respondents for the purpose of primary information. It is possible that respondents can leave the process in the middle. Further researcher may lose his direction and move towards wrong direction. Research is a very long and time consuming process because lot of time is needed in reading books, articles, journals etc (Munteanu and et. al., 2010). There can be issues with the validity and reliability of the data and it can put negative impact on the entire research. Hence, it is essential that all data is to be gathered from valid and authentic sources. It is suggested that future researchers can adopt appropriate time management strategies in order to complete the work. They can perform scheduling and prioritising for activities. It is also recommended that future researchers must choose right technique of data evaluation so that results can be presented in more effective manner.


Every research study is carried out with some purpose and objectives. Apart from fulfilling the research objectives, researcher also gains some personal and professional skills. This research study has been an enlightening journey and rich experience for me. All this could have been possible with the help and support of my mentors, friends and family members. While this course, I gained lot of skills, learning and knowledge which can contribute towards my personal and professional development. All these skills are very essential in building my career. Through this research work, I improved my analytical skills. I was required to investigate the customer satisfaction level at Sheraton Hotel, Edinburgh. While this investigation I came to know about the behaviour, perception, expectations, needs etc of the customers within a hotel. I examined their behaviour and this helped me in making solid outcomes. I also learned about two significant models of customer services that is Customer Value Model and Service Gap Model.

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Further I improved my communication skills because these were needed for this project. This study requires collection of the primary data from customers of Sheraton Hotel at Edinburgh. For that purpose, I displayed good communication skills in front of the customers. These skills will really help me in building a successful career further. I also improved my decisions making skills as I have to take lot of crucial decision during the study. Filtering of research data and information was a difficult task, hence I selected the data to be taken from valid and authentic sources.

Research is a very stringent process and involves lot of complications. I also gained time management skills as I learned how to prioritize the tasks and duties. Then it becomes easy for me to execute all research activities in effective manner.


  • Beiske, B, 2007, Research Methods: Uses and Limitations of questionnaires,interviewsand case studies. GRIN Verlag
  • Cochran, C., 2003. Customer Satisfaction: Tools, Techniques, and Formulas for Success. Paton Professional.
  • Creswell, J., 2013. Research Design. SAGE Publications.
  • Hayes, B., 2008. Measuring Customer Satisfaction and Loyalty: Survey Design, Use, and Statistical Analysis Methods. ASQ Quality Press.
  • Kumar, R., 2010. Research Methodology: A Step-by-Step Guide for Beginners. SAGE.
  • Laurel, B., 2003. Design Research: Methods and Perspectives. MIT Press.
  • Oliver, R., 2010. Satisfaction: A Behavioral Perspective on the Consumer. M.E. Sharpe.
  • Szwarc, P., 2005. Researching Customer Satisfaction & Loyalty: How to Find Out what People Really Think. Kogan Page Publishers.
  • Vavra, T., 2002. Customer Satisfaction Measurement Simplified: A Step-by-step Guide for ISO 9001:2000 Certification. ASQ Quality Press.

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