Chapter 3
Methodology and Procedures
This chapter presents the various procedures and strategies in identifying the satisfaction of customer in regards to the hotel accommodations, branding and tourism in Taiwan. Actually, the discussion regarding the relationship of branding to hotel’s performance as perceived by the customers was illustrated in this chapter. Moreover, this chapter also specifies the research design that was followed, the method of research to be used, respondents of the study, data collection, instruments to be used, validation and administration of the instrument, conducting the semi-structured interview, data representative and reliability, description of the used in the study, locating the needed data to be used, statistical treatment of data, and analyzing the gathered data
3.1 Product Positioning
Ramada (2002) argued that competitive product positioning holds the greatest challenge to any marketing efforts whether a firm is competing against aggressive start-ups or in traditional ways.
Similar to branding, positioning operates at a high level, and requires simple, clear ideas that resonate with the intended audience. Properly positioning the company against competitors is the act of clearly defining and differentiating the brand name in the market (Ramada, 2002).
Positioning products or services was defined the hotel in the mind of customers. Most research on product positioning supports the idea of differentiation. Positioning, according to Ries and Trout (2000) has changed the way people advertise. This need arose because it is the first concept to deal with the problems of communicating in an over communicated society. With this approach, a company creates a ‘position’ in the prospect’s mind, one that reflects the company’s own strengths and weaknesses as well as those of its competitors (Ries and Trout, 2000). Ries and Trout (2000) posited that in order to create position as an industry leader, a company must position a follower so that it can occupy a niche not claimed by the leader and to avoid letting a second product ride on the coattails of an established one.
Attig (1999) contended that a company name, reputation, logo, packaging, core values, best practices, financial performance, and vision, are totally meaningless to the company’s target customers until those customers make a connection between these elements and something they value. This connection otherwise known as brand or product positioning defines the value of the company. On the other hand, product standardization (i.e., minimum differentiation) occurs only under very limiting assumptions (Rhee, et al., 1992). Yet, similar products are often observed in the marketplace. Rhee, et al (1992) posited that standardization is equilibrium when consumers exhibit sufficient heterogeneity along the unobservable attributes under both positioning with exogenously given prices and price competition.
3.2 Product Differentiation
Today’s consumers are bewildered with more choices than ever yet, often the difference between competing products is virtually nonexistent. In cases such as this, particularly in the hotel industry, creative advertising is not enough- it demands brand loyalty. Brand loyalty according to Czerniawski and Maloney (1999) is built through skillful brand positioning and an effective advertising. However, Czerniawski and Maloney (1999) posited that the problem most company’s have is that managers have been left in the dark with two undesirable options: the delegation of task to an outside marketing and advertising agency or to follow the monotonous path of their predecessors. This strategy depresses the brand name that a firm or a hotel wishes to embark upon.
Spatial models have long been used to analyze product differentiation. Hotelling (1929) indicated that his model could be applied to study product variety. Chamberlin (1933) recognized that location constituted a form of product differentiation and was concerned directly with the implications that product differentiation holds for competitive processes. But it was only with Lancaster’s (1966, 1979) pioneering theory of consumption, which proposed that consumers’ preferences do not relate to final products but rather to the characteristics embodied in those products, that earlier connections became clear. According to Lancaster, consumers do not purchase “an automobile” per se; rather, they purchase some combination of body style, speed, efficiency, reliability, and so on. Since Lancaster’s work appeared, applications of spatial competition models to the theoretical analysis of product location have proliferated (Graitson, 1982; Greenhut, Norman, and Hung, 1987), although empirical studies are rare (Swann, 1987).
Studies of product positioning in marketing which build on Lancaster’s model of consumer choice have focused on the competitive effects of brand location in product space (Hauser and Simmie, 1981). Marketers use spatial representations of product positions and have developed techniques (e.g., multidimensional scaling) to represent markets as “perceptual spaces,” find “ideal points” for new product entries, and evaluate competition (Hauser and Simmie, 1981). In contrast to the unidimensional construction of product space generally used by spatial economists, product-space maps generated by marketers are typically multidimensional.
In differentiation strategy, a firm seeks to be unique. It selects one or two attributes that many buyers in an industry perceive as important (Porter, 1985). Differentiation is the first step in building brands (Agres, 1995). Differentiation can take many forms: from the clearcut physical or functional (, through the less distinguishable, the barely noticeable, the emotional, to the “distinguishing but irrelevant” (blue packaging, or stripes in dentifrice) (Barnard, Ehremberg and Scriven, 1997). The objective, of course, is to gain competitive advantage by building sustained customer loyalty with products or services meeting quite precisely the demands of closely-defined markets. (Marshall, 1995). This is particularly true in the hotel industry where customer loyalty dictates the persistence of a particular hotel.
3.3 Creating the Brand
American Marketing Association defines brand as name, term, symbol, design or any combination of them to identify the products or services of a seller to consumers. It also differentiates the products or services from competitors. (Kotler, 1997, p. 443) Brand also gives intangible benefit besides the usage provided by the products, making it difficult for competitors to imitate. It is precisely this role that brand plays an important role in marketing competition. Moreover, many businesses regard brand as their most precious asset; the competitive advantage that led to future income. (Aaker & Joachimsthaler, 2000) Thus, many organizations try to create brand equity for their own brand along with efforts in making management efficient to maintain brand equity.
Many academics and marketers also stated that brand equity as value related to brand or symbols to increase the value of products of services offered (Aaker & Joachimsthaler, 2000). Knapp (2000) for instance was defined brand equity as the overall customer perception of the brand–including the relationship between products’ quality, financial status, customer loyalty, customer satisfaction and the most value—towards the brand. This perception also was related to the feelings of consumers, customers, employees and shareholders toward the product brand.
The results of the application of an integrated econometric time-series model for advertising effectiveness gives rise to three possible advertising effects: brand loyalty, current effects (both simple and compound) and carryover effects (Bendixen 1993). The inherent nature of these effects is related to the degree of involvement and the affective or cognitive aspects of the purchase decision.
Gillespie and Morrison (2001) presented a marketing perspective that may have considerable relevance within niche markets that are served by hotels positioned at the top end of the market, with distinctive lifestyle products. It considers the extent to which such products can be effectively positioned through semiotic marketing strategies. Gillespie and Morrison (2001) proposed that this represents a reorientation in focus of positioning strategies from product and transaction, to cultural criteria and sensory differentiation. Justification is presented on the basis that while core hotel products and services and their functionality are easily duplicated, semiotics, aesthetics and their lifestyle associations are more difficult to mimic. The application of this reorientation is illustrated through the examples provided as an extraordinary collection of highly individual hotels. These products have been deliberately defined to align to conceptions of self-image, selling a set of symbolically defined features that are prototypical of a certain lifestyle (Gillespie and Morrison 2001).
3.4 Consumer Behavior and Product Differentiation: The Case of the Hotel Industry
Studies of consumer behavior emphasize customer satisfaction as the core of the post-purchase period. Because customer satisfaction presumably leads to repeat purchases and favorable word-of-mouth publicity, the concept is essential to marketers (Gundersen, Heide, and Olsson, 1996). In saturated markets customer satisfaction is thought to be one of the most valuable assets of a firm (Perkins, 1991). Customer satisfaction serves as an exit barrier, thereby helping the firm to retain its customers.
In recent years, numerous studies have focused the customer satisfaction and service quality in to the hospitality industry. Several contributions have been made in relation to various mechanisms for improving and using customer satisfaction. Barsky and Labagh (1992) proposed a customer-satisfaction matrix as a tool for evaluating guest information and attitudes, and for identifying related strengths and weaknesses. Kirwin (1992) emphasized guest satisfaction as a mean for increased sales and profits. Reid and Sandler (1992) examined the use of technology to improve service quality in the hotel industry.
In the area of food and beverage management, Dube et al. (1994) describes how customer satisfaction data can be used for positioning strategies that will help the business carve a niche, whereas Morgan (1993) investigated consumers’ value of benefits offered in midscale restaurant chains. On the methodologic side, Barsky and Huxley (1992) argued that customer surveys in the hospitality industry often are of dubious value. Nonresponse biases are of particular concern, as they frequently threaten the representativeness of the surveys.
The review of recent studies leaves the impression that there are two main obstacles managers in the hospitality industry face in their quality improvement efforts. First, although there is sample literature on total quality and quality processes, few empiric studies give recommendations that can help managers identify the key areas of importance to the customer. In other words, managing quality is difficult without knowing what aspects does the guest consider to be important when evaluating the hotel experience. Second, although several measuring instruments for customer satisfaction have been proposed, these are frequently too general or too ad hoc to ensure relevant, reliable and valid measurements for tracking the guests’ quality perceptions.
3.5 Methodology
In accordance to the previous discussions, this part of the research also discussed the research methods available for the study and what is applicable for it to use. Likewise, the chapter also presented how the research was implemented and how to come up with pertinent findings.
Basically, Creswell (1994) stated that methodologies are outlooks on research; they set out an image for what research is and how it should be carried out. Basically, axioms and methods are connected to each other. Methods are tools or techniques of gathering of data, techniques of analysis, and techniques of writing. Since it is a tool, then a scrupulous method can often be used by many different methodologies (both qualitative and quantitative).
Actually, the descriptive research method that uses observation and surveys was employed in this research. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations. In addition, this descriptive type of research utilized observations in the study. To illustrate the descriptive type of research, Creswell (1994) guided the researcher when he stated: Descriptive method of research is to gather information about the present existing condition. The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena. The researcher opted to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.
For this study, primary research and secondary research was used. Primary research was conducted using questionnaire surveys that were sent to intended respondents in Taiwan who were or are mainly affected by Tourism and branding. Here, the questionnaires were used to collect quantitative data and the interviews were also used to provide qualitative insights into the data collected.
As presented, this study utilized the descriptive research method. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. This descriptive type of research utilized observations in the study. To illustrate the descriptive type of research, Creswell (1994) guided the researcher when he stated that the descriptive method of research proposes to gather information about the present existing condition.
The type of research conducted in this thesis is through exploratory and quantitative research design. The qualitative and quantitative research study is the best choice in this case in order to answer the specific research questions posed and also to suitably expand more on the three objectives stated, that are associated to the rationale of the study. The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena. The researcher opted to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.
The research described in this document is based fundamentally on quantitative and qualitative research methods. This permits a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.
This study basically investigates the manner in which hotel companies operating in the Taiwan are using branding within their marketing strategies, therefore why and how they are doing so. Specifically, the research evaluated the importance of evaluating the target market and product positioning in order to gain a competitive advantage in the hotel industry in terms of three factors: price, range of facilities and quality of hotel services. Consequently, the level of awareness of travelers and customers was evaluated.
The primary source of data came from a questionnaire and interviews conducted by the researcher in selected Hotels in Taiwan. The respondents of the study came from the rank and file staff and the management team of the hotels and clients of the hotels. The secondary sources of data came from published articles from Business Management, Marketing and Hospitality Management journals, books and related studies.
For this research design, the researcher gathered data, collate published studies from different local and foreign universities and articles from social science journals; and make a content analysis of the collected documentary and verbal material. Afterwards, the researcher summarized all the information, make a conclusion based on the null hypotheses posited and provide insightful recommendations on the dealing with differentiation and branding in the Taiwan Hotel industry.
3.6 Sampling Design
The sample plan in this thesis is influenced by several practicalities: time, resources, and the need to minimize inconvenience to the respondent. In this case a non-probability sample was used. Actually, the information required to carry out the research regarding the decisions to be made was attained through the purposive sampling. This would also be due to the fact that the information gathered from a convenient population sample, which was accessible and close to hand, the guests do not also have a predetermined or known chance of selection. The target group of this research would be about 5-6 branded hotels, situated in different parts of Taiwan. They would be chosen due to the how diverse their product ranges are. Judgment sampling was also used, in the circumstances where the choices of subjects are in the best position to provide essential information.
3.7 Description of the Data Used in the Study
The study also utilized secondary data. Secondary data include raw data and published summaries, as well as both quantitative and qualitative data. Basically, the documentary secondary data used in this study are the ones often used in research projects that also use primary data collection data methods, although such data can also be used on their own or be combined with other secondary data. This type includes: written documents (notices, correspondence, minutes of meetings, reports to shareholders, diaries, transcripts of speeches, administrative and public records, as well as articles from books, journals, magazines and newspapers) that can be important raw data sources on their own right, a storage medium for compiled data, provide qualitative data, and can be used, as well, to generate statistical measures; and, non-written documents (like tape and video recordings, pictures, drawings, films and television programmes, digital versatile disks and CD-ROMs) that can be analyzed both quantitatively and qualitatively, as well be used to help triangulate findings based on other data such as written documents and primary data collected through observations, interviews and questionnaires (Saunders et al, 2003, pp. 190-191).
Meanwhile, the survey-based secondary data that were also used in this paper are those data collected by questionnaires that have already been analyzed for their original purpose; usually, such data refer to organizations, people or households and are made available as compiled data tables or as a computer-readable matrix of raw data. These data are collected through ad-hoc surveys (usually one-off surveys and are far more specific in their subject matter, and these include data from questionnaires administered by independent researchers as well as surveys done by governments and organizations) (Saunders et al, 2003; Bryman, 1989; Robson, 2002; Hakim, 1982).
With this particular study, the researcher utilized documentary secondary data (in the form of articles from books, journals, magazines, and newspapers) that are generally about the customer satisfaction, tourism, hotel accommodations and branding as well as relevant literatures and survey-based data in order to meet the objectives of this study.
3.8 Theoretical Framework
The research consists of three-path relations that include (1) Independent Variables (ex. Service quality, Customer satisfaction), (2) Intervening Variables (ex. Brand image), and (3) Dependent Variables, (ex. Customer Loyalty). Meanwhile, the research aims to intersect the width of this theory and focuses on four main reasons of influencing the Services Quality, Customer Loyalty, Customer Satisfaction, and Brand Image. The author also intends to refer to the Crosby, Evans, and Cowles (1990) findings in service quality relationship in this study.
Independent Variable - Intervening variable - Dependent Variable
3.9 Respondents of the Study
The general population for this study was composed of selected personnel in six (6) branded hotels, situated in different parts of Taiwan numbering to 60 respondents. Ten (10) staffs and management personnel from each hotel shall be surveyed. The researcher also provides interviews for managers whose function is directly related to the organisation and implementation of the marketing strategy employed by the hotel. For the clients of the hotel, a total of sixty (60) respondents was also be employed, ten (10) in every hotel. 3.10 Data collection method
There were 2 types of data collection methods involved and used in this research; primary and secondary data collection methods. Primary data, as the name implies, is the data collected for the sole purpose of the research topic, by the researcher. Moreover, collecting the primary data in this research would be to have face to face interviews, telephone calls and also through self-designed questionnaires. In the face to face interviews, the researcher intends to take notes when there is a response by the interviewee.
Also used during the interview process, was a voice recorder in order to remember and facilitated the note taking and also improved the flow and communication of the interview process. Regular hotel visits and phone calls was made to the hotels that the researcher wish to do the research on. In the hotels the researcher chooses to target, the questionnaires were distributed to the business travelers by the hotel staff, and those completed was returned to the reception. This method is chosen in order to have minimum disruption to both staff and guests (the questionnaires could be completed at a time most convenient to the guest during his or her stay). A pilot study was first conducted prior to the main study in order to test the questionnaire design.
3.11 Data Analysis
The type of testing used in this case was parametric testing. All the data gathered from the interview and questionnaires were tabulated and coded so that parametric testing would be executed. Parametric tests are more powerful than nonparametric tests given the sample size, and assume the variable(s) being measured is/are normally distributed among the population. Criteria other than sample size must, of course, be met before parametric tests can be used.
There were also be low responses from business travelers, which could be due to (a) their lack of time during their stay in the hotel, (b) their lack of interest in the questionnaire, which also might be a supplementary to the comment card owned by the hotel, (c) lack of commitment on the hotel’s part, concerning the collection of the questionnaires and the administration.
Based on the use of the thesis design and method, which utilizes the qualitative and the descriptive methods, this study focuses mostly on the report of the researcher and the interaction of the researcher and the respondents who are the subject of the study. Because the information gathered for the research focuses on the observation of the behaviors of the respondents in accordance to the performance of the hotel and their view with regards to branding, one of the best ways that this can be achieved is through analyzing the responses form the given survey questionnaire.
As such, the processing of the data and their analysis will focus mostly on the different methods that the researcher will be able to interpret the answers of the respondents to the questions.
Actually, when all the needed and pertinent data are gathered, the researcher will employ on them the documentary analysis technique, which is more commonly known as content analysis to come up with the findings needed for the fulfilment of the objectives of this research undertaking.
Apparently, the researcher also performed the content analysis. Like other research techniques, content analysis must be objective. There should be no bias involved in the selection and classification of content to be analyzed, in its sampling design and in its interpretation of results. To be objective, the researcher make sure that as much as possible, all items and aspects in the content to be analyzed were placed under appropriate categories. And in this, the perception of the researcher was not influenced by factors other than the true outcomes or the true frequency counts of the variables the inquired.
In line with this, the data were analyzed based on the descriptive statistics performed in data processing. What’s more, the content analysis of documentary materials in this study was quantitative because the interpretations and conclusions from the findings depend almost entirely on the output in processing the frequency counts of the perceptions of the respondents. So, the occurrences of the perception of the respondents were tallied one by one, upon the frequency of the occurrences depends the analysis and interpretation. To further enhance the perception of the respondents, they were also given time for an interview that is subjected to their respective insight to the topics. The interview results were then used to justify their answers.
As has been mentioned previously, content analysis of the documentary materials of this study was systematic. Hence, it follows scientific methods of research. The steps follow:
1. Recognizing the problem- The problem in this study was to distinguish the differences on Brand Image, Service Quality, Customer Loyalty, and Customer Satisfaction between International Tourist Hotels and Domestic Hotels in Taiwan.
2. Forming hypothesis.
H1: The quality of hotel industry service is likely to influence brand image in both tourist hotels and domestic hotels.
H2: The quality of hotel industry service is likely to influence customer’s perception.
H3: The quality of hotel industry service is likely to influence customer’s loyalty.
H4: The brand image is likely to influence customer’s satisfaction.
H5: The brand image is likely to influence customer’s loyalty.
H6: The customer’s satisfaction is likely to influence customer’s loyalty.
3. Doing the library research. One purpose of the library research is to look for some guides in conducting the study. If other studies of the same nature have already been conducted before, the procedures used were used as guides of the researcher in conducting this research.
4. Designing the study. This is the determining the different procedures to be followed which were discussed above. In this, the treatment for the data was decided upon.
5. Developing the instrument. This is for the collection of the data. A tally sheet was prepared which contains all the items or aspects that were studied.
6. Collecting the data. To reiterate, content analysis is quantitative and so tallies have made for the perception of the respondents. And to have an accurate counts and computation, the data were processed through SPSS.
7. Analyzing the data. In this latter part, the analysis of the data was performed based on the computed percentage, and weighted mean revealed in the data collated.
8. Making conclusions. Generally, the conclusions are answers to the questions raised at the beginning of the investigation. Besides, they are based upon the findings of the study.
9. Making recommendations. Recommendations were made to solve the problems discovered in the study. These were also made for further research on the same study finished.
3.12 Instruments to be Used
To determine the effects of branding and differentiation in the Taiwan Hotel industry, the researcher prepared a questionnaire and a set of guide questions for the interview that was asked to the intended respondents. The respondents graded each statement in the survey-questionnaire using a Likert scale with a seven-response scale wherein respondents were given five response choices. The equivalent weights for the answers will be:
Range Interpretation
6.50 – 7.00 Strongly Agree
5.50 – 6.49 Generally Agree
4.50 – 5.49 Somewhat Agree
3.50 – 4.49 Neutral
2.50 – 3.49 Somewhat Disagree
1.50 – 2.49 Generally Disagree
0.00 – 1.49 Strongly Disagree
3.13 Validation of the Instrument: Evaluation of Questionnaires
According to Bush et al, 1997, the use of secondary data is advantageous for a researcher since one can already evaluate the suitability of a data as it is already in existence, thus, much time can be saved. Needless to say, an evaluation of potential secondary data is very important before one incorporates it in his/her study.
In this study, the researcher adopted the three-stage process devised by Saunders et al (2003, p. 205):
The first stage is assessing the overall suitability of data to research questions and objectives. During this stage, the researcher paid particular attention to measurement validity (measuring / estimating whether the secondary data will result to a valid answer to the research questions and objectives) and coverage (this includes ensuring whether or not the data is wanted and can be included, as well as making sure that sufficient data remain for analyses to be undertaken once unwanted data have been excluded).
The second stage is evaluating precisely the suitability of data for analyses needed to answer and meet the research questions and objectives. In this stage, the researcher made sure of the validity and reliability of the secondary data by assessing how it was previously gathered, who are its sources, and the likes. Also, the researcher was cautious not to commit measurement bias (which can occur due to deliberate distortion of data or changes in the way data are collected) had been paid close attention. Finally, the researcher judged whether to use data based on an assessment of costs and benefits in comparison with alternative sources.
Actually, the researcher initially submitted a sample of the set of survey questionnaires and after approval; the survey conducted to five respondents. After the questions were answered, the researcher was asked the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument. The researcher was again examined the content of the interview questions to find out the reliability of the instrument. The researchers excluded irrelevant questions and changed words that were deemed difficult by the respondents, too much simpler terms.
3.14 Administration of the Instrument
The researcher excluded the five respondents who were initially used for the validation of the instrument. The researcher tally, score and tabulate all the responses in the provided interview questions. Moreover, the interview used a structured interview. It consists of a list of specific questions and the interviewer does not deviate from the list or inject any extra remarks into the interview process. The interviewer may encourage the interviewee to clarify vague statements or to further elaborate on brief comments. Otherwise, the interviewer attempts to be objective and tries not to influence the interviewer’s statements. The interviewer does not share his/her own beliefs and opinions. The structured interview is mostly a “question and answer” session.
3.15 Statistical Treatment of the Data
When the entire survey questionnaire has been collected, the researcher uses statistics to analyse all the data.
The statistical formulae to be used in the survey questionnaire were the following:
1. Percentage – to determine the magnitude of the responses to the questionnaire.
n
% =
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