Introduction:

Definition: CUSTOMER SATISFACTION: Customer satisfaction is a general term that is used for describing customers perception of a companys product(s) and/or service(s). The degree of satisfaction provided by the goods or services of a company as measured by the number of repeat customers. CUSTOMER LOYALTY: The fact that people choose to use a particular shop or buy one particular product(s),

Background: In customer satisfaction area, there are lot of research has been conducted some of them are: International journal of Health Care Quality Assurance, this paper seeks to present an analysis of the literature examining objective information concerning the subject of customer service, as it applies to the current medical practice. Journal of Business and Industrial marketing, Proposes an effective customer satisfaction program which demonstrates that successful services companies have service packages. Some other research references in this area are; Bal dinger A. L., and Robinson J. (1996). Brand loyalty, the link between Attitude and behavior. Journal of Advertising Research, (Nov/Dec) 36, (6), 22-35 Badoglio, S. and D. Brinberg (1997), Affective images of tourist destinations, Journal of Travel Research, 35(4), 11-15. Belch, G.E. (1978).Belief System and the Differential Role of the SelfConcept In Advances in Consume Research, Vol .5 ed. Keith H.Hunt, Ann Arbor, Michigan Association for Consumer Research. Belch, G.E., and Landon, E.L., (1977) Discriminate Validity of a Product. Anchored Self-Concept Measure. Journal of Marketing Research, 14:252-56. Research Objectives: The purpose of this article is to measure customer satisfaction and loyalty by providing Quality Services and Foods comparatively on low cost to the customer of Hotel Industry. As many hotels and restaurants are losing their customers and there is vague reasoning of such menace appearing to the managers of the industry. This article would hopefully try to bring those variables that have chief impact on customer lose on the screen of the managers.

Literature Review:

In the past, tourism has been often considered as the natural outcome of

environmental and cultural resources of a specific territory. In this view, the role of hospitality enterprises cannot influence demand levels and is merely limited to the supply of services to tourists. Le Blanc & Nguyen (1996) suggest that marketing efforts should be directed to highlight the environmental characteristics of the location in order to attract new customers. The constant increase of demand of touristic services, and the request for higher standards by the guests, has enforced the competition among hospitality suppliers and highlighted how the attractively of the touristic destination is influenced by the standards of the services provided by the local hotels. In this scenario, providing high quality services and improving customer satisfaction are widely recognized as fundamental factors boosting the performances of companies in the hotel and tourism industry (Barsky & Labagh, 1992; Le Blanc, 1992,; Le Blanc et al., 1996; Stevens et al., 1995, Opermann, 1998). Hotels with good service quality will ultimately improve their profitability (Oh & Parks, 1997). In a competitive hospitality industry which offers homogeneous services, individual hoteliers must be able to satisfy costumers better than their counterparts (Choi& Chou, 2001). To obtain loyalty and to outweigh other competitors, hotel providers must be able to obtain high levels of customer satisfaction for the service supplied. There are several studies that analyze the needs and the desires of tourists. A research by Wuest et al. (1996) defined the perception of hotel attributes as the degree to which guests may find various services and facilities critical for their stay in a hotel. Hotel's attributes such as cleanliness, price, location, security, personal service, physical attractiveness, opportunities for relaxation, standard of services, appealing image, and reputation are recognized as decisive by travelers to assess the quality of the hotel (Atkinsons, 1988; Ananth et al., 1992; Barsky & Labagh, 1992; Cadotte & Turgeon, 1988; Knutson, 1988; McCleary et al., 1993; Rivers et al., 1991; Wilensky & Buttle, 1988)By carefully reading many journals/articles, observing and surveying, it is clear that satisfaction and loyalty of hotel and restaurants customers is mainly affected by quality services & foods along with related clean environment of the hotel and restaurant.

Variables: There are two main variables that are dependent i.e. Customer satisfaction Customer loyalty While independent variables that have major and direct influence on these two dependent variables are; Quality Services Quality Foods Environment

 Relationship: Customer satisfaction and loyalty has direct relation with quality services, foods and environment. There is an inverse relation between customer satisfaction and grooming of the hotel industry.

Dependent Variables

Independent Variables

Research Design:
Population: Since blue collar and middle level people are normally go to hotel and restaurant that are mainly situated in big cities of any country, therefore, our targeted population includes these people only all around the country preferably big cities. In this research we would primarily focus specially on blue collar people who prefer luxury hotels and restaurants and demand quality services. This population includes those people falling in age bracket of (25 and above). Sample: To conduct effective research in a given time span, we will take random sample of the population as: We will go and visit few but very famous and moderate level popular hotel and restaurant of big cities hotels and restaurants. The name of those few hotels and restaurants to which we intend to visit are; Marriott Hotel, Islamabad Pearl Continental, Rawalpindi MacDonald, Islamabad Five Star Hotel, Karachi Beach Luxury Hotel, Karachi Mehran Hotel, Karachi

 Hypothesis: The alternative hypothesis is that greater the service and foods quality and environment of the hotel, customers will be more satisfied and loyal to the hotel and restaurant. Hence more chances of the hotel industry to groom. In other words, the hotels & restaurants having highly satisfied customers will survive and groom more than those that have less satisfied and loyal customers. Hence,

HA: SH > USH

(SH=hotel that have customer with high satisfaction, USH=unsatisfied customer hotel) The hypothesis can also be shown as per relationship between them as, there is strong relation between service & food quality and hotel and/or restaurants environment and customer satisfaction and loyalty. Then,

HA: 0
Research Instrument: For actual and effective result of the research, we have chosen two instruments; one is questionnaire and second is short span interview of blue collar and middle class people. Questionnaire will mostly make fill by blue collar people, whereas interview will conduct for the middle class people. Questionnaire includes only goal oriented and easy understandable questions. Questions in the questionnaire meet principles of validity and consistency and helps generate customer perception about the services of the hotel wherein he wishes to accommodate.

Resources:
Readily available resources for conducting the research are; Easy access to hotels and restaurants Budget References Time span of 60 days

FEDERAL URDU UNIVERSITY OF ARTS, SCIENCE AND TECHNOLOGY, ISLAMABAD

RESEARCH PROPOSAL
On

Customer Satisfaction & Loyalty in Hotel Industry

Submitted to:
SIR KASHIF AMIN BUTT
Department of Business Administration FUUAST Islamabad

Submitted by:
MUAHMMAD KASHIF
MBA 5TH A Evening

Executive summary:
The research proposal is on customer satisfaction and loyalty in hotel and restaurant industry. The proposal includes definitions of satisfaction and loyalty. Detailed literature reviews have given that research has been conduct in this particular area.

Population & sampling: Population of the research includes all hotels and restaurants all over the country cities but for effective research in short time span sample of few big and famous hotels are taken. Hypothesis: Directional and alternative hypotheses are put in the proposal and are also expressed in terms of mathematical expression. Relationship is developed between them and is shown in diagrammatically in below page. As an instrument, questionnaire and at spot interviews are included in this research. The detail of use of both instruments is given under the head of Research Instrument.