The MBA (Hotel Management) students must look at the profitability factors to shine--Final part

The MBA (Hotel Management) students must look at the profitability factors to shine--Final part

Continued from Part--1

In spite of the significant development of such programs, an important area that needs to be discussed is to find out how these programs are successful in developing consumer loyalty. It is also a point of discussion to determine that do such programs are really important for developing value for consumers and business.

It is very subjective to find out the success of such consumer reward programs. These programs depend on the pre-set objectives and success of these programs is determined by the level of attainment of these objectives. Also, the situations and preferences of consumers also change with the time and they get aware with the promotions, loyalty programs and advertisements of the company.

Customers prefer to take part in those programs in which they trust to get the fair association and eventually their choice to take part in these loyalty programs would vary as per their views of fairness (Sneath and Lacey, 2006, pg 462). Hammond, Dowling and Uncles (2004, pg 100) argue that the sales revenue will increase significantly by altering the consumer’s buying behavior through a fair outstanding program.

HIS is undoubtedly one among the top hospitality retailer of UK and it have been commented by Hunt and Humby (2004, pg 3) that IHG might well have acquired this expected level with no Rewards Club – however this cannot be completed so as cheaply or as quickly as it has been completed without the data of consumers as well as insight, provided by Rewards Club.

All the main decisions taken by the team of management in last few years have been guided by the information and risk of taking any new initiatives has also been reduced. It is believed by many scholars and critics that phenomenon of consumer reward programs need to be bribe.

Worthington and Parker (2000, pg 496) have given their comment that loyalty of consumer cannot be sold. Deals and organization cannot help in bringing the loyalty. After this argument, it has been declared by Egan (2001, pg 382) stated that loyalty is short-lived and could not be brought.

Reichheld (1996 stated in Tapp, pg 170), started the matter that coupons and vouchers are ignored by loyal consumers as well as such consumers are not more sensitive for price for individual product in comparison to a new consumer.

There are many companies that are running several ‘loyalty scheme’ that provide reduces the prices of any product by using the point system as a return of consumer loyalty. However, in those companies where consumers are associated with them because of the Rewards programs don’t truly have loyal consumers.

Would you like to know about Hotel Management Entrance Exams, Read the below:
Find the Details about NCHMCTJEE
Hotel Management Courses and their Exams

Continued from Part--1

In spite of the significant development of such programs, an important area that needs to be discussed is to find out how these programs are successful in developing consumer loyalty. It is also a point of discussion to determine that do such programs are really important for developing value for consumers and business.

It is very subjective to find out the success of such consumer reward programs. These programs depend on the pre-set objectives and success of these programs is determined by the level of attainment of these objectives. Also, the situations and preferences of consumers also change with the time and they get aware with the promotions, loyalty programs and advertisements of the company.

Customers prefer to take part in those programs in which they trust to get the fair association and eventually their choice to take part in these loyalty programs would vary as per their views of fairness (Sneath and Lacey, 2006, pg 462). Hammond, Dowling and Uncles (2004, pg 100) argue that the sales revenue will increase significantly by altering the consumer’s buying behavior through a fair outstanding program.

HIS is undoubtedly one among the top hospitality retailer of UK and it have been commented by Hunt and Humby (2004, pg 3) that IHG might well have acquired this expected level with no Rewards Club – however this cannot be completed so as cheaply or as quickly as it has been completed without the data of consumers as well as insight, provided by Rewards Club.

All the main decisions taken by the team of management in last few years have been guided by the information and risk of taking any new initiatives has also been reduced. It is believed by many scholars and critics that phenomenon of consumer reward programs need to be bribe.

Worthington and Parker (2000, pg 496) have given their comment that loyalty of consumer cannot be sold. Deals and organization cannot help in bringing the loyalty. After this argument, it has been declared by Egan (2001, pg 382) stated that loyalty is short-lived and could not be brought.

Reichheld (1996 stated in Tapp, pg 170), started the matter that coupons and vouchers are ignored by loyal consumers as well as such consumers are not more sensitive for price for individual product in comparison to a new consumer.

There are many companies that are running several ‘loyalty scheme’ that provide reduces the prices of any product by using the point system as a return of consumer loyalty. However, in those companies where consumers are associated with them because of the Rewards programs don’t truly have loyal consumers. It has been found by Reichheld (1996) that higher prices are paid by the old consumers in comparison to the old ones as basically the existing and old consumers are satisfied with the product value provided by the company.

Reichheld (2002, stated in Randall and Finnie), also states that business cost can be reduced and profit can be increased by such loyalty programs as the existing consumers prefer to purchase more products form the company with the time. They also refer other consumers to the company and also they give their best to continue their business with the company instead of switching to any other company with which they are neither comfortable nor familiar. It has been consistently maintained by Reichheld (1996) that loyalty cannot be purchased by companies.

Concluded

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You must also read:
Top Ranking Hotel Management Colleges in India
Career in Hotel Management

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Comments

0 # Aarav Older than three months
Hii, What are the career opportunities of Bachelor of Education course after my degree, also suggest some b.ed colleges in Bundi?
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0 # Pallavi Older than three months
The B. Ed course is an excellent choice for making career in teaching profession, it is very respective profession for candidates, find some good colleges for it-Sarvodaya T.t. College, Matunda, Bundi ; Dr Keshavram Baliram Hedagewar Teacher Training College ; Indira Gandhi T T College Devpura, Bundi ; Lakshya Deep Shiksha Prashikshan Sansthan
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0 # Vaibhav Older than three months
hii, I am from Sindhanur, plz tell me what are the graduation options I can do in "medical field"
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0 # Shruti Older than three months
Hello, good to see that you are from Sindhanur, in medical field, you can do MBBS, BDS, BHMS, BAMS, etc.
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0 # Priyansh Older than three months
Hii, What are the career opportunities of Bachelor of Education course after my degree, also suggest some b.ed colleges in Alwar?
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0 # Shruti Older than three months
The B. Ed course is an excellent choice for making career in teaching profession, it is very respective profession for candidates, find some good colleges for it-Siddhi Vinayak Coll Of Sc & Higher Education ; Deep International College of Education - Alwar ; Bal Bharti Teachers Training College - Alwar ; Shri Jain Teachers Training College
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0 # Aarush Older than three months
Hello, I am from Jamshedpur plz tell me admission to B. Ed to IGNOU is made through entrance test?
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0 # Shruti Older than three months
hii, good to know that you are from Jamshedpur, Yes, Admission to B. Ed in IGNOU is made through B. Ed Entrance Test, which is generally conducted during the month of October/September each year.
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0 # Aarush Older than three months
Is there any age restriction applicable to apply to the B. Ed course, plz suggest good b.ed colleges in Unnao as well
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0 # Mukesh Older than three months
Most NCTE recognized institutions from across the country require that applicants must have completed at least 18 years of age in the year of admission, some b.ed colleges in Unnao are DSN College ; STJM Mahavidyalaya ; Department of Education Banaras Hindu University ; Sardar Patel Bans Gopal Sanatan Dharam D College
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0 # Aarush Older than three months
Hii, I want to be a good doctor, plz suggest me the best MBBS colleges in Rewa?
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0 # Pallavi Older than three months
Its good that you are interested in medical field, get good MBBS colleges in Rewa are Shyam Shah Medical College ; Awadhesh Pratap Singh University
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0 # Aayush Older than three months
Hello, I want to know about the entrance exam for MBA, also suggest some MBA colleges in Udupi
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0 # Jagan Older than three months
There are various exams for MBA i.e. CAT, MAT, XAT, SNAP, etc, you can give CAT for IIMs, find MBA colleges in Udupi here-Sikkim Manipal University - Directorate of Distance Education ; Moodalakatte Institute Of Technology ; Sikkim Manipal University - Manipal ; Manipal Institute of Management
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0 # Tushar Older than three months
Hii, I am from Fatehabad, plz tell me What is the difference between NEET and AIPMT for MBBS Admission?
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0 # Mukesh Older than three months
Both NEET and AIPMT are conducted for admission to MBBS and BDS Courses, NEET is national level test, while AIPMT is conducted by CBSE for admission to these courses in government medical and dental colleges of all places including Fatehabad
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