Management of consumers behavior of hospitality services

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Management of consumers behavior of hospitality services

Kulyk Mariia Kulyk Mariia, PhD (Economics), Associate Professor, Associate Professor at the Department of Hotel and Restaurant Business Kyiv National University of Trade and Economics, Kompanets Kateryna Kompanets Kateryna, PhD (Economics), Associate Professor, Associate Professor at the Department of Hotel and Restaurant Business Kyiv National University of Trade and Economics, Avdan Oksana Avdan Oksana, PhD (Economics), Associate Professor at the Department of Hotel and Restaurant Business Kyiv National University of Trade and Economics

Abstract

The article considers the consequences of the Covid-19 pandemic on the activities of hospitality enterprises. The main determinants that changed consumer behavior under quarantine restrictions were identified. It was determined that scientific works did not study methods of researching consumer loyalty in crisis conditions. This gave reason to establish the purpose and objectives of the article and to prove the need to apply the proposed universal method of identifying consumer satisfaction level with hospitality services.

Keywords: hospitality enterprises, consumer, consumer satisfaction level, consumer behavior, the Covid-19 pandemic.

Introduction

Background. The world is in an economic crisis caused by the COVID-19 pandemic. All sectors of the economy were affected. One of the most affected by quarantine restrictions is tourist, resort, recreational and health facilities (hotels, camps, sanatoriums, boarding houses, health complexes), which have almost completely ceased their activities. According to the latest research of the National Institute for Strategic Studies [1], in 2020 the volume of international tourism revenues is set at 58-78 % compared to 2019. According to the experts, the recovery of demand to the level of 2019 will take at least two years. This situation increases competition level between hospitality establishments and intensifies personal warfare for each client today. This leads to a constant search for alternative ideas that will meet the consumers' needs. The sense of security that has flooded the world and shaped everyone's lifestyle has led to the transformation of a new consumer type. In fact, there is now a new digital stratification of society.

And so it becomes difficult to assess and manage consumer behavior. It is almost impossible to assess their level of satisfaction and form a base of loyal consumers. This problem solving requires appropriate research and scientific substantiation of theoretical and methodological aspects of consumer behavior management in the COVID-19 pandemic. That's why it is necessary to form a new method of modern consumers' behavior assessment, which will help hospitality companies to build their crisis strategy to overcome the pandemic crisis.

Materials and methods

The information base of the study is the publications of domestic scientists on the problems of managing consumer behavior in the COVID-19 pandemic. Methods of systematization, analysis and synthesis, graphical, tabular were used.

Results

In the situation of economic competition of hospitality enterprises for markets, the importance of high communication activity and effective interaction with consumers will increase. The thesis that the functioning of the enterprise depends on the preventive recognition and understanding of the needs of existing and potential consumers is important in this context [2]. Now it is the establishment of close relations with consumers and the formation of commitment to hospitality services that is an important determinant for the enterprises survival in a pandemic crisis.

The COVID-19 pandemic has severely disrupted global consumption, forcing people not to break old habits and adopt new ones. Companies that seek to emerge from the crisis in stronger positions need to develop a systematic understanding of changing habits. For many enterprises, it requires a new process of identifying and evaluating change before it becomes apparent to all [11].

Therefore, the company needs to monitor constantly information about customer satisfaction, identifying ways to obtain this information, in time to develop measurement methods and analyze the information obtained in order to meet the demands and expectations of consumers [3].

In Ukraine, the official point of view on the term "customer satisfaction" is defined by the National Standard of Ukraine DSTU ISO 10004: 2013 "Customer Satisfaction. Guidelines for Monitoring and Evaluation" (ISO 10004: 2012, IDT), according to which customer satisfaction is "perception by the customer of the level of satisfaction of his expectations" [12, p. 2].

To assess the level of consumer satisfaction with services, the main problem is the choice of method of collecting information about the consumer. Quantitative (objective) and qualitative (subjective) methods are used to collect information (figure). Existing methods are aimed at identifying the general characteristics of the success of the enterprise and assess the satisfaction of consumers of food products in their purchases, and are based on changes in the financial performance of the enterprise. It becomes necessary to create a universal method of assessing the level of satisfaction of service consumers who are waiting for a certain level of service.

Methods of consumer satisfaction measuring

Source: developed by the authors.

The level of consumer satisfaction of the enterprise is influenced by the evaluation criteria: the reliability of the hospitality enterprise, the range of services, their cost, the ability to use various loyalty programs; speed and quality of service; competence and professionalism of the staff.

All methods that are presented in Figure, it is advisable to use in hospitality enterprises to identify the target loyal consumer. Such methods are directly appropriate and they are possible only in direct contact with the client and allow you to form a direct relationship with him. But in modern conditions, the possibility of direct communication in the field of hospitality is limited. Therefore, an innovative method of assessing the level of consumer satisfaction (LCS) is needed, which will cover as much as possible the channels of interaction between the consumer and the hospitality enterprise. The basis of LCS is the communication of customers on the main site of the enterprise. Thus, the main criteria for determining the target loyal customers will be quantitative:

• number of site visits (n);

• number of orders (nz);

• cost of the order (bi);

• number of positive feedback (p).

• number of refusals to receive services (d);

Site monitoring for these indicators should be carried out at monthly intervals. Thus, with the help of these indicators it is possible to identify consumers by categories: permanent, potential and loyal, neutral. Companies can provide information only about customers who have made orders and registered at least once working with the database of the hospitality website, it is impossible to identify consumers who simply visit the site and do not leave messages or feedback. An important issue in conducting this type of marketing research is the choice of the scale type for quantifying consumer satisfaction. Methods of CSI, NPS and ACSI use a scale from 1 to 10; it is advisable to measure LCS on the same scale. Such division can be made in three stages to form a management mechanism in accordance with the stages of consumer behavior of hospitality services, conventionally: behavior before the consumption of services (accommodation), during consumption, after consumption. According to these stages, it is proposed to identify 3 roles of consumers of hospitality services:

• potential customers;

• guests;

• customers.

A potential customer is a consumer who has not used the services of a particular company, or has tried only once and has not clearly defined its attitude to the service provided [6]. Some authors [4; 7] consider that the customer and the guest are differrent roles of the consumer.

A guest is a consumer who is living now in a hotel or other accommodation, or is in a restaurant. A customer is a consumer who has used the services of one specific hospitality company more than once. Based on these definitions and conditional transformations into consumer behavior, it is necessary to work with the client through Internet channels.

Therefore, it is proposed to check the site on a monthly basis, so the critical number of the maximum contact is 30, which in turn will be equal to 10 points. We have identified four types of consumers and another category that we cannot directly influence - neutral consumers. Therefore, we can make a matrix of consumer identification (table).

Table

Consumer identification matrix

Source: developed by the authors.

To form an economic-mathematical model, we introduce the notation:

Based on inequality, the total increase in satisfaction with the implementation of the optimal set of planned measures should be at least the target increase, the cost of implementing measures should not exceed the planned budget, and first of all measures will be selected for implementtation, respondents are most consistent. Creating an interactive method of detecting the level of customer loyalty (LCL) introduced additional parameters for quantifying customer satisfaction then; the formula of the mathematical model of the general level of LCL will look like this:

This is a universal mathematical model for assessing the level of consumer satisfaction, which is inherent in today's realities of hospitality.

hotel pandemic hospitality service

Conclusion

That is, the COVID-19 pandemic has caused global changes between the hospitality-consumer relationships. Against the background of the development of modern digital and Internet technologies, the effectiveness of traditional marketing tools is declining. This transformation has become an obstacle to identifying major behavioral changes in the consumer. It is communication with which has become a secure form of communication and, as a consequence, the formation and maintenance of competitive advantages based on the technological advantages of communication channels. Therefore, it becomes difficult to assess the level of customer satisfaction, and this is an important determinant for determining the areas of close relationships with different types of consumers. That is, the proposed interactive method of identifying the level of customer loyalty will help hospitality companies in post-conduct conditions to strengthen their competitive position and get out of crisis.

References

1. National Institute for Strategic Studies. Regarding the development of tourism in Ukraine in the conditions of increased epidemic risks.niss.gov.ua. Retrieved from https://niss.gov.ua/sites/default/files/2020-06/turyzm-v-ukraini.pdf20 [in English].

2. Mazaraki, A. A., Boyko, M. G., & Ohrimenko, A. G. (2018). Forsajt rozvytku nacional'noi'turystychnoi'systemy [Foresight development of the national tourism system] Visn. Kyiv. nac. trade and economy un-tu - Herald Kyiv National University of Trade and Economics, 3, 5-22 [in Ukrainian].

3. Kalieva, O. M., Taranukha, I. A., & Sheptukhin, M. V. (2016). Modelirovanie povedeniia potrebitelei kak instrument effektivnoho upravleniia marketinhom v klientoorientirovannoi orhanizatsii [Modeling of consumer behavior as a tool for effective marketing management in a customer-oriented organization]. Economics, Sociology and Law, 11, 27-33[in Ukrainian].

4. Lan'kov, A. N. (2015). Shcho take prestyzhne spozhyvannia v Pivnichnii Korei [What is prestigious consumption in North Korea]. Retrieved from http://carnegieendowment.org (accessed: 02.04.2021) [in Ukrainian].

5. Semenda, D. K., & Semenda, O. V. (2018). Doslidzhennia povedinky spozhyvachiv v suchasnykh rynkovykh umovakh [Study of consumer behavior in modern market conditions]. Young scientist, 1(53), 535-540. Retrieved from http://molodyvcheny.in.ua/ files/journal/2018/1/126.pdf (accessed: 02.03.2021) [in Ukrainian].

6. Senenko, I. A. (2015). Kontseptualnyi pidkhid do formuvannia mekhanizmu upravlinnia povedinkoiu spozhyvacha posluh hostynnosti [Conceptual approach to the formation of the mechanism of management of consumer behavior of hospitality services]. Effective economy, 10. Retrieved from http://www.economy.nayka.com.ua/ ?op=1&z=4414 (accessed: 12.04.2021)[in Ukrainian].

7. Yevtushevska, O. V. (2016). Osoblyvosti povedinky spozhyvachiv na rynku v suchasnykh umovakh [Features of consumer behavior in the market in modern conditions]. Economics. Investments: practice and experience, 20, 22-25[in Ukrainian].

8. Bovsh, L., Hopkalo, L., &Komarnytsky, I. (2020). Naukove obgruntuvannia vidpovidnosti hotelnoho biznesu v pandemichnykh umovakh [Scientific substantiation of compliance of hotel business in pandemic conditions]. Restaurant and hotel consulting. Innovations, 2, 166-181. DOI: 10.31866/2616-7468.3.2.2020.219691 [in Ukrainian].

9. George, G., Lahani, K. R., & Puranam, P. (2020). Shcho zminylosia? Vplyv pandemii Covid na poriadok dennyi doslidzhen upravlinnia tekhnolohiiamy ta innovatsiiamy [What has changed? The impact of the Covid pandemic on the technology and innovation management research agenda]. Journal of Management Research, 57 (8), 1754-1758 [in Ukrainian].

10. Heinonen, K. & Strandwick, T. (2020). Pereformatuvannia innovatsii v pos- luhakh: COVID-19 yak katalizator naviazanykh innovatsii u sferi posluh [Reformatting innovation in services: COVID-19 as a catalyst for imposed innovation in services]. Service Management Journal [in English].

11. Litvishko, L. O, & Gorbenko, Yu. A. (2020). Adaptatsiia biznesu do novykh realii pandemii COVID-19 [Adaptation of business to the new realities of the COVID-19 pandemic]. Proceedings of the All-Ukrainian scientific-practical conference "Management and administration in the context of combating hybrid threats to national security" In the framework of the Erasmus + project "Academic counteraction to hybrid threats" WARN 610133-EPP-1-2019 FI-EPPKA2- CBHE-JP, 65. Retrieved from https://drive.google.com/file/d/1k3PeCfr_ 7sJJogv8VydUQn4vwRAqT7xE/view 2 (accessed: 02.01.2021) [in Ukrainian].

12. DSTU ISO 10004: 2013 (2014). Customer Satisfaction. Guidelines for Monitoring and Evaluation (ISO 10004: 2012, IDT). Ministry of Economic Development of Ukraine Kyiv, 24, 117 [in Ukrainian].

Анотація

Управління поведінкою споживачів послуг гостинності

Кулик М., Компанець К., Авдан О.

Постановка проблеми. В умовах кризи, спричиненої пандемією COVID-19, найбільш постраждав сектор гостинності, що підвищує рівень конкурентної боротьби.

Пандемія змінила типових споживачів, і тому управління поведінкою споживачів стало досить складним. Це вимагає теоретичної підготовки та формулювання методів оцінки рівня задоволеності в сучасних пандемічних умовах.

Метою статті є формування інноваційного методу визначення рівня задоволеності споживачів підприємств гостинності та типів споживачів, які еволюціонували в контексті пандемії GOVID-19.

Матеріали та методи. Інформаційною базою дослідження є публікації вітчизняних вчених з проблем управління поведінкою споживачів у контексті пандемії COVID-19.

Використано методи систематизації, аналізу та синтезу, графічні, табличні та ін.

Результати дослідження. Визначено основні детермінанти, що змінили поведінку споживачів в умовах викликів карантинних обмежень. На підставі цього розроблено інноваційний метод оцінки рівня задоволеності споживачів.

Для реалізації методу запропоновано додаткові параметри кількісної оцінки лояльності гостя готелю та розроблено універсальну математичну модель загального рівня задоволеності споживачів.

Висновки. Оцінка рівня задоволеності клієнтів є важливим детермінантом для визначення напрямів комерційних взаємовідносин з різними типами споживачів.

Запропонований інтерактивний метод виявлення рівня лояльності клієнтів допоможе підприємствам гостинності в постковідних умовах посилити конкурентні позиції і вийти з кризи.

Ключові слова: підприємства гостинності, споживач, рівень задоволеності споживачів, поведінка споживачів, пандемія GOVID-19.

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