PACKAGING AND SERVICE DELIVERY IN THE HOSPITALITY INDUSTRY (A CASE STUDY OF FOUR POINT BY SHERATON HOTEL, LAGOS)

CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND OF THE STUDY

Service delivery has become an issue of great interest and major challenge facing service providers. In the hospitality industry, it has received a lot of attention due to the fact that the section or industry is becoming increasingly competitive. However, quality service delivery is one of the most important and difficult tasks that service organization faces due to its unique characteristics such as intangibility, variability, inseparability, perishability and its labour intense nature. In most cases, service delivery is judged by customers and as such, the definition for service delivery is based on customers’ perception of how well a service meets or exceeds their expectations. Despite the difficulties in evaluating delivery, service delivery may be the only way customers can choose one service over another. Recent studies have shown that service delivery has changed dramatically due to globalisation, inflow of information and communications technology and growing demand by customers for quality goods and services. The most important factor to sustainable competitive advantage is to provide the best possible service delivery which will result in improved customer satisfaction, retention and profitability in the industry. A service provider which does not deliver to meet the demands of its customers and standard of the industry is likely to experience low patronage. It is therefore essential that packaging and service delivery assessment is a means through which customers existing expectations, perceptions and priorities can be determined in order to improve on service delivery. In the ever increasing global market competition of today, the need for effective product promotion is crucial, and the product packaging has come to play a more important role as a brand communication vehicle. Today, virtually all goods that are manufactured or processed need some packaging in some phase of their production or distribution. Packaging is an important integrative aspect of a product and often a critical factor in the success or failure of a given product as well as the hospitality industry. The packaging component of a product refers to the way in which it is offered for sale and on which information is communicated (Berkowitz et al, 2013). Packaging is extremely important at the point of sale and it plays a major role when products are purchased. It is the first thing seen before making purchase choices and it is widely recognized that over 50% of purchasing decisions are made at the shelf, or point of purchase. Customer satisfaction is the only way of success for business in the customer service industry. The aim of every successful business venture is to maintain a high level of customer satisfaction. Customer service representatives are often trained to know the basic elements of providing excellent customer service. They are taught to be patient, listen, tolerant and above all helpful. Firms, especially hotels often monitor their workers to make sure they consistently abide by and apply all the rules and customer service practices. Hotel is an organization that provides paid lodging and feeding on a short term basis. The provision of a basic accommodation in time past consisted of only rooms, with modern facilities including a bedroom suit, air conditioning or climate control. Additional common features found in hotel room are telephone, television, an alarm clock and internet connectivity. Food, drinks and Snacks are supplied in a mini bar and facilities for making hot drink available. Considering the enormous advantages associated with establishing a hotel. Customer requirements for quality products and service delivery in the hotel industry have become increasingly evident to professionals in the industry. In this context, positive relationship on the packaging and service delivery can create customer’s higher commitment and increase their return rate. In order to achieve customer satisfaction, quality packaging and service delivery is considered paramount in today’s hospitality business and also in the promotion of tourism activities within a destination. In other words, for customers to continue to patronize any hotel, they must be satisfied with the service offered or rendered.

1.2 STATEMENT OF THE PROBLEM

Despite the relatively harsh business environment that businesses are run in Nigeria, the hospitality industries in Nigeria have a sustained growth and proven track record of providing superior hospitality services to its customer. It is rather worrisome that there is no existing research report that has evaluated the relationship between packaging and service delivery at these hospitality industries and how it has influenced customers’ satisfaction. The need to do this constitutes the focus of this study and the findings of this research work would be useful to all stakeholders in the hospitality and tourism industry. This gave rise to the purpose of this research work which is to examine in its entirety hospitality industries packaging and service delivery which can influence the level of customer’s satisfaction.

1.3 AIMS OF THE STUDY

The major purpose of this study is to examine packaging and service delivery in the hospitality industry. Other general objectives of the study are:

1. To examine whether there is need for packaging for quality service delivery in the hospitality industry.
2. To examine the effectiveness and efficiency of packaging in the hospitality industry.
3. To examine the effect of packaging and service delivery on customer satisfaction in hospitality industry.
4. To examine role played by management practices in delivery of quality packaging and services in the hospitality industry.
5. To examine the relationship between packaging and service delivery in hospitality industry.
6. To examine the challenges faced by hospitality industry managers in improving on the service delivered to their customers.

1.4 RESEARCH QUESTIONS

1. Is there need for packaging for quality service delivery in the hospitality industry?
2. How is the effectiveness and efficiency of packaging in the hospitality industry?
3. What are the effects of packaging and service delivery on customer satisfaction in hospitality industry?
4. What are the roles played by management practices in delivery of quality packaging and services in the hospitality industry?
5. What is the relationship between packaging and service delivery in hospitality industry?
6. What are the challenges faced by hospitality industry managers in improving on the service delivered to their customers?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no significant effect of packaging and service delivery on customer satisfaction in hospitality industry

H1: There is a significant effect of packaging and service delivery on customer satisfaction in hospitality industry

Hypothesis 2

H0: There is no significant relationship between packaging and service delivery in hospitality industry.

H1: There is a significant relationship between packaging and service delivery in hospitality industry.

1.6 SIGNIFICANCE OF THE STUDY

As the study is about packaging and service delivery in the hospitality industry, its significance will have a profound effect on hospitality industries in the country. It is necessary to periodically review hospitality industry service delivery to customers, so as to ascertain the effectiveness and efficiency of service organizations in achieving their set objectives. Therefore, evaluation of facilities is also important in service delivery. The findings of this study may prove very useful to managers of hospitality industries in Nigeria. Also, the work may be very useful to service planners by helping to identify any area of service provision that need modification or improvement. Again, the work will enable managers to focus on the appropriate service quality attribute that satisfies customer’s expectations. Finally, this study is significant because it would contribute to the body of existing literature in the field of study and expand the frontier of research especially in Nigeria.

1.7    SCOPE OF THE STUDY 

The study is based on packaging and service delivery in the hospitality industry, a case study of four points by Sheraton hotel, Lagos

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

PACKAGING: Packaging is the technology of enclosing or protecting products for distributing, storage, sale and use. It is also the process of design, evaluation and production of packages. Packaging can also be described as a coordinated system of preparing goods for transport, warehousing, logistic, sale and end use. Packaging contains, protects, preserves, transports, informs and sells.

Service Quality: Service quality has been defined as the consumer’s or customers overall impression or evaluation of the efficiency of an organization or a firm’s services (Namukasa, 2013).