Analyzing the relationship between Customer Satisfaction and Customer Loyalty Case: Ritz-Carlton Guangzhou

LAPLAND UNIVERSITY OF APPLIED SCIENCES-School of Business and Culture Degree programme: Business Management Writer: Wan Tong Thesis title: Analyzing the relationship between Customer Satisfaction and Customer Loyalty Case: Ritz-Carlton Guangzhou Pages (of which appendices): 51 (8) Date: 10 February, 2015 Thesis instructor: Marita Wahlroos This research aims to analyze the relationship between customer satisfaction and customer loyalty. The first objective of this research is to study the concepts of customers’ satisfaction and loyalty and discover the factors influencing them. Secondly, the objective is to analyze the relationship between the concepts of customer’ satisfaction and loyalty. The third objective is to discover how customers’ satisfaction and loyalty can be increased. A set of recommendations for the case company are generated for its future development. To achieve the research objectives, I studied literature, research on the concepts of customer satisfaction and customer loyalty. Relevant theories are drawn from in order to understand the concepts of customer satisfaction and customer loyalty. Both qualitative and quantitative research methods are utilized as a single case study for the case company. In addition to literature and previous research, this work relies on my internship experience in the case company. Two in-depth interviews were conducted with the manager on duty and head of concierge department of the case company. In addition, a questionnaire survey was conducted with the customers of the case company to find out the factors which influence their satisfaction and loyalty. Furthermore, a SWOT analysis of the case company was conducted to recommend a strategy for its future development. The results suggest that improving the case company’s facilities and its employees’ satisfaction and loyalty is necessary. The research results also indicate that high levels of satisfaction can build customer loyalty. The case company is provided with a set of recommendations for its future development.