Sleepless Nights at Holiday Inn

For the following case titled “Sleepless Nights at Holiday Inn” (published in Business Week and adapted here! a" Identify the proble#  b" $e%elop a theoretical fra#ework  c" $e%elop at least four hypotheses

Sleepless Nights At Holiday Inn

&ust a few years ago' o# o# )li%er' the *hief +,ecuti%e of Holiday Hospitality *orp"' was struggling to differentiate a#ong the %ariety of facilities offered to clients under the Holiday flagship-the Holiday Inn Select designed for business tra%elers' the Holiday Inn +,press used by penny pinchers' and the *rowne .la/a Hotels' the lu,urious hotels #eant for the big spenders" )li%er felt that re%enues could be 0uadrupled if only clients could differentiate a#ong these" 1een on de%eloping a %iable strategy for Holiday Hospitality' which suffered fro# brand confusion' o# o# )li%er conducted a custo#er sur%ey of those who had used each type of facility' and found the following" he consu#ers didn2t ha%e a clue as to the differences a#ong the three different types" 3any co#plained that the buildings were old and not properly #aintained' and the 0uality ratings of ser%ice and other factors were also poor" Further#ore' when word spread that one of the conte#plated strategies of )li%er was a na#e change to differentiate the three facilities' irate franchises balked" heir #i,ed #essages did not help consu#ers to understand the differences' either" )li%er thought that he first needed to understand how the different classifications would be i#portant to the se%eral classes of clients' and then he could #arket the heck out of the# and greatly enhance the re%enues" Si#ultaneously' he recogni/ed that unless the franchise owners fully cooperated with hi# in all his plans' #ere face lifting and i#pro%e#ent of custo#er ser%ice would not bring added re%enues"

SLEEPLESS NIGHTS AT HOLIDAY INN

a. Identify the problem How “clients could diferentiate”

and

“cooperative

ranchise

owners” afect the diferentiation? b. Develop a onept!al model

Diferentiation (+

I"

Gain more revenue (+

D"

Improvement Customer Service (+

(+

I"

Client could diferentiate

Cooperative ranchise owners

#"

#"

! "evenue is the total amount o mone# received $# the compan# or %oods sold or services provided durin% a certain time period& (www&investorwords&com& ' Diferentation is the process o oferin%

rom

particular tar%et

others

to

mar)et&

ma)e *his

distin%uishin% a product or it

more

involves

attractive

to

diferentiatin%

a it

rom competitor+s products as well as a ,rm-s own product oferin%s (www&en&wi)ipedia&or%& .roduct diferentiation creates customer preerences which allow companies to ma)e a$ove normal pro,ts& /ccordin% to the a$ove e0planation there will $e a positive relationship $etween diferentiation and %ainin% revenue&

1 Customer service is

all interactions $etween a customer and a

product provider at the time o sale and thereater& Customer service adds value to a product and $uilds endurin% relationship& (www& 2usinessdictionar#&com& 2ased on the theor# o customer service customers will %et not onl# the products $ut also additional value that ma)e them $e more

satis,ed in products

and companies& Since the

companies %ive a %ood service to customers the possi$ilit# that customers will $e satis ied and lo#al to the compan# is hi%her& Conse3uentl# satisaction and lo#alt# o customers will lead the compan# %ainin% more revenue& 4 Client could diferentiate& *he a$ilit# o clients to see diferences $etween products oferin% $# one compan# and the product o  one compan# compare to other companies& I customers could diferentiate products in $oth wa#s the# will $e a$le to choose the $est product that suit them rom all choices the# have& Customers+ satisaction and lo#alt# will $e a %ood conse3uence rom it which help companies %ain more income& *hat is the reason wh# the a$ilit# o customers to diferentiate will ma)e diferentiation has positive efect to %ain more revenue& 5 Cooperative ranchise owners& 6ver# strate%# in the compan# alwa#s need support rom its sta)eholders& In this case *om 7liver needs a support rom ranchise owners to ma)e his strate%# sucessull# and achieve its %oals (%ain more revenue&  *he support rom all o sta)eholders and ranchise owners will support the positive relationship $etween diferentiation and %ain more revenue& $ Develop at lea%t fo!r hypothe%e% H!& Diferentiation positivel# related with %ain more revenue& H'& Improvement customer service positivel# related with %ain more revenue& H1& Client could diferentiate will moderate the relationship $etween diferentiation and %ain more revenue& H4& Cooperative ranchise owners will moderate the relationship $etween diferentiation and %ain more revenue&