Forum for People Performance Management and Measurement - Hotel Study Forum for People Performance Management and Measur

Forum for People Performance Management and Measurement
RESEARCH SUMMARY
Testing the Internal Marketing Model: An Empirical Analysis of the Relationship between
Employee Attitudes, Customer Attitudes and Customer Spending
Don Schultz, Heidi Schultz, Frank Mulhern and Robert Passikoff
Abstract
While it is widely believed that employee attitudes and
engagement directly influence customer experiences and
customer spending behavior, there is little empirical evidence that
has explicitly demonstrated this. This study combines results from
an extensive survey of employees and customers at a hotel chain
with the actual spending patterns of customers. Results show a
direct, measurable relationship between the employee and
customer perceptions of the hotel brand and customer spending
behavior.
The main findings of the study are:
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The key drivers of brand value to customers can be
identified and linked to customer behavior. The dimensions
that drive brand value to hotel customers are fast and
efficient check-in, employee efforts to satisfy customers,
hotel options and amenities, and precision in service.
These drivers of brand value are consistent across a set of
six hotel locations studies.
Perceptions of employees with respect to brand value are
similar to those of customers, but lack the uniformity
across hotel locations. This represents an inconsistency in
employee attitudes and, consequently, customer
experiences.
Customer perceptions of the brand and the dimensions
that influence it have a direct and positive impact on how
much money customers spend per hotel visit. A 10%
increase in one key driver, the extent to which employees
try to satisfy customers, translates into a 22% increase in
customer spending.