Online Interactions and Customer Satisfaction

CHAPTER 1: INTRODUCTION

1.1 Background

Across the travel and tourism industry, most of the customer searches and feedbacks take place through the online platform. The understanding if possible business consequences due to these online platforms are areas under research. Perhaps, the advent of worth of mouth has increasingly grown to be more relevant in the era of internet and the internet of Things. Statistics has it that internet users have increased in number from 3.39 billion to 3.58 billion as from the year 2005 to 2017 (Statista, 2017). The drastic increase indicates possible chances of more people moving online and therefore, seeks services and products through online platforms. Melo et al. (2017) studied the extrinsic cues attached to the service industry claiming that services are essentially dominated by intangible attributes. The emergence of the information asymmetries has realigned towards the pre-purchase details and the post-purchase information that drive customers towards clarity. The signalling theory, however, indicates that customers are likely to make use of cues in assessing quality. Tourists are likely to gather same signals from other people’s behaviours as one way of understanding the decision framework.

Therefore, introduction of online platforms in the travel and tourism industry has been shaped is a basic need that channels positive behaviours to customers. It is worth noting that industries can tap into online customer reviews as resourceful platform in determining the attitude, ownership, behaviours and usability of a service or good by the clients. Most of the reviews largely provide the customers’ opinions, experiences, and emotions. Haghkhah et al. (2011) also adopted the same idea while studying the Malaysian travel and tourism industry. While service quality appears to be an abstract concept, it amounts to one critical area that delves into the question of customer satisfaction as well as expectations. Service quality in tourism attracts research in the area that covers the importance of online services.

Research problem and justification

Several firms from a wide range of industry try to meet customers’ expectations under a fierce competitive environment. In the other respect, increasing internet usage leads companies to seek for new tools and adopt them to ensure customer satisfaction. Today, many customers do their shopping via internet. They also need to communicate with companies to find an answer for their questions about services or goods. Managing customer relationship is the one of the important indicator for service quality. Live chat is a new trend that provides instantaneous response to its online customers. It passes over traditional interaction tools such as telephones or mail. Live chat seems effective communication tools for online marketing.

While researches seem to focus on service quality and the scope of customer satisfaction and expectations, little or no studies have been directed towards understanding perceptions of customers based on specific online platforms for travel and travel industry like live chat .

1.2 Purpose of the study

This study aims to find customers’ perception of service quality for live chat service in travel and tourism websites. The purpose of this study also revolves round fulfilment of the requirements of a master’s degree at Anglia Ruskin University. This means that details gathered in the research process and the prompted analysis serves as compliance to the requirements of the course as stipulated by the university.

1.3 Aims and objectives

The main aim of this research is to examine the customer’s perception regarding service quality on the bases of using live chat. Research questions to support this aim include.

What is the influence of the live chat platforms on customer’s perception towards service quality?

What is level of interaction and engagement among customers on live chats?

How do online interactions influence individual’s satisfaction based on the services offered?

How does the correlation between live engagement and satisfaction levels relate to services?

1.4 Scope of the study

The research is tailored towards perceptions held by clients on service quality across the travel and tourism on the basis of live chat. In the travel and tourism industry, customer expectations and competitiveness are as a result of globalization, emergence of new technologies and deregulations believed to have forced key players to focus on quality. In an organizational context, the research will stick to its main aim and the supporting objectives as far as customer satisfaction and service quality are put into consideration.

1.5 Research Methodology

The research will improvise inductive approach in analysing considerable scenarios related to service quality and customer satisfaction in the travel and tourism industry. The research will also benefit from document analysis and thematic coding in interpreting the collected information.

CHAPTER 2: LITERATURE REVIEW

This chapter provides an overview of what has been covered elsewhere but related to the research topic. In most cases, it covers the objectives of the study while connecting them to different case studies. The following topics can be explored to gain insights of the study.

2.1 The influence of the live chat platforms on customer’s perception towards service quality

Customers’ expectations are increasing and getting harder to meet, customers have more choice in the high-tech era: more goods to buy, more info to influence purchasing decisions, and more channels over which to seek customer service. Leggett (2018) found that customers don’t wait for response more time. The study demonstrated 66% of US online adults think that valuing their time is the most significant thing a firm can do to supply them with pleasant online customer experience. The data has already showed that self-service interactions have overtaken all other channels. The study has showed 13.6% increase for web self-service in 2018, compared with just 1.6% rise for the phone channel.

Many clients become reluctant to finalize a purchase if their questions are not answered. Live chat gives company to response customers’ questions instantaneously which increases customers’ satisfaction. Live chat keeps customers confident. Because it allows companies to solve customers’ problems instantly on the spot rather than making customers wait to receive an answer (Elmorshidy, 2013). According to Zeithaml,et,al. (2002) Information availability is one of the most important indicator of service quality through websites. Online customers gain a benefit in getting information through the websites.

Different studies have delved into identifying customers’ perception towards service quality with regards to live chats. Melo et al. (2017) indicates that online reviews as well as online comments are the critical indicators to perceived service quality. The authors further explored on both the negative and positive scenarios of service experience within the tourism setting. Melo et al. (2017) further indicates that online reviews can be substantiated into signals that can enhance the customers’ trust and attitudes as well as the industry’s market awareness. Jun et al. (2004) further explored on the retail industry and the impact online platforms have on firms while developing survival strategies. Jun et al. (2004) picked on a case study that attracted the US firms, and how they have been performing as a result of the online platforms.

2.2 Interaction and engagement among customers on live chats in the service industry

Kietzmann et al. (2011) adopts different studies in response to engagement and interactions witnessed on live chats. The authors alluded to the fact that consumers make use of the internet to extend content, read it as well as watch it in relation to products and services. However, the greatest concern narrows down to how customers make use of such platforms, especially the ones attached to the service industry. Content sharing has been witnessed on such platforms like wikis, social networking sites and blogs as well. Notably, Kietzmann et al. (2011) took note of the remarkable performance by social media as a result of the functional building blocks. The blocks include relationships, reputation, conversations, identity, presence, groups as well as sharing. On the other hand, Chandler and Lusch (2015) delved into realization of the service experience, engagement as well as value proposition. In this case, Chandler and Lusch (2015) referred to the social and service systems that bind the perceptions of customers towards service quality.

2.3 The impact of online interactions on individual’s satisfaction based on services offered

Hsu et al. (2012) posits the fact that travel agencies play a significant role across the tourism industry. However, the development of e-commerce and internet is introducing more people to websites and other online platforms. This has introduced the idea of impacting change in the travel and tourism industry in terms of transactions and interactions. Hsu et al. (2012) observed the customers’ playfulness into the personal account while analysing the perceptions of customers. On the basis of the flow theory, the authors observed the enjoyable experience customers had when interacting through the online platforms. Flow, in this case, is described as the psychological experience as a result of work, hobbies, sports, events and even artistic performance. While observing the individual’s satisfaction as a result of online interactions, Hsu et al. (2012) focused in enjoyment, curiosity and concentration of the customers towards an event and comments written by individuals. On the other hand, Jiang and Rosenbloom (2005) delved into service quality and perceptions behind online marketing. Different areas were observed in the course of the research including the price perception; customer satisfaction and the service attribute level. Jiang and Rosenbloom (2005) further pointed at the need of orienting strategies towards customer retention while observing superior customer values amid online interactions.

2.4 Correlations between satisfaction levels and live engagement linked to services

Fernandes and Esteves (2016) admit that in a competitive environment, the firm’s performance purely depends on its ability to sustain, retain as well as nurture the customer base. The scope of customer engagement largely fosters the study of psychological preconditions. In determining the integration of propensity to engage and customer engagement, the interactivity scale remains to be the key determinant parameter as far as contextual conditions are put in place. Fernandes and Esteves (2016) further asserted that real-time interactions substantiate the satisfaction levels while establishing a beneficial encounter. Some of the outreach programs have been recommended to impact live engagement. It is also of note that traditional marketing improvised the word of mouth as one way of boosting trust among customers. In addition, Nguyen et al. (2018) focused on determinants of customer satisfaction as well as loyalty across the Vietnamese life-insurance setting. While focusing on the synergies of live chat engagement and satisfaction levels, sustainable strategies still play a critical role in determining value and the image of social, as well as environmental performance. Three important areas have been noted by Nguyen et al. (2018) in relation to correlations between live engagement and satisfaction levels. These include service quality, perceived value, and customer satisfaction.

CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY

This section presents a collection of methods that help in conducting the research process. various areas need to be pointed as follows

3.1 Research Approach

This takes note of the approach to be used in the study. In this case, an inductive approach, also known as inductive reasoning, can best suit the research process. The approach first paves way for observations as well as theories, which are proposed towards the research process. Notably, the latter incorporates a pattern that runs all the way from observation to development of different explanations. After the pattern, the approach invokes the research to develop a theory. The approach also attracts interpretivism, which is more applicable in research.

3.2 Research Method

This section encompasses the convenient method to be used and advantages attached to it.

Given that this is a social research, application of the qualitative method is more preferable. The method fosters collection of data through conversational and open-ended communication. The method paves way for subsequent probing and in-depth review of the response from the participants. The choice of this method is based on the fact that qualitative research brings in the understanding of reasons, motivations, and opinions bonded to the research questions. The research uncovers possible trends aligned to customer satisfaction and experience as noted on live chats in the travel and tourism industry. In addition, qualitative method paves way for realization of deeper meaning while depending on opinions noted in the questionnaires. Lastly, qualitative research looks deeper into the behaviours, feelings and attitudes of the respondents in response to the research topic, and the research questions.

3.3 Research Design

Describes procedures required in covering the problem at hand. Different types can be adopted including the case study design, the longitudinal design, historical design and cross-sectional design among others.

A research on the consumer expectations and satisfaction essentially adopts the exploratory design. The design adopts predictions while gaining insights as well as familiarity into the investigation. The design, therefore, calls for establishing a possible understanding of correlation and relationship between two or more phenomena. The insights can bring out further details regarding the research topic, concerns and settings. However, the design can still lead to assumptions and generation of new ideas.

3.4 Data Collection

The research process will purely depend on open and close-ended questionnaire in collecting data from the field. The questionnaire will focus on the opinions from the people regarding the research topic. The method fosters application of primary data, which is dubbed as original or fresh data from the primary sources.

REFERENCES

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Fernandes, T. and Esteves, F., 2016. Customer engagement and loyalty: A comparative study between service contexts. Services Marketing Quarterly, 37(2), pp.125-139.

Haghkhah, A., Nosratpour, M., Ebrahimpour, A. and Hamid, A.A., 2011, March. The impact of service quality on tourism industry. In 2nd International Conference on Business and Economic Research Proceeding.

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