Service Profit Chain Valuation Argument about whether employee Essay

Service Profit Chain Valuation Argument about whether employee satisfaction can lead to Customer satisfaction in hence leads to customer loyalty - Essay Example Customer loyalty means that the resort will have repeat business from the same customers and, therefore, remain doing business (Kamakura et al. 2002, p.311). Furthermore, customer loyalty increases the repurchase levels which translate to profitability and a large consumer base. In the service industry, consumer satisfaction is the driving force behind marketing thought and practice (Chakrapani 1998, p.47). In practice, consumer satisfaction is the consumer’s comparison between their purchase and use with the rewards and costs of the service. Other than consumer satisfaction, employee satisfaction is also another factor that determines the profitability of resorts and spas. The employees provide the various services to the customers. Their service delivery is what determines the customer satisfaction and loyalty in the long run. For this reason, employees are the essential part in the service industry. Management in this industry has to manage employees in such a way that they are satisfied. This is the biggest challenge in the hospitality industry as it determines the overall success of the resort or spa. In addition, employee satisfaction increases guest satisfaction and ultimately guest loyalty. This essay analyzes the two concepts, consumer satisfaction, and employee satisfaction, using the service profit chain theory to fully understand their significance to the service industry. Advertising and marketing in this industry relies heavily on consumer behavior; it is the success scale of this industry. The challenge in this industry is trying to attract customers for longer visits and repeat business (Smith & Puczko 2009, p.13). In comparison to other hospitality segments, the resort and spa industry is the fastest growing segment in this industry. Their number has grown steadily over the last few years due to their unique and novel services they provide. Smith and Puczko (2009) attribute the growth of this industry to the recent global trend of alternative