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Assignment U5

Tom Oliver, CEO of Holiday Hospitality Corp., wanted to differentiate among the company's hotel brands - Holiday Inn Select, Holiday Inn Express, and Crowne Plaza Hotels - to quadruple revenues. A customer survey found confusion among the brands and complaints about quality. Franchisees opposed a planned name change. Oliver sought to understand customer segments and market differentiated brands, but recognized success required franchisee cooperation. The problem was how differentiation and cooperative franchisees affect differentiation. A theoretical framework discussed revenue, differentiation, customer service, and stakeholders. Four hypotheses proposed relationships between differentiation, customer perceptions, and revenues being moderated by franchisee cooperation.

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Shaon Islam
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78 views2 pages

Assignment U5

Tom Oliver, CEO of Holiday Hospitality Corp., wanted to differentiate among the company's hotel brands - Holiday Inn Select, Holiday Inn Express, and Crowne Plaza Hotels - to quadruple revenues. A customer survey found confusion among the brands and complaints about quality. Franchisees opposed a planned name change. Oliver sought to understand customer segments and market differentiated brands, but recognized success required franchisee cooperation. The problem was how differentiation and cooperative franchisees affect differentiation. A theoretical framework discussed revenue, differentiation, customer service, and stakeholders. Four hypotheses proposed relationships between differentiation, customer perceptions, and revenues being moderated by franchisee cooperation.

Uploaded by

Shaon Islam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ACTIVITY- Assignment

For the following case titled ―Sleepless Nights at Holiday Inn‖ (published in Business Week and
adapted here):
a. Identify the problem
b. Develop a theoretical framework
c. Develop at least four hypotheses
Sleepless Nights at Holiday Inn
Just a few years ago, Tom Oliver, the Chief Executive of Holiday Hospitality Corp., was
struggling to differentiate among the variety of facilities offered to clients under the Holiday flagship—
the Holiday Inn Select designed for business travelers, the Holiday Inn Express used by penny pinchers,
and the Crowne Plaza Hotels, the luxurious hotels meant for the big spenders. Oliver felt that revenues
could be quadrupled if only clients could differentiate among these. Keen on developing a viable strategy
for Holiday Hospitality, which suffered from brand confusion, Tom Oliver conducted a customer survey
of those who had used each type of facility, and found the following. The consumers didn‘t have a clue as
to the differences among the three different types. Many complained that the buildings were old and not
properly maintained, and the quality ratings of service and other factors were also poor. Furthermore,
when word spread that one of the contemplated strategies of Oliver was a name change to differentiate the
three facilities, irate franchises balked. Their mixed messages did not help consumers to understand the
differences, either. Oliver thought that he first needed to understand how the different classifications
would be important to the several classes of clients, and then he could market the heck out of them and
greatly enhance the revenues. Simultaneously, he recognized that unless the franchise owners fully
cooperated with him in all his plans, mere face lifting and improvement of customer service would not
bring added revenues.

Answer:
Problem statement:
How “clients could differentiate” and “cooperative franchise owners” affect the differentiation?
Theoretical framework:
Revenue is the total amount of money received by the company for goods sold or services
provided during a certain time period. Differentation is the process of distinguishing a product or
offering from others, to make it more attractive to a particular target market. This involves
differentiating it from competitor’s products as well as a firm's own product offerings. Product
differentiation creates customer preferences which allow companies to make above normal
profits. Customer service is all interactions between a customer and a product provider at the
time of sale, and thereafter. Customer service adds value to a product and builds enduring
relationship. Based on the theory of customer service, customers will get not only the products
but also additional value that makes them be more satisfied in products and companies. Client
could differentiate. The ability of clients to see differences between products offering by one
company and the product of one company compare to other companies. Cooperative franchise
owners. Every strategy in the company always needs support from its stakeholders. In this
case, Tom Oliver needs a support from franchise owners to make his strategy successfully and
achieve its goals.

Hypothesis:
H1. Differentiation certainly linked with gain more revenue.
H2. Improvement customer service positively correlated with gain more profits.
H3. Client could differentiate will moderate the relationship between differentiation and gain
more revenue.
H4. Cooperative franchise owners will moderate the relationship between differentiation and
gain more revenue.

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