Case Studies in Customer Satisfaction Research

Methodology

Vanderbilt Dining officials believe that when customers are satisfied, the business will follow. So to more effectively manage the business, they consulted with a local market research firm to identify how they could better satisfy students and educate them about their mission. Since perception is the ultimate reality, "what they see is what you get." The objective was to discover how the students saw Vanderbilt Dining.

Between March 1993 and March 1994, Perdue Research Group conducted telephone interviews with a random group of 120 students and 122 parents. The survey measured food and overall satisfaction, predictors of satisfaction, and other quality issues, using a Likert scale. It also identified the quality positioning of the campus dining service as compared to local competitors. While the quantitative survey was encouraging, additional research was found to be necessary to further explain how students felt.

Vanderbilt Dining officials retained Food Insights in 1997 to perform an in-depth qualitative study of the dining needs of the Vanderbilt community. The objectives of the study clearly demonstrated the use of marketing principles. The overall goal was to determine what features customers wanted, so that Vanderbilt Dining could meet those needs. The study focused on improving customer relations, identifying the competition, understanding customer perceptions, and identifying the evaluation factors customers use. The three main areas of questioning surrounded customer decision factors, dining service offerings, and the current communication channels in place.

Results
While the survey yielded overall positive results, it identified several areas that could contribute to increased customer satisfaction. Students' tastes had evolved, yet Vanderbilt Dining's services had failed to reflect the change. The market research provided direction for improvement efforts. Administrators implemented many of the recommendations based on the results of this survey and have greatly benefited from doing so.

The first major project undertaken was the renovation of the main campus dining facility. The goal was "to create an identity that combined the graphics and interior architecture to create a dining experience that appealed to the students" (King, 1997, p. 45). The market research identified what students wanted in a campus dining facility; namely, a variety of options in a pleasing atmosphere. The implementation of a marketplace concept positioned the dining room as a student-friendly place. Revenues increased by over $31,000 in the first 10 days, compared with the previous year. While the renovations themselves did not create satisfied customers, they allowed for the flexibility to meet the dynamic needs of students.

A year later, a convenience store in a centrally located freshmen residence hall was renovated to create an "everything you ever wanted as a college student and more" store (King, 1998a, p. 34). The graphics are directed at today's generation of college students. Students wanted a facility open longer hours. The convenience store is open until 4 am on Thursday, Friday, and Saturday nights and serves breakfast from midnight until closing to maximize on the late-night day-part (Pond & Klie, 1999). Business is as heavy between 2 am and 4 am as it is between 11 am and 1 pm. Student traffic also increased significantly during final exams, when the store was kept open 24-hours a day. To determine what Vanderbilt students wanted, administrators listened to them. In response, revenues doubled; recent estimates indicate approximately eight percent new business. This is because students knew that they were heard. The overall effort has been popular, and students are asking for similar upgraded stores across campus.

Often when revenues increase in one area of campus they decrease in another; incremental revenues are difficult to generate. Therefore, it is important to "experiment" in attempts to find the right mix of food service options. Increasing market share is not always the main goal. The toughest challenge is often to get the message out accurately, since students are often misinformed and jump to conclusions. Vanderbilt Dining administrators want students to know the department exists to serve them, and that they are centered on making the overall collegiate experience the best it possibly can.

Vanderbilt Dining has recently received several awards for services from campus outsiders, including Sports Illustrated and NACUFS. These awards were used to their full potential as marketing tools. After receiving the food service industry's most coveted Ivy Award of Distinction, representatives celebrated with an elaborate party to thank patrons for their support. Another gala was given to honor Gladu as the 1999 recipient of the Silver Plate Award from the International Food Service Manufacturers Association (IFMA). The events allowed Vanderbilt Dining personnel to communicate their recognized success to their customers. These awards were also used to recruit students by differentiating Vanderbilt 's food service from its competitors as a positive aspect of student life.

Since higher education is one of the most "wired" sectors of today's economy, online marketing is a new and important communications vehicle for reaching out to college students. Many college and university food services now utilize the Internet as a marketing tool on their campuses (King, 1998b). Some now have coupons, trivia contests, recipes, and even a fat content calculator available on their web sites. Catering services now take orders online and allow students to file for vending machine refunds. Vanderbilt currently posts weekly menus along with extensive descriptions of facilities and services on its Web site. In the spring of 1999, Vanderbilt Dining staff utilized the Internet to conduct a student satisfaction survey with the help of SATISTRACKTM (1998), which involves an online customer satisfaction tracking program to provide quicker and more cost-efficient results than traditional methods.

Vanderbilt Dining managers hope that the image students have of department services is concurrent with its mission. A part-time employee was retained to design promotions to address the miscommunication and inaccurate beliefs that exist among students. Print media is also used as a communications tool to reach Vanderbilt students. A campus newsletter delivered to students in their residence halls publishes weekly menus. Ads for special events are placed in the student newspaper. Since Vanderbilt parents are often indirect customers, with influence on the students, they, too, receive a special publication.