Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
Customer Loyalty Plan at Residencia Gómez-Pardo,
Universidad Politécnica de Madrid
José-Luis Casado-Sánchez*, Rafael Escobar-Orellana** and Carmen
Ruizazcárate-Varela***
Accommodation is a first need and one of the most important decisions that university
students have to decide taking into account their limited budget. The satisfaction grade of
these students is the relevant aspect for the administrators and managers of the university
residences, because it allows assuring the viability and sustainability of this kind of
accommodation. In a situation of decline in rate of retention of students into the residence,
coupled with an environment of economic crisis. Hence, of disposable income reduction, it
seems essential to get to know what factors affect the motivation to remain into the
university residence more than others when it comes to the final choice.
The offer’s increase of different kind of accommodation is another variable to be
considered when taking the decision related to the management of this kind of
accommodation. Thus, there is the need to know which are the key factors and to obtain
information about these variables in order to go deep into the relevance grade with the
aim to pursue the strategic objectives, that will allow to improve the relationship with the
customer and to respond to his accommodation’ needs.
This article researches the motivation elements that lead the students to remain in a
university residence or to abandon it in exchange or a different accommodation, as per
example shared flats or individual apartments. This research work intends to be useful for
the university residence’s managers in order to increase its incomes, to raise the
satisfaction degree among its residents and to obtain better end results in the
management of these properties.
The fieldwork conducted in the Residencia Universitaria Gómez Pardo (RUGP),
Universidad Politécnica de Madrid (UPM), for four semesters, which means students from
27 different grades (undergraduates) and 81 surveys finished, shows the following
conclusions. Not only the relation with the residence’s personnel but also the quality and
quantity of the feeding and the availability and quality of the internet service, constitute
key factors when it comes to make the decision of remaining or of abandoning the
residence when the semester comes to its end.
JEL Codes: L85, R21 and R31
1. Introduction
According to the Conference of Rectors of Spanish Universities in 2013’ report the
university housing supply has a dominant structure of small size, about 100 spaces per
residence, and has an 88% occupancy. The Basic Special Report of DBK (2012) reports
that the total number of university residences summed 900 with an availability of 65,294
seats. In 2013 as reported by DBK (2014) the supply increased by 10% (909 homes) and
0.2% with 65,434 seats. However, reports are obtained, among other findings, which the
occupancy rate decreased by 3% in 2012 and the trend continues in 2013 with a decrease
in accommodation by 5%. This data includes the case of university residence Gomez
Pardo Foundation, object of this study.
In this situation, the urgent need to find the keys of attracting loyalty of college students
who need accommodation is presented to the managers.
*Dr. José-Luis Casado-Sánchez, Energy Systems Department, Universidad Politécnica de Madrid,
Spain . Email : joseluis.casado@upm.es
**Rafael Escobar-Orellana, School of Mines and Energy, Universidad Politécnica de Madrid,
Spain . Email: rafael.escobar.orellana@alumnos.upm.es
***Carmen Ruizazcárate Varela, Energy Systems Department, Universidad Politécnica de Madrid,
Spain . Email: c.ruizazcarate@dse.upm.es
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
From an institutional perspective, Lowrie & Hemsley-Brown (2011) indicate the need for
targeted marketing actions to achieve these objectives. These authors define the actions
for the university context noting that the application of marketing knowledge both
educational programs and services, does not mean the commodification of education.
Instead, these authors state that in the university context, marketing means to inform
students so they can make better decisions.
So, Pascarella & Terenzini (1991) and Reason (2009), state that changes in the
environment are related to the decisions of students. Its institutional linkage is influenced
by the evolution of diversity in the classroom, that is, by demographic variables such as:
race, age or gender.
Studies like the one conducted by Petruzzellis, D'Uggento & Romanazzi (2006) state that
the new challenges in the world require educational institutions to rethink changes in
teaching and services. The concepts of service quality and customer satisfaction have
been introduced in universities because they are aware of the need to adapt to the
changing needs of their students. The accommodation is presented as crucial for the
welfare of students in college element.
In this respect, Proctor, Linley & Maltby (2009) performed a literature review focused on
evaluating the satisfaction and academic success in the lives of young people. They note
that there are enough studies to correlate positively with academic achievement
satisfaction. In addition, satisfied young people demonstrate greater cognitive and
interpersonal abilities.
According to Rojas-Mendez, Vasquez-Parraga, Kara & Cerda-Urrutia (2009), the factors
that determine the loyalty of students to the universities from the perspective of the
students are, in this order, the perceived quality services and the satisfaction followed by
trust and commitment. Clearly both quality and satisfaction have an indirect influence
since both were previous to trust and commitment.
However, the research focused on the purchase commitment, customer satisfaction and
repurchases intention of Ercis, Ünal, Candan & Yıldırım (2012) and more specifically
within the university context, the study by Helgesen & Nesset (2007) focused to find the
keys to linking and retaining students at their university, reached similar conclusions.
Students make decisions both in reference to the choice of institution, founded as
continuity in their satisfaction. And specifies that satisfaction occupies three times more
influential than the reputation and prestige of the institution place. Despite the importance
of the satisfaction factor in the decision making process of students and according to Najib
& Abidin (2011), there is little literature available that delivers results from their same own
perception.
The concept generally acceptable about customer satisfaction and on which this study is
based on, is concerned about the state of mind of a person regarding the aligment
between the perceived performance of a product or service and the expectations held
(Marans & Rodger, 1975; Kotler, 2009).
On the other hand, the satisfaction of individuals, as indicated by Maslow, & Frager,
(1987), gradually manifests as physical needs are met, such as clothing, housing and
food, then personal self-esteem needs, and then work needs social relations and
recognition.
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
Moon (1998), focused on the housing and on the quality of services that included and
demonstrated the importance of residents’ satisfaction about the meals as a decisive
factor in the continuity. Amole (2009) or Ulyani, Nor Aini and Zulkifli (2010) concluded that
resident students generally are satisfied with the facilities but their dissatisfaction lies in
the food and in dealing with the support staff. To Khozaei, Ayub, Hassan and Khozaei
(2010), the most important factors that predict student satisfaction in housing are price,
location, security and other facilities such as internet access. In a recent study, Soza Ruiz
Gomez et al. (2013) analyzed the causes of the increase of the rotation of students
staying on campus and concluded that the degree of satisfaction of resident students is
based on interactions with other residents and how it is distributed and maintained their
bedroom. These two factors greatly influence the decision to continue in the residence.
There is a positive correlation between satisfaction and loyalty (Oliver, 2003) and as
argued Escir et al. (2012 p.1396), satisfaction is effective in creating loyalty or repurchase
decision.
Binsardi and Ekwulugo (2003) emphasize that one of the fundamental principles of
marketing is that all actions must be addressed to meet the needs of the customer. This
study in the university context and in the case of university residence Gomez Pardo
Foundation aims to search for the variables that inform the management for not achieving
an excellent university residence but satisfying the needs of university residents.
1.1. Conceptual Model
The conceptual model used for the design of the instrument is based on a literature review
of other models in association with the concepts of satisfaction and loyalty from the
student’s perspective. As noted above, the satisfaction is the difference between the
results actually obtained and the results expected at the beginning. However, this
definition does not explain the problems of abandonment of the residence by university
students. It is necessary to integrate those contextual factors and personal characteristics
that influence on the final decision of the student to maintain their staying in the dorm.
Satisfaction is, therefore, a dynamic process where the diminishing of the expenditure
ratio is studied and constituted their perception; it is an essential input to the management
or the university residence.
Therefore, considering that the generational change is manifested in a change in
expectations. According to the model of residential satisfaction Amerigo and Aragones
(1997) expectations of student’s change. Today, every student expects to have a network
connection to the Internet when years ago, for example, expected to have a good library
with specialized books in their degrees. Thus, industry-standard quality accommodation
includes it as a subjective indicator of the same, the rate of use (IU), i.e., the frequency of
use of the service.
Moreover, under the conditions of the housing, the physical environment of the living
environment (CONV) is distinguished. As Chow (2005) points out, both factors are crucial
to the life satisfaction of college students, good social relations in the home affect the
loyalty of both students and their accomplishment in their degrees. In this regard, peer
relationships (CONV-Comp) who have been appointed officers or delegates of some area
of activities, such as culture, sport, audiovisual, etc. include hazing, noise and if there is a
problem especially with a partner.
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
In the social relationships, the relationship with the workforce (CONV-PLAB) is integrated.
The situation through the campus accommodation increases relations with staff caring
services and in accordance with Ercis et al. (2012) a relationship of trust positively
correlated with affective commitment and therefore the institutional linkages is established.
Figure 1 the Conceptual Model
Objective
Attributes
1st Decision
Choice
Usage rate
UR
Personal
Characteristics
Perception
Coexistence
C-C & C-PS
Valuation
Satisfaction
2nd Decision
Choice
Loyalty
Figure 1 shows the basic elements of the analysis’ model. The first decision is analyzed
from the background and, therefore, as part of the student’s expectations. Satisfaction,
that constitute a dynamic process and whose construction is performed in a time period
includes the attributes valuation services and coexistence with both the workforce and with
peers. Finally, from the level of satisfaction students take their decision to remain linked,
loyalty being the result of the process.
2. Methodology and Model
The study begins with an in depth through the literature review focused on understanding
what the university housing satisfaction is and its measurement, both directly and
indirectly. The difficulty of measuring satisfaction and their different degrees generally
evidenced in this previous review. According to Amérigo and Aragones (1997), in our
study, satisfaction decomposed into elements that contribute to and influence markedly in
their perception as it is living with the workforce of the residence with their peers serving
delegates. As for the facilities and services the study focuses on the main factors (internet,
cleaning, food). Simplification seeks to focus on the answer, avoid fruit of personal mood
resident biases. According to Amérigo and Aragones (1997) is used as a multi-scale
instrument for greater validity and reliability questionnaire.
Given the complexity of the concept satisfaction, dynamism and temporal specificity
adequate treatment researcher selects the objectives of this study. Because it within the
determinants of satisfaction the individual perspective of the student, their needs and their
previous experiences are relevant, it is decided to ask directly about the issues that they
verbalize often and are also susceptible to improvement by managers.
Consequently, this study was performed using the semi-structured questionnaire. The first
design consisted of a questionnaire made of open questions. To achieve greater
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
spontaneity, this questionnaire was administered by mail to 15 resident students who had
already completed his residency. The responses received allowed modelling the survey.
Finally, the survey was reviewed by the management team for final supervision.
The survey was conducted in the first half of May. Surveys are deposited in each of the
mailboxes of the residents with instructions to fill them. This date was chosen because
residents and students spend eight months living in the residence, allowing them to have
a fairly deep knowledge of it.
Within 15 days was established to fill out surveys and deliver.
The survey does not include approximately ten residents that come from exchange
programs or who entered the residence just a few months earlier, because they would not
have time enough to get used to it and be familiar with the day to day run of the residence.
75 surveys were distributed, of which there were about 20 people who did not participate
or whose surveys contained errors. The total number of valid questionnaires for the
research study is 55 polls.
2.1. Instrument
This study is conducted from the perspective of a student, it has not been used
comparative liveability standards of institutional quality. The valuation of each of the
characteristics or attributes of the residence is composed of two elements, the use of the
service for his often expresses the degree of need and perception of residents regarding
the item in question.
Inaccuracies or biases in the perception of the residents are attenuated by relating it to the
three open questions at the end of the questionnaires that allow students to express with
their own words what items satisfied them most and what changes would they make to
improve the rest. Finally, a section gives you the option to comment on the subject of the
survey.
The survey consists of 3 main parts:
First part on the first decision to choose this residence: Its main objective is to understand
the influence of the different channels through which the university residence is known. In
addition, they wonder about the factors that were part of his decision.
Second part about the stay: The objective is to obtain the necessary data for the elements
that build satisfaction of residents. The services and facilities of coexistence and inner
workings.
Third part, the decision to repurchase: the objective is to obtain information on the
decision.
To achieve results more objective with the questionnaire, a scale of values from 0 to 10
was designed, indicating an increasing numerical value to a higher degree of satisfaction.
Anonymous survey format in order not to inhibit any response was chosen, although they
were also offered the option of putting their name.
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
2.2. Data Description
2.2.1. Flowchart of the Residence
Figure 2 shows the flowchart of RUGP that share the work between the personnel of the
Mines & Energy School and the Gomez Pardo Foundation itself. The board carries out its
work in both the foundation and the residence.
The maintenance service, medical, cafeteria and other services are outsourced.
Housekeeping, concierge and secretarial employees are RUGP and exclusive to this.
Residents are RUGP customers; its maximum capacity is 115.
Figure 2 RUGP Organigram
2.2.2. Sample Descriptive Analysis
Figure 3 shows the cultural diversity that has been increasing over the last years. The
figure shows the distribution of students is shown by indicating geographical origin in the
lower left corner, the number of students from other countries. The residence has students
of all autonomous communities.
Figure 3 Distribution Sitemaps
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
Figure 4 explains the sample consisting of 81 participants, which means 70% versus 91%
occupancy in the previous course. 72% (58) were men and the remaining 28% women
(23).
Figure 4 Gender Sector Diagram
Figure 5 shows the distribution of residents regarding its year of college. The diagram
focuses on students from 1st and 2nd year (85%).
Figure 5 Year Sector Diagram
Figure 6 shows the distribution by areas of knowledge. Residents pursuing technical
careers, focusing on 3 schools: aerospace, industrial and mining (50) other (32) belong to
other schools in 27 different grades.
Figure 6 Grades histogram
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
3. Results
The treatment of the results is a qualitative descriptive analysis that allows us to relate the
means obtained on each item of service and frequency of use with the decision to remain
as per the students.
3.1 Survey
3.1.1. First Part of Survey
Figure 7 shows the channels through which the students took the decision to choose the
residence RUGP.
Figure 7 how did you know RUGP?
The above data show that Internet is the main source of information when it comes to
students selecting the residence they are going to live in during their academic years. The
recommendations from residents, past or present, are scarce.
Figure 8 shows what the main reasons leading to the selection of the RUGP are.
Figure 8 reasons to choose RUGP
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
The location in the city center and close to colleges is the main reason, followed by
distribution and room furnishings. This histogram allows to know the strengths for
capturing residents.
3.1.2. Second Part of the Survey
The results obtained in this second part refer to the experience of staying at the residence.
The data reported for part of the quality of services and on the other part of the relations of
coexistence.
Figure 9 reports the valuation of services, showing the cafeteria with the highest score.
This result shows that the cafeteria was the only leisure space until the recent opening of
a specific room. The air conditioning has increased its use even in the study room.
Figure 9 common areas valuation
Figure 10 shows that in addition to the Health Center next RUGP, students have a doctor
where they can go for consultation and primary care.
Regarding cohabitation, the noise and problems, especially with a partner, have been
taken into account.
Regarding the internet through wi-fi, residents are not satisfied due to lack of coverage
and service interruptions due to frequency cancellers.
Figure 10 Services assessment histogram I
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
Figure 11 related to coexistence, the delegate is the figure representing the students qnd
he plays an important role within the residence life. In order to be elected, he must be
resident for more than a year. He manage a budget to develop cultural activities,
entertainment and sport.
Figure 11 services assessment histogram II
Figure 12 cafeteria service is valued by the different factors that reflect the needs of
residents. It works through personal and nontransferable and vouchers for a quarter.
Figure12 Cafe-Restaurant assessment histogram
Figure 13 shows the evaluation of individualized service like cleaning of the rooms.
Figure 13 housekeeping assessments histogram
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
Figure 14 the residence has a concierge service 24 hours from Monday to Sunday. This
facility serving four custodians who are responsible for controlling access, receiving
parcels and correspondence, and generally monitor compliance and notify maintenance
defects.
Figure 14 doorman assessment histogram
Figure 15 shows the value that residents perceive maintenance service that includes
plumbing, carpentry and electricity. Weekly, through the leaves of communicating parties
is the damage that occurred in the residence.
Figure 15 maintenance services assessment histogram
Figure 16 shows the assessment that students do care they receive from management
and RUGP secretary.
Figure 16 managing director-and secretary assessment histogram
The CEO, the residency director and secretary constitute the management team. They are
responsible for managing and setting the house rules and control the workforce and
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
regulate its performance. They show the residence to new customers, deciding
admissions, expulsions and renewals and take steps to improve the competitiveness of
the residence decisions.
3.2 Limitations
Although cultural and family roots each student influence their expectations (Amerigo and
Aragones, 1997), this study takes the academic data of residents and not enter personal
data to study, their previous experiences or even data socio-economic. This paper aims to
support the decision of abandonment and, therefore, the decrease in the occupancy rate
of the residence by students after the academic year.
It is not our goal to establish cause and effect to achieve a high degree of satisfaction
among residents, nor is this research performed to extrapolate the conclusions and infer
the relationships. The aim is simply to provide the management team all the information
relevant to improving decision making in the upcoming academic years.
This research aims to continue for the following academic year. The intent behind this is to
build a predictive model of behavior. This tool will be useful for managers to achieve
resident satisfaction and its relationship to the institution. Some results can be taken into
account in decision-making in university residential environments with similar
characteristics; however, the satisfaction to be a dynamic process should be undertaken
with caution and responsibility.
4. Discussions and Conclusions
By completing this study, we can say that the strengths of the students decide to choose
the order of assessment RUGP are: excellent communication and central location in the
city; Second, the rooms, privacy and independence; thirdly freedom of schedules and
visits and finally, a mixed residence and good value.
The first conclusion reached after analysis of the results is the need to establish a linking
strategy priority of attracting new residents. During 2012-2013, they decided to continue in
residence 29.5% (out of 105 residents remained 31). The following year, the occupation
continued its downward trend and linking students passed the course 2013-2014 is 30.5%
(a total of 82 residents remain 25). It is key point of reflection exists only among students
recommendation for decision-making, both for selection and for permanence.
According to Ercis, Ünal, Candan & Yıldırım (2012) affective commitment is closely related
with satisfaction as reflected in the results of coexistence. Dealing with the staff and
especially the management team can make the decision to tilt toward permanence.
Schedule periodic meetings to consider improvements, solutions and exchange views are
an application for students that will enhance your stay and develop the sense of
community and belonging (Amole, 2012).
The appointment of delegates and Dean encounter difficulties because the rule states that
stay resident with two and three years causing a situation of impossibility. The update of
the rules is necessary to conform to current contexts.
Continuing with the representatives, the need for information and training on their roles
and responsibilities is concluded; communication and transparency of the budget,
Proceedings of 28th International Business Research Conference
8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3
expenditure and channeling suggestions and feedback activities, all facilitate the
integration and coexistence (Yue, Lé & Terry, 2014).
The catering service is known for its friendly service. Residents also requested the
opening on holidays and greater flexibility in the amounts of food and vouchers. Better
assessment of residents receiving the cleaning service and its flexibility through service
request sign that fits your needs (Soza Ruiz Gomez, Swarts & Shaw, 2013; Uprety &
Chhetri, 2014).
However, with respect to personal contact with residents, the worst score is the concierge
service. Its control functions require compliance conflict management skills (Botha,
Snowball, De Klerk & Radloff, 2013).
In this line and management team regarding resident students seeking response to your
suggestions, complaints or problems and updating the rules of coexistence (Uprety &
Chhetri, 2014; Steele, 2014).
Residents applying for a permanent maintenance service for even basic repairs could be
solved with the cooperation of the concierges.
The Internet is a factor that determines in many cases the decision to stay (Teimoury,
Gitinavard & Mousavi, 2014).
We conclude that cultural diversity coupled with different areas of knowledge presented by
residents are factors positively valued; enriching coexistence and positively development
of the sense of a learning community.
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