NAME

KOO Ming Yuk

DEGREE

BA (Honors) International
Hospitality and Tourism
Management

TUTOR

Dr. Carmen SUM

TITLE

Customer Relationship
Management Strategies in
Walt Disney Theme Park

DATE

April 2011

CAMPUS

SHAPE, Hong Kong

STUDENT NO

10033465

Project submitted in partial fulfillment

of the requirements of the
BA (HONS) INTERNATIONAL HOSPITALITY AND TOURISM MANAGEMENT

of Northumbria University

DECLARATION
I declare the following:(1) that the material contained in this Project is the end result of my own work
and that due acknowledgement has been given in the bibliography and
references to ALL sources be they printed, electronic or personal.
(2) the Word Count of this Project is:

Part A : 4019...
Part B : 5587...
Reflective Statement: 669...
Total Word Count: 10275...

(3) that unless this Project has been confirmed as confidential, I agree to an
entire electronic copy or sections of the Project to being placed on Blackboard,
if deemed appropriate, to allow future students the opportunity to see
examples of past Projects. I understand that if displayed on Blackboard it
would be made available for no longer than five years and that student would
be able to print off copies or download. The authorship would remain
anonymous.
(4) I agree to my Project being submitted to a plagiarism detection service,
where it will be stored in a database and compared against work submitted
from this or any other School or from other institutions using the service.
In the event of the service detecting a high degree of similarity between
content within the service this will be reported back to my supervisor and
second marker, who may decide to undertake further investigation which may
ultimately lead to disciplinary actions, should instances of plagiarism be
detected.
(5) I have read the University Policy Statement on Ethics in Research and
Consultancy and the Policy for Informed Consent in Research and
Consultancy and I declare that ethical issues have been considered and taken
into account in this research.

SIGNED:

........................................................................

DATE: ...............................8-4-2011......................

Please remember to sign the declaration before submitting your Project.

ABSTRACT
This paper will be separated into two main sections, A and B. Section A,
focuses on the role of personal learning and career choice. Section B is talking
about the topic of Customer Relationship Management Strategies in Walt
Disney Theme Park. Moreover, it shows the link between Section A and
Section B. Because of the result of the personality tests indicates the direction
for making the career choice in guest service officer and customer service
clerk directly also. Thus, it helps me to develop an interest in studying about
the customer relationship.

Section A, the beginning of this project, those three personality tests are,
VARK, MBTI and Belbin, with the results covered, such as Kinesthetic is the
learning style, weak in co-ordinate and it elaborates the result with some past
demonstrations and explanations. According to the result, it helps to
understand my personality and thus develop the career path in somehow
industry. It shows the link between the personality, careers choice and the
topic chosen. Meanwhile, it helps for planning for further study, for examples,
taking language courses, and studying a master degree.

Finally, Section A justifies career choice according to personality result, and

talks about a long-term studying planning. Last but not least it helps me to
recognize some kinds of skills learnt from my working experience and study,
such as teamwork, communication skills, problem solving skills, etc. Therefore,
it shows that my learning style is Kinesthetic, good as teamwork. I am an
outgoing person.

Section B focuses on Customer Relationship Management (CRM), which is

more important in every industry in recent year. The aims of this study
examines the CRM strategies in Walt Disney Theme Park are 1) to discuss the
benefits of using CRM strategies in Walt Disneyland, such as a repeat
business, long-term relationship with customers and cross-selling. Moreover 2)
to show how Walt Disney Theme Park implement CRM strategies, for
examples, IT, customization, revenue management and understanding the
importance of customer value and customer behavior.

No matter when and where, there are so many interesting researches in CRM
system. Although many researches of interesting topics to be searched for
CRM, no CRM strategies agenda has been published about how to apply it in
some favorite corporate, such as Theme Park. This paper examines the
reason for choosing the topic Customer Relationship Management Strategies
in Walt Disney Theme Park. However, the main area is the implementation of
CRM in Theme Park, and it will confer about what benefits will bring out
throughout using the CRM in organization. However, Theme Park is
burgeoning in hospitality industry, such as Ocean Park in Hong Kong, but Walt
Disney Theme Park is the earliest developing Theme Park in United States of
America in Orlando. Moreover, it is using CRM strategies and this paper will
examine how CRM does work in Walt Disney Theme Park.

Key Words: Theme Park, CRM Strategies, Walt Disney, Implementation of

CRM

ACKNOWLEDGEMENTS

From the beginning, I would like to thank you my lecturers, Dr. Carmen Sum
and Dr. Mok for their guidance in the development of this Professional
Development Project.

Meanwhile, I would also like to thank you my university fellows for their fully
and constantly support.

Finally, I appreciate that my families and friends are encouraging and

supporting me to finish this Professional Development Project.

CONTENTS PAGES
Page
Title Page
Declaration and Word Count
Abstract
Acknowledgements
Contents Page
List of figures
Glossary

1
2
4
5
8
9

Part A
Section 1 - Who I am as a learner?
1.1 Introduction
1.2 VARK
1.3 Myers Briggs (MBTI)
1.4 Belbin Inventory
1.5 Family & Friends to Comment

10
11
14
17
19

Section 2 - Implications for career choice

Introduction
2.1 Lifelong learning
2.2 Transferable skills
2.3 Justify chosen career choice

21
24
26

Appendixes (Appendix A Appendix C)

Appendixes A
1 VARK
1.1 Certificate of Excellence (HKJC)
2 Myers Briggs
2.1 Bank of China job certificate
3 Belbin inventory
3.1 Walt Disney World Certificate
Appendixes B
1 Curriculum Vitae
2 Two Job Adverts
3 Standard Application Form

29
30
31
32
33
35
36
37
38
39
41
43

Appendixes C
Presentation on PowerPoint

47
48

Part B
Part 1 Introduction
1.1 Reason for choice of topic
1.2 Academic Objectives of Project
1.3 Outline of Sections

50
51
52

Part 2 Setting the Scene

2.1 Walt Disney Corporate Background

53

Part 3 Literature Review

3.1 Definition & Conceptualization of CRM
3.2 Components of CRM
3.2.1 Technology
3.2.2 People
3.2.3 Business in Process

54
56
56
58
59

3.3 Benefits of Customer Relationship Management (CRM)

3.3.1 Customer Loyalty
3.3.1.1 Lifetime Value to quantify the value
of Customer Loyalty
3.3.2 Others

62
62
63

3.4 CRM Strategies being used by Walt Disney Corporate

3.4.1 Understand the importance of Customer Value
& Customer Behavior
3.4.1.1 Customer Value
3.4.1.2 Customer Behavior
3.4.2 IT of CRM
3.4.2.1 Pal Mickey
3.4.2.2 Benefits of using Technology in CRM
3.4.3 Revenue Management

66
66

3.5 Avoiding Failure of CRM

75

Part 4 Summary and Conclusions

78

65

66
69
70
71
72
73

References
Appendixes (Appendix D Appendix F)
Appendixes D
Chart of labor force by Age Group

81
94
95

Appendixes E
Article of Hong Kong 2004, Travel and Tourism

96

Appendixes F
Case Study of Walt Disney World Resorts and CRM Strategy

99

Reflective Statement
Last Page

106
109

LIST OF Figures & Tables

Figure A1: The Sensory Model....................................................................... 12
Figure A2: My VARK Results ......................................................................... 13
Figure A3: The Chart of School Work............................................................. 13
Table A1 MBTI Result .................................................................................... 16
Figure A4: Belbin logo .................................................................................... 17
Table A2: My Belbin Test Results ................................................................... 18
Table A3: My lifelong planning Timetable ....................................................... 23
Table A4: SWOT analysis............................................................................... 28
Figure 5: The Service Profit ........................................................................... 55
Figure 6: Usage Rates of Management Tools in 2004 ................................... 55
Figure 7: CRM Applications, supported by ERP/data warehouse, link front and
back office functions ...................................................................................... 57
Figure 8: A CRM Implementation Model ........................................................ 59
Figure 9: Theme park planning components .................................................. 60
Figure 10: A Typology of Service Loyalty ....................................................... 63
Figure 11: Choosing a CRM Strategy ............................................................ 64
Figure 12: Customer Value ratio .................................................................... 66
Figure 13: The Intensity of a market care in relation to current and strategic
customer value............................................................................................... 68
Table 5: IT CRM Benefits ............................................................................... 73
Figure 14: Segment-Based RM strategies ..................................................... 74
Figure 15: Leading CRM Risk Factors ........................................................... 76

GLOSSARY OF TERMS
MBTI

Myers-Briggs Type Indicator Instrument

HKIVE

Hong Kong Institute of Vocational Education

HKJC

Hong Kong Jockey Club

VARK

Visual, Aural, Read/Write and Kinesthetic

F&B

Food and Beverage

BOC

Bank of China

WDW

Walt Disney World

YM

Yield Management

CRM

Customer Relationship Management

CMR

Customer Managed Relationship

10

Section A
Part 1- Who I am as a learner
1.1 Introduction
This is always a big question in my mind. I realize that most of my friends in
teenage are confused who they are and do not know what they should do,
which includes me. However, I believe that we do eager to learn and make
improvement as long as we understand what our strengths and weaknesses
are.

According to the index from Hong Kong Census and Statistics Department
(Appendix D), Generation Y people occupy 75% of the total population, and I
am one of them who need to find my career. It may be the reasons why so
many personal tests have been developed for helping people to learn and find
out their ways and directions.

A simple story in Bible has described the importance of knowing the problems
and making changes. In the Holy Bible (2002), the story describes the fate of a
seed can be different when it grows on different places like wayside, thorns,
Stony spaces or good ground. A healthy crop can only be eventually
harvested if it has located on good ground.

Despite we have bought some seeds of good quality, we still need to provide a
proper cultivating environment for allowing the seeds to yield high. Our futures
can definitely be influenced if someone can indicate our problems and point
out the corrections that we can make effort in it.

11

Be honest, I believe everyone same as me want to be a seed fell on good

ground and yielded up as the above mentioned story, even though I am weak
at studying, working, and interacting with people and so on.

Before doing the test, I am such a person vast and hazy about my personality,
my future, my career, my lifeconfused at everything when I am getting older
and older. Moreover, that time of fear, when it proves in vain though I pray so
often, I am at sea. I will read the above story repeatedly, because I believe
God will prepare for me.

In my heart there is a hopeful song, even though many nights I prayed with no
proof anyone could hear, I still believe there can be miracles though hope is
frail. Yet now I am standing here, keep learning and learning. I believe that
somehow I will.

Personality Tests
For the sake of understanding what my personally type is, I finished the
following three personality tests for knowing and getting some information of
myself. They arouse an awareness of me, and help me to develop my career
path.

1.2 VARK
In the beginning of the book of Fleming (2001), VARK is a sensory model used
for learning information, and it copes with perceptual modes for educational
preference. It helps us to take in and hand out information with different ways.
The website of VARK mentioned that test is a sensory model used for learning

12

information.
Figure A1: The Sensory Model

Visual
1
0.5
Kinesthetic

Aural

Read/Write

There are four acronym of VARK results (Figure A1), which are visual, aural,
read/write and kinesthetic. Visual performance is about some abstract things
that used to highlight and convey information, something like graphical and
symbolic way for illustrating information.

Aural mode is about the performance with heard or spoken, such as using
discussion skills in a lesson and hearing what information indeed. Read/write
is about the performance in using a word to express the feeling, while
Kinesthetic is the perceptual preference, which refers to physical feelings, as
far as the Fleming (2001) is concerned.
1.2.1 My VARK Result
From the above table, it shows that I am a Multimodal learner (Appendix A-1).
Penetrating the test, we can see I got the highest mark in Kinesthetic (13), and
the second are Read/Write (11) and Aural (11) areas even as a Multimodal
learner (Figure A2). To sum up of these, it can be my reference for developing
my learning styles, and I am a Kinesthetic.

13

Figure A2: My VARK Results

14
12
10
8
6
4
2

11

13

11

0
Visual

Aural

Read/Write Kinesthetic

1.2.2 Implication Learning

Actually, this learning style can be realized in my previous experience. For
example, when I studied in higher diploma in HKIVE, I was an internship
working at Hong Kong Jockey Club (Appendix A-1.1).

The performance of Hong Kong Jockey Club, even I was not the best, I got a
scholarship at the end, due my score ranking was over the standard. In Hong
Kong Jockey Club, I had learned a lot of practical skills about catering,
obviously, that skills you could only feel and percept. From this score count,
this was to say, I had a greater perception of learning in my workplace through
a practical simulations. On the other hand, this was a chance for me to
understand my weaknesses and improve them in the future.
Figure A3: The Chart of School Work

Score

62
60
58
56
54
52
50

61
59

58

54

F&B Yr2
menu
operation

F&B Yr2
menu Project

F&B Yr3
F&B Yr3
menu
menu Project
Operation

14

In the chart of schoolwork (Figure A3), it shows my school performance when I

studied in HKIVE. The score of my Food and Beverage Menu operations are
higher than that of my Food and Beverage Menu Projects within those two
years.

I compared two years schoolworks numerical analysis in order to explain that I

did a good performance on a practical section rather than writing an
assessment and doing an essay or a project. Because practical is not like
abstract things, that can show me what I am doing directly. It seems more
attractive to my attention on the reality, because I had to create the hospitality
products that I needed to sell. And I could know well when I practice hands-on.

In addition, Business has two-AND ONLY TWO-basic functions: marketing

and innovation, quoted by Peter Drucker in Gorman (2007). He pointed out
new product development works best when you have a clearly defined
problem and a few potential solutions.

This is to say, in a business, unless using marketing strategies, innovation is

also important when running a business. In other words, I had a talent about
technical innovation, and that is why I worked best on my operation.

1.3 Myers-Briggs Type Indicator Instrument (MBTI)

Myers Briggs is the trademarked name of the test, it is based on the theory of
Carl Gustav Jung, and was developed by the mother and daughter team of
Katherine Briggs and Isabel Briggs-Myers PC MBTI.URL. Long time ago,
personality tests were not admired in the world. But today, more than 2.5

15

million people have taken personality tests for their career planning;
meanwhile, they would like to view their psychology, and it was good at
management and leadership training. Though Carl Jungs was only minimally
involved with the MBTI, his theoretical system certainly stands as its center
Hoffman (2002). Furthermore, Hoffman (2002) classified personality into
sixteen types based on four preferences:
1. Extraverted (E) or Introverted (I),
2. Sensing (S) or Intuitive (N),
3. Thinking (T) or Feeling (F)
4. Judging (J) or Perceiving (P)

1.3.1 My MBTI Results

As my MBTI results (Table A1), the two highest two scoring types are ESFP
(83%) and ESTP (75%) (Appendix A-2). Base on the theory of Carl Gustav
Jung of his sixteen personality types, for the explanation of ESFP and ESTP, it
stated that my perception is sensing, and I would like to judge base on my
inner thoughts and emotions.

Through the PC MBTI.URL, the detail of it shows that I am an outgoing person

who would like to speak to them. Therefore, I am the problems killer, as I
would focus on the fact and detail to solve the problem for now rather than the
possibilities in the future. Moreover, I would like to seek a chance and enjoy
the world as what it is.

16

Table A1 MBTI Result

ISTJ
48%

ISFJ
56%

INFJ
40%

INTJ
33%

ISTP
58%

ISFP
73%

INFP
65%

INTP
50%

ESTP

ESFP

ENFP

75%

83%

68%

ENTP
60%

ESTJ
50%

ESFJ

ENFJ
58%

ENTJ
43%

66%

1.3.2 Implication Learning

From my working experience at Bank of China (BOC) Credit Card Centre
(Appendix A-2.1), although it was a banking industry, it brought out the point
that I am just a sensitive person and make a judge by my emotion. Why do I
say about it? Because of I had an experience about arguing with my
supervisor for my job. I thought some procedures were duplicated, I said it was
too stubborn for us to process it, and he did not care the feeling of us when
working in the front line. And we always need to deal with any complaints of
the guests. I took to my supervisor with a strong statement. I just wanted to
express what I was thinking of. At the end, my supervisor took my way, but she
would not let me do any important cases for the other days. She might be
afraid of my impetuous. Through that experience, I could understand I am an
action oriented problem solver. To achieve getting benefits for people, I will
take action with my strong sense immediately.

17

I am a perceiving person from the view of my working experience, and the text
showed that I am such person who needs a flexible life and working place
even though I will overlook the feelings of others. However, I would like to
share and concern about my colleagues, classmates, friends and family. So on
I made many friends wherever, due I know how to enjoy the life, I know how to
live with them in a humorous ways, lead them relax.

1.4 Belbin Inventory

Figure A4: Belbin logo

Source from PC Platform21traning.co.uk

Belbin (Figure A4) is the personal test established as a partnership in 1988.

Belbin (2009) believes there is great value of teamwork. Moreover, Belbin
Team Role Theory states that (Belbin, 1981) some teams did work on their
performance but some hit the rocks that difference between succeed or
failure is not dependent on factors such as intellect, but more on behavior.
The test showed that the inclination of the conduct and interrelates between
people and people with a special way (Belbin, 1981). In the Belbin test, it
defines nine aspects of team role, and these are Plant, Monitor Evaluator,
Co-ordinators, Resource Investigators, Implementers, Completer Finishers,
Team workers, Shapers and Specialist. The following table will explain in
details of what my type of each aspect from my results of Belbin.

18

1.4.1 My Belbin Test Results

From the below table A2 of the result of Belbin test (Appendix A-3), it shows I
am the preferred roles of Team Worker and the manageable roles of
Implementer (Table A2), but I am weak at least preferred roles of co-ordinator.
The status of Team worker is about co-operative, mild, perceptive and
diplomatic. Listens, builds, averts friction, on the Implementer is about
disciplined, reliable, conservative in habits and efficiently.
Table A2: My Belbin Test Results
Action

Social

Thinking

Completer Finisher

Co-ordinator

Monitor Evaluator

28

13

19

Implementer

Resource Investigator

Plant

60

55

53

Shaper

Team Worker

Specialist

51

93

44

Details of Scoring: 0-20 (Least Preferred Roles), 30-60 (Manageable Roles), 70-100
(Preferred Roles)

19

1.4.2 Implication Learning

I partly agree with this result, with reference to my working experience on
Walts Disney World (WDW) at EPCOT Centre (Appendix A-3.1). I was a
culture representative. I needed to solve problems of those guests problems
with immediate actions for satisfying their demands. Though my working
experience including my placement, I was never late or left without any
reasons. From my colleagues and my friends comments that even I am
working or studying, I would like to help the teammates. I will identify what we
need in the work task, and I will make sure my team members will complete
their tasks in the schedule that we set beforehand.

On the other hand, I was not a co-ordinator in team. Co-ordinators will focus
on the objectives of the team, and then they will assign the right task to the
right team members (PC Belbin.URL).

That means I am weak at utilizing different characteristic of different team

members for distributing a job task for them in a team. I am not such a person
who can be a bridge to focus on teams objectives, according to my friends
comments I offloaded too much work to one person whom I thought he could
handle, then overlook other members in team.

1.5 Family & Friends to Comment

Family and friends comments help me develop my personality, team and
learning styles from the day the world begin. When I finished these three tests,
I can understand what my learning, personality and team role style in details.
Furthermore, the opinions of my family, friends, and my colleagues

20

commented that was giving a direction to me.

My academic performance was not good during my primary school study, but
my family thought that each time I could perform better than before such as
taking good care of myself better, handling my daily necessaries by myself
better and better as well even through practices. It is same as my result of
VARK that illustrated my strength lies in Kinesthetic. Besides, my friends
comments and MBTI result about I would like to make many friends. I have
many friends since the childhood, and keep them happy and would like to help
them when they have any problems. Moreover I will analyze, plan or set a goal,
a target or a strategy for them to pursuit. That means I am an outgoing person,
and would like to concern with my people that comply with the result of MBTI,
ESFP.

At the working places, according to my colleagues, I am a person who will

concern about team members, and I would like to be supportive provide
everything, for example, creating a fusion atmosphere thus allowing them to
contribute effectively, same as the result of Belbin that showed that I obtained
my higher score in teamwork and implementer.

In addition, when I studied in higher diploma, my friends and classmates

figured out I would like to make a brief conclusion by combining their points,
and I will try to support them for everything they need in our group project. I
would promote ideas for adapting to all team members. In the operation, I
made a procedure smooth, I would be an assistant in each section for helping
them to complete their task on time.

21

Part 2 - Implications for career choice

Introduction
Choosing careers is compulsory routes in life. People need to choose their
career when they have finished their study. The decision making of career
choice is based on the learning that people got from their life.

2.1

Lifelong learning

Lifelong learning is about some of the relatively change in human being, such
as external and internal activities, for example, thinking, attitudes and
emotions (Burns 1995).

Why do I study for a bachelor degree after I graduated from higher diploma
two years later? Because of I know more about the trend of economy in this
21st century when I started to work. As Hosseini (2006) mentioned that in the
21st century, workers need to keep learning, and they need to adapt to the
changed of the opportunities and due to labor market demand of the
knowledge economy. On the other hand, due to the fast economic growth
brought by knowledge, people need to keep learning for increasing their
competitiveness in labor market.

Working let me know my educational qualification is not enough for developing

my potentials, and helping me to find my career path. Hereby building up a
learning style and needs with continuously learning although I finished a
higher diploma, and that is why I go back to school for a bachelor degree
(Barker,1998; Hosseini, 2006).

22

A Financial Tsunami occurred in year of 2008. Luckily, I worked at Walts

Disney World at EPCOT Centre in America, but the world of economy was
turning down. When I came back to Hong Kong, the economy was still weak,
until now it does not recover completely at all. Moreover, the main effect was
that there was higher unemployment rates around the world, for a lot of
companies were cutting down their budget for surviving on that worst economy.
It looks as if lifelong learning can increase individuals employment chances. It
can also increase the competitiveness of individuals in labor market.

To make a good progress in my career path in the future, I have already

planned for a further education after this bachelor degree. In view of the
comment of my family and friends, even though I am not such a person doing
well in my studying, I will proceed with a master degree in future for increasing
my competitiveness.

According to the comments of my family and friends, they would like to

suggest me doing some kind of job like customer services officer. Moreover,
from the result of VARK, I am a Kinesthetic, which means I can do better on
real situation. Besides, I am an outgoing person from the result of MBTI.

Go through my two years working experiences that I have learned and

enhanced my people skills, communication skills and problems solving skills.
However, the economic burden is the most concern and affecting my further
education and here is my plan for my study in the future (Table A3).

23

My lifelong planning Timetable

Table A3: My lifelong planning Timetable
Time

Types of lifelong learning

Finished the

Starting to work

Reasons

Bachelor

Saving money for

further study

Degree

Enhance the
working experience

Starting in

Taking some language

Improve English

the year of

courses, such as

Enhance the

2011- the

English

competitiveness

year of 2013
Year of 2017

Master degree (part

to

time)

2018/2019

Getting more
challenging posts
at work

As a reason of it, I would prefer learning and working simultaneously. Even

through, I had two years working experiences at Walt Disney World and Bank
of China Credit Card Centre. I still need to enhance my employability in
hospitality industry under this worst economy.

Actually, working is a part of learning, which brings me some kind of

knowledge that cannot be found in the books. Brenda Little and ESECT
colleagues (2004) pointed out that the work-based learning, which means
people learn from doing a job or on their workplace role, so on I can learn from
my work. On the other hand, I can save money through working for further

24

study for the master degree. From my working experience, I realized that
language is the most important rather than academic background in hospitality
industry. Nowadays, English is the principal language, which is an
international language and many countries are using it, including Hong Kong,
USA and UK (Femandez, 2008). Therefore, language learning, especially
learning English is the main part of this lifelong learning for me.

2.2

Transferable skills

An article from University of Southern California Career Planning & Placement

Center stated that transferable skill is a developed technical skill related to
new opportunities. The transferable skills can also be common skills or
characteristic of graduation, which are included in some kind of aspects, such
as learning, work attributes, interpersonal skills and self-direction (Kearns,
2001).

Nevertheless, I have learned above-mentioned skills through my studying and

working respectively. Especially, when I studied in higher diploma, bachelor
degree in University of Northumbria, and worked in Bank of China (BOC)
Credit Card Centre and Walts Disney World (WDW) at EPCOT Center. In fact,
I have learned some kind of interpersonal skills, such as communication skills,
which help to engage in working with people. Because of face to face with
each other in different time at different place throughout our life, no matter
where I am, studying, working or even in playing, I need to communicate with
others.

Besides, I practiced a lot about communication skills with my classmates in my

25

school life, due there were many group projects. On the other hand, we all
need to think about how to process our projects, homework and life skills, and
thats aroused us to think before we start to do something every time.

From the view of both sides, studying and working, I learned reflective thinking
which is a process reviewing, thinking about the products, services we create
and how to ends of those things. It also means how to get those ends and
projecting.

In addition, through planning for the learning we can control and manage,
contextualizing and understand (Yancey, 2001). Moreover, I believe in
adaptability is other important thing every time in every place. For example I
graduated from Hong Kong Institute of Vocational Education (IVE) in 2008, but
now I had to adapt to this school life again after working 2 years.

Adapting to living in a new environment or a new working place or a new stage

of life, it is all we need to do in our life. Meanwhile, I had learned about my
innovation at that time, what we have before us are some breathtaking
opportunities disguised as insoluble problems. quoted by John W. Gardner in
Gorman (2007). And in Gorman (2007) pointed out that every innovation
solves a problem. During the menu operations in IVE, I had to create a whole
menu with my group members, and manage the menu as well as we could.
We had to plan, design and present it to our tutors and classmates, and
running it with each others. In the presence of all that time, I got a chance to be
an entrepreneur in the simulate restaurant in IVE throughout three years in the
school time of higher diploma.

26

In the time of bachelor degree, this status is different from the school life
before. I had to learn by myself more than dependent on tutors, I need to find
learning sources for each subject. At that time I had to think of those problems
and find out the answer by myself first rather than asking the professors at the
beginning, and this is self-learning skills, which urges me to take my
responsibility for my own learning. So that I can develop my attitudes, habits
and skills for motivating my lifelong learning and it becomes the process of my
lifelong learning (Berry, DiPiazza, and Sauer 2003).

Secondly, through my working experiences in Hong Kong Jockey Club, BOC

credit card centre or WDW, it taught me some things like a work readiness and
work habits. I had to prepare for a working heart when I finished my school life
that is obviously different from studying. The most different is that you do not
need to do any homework but you have to face up a great deal of interpersonal
relationship at work than in the period of studying.

Moreover, some working habits were built up on, such as punctuality. Once
you are late you may get troubles from your supervisor, so it is very different
situation than studying. At the same time, I had tried to personally master for
making improvement, even at working or studying, I always do the same thing,
and it seems that this way can help me to arrive at other stage of life.

1.2 Justify chosen career choice

Finally, I can accord with the above information about personal tests, analysis
of my lifelong and transferable skills, which can give me the following
information for me to understand myself more. I would prefer my jobs related

27

to customer service, and its job requirements are all about communication and
problem solving skills.

Before that, I had a career indecision (Germeijs and Boeck, 2003) problem
during the school time. For that career irresolution, which is related what
intraindividual variation change through many empirically at work or in life,
such as my personality features: team workers, kinesthetic, self-awareness
(Leong & Chervinko, 1996) and my disquietude (Fuqua, Newman & Seaworth,
1988) were positively linked with my career indecision.

In fact, I got some cues from those personal tests, analysis of my lifelong and
transferable skill and comments of my family and friends. This is a direction
given to me by them for understanding about my personality, strength and
weaknesses (see the above table 4). However, I believe I can choose a job
related to communicate with guests, such as server, customer relations, front
desk etc. and it seems that I can make a success through this.

According to the requirement of those jobs, it needs a career self-efficacy

belief (Taylor and Betz, 1983) first. According to my personal test result, I am
an outgoing people and well teamwork. In addition, I can do better in each
practice, due I am a Kinesthetic people, and those job tasks need a well
communication skill, problem-solving skills when facing guests, and I learn
relatively skills in my working experience. One more point I have
self-independent learning and career self-efficacy belief (Taylor and Betz,
1983), learning more about technical skills by myself and believe I will do
better than before.

28

When I believe I can handle it, my strength can be fully utilized by myself as
well. Although I have language and lack of working experiences problems, I
believe I can through my lifelong learning, improve it in order to establish my
walk of fame in my career. From the view of below Table A4, it showed that my
strengths, such as transferable skill and education background, could help me
facing the future. At the same time, there are many opportunities for me to
develop my career path with my strengths.
Table A4: SWOT analysis
SWOT Analysis
Strengths

Weaknesses

1.

Qualifications(Bachelor Degree)

1.

Lack of working experiences

2.

Good learning preference of

2.

Language improvement (such as

Kinesthetic
3.

English)

Transferable skills (such as

communication, problem-solving,
teamwork and self-learning skills)

Opportunities

Threats

1.

1.

Hospitality Industry is well

developed by HKSAR in this
coming year (such as a cruises

2.

Great competitive of labor market

in Hospitality Industry

2.

Hong Kong need to face of a

jetty in 2013 at Kai Tak (Appendix

great deal of competitive (such as

E))

Singapore, USA)

Lots of hotel will be built up within

this few years and will offer a lot
of jobs

50

Section B
Part 1 Introduction
1.1 Reason for choice of topic
The writer selected the topic of Customer Relationship Management (CRM) in
Walt Disney Theme Park because of it is so appreciate the implementation of
customer relationship management (CRM) in the theme park. Customer
Relationship Management (CRM) was commonly used in academics and
business in the recent years. Moreover, it studied and analyzed with the
purpose of understanding this domain better by many literatures (Bose, 2002;
Bull, 2003; Zablah, Bellenger and Johnston, 2004).

In the article of Linetsky (2007), it mentioned Walt Disney operated his life and
his business with a clear purpose and vision. He built up the basic concept of
CRM in the theme park, which is a place for people, especially children. In his
concept of operating business by using the CRM strategies, such as knowing
the customers values, thus making a change for it.

Throughout Walts leadership, it showed that he was good at communicate

and influence others. The key element in the Walts leadership and the
customer relationship management is that he made decision and behaved
with confidence in those actions or strategies, which were proper to develop a
long-term business (Linetsky, 2007).

When Walt started to run his company, he desired to create an excellent

customer experiences as the root of the Disney corporate. Moreover, he used

51

fashions to achieve this goal at the beginning, such as uniform, special

environment. Walt believed if they exceed in fulfilling customer expectation
they would got a reward with loyalty from customers, even though it is very
hard to satisfy all different kind of customers (Linetsky, 2007).

According to Linetsky (2007), the theme park of Walt Disney corporate was
begun with a technical and productive environment based on human
interaction. With this design in a working place, it can help to create a more
efficient and effective connection with customers.

The atmosphere of a work place was created with fun and filled with good
humor and internal friendliness. To use an idea of it, respecting people is an
aim conceptual and it was a key objective of the Disneyland from the
beginning. Furthermore, Walt though about the importance learning
environment for employees, and in order to enhance the unique service skills
of those cast-members, he opened the Disney University after the opening of
the Disneyland (Linetsky, 2007).

1.2 Academic Objectives of Project

The aims and objectives of this academic project of finding out the customer
relationship management (CRM) in Walt Disney Theme Park:

To discuss the benefits of using CRM strategies in Walt Disneyland; and

To show how the Walt Disney Theme Park implement CRM strategies.

52

1.3 Outline of Sections

At the beginning of section B, the paper separated into three main bodies,
Section 1, Introduction, Section 2,Setting the Scene and Section
3,Literatures Review. All of these will surround Customer Relationship
Management (CRM).

Section 1, includes the reasons for choosing the topic of Customer

Relationship Management Strategies in Walt Disney Theme Park.
Furthermore, it will state the academic objectives of this professional project to
address the knowledge background of Walt Disney Theme Park.

Section 2, will introduce the background of Walt Disney Theme Park briefly, to
know more about the character of theme park. Finally, in Section 3, it will talk
about what kind of the benefits CRM will bring to the Walt Disney. Last but not
least, this paper will include what kinds of CRM strategies are being used by
Walt Disney Theme Park throughout the literatures. In conclusion, this paper
will summarize those with Literature review in the end.

53

Part 2 Setting the Scene

2.1 The Walt Disney Theme Park Background
In this thesis, Pearce (1988) agreed that theme park is the motivators and it
support of other services to enable and attract tourists to visit and for the
purpose of optimizing tourists visit experiences.

There are many literatures about The Walt Disney Theme Park, therefore
some definitions and characteristics of the products of Walt Disney Company
are the general term visitor attractions, such as its park and resorts, Disney
channel, are most effectively using the CRM (Pearce, 1988).

Walt Disney Theme Park created an entirely new. On the other hand, the
company infinitely creates a unique path on televised space, enhancing
characterizes daily life for people in physical world (Sorkin, 1948).

Middleton (1988) claimed the visitor attractions as a controlling and managing

permanent resource that is designated for enjoyment, entertainment and
education.

54

Part 3 Literature Review

3.1 Definition & Conceptualization of CRM
Customer relationship management (CRM) is a system using a customer
database or knowledge to deliver relevant products or services to customers
(Levine, 2000).

In fact, there are different definitions about CRM from many literatures. Most of
them pointed out that CRM is a strategy that supports an organization to
process their decision making for retaining a long-term and profitable
relationship with their consumers (Jackson, 2005).

Massey, Montoya-Weiss and Holcom (2001) believes that within a period of

time, customer relationship management (CRM) can tempt, establish,
maintain and reserve profitable customers, while in Boulding et al. (2005) and
Payne and Frow (2005) mentioned CRM is talking about how the organization
to make profits from their consumers through marketing practitioner and
academics.

However, Payne and Frow (2006) may develop the best definition of CRM.
They believed that CRM is a strategy concerning with rising those
shareholders value become the company has a long-term relationship with
those target customers.

In Heskett et al. (1994), he stated the service profit chain (SPC) Model showed
in the below figure, which illuminates CRM create value to all customers,
employees and shareholders by serving.

55

Figure 5: The Service Profit

Source from Ralph and Merlin 2005

CRM begins as a manageable basic premise strategic of an organization, and

it is not a new topic for any organization, most of companies will carry it when
the business is started, also it is a way that make an organization to survive
(Rust, Zeithaml and Lemon, 2000; Blattberg, Getz and Thomas, 2001).
Figure 6: Usage Rates of Management Tools in 2004

Source from Bain and Company (2005)

56

The numerical analysis showed the customer relationship management tool is

commonly used for 6 years ago.

CRM concept is building relationship in several different domains, such as

market focus and market-based learning, and those concepts were developed
to understand the needs and the wants of customers (Day, 1994; Vorhies and
Morgan, 2005).

The goal of CRM is to lead the business processes and customer strategies
for long-term customer loyalty and profitability (Rigby et al., 2002). Also
Massey, Montoya-Weiss and Holcom (2001) believes that an organization is
using CRM to fascinate, develop, maintain and preserve customers within a
long-term between the trades occurred in company and consumers.

3.2 Components of CRM

The general explained about CRM components by some of researches and
literatures. It consists of three major components: technology, people and
business process. On the other hand, a relatively of successful of CRM is
influenced by those three major components (Chen and Poppvich, 2003;
Plakoyiannaki and Tzokas, 2002).

3.2.1 Technology
Technology is talking about a hospitality company collecting, organizing,
saving and using customers data by computing. This is a system for CRM to
achieve their objective of collecting, classifying and saving data on customers.
It helps organization to develop a better relationship with customers by

57

understanding the customer behavior (Teo, Devadoss and Pan, 2006).

CRM technology is also about linking the function of front office and back office,
to regard as a channel for enhancing the relationship between company and
customers (Fickel, 1999). Figure 7 showed the relationship between
customers and front and back offices operations.

For example, in Disney Theme park, they would like to use some kind of
technique for handling their large customers data, Pal Mickey, which is a
technology guide for those customers children, when they are travelling
around the park it can speak to the child what they are going on with little tips
and in sighting (Boyles, 2006).

Figure 7: CRM Applications, supported by ERP/data warehouse, link front and

back office functions

Sources from Chen and Popovich (2003)

58

3.2.2 People
People are the important role in CRM component. Moreover, this includes
employees. Nevertheless, a complete engagement of the employees with
organization and its management are vital showing the effective CRM
implementation for providing the best service and satisfying the needs of
customers (Chen and Popovich, 2003).

Chen and Popovich (2003) also mentioned that the implementation of CRM
needs every employee to participate and understand the purpose and the
change of the CRM. The participation of employees can help re-engineer the
business that use customer as a core. Therefore, the right employees should
be placed on the right position, which means some of them will be made a
notable changing on their job position, and that can lead the employees
experience and get knowledge about customers, that will improve processes
in CRM (Stringfellow, Nie and Bowen, 2004).

From the view of recent, Bligh and Douglas (2004) mentioned that the
involvement of the top management of the organization is the key issue for
implementing CRM successfully.

In CRM, transferring customer information is necessary, but it will be reliance

on human processes in CRM. However, employees are the most important
whom cope with customers relationship throughout the organization, and they
can make closely relationship with customers (Chen and Popovich, 2003).

Stringfellow, Nie and Bowen (2004) pointed that those employees need to be

59

trained for enhancing their skills and knowledge, which can help to collect
large information when serving customers.

3.2.3 Business Process

In the business process, most of firms need to target their target market or
segment, then adjusting their products and marketing goal to fit their target
customers requirements. In this contemporary, the firms need to clarify a
smaller and smaller segment when they need those customers accept those
different preference of products and services (Chen and Popovich, 2003).

Nowadays, those hospitality firms would like to understand customers

behavior for making tailor made products to maximize the customer value.
(Reichheld,1996a & b).
Figure 8: A CRM Implementation Model

Source from Chen and Popovich (2003)

From the above Figure 8, the CRM implementation model that coordinated
three main issues, which are people, process and technology within four

60

contexts.

As example of Walt Disney Corporate, its theme parks are very attractive type
of tourism destination. Moreover, theme park is precisely providing a place
including people for working, processing the business and usage in
technology (see the Figure 9) (Inskeep, 1988).
Figure 9: Theme park planning components

Source from Inskeep (1988)

In addition, it is a place providing shopping, entertainment and dining by Walt

Disney satisfying customers want and needs. For example, they can know
those customers buying behavior and diet habits through their customers
data collecting service for implementing their CRM (Boyles, 2006; Sorkin,
1992).

61

CRM can be succeeded in main four critical factors that are preparedness
assessment, changing management, measurement and employee obligation
(Payne and Frow, 2005).

For example, Boyles (2006) mentioned that in Disney they would collect all
information from their customers when they were planning to visit there. In
order to providing some kind of relevant services to their customers, CRM is a
necessary technique and unique opportunity for them providing acquired
relevant information to their guests, before, during and after their visit.
He also stated about the call center in Disney and Disneys website, which is
collecting all customers information.

Due those guests will excite about their vocation in Disney, they would like to
get more about some information about their favorite characters in Disneyland
before they arrive in the park. It is an interacting between the company and the
guests, when those customers provide information to the relevant department
of the company.

Boyles (2006) stated that the challenges in Disney are about getting
information in accurately and timely smarter and smarter before the guest
arrive. Meanwhile, they had to be smarter and quicker for deciding when to or
not to apply the CRM for their customers. However, it may arouse intrusive
feeling from the customers when they plan for helping those guests when,
where, how much that they would like to spend for on the land.

62

3.3 Benefits of Customer Relationship Management (CRM)

3.3.1 Customer loyalty
Customer Loyalty can be a fundamental component of CRM strategy, because
organizations need to rank those target customers for identifying what the
most valuable service should be provided for different customers (Haley and
Watson, 2002).

Loyalty customers can lead the organization gain the most profitable, due to
the cost of serving them is less, and they are usually willing to pay more or use
some kind of expensive services than others, at the same time they can help
for attracting more new business through the word-of-mouth from them
(Reinartz and Kumar, 2002).

Customer loyalty defined in two aspects, which are behavioral loyalty and
attitudinal loyalty, and sometimes it will combine. Behavioral loyalty is talking
about the volume and frequency of purchasing, that means repeat purchase
(Reinartz and Kumar, 2002).

Moreover, attitudinal loyalty measured the attitude of service providers loyalty

(Riley et al., 2001; Backman and Crompton, 1991; Guest, 1942; Day, 1969;
Pritchard and Howard, 1997). There are some researches suggesting
incorporating a two-dimensional, behavior and attitude for defining loyalty,
which helps to lead to identify truly loyal customer (Day, 1969; Pritchard and
Howard, 1997).

63

Figure 10: A Typology of Service Loyalty

Source from Pritchard and Howard (1997)

Pritchard and Howard (1997) developed a loyalty matrix (see the Figure 10). It
showed the segment customer by degree of loyalty on the above figure.

3.3.1.1

Lifetime Value to quantify the value of Customer Loyalty

Lifetime value (LTV) usually has been used to measure the quantity value of
customer loyalty. It is a function about the customers lifetime duration model,
for evaluating the lifetime profits of each customer.

However, LTV showed that all customers are profitable for the company, and
they should be treated at same equivalent treatment (Shoemaker and Lewis,
1999). Besides, an organization should consider distributing the value to each
customer individually through service or activity encounters (Storbacka, 1994;
Cokins, Stratton and Helbling 1993; Noone and Griffin, 1999).

Walt Disney Theme Park, in order to satisfy different customers needs offer
different kind of products, especially Theme Park is a sunrise industry in
hospitality (The Walt Disney Company, 2007). Reinartz and Kuman (2002)
advocated the customer segment into four categories, true friends, barnacles,

64

butterflies and strangers respectively (see Figure 11). In addition, its

advantage to identify those target customer appropriately base on lifetime
duration.

In Figure 11, the true friends have long-term benefits between the company
and its customers. Walt Disney Theme Park continuously endeavors for
building a True Loyalty for their customers. They would like to make a
pre-arrival communication before the guests arrive at Disney. Moreover, they
utilize web service. Those customers can use the services on the net through
Disneys website, which is called My Disney Vocation folder, for providing a
customized service with customers favorite attractions in the park maps to
guests (Boyles, 2006).
Figure 11: Choosing a CRM Strategy

Source from Reinartz and Kumar (2002)

65

3.3.2 Others
CRM not only bring the two benefits mentioned above, but also other benefits
in each industry. Here are some key benefits listed below.

Cross-Selling

CRM helps an organization to use some of information from their customers

databases to achieve loyalty with customers and it can cross-sell a new
product or services to existing customers easier (Foss and Stone, 2001).

Long-term relationship

Roh, Ahn and Han ( 2005 ) believed that when implementing CRM, it can
create a better relationship between the organization and customers, for
achieving customer retention and getting an actual payback, such as profits. In
other words, it can increase the companys revenue and reduce the operating
cost for attracting new customers

Thus, customers can gain a high quality of product or service and unique by
organization, such as handling their information in accuracy and carefulness,
correcting in efficiency and meanwhile can be helpful and friendly of personnel
(Zineldin, 2005). Leaders of an organization set CRM and they monitor CRM
with the external environment of an organization. It is easier for them
implementing and controlling the vision or strategic better, became as a leader
of the top management team in the organization, they have power to influence
the authorization and control the budget (Pinto and Slevin, 1987).

66

3.4 CRM Strategies being used by Walt Disney Corporate

3.4.1 Understanding the importance of Customer Value & Customer
Behavior
3.4.1.1

Customer Value

Figure 12: Customer Value ratio

Source from Christopher (1996)

From the above Figure 12 of Christopher (1996), customer value is about the
consumers perceptions which bring a benefit greater than the costs of
ownership, and then we can make a profit at the end.

From Brand Value to Customer Value

Lots of literatures have been written about the change of the nature of brand
loyalty. It is talking about the private label products rising their competitive with
those traditional brands, and it is about the brand of an organization to take
over the individual brand (Barwise and Robertson, 1992; Aaker, 1991; Glmet
and Mira, 1993).

King (1973) pointed out that the brand may not give a deeply impression to
customers at the first time. King (1973) stated that brand value is talking
about how to make the brand to be a specific character for standing in the
world, then it must have a difference between others, it is unique. However,
the band value will be as a tangible product to consumers. The concept of
brand value is needed to extension and also needed to a wider concept of
customer value, due customer value recognized how an organization to be

67

successful in this great competitive market.

To extend in meaning of an organization not only invests in the brand

continuously but also need to invest in customer (King 1973). From the article
of Developing the cloud (Deloitte Consulting LLP, 2008) pointed out that the
Disneyland succeeds in using Mickey Mouse as its image, tracking where and
when this appears is critical to associate with Disney.

According the concept of Ramsey (2003), he suggested that Customer is one

of most important in CRM strategies need to be aware of by organization. In
order to identify what products or services that will be served by organizations,
they have to set their target customers before implementing CRM. Moreover,
the followings are three main customer types by (Best, 1997):

Type 1 Mass Customization

This strategic is focus on the target customers who are willing to pay more for
extra benefits. The core means of this strategic is producing a product with
customers and it based on their wants/demands/needs and price. In the view
from mass customization, it is a strategy trying to satisfy every consumer. It is
concerning a philosophy of CRM, in Hagen, Manning and Souza (1999), and
he mentioned that it is convenient to customers.

In the Disneyland Kingdom (2010), it stated that the theme park offered a
highly customizable layout, and providing all different kind of fun and
recreation for all ages.

68

Type 2 Differentiated Customization

Refer to Prahalad and Ramaswamy (2004), this sector stated that respects to
provide a varied need of customer and combines the completely marketing
mix in order to take care of every consumers needs to produce tailor-make
products, services, ways of distribution and communication. Therefore, to
create a unique value by a customer and an organization together
constructively, this value provided one way by the firm, and it created a close
relation between consumers and organization.

According to present and CRM strategies to segment the customer market,

and make decision about how much that need to invest to each target market
(Figure 13). As far as the theme park is concerned, it provides call centre, and
website. Customers can get any information through the web or call centre,
also those services are included travelling plan. It can help customers to
decide the plan according to their budget, when to visit the park (Boyles,
2006).
Figure 13: The Intensity of a market care in relation to current and strategic
customer value

Source from Best (1997)

69

3.4.1.2

Customer Behavior

Customer behavior is comprehensive with many aspects and some activities

were held for satisfying customer perception and establishing long-term
relationship with the organization. There are three aspects relevant to it,
service quality, market-oriented culture and perceived organizational support
(Chen and Chen, 2010).

Customer behavior indicated that employees try to help the customers solve
problems. Many literatures proved that this kind of behavior was positively
related to customer satisfaction, service quality perception, loyalty and sales
performance (Bitner, Booms and Tetreault, 1990; Keaveney, 1995; Kelley,
Hoffman and David, 1993; Parasuraman, Zeithaml and Berry, 1988).

A customers perception is measured by a quality service (Parasuraman,

Zeithaml and Berry, 1988). Customer behavior has been emphasized by some
marketing literature that when the service connection is occurred, employees
are willing to providing extra efforts, extra care or even some of voluntary
services to further obtain consumers for their satisfaction and gain a positive
feedback from those consumers (Bitner, Booms and Tetreault, 1990).

In addition, it helps for steadying concentration of buying power in the market

of many markets, such as in the theme park. However, that can lead to a
survival issue (The Economist, 1993).

Woodside and Lysonski (1989) presented that the characteristics of tourist

included their income, age, lifestyle and previous travel experience. In the Walt

70

Disney Corporate, its Disney theme park has many successful brightening
attractions, such as animation (PC.Disney.URL).

Service (1997) pointed out that those guests visit at Disney theme park with a
family size, and they spend for two and a half years in the Disney theme park.
However, the service goal of Disney is creating a happiness place and
providing a lovely entertainment for people of all of ages throughout the world.

3.4.2 Information Technology of CRM

Buhalis (1998) pointed out that ITs attempts to maximize consumer loyalty,
through the win-win situation between organization and consumers. Both of
them can get information directly from the Web, consumers can recognize,
purchase, and compare those suitable products and service for satisfying their
needs.

Several literature researches show that technology can affect the consumers
in decision-making in hospitality products. Jonas (2001) mentioned that most
of the searchers can be satisfied with those information they found on the Web.
This behavior based on reason. The operators ensure that the websites are
providing accurate and up-to-date information for the visitors needs and
perception.

Card, Chen and Shu (2003) did an investigation about the purchasing
behavior. They pointed out that around 85% people will shop on the Internet,
such as airline tickets, accommodation, travel packages etc. In addition, the
result showed that there are no differences between the consumers or

71

non-consumers through shopping on the network, due all of them will seek
information from the Internet.

Nevertheless, the layout design of website is also influencing the perception of

consumers. In Dub, Bel and Sears (2003), the website can strengthen the
hospitality products with visual pleasures, and it can enhance a sensual and
emotional experience. As a consumer, most of them would like to get the
cheapest and highest quality products, and that is why they search throughout
the Web (OConnor, 2003).

PC.Disney.URL is the website of Disney, and Boyles (2006) introduced that

those guest can make a reservation on the Web from the Disney, and they can
provide a tailor-made travelling plan to them. Some literatures emphasized
that CRM, it is importance to combine business process with technology, and
IT can understand customers from their perceptions (Chen and Popvich,
2003).

A number of hospitality companies including theme park, cruises, and airline

have invested in CRM systems and data warehouse technology to provide
central container for customer data and data mining capabilities, in order to
achieve the goal of targeted marketing and built up a well communications with
customers (Inge, 2001; Songini, 2001; Terrero, 2002).

3.4.2.1

Pal Mickey

In Appendix F, the article of a case study: Walt Disney World Resorts and CRM
Strategy. It was talking about the implementation of CRM in Walt Disney World

72

Resort, which showed the revenue of Disneyland decreasing from year to year.
In order to improve this, Disneyland starts to use technology, such as a doll,
that can speak and is called Pal Mickey. It can act as a tour guide and talk
about a corny joke or keeping kind entertained for reminding customers of the
Disney brand-Mickey. It can act as a tool to loyal customers.

In addition, C.K. Prahalad, a spokesman from Disney, who said that Disney is
a place trying to experiment customer strategy, and that it exceeds todays
CRM, due it is not only involving a data but also in the contextual relation of
individual customer behavior.

Moreover, Boyles (2006) mentioned that customers can get any help from
Disneyland of their visit in real time through their technology products, such as
Pal Mickey, a cell phone or a PDA. For example, those products can give a
sign or alert at the time of those attractions that are interested by those
customers, and it gives an opportunity to implement CRM.

3.4.2.2

Benefits of Information Technology

There are some benefits for usage of technology in hospitality, and the
technology is an innovative in hospitality commonly from Chen and Popovich
(2003), and it was shown in the below Table 5.

From the following Table 5, it shows some of the benefits of using IT of CRM,
due that information can be shared between the front desk and the back office,
and then it can innovate technology.

73

Table 5: IT CRM Benefits

Customer data sharing between the

CRM innovative technology

front of the house and back of the

house
1. Can provide a superior level of

1. Help to integrate the relationship

service
2. Have a chance for up-selling or

between customer and supplier

2. CRM help to measure and

cross-selling

analyze common and unique

3. To know well about customers

habits and preferences via

customer patterns via technology

3. Technology enhances customers

information
4. Coordinate and complete view of

self-service and internet

applications capability

customer
5. Make the call centre or service
center to be more efficient

3.4.3 Revenue Management

Many literatures have advocated integrating customer relationship
management (CRM) and revenue management (RM) (Dickinson, 2001; Jonas,
2001; Belobaba, 2002; Lieberman, 2002).

Even though most of hospitality organizations are starting to implement CRM,

it will lead people to consider about using RM into the impact of CRM.
Revenue management has two aspects, duration control and demand-based
pricing (Kimes, 1989; Kimes and Chase, 1998; Kimes et al., 1998). The

74

traditional RM usage is for forecasting the demand of those temporary

customers rate and inventory. Besides, it is a model for specifying the value or
the characters of the customers (Karadjov and Homick, 2000). From the view
of Reinartz and Kumar (2002), they stated that the basic of customer-centric
RM strategies (Hoang, 2007) are for matching different types of customer (see
Figure 14).

In the below Figure 14, it showed the Strangers, Reinartz and Kumar (2002)
suggested that using a traditional RM to serve these customers, and nil any
investment would promote to this segment. Nevertheless, Barnacles is
long-term and low profit, and the organization can invest more in Barnacles
into True Friends. Concerning for the True Friends, each organization will
put most money in, and it can lead segment customers to be loyal to an
organization by attitudinal and behavioral.
Figure 14: Segment-Based RM strategies

Source from Reinartz and Kumar (2002)

A Director of Decision Science for Revenue Management at Walt Disney

World, Hoang (2007) mentioned about some of the limitation of using

75

traditional RM would overlook these substitute products, and depend on the

customers changes for fitting the products even through the products did not
meet customers needs and wants.

Hoang (2007) also stated that in the future not only customization is important,
but also the organizations should be relied on customer-centric revenue
management. That means the organizations should forecast the demand and
behavior based on customers data with more sophisticated system for
creating a long-term benefits to the company.

Moreover, Hoang (2007) pointed out that overpricing gain a short-term profit
only, and it will decrease the return businesses ratio in the long-term. For
example, in the article of case study: Walt Disney World Resorts and CRM
Strategy (Appendix F), it coded a case about the guest unsatisfied with the
higher price of Disneyland, and Disney Theme Park tried to improve their
service, such as introducing more technology, for matching the price of ticket.

3.5 Avoiding the Failures of CRM

CRM is a critical value to maintain a long-term relationship with customers,
due it includes a concept of service quality. To retain and repeat businesses
based on that positive differentiated customer experience, which is the key
element for business success. Such as Walt Disneyland, this agreed that it is a
place running beyond service into an excellent experience to customers
(PURCREA and PAULA RAIU, 2009). In the view of Disneyland, they try to
avoid the following failure for implementing their successful CRM strategies.

76

Figure 15: Leading CRM Risk Factors

Source from Bligh and Douglas (2004)

From the above Figure 15, it demonstrates the most common reasons for
failure.

There are lots of arguments about the failure of CRM systems, such as in Day
(2000) mentioned that the main reason for CRM failure is the lack of a
strategic planning before implementing of CRM. Maselli (2001) stated that the
main point of failure of many CRM initiatives ranged from technological
implementation problems to a lack of organizational integration and customer
orientation.

Moreover, Jain, Jain and Dhar (2007) and Kale (2004) believed that the
failures are about the poor complementing, planning and measurement of
CRM. Besides, the organization was targeting the wrong customers with
out-of-the date information, unclear goals, improper selection and usage of
technology. They also pointed out that those people may not work together,
and lead the processes and usage of wrong prosody and incorrect

77

measurement approaches in managing CRM.

In the article of case study: Walt Disney World Resorts and CRM Strategy
(Appendix F), the guest, Jeff Pawlowski complained about the service was not
caught up with the price of ticket in Magic Kingdom, one of the oldest theme
part in Walt Disney Worlds from Orlando. In this article, he complained that he
needed to wait for a long time in queue line. From that result, the top
management of Disney theme park, they knew what the weakness was, and
trying to improve it and enhance to use technology for getting well
communication with guests, and knowing more about their needs and wants,
such as Pal Mickey, Disneys website etc.

78

Part 4 Summary and Conclusions

This paper is about the implementation of customer relationship management
(CRM) strategic in Walt Disney Theme Park. CRM is difficult to define. There
are many different definitions of CRM from many literatures. Some of them
pointed out that CRM is a strategy supporting an organization to gain and
retain a long-term relationship with customers (Jackson, 2005). In addition,
some of them stated that CRM is a profitability strategy (Rigby et al., 2002).

Moreover, some of CRM strategies used in theme park throughout this paper,
such as information technology, customizations, revenue management and
understanding the importance of customer value and customer behavior. As
known to all, website is one of the most popular information technologies, and
it helps or affects customer loyalty, decision-making in hospitality products
(Jonas, 2001; Buhalis, 1998). Customization has two types, mass
personalization and differentiated customization in this paper and it shows that
Disney theme park uses highly customization to treat their customers by
different types of products, website, call centre and customizable layout
(Disneyland Kingdom, 2010; Boyles, 2006).

Besides, Disney theme park relied on customer-centric revenue management

to forecast the demand and behavior on the basic of customers data to create
a long-term relationship with them (Hoang, 2007). Before implementing the
CRM strategies, Disney Theme Park tried to understand the customer value
and behavior, their utilized their brand, Mickey Mouse (Deloitte Consulting LLP,
2008), and it makes a deep impression to their target customers. In order to

79

extend the life time duration, Disney Theme Park provided reservation
services through website that built up a channel for understanding the needs
and wants of customers (Boyles, 2006). In addition, Disney Theme Park
understood that comprehensive activities, such as animation, help for
developing a long-term relationship with customers.

In Theme park, developing recent CRM strategy is very important (

Bain & Company, 2005; Bose, 2002; Bull, 2003; Zablah, Bellenger and
Johnston 2004). This paper explained about the benefits of using CRM
strategies in Walt Disney Theme Park, which collects, evaluates and analyzes
customers data throughout the park. Due they want to satisfy all different
customers need, also interacting and establishing a long-term relationship
with them (Rigby et al., 2002).

However, this paper also shows the implementations of CRM strategies in the
Disney theme park, covering three main areas: information technology,
revenue management and customization (Boyles, 2006). Before processing
those strategies, the aim of the company is to establish a sound understanding
of the customer value and customer behavior (Linetsky, 2007). Moreover, it is
the key issue for implementing CRM successfully, and it can help the
organization to develop more competitive advantage decisions.

It shows CRM strategy can help Walt Disney Theme Park develop a
communication channel and enhance the competitiveness, implementing
CRM strategy can help to fulfill all different kind of needs, requirements and
purchasing behavior to all segmentations, and it provide a current or potential

80

benefits to the company.

To conclude from it, from the view of Boyles (2006), he mentioned about the
future research in Disneyland, they would like to implement Disney-centric, a
customer-centric strategic, but they think CRM is not much like that at all.
Moreover, Boyles (2006) pointed out that Customer Managed Relationship
(CMR) is a strategic in marketing rather than CRM, besides, CMR is included
about how they customize and interact with guest throughout those cast
members personality, and they are giving a great experience to the guests
when they vacate in the Disneyland.

Due they want to keep this point, they would like to imply CMR, which can help
to connect and interact with guests, so that they will know the needs of every
customer. CMR will be a greatest focus idea in the Disney, and it may make
their guests to greater amount of control in the relationship that was built up
with them (Boyles, 2006).

Moreover, the topic of CMR (Boyles, 2006) may be worthy for studying in the
future, it may replace CRM, but what the features are and benefits will bring in
throughout implementing CMR in an organization? Moreover, the relationship
between CMR and CRM may overlap, and it needs to do some kind of search
in the further future.

81

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Appendixes
(Appendix D - Appendix F)

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Appendix D
Chart of labor force by Age Group

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Appendix E
Article of Hong Kong 2004, Travel
and Tourism
Tourism Infrastructure, Facilities and Products

In December 1999, the Government and The Walt Disney Company announced
the development of Hong Kong Disneyland Phase 1 at Penny's Bay on Lantau Island.
The world-class theme park the first in China targeted to open on September
12, 2005, will strengthen Hong Kong's position as Asia's most popular city tourist
destination. Upon opening, it will occupy an area of 126 hectares, comprising a
Disney park with four different theme areas, two Disney-themed hotels with 1 000
rooms, as well as retail, dining and entertainment facilities. In its first year of
operation, the number of theme park visitors is estimated at 5.6 million, rising to 10
million after about 15 years. The overall additional spending is expected to amount
to some $9.5 billion in Year 1, rising to $18.7 billion per annum in Year 20 and
beyond.
Beyond Disneyland, the Government is committed to building on Hong Kong's
attractiveness as a tourist destination through the development of major new tourist
attractions and the enhancement of existing facilities:

Construction of the Tung Chung Cable Car System linking Tung Chung and
Ngong Ping on Lantau Island by the franchisee of the system, MTR Corporation
Limited (MTRCL), commenced in December 2003. In addition, the MTRCL is also
developing 'The Village' in Ngong Ping to provide complementary facilities to
meet the needs of visitors to the area. By early 2006, visitors will be able to
enjoy a spectacular panoramic view of the South China Sea and the natural
scenery of Lantau during a 20-minute ride on the Cable Car System;

Construction of the heritage tourism development at the former Marine Police

Headquarters compound in Tsim Sha Tsui started in March 2004. This is the first
project in which the private sector has been involved to preserve, restore and

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convert historic buildings as a tourism-themed development to enable local

residents and visitors alike to appreciate Hong Kong's unique cultural heritage.
The successful bidder plans to turn the site into a heritage hotel, with food and
beverage outlets, and retail facilities. The project is expected to be completed in
2008;

Construction work on Phase 2 of the Hong Kong Wetland Park at Tin Shui Wai
scheduled for completion in early 2006 is proceeding smoothly. The park will
be Hong Kong's first major ecotourism facility. Upon the opening of Phase 2, the
park is expected to attract some 540 000 nature lovers a year to appreciate the
unique wetland habitat of Hong Kong;

The site work of the Heart Sutra Inscription Project, a large outdoor wood
inscription of a Chinese calligraphy masterpiece by renowned scholar Professor
Jao Tsung I featuring the Prajna Paramita Hrdaya Sutra started in September
2004. The wood inscription will be erected at a site at the foot of Lantau Peak,
near Ngong Ping and is targeted for completion in early 2005;

The Government commissioned a consultancy to examine the market demand

of the cruise industry as well as the need for cruise terminal facilities in the
medium to long term. The study confirmed the need to develop additional cruise
terminal facilities to meet the forecast demand, if Hong Kong wished to position
itself as a regional cruise hub. The Government is considering means to enable
the timely development of the new cruise terminal facilities;

The Government is also assisting Ocean Park in its long-term strategic review,
which will also help to map out the future development at the Aberdeen Harbour
tourism node surrounding the park;

A Symphony of Lights, a world-class multimedia light and sound show

combining interactive light on Hong Kong Island's key buildings and musical
effects, showcases the vibrancy and mesmerising night vista of Victoria
Harbour. Since its launch in January, the show has been very popular with both
the locals and visitors. This permanent tourism attraction will be enhanced and
become more spectacular by the end of 2005 when over 30 buildings on both
sides of the harbour are included in the show;

The Avenue of Stars, a new attraction opened on the Tsim Sha Tsui waterfront
in April, is designed to cater to visitors' interest in Hong Kong movies, and
honour the contribution by the industry's leading players to the film scene in
Hong Kong and worldwide. Visitors can see handprint plaques of well-known

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movie personalities past and present, sculptures and videos. Special lighting
effects are put on at night, when the avenue offers an ideal viewing point for A
Symphony of Lights;

A programme to develop tourism in the northern New Territories anchoring on

a pilot green project in the Plover Cove and Tolo Channel area and a study on
the development option for Tung Ping Chau is well underway. The programme is
based on the recommendations of a consultancy study and will be implemented
in stages. Relevant stakeholders will be consulted on the draft action plan for
the Plover Cove and Tolo Channel area and options for the holistic development
of Tung Ping Chau in 2005; and

As part of the Government's strategy to broadening the range of Hong Kong

tourism products, the Government has commissioned a consultancy to examine
the development of spa and resort facilities in Hong Kong. The study is expected
to be completed by the second quarter in 2005.

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Appendix F
Case Study of Walt Disney World
Resorts and CRM Strategy
Share
By CIOinsight
2003-12-01
Article Views: 89683
Article Rating:

/ 22

With sliding attendance rates and a brand that's losing its luster among the children of
the digital age, Walt Disney World is launching an ambitious, next-generation CRM
play that's based on mobile, real-time interfaces with customers. The goal: to redef

Sitting on a curb with their three children one humid afternoon in October inside Magic
Kingdom, the oldest of Walt Disney World's four Orlando theme parks, Jeff Pawlowski and his
wife were in a sour mood. Long lines demanded waits of as long as two hours at some rides
inside the 47-square-mile fantasy extravaganza, and the lines at the food stalls and
restaurants weren't much better. "Today has been the worst," Pawlowski complained. His wife
agreed: "Our neighbor came home from Disney on Friday and said there were no lines. We
came here on Saturday, and it's not what we expected."
The Pawlowskis aren't alone. Throughout the amusement park industry, long lines, fidgety
crowds and high ticket prices continue to rank as the top customer turnoffs. Meanwhile,
Disney's theme parks have been particularly hard hit by sliding attendance figures and
decreasing revenues. Bob Iger, Walt Disney Co.'s president and COO, told securities analysts
on Nov. 20 that the Parks & Resorts division took in $6.4 billion in revenues in the year ended
Sept.30, 1 percent less than 2002's $6.5 billion, which was already down 8 percent from 2001.
Iger blamed the sluggish performance on lower hotel occupancy rates and a further decline in
attendance, which had already fallen 14 percent, to 37.7 million, in 2002, from a peak of 43.2
million in 2000. Analysts say international visitors are staying away, thanks to the flat global
economy, rising anti-American sentiment and a continued fear of flying since the Sept. 11,
2001 terrorist attacks.

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Ticket prices aren't helping: They've risen 20 percent since 1998, and at $52 per person per
day, they're already at the psychological limit of what consumers are willing to spend for the
theme park experience, say some analysts. Disney has cut ticket prices by up to 42 percent in
some cases this year in an effort to drum up more business. That's stemmed some of the
attendance erosion, Disney executives say, but it hasn't done much to the division's operating
income, which fell 18 percent in fiscal 2003, to $957 million from $1.2 billion in fiscal 2002.
At the same time, Disney's costs continue to rise: Analysts say insurance premiums have
nearly doubled since the Sept. 11 terrorist attacks, and health care and pension costs for the
company's 54,000 employees in Orlando alone cost the company nearly $250 million in 2003.
Analysts also note that capital expenditures for the parks were down significantly in fiscal
2002. That's exactly the cost-conscious environment that prompted Roy Disney, nephew of
founder Walt Disney, to refer, in his Nov. 30 letter of resignation from the company's board of
directors, to "the timidity of [the company's] investments in our theme park business."
Clearly, the goal for now is to do more with less. And Walt Disney Co. CIO Roger Berry is at
the center of that mandatebut not for all the usual reasons. To help Disney usher in what
Disney Chairman Michael Eisner has called the company's "digital decade," Berry has been
helping to create a risky but cutting-edge technology strategy designed to help Walt Disney
World restore the luster of its aging brand, increase efficiencies and boost attendanceas
well as the bottom line. Berry's mission: to use Walt Disney World as a test bed for one of
corporate America's most ambitious tryouts of the business use of IT convergencethe
combination of global positioning satellites, smart sensors, wireless technology and mobile
devices, including one that looks like Mickey Mouse himselfto reinvent the customer
experience, influence visitor behavior and ease crowding throughout the parks. The goal: to
reduce the hassle for visitors to the park by creating a more personalized environment, with IT
at the core. "The role of IT is changing," says Berry. "It's not simply an organization that
deploys technology, but one that now integrates technology from a lot of different angles to
improve the customer experience."

Leading by the Nose

For now, the most visible manifestation of the new strategy is a 10 1/2-inch-tall stuffed doll
called Pal Mickey. With a powerful infrared sensor in its nose, the doll acts as a virtual tour
guide, providing tips on which rides have the shortest lines and information on events. How
does it work? A zipper in its fur conceals a central processing unit, an internal clock, small
speakers and a tiny infrared sensor. When the doll is carried into the park, the sensor receives

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a wireless data upload from one of the 500 infrared beacons concealed in park lampposts,
rooftops and bushes, which transmit information from a Disney data center. The signals let Pal
Mickey know that it's time to "tell you a secret," says Bruce Vaughn, who led the Disney R&D
team that developed the doll's prototype. When the doll receives a new piece of information
from a nearby beacon, it giggles and vibrates to indicate that it has something new to say.
Squeeze its hand or stomach and it will tell you about an upcoming parade, a shorter line at
another ride, or trivia about the area of the park you're walking through.
With more than 700 prerecorded message variations, Pal Mickey always has something to
say, whether it's telling a child a corny joke or keeping kids entertained with interactive games
while they wait in line. The product was designed for kids, says Michael Colglazier, vice
president of operations strategy and technology at Walt Disney World, but "when we tried it
out on kids in test research, they'd hear Mickey, and then they'd put him up to their mom's or
dad's ear." Vaughn says Pal Mickey also tested favorably on a majority of adults "because
suddenly they felt some of the pressure being lifted of having to know everything [about the
parks] and make sure they weren't missing anything."
Technologists speak of Pal Mickey as an experiment in bridging the gap between static data
about a customer and the customer's dynamic behavioral preferences, which depend on the
customer's physical location and movements at any given time. In other words, it's all about
dynamically matching data with contexta new concept and the next big development in the
evolution of CRM, in the view of futurist Paul Saffo, research director of the Institute for the
Future in Menlo Park, Calif., a technology think tank. C.K. Prahalad, the Harvey C. Fruehauf
Professor of Business Administration at the University of Michigan Business School and
coauthor of The Future of Competition (due out in January from Harvard Business School
Press), agrees. "Disney is experimenting with a customer strategy that goes beyond today's
CRM," he says, "using not just the data, but data in the context of individual customer
behavior."
The subject of location awareness makes some consumers skittish about the potential for
privacy abuse. Indeed, some skeptics warn that such persuasive technologies cross the
privacy line, especially when they appear to be friendly. "Is it potentially creepy? Yes," says
B.J. Fogg, director of Stanford University's Persuasive Technology Lab. "But because Mickey
Mouse is the interface for customer interaction and has such credibility with people, Disney
can do things with persuasive technology that probably a Microsoft or a WorldCom could not."
Disney executives acknowledge that there was some worry that Pal Mickey might be seen as
a customer tracking devicemore of a Big Brother than a trusted tour guide. But Disney
insists that as they consider how to make Pal Mickey even more interactive, the intent is to

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help parkgoers customize their Disney
experience for maximum value and
convenience. In any event, says Berry,
Pal Mickey isn't a collector of personal
data. "We push data out to Pal Mickey,"
he says, "we don't pull anything back."
Like other companies, adds Colglazier,
"we have other ways of collecting
[customer] data."
For now, Disney is betting customers
will see Pal Mickey as a convenience. The doll's ability to surprise parkgoers with relevant
information in real timeto have Pal Mickey tell you as you're walking through Adventureland,
for example, that "pirates are sneaking around," and then to turn a corner and spot Captain
Hook and Smee signing autographs for a group of childrenhas proven to be more of a
delight than a cause for alarm over privacy. Already on sale is a Spanish-speaking Pal Mickey,
and other languages are being considered. There's also talk of creating other "skins," such as
a Pal Minnie or Buzz Lightyear.
Data-Driven Dollars
Pal Mickey isn't the only effort on Disney's part to beef up results at the division. Under
Destination Disney, the name for Disney's new customer experience strategy, the company
intends to leverage technology, both up front and behind the scenes, in hopes of personalizing
the park experience. It starts with an expanded uber-database of customer information that
can be updated on the fly, giving Disney more insight about its customers. "Historically, if you
went to a theme park twice in a row, Disney was unlikely to know that, and if you went to two
different parks, Disney definitely wouldn't know that," says John Parkinson, chief technologist
for the Americas for Cap Gemini Ernst & Young and a CIO Insight columnist, whose company
has advised Disney on its customer strategy. Now, though, Disney will be able to slice and
dice data to influence a customer's total vacation experience, from the hotel to the park ride. It
can also make assumptions about visitors' buying behavior and personal preferences in real
time, and refine those assumptions as it collects more data about customers.
Once in the park, the idea is to be able to give parkgoers up-to-the-minute information specific
to their preset preferences via their cell phones. Got a restaurant reservation in a half an hour?
Disney will remind you to keep it by sending a text message to your cell phone. Don't want to
miss the fireworks? Your PDA will beep you.

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Disney wants to make that data accessible across all lines of business, so that any employee
at any given time can access or add information to a visitor's profile. For example, the same
information that a visitor might give to a reservations agent when booking a vacation could be
viewed later by the visitor's hotel concierge, who could then make personalized
recommendations without having to ask the guest for any additional information. "If they know,
for example, that I spent a lot of time in the Dinosaur exhibit at Animal Kingdom, because I
bought a lot of stuff there using my park pass, the CRM engine could figure out that if there's a
special-edition DVD coming out, they should tell me about it," says Parkinson. "And if there's a
special screening of a Dinosaur IIif they ever made such a filmthey might send me an
advance screening notice and maybe an invitation to a first-run event in my town."
Another initiative that ties in with Destination Disney is a Web site called Magical Gatherings,
specifically intended to boost new revenues and group business bookings by encouraging
far-flung family members to collaborate online to plan their next reunion or group event at
Disney World.
Jordan Rohan, an analyst for SoundView Technology Group Inc., an Old Greenwich,
Conn.based securities research firm, says that Disney's strategy appears to be on target with
what the company needs to do to increase business, particularly during the lull in the summer
and fall between the most popular winter and spring tourist seasons. "In the next few years,
Disney needs to use the Internet to capture the e-mail addresses of every Disney visitor and
potential visitor. With that capability, Disney can have more control over guest attendance by
offering very specific promotions to highly valued guests," he says.
Destination Disney doesn't stop there. Berry and crew are also rolling out interactive,
location-aware programs to help Disney executives cut costs on the back end, in park
operations and logistics. The effort will include helping to manage the park's fleet of 267
buses, which shuttle an average of 150,000 parkgoers a day. GPS and mobile Internet
technology let Disney run its fleet based on real-time customer demand rather than set
scheduleshelping to eliminate lines and wait times as well as cut excess operations costs.
Down the road? Disney says it is looking to expand its digital-imaging services. Executives
won't elaborate, but insiders say this could include a program that may, for example, let
visitors staying at a Disney hotel use their room television sets to review and buy photographs
taken of them on rides during the day. Berry also says the resort is looking to improve
Fastpass, a service that allows visitors to schedule ride times, thus avoiding long lines. And
some Disney observers expect even more experience-driven pyrotechnics, including a form of
pay-as-you-go pricing. Rather than charge customers one fee for the entire day, data-smart
cards linked to Disney's customer database could help Disney return to a multitiered pricing

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structure such as the old A-ride, E-ride approach, which charged customers more for the best
and most popular rides. The concept is just another aspect of the effort to use technology to
attract people back to the parks and perhaps segment customers for customized rewards
according to the frequency of their business. "I think what we're going to see is something sort
of revolutionary," says Tim O'Brien, senior editor of Amusement Business magazine, which
tracks the industry.
The Stakes are High
Will the strategy work? Theme park analysts and business strategy experts say it's a tall
orderand a risky one. They suggest that Disney's new CRM strategyahead of that of rivals
Universal Parks & Resorts and Six Flags Inc., and more comprehensiverepresents an
experiment in the way businesses might interact with customers in the future. "The problem
with today's CRM is that it doesn't engage consumers as equal problem solvers in the quest
for value all around," says Prahalad. "The way CRM has evolved, unfortunately, is by taking a
company-centric view of customers rather than using customers as co-creators of value. With
Pal Mickey and other initiatives as first steps in a longer journey, Disney is attempting to
redefine CRM, using it as a co-creator of experiences to help find and deliver value." And
making that fundamental shift won't be easy. "It's like everything that no one has done before,"
says Parkinson. "In theory, it's great. But in practice, there's a whole host of things you have to
figure out how to do, from practical engineering-type things all the way up to measuring the
acceptability with the target population segment."
Meanwhile, analysts warn that company officials need to be mindful of their product.
"Technology alone is not going to solve the problem," says Patrick McKeigue, an analyst at
Independence Investments in Boston. Adds Jessica Reif Cohen of Merrill Lynch: "It's
important to keep the attractions fresh. To keep people coming, they need to have new
attractions or events. That's the issue with theme parksyou have to constantly reinvest."
To be sure, it's a far-reaching experiment, say analysts. But it's a must-do in a corner of the
entertainment business where competing for customers will be increasingly tough amid a
sensory onslaught of digital and interactive experiences, an explosion of new digital and
media devices, and a marketplace increasingly filled with customers who have no clue as to
what it was like to be in an old-fashioned, digital-free environment.
"Disney's only real riskand it's a big oneis to know when to be digital and when to be
human, and therein lies the greatest challenge with the next era of CRM as defined by
Disney," says Saffo. "Sure the technology is tough, but the real test will be in knowing what to
control and what to leave to chance. Either way, Disney's experience will be a lesson to us all

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in how to do customer service for the 21st century."

Resources

Books
Understanding Disney: The Manufacture of Fantasy
By Janet Wasko
Polity Press, 2001
Persuasive Technology: Using Computers to Change What We Think and Do
By B.J. Fogg
Morgan Kaufmann, 2002

Articles
"WhereWare"
By Erik Pfeiffer, MIT Technology Review, Sept. 2003
www.technologyreview.com

Web Sites
DisneyWorld.com
Walt Disney World's official site
MiceAge.com
A critical perspective on the
Walt Disney Co.

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Reflective Statement
Part A of this Professional Development Project (PDP) identified my personal
strengths and weaknesses through three personality tests and comments from
my family and friends. According to the result of personality tests and those
comments, it helps me to focus my career path on customer service industry, I
found two jobs, guest services officer and a customer service clerk relevant to
my personality and those recommendation. As the result of it, I find the way for
improving my weaknesses, and changing it into my strengths.

Those three personality tests, VARK, MBTI and Belbin, showed that I am weak
in learning through read and write. In addition, I am also not a co-ordinator. In
addition, I have tried to utilize my great personality about the teamwork and
implementer to supplement my weakness - co-ordinations. I am good as a
team member and a supporter, which demonstrates my reliability and capacity
as an implementer.

Additionally, throughout the personality tests, I know that I concern the feeling
of others and I am an outgoing person, that help me to get along with
customers easier, understand and listen to their needs and wants and solve
their problems. It also helps me to satisfy customers with appropriate ways.

Furthermore, I am a kinesthetic person, which means my strength is learning

on real practices or situations, and that is the most important competitive edge
when I am a guest services officer and a customer service clerk, due to it
needs people to keep wits about themselves quickly when they are dealing

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with problems.

In the year of 2011, I will get a bachelor degree of International Hospitality and
Tourism management, and it is strength in my education background. Through
my work and study experiences, I gain some transferable skills, such as
communication skills, problem-solving, teamwork and self-learning skills.
Besides, those are my competitive advantages.

Communication is the key issue in my chosen jobs, guest service officer and
customer service clerk, the requirement of both jobs based on the knowledge
of hospitality industry. Refer to that, this project helps me to develop my
interest in customer service industry and my competitive advantages for my
future. For that, I plan for my future study according to my working experience
after my bachelor degree, in order to face more challenges in the future.

As far as the results of my strengths and weaknesses of Part A, I choose my

career in customer service industry. Moreover, because of it, I prepared a
research project, which is Customer Relationship Management Strategies in
Walt Disney Theme Park in Part B. It lets me know about Walt Disneys
customer service concept and show it how the customer service implemented
in this famous corporation of the world.

Moreover, this bachelor degree let me have a chance to understand myself,

especially all of my personalities, such as my learning type, my living style and
teamwork style. Thus, I can recognize my career, which is the most suitable for
me to do so.

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In conclusion, I have learned some kind of special skills throughout my

bachelor degree, especially in this Professional Development Project (PDP).
For example, I have learned how to make a research about some books and
journals, which enhance my reading interest, thus leading me to increase my
study skill and its interest. Besides, I understand what the economy is and
labor forces are through conducting this project.

Therefore, I made a plan for my further study within ten years. When I finished
this bachelor degree, I would like to work for gaining more working
experiences in hospitality industry, at the same time I can save some money.
Two years later, I would improve my language, especially English. I would like
to take some language courses. At the same time, I will keep saving money for
a master degree, and it may help me to face competitiveness, challenge, and
difficulty, as my mother said, Knowledge can change your fate and study can
accomplish your future; therefore, never too old to learn.

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