JOHN B.
LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
Background of the Study
Understanding the consumer is crucial to success in the hospitality
industry. Consumer motivation has often been scrutinized in terms of customer
decision making, satisfaction, experiences, environment and interactions with
others.
This research reports the finding of a thorough study to establish
the factors that have affects the service quality and how they can satisfy their
customer that can be also applied in the near future, sharing of responsibility of
participating member and their contributions to an the expectations from the
consortium. This research aims to explore the structure of hospitality and the
perceived differences among three generations of managers and supervisors in
the hospitality industry. When it comes to service management, service quality
and satisfaction, positive customer experiences are vitally important, because a
positive experience will cause the customer to wish to return or stay longer and
recommend the establishments to others.
Theoretical Framework
According to Linda Ray (2003) in the study the term “hospitality”
covers a wide range of activities and usually refers to the delivery of
accommodations, eating and entertainment. Hospitality management is a field
found in voluntary, commercial and non-commercial enterprises. Practices may
differ slightly from catering and institutional to hotel and restaurant
management, many of the concepts prevail in all industries that define their
purpose as delivering hospitality services. Satisfy Consumer Needs in a
commercial setting that translates to the modern marketing that drive hospitality
management practices. In other words, managers providing a service first need
to find out what consumers want and then find a way to satisfy those needs
most effectively. The hospitality industry utilizes the concepts of service in every
facet of its operations. Restaurants rely on servers to deliver a meal, hotel
managers demand the highest levels of customer service and entertainment
companies provide service to patrons, all in hopes of building a reputation and
return business. Referrals are an integral part of hospitality success. Those only
occur when a venue sets the highest customer service goals and extends that
service effectively.
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
CHAPTER 1
Introduction
Understanding the consumer is crucial to success in the hospitality
industry (Goeldner et al., 2000). Consumer motivation has often been
scrutinized in terms of customer decision making, satisfaction, experiences,
environment and interactions with others, and hotel management staff are
taught that all decisions about management of the hotel should begin with
understanding of the guest and determination of which option “favours
success for the hotel as the policy most likely to produce a high measure of
guest satisfaction” (p. 374). Satisfaction is understood to be predicted by
service quality (Sudin, 2011), and Nasution and Mavondo (2005) concluded
that the hotel sector should focus especially on providing quality service with
respect to the factors of perceived quality that are the most important to
customers.
While service quality and satisfaction are important throughout the
hotel industry, they are nowhere more important than in luxury properties,
where guest expect high quality (Dubois et al., 2005). Dubois and Laurent
(1994) showed that consumers associate luxury with words such as
“upscale”, “quality” and “class”. Given that the twenty-first century is an era
of globalization, luxury and luxury goods now travel through all cultures;
however, Wong and Ahuvia (1998) suggested that in East Asian societies,
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
luxuries play a predominantly social symbolic role, minimizing their private
meanings and hedonic value, which are emphasized in the West.
Service quality and satisfaction, positive customer experiences are
vitally important, because a positive experience will cause the customer to
wish to return or stay longer and to recommend the establishment to others
(Nasution and Mavondo, 2008). In addition, the Internet and social media
make it easier than ever for customers to describe and share their
satisfaction or dissatisfaction, thus influencing others (Ekiz et al., 2012). As a
result, hotel operators must concentrate on the quality of every detail of
service encountered by their guests (Su, 2004), and the customers’ emotional
judgments about their hotel stays become the basis for the companies’
efforts to differentiate themselves from competitors and achieve competitive
advantages (Chang and Horng, 2010).
Homburg et al. (2005) found significant cultural differences in the
impact of the factors on customer beliefs about service quality and therefore
satisfaction. In addition, Walls et al. (2011) performed a meta-analysis of
hospitality management studies and concluded that customer experiences are
multidimensional and unique to each situation and consumer, suggesting that
in this domain, quantitative methodology may not be universally
generalizable.
The goal of this paper was to determine whether luxury hotel
managers and luxury hotel customers have the same understanding of
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
service quality and satisfaction and whether there is a disparity between
services offered by luxury hotels – and, indirectly, by managers – and the
way customers actually experience them. This study is significant because it
addresses this goal using qualitative methodology to provide insights into the
experiences of customers and managers in their evaluation of luxury, quality
and satisfaction, thus expanding the scanty qualitative-based literature on
this subject. The study is also significant because there has been even less
qualitative exploration of this subject in Asia, and Taiwan was the site of the
study.
Statement of the Problem
Service quality is a critical component of customer perceptions about the
service. Customers perceive services in terms of its quality and how satisfied
they are overall with their experiences (Zeithaml et al., 2000). Thus, satisfying
customer needs through excellent service quality provided by customer-oriented
salespeople will increase the likelihood of customers returning to shop and
eventually recommending the stores to others. (Yesmine et al., 2003)
1. Is there an association between service quality and customer loyalty?
2. What is the discrepancy gap between customer expectation and
perception towards service quality?
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
Hypotheses
The hypotheses of the study are developed as below:
1. Customer satisfaction has a mediating effect on the relationship
between service quality and customer quality.
2. Customer value is positively related to customer satisfaction.
3. There is a significant positive relationship between customer loyalty and
customer satisfaction.
Scope and Delimitation of the Study
The scope of the research is more to the effect of quality service to the
customer satisfaction. Service quality and customer satisfaction relied on
customer expectation and customer perception towards 5 service quality
dimensions of front office staff. The sampling group was 60 customers who
stayed at the Mercure Hotel in Pattaya between September 1-15, 2009.
Definition of terms
Service quality means the difference between the customer’s
expectation of service and their perceived service. In this study, the assessment
standards of Zeithaml, Parasuraman & Berry (1990) will be used, which consist
of five dimensions: tangibility, reliability, responsiveness, assurance, and
empathy.
Customer expectation means uncontrollable factors including past
experience, personal needs, word of mouth, and external communication about
hotel service.
Customer perception means customer’s feelings of pleasure /
displeasure or the reaction of the customers in relation to the performance of the
hotel staff in satisfying / dissatisfying the services.
Significance of the Study
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
This study will be as a practical guideline for the service quality. The
outcome of this study will develop the service quality of the front office staff
in order to meet with the customer’s needs and their satisfaction. If the
result showed the high score, the hotel or other management owner would
be happy with the service. In contrast, if the result showed the low score,
the hotel owner would improve the service and arrange training program.
CHAPTER 2
REVIEW OF RELATED LITERATURE
This paper reviews the literature on customer satisfaction and
customer loyalty, giving emphasis on service marketing strategies specially
service quality and in Hotels. The purpose of this paper is to reveal available
literature related to service strategies on customer satisfaction and customer
loyalty using research papers, online databases, conference articles, masters or
doctoral dissertations and other related published information which are directly
relevant to the said relationship. Further, it provides a comprehensive idea
developed on service strategies on customer satisfaction and customer loyalty
from its populated period (1980) to the date (2015). It was found that how
service strategies influence to customer satisfaction and in turn to customer
loyalty. Accordingly, the review results indicate that customer satisfaction
significantly influence as the intervening variable in between the service
strategies and customer loyalty. Also, it shows that both service quality strategies
and service scape strategies are significantly influencing to determine the
customer satisfaction.
According to Oliver (1997), there is a clear distinction between quality
and satisfaction. “Satisfaction is an immediate response to consumption, while
quality exists prior to and subsequent to consumption as an enduring signal of
product or service excellence” (Oliver, 1997, p. 188). Despite the clear
differences between quality and satisfaction, their relationship remains complex.
In this study, the researcher assumed that quality in an antecedent of
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
satisfaction since it can be expected that after an objective comparison between
expectation and perception resulting in a quality evaluation, this comparison is
subjectively interpreted by costumer, which then lead to satisfaction and
dissatisfaction (de Ruyter, Bloemer, & Peeters, 1997).
According to Lovelock (1996), services that interact with people’s
minds have the power to shape attitudes and influence behaviour. Thus, when
customers are in a position of dependency or there is potential for manipulation,
then strong ethical standards and careful oversights are required.
Receiving such services requires an investment of time on the
customer’s part. Entertainment, teaching sessions, and religious services are
often delivered face to face, with customers, among many others, physically
present during service delivery, and then they must enter the relevant service
factory and spend time there while the service is performed. In many instances,
they will be expected to become active participants in the creation and delivery
of the service. Customer satisfaction will be influenced by such factors as: (1)
encounters with service personnel; (2) appearance and features of service
facilities; (3) interactions with self-service equipment; and (4) characteristics and
behaviour of the customers.
This study is structured as follows; first an overview of attribute-based
measurements is provided as a measure of service quality. Subsequently, a brief
discussion of satisfaction as a consequence of service quality is given. The
underlying assumption is that customer perceptions of service encounters are
important elements of customer satisfaction, perception of quality, and long-term
loyalty. Satisfying these moments of truth, one at a time, results in customer
coming back. Customer retentions are at the heart of profitable companies.
Continuous improvement efforts in an organization must be anchored
on customer needs and satisfaction. It is a common mistake to focus continuous
improvement on what managers and employees assume to be important to
customers. Satisfaction can be described as a customer’s cognitive and affective
evaluation of a product or service, which is being delivered to him/her by a
specific provider (Oliver, 1997). The issue of the sequential order of quality and
satisfaction in services has caused considerable debate in the literature (de
Rutyer et al., 1997).
The correlation of image, customer expectation, service quality, perceived
value, and customer loyalty are significant enough to show the correlation with
customer satisfaction in hotel industry, furthermore the correlation of
complaining behavior and customer was weak and negative, complaint behavior
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
and customer satisfaction is negatively related, which means the lower complaint
behavior was, the higher customer satisfaction obtained.
Kumaradeepan and Pathmini, “Service Strategies for Customer
Satisfaction and Customer Loyalty in Store Supermarkets”. This study aimed to
customer satisfaction and customer loyalty, giving emphasis on service
marketing strategies specially service quality and in store supermarkets. The
purpose of this paper is to reveal available literature related to service strategies
on customer satisfaction and customer loyalty using research papers, online
databases, conference articles, masters or doctoral dissertations and other
related published information which are directly relevant to the said relationship.
Further, it provides a comprehensive idea developed on service strategies on
customer satisfaction and customer loyalty from its populated period
(1980) to the date (2015). It was found that how service strategies
influence to customer satisfaction and in turn to customer loyalty.
Accordingly, the review results indicate that customer satisfaction significantly
influence as the intervening variable in between the service strategies and
customer loyalty. Also, it shows that both service quality strategies and service
scape strategies are significantly influencing to determine the customer
satisfaction.
Gandolfo Dominici, “Customer Satisfaction in the Hotel Industry: A Case
Study from Sicily” this study shows that in order to be successful in the market it
is not sufficient to attract new customers managers must concentrate on
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
retaining existing customers implementing effective policies of customer
satisfaction and loyalty. In hotel industry customer satisfaction is largely hooked
upon quality of service. A management approach focused on customer
satisfaction can improve customer loyalty, thus increasing the positive image of
the touristic destination. Hence, exploring the importance for customers of hotel
attributes in hotel selection is indispensable. Research on the topic of guest
satisfaction, which translates into the consideration of whether or not customers
will return to a hotel or advice it to other tourists, is pivotal to the success of the
hospitality business. Neglecting to pay attention to those hotel attributes
considered most important by guests, may lead to negative evaluation of the
hotel, thus restricting the chance of repeat patronage. We perform a qualitative
analysis of a large hotel in Sicily (IT), the Sporting Club Hotel in the town Cefalù,
using the Critical Incident Approach (Hayes, 2008). Through the analysis of this
case we evaluate the overall customer satisfaction level for the hotel and for
each service supplied. We conclude discussing the result and proposing
improvement in customer satisfaction management of the hotel.
Dr. DilPazir and Amin “A study of customer satisfaction towards hotel
industry in Kashmir Valley” aimed that Customer satisfaction is the key driver for
any organization to sustain in current competitive era. Service providers need to
understand their customers and design their services in such a way that
maximum possible satisfaction is attained by the customer. The purpose of the
present study is to measure customer satisfaction in the hotels of the Kashmir
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
valley. The study will also provide various suggestions to the customers so as to
make their services more efficient and effective. For conducting the survey a
well-structured Questionnaire is used to collect primary data from the
respondents. The sample size for the study is 150 Sample variance and
confidence methods are used for Determining sample size. Simple random
sampling technique has been adopted by the researcher to collect the data. On
the basis of results 40 % of the respondents are highly satisfied with safety and
security of the hotel while 20 % are highly dissatisfied with the location of the
hotel. With the every attribute the level of satisfaction changes, thus making it
clear that customers rate their satisfaction differently with every single attribute
finally it has been proved that the customer satisfaction in the hotels are high.
Pardis Mohajerani, “Customer Satisfaction Modeling in Hotel Industry: A
Case Study of Kish Island in Iran” This study aims to identify the relation
between customer satisfactions as dependent variable with other independent
variables such image, customer expectation, service quality, perceived value,
locality, and complaining behavior. The second goal of this study was to propose
a customer satisfaction model for hotel industry in Kish Island (IRAN). Therefore,
the findings of this study will contribute to both hotel management and tourism
industry improvement in Iran.
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
Conceptual Framework
If customers agree that they are satisfied and give the reasons for
satisfaction as service quality; service quality dimension has significant
relationship with service quality and customer satisfaction, then a conclusion
could be drawn that service quality has a significant relationship with customer
satisfaction and with service quality dimensions.
INDEPENDENT DEPENDENT
VARIABLE VARIABLE
SERVICE CUSTOMER
QUALITY SATISFACTION
CHAPTER 3
METHODOLOGY
RESEARCH DESIGN
The research design of this study entailed descriptive research.
According to Gay (1992). “Descriptive research involves collecting data in order
to test hypothesis or to answer questions concerning the current status of the
subjects of the study.” Closed-ended questionnaires were used in this study
JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO
SENIOR HIGH SCHOOL
ILOILO CITY
because they were more convenient for the participant to answer and for the
researchers to interpret the respondent’s results.
For Customer Satisfaction the purpose of the research was to
gain information about the level of Customer Satisfaction: Towards Service
Management in Hospitality Industry. The Customer Satisfaction wanted to get
information of possible development areas to focus on, to ensure customers are
satisfied in the future as well and return to the company. The goal of this
research is to know or improve the operations continuously, making it vital to get
up to date information about current situation.
In this research, researchers conduct a customer satisfaction
survey to be able to monitor the development of the level of customer
satisfaction. This way the researchers will receive information whether the
changes made based on previous result have made a difference. It is important
to understand that the changes made might lead to a negative development in
the customer satisfaction.
