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Relationships between Service Quality, Customer Satisfaction and Customer Loyalty in Hotel Services

Journal of Hospitality Application and Research

Volume 15 Issue 2

Published: 2020
Author(s) Name: Tohid Kachwala, Dinesh Panchal, Shailaja Rego, Pradeep Pai | Author(s) Affiliation: Prof., Operations Mgt. & Decision Science, SBM, NMIMS University, Mumbai, Maharashtra, India.
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Abstract

Rendering Service Quality is a key for survival. Hotel industry has a huge potential for growth due to the rich heritage of the country & also the enormous business potential. This study uses secondary data from a survey of Hotel Customers. Based on extensive literature survey, a theoretical model is proposed to relate the Service Quality, Customer Satisfaction & Customer Loyalty. Using convenience sampling, a survey (with a well-defined Questionnaire) was carried out for regular hotel users & Structural Equation Modelling (using IBM SPSS AMOS) was used for investigating the relationship between the latent constructs of the Service Quality, Customer Satisfaction & Customer Loyalty. The study indicated that Service Quality (with its five antecedents) has a significant influence on Customer Satisfaction & in turn, Customer Satisfaction has a significant influence on Customer Loyalty in Hotel Services. The emerging model can be used for developing necessary managerial strategies for achieving the ultimate objective of Customer Satisfaction & Customer Loyalty.

Keywords: Services Quality, Customer Satisfaction, Customer Loyalty, Tangibles, Reliability, Responsiveness, Assurance, Empathy, SERVQUAL

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