Effect of Service Quality on Customer Satisfaction; Study of Hotels in Awka South
Abstract
In this quantitative survey research study, a structured questionnaire was designed to collect data from a sample of 120 respondents to investigate the relationship between service quality and customer satisfaction in hotels within Awka South, as well as to assess the impact of customer satisfaction on the success and competitiveness of these establishments. The research design was chosen to ensure a systematic and structured approach to data collection and analysis. The questionnaire comprised statements on service quality, customer satisfaction, and the overall impact of these factors on the hotel industry’s success. The data collected was analyzed using SPSS27, a statistical software package, to present and analyze the findings. The hypotheses formulated were tested using a one-sample t-test with an assumed mean of 0 and a critical table value of 2.92 at a 5% level of significance. The results indicated that there is indeed a significant positive relationship between service quality and customer satisfaction in hotels in Awka South. Moreover, it was found that customer satisfaction significantly contributes to the success and competitiveness of these hotels. This suggests that hotels in Awka South should prioritize service quality to enhance customer satisfaction and ultimately improve their business performance. In conclusion, the study provides empirical evidence supporting the importance of service quality in the hospitality industry, particularly in Awka South. The findings highlight the need for hotels to maintain high standards of service quality to meet customer expectations and foster loyalty. Additionally, customer satisfaction emerged as a key driver of success and competitiveness in the hotel industry. As a result, it is recommended that hotels in Awka South focus on enhancing the courtesy and professionalism of their staff, maintaining cleanliness and facilities, and ensuring responsiveness to customer needs. By implementing these improvements, hotels can further elevate customer satisfaction and, in turn, improve their overall performance and competitiveness. These findings contribute valuable insights for hotel management and serve as a foundation for future research in this field.
CHAPTER ONE
INTRODUCTION
Background to the Study
The hospitality industry is one of the most dynamic and competitive sectors in the global economy (Nebo & Okolo, 2020). Hotels, being a fundamental component of this industry, continually strive to meet and exceed customer expectations. In Awka South, a region known for its diverse array of hotels, understanding the relationship between service quality and customer satisfaction is of paramount importance for the sustainable growth and competitiveness of these establishments.
Service quality in the context of hotels encompasses a multitude of factors, including the efficiency and courtesy of staff, cleanliness and maintenance of facilities, responsiveness to customer needs, and overall guest experience (Glaveli et al., 2020). The efficiency of check-in and check-out processes, the professionalism and friendliness of staff, and the quality of room service are all integral components of the service quality equation. The cleanliness and maintenance of rooms, common areas, and facilities are also crucial elements that contribute to a guest’s perception of service quality (Ogungbayi, Olatidoye, & Agbebi, 2019). A well-maintained and hygienic environment can significantly impact a guest’s overall satisfaction.
Research indicates that customer satisfaction in the hospitality industry is intricately linked to the responsiveness of hotels to customer needs (Nkwede & Okpara, 2017). Prompt and effective responses to guest requests, whether they pertain to room amenities or special requests, can enhance the perception of service quality. The ability of a hotel to adapt to the unique needs and preferences of its guests is an essential factor in ensuring their satisfaction.
Several studies have shown that customers who are satisfied with the quality of services in a hotel are more likely to become loyal patrons (Kuhlemeyer & Allen, 2019). This loyalty can translate into repeat business, potentially reducing customer acquisition costs and increasing the lifetime value of a guest. Satisfied customers are also more likely to recommend the establishment to others (Ndubisi, 2019). Positive word-of-mouth is invaluable in the hospitality industry, as it can drive new customers to the hotel and contribute to its reputation.
Understanding the factors that influence service quality and their impact on customer satisfaction is crucial for hotels in Awka South (Nebo & Okolo, 2020). To this end, this study aims to explore the relationship between service quality and customer satisfaction in hotels in Awka South. It seeks to identify the key factors that contribute to service quality, how these factors influence customer satisfaction, and to what extent the satisfaction of guests can be a measure of the success and competitiveness of these hotels.
Statement of Problem
The statement of the problem in the context of the hospitality industry in Awka South, Nigeria, is multifaceted and warrants a thorough examination. Hotels in this region face several challenges that have a direct impact on their service quality and, consequently, on customer satisfaction.
Customer satisfaction is pivotal in the hotel industry, as it significantly influences a hotel’s reputation, profitability, and long-term sustainability (Nebo & Okolo, 2020). However, hotels in Awka South, like many others globally, grapple with issues related to service quality and customer satisfaction.
One of the core problems is the inconsistency in service quality, which can lead to varying levels of customer satisfaction. Guests’ experiences may vary widely, even within the same hotel, due to differences in staff courtesy, efficiency, and responsiveness (Nebo & Okolo, 2020). These inconsistencies hinder the ability to build a strong and loyal customer base, as customers who have inconsistent or subpar experiences are less likely to return or recommend the hotel to others.
Another significant problem is related to the cleanliness and maintenance of facilities. The maintenance of rooms, common areas, and facilities is crucial for guests’ perception of service quality (Ogungbayi et al., 2019). Failure to maintain a high level of cleanliness and upkeep can lead to negative online reviews, which can tarnish a hotel’s reputation and deter potential guests from choosing their establishment.
Additionally, there is a challenge in addressing the unique needs and preferences of guests promptly and effectively (Nkwede & Okpara, 2017). Failing to cater to the specific needs of guests can lead to dissatisfaction and potentially result in lost business. The hotel’s ability to adapt to the diverse requirements of its guests is crucial, and not doing so can be a major problem affecting customer satisfaction.
The sustainability and competitiveness of hotels in Awka South also hinge on their ability to align service quality with customer satisfaction. The lack of a clear understanding of this relationship and the absence of targeted strategies to improve service quality could jeopardize the long-term viability of these establishments (Nebo & Okolo, 2020).
Consequently, the problems faced by hotels in Awka South are diverse, encompassing inconsistencies in service quality, cleanliness and maintenance issues, and challenges in adapting to the specific needs of guests. These issues directly impact customer satisfaction, which, in turn, affects the hotels’ reputation, customer loyalty, and overall success. It is imperative to address these challenges systematically to enhance service quality and customer satisfaction, ensuring the sustained growth and competitiveness of hotels in the region.
Objectives of the Study
This study has three specific objectives:
- To assess the factors that contribute to service quality in hotels in Awka South.
- To analyze the influence of service quality on customer satisfaction in these hotels.
- To determine the extent to which customer satisfaction can be used as a metric for the success and competitiveness of hotels in Awka South.
Research Questions
To achieve the stated objectives, the study addressed the following research questions:
- What are the key factors that contribute to service quality in hotels in Awka South?
- How does service quality influence customer satisfaction in these hotels?
- To what extent can customer satisfaction be used as a metric for the success and competitiveness of hotels in Awka South?
Research Hypotheses
The study proposed the following hypotheses:
Null Hypotheses(H0):
- There is no significant relationship between service quality and customer satisfaction in hotels in Awka South.
- Customer satisfaction does not significantly contribute to the success and competitiveness of hotels in Awka South.
Alternative Hypotheses(H1):
- There is a significant relationship between service quality and customer satisfaction in hotels in Awka South.
- Customer satisfaction significantly contributes to the success and competitiveness of hotels in Awka South.
Significance of the Study
The significance of this study on the relationship between service quality and customer satisfaction in hotels in Awka South is substantial and far-reaching. It has implications that extend to various stakeholders and aspects of the local economy.
For the hotel industry in Awka South, this study provides a valuable opportunity to gain a deeper understanding of the factors that influence service quality and, consequently, customer satisfaction. Such insights are instrumental for hotel owners and managers as they seek to enhance the quality of services they offer. Improving service quality can lead to higher levels of customer satisfaction, customer loyalty, and positive word-of-mouth, which are essential for the competitiveness and financial success of hotels in the region.
Customers in Awka South stand to benefit from this research as well. By uncovering the key elements that drive service quality and satisfaction, the study can empower customers to make more informed choices when selecting a hotel. They can also use this knowledge to communicate their expectations and preferences, potentially leading to improved experiences during their stays.
Additionally, the local economy in Awka South could experience positive effects from this study. A flourishing hotel industry contributes to economic growth by generating jobs and attracting tourists. Understanding the connection between service quality and customer satisfaction can be a valuable resource for local authorities and tourism boards. They can leverage this knowledge to promote the region as an attractive destination for travellers, potentially boosting tourism and local businesses.
Moreover, the study’s findings have the potential to serve as a foundation for future research and scholarly exploration in the field of hospitality. It opens doors to further investigations, which could lead to more targeted and effective strategies to enhance service quality and customer satisfaction in hotels.
In summary, the significance of this study transcends the boundaries of the hotel industry in Awka South. It has the potential to benefit various stakeholders, improve customer experiences, contribute to the local economy, and serve as a springboard for future research endeavours in the realm of hospitality. By shedding light on the intricate relationship between service quality and customer satisfaction, this study holds the promise of driving positive change and contributing to the growth and development of the region.
Scope of the Study
The scope of this study is limited to hotels located in Awka South, Anambra State, Nigeria. Awka South is known for its diverse range of hotels, catering to various customer segments. The study focused on mid-range and upscale hotels, which attract a diverse clientele, including business travellers, tourists, and residents seeking leisure activities. The choice of these hotel categories allows for a comprehensive analysis of service quality and customer satisfaction across a spectrum of customer expectations.
The study encompassed an investigation into the factors that contribute to service quality, the measurement of customer satisfaction, and the implications of customer satisfaction on the success and competitiveness of hotels in the region.
Operational Definition of Terms
To ensure clarity and understanding, the following terms were operationally defined within the context of this study:
Service Quality: The degree to which a hotel meets or exceeds customer expectations in terms of cleanliness, staff courtesy, efficiency, responsiveness, and overall guest experience.
Customer Satisfaction: The perception and evaluation of a guest’s experience in a hotel, including factors such as comfort, service quality, value for money, and overall enjoyment of the stay.
Success of Hotels: A measure of the achievement of objectives set by hotels, which may include financial performance, brand reputation, and customer loyalty.
Competitiveness of Hotels: The ability of a hotel to compete effectively in the hospitality industry, considering factors such as pricing, service quality, customer satisfaction, and market share.
Mid-Range Hotels: Hotels that offer moderate pricing and services and cater to a diverse clientele, including business and leisure travellers.
Upscale Hotels: Higher-end hotels that offer premium services, amenities, and accommodations, targeting a more affluent customer base.
Online Reviews: Customer feedback and ratings are posted on various online platforms, such as TripAdvisor, Yelp, and Google Reviews, which reflect their experiences with the hotel.
Tourism Stakeholders: Entities and individuals involved in the tourism industry, including government agencies, tour operators, and local businesses that benefit from tourism.
References
- Kotler, P. (2023). Marketing management (11th edition). Upper Saddle River, New Jersey: Pearson Education, Inc.
- Kuhlemeyer, G. A & Allen, G. H. (2019). Consumer satisfaction with life insurance. A Benchmarking Survey Financial Counseling and Planning, 10(2), 35-44.
- Limayem, K. (2017). The relationship between service quality and customer satisfaction: a factor-specific approach. Journal of Services Marketing, 16(4), 363-379.
- Mengi, P. (2017). Customer satisfaction with service quality: an empirical study of public and private sector banks. The IUP Journal of Management Research, 8(9), 7-17.
- Munusamy, J., Chelliah, S., & Mun, H.W. (2020). Service quality delivery and its impact on customer satisfaction in the banking sector in Malaysia. Int. J. Innov. Manag. Technol., 1, 398–404.
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