CUSTOMER SATISFACTION, CUSTOMER LOYALTY & THE IMPACTS OF SERVICE QUALITY IN HOTEL SERVICE: THE CASE OF THREE STAR HOTELS IN DA NANG VIETNAM *** ABSTRACT Nowadays, “service quality” is mentioned a lot when hoteliers and marketers discuss about how to improve a hotel’s competition capabilities. Many researchers figure out that customer use five dimensions to judge service quality of a hotel – tangibles, reliability, responsiveness, assurance, empathy. The gap between expected and perceived service is a measure of service quality. The fact that hotels and resorts are booming in Vietnam results in an intensive competition among hoteliers. Thus, there is no better way to capture and retain customers than to deliver an excellent service quality. Taking 3 star hotels in Da Nang as a case study, this paper focuses on analyzing the effects of 5 mentioned dimensions that affect customer satisfaction and customer loyalty. The data, collected from 113 questionnaires, was analyzed by statistic methods (hypothesis test, regression), measuring service quality model (SERVQUAL) and tools (SPSS). The results show that dimensions of hotel service quality such as tangibility, assurance and empathy significantly predict customer satisfaction and loyalty. Specifically, among the dimension of service quality, the most significant predictor of customer satisfaction is empathy. For customer loyalty, the research reveals tangibles and assurance are the key predictors, while “tangibles” is more important of the 2 factors. The results recommend that hotel managers should exert more attempt and focus to develop its service quality along these two vital dimensions and improve its weaknesses. 1
INTRODUCTION Quality customer service should be a top priority for any enterprise, whethera sole trader or large multi-national company. Even this company who works in the commodity market or service market, the service quality stay an important role in the success of this company. Be different with commodity, service is intangible good that customer receive this good though the communicate activities, getting information and their feeling. Speciality of service is that customer can estimate the quality of service after experiencing this service. However, what customer feel from the service and their satisfaction will affect to their return and loyalty. It means that if customer is serviced in the high quality that satisfies what he/she need and want, he/she will come back to buy this commodity or service again and again. On another hand, quality customer service is even more critical in this age of social media where the company will be eliminate on the network, such as Facebook, Twitter just in some minutes. Therefore, service quality become a factor of surival or death of for a company. Stated another way, service quality is competitive advantage. In Vietnamese service market, hotel service is considered to be a potential market. In recent year, the tourism industry has the big step forward. According to Ministry of Culture, sports and Tourism of Vietnam, in 5 year from 2007 to 2012, the number of foreign tourists came to Vietnam increase from 4 million to 6,8 million (1)
parallel with the development of tourism industry, Hotel industry of Vietnam has a lot of achievements such as 3 hotels in Vietnam are listed in the top 500 hotel in the world by the Travel + Leisure – the best tourism magazine in the world. In this research, the topic we choose is “Customer satisfaction, customer loyalty and the impacts of service quality in hotel service”. The purpose of this paper is give the audience have an overview about the relationship between service quality and the customer satisfaction. (1) E-news: baomoi.com – 5 years, foreign tourists come to Vietnam ỉncrease 50% - Author Minh Phuong http://www.baomoi.com/5-nam-khach-quoc-te-den-Viet-Nam-tang-50/137/10129695.epi
The reason why we choose Da Nang is the location to do this research is...
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