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Service Quality, Customer Satisfaction
          and Behavioural Intention in Hotel
                                   Industry
                                                                                                              J. Vijayadurai

       Attracting new customers alone is insufficient, as the management must concentrate on preventing
    “customers-exit” since the cost of attracting new customers is higher than the cost of retaining existing
   customers. The key to customers retention is customer satisfaction and loyalty which is largely dependant
    upon the service quality offered by the hotels. In this juncture, the present study has made an attempt to
                                            fulfill the following objectives:
                           i) To identify the service quality factors in the hotel industry.
                   ii) To analyze the customers satisfaction and their behavioral intention and
   iii) To examine the impact of service quality on the customers satisfaction and their behavioral intention.
    In total, 30 hotels have been purposively selected. From each hotel, 10 guests have been selected at the
 convenience of the researcher. The resulted service quality factors are Service delivery, Tangibles, Reliability,
 Assurance, Responsiveness, Empathy, Service product and Social responsibility. The highly perceived SQFs in
 hotel industry among the guests are service quality delivery and tangibles. The study reveals that the guests’
      perceptions are moderate in service delivery and tangibles in hotel industry whereas it is very poor on
  empathy and responsiveness factors. The significantly influencing SQFs in the behavioural intention among
 the customers are service delivery, reliability, assurance and responsiveness. The findings indicate that while
 service quality is an important driver of customer satisfaction and behavioural intention. It is important for
    service providers to understand the relevant service quality factors in their industry that could reinforce
                                           positive customers’ satisfaction.



                                T
                                        he service sector plays an                      barrier industry is being perceived as an
                                        increasingly important role in                  attractive option for those bitten by the
                                        modern economics. In India, the                 entrepreneurial bug. After globalization,
                                service sector has been emerging as the                 the growth of hotels have been witnessed
                                dominant component of the economy. The                  to face the major challenge of improving
                                strong economic growth, increased                       quality of the service offered, in order to
                                disposable income, urbanization and the                 attract a large number of domestic and
                                impact of various factors have fuelled a                foreign customers. Attracting new
                                strong need for tourism in India. The hotel             customers alone is insufficient, as the
                                business being a comparatively low entry                management must concentrate on
                                                                                        preventing “customers-exit” since the
                                                                                        cost of attracting new customers is higher
                                J.Vijayadurai is S.G Lecturer, Department of Business
                                Administration, N.M.S.S.V.N.College, Madurai.


14                                                                                          Journal of Marketing & Communication
than the cost of retaining existing                labour intensity to propose a two
customers. The key to customers retention          dimensional service process matrix. He
is customer satisfaction and loyalty which         divided the landscape of services into
is largely dependant upon the service              service factory, service shop, mass service
                                                                                                         Many researchers have
quality offered by the hotels. In this juncture,   and professional service.
                                                                                                         defined the meaning of
the present study has made an attempt to                                                               quality in different ways.
fulfill the following objectives:                  Several authors have considered various            This quality construct has
                                                   aspects of customer contact, customer              been variously defined as
i)   To identify the service quality factors
                                                   involvement and degree of provider                        value (Feizenbaum,
     in the hotel industry.
                                                   discretion (Kellogg and Chase, 1995;                  1951), conformance to
ii) To analyze customers’ satisfaction and
                                                   Lovelock 1983). This study adopts                      requirements (Crosby,
     their behavioural intention and                                                                        1979), fitness for use
                                                   Schemenner classification, because it
iii) To examine the impact of service                                                                        (Juran et al., 1974),
                                                   contains several elements of the “degree
     quality on customers satisfaction and                                                                    meeting customers’
                                                   of customer interaction, customization”
     their behavioural intention.                                                                                    expectations
                                                   under different levels of plant and
                                                                                                            (Parasuraman et al.,
Conceptual Foundations:                            equipment intensity commonly experienced            1985) and the totality of
                                                   in service delivery systems (Mills and                        the features and
Over the past 30 years, several authors have       Marguiles, 1980). As highlighted above,                    characteristics of a
attempted to develop coherent                      Schemenner (1986) classified hotels (the              product or service that
classification schemes for services. The           lodging industry) as a service quality.                  bear on its ability to
intent of such schemes is to bring parsimony                                                            satisfy stated or implied
and order to allow a better understanding          Service Quality (SQ)                                       needs (ANSI/ASQS,
of the characteristics that differentiate                                                                                   1987).
services and the organizations that provide        Many researchers have defined the
them. The following section reviews some           meaning of quality in different ways. This
of these schemes.                                  quality construct has been variously defined
                                                   as value (Feizenbaum, 1951), conformance
Service Typology and Service Quality               to requirements (Crosby, 1979), fitness for
                                                   use (Juran et al., 1974), meeting customers’
Cook et al. (1999) chronicled the previous         expectations (Parasuraman et al., 1985) and
work in the development of service                 the totality of the features and
typology, and presented both the marketing         characteristics of a product or service that
oriented and operations – oriented views           bear on its ability to satisfy stated or implied
of service dimensions. Marketing-oriented          needs (ANSI/ASQS, 1987). In services
views used in the literature to classify           marketing literature, the most widely used
service dimensions include intangibility,          definition of service quality is “to meet the
differentiation, object of transformation,         customers’ expectations”, as defined by
type of customer and commitment.                   Parasuraman et al., (1985). They found that
Classification schemes based on the                service quality could neither be
operations – oriented view include                 conceptualized nor evaluated by traditional
customers contact, customer involvement,           ‘goods quality’ methods because services
labour intensity, and degree of                    possess three characteristics: intangibility,
customization, degree of employee                  heterogeneity and inseparability
discretion and production process.                 (Parasuraman et al., 1985). They also
Fitzsimmons and Fitzsimmons (2004) went            developed an instrument called
for a more detailed discussion of each of          SERVQUAL to measure service quality by
the service classification outlined above.         comparing of customer’s expectations with
Schemenner (1986) combined the degree              their perceptions of the service
of customer contact and customization with         performance. Both the original

January -April 2008 Vol. 3 Issue 3                                                                                                   15
SERVQUAL version (Parasuraman et al.,           demonstrated the influence of diverse
                                 1988) and the revised version                   product attitudes on customers’
                                 (Parasuraman et al., 1991, 1994) contain        perceptions. Zenike and Schaaf (1990)
                                 five dimensions: tangibles, reliability,        identified the two distinct and disparate
     Oberai and Hales (1990)     responsiveness, assurance and empathy.          features: Human element of service
     used ten dimensions to                                                      delivery, which has been effectively
     measure the service         Although SERVQUAL has become one of             addressed by the SERVQUAL. The
     quality in hotel industry   the leading instruments of service quality,     process, procedures, systems and
     as reliability,             it has been subjected with some criticisms.     technology would make service
     responsiveness,
                                 These criticisms included the application       seamlessness one. The second aspect is
     competitiveness, access,
     courteous,
                                 to other service settings (Carman, 1990),       as crucial as the first one. Guests would
     communication,              the conceptualization of service quality        always like and expect the service delivery
     credibility, security,      (Cronin and Taylor, 1992; Teas, 1993) and       processes to be perfectly standardized,
     understanding and           the dimensions and contents of service          streamlined and simplified so that they
     tangible.                   quality (Muttal and Lassar, 1996;               could receive the service without any
                                 Sureshchandar et al., 2001). In the present     hassles, hiccups or undesired/ inordinate
                                 study, the focus is on the contents of          questioning by the service providers.
                                 SERVPERF. It is the measurement of the          Drumond (1992) identified the production
                                 customers’ perceptions of the performance       interface and delivery interface to measure
                                 of a service provider and adequate              the service quality tourism industry. Oberai
                                 assessment for service quality (Peter et        and Hales (1990) used ten dimensions to
                                 al., 1993; Bebko, 2000; Andaleep and Basu,      measure the service quality in hotel
                                 1994).                                          industry as reliability, responsiveness,
                                                                                 competitiveness, access, courteous,
                                 Service Quality in Hotel Industry:              communication, credibility, security,
                                                                                 understanding and tangible. Saxena and
                                 Several researchers have suggested that         Kishor (1996); and Kapil Kumar (1996)
                                 the search for universal conceptualization      have created some dimensions to measure
                                 of the service quality construct may be         the service quality in tourism. On the basis
                                 futile (Levitt, 1987; Lovelock 1983) and        of the above literature, the present study
                                 arguments have been advanced to suggest         measures the service quality in hotel
                                 that service quality is either industry or      industry with the help of 39 statements. In
                                 context specific (Babakus and Boller,           the present study, three statements have
                                 1992). The core service portrays the            been used to measure the behavioural
                                 ‘content’ of a service what is delivered is     intention among the guests.
                                 as substantial as how it is delivered.
                                 Schneider and Bowen (1995) classified that      Interrelationships among SQ, CS, and
                                 many a time managers become so involved         BI
                                 with all the procedures, processes and
                                 contexts for service, that they tend to         Brady and Robertson (2001) believed that
                                 overlook that there is also something called    service quality is antecedent to satisfaction.
                                 the ‘core service’. Rust and Oliver (1994)      They argue that since service quality is a
                                 defined the service product as whatever         cognitive evaluation, a positive service
                                 service ‘features’ that is offered. Schneider   quality perception can head to satisfaction,
                                 and Bowmen (1995) who also argued that          which may turn lead to favourable
                                 fancy facilities, modern equipment, stylish     behavioural intentions. Dabholkar (1995)
                                 uniforms and terrific signs can never           suggested that the antecedent role of
                                 countervail for poor financial advice.          service quality and satisfaction is situation
                                 Houser and Clausing (1988) also                 specific and that if a consumer is cognitive

16                                                                                   Journal of Marketing & Communication
oriented, he or she will perceive the               Research Methodology
relationship as service quality causing
satisfaction, whereas if a consumer is              Scale Development
affective oriented he or she will perceive          The service quality in hotel industry,
the relationship as satisfaction causing                                                                     Behavioural intention
                                                    customers’ satisfaction and their                   represents the repurchase
service quality. Cronin et al, (2000)               behavioural intention have been examined            intentions word of mouth,
concluded that direct link between service          with the help of the statements drawn from                 loyalty complaining
quality and behavioural intentions is               the reviews. These are presented in                       behaviour, and price
significant. In the present study, the impact       Table.1.                                                sensitivity (Zeithaml et
of service quality on Customer Satisfaction                                                                al, 1996). Bourton et al
and behavioural intention has been                                                                            (2003) revealed that
examined separately.                      Table
                                              -1                                                           customers experience is
                                                                                                            related to behavioural
                        Service Quality Factors in Hotel Industry
                                                                                                               intentions. The more
 Sl.     Service                   No. of    Reliability     Eigen        Percent         Cumulative
                                                                                                            positive the customer’s
 No.     Quality Factors          Service    Coefficient     value           of            percent of          experience, the more
                                  Quality                                 variance          variance     likely he or she is willing
                                 Variables                               explained         explained            to reuse the service.
                                 included
 1.      Service delivery            6         0.8234        3.1817         16.34            16.34
 2.      Tangibles                   6         0.7601        2.9086         14.28            30.62
 3.      Reliability                 5         0.1871        2.7114         11.37            41.99
 4.      Assurance                   4         0.7336        2.5081         10.94            52.93
 5.      Responsiveness              4         0.8408        2.3317          9.37            62.30
 6.      Empathy                     4         0.6808        2.0869          8.61            70.91
 7.      Service Product             5         0.7132        2.0263          8.08            78.99
 8.      Social responsibility       4         0.6569        1.8334          6.79            85.78
         Total                       38
 KMO measure of sampling adequacy: 0.7868                  Bartlett’s test of sphericity: chi-square
                                                           value: 121.08*

Customers Satisfaction (CS)                         Sample questions are: “I am satisfied with
                                                    my decision to visit this hotel and “my
Several studies seem to conclude that               choice to stay at this hotel was a wise one”.
satisfaction as an affective construct rather
than a cognitive construct (Oliver, 1997;           Behavioural Intention (BI)
Olsen, 2002). Rust and Oliver (1994)
defined satisfaction as the “Customer’s             Behavioural intention represents the
fulfillment response”, which is an                  repurchase intentions word of mouth,
evaluation as well as emotion based                 loyalty complaining behaviour, and price
response to a service. Cronin et al, (2000)         sensitivity (Zeithaml et al, 1996). Bourton
assessed service satisfaction using items           et al (2003) revealed that customers
that include interest, enjoyment, surprise,         experience is related to behavioural
anger, wise choice, and doing the right thing.      intentions. The more positive the
In the present study, the concept of                customer’s experience, the more likely he
Westbrook and Oliver’s (1991) four                  or she is willing to reuse the service. Festus
emotion – laden items has been used to              et al., (2006) used three statements.
measure the customers’ satisfaction.
January -April 2008 Vol. 3 Issue 3                                                                                                      17
Table - 2
                                           The Survey Instrument
       Sl.No        Variables
       I            Service Quality
       1.           Individualized attention
       2.           Content of service
       3.           Politeness, respect and friendliness of contact personnel
       4.           Error free records, billing and other transaction
       5.           Equal treatment
       6.           Understanding the specific need of customer
       7.           Service innovation
       8.           Feeling of delight and satisfaction
       9.           Empirical and public responsibility of employees
       9.           Feasibility in language skill
       10.          Convenient and flexible operating hours
       11.          Perform promised service
       12.          Diversity and range of services
       13.          Ability foe a chain at the critical time
       14.          Giving good service at a best value
       15.          Approachability and ease of contact
       II           Customers satisfaction
       1.           Satisfied with the decision to visit this hotel
       2.           My choice of this hotel is a wise are
       3.           I thick I did the right thing when I choose to stay in this hotel
       4.           I enjoy the experience with his hotel
       III          Behavioural intention
       1.           I recommend this hotel to others
       2.           I will stay in this hotel in my future not also
       3.           I will adjust my program according to the availability room in this hotel.


     The five point scale was used to rate the                 highly disagree. The scores assigned on
     afore-said service quality variables,                     these scales range from 5 to 1 respectively.
     customers satisfaction and behavioural
     intention. In the case of service quality                 The Sample
     variables, the guests are asked to rate at
     five point scale namely highly satisfied,                 In order to secure a more representative
     satisfied, moderate, dissatisfied and highly              sample, the convenience sampling
     dissatisfied. The statements related to                   approach has been administered to
     customers satisfaction and their                          distribute the questionnaires among the
     behavioural intention have been also rated                hotel customers in Madurai city, Tamilnadu.
     at five point scale from highly agree to                  Madurai city has been selected for the

18                                                                 Journal of Marketing & Communication
study because of two reasons since it is an      behavioural intention have been examined
ancient Temple city and it is also a tourist     with the help of multiple regression analysis.
spot especially for the pilgrims to visit        The Ordinary Least Square (OLS) method
Meenakshiamman Temple. There are so              has been followed to fit the regression
many hotels in and around Meenakshi-             equation.                                                  The service quality
amman Temple at the heart of city. Only                                                                      variables in hotel
                                                                                                      industry are narrated by
those hotels have been selected for the          Results
                                                                                                       the factor analysis. The
study. In total, 30 hotels have been                                                                   resulted service quality
                                                 Descriptive Statistics
purposively selected. From each hotel, 10                                                                   factors are Service
guests have been selected at the                                                                           delivery, Tangibles,
                                                 The sample of guests ranged from the
convenience of the researcher. Our                                                                      Reliability, Assurance,
                                                 under graduation level of education of
samples included employees of Major                                                                  Responsiveness, Empathy,
                                                 (41.20 percent) and to professional
Corporations, State, and Central                                                                          Service product and
                                                 education (21.71 percent). About 48.11                  Social responsibility.
government establishments, members of
                                                 percent of the guests belonged to the
different religious organizations and
                                                 occupational background of employees of
businessmen. The response rate among the
                                                 major corporations, State and Central
sampled guests is only 58.66 of those
                                                 government establishment followed by
percent. Those 176 completed
                                                 businessmen forming 29.68 percent to the
questionnaires have been included for the
                                                 total. The dominant guests’ age group was
present study.
                                                 41 to 50 (36.19 percent) and 31 to 40 (28.04
                                                 percent). The majority of the guests had
Data Analysis
                                                 stayed in a hotel for 2.04 days (61.89
The present study reviewed the descriptive       percent).
statistics with a data distribution on the
basis of level of education, annual income,      Service quality factors in hotel
age, occupation, and average days stayed
in hotel. The Kaiser-Meyer-Ohlin (KMO)           The service quality factors have been
measure of sampling adequacy and                 identified with the help of factor analysis.
Bartlett’s test of sphericity have been          The resulted number of service quality
executed to test the validity of data for        factors, its Eigen value, percent of variance
factor analysis. After the confirmation of       explained, reliability coefficient is illustrated
these two tests, the Principal component         in Table.2.
analysis has been used to narrate the
service quality variables into service quality   The service quality variables in hotel
factors. In our analysis, only factors with      industry are narrated by the factor analysis.
Eigen value greater than one are retained.       The resulted service quality factors are
Factor matrix is transformed through             Service delivery, Tangibles, Reliability,
rotation into a simpler one that is easier to    Assurance, Responsiveness, Empathy,
interpret. It does not affect the percentage     Service product and Social responsibility.
of total variance explained. However, the        The important service quality factors are
variance explained by the individual factors     Service delivery, Tangibles and Reliability
is redistributed by rotation. The most           since its Eigen values are 3.1817, 2.9086
commonly used method is Varimax rotation         and 2.7114 respectively. The percent of
procedure. This procedure maximizes the          variation explained by the above three
variance of loadings on each factor, thus        service quality factors are 16.34, 14.28 and
minimizing the complexity of the factors.        11.37 percent respectively. It connotes that
                                                 the service quality factors namely service
The impact of service quality factors on         delivery, tangibles and reliability explain all
the customer’s satisfaction and their            38 service quality variables together to the

January -April 2008 Vol. 3 Issue 3                                                                                                19
extent of 16.34, 14.28 and 11.37 percent         Assurance are 6, 6, 5 and 4 respectively.
                                 respectively.                                    The included service quality variables in
                                                                                  the above said four service quality factors
                                 The last three service quality factors           explain the respective service quality
     These service quality       identified by factor analysis are Empathy,       factors to the extent of 82.34, 76.01, 8171
     factor namely ‘service      Service product and Social responsibility        and 73.36 percent respectively, since their
     delivery’ consists of
                                 since their Eigen values are 2.0869, 2.0263      reliability coefficients are 0.8234, 0.7601,
     service quality variables
     namely standardized,        and 1.8334 respectively. The respective          0.8171 and 0.7336 respectively. The
     structured and simplified   percentage of variation explained by the         service quality variables included in
     delivery process, getting   above three factors are 8.61, 8.08 and 6.09      responsiveness, empathy, service product
     feedback from customers,    respectively. All the eight service quality      and social responsibility explain the
     enhancement of              factors explain the service quality variables    respective service quality factors to the
     technological capability,   in the hotel industry to the extent of 85.78     extent of 84.08, 68.08, 71.32 and 65.69
     effective redressal         percent.                                         percent respectively since their respective
     system, foolproof                                                            reliability coefficients are 0.8408, 0.6808,
     procedures and              Service Quality Variables in each factor         0.7132 and 0.6569. The variables included
     procedures and
                                                                                  in the eight service quality factors are given
     processes; and adequate
     and necessary personal      The included service quality variables in        in Table 3.
     facilities since their      Service delivery, Tangibles, Reliability and
     respective factor
     loadings are higher in                                               Table 3
     the service delivery                                 Service Quality Variables in each factor
     factor than in the other
                                  Sl.No.   Service Quality Factors                  Service Quality Variables
     factors.
                                  1.       Service delivery              V 15      V28       V25      V33       V22     V37
                                  2.       Tangibles                     V1        V13        V7      V21       V38     V32
                                  3.       Reliability                   V24        V4       V27      V16       V10
                                  4.       Assurance                     V6        V18       V31      V12
                                  5.       Responsiveness                V19        V3       V29       V9
                                  6.       Empathy                       V2        V36       V23      V14
                                  7.       Service Product               V30        V5       V17      V26       V35
                                  8.       Social responsibility         V8        V34       V11      V20


                                 These service quality factor namely              dressed personnel, classy and comfortable
                                 ‘service delivery’ consists of service quality   ambient conditions, physical layout of
                                 variables namely standardized, structured        equipment and others furnishings; and
                                 and simplified delivery process, getting         proper housekeeping. The ‘reliability’ factor
                                 feedback from customers, enhancement of          consists of right delivery of service at first
                                 technological capability, effective redressal    time, service provider’s ability to display a
                                 system, foolproof procedures and                 positive moment of truth, perform promised
                                 procedures and processes; and adequate           service, interest to solve customers problem
                                 and necessary personal facilities since their    and error free records, billing and other
                                 respective factor loadings are higher in the     transactions. The ‘assurance’ factor
                                 service delivery factor than in the other        consists of politeness, respect and
                                 factors. The included service quality            friendliness of contact personnel, feeling
                                 variables in tangibles are appearance of         of delight and satisfaction, ability for action
                                 physical facilities, equipment etc; well         at critical time and trust worthiness and

20                                                                                    Journal of Marketing & Communication
honesty of the service provider. The              responsibility of employees since their
‘responsiveness’ factor consists of               respective factor loadings are higher in the
providing prompt and timely service, ability      social responsibility factor compared to
to communicate provision of services,             other service quality factors.
availability of service providers at required                                                             The service quality
                                                                                                        variables included in
time and willingness to help customers            SERVPERF Scale on Service Quality
                                                                                                          service product are
whereas the ‘empathy’ factor consists of          Factors
                                                                                                       diversity and range of
individualized attention, approachability and                                                             services, contact of
ease of contact, flexibility in language skill    The SERVPERF scale represents the                            service, service
and understanding the specific needs of           performance – only measurement on the              innovation, convenient
customers.                                        service quality factors. The SERVPERF               and flexible operating
                                                  scale on SQFs is computed by the mean             hours, and intensity and
The service quality variables included in         score of perception service quality                    depth of service. The
service product are diversity and range of        variables in each SQF. The mean score of               social responsibility
services, contact of service, service             SERVPERF scale on each SQF among the                       factor consists of
                                                                                                                concession to
innovation, convenient and flexible               guests have been computed to exhibit the
                                                                                                          economically poor,
operating hours, and intensity and depth of       guests’ perception on SQFs. In order to
                                                                                                   giving to good service at
service. The social responsibility factor         analyze the consistency of the perception                a best value, equal
consists of concession to economically poor,      on SQFs, the standard deviation and                  treatment, and ethical
giving to good service at a best value, equal     coefficient of variation of each SQFs have       and public responsibility
treatment, and ethical and public                 been measured separately.                          of employees since their
                                                                                                             respective factor
                                   Table 4                                                            loadings are higher in
           SERVPERF Scale on Service Quality Factors among the Guests                               the social responsibility
                                                                                                   factor compared to other
  Sl.No.   Service Quality           Mean Score of           Standard        Coefficient of
           Factors                    SERVPERF               Deviation          Variation             service quality factors.
                                                                              (in percent)
  1.       Service delivery              3.6814               0.4377             11.89
  2.       Tangibles                     3.3403               0.4703             14.08
  3.       Reliability                   2.9194               0.6253             21.42
  4.       Assurance                     3.0645               0.4915             16.04
  5.       Responsiveness                2.5823               0.6841             26.49
  6.       Empathy                       2.1708               0.6801             31.33
  7.       Service Product               3.0344               0.5768             19.01
  8.       Social responsibility         2.7139               0.5897             21.73


The highly perceived SQFs in hotel industry       and 14.08 percent respectively. The
among the guests are service quality              analysis reveals that the guests’ perceptions
delivery and tangibles since their respective     are moderate in service delivery and
mean scores are 3.6814 and 3.3403. The            tangibles in hotel industry whereas it is very
lesser perceived SQFs in hotel industry           poor on empathy and responsiveness
among the guests are empathy and                  factors.
responsiveness since their respective mean
scores are 2.1708 and 2.5823. The higher          Association between Profile of the
consistency in the perception on service          Guests and Their Perception on SQFs
delivery and tangibles has been identified        The perception on SQFs among the guests
since their coefficient of variation is 11.89     may be associated with their profile. The

January -April 2008 Vol. 3 Issue 3                                                                                                21
included profile variables in the present         delivery, tangibles, reliability, assurance,
                                  study are level of education, annual income,      responsiveness, empathy, service product
                                  age, occupation and average number of             and social responsibility, the one way
                                  days stayed at the hotel. In order to             analysis of variance has been administered.
     Regarding the
                                  examine the association between the profile       The results are given in Table. 5.
     perception in service
     delivery and tangibles
                                  of guests and their perception on service
     the significantly                                               Table.5
     associating profile
                                    Association between Profile of Guests and their SERVPERF Scale on SQFs
     variables are level of
     education, annual                                                                             F. Statistcs
     income, age and average
                                   Sl.No   Service                  Level of      Annual        Age       Occupation    Average
     number of days stayed
                                           Quality                 Education      Income                                 No. of
     since their respective ‘F’
                                                                                                                          days
     statistics are significant                                                                                          stayed
     at five percent level. The
     significantly associating     1.      Service delivery         2.9198*       3.1441*      2.7803*       1.8644     2.5089*
     profile variables with        2.      Tangibles                3.0432*       2.9617*      2.8184*       2.0861     2.7162*
     the perception on
     reliability are age and       3.      Reliability              2.1143        2.0869       2.9029*       2.4533     2.4084*
     average number of days        4.      Assurance                2.2096        2.4503*      2.4086        2.1447     2.3991*
     stayed whereas
     regarding the perception      5.      Responsiveness           2.5168*       2.4114*      1.9908        1.9096     3.0144*
     on assurance, these           6.      Empathy                  2.7061*       2.0869       2.6864*       2.5163     3.1234*
     significant profile
     variables are annual          7.      Service Product          3.1783*       2.7103*      2.0733       2.8189*     2.1708*
     income and average            8.      Social responsibility    2.8189*       2.1143       2.1508        2.0614     2.6606*
     number of days stayed.

                                  Regarding the perception in service               level of education, annual income,
                                  delivery and tangibles the significantly          occupation and average number of days
                                  associating profile variables are level of        stayed whereas in the perception on social
                                  education, annual income, age and average         responsibility, the profile variables are level
                                  number of days stayed since their                 of education and average number of days
                                  respective ‘F’ statistics are significant at      stayed. In total, the highly associating
                                  five percent level. The significantly             profile variables with the perception on
                                  associating profile variables with the            SQFs are average number of days stayed,
                                  perception on reliability are age and             level of education and annual income.
                                  average number of days stayed whereas
                                  regarding the perception on assurance,            Impact of SERVPERF Scale on SQFs
                                  these significant profile variables are           on Customers Satisfaction
                                  annual income and average number of days
                                  stayed. Regarding the perception on               The customers’ satisfaction among the
                                  responsiveness, the significantly associating     guests have been computed from the mean
                                  profile variables are level of education,         score of four related statements. The
                                  annual income and average number of days          customers’ satisfaction may be caused by
                                  stayed whereas these significant profile          their perception on SQFs. The present
                                  variables regarding the perception on             study has made an attempt to analyze the
                                  empathy are level of education, age and           impact of SERVPERF scale on SQFs on
                                  average number of days stayed. The                customers’ satisfaction with the help of
                                  significantly associating profile variables       multiple regression analysis. The field
                                  with the perception on service product are        regression model is
22                                                                                         Journal of Marketing & Communication
Y = a + b 1x 1 + b 2x 2 +                          b 1 , b 2 , ………… b 8 –
……………. + b8x8 + e                                    Regression coefficients of independent
Whereas      y – score on customers                  variables
satisfaction                                                    a – Intercept and
                                                                                                              The significantly
             x 15 x 21 , ……………x 8 –                             R – Error term
                                                                                                      influencing SERVPERF
Score of perception on eight SQFs                                                                            scale on SQFs on
                                                                                                       customers’ satisfaction
                                     Table 6                                                              are service delivery,
      Regression coefficient of SERVPERF Scale on SQFs on the Customers                                 reliability, assurance,
                                   Satisfaction                                                            responsiveness and
                                                                                                           empathy since their
 Sl.No    Service Quality            Standardised   Standard Error    t- Statistics    P - Value         respective regression
          Factors (SQFs)              Regression                                                               coefficients are
                                      Coefficient                                                            significant at five
 1.       Service delivery              0.3146          0.0582           5.4055          0.0217                  percent level.

 2.       Tangibles                     0.1043          0.1103           0.9456          0.2908
 3.       Reliability                   0.2169          0.0739           2.9351          0.0432
 4.       Assurance                     0.2345          0.0441           5.3174          0.0308
 5.       Responsiveness                0.3039          0.0862           3.5255          0.0371

 6.       Empathy                       0.1864          0.0261           7.1417          0.0049
 7.       Service Product               0.1011          0.0863           1.1715          0.4086
 8.       Social responsibility         0.0689          0.1339           0.5146          0.7018
          Constant                      1.2345
              2
          R                             0.7938
          F – Statistics               12.8142                                           0.0371



The significantly influencing SERVPERF               as customers’ delight. When the customer
scale on SQFs on customers’ satisfaction             is highly satisfied, he may have repurchase
are service delivery, reliability, assurance,        intention, positive word of mouth and
responsiveness and empathy since their               loyalty. In the present study, the behavioural
respective regression coefficients are               intention is measured from the mean score
significant at five percent level. A unit            of three related statements. The impact of
increase in the perception on above said             SERVPERF scale on SQFs on the
SQFs result in an increase in customers              behavioural intentions among the guests has
satisfaction by 0.3146, 0.2169, 0.2345,              also been examined with the help of multiple
0.3039 and 0.1864 units respectively. The            regression analysis. The fitted regression
changes in the perception on SQFs explain            model is
the changes in customers satisfaction to the
extent of 79.38 percent.                                    Y = a + b1x1 + b2x2 + …………….
                                                     + b8x8 + e
Impact of SERVPERF Scale on SQFs                     Whereas      y – score on behavioural
on Behavioural Intention                             intention
                                                                  x 15 x 21 , ……………x 8 –
The behavioural intention is a extreme level         Score on Service Quality Factors
of customers satisfaction. It is also called

January -April 2008 Vol. 3 Issue 3                                                                                                 23
b 1 , b 2 , ………… b 8 –                            a – Intercept and
                              Regression coefficients of independent                        R – Error term
                              variables                                               The regression coefficient of SQFs
                                                                                is summarized in Table. 7.
     The changes in the
     perception on SQFs
     explain the changes in                                       Table 7
     behavioural intention          Regression Coefficient of SERVPERF Scale on SQFs on Behavioural
     among the customers to                                      Intention
     the extent of 57.32       Sl.No   Service Quality          Standardised   Standard Error    t- Statistics    P - Value
     percent. The analysis             Factors (SQFs)            Regression
     reveals the importance                                      Coefficient
     of SQFs namely service
     delivery, reliability,    1.      Service delivery            0.1908          .0594            3.2121         0.0339
     assurance and             2.      Tangibles                   0.0943          0.0811           1.1627         0.1863
     responsiveness in
                               3.      Reliability                 0.2563          0.0791           3.2402         0.0292
     building customers
     loyalty.                  4.      Assurance                   0.1817          0.0834           2.1786         0.0491
                               5.      Responsiveness              0.2406          0.0616           3.9058         0.0417
                               6.      Empathy                     0.1993          0.1208           1.6498         0.1039
                               7.      Service Product             0.1244          0.0969           1.2838         0.2141
                               8.      Social responsibility       0.1021          0.1733           0.5892         0.4563
                                       Constant                    0.3962
                                           2
                                       R                           0.5732
                                       F – Statistics              8.1784                                          0.0411


                              The significantly influencing SQFs in the         guests visited the hotels. The factor
                              behavioural intention among the customers         analysis resulted in eight important service
                              are service delivery, reliability, assurance      quality factors namely service delivery,
                              and responsiveness since their regression         tangibles, reliability, assurance,
                              coefficients are significant at five percent      responsiveness, empathy, service product
                              level. A unit increase in the perception on       and social responsibility. The perception on
                              above said SQFs result in an increase in          service quality factors among the guests
                              the behavioural intention of customers by         in hotel industry are from moderate to
                              0.1908, 0.2563, 0.1817 and 0.2406 units           dissatisfied. The highly associating profile
                              respectively. The changes in the perception       variables with their perception on SQFs are
                              on SQFs explain the changes in                    their level of education annual income and
                              behavioural intention among the customers         average number of days stayed in hotel.
                              to the extent of 57.32 percent. The analysis      The significantly influencing perception of
                              reveals the importance of SQFs namely             SQFs on the customers’ satisfaction and
                              service delivery, reliability, assurance and      their behavioural intention are service
                              responsiveness in building customers              delivery, reliability, assurance and
                              loyalty.                                          responsiveness.

                              Conclusions            and       Managerial       Based on results reported in the present
                              Implications                                      study, service provides in the hotel industry
                                                                                understand the role of service delivery,
                              The service quality developed in this study       reliability, assurance and responsiveness in
                              was calibrated using the data from the

24                                                                                  Journal of Marketing & Communication
the customers’ satisfaction and their                              the hotel employees have first hand
behavioural intention. In order to                                 knowledge about the characteristics of hotel
successfully operate a hotel that gives                            guests’ frequently reported problems, hotel
customer a satisfactory experience, hotel                          managers should encourage and reward
                                                                                                                                         The hotel management
managers need to understand what                                   employee input to hotel’s internal public.
                                                                                                                                     should establish a system
customers want and how they assess the                             Hotel managers may improve the tangibles                                     to monitor their
hotel service quality. The present study                           dimensions by helping hotels’ physical                                 customers’ needs and
complied about of 38 smile quality variables                       environment clean and attractive. Up-to-                                their perceptions on
(grouped into 8 factors) an average hotel                          date technology may be employed to                                   service quality in order
customer often uses to assess the hotel                            conserve energy, reduce water                                      to encourage finding out
services, Our operational questionnaire                            consumption, and present national beauty                              an effective resolution
could provide several terms to hotel                               in the outside appearance of the hotel.                                strategy. Only when a
managers in items of how to shape hotel                                                                                              service culture is created,
guests’ experience. Concentrating on the                           The findings indicate that while service                              the hotel management
                                                                                                                                             ensure the effective
eight identified service quality factors, the                      quality is an important driver of customer
                                                                                                                                        delivery of service most
service delivery, tangibles, reliability and                       satisfaction and behavioural intention, the                                  desired by their
assurance appear to be slightly more                               managers should give more importance not                                           customers.
important than other service quality factors                       only on their customers’ satisfaction but
since their respective Eigen values are                            their delight. Given that companies could
higher than others.                                                increase profiles by 100 percent by
                                                                   remaining just 5 percent more of their
As service delivery dimensions, front line                         customers (Reichheld and Sasser, 1990), it
service providers in hotel need to give                            is important for service providers to
standardized, structured and simplified                            understand the relevant service quality
delivery process. Regarding the tangible                           factors in their industry that could reinforce
dimensions, the hotel authorities have to                          positive customers’ satisfaction. The hotel
provide attractive physical facilities,                            management should establish a system to
equipment etc. By the reliability dimensions                       monitor their customers’ needs and their
the hotel personnel are advised to deliver                         perceptions on service quality in order to
their service right even at the first time                         encourage finding out an effective
itself. On the other hand, in order to                             resolution strategy. Only when a service
enhance assurance dimensions, hotel                                culture is created, the hotel management
authority should have trained personnel in                         ensure the effective delivery of service
order to deliver polite, respected and                             most desired by their customers.
friendly service to their customers. Since

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26                                                                                 Journal of Marketing & Communication
32605215

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  • 1. Service Quality, Customer Satisfaction and Behavioural Intention in Hotel Industry J. Vijayadurai Attracting new customers alone is insufficient, as the management must concentrate on preventing “customers-exit” since the cost of attracting new customers is higher than the cost of retaining existing customers. The key to customers retention is customer satisfaction and loyalty which is largely dependant upon the service quality offered by the hotels. In this juncture, the present study has made an attempt to fulfill the following objectives: i) To identify the service quality factors in the hotel industry. ii) To analyze the customers satisfaction and their behavioral intention and iii) To examine the impact of service quality on the customers satisfaction and their behavioral intention. In total, 30 hotels have been purposively selected. From each hotel, 10 guests have been selected at the convenience of the researcher. The resulted service quality factors are Service delivery, Tangibles, Reliability, Assurance, Responsiveness, Empathy, Service product and Social responsibility. The highly perceived SQFs in hotel industry among the guests are service quality delivery and tangibles. The study reveals that the guests’ perceptions are moderate in service delivery and tangibles in hotel industry whereas it is very poor on empathy and responsiveness factors. The significantly influencing SQFs in the behavioural intention among the customers are service delivery, reliability, assurance and responsiveness. The findings indicate that while service quality is an important driver of customer satisfaction and behavioural intention. It is important for service providers to understand the relevant service quality factors in their industry that could reinforce positive customers’ satisfaction. T he service sector plays an barrier industry is being perceived as an increasingly important role in attractive option for those bitten by the modern economics. In India, the entrepreneurial bug. After globalization, service sector has been emerging as the the growth of hotels have been witnessed dominant component of the economy. The to face the major challenge of improving strong economic growth, increased quality of the service offered, in order to disposable income, urbanization and the attract a large number of domestic and impact of various factors have fuelled a foreign customers. Attracting new strong need for tourism in India. The hotel customers alone is insufficient, as the business being a comparatively low entry management must concentrate on preventing “customers-exit” since the cost of attracting new customers is higher J.Vijayadurai is S.G Lecturer, Department of Business Administration, N.M.S.S.V.N.College, Madurai. 14 Journal of Marketing & Communication
  • 2. than the cost of retaining existing labour intensity to propose a two customers. The key to customers retention dimensional service process matrix. He is customer satisfaction and loyalty which divided the landscape of services into is largely dependant upon the service service factory, service shop, mass service Many researchers have quality offered by the hotels. In this juncture, and professional service. defined the meaning of the present study has made an attempt to quality in different ways. fulfill the following objectives: Several authors have considered various This quality construct has aspects of customer contact, customer been variously defined as i) To identify the service quality factors involvement and degree of provider value (Feizenbaum, in the hotel industry. discretion (Kellogg and Chase, 1995; 1951), conformance to ii) To analyze customers’ satisfaction and Lovelock 1983). This study adopts requirements (Crosby, their behavioural intention and 1979), fitness for use Schemenner classification, because it iii) To examine the impact of service (Juran et al., 1974), contains several elements of the “degree quality on customers satisfaction and meeting customers’ of customer interaction, customization” their behavioural intention. expectations under different levels of plant and (Parasuraman et al., Conceptual Foundations: equipment intensity commonly experienced 1985) and the totality of in service delivery systems (Mills and the features and Over the past 30 years, several authors have Marguiles, 1980). As highlighted above, characteristics of a attempted to develop coherent Schemenner (1986) classified hotels (the product or service that classification schemes for services. The lodging industry) as a service quality. bear on its ability to intent of such schemes is to bring parsimony satisfy stated or implied and order to allow a better understanding Service Quality (SQ) needs (ANSI/ASQS, of the characteristics that differentiate 1987). services and the organizations that provide Many researchers have defined the them. The following section reviews some meaning of quality in different ways. This of these schemes. quality construct has been variously defined as value (Feizenbaum, 1951), conformance Service Typology and Service Quality to requirements (Crosby, 1979), fitness for use (Juran et al., 1974), meeting customers’ Cook et al. (1999) chronicled the previous expectations (Parasuraman et al., 1985) and work in the development of service the totality of the features and typology, and presented both the marketing characteristics of a product or service that oriented and operations – oriented views bear on its ability to satisfy stated or implied of service dimensions. Marketing-oriented needs (ANSI/ASQS, 1987). In services views used in the literature to classify marketing literature, the most widely used service dimensions include intangibility, definition of service quality is “to meet the differentiation, object of transformation, customers’ expectations”, as defined by type of customer and commitment. Parasuraman et al., (1985). They found that Classification schemes based on the service quality could neither be operations – oriented view include conceptualized nor evaluated by traditional customers contact, customer involvement, ‘goods quality’ methods because services labour intensity, and degree of possess three characteristics: intangibility, customization, degree of employee heterogeneity and inseparability discretion and production process. (Parasuraman et al., 1985). They also Fitzsimmons and Fitzsimmons (2004) went developed an instrument called for a more detailed discussion of each of SERVQUAL to measure service quality by the service classification outlined above. comparing of customer’s expectations with Schemenner (1986) combined the degree their perceptions of the service of customer contact and customization with performance. Both the original January -April 2008 Vol. 3 Issue 3 15
  • 3. SERVQUAL version (Parasuraman et al., demonstrated the influence of diverse 1988) and the revised version product attitudes on customers’ (Parasuraman et al., 1991, 1994) contain perceptions. Zenike and Schaaf (1990) five dimensions: tangibles, reliability, identified the two distinct and disparate Oberai and Hales (1990) responsiveness, assurance and empathy. features: Human element of service used ten dimensions to delivery, which has been effectively measure the service Although SERVQUAL has become one of addressed by the SERVQUAL. The quality in hotel industry the leading instruments of service quality, process, procedures, systems and as reliability, it has been subjected with some criticisms. technology would make service responsiveness, These criticisms included the application seamlessness one. The second aspect is competitiveness, access, courteous, to other service settings (Carman, 1990), as crucial as the first one. Guests would communication, the conceptualization of service quality always like and expect the service delivery credibility, security, (Cronin and Taylor, 1992; Teas, 1993) and processes to be perfectly standardized, understanding and the dimensions and contents of service streamlined and simplified so that they tangible. quality (Muttal and Lassar, 1996; could receive the service without any Sureshchandar et al., 2001). In the present hassles, hiccups or undesired/ inordinate study, the focus is on the contents of questioning by the service providers. SERVPERF. It is the measurement of the Drumond (1992) identified the production customers’ perceptions of the performance interface and delivery interface to measure of a service provider and adequate the service quality tourism industry. Oberai assessment for service quality (Peter et and Hales (1990) used ten dimensions to al., 1993; Bebko, 2000; Andaleep and Basu, measure the service quality in hotel 1994). industry as reliability, responsiveness, competitiveness, access, courteous, Service Quality in Hotel Industry: communication, credibility, security, understanding and tangible. Saxena and Several researchers have suggested that Kishor (1996); and Kapil Kumar (1996) the search for universal conceptualization have created some dimensions to measure of the service quality construct may be the service quality in tourism. On the basis futile (Levitt, 1987; Lovelock 1983) and of the above literature, the present study arguments have been advanced to suggest measures the service quality in hotel that service quality is either industry or industry with the help of 39 statements. In context specific (Babakus and Boller, the present study, three statements have 1992). The core service portrays the been used to measure the behavioural ‘content’ of a service what is delivered is intention among the guests. as substantial as how it is delivered. Schneider and Bowen (1995) classified that Interrelationships among SQ, CS, and many a time managers become so involved BI with all the procedures, processes and contexts for service, that they tend to Brady and Robertson (2001) believed that overlook that there is also something called service quality is antecedent to satisfaction. the ‘core service’. Rust and Oliver (1994) They argue that since service quality is a defined the service product as whatever cognitive evaluation, a positive service service ‘features’ that is offered. Schneider quality perception can head to satisfaction, and Bowmen (1995) who also argued that which may turn lead to favourable fancy facilities, modern equipment, stylish behavioural intentions. Dabholkar (1995) uniforms and terrific signs can never suggested that the antecedent role of countervail for poor financial advice. service quality and satisfaction is situation Houser and Clausing (1988) also specific and that if a consumer is cognitive 16 Journal of Marketing & Communication
  • 4. oriented, he or she will perceive the Research Methodology relationship as service quality causing satisfaction, whereas if a consumer is Scale Development affective oriented he or she will perceive The service quality in hotel industry, the relationship as satisfaction causing Behavioural intention customers’ satisfaction and their represents the repurchase service quality. Cronin et al, (2000) behavioural intention have been examined intentions word of mouth, concluded that direct link between service with the help of the statements drawn from loyalty complaining quality and behavioural intentions is the reviews. These are presented in behaviour, and price significant. In the present study, the impact Table.1. sensitivity (Zeithaml et of service quality on Customer Satisfaction al, 1996). Bourton et al and behavioural intention has been (2003) revealed that examined separately. Table -1 customers experience is related to behavioural Service Quality Factors in Hotel Industry intentions. The more Sl. Service No. of Reliability Eigen Percent Cumulative positive the customer’s No. Quality Factors Service Coefficient value of percent of experience, the more Quality variance variance likely he or she is willing Variables explained explained to reuse the service. included 1. Service delivery 6 0.8234 3.1817 16.34 16.34 2. Tangibles 6 0.7601 2.9086 14.28 30.62 3. Reliability 5 0.1871 2.7114 11.37 41.99 4. Assurance 4 0.7336 2.5081 10.94 52.93 5. Responsiveness 4 0.8408 2.3317 9.37 62.30 6. Empathy 4 0.6808 2.0869 8.61 70.91 7. Service Product 5 0.7132 2.0263 8.08 78.99 8. Social responsibility 4 0.6569 1.8334 6.79 85.78 Total 38 KMO measure of sampling adequacy: 0.7868 Bartlett’s test of sphericity: chi-square value: 121.08* Customers Satisfaction (CS) Sample questions are: “I am satisfied with my decision to visit this hotel and “my Several studies seem to conclude that choice to stay at this hotel was a wise one”. satisfaction as an affective construct rather than a cognitive construct (Oliver, 1997; Behavioural Intention (BI) Olsen, 2002). Rust and Oliver (1994) defined satisfaction as the “Customer’s Behavioural intention represents the fulfillment response”, which is an repurchase intentions word of mouth, evaluation as well as emotion based loyalty complaining behaviour, and price response to a service. Cronin et al, (2000) sensitivity (Zeithaml et al, 1996). Bourton assessed service satisfaction using items et al (2003) revealed that customers that include interest, enjoyment, surprise, experience is related to behavioural anger, wise choice, and doing the right thing. intentions. The more positive the In the present study, the concept of customer’s experience, the more likely he Westbrook and Oliver’s (1991) four or she is willing to reuse the service. Festus emotion – laden items has been used to et al., (2006) used three statements. measure the customers’ satisfaction. January -April 2008 Vol. 3 Issue 3 17
  • 5. Table - 2 The Survey Instrument Sl.No Variables I Service Quality 1. Individualized attention 2. Content of service 3. Politeness, respect and friendliness of contact personnel 4. Error free records, billing and other transaction 5. Equal treatment 6. Understanding the specific need of customer 7. Service innovation 8. Feeling of delight and satisfaction 9. Empirical and public responsibility of employees 9. Feasibility in language skill 10. Convenient and flexible operating hours 11. Perform promised service 12. Diversity and range of services 13. Ability foe a chain at the critical time 14. Giving good service at a best value 15. Approachability and ease of contact II Customers satisfaction 1. Satisfied with the decision to visit this hotel 2. My choice of this hotel is a wise are 3. I thick I did the right thing when I choose to stay in this hotel 4. I enjoy the experience with his hotel III Behavioural intention 1. I recommend this hotel to others 2. I will stay in this hotel in my future not also 3. I will adjust my program according to the availability room in this hotel. The five point scale was used to rate the highly disagree. The scores assigned on afore-said service quality variables, these scales range from 5 to 1 respectively. customers satisfaction and behavioural intention. In the case of service quality The Sample variables, the guests are asked to rate at five point scale namely highly satisfied, In order to secure a more representative satisfied, moderate, dissatisfied and highly sample, the convenience sampling dissatisfied. The statements related to approach has been administered to customers satisfaction and their distribute the questionnaires among the behavioural intention have been also rated hotel customers in Madurai city, Tamilnadu. at five point scale from highly agree to Madurai city has been selected for the 18 Journal of Marketing & Communication
  • 6. study because of two reasons since it is an behavioural intention have been examined ancient Temple city and it is also a tourist with the help of multiple regression analysis. spot especially for the pilgrims to visit The Ordinary Least Square (OLS) method Meenakshiamman Temple. There are so has been followed to fit the regression many hotels in and around Meenakshi- equation. The service quality amman Temple at the heart of city. Only variables in hotel industry are narrated by those hotels have been selected for the Results the factor analysis. The study. In total, 30 hotels have been resulted service quality Descriptive Statistics purposively selected. From each hotel, 10 factors are Service guests have been selected at the delivery, Tangibles, The sample of guests ranged from the convenience of the researcher. Our Reliability, Assurance, under graduation level of education of samples included employees of Major Responsiveness, Empathy, (41.20 percent) and to professional Corporations, State, and Central Service product and education (21.71 percent). About 48.11 Social responsibility. government establishments, members of percent of the guests belonged to the different religious organizations and occupational background of employees of businessmen. The response rate among the major corporations, State and Central sampled guests is only 58.66 of those government establishment followed by percent. Those 176 completed businessmen forming 29.68 percent to the questionnaires have been included for the total. The dominant guests’ age group was present study. 41 to 50 (36.19 percent) and 31 to 40 (28.04 percent). The majority of the guests had Data Analysis stayed in a hotel for 2.04 days (61.89 The present study reviewed the descriptive percent). statistics with a data distribution on the basis of level of education, annual income, Service quality factors in hotel age, occupation, and average days stayed in hotel. The Kaiser-Meyer-Ohlin (KMO) The service quality factors have been measure of sampling adequacy and identified with the help of factor analysis. Bartlett’s test of sphericity have been The resulted number of service quality executed to test the validity of data for factors, its Eigen value, percent of variance factor analysis. After the confirmation of explained, reliability coefficient is illustrated these two tests, the Principal component in Table.2. analysis has been used to narrate the service quality variables into service quality The service quality variables in hotel factors. In our analysis, only factors with industry are narrated by the factor analysis. Eigen value greater than one are retained. The resulted service quality factors are Factor matrix is transformed through Service delivery, Tangibles, Reliability, rotation into a simpler one that is easier to Assurance, Responsiveness, Empathy, interpret. It does not affect the percentage Service product and Social responsibility. of total variance explained. However, the The important service quality factors are variance explained by the individual factors Service delivery, Tangibles and Reliability is redistributed by rotation. The most since its Eigen values are 3.1817, 2.9086 commonly used method is Varimax rotation and 2.7114 respectively. The percent of procedure. This procedure maximizes the variation explained by the above three variance of loadings on each factor, thus service quality factors are 16.34, 14.28 and minimizing the complexity of the factors. 11.37 percent respectively. It connotes that the service quality factors namely service The impact of service quality factors on delivery, tangibles and reliability explain all the customer’s satisfaction and their 38 service quality variables together to the January -April 2008 Vol. 3 Issue 3 19
  • 7. extent of 16.34, 14.28 and 11.37 percent Assurance are 6, 6, 5 and 4 respectively. respectively. The included service quality variables in the above said four service quality factors The last three service quality factors explain the respective service quality These service quality identified by factor analysis are Empathy, factors to the extent of 82.34, 76.01, 8171 factor namely ‘service Service product and Social responsibility and 73.36 percent respectively, since their delivery’ consists of since their Eigen values are 2.0869, 2.0263 reliability coefficients are 0.8234, 0.7601, service quality variables namely standardized, and 1.8334 respectively. The respective 0.8171 and 0.7336 respectively. The structured and simplified percentage of variation explained by the service quality variables included in delivery process, getting above three factors are 8.61, 8.08 and 6.09 responsiveness, empathy, service product feedback from customers, respectively. All the eight service quality and social responsibility explain the enhancement of factors explain the service quality variables respective service quality factors to the technological capability, in the hotel industry to the extent of 85.78 extent of 84.08, 68.08, 71.32 and 65.69 effective redressal percent. percent respectively since their respective system, foolproof reliability coefficients are 0.8408, 0.6808, procedures and Service Quality Variables in each factor 0.7132 and 0.6569. The variables included procedures and in the eight service quality factors are given processes; and adequate and necessary personal The included service quality variables in in Table 3. facilities since their Service delivery, Tangibles, Reliability and respective factor loadings are higher in Table 3 the service delivery Service Quality Variables in each factor factor than in the other Sl.No. Service Quality Factors Service Quality Variables factors. 1. Service delivery V 15 V28 V25 V33 V22 V37 2. Tangibles V1 V13 V7 V21 V38 V32 3. Reliability V24 V4 V27 V16 V10 4. Assurance V6 V18 V31 V12 5. Responsiveness V19 V3 V29 V9 6. Empathy V2 V36 V23 V14 7. Service Product V30 V5 V17 V26 V35 8. Social responsibility V8 V34 V11 V20 These service quality factor namely dressed personnel, classy and comfortable ‘service delivery’ consists of service quality ambient conditions, physical layout of variables namely standardized, structured equipment and others furnishings; and and simplified delivery process, getting proper housekeeping. The ‘reliability’ factor feedback from customers, enhancement of consists of right delivery of service at first technological capability, effective redressal time, service provider’s ability to display a system, foolproof procedures and positive moment of truth, perform promised procedures and processes; and adequate service, interest to solve customers problem and necessary personal facilities since their and error free records, billing and other respective factor loadings are higher in the transactions. The ‘assurance’ factor service delivery factor than in the other consists of politeness, respect and factors. The included service quality friendliness of contact personnel, feeling variables in tangibles are appearance of of delight and satisfaction, ability for action physical facilities, equipment etc; well at critical time and trust worthiness and 20 Journal of Marketing & Communication
  • 8. honesty of the service provider. The responsibility of employees since their ‘responsiveness’ factor consists of respective factor loadings are higher in the providing prompt and timely service, ability social responsibility factor compared to to communicate provision of services, other service quality factors. availability of service providers at required The service quality variables included in time and willingness to help customers SERVPERF Scale on Service Quality service product are whereas the ‘empathy’ factor consists of Factors diversity and range of individualized attention, approachability and services, contact of ease of contact, flexibility in language skill The SERVPERF scale represents the service, service and understanding the specific needs of performance – only measurement on the innovation, convenient customers. service quality factors. The SERVPERF and flexible operating scale on SQFs is computed by the mean hours, and intensity and The service quality variables included in score of perception service quality depth of service. The service product are diversity and range of variables in each SQF. The mean score of social responsibility services, contact of service, service SERVPERF scale on each SQF among the factor consists of concession to innovation, convenient and flexible guests have been computed to exhibit the economically poor, operating hours, and intensity and depth of guests’ perception on SQFs. In order to giving to good service at service. The social responsibility factor analyze the consistency of the perception a best value, equal consists of concession to economically poor, on SQFs, the standard deviation and treatment, and ethical giving to good service at a best value, equal coefficient of variation of each SQFs have and public responsibility treatment, and ethical and public been measured separately. of employees since their respective factor Table 4 loadings are higher in SERVPERF Scale on Service Quality Factors among the Guests the social responsibility factor compared to other Sl.No. Service Quality Mean Score of Standard Coefficient of Factors SERVPERF Deviation Variation service quality factors. (in percent) 1. Service delivery 3.6814 0.4377 11.89 2. Tangibles 3.3403 0.4703 14.08 3. Reliability 2.9194 0.6253 21.42 4. Assurance 3.0645 0.4915 16.04 5. Responsiveness 2.5823 0.6841 26.49 6. Empathy 2.1708 0.6801 31.33 7. Service Product 3.0344 0.5768 19.01 8. Social responsibility 2.7139 0.5897 21.73 The highly perceived SQFs in hotel industry and 14.08 percent respectively. The among the guests are service quality analysis reveals that the guests’ perceptions delivery and tangibles since their respective are moderate in service delivery and mean scores are 3.6814 and 3.3403. The tangibles in hotel industry whereas it is very lesser perceived SQFs in hotel industry poor on empathy and responsiveness among the guests are empathy and factors. responsiveness since their respective mean scores are 2.1708 and 2.5823. The higher Association between Profile of the consistency in the perception on service Guests and Their Perception on SQFs delivery and tangibles has been identified The perception on SQFs among the guests since their coefficient of variation is 11.89 may be associated with their profile. The January -April 2008 Vol. 3 Issue 3 21
  • 9. included profile variables in the present delivery, tangibles, reliability, assurance, study are level of education, annual income, responsiveness, empathy, service product age, occupation and average number of and social responsibility, the one way days stayed at the hotel. In order to analysis of variance has been administered. Regarding the examine the association between the profile The results are given in Table. 5. perception in service delivery and tangibles of guests and their perception on service the significantly Table.5 associating profile Association between Profile of Guests and their SERVPERF Scale on SQFs variables are level of education, annual F. Statistcs income, age and average Sl.No Service Level of Annual Age Occupation Average number of days stayed Quality Education Income No. of since their respective ‘F’ days statistics are significant stayed at five percent level. The significantly associating 1. Service delivery 2.9198* 3.1441* 2.7803* 1.8644 2.5089* profile variables with 2. Tangibles 3.0432* 2.9617* 2.8184* 2.0861 2.7162* the perception on reliability are age and 3. Reliability 2.1143 2.0869 2.9029* 2.4533 2.4084* average number of days 4. Assurance 2.2096 2.4503* 2.4086 2.1447 2.3991* stayed whereas regarding the perception 5. Responsiveness 2.5168* 2.4114* 1.9908 1.9096 3.0144* on assurance, these 6. Empathy 2.7061* 2.0869 2.6864* 2.5163 3.1234* significant profile variables are annual 7. Service Product 3.1783* 2.7103* 2.0733 2.8189* 2.1708* income and average 8. Social responsibility 2.8189* 2.1143 2.1508 2.0614 2.6606* number of days stayed. Regarding the perception in service level of education, annual income, delivery and tangibles the significantly occupation and average number of days associating profile variables are level of stayed whereas in the perception on social education, annual income, age and average responsibility, the profile variables are level number of days stayed since their of education and average number of days respective ‘F’ statistics are significant at stayed. In total, the highly associating five percent level. The significantly profile variables with the perception on associating profile variables with the SQFs are average number of days stayed, perception on reliability are age and level of education and annual income. average number of days stayed whereas regarding the perception on assurance, Impact of SERVPERF Scale on SQFs these significant profile variables are on Customers Satisfaction annual income and average number of days stayed. Regarding the perception on The customers’ satisfaction among the responsiveness, the significantly associating guests have been computed from the mean profile variables are level of education, score of four related statements. The annual income and average number of days customers’ satisfaction may be caused by stayed whereas these significant profile their perception on SQFs. The present variables regarding the perception on study has made an attempt to analyze the empathy are level of education, age and impact of SERVPERF scale on SQFs on average number of days stayed. The customers’ satisfaction with the help of significantly associating profile variables multiple regression analysis. The field with the perception on service product are regression model is 22 Journal of Marketing & Communication
  • 10. Y = a + b 1x 1 + b 2x 2 + b 1 , b 2 , ………… b 8 – ……………. + b8x8 + e Regression coefficients of independent Whereas y – score on customers variables satisfaction a – Intercept and The significantly x 15 x 21 , ……………x 8 – R – Error term influencing SERVPERF Score of perception on eight SQFs scale on SQFs on customers’ satisfaction Table 6 are service delivery, Regression coefficient of SERVPERF Scale on SQFs on the Customers reliability, assurance, Satisfaction responsiveness and empathy since their Sl.No Service Quality Standardised Standard Error t- Statistics P - Value respective regression Factors (SQFs) Regression coefficients are Coefficient significant at five 1. Service delivery 0.3146 0.0582 5.4055 0.0217 percent level. 2. Tangibles 0.1043 0.1103 0.9456 0.2908 3. Reliability 0.2169 0.0739 2.9351 0.0432 4. Assurance 0.2345 0.0441 5.3174 0.0308 5. Responsiveness 0.3039 0.0862 3.5255 0.0371 6. Empathy 0.1864 0.0261 7.1417 0.0049 7. Service Product 0.1011 0.0863 1.1715 0.4086 8. Social responsibility 0.0689 0.1339 0.5146 0.7018 Constant 1.2345 2 R 0.7938 F – Statistics 12.8142 0.0371 The significantly influencing SERVPERF as customers’ delight. When the customer scale on SQFs on customers’ satisfaction is highly satisfied, he may have repurchase are service delivery, reliability, assurance, intention, positive word of mouth and responsiveness and empathy since their loyalty. In the present study, the behavioural respective regression coefficients are intention is measured from the mean score significant at five percent level. A unit of three related statements. The impact of increase in the perception on above said SERVPERF scale on SQFs on the SQFs result in an increase in customers behavioural intentions among the guests has satisfaction by 0.3146, 0.2169, 0.2345, also been examined with the help of multiple 0.3039 and 0.1864 units respectively. The regression analysis. The fitted regression changes in the perception on SQFs explain model is the changes in customers satisfaction to the extent of 79.38 percent. Y = a + b1x1 + b2x2 + ……………. + b8x8 + e Impact of SERVPERF Scale on SQFs Whereas y – score on behavioural on Behavioural Intention intention x 15 x 21 , ……………x 8 – The behavioural intention is a extreme level Score on Service Quality Factors of customers satisfaction. It is also called January -April 2008 Vol. 3 Issue 3 23
  • 11. b 1 , b 2 , ………… b 8 – a – Intercept and Regression coefficients of independent R – Error term variables The regression coefficient of SQFs is summarized in Table. 7. The changes in the perception on SQFs explain the changes in Table 7 behavioural intention Regression Coefficient of SERVPERF Scale on SQFs on Behavioural among the customers to Intention the extent of 57.32 Sl.No Service Quality Standardised Standard Error t- Statistics P - Value percent. The analysis Factors (SQFs) Regression reveals the importance Coefficient of SQFs namely service delivery, reliability, 1. Service delivery 0.1908 .0594 3.2121 0.0339 assurance and 2. Tangibles 0.0943 0.0811 1.1627 0.1863 responsiveness in 3. Reliability 0.2563 0.0791 3.2402 0.0292 building customers loyalty. 4. Assurance 0.1817 0.0834 2.1786 0.0491 5. Responsiveness 0.2406 0.0616 3.9058 0.0417 6. Empathy 0.1993 0.1208 1.6498 0.1039 7. Service Product 0.1244 0.0969 1.2838 0.2141 8. Social responsibility 0.1021 0.1733 0.5892 0.4563 Constant 0.3962 2 R 0.5732 F – Statistics 8.1784 0.0411 The significantly influencing SQFs in the guests visited the hotels. The factor behavioural intention among the customers analysis resulted in eight important service are service delivery, reliability, assurance quality factors namely service delivery, and responsiveness since their regression tangibles, reliability, assurance, coefficients are significant at five percent responsiveness, empathy, service product level. A unit increase in the perception on and social responsibility. The perception on above said SQFs result in an increase in service quality factors among the guests the behavioural intention of customers by in hotel industry are from moderate to 0.1908, 0.2563, 0.1817 and 0.2406 units dissatisfied. The highly associating profile respectively. The changes in the perception variables with their perception on SQFs are on SQFs explain the changes in their level of education annual income and behavioural intention among the customers average number of days stayed in hotel. to the extent of 57.32 percent. The analysis The significantly influencing perception of reveals the importance of SQFs namely SQFs on the customers’ satisfaction and service delivery, reliability, assurance and their behavioural intention are service responsiveness in building customers delivery, reliability, assurance and loyalty. responsiveness. Conclusions and Managerial Based on results reported in the present Implications study, service provides in the hotel industry understand the role of service delivery, The service quality developed in this study reliability, assurance and responsiveness in was calibrated using the data from the 24 Journal of Marketing & Communication
  • 12. the customers’ satisfaction and their the hotel employees have first hand behavioural intention. In order to knowledge about the characteristics of hotel successfully operate a hotel that gives guests’ frequently reported problems, hotel customer a satisfactory experience, hotel managers should encourage and reward The hotel management managers need to understand what employee input to hotel’s internal public. should establish a system customers want and how they assess the Hotel managers may improve the tangibles to monitor their hotel service quality. The present study dimensions by helping hotels’ physical customers’ needs and complied about of 38 smile quality variables environment clean and attractive. Up-to- their perceptions on (grouped into 8 factors) an average hotel date technology may be employed to service quality in order customer often uses to assess the hotel conserve energy, reduce water to encourage finding out services, Our operational questionnaire consumption, and present national beauty an effective resolution could provide several terms to hotel in the outside appearance of the hotel. strategy. Only when a managers in items of how to shape hotel service culture is created, guests’ experience. Concentrating on the The findings indicate that while service the hotel management ensure the effective eight identified service quality factors, the quality is an important driver of customer delivery of service most service delivery, tangibles, reliability and satisfaction and behavioural intention, the desired by their assurance appear to be slightly more managers should give more importance not customers. important than other service quality factors only on their customers’ satisfaction but since their respective Eigen values are their delight. Given that companies could higher than others. increase profiles by 100 percent by remaining just 5 percent more of their As service delivery dimensions, front line customers (Reichheld and Sasser, 1990), it service providers in hotel need to give is important for service providers to standardized, structured and simplified understand the relevant service quality delivery process. Regarding the tangible factors in their industry that could reinforce dimensions, the hotel authorities have to positive customers’ satisfaction. The hotel provide attractive physical facilities, management should establish a system to equipment etc. By the reliability dimensions monitor their customers’ needs and their the hotel personnel are advised to deliver perceptions on service quality in order to their service right even at the first time encourage finding out an effective itself. On the other hand, in order to resolution strategy. Only when a service enhance assurance dimensions, hotel culture is created, the hotel management authority should have trained personnel in ensure the effective delivery of service order to deliver polite, respected and most desired by their customers. friendly service to their customers. Since References: Cook, D.P., Gobi, C and Chung, C.H. (1999)”, Service typologies: a state of the out survey”, Production and Operations Management, 8(3), pp.318-338. Fitzsimons, J.A. and Fitzsimmons, M.J. (2004), “Service Management: Operations, Strategy and Information technology, 4th edition, Irwin McGraw Hill, New York. Schemenner, R.W.(1986), “How can service businesses survive and prosper?”, Sloan Management Review, 27(3), pp.21-32. Kellogy, D.C. and Chase, E.B. (1995), “Constructing an empirically derived measure for consumer contact”, Management Science, 41(11), pp.1734-17449. Lovelock, C.H. (1983), “Classifying services to gain strategic marketing insights”, Journal of Marketing, 47(3), pp.9-20. Mills, P.K. and Marguiles, N. (1980), “Toward a core typology of service organization”, Academy of Management Review, 5(2), pp.255-265. Feizenbawm, A.V. (1951), “Quality Control: Principles, Practice and Administration McGraw-Hill, New York. Crosby, P.B.(1979), “Quality is Free: The Art of making quality certain”, New American Literary, New York. January -April 2008 Vol. 3 Issue 3 25
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