1. THE RELATIONSHIP BETWEEN SERVICE QUALITY AND
CUSTOMER SATISFACTION IN RELATION TO RESTAURANT
CUSTOMERS OF HOTELS IN MANMUNAI NORTH D.S DIVISION
IN BATTICALOA DISTRICT
A.VASUKI
INDEX : MS/976
REG.NO :EU/IS/08/MS/46
DEPARTMENT OF MANAGEMENT,
FACULTY OF COMMERCE AND MANAGEMENT,
EASTERN UNIVERSITY, SRI LANKA

2. Contents

3. 01. INTRODUCTION
o Sri Lanka aims implementing many economic activities as a process
of the postwar development. Tourism is the key industry that Sri
Lanka devises strategies for economic growth.
o Tourism in general leads to positively impact on all other products
and services with a high level employment opportunity and revenue
growth in Sri Lanka.
o View of developing tourism industry, the Ministry of Economic
Development has been implementing many tourism related projects
and this has made stimulating many entrepreneurs to put up new
hotels around Batticaloa area.

4. 02.PROBLEM IDENTIFICATION
o The relationship among service quality and customer satisfaction has
received considerable attention in the marketing literature .
o The literature on services has made a distinction between service quality
and customer satisfaction . This distinction is also much debate about
whether customer satisfaction is the antecedent of service quality or the
result of service quality.
o The inconclusive nature of the relationship between service quality and
customer satisfaction motivates this study to investigate whether such
relationship between them is really meaningful in the Sri Lankan context.

5. 02.PROBLEM IDENTIFICATION
o Batticaloa is one of the tourist destinations in Sri Lanka.
o As the improvements and developments takes place at a slow rate as a
post-war development, the extent to which the customers are satisfied
with the service provided by the restaurants in Batticaloa is questionable.
o Therefore, The ultimate purpose of this study is to investigate “Does the
service quality have relationship with customer satisfaction?”

6. 03. RESEARCH QUESTIONS
1. Does the service quality have the relationship to customer
satisfaction in relation to restaurant customers of hotels in Batticaloa
Manmunai North DS division?
2. What is the level of service quality of hotel restaurant customers?
3. What is the level of customer satisfaction of hotel restaurant
customers?
4. Is there a significant relationship between service quality dimensions
and customer satisfaction?

7. 04. OBJECTIVES OF THE STUDY
1. To identify the level of service quality
2. To identify the level of customer satisfaction
3. To identify the relationship between the each service quality
dimension and overall customer satisfaction
4. To identify the impact of service quality dimensions on overall
customer satisfaction

8. 05. CONCEPTUAL FRAMEWORK
(Source: Developed for this study)

9. 06. METHODOLOGY
o Sampling Size :
The size of the sample selected for this research was hundred and fifty
o Sampling Method : Convenience sampling
o Method of data collection :
Closed structured questionnaire is the main instrument for the data
collection
The study variables are measured with Likert’s scale from the sample
respondents’ perceived service quality and customer satisfaction.

10. 06. METHODOLOGY
o Method of analyses :
Descriptive statistics, reliability analysis, correlation analysis, and
multiple regression analysis were performed to analyze the
collected data by using Statistical Package of Social Science (SPSS).
o Method of presentation :
The data and results of analyses will be presented appropriately with
tables, figures, pie charts and graphs

11. 06. METHODOLOGY
Univariate Analysis: To assess the levels of study variables (Level of
service quality and level of customer
satisfaction)
o Method of evaluation :
Range for decision criteria
Decision
Criteria
Decision Attribute
Xi < (3-Z σx) Xi < 3 Low Level
(3-Z σx) ≤ Xi ≤ (3+Z σx) Xi = 3 Moderate Level
Xi > (3+Z σx) Xi > 3 High Level

12. 06. METHODOLOGY
Bivariate Analysis: To explore the relationship between service
quality and customer satisfaction
o Method of evaluation :
Range Decision attributes
r=0.1to 0.29 or r= -0.10 to-0.29 Law influence
r=0.3to 0.49 or r= -0.3 to-0.49 Medium influence
r=0.5to 1.0 or r= -0.5 to-1.0 High influence
(+) = positive impact, (-) = negative impact

13. 07.RESULTS AND FINDINGS
o Personal Information
Age Frequency Percent
25 and below 48 32%
26- 35 46 30.7%
36- 45 31 20.7%
above 46 25 16.7%
Total 150 100%
Age distribution

14. 07.RESULTS AND FINDINGS
o Personal Information
Income level Frequency Percent
0- 15000 39 26%
15001-30000 8 5.3%
30001-45000 18 12%
45001-60000 23 15.3%
Above 60001 62 41.3%
Income Level

15. 07.RESULTS AND FINDINGS
o Personal Information
Hotel name Frequency Percent
Rivera Resort 25 16.7
Hotel Bridge View 32 21.3
Hotel East Lagoon 35 23.3
New Sunrise Hotel 23 15.3
Treatooo! Tourist Hotel 35 23.3
Hotel choice

16. 07.RESULTS AND FINDINGS
o Research Information
Main research Question : Does the service quality have the
relationship to customer satisfaction
Pearson Correlation: r 0.890**
Sig. (2-tailed) 0.000
** Correlation is significant at the 0.01 level (2-tailed)
(Source: Survey Data)
There is a strong positive correlation between service quality and
customer satisfaction and that correlation is significant at the significant
level of 0.01

17. 07.RESULTS AND FINDINGS
o Research Information
OBJECTIVE 01 : To identify the level of service quality
Measure Criteria Decision Attribute Frequency Percent%
X1 < 2.951 X1 < 3 Low Level 3 2%
2.951 ≤ X1 ≤ 3.049 X1 = 3 Moderate Level 43 28.7%
X1 > 3.049 X1 > 3 High Level 104 69.3%
Total 150 100%
Mean = 3.838

18. 07.RESULTS AND FINDINGS
o Research Information
OBJECTIVE 02 : To identify the level of customer satisfaction
Measure Criteria Decision Attribute Frequency Percent%
X1 < 2.951 X1 < 3 Low Level 8 5.3%
2.951 ≤ X1 ≤ 3.049 X1 = 3 Moderate Level 56 37.3%
X1 > 3.049 X1 > 3 High Level 86 57.3%
Total 150 100%
Mean = 3.624

19. 07.RESULTS AND FINDINGS
o Research Information
OBJECTIVE 03 : To identify the relationship between the each service
quality dimension and overall customer satisfaction
** Correlation is significant at the 0.01 level (2-tailed)
(Source: Survey Data)
Dimension
CUSTOMER SATISFACTION
Pearson
Correlation
Sig.
(2-tailed)
TANGIBLE 0.706** 0.000
RELIABILITY 0.848** 0.000
RESPONSIVENESS 0.830** 0.000
ASSURANCE 0.812** 0.000
EMPATHY 0.854** 0.000
CLEANLINESS 0.703** 0.000

20. 07.RESULTS AND FINDINGS
o Research Information
OBJECTIVE 04 : To identify the impact of service quality dimensions on
overall customer satisfaction
** Correlation is significant at the 0.01 level (2-tailed)
(Source: Survey Data)
Multiple R 0.899**
R2 0.809
Adjusted R2 0.801
Standard error 0.31
F ratio 100.77
Significance 0.000

21. 07.RESULTS AND FINDINGS
o Research Information
** Correlation is significant at the 0.01 level (2-tailed)
(Source: Survey Data)
Model
Unstandardized Coefficients
Sig
B Standard error
Constant 0.377 0.167 0.025
Tangible -0.039 0.066 0.560
Reliability 0.268 0.074 0.000**
Responsiveness 0.139 0.073 0.059
Empathy 0.071 0.072 0.326
Assurance 0.262 0.079 0.001**
Cleanliness 0.158 0.051 0.002**

22. 07.RESULTS AND FINDINGS
o Research Information
Hypothesis Test
Hypothesis Accept or
not accept
Significance
Level
H1: There is a positive relationship between service
quality and customer satisfaction
Accept p<0.01
H2: There is a Positive Relationship between Tangibles
and Customer Satisfaction
Accept p<0.01
H3 : There is a Positive Relationship between Reliability
and Customer Satisfaction
Accept p<0.01

23. 07.RESULTS AND FINDINGS
o Research Information
Hypothesis Test
Hypothesis Accept or
not accept
Significance
Level
H4:There is a Positive Relationship between
Responsiveness and Customer Satisfaction
Accept p<0.01
H5:H5: There is a Positive Relationship between Empathy
and Customer Satisfaction
Accept p<0.01
H6: There is a Positive Relationship between Assurance
and Customer Satisfaction
Accept p<0.01

24. 08. Conclusion
• Based on this study found the answer that there was a strong positive
relationship between the quality and customer satisfaction for the main
research question.
• The sub objectives of the research are identifying the level of service
quality and level of customer satisfaction. Findings indicate that the most
hotel restaurants have high level of service quality and high level of
customer satisfaction.
• The study reported here to empirically examine the nature of the
relationship between perceived service quality dimensions and overall
customer satisfaction in the hotel restaurant is the sub objective of this
study.

25. 08. Conclusion
• Additionally, to identify the relative impact of perceived service quality
dimensions on overall customer satisfaction. Finding indicates that
strong, positive and significant relationship between the combination
of perceived service quality dimensions and overall customer
satisfaction,.
• On the other hand, reliability, assurance and cleanliness are
significantly impact on the customer satisfaction while, tangible,
responsiveness and empathy were not significantly related to customer
satisfaction.

26. 09. RECOMMENDATION
• The hotels must make promises which it knows it can easily achieve
and must perform all its services at the promised time
• The hotel restaurant should have adequate number of employees so
that the services are performed in time and can provide individualist
caring service
• Tasty food has the ability to satisfy a person’s hunger influences
restaurant satisfaction and future behavior intentions.