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Customer Satisfaction in the Hotel Industry assignment

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Granville Hotel, Australia1Effects of Service Quality on Customer Satisfaction in the Hotel Industry: A Case Study ofGranville Hotel, AustraliabyCourse:Tutor:University:Department:Date:
Granville Hotel, Australia2Table of ContentsCHAPTER ONE: INTRODUCTION........................................................................................31.1 Background Information..................................................................................................31.2 Problem Definition...........................................................................................................3CHAPTER TWO: LITERATURE REVIEW............................................................................52.1 Introduction......................................................................................................................52.2 Service Quality.................................................................................................................52.3 Determinants of Service Quality......................................................................................52.4 Measurements of Service Quality....................................................................................62.4.1The SERVIQUAL Model...........................................................................................62.5 Customer Satisfaction.......................................................................................................62.6 Factors Affecting Customer Satisfaction..........................................................................72.7 Relationship between Service Quality and Customer Satisfaction..................................72.8 Conceptual Framework....................................................................................................7CHAPTER THREE: RESEARCH METHODOLOGY.............................................................83.1 Introduction......................................................................................................................83.2 Research Design and Justification....................................................................................83.3 Data Sources.....................................................................................................................83.4 Conceptualization and Measurement...............................................................................93.5 Data Collection...............................................................................................................103.6 Data Analysis..................................................................................................................10CHAPTER FOUR: ETHICAL ISSUES AND LIMITATIONS IN RESEARCH...................124.1 Ethical Research Issues..................................................................................................124.2 Study Limitations...........................................................................................................12CHAPTER FIVE: PROPOSED BUDGET AND TIME-FRAME..........................................135.1 Proposed Budget.............................................................................................................135.2 Proposed Time-frame.....................................................................................................13References................................................................................................................................15Appendices...............................................................................................................................16Appendix 1: Questionnaire...................................................................................................16
Granville Hotel, Australia3CHAPTER ONE: INTRODUCTION1.1 Background InformationQuality has been defined as “conformance to requirements” (Bergman and Klefsjö, 2010).Service quality has been defined by Chen and Chen (2010) as the gap between theexpectation of the customers regarding service and their assessment of the actual servicereceived. Service quality has been emphasized by most of the market leaders as the primarysolution to customer satisfaction. Qin and Prybutok (2009) note that success in the currentcompetitive market substantially depends on the delivery of quality services which willconsequently increase customer satisfaction levels. Thus, customer assessment for the qualityof services is significant for organizations which have a mission of formulating effectivemarketing strategies (Bayraktaroglu and Atrek, 2010; Landrum et al., 2009; Jones, Taylor,and Reynolds, 2014). Those companies with competitive service qualities also benefit fromhigh numbers of satisfied and loyal consumers (Yee, Yeung, and Cheng, 2010). The increaseof organizational profits and revenue is substantially dependent on first repurchasingcustomer behaviors. Additionally, the hospitality industry contributes 10.09% of GDP to theAustralian economy and thus a key pillar in economic development. Hence, the study onservice quality and customer satisfaction is very critical for research. This study focused oncustomer satisfaction and service quality: a case study of Granville Hotel, Australia.1.2 Problem DefinitionSo that the hotel industry can accomplish its aim of delivering quality service to itscustomers, it is vital to examine how hotels can meet and surpass the service prospects ofcustomers (Mok, Sparks, and Kadampully, J2013). According to Parasuraman et al. (citedin“Phil” Klaus and Maklan, 2012), service quality can be measured using five determinantsnamely reliability, responsiveness, assurance, empathy and tangibles. However, King et al.(2008) later regarded tangibles, empathy, and assurance as for the most importantdeterminants. Similar studies by Harr,2008; Agbor, 2011) were conducted under different
Granville Hotel, Australia4contexts and even their findings do not agree, however they all consent of the existence of arelationship between customer satisfaction and service quality. The objective of this study isto provide additional insight into the Australian hotel industry by responding to question:What are the effects of service quality on customer satisfaction?
Granville Hotel, Australia5CHAPTER TWO: LITERATURE REVIEW2.1 IntroductionThis chapter provides in-depth information about service quality, determinants of servicequality, Measurements of Service Quality, The SERVIQUAL Model, Customer Satisfaction,Factors Affecting Customer Satisfaction, Relationship between Service Quality and CustomerSatisfaction and the Conceptual Framework.2.2 Service QualityThe definition of service quality has been defined differently by various researchers.Parasuraman et al. (1985) describe it as the organization’s ability to meet or surpass theexpectations of customers cited in“Phil” Klaus and Maklan, 2012). Aslan and Koçak (2011)also agree with the definition of Parasuraman et al., 1985. The study by Ladhari (2008) on thefactors affecting service quality in the hospitality sector found out reliability to be the bestpredictor of general service quality. Naik, C.K., Gantasala, and Prabhakar (2010) also foundout that the highest expectation of customers is on the timeliness of service, operationsprecision, and safety issues.2.3 Determinants of Service QualityCustomers consider several physical features when buying goods as a way of determiningquality, color, taste, and package. Conversely, the procurement of services is limited to thetangible features and must, therefore, consider other service quality dimensions.The study by Parasuraman et al. (cited in“Phil” Klaus and Maklan, 2012), provides tendeterminants that affect the view of the customer, and these include access, responsiveness,communication, security, competence, credibility, courtesy, tangibility, insight, andreliability. Berry based his study on Parasuraman et al.(2002) and developed five summarisedaspects namely reliability, responsiveness, tangibles, empathy and assurance. It is on thesefive elements that the SERVQUAL model used to measure service quality is based onParasuraman et al. (2002).
Granville Hotel, Australia62.4 Measurements of Service QualityThe measurement of service quality is a significant element in the process of improvingquality since it generates customer responses regarding the type of service offered and ehdegree to which it met the expectations of the customer (Ladhari, 2008). Several models havebeen postulated by researchers that measure service quality, for example, the SERVQUALmodel2.4.1The SERVIQUAL ModelThe model was the work of Parasuraman et al. (2002), and it was designed for ascertainingunderperformance in service quality. The basis of the SERVQUAL model is that servicequality of a business can be determined by matching the organization’s view of its servicewith that of their prospects. It measures the expectations and perceptions of customer’sservice quality. The formula of the quality shortfall (Q) is found by deducting the Expectation(E) from the Perception (P). Then the rate of overall quality is obtained by summing up allthe Q value. The SERVIQUAL scale comprises of two parts: the first section measuresexpectations of consumers concerning service segment whereas the second part determinesperception about the firm being evaluated.2.5 Customer SatisfactionAccording to Kotler (2015), customer satisfaction is the degree to which the apparentperformance of a product matches the expectations of the buyer. Kassim and Asiah Abdullah(2010) examined customer satisfaction through a cross-cultural survey and found out thatmost of the guests were contented with the employees’ ability to communicate in a foreigndialect, workers’ hospitality and room conditions. The research by Prayag (2008) of CapeTown hotels ascertained customer satisfaction areas to include spa experience, customerentertainment, and well-ordered grounds.
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