Analyzing Effects of Customer Satisfaction in Hospitality Industry

This report delves into the multifaceted effects of customer satisfaction within the hospitality industry, drawing upon various research papers and studies. It begins with an extensive literature review on service quality, emphasizing its crucial role in the industry and exploring different perceptions of service quality and its impact on customer loyalty. The report then examines the hospitality operators' understanding of service, focusing on a quality approach and the factors that influence it. Furthermore, it assesses the influence of Customer Relationship Management (CRM) models on organizational performance, particularly in the Malaysian hotel industry, analyzing the relationships between CRM dimensions and various performance aspects. The report highlights the significance of service quality, customer orientation, knowledge management, and technology-based CRM in achieving customer satisfaction and driving organizational success. The findings underscore the importance of understanding customer needs and expectations to enhance service delivery and foster long-term customer relationships.

Running head: EFFECTS OF CUSTOMER SATISFACTION IN HOSPITALITY INDUSTRY
Effects of Customer Satisfaction in Hospitality Industry
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1EFFECTS OF CUSTOMER SATISFACTION IN HOSPITALITY INDUSTRY
Table of Contents
Literature Review on Service Quality in Hospitality and Tourism.................................................2
Service Quality Perceptions.............................................................................................................4
Hospitality Operators Understanding of Service: A Quality Approach..........................................5
Assessing the influence of CRM model on Organization Performance..........................................7
An Investigation of their Relationships in franchised hospitality Enterprises................................9
Reference.......................................................................................................................................11

2EFFECTS OF CUSTOMER SATISFACTION IN HOSPITALITY INDUSTRY
Literature Review on Service Quality in Hospitality and Tourism
Ivan K.W. Lai et al., (2014), stated a view on the hospitality and tourism industry amd
the importance of the service quality. The purpose of this research paper is to identify any kind
of development of the service quality in the hospitality and tourism. The data taken for the
evaluation are between the years 1984 to 2014. The researcher also tried to identify the gap
which existed in other research paper. The researcher has also provided suggestion regarding the
use of this research paper in future. The researcher has mainly conducted detailed analysis in
other research paper, which is related with the tourism and hospitality industry in the service
quality. All the research paper, journals and the articles are analysed in volumes and found out
that the researcher has claimed the bulk of productions that reinforces the importance of the
service in the tourism and hospitality.
The researchers have conducted the research by creating a research map, which are
divided in three steps. The first step which can be identified was generation of a structural map.
This step mainly conducted by using the online pathfinder network (PFNET). The researcher has
This online pathfinder network helps the researcher to identify the research themes. The second
step which was followed by the researchers while conducting the research paper involves an
online literature review. In this research paper, the researchers have viewed 2,211 academic
journals, articles and other research paper for gaining knowledge about the topic. The researchers
had obtained basic information from the journals and the articles. This study also helps the
researcher to draw a plan for conducting this research paper (Saleem & Raja, 2014). This
additional content, which was found out by researcher leads to help the researchers to produce a
good research theme. The final step for designing of this research paper was to scrutinize the
content of the article which were published by journals and the research paper. This has been

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done in three different stages. The three different stages include 1984-1993, 1994-2003 and
2004-2014. This helps the researchers to identify the potential research topics.
The researcher has recognized 17 research themes. Among all 17 research themes
researcher has focused mainly on the two main research themes. The aim of conducting the
PFNET graph is to identify the research themes for further investigation (Jones, Hillier &
Comfort, 2014). The researcher analysed the PGNET graph and states about the middle part of
the main-stem which encompasses of two main research themes that embraces service quality
scales and the consequences of service quality. The researcher has also found out the seven sub
stems, six outer leaves and two little leaves. The researchers mainly focus on the development of
the service quality which was present in other research paper (Saleem & Raja, 2014). The
researchers also revealed the role of the research theme which was present in the journal or
article. The researcher also identifies the research opportunities for the service quality of the
research within each theme.
The limitations of the research paper which can be identified by the researchers are the
software, which is used for generating PFNET graph is under-developed and it is not present
commercially. While conducting the research, the researcher has missed some minor research
themes, which are presented in this research (Jones, Hillier & Comfort, 2014). It is advisable for
the researcher to use different mechanisms or tools which are generated more inclusive network
of research themes. There are limitations which are present in the three diverse stages of service
quality research in hospitality and tourism (Saleem & Raja, 2014). The data which are analysed
by the researchers have limited access, so there is a contraction regarding the research data which
is used in this research paper.

4EFFECTS OF CUSTOMER SATISFACTION IN HOSPITALITY INDUSTRY
Service Quality Perceptions
This research paper is written by Catherine Prentice on the service quality perceptions
and its relation with the customer loyalty. The researcher mainly focuses on the casino business.
In this research paper, the importance of the service quality is prioritize by the researcher. The
researcher also focused on the process of building the service quality and maintaining in the long
run. The service quality is one of the main factors which helps the company or any profit
organizations to retain the customers (Chow, 2014). The better service quality will help the
profit-making organization to hold a superior position in the market. In this research paper, the
researcher has examined the association between service quality of casino, player sections and
also the customer loyalty in the casino of continent of Asia (Jones, Hillier & Comfort, 2014).
The researcher has conducted this research paper by applying the primary research and
collected the required data. In this research paper, the researcher was involved in the interview
with the specific group which includes different segments of the gamblers. The researcher has
conducted the interview and found out that the player hailing from different segments have some
of the distinctive perceptions of the service quality presented by the casino. The researcher has
segregated the operation of service quality into five dimensions. The researcher has stated the
dimension in accordance to the dimension mentioned in the SERVQUAL (Chow, 2014). The
five dimension based on which the researcher has differentiated the service quality are tangibles,
responsiveness, reliability, empathy and assurance. Researcher has shown that different
dimension have different effects on the customer loyalty. Casinos usually have some of the
perceptible product such as gaming products and non-gaming amenities. Some of the casinos
also have theme park, which is the part of the non-gaming amenities. There are many casinos
who conduct concerts in the theme park (Mohammed, Rashid & Tahir, 2014). The non-gambler

5EFFECTS OF CUSTOMER SATISFACTION IN HOSPITALITY INDUSTRY
perceives the service quality of the casino based on the theme park, party which are usually
conducted by the casinos and other amenities. These factors determine degree of the service
quality of the casino from the perspective of non-gamblers. As for gamblers the measurement of
the service quality of the casino has different criteria. The gambler’s perception mainly depends
on the gambling preference and the same kind of segments in which they are usually categorized
(Chow, 2014). The researcher had divided the gambler into three segments. The high-volume
gambler, low volume gambler and the table game players. Researcher used the semi-structured
interview by providing the open-ended questions. Researcher had conducted 11 interviews. The
main aim of the interview is to advance better considerate of how hospitality industry
professionals have a perception over the service which are provided in the industry. Researcher
also wants to understand the development at the individual level.
Researcher had conducted a quality analysis using the two individual coders
(Mohammed, Rashid & Tahir, 2014). The qualitative analysis includes the interpretive approach.
Researcher produce the two-coding result and later differentiated them, so that the researcher
could get a better and most authenticated result. Researcher used the concept of reflexivity in
their qualitative method of data analysis (Chow, 2014).
This research has immense importance specially for the service practitioners. The
selection-based finding which is used in this research paper mainly produces are better fit to the
service provision. The researched data are very useful in the training for the service, as the
service practitioners will deliver service very effectively (Chow, 2014). This research is also
important for other research as it provides a notes of spectrum approach.

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Hospitality Operators Understanding of Service: A Quality Approach
Alleah Crawford (2013), researched on the topic of hospitality operators which helps to
understand the service. This research paper is based on searching the answer the question on
“Can a person as an employee, an individual or a leader to deliver service?” In this research, the
researcher mainly done research based on the service provider point of view (Liat, Mansori &
Huei, 2014). To conduct the research, researcher has raised the question how it is understood and
how the need to attend is established.
To conduct the research, researcher has used interpretive phenomenological approach. In
the process of data collection, the researcher had used primary research approach. In this
approach the researcher had conducted a semi-structured interview (Mohammed, Rashid &
Tahir, 2014). The researcher mainly used open-ended questions which were developed in
advance. The researcher has also used unplanned, unanticipated probes may also be used (Liat,
Mansori & Huei, 2014). Researcher has used this method because the ability to seek the
clarification of interview in order to gain understanding of their behaviour and attitudes.
Researcher interviewed 11 respondents for an hour each. All interview which was conducted are
recorded for further clarification.
Researcher has mainly applied for qualitative analysis which was conducted using two
individual orders (Liat, Mansori & Huei, 2014). The researcher has used interpretive approach
where the researcher has asked two basic questions and the researcher has analyzed the data. The
concept of reflexivity are being used while conducting the data analysis

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After conducting the research, the researcher found out that how hospitality operators
view service and what are the necessary external and internal attributes (Liat, Mansori & Huei,
2014). The basic serve for the service is also being explained in this research paper.
The implications of this research paper are immense, especially in the field of training
and selection of the service person who will later enhance the service quality for the company
(Mathe-Soulek, Slevitch & Dallinger, 2015). The research paper has great implications in the
field researching as it will come very handy in the future research (Liat, Mansori & Huei, 2014).
This research paper is valuable to key practitioners for identifying the necessary service
providers that will aid in selection and training.
The limitation of this research paper exists in the form of the constriction in a
geographical location (Liat, Mansori & Huei, 2014). The research paper also focused in a
particular segment. Thus, the result of the study is less generalizable because of the geographical
constriction and focused on the particular segment.
Assessing the influence of CRM model on Organization Performance
This research paper is written by Abdul Alem Mohmmad, Basri Bin Rashid and
Shaharuddin bin Tahir (2015) on the assessment of the influence of customer relationship
management model on organizational performance (Izogo & Ogba, 2015). Researchers have
conducted an empirical study on the hotel industry by implementing customer relationship
management model.
The researcher has performed this research paper to investigate the relationship between
the customer relationship management dimensions and different aspects of organization
performance management in Malaysian hotel industry. The dimensions, which researcher wants

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to relate are customer orientation (Izogo & Ogba, 2015). Customer relationship management
organization, knowledge management and technology-based customer relationship management.
The organization performance, which the researcher wants to relate with the dimensions of
customer relationship management are financial, customer, internal process and learning and
growth of the Malaysian hotels.
Researchers have performed this study utilising the quantitative study. The response
came from the 152 managers hailing from Malaysian hotels. The hotels which are chosen are
either 3-star hotel or 5-star hotel (Izogo & Ogba, 2015). The data collected for the research paper
were used for correlation or regression analysis which were in the study’s objectives. The
researchers have created a structured questionnaire and send it to 410 hotels around the country
which are 3-star or 5-star hotels. The hotels which were chosen for the research, have
implemented customer relationship model in the system (Mathe-Soulek, Slevitch & Dallinger,
2015). The respondents who represented the hotels are the managers from the hotel.
In this research paper, researcher has used various approaches like conceptualize and
measure performance. The study used the correlation for checking the viability of the data
collected. The result from the correlation stated that there is a positive correlation of 0.70. This
means that there is a certain relationship between the dimensions of the customer relationship
management and hotel industry. The result also suggested that the dimensions of customer
relationship management like customer orientation, customer relationship organization,
knowledge management and technology-based CRM have immense impact on the performance
of the hotels. The customer relationship management model failed to show a important
relationship between learning and growth perspective of the performance of hotel (Izogo &
Ogba, 2015).

9EFFECTS OF CUSTOMER SATISFACTION IN HOSPITALITY INDUSTRY
This research paper has immense significance for the hotels which are using customer
relationship management model and also for the hotels who are thinking of implementing the
customer relationship model in their management system (Shi, Prentice & He 2014). The
positive correlation between the customer relationship model and the performance of the
employees in the hotel (Izogo & Ogba, 2015). The implications of this research are being
prioritize in other research paper which are dealing with service-related research.
This research paper has only emphasised on the direct relationship between the
performance of the organization and customer relationship management dimensions. Moreover,
the study only concentrates on the 3-star and 5-star hotels which are residing and doing business
in Malaysia.
An Investigation of their Relationships in franchised hospitality Enterprises
This research paper is written by Natasha Johnston, Bishnu Sharma and Wendy Spinks
(2013), done the research on organisational climate, service climate and customer relationship
satisfaction. The researchers also investigate of their relationships in franchised hospitality
enterprises (Karim & Chowdhury, 2014). This research paper has developed for the purpose of
comparing the domain specific measure, service climate, as predictors of customer satisfaction
and relative efficacies of overall climate change measure. The research has been conducted on
the two international hospitality sector franchise systems.
In this research paper, researchers have used quantitative method for performing the
research. The data collected for the research are from employees and customers of two
international food and beverage franchising enterprises (Karim & Chowdhury, 2014). These two
enterprises are from Australia and New Zealand. The researchers have used primary research

10EFFECTS OF CUSTOMER SATISFACTION IN HOSPITALITY INDUSTRY
method for data collection (Lai et al., 2018). The researcher has collected data from 256
employees. The researchers have collected data using the questionnaire which help to develop
the research paper. The response rate which can be estimated to be 47.6% (Kitapci, Akdogan &
Dortyol, 2014).
In this research paper, researcher has used organisational climate model where correlation
and regression are implemented for the development of the research. Likert type scale has been
implemented in this research paper. As per the report of the analysis of the data collected the
researcher got positive result (Karim & Chowdhury, 2014). The researchers have also used
Service Climate model for analysing the data where service climate of the tourism and
hospitality management are being measured (Kitapci, Akdogan & Dortyol, 2014). The researcher
has used one dimensional scale for the research paper. It also shows positive result in the
correlation calculation. The researchers have also measured the customer tourism in the tourism
and hospitality field. As per the total data analysis is concerned, this research paper had
conducted the research in the relation between the service climate, organisational climate and the
customer satisfaction. After using the correlation coefficients, which were used for calculating
the coefficients between the global climate and both customer satisfaction and also the employee
perception of the customer satisfaction. Two regression analysis are also performed (Kitapci,
Akdogan & Dortyol, 2014).
As per the research findings it can be analysed that the service spectrum consists of
service climate change that will satisfy the product and service itself (Karim & Chowdhury,
2014). Nevertheless, service climate accounted for important amount of the alteration customer
satisfaction.

11EFFECTS OF CUSTOMER SATISFACTION IN HOSPITALITY INDUSTRY
This research paper has immense implications in the customer satisfaction and customer
viability increase in the business especially which are related with the service industry. The
research paper will also help the management of the company where they will able to balance the
employee satisfaction which sometimes get disrupted due to the customer satisfaction.
The main limitations which can be analysed is the sample of the hospitality sector
franchise systems, so the outcomes which can be analysed from the data collected are not
generalized. The second limitation is the predictive value has been utilised for the climate
change. This also has affected the authenticity of the outcomes (Karim & Chowdhury, 2014).