Dissertation: Customers' Perception in Nigerian Hospitality Sector

This dissertation investigates customers' perceptions of service quality within the Nigerian hospitality sector. It examines the factors influencing customer satisfaction and the impact of service quality on customer perception. The research employs a mixed-methods approach, including surveys and data analysis to identify key attributes of service quality and assess their importance. The study aims to provide insights into customer expectations, identify areas for improvement, and offer recommendations for enhancing service quality in Nigerian hotels. The dissertation also explores the relationship between customer perception and the overall performance of hospitality businesses. The findings contribute to a better understanding of the Nigerian hospitality landscape and offer valuable guidance for industry stakeholders seeking to improve customer satisfaction and business outcomes.

Running head: DISSERTATION
Customers’ Perception of Service Quality in Hospitality Industry in Nigeria
Name of the Student:
Name of the University:
Author’s Note:

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
The aim of the research is to study the perception of the customers of service quality in the
hospitality industry in Nigeria that underlies the idea of improving the service quality in the
Nigerian hospitality sector for ensuring better customer perception. Defective service quality has
given rise to difficulty for the Nigerian hospitality industry for retaining the valued customers.
Additionally, failure in understanding the needs and expectations of the customers hampers the
service quality. This is because the hospitality organizations in Nigeria are unable to prepare and
manage the employees, the management and the facilities that are offered in the hotel. The
research is significant because this will help in identifying the service quality required generally
in the hospitality sector in Nigeria. The relationship between customers’ perception of service
quality in the Nigerian hospitality sector thereby, determining the impact on each other.
Positivism philosophy, deductive approach, descriptive design and survey research strategy has
been preferred in this study. These methodological tools have been selected, as the research topic
demands the application of the mentioned methodological tools. Survey research strategy is the
most suited, as this allows gathering data from a large customer population of the Nigerian hotel
industry. Random probability sampling technique is used for selecting 113 samples out of the
large customer population. As a result, primary data collection process and quantitative data
analysis technique has been used that facilitated the use of IPA analysis for determining the
customer perception and importance at hotels in Nigeria.
From the results obtained in this section, it can be inferred that male and female customers aged
18-25 years and 36 years and above mainly for personal use along with additional uses such as
personal and leisure. The majority of the respondents is student and employed with an annual

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disposable income 50,000-200,000. On the other hand, the gap analysis results indicate
significant difference between the importance and performance of tangibility, facility and
customer service attribute of the hotels in Nigeria, as the value derived for the three attributes are
.000. Therefore, the hotels in Nigeria should consider and work towards mitigating the
importance and performance gap in order to develop positive customers’ perception about
service quality.

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Table of Contents
Chapter 1: Introduction....................................................................................................................7
1.0 Overview...........................................................................................................................7
1.1 Problem statement.................................................................................................................7
1.2 Research aim..........................................................................................................................8
1.3 Research objectives...............................................................................................................8
1.4 Research questions.................................................................................................................9
1.5 Research hypothesis...............................................................................................................9
1.6 Research rationale................................................................................................................10
1.7 Structure of the dissertation.................................................................................................10
1.8 Summary..............................................................................................................................12
Chapter 2: Literature review..........................................................................................................13
2.0 Overview..............................................................................................................................13
2.1 Concept of customers’ perception.......................................................................................13
2.2 Factors affecting customers’ perception..............................................................................14
2.3 Concept of service quality...................................................................................................15
2.4 Origin of Importance Performance Analysis (IPA).............................................................15
2.5 Reason of selecting Importance Performance Analysis......................................................20
2.6 Relevance with hospitality industry of Nigeria...................................................................21

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2.7 Service marketing in hotels.................................................................................................23
2.8 Summary..............................................................................................................................25
Chapter 3: Research methodology.................................................................................................26
3.0 Overview..............................................................................................................................26
3.1 Research outline...................................................................................................................26
3.2 Research philosophy............................................................................................................27
3.3 Research approach...............................................................................................................27
3.4 Research design...................................................................................................................28
3.5 Research strategy.................................................................................................................29
3.6 Sampling technique and sample size...................................................................................30
3.7 Identification of research variables......................................................................................31
3.8 Data collection process........................................................................................................32
3.9 Data analysis technique.......................................................................................................33
3.10 Ethical considerations........................................................................................................33
3.11 Accessibility issues............................................................................................................34
3.12 Summary............................................................................................................................35
Chapter 4: Data analysis................................................................................................................36
4.0 Overview..............................................................................................................................36
4.1 Descriptive analysis.............................................................................................................36
4.1.1 Demographics...................................................................................................................36

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4.2 Inferential analysis...............................................................................................................39
4.3 Summary..............................................................................................................................47
Chapter 5: Conclusion and recommendations...............................................................................48
5.0 Conclusion...........................................................................................................................48
5.1 Linking with objectives.......................................................................................................48
5.2 Recommendations................................................................................................................50
5.3 Future scope of the study.....................................................................................................52
References......................................................................................................................................54
Appendix 1.....................................................................................................................................61
Survey questionnaire.................................................................................................................61

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Chapter 1: Introduction
1.0 Overview
The increasing competition in the global economy has forced the business organizations in
the hospitality sector are emphasizing more on meeting and exceeding the expectation of the
customers. One of the best ways of standing out among the competitors is by delivering superior
service quality that helps in improving the reputation in the hospitality sector. Service quality is
one of the most significant and widely researched topics in the service industry as it is necessary
to ensure excellent service quality for the customers. The service industry represents majority of
the economy of the country in both developed and developing countries. As commented by
Mayorova and Lapitskaya (2016), customers’ perception of service quality plays significant roles
in the perception of the buyers of the product and service that adds value to the product thereby,
facilitating relationships. The best service provision can be achieved by developing an
understanding about the notion of perception of the customers. Service quality influences
reputation and the quality level determines the opinion of customers about an organization.
Customers are considered as one of the most important stakeholders, as they help in generating
revenues for the business sectors including hospitality sector.
Nigeria is a developing country that is striving to make its mark in the global economy.
Customers’ perception of service quality in Nigerian hospitality sector, as this allows gaining
competitive advantage, generating revenue and sustaining the competitive world (Jakada and
Gambo 2014).

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1.1 Problem statement
As the hospitality sector is mainly customer centric, a bad experience during the service
leaves a bad impression and a negative mark on the experience of the customers. The negative
impression due to poor service quality results in lack of repeated customer due to negative word-
of-mouth publicity about the hotel. The hospitality sector is failing to deliver quality service that
is resulting in suffering decreased patronage and publicity. As a result, the sales growth is
hampered for the hospitality organization due to which organizational performance is hampered.
According to Dhar (2015), defective service quality gives rise to difficulty for the Nigerian
hospitality industry for retaining the valued customers. Additionally, failure in understanding the
needs and expectations of the customers hampers the service quality. This is because the
hospitality organizations in Nigeria are unable to prepare and manage the employees, the
management and the facilities that are offered in the hotel. As a result, the customers visiting the
hotels are unsatisfied thereby, creating a negative image and hampers the perception of the
customers (Bansal and Taylor 2015). The customers have complained about the behavior of the
employees saying that the employees do not give them prompt services, attend their queries and
solve their issues, physical appearance of the hotels and lightings of the hotel.
1.2 Research aim
The aim of the research is to study the perception of the customers of service quality in
the hospitality industry in Nigeria. The aim underlies the idea of improving the service quality in
the Nigerian hospitality sector for ensuring better customer perception.
1.3 Research objectives
The objectives of the research are:

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 To identify the customers’ perception on how they have experienced service quality in
hospitality sector of Nigeria
 To investigate the issues that affects the service quality in Nigerian hospitality sector
 To observe the importance of hotel attributes in respect to service quality in the
hospitality service and its impact customers’ perception
 To provide suitable recommendations for improving customers’ perception in service
quality of Nigerian hospitality sector
1.4 Research questions
The questions of the research are:
 What are the customers’ perceptions on how they have experienced service quality in
hospitality sector of Nigeria?
 What are the issues that affect service quality in Nigerian hospitality sector?
 What is the importance of hotel attributes in respect to service quality in the hospitality
and its service impact customers’ perception?
 What are the suitable recommendations for improving customers’ perception in service
quality of Nigerian hospitality sector?
1.5 Research hypothesis
The hypotheses of the research are:
H0: Perception of the customers regarding service quality has no impact on the Nigerian
hospitality sector
H1: Perception of the customers regarding service quality has an impact on the Nigerian
hospitality sector

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1.6 Research rationale
Analyzing the customers’ perception of service quality in the hospitality sector in Nigeria
is important because this will provide an opportunity to identify the potential gaps the hospitality
sector that arises due to the perception of the customers. The research is significant because this
will help in identifying the service quality required generally in the hospitality sector in Nigeria.
Additionally, the research will also help in identifying perception of customers by taking into
account their experience they had while availing services in the hospitality sector. The doubts in
the customer perception of service quality in the hospitality sector of Nigeria helps in suggesting
suitable recommendations for overcoming it successfully. The relationship between customers’
perception of service quality in the Nigerian hospitality sector thereby, determining the impact
on each other.
1.7 Structure of the dissertation
The overall structure of the research study is categorized into five chapters that are
crucial in developing the research and successfully completing it.
Chapter 1: Introduction
The first chapter is of utmost significance, as this lays the overall structure of the research
study. The chapter elucidates background information about the selected topic along with
pointing out the problem that is to be investigated in the study. Based on these information,
research aim, objectives and hypotheses are formulated that needs to be achieved and proved for
completing the study successfully.
Chapter 2: Literature review

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The first chapter is followed by the literature review that aims towards identifying the
independent and the dependent variables that forms the overall structures of this chapter.
Identification of the variables is followed by the defining the concepts, critically analyzing the
factors affecting them followed by discussing the impact, opportunities and the challenges.
Theories and models relevant to the identified variables are also discussed in this section.
Chapter 3: Research methodology
This chapter elucidates all the existing methodological tools that need to be used while
carrying on with a research. The chapter defines all the research methodologies individually by
highlighting the unique characteristics. This is followed by rationalizing the application of the
selected research methodologies for the study specifically.
Chapter 4: Data analysis
Based on the research methodologies selected in the previous chapter, data is collected
using the selected methods. This helps in gathering data those are relevant that helps in achieving
the research aim and objectives. The data in this chapter is also interpreted and discussed by
justifying the findings with the information provided in the literature review chapter.
Chapter 5: Conclusion and recommendations
The last chapter deduces relevant and suitable conclusion by taking into account the
information presented in the above chapters. The gap is mentioned followed by the results
obtained, implication of the findings and suggesting probable recommendations.
1.8. How the study intends to contribute differently