A study of service quality dimensions of budget hotels in Kota Kinabalu

This study is about service quality dimensions that affect customer satisfaction in budget hotels in Kota Kinabalu.The objective of this study is to investigate the relationship between service quality and customer satisfaction. Besides that, this study also seek to determine whether moderating vari...

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Bibliographic Details
Main Author: Fong, Yee Shin
Format: Thesis
Language:English
Published: 2007
Subjects:
Online Access:https://eprints.ums.edu.my/id/eprint/6339/1/mt0000000142.pdf
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Summary:This study is about service quality dimensions that affect customer satisfaction in budget hotels in Kota Kinabalu.The objective of this study is to investigate the relationship between service quality and customer satisfaction. Besides that, this study also seek to determine whether moderating variables (age, nationality and past experience) will affect the relationship between service quality dimensions and customer satisfaction. The research questions measured based on SERVQUAL model (Parasuraman et.al. ,1988).The service quality dimensions include tangibles, reliability, responsiveness, assurance and empathy. A survey was conducted among budget hotel guests that stayed in all 24 budget hotels in Kota Kinabalu. A total of 201 usable questionnaires were collected for this study. This findings confirmed that perceived service quality dimensions have significant positive effect on customer satisfaction in the budget hotels industry in Kota Kinabalu. Eventhough, there is a positive relationship, not all of the five service quality dimensions are significant in their relationships. It is found that reliability, assurance and empathy have significantly influence on customer satisfaction. Interestingly, this study discovered that tangibles and responsiveness are not regarded as significant to determine customer satisfaction. The results also shows that the past experience (moderating variable) has significant relationship between service quality and customer satisfaction whereas age and nationality do not have significant influence on service quality and customer satisfaction. For practitioners, it is worth noting that tangible and responsiveness is not an important service quality dimensions for guests to stay in the budget hotels. Kota Kinabalu is an emerging market for tourism industry. It is suggested that the budget hotels operators need to pay more attentions to emphasize on these significant underlying service quality dimensions as well as past experience to enhance customer satisfaction and customer loyalty; in order to maximize budget hotels profit for the future.