Service Quality And Customer Behavioral Intention Among Hotels

Project and Seminar Material for Business Administration and Management BAM

Service Quality And Customer Behavioral Intention Among Hotels


Abstract


This study was carried out to examine service quality and customer behavioral intention among hotels using selected hotels in Owerri Imo State as a case study. as a case study. The study was carried out to determine whether there is a significant relationship between service quality and customer behavioral intention, find out whether service quality influences customers satisfaction in hotels, and ascertain whether customers perceived service quality significantly influences their behavioral intention among hotels. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of employees of selected hotels in Owerri Imo State. In determining the sample size, the researcher conveniently selected 41 respondents and 35 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables. While the hypotheses were tested using Pearson correlation statistical tool, SPSS v23. The result of the findings reveals that service quality influence customers’ satisfaction in hotels. Furthermore, the study also revealed that customers perceived service quality significantly influence their behavioral intention among hotels. Therefore, it is recommended that hotel managers should create attractive physical facilities for the clients to come back to the hotel again and to be willing to pay more money for the services. In order to realize these, they must be avoided from negative effective behaviors such as being unable to fulfill the promises they made before by creating high expectations that will never be served later on. To mention but a few.


Table of Content


  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background of the Study

Travel and tourism is fast becoming one of the main focus for economic revitalization globally and especially in developing countries like Nigeria (Awodele & Ayeni, 2011). International tourism accounts for 29% of the world’s services exports and 7% of overall exports of goods and services. The development of tourism destination areas all over the world has contributed to the increase in international tourist arrivals. The number of international tourist arrivals worldwide reached 1.4 billion in 2018. Total export revenues from international tourism reached USD 1.7 trillion in 2018 (UNWTO, 2019).

Nigeria, one of the countries in Sub-Saharan Africa is benefiting from the growth in the tourism industry. The total contribution of travel and tourism to GDP was US $6,971.9 million 1.9% of GDP in 2019, and is forecast to rise by 4.0% per annum to US$29.7bn, 4.5% of GDP in 2027. On employment, travel and tourism contributed 1,254,400 jobs to total employment, and it is expected to rise by 3.6% per annum to 2,598,000 jobs in 2027. On visitor exports, US $2,549.1 million was generated in 2019 (World Economic Forum, 2019). Based on these contributions of tourism to host countries, it is thus, critical for countries to promote policies that foster the continued growth of tourism.
Meanwhile, the hotel industry in Nigeria has continued to contribute significantly to the growth of the economy through the retail and wholesale of a range of accommodation and related services (Bello, Bello & Obiora, 2017; Bello, Udi, Bello & Raja, 2016). The industry is projected to experience an increase in the number of hotel rooms 8,400 available in 2013 to about 24,000 rooms in 2018 (Bello & Majebi, 2018). This increase is expected to accommodate the domestic tourists and ever increasing international tourist arrivals to the country and provide them with expected services.

In the business world, service quality has become a key strategic factor for differentiating products and services from that of competitors. Many researchers have shown that service quality increases market share, customer satisfaction, responsiveness towards customer order, customer retention and loyalty, greater return on investment and lowers production cost (Alemneh & Gebremichael, 2018; Ali, 2015, Eshetie, Seyoum & Ali, 2016, Mbuthia, Muthoni & Muchina, 2014; Alemneh, 2018). It plays a significant role in service industry and studies have found that there is a positive relationship between service quality and customer satisfaction, resulting to customer loyalty/retention and repeat customer purchase behaviour (Bello & Bello, 2016; Watiki, 2014; Fukey, 2013; Goddard, 2013; Gumussoy & Koseoglu, 2016; Bucak, 2014; Han & Omar, 2014; Minh & Huu, 2016; Kangogo & Manyasi, 2013; Poku, Zakari & Soali, 2013; Rao & Sahu, 2013; Jasinskas, Stremikiene, Svagzdiene & Simanavicisu; 2016; Tessera, Hussain & Ahmad, 2016).

The knowledge of customer satisfaction and the resulting behavioural intentions are becoming more important these days in the service industries especially in travel and tourism industry. The understanding of customer satisfaction enables the hotel to know how customers define the service and products quality, facilitates the development of customer satisfaction questionnaires (Haye 1997; cited in Alemneh & Gebremichael, 2018). It also impacts on the repeat visitation and word of mouth recommendation (Berkman & Gilson, 1986; cited in Alemneh & Gebremichael, 2018). When a customer feels satisfied, he/she spends more time and buys more because of pleasant environment stimuli (Bohl, 2012, Chebat, Sirgy & Grzeskowiak, 2010; Hussain & Ali, 2015; Fatima & Rasheed, 2018; Mokwuah, 2018). Customer satisfaction leads to repeat visits, customer loyalty and relationship commitment. In addition, when tourists are satisfied and delighted, they spread positive word-of-mouth (WOM), thereby attracting new visitors.


1.2 Statement of the Problem

Due to the increasing competitive conditions, particularly those enterprises are choosing the way of increasing their service quality in order to survive. The situation is the same for the lodging industry, which is a branch of the service sector. The hospitality industry that experienced rapid changes and developments after 1980 has entered into the race in providing better quality service by keeping customer satisfaction in first order. Because the offered products by the hotels have similar qualifications, the quality level of service offered becomes the main factor determining the customer’s preference (Tsaur and Lin, 2004).

The hotel industry in Nigeria has continued to experience growth and increase in the number of hotel rooms from 8,400 available in 2013 to about 24,000 rooms in 2018 (Bello & Majebi, 2018). The increment in the number of available rooms in the Nigeria hotels does not reflect a corresponding increase in the average occupancy rate, as data from Statista (2018) shows that most hotels in Nigeria operate under 50% of their available room capacity from 2014 to 2018. The low occupancy rate and low number of the international tourist arrivals pose a great challenge to the industry. In view of the aforementioned, this study seek to examine service quality and customer behavioral intention among hotels.


1.3 Objectives of the Study

The overall aim of this study is to examine service quality and customer behavioral intention among hotels. Hence, the study will be channeled to the following specific objectives;

  1. Determine whether there is a significant relationship between service quality and customer behavioral intention.
  2. Find out whether service quality influences customers satisfaction in hotels.
  3. Ascertain whether customers perceived service quality significantly influences their behavioral intention among hotels.

1.4 Research Questions

  1. Is there a significant relationship between service quality and customer behavioral intention?
  2. Does service quality influence customers’ satisfaction in hotels?
  3. Does customers perceived service quality significantly influence their behavioral intention among hotels?

1.5 Research Hypothesis

  • Ho: There is no significant relationship between service quality and customer behavioral intention.
  • Ha: There is a significant relationship between service quality and customer behavioral intention.

1.6 Significance of the Study

This study will enlighten the stakeholders in the hotel industry on the need to priorities service quality dimensions such as tangibility, reliability, responsiveness, confidence, and communication so as to actualize desired customer satisfaction.


1.7 Scope of the Study

The scope of this study boarders on service quality and customer behavioral intention among hotels. Geographically, this study will be carried out in selected hotels in Owerri Imo State.


1.8 Limitation of the Study

Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.


1.9 Definition of Terms

Service Quality

Service quality as the comparative function that links customer expectations to the provided service.

Customer Satisfaction

Customer satisfaction as “a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectation.

Behavioural Intentions

Behavioural intentions could be seen as the would-be attitude of customers after patronizing a firm. Behavioural intentions signals if the customers will remain with or switch from the company.


1.10 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows.

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on service quality and customer behavioral intention among hotels using selected hotels in Owerri Imo State as a case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was to examine service quality and customer behavioral intention among hotels using selected hotels in Owerri Imo State as a case study. The study was specifically carried out to determine whether there is a significant relationship between service quality and customer behavioral intention, find out whether service quality influences customers satisfaction in hotels, and ascertain whether customers perceived service quality significantly influences their behavioral intention among hotels.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 35 responses were validated from the enrolled participants where all respondent were employees of selected hotels in Owerri Imo State.


5.3 Conclusions

Based on the findings of this study, the researcher concluded that;

  1. There is a significant relationship between service quality and customer behavioral intention.
  2. Service quality influence customers’ satisfaction in hotels.
  3. Customers perceived service quality significantly influence their behavioral intention among hotels.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

  1. Hotel managers should create attractive physical facilities for the clients to come back to the hotel again and to be willing to pay more money for the services. In order to realize these, they must be avoided from negative effective behaviors such as being unable to fulfill the promises they made before by creating high expectations that will never be served later on.
  2. Stakeholders should improve on all the seventeen factors influencing customer satisfaction. This factor is to help these hotels enhance satisfaction among their customers. Apart from that, these hotels should also implement the latter’s five-dimensional aspects because they positively impact customers’ satisfaction. Moreover, during resource allocation, it is recommended that more emphasis should be put on the reliability dimension because it portrays a higher impact on customer satisfaction. Lastly, it is recommended that hotel communication channels should be improved since most customers are dissatisfied with this factor.

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