The Effect of Service Quality on Customer Satisfaction in New Rated Five Star Hotels in Addis Ababa
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Date
2016-06
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Addis Ababa University
Abstract
The main objective of this study was to examine the effect of service quality on customer’s satisfaction towards the services provided by five star hotels in Addis Ababa, Ethiopia. A researcher used a probability technique which is systematic for the study. A total of 281 questionnaires were distributed to customers of the four international hotels which rated as five stars in Addis Ababa. The response rate of 248 participants was collected and out of these 235 respondents representing a response rate of 83.6% is achieved and descriptive statistics were used firstly to illustrate the main features of a data set in quantitative terms: the mean value for all variables ranged from 3.65 to 4.33, the standard deviation ranged from 0.6 to 1.1, Kurtosis and Skewness test demonstrated as the distribution was normal. The correlation analysis illustrated the relation between assurance and overall service satisfaction was strongly correlated (r=0.551); the relation between responsiveness, and overall service satisfaction is moderately correlated ( r=0.498; the relation between reliability and overall service satisfaction was less correlated (r=0.259); the relation between empathy and overall service satisfaction was moderately correlated ( r=0.494); the relation between tangibility and customer satisfaction was moderately correlated (r=0.425); the relation between recovery and overall service satisfaction was strongly correlated (r=0.532) and all were tested as statistically significant (Sig. (2-tailed) = 0.000). The final test was done by regression analysis: the result indicated that the effect of reliability and tangibility on overall service satisfactions were insignificant (Sig. 0.713 and 0.755 respectively); the effect of responsiveness (Sig. 0.042), assurance (Sig. 0.020), and empathy (Sig. 0.011), and recovery (Sig. 0.000) on overall service satisfactions were significant. It should be noted that the rated hotels should achieve and maintain customer-perceived service quality as an essential strategy for the successful provision of the overall customer satisfaction and customer retention. It should be important to measure perceived service quality on continues base as it is considered to be the fundamental in developing a customer-oriented strategy that ensures the long-term survival of the firms
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Keywords
Service Quality, Customer Satisfaction, Service Management