Service Quality & Customer Satisfaction: The Case of four Star Hotels in Addis Ababa, Ethiopia
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Date
2014-05
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Addis Ababa University
Abstract
Hotel is one of the service industries which have stiff competition and we can see many new hotels are appearing with a new look, technology and better strategy from time to time. They have to believe customers as core concept of their hotels; customer satisfaction is what guarantees the future of business and it is achievable by taking up their services and customers’ needs. Hence, it’s very important to assess and measure service quality and customer satisfaction level in order to know the hotels status and also to make a necessary adjustment as soon as it’s needed. Many researches are done in the hospitality and hotel industries predominantly focus on the one or two hotels specifically and the researcher is aware of some other researchers doing on five and three star hotels found in Addis Ababa at the same time. Therefore, this research was conducted to measure service quality and customer satisfaction level of four star hotels found in Addis Ababa, Ethiopia using service quality dimensions adapted from Parasuraman et al. that are reliability, responsiveness, assurance, empathy and tangibles and the researcher added two additional dimensions those are hotel service/product quality and price. A total of 165 questionnaires were administered to 10 four star hotels customers and 123 questionnaires were returned and usable for a comprehensive empirical analysis.Both descriptive and inferential statistics have been used to find mean score and to test hypothesis and to investigate research problem, objectives and questions. From the correlation analysis it was found that out of seven service quality dimensions five of them (reliability, responsiveness, assurance, empathy and hotel service/product quality) are correlated with overall customer satisfaction level. From the regression analysis result, it has been found that HSP, empathy and assurance of service quality dimensions have positive significant impacton satisfaction and tangibility dimensions have negative significant impact. The other reliability, responsiveness and price have insignificant effect on overall customer satisfaction level. Finally, the overall customer satisfaction analysisindicates that the majority of the respondents are satisfied with the service quality level of the hotels. Even if, the customers are satisfied with the current service quality the hotels must strive to attract new customers, sustain & even delight the current one’s and be a better competitor in the industry
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Keywords
Service Quality, Customers’ expectation and perception, Customer Satisfaction