CUSTOMER SATISFACTION INFLUENCE AND CUSTOMER LOYALTY

Critically analyze how customer satisfaction influence customer loyalty of rooms department in Harbour Grand Hotel (Hong Kong)

Abstract

This study aims to analyse service quality, customer satisfaction and customer loyalty in the Harbour Grand Hotel. This paper will also review the theories of customer satisfaction and customer loyalty. Further this research explains the importance of customer satisfaction and customer loyalty in the hospitality industry. Later part of this research focuses on the customer satisfaction and customer loyalty in the Harbour Grand Hotel.

Table of Contents

CHAPTER ONE: INTRODUCTION3

Background of the Study3

Aims of the Study3

Objectives3

Scope of the Study3

Organization of the Study3

CHAPTER TWO: LITERATURE REVIEW3

Service Quality3

Concept of Hotel Companies' Service3

What is satisfaction?3

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY3

Research Model3

Definition Of Variables3

Instrument Design3

Sample And Data Collection3

Data Analysis3

CHAPTER FOUR: RESULT AND DISCUSSION3

Demographic Characteristics of the Sample Group3

Factor Analysis And Reliability Analysis3

Factor Analysis And Reliability Analysis—The Prestige Class3

Factor Analysis And Reliability Analysis—The Economy Class3

Regression analysis3

Regression Analysis—The Prestige Class3

Regression Analysis—The Economy Class3

Implication Of Regression Analysis3

CHAPTER FIVE: CONCLUSION3

REFERENCES3

Chapter One: Introduction

Background of the Study

Today, the service industry has become the most important segment of the world economy (Lee, 2007, 145). In the USA, the service industry constitutes around 60% of the annual GDP and nearly 70% of new jobs, leading the worldwide expansion of the service industry (Mckee 2008, 22). Thus, many researchers have studied service quality and tried to identify the factors which affect customer satisfaction and loyalty in various industries to increase service performance (Parasuraman et al. 1988a; Carman 1990; Cronin and Taylor 1992; Asubonteng et al. 1996; Davis 1999; Lee and Cunningham 2001; Jones et al. 2002; Santos 2003, 12). However, there is a paucity of research on the service quality of the hotel industry, despite the fact that the hotel industry traditionally has a high level of competition, a situation which makes hotel companies strive to find ways to improve their service quality to gain competitive advantage.

Aims of the Study

The aim of the study is to critically analyse service quality, customer satisfaction and customer loyalty in the Harbour Grand Hotel.

Objectives

To critically review the theories of customer satisfaction and customer loyalty;

To explain and justify the importance of customer satisfaction and customer loyalty in the hospitality industry;

To investigate the customer satisfaction and customer loyalty in the Harbour Grand Hotel;

To indicate how customer satisfaction influence customer loyalty in the Harbour Grand Hotel.

Scope of the Study

The most direct hotel service to customers is on-service by hotel attendants, as passengers tend to evaluate hotels based on their degree of satisfaction with the on-service (Park et al. 2004, 212). Accordingly, improving the on-service quality is one of the most critical success factors of hotel companies, more specifically, on-service meal service is a major determinant of the on-service. There were some important previous studies which tried to identify service quality factors in the hotel industry (Ostrowski 1993; Sultan and Simpson 2000; Tsaur et al. 2002; Chang 2002; Mazzeo 2003; Park et al. 2004; Ito and Lee 2004; Chen and Chang 2005; Lioua and Tzeng 2007; Bruecknera and Girvin 2008, ...