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Volume 16 Issue 5 Version 1.0 Year 2016
Type: Double Blind Peer Reviewed International Research Journal
Publisher: Global Journals Inc. (USA)
Online ISSN: 2249-4588 & Print ISSN: 0975-5853
ServiceQualityandCustomerSatisfactioninHospitalityIndustryTheCaseofSelectedHotelsinJimmaTownEthiopia
Strictly as per the compliance and regulations of:
© 2016. Shimekit Kelkay Eshetie, Wondoson Seyoum & Seid Hussen Ali. This is a research/review paper, distributed under the
terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-
nc/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly
cited.
Service Quality and Customer Satisfaction in
Hospitality Industry: The Case of Selected
Hotels in Jimma Town, Ethiopia
Shimekit Kelkay Eshetie α, Wondoson Seyoum σ & Seid Hussen Ali ρ
Abstract- Hospitality is an umbrella term covering a variety of that to obtain a higher Star rating a progressively higher
businesses, including restaurants, hotels, resorts and casinos. quality and range of services and physical facilities
2016
In a highly competitive hotel industry, individual hoteliers must should be provided across all areas with particular
find ways to make their products and services stand out
Year
emphasis in five key areas: cleanliness, service, food,
among the others. The main aim of this study was to
bedrooms and bathrooms (Culture, 2015).
investigate service quality and customers satisfactions in
hospitality industry: the case of selected hotels in Jimma town For the reason that Ethiopia initially overlooked 73
in Ethiopia, by applying a modified version of the LODGING the hotel sector by not paying attention to the hospitality
industry, authorities likewise failed to monitor the code
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
QUALITY INDEX model. In line with the objective, descriptive
and explorative research methods were employed to analyze of ethics governing hoteliers. The hotels handling of
the data collected through questionnaire from a sample of 172 customer related issues are not scientific still it is
respondents and correlation and regression analysis were following traditional way for example throwing the food
used to see the cause and effect relationships. The key finding in front of the guest, insulting the guests, cheat the
showed that there was a negative gap between actual service
guest or failure to give the change back as fast as
and expected service in all dimensions of lodging quality index
and significant and positive relationships of five service quality
possible, chewing gum while serving the guests, pasting
dimensions and customers satisfactions. finger into the nose while serving, touching hair and
Keywords: service quality, LODGING QUALITY INDEX, other bodies, failure to keep their neatness and the poor
expectations, perceptions, and satisfaction. quality of food and lack of complaint handling. In
addition they were simply collecting money with no
I. Introduction progress in service quality and with no applicable
D
practical SERVQUAL model (G/egziabher, 2015). These
espite the vast amount of research done in the
problems likewise have been seen currently in Jimma
area of service quality, quality related issues
town hotels service.
have received little research attention within the
The research results showed that most of the
hospitality context especially in Ethiopia. The hotel
hotels in Jimma town did not meet the standards those
industry consists of many different services, including
are expected in terms of service delivery such as
accommodation, restaurants, cafes, and catering. The
adequate facilities, excellent customer relationship, and
market for the hotel industry, especially classified hotels
knowledge of product or service offerings, trained
in a developing country like Ethiopia, is closely linked to
personnel, provision of confidence and trust of services
the tourism industry, because a majority of consumers
offered. These have led to customers complaining of
for the sector come from international tourists
poor quality of service, loss of confidence and
(G/egziabher, 2015).
dissatisfaction.
Even though Ethiopia is in development path in
Moreover, managers of the observed hotels
different service sectors, still the country suffered from
sometimes act as if today’s profits are primary and
having world class hotel chains in number and providing
customer satisfaction is secondary. They have lost sight
international service standards. The country also
of the idea that customers are their most important
suffered attracting more private hotel owners due to
priority. Many of them have no idea who their customers
different reasons and the existed hotels do not perform
are, or what their customers want and have no idea how
well as per the international hotel standards and these
to find out. This attitude leads to fewer repeat customers
clearly show that the country does not enjoy economic
and negative word of mouth.
contribution from hospitality industry as expected
Even if few studies were conducted on
(Mitiku, 2015).
hospitality industry for example by G/egziabher (2015)
According to Ethiopian ministry of culture and
and Andargie (2013) assessed hotel related services in
tourism quality standards to the hotels grading
Addis Ababa, deep reviewed of these research result
requirements and classification evaluation criteria states
showed that there is a gap in way of measuring
customers satisfactions. As different writers stated that
Author ρ: Jimma University. e-mail: seidju63@gmail.com customers’ satisfactions should be measured based on
© 2016 Global Journals Inc. (US)
Service Quality and Customer Satisfaction in Hospitality Industry: The Case of Selected Hotels in Jimma
Town, Ethiopia
computing the actual service and expected service approaches to maximize the customer satisfaction
results. Customer satisfaction is the outcome of based in a service quality.
customer’s perception of the value received in a Furthermore, the players in the hospitality
transaction or relationship, where value equals industry, precisely the hotel has been directed the
perceived service quality, compared to the value efforts to change the way they act in this industry,
expected from transactions or relationships with focusing in understand customer’s needs and set out
competing vendors (Parasuraman et al, 1988). strategies to meet or exceed these needs. The way they
The objective of the study is to show the gap have found to achieve this strategy is to raise the
between provided services and expected services and attention to service quality from the customer’s
relationships in terms of five dimensions: tangibility, perspective (Al Khattab & Aldehayyat, 2011).
reliability, responsiveness, confidences and
b) Customer satisfaction
communications and customers’ satisfactions the case
Customer satisfaction is the outcome of
of selected hotels in Jimma town, Ethiopia.
2016
result in high level of customer satisfaction Suki (2013) perceived service quality, compared to the value
and based on the widely common service quality expected from transactions or relationships with
74 measurement model LODGING QUALITY INDEX competing vendors (W.H.D.P.U.G, 2014).
developed by Getty and Thompson (1995) and to see
In order to achieve customer satisfaction, it is
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
© 2016
1 Global Journals Inc. (US)
Service Quality and Customer Satisfaction in Hospitality Industry: The Case of Selected Hotels in Jimma
Town, Ethiopia
reduce the dissonance by seeking information that and international hotel guests the results showed that
might confirm its high value (Kotler, 2000). the overall customer satisfaction levels towards the hotel
The SERVQUAL instrument is used to assess stay is not satisfactory. Likewise, Kariru (2014) has
consumer perceptions and expectations regarding the made a research on the customers’ perceptions and
quality of a service. The original service dimensions expectations of service quality in hotels in Western
used by consumers to judge the quality of a service tourism circuit, in Kenya indicated that the hotels have
include: room to improve their service quality and adapt to
Assurance– knowledge and courtesy of all employees customers’ expectations, so as to generate increased
and their ability to inspire trust and confidence in hotel customer satisfaction and the resultant competitiveness.
guests. It is evident that a gap exists between customers’
perceived and expected service quality standards of
Empathy– consideration, individualized attention the
hotels.
hotel provides to its guests. 𝜋𝜋
2016
Furthermore, G/egziabher 2 (2015)examined the
Reliability– the ability to perform the promised service
dependably and accurately. service quality and customerss satisfaction in hotel
Year
industry in Addis Ababa, Ethiopia on three star hotels
Responsiveness– a sincere willingness to assist guests
stated that the combination of tangibility, reliability,
and provide timely service. 75
responsiveness, confidence and communication
Tangibles– The ambience and general appearance of together has significant and positive effect on customer
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
the physical facilities, rooms, restaurants, equipment, satisfaction. And also the hotel guests’ perceptions of
personnel, and communication materials (Na, 2010). service quality provided by the hotel industry were lower
For each dimension, the SERVQUAL scale than their expectations.
provides a score for customer expectations (E) and as Andargie (2013) conducted a study on foreign
core for customer perceptions (P) of service providers’ customer satisfaction in Ethiopian five star hotels
performances. Customer expectations are wants or Sheraton Addis and Hilton intercontinental hotels
desires of customer, what they feel from the providers or reported that foreign customers are not satisfied by the
it can be the prediction of future events. While customer services of the hotels, more over all services quality
perceptions are measured directly within and after their dimensions created a gap in their expectation and
experience in using service. They reveal the evaluations perception of guests. Besides Zeleke (2012) has
of customers about what they gain from service (Na, examined a study about the impact of service quality on
2010). customer satisfaction at the public owned National
According to Parasuraman et al (1988), the Alcohol and Liquor Factory stated that the five service
difference between the two scores is service quality (Q). quality dimensions brought an impact on customer
Q=P–E satisfaction was significant in all factors of service
quality.
The key to optimizing service quality is to
e) Conceptual Frame work
maximize this positive gap score. The negative value of
Conceptual framework was developed to
this gap score reveals the dissatisfaction of customers.
identify the capability to predict the customer
The input to calculate this score is customers’
satisfaction based on the dimensions of service quality.
feedbacks.
The conceptual frame work depicts the
c) Lodging Quality Index relationship between the independent and the
The lodging quality index (LQI) is a dependent variables.
multidimensional scale developed on the basis of Currently the LODGING QUALITY INDEX model
SERVQUAL model. The process of the LQI scale began has been proven to be the best model to measure
with ten dimensions that were originally in the first service quality in service sectors especially with the
version of SERVQUAL (Parasuraman et al, 1988). The customer perspective. This idea generates an
authors claimed that the LQI is a generic measure of assumption that the five dimensions of LODGING
hotel service quality (Na, 2010). QUALITY INDEX model could have a direct relationship
d) Previous Studies on Hotel Industry with customer satisfaction. To see the relationship
According to the study by Hasan (2014), on the between customer satisfaction and service quality
measuring service quality and customer satisfaction of dimensions it is better to use the model (G/egziabher,
the Hotels guests in Bangladesh, guest states that the 2015 and Na, 2010).
hotel guests’ perceptions of service quality provided by
the hotel industry were lower than their expectations.
The lowest expectations and perceptions were given by
Bangladesh guests towards the hotels and domestic
Tangibility H1
Reliability H2
H3 Customers’ Customers’
Responsiveness Satisfactions Repurchase
H4
2016
Confidence
Y ear
H5
76 Communication
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2016
b) Data Collection Instrument use of descriptive statistical tools such as frequency,
Year
For the purpose of gathering primary data, valid percentages, minimum and maximum value, mean
structured questionnaire were developed and and standard deviation of results with the help of SPSS
administered with the selected sample respondents/ version 16 by employing descriptive and inferential 77
guests. In this survey, self-completion questionnaire with analysis techniques.
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
closed questions were developed.
The questionnaire were a complete survey of 40 IV. Data Analysis and Discussions
questions covering mostly hotel services including the All items shows strong consistency and its
first division with 4 items based on general information constructs indicated by values of Cronbach’s alpha
second part with 30 items based LODGING QUALITY higher than 0.70. This suggests that the items
INDEX. concerned adequately measure a single construct for
c) Data Analysis each tested variable (tangibility, empathy, responsive-
Quantitative analysis techniques were employed ness, reliability, assurance). Reliability measurements for
to show processed data in absolute terms through the each construct are shown in Table 4.1.
1. How many times have you previously visit at the studied hotels within a month?
Table 4.2: Frequency and percentage of customers visiting the studied hotels
As the table 4.2 shows that most of the studied information’s to judge or evaluate level of service quality
hotels visit the hotels approximately more than four to studied hotels.
times within a month. So the customers have enough
2. Education level
Table 4.3: Education level
As the table 4.3 depicts that more numbers of review service quality is composed of tangibility,
the respondent were higher in educational level. So they reliability, responsiveness, confidence, and
78 have enough knowledge to judge whether the service communication. The 172 respondents were asked to
delivered by studied hotels have quality or not or met rate each statement concerning their expectation and
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
First, the results in the table 4.4 in the expected. That is provided services by the studied
dimension Tangibility showed that customers had high hotels had not been met customers’ expectations based
expectations for an excellent hotel to have modern on all Tangibility dimension.
functionality and appearance of the property. However, All the tangibility dimensions such as visually
when their perceptions of studied hotels functionality appealing front desk, the neatness of employees, the
and appearance were compared to their expectation restaurant’s atmosphere, attractiveness of outdoor
levels a gap of -0.65 was found. surroundings, brightness of the hotel, well maintaining
The data shows that customer perceptions’ on interior and exterior of the hotel are not appealing as the
actually having modern looking functionality and customers’ expectations. As a result negative difference
appearance of the property were lower than what they between perceptions and expectations of the customers
© 2016
1 Global Journals Inc. (US)
Service Quality and Customer Satisfaction in Hospitality Industry: The Case of Selected Hotels in Jimma
Town, Ethiopia
2016
3 RLQ3:TV, radio, A/C, lights, and 172 3.81 .91341 3.03 1.16191
other mechanical equipment
Year
worked properly -0.78
4 RLQ4:I got what I paid for 172 3.78 .88866 2.60 1.17460
-1.18
5 RLQ5:Hotel Provides services at the 172 3.92 .70924 2.91 .91929 79
time it promises to do so -1.01
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
6 RLQ6:Employees were able to 172 3.94 .72313 3.10 1.07921
accurately answer my questions -0.84
Aggregate mean 3.84 3.01 Dissatisfied
(-0.83)
Second, Customers’ expectations and attribute was being evaluated. However, on all the
perceptions on the Reliability dimension of the Hotel statements in this dimension customers’ expectations
were sought based on six dummy variables (Table 4.5) exceeded their perceptions of the service quality at the
above. Reliability dimension mean score perceptions studied hotels (-0.83)
ranges from (mean 2.60 to 3.22) and expectations These finding indicates that Overall satisfactions
(mean 3.78to 3.80); on studied hotels promised service dependably and
The data shows that Customers’ expectation accurately was below customer expectations.
levels vary in this dimension according to which service
Table 4.6: Customer satisfaction concerning service Quality Responsiveness dimensions
Customers’ Customers’ Cust.sat.
LODGING QUALITY INDEX N
No. expectation Perceptions Level
RESPONSIVENESS mean S.D mean S.D P-E=Q
1 RQ1:Employees responded promptly to 172 3.90 .77731 2.85 1.30981
my requests -1.05
2 RQ2:Informative literature about the 172 3.89 .71784 3.05 1.33449
hotel was provided -0.84
3 RQ3:Employees were willing to answer 172 3.85 .88973 3.02 1.08942
my questions -0.83
4 RQ4:Employees responded quickly to 172 3.87 .83043 3.03 .95162
solve my problems -0.84
5 RQ5:Room service was prompt 172 3.96 .69160 3.05 1.15604
-0.91
6 RQ6:Check-in and check-out 172 3.99 .67967 2.95 1.11771
procedures were fast and efficient -1.04
AGREGATE MEAN 3.91 2.99 Dissatisfied
(-0.92)
Third, Customers’ expectations and perceptions In all items of responsiveness such as
were sought on four variables coming under the employee’s willingness to promptly respond the
Responsiveness dimension (Table4.6) above. customers’ request, availability of informative literature
Customers were asked six questions to ascertain their about the hotel, employee’s willingness to solve the
level of expectations and perceptions on the above guest problem quick availability of room service, fast
variables. In the statement of responsiveness dimension check-in check-out procedure are a negative results to
customers’ perceptions range from (mean 2.85 to 3.05) customers satisfactions.
and expectations (mean 3.85 to 3.99) results -0.92.
© 2016 Global Journals Inc. (US)
Service Quality and Customer Satisfaction in Hospitality Industry: The Case of Selected Hotels in Jimma
Town, Ethiopia
It showed that the customers’ perception was lower than their expectations.
Table 4.7: Customer satisfaction concerning service Quality confidence dimensions
4 CQ4:Employees were polite when 172 3.80 .91088 2.99 1.18464 -0.8081
answering my questions
Year
5 CQ5;The hotel provided a safe 172 3.74 .88768 2.96 1.21826 -0.7791
environment
80 6 CQ6:The facilities were 172 3.78 .88392 3.05 1.21787 -0.73
conveniently located
AGREGATE MEAN GAP 3.79 3.04 Dissatisfied
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
(-0.75)
Fourth, Customers’ expectations and environment delivered by the hotels, politeness of staffs
perceptions on confidence dimension of the Hotel were and facilities located suitable place are a negative
sought on six variables (Table 4.7) above. They were results when we compare customers’ expatiations.
examined through six questions to verify their level of A negative difference (-0.75) was observed with
expectations and perceptions on the above variables. regard to the customers’ perceptions and expectations
The result perceptions mean’s score range from (mean of the all confidence dimension. It confirmed that
2.96 to 3.13) and expectations (3.60 to 4.00); customers’ expectations had not been met and they
In all items includes: knowledge of employees were dissatisfied about the confidence dimension of
about local place, treatments’ of guest, secured Hotel services.
Table 4.8: Customer satisfaction concerning service Quality communication dimensions
out guests’ particular needs accessibility, managers of These findings indicate that the customers still
the hotel was supervising and friendly welcoming guest expect more in the quality of service given by the service
and Hotels employees deals with guests in a caring providers. Because service delivered by Jimma Hotels
fashion. are not match with their expectations.
b) Correlation Result of Service quality and Customer satisfaction
Table 4.2.1: Correlations matrix
2016
N 172 172 172 172 172 172
Year
TANGEBLITY Pearson Correlation .345** 1 .134* .097 .213** .104
81
Sig. (1-tailed) .000 .040 .103 .002 .088
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
N 172 172 172 172 172 172
Table 4.2.1 shows that Correlation value Reliability is positive relations with
between service quality dimensions and customer responsiveness(r=0.361**, P<0.01).
satisfaction. The results of correlation analysis Responsiveness is no correlations with
supported the hypothesis H1, H2, H3, H4, & H5 and confidence and communications (r=0.297**, p< 0.01
proved that there is a positive and strong significance and r=244**, p<0.01 respectively).
relationship between the LODGING QUALITY INDEX Confidence is positive relations with
dimensions and customer satisfaction. communications (r=.471**, p<0.01).
Tangibility and customer satisfaction Tangibility is no correlations with reliability and
(r=0.345**, p < 0.01), reliability and customer confidence (r=0.134*, p<0.05 and 0.213**, p<0.01
satisfaction (r =0.418**, P < 0.01), responsiveness and respectively).
customer satisfaction (r=0.545**, P < 0.01), confidence
and customer satisfaction (r = 0.474**, p< 0.01), c) Regression Analysis
communications and customer Satisfaction (r=0.402**, The researcher used multiple regression
P < 0.01) are positively correlated respectively. analysis to examine the independent variables:
Unstandardized Standardized
Collinearity Statistics
Model Coefficients Coefficients t Sig.
B Std. Error Beta Tolerance VIF
(Constant) -3.744 .228 -16.402 .000
RESPON. .238 .046 .308 5.149 .000 .772 1.295
2016
Std. Error of
Model R R Square Adjusted R Square
the Estimate
2016
a. Predictors: (Constant), RESPONSIVENESS
Year
b. Predictors: (Constant), RESPONSIVENESS, CONFIDENCES
c. Predictors: (Constant), RESPONSIVENESS, CONFIDENCES, RELIABLITY
d. Predictors: (Constant), RESPONSIVENESS, CONFIDENCES, RELIABLITY, 83
TANGEBLITY
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
e. Predictors: (Constant), RESPONSIVENESS, CONFIDENCES, RELIABLITY,
TANGEBLITY, COMUNICATIONS
Sum of
Model df Mean Square F Sig.
Squares
1 Regression 27.032 5 5.406 39.289 .000a
Thus it can be concluded that there is a significant relationship between communications and
significant and positive relationship between Reliability Customer satisfaction.
and customer satisfaction. To sum up the five dimensions of the lodging
H0: There is no significant relationship between the quality index (LQI) those generic measures of hotel
dimension responsiveness of service quality and industries’ quality service have significant and positive
customer satisfaction. relationships with customers’ satisfactions at 99%
confidence level.
H1: There is a significant relationship between the
dimension responsiveness of service quality and V. Conclusion and Recommendations
customer satisfaction.
The regression analysis showed that a) Conclusion
responsiveness had a beta value of 0.308, which was Customers are very crucial part of the success
the highest of all the variables and p-value less than 1% of any company. Their satisfaction with a purchased
2016
sig. level. The data analysis also found that Reliability product or service influences their decision to purchase
was strongly correlated to customer satisfaction with a it again. This holds true for the companies in the hotels
Year
significant Pearson coefficient of 0.543** with 1% sig. industry satisfied customers prefer to return to the same
level. With this data we can support the developed hotel or restaurant if they really liked it. Therefore,
84
alternative hypothesis (H3) and we have very strong customer satisfaction plays a very important role in the
evidence to reject the null hypothesis. So the finding hotel industry and should be seen as one of the first
Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
concludes that there is a significant and positive management’s priorities at all hospitality companies.
relationship between Responsiveness and Customer The findings of the study could be summed up:
satisfaction. 1. The dimension of responsiveness has significant
H0: There is no significant relationship between the and positive relationships with the customers’
dimension confidence of service quality and customer satisfactions at more than 99% confidence level.
satisfaction. And also all attributes of responsiveness were not
H1: There is a significant relationship between the match with customer expectations. The result leads
dimension confidence of service quality and customer to negative disconfirmation, where performance is
satisfaction. deemed worse than standard, resulting in
As shown in table 4.15 in the data analysis, dissatisfaction of customers to the studied hotels.
Confidence had a significant beta value of 0.250 and p- 2. Communications had a significant and positive
value less than 1% sig. level. And the variable relationship with the customer satisfaction in hotel
confidence was also positively correlated to customer services. All elements of communications were
satisfaction (r=0.474** and p<0.001) as depicted in results a negative sign in each considered hotels. In
table 4.14.With this data developed alternative other words, the studied hotels were not capable in
hypothesis (H4) can be supported and the researcher fulfilling the guest satisfactions in any elements of
has very strong evidence against the null hypothesis at communications.
1% significance level. 3. Tangibility had a significant and positive relationship
So the finding concludes that there is a with the customer satisfaction in hotel services. And
significant and positive relationship between Confidence negative difference between perceptions and
and Customer satisfaction. expectations of the customers related to the
H0: There is a significant relationship between the Tangibility dimension was recorded. So, customers
dimension communication of service quality and were dissatisfied with the Tangibility dimension of
customer satisfaction. the studied Hotel.
H1: There is no significant relationship between the 4. Reliability had a significant and positive relationship
dimension communication of service quality and with the customer satisfaction in hotel services. And
customer satisfaction also the studied hotels failed in fulfilling in
As shown in table 4.15 in the data analysis, customers’ expectations in all elements of reliability
Communication had a significant beta value of 0.178 dimensions.
and p-value less than 1% sig. level. And the variable 5. Confidence had a significant and positive
Communication was also positively correlated to relationship with the customer satisfaction in hotel
customer satisfaction (r=0.407** and p<0.001) as services. All items includes: knowledge of
depicted in table 4.14 employees about local place, treatments’ of guest,
So the constructed alternative hypothesis can secured environment delivered by the hotels,
be supported and the researcher has very strong politeness of staffs and facilities located suitable
evidence against the null hypothesis at 1% significance place are a negative average score results when
level. Finally it can conclude that there is a positive and we compare customers’ expatiations.
© 2016
1 Global Journals Inc. (US)
Service Quality and Customer Satisfaction in Hospitality Industry: The Case of Selected Hotels in Jimma
Town, Ethiopia
2016
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Customer Satisfaction in Hotel Industry: The Case of
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Global Journal of Management and Business Research ( E ) Volume XVI Issue V Version I
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