Relationship between Service Quality and Customer Satisfaction - Research Paper Example

Relationship between Service Quality and Customer Satisfaction Statement of the Problem Most hospitality products are intangible and can only be experienced. However, there are other tangible products such as food and physical comfort. Customer satisfaction is essential for success of any business firm. This is because it is responsible of repeated purchases. Attracting new customers is not enough for a hotel business to be successful. The management must focus on retaining the existing customers. Additionally, offering good quality services leads to word of mouth recommendation resulting in increased popularity of a business. The quality of services becomes a more important factor in the hospitality sector. There are assumptions that customer satisfaction is the most reliable indicator of the quality of services. However, there are disagreements on whether hotels should focus on measuring the service quality or the customer satisfaction when determining the areas to improve on. This study aims at examining the relationship between customer satisfaction and the quality of services by making use of Taj hotels. The paper will analyze if customer satisfaction can make a customer return to a hotel or recommend a guest to use the hotel. The study will make use of findings obtained by Taj Resort Hotels using tracking software. Background Literature Related to the Problem There are different perspectives regarding the relationship between quality of services and customer satisfaction. Some people argue that satisfaction is a precursor of the quality of services. Others claim that service quality results in customer satisfaction. Different methods have been used to examine how service quality relates to customer satisfaction. Most studies involve use of questionnaires that are distributed amongst customers in hotels to assess their perception on the quality of services received and the resultant level of satisfaction. Other studies have been done to determine if there is any relationship between customer satisfaction and service quality. Hotel industries offer tangible goods as well as services. However, both can result in satisfaction or dissatisfaction. The level of satisfaction towards a service or good is determined by the perceptions of the consumers or customers. Moreover, satisfaction is crucial in the hotel business since it determines the capability of a hotel to attract new clients or retain the existing ones. Some hotels such as Taj have created ways of getting feedback from their clients to enable them measure the customer satisfaction towards certain services. This is crucial since the hotels are able to identify areas that require improvement and work on them. Improved service delivery results in the improvement of the overall image of the hotel. Additionally, the quality of services in a hotel can be measured through determining the perception of the customers towards the tangibles such as food. Most customers will determine the quality of a product by considering the price. This enables them to determine if a product is worth a given price or not. According to Nagadevara (2008), the hospitality industry greatly relies on word of mouth communication in getting new customers as well as retaining the existing ones. If a customer’s checks into a hotel and is satisfied by the services offered, they are likely to share the experience with their friends who might visit the hotel to enjoy a similar experience. On the other hand, a non-satisfied customer is also likely to share the experience with friends, which will result in development of distaste towards the hotel. One factor behind the success of Taj hotels is the customer satisfaction. There are different factors contributing to customer satisfaction. One such factor is the beautiful architecture of the hotels that has made them to be considered iconic. Additionally, Taj hotel staff members are known to put the needs of the customers ahead of their own. Salazar, Rita, & Costa (2004) posit that customer satisfaction and service quality are closely related. Service quality determines the general impression that people have towards an organization. The perception is mainly determined by the way people regard the quality of services. However, satisfaction can also determine the quality. Service quality is determined by satisfaction when in cases involving employees. If the employer regards the employee’s wellbeing, they are likely to offer high quality services. This is the case At Taj where the management pays the employees good salaries motivating them to provide quality services. The quality of the services is measured in terms of the customer’s expectation and the capability of an organization to meet the expectations. If the customers’ expectations are met, there is satisfaction associated with this. Salazar, Rita, & Costa (2004) study involved use of questionnaires to determine the perceptions of customers on the quality of service provided by hotels. Additionally, the study examined the level of satisfaction after staying in different hotels and their willingness to recommend other people to same hotels. The study was done in 32 hotels, 532 questionnaires were filled, and the data collected was analyzed. The study findings showed that the perceptions of customers on service quality contribute to consumer satisfaction. Salazar, Rita, and Costa (2004) concluded that the decision on whether to recommend a friend to a hotel depends more on the quality of the service as compare to the consumer satisfaction. The study showed that there exists a strong relationship between service quality and consumer satisfaction resulting into confusions that the two are similar. They also concluded that the level of customer satisfaction determines the possibility of them recommending other people to use certain hotels. Pandey & Joshi, (November 2010) conducted a study to determine how the quality of services in a hotel determines the consumer behaviors in Nepal. They hypothesized that there exists a relationship between customer satisfacton, the quality of servies and behavioral intentions. The study involved use of questionaire which were distributed to customers in different hotels through the help of 10 students who had been on 6 months internship in hotels. The questions examined the relationship between service quality, behavioral intentions and customer satisfaction. 243 questionnairres were analyzed and the researchers found out that there is a direct relationship between customer satisfaction and behavioral intentions. However, the study showed that the relationship between service quality and behavior intention is negligible. They thus concluded that customer satisfaction has minimal influence on the probability of a customer recommending a certain hotel to other s. Abdullah & Rozario, (2009) did a study to examine the relationship between customer behavioral Intentions and the service qulaity. They concluded that the behavioral intention is greatly influenced by service quality. Taj hotels are associated with excellent quality in their services. Due to these perceptions, most tourist prefer using their hotel and palaces. In the past, most companies focused on ways to attract new customers. However, this has changed and most hotels focus on ways of retaining their customers. Nagadevara (2008) argues that the new perception arises from the realization that having loyal clients enhances lifelong profitability of the business. He argues that it is upon the hotel management to create the expectations as well as the opinion regarding their services. Depending on the created perceptions, the customers will recommend the hotel to their friend or fail to do so. Taj Hotels Resorts and Palaces are an international chain of hotel under. The Indian Hotels Company Limited. Currently, Tata Hotel has 99 hotels, which are located in 39 different regions within India. Additionally, Taj Hotels Resorts and Palaces have beaches located at Maldives and Sri Lanka. Additionally, Taj Company own other 18 international hotels located in Maldives, Middle East, Africa, Australia, U.S., U. K., Seychelles, and Malaysia. The hotel has a great reputation in term of the quality of services offered. The numerous awards that Taj has won can depict the reputation. Fen & Lian, (2006) posit that quality of services and the customer satisfaction are related and play a mjor role in ensuring business survival. Since the hotel industry is characterised by a lot of competiton, the capability of a hotel to retain its customers and acquire more plays a role in dertermining its success. Fen & Lian, (2006) attribute the capabability of a hotel to retain cusomers to the quality of services offered, which determine the level of client satisfaction. The rapid expansion of Taj hotel is atrributable to the quality of services offered in different outlets which has givent the hotel a competitive advantage. Methodology A oppose to other studies that involve collection and analysis of data. This study will make use of findings obtained by Taj hotels using their customer satisfaction tracking devices. Taj hotels usually track information that helps the management assess the level of customer satisfaction. By making use of Fidelio software for reservations as well as GST, Taj hotels are able to determine areas to change to ensure their services meet the expectations of their customers. To determine the relationship between customer satisfaction and quality of services, the information from the Taj Resort Hotels and palaces will be used. The software collects data regarding names and address of the visitors within their hotels, the time spent in the hotel, purpose behind their visit, and the kind of room the guests rented and the food preferences as well as rooms used in previous visits. Additionally, the guest gives feedback regarding previous visits and any critical incidences that may have occurred (Rai, n.d.). Using such information the hotel rates their different services, which include front office, in-room, the quality of food in the different subsectors, and other services offered within the hotel, Taj hotels are able to rate their services and assess the level of customer satisfaction. The feedback obtained is discussed at the different hotels and corrective actions taken when necessary. The views are used to track monthly performance (Rai, n.d.). After tracking the feedback of the guests, Taj hotel analyses the data. The analysis is done by dealing with one card at a time to assess the perceptions of each guest. By analyzing the data, the management is able to identify the factors that determine customer satisfaction or the guest drivers. Another source that Taj uses to obtain feedback from their customers includes direct interactions between the staff and the guests. Taj measures customer satisfaction using different time perspectives. Short-term result analysis is based on assessment of the daily feedback, daily reviews, as well as the number of complaints and other issues raised on daily bases. For mid-term perspective assessment, Taj uses feedback obtained over a certain period regarding performance in different areas such as cleanliness, courtesy, and quality of food and efficiency of the staff members in attending to the clients (Rai, n.d.). For long time perspective assessment, Taj assesses the performance in strategic planning, product development and different aspects regarding the service delivery. The data collected from the Formal Guest Satisfaction Tracking (GST) system at Taj showed that customer expectations have been increasing requiring Taj to improve on their services to meet the customers’ expectations (Rai, n.d.). From the feedback obtained, Taj Resort hotels and Palaces have been able to realize the excellence of their services due to the positive feedback obtained from most guests. One event proved the quality of the services offered by Taj hotels. On November 26, 2008, there was a dinner at Taj Mahal Palace Hotel in Mumbai hotel organized by Hindustan Unilever. During the dinner, which was attended by directors and senior executives from Unilever, a terrorist attack occurred at the hotel. On realizing that something was going wrong, the Taj staff members switched the lights of and closed the door. Additionally, Jagad, requested all people to lie down and remain silent. When the terrorists attacked, they hurled grenades, fired weapons. However, the Taj staff remained calm and kept serving the guest irrespective of the happenings within the hotel. When the terrorists left, the fire crew was able to rescue the guests. During the rescue process, the Taj Staff members allowed the guest to exit first. The conduct of the Taj hotel staff members boosted its popularity. The guests who were at the hotel were impressed by their performance. The scenario acted as a proof on how customer satisfaction can enable a hotel business gain the trust of their clients (Deshpande & Raina, 2011). Conclusion There is a strong relationship between the perceptions regarding satisfaction and service quality. However, the two factors are different and can be measured using different aspect. The satisfaction can be measured by comparing the expectations of the customer with the actual performance. The expectations are considered to have closely met if the customer is willing to return to the hotel or recommend others to go there. The level of satisfaction is crucial in hotel management since it determines the capability of a hotel to retain customers and attract new ones. The customer’s perceptions towards the quality of services are crucial and play a role in determining how satisfied the customers end up being. Taj Resort hotels and restaurant, which has been analyzed in this paper, is highly preferred by tourists and travelers due to the high quality of services offered which results in customer satisfaction. Taj makes use of Fidelio software to measure the level of customer satisfaction. The software enables the management to get the customer’s feedback regarding different services offered. The tracking and analysis of feedback from customers is crucial. It has enabled Taj to improve on its services resulting in increased customer satisfaction. References Abdullah, D., & Rozario, F. (2009). Influence of Service and Product Quality towards Customer Satisfaction: A Case Study at the Staff Cafeteria in the Hotel Industry. International Journal of Social and Human Sciences 3, 227-232. Deshpande, R., & Raina, A. (2011). The Ordinary Heroes of the Taj. Harvard Business Review, 119-124. Fen, Y., & Lian, K. (2006). Service Quality And Customer Satisfaction: Antecedents Of Customer’s Re-Patronage Intentions. Sunway Academic Journal 4, 59-73. Nagadevara, V. (2008). Improving the Effectiveness of Hotel Loyalty Programs through Data Mining. In V. Jauhari, Global Cases on Hospitality Industry (pp. 487-499). New York: Hawoth Press. Pandey, D., & Joshi, P. ( November 2010). Service Quality and Customer Behavioral Intentions: A Study in the Hotel Industry. California Journal of Operations Management, Volume 8, Number 2,, 72-81. Rai. (n.d.). Customer Relationship Management: Concepts And Cases. New York: PHI Learning Pvt.Ltd. Read More