Arabian Journal of Business and Management Review (OMAN Chapter) Vol. 2, No.8, March. 2013

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1 HOTEL SERVICE QUALITY: PERCEPTIONS AND SATISFACTION AMONG DOMESTIC GUESTS IN KENYA Susan Mbuthia 1 ; Caroline Muthoni 2 and Stephen Muchina 3 1 Karatina University -Department of Tourism and Hospitality (Kenya) 2 Institute of Advance Technology-Department of Marketing and Management (Kenya) 3 Karatina University -Department of business and Entrepreneurship (Kenya) Abstract The Kenya tourism industry is a key contributor to its GDP. Hotel subsector benefits directly from growth of tourism but sustainable customer base would require polished customer service. Domestic hotel guests to play an important role in bridging the seasonality gap that is the core of the international tourism business model. The ability to harness this capacity is dependent on the extent to which they perceive the services provided as being worth their money value. This study therefore aimed at determining the guest actual experience and evaluation from the stay hence assess how the hotel performed against perceived quality and the effect on guest satisfaction operationalised as emotional satisfaction. Descriptive Survey design was adopted for the study. Cluster sampling was applied to select the hotels from which customers were derived. The study self-administered questionnaires to 182 guests. 26 items were used to measure perceived service quality on using a seven-point Likert-type scale for their responses. The study found out that tangibility as a service is rated highly. However confidence and communication dimensions of quality scored low means hence low rating. The path leading from service quality to emotional satisfaction had a coefficient of 0.701, with a p-value of The path was significant; we therefore reject the null hypothesis and conclude that emotional satisfaction is dependent on service quality which supports that that emotional satisfaction is dependent on service quality. This study has revealed moderate influences of quality dimensions such as reliability, responsiveness and communication as given in their path coefficients on service quality. The study concludes that emotional satisfaction was derived from service-quality evaluation and agrees with Bagozzi s (1992) conclusion that cognitive evaluations precede emotional responses. The study recommends that service delivery capacity of employees be improved in the said hotels so that for example the customer can feel that their needs are anticipated, better communication is achieved, employees become more responsive as well as reliable. The management of these hotels may also pursue other motivating strategies to improve service quality. Key word: Domestic guests, service quality; perceived service quality, customer satisfaction and emotional satisfaction INTRODUCTION In Kenya, tourism is the foremost earner of foreign exchange and it contributed to Ksh 100 billion of the GDP in According to Republic of Kenya (2012), tourism made a direct contribution to the growth of hotel industry and other related sectors. Hotels on the other hand have to invest in managing their relationships with customers and maintaining quality to ensure that customers whose loyalty is in the short term will continue to be loyal in the long term. The growth in tourism is well anticipated as evident in studies and analyses conducted by experts and relevant organizations in this industry. Kenya is home to host of five star luxury hotels most of multinational owned or franchised such as Hilton Nairobi, Serena hotels and the Fairmont. There is also a wide range of 22

2 domestic hotels and hospitality enterprises whose service offering not only complements those of world class hotels but also serve the domestics guests or tourists. Domestic tourism especially in the developing world has for a long time been viewed as inconsequential. Gerosa (2003) states that domestic tourism is often overseen, despite case studies showing a greater impact particularly on the informal sector than international tourism. Domestic tourism in Kenya has however received due focus from tourism agencies for instance the Kenya Tourism Board planned to use Ksh50 million (around US$ ) mainly in marketing and promoting of domestic tourism in the country (Kenya News Agency, 2004). One of the ways of assessing the impact of such efforts would be to consider the bed occupancy rates by residents. It can be seen from Fig. 1 below that domestic bed occupancy in Kenya has been on the rise since Notable also is that there was remarkable growth in occupancy for the 2007/2008 period 26.95% to 42.35%. Meaning that domestic guest have become an important customer segment that warrants attention. On the other hand, growth rates notwithstanding inconsistencies are seen in the decline to 34% in 2009 which again points to some sort of inconsistency a gap which requires some critical attention especially in relation to service quality a gap this study sought to address. Source: Compiled by Author from Republic of Kenya: Ministry of Tourism Figure 1: Domestic Hotel Occupants as Percentage of total Occupancy per Year This study having appreciated the role the domestic hotel guests play in providing the necessary patronage, would like to make a case for studying perception of quality for the services they experience at this hotels. It is important to realise that the domestic guest may not necessarily attract the same kind of attention and receive similar kind of service as a foreign guest in some hotels as they may be treated as undeserving. Tourist class hotels are sometimes referred to as hotels for the whites an undertone that may affect negatively the quality of service offered to the domestic guest. If domestic guests are to be encouraged to play their roles in bridging the seasonality gap that is the core of the international tourism business model, then they have to perceive the services provided as being worth their money value. This study therefore aimed at determining the guest actual experience and evaluation from the stay hence assess how the hotel performed against perceived quality and the effect on guest satisfaction. LITERATURE REVIEW Service quality Quality concept can be viewed in various perspectives in order to fully appreciate the role it plays in the many parts of business organization especially in the hotel industry. According to Bruhn and Manfred (2006) the concept of service quality emerged as a major challenge for service companies. This is because of the characteristics of services; especially the encounter 23

3 of provider and customer in the service process, service quality is a more complex construct than product quality. Indeed the most fundamental definition of a quality product is one that meets the expectations of the customer. In hotel industry, quality is defined simply as product conformation to specifications while meeting the expectations of the customer. Since each customer have their own expectations, and then service quality remains a subjective matter that befits objective assessment through understanding of various facets of perception, their measurement and how they relate to satisfaction an issue we shall pursue in this proceeding section. Perceived service quality Several authors through their work have tried to conceptualise perceived service quality with varying illustrations especially in reference to the dimensions applied in their studies. Gronroos (1984) in his seminal paper on service quality defined the perceived quality of a given service as the result of an evaluation process, in which the consumer compares his expectations with his perception of the service received; in other words, he places the perceived service and the expected service opposite one another. In the same study, two factors that consumers consider when evaluating service quality were identified as functional quality and technical quality. The latter being the process of service delivery and the former is what consumers actually receive from the service. Parasuraman et al. (1988) identified five dimensions in their SERVQUAL model. These were tangible elements which are the physical surrounding of the place where the service is delivered for instance how the table is set or room furnishings, reliability which is seller s capability to supply the promised outputs at the stated level and responsiveness determined as capability to respond to and satisfy the customer s wishes. Others are assurance- employees knowledge, politeness and trustworthiness and empathy- willingness and capability to respond to individual customer desires for example making the bed with the sheets of a particular colour as requested by a customer. The SERVQUAL model aroused a fair share of attention to the subject some with differing findings. Carman, (1990); Babakus and Boller, (1992) concluded that the SERVQUAL scale is not universal because the dimensionality of service quality apparently depends on the type of service examined. Bruhn and Manfred (2006) the suggest that quality dimension reliability cannot be interpreted as a quality dimension because this attribute can concern several quality dimensions, for example in a bank, the employees or the teller machine can both be reliable a proposition we totally agree with. The criticisms notwithstanding, there has been variable support for the validity of the SERVQUAL model in the hotel service industry (Wilkins et al., 2007). Akan (1995) investigated the applicability of the SERVQUAL model in the Turkish hospitality industry and identified seven dimensions thus courtesy and competence of the personnel, communication and transactions, tangibles knowing and understanding the customer, accuracy and speed of service, solutions to problems, and accuracy of hotel reservations. Mei et al. (1999) examined the dimensions of service quality in the Australian hotel industry and developed a new scale of service quality in the hotel industry which they called HOLSERV. With these they identified three dimensions which are employees, tangibles and reliability. Saleh and Ryan (1991) conducted a study in the hospitality industry and reported five dimensions of service quality that differed from those in the SERVQUAL model seen as conviviality; tangibles; reassurance; avoid sarcasm; and empathy. A study by Knutson et al. (1990) identified five dimensions for evaluating service quality given as reliability; assurance; responsiveness; tangibles; and empathy. In relations to service quality in UK conference hotels Oberoi and Hales (1990) that service-quality perception was twodimensional- tangibles; and intangibles. 24

4 Getty and Thompson (1994) examined the validity of the SERVQUAL dimensions in the hotel sector and reported that only two of the dimensions tangibles and reliability were had the capability of being generalised. In the Turkish resort hotel setting, Ekinci et al. (1998) found a two-dimensional structure of service quality tangibles and intangibles inherent. In the study of Juwaheer (2004), nine factors emerged as dimensions of service quality in the Mauritian hospitality industry; four of these factors were similar to the dimensions of the SERVQUAL model, but some new dimensions also emerged namely room attraction and decor factors, hotel surroundings and environmental factors. Khan (2003) examined service quality expectations in the ecotourism industry and reported six dimensions of service quality in the form of tangibles, Eco tangibles, reliability; assurance; responsiveness; and empathy. Getty and Getty (2003) examined the dimensions of service quality in the hotel industry in USA and developed a new scale (called Lodging quality index ) with five service-quality dimensions: tangibility; reliability; responsiveness; confidence; and communication. Albacete-Saes et al. (2007) identified five dimensions of service quality in rural accommodation in the form of personal response, complementary offer; tourist relations; tangible elements; and empathy. Customer satisfaction In close connection with perceived service quality is customer satisfaction. Customer satisfaction is defined as the balancing of customer expectations against the perception of services delivered by the company (Oliver 1996). The difference between the two constructs is that service quality often refers to concrete quality attributes, like friendliness and assurance, whereas customer satisfaction often refers to the service of a provider as an entity (Bruhn and Grund, 2000). According to Cronin et al. (2000), satisfaction with a service provider is both an evaluative and an emotion-based response to a service encounter. This means that two sets of items can be used to measure satisfaction: an evaluative set of satisfaction measures also referred to as cognitive measures and an emotion-based set including such items as enjoyment, surprise, interest, and anger among others. For the purpose of this study, satisfaction is posited as having both a cognitive component and an affective component. The cognitive component (referred to as perceived service quality ) refers to a customer s evaluation of a series of service attributes that constitute a service performance. The emotional component (referred to as emotional satisfaction ) consists of such emotions as anger, contentment, happiness, pleasure, irritation, and disappointment. The concept of consumption emotion refers to the set of such emotional responses elicited specifically during consumption experiences (Westbrook and Oliver, 1991).Consumption emotions have been conceptualised as positive emotions and negative emotions (Laros and Steenkamp, 2005). Edvardsson (2005) concluded that knowledge about the drivers and the consequences of emotional reactions elicited during service experience facilitates better management of service quality. Liljander and Strandvik (1997) contended that consumption emotions represent only one of many variables that influence satisfaction in certain contexts such as hotel and restaurant services whereas emotions experienced by consumers account for the greater part of service evaluation in other contexts such as concert performances, sports spectacles, and cinema experiences. Dube -Rioux (1990) found that the affective reports of consumers were highly predictive of their satisfaction levels; indeed, these authors found that such affective reports were more predictive of satisfaction levels than were cognitive evaluations. Liljander and Strandvik (1997) contended that customer satisfaction includes both an emotional component and a cognitive component; as a consequence, these authors argued that satisfaction cannot be fully 25

5 understood without acknowledging the affective-emotional dimension. So derlund and Rosengren (2004) found that customer joy is positively associated with customer satisfaction. In terms of hotel service experience, Mattila and Enz (2002) reported that emotional factors (that is, hotel guests self-declared mood state measured immediately after the service encounter and their displayed emotions during the interaction) were significant predictors of their assessment of the service encounter and their overall evaluation of the hotel service provider. As a result of this review of the literature, the present study posits that emotions are influenced by the service quality. For example, such emotions as pleasure may be elicited by the physical décor of a hotel or frustration may elicited by poor service from a waiter. Relationship between perceived service quality and emotional satisfaction It is generally accepted that a positive relationship exists between perceived service quality and customer satisfaction (Bei and Chiao, 2001). For example, such a positive relationship was found by Cronin and Taylor (1992), who examined the impact of perceived service quality on consumer satisfaction in four service industries (banking, pest control, drycleaning, and fast food), and by Cronin et al. (2000), who investigated the relationship in six service industries. Similarly, Brady et al. (2005) studied service consumers in the USA, Australia, The Netherlands, Hong Kong, and Morocco, and concluded that service quality has a direct impact on satisfaction. Similar conclusion was reached by Bei and Chiao (2006), who found a significant link between service quality and satisfaction, in three service settings (petrol station, baking, and automobile repairs). Despite the consistency of these findings, it should be noted that most of the studies that have examined this relationship in services industries have focused on the cognitive component of satisfaction, with satisfaction being operationalised as an evaluative judgment. Relatively few studies have considered the affective-emotional component of satisfaction (So derlund and Rosengren, 2004; Wong, 2004) a gap this study intended to fit. Among the studies that have examined the relationship between perceived service quality and consumption emotions, Wong (2004) found that service quality in retail services was positively associated with emotional satisfaction. In a study of service encounters in a hotel, So derlund and Rosengren (2004) found that displays of emotion among service employees affected customers assessments of the joyfulness of service employees, and that this perceived joyfulness mediated the relationship between the service employees behaviour and customers own levels of joy. De Rojas and Camarero (2008) found that perceived service quality influenced the satisfaction of visitors to an interpretation centre. CONCEPTUAL FRAMEWORK Fig. 2 shows the conceptual schema applied in this study. According to this framework, Perceived service quality is positively related to emotional satisfaction. Emotional satisfaction was used in this study as the proxy variable for customer satisfaction. Specific variable measurement is provided as follows: Perceived service quality- In accordance with the views of Cronin and Taylor (1992) and Brady et al. (2005), the present study measured service quality with a performance measure rather than a gap measure). The measure selected was the Lodging Quality Index (LQI) developed by Getty and Getty (2003). LQI is composed of 26 items categorised into five dimensions: i. Tangibles (consisting of eight items, such as The front desk was visually appealing ); ii. Reliability (consisting of four items, such as My reservation was handled efficiently ); iii. Responsiveness (consisting of five items, such as employees responded promptly to my requests ); 26

6 iv. Confidence (consisting of five items, such as the hotel provided a safe environment ); and v. Communication (consisting of four items, such as charges on my account were clearly explained ). Emotional satisfaction- Emotional satisfaction was measured in terms of three emotions: happiness, pleasantness, and joy. The hypothesis which was tested by the study is: H 1 - emotional satisfaction is independent perceived service quality as stated earlier. Perceived service quality Emotional satisfaction H 1 Figure 2: Conceptual Framework METHODOLOGY Descriptive Survey design was adopted for the study. Cluster sampling was applied to select the hotels from which customers were derived. Hotels sampled were those located within towns and cities or their vicinity meaning that the study excluded hotels and lodges in the national parks and reserves. Mombasa and Malindi is being coastal towns have large populations of hotels and so is Nairobi being the administrative capital of Kenya meaning that hotels in this three localities represented at about 60% of the sample. Another criterion used to select the sample was the rate for bed and breakfast which was maintained at $50. This was so because higher rates than this attract mainly foreign guests or tourist. In total a sample of 22 hotels were chosen. In choosing the sample of guest the study purposive sampled guests who spent the weekend in the hotel. This criterion distinguished smoothly between guests who paid their stay with those who had been booked in because of other reasons such as conferences and workshops payments being made by third parties as rarely do these events occur during the weekend. The study self-administered questionnaires to 182 guests. 26 items were used to measure perceived service quality on using a seven-point Likert-type scale for their responses. Emotional satisfaction was measured in terms of three emotions: happiness, pleasantness, and joy. Respondents were asked to indicate their feelings on a seven-point Likert scale (1 not at all happy/pleasant/joyful and 7 very happy/pleasant/joyful. Reliability analysis for service quality dimensions Reliability checks were conducted on the multi-item measures used in this study. Cronbach s alpha coefficients for the five service-quality dimensions were computed with the as following results: Table 1: Reliability analysis for service quality dimensions Dimension Alpha co-efficient Tangibles Reliability Responsiveness Confidence Communication Cronbach s alpha coefficient for the measure of emotional satisfaction was All of these values indicated adequate reliability (Nunnally, 1978). RESULTS Characteristics of respondents Majority of customers visiting hotels according to the study were males being 68%. Persons with higher monthly incomes visited hotels more for instance those earning at least Ksh110, 27

7 000 accounted for 41% of the visits. Finally, table 2 shows that a cumulative percentage of 66% made single or double visits to hotels during the year. Table 2: Characteristics of respondents Characteristics Frequency Gender Male 124 (68)* Female 58 (32) Monthly income Below KSh 50, (7) , (21) , (32) Above 110, (41) Frequency of stay in hotels Once a year 41 (23) Twice a year 78 (43) Three times a year 30 (16) Four times a year 16 (9) Five times a year 10 (5) More than five times a year 7 (4) *figures in parenthesis are relative frequencies Descriptive statistics Means and standard deviation for all measures which consist of 26 items of LQI, and three items of emotional satisfaction are given in Table 3. All scales ranged from one to seven. The Means point to a varied level of service quality in respect to the various dimensions. Tangibility is rated highly with most items having a mean of greater than five. The item The hotel was bright and well lit has the highest mean of The means regarding to reliability spanned between to Employees were willing to answer my questions had a mean of 3.216, the lowest in responsiveness dimension. Confidence and communication dimensions of quality also scored low means especially the item Employees anticipated my needs at a mean of The results also show that respondents reported a greater number of satisfactory experiences than unsatisfactory experiences. Means for the three emotional satisfaction items were:4.561 ( not at all happy/happy ), ( not at all pleasant/pleasant ), and ( not at all joyful/joyful ). Table 3: Descriptive statistics Constructs Mean Std dev. Max Min Service quality (26 items) Tangibility The staff had clean, neat uniforms The restaurant s atmosphere was inviting The shops were pleasant and attractive The outdoor surroundings were visually attractive The hotel was bright and well light The hotel s interior and exterior were well maintained The hotel was clean Reliability My guestroom was ready as promised My reservations were handled efficiently TV, telephone A/C, lights, sockets,

8 Responsiveness Confidence Communicatio n Emotional satisfaction showers and sinks t worked properly I got what I paid for Employees responded promptly to my requests Informative literature about the hotel was provided Employees were willing to answer my questions Employees responded quickly to solve my problems Room service was prompt Employees knew about local places of interest Employees treated me with respect Employees were polite when answering my questions The hotel provided a safe environment The facilities were conveniently located Charges on my account were clearly explained I received undivided attention at the front desk Receptionist tried to find out my particular needs Employees anticipated my needs Not at all happy/happy Not at all pleasant/pleasant Not at all joyful/joyful Path analysis and hypothesis testing Path analysis was conducted to determine the relationship between service quality dimensions and perceived quality as well as emotional satisfaction. Path analysis allows for the testing of a model and both direct and indirect effects on outcome. Path coefficient which is a fraction of the standard deviation of the dependent variable for which the designated factor is directly responsible was determined. The co-efficient was then tested for significance using a student s test. The parameter estimates and their associated t-values tested using α= The path analysis illustrated in figure 2 shows that from service quality to tangibles, the coefficient was 0.952, with a p-value of From service quality to reliability, the coefficient was 0.533, with a p-value of From service quality to responsiveness, the coefficient was 0.652, with a p-value of Further, from service quality to confidence, the coefficient was 0.780, with a p-value of and from service quality to communication, the coefficient was 0.635, with a p-value of In all of the above instances the coefficient depicts a strong relationship between service quality perceptions and the various dimensions. The p values in the said paths is also greater than the alpha of 0.05 which means that the dimensions are significant and support perceived service quality. The path leading from service quality to emotional satisfaction had a coefficient of 0.701, with a p-value of The path was significant; we therefore reject the null hypothesis and conclude that emotional satisfaction is dependent on service quality which supports H1. 29

9 Tangibles (1.045)* Reliability (2.412) Responsiveness Confidence (5.231) (2.622) Perceived Service Quality (3.621) Emotional Satisfaction Communication (2.114) *p value is given in parenthesis. Figure 3: Path Analysis and Hypothesis Testing DISCUSSION The main objective of this study was to determine the guest actual experience and evaluation from the stay hence assess how the hotel performed against perceived quality and the effect on guest satisfaction. This relationship was tested on the hypothesis that emotional satisfaction is dependent on service quality. In which case this hypothesised relationships were supported by the results of the study. These results also support and clarify the findings of previous studies. Brady et al. (2005) reported that service quality has both direct and indirect influences on through satisfaction. Similar findings are available from Bei and Chiao (2006). This study has revealed moderate influences of quality dimensions such as reliability, responsiveness and communication as given in their path coefficients on service quality. Similarly the mean of some items such as Employees anticipated my needs is quite low. It is also interesting to note that the said quality dimensions relate to employee performance and their service delivery. This is also to say that tangibility stand out strong among the service quality dimensions. This study provides empirical evidence that emotional satisfaction plays an important role in service experiences. The study concludes that emotional satisfaction was derived from service-quality evaluation and agrees with Bagozzi s (1992) conclusion that cognitive evaluations precede emotional responses. In light of the above conclusions the study recommends that service delivery capacity of employees be improved in the said hotels so that for example the customer can feel that their needs are anticipated, better communication is achieved, employees become more responsive as well as reliable. The management of these hotels may also pursue other motivating strategies to improve service quality. Further studies may be carried to determine whether emotional satisfaction is capable of eliciting behavioural expectations from customers such as loyalty, repeat visits, and referrals. Similar studies that interrogate service quality influences on emotional satisfaction in on foreign guests are also encouraged. References [1]. Republic of Kenya (2012). Annual Economic Survey Nairobi: Government Press. [2]. Gerosa (2003) Pro-poor Growth Strategies in Africa. Tourism: A Viable Option for Pro-poor Growth in Africa? Kampala: Economic Commission for Africa & Economic Policy Research Center. 30

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