Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Service recovery, customer satisfaction and customer loyalty: evidence from Malaysia’s hotel industry

Service recovery, customer satisfaction and customer loyalty: evidence from Malaysia’s hotel... The purpose of this study is to investigate the impact of service recovery dimensions on customer satisfaction and, subsequently, on customer loyalty in the context of the hotel industry.Design/methodology/approachA self-administered questionnaire was distributed to 500 respondents who had the experiences of staying in the hotels in Malaysia. The structural equation modelling technique was used to study the relationship between the model and the developed hypotheses.FindingsThe findings revealed that service recovery dimensions are significantly related to customer satisfaction and have a positive relationship between customer satisfaction and customer loyalty.Practical implicationsAs the main sector in the hospitality business, hotels play a vital role in the tourism industry. Therefore, the developments in tourism and hotels go hand in hand, as they are mutually dependent on each other. With significant yearly developments in the tourism industry and at a constant rate, hotel operators should reconsider their business strategies to achieve customer loyalty and sustain their businesses. In view of that, the findings of this study not only benchmarks better hotel services but also provides an improved understanding of service recovery that will effectively aid hotel operators in handling service failures; otherwise, customer dissatisfaction may occur if poor service recovery strategies are implemented.Originality/valueThe intense competition in the service industry has driven companies to place extra attention on service recovery so as to ensure continuous success. With a yearly significant development in the tourism industry at a constant rate, hotel providers (one of the major beneficiaries) are driven to reconsider their business strategies to achieve customer loyalty and sustain their business. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Quality and Service Sciences Emerald Publishing

Service recovery, customer satisfaction and customer loyalty: evidence from Malaysia’s hotel industry

Download PDF
17 pages

Loading next page...
 
/lp/emerald-publishing/service-recovery-customer-satisfaction-and-customer-loyalty-evidence-NjDz7AhC9a
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1756-669X
DOI
10.1108/ijqss-09-2017-0081
Publisher site
See Article on Publisher Site

Abstract

The purpose of this study is to investigate the impact of service recovery dimensions on customer satisfaction and, subsequently, on customer loyalty in the context of the hotel industry.Design/methodology/approachA self-administered questionnaire was distributed to 500 respondents who had the experiences of staying in the hotels in Malaysia. The structural equation modelling technique was used to study the relationship between the model and the developed hypotheses.FindingsThe findings revealed that service recovery dimensions are significantly related to customer satisfaction and have a positive relationship between customer satisfaction and customer loyalty.Practical implicationsAs the main sector in the hospitality business, hotels play a vital role in the tourism industry. Therefore, the developments in tourism and hotels go hand in hand, as they are mutually dependent on each other. With significant yearly developments in the tourism industry and at a constant rate, hotel operators should reconsider their business strategies to achieve customer loyalty and sustain their businesses. In view of that, the findings of this study not only benchmarks better hotel services but also provides an improved understanding of service recovery that will effectively aid hotel operators in handling service failures; otherwise, customer dissatisfaction may occur if poor service recovery strategies are implemented.Originality/valueThe intense competition in the service industry has driven companies to place extra attention on service recovery so as to ensure continuous success. With a yearly significant development in the tourism industry at a constant rate, hotel providers (one of the major beneficiaries) are driven to reconsider their business strategies to achieve customer loyalty and sustain their business.

Journal

International Journal of Quality and Service Sciences – Emerald Publishing

Published: Jun 11, 2019

Keywords: Customer loyalty

References

  • Customer satisfaction and shareholder value
    Anderson, E.W.; Fornell, C.; Mazvancheryl, S.K.
  • The relationship between consumer complaining behavior and service recovery: an integrative review
    Baloglu, S.; Erdem, M.; Brewer, P.; Mayer, K.; Gyung Kim, M.; Wang, C.; Mattila, A.S.
  • Sustainable hotel practices and nationality: the impact on guest satisfaction and guest intention to return
    Berezan, O.; Raab, C.; Yoo, M.; Love, C.
  • The service encounter: diagnosing favorable and unfavorable incidents
    Bitner, M.J.; Booms, B.H.; Tetreault, M.S.
  • Betrayal? Relationship quality implications in service recovery
    Bugg Holloway, B.; Wang, S.; Beatty, S.E.
  • Factor that influences consumers’ Brand loyalty towards cosmetic products
    Chan, Y.Y.; Mansori, S.
  • How emotions mediate the effects of perceived justice on loyalty in service recovery situations: an empirical study
    Chebat, J.-C.; Slusarczyk, W.
  • A study on the relationship between the brand image and customer satisfaction in the catering businesses
    Chien-Hsiung, L.
  • The effects of perceived service recovery justice on customer affection, loyalty, and word-of-mouth
    Choi, B.; Choi, B.-J.
  • Fair service
    Clemmer, E.C.; Schneider, B.
  • Satisfaction with service recovery: perceived justice and emotional responses
    del Río-Lanza, A.B.; Vázquez-Casielles, R.; Díaz-Martín, A.M.
  • A consumer complaint framework with resulting strategies: an application to higher education
    Dolinsky, A.L.
  • Structural equation models with unobservable variables and measurement error: algebra and statistics
    Fornell, C.; Larcker, D.F.
  • The American customer satisfaction index: nature, purpose, and findings
    Fornell, C.; Johnson, M.D.; Anderson, E.W.; Cha, J.; Bryant, B.E.
  • The impact of relationship satisfaction on attributions, emotions, and behaviors following service failure
    Forrester, W.R.; Maute, M.F.
  • Defining consumer satisfaction
    Giese, J.L.; Cote, J.A.
  • An examination of the antecedents and moderator influences of climate strength
    González-Romá, V.; Peiró, J.M.; Tordera, N.
  • Antecedents to perceived service quality: an exploratory study in the banking industry
    Gounaris, S.P.; Stathakopoulos, V.; Athanassopoulos, A.D.
  • Perceived justice in service recovery and behavioral intentions: the role of relationship quality
    Ha, J.; Jang, S.S.
  • On structural equation modelling for customer satisfaction measurement
    Hackl, P.; Westlund, A.H.
  • The profitable art of service recovery
    Hart, C.W.; Heskett, J.L.; Sasser Jr, W.E.
  • Co-creating service recovery after service failure: the role of brand equity
    Hazée, S.; Van Vaerenbergh, Y.; Armirotto, V.
  • Perceived justice needs and recovery evaluation: a contingency approach
    Hoffman, K.D.; Kelley, S.W.
  • Tourists’ satisfaction, recommendation and revisiting Singapore
    Hui, T.K.; Wan, D.; Ho, A.
  • Contact management and customer loyalty
    Jones, H.; Farquhar, J.D.
  • Customer loyalty in the hotel industry: the role of customer satisfaction and image
    Kandampully, J.; Suhartanto, D.
  • The effects of perceived justice on recovery satisfaction, trust, word-of-mouth, and revisit intention in upscale hotels
    Kim, T.T.; Kim, W.G.; Kim, H.-B.
  • Remedy or cure for service failure? Effects of service recovery on customer satisfaction and loyalty
    Komunda, M.; Osarenkhoe, A.
  • How service quality affects customer loyalty in the travel agency: the effects of customer satisfaction, service recovery, and perceived value
    Kuo, N.-T.; Chang, K.-C.; Cheng, Y.-S.; Lai, C.-H.
  • Satisfaction and post-purchase intentions with service recovery of online shopping websites: Perspectives on perceived justice and emotions
    Kuo, Y.-F.; Wu, C.-M.
  • The associations between service quality, corporate image, customer satisfaction, and loyalty: evidence from the Malaysian hotel industry
    Liat, C.B.; Mansori, S.; Huei, C.T.
  • Consumer responses to online retailer’s service recovery after a service failure: a perspective of justice theory
    Lin, H.-H.; Wang, Y.-S.; Chang, L.-K.
  • Perceived justice and consumption experience evaluations: a qualitative and experimental investigation
    Llosa, S.; Orsingher, C.; Aurier, P.; Siadou-Martin, B.
  • Service recovery, satisfaction and customers’ post service behavior in the malaysian banking sector
    Mansori, S.; Tyng, G.G.; Ismail, Z.M.M.
  • Service quality, satisfaction and student loyalty in Malaysian private education
    Mansori, S.; Vaz, A.
  • Justice perceptions as predictors of customer satisfaction: the impact of distributive, procedural, and interactional Justice1
    Martínez-Tur, V.; Peiró, J.M.; Ramos, J.; Moliner, C.
  • Service recovery and fairness perceptions in collectivist and individualist contexts
    Mattila, A.S.; Patterson, P.G.
  • Modeling customer perceptions of complaint handling over time: the effects of perceived justice on satisfaction and intent
    Maxham, J.G.; Netemeyer, R.G.
  • Application of fairness theory to service failures and service recovery
    McColl-Kennedy, J.R.; Sparks, B.A.
  • Online customer reviews of hotels as participation increases, better evaluation is obtained
    Melián-González, S.; Bulchand-Gidumal, J.; López-Valcárcel, B.G.
  • Service recovery: a framework and empirical investigation
    Miller, J.L.; Craighead, C.W.; Karwan, K.R.
  • Customer satisfaction modeling in hotel industry: a case study of Kish Island in Iran
    Mohajerani, P.; Miremadi, A.
  • The commitment-trust theory of relationship marketing
    Morgan, R.M.; Hunt, S.D.
  • There is no ‘I’in recovery: Managements’ perspective of service recovery
    Murphy, K.; Bilgihan, A.; Kubickova, M.; Boseo, M.
  • Whence consumer loyalty?
    Oliver, R.L.
  • The link between organizational learning culture and customer satisfaction: confirming relationship and exploring moderating effect
    Pantouvakis, A.; Bouranta, N.
  • The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting
    Ranaweera, C.; Prabhu, J.
  • The loyalty effect-the relationship between loyalty and profits
    Reichheld, F.F.; Markey, R.G.; Hopton, C.
  • The relationships among overall quick-casual restaurant image, perceived value, customer satisfaction, and behavioral intentions
    Ryu, K.; Han, H.; Kim, T.-H.
  • Customer evaluations of tour operators’ responses to their complaints
    Schoefer, K.; Ennew, C.
  • What factors influence online Brand trust: evidence from online tickets buyers in Malaysia
    Shah Alam, S.; Mohd Yasin, N.
  • The roles of justice and customer satisfaction in customer retention: a lesson from service recovery
    Siu, N.Y.-M.; Zhang, T.J.-F.; Yau, C.-Y.J.
  • Are your satisfied customers loyal?
    Skogland, I.; Siguaw, J.A.
  • Justice strategy options for increased customer satisfaction in a services recovery setting
    Sparks, B.A.; McColl-Kennedy, J.R.
  • Transaction cost economics and the roles of national culture: a test of hypotheses based on Inglehart and Hofstede
    Steenkamp, J.-B.E.; Geyskens, I.
  • Customer evaluations of service complaint experiences: implications for relationship marketing
    Tax, S.S.; Brown, S.W.; Chandrashekaran, M.
  • Models of consumer satisfaction formation: an extension
    Tse, D.K.; Wilton, P.C.
  • Examine the cognitive and affective antecedents to service recovery satisfaction: a field study of delayed airline passengers
    Wen, B.; Geng-qing Chi, C.