The influence of service quality on customer satisfaction, customer value and behavioral intentions in the hotel sector of Ethiopia

Abstract

The basic purpose of this study was to examine the influence of service quality on customer satisfaction, perceived customer value and behavioral intentions, in three, four and five star hotels in Ethiopia. Additionally, an attempt was made to assess the differences pertaining to these constructs across customer profile (e.g., gender, nationality etc.) and hotel characteristics (e.g., star ratings etc.). A quantitative survey approach was used to obtain primary data from the respondents (hotels’ guests/customers) by administering the structured questionnaire. The original SERVPERF dimensions and related items were modified to best fit with hotel sector, by using desk review and preliminary interviews with manager, consultants and corporate clients of the hotels. A pilot study was carried out with 35 hotel customers to test the initial reliability and validity of the instrument. The final questionnaire was distributed to 440 respondents from 44 hotels (under three, four and five star categories), by using stratified (proportionate) random sampling. Of the distributed questionnaires, 435 were collected back (over 98% return rate), as completely filled, and used for the purpose of analysis. Descriptive statistics (mean score and standard deviation) were used to examine the customers’ perceptions of service quality, customer value, satisfaction and behavioral intentions. To identify the key service quality dimensions in the Ethiopian hotel sector, Principal Component Analysis (PCA) was employed. The results revealed six underlying factors, namely: Assurance, Reliability, Responsiveness, Empathy, Room Tangibles and Food & Beverage Tangibles. Regression analysis was carried out to examine the relationship between the study constructs, whereby perceived service quality was found to be maintaining significantly (p<0.05) positive influence on customer value, satisfaction and behavioral intentions (measured as customer revisits and word-of-mouth recommendations) in the Ethiopian hotel sector. Moreover, both customer value and satisfaction were observed to be partially mediating the influence of service quality on behavioral intentions, with higher contribution from satisfaction than perceived value. Finally, the respondents’ nationality, gender, visit purpose, length of stay, hotel location and star category were found to be determining their perceptions of overall service quality. However, further research is needed before generalizing these relationships to other sectors/contexts.