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

2019 ◽  
Vol 11 (2) ◽  
pp. 187-203 ◽  
Author(s):  
Boon Liat Cheng ◽  
Chin Chuan Gan ◽  
Brian C. Imrie ◽  
Shaheen Mansori
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Recovery ◽  
Hotel Industry ◽  
Tourism Industry ◽  
Business Strategies ◽  
Content Type ◽  
Constant Rate ◽  
The Impact

Purpose 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/approach A 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. Findings The findings revealed that service recovery dimensions are significantly related to customer satisfaction and have a positive relationship between customer satisfaction and customer loyalty. Practical implications As 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/value The 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.

scholarly journals THE IMPACT OF CUSTOMER SATISFACTION, CUSTOMER EXPERIENCE AND CUSTOMER LOYALTY ON BRAND POWER: EMPIRICAL EVIDENCE FROM HOTEL INDUSTRY

2018 ◽  
Vol 19 (2) ◽  
pp. 417-430
Author(s):  
Hossein Bodaghi Khajeh Nobar ◽  
Reza Rostamzadeh
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Strong Predictor ◽  
Hotel Industry ◽  
Tourism Industry ◽  
Influential Factor ◽  
Equation Modeling ◽  
Path Coefficient ◽  
The Impact

This research aims to investigate the impact of customer satisfaction, experience, and loyalty on brand power in the Hotel industry. This study used a descriptive-survey research design based on the correlation method. The selected populations were Pars Hotels’ customers. Sample size was 384, based on Krejcie and Morgan’s sampling table. The structural equation modeling was used to evaluate the causal simulation and to examine the reliability and validity of the measuring model. The research results showed that customer expectation has the most impact on customer satisfaction with path coefficient of 0.74. On the other hand, customer loyalty, with path coefficient of 0.65, is known as an influential factor. This study helps to understand that customer satisfaction and customer expectations are positive drivers of customer loyalty. Customer loyalty also is a strong predictor of brand power in hoteling and tourism industry. By strengthening that part, which you have better resources, you can have a better supply and thus, there would be more opportunities in establishing reputation and increasing visibility.

“Actions speak louder than words”: an impact of service recovery antecedents on customer delight in quick-service restaurants

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Durgesh Agnihotri ◽  
Kushagra Kulshreshtha ◽  
Vikas Tripathi ◽  
Pallavi Chaturvedi
Keyword(s):  
Social Media ◽  
Customer Satisfaction ◽  
Structural Equation ◽  
Service Recovery ◽  
Equation Modeling ◽  
Role Clarity ◽  
Content Type ◽  
Customer Delight ◽  
Quick Service ◽  
The Impact

PurposeThe purpose of this study is to conceptualize and analyze a framework that provides greater understanding toward the impact of service recovery antecedents such as role clarity, customer service orientation, employee empowerment and employee relational behavior on customer satisfaction and customer delight in the context of quick-service restaurants (QSRs).Design/methodology/approachA self-administered questionnaire was distributed to 408 participants who had experienced service recovery efforts by leading QSRs on social media. The current paper draws upon the prevailing literature to test a series of research hypotheses through structural equation modeling.FindingsThe findings of the study have confirmed that antecedents of service recovery are good to describe customer satisfaction and customer delight in the setting of QSRs. Besides, the study provides an understanding on how monetary compensation moderates the relationship between customer delight and customer satisfaction.Practical implicationsThis study carries an understanding on how frontline employees must operate in a non-conventional and innovative way to resolve customers' issues and show commitment with truthfulness to provide excellent services to make customers feel delightful.Originality/valueThis is a unique study to understand the role of service recovery antecedents to describe customer satisfaction and customer delight in the social media environment. In addition, the results support the possibilities of implementing prompt service recovery efforts using social media.

scholarly journals Relational bonding strategies, customer satisfaction, and loyalty in the container shipping market

2019 ◽  
Vol 49 (8) ◽  
pp. 816-838 ◽  
Author(s):  
Gökcay Balci ◽  
Aylin Caliskan ◽  
Kum Fai Yuen
Keyword(s):  
Customer Satisfaction ◽  
Social Exchange ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Customer Relationships ◽  
Container Shipping ◽  
Content Type ◽  
Relational Marketing ◽  
The Impact ◽  
Customer Satisfaction And Loyalty

Purpose In recent years, the business of container lines has faced severe challenges such as overcapacity and low profitability. To survive in such a competitive market, container lines need to maintain long-term customer relationships by enhancing the satisfaction and loyalty of customers. The purpose of this paper is to adopt a social exchange theory (SET) approach and investigate the impact of relational bonding strategies on the satisfaction and loyalty of customers in container shipping. Design/methodology/approach Drawing on SET, a theoretical model that specifies the relationships between relational bonding strategies, customer satisfaction and loyalty was proposed. Survey data were collected from 175 freight forwarders. The obtained data were analyzed using structural equation modelling. Findings The results indicate that financial bonding strategies have the most significant direct effects on customer satisfaction, while social bonding strategies have the strongest direct impact on customer loyalty. Financial bonding strategies, on the other hand, have the strongest total effects on customer loyalty. Intermodal and basic operations are found to have the equal total effects on customer loyalty. Research limitations/implications By identifying the most effective relational bonding strategies for enhancing customer satisfaction and loyalty, this study’s findings allow container lines to better allocate their resources and implement effective relational marketing policies to satisfy and retain their customers. Originality/value This research analyses and validates the determinants of customer satisfaction and loyalty from a relational lens and empirically contributes to the field of relational marketing in the container shipping industry.

Hospitality-based service recovery, outcome favourability, satisfaction with service recovery and consequent customer loyalty: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ghazal Shams ◽  
Raouf Rather ◽  
Mohsin Abdur Rehman ◽  
Rab Nawaz Lodhi
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Service Failure ◽  
Service Recovery ◽  
Sampling Technique ◽  
Study Data ◽  
Behavioural Intention ◽  
Content Type ◽  
Hotel Managers ◽  
The Impact

Purpose In recent studies, tourism scholars focussed more on service failure and recovery. Thus satisfaction with service recovery (SSR) and outcome favourability in conjunction with service recovery (SR) and customers’ behavioural intention was given very little attention, while they are very attention-grabbing, particularly in marketing areas of hospitality and tourism studies. Using stealing thunder and co-creation-based strategies, this study aims to investigate the impact of SR on outcome favourability, and its association with SSR and customer loyalty. Design/methodology/approach To attain the objectives of the current study, data were collected through field survey by applying a random sampling technique from 346 regular customers four- and five-star hotels in the context of Iran. The structural equation modelling technique was applied for testing the measurement and relationship models of the study. Findings The findings of this research reveal a positive relationship between SR and outcome favourability. The findings also indicate that outcome favourability positively affects SSR and loyalty. Finally, SSR exerts a favourable and significant impact on customer loyalty. Research limitations/implications The study findings may have restricted applicability in different contexts other than four- and five-star hotels. Theoretically, the current research contributes insight into the dynamics of characterizing SR, outcome favourability, SSR and behavioural intention-based theoretical associations, as observed in the hospitality industry. Originality/value This study adopted an un-explored SR, outcome favourability and SSR theoretical perspectives to identify the strength and nature of relationships between them and discuss their important implications for academicians and hotel managers.

Exploring customer loyalty following service recovery: a replication study in the Ghanaian hotel industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Oppong Appiagyei Ampong ◽  
Aidatu Abubakari ◽  
Majeed Mohammed ◽  
Esther Theresa Appaw-Agbola ◽  
John Agyekum Addae ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Industry ◽  
Service Recovery ◽  
Interactional Justice ◽  
Recovery Process ◽  
Equation Modeling ◽  
Content Type ◽  
Perceived Justice

PurposeThe study sought to assess the nexus between components of perceived justice and satisfaction, trust and loyalty with service recovery.Design/methodology/approachSurvey data were gathered from a sample of 300 clients from 8 midscale hotels in Ghana. Partial least squares structural equation modeling was used to test the hypothesized relationships.FindingsPerceived distributive justice has no effect on customer satisfaction with service recovery. Interactional justice had the greatest effect on customer satisfaction with service recovery. No significant relationship was found between procedural justice and trust. Also, trust had a significant effect on loyalty post-service recovery.Research limitations/implicationsEmpirical data were taken from one service industry; thus, it is reflective of only that service industry, generalizations should be mindful of our context bounded results.Practical implicationsThe study offers suggestions for managers to leverage the dimensions of perceived justice in order to build trust and loyalty post-service failure. Hotels should treat customers with fairness and respect at every point of contact during the service recovery process. Reward based compensation should be offered to customers to build trust.Originality/valueThe study is among a few to assess service recovery and its link with loyalty from a developing economy context. The study revealed that perceptions of justice with service recovery influences customer loyalty and satisfaction post-service recovery and extend the understanding of service recovery in the Ghanaian hotel sector.

Customer loyalty in the fast food restaurants of Bangladesh

2019 ◽  
Vol 121 (11) ◽  
pp. 2791-2808 ◽  
Author(s):  
Mohammed Belal Uddin
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Fast Food ◽  
Structural Equation ◽  
Principal Component ◽  
Business Strategies ◽  
Equation Modeling ◽  
Content Type ◽  
Loyal Customer ◽  
Fast Food Restaurants

Purpose The purpose of this paper is to investigate the factors influencing the satisfaction of customer and customer loyalty in the fast food restaurant industry. A theoretical model, including hypotheses, has been proposed in this study. Design/methodology/approach Data were assembled using convenient sampling method. The hypothesized model was verified with the data from 204 respondents. Principal component analysis and structural equation modeling approach were applied to analyze data. Findings The results (significant at p<0.01 and p<0.05) exhibited that food quality, price and service quality were positively linked to customer satisfaction. Customer satisfaction was positively associated with customer loyalty. The empirical results found a contrary association between the location and environment of restaurant and customer satisfaction. Practical implications The managers and owners of fast food restaurants may use the results of this study to confirm customer satisfaction and loyalty of the customer. With loyal customer groups, their businesses can be sustained and gradually grown up. Originality/value This study will provide guidelines for the management of fast food restaurants to formulate their business strategies in the competitive market. It will give a signal to the managers to stay focused on customer relationship management as the ultimate goal of the business.

Does religiosity matter for customer loyalty? Evidence from halal cosmetics

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dwi Suhartanto ◽  
David Dean ◽  
Ira Siti Sarah ◽  
Raditha Hapsari ◽  
Fatya Alty Amalia ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Product Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Emotional Attachment ◽  
Cosmetic Products ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to assess customer loyalty towards halal cosmetics using three integrated loyalty routes of product quality, emotional attachment and religious determinants. Design/methodology/approach The data for this study were gathered from 457 s cosmetics customers. Variance-based structural equation modelling was applied to assess the association between product quality, emotional attachment, religiosity, customer satisfaction and customer loyalty. Findings This study reveals that for halal cosmetics, customer loyalty is driven more by emotional attachment and product quality than by religiosity. Further, the religiosity does not moderate the relationship between customer satisfaction and customer loyalty. Finally, this study reveals that the impact of emotional attachment and product quality on customer loyalty is partly through strengthening customer satisfaction. Practical implications This study provides an opportunity for halal cosmetics managers to increase customer loyalty through the development of emotional attachment and product quality. To develop customer loyalty towards their halal cosmetic products, this study suggests that halal cosmetics managers should offer high-quality products and continuously innovate their cosmetic products. Originality/value This is an early empirical study attempting to examine the link between religiosity and customer loyalty in halal cosmetic products.

scholarly journals Freight Forwarding Company: The Effect of Service Failure, Recovery, Satisfaction, and Customer Loyalty

2021 ◽  
Vol 14 (2) ◽  
pp. 179
Author(s):  
Adi Yudi ◽  
Endang Ruswanti
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Quantitative Methods ◽  
Service Failure ◽  
Service Recovery ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Equation Modeling ◽  
The Impact

This study will examine the relationship between the impact of service failure and service recovery on customer satisfaction and loyalty. The research objective was to determine the effect of service failure can be up to customer loyalty. The object of this research is customers who use expedition services located in Jakarta. This research method uses quantitative methods using a questionnaire measuring instrument. The sampling technique used is simple random sampling. To analyze the data using SEM (Structural Equation Modeling) analysis tools with Lisrel. The results of this study conclude that, first, service failure affects service recovery. Secondly, service recovery affects customer loyalty. Third, service recovery affects customer satisfaction, and the last fourth of customer satisfaction also affects customer loyalty.

scholarly journals The influence of CSR on perceived value, social media and loyalty in the hotel industry

2019 ◽  
Vol 23 (3) ◽  
pp. 373-396 ◽  
Author(s):  
Abdulalem Mohammed ◽  
Abdullah Al-Swidi
Keyword(s):  
Social Media ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Hotel Industry ◽  
Perceived Value ◽  
Validity And Reliability ◽  
Content Type ◽  
Customer Perceived Value ◽  
Social Media Engagement ◽  
The Impact

Purpose This study aims to examine how perceptions of corporate social responsibility (CSR) activities (i.e. environment, society and stakeholders) enhance perceived value, social media engagement to win customer loyalty in the hotel industry. In addition, it investigates the mediating effects of customer perceived value and social media engagement between CSR activities and customer loyalty. Design/methodology/approach A self-administered survey was conducted on customers in Malaysia. Based on the data collected from 389 customers, the analysis used the structural equation modelling (SEM) approach. The validity and reliability of the measurements were confirmed before the hypotheses of the study have been tested. Findings The results revealed that CSR related to the environment has significant direct and indirect impacts on customer loyalty. In addition, the effect of perceived value and social media engagement on customer loyalty has been supported. The results also demonstrated the mediating role of perceived value and social media engagement between CSR activities and customer loyalty. Research limitations/implications This study advances the understanding of the impact of CSR activities, perceived value and social media engagement on customer loyalty in the hotel industry. Hoteliers can gain benefits by understanding how specific CSR activities can enhance customer perceived value and social media engagement value, thus leads to customer loyalty. Originality/value This study investigates the association between CSR activities, perceived value, social media engagement and customer loyalty, which has been lacking a full investigation in the hospitality literature.

scholarly journals Harmonization of Green Motives and Green Business Strategies towards Sustainable Development of Hospitality and Tourism Industry: Green Environmental Policies

2021 ◽  
Vol 13 (12) ◽  
pp. 6592
Author(s):  
Zahid Yousaf ◽  
Magdalena Radulescu ◽  
Crenguta Ileana Sinisi ◽  
Luminita Serbanescu ◽  
Loredana Maria Paunescu
Keyword(s):  
Sustainable Development ◽  
Structural Equation ◽  
Hotel Industry ◽  
Equation Model ◽  
Tourism Industry ◽  
Business Strategies ◽  
Mediating Role ◽  
Green Business ◽  
Hospitality And Tourism Industry

This study aims to investigate the direct impact of green motives (GM) and green business strategies (GBS) on sustainable development (SD) in the hospitality sector. It explores the direct links between GM and SD. Moreover, the mediating role of GBS between GM and SD was tested. The research relies on the stakeholders’ theory, which states that the organization’s success and future development depends on the satisfaction of stakeholders. Data were collected from 451 top managers and owners from 54 hotels (5, 4 and 3-star hotels) operating in Pakistan. Quantitative analysis including correlation, regression, confirmatory factor analysis and structural equation model techniques were used. The mediating role of GBS was assessed using the bootstrapping method. Results proved that GM and GBS enable hotel industry to achieve the targets of SD. Finding also proved that GBS act as a mediator between the GM and SD link. The hotel industry needs attention to achieve the targets of SD and customers’ inclination towards more hygienic and environmental issues after the worldwide COVID-19 pandemic situation has forced the hotel industry to adapt GBS initiated through GM. The current research articulated this upcoming issue and offered a SD model for the hotel industry.

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