The Role of Customer Satisfaction

The Role of Customer Satisfaction
and Image in Gaining Customer Loyalty

in the Hotel Industry
Jay Kandampully
Dwi Suhartanto
ABSTRACT. Customer loyalty has become a topical issue in research and

practice due to its proven dominance in a hotel organization’s success. The
present research adds to the body of knowledge in services marketing in the
hospitality industry by improving understanding of the relationships
among customer loyalty, customer satisfaction, and image. This research
identifies the factors of image and customer satisfaction that are positively
related to customer loyalty in hotels. Research findings from the data col-
lected from chain hotels indicate that hotel image and customer satisfaction
with the performance of housekeeping, reception, food and beverage, and
price are positively correlated to customer loyalty. Performance of house-
keeping, however, was found to be one of the most important considerations
for customers of hotel chains. [Article copies available for a fee from The
Haworth Document Delivery Service: 1-800- HAWORTH. E-mail address:
<getinfo@haworthpressinc.com> Website: <http:// www.HaworthPress.com> ©
2003 by The Haworth Press, Inc. All rights reserved.]
KEYWORDS. Customer satisfaction, customer loyalty, image, service

marketing, service quality
Jay Kandampully is Professor, Hospitality Management Program, Campbell Hall, The

Ohio State University, Columbus, OH 43210-1295.
Dwi Suhartanto is Director of The Indonesian Post Polytech, Administrasi Niaga,
Politeknik Negeri Bandung, Jl. Gegerkalong Hilir, Ciwaruga, Bandung, Indonesia.
Journal of Hospitality & Leisure Marketing, Vol. 10(1/2) 2003
http://www.haworthpressinc.com/store/product.asp?sku=J150
Ó 2003 by The Haworth Press, Inc. All rights reserved. 3
4 JOURNAL OF HOSPITALITY & LEISURE MARKETING
INTRODUCTION
Hospitality and tourism have evolved into truly global industries in

which both consumers and producers are dispersed worldwide. Due to
changes in lifestyle (including changes in work patterns, travel needs, eat-
ing habits, and the development of a cosmopolitan community), the ser-
vices offered by hospitality businesses are now considered to be
necessities, rather than luxuries. Consequently, during the past decade,
there has been an exponential growth in hospitality businesses to meet the
demands of the growing market. This has provided consumers with a great
variety of choices while simultaneously augmenting competition in the
marketplace. Consequently, hospitality organizations today are faced
with intense competition, and the associated challenge of steady growth in
a competitive environment. Moreover, it has become increasingly diffi-
cult for firms to assume that there exists an unlimited customer base pre-
pared to maintain patronage. Hence, in the scheme of business, it has
become apparent that the ultimate goal of any organization in a hy-
per-competitive market, is to maintain a loyal customer base.
It is essential for any hospitality organization to seek opportunities to
gain a competitive advantage by adopting various strategies. However, re-
searchers and practitioners agree that developing customer loyalty has
proved to be the most favored strategy, as price can have negative impact
on the firm’s medium-term and long-term profitability (Ernst &Young,
1996), consequently affecting the firm’s image. It is thus imperative that
hospitality firms develop proactive strategies to gain customer loyalty, as
opposed to relying on pricing strategies to attract new customers. Al-
though price continues to play a role in maintaining loyalty, competitive
pricing alone does not create long-term customer loyalty (Schultz &
Bailey, 2000; Scott, 2001). Moreover, from a customer’s point of view, the
costs involved in finding a new service provider have a significant positive
influence on customer loyalty (Lee & Cunningham, 2001).
Researchers have shown that it costs five times more to attract a new
customer than to keep an existing one (Holmund & Kock, 1996:289). Re-
search conducted by Reichheld and Sasser (1990) indicated that a 5 per
cent increase in customer loyalty can produce a profit increase of 25-85
per cent. They argued that the profitability of an individual customer
grows permanently with the duration of the business-relationship. They
also found that up to 60 per cent of increased sales to new customers could
be attributed to customer recommendations–an indicator of customer loy-
alty. Further, a study conducted by Heskett et al. (1994) showed that, in
some companies, loyal customers not only provide the profits but also
Jay Kandampully and Dwi Suhartanto 5
cover the losses incurred in dealing with less loyal customers. Gronroos
(2000:131) indicated that, in most businesses, loyal customers are willing
to pay a premium price; loyal customers make cost savings by using the
service of a service provider they know well. The long-term benefits of the
customer-supplier relationship are significant to any firm. According to
Gummesson (1999:183) “return on relationship” reflects directly on the
firm’s long-term financial outcome.
The above arguments clearly illustrate the importance of customer loy-
alty for an organization. Customer-supplier relationship, and the resulting
loyalty of the customer, can be assumed to be necessary prerequisites for
any firm to prosper in the competitive market. It is commonly believed
that by satisfying customers, firms can improve their profits. Management
thinker Peter Drucker (1973:79) wrote, “to satisfy the customer is the mis-
sion and purpose of every business.” Thus, for many years, business orga-
nizations have focused on customer satisfaction programs (Bhote, 1996).
Although satisfying customers is essential for any organization, studies
show that satisfying customers alone is not enough, since there is no guar-
antee that satisfied customers will return to purchase (Dube et al., 1994).
Bowen and Shoemaker (1998) indicated that loyalty extends beyond sim-
ple satisfaction. Customer loyalty also addresses the issue of how likely a
customer is to return and the customer’s willingness to perform “part-
ner-like” activities for the hotel–that is, recommendations to friends.
Thus, it is now becoming apparent that it is no longer customer satisfac-
tion, but customer loyalty, that constitutes the dominant factor in the suc-
cess of a business organization.
Developing customer loyalty in the service industry constitutes a chal-
lenge due to the three defining characteristics of services: intangibility,
heterogeneity, and inseparability (Parasuraman, Zeithhaml, & Berry,
1988). The intangible nature of the service “product” essentially forces
customers to anchor their decision to become loyal on relatively more de-
pendable cues–such as the firm’s image and reputation (Gremler & Brown,
1997; Ostrowsky, O’Brien, & Gordon, 1993). Since services are perfor-
mances that are commonly labor-intensive (Zeithaml & Bitner, 1996), the
outcomes are thus heterogeneous. It is therefore difficult, if not impossi-
ble, to standardize a service. Moreover, standardization refers to how
much flexibility the system is intended to display in serving the customer
(Chase & Bowen, 1991). Inseparability denotes that the production and
the consumption of a service occur simultaneously (Gronroos, 1978). This
implies that customers are involved in the process of the production of the
service and thus have the capacity to affect, positively or negatively, the
outcome of the service (Parasuraman, Zeithaml, & Berry, 1985). Cus-
tomer input in the production process of services causes difficulty in pro-

ducing a consistent quality of service. This can lead to inconsistency of the
firm’s service order, negatively affecting customer satisfaction and loy-
alty. In addition, Parasuraman and Grewal (2000) showed that, in service
organizations, the quality of service enhances the perceived value of the
service, and contributes to customer loyalty.
The increasing sophistication of customers’ demands also poses a chal-
lenge to the development of customer loyalty in the service industry
(Kirwin, 1992). Modern consumers demand high-quality products and
services and exhibit a low tolerance for products and services of mediocre
quality. This has been an ever-increasing concern for hotel managers, who
therefore seek ways to understand the factors that most influence custom-
ers to become loyal. In a practical context, this knowledge assists hotel
managers to develop creative strategies to nurture and to maintain cus-
tomer loyalty from both existing and prospective customers.
LOYALTY IN SERVICES
Although the academic literature contains many definitions of the term

“loyalty,” there is no general consensus among researchers and practitio-
ners as to what exactly constitutes loyalty and how it is demonstrated.
Some authors define loyalty as an attitude exhibited by customers towards
the service provider, whereas others define loyalty from the service pro-
vider’s perspective. Gremler and Brown (1997:173) used the term “ser-
vice loyalty” to refer to the attitude and behavior of the customer towards
the service provider:
Service loyalty is the degree to which a customer exhibits repeat pur-

chasing behavior from a service provider, possesses a positive attitu-
dinal disposition toward the provider, and considers using only this
provider when a need for this service arises.
This definition describes a loyal customer not only as a repeat buyer but
also as one who maintains a positive attitude towards the service provider
(for example, by recommending others to purchase from the firm).
Kandampully (1998:431) and Kandampully and Duddy (1999:51) also
used the term “service loyalty,” but they used the expression to refer to the
attitude demonstrated by the service provider in ensuring that customer
loyalty is maintained. Thus, service loyalty represents:
An organisation’s commitment to its customers–to think, anticipate

and innovate products and services in accordance with customers’
evolving needs.
Although these definitions vary in their perspective, they both refer to
loyalty as a positive long-term relationship between service provider and
customer. Thus, a loyal customer is a customer who mostly repurchases,
when feasible, from the same provider and maintains a positive attitude
towards the provider.
For the purpose of this study, a loyal customer of a service organization
is considered to be a customer who mostly repurchases, when feasible, from
the same provider, and who recommends or personally maintains a posi-
tive attitude towards the provider. Research indicates that loyalty is a mul-
tidimensional construct, comprising two dimensions: behavioral and
attitudinal (Julander et al., 1997).
Behavioral Dimension
The behavioral dimension of loyalty refers to those aspects of con-
sumer behavior (for example, repeat purchase) directed towards a particu-
lar brand or service over time (Bowen & Shoemaker, 1998). Although repeat
purchase is an important issue for most marketers, an interpretation of loy-
alty based on purchase behavior alone is not sufficient, since repurchase
behavior does not necessarily indicate a customer’s motivation for pur-
chase (Jarvis & Mayo, 1986; Shoemaker & Lewis, 1999; Lee &
Cunningham, 2001). A customer might repurchase from similar providers
for reasons other than his or her positive personal feeling towards a firm.
For instance, in the hotel industry a repeat customer might stay in a partic-
ular hotel chain due to:
• indifference to the hotel chain;
• the chain property being the only one acceptable to the traveller;
• familiarity;
• the chain being considered the best of a poor set of available alterna-
tives at the destination;
• avoidance of the inconvenience of switching;
• convenience of location.
Attitudinal Dimension
According to Gremler and Brown (1997), the attitudinal dimension of

loyalty included a customer’s intentions and preferences. Some research-
ers measure loyalty according to the customer’s intention to recommend

or to repurchase (Getty & Thompson, 1994), whereas others measure loy-
alty in terms of customer preference (Ostrowsky, O’Brien, & Gordon,
1993). The attitudinal dimension, such as the intention to repurchase and
intention to recommend, is deemed a good indicator of customer loyalty
(MacStravic, 1994) and is therefore very important for future business ac-
tivities. Similarly, Zeithaml, Berry, and Parasuraman (1996) contended
that customers’ behavioral intentions–such as intention to recommend
and repurchase–are indicators that signal whether customers will remain
with, or defect from the company.
The behavioral and attitudinal dimensions of customer loyalty are con-
sistent with the operationalisation of loyalty factors in the behavioral-in-
tention battery of Zeithaml, Berry, and Parasuraman (1996). The five
items they used for measuring loyalty included:
• saying positive things about the firm;

• recommending the firm to others;
• encouraging others to do business with the firm;
• considering the firm as the first choice in the future; and
• doing more business with the firm in the future.
In addition, a study of loyalty conducted by Gremler and Brown (1997)

provided evidence of the existence of behavioral and attitudinal dimen-
sions.
LOYALTY ANTECEDENTS
The marketing literature to date has not clearly identified a theoretical

framework–particularly in terms of those factors leading to the develop-
ment of customer loyalty (Gremler & Brown, 1997). However, a number
of factors has been identified as antecedents of customer loyalty. Indeed,
most researchers agree that customer satisfaction and service quality are
antecedents of loyalty (Gremler & Brown, 1997; Cronin & Taylor, 1992).
In addition, switching barriers related to technical, economic, and psycho-
logical factors are also considered antecedents of loyalty (Selnes, 1993;
Gremler & Brown, 1997). These barriers influence customer loyalty by
rendering it difficult or expensive for customers to change their suppliers.
Moreover, recent studies indicate image to be another determinant of
service loyalty. The effect of image on loyalty was explained by
Fredericks and Salter (1995:2):
Company image also can be an important element in the value equa-

tion. Company or brand image can support or undermine the value
that customers feel they are getting, and therefore, image can affect
loyalty.
Similarly, Bhote (1996) contended that image is an attitude that leads to

customer enthusiasm: value, delight, and loyalty. Research conducted by
Ostrowsky, O’Brien, and Gordon (1993) on the airline industry supported
this contention. They reported that image is significantly related to pas-
senger loyalty. Companies thus tend to perceive customer satisfaction and
image (or reputation) to constitute the most viable long-term strategy
(Selnes, 1993).
RELATIONSHIP BETWEEN CUSTOMER

SATISFACTION AND LOYALTY
Customer satisfaction is one of the objectives of marketing activity,

linking the processes of purchasing and consumption with post-purchase
phenomena (Churchill & Suprenant, 1982). The basic argument for satis-
fying a customer is to improve profitability by expanding the business,
gaining higher market share, and gaining repeat and referral business
(Barsky, 1992). Cronin and Taylor (1992) investigated the conceptualiza-
tion and measurement of service quality and the relationships among ser-
vice quality, customer satisfaction, and purchase intentions. Using four
service samples–banking, pest-control, dry-cleaning, and fast
food–Cronin and Taylor showed that customer satisfaction has a signifi-
cant effect on purchase intentions in all four industries. These findings
were supported by a similar study conducted in a health-care setting by
McAlexander, Kaldenberg, and Koenig (1994). They showed that patient
satisfaction and service quality have significant effects on purchase inten-
tions.
Woodside, Frey, and Daly (1989), in their study on hospital patients,
linked service quality, customer satisfaction, and behavior intention.
Their research strongly supported the hypothesis that customer satisfac-
tion with hospital stays is associated positively with the intention to return
to the same hospital, if hospital care is needed in the future. Similarly, a
study conducted by File, Cermak, and Prince (1994), measuring the effect
of word-of-mouth on buying behavior in professional services, showed
that satisfaction with the professional service is positively correlated with
positive verbal recommendation. In the hospitality industry, Getty and
Thompson (1994) studied the relationships among quality of lodging, sat-

isfaction, and the effect on customers’ intentions to recommend the lodg-
ing to perspective customers. Their results suggested that customers’
intentions to recommend are a function of their perception of service qual-
ity and their satisfaction with the lodging experience. Numerous addi-
tional studies have supported the conclusion that customer satisfaction has
a positive relationship with behavioral intention (Barsky, 1992; Palmer &
Maani, 1995; Fornell et al., 1996). It can therefore be concluded that there
is a positive relationship between customer satisfaction and customer loy-
alty.
RELATIONSHIP BETWEEN IMAGE AND LOYALTY
Image is considered to be an important variable in influencing market-

ing activities. Image is important for any organization, due to its ability to
influence customers’ perception of the goods and services offered
(Zeithaml & Bitner, 1996). As a result, image impacts on customers’ buy-
ing behavior, and this highlights the importance of maintaining a desirable
image. Researchers have identified a number of factors that determine im-
age. Normann (1991), for example, argued that image is built up in the
customer’s mind through the combined effects of advertising, public rela-
tions, physical image, word-of-mouth, and the customer’s actual experi-
ences with the goods and services. From these determinants, Normann
deemed the customer’s experience with the products and services to be the
most important factor in the development of image. Similarly, Gronroos
(1983) contended that image is formed by the service quality (both techni-
cal and functional quality), by traditional marketing activities (such as ad-
vertising, public relations, and pricing), and by external influences (such
as tradition and word-of-mouth). According to Gronroos (1983), it is ser-
vice quality that represents the single most important determinant of im-
age.
Echtner and Ritchie (1991), based on studies conducted on store image,
identified two dimensions of image–“holistic” and “attributes.” The holis-
tic dimension refers to a person’s mental picturing of the phenomena as a
whole, as opposed to a mere collection of independent stimuli (Bitner,
1992). In other words, the holistic or imaginary element of image encom-
passes the total impression and feeling of the phenomena engendered
from any or all of the senses. The attributes dimension refers to the facili-
ties and physical environment that forms and influences the phenomena
(Echtner & Ritchie, 1991).
Ostrowsky, O’Brien, and Gordon (1993) examined issues related to

service quality and customer loyalty in the airline industry. Using data
collected from two air carriers, they indicated that a significant relation-
ship exists between carrier image and retained preference (a measure of
customer loyalty). Among the carrier-image variables used in their re-
search, airline reputation and quality of customer service were deemed the
most important variables for both airlines.
Heung, Mok, and Kwan (1996) examined the degree of hotel brand loy-
alty in the free independent travelers’ market. Their study revealed that
hotel image maintains a relatively high score rating among loyal custom-
ers. Further, the findings indicated that hotel image is an important factor
in hotel choice among loyal guests.
Mazanec (1995) examined Self-Organizing Maps (SOM) for position-
ing analysis of luxury hotels. He reported that image is positively associ-
ated with customer satisfaction and customer preference (a dimension of
customer loyalty). A desirable image leads to customer satisfaction and
customer preference, whereas an undesirable image leads to dissatisfac-
tion.
RESEARCH JUSTIFICATION
Customer satisfaction and image are two factors that have been identi-
fied as important antecedents of customer loyalty (Selnes, 1993;
Ostrowsky, O’Brien, & Gordon, 1993). In terms of the relationships
among image, customer satisfaction, and customer loyalty, most of these
studies measured the relationship among these three factors separately.
Some researchers focused on the relationship between customer loyalty
and image (Ostrowsky, O’Brien, & Gordon, 1993), whereas others fo-
cused on the relationship between customer loyalty and customer satisfac-
tion (Mazanec, 1995).
The present research examines the relationship between customer loy-
alty and its two antecedents–customer satisfaction and image in the hotel
industry. More specifically, this research addresses the following research
question:
Which aspects of image and customer satisfaction are related to cus-

tomer loyalty in the hotel industry?
MODEL AND HYPOTHESES
To address the gap identified in the literature review, we developed a

conceptual model as shown in Figure 1.
This model predicts that customer satisfaction and image directly influ-
ence customer loyalty.
Customer’s behavioral intentions–such as intention to repurchase and
to recommend–are deemed to be good indicators of customer loyalty.
Therefore, for the purpose of this research, customer loyalty is gauged as a
customer’s intention to recommend and to repurchase. Hotel image is
measured based on holistic and attributes dimensions of the hotel. The ho-
listic dimension of hotel image can be defined as a person’s perception of
the hotel as a whole, whereas the attributes dimension of hotel image re-
fers to all the facilities and physical environment that form and influence a
hotel.
The hotel departments of reception, food and beverage, and housekeep-
ing provide the operations necessary to satisfy the basic needs of hotel
guests (Gundersen, Heide, & Olsson, 1996). Hence, for the purpose of this
research, customer satisfaction with hotel performance is measured ac-
cording to the performance of these three hotel departments. In addition,
as price or value is considered as an important factor that influences and
assists in the development of customer satisfaction (Getty & Thompson,
FIGURE 1. Model Suggesting the Relationship Between Customer Loyalty, Hotel

Image and Customer Satisfaction
Hotel Image
Holistic Dimension
Attributes Dimension
+
Customer Loyalty
Intention to Repurchase
Intention to Recommend
Customer Satisfaction
+
Reception Department
Food and Beverage Department
Housekeeping Department
Price
1994), price is also included as a measurement factor of customer satisfac-

tion with hotel performance.
HYPOTHESES
The broad objective of the present study is to identify the relationships

that exist between customer loyalty and its two antecedents, customer sat-
isfaction and image, in the hotel industry. To this end, three hypotheses
have been developed.
H1: That the holistic and attributes dimension of hotel image is pos-
itively related to customer loyalty.
H2: That customer satisfaction with reception, housekeeping, food

and beverage, and price is positively related to customer loy-
alty.
H3: That hotel image and customer satisfaction with hotel perfor-
mance significantly explain the variance in customer loyalty.
RESEARCH METHODOLOGY
This research focuses on the chain hotel as customer loyalty is consid-

ered to be a more important issue for hotel chains than for other types of
hotels, such as independent hotels (Heung, Mok, & Kwan, 1996). Con-
sidering the objective of this research, the unit of analysis in this research
is at the individual level–that is, the guests of chain hotels. To achieve this
objective, cross-sectional data were collected from chain hotel customers.
CONSTRUCT MEASUREMENT
The constructs illustrated in Table 1 were operationalized by adapting

existing items found within a wide range of research literature.
Customer loyalty, customer satisfaction, and hotel image were mea-
sured using Likert-type scales:
• “1” (strongly disagree);
• “3” (neutral); and
TABLE 1. Construct Operationalization
Variable Number Description

items
Customer loyalty 2 Two items are used to operationalize customer loyalty,
intention to recommend, and intention to repurchase.
Image attributes 6 This dimension is operationalized based on the basis of
the guest’s perception of the hotel location, physical
facilities, interior design, price, the quality of the goods,
and services provided, and staff performance.
Image holistic 4 The operationalization of the holistic dimension of hotel
image is based on the customer’s perception of the
hotel’s atmosphere, reputation, external appearance,
and layout.
Satisfaction with 4 This variable is measured by the customer’s perception
reception of the receptionist’s willingness and ability to provide
service, the physical appearance of the reception area,
and its ambience.
Satisfaction with 6 Satisfaction with the food and beverage is
food and beverage operationalized according to the guest’s perception of
the willingness and ability of the personnel to provide
service, the opening hours of the restaurant or bar, the
ambience of the food and beverage area, and the
quality of the food and beverage.
Satisfaction with 4 Satisfaction with housekeeping is operationalized
housekeeping according to the guest’s perception of the staff’s
willingness and ability to provide service, room
amenities, and room comfort.
Satisfaction with 3 The value of the price paid for accommodation, food
price and beverage, and other services provided is
considered to be the operationalization of customer
satisfaction with the price variable.
• “5” (strongly agree).

To collect the data, questionnaires accompanied by a covering letter
(and a chocolate-bar incentive) were distributed to 237 guests of five dif-
ferent chain hotels in Christchurch, New Zealand. The questionnaires
were delivered through the reception desk to those guests checking-in dur-
ing the data-collection period of three weeks. A total of 158 surveys were
returned. Of these, 106 (45%) surveys proved useable.
QUALITY OF MEASUREMENT
To check the reliability of the measurement of customer loyalty, hotel

image, and customer satisfaction, Cronbach’s alpha reliability test was
conducted for the three constructs. The final reliability of the measure-
ment and the final number of items used to measure each construct are
shown in Table 2.
Using the 0.7 Cronbach’s alpha value as the cut-off (Nunnally, 1978),
the results of the reliability test show that all variables are reliable. Thus,
all variables were included in subsequent hypothesis testing.
Given that hotel image was newly tested in this research, it was neces-
sary to assess the validity of the hotel image construct. To assess both con-
vergent and discriminant validity, factor analysis was employed. The
result indicates that one factor was extracted which explains 49.6% of the
variance. The two variables, holistic and attributes dimensions, are there-
fore combined to make one variable: hotel image. Subsequently, the at-
tributes and holistic dimension of hotel image in Hypothesis 3 were
revised as hotel image. Considering the purpose of this research, regres-
sion analysis was considered to be the appropriate method for testing the
hypotheses.
ANALYSIS METHOD
Regression analysis is a statistical technique used to examine the rela-

tionship between a single dependent variable and a single independent
TABLE 2. Reliability Test
CONSTRUCT CRONBACH ALPHA Number of

This research Previous research Items
Hotel Image
Attributes Dimension 0.822 - 6
Holistic Dimension 0.816 - 4
Customer Satisfaction
Reception 0.783 0.840* 4
Food and Beverage 0.846 0.870* 6
Housekeeping 0.823 0.790* 4
Price 0.781 0.757** 3
* Gundersen et al., 1996; ** Getty and Thompson, 1994
variable (simple regression), and a single dependent with a set of inde-

pendent variables (multiple regression). This analysis method was chosen
on the basis of its use as a tool capable of achieving the purpose of this re-
search. First, regression can be used to predict which of the dimensions of
hotel image and customer satisfaction (independent variables) is the more
responsible in determining a customer’s intention to recommend, in deter-
mining a customer’s intention to repurchase, and in determining the exhi-
bition of loyalty (dependent variables). Secondly, regression analysis
enables the researcher to obtain an explanation for the relationship that ex-
ists between the independent and dependent variables.
RESULTS
Respondent Profile
The characteristics of respondent groups can influence perceptions and

expectations of a product or service (Stanton, Miller, & Layton, 1994;
Kurtz & Clow, 1998). Therefore, to examine the impact of characteristics
on the relationship between customer loyalty and image and customer sat-
isfaction, respondents were asked to indicate their age, purpose of visit,
gender, and whether they were repeat purchasers. The characteristics of
the respondents are summarized in Tables 3, 4, and 5.
Among the repeat guests, 49 had stayed fewer than 5 times, 10 had
stayed between 5 and 10 times, and the rest (6 guests) had stayed more
than 10 times in the chain hotel–in either the same or a different location.
The simple regression between each independent variable and cus-
tomer loyalty was conducted to test the hypotheses H1 (revised) and H2
(see Table 6).
The results of the simple regression tests indicate that all the parameter
estimates (b) of independent variables are positive significant (p < 0.01).
There is thus strong evidence to support hypotheses H1 (revised) and H2.
TABLE 3. Gender
Gender Frequency Percent

Male 66 62.3
Female 40 37.7
Total 106 100
To test the relationship between customer satisfaction variables and

customer loyalty, a multiple regression was conducted. The results are
shown in Table 7.
The results in Table 7 show that only the customer satisfaction with
housekeeping variable is significant (p < 0.01) in all equations; the other
customer satisfaction variables are not significant.
To identify the relationship between customer loyalty and image and
customer satisfaction, all hotel image and customer satisfaction variables
were simultaneously tested with each dependent variable in one model to
test hypothesis H3.
As can be seen in Table 8, hotel image and customer satisfaction with re-
ception, food and beverage, housekeeping, and price, together significantly
explained 34% of the variance in customer loyalty (R2 = 0.343; F = 10.150;
TABLE 4. Type of Guest

Type of Guest Frequency Percent
Repeat Guest 64 60.4
Non-Repeat Guest 41 38.7
Undecided 1 0.9
Total 106 100
TABLE 5. Purpose of Visit
Purpose of Visit Frequency Percent

Business 46 43.4
Pleasure 53 50
Business and pleasure 3 2.8
Other 4 3.7
Total 106 100
TABLE 6. Regression of Each Independent Variable Towards Customer Loyalty
Variable R2 F *** b T***

Hotel Image 0.312 45.74 0.231 6.763
CS. Reception 0.136 15.932 0.647 3.992
CS. Food and Beverage 0.147 17.440 0.147 4.176
CS. Housekeeping 0.248 33.294 0.625 5.770
CS. Price 0.129 15.073 0.452 3.883
***Significant at p < 0.01
p = 0.001). The beta values of both image and customer satisfaction with
housekeeping are significant. Thus, the hypothesis that hotel image and cus-
tomer satisfaction with hotel performance would significantly explain the
variance in customer loyalty (H3) is substantiated.
DISCUSSION OF THE FINDINGS

The findings suggest that hotel image and customer satisfaction with
reception, housekeeping, food and beverage, and price are important fac-
tors in determining customer loyalty.
Hotel Image
The positive relationship between hotel image and a customer’s inten-

tion to recommend, to repurchase, and to exhibit loyalty, is consistent with
the results of previous studies. Previous studies show that the image of the
location, employee attitudes, facilities, and the services of a hotel consti-
TABLE 7. Regression of Customer Satisfaction Towards Customer Loyalty
Variable b T Sig.
CS. Reception 0.214 1.211 0.229
CS. Food and Beverage 0.027 0.628 0.531
CS. Housekeeping 0.433 3.207 0.002***
CS. Price 0.180 1.439 0.153
R2 = 0.295 F = 10.252***
***Significant at p < 0.01
TABLE 8. Regression of Hotel Image and Customer Satisfaction Towards Cus-

tomer Loyalty
Variable b T Sig.
Hotel Image 0.178 2.676 0.009 ***
CS. Reception 0.020 0.109 0.914
CS. Food and Beverage 20.038 20.797 0.427
CS. Housekeeping 0.273 1.894 0.061*
CS. Price 0.102 0.817 0.416
R2 = 0.343 F = 10.150***
***Significant at p < 0.01; *significant at p < 0.1
tute important factors in determining customer loyalty (Ostrowsky,

O’Brien, & Gordon, 1993). Moreover, research by Heung, Mok, and
Kwan (1996) revealed that loyal customers consider the image of a ho-
tel–in terms of convenience and accessibility–an important factor in the
decision to return. The positive correlation between hotel image and a cus-
tomer’s intention to repurchase, to recommend, and to demonstrate loy-
alty can be attributed to the role of image as a representative of reality
(Normann, 1991). Therefore, customers tend to repurchase and recom-
mend a business with a favorable image in the belief that it provides an as-
surance of high-quality goods and services.
Customer Satisfaction with Hotel Performance
The hypothesis tests show that customer satisfaction with the perfor-
mance of reception, food and beverage, housekeeping, and price is an im-
portant factor in determining whether a customer will repurchase and
recommend. The importance of this factor is most likely due to these de-
partments and price being perceived as the essence of a hotel offering.
Therefore satisfaction with the performance of these factors influences
customer loyalty.
Among customer-satisfaction factors, customer satisfaction with
housekeeping is the only significant factor in determining customer loy-
alty when tested in the model (which included all customer-satisfaction
variables). This finding indicates that, when compared to other cus-
tomer-satisfaction factors, customer satisfaction with housekeeping is
considered the single most important in determining whether a hotel guest
will return and recommend. A possible explanation for this finding is that
housekeeping might be perceived as a facilitating factor for a hotel,
whereas reception, food and beverage, and price might be regarded as sup-
porting factors (Powers, 1997).
As a facilitating factor, housekeeping delivers the core benefit of a ho-
tel (temporary accommodation). Reception, food and beverage, and price,
although essential for the marketing operation of a hotel (Powers, 1997),
are seen as factors that assist the delivery of the hotel’s core benefit. As a
consequence, hotel guests perceive satisfaction with housekeeping to be
more important than satisfaction with reception, food and beverage, and
price in determining whether they will return to, recommend, and demon-
strate loyalty to the hotel.
Hotel Image and Customer Satisfaction with Hotel Performance
When hotel image and customer satisfaction with reception, house-

keeping, food and beverage, and price are tested in a complete model
(Table 5), hotel image and customer satisfaction with housekeeping are
the only significant factors. This finding indicates that, among the factors
tested (hotel image and customer satisfaction with housekeeping, recep-
tion, food and beverage, and price), hotel image and customer satisfaction
with housekeeping are considered the most important factors in determin-
ing a customer’s intention to recommend and to repurchase. Thus, this re-
search suggests that in developing customer loyalty, hotel management
should focus on establishing a favorable hotel image and customer satis-
faction with housekeeping.
In conclusion, the results of the tests of the hypotheses indicate that ho-
tel image and customer satisfaction with food and beverage, reception,
housekeeping, and price are important factors in determining a customer’s
intention to repurchase, to recommend, and to exhibit loyalty. Among
those determinant factors, hotel image and customer satisfaction with
housekeeping are the major considerations for customers to repurchase, to
recommend, and to exhibit loyalty.
Limitations
The focus of this study was on image and customer satisfaction as ante-
cedents of loyalty. These variables were chosen on the rationale that they
would seem to constitute a viable means of developing customer loyalty in
the long term (Selnes, 1993). However, we recognise that there are many
other antecedents of loyalty which this study has not taken into consider-
ation.
Methodological limitation concerns the measurement of the intention
to recommend and repurchase with one item. Although those two factors
are good indicators of loyalty (MacStravic, 1994), reliability is difficult to
test using a single item. However, this study is consistent with previous re-
search that also used a single item in measuring a customer’s intention to
recommend and repurchase (Hartline & Jones, 1996; Getty & Thompson,
1994; Richard & Sundaram, 1993; Selnes, 1993).
MANAGEMENT IMPLICATIONS AND CONCLUSION
Although customer satisfaction is a widely accepted and proven ante-

cedent of customer loyalty, there have been relatively few studies on im-
age as the antecedent of customer loyalty. The present research shows that
the inclusion of image and customer satisfaction in one model not only
serves to highlight the importance of image, but also provides a better ex-
planation for customer loyalty. This suggests that both image and cus-
tomer satisfaction should be included when measuring customer loyalty.
This research suggests that developing customer loyalty depends not
only on the hotel manager’s capacity to increase customer satisfaction in
terms of performance, but also on his or her ability to establish a favorable
hotel image. Various aspects of the hotel operation, including the seven
marketing variables (product, place, price, promotion, people, process,
and physical evidence) might directly affect the hotel’s image. For exam-
ple, reduction in price might tarnish the image of a hotel. Attracting cus-
tomers who do not represent the image of the customer base might
negatively affect the loyalty of existing customers.
Research findings from this study indicate that the various aspects of a
hotel’s operations are not of equal importance in the judgment of hotel
guests. The hotel room, and the ability and willingness of housekeeping
staff to serve, were clearly shown to be the most important factors in deter-
mining customer loyalty. Thus, this research suggests that efforts towards
quality improvement should focus, primarily, on ensuring customer satis-
faction with housekeeping. While acknowledging the importance of all
aspects of the hotel operation, managers should recognize the significance
of housekeeping to overall customer satisfaction and, therefore, concen-
trate their resources on improving the comfort of hotel rooms and the pro-
fessionalism of housekeeping staff.
This study has demonstrated the importance of image and customer sat-
isfaction in improving and developing customer loyalty. Hotel chains face
intense competition, and the performance of one hotel is influenced by the
performance of other hotels in the same chain. Achieving and sustaining
customer satisfaction with housekeeping and a favorable hotel image pro-
vide hotels with the means to develop customer loyalty and meet the chal-
lenges successfully.
The findings of this study contribute to the growing body of knowledge
in services management and, in particular that pertaining to customer loy-
alty in the hotel industry. A number of issues has emerged from this study.
These factors have important contributions to make to hotel management
theory and practice. This study could be replicated in independent hotels,
in chain restaurants, or in other service sectors. Such research might result

in a sounder and more comprehensive knowledge of the relationship be-
tween customer loyalty and image and customer satisfaction.
The strength of this research lies in the fact that it provides an action-
able focus for the managers of chain hotels in their pursuit of a competi-
tive advantage. We conclude that an organization’s long-term success in a
market is essentially determined by its ability to expand and maintain a
large and loyal customer base. However, we suggest that customer loyalty
is time-specific and non-permanent and, therefore, requires continuous and
consistent investment. Hotel organizations must therefore constantly
strive to develop and maintain their customers’ loyalty or, as is true in the
majority of relationships, risk losing it to someone else.
REFERENCES
Barsky, Jonathan (1992). Customer Satisfaction in the Hotel Industry: Measurement and
Meaning. Cornell H.R.A. Quarterly, 7, 20-41.
Bhote, Keki R. (1996). Beyond Customer Satisfaction to Customer Loyalty, AMA Man-
agement Briefing, New York.
Bitner, Mary Jo (1992). Servicescapes: The Impact of Physical Surrounding on Cus-
tomers and Employees. Journal of Marketing, 56, 57-71.
Bowen, John & Shoemaker, Stowe (1998). Loyalty: A Strategic Commitment. Cornell
H.R.A. Quarterly, 2, 12-25.
Chase Richard B. & Bowen, David (1991). Service Quality and the Service Delivery Sys-
tem: A Diagnostic Framework, in Service Quality: Multidisciplinary and Multina-
tional Perspectives, Ed. S. W. Brown, E. Gummesson, B. Edvardsson, & B.
Gustavsson. Lexington Books. NY.
Churchill, Gilbert A. & Suprenant, Carol (1982). An Investigation into the Determinants
of Customer Satisfaction. Journal of Marketing Research, XIX (11), 491-504.
Cronin J. J, Jr & Taylor, S. A. (1992). Measuring Service Quality: A Re-examination and
Extension, Journal of Marketing, 56 (July), 55-68.
Drucker Peter F. (1973) Management, New York: Harper & Row.
Dube, Laurette, Renaghan, Leo M., & Miller, Jane, M. (1994). Measuring Customer Sat-
isfaction for Strategic Management. Cornell H.R.A. Quarterly, 2, 39-47.
Echtner, Charlotte M. & Ritchie, Brent J. R. (1991). The Meaning and Measurement of
Destination Image. The Journal of Tourism Studies, 2 (2), 2-12.
Ernst & Young (1996). The Ernst & Young Hotel Survey, Christchurch, New Zealand.
File, Karen, Cermak Diane K., & Prince, Ross (1994). Word-of-Mouth Effect in Profes-
sional Service Buyer Behaviour. The Service Industries Journal, 14, 301-314.
Fornell, Claes, Johnson, Michael D., Anderson, Eugene W., Cha, Jaesung, & Bryant,
Barbara Everitt (1996). The American Customer Satisfaction Index: Nature, Purpose,
and Findings. Journal of Marketing, 60(10), 7-18.
Fredericks, Joan O. & Salter II, James M. (1995). Beyond Customer Satisfaction. Man-
agement Review, 5, 29-32).
Getty, Juliet M. & Thompson, Kenneth N. (1994). The Relationship Between Quality,
Satisfaction, and Recommending Behaviour in Lodging Decision. Journal of Hospi-
tality & Leisure Marketing, 2 (3), 3-22.
Gremler, Dwayne D. & Brown, Stephen W. (1997). Service Loyalty: Its Nature, Impor-
tance, and Implications. Advancing Service Quality: A Global Perspective,
Edvardsson et al., (Eds.) Quiz 5 Conference Processing, University of Karlstad, Swe-
den, 171-181.
Gronroos, Christian (1978). A Service-Oriented Approach to Marketing of Services. Eu-
ropean Journal of Marketing, 12, No. 8, 588-601.
Gronroos, Christian (1983). Strategic Management and Marketing in the Service Sector.
Chartwell-Bratt, London, UK.
Gronroos, Christian (2000), Service Management and Marketing: A customer relation-
ship management approach, second edition. Chichester, UK: John Wiley & Sons Ltd.
Gummesson, Evert (1999). Total Relationship Marketing: Rethinking marketing man-
agement from 4Ps to 30 Rs, Oxford, UK: Butterworth Heinemann.
Gundersen, Marit G., Heide, Morten, & Olsson, Ulf H. (1996). Hotel Guest Satisfaction
among Business Travelers. Cornell H.R.A. Quarterly, 4, 72-80.
Hartline Michael D. & Jones Keith C. (1996). Employee Performance Cues in Hotel Ser-
vice Environment: Influence on Perceived Service Quality, Value, and Word-
of-mouth Intentions, Journal of Business Research, 35, 207-215.
Heskett, James L., Jones, Thomas O., Loveman, Garry W., Sasser, W. Earl, &
Schlesinger, Leonard A. (1994). Putting the Service-Profit Chain to Work. Harvard
Business Review, March-April, 164-174).
Heung, Vincent C. S., Mok, Connie, & Kwan, Anthea (1996). Brand Loyalty in Hotels:
An Exploratory Study of Overseas Visitors to Hong Kong. Australian Journal of Hos-
pitality Management, 3 (1), 1-11.
Holmund, M. & Kock, S. (1996). Relationship Marketing: The Importance of Cus-
tomer-Perceived Service Quality in Retail Banking. Service Industries Journal, Vol
16, 3, 287-304.
Jarvis, Lance P.& Mayo, Edward J. (1986). Winning the Market-Share Game. The Cor-
nell H.R.A. Quarterly, 11, 73-79.
Julander, C., Magi, Anne, Jonsson, Joakim, & Lindqvist, Alf (1997). Linking Customer
Satisfaction to Financial Performance Data. Advancing Service Quality: A Global
Perspective, Edvardsson et al. (Eds). Quiz 5, Conference Processing, University of
Karlstad, Sweden, 301-310.
Kandampully, Jay (1998). Service Quality to Service Loyalty: A Relationship Which
Goes Beyond Customer Services. Journal of Total Quality Management, 9, 6.
Kandampully, Jay & Duddy, Ria (1999). Competitive Advantage Through Anticipation,
Innovation and Relationships. Management Decision, Vol 37 (1), 51-56.
Kirwin, Paul (1992). Increasing Sales and Profits Through Guest Satisfaction. Cornell
H.R.A. Quarterly, 33, 38-39.
Kurtz, David & Clow, Kenneth (1998). Services Marketing, John Wiley & Sons, NY.
Lee, Moonkyu & Cunningham, Lawrence F. (2001). A cost/benefit approach to under-
standing service loyalty. Journal of Services Marketing, Vol. 15, No. 2, 113-130.
MacStravic, Scott (1994). Patient Loyalty to Physicians. Journal of Health Care Mar-
keting, 14, 53-56.
Mazanec, Josef A. (1995). Positioning Analysis with Self-Organizing Maps: An Explor-
atory Study on Luxury Hotels. Cornell H.R.A. Quarterly, 12, 80-92.
McAlexander, James H., Kaldenberg, Dennis O., & Koenig, Harold F. (1994). Service
Quality Measurement. Journal of Health Care Marketing, 14 (3), 34-40.
Normann, Richard (1991). Service Management: Strategy and Leadership in Service
Business. John Wiley and Sons, London. UK.
Nunnally, Jum C. (1978). Psychometric Theory, second edition, New York: McGraw-
Hill.
Ostrowsky, Peter L., O’Brien, Terrence V., & Gordon, Geoffrey L. (1993). Service Qual-
ity and Customer Satisfaction in the Commercial Airline Industry. Journal of Travel
Research, Fall, 16-24.
Palmer, Elaine & Maani, Kambiz (1995). Long Term Relationships in Professional Ser-
vice Firms: An Exploratory Study. New Zealand Journal of Business, 17(2), 113-128.
Parasuraman, A. & Grewal, Dhruv (2000), The impact of technology on the qual-
ity-value-loyalty chain: a research agenda. Journal of the Academy of Marketing Sci-
ence, 28 (1), 168-174.
Parasuraman A., Zeithaml, V. A., & Berry L. L (1985), A Conceptual Model of Service
Quality and its Implications for Future Research. Journal of Marketing, Vol. 49, Fall
1985, 41-50.
Parasuraman, A., Zeithaml, Valerie, & Berry, Leonard (1988). SERVQUAL: Multiple
Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Re-
tailing, 64 (1), 12-36.
Powers, Tom (1997. Marketing Hospitality, second edition, John Wiley and Son, NY.
Reichheld, F. & Sasser, W. (1990). Zero Defections: Quality Comes to Services. Harvard
Business Review, 68, 105-111.
Richard Michael D. & Sundaram D. (1993). Lodging Choice Intentions: A Causal
Modelling Approach, Journal of Hospitality and Leisure Marketing, 1 (4), 81-97.
Schoemaker, Stowe & Lewis, Robert C. (1999). Customer Loyalty: The future of Hospi-
tality Marketing, International Journal of Hospitality Management, Vol.18, 345-370.
Schultz, D. E. & Bailey, S (2000). Customer/Brand loyalty in an interactive marketplace,
Journal of Advertising Research, Vol. 40, 41-52.
Scott, R. Craig (2001). Establishing and Maintaining Customer Loyalty and Employee
Identification in the New Economy. Management Communication Quarterly, Vol. 14,
no. 4, May, 629-636
Selnes, Fred (1993). An Examination of the Effect of Product Performance on Brand Rep-
utation, Satisfaction and Loyalty. European Journal of Marketing, 27 (9), 19-35.
Stanton, William, Miller Kenneth, & Layton, Roger (1994). Fundamentals of Marketing,
third Australian edition, Sydney: McGraw-Hill.
Woodside, Arch G., Frey, Lisa L., & Daly, Robert T. (1989). Linking Service Quality,
Customer Satisfaction, and Behavioural Intention. Journal of Health Care Marketing,
9, 5-17.
Zeithaml, Valerie A. & Bitner, Mary Jo (1996). Services Marketing. McGraw-Hill Inter-
national Editions. NY.
Zeithaml, Valerie, Berry, Leonard L., & Parasuraman, A. (1996). The Behavioural Con-
sequences of Service Quality. Journal of Marketing, 60, 31-46.
For FACULTY/PROFESSIONALS with journal subscription

recommendation authority for their institutional library . . .
If you have read a reprint or photocopy of this article, would you like to
make sure that your library also subscribes to this journal? If you have
the authority to recommend subscriptions to your library, we will send you
a free complete (print edition) sample copy for review with your librarian.
1. Fill out the form below and make sure that you type or write out clearly both the name
of the journal and your own name and address. Or send your request via e-mail to
getinfo@haworthpressinc.com including in the subject line “Sample Copy Request” and
the title of this journal.
2. Make sure to include your name and complete postal mailing address as well as your
institutional/agency library name in the text of your e-mail.
[Please note: we cannot mail specific journal samples, such as the issue in which a specific article appears.
Sample issues are provided with the hope that you might review a possible subscription/e-subscription with
your institution's librarian. There is no charge for an institution/campus-wide electronic subscription
concurrent with the archival print edition subscription.]
Please send me a complimentary sample of this journal:
(please write complete journal title here–do not leave blank)
I will show this journal to our institutional or agency library for a possible subscription.
Institution/Agency Library: ______________________________________________
Name: _____________________________________________________________
Institution: __________________________________________________________
Address: ___________________________________________________________
City: ____________________ State: __________ Zip: ____________________
Return to: Sample Copy Department, The Haworth Press, Inc.,
10 Alice Street, Binghamton, NY 13904-1580

The Role of Customer Satisfaction

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

The Role of Customer Satisfaction

Transféré par

Droits d'auteur :

Formats disponibles

The Role of Customer Satisfaction

and Image in Gaining Customer Loyalty

ABSTRACT. Customer loyalty has become a topical issue in research and

KEYWORDS. Customer satisfaction, customer loyalty, image, service

Jay Kandampully is Professor, Hospitality Management Program, Campbell Hall, The

Hospitality and tourism have evolved into truly global industries in

tomer input in the production process of services causes difficulty in pro-

Although the academic literature contains many definitions of the term

Service loyalty is the degree to which a customer exhibits repeat pur-

An organisation’s commitment to its customers–to think, anticipate

According to Gremler and Brown (1997), the attitudinal dimension of

ers measure loyalty according to the customer’s intention to recommend

• saying positive things about the firm;

In addition, a study of loyalty conducted by Gremler and Brown (1997)

The marketing literature to date has not clearly identified a theoretical

Company image also can be an important element in the value equa-

Similarly, Bhote (1996) contended that image is an attitude that leads to

RELATIONSHIP BETWEEN CUSTOMER

Customer satisfaction is one of the objectives of marketing activity,

Thompson (1994) studied the relationships among quality of lodging, sat-

RELATIONSHIP BETWEEN IMAGE AND LOYALTY

Image is considered to be an important variable in influencing market-

Ostrowsky, O’Brien, and Gordon (1993) examined issues related to

Which aspects of image and customer satisfaction are related to cus-

MODEL AND HYPOTHESES

To address the gap identified in the literature review, we developed a

FIGURE 1. Model Suggesting the Relationship Between Customer Loyalty, Hotel

1994), price is also included as a measurement factor of customer satisfac-

The broad objective of the present study is to identify the relationships

H2: That customer satisfaction with reception, housekeeping, food

This research focuses on the chain hotel as customer loyalty is consid-

The constructs illustrated in Table 1 were operationalized by adapting

TABLE 1. Construct Operationalization

Variable Number Description

• “5” (strongly agree).

To check the reliability of the measurement of customer loyalty, hotel

Regression analysis is a statistical technique used to examine the rela-

TABLE 2. Reliability Test

CONSTRUCT CRONBACH ALPHA Number of

variable (simple regression), and a single dependent with a set of inde-

The characteristics of respondent groups can influence perceptions and

Gender Frequency Percent

To test the relationship between customer satisfaction variables and

TABLE 4. Type of Guest

TABLE 5. Purpose of Visit

Purpose of Visit Frequency Percent

TABLE 6. Regression of Each Independent Variable Towards Customer Loyalty

Variable R2 F *** b T***

DISCUSSION OF THE FINDINGS

The positive relationship between hotel image and a customer’s inten-

TABLE 7. Regression of Customer Satisfaction Towards Customer Loyalty

TABLE 8. Regression of Hotel Image and Customer Satisfaction Towards Cus-

tute important factors in determining customer loyalty (Ostrowsky,

Customer Satisfaction with Hotel Performance

Hotel Image and Customer Satisfaction with Hotel Performance

When hotel image and customer satisfaction with reception, house-

MANAGEMENT IMPLICATIONS AND CONCLUSION

Although customer satisfaction is a widely accepted and proven ante-

in chain restaurants, or in other service sectors. Such research might result

For FACULTY/PROFESSIONALS with journal subscription

Please send me a complimentary sample of this journal:

(please write complete journal title here–do not leave blank)

Vous aimerez peut-être aussi

Variable R2 F * b T*