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

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 w...

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Main Authors: Cheng, Boon Liat *, Gan, Chin Chuan *, Imrie, Brian C., Shaheen, M.
Format: Article
Language:English
Published: Emerald 2019
Subjects:
Online Access:http://eprints.sunway.edu.my/1815/1/Cheng%20Boon%20Liat%202018%20Service%20recovery%2C%20customer%20satisfaction%20and%20customer%20loyalty.pdf
http://eprints.sunway.edu.my/1815/
https://doi.org/10.1108/IJQSS-09-2017-0081
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spelling my.sunway.eprints.18152021-12-02T07:08:11Z http://eprints.sunway.edu.my/1815/ Service recovery, customer satisfaction and customer loyalty: Evidence from Malaysia’s hotel industry Cheng, Boon Liat * Gan, Chin Chuan * Imrie, Brian C. Shaheen, M. G 154.9 Tourism 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. Emerald 2019 Article PeerReviewed text en cc_by_nc_4 http://eprints.sunway.edu.my/1815/1/Cheng%20Boon%20Liat%202018%20Service%20recovery%2C%20customer%20satisfaction%20and%20customer%20loyalty.pdf Cheng, Boon Liat * and Gan, Chin Chuan * and Imrie, Brian C. and Shaheen, M. (2019) Service recovery, customer satisfaction and customer loyalty: Evidence from Malaysia’s hotel industry. International Journal of Quality and Service Sciences, 11 (2). pp. 187-203. ISSN 1756-669x https://doi.org/10.1108/IJQSS-09-2017-0081
institution Sunway University
building Sunway Campus Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Sunway University
content_source Sunway Institutional Repository
url_provider http://eprints.sunway.edu.my/
language English
topic G 154.9 Tourism
spellingShingle G 154.9 Tourism
Cheng, Boon Liat *
Gan, Chin Chuan *
Imrie, Brian C.
Shaheen, M.
Service recovery, customer satisfaction and customer loyalty: Evidence from Malaysia’s hotel industry
description 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.
format Article
author Cheng, Boon Liat *
Gan, Chin Chuan *
Imrie, Brian C.
Shaheen, M.
author_facet Cheng, Boon Liat *
Gan, Chin Chuan *
Imrie, Brian C.
Shaheen, M.
author_sort Cheng, Boon Liat *
title Service recovery, customer satisfaction and customer loyalty: Evidence from Malaysia’s hotel industry
title_short Service recovery, customer satisfaction and customer loyalty: Evidence from Malaysia’s hotel industry
title_full Service recovery, customer satisfaction and customer loyalty: Evidence from Malaysia’s hotel industry
title_fullStr Service recovery, customer satisfaction and customer loyalty: Evidence from Malaysia’s hotel industry
title_full_unstemmed Service recovery, customer satisfaction and customer loyalty: Evidence from Malaysia’s hotel industry
title_sort service recovery, customer satisfaction and customer loyalty: evidence from malaysia’s hotel industry
publisher Emerald
publishDate 2019
url http://eprints.sunway.edu.my/1815/1/Cheng%20Boon%20Liat%202018%20Service%20recovery%2C%20customer%20satisfaction%20and%20customer%20loyalty.pdf
http://eprints.sunway.edu.my/1815/
https://doi.org/10.1108/IJQSS-09-2017-0081
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