The contribution of service quality and price on customer satisfaction in Grand Global Hotel

Abstract

This study was aimed at assessing the contribution of service quality and price on customer satisfaction in Grand Global Hotel from the perspective of a customer. To accomplish this, the influence of price expectations and price perceptions on customer satisfaction, and the influence of service quality expectations and service quality perception on customer satisfaction were investigated. This cross-sectional study involved 50 procedurally selected customers of Grand Global Hotel who actually paid for goods and services within the one-week period of data collection. Data collection was done using well-designed questionnaires that had both open-ended and close ended questions. The data were analyzed using Stata version 12. On service quality, the findings of the study revealed that it is only post-purchase evaluation of service quality (perceived service quality) that plays a role in determining the extent to which a customer is satisfied; the higher the level of perceived service quality the higher the level of satisfaction. Pre-purchase expectations do not play any significant role; this is due to the importance of price in intermediating between service quality and customer satisfaction by shoving off the inverse relationship between service quality expectations and the possibility of customer satisfaction. Price, on the other hand, is all-important. Price expectations play a very important role in determining if a customer is satisfied or not; high price expectations increase the likelihood of customer satisfaction and vice versa. Price perceptions do not have a direct effect on customer satisfaction but an implied effect as bench-mark with which the quality of goods and services is evaluated.