Abstract

Customer loyalty is very necessary for the competitive market environment. The growing presence of relationship marketing efforts has led to increased competition among service providers. So hospitality industry is more service oriented, effecting by customers’ interest. To achieve the desirable customer to the business, for this purpose Relationship marketing efforts would have to be implemented in order to determine whether frequent guest is loyal to the particular company. Previous research has identified the determinants of customers’ loyalty for a hotel industry and has been adapted and used in this study. Structural equation analysis was applied to identify which factors (service quality, customer satisfaction, trust, value and hotel membership program, socio demography of the customer) have positively impact customer loyalty. According the result of this study all the determinants of loyalty have significance relationship with customer loyalty, and it was also indentified that customer loyalty as a function of both behavioral and attitudinal loyalty. The framework adopted and modified for this research demonstrated the formation of a solid structure that would allow for collecting valuable findings. This study has extended and adopts the previous loyalty model and has been applied in the hotel industry of Penang, Malaysia.

Highlights

  • As an hotelier in the industry, it is important to offer products or services that enable sustainability in the industry

  • The attitudinal loyalty measurement regarded “membership program” as its third most valued while the behavioral loyalty positioned “perceived quality” as its third

  • It is based on the cross-comparison of these two findings that demonstrate how this particular study’s findings are somewhat similar in terms of classifying “trust” as an important determinant of guest loyalty

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Summary

Introduction

As an hotelier in the industry, it is important to offer products or services that enable sustainability in the industry. The external factors include solid competition from peers and uncertainties in the hospitality industry It was reported, that the impact of uncertainties due to Severe Acute Respiratory Syndrome (SARS) and terrorists attacks on the industry. Hotels have to deal with internal challenges which are related to hotel management This internal factor may contribute to their poor performance in terms of low level of service quality (Lau, et al 2005). Through the assessment of guests’ perspectives, the researcher intends to derive the importance of gathering this pertinent information This assessment will contribute to the advancement of hospitality research and provide a newfound viewpoint on how loyalty is vital for five star hotels. The objective of this study is to examine which antecedents (i.e. perceived quality, trust, satisfaction, perceived value, sociodemography, and hotel membership programs) have significant effect(s) on guest loyalty

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