Effects of Service Quality and Customer Satisfaction on Customers’ Loyalty in the Hospitality industry of Ghana

Abstract

The purpose of the study was to investigate the effects of service quality and customer satisfaction on customers’ loyalty in the hospitality industry in Cape Coast, Ghana. Descriptive design was used to investigate the association between service quality, customer satisfaction, service quality and customer satisfaction (independent variables) and customers’ loyalty (dependent variable). Survey was used for data collection from 320 customers in the hospitality industry in Cape Coast, Ghana. Data analysis was carried out with the use of SPSS version 20. The findings showed a significant positive relationship between service quality and customers’ loyalty in the hospitality industry in Cape Coast, Ghana. The study also found a significant positive relationship between customer satisfaction and customers’ loyalty in the hospitality industry in Cape Coast, Ghana. It was recommended that the firms in the hospitality industry in Cape Coast, Ghana, should strive to continue the delivery of quality service to ensure loyalty. This can be done by maintaining consistent quality service performance. Also, it was recommended that the firms in the hospitality industry in Cape Coast, Ghana, should continue to endeavour to meet customers’ expectation since it engenders loyalty. Periodic market research is imperative to help identify emerging needs of customers so as to enhance the loyalty.