Abstract

The purpose of this paper is to define and measure the effects of service quality on customer satisfaction and customer loyalty of four and five star hotels in Ho Chi Minh City, Vietnam. This study has used qualitative and quantitative researches: (i) qualitative research carried out through focus group discussions with 10 customers, and (ii) quantitative research conducted through direct interviews with 322 customers in Ho Chi Minh city (Viet Nam). The results show that: (i) customers’ loyalty is affected by four dimensions of service quality (reliability, responsiveness, website utility, and tangibles) and customer satisfaction; and (ii) customer satisfaction is affected by five dimensions of service quality (reliability, responsiveness, website utility, tangibles, and sympathy). However, the research subject has certain limitations: (i) due to limited resources in conducting research, the sample size consisted of 322 customers, (ii) This study conducted the sampling technique of using direct interview methods from respondents using service at 4- and 5-star hotels in HCM city, Viet Nam.

Highlights

  • After the economic reform, the Vietnamese economy witnessed changes in its structure, especially the shift of its emphasis from agricultural to industrial and service sectors

  • TANGIBLES TAN TAN1: The hotel has modern facilities TAN2: Neat offices and front desks suggesting reliability to customers TAN3: Hotel personnel equipped with neat and good-looking uniforms TAN4: Hotel services always meet requirements RELIABILITY REL REL1: All promises offered by the hotel are delivered at a preset time REL2: All customers’ complaints about hotel services are dealt with properly and timely

  • In other words, when users of hotel services feel sure about the quality of service supplied, when all of their expectations are met by hotels, when they consider hotel’s tangibles and facilities as good, when they appreciate the hotel’s website usefulness, and they feel that the hotel show empathy for them, they will feel satisfied with hotel services

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Summary

Introduction

The Vietnamese economy witnessed changes in its structure, especially the shift of its emphasis from agricultural to industrial and service sectors. Share of the service sector increased remarkably and part of tourism in particular represented a noticeable weigh and showed an upward tendency when the economy integrated more fully into the world economy. Realities show that Vietnam has potentials for tourism (beautiful landscapes, a long coastline with many nice beaches, and well-preserved national parks and tourist attractions, etc.) and enjoys a politico-economic life considered as stable by many countries. The fact that Vietnam has become a popular destination for tourists from home and abroad as well is predictable. The number of international visitors was on the increase, domestic tourists tended to prefer local tours to foreign ones, and general living standard of the Vietnamese population of some 90 million was improved, which helped increase flows of tourists and develop this industry

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