The Influence of the Dimensions of Service Quality on Customer Satisfaction at Hotels in Batu City, Indonesia

Abstract

Objective - The number of hotels in both urban or in tourism areas has increased quite rapidly. The success and sustainability of hotel businesses is largely determined by their marketing strategy and the quality of services they provide to their customers. In choosing a hotel, customers consider both the physical appearance of the hotel as well as the quality of service provided. The rapid increase in hotels in Indonesia necessarily increases competition in the hotel industry and the rules surrounding market competition become quite strict. The aim of this research is to determine the influence of the dimensions of service quality (tangibility, reliability, responsiveness, assurance, and empathy) on customer satisfaction and to identify the most dominant dimension in terms of customer satisfaction. Methodology/Technique - The research studied 110 respondents who have stayed in several hotels located in Batu, Indonesia. The data was collected using purposive sampling techniques using questionnaires. The data analysis technique used in this research was multiple linear regression analysis. Findings – Based on the results of this research, it is concluded that the dimensions of service quality (tangibility, reliability, responsiveness, assurance, empathy) have a significant influence on customer satisfaction. In addition, the service quality dimension that has the most dominant influence on customer satisfaction is assurance. Novelty - The research supported by original data and contribute to the literature in the context of Indonesia. Type of Paper - Empirical Keywords: Service Quality; Tangibility; Reliability; Responsiveness; Assurance; Empathy; Customer Satisfaction. JEL Classification: L15, M10, M30.