Abstract:
In order to achieve their mission, the vision of all hotels is delivering quality services
to satisfy their customers who are consuming the services of the hotels. The main
objective of this study is to analyze the effect of service quality on customer satisfaction
in the case of star-rated hotels in Shashemene town. To address this objective, the
researcher employed the most widely used model called Service quality (SERVQUAL)
model and analyze the effect of service quality dimensions (Tangibility, Reliability,
Responsiveness, Empathy, and Assurance) on customer satisfaction. The researcher
implemented an explanatory research design with quantitative and qualitative research
approaches. The researcher selected 315 star-rated hotel customers using stratified and
convenience random sampling technique that were determined based on Carvalho
(1984) sampling table. They were asked to rate their opinion according to a five-point
Likert scale ranging from strongly disagree to strongly agree levels. The analysis
section of this study is based on descriptive and inferential analyses. The major data
analysis techniques of the inferential part are including correlation and multiple linear
regressions. The study result indicated that the services given by star-rated hotels were
appreciated by customers. Service quality measurements such as reliability,
responsiveness, and tangibility had a significant effect on customer satisfaction. Since
hotel is a service-oriented organization, the hotel managers should keep in providing
service quality so as to retain the existing customers and attract new customers.
