SERVICE QUALITY AND IT’S EFFECT ON CUSTOMER SATISFACTION IN STAR-MARK HOTELS OF SHASHEMENE TOWN, ETHIOPIA

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.