1.5 Significance of the study

1.5 Significance of the study

Many researchers have commented on the general concept of customers who are dissatisfied are most likely to create a bad image of the organisation in their mind which may affect the profit margins of a particular company.  (Cronin and Taylor, 1992 & 1994; OíNeill, 1992, 2001 Gronroos, 2001,Kandampully, 2002;).Therefore the hoteliers should  conscious of the fact that the impact of dissatisfaction may leads towards their own down fall.

Though the service quality has defined in many different terms and aspects, it is vital for the hotels to understand the expectations of their customers and how they can deliver the service accordingly. However, it is very important to understand the dimensions of service quality in a hotel in order to deliver the desired output which may lead to long term customer loyalty. Kandampully and Suhartanto(2000, 2003) 

Some of the benefits gain through customer loyalty is as follows,

Ø  Growth (scribd.com,2011)

More than advertising word of mouth is a more powerful medium that contributes to the growth of the industry. A happy customer will always spread the good news among his/her peers. Firsthand experience will always win the day against false exaggerated advertisements. If an organisation keeps the customer happy and he/she will provide future customers.

Ø  Reputation (scribd.com,2011)

A customer who has had a bad experience is more likely to spread the news to at least ten people while a happy customer will spread the news to 3 or more people. It is important to know that negative publicity will eventually affect the place. (The essential start up guid,2011) Reputation cannot be bought it has to be earned.

Here, quality of service to the customers plays a quite essential role. The reputation will grow slowly if the determination is to provide good service to all customers. A mistake can ruin the reputation of a particular organization. Therefore reputation must be built slowly and steadily and it’s very important to always regard the level of service as the utmost duty. Reputation can work in both ways; while a good reputation attracts customers a bad reputation will drive them away.

Ø  Sales (scribd.com)

Sales can grow if the service can satisfy the consumers. Customer will seek for the same hotel if they return or they encourage people they know to experience this particular service which they value. The bottom-line is they show their gratitude by being loyal.

From above information, it is understood that how important is customer loyalty a service organisation. This study will explore the service quality expectations that a general customer will have at the pre experienced stage and the perception of the service at the post experienced stage. The study will identify the service quality gaps, and how these gaps will impact on Customer satisfaction and how the customer satisfaction impact in future behaviors (customer loyalty) towards the service industry.