The Effects of Service Quality on Customer Satisfaction in the 3 Stars’ Hotels in Arusha City

Mwacha, Emanuel Raymond (2019) The Effects of Service Quality on Customer Satisfaction in the 3 Stars’ Hotels in Arusha City. Masters thesis, The Open University of Tanzania.

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Abstract

The objective of this study was to investigate the effects of service quality on customer satisfaction in the 3 stars’ hotels in Arusha city. The study design was a descriptive research design using mixed approach. Questionnaires were administered to 57 hotel customers while in-depth interviews were conducted to 5 hotel managers. Descriptive statistics under SPSS was used to run statistical mean, correlation and factor analysis was also conducted. The service quality gap was established using SERVQUAL Model by comparing expectations means with actual perceptions. The findings revealed a high negative service quality gap between customer expectations and perceptions in assurance, responsiveness and tangibility as compared to empathy and reliability where the figures were slightly lower. This implies that the hotels administration has to put more effort in improving the variables related to those components. Also, the study found a high positive significant linear relationship between all five service quality dimensions and customer satisfaction. Further, only tangibility was found by the customers to be the most important service quality dimension in Arusha city third level hotels. Therefore, the hotels management should mark eyes on those features regarding tangibility since it was the most targeted by customers. Keywords: SERVQUAL, service quality and customer satisfaction.

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