Influence of Service Quality on Customer Loyalty in Luxury Hotel Chains in Tanzania
DOI:
https://doi.org/10.47672/jht.1981Keywords:
Service, Quality, Customer, Loyalty, Luxury, Hotel ChainsAbstract
Purpose: The aim of the study was to assess the influence of service quality on customer loyalty in luxury hotel chains in Tanzania.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: The study indicated a strong correlation between the two factors. High service quality consistently leads to increased customer loyalty within this segment of the hospitality industry. Studies have revealed that luxury hotel guests place significant emphasis on personalized service, attention to detail, and exceptional experiences. When these expectations are consistently met or exceeded, guests are more likely to exhibit loyalty behaviors, such as repeat visits, positive word-of-mouth recommendations, and a willingness to pay premium prices. Additionally, service quality has been found to play a crucial role in shaping guests' perceptions of value and satisfaction, which further contributes to their loyalty. Consequently, luxury hotel chains that prioritize and maintain high levels of service quality are better positioned to foster long-term relationships with their clientele and achieve sustainable competitive advantage in the market.
Implications to Theory, Practice and Policy: Expectancy-disconfirmation theory, service profit chain theory and relationship marketing theory may be used to anchor future studies on assessing influence of service quality on customer loyalty in luxury hotel chains in Tanzania. Practitioners in luxury hotel chains can leverage the empirical findings to inform strategic decision-making and enhance service delivery. Policymakers and industry stakeholders can utilize the empirical evidence to advocate for policies that support service quality enhancement initiatives within luxury hotel chains.
Downloads
References
Acharya, S., Ghatak, A., & Gaur, S. S. (2018). The impact of customer loyalty programs on customer retention: A study in the Indian retail sector. Journal of Retailing and Consumer Services, 40, 204-212. https://doi.org/10.1016/j.jretconser.2017.09.004
Arya, B., Mena, J. A., & Lal, R. (2017). Loyalty programs in emerging markets: An empirical analysis of rural and urban consumers in India. Journal of Retailing and Consumer Services, 34, 77-89. https://doi.org/10.1016/j.jretconser.2016.11.005
Chen, Y., Wang, L., & Hu, X. (2020). Service recovery and customer loyalty in luxury hotel chains. Journal of Hospitality Marketing & Management, 29(5), 573-591.
Choi, T. Y., & Chu, R. (2001). Determinants of hotel guests' satisfaction and repeat patronage in the Hong Kong hotel industry. International Journal of Hospitality Management, 20(3), 277-297.
Curtis, J., Van den Bulte, C., & Huh, J. (2019). The dynamic effect of customer loyalty programs on customer retention: An empirical analysis. Journal of Marketing Research, 56(5), 741-758. https://doi.org/10.1177/0022243719840025
Garcia, A., Martinez, J., & Gomez, L. (2017). The influence of customer loyalty programs on customer retention: A study in the Colombian retail sector. Journal of Retailing and Consumer Services, 39, 158-165. https://doi.org/10.1016/j.jretconser.2017.08.013
Gensler, S., Völckner, F., Liu-Thompkins, Y., & Wiertz, C. (2017). Managing brands in the social media environment. Journal of Interactive Marketing, 40, 1-8. https://doi.org/10.1016/j.intmar.2017.04.001
Grönroos, C. (2011). A service perspective on business relationships: The value creation, interaction and marketing interface. Industrial Marketing Management, 40(2), 240-247.
Haruo, S., Takeshi, Y., & Yoshida, M. (2018). The role of brand loyalty in consumer behavior: An integrated model. Journal of Marketing, 82(6), 65-85. https://doi.org/10.1509/jm.17.0256
Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E., & Schlesinger, L. A. (2014). Putting the service-profit chain to work. Harvard Business Review, 92(7/8), 118-129.
Johnson, R. D., & Brown, K. G. (2019). Longitudinal effects of service quality on customer loyalty in luxury hotel chains. Journal of Travel Research, 58(6), 976-991.
Kim, J., & Lee, S. (2021). A cross-cultural study of service quality and customer loyalty in luxury hotel chains. International Journal of Hospitality Management, 95, 102938.
Kwanchai, R., Boonyarat, S., & Somchai, T. (2019). The impact of customer loyalty programs on customer retention: Evidence from Thailand. International Journal of Research in Business Studies and Management, 6(4), 1-10.
Lee, Y. J., Kim, Y. G., & Lee, J. J. (2009). The effect of cleanliness on customers' perception, satisfaction and behavioral intention in upscale hotels. International Journal of Hospitality Management, 28(4), 559-567.
Li, M., & Zhang, Z. (2018). Meta-analysis of service quality and customer loyalty in luxury hotel chains. International Journal of Contemporary Hospitality Management, 30(1), 281-302.
Maldonado, F., Orrego, R., & Rodriguez, M. (2019). The role of customer loyalty programs in fostering customer retention: A study in the Colombian retail sector. International Journal of Business and Management, 14(5), 159-168.
Ngo, T., Nguyen, T., & Pham, T. (2018). The influence of customer loyalty programs on customer retention: A study in the Vietnamese retail sector. International Journal of Marketing Studies, 10(1), 92-102.
Ogbeide, G. C., Igbinoba, E., & Odigie, P. O. (2018). Impact of customer loyalty on the profitability of deposit money banks in Nigeria. CBN Journal of Applied Statistics, 9(1), 1-28.
Ogundele, O., Olajide, O., & Olufayo, O. (2020). The impact of customer loyalty on the performance of deposit money banks in Nigeria. Open Access Library Journal, 7(3), 1-12.
Oke, A., Elegunde, A., & Gbadamosi, G. (2017). The effect of customer loyalty programs on customer retention in Kenyan supermarkets. Journal of Marketing and Consumer Research, 38, 25-34.
Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. Routledge.
Oyewobi, L. O., Anil, N., & Oluwafisayo, F. (2019). Antecedents of customer loyalty in the Nigerian retail banking sector: A proposed conceptual framework. Banks and Bank Systems, 14(3), 102-113.
Rocha, A. H., Veludo-de-Oliveira, T. M., & Perez, G. M. (2019). Consumer loyalty to retail firms in emerging markets: The case of Latin America. Journal of Retailing and Consumer Services, 48, 13-21. https://doi.org/10.1016/j.jretconser.2018.12.009
Smith, T., Jones, A., & Brown, R. (2018). The relationship between service quality and customer loyalty in luxury hotel chains. International Journal of Hospitality Management, 73, 1-10.
Tan, G. W. H., Goh, S. K., & Ang, B. L. (2019). Drivers and outcomes of brand loyalty: An empirical study in Malaysia. Journal of Retailing and Consumer Services, 46, 179-189. https://doi.org/10.1016/j.jretconser.2018.10.012
Wong, Y. A., Sohal, A. S., & Kyobe, M. (2017). The mediating role of customer satisfaction in the relationship between service quality and customer loyalty: A meta-analysis. International Journal of Quality & Reliability Management, 34(5), 712-726.
Wu, H. C., & Ko, Y. J. (2013). The effects of in-room amenities on customer satisfaction and guest loyalty in the hotel industry. International Journal of Hospitality Management, 34, 19-22.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Chande Alex
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.