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International Journal of Management (IJM)
Volume 7, Issue 7, November–December 2016, pp.336–343, Article ID: IJM_07_07_037
Available online at
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ISSN Print: 0976-6502 and ISSN Online: 0976-6510
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CUSTOMER SATISFACTION WITH REFERENCE TO
INDIVIDUAL SPENDING PATTERN ON HOTEL
INDUSTRY: A CASE STUDY FOR HOTEL SILVER
PALACE
P.A Anawade
Research Scholar North Maharashtra University, Jalgaon, & Assistant Professor,
Department of Business Administration, College of Engineering & Technology,
Bambhori, Jalgaon-425001, Maharashtra.
Prof. Dr. Shilpa k. Bendale
Professor & Head, Department of Management,
KCE’s College of Engineering & Technology, Jalgaon-425001, Maharashtra.
ABSTRACT
Hotels and tourism industry are the biggest earners of the foreign exchange in India. Hotel and
tourism Industry is the strong base to increase the GDP of Indian economy. The idea behind this
study was to measure the level of customer satisfaction with respect to the hotel industry. Hence
researcher has taken a case study of silver Palace of Jalgaon city in Maharashtra. This paper gives
an idea about analysis of importance of customer satisfaction. The study was carried out with the
help of quantitative research by using questionnaire & it was designed on keeping in mind the basic
of customer satisfaction.
Based on the research results it is concluded that, the level of customer satisfaction for silver
Palace would be judged above average which is quite good. Although the majority of customers were
satisfied with the overall service quality of the hotel, some areas for improvement were found. It is
recommended that silver Palace should improve on variety of menu, space for parking, vehicle
facility for the tourists etc.
Key words: Customer Satisfaction, Hotel Industry, Service Quality & Potential Customers
Cite this Article: P.A Anawade and Prof. Dr. Shilpa k. Bendale, Customer Satisfaction with
Reference To Individual Spending Pattern On Hotel Industry: A Case Study For Hotel Silver
Palace. International Journal of Management, 7(7), 2016, pp. 336–343.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=7&IType=7
Customer Satisfaction with Reference To Individual Spending Pattern On Hotel Industry: A Case Study For Hotel
Silver Palace
http://www.iaeme.com/IJM/index.asp 337 editor@iaeme.com
1. INTRODUCTION
A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on
him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He
is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity
to do so. – Mahatma Gandhi
Customer is the most important factor of every service industry. If the customer is satisfied with the
service you provide to
THEM
, then definitely they will not only retain but also they will help you to increase
your business by word of mouth publicity. Hence customer satisfaction is now a day’s become more
important.
1.1. Customer Satisfaction is nothing but the outcome of a cognitive and effective evaluation, where some
standard expectation is compared to the actually perceived performance. If the perceived performance is less
than expected, customers will be dissatisfied. On the other hand, if the perceived performance exceeds
expectations, customers will be satisfied.
1.2. Concept of hotels
Service sector has increasingly been considered as an important sector, making up the majority of the
economies, in particular those of advanced nations. Providing quality service improves satisfaction of
customers and this is believed to lead to the increased customer loyalty to the firm, repeat purchases of the
same products, and long-term relationship commitment. Service quality has become an important aspect now
a days in hotel industry. It is obvious that, customers who are satisfied help to spread the positive word-of-
mouth publicity to recommend the hotel to their friends, colleagues and relatives. Thus it becomes walking,
talking advertisements for hotel owners and service providers. thus it indirectly helps to lower the cost of
attracting new customers. Satisfied customers tend to buy more, to be less price conscious, and to generate
the positive word-of-mouth recommendations
1.3. About Hotel Silver Palace
Hotel Silver Palace is the fastest growing Hotel Group in area of Khandesh. The group was introduced in
the year 1981 in Jalgaon, Maharashtra. Hotel Silver Palace is known as the place with a splendid decor
discernible fresh new looks of grandeur. To serve delectable delicious and to offer immaculate hospitality in
those who prefers to luxuriate a midst fabulous ambiance.
The Head of the Hotel Silver Palace Mr.Bhagvat Bhangale has a strong experience of hotel industry. He
has established many hotel brands in the area of khandesh. Now the young generation of the group has come
ahead to take responsibilities to make the hotel business much strong and expand it to many destinations.
The group is expecting an extraordinary change for better customer oriented services and facilities in the
regards.
1.4. Facilities Provided In Silver Palace
Posturepedic king size beds Stylized Interiors with World-Class
Furniture
In-Room safety locker Bottled Water
32" LCD TV with USB port Light Finished decor for Personalized
Touch
High Speed Broadband Connectivity Round the Clock in-room-dining service
Air Conditioning Custom Duvets
Laundry, Dry Cleaning & Ironing services Cotton rich Linens
Complimentary in-Coffee house breakfast Mini Fridge
Hair Dryer Pillows : Down/ Feather
P.A Anawade and Prof. Dr. Shilpa k. Bendale
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2. CURRENT SCENARIO OF HOTEL BUSINESS
Now days it is observed that, successful hotel management is experiencing the increased competitive
pressures as a consequence of the combined effect of the globalization, economic political integration
tendencies, consolidation, and growing supply in emerging and mature tourist destinations, and actually local
small and medium-size enterprise cannot escape from facing this competitive pressure. Therefore, hotels
have to strive to deliver to their guests with quality products and services. Hotels that provide superior service
quality are likely to be successful in enhancing guest satisfaction and loyalty. So quality and customer
satisfaction are the cornerstone for success in any business, and are perceived as key factors in acquiring and
sustaining competitive advantage, retaining the existing customers and attracting the new ones, creating long
term profitability as well as improving living standard of employees in organizations.
One of the biggest contemporary challenges of management in service industries is providing and
maintaining customer satisfaction. Service quality and customer satisfaction have increasingly been
identified as key factors in the battle for competitive differentiation and customer retention. (Lam, 1999)
claim that overwhelming customer demand for quality products and service has in recent years become
increasingly evident to professionals in the tourism and hotel industry.
Among all customer demands, service quality has been increasingly recognized as a critical factor in the
success of any business (Gronoos, 1990).
During the past few decades, customer satisfaction and service quality have become a major area of
attention to practitioners and academic researchers. Both concepts have strong impact on business
performance and customer behavior. Service quality leads to higher profitability. Following are the factors
of customer’s satisfaction.
3. LITERATURE REVIEW
Attracting new customers alone is insufficient, as the management must concentrate on preventing
"customers-exit" since the cost of attracting new customers is higher than the cost of retaining existing
customers. The key to customer’s retention is customer satisfaction and loyalty which is largely dependent
upon the service quality offered by the hotels. Guests' perceptions are moderate in service delivery and
tangibles in hotel industry whereas it is very poor on empathy and responsiveness factors (Vijayadurajrai,
2008).
Customer satisfaction is a business philosophy which tends to the creation of value for customers,
anticipating and managing their expectations, and demonstrating ability and responsibility to satisfy their
needs. Qualities of service and customer satisfaction are critical factors for success of any business (Gronoos,
1990).
Customer expectation is the difference between the expectations of the customers before receiving the
services and perceptions of the customers after receiving the services. Customer satisfaction mainly depends
on the build-up of the perceived value to which the customers have concerning a product or service (Kotler
and Armstrong, 2004; 2009)
Hotels are increasing their investments to improve service quality and the perceived value for guests so
as to achieve better customer satisfaction and loyalty, thus resulting in better relationships with each
customer (Jones D.L, 2007)
Customer satisfaction plays the most important role in total quality management. In comparison with
other traditional performance measures, customer satisfaction is probably less sensitive to seasonal
fluctuations, changes in costs, or changes in accounting practices (Kotler, 2006). The service providers thus
need to augment their services in such a way that they meet the expectations of the customers at desired
levels. The service providers need to enhance their services from time to time to meet the changing global
scenario (Dr. DilPazir & InshaAmin, 2015).
Customer satisfaction is typically defined as a post consumption evaluative judgement concerning a
specific product or service (Gunderson M.G, 1996). It is the result of an evaluative process that contrasts
Customer Satisfaction with Reference To Individual Spending Pattern On Hotel Industry: A Case Study For Hotel
Silver Palace
http://www.iaeme.com/IJM/index.asp 339 editor@iaeme.com
repurchase expectations with perceptions of performance during and after the consumption experience
(Oliver R.L, 1980).
The most widely accepted conceptualization of the customer satisfaction concept is the expectancy
disconfirmation theory (J.D.Barsky, 1992). The theory was developed by (Oliver R.L, 1980), who proposed
that satisfaction level is a result of the difference between expected and perceived performance. Satisfaction
(positive disconfirmation) occures when product or service is better than expected. (Homburg, 2007)
concluded that customer satisfaction positively affects business profitability. The majority of studies have
investigated the relationship with customer behaviour patterns increases customer loyalty; influences
repurchase intentions and leads to positive word-of-mouth.
4. RESEARCH METHODOLOGY
On the basis of non probability sampling a sample of respondents has been generated followed by the
convenience sampling technique. Questionnaire was distributed to hotel visitors at the end of their stay and
hoteling. As such, the customers were able to evaluate their level of satisfaction. The questionnaire was
focused on the concepts like: overall customer satisfaction, customer loyalty, service quality. Service quality
is measured along five dimensions: physical quality, food quality, staff behaviour, responsiveness and
overall service quality. Also, personal information from the respondents is gathered at the beginning of the
questionnaire. As already mentioned above, the main purpose of this study is to investigate the level of
service quality, customer satisfaction and customer loyalty in hotel Silver Palace
The purpose of this study is to examine the satisfaction level of customers of hotel silver palace. In order
to study this, the information was collected and analyzed. The customer survey was made November 2016.
This study majorly focuses on the service provided by the Silver palace and the amount of satisfaction of the
customers as well as their perceived demand to be fulfilled by the hotel.
5. OBJECTIVES
1. To study the customer satisfaction towards hoteling in Hotel Silver Palace of Jalgaon.
2. To identify the service lapses and suggests various strategies to improve the service quality so as to increase
the retention of the customers.
6. DATA COLLECTION
In this study the researcher has collected both, the primary and secondary data. The primary data are collected
in a from of questionnaire. A Likert scale was adopted with options from strongly agree to strongly disagree,
whereas 1 refers to highly dissatisfied, 2 for satisfied, 3 for neither satisfied nor dissatisfied, 4 for satisfied
and 5 for highly satisfied. The questionnaires were distributed among customers. It took too much time
because some customers did not want to fill up the questionnaire and some customers were busy in their
Schedule. However, with the co operation of the manager of the hotel the data was collected.
6.1. Sample Size
In order to collect the information from the customers of the silver palace, author has personally distributed
the 130 structured questionnaires. Out of it 118 questionnaire were filled correctly and 100 questionnaire
were taken as a sample which is of 84.75%. Authors have followed a convenient sampling method to collect
this information
Out of the 100 respondents 70 were males and 30 were females. Researcher has framed a questionnaire
contains around 20 questions. Questionnaire has divided into the two sections. Section-I is including with
Personal information of the consumer and Section-II is about the customer satisfaction indicators
P.A Anawade and Prof. Dr. Shilpa k. Bendale
http://www.iaeme.com/IJM/index.asp 340 editor@iaeme.com
7. DATA ANALYSIS AND FINDINGS
After the survey, the researcher has conducted the analysis and revealed the information about the
satisfaction level of the customers with respect to following factors;
• No of visits customers have made during the past one year
• Quality of service and food at the hotel.
• Opinion about the cleanliness & overall maintenance at the hotel.
• Behavior of the staff.
The details of variables are categorized as Demographic variables, Food and Services provided and
rates/tariffs of the dishes and rooms respectively. They are summarized as follows
Table 1 Demographic variables and No. of Respondents
Sr. No. Variables Category % Respondents
1 Gender Male 70
Female 30
2 Age
Below 20 15
20 - 30 20
30-40 15
40 & Above 50
3 Marital status Married 70
Unmarried 30
4 Overall Income
5000-20000 10
20000-40000 25
40000-60000 30
60000 & Above 35
5 Avg. No. of times of Hoteling in a Month
1 65
2 25
3 5
More than 3 5
6 Avg. Spending on Hoteling in a Month
Up to Rs. 2000 72
Rs. 2000-4000 20
Rs. 4000-6000 6
Above Rs. 6000 2
Interpretation
From the above table no 1 of variables it is observed that, 70 % of the respondents are males and 30% are
females. 15% of the respondents are belongs to the age group of below 20, 20% respondents from age group
of 20 to 30. 15% respondents from the age group of 30 to 40 and 50% of the respondents are from the age
group of 40 and above. 70% of the respondents are married while as 30 % are unmarried. 10 % of the
respondents fall in the income group of 5000 to 20000, 25% fall in 20000 40000, 30% respondents are from
income group of 40000 to 60000, and 35 % of the respondents fall in the income group of above 60000. 65%
of the respondents visits the hotel once in a month, 25% respondents visits min twice in a month, 5%
respondents visits around 3 times to hotel silver palace and 5% of the respondents visit for more than 3 times
in a month. As far as avg. spending on hoteling is concern, 72% of the respondents are having spending
around Rs. 2000, 20% of the respondents spending is Rs. 2000 to 4000, 6% respondents spends around Rs.
4000 to 6000. Only 2% of the respondents spends above Rs 6000 on hoteling.