literature on customer satisfaction

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1 REVIEW OF LITERATURE This chapter attempts to review different literatures on customer satisfaction with reference to hotel industry and presents various studies made regarding the issues related with hotel industry and customer satisfaction. Customer – Definitions Paul S. Goldner (2006 1 defines! "#a customer is any organi$ation or individual with which you have done %usiness over the past twelve months&. Grigo roudi s! ' and Sisos! ) (200* 2  provide definition for +customer, upon two approaches- ith reference to loyalty! "/ customer is the person that assesses the uality of the offered products and services& and on process oriented approach! "the customer is the person or group that receives the wor output& (p.*. "ustomer means the party to which the goods are to %e supplied or service rendered %y the supplier&. Customer Satisfactio n – Definitions Satisfaction has %een %roadly defined %y 3avra! T.G. (1**4 as a satisfactory  post5purchase eperience with a product or service given an eisting purchase epectation. 7 8oward and Sheth (1*6* 9 define satisfaction as! "The %uy er,s cognitive state of %eing adeuately or inadeuately rewarded for the sacrifices he has undergone& (p.179. /ccording to est%roo and :eilly (1*; 6 ! customer satisfaction is "an emotional response to the eperiences provided %y! associated with particular 

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1

REVIEW OF LITERATURE

This chapter attempts to review different literatures on customer satisfaction

with reference to hotel industry and presents various studies made regarding the issues

related with hotel industry and customer satisfaction.

Customer – Definitions

Paul S. Goldner (2006

1

defines! "#a customer is any organi$ation or 

individual with which you have done %usiness over the past twelve months&.

Grigoroudis! ' and Sisos! ) (200*2  provide definition for +customer, upon

two approaches- ith reference to loyalty! "/ customer is the person that assesses the

uality of the offered products and services& and on process oriented approach! "the

customer is the person or group that receives the wor output& (p.*.

"ustomer means the party to which the goods are to %e supplied or service

rendered %y the supplier&.

Customer Satisfaction – Definitions

Satisfaction has %een %roadly defined %y 3avra! T.G. (1**4 as a satisfactory

 post5purchase eperience with a product or service given an eisting purchase

epectation.7

8oward and Sheth (1*6*9 

define satisfaction as! "The %uyer,s cognitive state

of %eing adeuately or inadeuately rewarded for the sacrifices he has undergone&

(p.179.

/ccording to est%roo and :eilly (1*;6! customer satisfaction is "an

emotional response to the eperiences provided %y! associated with particular 

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2

1

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 products or services purchased! retail outlets! or even molar patterns of %ehaviour

such as shopping and %uyer %ehaviour! as well as the overall maret place& (p.296.

<liver (1*;14  put forward a definition as! "the summary psychological state

resulting when the emotion surrounding disconfirmed epectations is coupled with the

consumers, prior feelings a%out the consumption eperience& (p.24.

The definition offered %y 8unt (1*44;

is "an evaluation rendered that the

(consumption eperience was at least as good as it was supposed to %e& (p.79*.

ustomer=consumer satisfaction is "an evaluation that the chosen alternative is

consistent with prior %eliefs with respect to that alternative& > ?efinition %y 'ngel and

@lacwell (1*;2* 

(p.901.

Tse and ilton (1*;;10 

define as! "the consumer,s response to the evaluation

of the perceived discrepancy %etween prior epectations (or some other norm of 

 performance and the actual performance of the product=service as perceived after its

consumption& (p.207.

@erry and Parasuraman (1**111 

argue that since customers, satisfaction is

influenced %y the availa%ility of customer services! the provision of uality customer 

service has %ecome a maAor concern of all %usinesses. ustomer satisfaction is

typically defined as a post consumption evaluative Audgement concerning a specific

 product or service.12 

Bt is the result of an evaluative process that contrasts pre5

 purchase epectations with perceptions of performance during and after the

consumption eperience.1 

<liver (1*;117 

defines customer satisfaction as a

customer,s emotional response to the use of a product or service. /nton (1**619

offers more ela%oration- "customer satisfaction as a state of mind in which the

customer,s needs! wants and epectations throughout the product or service life have

 %een met or eceeded! resulting in su%seuent repurchase and loyalty&.

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Cerchant /ccount Glossary points out that! "ustomer satisfaction is an

am%iguous and a%stract concept and the actual manifestation of the state of 

satisfaction will very from person to person and produce=service to

 produce=service.....&16

Schiffman and Danu (200714

defines customer satisfaction as "The

individual,s perception of the performance of the product or service in relation to his

or her epectations&.

oodruff and Gardian (1**61; 

define "Satisfaction! then! is the evaluation or 

feeling that results from the disconfirmation process. Bt is not the comparison itself 

(i.e.! the disconfirmation process! %ut it is the customer,s response to the comparison.

Satisfaction has an emotional component.&

/ccording to 8ung (1*44! "#. satisfaction is a ind of stepping away from

an eperience and evaluating it # <ne could have a pleasura%le eperience that

caused dissatisfaction %ecause even though it was pleasura%le! it wasn,t as pleasura%le

as it was supposed to %e. So satisfaction = dissatisfaction isn,t an emotion! it,s the

evaluation of the emotion&.1*

<liver (1*4420 

defines "Satisfaction is the consumer,s fulfilment response. Bt

is a Audgment that a product or service feature! or the product of service itself!

 provided (or is providing a pleasura%le level of consumption5 related fulfilment!

including levels of under5 or over5fulfilment&.

Some of the definitions availa%le from we% are compiled %elow- "ustomer 

satisfaction! a %usiness term! is a measure of how products and services supplied %y a

company meet or surpass customer epectation&.21 

"ustomer satisfaction is an

am%iguous and a%stract concept and the actual manifestation of the state of 

satisfaction will vary from person to person and product=service to product=service&.22

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"omparison of epectations versus perception of eperience&.2 

"/ customer,s

 perception of the degree to which their reuirements have %een fulfilled.&27

/ccording to @usiness ?ictionary! customer satisfaction is! "?egree of satisfaction

 provided %y the goods or services of a firm as measured %y the num%er of repeat

customers.&29

These definitions suggest that an evaluative process is an important element

underlying customer satisfaction.26

Hotel Industr – Definitions

Peter Eones and /ndrew Focwood (200224 

 provide a simple definition for

hotel as! "an operation that provides accommodation and ancillary services to people

away from home.&

/ccording to ?ictionary of /merican 8istory

2; 

"The primary purpose of 

hotels is to provide travellers with shelter! food! refreshment! and similar services and

goods! offering on a commercial %asis things that are customarily furnished within

households %ut unavaila%le to people on a Aourney away from home&.

8otel industry is a large and highly diverse industry that includes a wide range

of property styles! uses and ualities.2*

Peter Eones and /ndrew Focwood (2002 defines a hotel as "a! usually large!

house run for the purpose of giving travellers food! lodging etc.& urther add! "an

operation that provides accommodation and ancillary services to people away from

home.&0

<,allon and :utherford (20101

! in "8otel Canagement and <perations&

define "hospitality is the cordial and generous reception and entertainment of guests

or strangers! either socially or commercially& (p.14.

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The @uilding ode of the ity of Hew )or defines! "/ hotel shall %e taen to

mean and include every %uilding! or part thereof! intended! designed or used for 

supplying food and shelter to residents or guests! and having a general pu%lic dining5

room or a cafI! or %oth and containing also more than fifteen sleeping rooms.2

Peyton! :.C. et al (200 

in their woring paper su%mitted at the /llied

/cademies Bnternational onference presented a comprehensive review of the

literature on various ustomer Satisfaction and ?issatisfaction (S=? theories

 proposed. The literatures are specifically prior to the 1**0s. This review focuses on

the maAor components of the decision5maing process! also addresses the

measurement5related issues relevant to this %ody of literature. The paper analyses

four theories under the um%rella of consistency theory vi$. assimilation theory!

contrast theory! assimilation5contrast theory! and negative theory. Bn addition to

 presenting a review of theoretical %ases of the research in the area of consumer 

satisfaction! the paper also addresses the maAor elements of the most widely accepted

models of onsumer Satisfaction and ?issatisfaction. The authors argue that even

though the satisfaction construct has %een defined in a num%er of ways! satisfaction

has %een defined in terms of need fulfilment! pleasure=displeasure! cognitive state!

attri%ute or %enefit evaluation! and su%Aective evaluation of eperience %y many

researchers. The review concludes! "however! while researchers have used a num%er 

of different definitions for satisfaction! they generally agree that satisfaction involved

a set of inter5related varia%les rather than a single varia%le& (p.77.

3avra! T.G. (1**47 

in his %oo suggests specific programmes to improve the

measurement of customer satisfaction in an organi$ation. The author descri%es five

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critical sills reuired for this tas vi$. sampling=customer5participant selection!

uestionnaire design! interviewing=survey administration! data analysis! and uality

function deployment5%uilding action plans. The author argue that to etend the

understanding of the eact relationships preceding and following the formation of 

satisfaction! a model of satisfaction would %e very helpful. The model proposed has

three stages- antecedents! the satisfaction formation process! and conseuences. Prior 

eperience is claimed to %e the most important antecedent of satisfaction! since it

serves as a memory %an of all previous eperiences. The satisfaction process is

claimed to encapsulate a comparison of epectations with perceived performance.

'pectations are defined as the sum of %eliefs a%out the levels of attri%utes possessed

or offered %y the product or service. Bn the model presented! the concept of desires is

adopted as an influencing factor on the formation of epectations. The %ehavioural

conseuence of customer retention is claimed to %e at %est an intermediate sign that

has not immediately alienated a customer. The author further classifies the

+performance, of a product or service as +o%Aective, and +perceived,. To epound the

 %ehaviour of satisfaction as a phenomenon graphical representation is used. ive

theories of satisfaction from social psychology have %een discussed vi$. /ssimilation5

ontrast Theory! ontrast Theory! ?issonance Theory! Generali$ed Hegativity! and

8ypothesis Testing. The author has summari$ed the conseuences for satisfaction for 

all these five theories and presented in a ta%ulation form for easy comparison.

The woring paper %y Silvia igini and Paolo Giudici (20029 

study the

 possi%le methods to o%tain data to measure customer satisfaction! the possi%ilities of 

methods to analy$e the collected data! eplain methodological proposal %ased on

discrete graphical models and a novel theoretical proposal to miture different types

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of customer data information! statistical analysis of sample dataset! and in the final

chapter present the conclusions. Present two possi%le novel approach to analy$e

customer satisfaction data. The authors suggest that we% could %e the first contact for 

collection of customer satisfaction data and this method facilitates continuous

monitoring the opinion of the visitors to the site. The second contact method

identified is telephone and=or mail=email %ut this method is found to have low

response rates. inally face5to5face interview option is eplained as the intimacy can

 %e used to communicate care and concern to customers! %ut argue that this method

may have the disadvantage that customers may %e more reluctant to criticise or spea 

negatively a%out the program in a face5to5face interview than in an Bnternet! mail! or 

telephone survey.

hile eplaining measuring the level of satisfaction! the authors opine since it

can %e difficult to o%tain an eact agreement %etween the customers, opinion and the

numerical value stated! using a limited scale it would %e feasi%le to allow for a small

approimation error. urther classify concepts that are not directly measura%le as

+latent varia%les, and varia%les that can %e directly measured are called +manifest

varia%les,. The paper proposes five levels of opinions for the customers vi$. +very

unsatisfied! moderately unsatisfied! neutral! moderately satisfied! and very satisfied.

illard 8om (20006 

 presents two %roadly classified customer satisfaction

models vi$. Cacro5models! which place the customer satisfaction among a set of 

related constructs in mareting research and Cicro5models! which theori$e the

elements of customer satisfaction. The paper also gives various models of customer 

satisfaction from the perspective of the mareting research discipline. The concepts

vi$. value! uality! complaining %ehaviour! and loyalty are la%elled as +macro5models,

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The mareting research literature presented in this study etensively covers the

elements that mae up the concept of customer satisfaction vi$. disconfirmation of 

epectations! euity! attri%ution! affect! and regret. These attri%utes are grouped under 

+micro5models,.

/ccording to the author the macro5model underlies perceived performance!

comparison standards! perceived disconfirmation! satisfaction feeling! and outcomes

of satisfaction feelings. urther su%stantiates that this model highlights the concept of 

value as a driving force in produce choice and satisfaction relationship to it as a %rief 

 psychological reaction to a component of a value chain. Jnder the Cicro5model the

author lists seven models vi$. (1 'pectations disconfirmation model! (2 Perceived

 performance model! ( Horms models! (7 Cultiple process models! (9 /ttri%ution

models! (6 /ffective models! and (4 'uity models. This paper has covered a vast

 pool of mareting research in customer satisfaction and simplified the presentation %y

grouping under macro5level and micro5levels.

The study %y /le C. Sussind (20024 

eamines how the nature of service

failure together with the restaurant,s service5recovery effort influences customers,

intentions to return to the restaurant and their su%seuent word5of5mouth

communication regarding the incident and the restaurant. The study shows how word5

of5mouth communication materiali$es from service eperiences. The author argues

that the consumers evaluate the components of service vi$. food! service! and

am%ience rather than as a total picture! and the customers form an opinion for each

item individually. ord5of5mouth communication! it is argued! which relates %oth

 positive and negative evaluations of service encounters! has %een shown to influence

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other people,s purchase %ehaviour. Bn that sense! word5of5mouth communications!

which are positive! may emerge from customers! who are satisfied with the services > 

where as negative word5of5mouth communication emerges from customers who have

eperienced dissatisfying eperiences or encounters. Bt is also pointed out that

dissatisfied customers spread their dissatisfaction through word5of5mouth

communication a%out their %ad eperience and dissatisfaction to others than the

satisfied customers. The study also eamines the level of complaints regarding

service failure and remedies- Cinor service failures may solicit smaller remedies > 

where as remedies lie offering free food! discounts or coupons! or the manager,s

intervention are seen as corrections involving a high degree. urther argues that the

degree of correction is not the only element! which influences consumers, perceptions

of the recovery process. /lso it is found that negative aspects have a great influence

than the positive attri%utes on the customers, overall assessment. hen consumers

complain a%out service! they eventually form a Audgment! conseuently uncorrected

service failures create increased dissatisfaction i.e. degree of level of correction is

direction proportional to the customers level of satisfaction.

Sachin Gupta et al (2004; 

demonstrate a methodology to uantify the lins

 %etween customer satisfaction! repeat5purchase intentions! and restaurant

 performance. The authors has constructed a series of mathematical models using the

data from a national restaurant chain! that predict how the level of customer 

satisfaction with certain attri%utes of gusts, dining eperience affects the lielihood

that they will come %ac. The authors constructed two different models for this study.

The first one is to eplore the relationship of guest satisfaction with twenty5one

distinct attri%utes of the dining eperienceK the second model to eplore the

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relationship %etween restaurant performance and customers, reported lielihood to

return. The study shows how guests, "come%ac& scores and other varia%les affect

restaurant performance. The authors argue that higher customer satisfaction should

lead to increased pro%a%ility of repeat purchase! which in turn should result in greater 

restaurant sales. The study attempts to fill a gap in the empirical literature that

focuses on the restaurant sector %y lining customer satisfaction to restaurant

 performance.

'llen ?ay and Celvin :. ras (2000* 

argue that if customer satisfaction is

viewed as an outcome! then focusing discussion on its antecedents is also necessary to

effect the desired outcome. The purpose of the paper is (1 to present the synthesis of 

the value5related literatures and postulates summari$ing etant nowledgeK (2 to

descri%e the proposal to re5conceptuali$e the value assessment process in terms of 

 perceived risK and ( to present suggests for future research. The authors claim that

they are the first to suggest the lin %etween value and dissatisfaction. The authors do

not intend to imply that customers perform a formal analysis in which potential

received %enefits are compared with reuired resource ependitures! %ut claim that the

consumers consider the lielihood of "(1 a product performing the function desiredK

(2 physical harm or inAury ensuing from product useK ( gaining approval of othersK

(7 achieving a sense of self5efficacy! and=or (9 wasting money! time or effort in

maing a particular choice& (p.9;. inally the study concludes! "raming value in

terms of perceived ris not only facilitates a %etter understanding and measurement of 

value %ut also %etter ena%les the mareting manager to enhance the perceived value of 

a product or service. Bn nowing how to manipulate value the mareting manager in

turn has nowledge essential to satisfying customers& (p.9;.

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/ccording to Cohsin et al (200970 

today,s hotel guests epect uality service!

 product! atmosphere! entertainment! value for money! reuire high uality eperience

from their stay in hotel. The authors discuss the significance of service uality and

customer satisfaction! and undertae a service uality assessment of hotels in ?arwin

in the Horthern Territory of /ustralia as perceived %y their customers. The authors

further analyses and discuss the response of 17* respondents a%out their epectations

from a stay in 75star hotels. The study finds that 10 per cent of the sample epressed

degrees of dissatisfaction a%ove average and it is suggested that these complainers

may act as indicators for management. The study cites that within the literature

relating to hospitality and catering! significant attention has %een paid to issues of 

service uality. The reasons for this! the authors su%stantiate are that "ustomer 

satisfaction is a determinant of profita%ility and lie other service industries

hospitality research is focusing on the relationship %etween customer satisfaction!

repeat sales! and %usiness profits.

Faurette ?u%I and Feo C :enganathan (200071 

sums up that to develop loyal

guests! managers must give guests value during their hotel stay %y giving outstanding

service. The authors identified particularly positive aspects of the hotel stay noticed

 %y the guests as visi%le sources of customer value! and discussed these in relation to

the %usiness strategies stated in the manager,s interviews as the primary reasons for 

their success. The study focuses on specifically identifying those hotel attri%utes that

drive value in lodging purchases. or this purpose the authors have defined value as

customers, perceptions that specific hotel attri%utes have fulfilled their needs during

their hotel stay. Bt is pointed out that an effective distri%ution system that maes

rooms easily availa%le was the most freuently mentioned mareting factor driving

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 purchase! followed %y freuent5stay programmes. urther advocate that a tremendous

loyalty payoff seems to occur when a hotel creates visi%le customer value during

every stay. The findings on the attri%utes that create visi%le value are %ased on the

22 customer5respondents who reported recalling that their hotel created such value.

Bnterpersonal and functional aspects of service were also important sources of 

customer value during the hotel eperience.

Eay Dandampully and ?wi Suhartanto (200072 

conducted a research study on

the customer loyalty in the hotel industry. The o%Aective is to identify factors of 

image and customer satisfaction! which are positively related to customer loyalty in

the hotel industry. The research helps etend the understanding the relationship

 %etween customer loyalty! customer satisfaction! and image. The study identifies that

competition has three maAor implications for the customer! which provides- increased

choiceK greater value for moneyK and augmented levels of service. The authors argue

that hotels that attempt to improve their maret share %y discounting price! however!

run the serious ris of having a negative impact on the hotel,s medium and long5term

 profita%ility. The study advocates that a dedicated focal point on customer loyalty is

liely to %ecome a crucial precondition for the future survival of hotel organi$ations.

Jsing the data collected! the findings signify that hotel image and customer 

satisfaction with the performance of houseeeping! reception! food and %everage! and

 price are positively correlated to customer loyalty > whether a customer will purchase

and=or recommend. The study further illustrates that customer satisfaction with

houseeeping as the only significant factor that determines customer loyalty. This

argument is supported %y an eplanation that houseeeping! from a customer,s

 perspective! represents the core %enefit of a hotel! while reception! food and %everage!

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and price are regarded as supporting factors. The study suggests that %oth image and

customer satisfaction should %e included when measuring customer loyalty.

The study conducted %y Tat ). hoi and :aymond hu (20007 

to analyse

the levels of satisfaction among /sian and estern travellers investigates the

 perceptions a%out the service uality of 8ong Dong hotels. The study identifies seven

hotel factors out of hotel attri%utes and determines the levels of satisfaction with a

3/:BC/L rotation techniue. The o%Aectives of the study are- 1 To develop the

underlying dimensions of hotel attri%utesK and 2 To eamine the relative impact of 

the derived hotel factors in influencing the satisfaction levels of %oth /sian and

estern travellers.

Ga%%ie et al (1**677 

have conducted a study to investigate the relationship

 %etween uality service and customer epectations in the Horthern Breland hotel

industry. The study was conducted in two hotels in Horthern Breland using the

S':3MJ/F. Core specifically the paper tries to identify the service gaps. Two hotels

with different management were selected for the research study. Muestions for data

collection were %ased on the service uality gap model.

The %usiness traveller has an important segment with the hotel industry.

:oger E. hallan and Ga%rielle Dyndt (200179 

have analysed %usiness travellers,

customer satisfaction %ased on various hotel attri%utes with different categories of 

hospitality customers! especially %usiness travellers and reviewed various literatures

and surveys on hotel attri%utes. / preliminary review was made to identify the

 perceived importance of hotel attri%utes from the %usiness traveller point of view.

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The uestionnaires used for the survey was %ased on these important attri%utes. or 

the purpose of this survey! the authors %ased the selection of attri%utes on allan

(1**6 and at the same time the findings of other authors were also considered. Two

international five5star hotels were selected for this study > one from @russels and the

other from Canchester. The paper illuminates the following attri%utes as the most

important- 1 Security (* per centK 2 :eservation relia%ility (;* per centK

Muietness of room (;4.2 per centK 7 Physical condition of the hotel (; per centK

and 9 location (;1 per cent& (p.19. The study finds +location, as the most important

attri%ute for the %usiness travellers of Canchester customersK car paring was less

importanceK restaurant and food availa%ility scored middle order significance. The

study also identifies a num%er of differences in the epectations %etween the

international and @ritish %usiness traveller.

The paper %y :eginald C. Peyton et al (20076  presents a review of literature

 prior to the 1**0s related to the areas of consumer satisfaction = dissatisfaction

(S=?. Bt addresses %oth the theoretical and measurement5related issues involved in

these areas of study.

The study %y Eulie eicert et al (200674  is %ased on the concept of 

acceptance to pay etra for certain security measures provided %y the hotel. @ut

interestingly the willingness to pay for the security features decreases as the

respondent guest,s age increased. The authors claim that women were more

supportive of strong security measures than men. The study also eamines the etent

to which guests would accept increases in room rates to pay for any of these features.

urther points out that "the magnitude and location of the *=11 attac on Hew )or 

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ity deeply altered travellers, perceptions of safety. The study was %ased on responses

from *0 respondents of different category. The sample was evenly divided %etween

men and women with age group ranging from fourteen to seventy5 eight years. The

study finds that respondents were less accepting of over security measures and non5

acceptance of across5the5%oard installation of metal detectors and armed guards. The

study concludes! "8otel guests generally accept the practice of reuiring photo

identification of guests at chec5in! video surveillance in pu%lic areas! and adding

first5aid its to guest rooms. /t the same time! metal detectors! o%vious presence of an

armed guard! and checing guests, identification against law enforcement records

were generally less accepta%le.&(p.272

8alil Hadiri and Dashif 8ussain (20097; 

eamine the tolerance $one of 

customers, service and determine the level of customer satisfaction in Horthern

yprus hotels. The study was conducted at four5star! five5star and resort hotels. The

findings demonstrate that the customers, evaluation of service uality in Horthern

yprus hotels has two dimensions- tangi%les and intangi%les. The findings show the

eistence of a narrow $one of tolerance among the customers. The results also

confirm that evaluation of services can %e scaled according to two different types of 

epectations- desired and adeuate. /ccording to the outcome of the study "gap5

analysis measurement scale is an indicator for measuring customer satisfaction&

(p.24. /lso critically analyses "how mareting strategies can %e designed to

manage adeuate service5level epectations! the role of predicted service in

influencing how consumers evaluate service uality! and how the hotel industry can

use the $one of tolerance concept to formulate mareting strategies effectively&

(p.247. The study emphasi$es that the terms +satisfaction, and +uality, have %een

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central in hospitality managementK managers should eep the service level a%out the

customers, desired epectationsK and use of $one of tolerance method provides useful

information to managers for developing uality5improvement strategies.

Darnieya @udhwar (20077* 

conducted the research to evaluate the crucial

factors that would impact the restaurant,s success or failureK to identify the gaps

 %etween management,s and the customers, perceptionsK and to analyse choice of 

cuisines > mainly attri%uted to commercial customers and their %ehaviour. The study

covered 7; restaurants. The study o%serves hygiene and sanitation! location! access!

 paring and visi%ility! music! supplier,s uality consistency! food cost! design and

dIcor as important varia%les that impact the success of a restaurant. The author 

suggests that the operators need to reali$e the level of competitionK it is important to

conduct periodic surveys through customer trail mapping and other such techniuesK

the operators should reali$e the value of courteousnessK and finally the potentiality of 

we%sites as mareting should %e capitali$ed.

Eohn . <,Heill and Mu Liao (200690

! %ased on the notion that a hotel,s

 %rand contri%utes significantly to its maret value analysed the various factors and

implications. The study eamines the relationship %etween the maret value and the

 %rand effect from the investor5owner perspective. The study used /nalysis

ovariance (/H<3/ to eamine the effect. The authors opine that this was the

first study to empirically eamine the relationship %etween specific hotel %rands and

maret values. The findings show that %rand affiliations contri%ute significantly to

the variances of hotel values.

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/ccording to Pei Cey Fau et al (200991

! hotel customers, perceptions of 

service uality provided %y the hotel industry were lower than their epectations and

there eists a significant gap %etween customers, epectations and perceptions. The

survey was conducted in the Calaysian hotel industry with four5star or five5star 

ratings among the travellers who stayed at the five selected luury hotels in the Dlang

3alley! Calaysia. The primary o%Aectives of the study are- "to determine the service5

uality attri%utes that constitute fundamental service5uality dimensions in evaluating

hotel operatorsK to eamine and to compare relative importance attached %y customers

in terms of their epectations and perceptions %y type of hotels (four5star or five5star 

hotelsK and to identify the role of service uality towards customer satisfaction in the

hospitality industry& (p.74. The relationship %etween overall satisfaction levels and

the five service5uality dimensions vi$. relia%ility! responsiveness! assurance!

empathy! and tangi%ility. The study found that the hotel customers, perceptions were

consistently not meeting their epectations and that the tangi%ility factor is of utmost

importance.

Darthi Hamasivayam and Timothy :. 8inin (20092 

argue that customers

should %e allowed some sense of control over the service encounter! if not employees

should act in such a way that guests perceive as fair. The authors perceive the service

encounter tantamount to interaction initiated %y a customer %etween that customer and

a service provider. The research focuses on the importance of actual customer5

employee encounter. The authors argue that the customers are unsure whether the

service provider will provide what he=she needsK and "Bf customers sense a loss of 

control in the service encounter! they may have a variety of negative responses&

(p.2;. The authors identified four ey service5provider characteristics! which

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contri%ute to consumers, perceptions of fairness vi$. consideration! nowledge!

consistency! and impartiality. Bt is proposed! "there are +fairness, %ehaviours that

service worers can act out that affect a customer,s satisfaction and intent to

repurchase ## such employee actions may su%stitute for consumers, loss of 

 perceived control& (p.2*. The study was %ased on three hypotheses- "Those

individuals who perceived more control of the service encounter would say that they

are more satisfied with the echange and would %e more liely to patroni$e that

enterprise againK Those individuals who eperienced more fairness in a service

encounter would epress greater satisfaction and the intent to returnK hen a service

echange creates low perceptions of control! service worers, fair %ehaviour could

have a compensatory effect on the level of satisfaction and intent to repurchase&

(p.2. The results support the first and second hypothesesK all the four perceptions

(consideration! consistency! impartiality! and nowledge have significant correlation

with satisfaction. The authors insist that customers should %e made nown that they

can influence the %ehaviour of service providers.

Smith! /.D. et al (1***9 

uses a mied5design eperiment using a survey

method. The concept of the research is %ased on the notion that +customers often

react strongly to service failures! so it is critical that an organi$ation,s recovery efforts

 %e eually strong and effective,. The first o%Aective of the study is to develop a

comprehensive model of customer satisfaction with service failure=recovery

encounters. The second o%Aective was to determine the effects of specific

failure=recovery antecedents on customers, evaluations. /nd the third o%Aective was

to provide managerial guidelines for effectively responding to customers %y

esta%lishing the proper fit %etween a service failure and the recovery effort. The study

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used a model of customer satisfaction! developed %y the authors! with service

failure=recovery encounters %ased on an echange framewor. or this the authors

have preferred two different service settings vi$. +restaurants, and +hotels,. The

authors argue that "when a service failure occurs! the organi$ation,s response has the

 potential either to restore customer satisfaction and reinforce loyalty or to eacer%ate

the situation and drive the customer to a competing firm& (p.96. The authors view

that economic and social interaction %etween the customer and the organi$ation can

 %e triggered %y a service failure=recovery encounter. The findings of the research

 provide organi$ations with guidelines for developing service recovery procedures that

improve customer service and enhance customer relationships.

oring paper presented %y :ooma (200497 

enlightens that customer 

satisfaction evaluation is vital for all service firms for %etter performance in the

 present world of competition. The paper analyses whether S':3MJ/F dimensions

would %e applica%le to hotel industry and put forward some additional dimensions

 pertinent to hotel sector. The tourists visiting the tourist villages at different parts of 

the island were taen as sample for their study through open5ended uestions on their 

epectations of service uality availa%le at their hotels. The findings show that the

most important attri%ute represented in the S':3MJ/F instrument was the core

service. <ther attri%utes identified were- hotel room dIcor and cleanlinessK Bnternet

access in hotelsK uality of food and recreational facilitiesK and modern technologies!

 particularly in communication facility. The study suggests that "ays of achieving

uality service could include the administration of hotel customers satisfaction

surveys using the service uality dimensions involvedK the improvement of the level

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of service performance where needed %y filling the gaps and the management of

epectations regarding uality of service& (p.2.

Thania ?evi Euwaheer and ?arren Fee :oss (20099 

carried out a study with

the o%Aectives that "to assess the customers, epectations and perceptions of uality in

hotels of Cauritius and to identify the gap (if any %etween those epectations and

 perceptions and to identify and compare the perceptions of hotel managers who are

responsi%le for managing uality and the customers in these hotels who eperience

and Audge it& (p. 106. The study used a modified version of S':3MJ/F instrument

to assess the uality of target hotels. The survey used Fiert5type scale from 1 (very

low epectation to 4 (very high epectation. The study identifies nine service

uality dimensions with 6 varia%les. Cost of the perceptions scores were found to

 %e lower! ecept privacy to the guests and appealing promotional %rochures. The

gaps in service uality dimensions and etra5room facilities were found as largest and

smallest respectivelyK and all the nine perception scores were lower than the

epectation scores. The overall result found was that "hotels in Cauritius are not

meeting tourists, epectations& (p.10*. The study epose two o%stacles %eing faced

 %y the hospitality industry managers as- 1 "they do not now what aspects the guests

considers to %e important when evaluating the hotel eperienceK and 2 they do not

have relia%le and valid instruments for measuring service uality perceptions&

(p.112.

The research study of Cahdavinia Seyed 8essamaldin (200496 

illustrates that

tourist industries have turned into one of the most profita%le sources of income

throughout the world especially in the last decade of the second millennium. The

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research aims to investigate the customer satisfaction! in application of S':3MJ/F

model among the two! four5star hotels in Bsfahan. The findings reveal that hotel

guests, perceptions of the offered services were %elow the epected average level > an

inde indicating that none of these hotels in Bsfahan has an optimal service uality.

Grigoroudis! ' and Sisos! ) (200*94 

discuss the customer satisfaction

evaluation pro%lem. The authors provide three classifications of customers- (1 "Self5

unit customers > individuals of self unit customers with self inspection! disciplined

attitude! and a desire to ecellence! (2 Bnternal ustomers > who are personnel within

an organi$ation! and ( 'ternal customers > represented %y the %uyers or users of 

the final products and services of the %usiness organi$ation& (p.*. The authors

 present an overview of eisting methodologies and also the development and

implementation of an original method du%%ed CJS/ (Culticriteria Satisfaction

/nalysis. This method! the author claims! aims to provide an integrated set of results

capa%le of analy$ing customer needs and epectations and to Austify their satisfaction

level. The %oo also deals with customer satisfaction pro%lem! presenting the various

uantitative and related consumer %ehavioural modelsK uality5%ased approachesK the

CJS/ method and its etensions and advanced topicsK customer satisfaction surveys

and %arometersK applications of the CJS/ method in real5world customer satisfaction

surveysK and different information technology approaches related to customer 

satisfaction. inally! the %oo eamines the development of a decision support tool to

help understand and apply results and methods of measuring and implementing

service uality is intended for researchers and practitioners in mareting! uality

management! and service management.

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:i$aldi and iAaya (20069; 

analyse the five S':3MJ/F dimensions through

?isconfirmation theory. The theory of disconfirmation has %een used to eplain the

formation of customer perceived service uality and satisfaction. /ccording to this

theory! service uality and satisfaction result from how well the actual service

 performance! in other words! the service process and outcome! matches the

customer,s epectations. Thus epectations and their management are of great

significance to perceive service uality and satisfaction. The idea of disconfirmation

has its root in 8elson,s adaptation level theory! which suggests that states of 

satisfaction=dissatisfaction result from a comparison %etween one,s perception of 

 product performance and one,s epectation level. /ccording to widely accepted

opinion in service research! customer perceived service uality results from how well

customer epectations match actual eperiences of the service. /nd so! %ased on the

disconfirmation theory! the writers conducted a set of research upon Bntrapura

:estaurant! located at the heart of /msterdam. To gain the level of customer 

satisfaction through the customer epectation and customer perception level of 

Bntrapura,s service uality. The writers used five dimensions of S':3MJ/F vi$.

tangi%le! relia%ility! responsiveness! assurance! and empathy.

Fovaglio (20019* 

critically analyse the satisfaction of consumers towards

 products=services offeredK in the evaluation of services the conceptual models

 proposed for the indirect estimate of the S go %ac to the theory of gaps %etween

service and those perceived! separately for the five fundamental dimensions of 

S':3MJ/F. The aim of the paper is to propose a general model to estimate latent

varia%le customer satisfactions! which manifest categorical varia%les. The approach

amalgamates all the availa%le information a%out customer satisfaction in the structural

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models specified in the ustomer Satisfaction @arometer (S@ and /merican

ustomer Satisfaction Bnde (/SB models with gap theory of S':3MJ/F.

<fer 8. /$ar 60 

analyses whether tipping would improve service uality and

increase economic efficiency! as tips are incentives to provide %est service and

conseuently allows avoiding costly supervision of worers. The study argues that

the common notion is wrong. The author illuminates the reasons for the increased

interest in tipping is that the concerned firms %enefit from %etter understanding of 

various issues related tipping. Secondly! tipping has %ecome a social norm and a form

of consumer %ehaviour. The author claims that this was the first article to epose the

inconsistency %etween the two maret characteristics! i.e. tips are hardly affected %y

service uality and service uality is raned as %eing high %y customers. The study

concludes that tips are not directly proportional to service uality and additional

measures should %e employed to warrant good service uality.

Eonathan Fee et al (200661 

have studied the word5of5mouth (<C and the

customer lifetime value (F3. The study is %ased on the concept that measuring the

customer value and mareting effect with reference to direct financial contri%utions

carries a potential ris of misleading the mareting managers. The study empirically

investigates the effect of <C in estimating F3. ?ata was collected from 1!7*

customers through survey and transaction measures using a 105point scale. The

survey was inclusive of level of customer overall satisfaction and <C! i.e.!

willingness to recommend. The authors incorporated the <C effect in estimating

F3 and argue that if direct financial contri%utions are alone incorporated in F3

estimation! companies run the ris of missing the latent aspect of customer value and

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thus there eists a possi%ility to misAudge customers, true lifetime value. Bt is

advocated that the indirect effects of <C should also %e evaluated to maimise the

lifetime value of customers and %ased on this investments can %e made accordingly to

augment the customers, attitude to generate positive <C.

@arry ohen (1**462 

writes that the term +<, effect was coined %y him

which encompasses all the efforts that are %eing taen %y the hotel,s=restaurant,s top

management to eep the customers and employees fresh and eciting. The article

discusses the five < aspects vi$. < yourselfK < your employees- <

your customersK < your communityK and < your competition. The first

aspect < yourself concerns a%out the manager,s should have an environment to

thin as strategists and futurists and to < themselves with creative ideas. The

second aspect! < the employees is nothing %ut empowerment of employees

through financial and psychological ownership. The third factor! < your 

customers is eplained %y the author as doing things the right way! and it applies Aust

as much to service as to food. < your community! which is the fourth factor is

the effective community reach i.e. learning a%out the diverse communities! their needs

etc. /nd finally! < your competition through innovative ideas and concepts i.e.

not copying the successful new ideas that is usually %eing followed in the maret.

Thayne orges (20046 

through his woring paper on 3aluing ustomers

argue that one of the important intangi%le assets of any %usiness is the value of 

customers. The fundamental methodologies for valuing customers are eplained and

their limitations are also considered. The value of customer is %roadly defined as +the

value that customers generate for the %usiness, and alternatively! the +value of 

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relationship, The study suggests that Porter,s value chain can %e used to analyse how

customer relationships create value. The author claims that there are delicate

differences using %rand value as a su%stitute for the value of customer even though

they seems to appear similar. The study suggests the following common approaches

for valuing the customer related intangi%le assets- 1 ost approachK 2 Caret

approachK and Bncome approach. The cost approach is %ased on the level of cost to

 %e incurred to create value. The second approach measures the open maret

epenses! while the income approach is %ased on the level of income the asset would

generate. The study also illustrates the limitations of all the three approaches. The

cost approach is distorted %y time value of money and the evolvement of the

competitive environment. The availa%ility of sufficiently compara%le transactions is

identified as the primary weaness of the maret approach. The income approach is

complicated to carryout. The study concludes that since customers are the reason for 

the eistence of a %usiness! sill for managing their customers profita%ly is crucial.

8olAevac! B./. et al (200067 

in their woring paper argue that one of the

 %iggest contemporary challenges of management in service industries is providing and

maintaining customer satisfaction. The study eamines hotel Guest omment ards

(Gs and customer satisfaction management schemes in 29 hotels in <patiAa,s!

through the +/pplied content analysis, approach proposed %y 8orsnell (1*;;. The

authors argue that though several tools are availa%le for measuring customer 

satisfaction in hotels! one of the most popular is Guest omment ard. They

su%stantiate that this method has the advantages of small si$e! easy distri%ution! and

simplicity. The G checlist consisted of 2 categories which were grouped under 

five general areas of analysis vi$. (1 focus and management value of G attri%utes!

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(2 G attri%ute measurement techniues! ( G measure of overall customer 

satisfaction and loyalty! (7 G mareting measures! and (9 effective layout of 

uestions. The study com%ines an analysis of customer satisfaction management

schemes and Gs content analysis in the selected hotels. The authors conclude that

efficiency of customer satisfaction measurement with Gs! depends on the

measurement methodology and valua%le information for management decisions

regarding a hotel,s offering can %e o%tained only through relia%le and valid data.

The paper presented %y Sutanto (200*69 

at the Bnternational Seminar on

Bndustrial 'ngineering and Canagement %uilt the model of customer satisfaction on

the %asis of survey and choice data collection %y interviews. The outcome of the

study reveals that full service hotel owners and managers should focus on the

following three maAor elements of service uality- technical or outcome dimension!

functional or process related dimension! and corporate image. The result highlights

that the varia%le technical or outcome dimension of service uality was most

important to customers. The author argues that the model used for assessing customer 

satisfaction in the full service hotel industry is a useful one. The study suggests that

"hotel owners! who truly want to gain a competitive edge! must continually strive to

increase the levels of customer satisfaction %y emphasi$ing the three significant

factors discerned in this study (mentioned a%ove as suggested %y the transaction5

specific model& (p. /.112.

:oya :animi (200466 

 presented a thesis on the feasi%ility study of ustomer 

:elationship Canagement (:C application in hotel industry. The research study

was conducted on the contet that with increased glo%ali$ation! competition! higher 

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customer turnover! growing customer acuisition costs and rising customer 

epectations in today,s competitive word! :C is very important for companies. The

scholar argues that the study emphasi$es application of :C in hotel industry %rings

increase in the rate of retention! increase revenue and profita%ility! reduce internal

costs! reduce mareting costs! improving customer services! create positive word of 

mouth! maret growth! improve mareting methods! streamlines %usiness process! and

finally protects mareting investment and maimi$e returns. The study outlines the

four "P&s! reuired for a successful :C initiative- Profiles! Preferences! Precision!

and Property and points out +management commitment to em%racing :C as a way

of doing %usiness as the fifth most important element and su%stantiate this argument

that without deep and confirmed leadership! this ind of initiative will go nowhere.

The study finds that customer satisfaction will cause customer loyalty and retentionK

customer retention is important for %usiness and customersK successful

implementation of :C will increase rate of retention! increase in revenue!

 profita%ility! reduction in internal costs! reduction in mareting costs! positive word of 

mouth! %etter understanding of customer reuirements! and higher employee

 productivity and concludes that all these %enefits for a hotel can %e a source of long5

term and sustaina%le competitive advantage.

Calthouse! '.. et al (20064 

eamine customer satisfaction across

organi$ational units in their woring paper. The research paper discusses various

customer satisfaction models for assessing the relationship of overall satisfaction with

a product or service and satisfaction with specific aspects of the product or service for 

organi$ations having multiple units or su%units. The study critically eamines

whether the drivers of overall satisfaction vary across such units and if so! proposes

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how additional varia%les can %e included in a model to account for the variation. The

research eamines the hypotheses that different su%units within an organi$ation or 

industry may show different relationship %etween specific aspects of satisfaction and

overall satisfactionK in other words! there may %e different utilities for the specific

aspects of satisfaction. The authors argue that variation in the specific5general

satisfaction relationship across organi$ational su%units also has important theoretical

implications for satisfaction research and stress the importance of eplaining the

variation effects across units or su%units. i.e. for one su%unit! some specific type of 

satisfaction may %e strong predictor of overall satisfaction! while for another su%unit

the same specific type of satisfaction may have little or no relationship to overall

satisfaction. The study assumes pre5defined su%units. urther illuminates that the

attri%utes can have different satisfaction implications for different customer and

maret segments. The study concentrates on newspaper and healthcare industries.

or each of the industries! etensive case studies had %een developed through

measures of overall satisfaction and satisfaction with specific attri%utes. The study

indicates the need for richer theoretical hypotheses including more varia%les and also

the utility of methodology used for studying the variation in effects across su%units.

The authors epound with appropriate illustrations to highlight the situations where

there is no significant variation across su%units as well as situations where such

variation eists.

 Husair et al (20106; 

in their study investigated the effects of price discount

frames and price discount levels on consumer perceptions a%out the uality of the

service product! the value of the discount! their purchase intentions etc. The research

study included restaurants! hotels! mailing service! and retail services. The study

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showed that price discount frames and discount levels do affect consumers,

 perceptions on the value of the discount and the uality of the service.

Peter Eones and Cichael ?ent (1**76* 

had conducted a research study on the

customer attitudes to waiting times in the hotel and restaurant industry %ased on

Caister,s "Psychology of aiting Fines&. The study was conducted with a sample of 

100 customers > show that customer %ehaviour is affected %y the length of time they

have to wait. The study compares customer attitudes and the firm,s a%ility to deliverK

eplains specific eamples of developments in service systems design and delivery in

 %oth hotels and restaurants.

enAing Shang and Heal 8. 8ooer (200640 

in their woring paper use

survey data to determine consumer preferences among a set of four alternative food

la%els which report such plant level performance scores. The authors study the

 product la%el reports of food producers, hygiene performance and eplore consumer 

 preferences for the +right, amount of information and how to present this information.

The authors carried out the study to verify the following hypotheses- 1 Bn terms of 

 presentation format! consumers prefer num%er system than other visual or ver%al

systems! 2 /mong the three different levels of information volume sets! consumers

don,t always prefer the largest volume set! and Ho matter what their preferences

are! consumers are consistent with their information volume preferences. The survey

was carried out through mail.

Eessica Salver (200*41 

in her %oo traces out the lin %etween the %rand name

and the customer loyalty. The maAor o%Aective of this wors is to eamine the concept

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of %rand management! to adapt and apply it to hotel services! since! the author argues!

customer loyalty is a hot topic in today,s ultra competitive %usiness environment. The

second o%Aective of this study is to determine the connection %etween these two

concepts and to investigate the %eneficial effects of %randing hotel services for the

 process of esta%lishing loyalty. The author cites that the original idea of using mars

to indicate ownership and origin can %e traced %ac even for millennia to ancient

Gree and :ome and early hinese dynasties. Core and more %usinesses have come

to reali$e the power and important of %rands and the concept of %rand management

has conseuently gained considera%le interest in recent years. The author further 

advocates that the hotel industry > along with many other services > is lagging %ehind

manufactured goods %y decades and nonetheless! there are great potentials for %rand

management in the service industry in general and the hotel industry in particular. /s

the hotel industry differ from physical goods in many ways! it is vital to eamine the

concept of %rand management > to adapt and apply to hotel industries. The author 

further argues that as competition eeps intensifying at steady pace! resulting in a

surplus of capacities! the importance of maing guests return %ecomes a critical issueK

it is said that %rands provide the opportunity to encourage the creation of loyalty

among consumers.

:esearch study %y Helson Tsang and 8ailin Mu (200042 

analyses the

 perceptions of service uality in hina,s hotel industry from the perspective of %oth

international tourists and hotel managers. The sample contained *0 hotel managers

and 240 international tourists! stayed at various hotels in @eiAing! Shanghai! and

Guang$hou. The study was conducted with the following o%Aectives- 1 To assess the

current epectations and perceptions held %y international tourists with respect to the

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uality of services and products provided %y the hotel industry in hinaK 2 To assess

the current epectations and perceptions held %y hotel managers in hina with respect

to uality of hotel service and products providedK and To identify any gap %etween

the perceptions of tourists and hotel managers! with respect to the uality of hotel

service and products provided. The study advocates- "The gaps %etween tourists and

hotel management could %e %ridgedK there is room for service uality improvement in

the hotel industry in hinaK managers are too self5assured and somewhat o%livious to

their failings in delivering what tourists epectK and therefore! the necessary first step

in improving the service uality is for managers in the hotel industry in hina to

acuire accurate information a%out the driving forces&.

'dwin H. Torres and Sheryl Dline (20064 

in their article! see to develop a

managerial model! which would assist in the successful management of customer 

relations. Their study descri%es the concepts of satisfaction and delightK their 

 %acground and potential outcomes.

Ciguel Bgnacio Gome$ et al (20047 

conducted a study to measure the lins

 %etween store attri%ute perceptions and customer satisfaction! and %etween customer 

satisfaction and sales performance in food and retail sector. The study includes the

measurement of compleities of the satisfaction5sales performance lins %ased on

empirical model of first differences. The study epounds that customer satisfaction is

vital to the creation of a successful %usiness strategy. The study cites that /nderson

and Sullivan (1** addressed the simultaneous estimation of antecedents to and

conseuences of customer satisfaction. Their model identifies factors that determine

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customer satisfaction! which in turn have a positive association with financial

 performance.

Stephen @all et al (200449 

 present a detailed historical development of the

Bndian hotel sector. The authors claim that the Bndian hotel sector is in a period of 

rapid growth and change %ecause of the rapid epansion of %usiness activities! which

is the result of the fast growing Bndian economy. The %oo illustrates that there were

a%out 19!000 tourist5arrivals in Bndia in the 1*90s! followed %y a %oom in 1*;6 with

an inflow of a%out one million tourists. The %oo further claims that tourism and

hospitality industry in Bndia employs 29 million people and this will grow to 100

million people in the net 29 years and Bndian hotel industry accounts for 90 per cent

of all foreign echange in Bndia thus has %ecome an economic importance. The

authors point out that there is a mismatch of supply and demand in certain areas of the

hospitality industry in BndiaK wea la%our maret is characterised %y ecess la%ourK

and the current curriculum offered %y universities on hospitality education does not

address the glo%al issues.

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