The Effect of Service Quality on Customer Satisfaction and Loyalty: A Case Study of Hotel Industry in Afghanistan (Published)
The contemporary business world is very much competitive and success in the competition is achieved mainly through giving satisfaction to the ultimate consumer. In a service-oriented industry, it is very difficult to set a standard rule to satisfy customers. Several factors influence customers’ decision-making to take the service from an organization. The Hotel industry is a service industry; it provides the customer with various hospitality services. So a Hotel must be keen in identifying the factors that influence their decision to take the hospitality service. Thus the Hotel also needs to know the perception and satisfaction level of the customers about their performance. Referring to social exchange theory, the present study investigated a conceptual model SERVCUAL. The model examined the impact of service quality on customer satisfaction and customer loyalty by five dimensions of service quality. The result of this study was based on the sample gathered from 180 customers in four hotels in Afghanistan. Based on the results, this study suggested that the quality of service in hotels and its direct effect on customer satisfaction and customer satisfaction respectively has a direct and positive impact on customer loyalty.
Keywords: Afghanistan, Customer Satisfaction, Customer loyalty, hotel industry
Relationship between Hotel characteristics and Customer Loyalty Among Star-Rated Hotels in Kenya’s North Rift Region (Published)
The most crucial problem that organizations confront when the level of competition in the market rises is how to cultivate customer loyalty and increase customer lifetime value. However, because of the complexities of the competitive market, it is becoming increasingly challenging to establish and maintain consumer loyalty. Customer loyalty is anticipated to rise because of hotel characteristics. Therefore, it is necessary to assess the degree to which hotel characteristics have a positive and substantial impact on customer loyalty. As a result, this study used a cross-sectional survey of fourteen (14) star-rated hotels in Kenya’s North Rift Region to assess the association between hotel characteristics and customer loyalty. A cross-sectional research survey design was utilized to randomly choose 384 visitors among the hotel guests who stayed there between January and June 2019 using the Multi-Stage Sampling Method. The respondents were given a questionnaire, which was used to gather the data. The Cronbach’s alpha value, which has a coefficient of 0.7, was used to assess the reliability of the survey items. Expert evaluations were used to assess the validity of the questionnaire’s items. Descriptive and inferential statistics were used to present the findings. The hypothesis regarding the association between hotel characteristics and customer loyalty was tested using simple and multiple linear regression analysis. According to the study, there is a substantial correlation between hotel attributes and client loyalty, with β coefficient values of 1.079, respectively, at p < 0.05. The model’s overall significance was R = 0.830, R2 = 0.689, and P = 0.005. As a result, the study concludes that there is a strong positive correlation between hotel attributes and client loyalty. The research advises hotel owners to make their establishments accessible, get favourable star ratings, and keep expanding their business to be able to match client expectations in order to attract their patronage.
Keywords: Customer loyalty, Hotel Characteristics, Hotel Location, Star-rating
The Effect of Relationship Quality on Customer Loyalty: Evidence from Selected Banks in Kenya (Published)
One of the key marketing strategies implored by Banks is to create emotional connectivity with its customers and ultimately build a strong base of loyal clients. Loyalty will enable the banks to woo new customers through referrals whilst retaining existing ones and thus maintain a huge customer base. The banking industry in Kenya has undergone a revolution such that most bank customers are multi banked and therefore, majority of them may not have allegiance to specific banks. Available literature indicates that relationship quality has a direct effect on customer loyalty. In light of this fact, this paper examines the effect of relationship quality on customer loyalty based on a study of selected banks in Kenya. The main objective of the research was to develop and test a model that examines effect of relationship quality on customer loyalty. The study adapted a positivist approach because of the use of quantitative data. The study further utilized explanatory research design. A questionnaire was used to collect data from a sample of 309 bank customers in Nairobi, Mombasa, Nakuru, Kisumu and Eldoret who maintained bank accounts in the Kenya Commercial Bank, Cooperative Bank, NIC Bank, Diamond Trust Bank, African Banking Corporation and K-Rep (renamed Sidian) Bank. Correlation analysis was used to establish the relationship among the variables. Multiple and moderated regression analysis was used to test the hypotheses at α=.05 level of significance. Model effect size was measured using R-square. The results indicated that relationship quality and the dimensions in the study that is, commitment, communication and conflict handling, were significant in affecting customer loyalty, this is consistent with previous studies. Based on the findings it is imperative for the Banking industry to offer more personalised service, be more innovative, enhance the aspect of CRM (Customer Relationship Management) and embrace technology more at all service points as a tool to understand their customer’s holistically and provide timely information on the touch of a button. The study contributes to knowledge and theory through additional research in the field of relationship quality and customer loyalty.
Keywords: Banks’, Customer loyalty, Kenya, Relationship quality
Effect of Communication and Complaints Handling Strategies on Customer Loyalty at Almasi Beverages Limited, Kenya (Published)
Competition in business has gained a whole new dimension due to global consumerism, rapidly changing consumer buying patterns and high technological innovation. Consequently, the market players have switched focus from customer attraction to customer retention than at any other time in the recent past. Communication and complaints handling has become an area of interest to scholars, marketers and organizations operating in various sectors of the economy from which customer satisfaction and loyalty can be secured. Therefore, customer complaint management and effective communication form the decisive test of organization’s customer focus that eventually affects customer satisfaction and loyalty. In spite of the vast literature on the effect of communication and complaint handling strategies on loyalty, exhaustive empirical research has not been directed towards the retail setting in the FMCG industry. The purpose of the study was to determine the effects of communication and complaints-handling strategies on customer loyalty at Almasi Beverages Limited (ABL) in Kenya. The study was guided by the following research questions: What is the effect of communication on customer loyalty at ABL? What is the effect of the complaints-handling strategies on customer loyalty at ABL? A survey research design was employed and the target population was the Coca-Cola retailers who sold through the company-owned Cold Drink Equipment (CDEs) for over a period of three years. The sample size was 369 respondents. Data was collected through the use of structured questionnaires and content validity of the instruments was achieved by incorporating the views and recommendations of marketing experts who assessed the research instruments. Data collected was analysed through quantitative statistics and presented in charts, graphs and frequency tables. The study adopted chi-square to test the hypotheses. The findings established that effective communication and satisfactory complaint-handling strategies are vital in developing and nurturing healthy business relationships that subsequently lead to loyalty. The study concludes that when an effective communication and complaints-handling oriented program is implemented correctly, an organization begins to focus more on managing its customers rather than its products. This enables companies to establish strong performance that lead to long-term profits and increased competitive edge as result of stable partnerships. Evidently, organizations are confronted with complaining customers and despite the precautionary measures taken by an organization to avoid conflict with customers; problems are bound to occur in the relationship. Therefore, the study recommends that companies should focus effective communication and proper complaints handling in order to keep the customers delighted. One implication of this study is that companies like ABL need to have in place proper mechanisms for registering and addressing customer complaints.
Keywords: Almasi beverages, Customer loyalty, Effect, Kenya, Strategies., communication, complaints-handling