Antecedents of Customer Loyalty in the Malaysian Hotel Industry
DOI:
https://doi.org/10.31686/ijier.vol3.iss8.415Keywords:
perceived service quality, perceived value, customer satisfaction, corporate image, trust, customer loyaltyAbstract
Creating and maintaining customer loyalty is critical for the sustainability of a hotel in a competitive environment. This research aims to examine factors that influence customer loyalty in the Malaysian hotel industry. Quantitative research approach has been adapted in this research by distributing questionnaires to 200 respondents at Kuala Lumpur International Airport (KLIA) during the survey period. Findings of this research have discovered that perceived service quality, perceived value, customer satisfaction and corporate image are the significant factors in predicting customer loyalty. Trust, on the other hand is not significant in predicting customer loyalty in the hotel industry in Malaysia. Findings of this research provide hotel operators with a better understanding on factors that could lead to customer loyalty, which subsequently will enable them to direct effective hotel services strategies to enhance their long-term business growth by building up a strong and loyal client base.
References
Abbasi, A. S., Khalid, W., Azam, M. and Riaz, A. (2010), “Determinants of Customer Satisfaction in Hotel Industry of Pakistan”, European Journal of Scientific Research, Vol.48, No.1, pp. 97-105.
Ali, F., and Amin, M. (2014), “The Influence of Physical Environment on Emotions, Customer Satisfaction and Behavioural Intentions in Chinese Resort Hotel Industry”, Journal of Global Business Advancement, Vol. 7, No. 3, pp. 249 - 266. DOI: https://doi.org/10.1504/JGBA.2014.064109
Ali, F., Omar, R., and Amin, M. (2013), “An Examination of the Relationships between Physical Environment, Perceived Value, Image and Behavioural Intentions: A SEM Approach towards Malaysian Resort Hotels”, Journal of Hotel and Tourism Management, Vol. 27, No. 2, pp. 9 - 26.
Anderson, H., and Jacobsen, P. (2000), “Creating Loyalty: Its Strategic Importance in Your Customer Strategy”, John Wiley: Ontario, Canada.
Baker, D.A., and Crompton, J.L., (2000), “Quality satisfaction and behavioural intentions”, Annals of Tourism Research, Vol.27, No.3, pp.785 – 804. DOI: https://doi.org/10.1016/S0160-7383(99)00108-5
Ball, D., Coelho, P. S., and Machás, A. (2004), “The role of communication and trust in explaining customer loyalty: An extension to the ECSI model”, European Journal of Marketing, Vol.38, No.9/10, pp.1272 – 1293. DOI: https://doi.org/10.1108/03090560410548979
Balmer, J. M. T. (1998), “Corporate Identity and the Advent of Corporate Marketing”, Journal of Marketing Management, Vol.14, No.8, pp. 963 – 996. DOI: https://doi.org/10.1362/026725798784867536
Bennet, R., & Rundle, T. S. (2004), “Customer Satisfaction Should Not Be the Only Goal”, Journal of Service Marketing, Vol.18, No.7, pp. 514 – 523. DOI: https://doi.org/10.1108/08876040410561848
Bowen, J. T., and Chen, S. (2001), “The Relationship between Customer Loyalty and Customer Satisfaction”, International Journal of Contemporary Hospitality Management, Vol. 13, No. 4, pp. 213 – 217. DOI: https://doi.org/10.1108/09596110110395893
Brady, M. K., and Cronin, J. J. Jr. (2001), “Some New Thoughts on Conceptualising Perceived Service Quality: A Hierarchical Approach”, Journal of Marketing, Vol. 65, pp. 34 – 49. DOI: https://doi.org/10.1509/jmkg.65.3.34.18334
Brown, T. J., Dacin, P. A., Pratt, M. G., and Whetten, D.A. (2006), “Identity, Intended Image, Construed Image and Reputation: An Interdisciplinary Framework and Suggested Terminology”, Journal of Academy of Marketing Science, Vol. 34, No. 2, pp. 99 -106. DOI: https://doi.org/10.1177/0092070305284969
Carvalho, M. (2011), “Malaysia Bound To Be Top Five Destination by 2020” (online) (cited 13 August 2015). Available from http://thestar.com.my/news/story.asp?file=/2011/10/18/nation/20111018070850&sec=nation
Cheng, B. L., Mansori, S., and Cham, T. H. (2014), “The Associations between Service Quality, Corporate Image, Customer Satisfaction, and Loyalty: Evidence from the Malaysian Hotel Industry”, Journal of Hospitality Marketing & Management, Vol. 23, No. 3, pp. 314 – 326. DOI: https://doi.org/10.1080/19368623.2013.796867
Cheng, B. L., and Zabid, M. A. R. (2013), “Service Quality and the Mediating Effect of Corporate Image on the Relationship between Customer Satisfaction and Customer Loyalty in the Malaysian Hotel Industry”, Gadjah Mada International Journal of Business. Vol. 15, No. 2, pp. 99 - 112. DOI: https://doi.org/10.22146/gamaijb.5474
Choi, T. Y., and Chu, R. (2000), “Levels of Satisfaction among Asian and Western Travellers”, International Journal of Quality & Reliability Management, Vol. 17, No.2, pp.116 – 132. DOI: https://doi.org/10.1108/02656710010304537
Choi, T. Y., and Chu, R. (2001), “Determinants of Hotel Guests’ Satisfaction and Repeat Patronage in the Hong Kong Hotel Industry”, International Journal of Hospitality Management, Vol. 20, pp. 277 – 297. DOI: https://doi.org/10.1016/S0278-4319(01)00006-8
Delgado, N. E., and Munuera, A. J. L. (2001), “Brand Trust in the Context of Consumer Loyalty”, European Journal of Marketing, Vol. 35, No.11/12, pp.1238 – 1258. DOI: https://doi.org/10.1108/EUM0000000006475
Dominici, G., and Guzzo, R. (2010), “Customer Satisfaction in the Hotel Industry: A Case Study from Sicily”, International Journal of Marketing Studies, Vol. 2, No. 2, pp.3 – 12. DOI: https://doi.org/10.5539/ijms.v2n2p3
Edwin, N. T., and Sheryl, K. (2013), "From Customer Satisfaction to Customer Delight: Creating a New Standard of Service for the Hotel Industry", International Journal of Contemporary Hospitality Management, Vol. 25, Iss. 5, pp. 642 – 659.Fazaneh, M., and Jamil, J. (2011), “Service Quality in Penang Hotels: A Gap Score Analysis”, World Applied Science Journal, Vol. 12, pp.19 – 24. DOI: https://doi.org/10.1108/IJCHM-Dec-2011-0228
Fen, Y. S., and Lian, K. M. (2010), “Service Quality and Customer Satisfaction: Antecedents of Customer’s Re–Patronage Intentions”, Sunway Academic Journal, Vol. 4, pp. 59 – 73. DOI: https://doi.org/10.1108/00242531011038578
Gržinić, J. (2007), “Concept of Service Quality Measurement in Hotel Industry”, University Jurja Dobrile, Pula, Croatia, pp. 81 – 98.
Gupta, S., and Zeithaml, V. (2006), “Customer Metrics and Their Impact on Financial Performance”, Marketing Science, Vol. 25, No. 6, pp.718 – 739. DOI: https://doi.org/10.1287/mksc.1060.0221
Hair, F. J., Black, W. C., Babin, B., Anderson, R. E., and Tatham, R. L. (2010), “Multivariate Data Analysis: A Global Perspective”, 7th ed., Upper Saddle River, NJ: Pearson Prentice–Hall.
Han, H., and Back, K. J. (2008), “Relationship among Image Congruence, Consumption Emotions and Customer Loyalty in the Lodging Industry”, Journal of Hospitality and Tourism Research, Vol. 32, No. 4, pp. 467 – 490. DOI: https://doi.org/10.1177/1096348008321666
Heung, V. C., Mok, C., and Kwan, A. (1996), “Brand Loyalty in Hotels: An Exploratory Study of Overseas Visitors to Hong Kong”, Australian Journal of Hospitality Management, Vol. 3, No. 1, pp.1 – 11.
Ho, C. I. (2007), “The Development of an e -Travel Service Quality Scale”, Tourism Management, Vol. 28, No. 6, pp. 1434 – 1449. DOI: https://doi.org/10.1016/j.tourman.2006.12.002
Jani, D., and Hanb, H. (2014), “Personality, Satisfaction, Image, Ambience, and Loyalty: Testing their Relationships in the Hotel Industry”, International Journal of Hospitality Management, Iss. 37, pp. 11 – 20. DOI: https://doi.org/10.1016/j.ijhm.2013.10.007
Kandampully, J., and Hu, H. H. (2007), “Do Hoteliers Need To Manage Image To Retain Loyal Customers?”, International Journal of Contemporary Hospitality Management, Vol. 19, No. 6, pp. 435 – 443. DOI: https://doi.org/10.1108/09596110710775101
Kandampully, J., and Suhartanto, D. (2000), “Customer Loyalty in the Hotel Industry: The Role of Customer Satisfaction and Image”, International Journal of Contemporary Hospitality Management, Vol. 12, No. 6, pp. 346 – 451. DOI: https://doi.org/10.1108/09596110010342559
Kanagal, N. (2009), “Role of Relationship Marketing in Competitive Marketing Strategy”, Journal of Management and Marketing Research, Vol. 2, May, pp. 1 – 17.
Kerin, R.A., Hartley, S. W., and Rudelius, W. (2009), “Marketing”, 9th ed., Boston: McGraw–Hill Irwin.
Kotler, P., and Armstrong, G., (2010), “Principles of Marketing”, 13th ed., Upper Saddle River, New Jersey: Prentice–Hall.
Krasna, T. (2008), “The Influence of Perceived Value on Customer Loyalty in Slovenian Hotel Industry”, TURIZAM, Vol. 12, pp.12 – 15. DOI: https://doi.org/10.5937/Turizam0812012T
Kwek, C. L., Yeong, W. M., and Hiew, M. L. (2011), “Exploring Factors That Influence Customer Loyalty Among Generation-Y for the Fast food Industry in Malaysia”, African Journal of Business Management, Vol. 5, No. 12, pp. 4813 – 4823.
Ladhari, R. (2008), “Alternative Measure of Service Quality: A Review”, Journal of Managing Service Quality, Vol. 18, No. 1, pp. 65 – 86. DOI: https://doi.org/10.1108/09604520810842849
Ladhari, R. (2009), “A Review of Twenty Years of SERVQUAL Research”, International Journal of Quality and Service Sciences, Vol. 1, No. 2, pp. 172 – 198. DOI: https://doi.org/10.1108/17566690910971445
Liang, D., (2008), “The Determining Factors of Customer Loyalty for Luxury Hotels in US”, The Journal of International Management Studies, Vol. 3, No. 2, pp. 167 – 175.
Lovelock, C., and Wirtz, J. (2011), “Service Marketing–People, Technology, Strategy”, 7th ed., New Jersey: Pearson Education.
Malaysian Association of Hotels (MAH) (2015), “Hotel Statistics” (online) (cited 17 August 2015). Available from http://www.hotels.org.my/member-section/hotel-statistics.htmlMaria, A. R., and Kamarulzaman, Y. (2012), “The Influence of Relationship Quality and Switching Costs on Customer Loyalty in the Malaysian Hotel Industry”, Procedia - Social and Behavioral Sciences, Vol. 62, No. 24, pp. 1023 – 1027. DOI: https://doi.org/10.1016/j.sbspro.2012.09.174
Martínez, P., and Bosque, I. R. (2013), “CSR and Customer Loyalty: The Roles of Trust, Customer Identification with the Company and Satisfaction”, International Journal of Hospitality Management, Iss. 35, pp. 89 – 99. DOI: https://doi.org/10.1016/j.ijhm.2013.05.009
Minkiewicz, J., Evans, J., Bridson, K., and Mavondo, F. (2011), “Corporate Image in the Leisure Services Sector”, Journal of Services Marketing, Vol. 25, No. 3, pp. 190 – 201. DOI: https://doi.org/10.1108/08876041111129173
Mohsin, A., and Lockyer, T. (2010), “Customer Perceptions of Service Quality in Luxury Hotels in New Delhi, India: An Exploratory Study”, International Journal of Contemporary Hospitality Management, Vol. 22, No. 2, pp. 160 - 173. DOI: https://doi.org/10.1108/09596111011018160
Oliver, R. L. (1980), “A Cognitive Model for the Antecedents and Consequences of Satisfaction”, Journal of Marketing Research, Vol. 27, pp. 460 – 469. DOI: https://doi.org/10.1177/002224378001700405
Oliver, R., (1997), “Satisfaction: A Behavioural Perspective on the Consumer”, New York: McGraw–Hill.
Olorunniwo, F., Hsu, M. K., and Udo, G. J. (2006), “Service Quality, Customer Satisfaction and Behavioural Intentions in the Service Factory”, Journal of Services Marketing, Vol. 20, No. 1, pp. 59 – 72. DOI: https://doi.org/10.1108/08876040610646581
Parasuraman, A., Zeithaml, V. A., and Malhotra, A. (2005), “E–S–QUAL: A Multiple Item Scale for Assessing Electronic Service Quality”, Journal of Service Research, Vol. 7, No. 3, pp. 213 – 233. DOI: https://doi.org/10.1177/1094670504271156
Parasuraman, A., and Zeithaml, V. (2006), “Understanding and Improving Service Quality: A Literature Review and Research Agenda”, Handbook of Marketing, London: Sage Publication
Peppers, D., and Rogers, M. (2004), “Managing Customer Relationships”, Wiley: Hoboken, New Jersey.
Pitta, D., Franzak, F., and Fowler, D. (2006), “A Strategic Approach to Building Online Customer Loyalty: Integrating Customer Profitability Tiers”, Journal of Consumer Marketing, Vol. 23, No. 7, pp. 421 – 429. DOI: https://doi.org/10.1108/07363760610712966
Pizam, A., and Ellis, T. (1999), “Customer Satisfaction and Its Measurement in Hospitality Enterprises”, International Journal of Contemporary Hospitality Enterprises, Vol. 11, No. 7, pp. 326 – 339. DOI: https://doi.org/10.1108/09596119910293231
Poon, W. C., and Low, K. L. T. (2005), “Are Travellers Satisfied with Malaysian Hotels?”, International Journal of Contemporary Hospitality Management, Vol. 17, No. 3, pp. 217–227. DOI: https://doi.org/10.1108/09596110510591909
Raemah, A. H., Puti, M. M., Zainora, H. H., Safiah, R., Khalidah, N. A., and Raja Hanaliza, R. A. (2011), “Influence of Relationship
Quality on Hotel Guests’ Loyalty: A Case Study of a Malaysian Budget Hotel”, Canadian Journal on Scientific and Industrial Research, Vol. 2, No. 6, pp. 220 – 229.
Ramanathan, U., and Ramanathan, R. (2011), “Guests’ Perceptions on Factors Influencing Customer Loyalty: An Analysis for UK Hotels”, International Journal of Contemporary Hospitality Management, Vol. 23, No. 1, pp.7 – 25. DOI: https://doi.org/10.1108/09596111111101643
Reichheld, K. (2002), “Letters to the Editor”, Harvard Business Review, Vol. 80, No. 11, pp. 126. DOI: https://doi.org/10.1177/1054773802011002002
Reichheld, F. F., Markey, R. G. Jr. and Hopton, C. (2000), “The Loyalty Effect - The Relationship between Loyalty and Profits”, European Business Journal, Vol. 12, No. 3, pp. 134 – 139.
Schlosser, A. E., White, T. B., and Lloyd, S. M. (2006), “Converting Website Visitors into Buyers: How Website Investment Increases Customer Trusting Beliefs and Online Purchase Intentions”, Journal of Marketing, Vol. 70, No. 2, pp. 133 – 148. DOI: https://doi.org/10.1509/jmkg.70.2.133
Sher, A., and Ahmad, P. M. S. (2011), “Determinants of Customer Loyalty for Hospitality Industry”, Information Management and Business Review, Vol. 2, No. 1, pp. 19 – 25. DOI: https://doi.org/10.22610/imbr.v2i1.878
Sheth, J. N., and Mittal, B. (2004), “Customer Behaviour: A Managerial Perspective”, 2nd ed., New York: Thomson South Western.
Singla, V., and Singh, A. I. (2008), “Conceptualising Perceived Service Quality in Hotel Industry”, Indian Management Studies Journal, No. 12, pp. 61 – 80.Skogland. I., and Siguaw, J. (2004), “Are Your Satisfied Customers Loyal?”, Cornell Hotel and Restaurant Administration Quarterly, Vol. 45, No. 3, pp. 221 – 234. DOI: https://doi.org/10.1177/0010880404265231
Tang, W. W. (2007), “Impact of Corporate Image and Corporate Reputation on Customer Loyalty: A Review”, Management Science and Engineering, Vol. 1, No. 2, pp. 57 – 62.
Tourism Malaysia (2015), “Tourism Arrivals and Receipts to Malaysia” (online) (cited 9 July 2015). Available from http://corporate.tourism.gov.my/research.asp
Wong, A., and Sohal, A. (2003), “Service quality and customer loyalty perspectives on two levels of retail relationship”, Journal of Services Marketing, Vol.17, No.5, pp.495–513 DOI: https://doi.org/10.1108/08876040310486285
Zeithaml, V. A. (1988), “Consumer Perceptions of Price, Quality, and Value: A Means–End Model and Synthesis of Evidence”, Journal of Marketing, Vol. 52, No. 3, pp. 2 – 22. DOI: https://doi.org/10.1177/002224298805200302
Zeithaml, V. A., and Bitner, M. J. (2000), “Services Marketing: Integrating Customer Focus across the Firm”, 2nd ed., McGraw– Hill: New York.
Downloads
Published
Issue
Section
License
Copyright (c) 2015 CHENG Boon Liat, LEW Kaung Chiau
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Copyrights for articles published in IJIER journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author for more visit Copyright & License.