Service Quality of Hotel: Weighted Average SERVQUAL Method

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1 Service Quality of Hotel: Weighted Average SERVQUAL Method Mohamed Ismail Mohideen Bawa, Senior Lecturer in Management, Department of Management, Faculty of Management and Commerce, South Eastern University of Sri Lanka, Oluvil, , January, Velnampy, T., Dean/ Faculty of Management Studies & Commerce, University of Jaffna, Sri Lanka, Abstract In Sri Lanka, there is an increasing trend for service industry. Statistics show that contribution of service sector is higher than that of agriculture and industry. Hotels are one of the industry that falls into service sectors. South Eastern Region of Sri Lanka (SERSL) represents the hotel industry that is already a boomed business. This study aims at knowing about factors of service quality. 135 hoteliers were selected for questioning during 2013 using a non- probability sampling technique. Results showed that unweighted SERVQUAL Scores for tangibility, responsibility, reliability, assurance and empathy are 307, 130.5, 104.4, and 73.6 respectively. These results showed that there was a wider gap between expectation and perception of customers from the point of view of hoteliers for tangibility dimension. Reliability and responsibility have a moderate gap between expectation and perception of customers from the point of view of hoteliers. Assurance and empathy have a low gap between expectation and perception of customers from the point of view of hoteliers. There were different gaps these had different importance among hoteliers. Hoteliers consider empathy, assurance, reliability, responsibility and tangibility in varying important. Weighted Average Score was When comparing weighted Average Score with all other Weighted Scores hoteliers can identify to which SERVQUAL dimension should be focused more. Tangibility has to be focused more by hoteliers than other SERVQUAL dimensions such as responsibility, reliability, assurance and empathy. Keywords: Hotel, Service Quality, Weighted Average SERVQUAL Method

2 1. Introduction Service industry has been growing rapidly during the last decades. Service marketers contribute a lot to Srilankan economy. Wikipedia (2013) indicated that growing contribution of service sector. In terms of the statistics, sector wise Gross Domestic Product (GDP) indicated that agriculture, industry and services play vital role for Srilankan economy. Estimated contribution in these sectors were 12%, 30.1% 57.9% by the year It is evident that the service sector contributes around 58 % of the economy. There are number of services that incorporate their portion to this higher proportion of contribution. Service marketers try hard for the contribution of service sector. Service sector has to maintain quality to its maximum. Service quality is a comparison of expectations with perception. All service business has to meet customer needs whilst remaining economically competitive. Improved service quality may increase economic competitiveness. One of the major contributory sectors to this economy is trading section that has hotels, restaurants, retail, wholesales, and so on. In South Eastern Region of Sri Lanka (SERSL), hotel industry is already a boomed business that is run by a number of individuals, family-owned, male-headed family members. Service quality is important in all services. Specifically speaking, hotel industry is one of the major concerns for service quality. Customers prefer the utmost quality in their eatables and drinkables. They prefer quality in hotels too. 2. Statement of the Problem Cronin and Taylor (1994) studied about reconciling performance-based and perceptions-minusexpectations measurement of service quality. There are tangibility, reliability, responsiveness and so on. Different studies highlighted about different elements for measuring service quality. These elements for measuring service quality were used in different service industries. Specifically, the major contributory sectors to growth were the financial services, telecom, trading and transport. The information technology sector is growing steadily in Sri Lanka. Tourism has been one of the major foreign exchange earners for decades. The target of the country s tourism development board is to attract 2.5 million tourists and earn $2 billion by SERVQUAL elements have been studied in these different industries. Parasuraman, Zeithaml and Berry (1985) studied about a conceptual model of service quality. They also proposed different elements for service quality. These empirical evidences support that service

3 quality is measured by number of elements. According to the version of U. S. A., customers are king. Few of these hotel consumers stated that hotels should have excellent and modern looking equipment. This shows that tangibility component of the service. Few other have indicated when hotels should promise to accept their orders and release their orders to in certain times. This shows that reliability is one of the other elements for service quality. There is consensus among different service quality elements. However, there is no clear idea about the elements of service quality among the hoteliers. 3. Research Questions and objectives This study raises what are the factors for service quality?. This research question is converted into research objective. Thus, this study attempts to know about factors of service quality. 4. Justifications for this study This study is carried out by researcher for various reasons. First, service sector contributes a lot to Srilankan economy. Wikipedia (2013) revealed that occupation- wise labor force is found in agriculture, industry and services. Agriculture, Industry and Services represent 31.8%, 25.8% and 42.4% on an estimated basis by This statistics discloses that the importance of service sector in Srilankan economy. Service sector is the pioneer in playing the role for economy. Composition of service sector is embraced by hotel industry too. This study fills literature gap. Number of studies has been carried out in this respect in different countries and in different contexts. This study is conducted in Sri Lanka in the context of hotel industry. This study fill methodological gap too. Previous number of studies studied service quality in the ways of different methodological aspects. This study is conducted to carry out a weighted average method. Studies have been conducted directly on satisfaction. This study divides expectation and perception separately for applying weighted average method. Fourth, this study would be a motivation for hoteliers who are involved hotel industry. Hoteliers can know which service quality elements should be improved further. Fifth, this study reveals the priority of consumers in respect to the service quality. Based on this priority, hoteliers can make their service quality elements.

4 5. Empirical Review Ismail (2012) studied about service quality and bank client satisfaction in South Eastern Region (SER) of Sri Lanka. Ismail studied about service quality and bank client satisfaction in South Eastern Region (SER) of Sri Lanka. These two studies were in different methodological contexts and in different industries. These two studied were tested in banking environment. Cronin and Taylor (1992) measured service quality. This study found the conceptualization and measurement of service quality and the relationships between service quality, consumer satisfaction, and purchase intentions. The results suggest that a performance-based measure of service quality may be an improved means of measuring the service quality construct; service quality is an antecedent of consumer satisfaction; consumer satisfaction has a significant effect on purchase intentions, and service quality has less effect on purchase intentions than does consumer satisfaction. Carman (1990) studied about consumer perceptions of service quality. This study measures the perceived quality of a service situation. The scale was tested in 4 service settings different from those of the original test such as a dental school patient clinic, a business school placement center, a tire store, and an acute care hospital. Six basic questions of interest to the retailer are discussed. They are the number of dimensions and how generic they are; the extent to which item wording can be changed; service situations that include multiple service functions; the validity of analyzing differences between expectations and perception; the point at which expectations information should be obtained, and the relationship between expectations and importance. Grönroos (1984) studied about a service quality model. This study is based on test of a sample of business executives, which describes how the quality of services is perceived by customers. Study concludes that quality dimensions are interrelated and that the importance of image should be recognised. 6. Conceptualisation and operationalisation Literature review assisted to get figure 1 for measuring service quality. Tangibility is measured by modern looking equipment, the physical facilities, neat-appearing employees and materials associated with the service. Responsiveness is measured by timing of services, prompt service, willing to help and never be too busy to respond to customers requests. Empathy is measured by individual attention, convenient operating hours, customers personal attention, customer s best

5 interests at heart and understanding of the specific needs of their customers. Assurance is measured by the behavior of employees, safe transactions, employees courteousy with customers and knowledge to answer customers questions. Empathy is measured by customers individual attention, convenient operating hours, personal attention to customers, customer s best interests at heart and understanding of specific needs of their customers. Construct, variables are derived from literature review and adopted from Parasuraman, et.al. (1985).Figure 1 shows conceptual model. Figure 1: Conceptual model Tangibility Empathy Reliability SERVQUAL Assurance Responsibility (Source: Parasuraman, Zeithaml and Berry, 1985) 7. Methodology 7.1 Population and sample Population is all hoteliers who run hotel in South Eastern Region of Sri Lanka. Sampling frame is not accessible to the researcher. Since sampling frame is not accessible to researcher this study considered a non- probability sampling. Out of 200 questionnaires, 135 questionnaires were in usable condition.

6 7.2 Data collection Data were collected from hoteliers. Data collectors were from Undergraduates of final year student of Faculty of Management and Commerce, South Eastern University of Sri Lanka during Table 1 shows the SERVQUAL gap. Table 1: SERVQUAL gap Expectation statement Perception statements Expectation Perception Gap Tangibility Excellent hotels will have modern looking ABC hotel has modern looking equipment equipment The physical facilities at excellent hotel will be ABC hotel s physical facilities are visually appealing visually appealing Employees at excellent hotels will be neat ABC hotle s reception desk employees are neat appearing appearing Materials associated with the service (such as Materials associated with the service (such as welcome, no smoking statements) will be visually appealing at an excellent hotels welcome, no smoking statements) are visually appealing at ABC hotel Total Reliability When excellent hotels promise to do something When ABC hotel promises to do something by a by a certain time, they do certain time, it does so When a customer has a problem, excellent When you have a problem, ABC hotel shows a sincere hotels will show a sincere interest in solving it interest in solving it Excellent hotels will perform the service right ABC hotel performs the service right the first time the first time Excellent hotels will provide the service at the ABC hotel provides its service at the time it promises time they promise to do so to do so Excellent hotels will insist on error free records ABC hotel insists on error free records Total Responsiveness Employees of excellent hotels will tell customers exactly when services will be performed Employees in ABC hotel tell you exactly when services will be performed Employees of excellent hotel will give prompt Employees in ABC hotel give you prompt service service to customers Employees of excellent hotel will always be Employees in ABC hotel are always willing to help willing to help customers you Employees of excellent hotel will never be too Employees in ABC hotel are never too busy to busy to respond to customers requests respond to your request Total Assurance The behavior of employees in excellent hotel will instill confidence in customers The behavior of employees in ABC hotel instills confidence in you Customers of excellent hotels will feel safe in transactions You feel safe in your transactions with ABC hotel Employees of excellent hotel will be Employees in ABC hotel area consistently courteous consistently courteous with customers with you Employees of excellent hotel will have the Employees in ABC hotel have the knowledge to knowledge to answer customers questions answer your questions Total Empathy Excellent hotel will give customers individual attention ABC hotel gives you individual attention Excellent hotel will have operating hours convenient to all their customers Excellent hotel have employees who give customers personal attention Excellent hotel will have their customer s best interests at heart The employees of excellent hotel will understand the specific needs of their customers ABC hotel has operating hours convenient to all its customers ABC hotel has employees who give you personal attention ABC hotel has your best interest at heart The employees of ABC hotel understand your specific needs Total (Source: Survey data)

7 7.3 Data presentation Data are presented using expectation score, perception score and SERVQUAL gap score. It is presented in the figure 2. Figure 2: Expectation score, Perception score and SERVQUAL gap score. 7.4 Procedure and formulas First, total score for expectation and perception is calculated. Second, gap is derived by deducting total perception score from total expectation score. Third, average construct score is obtained by total gap score for each construct divided into number of items in each construct. Fourth, unweighted SERVQUAL score is calculated. Fifth, importance is given on the basis of the priority. Sixth, weighted average SERVQUAL Score is calculated. Unweighted SERVQUAL Score = n 1=1(Total Average Construct Score/ Number of Average Construct For. (1)

8 Weighted SERVQUAL Score = n 1=1(Weighted Score/ Number of SERVQUAL dimensions)..for. (2) 8. Results and Discussion of Findings Expectation Maximum Score for item is 7. There were 135 hoteliers. Total Expectation Score would be 945 (7*135). Perception Maximum Score for item differs between 1 to 7. There were 135 hoteliers. Total Perception Score would range according to item score of hoteliers. Gap = Total Expectation Score Total Perception Score. Average Construct Score = Total Gap Score for each construct is divided into number of items in each construct. Average Construct Score were calculated for five SERVQUAL dimensions. They are: Average Tangibility Score = 1228/ 4 = 307; Average Reliability Score = 522/ 5 = 104.4; Average Responsibility Score = 522/ 4 = 130.5; Average Assurance Score = 305/ 4 = and Average Empathy Score = 368/ 5 = n Unweighted SERVQUAL Score = 1=1(Total Average Construct Score/ Number of Average Construct) = n Weighted SERVQUAL Score = 1=1(Weighted Score/ Number of SERVQUAL dimensions) = Unwighted and weighted SERVQUAL Scores are presented in table 2. Table 2: Unwighted and weighted SERVQUAL Scores SERVQUAL dimensions Unweighted Score of importance Weighted Score SERVQUAL Score Tangibility Score Reliability Score Responsibility Score Assurance Score Empathy Score (Source: survey data) 9. Conclusion Unweighted SERVQUAL Scores disclosed that tangibility, responsibility, reliability, assurance and empathy has got scores of 307, 130.5, 104.4, and 73.6 respectively. These results showed that there was a wider gap between expectation and perception of customers from the point of view of hoteliers for tangibility dimension. Reliability and responsibility have a moderate gap between expectation and perception of customers from the point of view of hoteliers. Assurance and empathy have a low gap between expectation and perception of customers from the point of view of hoteliers. There were different gaps these had different importance among hoteliers. Hoteliers consider empathy, assurance, reliability, responsibility

9 and tangibility in varying important. Weighted Average Score was When comparing weighted Average Score with all other Weighted Scores hoteliers can identify to which SERVQUAL dimension should be focused more. Tangibility has to be focused more by hoteliers than other SERVQUAL dimensions such as responsibility, reliability, assurance and empathy. 10. Suggestions Results indicated that tangibility has to be focused more by hoteliers than other SERVQUAL dimensions such as responsibility, reliability, assurance and empathy. Therefore, hotels should focus on modern looking equipment, appealing physical facilities, neat-appearing employees and visually appealing things. 11. Limitations and future research venues Sample size has not been taken into account using sample size formulae. So, research can be conducted to eliminate this limitation. SERVQUAL includes number of dimensions. But, few dimensions have been considered in this study. Moreover, this study is geographically bounded to SERSL. Future researchers can be done to remove these shortcomings. References Carman, J. M. (1990), Consumer perceptions of service quality: An assessment of the SERVQUAL dimensions, Journal of Retailing, Vol. 66 No.1, pp Cronin, J. J. and Taylor, S. A. (1992), Measuring Service Quality: A Reexamination and Extension, Journal of Marketing, Vol. 56, No. 3, pp Cronin, J. J. and Taylor, S. A (1994), SERVPERF versus SERVQUAL: Reconciling Performance-Based and Perceptions-Minus-Expectations Measurement of Service Quality, Journal of Marketing, Vol. 58, No. 1, pp Gronroos, C. (1984) "A Service Quality Model and its Marketing Implications", European Journal of Marketing, Vol. 18 Iss: 4, pp Parasuraman, A. And Zeithaml, V. A. and Berry, L. L. (1985), A Conceptual Model of Service Quality and Its Implications for Future Research, Journal of Marketing, Vol. 49, No. 4, pp

10 Ismail, M. B.M. (2012), Service Quality (SQ) and Bank Client Satisfaction (BCS) in South Eastern Region (SER) of Sri Lanka, International Conference on Synchronizing Management Theories and Business Practices: Challenges Ahead, pp Ismail, M. B. M. (2012), Service Quality (SQ) and Bank Client Satisfaction (BCS) in South Eastern Region (SER) of Sri Lanka, International Conference on Business and Information 2012: Challenges & Opportunities in the 21st Century, pp Wikipedia (2013), Economy of Sri Lanka, Economic Statistics, Accessed from: en.wikipedia.org/wiki/, Accessed on: 22/ 10/ 2013.

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