The Effect of Service Quality on Customer Satisfaction of The Manise Hotel in Ambon, Indonesia

The Effect of Service Quality on Customer Satisfaction of The Manise Hotel in Ambon, Indonesia Saul Ronald Jacob Saleky, Dian Utami Sutiksno, Aldina Shiratina Universitas Hasanuddin, Universitas Padjadjaran, Universitas Padjadjaran Abstract This study aimed to determine the effect of service quality on customer satisfaction of Hotel Manise's service users in Ambon. Data was collected using questionnaires to 100 respondents who become samples of the study population. The collected data was then analyzed using the quantitative method of multiple regression analysis. The results showed that the quality of service simultaneously and partially affects positively and significantly on consumer satisfaction of Hotel Manise's service users in Ambon. It is therefore recommended that the management of Hotel Manise can always improve the quality of care by providing opportunity for employees to participate in education and training relevant to their job duties. Keywords: service quality, customer satisfaction Introduction The business development in Indonesia, especially in the tourism sector, can encourage business people to create opportunities in hospitality business or hotel in this study. Business development in the hospitality service sector also occurred in the city of Ambon, in which there are several hotels that have a good class, so that hoteliers compete to get consumers by providing a quality service. The purpose of these businesses people in providing quality service to the consumers is to get consumer satisfaction. Consumer satisfaction is the consumer's response to the discrepancy between the level of importance before usage and the actual performance felt after. Consumer satisfaction is determined by the perception of consumers for a product or service performance in meeting consumer's expectations. Perception is defined as the process by which individuals select, organize, and interpret the stimuli received through the senses. Many experts provide definition of consumer satisfaction, such as Day (1988) cited by Komariah (2000) that stated that satisfaction or dissatisfaction is the consumer's response to the evaluation of non-compliance or perceived disconfirmation between prior expectations (norms other performance) and the actual performance. It is also applied by one of the hotel businesses, namely Hotel Manise. Hotel Manise is a company engaged in the field of hospitality services that aim to meet the needs and desires of consumers / guests. Manise hotel, established in 1992, is located at Jalan WR Supratman No. 1 in downtown of Ambon. The hotel has 83 employees consisting of 55 male employees and 28 female ones placed in respective division. To add the convenience of visitors, the hotel provides facilities such as cafe, restaurant, karaoke and also some room types that can be selected by visitors, among others: (a) President Suite as many as 2 rooms with tariff of Rp 1,500,000/night, (b) Suite as many as 3 rooms with tariff of Rp 850,000 / night, (c) Superior as many as 21 rooms with tariff of Rp 700,000 / night, (d) Super Deluxe as many as 18 rooms with tariff of Rp 600,000 / night, (e) Deluxe as many as 23 rooms with tariff of Rp 550,000 / night, and (f) Extra bed with tariff of Rp 150,000 / night. To further understand more clearly about the services in Hotel Manise, it should be known and analyzed how the consumers respond to the level of service at this hotel. From the assessment based on the response, the company can have a guidance regarding what are the things that need to be addressed, especially regarding the service. Quality of service can be created by first identifying a perception of services needed and wanted by consumers, then adjusted to the services provided by the hotel. Thus the hotel always strives to provide services that meet the needs and wants of its guests.

Literature Review Customer satisfaction is one of the main goals that must be achieved in every business (Naik et al, 2010), and better service delivery to customers is the first step in creating customer satisfaction (Holjevac et al, 2010), especially in the hospitality business. Thus as stated by Tse and Wilton, as quoted by Fandy Tjiptono and Gregory Chandra (2005, p. 197), customer satisfaction is the consumer's response to the evaluation of the perception of the difference between the initial expectations or specific performance standards and actual performance of the product as perceived after the consumption of the product. In such satisfaction, there is measurement. The measurement of customer satisfaction is important for the company, because by knowing the level of customer satisfaction, companies gain feedback and input for the development and implementation of strategies to improve customer satisfaction further. Prior studies have discussed the relationship of quality and services with customer satisfaction (Zeithaml et al., 2002; Yang & Fang, 2004). Past research focuses on the affinity between service quality and customer satisfaction (Bitner et al., 1990; Parasuraman et al., 1988). Customer satisfaction has widely been addressed in literature; defined satisfaction as a post choice evaluative judgment concerning a specific purchase decision (Oliver, 1980). In the marketing literature, customer satisfactions is one of the very important outcomes. There are several methods that can be used by every company to measure and monitor customer satisfaction, including competitor's customers. Kotler (2004), cited by Fandy Tjiptono and Gregorius Chandra (2005, p. 210), suggested several methods for measuring customer satisfaction, namely: a) Complaints and Suggestions System Every customer-oriented company should provide greater opportunities as well as easy and convenient access for customers to submit their suggestions, opinions, critics, and complaints, for example through the provision of facilities such as suggestion boxes, special toll-free phone lines, and websites. b) Ghost Shopping (Mystery Shopping) Companies can hire ghost shoppers to act or pretend as potential customers of the products of the company and competitors. They are asked to interact with service provider staffs and use the company's products. They are then asked to report their findings related to the strengths and weaknesses of the company's and competitors' products. Usually the ghost shoppers are asked to observe carefully and assess how the company and its competitors serve specific customer requests, answer questions, and deal with any complaint. c) Lost Customer Analysis The company tries to contact customers who have stopped buying or switched, to obtain information about the cause of it since it can be said that the company has failed to satisfy its customers. This is also done so that the company can analyze it as a lesson and experience in order not to repeat past mistakes. d) Customer Satisfaction Survey Survey method, either by mail, telephone, or personal interview, is the most widely used method for measuring customer satisfaction. Through the survey, the company obtains response and feedback directly from customers and provides a positive sign that the company is paying attention to its customers. Measurement of customer satisfaction through this method can be done in various ways, such as: 1) Directly reported satisfaction, which is direct measurement using specific items that asked directly the perceived level of customer satisfaction, and 2) Derived satisfaction, which is questions concerning two main things, namely the level of expectation or customer expectations on product performance on certain attributes that are relevant, as well as the customers' perception of actual performance. 3) Problem analysis, respondents are asked to reveal two main things: first, the problems they face in terms of the products offered by the company, and second, the suggestions that companies can make improvements. 4) Importance performance analysis, respondents are asked to rate the importance of various relevant attributes and levels of the company's performance on each of

these attributes. Then the average value of the interest rate and firm performance attributes will be analyzed by Importance - Performance Matrix. This matrix is very useful as a guide to allocate the limited resources of the company on specific areas where performance improvements can have a major impact on total customer satisfaction. To satisfying the customer's needs, companies need to provide maximum service, as in this study the customers refer to the hotel users. Hotel is one type of accommodation and service facilities that provide lodging, eating and drinking, as well as other services to the public who stay for a while, and is managed commercially. Hotel serves as one of the means to meet the needs of guests (tourists or travelers) as a temporary shelter for being away from the place of origin. Guest also require basic human needs, including physical needs (food, clothing, and shelter), psychological needs (security, tranquility, peace), as well as social needs (self-esteem, love, and appreciation). As one of the commercial property business, the hotel industry not only have the same characteristics as the tourism industry in general, but also have different ones from other industries. Therefore, to create customer satisfaction, it is necessary to provide more services in order to create value in the mind of customers. The value assigned to the customers is strongly based on the service quality factor, where the quality of a product / service is the extent to which products / services meet their specifications. According to the American Society for Quality Control in Rambat Lupiyoadi (2001, p. 175), quality is the overall traits and characteristics of a product / service in terms of its ability to meet the needs, predetermined and latent. The concept of quality itself is essentially relative, depending on the perspective that is used to determine the characteristics and specifications. Basically there are three quality orientations that should be consistent with each other: (1) consumer perception, (2) products / services, and (3) process. For tangible goods, these orientations are almost always clearly distinguishable. The consistency of the quality of service for these three orientations can contribute to the success of a company in terms of customer satisfaction, employee satisfaction, and profitability of the organization. In the increasingly intense global competition, product quality issues become a central issue for any company. The company's ability to provide quality products will become a weapon to overcome the competition, because by providing quality products, customer satisfaction will be achieved. But it becomes confusing when the word quality is perceived to be the same for everyone. Therefore, companies must determine the exact definition and accurate understanding of quality. Business professionals and quality consultants agreed that the word quality had a universal meaning. In 1978, the definition of quality as established by the American National Standards Institute (ANSI) and The American Society for Quality (ASQ) is the totality of features and characteristics of a product or service that is attached to the ability to satisfy the expected demand. Another opinion expressed by Freddy Rangkuti (2004, p. 67) is that quality of service is the delivery of product that exceeds the level of consumer interest. It is clearly emphasized in this definition that the provision of high quality services is to meet or even to exceed the needs and expectations of customers. While there have been efforts to study service quality, there has been no general agreement on the measurement of the concept. The majority of the work to date has attempted to use the ServQual (Parasuraman et al., 1985; 1988) methodology in an effort to measure service quality (e.g. Brooks et al., 1999; Chaston, 1994; Edvardsson et al., 1997; Lings and Brooks, 1998; Reynoso and Moore, 1995; Young and Varble, 1997; Sahney et al., 2004).

One model of service quality that becomes reference in marketing research is ServQual (Service Quality) model as developed by Parasuraman, Zeithaml, and Berry, quoted by Zeithaml and Bitner (2000) in their study of a series of six sectors of service, repair, household appliances, credit cards, insurance, long-distance calls, automotive, retail, and securities brokerage. ServQual (Service Quality) is constructed based on the comparison of two main factors, namely the perception of real customers for the services they receive (Perceived Service) with the actual services expected or desired (Expected Service). There are five dimensions of the ServQual model (Zeithaml and Bitner, 2000), which are as follows: (a) Tangible (Physical Evidence), which is the company's ability to demonstrate its existence to external parties; it is related to the visually appealing physical facilities, (b) Reliability, which is the company's ability to deliver the promised service accurately and reliably, (c) Responsiveness, which is the company's ability and willingness to help and provide prompt (responsive) and right service on the customer, (d) Assurance, which is knowledge, behavior, and ability of the company's employees to inspire trust of customers to the company and the ability to create a sense of security for customers, and (e) Empathy, which is to give genuine and individual or personal concerns to its customers and strives to understand the needs and desires of customers. Research Method This study used the method of verification to simultaneously see the effect of quality of service against customer satisfaction of service users of Manise hotel in Ambon. The sample of this research is part of a population that is taken by a combination of purposive sampling and accidental sampling. The number of samples taken in this study were 100 people. Data used in this research is quantitative data, including the sales development of Hotel Manise's room for 5 years, i.e. from 2007 to 2011. Additionally, it also used qualitative data, namely the consumer response to the quality of Hotel Manise's services. In the design of the analysis, this research analyzes using quantitative analysis techniques of Multiple Regression. This analysis technique is used to determine the influence of independent variables on the dependent variables. Tests performed using SPSS 19 program. In addition to the multiple regression analysis as described earlier, testing the hypothesis in this study was also conducted through the F test and t test. The F-test is intended to simultaneously determine the effect of independent variables (X) on the dependent variable (Y). For that, the proposed hypothesis is as follow: Ho = variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), guarantee / assurance (X4), and empathy (X5) do not have positive and significant effect on customer satisfaction of service users of Hotel Manise in Ambon H1 = variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), assurance (X4), and empathy (X5) have positive and significant effect on the customer satisfaction of service users of Hotel Manise in Ambon Result The use of multiple regression analysis in this study is intended to simultaneously and partially determine the significance of the effect of independent variables on the dependent variables. From the results of the test using SPSS version 19 for estimating the multiple linear regression equation, the obtained results are summarized as listed in Table 1 below.

Table 1 The Results of Multiple Regression Analysis Variable Coefficient of Regression Std. Error Significant (Constant) 0.204 0.109 0.000 Physical evidence / tangible 0.939 0.931 0.000 Reliability 0.589 0.538 0.000 Responsiveness 0.799 0.725 0.000 Assurance 0.781 0.711 0.000 Empathy 0.497 0.480 0.000 R Square = 0.872 Multiple R = 0.760 Sources: Data processed in 2011 Based on the data in the table above, the regression equation of the effect of the variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), assurance (X4), and empathy (X5) on consumer satisfaction service users of Hotel Manise in Ambon (Y) can be made as follows: Y = 0.204 + 0 939 X1 + 0.589 X2 + 0.749 X3 + 0.781 X4 + 0.497 X5 The regression equation above shows that the constant value of 0.204 indicates that if there is no variable of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), guarantee / assurance (X4), and empathy (X5) that are affecting, the customer satisfaction of service users of Hotel Manise in Ambon already has a constant value of 0.204. On the other hand, if the value of the regression coefficient of each independent variables changes by one unit, the satisfaction of service users of Hotel Manise consumers in Ambon will change as much as the value of these factors. The regression equation indicates that the variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), guarantee / assurance (X4), and empathy (X5) have positive effect on customer satisfaction of Hotel Manise's service users in Ambon, which is indicated by the positive regression coefficient. This means that any increase in the score of physical evidence / tangible (X1) of one unit will increase consumer satisfaction scores of the hotel's service users (Y) at 0.939. And vice versa if the score of physical evidence / tangible (X1) decreased by one unit, it will lower customer satisfaction scores (Y) in Ambon for 0.939 units at a significance level of 0.05 (5%). Or in other words, the better the physical facilities owned by the hotel, its service users are likely to be satisfied with Hotel Manise's services. Next, any increase in the score of reliability (X2) of one unit will increase consumer satisfaction scores (Y) equal to 0.589. And vice versa if the score of reliability (X2) decreased by one unit, it will lower customer satisfaction scores (Y) equal to 0.589 units at a significance level of 0.05 (5%). In other words, if consumers feel that the management and employees of Hotel Manise can be relied in providing services for them, then consumers are likely to be satisfied. Moreover, any increase in the score of responsiveness (X3) of one unit will increase consumer satisfaction (Y) equal to 0.749 units. And vice versa if the score of responsiveness (X3) decreased by one unit, it will lower customer satisfaction scores (Y) equal to 0.749 units at a significance level of 0.05 (5%). It can also be said that if consumers feel that the hotel employees is responsive to the needs and problems faced by them, the consumers will tend to be satisfied. Similarly, any increase in the score of guarantee / assurance (X4) of one unit will increase consumer satisfaction scores (Y) at 0.781 unit. And vice versa if the scores of guarantee / assurance (X4) decreased by one unit, it will lower customer satisfaction scores (Y) for 0.781 unit at a significance level of 0.05 (5%). Thus if consumers feel the security and comfort in receiving service from Hotel Manise, they generally will feel satisfaction. Lastly, any increase in the score of empathy (X5) of one unit will

increase consumer satisfaction scores (Y) equal to 0.497 units. And vice versa if the score of empathy (X5) decreased by one unit, it will lower customer satisfaction scores (Y) equal to 0.497 unit at a significance level of 0.05 (5%). In other words, if consumers feel the services provided by Hotel Manise have empathy, they will feel satisfaction. In connection with the problems and hypotheses that have been mentioned in the previous chapter, this chapter analyzed the variables that influence consumer satisfaction of Hotel Manise's service users in Ambon. Based on the data in Table 1, it is found that Multiple R is the correlation coefficient at 0.872 and R-square is the coefficient of determination at 0.760, which is the square of the correlation coefficient, thus the coefficient of determination indicates that 0.872 or 87.2% of customer satisfaction in Hotel Manise (Y) can be explained by the independent variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), assurance (X4), and empathy (X5), while the remaining 12.8% is explained by other variables outside this assessment. The results of the analysis showed that the influence of variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), guarantee / assurance (X4), and empathy (X5) will increase consumer satisfaction in Hotel Manise in Ambon (Y) yield value of determination coefficient of 0.760, meaning that these dependent variables can simultaneously explain 0.760 or 76.0% variation in the level of consumer satisfaction of Hotel Manise's service users in Ambon, and the remaining 24.0% is explained by other factors not included in this study. Overall the results of the analysis concluded that the variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), assurance (X4), and empathy (X5) significantly influence consumer satisfaction of service users of Hotel Manise in Ambon (Y), either simultaneously (together) or partially. To find the results of hypothesis testing, it is necessary to perform multiple regression analysis as described earlier. Testing the hypothesis in this study was also carried out by F test and t test. The F-test is intended to determine the effect of independent variables simultaneously (X) on the dependent variable (Y). For that, the proposed hypothesis is as follow: Ho = variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), assurance (X4), and empathy (X5) do not have positive and significant effect on customer satisfaction of service users of Hotel Manise in Ambon H1 = variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), assurance (X4), and empathy (X5) have positive and significant effect on the customer satisfaction of service users of Hotel Manise in Ambon The results of the test using SPSS 19 is presented in the following table. Table 2. Results of ANOVA Calculation ANOVA b Model Sum of Squares Df Mean Square F Sig. 1 Regression 6.851 5 1.370 14.118.002 a Residual 31.274 94.333 Total 38.125 99 a. Predictors: (Constant), Emp, Ass, Resp, Rel, Tang b. Dependent Variable: Kep Source: Processed result (2011)

From the test results, the followings are known: a) F-value at 14.118 > F-table at 2.316 so that H0 is rejected or variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), guarantee / assurance (X4), and empathy ( X5) simultaneously have real and significant effect on customer satisfaction of Hotel Manise service users in Ambon. b) The level of significance is 0.002 < (0.05), then H0 is rejected meaning the variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), assurance (X4), and empathy (X5) simultaneously have real and significant effect on customer satisfaction of Hotel Manise service users in Ambon. c) df regression (df1) is equal to 5, which is obtained from the number of independent variables of 5 variables. d) df residual (df2) is equal to 94 obtained from the formula df = n-k-1 where n is the number of samples, k is the number of parameters (independent variables), so that df2 = 100-5-1 = 94. Based on the F-test results, it can be concluded that the independent variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), assurance (X4), and empathy (X5) simultaneously have significant effect on customer satisfaction of service users of Hotel Manise in Ambon, thus the hypothesis can be accepted. Further testing is also done partially using the t-test. Testing through the t-test is intended to determine the effect of partially independent variables on the dependent variable. For that, the proposed hypothesis is as follow: H0 = variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), assurance (X4), and empathy (X5) partially do not have significant effect on customer satisfaction of service users of Hotel Manise in Ambon. H1 = variables of physical evidence / tangible (X1), reliability (X2), responsiveness (X3), guarantee / assurance (X4), and empathy (X5) partially have significant effect on customer satisfaction of service users of Hotel Manise in Ambon. The results of calculations using SPSS 19 are presented in the following table. Table 3 Comparison of t-values with t-table Variable/Indicator t-value t-table Sig. Conclusion Tangible 3.059 2.63 0.000 Ho is rejected, positive effect exist Reliability 2.694 2.63 0.000 Ho is rejected, positive effect exist Responsiveness 2.647 2.63 0.000 Ho is rejected, positive effect exist Guarantee/Assurance 2.719 2.63 0.000 Ho is rejected, positive effect exist Empathy 3.512 2.63 0.000 Ho is rejected, positive effect exist Source: Processed data 2011 From the partial test result in the table above, it is known that each measuring indicator of service quality variables has a positive and significant influence on consumer satisfaction of Hotel Manise's service users in Ambon. This is indicated by t-value > t-table, and the probability value (significance) < 0.05 ( ). Discussion These results indicate that together service quality has a positive and significant influence on consumer satisfaction using the services of the Manise hotel Ambon. Similarly, the partial of each dimension of service quality has a positive and significant effect on customer satisfaction. These results indicate that in an effort to provide satisfaction for consumers who use the services of hospitality that is absolutely one of the things done by the employees and management of the hotel is to provide quality of services. Consumers before deciding to use a product or service, of course, have certain expectations. These expectations will also influence the selection of service providers available. When a consumer has decided to use the services offered by a particular hotel, they will compare the expectations that had been previously owned by the reality of the matter and is found in using the services of the hotel. Customer satisfaction will be achieved when expectations are met by the services provided by the hotel. In contrast, if expectations are not met, then the consumer will be dissatisfied. Whereas if the services

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